Cudahy City Council
April 1, 2025

AMENDED AGENDA

A REGULAR MEETING

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

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, April 1, 2025 – 6:30 P.M.

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

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

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

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

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)
Elizabeth Alcantar Loza, Mayor
Cynthia Gonzalez, Vice Mayor
Martin U. Fuentes, Council Member
Amanda Gomez, Council Member
Daisy Lomelí, Council Member
Amended March 28, 2025
Added Closed Session Item 16B
This meeting will be conducted in person,
telephonically, and electronically.

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 879 7794 5994
https://us06web.zoom.us/j/87977945994

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
April 1, 2025, at 6:30 P.M.

1. CALL TO ORDER

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

3. APPROVAL OF AGENDA

4. PLEDGE OF ALLEGIANCE

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

6. PRESENTATIONS
A. Proclamation – National Deaf History Month
B. Proclamation – Autism Acceptance Month
C. Proclamation – National Child Abuse Prevention Month D. Introduction of LAUSD Police Department Lieutenant Juan Morales E. Know Your Rights Presentation by the Council of Mexican Federations in North America (COFEM)

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

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

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
April 1, 2025, at 6:30 P.M.

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

9. CITY MANAGER REPORT (information only)

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

MEETINGS

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

12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.) A. Consideration to Review and Approve the Draft Minutes of March 18, 2025, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 7) Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for March 18, 2025.

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
April 1, 2025, at 6:30 P.M.

B. Adoption by Second Reading of Ordinance No. 759 Repealing Ordinance No. 697, Terminating Development Agreement No. 18-011C between the City of Cudahy and Aqua Tergere, LLC (page 23)
Presented by the Finance Director
Recommendation: The City Council is requested to:

1. Adopt by second reading Ordinance No. 759 repealing Ordinance No. 697 terminating DA No. 18-011C between the City and Aqua Tergere, LLC; and

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

13. PUBLIC HEARING - NONE

14. BUSINESS SESSION
A. Adopt Resolution No. 25-15 Appointing a Member and Alternate to GWMA Governing Board and Approve Third Amendment to the Memorandum of Understanding (MOU) with the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA) and the Los Angeles River Upper Reach 2 (LAR UR2) Watershed and appointments to the GWMA Governing Board (page 1015)
Presented by the Senior Engineer
Recommendation: The City Council is requested to adopt Resolution 25-15 Appointing Raul Diaz as a member and Juan Arauz as alternate to GWMA Governing Board and authorize the City Manager to sign the Third Amendment to the Memorandum of Understanding (Attachment B) between the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA), acting as the fiduciary for the agreement, and the cities of Bell, Bell Gardens, Commerce, Cudahy, Huntington Park, Maywood, Vernon (LAR UR2 Subgroup Cities) and the Los Angeles County Flood Control District (LACFCD) and appoint Raul Diaz as a member and Juan Arauz as an alternate to the GWMA Governing Board.

B. Consideration to Authorize the City Manager to Enter into an Agreement Between the City of Cudahy and the County of Los Angeles for the Installation, Operation, and Maintenance of Interconnecting Improvements at Certain City Traffic Signal Locations (page 1035) Presented by the Senior Engineer

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
April 1, 2025, at 6:30 P.M.

Recommendation: The City Council is recommended to consider authorizing the City Manager to enter into an agreement between the City of Cudahy and the County of Los Angeles for the installation, operation, and maintenance of interconnecting improvements at certain City traffic signal locations.

C. Consideration to Authorize the City Manager to Enter into a Memorandum of Understanding Between the City of Cudahy and the Los Angeles County Metropolitan Transportation Administration Establishing the City’s Membership in the Configuration Management Committee that Oversees the Regional Integration of Intelligent Transportation Systems (“RIITS”) (page 1047) Presented by the Senior Engineer
Recommendation: The City Council is recommended to consider authorizing the City Manager to enter into a Memorandum of Understanding between the City of Cudahy and the Los Angeles County Metropolitan Transportation Administration establishing the City’s membership in the Configuration Management Committee that oversees the Regional Integration of Intelligent Transportation Systems (“RIITS”).

D. Adoption of Resolution No. 25-16 Authorizing the City Manager to Execute the Public Health Services Contract Between the County of Los Angeles and the City of Cudahy (page 1069) Presented by the Administrative Assistant
Recommendation: The City Council is requested to adopt Resolution No. 25-16 authorizing the City Manager to execute the Public Health Services Contract (PH005608) between the County of Los Angeles and the City of Cudahy.

E. Discussion and Direction Regarding City of Cudahy Vote on Cudahy Landscaping and Lighting District (page 1113)
Presented by the Finance Director
Recommendation: The City Council is requested to discuss and provide direction regarding the City of Cudahy’s vote on the Cudahy Landscaping and Lighting District and adopt Resolution No. 25-17.

F. Resolution to Support SB 454 – The PFAS Mitigation Fund (page 1119) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt Resolution No. 25-18 in support of SB 454, titled “State Water Resources Control Board: PFAS Mitigation Program” (the “Bill”).

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
April 1, 2025, at 6:30 P.M.

15. COUNCIL DISCUSSION – NONE

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957(b)(1)-Public Employee Recruitment Title of Position Under Consideration: City Manager
B. Closed Session Pursuant to Government Code 54956.9(d)(2) – Conference with Legal Counsel - Anticipated Litigation – One (1) Matter

17. CLOSED SESSION ANNOUNCEMENT

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

Dated this 28th day of March 2025
Richard Iglesias
City Clerk

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
04/01/2025 Page 1 of 2

STAFF REPORT
Date: April 1, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of March 18, 2025, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission

RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for March 18, 2025.

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

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

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

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
04/01/2025 Page 2 of 2
Clerk (City Clerk) is the record keeper of a City’s recorded history.

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

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

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

CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of March 18, 2025.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. March 18, 2025, Draft Minutes
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

City Council/Successor Agency Minutes of 03/18/2025 Page 1 of 11

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
March 18, 2025, 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Alcantar Loza called the meeting to order at 6:35 p.m.

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

3. APPROVAL OF AGENDA
City Attorney, Stephanie Arechiga proposed to amend agenda item 16A from two matters to one matter.

Motion: Council Member Fuentes motioned to amend agenda item 16A from two matters to one matter, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None
Attachment A Page 9 of 1122
City Council/Successor Agency Minutes of 03/18/2025 Page 2 of 11

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

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

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

6. PRESENTATIONS
A. Recognition to Angel Lugo for participating in the 2024 Planning Division Youth Program
B. Girls Build from MaCES Presentation and Proclamation on Mental Health Matters Month
C. 2025 Communications Plan Annual Update

7. PUBLIC COMMENTS
Susie de Santiago requested that the City Council consider crossing guards at Ellen Ochoa Elementary School specially on Live Oak Street, suggested increasing social media posts to two months in advance rather than just one month, so families have more time to plan for activities, requested proclamations declaring April as Autism Awareness Month and Child Abuse Prevention Month.

Mario (via Zoom) asked the City Council if the city has an Emergency Operations Center and expressed concerns about the City of South Gate’s communication efforts with the community and praised City Council for offering City Council meeting via Zoom.

Edwin Gonzalez (via Zoom) referenced complaints made during the previous City Council meeting about the unsanitary conditions of parks and parts of the city, urged City Council to take responsibility, mentioned the cleanup event organized by the City of Cudahy and the City of Bell on Saturday, mentioned certain community leaders and stated they are more focused on getting along than advocating for real issues, alleged Vice Mayor being a politician, and noted the city appears to be vulnerable.

City Council/Successor Agency Minutes of 03/18/2025 Page 3 of 11

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes thanked staff for prioritizing the cleaning of restrooms that was brought up at the last City Council meeting, shared his attendance at the Cudahy Chamber of Commerce St. Patrick’s Day event with local businesses and talked about a potential grand opening, and thanked speaker of MACES presentation.

Council Member Gomez commended staff for organizing the Cudahy Cleanup in collaboration with City of Bell, shared her attendance along with Vice Mayor Gonzalez, and thanked community organizations for joining.

Council Member Lomelí praised staff for the new signage at Lugo Park and for quickly addressing the restroom issue, thanked staff for working with the youth and requested a letter opposing AB 1468, requested Autism Awareness proclamation, highlighted the YMCA partnership and opportunities in the city.

Mayor Alcantar Loza thanked staff for the trainings, shared her attendance at the ELC career fair with Vice Mayor Gonzalez and the Cudahy Clean-up with the City of Bell, requested proclamations for next meeting for Autism Acceptance Month, Deaf History Month, Child Abuse Prevention and for the following meeting Older American Month and National Park Week.

9. CITY MANAGER REPORT (information only)

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

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

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None

City Council/Successor Agency Minutes of 03/18/2025 Page 4 of 11

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of March 4, 2025, for the Regular Meeting and the Draft Minutes of March 11, 2025, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for March 4, 2025, and March 11, 2025 B. Approval of the Local Agency Investment Fund (LAIF) for the Month of February 2025 Presented by the Finance Director
Recommendation: The Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of February 2025 in the amount of $11,289,418.46.

C. Approval of the City Demands and Payroll Including Statement of Investment for the Month of February 2025
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,447,014.74 including the Statement of Investments for the month of February 2025.

D. Approval of the First Amendment to the Contract Services Agreement for Crossing Guard Services with All City Management Services
Presented by the Community Services Director
Recommendation: The City Council is requested to approve an amendment to the Contract Services Agreement for Crossing Guard Services with All City Management Services approved on September 3, 2024.

Motion: Council Member Fuentes motioned to approve Consent Calendar items, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None

City Council/Successor Agency Minutes of 03/18/2025 Page 5 of 11

13. PUBLIC HEARING
A. Adopt Resolution No. 25-10 to adopt Cudahy Together: A Strategic Plan for a Thriving Community (“Cudahy Together”)
Presented by the Associate Planner
Recommendation: Staff recommends that the City Council of the City of Cudahy (the “City”): Open the public hearing, receive testimony and presentation of the proposed plan; and Adopt Resolution No. 25-10 approving Cudahy Together: A Strategic Plan for a Thriving Community.

At 7:35 p.m. Mayor Alcantar Loza opened public comment.

Public Comments:

Susie de Santiago expressed gratitude for participating in the process and hopes the city can implement improvements soon for the safety of the community Emmanuel shared excitement for the development of pocket parks, raised concerns about gentrification and praised City Council for their efforts.

Irma Lopez thanked the team and her participation in this plan and expressed her hopes for a better community with the help of this plan.

Ricardo Varas requested that the skate park be renovated and shared the potential benefits for the youth in the community.

Leticia Guzman shared her participation in this plan, shared the importance of maintaining what we currently have and the need of additional safety in the parks and city overall.

Mario (via Zoom) shared his frustration with the lack of community involvement in his city but praised City Council for their approach and also recommended incorporating art in public spaces.

Daisy Loya (via Zoom) praised all the work involved in this plan, excited about the community hub, lighting, and community involvement.

Edwin Gonzalez (via Zoom) mentioned the plan is positive but shared the need to focus more on economic development and the community’s wealth.

At 7:57 p.m. Mayor Alcantar Loza closed public comment.

City Council/Successor Agency Minutes of 03/18/2025 Page 6 of 11 Motion: Council Member Gomez motioned to adopt Resolution No. 25-10 approving Cudahy Together: A Strategic Plan for a Thriving Community, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None
B. Introduction and Adoption by First Reading of Ordinance No. 759 Repealing Ordinance No. 697, Terminating Development Agreement No. 18-011C between the City of Cudahy and Aqua Tergere, LLC
Presented by the Senior Planner
Recommendation: The City Council is requested to: Open the public hearing and receive public comment and testimony; and Make a determination that Aqua Tergere, LLC (“Operator”) is not in compliance with the terms and conditions of Development Agreement (“DA”) No. 18-011C with the City of Cudahy (“City”) and find the Operator is in default of contractual obligations set forth in the DA; and Introduce and adopt by first reading Ordinance No. 759 (Attachment A) repealing Ordinance No. 697 terminating DA No. 18-011C between the City and Aqua Tergere, LLC; and Schedule the second reading of Ordinance No. 759 at the next regularly scheduled meeting on April 1, 2025; and Determine that these actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15321 (Enforcement Actions by Regulatory Agencies).

At 8:21 p.m. Mayor Alcantar Loza opened public comment.

Public Comments:

Emmanuel asked if there are other cannabis companies with similar payment issues.

Susie de Santiago supported canceling the agreement with this cannabis company.

Mario (via zoom) shared his disappointment with the waste of time and money on this company.

Daisy Loya (via zoom) shared the idea of creating smarter contracts, reiterated with the City Attorney demanding making paying upfront, have templates for future contracts and pass on knowledge.

At 8:27 p.m. Mayor Alcantar Loza closed public comment.

City Council/Successor Agency Minutes of 03/18/2025 Page 7 of 11 Motion: Council Member Lomelí motioned to make a determination that Aqua Tergere, LLC (“Operator”) is not in compliance with the terms and conditions of Development Agreement (“DA”) No. 18-011C with the City of Cudahy (“City”) and find the Operator is in default of contractual obligations set forth in the DA; and Introduce and adopt by first reading Ordinance No. 759 (Attachment A) repealing Ordinance No. 697 terminating DA No. 18-011C between the City and Aqua Tergere, LLC; and Schedule the second reading of Ordinance No. 759 at the next regularly scheduled meeting on April 1, 2025; and Determine that these actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15321 (Enforcement Actions by Regulatory Agencies), seconded by Council Member Gomez. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None

14. BUSINESS SESSION
A. Consideration to Approve The 2024 General Plan Annual Progress Report and 2024 Housing Element Annual Progress Report Required by The State of California, Reporting Period January 1, 2024- December 31, 2024
Presented by the Assistant Planner
Recommendation: The City Council is requested to take the following action(s): Adopt Resolution No. 25-11 approving the 2024 General Plan Annual Progress Report (APR); and Authorize staff to file the 2024 Annual Progress Report with the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD).

Motion: Council Member Fuentes motioned to adopt Resolution No. 25-11 approving the 2024 General Plan Annual Progress Report (APR); and authorize staff to file the 2024 Annual Progress Report with the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD), seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None

City Council/Successor Agency Minutes of 03/18/2025 Page 8 of 11 B. Request to submit a joint application to HCD Homekey+ program Presented by the Community Development Director / Assistant City Manager Recommendation: The City Council is requested to adopt Resolution No. 25-12 to submit a joint application in partnership with Prima Development; National Community Renaissance of California; Prima CS GP LLC; NCRC CS CP LLC; and Cudahy Senior Apartments LP (collectively “Co-Applicants”) to the California Department of Housing and Community Development (“HCD”) Homekey+ program, for the 140-unit Cudahy Seniors project located at 5610 Santa Ana Street (“Project Site”); and authorize the City Manager to execute all necessary applications and documents.

Motion: Council Member Gomez motioned to adopt Resolution No. 25-12 to submit a joint application in partnership with Prima Development; National Community Renaissance of California; Prima CS GP LLC; NCRC CS CP LLC; and Cudahy Senior Apartments LP (collectively “Co-Applicants”) to the California Department of Housing and Community Development (“HCD”) Homekey+ program, for the 140-unit Cudahy Seniors project located at 5610 Santa Ana Street (“Project Site”); and authorize the City Manager to execute all necessary applications and documents, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None
C. Approval of Amended and Restated License Agreement for Wireless Facilities Between T-Mobile West LLC and the City of Cudahy
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to approve the Amended and Restated License Agreement for Wireless Facilities between T-Mobile West LLC (Licensee) and the City of Cudahy (City) for the continued operation of a mobile/wireless communication facility located at Clara Park (4835 Clara St., Cudahy, CA 90201).

Motion: Council Member Lomelí motioned to approve the Amended and Restated License Agreement for Wireless Facilities between T-Mobile West LLC (Licensee) and the City of Cudahy (City) for the continued operation of a mobile/wireless communication facility located at Clara Park (4835 Clara St., Cudahy, CA 90201), seconded by Council Member Gomez. Motion passed 3-0-1 by the following roll call vote:

AYES: Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: Fuentes

City Council/Successor Agency Minutes of 03/18/2025 Page 9 of 11 D. Adoption of Resolution Authorizing Los Angeles County Development Authority to Issue Bonds or Notes to Finance the Development of a Multifamily Senior Housing Project in the City of Cudahy
Presented by the Community Development Director / Assistant City Manager Recommendation: The City Council is requested to adopt Resolution No. 25-13 authorizing the Los Angeles County Development Authority (“LACDA”) to issue bonds or notes to help finance the development of Cudahy Seniors, the mixed-use 140-unit housing project, located at 4610 Santa Ana Street, and authorize the City Manager to execute all necessary applications and documents.

Motion: Council Member Lomelí motioned to adopt Resolution No. 25-13 authorizing the Los Angeles County Development Authority (“LACDA”) to issue bonds or notes to help finance the development of Cudahy Seniors, the mixed-use 140-unit housing project, located at 4610 Santa Ana Street, and authorize the City Manager to execute all necessary applications and documents, seconded by Council Member Gomez. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None
E. Adoption of Resolution Authorizing the City Manager to Execute a General Services Agreement Between the County of Los Angeles and the City of Cudahy for Municipal Services
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt Resolution No. 25-14 authorizing the City Manager to execute a General Services Agreement between the County of Los Angeles and the City of Cudahy for Municipal Services.

Motion: Council Member Lomelí motioned to adopt Resolution No. 25-14 authorizing the City Manager to execute a General Services Agreement between the County of Los Angeles and the City of Cudahy for Municipal Services, seconded by Council Member Gomez. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None

City Council/Successor Agency Minutes of 03/18/2025 Page 10 of 11 F. Local Hazard Mitigation Plan (LHMP) Process Briefing Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to receive and file the briefing on the 2025 Local Hazard Mitigation Plan (LHMP).

Motion: Council Member Fuentes motioned to receive and file the briefing on the 2025 Local Hazard Mitigation Plan (LHMP), seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Fuentes, Gomez, Lomelí, and Alcantar Loza
NOES: None
ABSENT: Gonzalez
ABSTAIN: None
G. Discussion and Direction Regarding the Update of the City’s Strategic Plan for 2026- 2030
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to provide direction regarding the update of the City of Cudahy’s Strategic Plan for 2026-2030, including whether to engage Management Partners, the firm used for the current Strategic Plan, issue a Request for Proposals (RFP) for consultant services, and determine the level of community and business input desired for the process.

NO MOTION – DIRECTION ONLY
The City Council directed staff to issue a Request for Proposals (RFP) for consultant services to update the City of Cudahy’s Strategic Plan for 2026-2030.

15. COUNCIL DISCUSSION – NONE
At 9:21 p.m., City Attorney, Stephanie Arechiga recessed to closed session.

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code 54956.9(d)(2) – Conference with Legal Counsel - Anticipated Litigation – Two (2) Matters

City Council/Successor Agency Minutes of 03/18/2025 Page 11 of 11 B. Closed Session Pursuant to Government Code Section 54957.6(a) – Conference with Labor Negotiator Regarding Represented Employees City’s Designated Representative(s) for Negotiations: City Manager Alfonso Noyola Employee Organization: Cudahy Miscellaneous Employees Association (CMEA)
At 10:21 p.m., Mayor Alcantar Loza reconvened to open session.

17. CLOSED SESSION ANNOUNCEMENT
City Attorney Stephanie Arechiga announced that four council members were present, Vice Mayor Gonzalez absent and no further reportable action.

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 10:22 p.m.

Elizabeth Alcantar Loza
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment
B

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STAFF REPORT
Date: April 1, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Juan Arauz, AICP, Assistant City Manager/Community Development Director Prepared By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Adoption by Second Reading of Ordinance No. 759 Repealing Ordinance No. 697, Terminating Development Agreement No. 18-011C between the City of Cudahy and Aqua Tergere, LLC

RECOMMENDATION
The City Council is requested to:

1. Adopt by second reading Ordinance No. 759 (Attachment A) repealing Ordinance No. 697 terminating DA No. 18-011C between the City and Aqua Tergere, LLC; and

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

SUMMARY
Pursuant to the terms and conditions of DA No. 18-011C and Commercial Cannabis Permit (“CCP”) No. 18-0011, it is the City’s purpose and intent to regulate cannabis activities within the City in a responsible manner to protect the health, safety, and welfare of the residents of Cudahy and to enforce rules and regulations consistent with California’s cannabis laws.

Cannabis operators with development agreements are obligated to comply with all provisions of the Cudahy Municipal Code (“CMC”), obligations of the DA, and conditions of approval under the CCP, and applicable state and local laws and related regulations. This report provides a summary of the unrefuted evidence offered at an administrative review hearing; a decision by a third-party hearing officer (“Hearing Officer”) finding the Operator in default of the DA and out of compliance with the CCP; the public hearing by the Planning Commission determining that the Operator has failed to comply with the terms and conditions of its DA, despite being Item Number
12B

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provided with ample notice and several opportunities to achieve compliance, thereby recommending to the City Council that it repeal Ordinance No. 697 and DA No. 18-011C through the adoption of Planning Commission Resolution No. 2024-18. Therefore, City staff recommends the City Council adopt by second reading Ordinance No. 759 repealing Ordinance No. 697 terminating DA No. 18-011C.

BACKGROUND

1. On September 11, 2017, the City adopted Ordinance No. 673 (Attachment B1) establishing the City’s commercial cannabis production activity regulations codified in Chapter 5.20 of the Cudahy Municipal Code (“CMC”). CMC Section 5.20.040 authorizes medicinal commercial cannabis activities within a designated overlay zone, pursuant to a development agreement adopted in accordance with the Development Agreement Law (Gov. Code § 65864 et seq.) and Chapter 20.28 of the CMC.

2. 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 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 Attachment E, pp. 56-229.

3. 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 E, pp. 734-789). Plan Check #PC18-0011 was disapproved and waiting for Operator to resubmit as of September 4, 2019 (Attachment E, pp. 790-793). Due to inactivity, Plan Check #PC18-0011 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.

4. 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, pp. 230-232), pursuant to CMC Section 20.84.160 (Appeals). Operator claimed the Planning Commission “failed to articulate findings and provide supporting evidence identifying specifics in the record that are reasons for the denial.”

5. 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, approved the execution of DA No. 18-011C (Attachment E, pp. 1 NOTE: Attachments B through L referenced herein can be found in the March 18, 2025, City Council Agenda Packet for Item No. 13B and on file with the City Clerks Office.

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443-491) 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 E, pp. 704-708). The Agenda, Minutes, and Staff Report are provided in Attachment E, pp. 245-436.

6. On November 20, 2018, the City Council conducted a second reading and adopted Ordinance No. 697 (Attachment C) authorizing the execution of DA No. 18-011C (Attachment E, pp. 443-491), inclusive of Exhibits A-F (Attachment E, pp. 492-542), 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 E, pp. 447- 448). The Agenda, Minutes, and Staff Report for the November 20, 2018, City Council Meeting are provided in Attachment E, pp. 543-668.

FIGURE 1 – AERIAL OF SITE
FIGURE 2 – FLOOR PLAN
Site
8210 Atlantic Ave.

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7. 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 E, pp. 675-684).

8. On October 2, 2019, the City provided Operator with a Notice of Delinquency (Attachment E, pp. 669-671) prior to placing the Operator in default status due to payment noncompliance with the Development Agreement and Commercial Cannabis Permit, inclusive of the non-payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees2 in the amount of sixty-four thousand two hundred sixty-seven dollars and ninetythree 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.

9. 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 E, pp. 732-733). 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. 2 As used herein, the terms Operating Fees and Non-Operating Fees are used interchangeably.

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10. On May 4, 2021, the City provided Operator with a Notice of Default (Attachment E, pp. 672-674) 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.

11. 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 E, pp. 685-686). During the inspection, the following building, mechanical, fire, electrical, and plumbing code violations were observed:
• installation of insulated panel walls;
• installation of cannabis extraction room;
• installation of fire suppression system;
• installation of HVAC ducts;
• installation of an upgraded electrical panel; and
• installation of plumbing throughout the facility.

12. 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 and Building & Safety Division.

13. 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 E, pp. 687-693) to Operator to clear all violations within 10 days. The notice was also placed at the Site as shown in Attachment E, pp. 690-693. 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.

14. 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.

15. On September 21, 2022, the City received an email (Attachment E, pp. 694-696) 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

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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 E, pp. 687-689.

16. On September 22, 2022, the City received an email from Cheryl Montanez (Attachment E, pp. 794-795) 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. Montanez regarding the City’s records and building permit process.

No further correspondence or inquiries were received from Ms. Montanez.

17. 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.

18. On December 7, 2022, the City presented the terms of the Cannabis Deferment and Payment Program to the Operator (Attachment E, pp. 697-699). 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 Program.

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

20. On April 24, 2023, the City received an unsolicited email from "[email protected]" claiming to provide notice of Aqua Tergere, LLC, 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 E, pp. 709-714). The email also informed the City that the building lease had expired and the Operator returned the keys to the landlord.

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Lastly, the email informed the City that the Operator was withdrawing its “submission application” (Attachment E, p. 711).

21. 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 E, pp. 709-714). The Operator was given no later than (10) days from the date of the letter to submit the requisite documentation.

22. On May 9, 2023, the City issued the Property Owner a demolition permit (Permit #820) to demolish all unpermitted work (Attachment E, pp. 730-731). The Site’s red tag-status was subsequently removed.

23. 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 E, pp. 715-717).

24. According to the lease terms, the Operator’s leasehold interest in the Site expired on May 31, 2023 (Attachment E, pp. 715-717). The lease did not provide any options to extend the lease term.

25. On August 22, 2023, the City provided Operator a letter (Attachment E, pp. 718-726) 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. 18-0011C [as] of May 18, 2023, except as set forth in the Agreement (Attachment E, pp. 718-726, 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. 18-011C and Voluntary Surrender of Commercial Cannabis Permit No. 18-0011” (Attachment E, pp. 723-726) and a “Memorandum of Termination” (Attachment E, pp. 721-722) 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 E, pp. 727-729).

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26. October 26, 2023, more than a month after the Operator’s requested extension (Attachment E, pp. 910-912) 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:
a. Termination of DA No. 18-011C; and
b. 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; and
c. 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
d. Mutual waiver of all fees, penalties, sums, and/or claims arising out of or under DA No. 18-011C.

27. 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 E, p. 911). 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 E, pp. 911-912). Operator’s legal counsel did not offer any explanation as to the Operator’s non-compliance 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.

28. 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 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 E, pp. 913-922).

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29. 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 E, pp. 805-808).

30. On July 24, 2024, the City received email correspondence from F. Araiza-Kasama, the Operator’s counsel, requesting the August 12, 2024 hearing date be continued, stating she was unable to attend the hearing (Attachment E, p. 929).

31. 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 E, pp.930-935) pursuant to Ms. Araiza-Kasama’s availability. The revised Notice of Review Hearing with the hearing date, time and place was sent via certified mail and email (Attachment E, p. 930-931, 935).

32. 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 E, p. 924).

33. As of July 25, 2024, the Operator’s status with the Secretary of State and the Franchise Tax Board is suspended (Attachment E, p. 924), meaning the Operator’s powers, rights and privileges are suspended in the state of California. As of the writing of this report, the Operator’s status remains suspended.

34. On August 26, 2024, the day prior to the Review Hearing, the City received a letter (Attachment E, pp. 936-938) from Marshall L. Hogan, new counsel retained by the Operator, requesting the City to continue the Review Hearing by one month on the basis that Mr. Hogan 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].” The letter was admitted into the City’s Administrative Record during the Review Hearing held on August 27, 2024 (Attachment E, pp. 936-938). 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 E, pp. 805-807). 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 E, 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.

35. On September 24, 2024, the Hearing Officer issued a written decision and order (the “Decision”) (Attachment F) finding evidence showing the Operator, despite considerable notice and opportunities to cure outstanding issues, has breached the terms and conditions of the DA and CCP and recommended the Planning Commission and City Council repeal Ordinance No. 697 terminating DA No. 18-011C and revoke CCP No. 18- 0011.

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36. On November 18, 2024, pursuant to State law and the CMC, the Planning Commission held a duly noticed public hearing to consider the Hearing Officer’s recommendation to repeal Ordinance No. 697 and terminate DA No. 18-011C. The Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents. No representation from the Operator was present at the hearing.

After closing the public hearing, the Planning Commission adopted Resolution No. 2024- 18 (Attachment L), recommending the City Council repeal Ordinance No. 697 and terminate DA No. 18-011C.

37. On March 18, 2025, the City Council conducted a duly noticed hearing to consider the recommendation from the Planning Commission to repeal Ordinance No. 697 and terminate DA No. 18-011C based on the recommendations and conclusions of the Hearing Officer. The City Council considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents. No representation from the Operator was present at the hearing. After closing the public hearing, the City Council concurred with the Hearing Officer’s determination and demonstrated its intent to terminate DA No. 18- 011C by introducing Ordinance No. 759 resulting in the termination of the development agreement. The Agenda and Staff Report are on file with the City Clerk’s Office.

ANALYSIS
During a review of the Operator’s compliance with the Development Agreement, the burden is upon the Operator to demonstrate good faith compliance with the terms of the Development Agreement under Article 19. Pursuant to Government Code Section 65868.1 and Articles 19 and 19(d) of the Development Agreement, if the City Council determines, based on substantial evidence, that the Operator has not complied in good faith with the terms of the conditions of the Development Agreement, the City Council may terminate the Development Agreement or alternatively may choose to modify and impose conditions reasonably necessary to protect the interests of the City. Conversely, if the Operator is found to be in compliance with the Development Agreement, the Operator may request the City to issue a Certificate of Compliance pursuant to Article 19(e). Any decision to terminate a development agreement must be reviewed by the Planning Commission prior to review by the City Council, Gov. Code § 65867. Under Article 19(d), the decision to terminate a development agreement by the City Council is final and only subject to appeal pursuant to Civil Code Section 1094.5.

As it relates to the CCP, pursuant to CMC Sections 5.20.080(6) and 5.20.080(7), any material violations of Chapter 5.20, any other relevant city law or state law, condition of approval, or any other required agreement or covenant, such as a development agreement, by a cannabis permittee, or cannabis permittee’s agent, is ground for suspending or revoking the relevant

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cannabis permit. The decision to suspend or revoke a cannabis permit is with the City Manager or his designee. Furthermore, pursuant to CMC Section 5.20.080, any decision regarding the suspension or revocation may be appealed to the City Council.

The City Manager has appointed a third-party hearing officer (“Hearing Officer”) to conduct a review of the Operator’s compliance with CCP No. 18-0011 and DA No. 18-011C. The findings and determinations made by the Hearing Officer inform any subsequent action to terminate or modify the Development Agreement and suspension or revocation of the CCP. As stated above, and further described in Attachment F, the Hearing Officer issued a written decision making several findings of fact and conclusions and determined that the Operator breached the terms and conditions pursuant to DA No. 18-011C and CCP No. 18-0011, based on a preponderance of the evidence, in the following material aspects:

1. 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. In December 2022, the City offered a Payment Agreement to the Operator but the City did not receive any interest from the Operator.

The Operator’s duty to comply with the CCP conditions of approval are incorporated into DA No. 18-011C3 under Section 18, Conditions 1(a) and 1(b) require the Operator to pay all City-issued invoices within 30 days of receipt. Conditions 8 and 17 all require timely payment of fees due under the Development Agreement. The City has regularly sent monthly invoices for Community Benefits Fees, Cost Recovery Fees, Non-Operating Fees, and appliable late penalties since 2018 (Attachment E, pp. 813-891).

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. However, 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 of May 18, 2023, the City reported the Operator had incurred $334,921.56 of past-due payments, including late payment 3 Section 18 of DA No. 18-011C states “Owner shall comply with all conditions of approval of the Regulatory Permit approved by City Council.” The Regulatory Permit is CCP No. 18-0011.

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penalties.

City staff brought forth the Operator request to waive all fees and penalties due to the “COVID-19 pandemic emergency shut down,” but failed to provide evidence how the waived of accrued fees under a contractual agreement is permitted under the DA.

Based on the evidence submitted by the City, Hearing Officer found that “a preponderance of the evidence shows that the [Operator] has materially breached the terms of DA No. 18-011C by failing to make all required payments to the City…despite demand and after proper notice of default and opportunity to cure.” Further, “the [Operator] non-payment of [fees] under the [DA], respectively in violation of Condition Nos. 8 and 17 consistent grounds for termination of the DA and revocation of the [Operator] interest in the CCP” (Attachment F, pp. 8-9). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find the Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

2. Violation #2. Breach of Conditions of Approval No. 23 (Time Limits) under CCP No. 18- 0011. The Operator’s duty to comply with the CCP’s conditions of approval are incorporated into DA No. 18-011C under Section 18. CCP Condition of Approval No. 23(A)(i) sets a 90-day time frame in which the Operator needed to obtain a Zoning Clearance. Condition of Approval No. 23(A)(ii) sets a 90-day time frame in which the Operator must complete construction of Phase I as indicated in the approved Floor Plan.

CCP Condition of Approval 23(A)(iii) sets a 180-day time limitation from the effective date of the CCP to complete all tenant improvements, construction, and obtain a certificate of occupancy from the Building & Safety Division. Failure to obtain a Zoning Clearance within 90 days of the effective date of the CCP, renders the CCP to “expire and become null and void” (Attachment E, p. 541). The City Manager’s ability to grant an extension of time for a Zoning Clearance if the Operator has made diligent efforts to implement the project is stated in Conditions of Approval 23(A)(i), (ii), and (iii). The effective date of the CCP is November 22, 2018.

The Operator submitted two (2) TI plans to the City’s third-party plan checker in August 2018 and March 2019. As further described above, Plan Check Nos. #18-0011 was disapproved and expired on March 2, 2020, and #440 was approved on December 12, 2019, however, Operator failed to obtain the building permit which subsequently expired on June 12, 2020. The City’s Planning Division has no record of the Operator applying for a Zoning Clearance for either Plan Check #18-0011 or #440, which were ultimately disapproved. The City has no record of any requests by the Operator to the City Manager for a time extension. Without the extensions, the deadlines to complete any phase set forth in CCP Condition of Approval No. 23 expired in 2019.

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Based on the evidence submitted by the City, the Hearing Officer found “a preponderance of the evidence shows [Operator] remains in breach of conditions of approval by failing to implement the Project within the time limits set forth in Conditions of Approval No. 23.A, despite the [Operator] submittal for building plan check” (Attachment F, pp. 10-11). As previously stated, the CCP conditions of approval are incorporated into the DA through Section 18. The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

3. Violation #3. Breach of Conditions of Approval No. 21 (Construction Activities) under CCP 18-0011. The Operator’s duty to comply with the CCP’s conditions of approval are incorporated into DA No. 18-011C under Section 18. Condition of Approval No. 21 states “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.” The City has no record of any Zoning Clearance application or issuance of a building permit to complete or perform any construction at the Site. Yet on August 17, 2022, City staff 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.

Based on the evidence submitted by the City, the Hearing Officer found that “based on a preponderance of the evidence…the [Operator] is in violation of Conditions of Approval No. 21” (Attachment F, p. 10). As previously stated, the CCP conditions of approval are incorporated into the DA through Section 18. The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

4. Violation #4. Breach of Conditions of Approval No. 20 (Modification Procedures) under CCP 18-0011. The Operator’s duty to comply with the CCP’s conditions of approval are incorporated into DA No. 18-011C under Section 18. Condition of Approval No. 20 states “prior to undertaking any operational or construction-related activity which is not expressly described in these [CCP Conditions], the [Operator] shall first contact the City Manager to determine if the proposed activity requires a modification. 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. 18-011C 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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On August 17, 2022, City staff conducted an inspection and observed several violations of the Building, Mechanical, Electrical, and Plumbing code which did not conform to the originally approved Site Plan and Floor Plan, inclusive of a cannabis extraction room, which is not an approved commercial cannabis activity. The Operator was required to formally submit a written or mapped description of the proposed design changes for the City Manager’s approval. The City has no record of the Operator submitting nor obtaining prior approval to deviate from the original Site Plan and Floor Plan. 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.

Based on the evidence submitted by the City, the Hearing Officer found “a preponderance of the evidence shows the [Operator] breached its conditions of approval….by failing to receive City Manager approval for the design changes made to the facility set forth in [COA] No. 20.” Further, that Operators “project changes were outside of the scope of approved commercial cannabis activities” (Attachment F, pp. 10-12). As previously stated, the CCP conditions of approval are incorporated into the DA through Section 18. The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

5. 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.

The Operator breached the DA because the Owner does not hold a state-issued Cannabis license for the facility. As of July 25, 2024, search of the term “Aqua Tergere” on the Cal Cannabis website shows no record of an active cannabis license issued to Operator (Attachment E, pp. 925-927). As of the writing of this report March 5, 2025, the Operator still does not hold a state-issued cannabis license (Attachment H).

Based on the evidence submitted by the City, the Hearing Officer found that based “on the preponderance of the evidence [which] shows that [Operator] breached the DA because the [Operator] has not obtained a State issued Cannabis license for the [Site]” (Attachment F, p. 11). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the

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City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

6. 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.” As shown in a Certificate of Status dated July 25, 2024, the Operators legal status of a California limited liability company, Aqua Tergere, LLC, with the Secretary of State and Franchise Tax Board is suspended and all powers, rights and privileges are suspended in California (Attachment E, p. 924) (See, Rev. & Tax Code § 23301). Despite notice of default and opportunity to cure, the Operator’s status remained “suspended” at the time of the Review Hearing. As of the writing of this report March 5, 2025, the Operator’s legal status remains suspended (Attachment G).

Based on the evidence submitted by the City, the Hearing Officer found that a “suspended business entity is essentially prohibiting the entity from legally operating within the State unless and until the suspended status is withdrawn. A preponderance of the evidence shows the [Operator] breached the DA and is in violation of the CCP” (Attachment F, pp. 12). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

7. 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)).

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 (Attachment E, pp. 715-717). 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 interest in the Site and therefore, has no right to maintain a development agreement with the City for rights at the Site.

Based on the evidence submitted by the City, the Hearing Officer found “a

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preponderance of the evidence [showing] that [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” (Attachment F, p. 12). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-18 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-011C and repeal Ordinance No. 697 and terminate the related DA.

PUBLIC NOTICE AND COMMENTS
This item was noticed in accordance with the City’s public notice requirements, which involved mailed notices to property owners and tenants within 300 feet of the Site (Attachment I) and publication in the local paper (Attachment J). As of the writing of this report, City staff have not received any public comments. Further, pursuant to Section 22 of the Development Agreement, the City sent a public hearing notice via certified mail to all concerned parties in Attachment K.

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 categorically exempt from the requirements to prepare additional environmental documentation per CEQA Section 15321. Class 21 (Enforcement Actions by Regulatory Agencies) appliesto “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, those actions would be enforcement actions. Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
As discussed above and based on the preponderance of unrefuted evidence offered at the administrative Review Hearing; the public hearing by the Planning Commission finding that the Operator has failed to comply with the terms and conditions of its DA, despite being provided with ample notice and several opportunities to achieve compliance, thereby recommending to the City Council that it repeal Ordinance No. 697 and DA No. 18-011C through the adoption of Planning Commission Resolution No. 2024-18. As stated above, the Operator has failed to comply with their obligations under the DA, despite being provided with ample notice and several opportunities to achieve compliance. Therefore, City staff recommend the City Council conduct the second reading of Ordinance No. 759 repealing Ordinance No. 697 and terminating DA No. 18-011C.

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STRATEGIC PLAN CORRELATION
Not applicable.

FINANCIAL IMPACT
As already stated above, Operator is not relieved of obligations already incurred pursuant to the DA. As of May 18, 2023, the City reported the Operator had incurred $334,921.56 of pastdue payments, including late payment penalties. Further, pursuant to Section 19 of the DA, Operator is responsible for the cost of the Review Hearing. On July 11, 2024, and July 30, 2024, the City requested (Attachment E, pp. 930-934) the Operator to make a $12,695.00 deposit, however, Operator failed to make the deposit. The City utilized the General Fund to cover all costs incurred related to this matter.

ATTACHMENT(S)
A. Ordinance No. 759

ORDINANCE NO. 759

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUDAHY REPEALING ORDINANCE NO. 697 AND

TERMINATING RELATED DEVELOPMENT AGREEMENT
NO. 18-011C BETWEEN AQUA TERGERE, LLC AND THE
CITY OF CUDAHY.

WHEREAS, the City of Cudahy (the “City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, on September 11, 2017, the City Council adopted Ordinance No. 673 establishing regulations for commercial cannabis activities, in a specified Overlay Zone through an acquisition of a Commercial Cannabis Permit and execution of a development agreement with the City; and
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California State Legislature adopted Section 65864 et seq. of the California Government Code (the “Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a development agreement with a person having legal or equitable interest in real property for the development of such property in order to establish certain development rights in exchange for public benefits; and
WHEREAS, in accordance with the Development Agreement Statute, the City Council adopted Ordinance No. 690 in 2018 establishing the procedures and requirements for the consideration of development agreements with the City and are contained within Cudahy Municipal Code (“CMC”) Sections 20.84.530 through 20.84.640; and WHEREAS, on September 17, 2018, the City Planning Commission (“Planning Commission”) conducted a properly noticed public hearing to consider an application by Aqua Tergere, LLC (“Operator”) for approval of a Commercial Cannabis Permit to allow non-store front commercial cannabis manufacturing activities at 8210 Atlantic Avenue (“Site”); and
WHEREAS, at this hearing, at this hearing, the Planning Commission heard and considered verbal and written testimony and evidence, and on a 3-1 vote, the Planning Commission recommended denial or an ordinance to enter into and approved a development agreement (“DA”) and denial of CCP No. 18-011 to allow cannabis manufacturing activities with accessory general business offices at the Site; and WHEREAS, on October 1, 2018, pursuant to CMC Section 20.84.160 (Appeals) the Attachment A Page 40 of 1122
Ordinance No. 759

Operator submitted an appeal to the City Clerk appealing the Planning Commission recommendation of a DA and denial of CCP No. 18-011; and WHEREAS, on November 6, 2018, in conjunction with CMC Section 20.28.060, and after independent consideration and de novo review on an appeal, the City Council conducted a properly noticed public hearing to consider the issuance of the Commercial Cannabis Permit (“CCP”) No. 18-0011 and Development Agreement (“DA”) No. 18-011C at which the City Council heard and considered both written and oral testimony and evidence; and
WHEREAS, at the same hearing the City Council considered and approved CCP No. 18-011 and conducted the first reading of Ordinance No. 697 which authorized the execution of DA No. 18-011C between the Operator and the City; and WHEREAS, on November 20, 2018, the City Council conducted a second reading and adopted Ordinance No. 697, approving DA No. 18-011C and authorizing the Mayor to execute the DA on behalf of the City; and
WHEREAS, the effective date of the Development Agreement is December 20, 2018 (“Effective Date”); and
WHEREAS, upon the Effective Date of Ordinance No. 697, the Operator was granted the permission to conduct commercial cannabis manufacturing activities with accessory general business offices at the Site provided, among other things, it received State licensing approval and complied with the terms outlined in the DA and conditions of approval under the CCP; and
WHEREAS, the Operator has not complied with the terms and conditions of the DA and CCP despite notices and opportunity to cure and remains in material breach of thereof; and
WHEREAS, on July 11, 2024, the City provided notice to the Operator that it would be conducting a Special Review Hearing (“Review Hearing”) under Article 19.c of the Development Agreement which informed the Operator of the burden to prove compliance with the DA and CCP; and
WHEREAS, on July 24, 2024, the City received correspondence from the Operator stating they would not be able to attend the scheduled Review Hearing; and WHEREAS, on July 30, 2024, the City granted a one-time request to Operator to reschedule the Review Hearing; and
WHEREAS, on August 26, 2024, the City received correspondence from the Operator requesting the City continue the Review Hearing by one (1) month; and WHEREAS, on August 27, 2024, Steve Napolitano, Esq., a duly appointed third-party hearing officer for the City (“Hearing Officer”) conducted a properly noticed Review Hearing; and

Ordinance No. 759

WHEREAS, the Operator did not participate at the Review Hearing, was not present at the hearing and did not present any evidence for consideration and the Hearing Officer heard and considered information and evidence by City staff, which a true and correct copy of the staff report and supporting evidence (the “Administrative Record”) incorporated by reference and attached hereto as Exhibit “A” ; and
WHEREAS, the Hearing Officer heard and considered information and evidence presented by City staff; and
WHEREAS, on September 24, 2024, the Hearing Officer issued a written decision and order (the “Decision”) incorporated by reference and attached hereto as Exhibit “B”, making several findings of fact and conclusions of law with respect to the Operators noncompliance with the DA and CCP based on a preponderance of the evidence; and WHEREAS, the Hearing Officer determined that Operator breached the DA and CCP in seven (7) material respects: (1) of Payment Obligations – Non-payment of fees and costs owing to the City totaling $334,921.56; (2) Breach of Condition of Approval No. 23 (Time Limits) – Failure to implement the Project within the time limits; (3) Breach of Condition of Approval No. 20 (Construction Activities) – Operator failed to obtain any requisite approvals from the City’s Planning Division and Building & Safety Division prior to construction; (4) Failure to comply with Article 7(c) of DA 18-011C and breach of Condition of Approval No. 20 – Operator failed to receive City Manager approval for the design changes made to the Site prior to construction; (5) Failure to comply with Article 21 of DA No. 18-011C – Operator failed to obtain a State-issued cannabis license for manufacturing; (6) Failure to Comply with Article 4(a) of DA18-001C and breach of Conditions of Approval No. 3 and 22 – Operator failed to maintain a legal business entity; and (7) Failure to maintain a legal or equitable interest over real property; and
WHEREAS, the Hearing Officer has recommended that the City Council adopt an ordinance repealing Ordinance No. 697 terminating DA18-011C and revoking the related interest in CCP18-0011; and
WHEREAS, pursuant to state law and the CMC, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter; and WHEREAS, on November 18, 2024, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 697; and
WHEREAS, after the closing of such public hearing, the Planning Commission adopted Resolution No. 2024-18, recommending the City Council repeal Ordinance No. 697 and terminate related DA No. 18-011C; and
WHEREAS, pursuant to state law and the CMC, the City Council duly noticed, agendized, and conducted a public hearing on this matter; and WHEREAS, the City Council considered all public comments received before and

Ordinance No. 759

during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 697; and
WHEREAS, after the close of such public hearing, the City Council introduced and adopted by first reading Ordinance No. 759, repealing Ordinance No. 697 and terminating related DA No. 18-011C.

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

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

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

CONCLUSIONS OF LAW
The City Council has reviewed and considered the Decision by the Hearing Officer (Exhibit “B”) issued on September 24, 2024, on this matter. For the reasons stated in the Decision and as recommended by the Planning Commission (Exhibit “C”), the City Council adopts the Hearing Officer’s findings of fact and conclusions of law as its own and determines that Aqua Tergere, LLC is not in compliance with the terms and conditions of the Development Agreement No. 18-011C and finds that Aqua Tergere, LLC is in default of its contractual obligations set forth in said Development Agreement and has breached its Conditions of Approval for CCP No. 18-0011 by a showing of the preponderance of the evidence.

SECTION 3. TERMINATION OF DEVELOPMENT AGREEMENT
Pursuant to Article 19(d) of the Development Agreement, the City Council may terminate Development Agreement No.18-011C in its entirety. For the reasons stated in the Decision and as recommended by the Planning Commission, the City Council hereby adopts this Ordinance repealing Ordinance No. 697 terminating DA No. 18-011C in its entirety.

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

Ordinance No. 759

SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT
The City Council has determined that this Ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 21000 et seq.) pursuant to CEQA Guidelines Section 15321 (Class 21) because the repeal of Ordinance No. 697 and termination of DA No. 18-011C is an enforcement action to revoke an entitlement interest.

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

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 18th day of March 2025.
______________________________
Elizabeth Alcantar Loza
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk

Ordinance No. 759

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 759 was introduced for a first reading on the 18th day of March 2025 and approved for a second reading and adopted by said Council at its regular meeting held on the 18th day of March 2025 by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Ordinance No. 759

EXHIBIT “A”
EVIDENCE SUBMITTED BY THE CITY (“ADMINISTRATIVE RECORD”)

ADMINISTRATIVE RECORD FOR

REVIEW HEARING
Aqua Tergere , LLC
August 27, 2024

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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.

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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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“Serving The People” "Sirviendo A La Comunidad"

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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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

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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

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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

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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

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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

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EXHIBIT B

ZONING MAP

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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.

Administrative Review Record - Aqua Tergere, LLC

EXHIBIT F

CONDITIONS OF APPROVAL

Administrative Review Record - Aqua Tergere, LLC

CONDITIONS OF APPROVAL – EXHIBIT F
COMMERCIAL CANNABIS PERMIT NO, CCP18-0011
DEVELOPMENT AGREEMENT NO. DA18-011C
8210 ATLANTIC AVENUE – AQUA TERGERE, LLC

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

Establishment of Compliance Account: Within 10 calendar days of the effective date of the final decision approving this CCP, the Permittee shall submit a new, updated, and completed reimbursement agreement for Condition Compliance Case No. CCP18-0011 in a form provided by the City, obligating the Permittee to pay all condition compliance review, monitoring, and enforcement costs, and any civil administrative penalties, subject to the Permittee’s right to challenge all such charges and penalties prior to payment.
b. Billing Process: The Permittee shall pay all City invoices within 30 days of receipt thereof. Failure to timely pay an invoice shall subject the Permittee to late fees and charges set forth in the City Fee Schedule, and shall be grounds for suspension, modification, or revocation of this CCP. The Permittee shall have the right to challenge any charge or penalty prior to payment.

Administrative Review Record - Aqua Tergere, LLC

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

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

Administrative Review Record - Aqua Tergere, LLC

provide to the contrary, the CCP condition most protective of public health and safety and environmental resources shall prevail to the extent feasible.

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

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

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

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

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

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

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

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

The following process shall be used to resolve complaints related to the Project:
a. The Permittee shall post the telephone number for the designated Contact Person as identified pursuant to Condition No. 4 in a visible location on the site.

The Contact Person shall be available via telephone on a 24-hour basis.

Administrative Review Record - Aqua Tergere, LLC

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

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

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

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

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

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

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

Administrative Review Record - Aqua Tergere, LLC

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

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

COMMERCIAL CANNABIS PRODUCTS MANUFACTURING (ORD. 673, SEC

5.20.110)
PURPOSE: The purpose and intent of this Section is to permit and regulate the commercial Cannabis Products Manufacturing to promote the health, safety, morals, and general welfare of the resident and businesses within the City. The City is authorized to regulate this activity pursuant to State Law.

Condition of Approval No. 8 - Manufacturing Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement No. DA18-011C.

Condition of Approval No. 9 – Manufacturing Properties.

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

Condition of Approval No. 10 – Quality Control Employee.

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

Condition of Approval No. 11 – Standard Operating Procedures and Batch Record.

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

Condition of Approval No. 12 – Labeling and Packaging.
a) All Cannabis Products produced by a Manufacturing Permittee must be packaged in child resistant containers prior to leaving the Premises for such Manufacturing Permittee in accordance with applicable State Law, including MAUCRSA.
b) All Cannabis Products produced by a Manufacturing Permittee must be labeled in compliance with applicable State Law, including MAUCRSA. c) Labeling Requirements – Edibles

Administrative Review Record - Aqua Tergere, LLC

i. Before a Manufacturing Permittee prepares any edible Cannabis or edible Cannabis Product for retail sale, it shall be labeled and placed in tamperevident packaging which at least meets the requirements of State Law, including, but not limited to, MAUCRSA.
ii. All items to be sold or distributed shall be individually wrapped at the original point of preparation by the Cannabis Permittee. iii. Labeling must include a warning if nuts or other known allergens are used, and must include the total weight (in ounces or grams) of Cannabis in the package, not to exceed ten (10) milligrams of tetrahydrocannabinol (THC) per serving.
iv. A warning that the item is a medication and not a food must be clearly legible on the front of the package and/or must comply with state packing requirements.
v. The package must have a label warning that the product is to be kept away from children.
vi. The label must also state that the product contains Cannabis and must specify the date of Manufacture and the Manufacture Permittee’s information, including, but not limited to, address, and phone number. vii. Distribution must be in a properly labeled opaque package when distributed.
viii.The City Manager, or designee, may impose additional packaging and labeling requirements on Cannabis or Cannabis Products.

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

Condition of Approval No. 14 – Use of Hazardous and Flammable Materials.

If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in California Fire Code Section 202, are to be used in the processing of commercial Cannabis, then the provisions of California Fire Code Section 407 shall be applicable where hazardous materials are subject to permits under California Fire Code Section 50

Administrative Review Record - Aqua Tergere, LLC

(Hazardous Materials) are located on the Premises or where required by the applicable building or fire official.

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

Condition of Approval No. 15 – Compressed Gases.

Storage, use, and handling of compressed gases in compressed gas containers, cylinders, tanks, and systems shall comply with California Fire Code Chapter 53.

Partially full compressed gas containers, cylinders, or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with California Fire Code Chapter 50 for general requirements and California Fire Code Chapter 53 addressing specific hazards, including California Fire Code Chapter 58 (Flammable Gases), California Fire Code Chapter 60 (Highly Toxic and Toxic Materials), California Fire Code Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids, and California Fire Code Chapter 64 (Pyrophoric Materials). Prevention, control, and mitigation of dangerous conditions related to storage, use, dispensing, mixing, and handling of flammable and combustible liquids shall be in accordance with California Fire Code Chapters 50 and

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

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

Condition of Approval No. 16 – Final Floor Plan Approval Permittee must submit to and obtain approval from the City Manager, or his designee, on all proposed Final Floor Plans. All Final Floor Plans shall be stamped and dated by the Planning Department. Changes to the floor plan design or other elements (including, but not limited to security, fire or hazmat details) require administrative approval by the Planning Department, prior to any construction activity or Building Permit Issuance.

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

Condition of Approval No. 17 – Payment of Development Agreement Fees

Administrative Review Record - Aqua Tergere, LLC

Operator(s) must pay all required DA fees in accordance with DA terms. Failure to pay fees, as assessed by the City Manager, will constitute a breach of the DA and may result in suspension or immediate revocation of the DA.

Condition of Approval No. 18 – Additional Plans and Approvals Purpose: To ensure all Commercial Cannabis facilities meet the development standards of the zoning code, policies, goals and programs of the general plan and City economic development activities—including City beautification and future public improvement projects.
i. Landscape Plan – The Operator must submit a landscaping plan, designed by a licensed landscape architect or arborist. The plan must include a five-foot landscaped dedication measured from the property line, as illustrated on the approved Site Plan. The plan must include drought tolerant desert plants, approved by the City.
ii. Fencing Plan – Fencing must be provided along the front perimeter of all Commercial Cannabis facilities. Fencing may be constructed between 8 feet and 10 feet in the front and up to 15 feet in the back.

Materials: Corrugated metal, wrought iron, concrete and block wall are all allowed materials. Alternative materials may be allowed with City approval. Chain-link and razor wire are strictly prohibited. Fences may be required to be constructed 5 feet from the property line to allow for future City improvements. All fencing plans must be submitted to and approved by the City prior to construction.
iii. Façade Improvement Plan - All new Commercial Cannabis facilities must submit a Façade Improvement Plan for City approval. The plan must include new paint, siding or other building improvement materials, in a color scheme approved by the City. Plans must also include new paving, as needed, parking striping, and other site improvements, as determined by the City.
iv. LA County Public Health Permit – The Operator must submit obtain a Cannabis Public Health Permit from the Los Angeles County Public Health.
v. City Business License – All operators must file for a City business license to conduct business within the City, pay all required business license fees and obtain a City Business License prior to conducting sales transactions in the City.

Condition of Approval No. 19 – Site Maintenance
PURPOSE: To ensure that the Project site is maintained in a neat and orderly manner so as not to create any hazardous conditions or unsightly conditions which are visible from outside of the Project site.

Administrative Review Record - Aqua Tergere, LLC

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

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

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

Condition of Approval No. 20 – Commercial Cannabis Permit (CCP) Modification Prior to undertaking any operational or construction-related activity which is not expressly described in these conditions, the Permittee shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of this CCP. The City Manager may, at his sole discretion, require the Permittee to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required.

Condition of Approval No. 21 - Construction Activities
Prior to any construction, the Permittee shall obtain a Zoning Clearance for construction from the Planning Division and a Building Permit from the Building and Safety Division.

Condition of Approval No. 22 - Acceptance of Conditions and Schedule of Enforcement Responses
The Permittee’s acceptance of this CCP and/or commencement of construction and/or operations under this CCP shall constitute the Permittee’s formal agreement to comply with all conditions of this CCP. Failure to abide by and comply with any condition of this CCP shall constitute grounds for enforcement action provided in the City Municipal Code which shall include, but is not limited to, the following:
a. Public reporting of violations to the Planning Commission and/or City Council; b. Suspension of the permitted land uses;
c. Modification of the CCP conditions listed herein;
d. Recordation of a “Notice of Noncompliance” on the deed to the subject property; e. The imposition of civil administrative penalties; and/or f. Revocation of this CUP.

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

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approved Development Agreement, the terms of the Development Agreement shall control and take precedence.

Condition of Approval No. 23. - Time Limits
A. Use inauguration: The approval decision for this CCP becomes effective upon the expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. Once the approval decision becomes effective, the Permittee must obtain a Zoning Clearance for Use Inauguration in order to initiate the land uses set forth herein. i. This CCP shall expire and become null and void if the Permittee fails to obtain a Zoning Clearance for use inauguration within 90 days – from the date the approval decision of this CCP becomes effective.

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

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B Permit Life or Operations Period: This CCP will expire on September 17, 2028. However, the Development Agreement contains terms and conditions for extending operations for an additional 10 years. The lack of additional notification of the expiration date provided by the City to the Permittee shall not constitute grounds to continue the uses that are authorized by this CCP after the CCP expiration date. The uses authorized by this CCP may continue after the CCP expiration date if:
(1) The Permittee has filed a permit modification application 90 day prior to September 17, 2028; and
(2) The City decision-maker grants the requested modification.

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

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

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EXHIBIT G
RESOLUTION NO. 18-20

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1 RESOLUTION NO. 18-22

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY

OF CUDAHY, CALIFORNIA, RECOMMENDING ADOPTION OF AN

ORDINANCE APPROVING A DEVELOPMENT AGREEMENT BY

AND BETWEEN THE CITY OF CUDAHY AND AQUA TERGERE,

LLC, A CALIFORNIA LIMITED LIABILITY COMPANY AND THE

ISSUANCE OF A COMMERCIAL CANNABIS PERMIT
WHEREAS, the City of Cudahy (“City”) is a general law city, incorporated under the laws of the State of California, and has the power to make and enforce within its jurisdictional limits all local, police, sanitary and other ordinances and regulations not in conflict with the general laws of the state; WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and WHEREAS, on September 11, 2017, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities (cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement;
WHEREAS, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider this Resolution concerning the Development Agreement (as defined below), at which time testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities.

This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301;
WHEREAS, the Planning Commission finds and determines that an Ordinance adopting the Development Agreement furthers the public health, safety, and general welfare of the community,

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2 and is in the public interest;
WHEREAS, the Planning Commission further finds and determines that the City Council should approve a Commercial Cannabis Permit to allow a Commercial Cannabis Facility for the Site set forth in the Development Agreement;
WHEREAS, the Planning Commission further finds and declares that an Ordinance adopting the Development Agreement is necessary and appropriate to ensure that cannabis businesses are operated in a manner compatible with and not detrimental to other land uses in the vicinity, and further that the Ordinance is consistent with the purposes and goals of the City’s General Plan, as amended, and applicable zoning including but not limited to making allowances for a variety of land uses that serve the needs and desires of the community; WHEREAS, the City Council shall approve a development agreement by ordinance;

NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
CUDAHY DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:

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

SECTION 2. RECOMMENDATION OF APPROVAL OF DEVELOPMENT

AGREEMENT BY ORDINANCE
That the Planning Commission recommends that the City Council adopt an Ordinance approving a Development Agreement By and Between the City of Cudahy and AQUA TERGERE, LLC a California limited liability company [DA#18-011C] ("Development Agreement"), 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. RECOMMENDATION OF APPROVAL OF A COMMERCIAL

CANNABIS PERMIT BY THE CITY COUNCIL
That the Planning Commission further recommends that the City Council should approve Commercial Cannabis Permit No. CCP 18-0011, subject to the terms and conditions stated therein, to allow a Commercial Cannabis Facility for the Site set forth in the Development Agreement located at 8210 Atlantic Avenue, City of Cudahy, CA. A copy of the permit is attached hereto incorporated herein by this reference as Exhibit "B."

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3 PASSED AND ADOPTED by the Planning Commission of the City of Cudahy at a duly noticed meeting held on the 17th day of September 2018 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_________________________________
Planning Commission Chair
ATTEST:
___________________________________
Planning Commission Secretary

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4 EXHIBIT "A"

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF CUDAHY
AND

AQUA TERGERE, LLC, A CALIFORNIA LIMITED LIABILITY

SEE ATTACHMENT

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5 EXHIBIT "B"

COMMERCIAL CANNABIS PERMIT

SEE ATTACHMENT
[The Permit will be based upon the Staff Report with
Conditions of Approval and will be Issued in a Letter to Follow]

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EXHIBIT H
ORDINANCE NO. 6 97

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1 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, 2017, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities (cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act (“CEQA”), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 – Existing Facilities.

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