Cudahy City Council
December 2, 2025

AGENDA

A REGULAR MEETING

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

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, December 2, 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
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: 843 5042 7232
https://us06web.zoom.us/j/84350427232

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 2, 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

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).)

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

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 2, 2025, at 6:30 P.M.

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 November 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 November 18, 2025.

B. Budget vs. Actual Financial Statements for the Quarter Ended September 30, 2025 (page 19) Presented by the Senior Accountant

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 2, 2025, at 6:30 P.M.

Recommendation: The City Council is requested to receive and file the budget vs. actual financial statements for the quarter ended September 30, 2025.

C. Consideration to Approve the Clean Power Alliance of Southern California Amended and Restated Joint Powers Agreement (page 59)
Presented by the Public Works Director
Recommendation: The City Council is requested to approve a Joint Powers Agreement (JPA) to enter and participate in the Clean Power Alliance of Southern California (“CPA”), implementing a Community Choice Aggregation (“CCA”) program.

D. Consideration to Approve Two (2) Second Amendments to Interim City Manager Employment Agreements (page 89)
Presented by the City Attorney
Recommendation: The City Council is requested to approve the attached two (2) Second Amendments to the Employment Agreements with the Interim City Managers.

13. PUBLIC HEARING - NONE

14. BUSINESS SESSION
A. City of Cudahy Capital Improvement Program (CIP) FY2025-2029 Amendment – Request to include Live Oak Street Improvement Project (page 125)
Presented by the Senior Engineer
Recommendation: The City Council is requested to approve the proposed City of Cudahy Capital Improvement Program (CIP) Amendment for Fiscal Years FY2025- 2029 CIP budget to include the Live Oak Street Improvement Project and appropriate $961,480 for Pre-Construction and Construction Services and Contingency from the following funds:

1. $961,480 ($651,480 in Prop C and $310,000 in Measure M) of the unused CIP budget FY 2025 – 2029 allocated for the FY 24-25 Pavement Rehabilitation Program Project which includes:
• $687,500 in Prop C funds available
• $310,000 in Measure M funds available, and;

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 2, 2025, at 6:30 P.M.

2. Allocate $133,000 in STPL funds to the Otis Ave. Street Improvement Project.

B. Creation and Appointment of Economic Development Ad Hoc Committee (page 131) Presented by the Interim City Manager/City Clerk
Recommendation: The City Council is requested to:

1. Consider creating an Economic Development Ad Hoc Committee, establish the scope of the Committee, define a start and end date of the Committee, along with the reporting requirements by the Committee; and

2. Appoint two council members to serve on the Committee.

15. COUNCIL DISCUSSION - NONE

16. CLOSED SESSION - NONE

17. CLOSED SESSION ANNOUNCEMENT - NONE

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 26th day of November 2025
Richard Iglesias
Interim City Manager/City Clerk

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“Serving the People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025 Page 1 of 2

STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Juan Arauz/Richard Iglesias, Interim City Managers By: Richard Iglesias, Interim City Manager/City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of November 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 November 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
12/02/2025 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 November 18, 2025.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. November 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 11/18/2025 Page 1 of 7

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

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

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

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

3. APPROVAL OF AGENDA
City Clerk, Richard Iglesias requested to table item 14A.

Motion: Council Member Lomelí motioned to move business item 14A and approve reaming agenda as is, seconded by Council Member Gomez. Motion passed 3-0-2 by the following roll call vote:

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

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

Attachment A Page 9 of 132
City Council/Successor Agency Minutes of 11/18/2025 Page 2 of 7

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

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

6. PRESENTATIONS
A. Certificate of Recognition to Wheels of Hope

7. PUBLIC COMMENTS

PUBLIC COMMENTS RECEIVED VIA EMAIL
Edwin Gonzalez Good evening to all of you. On this night, I want to express my gratitude to the city of Cudahy, California for confronting some of the most crucial issues during these tumultuous times. Your leadership has given me the wonderful opportunity to continue to be engaged civically. It obviously motivated me to spend more time with my neighbors and contemplate all the predicaments that have afflicted the cities in Southeast Los Angeles. I can now go ahead and declare; that I have truly loved my neighbor. That I have sacrificed a bit of myself, by contributing to the common good of our communities.

Thank you Cudahy for uplifting my spirit of giving, of compassion, and for challenging me to reach the highest standards of civic engagement. Over the years, I concentrated my civic efforts within my own city-Bell, California. But, the past couple of years of being directly involved with the decisive moments happening in Cudahy, has been a very unique experience in itself. Over two years ago, most of my colleagues were urging everyone to support rent control in Cudahy. Initially, I didn't see myself getting involved. Even though I was supporting the measure, I was reluctant to do it publicly. For years I considered taking my civic action to other communities. So with rent control being such an urgent matter, I realized this was the time to finally seize the moment and participate in at least one of the neighboring cities. Subsequently, after rent control went into effect, I felt compelled to stick around and give more input on things, like public safety, environmental justice and other concerns that I had. I thank Mayor Alcantar for being one of the catalysts in developing our Southeast Cultural identity. For being a pioneer in building that network of civic leaders. Thank you for providing the resources, the infrastructure, the inspiration.

For being side by side with my city during the ice raids back in June. Sometimes I feel like I’m part of a new nation. An emerging nation within the United States, which is our home of Southeast Los Angeles. Currently, we are confronted by obstacles that are similar to what the civil rights movement endured, and now more than ever;we must band together to uphold the principles of human dignity and to defeat bigotry and oppression.

Thank you so much and good night.

City Council/Successor Agency Minutes of 11/18/2025 Page 3 of 7

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Gomez congratulated Wheels of Hope for their basketball tournament and recognized Parks and Recreation for all their work and the food drives they are hosting.

Council Member Lomelí gave a shoutout to Wheels of Hope for their basketball tournament, shared that she attended the Día de los Muertos celebration at Ellen Ochoa, and talked about the challenges the community is facing because of SNAP/EBT cuts. She thanked staff for coordinating food distribution and working with ImpactLA, and shared her concerns about recent ICE activity in the city and nearby cities. She thanked staff for working on the child impact fees and requested to agendize the appointment of a commissioner at the next meeting for the Parks and Environmental Justice Commission.

Mayor Alcantar Loza gave direction to appoint commissioners or make any needed edits for either the first or second meeting in December to prepare for next year. She thanked staff for their work on the Atlantic Village mobile home park issue, shared that she attended the UTLA housing tour, the Working Families Party event, and the Maywood State of the City, and announced Cudahy’s upcoming State of the City. She also shared her appreciation for the team.

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 Gomez. Motion passed 3-0-2 by the following roll call vote:

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

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of September 24, 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

City Council/Successor Agency Minutes of 11/18/2025 Page 4 of 7 Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for September 24, 2025.

B. Approval of the Local Agency Investment Fund (LAIF) for the Month of October 2025 Presented by the Senior Accountant
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of October 2025 in the amount of $6,636,375.50.

C. Approval of the City Demands and Payroll Including Statement of Investment for the Month of October 2025
Presented by the Senior Accountant
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $3,306,656.72 including the Statement of Investments for the month of October 2025.

D. Consideration to approve closure of City facilities from December 23, 2025, through January 1, 2026, for the Holidays
Presented by the Community Services Director
Recommendation: The City Council is requested to consider approving the closure of City facilities from December 23, 2025, through January 1, 2026, for the Holidays.

E. Consideration to Adopt a Resolution Approving the Application for a Land and Water Conservation Fund (LWCF) Grant in the Amount of $3,500,000 for the Clara Expansion Park Rehabilitation Project
Presented by the Administrative Analyst
Recommendation: The City Council is requested to approve Resolution No. 25-57, authorizing staff to file an application with the California Department of Parks and Recreation to receive funding in the amount of $3,500,000 from the Land and Water Conservation Fund (LWCF) for the renovation of Clara Expansion Park.

F. Adoption of Proposed Resolution No. 25-58 Declaring the Property Located at 4730 Santa Ana Street (APN 6224-018-007) “Surplus Exempt” Pursuant to the Surplus Lands Act Government Code Section 54221(f)(1)(B)
Presented by the City Attorney

City Council/Successor Agency Minutes of 11/18/2025 Page 5 of 7 Recommendation: The City Council is requested to approve proposed Resolution No. 25-58, declaring the property located at 4730 Santa Ana Street (APN 6224-018-007) “Surplus Exempt,” pursuant to the Surplus Lands Act Government Code Section 54221(f)(1)(B).

G. Consideration to Approve Two Amended and Restated First Amendments to Interim City Manager Employment Agreements
Presented by the City Attorney
Recommendation: The City Council is requested to approve the attached two Amended and Restated First Amendments for the Interim City Managers.

Motion: Council Member Gomez motioned to approve the Consent Calendar items, seconded by Council Member Lomelí. Motion passed 3-0-2 by the following roll call vote:

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

13. PUBLIC HEARING – NONE

14. BUSINESS SESSION
A. Creation and Appointment of Economic Development Ad Hoc Committee – ITEM PULLED
Presented by the Interim City Manager/City Clerk
Recommendation: The City Council is requested to: Consider creating an Economic Development Ad Hoc Committee, establish the scope of the Committee, define a start and end date of the Committee, along with the reporting requirements by the Committee; and Appoint two council members to serve on the Committee.

B. Consideration to Approve the City Manager Employment Agreement Between the City of Cudahy and Christopher R. Lopez
Presented by the City Attorney
Recommendation: The City Council is requested to appoint Christopher R. Lopez as City Manager starting January 14, 2026, and approve the City Manager Employment Agreement Between the City of Cudahy and Christopher R. Lopez.

Motion: Council Member Lomelí motioned to a o appoint Christopher R. Lopez as City Manager starting January 14, 2026, and approve the City Manager Employment

City Council/Successor Agency Minutes of 11/18/2025 Page 6 of 7 Agreement Between the City of Cudahy and Christopher R. Lopez, seconded by Council Member Gomez. Motion passed 3-0-2 by the following roll call vote:

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

15. COUNCIL DISCUSSION – NONE
At 6:56 p.m., City Attorney, Stephanie Arechiga recessed to closed session.

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957.6(a) – Conference with Labor Negotiator Regarding Represented Employees City’s Designated Representative(s) for Negotiations: Interim City Managers Juan Arauz and Richard Iglesias
Employee Organization: Cudahy Miscellaneous Employees Association (CMEA)
B. Closed Session Pursuant to Government Code Section 54957.6 – Conference with Labor Negotiator
City’s Designated Representative: Stephanie Arechiga, City Attorney Unrepresented Employee –
Title: Interim City Managers
At 8:12 p.m., Mayor Alcantar Loza reconvened to open session.

17. CLOSED SESSION ANNOUNCEMENT
City Attorney Stephanie Arechiga announced that all three council members were present for both items, direction was given and no further reportable action.

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 8:15 p.m.

Elizabeth Alcantar Loza
Mayor

City Council/Successor Agency Minutes of 11/18/2025 Page 7 of 7 ATTEST:

Richard Iglesias
City Clerk

Attachment
B

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025 Page 1 of 2

STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor and City Council Members
From: Charles Ortiz, Senior Accountant
Subject: Budget vs. Actual Financial Statements for the Quarter Ended September 30, 2025

RECOMMENDATION
The City Council is requested to receive and file the budget vs. actual financial statements for the quarter ended September 30, 2025.

BACKGROUND
This report reflects all budgeted funds and actual revenue and expenditures as of September 30, 2025.

ANALYSIS
Page one shows General Fund revenue and expenditures by department. Revenues for the first quarter amount to over $1.6M and are 89% collected. This is largely due to timing issues as most of the City’s intergovernmental revenue is generated either quarterly or bi-annually.

Motor Vehicle fees are the City’s largest revenue source and are received in December and June. Sales taxes are two months in arrears and property taxes are distributed twice a year.

Expenditures amount to $3.5M and are 75% expended, which is on target for the first three months of the year. Departments are within their budget with the exception of the City Manager and Community Services departments. The City Manager is over budget due to the payout for the previous City Manager. The Community Services department appears to be over budget, however, there was a CalPERS unfunded liability payment of almost $408k at the beginning of the fiscal year. Individual departmental budgets are presented on pages 2 through

11. Special Revenue Funds are depicted on pages 12 through 38. Most of the funds are within budget as the proposition and special measures are funded through sales tax revenue, which Item Number
12B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025 Page 2 of 2

is two months in arrears. Attention needs to be given to the Rent Stabilization Fund (page 15) as actual revenues are lower than estimated and the fund currently has a negative fund balance.

All expenditures in the Grants Fund (pp 17 and 18) are reimbursement-based. This means that the City pays all construction costs upfront and is then reimbursed by the grantors. Some grantors take several months to reimburse. This was not taken into consideration when interest earnings were estimated in the budget cycle and this revenue source mostly likely will be under budget in all funds.

CONCLUSION
City revenue and expenditures are in line with the budget with a few exceptions noted above.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency) • Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
None

ATTACHMENTS
A. Quarterly report for all funds

%
FY 2025-26 FY 2025-26 Budget Uncollected
Description Budget Actual Variance Unexpended
Revenues
Taxes 5,762,148 434,474 5,327,674 92.5%
Charges for Services 235,000 74,455 160,545 68.3%
Intergovernmental Revenue 3,890,147 15,108 3,875,039 99.6% Licenses and Permits 2,479,400 1,057,595 1,421,805 57.3% Fines and Fees 614,000 (32,365) 646,365 105.3%
Use of Money and Property 238,430 49,457 188,973 79.3%
Other Revenue 1,188,825 36,958 1,151,867 96.9%
Total Revenue 14,407,950 1,635,682 12,772,268 88.6%
Expenditures by Department
City Council 269,106 60,620 208,486 77.5%
City Attorney 520,000 171,906 348,094 66.9%
City Clerk 494,551 75,222 419,329 84.8%
City Manager 350,759 159,247 191,512 54.6%
Community Development 1,115,846 292,034 823,812 73.8%
Community Services 2,058,168 787,611 1,270,557 61.7%
Finance 681,218 142,282 538,936 79.1%
Public Safety 5,406,430 441,849 4,964,581 91.8%
Public Works 1,973,116 578,194 1,394,922 70.7%
Non-Departmental 1,494,806 825,452 669,354 44.8%
14,364,000 3,534,417 10,829,583 75.4%
Other Sources and Uses
Operating Transfers In 246,950 - - 0.0%
Operating Transfers Out (614,360) - - 0.0%
Total Other sources (Uses) (367,410) -
Increase (Decrease) in Fund Balance (323,460) (1,898,735) 1,575,275 Beginning Fund Balance 8,428,859 8,428,859
Prior-Period Adjustment - 883,977
Ending Fund Balance 8,105,399 7,414,101
City of Cudahy
General Fund Revenue, Expenditures and Changes in Fund Balance 001 Attachment A Page 21 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 96,491 15,367 81,124 84.1%
Employee Benefits 34,855 12,801 22,054 63.3%
Supplies and Services 137,760 26,551 111,209 80.7%
Contract Services - 5,901 (5,901) #DIV/0!
-
Total Expenditures by Object 269,106 60,620 208,486 77.5% Expenditures by Division
City Council 269,106 60,620 208,486 77.5%
Total Expenditures by Division 269,106 60,620 208,486 77.5% The City Council consists of five City Council members who are elected by the citizens of Cudahy. The Council, as the legislative body, represents the citizens of Cudahy to formulate citywide policy, enact local legislation, adopt budgets, etc. The Council establish policies and ordinances to ensure the development and maintenance of a balanced and stable community for citizens.

City of Cudahy
City Council
002 Page 22 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services 520,000 171,906 348,094 66.9%
-
Total Expenditures by Object 520,000 171,906 348,094 66.9% Expenditures by Division
City Attorney 520,000 171,906 348,094 66.9%
Total Expenditures by Division 520,000 171,906 348,094 66.9% City of Cudahy
City Attorney
The City Attorney is appointed by the City Council, provides legal advice and opinions on all matters affecting the City.
003 Page 23 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 195,347 54,849 140,498 71.9%
Employee Benefits 63,014 13,179 49,835 79.1%
Supplies and Services 66,190 7,194 58,996 89.1%
Contract and Election Services 170,000 - 170,000 100.0% -
Total Expenditures by Object 494,551 75,222 419,329 84.8% Expenditures by Division
City Clerk 494,551 75,222 419,329 84.8%
The City Clerk is the local official who supervises and coodinates City elections; prepares and updates the City's Conflict of Interest Code, and serves as the local filing office for the Fair Political Practices Commission; receives and opens all sealed bids; receives, processes and maintains claims, public records requests; directs the retention and destruction of official records in accordance with applicable laws and regulations.

City of Cudahy
City Clerk
004 Page 24 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 75,564 107,241 (31,677) -41.9%
Employee Benefits 39,199 24,957 14,242 36.3%
Supplies and Services 91,000 11,425 79,575 87.4%
Contract Services 145,000 15,624 129,376 89.2%
-
Total Expenditures by Object 350,763 159,247 191,516 54.6% Expenditures by Division
City Manager 350,763 159,247 191,516 54.6%
The City Manager implements City Council policy direction, provide overall project supervision, promote economic stability through business development and retention, promotes organizational stability through financial and personnel management, provide legislative support, and public relations support for the City organization. Oversee community outreach efforts, contract services administration, administration of grants and CDBG, emergency preparedness, and City Hall front desk.

City of Cudahy
City Manager
005 Page 25 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 755,673 191,050 564,623 74.7%
Employee Benefits 739,234 483,961 255,273 34.5%
Supplies and Services 181,260 67,571 113,689 62.7%
Contract Services 138,000 14,384 123,616 89.6%
Special Events 244,000 30,646 213,354 87.4%
Total Expenditures by Object 2,058,167 787,612 1,270,555 61.7% Expenditures by Division
Community Services 174,325 46,836 127,489 73.1%
Human Resources 98,305 32,461 65,844 67.0%
Recreation 920,249 236,113 684,136 74.3%
Special Events 319,000 30,646 288,354 90.4%
Other Citywide Benefits 546,288 441,556 104,732 19.2%
Total Expenditures by Division 2,058,167 787,612 1,270,555 61.7% City of Cudahy
Community Services
Special Events accounts for city-wide functions including movie nights, national night out, halloween, 4th of July, tree lighting and other holiday events.

Other includes the PERS unfunded liability and retiree insurance The Recreation Division provides seasonal and year-round recreational opportunities to the community, classes covering a variety of cultural, physical fitness, special interest subjects (Contract instructors are paid on percentage of the fees collected for their class). Provide annual citywide special events.

The Community Services Department carries out functions that facilitate the operations of other City departments and is responsible for oversight of: dissemination of information concerning City activities and programs, and Parks and Recreation.

The Human Resources Division administers the City's Human Resources program by developing and maintaining sound practices and procedures; providing advice and assistance to other departments relative to personnel matters; maintaining the City's classification and compensation plan; conducting recruitment and selection activities; providing new employee orientation and job-related training; conducting labor relations activities including employee discipline matters employer/employee negotiations, and administering the provisions of the Memorandum of Understanding; administering the employee benefits program; administering the employee performance evaluation system; and maintaining employee records.
006 Page 26 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 619,163 155,332 463,831 74.9%
Employee Benefits 213,034 35,417 177,617 83.4%
Supplies and Services 86,150 13,286 72,864 84.6%
Contract Services 197,500 87,999 109,501 55.4%
Total Expenditures by Object 1,115,847 292,034 823,813 73.8% Expenditures by Division
Community Development 83,390 30,644 52,746 63.3%
Planning 165,998 24,765 141,233 85.1%
Building Regulation 162,563 51,771 110,792 68.2%
Code Enforcement 46,395 21,908 24,487 52.8%
Municipal Enforcement 293,484 48,325 245,159 83.5%
Urban Farming 198,954 61,529 137,425 69.1%
Successor Agency 165,063 53,092 111,971 67.8%
Total Expenditures by Division 1,115,847 292,034 823,813 73.8% Muncipal Enforcement provides the necessary resources to manage vehicle parking enforcement operations, including parking permit processing data process and penalty assessment collection.

Urban Farming relates to the management and oversight of Cannabis operators established within in the City.

Community Development administers and provides administrative support to the Department including the Planning Commission. Also provides administrative support to the Successor Agency of the former Redevelopment Agency as part of its winddown process.

Planning is responsible for implementing the City's General Plan and Zoning Code which regulates the type and land uses within the City. Planning assists in guiding the orderly development of the community and ensures that new development is attractive and compatible with the surroundings and consistent with the City's codes and policies. The Department also reviews and processes development entitlement applications for compliance with zoning and subdivision regulations as well as conditional use permits. Planning staff provides technical and administrative support to the City Council and Planning Commission.

City of Cudahy
Community Development Department
Building Regulation manages construction and occupancy of buildings in accordance with local, county, state, and federal laws. Provides plan checks and inspection services for residential and commercial properties. Also manage building permit records and provide public information regarding code requirements.

Code Enforcement is responsible for enforcing the City's Use and Development Code and the Municipal Code in a fair, sensitive, and timely manner; maintain and imp community's neighborhoods and commercial areas and enforce codes relating to property maintenance, zoning, public nuisances development; work with all City departments and various outside agencies.
007 Page 27 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 235,937 54,262 181,675 77.0%
Employee Benefits 99,331 14,369 84,962 85.5%
Supplies and Services 122,550 6,409 116,141 94.8%
Contract Services 223,400 67,243 156,157 69.9%
-
Total Expenditures by Object 681,218 142,283 538,935 79.1% Expenditures by Division
Finance and Accounting 473,214 99,310 373,904 79.0%
Business License 78,604 20,539 58,065 73.9%
Information Technology 129,400 22,434 106,966 82.7%
Total Expenditures by Division 681,218 142,283 538,935 79.1% The Finance Department manages the fiscal operations of the City and maintains fiscal records in conformance with generally accepted accounting principles and in compliance with State and Federal laws. The Department's primary functions include maintaining effective systems for financial planning, disbursement control, budget development and implementation, budget monitoring, revenue administration, accounting and reporting, cash management purchasing, and investments.

The Business License Division ensures that businesses performing a service within the City boundaries are issued a license in accordance with City regulations.

Information Technolocy provides implementation, maintenance, and evaluation of city-wide technology and information system technologies, including data, voice, phone system, and technology capital infrastructures. Provide maintenance for the City on current hardware/software platforms in use by the City and provide software updates and application training support.

City of Cudahy
Finance
008 Page 28 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services 5,406,430 441,849 4,964,581 0.0%
-
Total Expenditures by Object 5,406,430 441,849 4,964,581 91.8% Expenditures by Division
Police Services 5,106,430 414,367 4,692,063 91.9%
Animal Control 210,000 26,259 183,741 87.5%
Crossing Guards 90,000 1,222 88,778 98.6%
-
Total Expenditures by Division 5,406,430 441,848 4,964,582 91.8% Crossing guards provide services during morning drop-off and afternoon pick-up hours.

Animal Control provides funds for contractual control services provided through the County of Los Angeles.

City of Cudahy
Public Safety
Police Services provides comprehensive general law and traffic enforcement services through a contract with the Los Angeles County Sheriff's Department.
009 Page 29 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Salaries and Wages 705,157 149,998 555,159 78.7%
Employee Benefits 197,909 49,207 148,702 75.1%
Supplies and Services 799,850 133,431 666,419 83.3%
Contract Services 270,200 245,558 24,642 9.1%
-
Total Expenditures by Object 1,973,116 578,194 1,394,922 70.7% Expenditures by Division
Engineering 219,278 15,852 203,426 92.8%
Parks Maintenance 909,592 171,023 738,569 81.2%
Facility Operations 844,246 391,319 452,927 53.6%
Total Expenditures by Division 1,973,116 578,194 1,394,922 70.7% Faciity Maintenance provides maintenance, repair, and general operational costs of City City of Cudahy
Public Works
Engineering provides adequate physical infrastructure throughout the City, including streets and sidewalks; administers street maintenance contracts, capital improvement projects; provides plan check and inspection services for public works permits, utility work permits, development reviews, tract/parcel map checks, lot line adjustments and certificates of compliance; analyzes traffic and right-of-way activities in the City; responds to public inquiries regarding traffic, parking, drainage, and public works issues; works with other City departments and outside agencies on regional and sub-regional transportation and public works issues.

Parks Maintenance provides resources necessary to maintain and operate the City's public parks and facilities.
010 Page 30 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Expenditures by Object
Supplies and Services 989,250 699,063 290,187 29.3%
Debt Service 505,556 126,389 379,167 75.0%
-
Total Expenditures by Object 1,494,806 825,452 669,354 44.8% Expenditures by Division
Liability and Workers Comp Insurance 989,250 699,063 290,187 29.3% Debt Service 505,556 126,389 379,167 75.0%
Total Expenditures by Division 1,494,806 825,452 669,354 44.8% City of Cudahy
Non Departmental
011 Page 31 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes 640,949 112,112 528,837 82.5%
Charges for Services - - - 0.0%
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 640,949 112,112 528,837 82.5%
Expenditures by Object
Salaries and Wages 499,833 92,857 406,976 81.4%
Employee Benefits 184,799 37,258 147,541 79.8%
Supplies and Services 241,000 17,981 223,019 74.1%
Contract Services 301,000 28,140 272,860 90.7%
Construction - 0.0%
Total Expenditures by Object 1,226,632 176,236 1,050,396 85.6% Other Sources and Uses
Operating Transfers In - - #DIV/0!
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - #DIV/0!
Increase (Decrease) in Fund Balance (585,683) (64,124) (521,559) 89.1% Beginning Fund Balance 1,442,237 1,442,237
Ending Fund Balance 1,442,237 1,378,113
City of Cudahy
Gas Tax Fund
Highway User Tax Act (HUTA) (Gas Tax) funds are collected by the State under the title of Motor Vehicle Fuel License Tax and distributed based on population. Funds may be used to construct and maintain streets and highways.
012 Page 32 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - #DIV/0!
Charges for Services - - - #DIV/0!
Intergovernmental Revenue 597,490 107,791 489,699 82.0% Licenses and Permits - - - #DIV/0!
Fines and Fees - - - #DIV/0!
Use of Money and Property 75,080 - 75,080 100.0%
Other Revenue - - - #DIV/0!
Total Revenue 672,570 107,791 564,779 84.0%
Expenditures by Object
Salaries and Wages 172,665 25,575 147,090 85.2%
Employee Benefits 56,808 6,639 50,169 88.3%
Supplies and Services 308,480 14,002 294,478 95.5%
Contract Services - - - #DIV/0!
Construction 1,680,520 4,585 1,675,935 99.7%
Total Expenditures by Object 2,218,473 50,801 2,167,672 97.7% Other Sources and Uses
Operating Transfers In - - - 0.0%
Operating Transfers Out - - - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (1,545,903) 56,990 (1,602,893) 103.7% Beginning Fund Balance 710,686 710,686
Ending Fund Balance (835,217) 767,676
City of Cudahy
Maintenance and Repair Accountability
The Road and Repair and Accountability Act of 2017 was created to address deferred maintenance on the state highway system and the local street and road system. Funds may be used for road maintenance and rehabilitation, pedestrian and bicycle safety projects, transit facilities and drainage and stormwater capture projects in conjunction with any other allowable project and traffic control devices. 013 Page 33 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue - - - 0.0%
Licenses and Permits 245,000 245,000 #REF!
Fines and Fees - 0.0%
Use of Money and Property 1,950 - 1,950 0.0%
Other Revenue - - - 0.0%
Total Revenue 246,950 - 246,950 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction - - - 0.0%
Total Expenditures by Object - - - 0.0%
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out (246,950) 246,950 0.0%
Total Other sources (Uses) (246,950) - 246,950 0.0%
Increase (Decrease) in Fund Balance - - - #DIV/0!
Beginning Fund Balance 539,563 539,563
-
Ending Fund Balance 539,563 539,563
City of Cudahy
Community Benefit Fund
The Community Benefit Program was established as part of the Development Agreements with the licensed cannabis operators. The intent of the program is to fund capital improvements, new community recreation facilities, expansion and/or improvements that provide a benefit to the community, support ofcommunity events, and support of local public service, public safety, litigation defense and special districts and social and community organizations.
014 Page 34 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services 0 - - 0.0%
Intergovernmental Revenue - - - 0.0%
Licenses and Permits 389,900 9,954 379,946 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 1,500 - 1,500 0.0%
Other Revenue - - - 0.0%
Total Revenue 391,400 9,954 381,446 0.0%
Expenditures by Object
Salaries and Wages 147,826 27,228 120,598 0.0%
Employee Benefits 48,163 8,662 39,501 0.0%
Supplies and Services - - - 0.0%
Contract Services 100,000 - 100,000 0.0%
Construction - - - 0.0%
Total Expenditures by Object 295,989 35,890 260,099 0.0% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 95,411 (25,936) 121,347 0.0% Beginning Fund Balance (1,447) (1,447)
-
Ending Fund Balance 93,964 (27,383)
City of Cudahy
Rent Stabilization
Established on June 6, 2023 through the adoption of Ordinance 736 (Rent Stabilization Ordinance) and Ordinance 737 (Tenant Protections) intended to regulate rent increases and evictions for certain tenancies and regulate evictions. This is funded through Rental Registration Fees to fund the City's cost to implement, administer, monitor, support and enforce the provisions of the rent stabilization regulation and tenant protection ordinances
015 Page 35 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 1,500,000 - 1,500,000 100.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 1,500,000 - 1,500,000 100.0%
Expenditures by Object
Salaries and Wages - - - #DIV/0!
Employee Benefits - - - #DIV/0!
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction 1,500,000 - 1,500,000 100.0%
Total Expenditures by Object 1,500,000 - 1,500,000 100.0% Other Sources and Uses
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - - -
Beginning Fund Balance - -
-
Ending Fund Balance - -
City of Cudahy
Community Project - Congressionally Directed Spending
This fund accounts for multiple grants from Federal, State, County and Special District entities. Grant funds are used for a specific project or program which requires some level of compliance, reporting and auditing.
016 Page 36 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 19,350,033 (7,996) 19,358,029 100.0% Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 19,350,033 (7,996) 19,358,029 100.0%
Expenditures by Object -
Salaries and Wages 603,115 96,103 507,012 84.1%
Employee Benefits 196,681 21,658 175,023 89.0%
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction 18,924,248 2,008,085 16,916,163 89.4%
Total Expenditures by Object 19,724,044 2,125,846 17,598,198 89.2% Other Sources and Uses
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (374,011) (2,133,842) 1,759,831 Beginning Fund Balance (1,407,707) (1,407,707)
-
Ending Fund Balance (1,781,718) (3,541,549)
City of Cudahy
Other Grants
This fund accounts for multiple grants from Federal, State, County and Special District entities. Grant funds are used for a specific project or program which requires some level of compliance, reporting and auditing. 017 Page 37 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues by Grantor
Clean California Local Grant Program 4,157,734 - 4,157,734 100.0% Statewide Park Dev and Comm Revitalization 6,581,100 - 6,581,100 100.0% RPOSD TAP Allocation 928,222 - 928,222 100.0%
Per Capita Grant 192,680 - 192,680 100.0%
Call for Projects 3,259,652 - 3,259,652 100.0%
RMC Grant 1,582,097 - 1,582,097 100.0%
Federal HSIP-11 1,353,110 - 1,353,110 100.0%
State Budget Allocation 1,295,438 - 1,295,438 100.0%
Metro TOD SIP - (7,996) 7,996 #DIV/0!
Total Revenue 19,350,033 (7,996) 19,358,029 #DIV/0!
Expenditures by Project
Grant Administration - 9,782 (9,782) #DIV/0!
Highway Street Improvement Program - 11,995 (11,995) #DIV/0! Active Transportation Program - 27,225 (27,225) #DIV/0! Citywide Complete Streets Improvement Project 3,290,825 1,279,340 2,011,485 61.1% Cudahy LA River Area Improvement Project 4,157,733 675,475 3,482,258 83.8% Cudahy Park Revitalization 6,615,140 54,116 6,561,024 99.2% Lugo & Clara Park Improvements - 20,671 (20,671) #DIV/0! PHLA - (90) 90 #DIV/0!
Clara Expansion Playground Renovation 333,641 12,773 320,868 96.2% Salt Lake Pedestrian Project (ATP 1,668,286 16,265 1,652,021 99.0% Salt Lake Pedestrian Project (ATP 1,434,757 15,818 1,418,939 98.9% Clara Expansion Park Rehab Project 2,223,662 2,477 2,221,185 99.9% 19,724,044 2,125,846 17,598,198 89.2%
City of Cudahy
Other Grants (cont'd)
018 Page 38 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - #DIV/0!
Charges for Services 2,500 137 2,363 94.5%
Intergovernmental Revenue 476,547 82,853 393,694 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 59,970 - 59,970 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 539,017 82,990 456,027 84.6%
Expenditures by Object
Salaries and Wages 166,763 21,229 145,534 87.3%
Employee Benefits 47,849 3,902 43,947 91.8%
Supplies and Services - - - #DIV/0!
Contract Services 190,000 48,034 141,966 74.7%
Construction 1,737,500 81,596 1,655,904 95.3%
Total Expenditures by Object 2,142,112 154,761 1,987,351 92.8% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (1,603,095) (71,771) (1,531,324) 95.5% Beginning Fund Balance 1,865,894 1,865,894
- -
Ending Fund Balance 262,799 1,794,123
City of Cudahy
Proposition C
Eighty percent (80%) of the 2 cent Sales and Use Tax collected in the County of Los Angeles is generated from Proposition C. Monies are used by the cities for public transit, to increase safety and improve road conditions by repairing and maintaining streets heavily used by public transit. The METRO must approve all projects.
019 Page 39 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - #DIV/0!
Charges for Services - - - 0.0%
Intergovernmental Revenue 574,518 99,887 474,631 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 54,120 - 54,120 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 628,638 99,887 528,751 84.1%
Expenditures by Object
Salaries and Wages 184,712 7,288 177,424 96.1%
Employee Benefits 22,043 2,062 19,981 90.6%
Supplies and Services 52,000 12,445 39,555 76.1%
Contract Services 100,000 76,467 23,533 23.5%
Construction 150,000 - 150,000 100.0%
Total Expenditures by Object 508,755 98,262 410,493 80.7% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 119,883 1,625 118,258 98.6% Beginning Fund Balance 1,504,000 1,504,000
Ending Fund Balance 1,623,883 1,505,625
City of Cudahy
Proposition A
Proposition A funds are a result of the County one-half cent sales tax increase approved by voters in 1980 and is allocated to cities based on population. The revenue can only be used for transit or transitrelated projects. 020 Page 40 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - #DIV/0!
Charges for Services - - - 0.0%
Intergovernmental Revenue 357,411 24,852 332,559 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue 97,020 - 97,020 100.0%
Total Revenue 454,431 24,852 429,579 94.5%
Expenditures by Object
Salaries and Wages 18,430 3,792 14,638 79.4%
Employee Benefits 5,231 1,220 4,011 76.7%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction 200,000 271 199,729 99.9%
Total Expenditures by Object 223,661 5,283 218,378 97.6% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - - - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 230,770 19,569 211,201 91.5% Beginning Fund Balance 2,220,200 2,220,200
Ending Fund Balance 2,450,970 2,239,769
City of Cudahy
Measure R
Highway User Tax Act (HUTA) (Gas Tax) monies are collected by the State under the title of Motor Vehicle Fuel License Tax and distributed to the City based on population. Funds may be used to construct and maintain streets and highways. Revenue Estimates are provided by LA METRO. 021 Page 41 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - #DIV/0!
Charges for Services - - - 0.0%
Intergovernmental Revenue 405,065 70,434 334,631 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 87,270 - 87,270 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 492,335 70,434 421,901 85.7%
Expenditures by Object
Salaries and Wages 232,121 26,255 205,866 88.7%
Employee Benefits 67,887 4,804 63,083 92.9%
Supplies and Services - - - 0.0%
Contract Services 100,000 18,293 81,707 0.0%
Construction 2,505,000 30,352 2,474,648 98.8%
Total Expenditures by Object 2,905,008 79,704 2,825,304 97.3% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (2,412,673) (9,270) (2,403,403) 99.6% Beginning Fund Balance 2,332,941 2,332,941
Ending Fund Balance (79,732) 2,323,671
Expenditures by Project
Signal Maintenance 50,000 10,113 39,887 79.8%
Street Maintenance 350,008 39,239 310,769 88.8%
Fixed Route Project 120,000 - 120,000 100.0%
Otis Ave/River Rd/Flora Ave Project 675,000 - 675,000 100.0% Cecilia Street Improvement Project 760,000 24,725 735,275 96.7% Citywide Complete Streets Imprvmt Proj 650,000 - 650,000 100.0% Clara Bridge Lighting Improvement Project 200,000 271 199,729 99.9% Citywide Traffic UPS (Battery Back 100,000 - 100,000 100.0% Atlantic Ave Complete Streets Imprvmt Proje - 5,356 (5,356) #DIV/0! 2,905,008 79,704 2,825,304 97.3%
City of Cudahy
Measure M
A county-wide one-half percent sales tax to fund transportation projects. Receipts may be used to fund several highways, transit, local street, walking and biking programs. Funding is to improve freeway traffic flow/safety; repair potholes/sidewalks; repave local streets; synchronize signals; etc. 022 Page 42 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 17,751 - 17,751 100.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 100 - 100 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 17,851 - 17,851 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction 55,000 24,225 30,775 56.0%
Total Expenditures by Object 55,000 24,225 30,775 56.0% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (37,149) (24,225) (12,924) 34.8% Beginning Fund Balance 30,637 30,637
-
Ending Fund Balance (6,512) 6,412
City of Cudahy
Transportation Development Act
The Pedestrian and Bikeway Trail grant is distributed by the Los Angeles Metropolitan Transportation Authority for sidewalks, bike trails and similar projects that encourage transportation methods other than vehicle-related.
023 Page 43 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 30,000 7,731 22,269 74.2%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 2,000 - 2,000 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 32,000 7,731 24,269 75.8%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services 55,000 9,400 45,600 0.0%
Contract Services - - - 0.0%
Construction - - - 0.0%
Total Expenditures by Object 55,000 9,400 45,600 82.9%
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (23,000) (1,669) (21,331) 92.7% Beginning Fund Balance 94,560 94,560
-
Ending Fund Balance 71,560 92,891
City of Cudahy
Air Quality Management District
This fund is used to account for revenues received from the Air Quality Management District pursuant to AB 2766. Funds from the registration of every motor vehicle registered or renewed each year in California are distributed directly to the cities in AQMD's jurisdiction for mobile source emission reduction programs.
024 Page 44 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 170,000 - 170,000 100.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 14,630 - 14,630 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 184,630 - 184,630 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction 300,100 46,619 253,481 0.0%
Total Expenditures by Object 300,100 46,619 253,481 84.5% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (115,470) (46,619) (68,851) 59.6% Beginning Fund Balance 778,972 778,972
-
Ending Fund Balance 663,502 732,353
City of Cudahy
Measure W
Accounts for funds collected from a parcel tax of 2.5 cents per square foot impermeable area. Tax receipts will be used to improve water quality, increase local supply and enhance the community. 025 Page 45 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 1,350,000 37,278 1,312,722 97.2% Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 1,350,000 37,278 1,312,722 97.2%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction 1,350,000 16,316 1,333,684 0.0%
Total Expenditures by Object 1,350,000 16,316 1,333,684 98.8% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - 20,962 (20,962) #DIV/0! Beginning Fund Balance 1,260,469 1,260,469
-
Ending Fund Balance 1,260,469 1,281,431
City of Cudahy
Measure R Capital Reserve
Highway User Tax Act (HUTA) (Gas Tax) monies are collected by the State under the title of Motor Vehicle Fuel License Tax and distributed to the City based on population. Funds may be used to construct and maintain streets and highways.
026 Page 46 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue 190,000 - 190,000 100.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 190,000 - 190,000 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services 190,000 - 190,000 0.0%
Construction - - - 0.0%
Total Expenditures by Object 190,000 - 190,000 100.0%
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - - - #DIV/0!
Beginning Fund Balance
-
Ending Fund Balance - -
City of Cudahy
COPS Grant
City's share of the Citizens' Option for Public Safety (C.O.P.S.) grant allocated according to the relative population for each county and city.
027 Page 47 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes 73,044 1,137 71,907 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue - - - #DIV/0!
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - #DIV/0!
Total Revenue 73,044 1,137 71,907 98.4%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services 145,000 17,509 127,491 0.0%
Contract Services 55,000 1,592 53,408 0.0%
Construction - - - 0.0%
Total Expenditures by Object 200,000 19,101 180,899 90.4% Other Sources and Uses - - -
Operating Transfers In 126,956 - (126,956) 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) 126,956 - (126,956) 0.0%
Increase (Decrease) in Fund Balance - (17,964) 17,964 #DIV/0! Beginning Fund Balance (115,556) (115,556)
-
Ending Fund Balance (115,556) (133,520)
City of Cudahy
Street Light Assessments
Monies collected by ad valorem property tax to provide energy costs and maintenance within the city's boundaries.
028 Page 48 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees 600,000 - 600,000 0.0%
Use of Money and Property 4,000 - 4,000 0.0%
Other Revenue - - - 0.0%
Total Revenue 604,000 - 604,000 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - - - #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 604,000 - 604,000 0.0% Beginning Fund Balance 45,572 45,572
-
Ending Fund Balance 649,572 45,572
City of Cudahy
Development Impact Fees Traffic
Development Impact Fees (DIF) are designed to address resident concerns regarding the impact of new development will have on future City growth. DIFs are paid by developers to mitigate the impacts of their development. The Development Impact Fees are identified into categories of: Traffic Facilities, Parking Facilities, Parks and Recreation, Government Facilities. 029 Page 49 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - 14,333 (14,333) 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue - 14,333 (14,333) #DIV/0!
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - - - #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - 14,333 (14,333) 0.0% Beginning Fund Balance 45,572 45,572
-
Ending Fund Balance 45,572 59,905
City of Cudahy
Development Impact Fees Traffic Facilities
Development Impact Fees (DIF) are designed to address resident concerns regarding the impact of new development will have on future City growth. DIFs are paid by developers to mitigate the impacts of their development. The Development Impact Fees are identified into categories of: Traffic Facilities, Parking Facilities, Parks and Recreation, Government Facilities. 030 Page 50 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - 0.0%
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees 387,627 108,182 279,445 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 387,627 108,182 279,445 0.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - 0.0%
Construction 387,627 1,588 386,039 0.0%
Total Expenditures by Object 387,627 1,588 386,039 0.0% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - 106,594 (106,594) 0.0% Beginning Fund Balance 674,854 674,854
-
Ending Fund Balance 674,854 781,448
City of Cudahy
Development Impact Fees - Parks and Rec Facilities
Development Impact Fees (DIF) are designed to address resident concerns regarding the impact of new development will have on future City growth. DIFs are paid by developers to mitigate the impacts of their development. The Development Impact Fees are identified into categories of: Traffic Facilities, Parking Facilities, Parks and Recreation, Government Facilities. 031 Page 51 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - 12,989 (12,989) 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue - 12,989 (12,989) #DIV/0!
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - - - #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out 60,000 - (60,000) 0.0%
Total Other sources (Uses) 60,000 - (60,000) 0.0%
Increase (Decrease) in Fund Balance 60,000 12,989 47,011 0.0% Beginning Fund Balance 59,300 59,300
-
Ending Fund Balance 119,300 72,289
City of Cudahy
Development Impact Fees Government Facilities
Development Impact Fees (DIF) are designed to address resident concerns regarding the impact of new development will have on future City growth. DIFs are paid by developers to mitigate the impacts of their development. The Development Impact Fees are identified into categories of: Traffic Facilities, Parking Facilities, Parks and Recreation, Government Facilities. 032 Page 52 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue - - - #DIV/0!
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - 1,127 (1,127) #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - 1,127 (1,127) #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - (1,127) 1,127 0.0% Beginning Fund Balance - -
-
Ending Fund Balance - (1,127)
City of Cudahy
Art in Public Places
CDBG accounts for monies received from the United States Department of Housing and Urban Development, that are used for specific projects that will provide economic development to the community.
033 Page 53 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue 365,229 35,656 329,573 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 365,229 35,656 329,573 90.2%
Expenditures by Object
Salaries and Wages 113,535 36,653 76,882 0.0%
Employee Benefits 59,047 16,459 42,588 0.0%
Supplies and Services 20,000 - 20,000 0.0%
Contract Services 134,922 1,599 133,323 98.8%
Construction - - - 0.0%
Total Expenditures by Object 327,504 54,711 272,793 83.3% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 37,725 (19,055) 56,780 0.0% Beginning Fund Balance 887,428 887,428
-
Ending Fund Balance 925,153 868,373
City of Cudahy
Community Development Block Grant
CDBG accounts for monies received from the United States Department of Housing and Urban Development, that are used for specific projects that will provide economic development to the community.
034 Page 54 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue 375,334 20,206 355,128 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - - - 0.0%
Total Revenue 375,334 20,206 355,128 94.6%
Expenditures by Object
Salaries and Wages 105,054 22,926 82,128 0.0%
Employee Benefits 29,725 5,684 24,041 0.0%
Supplies and Services - - - 0.0%
Contract Services 237,063 21,425 215,638 91.0%
Construction - - - 0.0%
Total Expenditures by Object 371,842 50,035 321,807 86.5% Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance 3,492 (29,829) 33,321 0.0% Beginning Fund Balance - -
-
Ending Fund Balance 3,492 (29,829)
City of Cudahy
Permanent Local Housing Allocation
Fund is used to account for monies received from the United States Department of Housing and Urban Development
035 Page 55 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property 10,000 - 10,000 0.0%
Other Revenue - - - 0.0%
Total Revenue 10,000 - 10,000 100.0%
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - - - #DIV/0!
Construction 711,847 - 711,847 0.0%
Total Expenditures by Object 711,847 - 711,847 100.0%
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance (701,847) - (701,847) 0.0% Beginning Fund Balance 766,523 766,523
-
Ending Fund Balance 64,676 766,523
City of Cudahy
Federal Surface Transportation Program
Surface Transportation Program Local (STP-L) provides flexible funding that may be used by states and local cities for projects to preserve and improve the conditions and performance on any federal highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure and transit capital projects.
036 Page 56 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - 39,400 (39,400) 0.0%
Other Revenue - - - 0.0%
Total Revenue - 39,400 (39,400) #DIV/0!
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - - - 0.0%
Contract Services - 98,303 (98,303) #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - 98,303 (98,303) #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - (58,903) 58,903 0.0% Beginning Fund Balance (2,708,243) (2,708,243)
-
Ending Fund Balance (2,708,243) (2,767,146)
City of Cudahy
Successor Agency
037 Page 57 of 132
FY 2025-26 FY 2025-26 Budget %
Description Budget Actual Variance Unexpended
Revenues
Taxes - - - 0.0%
Charges for Services - - - #DIV/0!
Intergovernmental Revenue - - - 0.0%
Licenses and Permits - - - 0.0%
Fines and Fees - - - 0.0%
Use of Money and Property - - - 0.0%
Other Revenue - 35 (35) 0.0%
Total Revenue - 35 (35) #DIV/0!
Expenditures by Object
Salaries and Wages - - - 0.0%
Employee Benefits - - - 0.0%
Supplies and Services - 3,000 (3,000) 0.0%
Contract Services - 4,553 (4,553) #DIV/0!
Construction - - - 0.0%
Total Expenditures by Object - 7,553 (7,553) #DIV/0!
Other Sources and Uses - - -
Operating Transfers In - - - 0.0%
Operating Transfers Out - 0.0%
Total Other sources (Uses) - - - 0.0%
Increase (Decrease) in Fund Balance - (7,518) 7,518 0.0% Beginning Fund Balance 42,836 42,836
-
Ending Fund Balance 42,836 35,318
City of Cudahy
Youth Foundation
038 Page 58 of 132
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025 Page 1 of 2

STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor/City Council/Agency Members
From: Juan Arauz/Richard Iglesias Interim City Managers By: Raul Diaz, Public Works Director
Subject: Consideration to Approve the Clean Power Alliance of Southern California Amended and Restated Joint Powers Agreement

RECOMMENDATION
The City Council is requested to approve a Joint Powers Agreement (JPA) to enter and participate in the Clean Power Alliance of Southern California (“CPA”), implementing a Community Choice Aggregation (“CCA”) program.

BACKGROUND
On October 21, 2025, the City Council adopted Ordinance No. 761, approving the Clean Power Alliance of Southern California Amended and Restated JPA; however, the agreement was inadvertently omitted from the agenda packet. Therefore, this item has been brought back with the agreement attached for City Council review and approval.

The City of Cudahy has been actively investigating options to provide electric power services to its constituents within its service area, with the intention of achieving greater local involvement in the provision of electric services and promoting renewable energy at competitive rates.

On September 24, 2002, the Governor signed into law Assembly Bill 117 (Stat. 2002, Ch. 838; see California Public Utilities Code section 366.2; hereinafter referred to as the “Act"), which authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as a CCA. The Act expressly authorizes participation in a CCA program through a joint powers agency.

Through Docket No. R.03-10-003, the California Public Utilities Commission has issued various decisions and rulings addressing the implementation of CCA programs, including a procedure by which the California Public Utilities Commission will review “Implementation Plans," which Item Number
12C

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025 Page 2 of 2

are required for submittal under the Act as the means of describing the CCA program and assuring compliance with various elements contained in the Act.

ANALYSIS
CPA offers three-tier rates defined by the amount of renewable energy in the portfolio tier:

Lean (40% renewable), Clean (50% renewable), and Green (100% renewable). The City Council will be responsible for establishing the default rate for the City for all customers to be automatically enrolled; all customers will have the option to select their desired renewable energy tier or to opt out of the program.

One of the foundational goals of the 2023 Draft Climate Action and Adaptation Plan (CAAP) is transitioning to 100% renewable energy by 2050; membership in the CPA is identified as a “Top 10 Biggest Bang for Your Buck” key strategy for reaching this foundational goal.

Should the City opt in as a CPA customer, the financial impact on the City’s electricity costs will ultimately be determined by the renewable tier rate selected. While there are no rate guarantees, CPA’s monthly rates, inclusive of Southern California Edison (“SCE”) delivery charges, averaged +/- 5% of SCE’s rates over the last three years, depending on the tier rate.

CONCLUSION
The City Council is requested to approve the Clean Power Alliance of Southern California Amended and Restated Joint Powers Agreement.

FINANCIAL IMPACT
There are no costs associated with approval of the agreement.

ATTACHMENTS
A. CPA Amended and Restated Joint Powers Agreement
B. Approved Ordinance No. 761

-1-

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

AMENDED AND RESTATED JOINT POWERS AGREEMENT
This amended and restated Joint Powers Agreement (the "A&R Agreement") is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the California Government Code relating to the joint exercise of powers among the public agencies set forth in Exhibit A.

RECITALS

1. The Parties are public agencies sharing various powers under California laws, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and their inhabitants.

2. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels. The California Air Resources Board is promulgating regulations to implement AB 32 which will require local government to develop programs to reduce greenhouse emissions.

3. The purposes for the Initial Participants (as such term is defined in Section 2.3 below) entering into this Agreement include addressing climate change by reducing energy related greenhouse gas emissions and securing energy supply and price stability; energy efficiencies and local economic benefits, such as jobs creation, community energy programs; and local power development. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy efficiency programs, including but not limited to solar and wind energy production.

4. The Parties desire to establish a separate public agency, known as the Clean Power Alliance of Southern California ("CPA"), under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) ("Act") in order to collectively study, promote, develop, conduct, operate, and manage energy programs.

5. The Initial Participants have each adopted an ordinance electing to implement through CPA a Community Choice Aggregation program pursuant to California Public Utilities Code Section 366.2 ("CCA Program"). The first priority of CPA will be the consideration of those actions necessary to implement the CCA Program.

6. The original Joint Powers Agreement became effective as of June 27, 2017 (“Effective Date”) when executed by the County of Los Angeles and the City of Rolling Hills Estates. On February 7, 2018, the Parties approved Amendment No. 1 to the Agreement clarifying the cost apportionment methodology in Section 8.1.3 in the event that a member withdraws from the CPA. On April 5, 2018, the Parties approved Amendment No. 2 to the Agreement changing the name of the organization from Los Angeles Community Choice Energy to Clean Power Alliance of Southern California. On March 7, 2019, the Parties approved Amendment No. 3 to the Agreement to clarify procedures for the election of and term limits for the Board Chair and Vice-Chairs in Sections 4.10.1 and 5.1 of the Agreement.

7. The Parties desire to amend and restate the Agreement in order to have a single document to reference and to make changes that reflect prior action by the Board. The amendments in the A&R Attachment A Page 61 of 132
-2-
Agreement shall be effective as of November 3, 2022 (“A&R Effective Date”).

8. By establishing CPA, the Parties seek to:
(a) Develop an electric supply portfolio with overall lower greenhouse gas intensity and lower greenhouse gas (GHG) emissions than Southern California Edison ("SCE"), and one that supports the achievement of the parties' greenhouse gas reduction goals and the comparable goals of all participating jurisdictions;
(b) Establish an energy portfolio that encourages the use and development of costeffective local renewable and distributed energy resources and that discourages the use unbundled renewable energy credits;
(c) Promote an energy portfolio that incorporates energy efficiency and demand response programs and pursues ambitious energy consumption reduction goals; (d) Provide electricity rates that are lower or at worst competitive with those offered by SCE for similar products;
(e) Offer differentiated energy options (e.g., 33% or 50% qualified renewable) for default service, and a 100% renewable content option in which customers may "opt-up" and voluntarily participate;
(f) Achieve quantifiable economic benefits to the region; (g) Recognize the value of current workers in existing jobs that support the energy infrastructure of Los Angeles County and Southern California (e.g., union and prevailing wage jobs, local workforce development, apprenticeship programs, and local hire). CPA, as a leader in the shift to clean energy, commits to ensuring it will take steps to minimize any adverse impacts to these workers to ensure a "just transition" to the new clean energy economy; (h) Support a stable, skilled workforce through such mechanisms as project labor agreements, collective bargaining agreements, or community benefit agreements, or other workforce programs that are designed to avoid work stoppages, ensure quality, and benefit local residents by delivering cost-effective clean energy programs and projects (e.g., new energy programs and increased local energy investments);
(i) Promote supplier and workforce diversity, including returning veterans and those from disadvantaged and under-represented communities, to better reflect the diversity of the region;
(j) Promote personal and community ownership of renewable resources, spurring equitable economic development and increased resilience, especially in low income communities;
(k) Provide and manage its energy portfolio and products in a manner that provides cost savings to customers and promotes public health in areas impacted by energy production; (I) Ensure that low-income households and communities are provided with affordable and flexible energy options, including the provision of energy discounted rates to eligible low-income households;

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(m) Recognize and address the importance of healthy communities, including those disproportionately affected by air pollution and climate change; (n) Use program revenues to provide energy-related programs and services; and (o) Create an administering CPA that is financially sustainable, responsive to regional priorities, well-managed, and a leader in fair and equitable treatment of employees.

1. DEFINITIONS

1.1 "AB 117" means Assembly Bill 117 (Stat. 2002, Ch. 838, codified at Public Utilities Code Section 366.2), which created Community Choice Aggregation.

1.2 "Act" means the Joint Exercise of Powers Act of the State of California (Chapter 5, Division 7, Title 1 of the Government Code commencing with Section 6500).

1.3 "Agreement" means this Joint Powers Agreement, as amended and/or restated from time to time, consistent with the requirements herein.

1.4 "Board" means the Board of Directors of CPA.

1.5 "Community Choice Aggregation" or "CCA" means an electric service option available to cities, counties, and other public agencies pursuant to Public Utilities Code Section 366.2.

1.6 "CCA Program" means CPA’s program relating to CCA that is principally described in Section 2.4 (Purpose) of this Agreement.

1.7 "CPA " means Clean Power Alliance of Southern California.

1.8 "CPA Document(s)" means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions and activities of CPA, including but not limited to the Operating Policies and Procedures, the annual budget, and plans and policies.

1.9 "Days" shall mean calendar days unless otherwise specified by this Agreement.

1.10 "Director" means a member of the Board representing a Party, including up to two alternate Directors appointed in accordance with Sections 4.1 (Board of Directors) and 4.2 (Appointment and Removal of Directors) of this Agreement.

1.11 "Effective Date" means the date on which the Agreement shall become effective and CPA shall exist as a separate public agency, as further described in Section

2.1 (Effective Date and Term) of this Agreement. “A&R Effective Date” means the date on which the amendments in the A&R Agreement shall become effective.

1.12 "Initial Costs" means all costs incurred by CPA relating to the establishment and initial operation of CPA, such as the hiring of the executive, technical, and any administrative staff, any required accounting, administrative, technical and legal

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services in support of CPA’s initial formation activities or in support of the negotiation, preparation and approval of power purchase agreements. The Board shall determine the termination date for the Initial Costs.

1.13 "Initial Participants" means, for purpose of this Agreement, the Counties of Los Angeles and Ventura, and the cities of Agoura Hills, Alhambra, Beverly Hills, Calabasas, Carson, Claremont, Culver City, Downey, Hawaiian Gardens, Hawthorne, Malibu, Manhattan Beach, Ojai, Paramount, Redondo Beach, Rolling Hills Estates, Santa Monica, Sierra Madre, South Pasadena, Temple City, Thousand Oaks, and West Hollywood consisting of the Parties that joined in accordance with Section 2.3 (Initial Participants) of this Agreement.

1.14 "Operating Policies and Procedures" means the rules, regulations, policies, bylaws, and procedures governing the operation of CPA.

1.15 "Parties" means, collectively, the signatories to this Agreement that have satisfied the conditions in Section 2.3 (Initial Participants) or Section 2.5 (Addition of Parties) of this Agreement, such that they are considered members of CPA.

1.16 "Party" means, singularly, a signatory to this Agreement that has satisfied the conditions in Section 2.3 (Initial Participants) or Section 2.5 (Addition of Parties) of this Agreement, such that it is considered a member of CPA.

1.17 "Public Agency" as defined in the Act includes, but is not limited to, the federal government or any federal department or agency, this state, another state or any state department or agency, a county, a county board of education, county superintendent of schools, city, public corporation, public district, regional transportation commission of this state or another state, a federally recognized Indian tribe, or any joint powers authority formed pursuant to the Act.

2. FORMATION OF CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

2.1 Effective Date and Term. This Agreement shall become effective and CPA shall exist as a separate public agency on the date this Agreement is executed by the County of Los Angeles and at least one other public agency after the adoption of the ordinances required by Public Utilities Code Section 366.2(c)(12).

CPA shall provide notice to the Parties of the Effective Date. CPA shall continue to exist, and this Agreement shall be effective, until the Agreement is terminated in accordance with Section 8.3 (Mutual Termination) of this Agreement, subject to the rights of the Parties to withdraw from CPA.

2.2 Formation of the CPA. Under the Act, the Parties hereby create a separate joint exercise of power agency which is named Clean Power Alliance of Southern California. Pursuant to Sections 6506 and 6507 of the Act, CPA is a public agency separate from the Parties. The debts, liabilities or obligations of CPA shall not be debts, liabilities, or obligations of the individual Parties unless the governing body of a Party agrees in writing to assume any of the debts, liabilities, or obligations of CPA. The jurisdiction of CPA shall be all territory within the geographic boundaries of the Parties; however CPA may, as authorized under applicable law, undertake any action outside such geographic boundaries as is necessary and incidental to the accomplishment of its purpose.

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2.3 Initial Participants. In addition to Parties executing this Agreement on or prior to the Effective Date, any incorporated municipality, county, or other eligible public agency may become a Party and recognized as an Initial Participant provided during the first 180 days after the Effective Date it executes this Agreement and delivers an executed copy of this Agreement and a copy of the adopted ordinance required by Public Utilities Code Section 366.2(c)(12) to CPA.

All Initial Participants to this Agreement shall be required to commence electric service as soon as practicable, as determined by the Board.

2.4 Purpose. The purpose and objectives of this Agreement are to establish CPA, to provide for its governance and administration, and to define the rights and obligations of the Parties. This Agreement authorizes CPA to provide a means by which the Parties can more effectively develop and implement sustainable energy initiatives that reduce energy demand, increase energy efficiency, and advance the use of clean, efficient, and renewable resources in the region for the benefit of the Parties and their constituents, including, but not limited to, establishing and operating a Community Choice Aggregation program.

2.5 Addition of Parties. After 180 days from the Effective Date any incorporated municipality, county, or other public agency may become a Party to this Agreement if all of the following conditions are met:

2.5.1 The adoption of a resolution of the Board admitting the public agency to CPA;

2.5.2 The adoption by an affirmative vote of the Board satisfying the requirements described in Section 4.10 (Board Voting) of this Agreement, of a resolution authorizing membership into CPA and establishing its pro rata share of organizational, planning and other pre-existing expenditures, and describing additional conditions, if any, associated with membership;

2.5.3 The adoption by the public agency of an ordinance required by Public Utilities Code Section 366.2(c)(12) and approval and execution of this Agreement and other necessary program agreements by the public agency;

2.5.4 Payment of the membership payment, if any; and

2.5.5 Satisfaction of any reasonable conditions established by the Board.

Pursuant to this Section 2.5 (Addition of Parties), all parties shall be required to commence electric service as soon as is practicable, as determined by the Board, as a condition to becoming a Party to this Agreement.

2.6 Continuing Participation. The Parties acknowledge that membership in CPA may change by the addition, withdrawal and/or termination of Parties. The Parties agree to participate with such other Parties as may later be added, as described in Section 2.5 (Addition of Parties) of this Agreement. The Parties also agree that the withdrawal or termination of a Party shall not affect this Agreement or the remaining Parties' continuing obligations under this Agreement.

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3. POWERS

3.1 General Powers. CPA shall have the powers common to the Parties and which are necessary or convenient to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 3.4 (Limitation on Powers) of this Agreement. As provided in the Act, CPA shall be a public agency separate and apart from the Parties.

3.2 Specific Powers. CPA shall have all powers common to the Parties and such additional powers accorded to it by law. CPA is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following:

3.2.1 make and enter into contracts;

3.2.2 employ agents and employees, including but not limited to a Chief Executive Officer;

3.2.3 acquire, contract, manage, maintain, and operate any buildings, works or improvements;

3.2.4 acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property;

3.2.5 lease any property;

3.2.6 sue and be sued in its own name;

3.2.7 incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers authorized by law pursuant to Government Code Section 53850 et seq. and authority under the Act;

3.2.8 issue revenue bonds and other forms of indebtedness;

3.2.9 apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state or local public agency;

3.2.10 form independent corporations or entities, if necessary to carry out energy supply and energy conservation programs at the lowest possible cost or to take advantage of legislative or regulatory changes;

3.2.11 submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

3.2.12 adopt rules, regulations, policies, bylaws and procedures governing the operation of CPA ("Operating Policies and Procedures"); and

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3.2.13 make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision of retail and regulatory support services.

3.3 Additional Powers to be Exercised. In addition to those powers common to each of the Parties, CPA shall have those powers that may be conferred upon it as a matter of law and by subsequently enacted legislation.

3.4 Limitation on Powers. As required by Section 6509 of the Act, the powers of CPA are subject to the restrictions upon the manner of exercising power possessed by the County of Los Angeles.

3.5 Obligations of CPA. The debts, liabilities, and obligations of CPA shall not be the debts, liabilities, and obligations of the Parties unless the governing body of a Party agrees in writing to assume any of the debts, liabilities, and obligations of CPA. In addition, pursuant to the Act, no Director shall be personally liable on the bonds or subject to any personal liability or accountability by reason of the issuance of bonds.

3.6 Compliance with the Political Reform Act and Government Code Section 1090. CPA and its officers and employees shall comply with the Political Reform Act (Government Code Section 81000 et seq.) and Government Code Section 1090 et seq. The Board shall adopt a Conflict of Interest Code pursuant to Government Code Section 87300. The Board may adopt additional conflict of interest regulations in the Operating Policies and Procedures.

4. GOVERNANCE

4.1 Board of Directors. The governing body of CPA shall be a Board of Directors ("Board") consisting of one director for each Party appointed in accordance with Section 4.2 (Appointment and Removal of Directors) of this Agreement. The Board, in consultation with the Chief Executive Officer, may determine at any time to consider options to reduce the size of the Board if it determines that the efficient functioning and operation of the Board would be improved by having a smaller number of Directors. Any such change to the size of the Board would require amendment of this Joint Powers Agreement in accordance with Section 4.11 (Special Voting).

4.2 Appointment and Removal of Directors. The Directors shall be appointed and may be removed as follows:

4.2.1 The governing body of each Party shall appoint and designate in writing one regular Director who shall be authorized to act for and on behalf of the Party on matters within the powers of CPA. The governing body of each Party shall appoint and designate in writing up to two alternate Directors who may vote on matters when the regular Director is absent from a Board meeting. The person appointed and

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designated as the regular Director shall be an elected or appointed member of the governing body of the Party. The persons appointed and designated as the alternate Directors may be an elected or appointed member of the governing body of the Party, an appointed member of an advisory body of the Party, a staff member of the Party or a member of the public who meets the criteria below. All Directors and alternates shall be subject to the Board's adopted Conflict of Interest Code.
(a) Any alternate Director that is a member of the public must have demonstrated knowledge in energy-related matters
through significant experience in either: 1) an electric utility or company, agency, or nonprofit providing services to a utility, 2) a regulatory agency or local government body overseeing an electric utility or a company, agency, or nonprofit providing services to such an agency, 3) an academic or nonprofit organization engaged in research and/or advocacy related to the electric sector.

4.2.2 The Operating Policies and Procedures, to be developed and approved by the Board in accordance with Section 3.2.12 (Specific Powers), shall specify the reasons for and process associated with the removal of an individual Director for cause. Notwithstanding the foregoing, no Party shall be deprived of its right to seat a Director on the Board and any such Party for which its Director and/or alternate Directors have been removed may appoint a replacement.

4.3 Terms of Office. Each regular and alternate Director shall serve at the pleasure of the governing body of the Party that the Director represents, and may be removed as Director by such governing body at any time. If at any time a vacancy occurs on the Board, the affected Party shall appoint to fill the position of the previous Director within 90 days of the date that such position becomes vacant.

4.4 Purpose of Board. The general purpose of the Board is to:

4.4.1 Provide structure for administrative and fiscal oversight;

4.4.2 Retain a Chief Executive Officer to oversee day-to-day operations;

4.4.3 Retain legal counsel;

4.4.4 Identify and pursue funding sources;

4.4.5 Set policy;

4.4.6 Maximize the utilization of available resources; and

4.4.7 Oversee all Committee activities.

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4.5 Specific Responsibilities of the Board. The specific responsibilities of the Board shall be as follows:

4.5.1 Identify Party needs and requirements;

4.5.2 Formulate and adopt the budget prior to the commencement of the fiscal year;

4.5.3 Develop and implement a financing and/or funding plan for ongoing CPA operations;

4.5.4 Retain necessary and sufficient staff and adopt personnel and compensation policies, rules and regulations;

4.5.5 Adopt rules for procuring supplies, equipment, and services

4.5.6 Adopt rules for the disposal of surplus property;

4.5.7 Establish standing and ad hoc committees as necessary to ensure that the interests and concerns of each Party are represented and to ensure operational, technical, and financial issues are thoroughly researched and analyzed;

4.5.8 The setting of retail rates for power sold by CPA and the setting of charges for any other category of retail service provided by CPA;

4.5.9 Termination of the CCA Program;

4.5.10 Address any concerns of consumers and customers;

4.5.11 Conduct and oversee CPA audits at intervals not to exceed three years;

4.5.12 Arrange for an annual independent fiscal audit;

4.5.13 Adopt such bylaws, rules and regulations as are necessary or desirable for the purposes hereof; provided that nothing in the bylaws, rules and regulations shall be inconsistent with this Agreement;

4.5.14 Exercise the Specific Powers identified in Sections 3.2 and 4.6 except as the Board may elect to delegate to the Chief Executive Officer; and

4.5.15 Discharge other duties as appropriate or required by statute.

4.6 Startup Responsibilities. CPA shall have the duty to do the following within one year of the Effective Date of the Agreement:

4.6.1 To adopt an implementation plan prepared by the County of Los Angeles, pursuant to Public Utilities Code Section 366.2(c)(3), for electrical load aggregation;

4.6.2 To prepare a statement of intent, pursuant to Public Utilities Code

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Section 366.2(c)(4), for electrical load aggregation;

4.6.3 To encourage other qualified public agencies to participate in CPA;

4.6.4 To obtain financing and/or funding as is necessary or desirable;

4.6.5 To evaluate the need for, acquire, and maintain insurance.

4.7 Meetings and Special Meetings of the Board. The Board shall hold at least one regular meeting per year but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour, and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special meetings of the Board may be called in accordance with the provisions of Government Code Section 54956.

Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law.

4.8 Brown Act Applicable. All meetings of the Board shall be conducted in accordance with the provisions of the Ralph M. Brown Act (Government Code Section 54950, et seq.).

4.9 Quorum; Approvals. A majority of the Directors shall constitute a quorum, except that less than a quorum may adjourn from time to time in accordance with law. The affirmative votes of a majority of the Directors who are present at the subject meeting shall be required to take any action by the Board.

4.10 Board Voting.

4.10.1 Percentage Vote. Each Director shall have one vote. Action of the Board on all matters shall require an affirmative vote of a majority of all Directors who are present at the subject meeting, except when a supermajority vote is expressly required by this Agreement and except as expressly specified for the election of Board Officers and At-Large members of the Executive Committee in the bylaws. When a supermajority vote is required under Section 4.11 (Special Voting), action of the Board shall require an affirmative vote of the specified supermajority of all Directors who are present at the subject meeting. All votes taken pursuant to this Section 4.10.1 shall be referred to as a percentage vote. Notwithstanding the foregoing, in the event of a tie in a percentage vote, the Board can break the tie and act upon an affirmative voting shares vote as described in section 4.10.2 (Voting Shares Vote).

4.10.2 Voting Shares Vote. In addition to and immediately after an affirmative percentage vote three or more Directors may request that a vote of the voting shares shall be held. In such event, the corresponding voting shares, as described in section 4.10.3, of all Directors voting in order to take an action shall exceed 50%, or such other higher voting shares percentage expressly required by this Agreement or the Operating Policies and Procedures of all Directors who are present at the subject meeting. All votes taken pursuant to this Section 4.10.2 shall be referred to as a voting shares vote. In the event that any one Director has a voting

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share that equals or exceeds that which is necessary to disapprove the matter being voted on by the Board, at least one other Director shall be required to vote in the negative in order to disapprove such matter. When a voting shares vote is held, action by the Board requires both an affirmative percentage vote and an affirmative voting shares vote.

4.10.3 Voting Shares Formula. When a voting shares vote is requested by three or more Directors, voting shares of the Directors shall be determined by the following formula:
(Annual Energy Use/Total Annual Energy) multiplied by 100, where (a) "Annual Energy Use" means (i) with respect to the first two years following the Effective Date, the annual electricity usage, expressed in kilowatt hours ("kWh"), within the Party's respective jurisdiction and (ii) with respect to the period after the second anniversary of the Effective Date, the annual electricity usage, expressed in kWh, of accounts within a Party's respective jurisdiction that are served by CPA and (b) "Total Annual Energy" means the sum of all Parties' Annual Energy Use.

4.11 Special Voting.

4.11.1 Except as provided below, matters that require Special Voting as described in this Section shall require 72 hours prior notice to any Brown Act meeting or special meeting. Two-thirds vote (or such greater vote as required by state law) of the appointed Directors shall be required to take any action on the following:
(a) Change the designation of Treasurer or Auditor of CPA; (b) Issue bonds or other forms of debt;
(c) Exercise the power of eminent domain, subject to prior approval by the passage of an authorizing ordinance or other legally sufficient action by the affected Party; and
(d) Amend this Agreement or adopt or amend the bylaws of CPA. At least 30 days advance notice shall be provided for such actions.

CPA shall also provide prompt written notice to all Parties of the action taken and enclose the adopted or modified documents.

5. INTERNAL ORGANIZATION

5.1 Chair and Vice Chairs. The Board shall elect a Chair and designate Vice Chairs from among the Directors. The term of office of the Chair and Vice Chairs shall continue for two years. The Chair shall be the presiding officer of all Board meetings, and a Vice Chair shall serve in the absence of the Chair. The Chair shall perform such other duties as may be imposed by the Board. In the absence of the Chair, a ViceChair shall perform all of the Chair's duties. The office of the Chair or a Vice Chair shall be declared vacant and a new selection shall be made if: (a) the person serving dies, resigns, or the Party that the person represents removes the person as its

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representative on the Board, (b) the Party that he or she represents withdraws from CPA pursuant to the provisions of this Agreement, or (c) as specified in the bylaws.

Upon a vacancy, the position shall be filled at the next regular meeting of the Board held after such vacancy occurs or as specified in the bylaws. Succeeding officers shall perform the duties normal to said offices.

5.2 Secretary. The Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of the Board and all other office records of CPA.

5.3 Treasurer. The Board shall appoint a qualified person to act as the Treasurer, who need not be a member of the Board. Unless otherwise exempted from such requirement, CPA shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6506 of the Act. The Treasurer shall act as the depositary of CPA and have custody of all the money of CPA, from whatever source, and as such, shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The Board may require the Treasurer to file with CPA an official bond in an amount to be fixed by the Board, and if so requested CPA shall pay the cost of premiums associated with the bond. The Treasurer shall report directly to the Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time.

5.4 Auditor. The Board shall appoint a qualified person to act as the Auditor, who shall not be a member of the Board. The Board may require the Auditor to file with CPA an official bond in an amount to be fixed by the Board, and if so requested CPA shall pay the cost of premiums associated with the bond.

5.5 Chief Executive Officer. The Board shall appoint a Chief Executive Officer for CPA, who shall be responsible for the day-to-day operation and management of CPA and the CCA Program. The Chief Executive Officer may exercise all powers of CPA, except those powers specifically reserved to the Board including but not limited to those set forth in Section 4.5 (Specific Responsibilities of the Board) of this Agreement or the Operating Policies and Procedures, or those powers which by law must be exercised by the Board. The Chief Executive Officer may enter into and execute any Energy Contract, in accordance with criteria and policies established by the Board.

5.6 Bonding of Persons Having Access to Property. Pursuant to the Act, the Board shall designate the public officer or officers or person or persons who have charge of, handle, or have access to any property of CPA exceeding a value as established by the Board, and shall require such public officer or officers or person or persons to file an official bond in an amount to be fixed by the Board.

5.7 Other Employees/Agents. The Board shall have the power by resolution to hire employees or appoint or retain such other agents, including officers, loan-out employees, or independent contractors, as may be necessary or desirable to carry-out the purpose of this Agreement.

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5.8 Privileges and Immunities from Liability. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activities of officers, agents or employees of a public agency when performing their respective functions shall apply to the officers, agents or employees of CPA to the same degree and extent while engaged in the performance of any of the functions and other duties of such officers, agents or employees under this Agreement. None of the officers, agents or employees directly employed by the Board shall be deemed, by reason of their employment by CPA to be employed by the Parties or by reason of their employment by CPA, to be subject to any of the requirements of the Parties.

5.9 Commissions, Boards and Committees. The Board may establish any advisory commissions, boards and committees as the Board deems appropriate to assist the Board in carrying outs its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement. The Board may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees and shall determine whether members shall be compensated or entitled to reimbursement for expenses.

5.9.1 The Board shall establish the following Advisory Committees:
(a) Executive Committee. The Board shall establish an executive committee consisting of a smaller number of Directors. The Board may delegate to the Executive Committee's such authority as the Board might otherwise exercise, except that the Board may not delegate authority regarding certain essential functions, including but not limited to, approving the fiscal year budget or hiring or firing the Chief Executive Officer, and other functions as provided in the Operating Policies and Procedures. The Board may not delegate to the Executive Committee or any other committee its authority under Section 3.2.12 to adopt and amend the Operating Policies and Procedures.
(b) Finance Committee. The Board shall establish a finance committee consisting of a smaller number of Directors. The primary purpose of the Finance Committee is to review and recommend to the Board:
(1) A funding plan;
(2) A fiscal year budget;
(3) Financial policies and procedures to ensure equitable contributions by Parties;
(4) Such other responsibilities as provided in the Operating Policies and Procedures, including but not limited to
policies, rules and regulations governing investment of surplus funds, and selection and designation of financial

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institutions for deposit of CPA funds.
(c) Community Advisory Committee. The Board shall
establish a community advisory committee comprised of members of the public representing key stakeholder communities. The primary purpose of the Community Advisory Committee shall be to provide a venue for ongoing citizen support and engagement in the operations of CPA.
(d) Meetings of the Advisory Committees. All meetings of the Advisory Committees shall be held in accordance with the Ralph M. Brown Act. For the purposes of convening meetings and conducting business, unless otherwise provided in the bylaws, a majority of the members of the Advisory Committee shall constitute a quorum for the transaction of business, except that less than a quorum or the secretary of each Advisory
Committee may adjourn meetings from time-to-time. As soon as practicable, but no later than the time of posting, the Secretary of the Advisory Committee shall provide notice and the agenda to each Party, Director and Alternate Directors. (e) Officers of Advisory Committees. Unless otherwise determined by the Board, each Advisory Committee shall choose its officers, comprised of a Chairperson, a Vice-Chairperson and a Secretary.

6. IMPLEMENTATION ACTION AND CPA DOCUMENTS

6.1 Preliminary Implementation of the CCA Program.

6.1.1 Enabling Ordinance. In addition to the execution of this Agreement, each Party shall adopt an ordinance in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose of specifying that the Party intends to implement a CCA Program by and through its participation in CPA.

6.1.2 Implementation Plan. CPA shall cause to be prepared and secure Board approval of an Implementation Plan meeting the requirements of Public Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations as soon after the Effective Date as reasonably practicable.

6.1.3 Termination of CCA Program. Nothing contained in this Section 6 or this Agreement shall be construed to limit the discretion of CPA to terminate the implementation or operation of the CCA Program at any time in accordance with any applicable requirements of state law.

6.2 CPA Documents. The Parties acknowledge and agree that the affairs of CPA will be implemented through various documents duly adopted by the Board through Board resolution or minute action, including but not necessarily limited to the Operating Policies and Procedures, the annual budget, and specified plans

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and policies defined as CPA Documents by this Agreement. The Parties agree to abide by and comply with the terms and conditions of all such CPA Documents that may be adopted by the Board, subject to the Parties' right to withdraw from CPA as described in Section 8 (Withdrawal and Termination) of this Agreement.

7. FINANCIAL PROVISIONS

7.1 Fiscal Year. CPA’s fiscal year shall be 12 months commencing July 1 and ending June 30. The fiscal year may be changed by Board resolution.

7.2 Depository.

7.2.1 All funds of CPA shall be held in separate accounts in the name of CPA and not commingled with funds of any Party or any other person or entity.

7.2.2 All funds of CPA shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of CPA shall be open to inspection and duplication by the Parties at all reasonable times. The Board shall contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of CPA, which shall be conducted in accordance with the requirements of Section 6506 of the Act.

7.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Policies and Procedures. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.

7.3 Budget and Recovery Costs.

7.3.1 Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of CPA shall be prepared and approved by the Board in accordance with the Operating Policies and Procedures.

7.3.2 Funding of Initial Costs. Subject to the approval of the Board of Supervisors, the County of Los Angeles has agreed to provide up to $10 million for funding Initial Costs in establishing CPA and implementing the CCA Program. In the event that the CCA Program becomes operational, the County of Los Angeles shall be reimbursed for the Initial Costs. The County and CPA will execute an agreement specifying the terms and conditions of the Initial Costs provided by the County, including but not limited to: (a) Repayment of this amount, which shall be first priority in relation to all other indebtedness of CPA; and (b) authorization for the County Auditor-Controller to conduct an audit of CPA’s books and records (including personnel records, as necessary) and/or investigation, following

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reasonable advance notice from the County, to ensure compliance with the terms and conditions of the agreement. CPA may establish a reasonable time period over which such costs are recovered. In the event that the CCA Program does not become operational, the County shall not be entitled to any reimbursement of the Initial Costs they have paid from CPA or any other Party.

7.3.3 Program Costs. The Parties desire that, to the extent reasonably practicable, all costs incurred by CPA that are directly or indirectly attributable to the provision of electric services under the CCA Program, including the establishment and maintenance of various reserve and performance funds, shall be recovered through charges to CCA customers receiving such electric services.

7.3.4 General Costs. Costs that are not directly or indirectly attributable to the provision of electric services under the CCA Program, as determined by the Board, shall be defined as general costs. General costs shall be shared among the Parties on such bases as the Board shall determine pursuant to CPA documents.

7.4 Contributions. Parties are not required under this Agreement to make any financial contributions. Consumers may subscribe as customers of CPA pursuant to the Act and outside of this Agreement and through their on-bill selections.

7.4.1 A Party may, in the appropriate circumstance, and when agreed-to:
(a) Make contributions from its treasury for the purposes set forth in this Agreement;
(b) Make payments of public funds to defray the cost of the purposes of the Agreement and CPA;
(c) Make advances of public funds for such purposes, such advances to be repaid as provided by written agreement; or
(d) Use its personnel, equipment or property in lieu of other contributions or advances.
(e) No Party shall be required to adopt any tax, assessment, fee, or charge under any circumstances.

7.5 Accounts and Reports. The Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any trust agreement entered into with respect to the proceeds of any bonds issued by CPA. The books and records of CPA in the hands of the Treasurer shall be open to inspection and duplication at all reasonable times by duly appointed representatives of the Parties. The Treasurer, within 180 days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Parties.

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7.6 Funds. The Treasurer shall receive, have custody of and/or disburse CPA funds in accordance with the laws applicable to public agencies and generally accepted accounting practices, and shall make the disbursements required by this Agreement in order to carry out any of the purposes of this Agreement.

8. WITHDRAWAL AND TERMINATION

8.1 Withdrawal

8.1.1 Withdrawal by Parties. Any Party may withdraw its membership in CPA, effective as of the beginning of CPA’s fiscal year, by giving no less than 180 days advance written notice of its election to do so, which notice shall be given to CPA and each Party. Withdrawal of a Party shall require an affirmative vote of the Party's governing board.

8.1.2 Amendment. Notwithstanding Section 8.1.1 (Withdrawal by Parties) of this Agreement, a Party may withdraw its membership in CPA upon approval and execution of an amendment to this Agreement provided that the requirements of this Section 8.1.2 are strictly followed. A Party shall be deemed to have withdrawn its membership in CPA effective 180 days after the Board approves an amendment to this Agreement if the Director representing such Party has provided notice to the other Directors immediately preceding the Board's vote of the Party's intention to withdraw its membership in CPA should the amendment be approved by the Board.

8.1.3 Continuing Liability; Further Assurances. A Party that withdraws its membership in CPA may be subject to certain continuing liabilities, as described in Section 8.4 (Continuing Liability; Refund) of this Agreement, including, but not limited to, Power Purchase Agreements. The withdrawing Party and CPA shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from membership in CPA. The Operating Policies and Procedures shall prescribe the rights if any of a withdrawn Party to continue to participate in those Board discussions and decisions affecting customers of the CCA Program that reside or do business within the jurisdiction of the Party. Notwithstanding the foregoing, CPA shall use best efforts to sell the withdrawing Party's pro rata share of the liability under its Power Purchase Agreement(s) within the 180 days referenced in Section 8.1.1. In the event CPA sells the withdrawing member's share or a portion thereof, the withdrawing Party will pay the difference between the liability under the Power Purchase Agreement and the liability sold to the other party, if any.

8.2 Involuntary Termination. This Agreement may be terminated with respect to a Party for material non-compliance with provisions of this Agreement or CPA Documents upon an affirmative vote of the Board in which the minimum

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percentage vote and percentage voting shares, as described in Section 4.10 (Board Voting) of this Agreement, shall be no less than 67% excluding the vote and voting shares of the Party subject to possible termination. Prior to any vote to terminate this Agreement with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or CPA Documents that the Party has allegedly violated. The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its membership in CPA terminated may be subject to certain continuing liabilities, as described in Section 8.4 (Continuing Liability; Refund) of this Agreement. In the event that CPA decides to not implement the CCA Program, the minimum percentage vote of 67% shall be conducted in accordance with Section 4.10 (Board Voting) of this Agreement.

8.3 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its membership in CPA, and thus terminate this Agreement with respect to such withdrawing Party, as described in Section 8.1 (Withdrawal) of this Agreement.

8.4 Continuing Liability; Refund. Upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or liabilities arising from the Party's membership in CPA through the date of its withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any claims, demands, damages, or liabilities arising after the date of the Party's withdrawal or involuntary termination. In addition, such Party also shall be responsible for any costs or obligations associated with the Party's participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Party. CPA may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with CPA, as reasonably determined by CPA, to cover the Party's liability for the costs described above. Any amount of the Party's funds held on deposit with CPA above that which is required to pay any liabilities or obligations shall be returned to the Party.

8.5 Disposition of CPA Assets. Upon termination of this Agreement and dissolution of CPA by all Parties, and after payment of all obligations of CPA, the Board:

8.5.1 May sell or liquidate CPA property; and

8.5.2 Shall distribute assets to Parties in proportion to the contributions made by the existing Parties.

Any assets provided by a Party to CPA shall remain the asset of that Party and shall not be subject to distribution under this section.

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9. MISCELLANEOUS PROVISIONS

9.1 Dispute Resolution. The Parties and CPA shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. Before exercising any remedy provided by law, a Party or the Parties and CPA shall engage in nonbinding mediation or arbitration in the manner agreed upon by the Party or Parties and CPA. The Parties agree that each Party may specifically enforce this section 9.1 (Dispute Resolution). In the event that nonbinding mediation or arbitration is not initiated or does not result in the settlement of a dispute within 60 days after the demand for mediation or arbitration is made, any Party and CPA may pursue any remedies provided by law.

9.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees of CPA shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee.

CPA shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code Section 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, CPA, or its Directors, officers, or employees.

9.3 Indemnification of Parties. CPA shall acquire such insurance coverage as is necessary to protect the interests of CPA, the Parties and the public. CPA shall defend, indemnify and hold harmless the Parties and each of their respective governing board members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts and omissions of CPA under this Agreement.

9.4 Notices. Any notice required or permitted to be made hereunder shall be in writing and shall be delivered in the manner prescribed herein at the principal place of business of each Party. The Parties may give notice by (1) personal delivery; (2) e-mail; (3) U.S. Mail, first class postage prepaid, or a faster delivery method; or (4) by any other reasonable method deemed appropriate by the Board.

Upon providing written notice to all Parties, any Party may change the designated address or e-mail for receiving notice.

All written notices or correspondence sent in the described manner will be deemed given to a party on whichever date occurs earliest: (1) the date of personal delivery; (2) the third business day following deposit in the U.S. mail, when sent by "first class" mail; or (3) the date of transmission, when sent by email or facsimile.

9.5 Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of each Party.

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9.6 Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section 9.6 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties. This Section 9.6 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party's contributions to CPA, or the disposition of the proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of CPA or the Parties under this Agreement.

9.7 Severability. If any one or more of the terms, provisions, promises, covenants, or conditions of this Agreement were adjudged invalid or void by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants, and conditions of this Agreement shall not be affected thereby and shall remain in full force and effect to the maximum extent permitted by law.

9.8 Governing Law. This Agreement is made and to be performed in the State of California, and as such California substantive and procedural law shall apply.

9.9 Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing the language of this Agreement.

9.10 Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages.

9.11 No Third Party Beneficiaries. This Agreement and the obligations hereunder are not intended to benefit any party other than CPA and its Parties, except as expressly provided otherwise herein. No entity that is not a signatory to this Agreement shall have any rights or causes of action against any party to this Agreement as a result of that party's performance or non-performance under this Agreement, except as expressly provided otherwise herein.

9.12 Filing of Notice of Agreement. Within 30 days after the Effective Date, or amendment thereto, the Secretary shall cause to be filed with the Secretary of State the notice of Agreement required by the Act.

IN WITNESS WHEREOF, each Party has caused this Agreement to be executed and attested by its proper officers thereunto duly authorized, its official seals to be hereto affixed, as follows:

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[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
BY _________________________________ DATE: November 3, 2022 Julian Gold, Chair

APPROVED AS TO FORM
Nancy Whang
By: __________________________________
General Counsel

Exhibit A - Members
The following entities are Parties of the Clean Power Alliance of Southern California:

1. Agoura Hills

2. Alhambra

3. Arcadia

4. Beverly Hills

5. Calabasas

6. Camarillo

7. Carson

8. Claremont

9. Culver City

10. Downey

11. Hawaiian Gardens

12. Hawthorne

13. Los Angeles County

14. Malibu

15. Manhattan Beach

16. Moorpark

17. Ojai

18. Oxnard

19. Paramount

20. Redondo Beach

21. Rolling Hills Estates

22. Santa Monica

23. Sierra Madre

24. Simi Valley

25. South Pasadena

26. Temple City

27. Thousand Oaks

28. Ventura City

29. Ventura County

30. West Hollywood

31. Westlake Village

32. Whittier

Attachment B

Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025

STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Stephanie Arechiga, City Attorney
Subject: Consideration to Approve Two (2) Second Amendments to Interim City Manager Employment Agreements

RECOMMENDATION
The City Council is requested to approve the attached two (2) Second Amendments to the Employment Agreements with the Interim City Managers.

BACKGROUND
At the regular meeting on Tuesday, September 16, 2025, the City Council adopted two agreements for Co-Interim City Manager positions, appointing Juan Arauz and Richard Iglesias as Co-Interim City Managers. On Tuesday, November 4, 2025, the City Council adopted a First Amendment extending the current term of the Interim City Manager agreements through Friday, December 5, 2025. Subsequently on November 18, 2025, the City Council adopted an amended and restated First Amendment, clarifying the need to continue to pay the interim City Managers at the same rate as stated in the original agreement.

The City Council has adopted an agreement for a regular full time City Manager, however, that agreement does not begin until Wednesday, January 14, 2026. To ensure continuity, the City Council wishes to extend the Employment Agreements with the interims through January 13, 2026.

FINANCIAL IMPACT
The funds that will pay the salary for the Co-Interim City Managers has been budgeted under the City Manager budget.

Item Number
12D

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/02/2025

ATTACHMENTS
A. Second Amendment to Interim City Manager Employment Agreement with Juan Arauz B. Second Amendment to Interim City Manager Employment Agreement with Richard Iglesias

1 2025

SECOND AMENDMENT TO INTERIM CITY MANAGER EMPLOYMENT AGREEMENT

BETWEEN THE CITY OF CUDAHY AND JUAN ARAUZ
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain agreement entitled “Interim City Manager Employment Agreement” dated the 22nd of September 2025 (hereinafter, the “Master Agreement”), is hereby made and entered into this 2nd day of December 2025 (hereinafter, the “Effective Date”), by and between the CITY OF CUDAHY, a California municipal corporation (hereinafter, “City”) and JUAN ARAUZ, an individual (“Arauz”). For the purposes of this Second Amendment, the capitalized term “Parties” shall be a collective reference to both City and Arauz and the capitalized term “Party” may refer to either City or Arauz interchangeably as appropriate.

RECITALS
This Second Amendment is made and entered into with respect to the following facts:

WHEREAS, on September 16, 2025, the Parties executed and entered into the Master Agreement for Interim City Manager Services; and WHEREAS, on November 4, 2025, the Parties executed and entered into a First Amendment that extended the Term of the Master Agreement through December 5, 2025; and
WHEREAS, on November 18, 2025, the Parties executed and entered into an Amended and Restated First Amendment clarifying that the extension of the Term also included a continuation of the hourly payments as set forth in the Master Agreement; and WHEREAS, the Master Agreement, as amended by way of the Amended and Restated First Amendment is attached and incorporated hereto as Exhibit “A”; and WHEREAS, the City Council requires continued Interim City Manager services through January 13, 2025, and desires to extend the Term as extended in the First Amendment; and
WHEREAS, extension of the Term through January 13, 2025, will include continued payment at the same hourly rate as set forth in the Master Agreement; and WHEREAS, the execution of this Second Amendment was approved by the Cudahy City Council at its Regular Meeting of December 2, 2025, under Agenda Item No. ____.

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 1.2 (Term) of the Master Agreement is hereby amended for a new Term of Monday, September 22, 2025, through Wednesday, January 13, 2026.

Attachment A Page 91 of 132
2 SECTION 2. Except as otherwise set forth in this Second Amendment, the Master Agreement, as amended by way of the Second Amendment, shall remain binding, controlling, and in full force and effect. Section 1.2 (Term) of the Master Agreement notwithstanding, this Second Amendment, together with the Amended and Restated First Amendment and the Master Agreement, and shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 3. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the provisions of the Master Agreement, the provisions of this Second Amendment shall govern and control to the extent of the conflict or inconsistency and no further.
(SIGNATURES ON NEXT PAGE)

3 IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY:

By: ___________________________
Elizabeth Alcantar Loza, Mayor

Date: ________
APPROVED AS TO FORM:

By: ______________________________
Stephanie A. Arechiga, City Attorney
Date: ______
JUAN ARAUZ:

By:

Name:

Date:_______________________

4 EXHIBIT “A”

MASTER AGREEMENT

1 2025

AMENDED AND RESTATED FIRST AMENDMENT TO INTERIM CITY MANAGER

EMPLOYMENT AGREEMENT BETWEEN THE CITY OF CUDAHY AND JUAN ARAUZ THIS AMENDED AND RESTATED FIRST AMENDMENT (hereinafter, “Amended and Restated First Amendment”) to that certain agreement entitled “Interim City Manager Employment Agreement” dated the 22nd of September 2025 (hereinafter, the “Master Agreement”), is hereby made and entered into this 18th day of November 2025 (hereinafter, the “Effective Date”), by and between the CITY OF CUDAHY, a California municipal corporation (hereinafter, “City”) and JUAN ARAUZ, an individual (“Arauz”). For the purposes of this Amended and Restated First Amendment, the capitalized term “Parties” shall be a collective reference to both City and Arauz and the capitalized term “Party” may refer to either City or Arauz interchangeably as appropriate.

RECITALS
This Amended and Restated First Amendment is made and entered into with respect to the following facts:

WHEREAS, on September 16, 2025, the Parties executed and entered into the Master Agreement for Interim City Manager Services; and WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit “A”; and
WHEREAS, the Parties now agree to extend the Term of the Master Agreement; and
WHEREAS, the Parties agree that extension of the Term will also include extension of the total sum paid to Arauz; and
WHEREAS, the execution of this Amended and Restated First Amendment was approved by the Cudahy City Council at its Regular Meeting of November 18, 2025, under Agenda Item No. 12(G).

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 1.2 (Term) of the Master Agreement is hereby amended for a new Term of Monday, September 22, 2025 through Friday, December 5, 2025.

SECTION 2. Section 5.1 (Rate of Pay) of the Master Agreement is hereby amended to read as follows:
“For all services performed by Arauz as Co-Interim City Manager under this Agreement, City shall pay Arauz at the rate of Nineteen Dollars and Fifty-Three Cents ($19.53) per hour according to the payroll schedule in place for City employees, subject to the limitations provided below. Arauz’s compensation is for all hours worked and for all

2 services under this Agreement, including those as Executive Directors or involving any other position, office or appointment associated with the City. Arauz shall be exempt from the overtime pay provisions of California law (if any) and federal law.” SECTION 3. Except as otherwise set forth in this Amended and Restated First Amendment, the Master Agreement, as amended by the way of this Amended and Restated First Amendment, shall remain binding, controlling, and in full force and effect.

Section 1.2 of the Master Agreement notwithstanding, this Amended and Restated First Amendment, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 4. In the event of any conflict or inconsistency between the provisions of this Amended and Restated First Amendment and the provisions of the Master Agreement, the provisions of this Amended and Restated First Amendment shall govern and control to the extent of the conflict or inconsistency and no further. (SIGNATURES ON NEXT PAGE)

3 IN WITNESS WHEREOF, the Parties hereto have caused this Amended and Restated First Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY:

By: ___________________________
Elizabeth Alcantar Loza, Mayor

Date: ________
APPROVED AS TO FORM:

By: ______________________________
Stephanie A. Arechiga, City Attorney
Date: ______
JUAN ARAUZ:

By:

Name:

Date:_______________________

4 EXHIBIT “A”

MASTER AGREEMENT

1 2025

INTERIM CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN

THE CITY OF CUDAHY AND JUAN ARAUZ
THIS INTERIM CITY MANAGER EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of September 22, 2025, by and between the City of Cudahy, a California municipal corporation ("City") and Juan Arauz, an individual (“Arauz”). The capitalized term “Parties” shall be a collective reference to both City and Arauz and the capitalized term “Party” may refer to either City or Arauz interchangeably as appropriate.

RECITALS
WHEREAS, the City is currently recruiting for a full time City Manager, and in the meantime requires the services of an Interim City Manager; WHEREAS, the City Council finds that together, Arauz and City Clerk, Richard Iglesias (“Iglesias”) have the combined education, experience, skills, and expertise and are otherwise qualified to serve as Co-Interim City Manager and both desires to serve in such capacity;
WHEREAS, in accordance with Sections 2.04.070 and 2.12.020 of the Cudahy Municipal Code, the City Council desires to enter into an employment agreement that sets forth the terms and conditions of employment of Arauz as Co-Interim City Manager with Iglesias, including the duties, salary, and benefits of employment; WHEREAS, Arauz desires to accept employment as Co-Interim City Manager under the terms set forth herein; and
WHEREAS, this Agreement was approved by the City Council at the Regular Meeting of September 16, 2025, in open session as part of the Regular Meeting Agenda under Agenda Item No. 14(E) in compliance with Government Code Sections 53262, 54953(c)(3) and 54956(b).

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Arauz agree as follows:

I.

ENGAGEMENT TERMS

1.1 APPOINTMENT AS INTERIM CO-CITY MANAGER. The City does hereby appoint and employ Arauz as Co-Interim City Manager effective September 22, 2025 (“Effective Date”), and Arauz hereby accepts such employment.

1.2 TERM: Unless sooner terminated as provided herein below, the term of this Agreement shall commence on the Effective Date and shall continue through Tuesday, November 4, 2025 (“Term”). The Term may be extended for three (3) one-month periods at the option of the City, provided that City provides Arauz with written notice of City’s intent to exercise City’s option to extend the term of the Agreement no less than ten (10) days prior to the expiration of the Term or any

2 prior extension term. In the event City exercises its option to extend this Agreement, all terms, conditions, and provisions of this Agreement shall remain in effect and govern the duties, responsibilities, and liabilities of the parties hereto.

II.

CO-INTERIM CITY MANAGER DUTIES AND AUTHORITY

2.1 Together, Arauz and Iglesias shall exercise the full powers and perform the duties of the position of City Manager as set forth in Chapter 2.12 (City Manager) of Title 2 (Administration and Personnel) of the Cudahy Municipal Code, the California Government Code, any human resources rules, any departmental and other rules, regulations and procedures, the City Manager job description (if any), and any provisions under state law, as each of them currently or may in the future exist, with the following exceptions:

A. Request City Council approval prior to any action taken pursuant to Section

2.12.030 (3) of the Cudahy Municipal Code, with the exception of filling the positions of:
• Permit Technician
• Assistant Planner
• Assistant to the City Manager
• Finance Director
B. The amount set forth in Section 2.12.030 (13) of the Cudahy Municipal Code is hereby amended to $5,000, such as together Arauz and Iglesias are only authorized to execute contracts on behalf of the City with a value of $5,000 or less.

C. When disagreement arise between Arauz and Iglesias as to how to proceed when executing Co-Interim City Manager Duties, the Mayor shall be consulted and provide feedback as to how to proceed.

D. The execution of any document on behalf of the City, including but not limited to agreements, checks, and related instruments, shall require the signature of only one Interim City Manager, no such document shall be executed absent the prior concurrence of both Interim City Managers.

2.2 Arauz, along with Iglesias, shall be responsible to the City Council for the proper administration of all affairs of the City. Arauz and Iglesias shall also exercise such other powers and authority and perform such other functions and duties as may legally be assigned from time to time by the City Council or are customary and appropriate to the position of City Manager.

2.3 Arauz and Iglesias shall report directly to the City Council and shall use all reasonable efforts to keep the City Council fully informed of all significant operations or major undertakings of the City.

2.4 City also designates Arauz and Iglesias as the Executive Directors of other CityPage 100 of 132 3 related legal entities including but not limited to, any joint powers authority of which the City is a member, or any other agency created or staffed by City, subject to any procedures applicable to said legal entity and if approved by the City Council.

III.

CO-INTERIM CITY MANAGER OBLIGATIONS

3.1 Arauz shall devote the time necessary to adequately perform his duties as CoInterim City Manager as set forth in this Agreement and utilize their best efforts to promote the City's interests. Arauz's duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty (40) hour workweek and may also include time outside normal office hours (including attendance at City Council meetings and other City sponsored functions). Arauz shall be classified as an exempt employee from the overtime pay provisions of California law and federal law, and as such are expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager position. In recognition of the significant time Arauz will need to devote outside normal office hours to business activities of the City, and the exempt salaried nature of the employment, Arauz is permitted to exercise a flexible work schedule. However, consistent with this flexibility and Arauz's participation in activities out of the office, Arauz will be expected to keep office hours at the Cudahy City Hall, 5220 Santa Ana Street, Cudahy, CA 90201 (“City Hall”) during the days that City Hall is open during normal business hours.

3.2 Arauz agrees not to become otherwise employed nor engage in any outside business activities while this Agreement is in effect without the prior written approval of the City Council. For purposes of this Agreement, outside business activities means any outside employment or any outside commercial activity which actually or potentially interferes with or poses a conflict with Arauz’s position as Co-Interim City Manager, or which would otherwise constitute a violation of state or federal laws, including but not limited to the California Political Reform Act (Government Code Section 81000) and Government Code Section 1090. Further, Arauz shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the City of Cudahy (except for stock ownership in any company whose capital stock is publicly held and regularly traded) without prior approval of the City Council.

3.3 For and during the Term of this Agreement, Arauz further agrees, except for a personal residence or residential property acquired or held for future use as Arauz’s personal residence, not to invest in any other real estate property improvements within the City without the prior consent of the City Council.

3.4 Arauz shall also comply with the conflict of interest provisions of the California Government Code and any conflict of interest code applicable to Arauz’s City employment. Such compliance includes submitting to the City Clerk a Form 700 Statement of Economic Interest at the time of appointment, annually thereafter,

4 and at the time of separation from the position.

3.5 In the case that Arauz becomes permanently disabled or is otherwise unable to perform his duties without reasonable accommodations because of sickness, accident, injury, mental incapacity, or health for a period of two consecutive weeks, the City Council shall have the option to terminate this Agreement and no severance shall be entitled to Arauz.

3.6 Arauz agrees to comply with all applicable ethical standards having the force of state law.

IV.

COMPENSATION AND EXPENSES

4.1 The City shall provide the Co-Interim City Managers with the compensation and benefits as specified in Section 5 (Salary and Benefits) of this Agreement.

4.2 General Expenses. City recognizes that Arauz may incur certain expenses of a non-personal and job-related nature. Accordingly, the City shall pay for or provide Arauz reimbursement for all actual and necessary business expenses, as approved by the City Council. Arauz shall submit request for reimbursement to the City Council prior to the expense being incurred. Failure to submit expenses prior to incurring them shall result in an immediate denial of the reimbursement. Such expenses shall be incurred, submitted, and reimbursed in compliance with any applicable limitations or restrictions under California state law, as well as any Cityapproved travel and reimbursement policies as the same may be amended from time to time by the City Council. All expenses must be supported by documentation meeting City's normal requirements and must be submitted within any time limits established by City.

V.

SALARY AND BENEFITS

5.1 RATE OF PAY. For all services performed by Arauz as Co-Interim City Manager under this Agreement, City shall pay Arauz a total of FIVE THOUSAND DOLLARS ($5,000) (“Salary”). This Salary shall be paid at the rate of $19.53 per hour according to the payroll schedule in place for City employees, subject to the limitations provided below. Arauz’s compensation is for all hours worked and for all services under this Agreement, including those as Executive Directors or involving any other position, office or appointment associated with the City. Arauz shall be exempt from the overtime pay provisions of California law (if any) and federal law.

5.2 BENEFITS. Arauz shall continue to receive his same benefits provided by the City to employees, including without limitation health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar benefits. Arauz shall receive no additional benefits under the Term of this Agreement.

5.3 HOLIDAYS. Arauz shall be entitled to the same paid Holidays as was made

5 available prior to this Agreement.

5.4 BONDING. City shall bear the full costs of any fidelity or other bonds required of Arauz (if any) under any law or ordinance for the services rendered under this Agreement.

VI.

INDEMNIFICATION

6.1 Except as otherwise permitted, provided, limited, or required by law, including without limitation California Government Code Sections 825, 995, and 995.2 through 995.8, the City will defend and pay any costs and judgments assessed against Arauz arising out of an act or omission by Arauz occurring in the course and scope of Arauz’s performance of the Co-Interim City Manager duties under this Agreement.

6.2 Any and all defense payments or other benefits which may be provided to Arauz under this Agreement upon termination or in the event of an investigation shall be subject to and interpreted to comply with the limitations set forth in Government Code Sections 53243 through 54244, including, without limitation, the obligation of Arauz to reimburse the City for any funds paid should Arauz be convicted of a crime involving an abuse of office or position as defined in Government Code Section 53243.4.

VII.

AT-WILL EMPLOYMENT RELATIONSHIP

7.1 Consistent with California Government Code Section 36506, Arauz is an “at-will” employee and serves at the pleasure of the City Council. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of City to terminate this Agreement and the employment of Arauz and/or remove Arauz as Co-Interim City Manager for convenience and without cause, upon written notice. Upon termination, the employment relationship shall end, and City shall pay Arauz for all services through the effective date of termination. Arauz acknowledges and agrees that Arauz shall have no right to any additional compensation or payment, except as provided in Section 5 (Salary and Benefits) above.

7.2 The foregoing notwithstanding, nothing in this subsection shall be construed to prevent the City Council, under such circumstance, from immediately terminating this Agreement and Arauz’s employment with the City at any time for cause as provided under Section 8 (Termination) of this Agreement, below.

7.3 Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Arauz to resign from Arauz’s employment with City, subject only to Arauz providing ten (10) calendar days prior written notice to the City Council, unless the Parties mutually agree to waive or alter the time required for such notice. If Arauz voluntarily resigns his position as Co-Interim City Manager, he shall not be entitled to any severance payment.

6 VIII.

TERMINATION

8.1 BY CITY. This Agreement may be terminated by City for any reason, fifteen (15) days after providing written notice to Arauz of such termination. City's only obligation in the event of such termination will be payment to Arauz for all compensation then due and owing as set forth in Section 5 (Salary and Benefits) up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to CalPERS statutory or regulatory requirements.

8.2 BY ARAUZ. This Agreement may be terminated by Arauz for any reason twenty (20) days after providing written notice to City of such termination. City shall have the option, in its complete discretion, to make Arauz’s termination effective at any time prior to the end of such period, provided City pays Arauz all compensation as set forth in Section 5 (Salary and Benefits) then due and owing through the last day actually worked.

8.3 NO NOTICE FOR EXPIRATION. Nothing in this Section 8 shall be construed to require either party to give advance written notice for the Agreement to expire as set forth in Section 1.2 (Term), above.

8.4 TERMINATION OBLIGATIONS. Arauz hereby agrees that all property, including, without limitation, all equipment, tangible proprietary information, documents, records, notes, contracts, and computer-generated materials furnished to or prepared by their incident to their employment belongs to City and shall be returned promptly to City upon termination of Arauz’s employment. Arauz’s obligations under this subsection shall survive the termination of their employment and the expiration of this Agreement.

8.5 EMPLOYMENT AFTER TERMINATION. After the Term has expired, or either Party has terminated pursuant to Section 8 (Termination), Arauz will continue to be employed by the City as Community Development Director/Assistant City Manager. Nothing in this Agreement shall alter the Community Development Director/Assistant City Manager position that Arauz currently holds.

IX.

CONFIDENTIAL INFORMATION

9.1 Arauz acknowledges and agrees that in the performance of Co-Interim City Manager duties, the City discloses and entrusts Arauz with certain confidential or proprietary information. Arauz agrees not to directly or indirectly disclose or use at any time any such information, whether it be in the form of records, lists, data, personnel information, reports or otherwise, of a business or technical nature, which was acquired or viewed by Arauz during his relationship with the City unless such disclosure is authorized by the City in writing, required by law, or required in the performance of the duties of Co-Interim City Manager. This provision shall survive the termination or expiration of this Agreement.

7 X.

GENERAL PROVISIONS

10.1 INTEGRATION. This Agreement sets forth the final, complete and exclusive Agreement between City and Arauz relating to the employment of Arauz by City as Co-Interim City Manager. Any prior discussions, agreements or representations by or between the Parties are merged into and rendered null and void by this Agreement. The Parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement. The foregoing notwithstanding, Arauz acknowledges that, except as expressly provided in this Agreement, Arauz’s employment as Co-Interim City Manager is subject to City's generally applicable rules and policies pertaining to employment matters, such as but not limited to those addressing equal employment opportunity, sexual harassment, and violence in the workplace as they currently or may in the future exist.

10.2 REPRESENTATIONS. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or written, have been made by any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding on either Party. Arauz acknowledges that, except as expressly provided in this Agreement, Arauz’s employment is subject to City's generally applicable rules and policies pertaining to employment matters, such as those addressing equal employment opportunity, sexual harassment, and violence in the workplace.

10.3 AMENDMENTS. This Agreement may only be amended by a writing approved by the City Council and signed by City and Arauz.

10.4 BINDING EFFECT. This Agreement shall be binding on the City and Arauz.

10.5 SEVERABILITY. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances.

10.6 PREVAILING PARTY ATTORNEYS' FEES. In any action to enforce this Agreement or resolve any dispute or controversy arising under the terms and conditions hereof, the prevailing Party shall be entitled to payment of reasonable attorneys' fees and costs.

10.7 CHOICE OF LAW AND VENUE. This Agreement shall be interpreted and construed pursuant to and in accordance with the local laws of the State of California and all applicable City Codes, Ordinances and Resolutions. The Parties agree that venue shall be in Los Angeles County, California.

10.8 DRAFTING OF AGREEMENT. The Parties hereto acknowledge and agree that although this Agreement has been drafted by City's legal counsel, Arauz has

8 reviewed, or had an opportunity to review the terms of this Agreement with Arauz’s legal counsel. Consequently, the doctrine that ambiguities in an agreement should be resolved against the drafting Party, shall not be employed in connection with this Agreement, and this Agreement shall be interpreted in accordance with its fair meaning.

10.9 INDEPENDENT REVIEW OF AGREEMENT. Arauz acknowledges that he has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. Arauz acknowledges that he has made an independent judgment upon the financial and legal effects of this Agreement and has not relied upon any representation of City, its officers, agents, or employees other than those expressly set forth in this Agreement.

10.10 NOTICES. Any notice given to City under this Agreement shall be given in writing to City, by personal service, by overnight delivery service providing confirmation of delivery, or by registered or certified mail, postage prepaid, addressed to the Director of Human Resources at the City's then principal place of business. Any such notice to Arauz shall be given in a like manner and, if deposited with an overnight delivery service or mailed, shall be addressed to Arauz at his home addresses then shown in City's files. For the purpose of determining compliance with any time limit in this Agreement, a notice shall be deemed to have been duly given (a) on the date of delivery, if served personally on the Party to whom notice is to be given, (b) on the next delivery day following deposit with an overnight delivery service, or (c) on the third calendar day after mailing, if mailed to the Party to whom the notice is to be given in the manner provided in this paragraph.

10.11 VOLUNTARY AGREEMENT. Arauz represents and warrants that he has read carefully and fully understands all the provisions of this Agreement, that he is free to enter into this Agreement and to render the services described in it, that his entering into and performing under this Agreement will not breach or violate or conflict with any other agreement (written or oral) to which Arauz is a Party, and that Arauz has had an opportunity to consult with legal counsel prior to entering into this Agreement and has either done so or voluntarily chosen not to do so.

Arauz is voluntarily entering into this Agreement. The City represents and warrants that it has the right and power to enter into this Agreement. (SIGNATURES ON NEXT PAGE)

9 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF CUDAHY
By:

Elizabeth Alcantar Loza, Mayor

Date:_______________________

JUAN ARAUZ
By:

Name:

Date:_______________________
APPROVED AS TO FORM:

By: _____
Stephanie A. Arechiga, City Attorney
Date:____________________________

1 2025

SECOND AMENDMENT TO INTERIM CITY MANAGER EMPLOYMENT AGREEMENT

BETWEEN THE CITY OF CUDAHY AND RICHARD IGLESIAS
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain agreement entitled “Interim City Manager Employment Agreement” dated the 22nd of September 2025 (hereinafter, the “Master Agreement”), is hereby made and entered into this 2nd day of December 2025 (hereinafter, the “Effective Date”), by and between the CITY OF CUDAHY, a California municipal corporation (hereinafter, “City”) and RICHARD IGLESIAS, an individual (“Iglesias”). For the purposes of this Second Amendment, the capitalized term “Parties” shall be a collective reference to both City and Iglesias and the capitalized term “Party” may refer to either City or Iglesias interchangeably as appropriate.

RECITALS
This Second Amendment is made and entered into with respect to the following facts:

WHEREAS, on September 16, 2025, the Parties executed and entered into the Master Agreement for Interim City Manager Services; and WHEREAS, on November 4, 2025, the Parties executed and entered into a First Amendment that extended the Term of the Master Agreement through December 5, 2025; and
WHEREAS, on November 18, 2025, the Parties executed and entered into an Amended and Restated First Amendment clarifying that the extension of the Term also included a continuation of the hourly payments as set forth in the Master Agreement; and WHEREAS, the Master Agreement, as amended by way of the Amended and Restated First Amendment is attached and incorporated hereto as Exhibit “A”; and WHEREAS, the City Council requires continued Interim City Manager services through January 13, 2025, and desires to extend the Term as extended in the First Amendment; and
WHEREAS, extension of the Term through January 13, 2025, will include continued payment at the same hourly rate as set forth in the Master Agreement; and WHEREAS, the execution of this Second Amendment was approved by the Cudahy City Council at its Regular Meeting of December 2, 2025, under Agenda Item No. ____.

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 1.2 (Term) of the Master Agreement is hereby amended for a new Term of Monday, September 22, 2025, through Wednesday, January 13, 2026.

Attachment B Page 108 of 132
2 SECTION 2. Except as otherwise set forth in this Second Amendment, the Master Agreement, as amended by way of the Second Amendment, shall remain binding, controlling, and in full force and effect. Section 1.2 (Term) of the Master Agreement notwithstanding, this Second Amendment, together with the Amended and Restated First Amendment and the Master Agreement, and shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 3. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the provisions of the Master Agreement, the provisions of this Second Amendment shall govern and control to the extent of the conflict or inconsistency and no further.
(SIGNATURES ON NEXT PAGE)

3 IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY:

By: ___________________________
Elizabeth Alcantar Loza, Mayor
Date: ________
APPROVED AS TO FORM:

By: ______________________________
Stephanie A. Arechiga, City Attorney
Date: ______
RICHARD IGLESIAS:

By:

Name:

Date:_______________________

4 EXHIBIT “A”

MASTER AGREEMENT

1 2025

AMENDED AND RESTATED FIRST AMENDMENT TO INTERIM CITY MANAGER

EMPLOYMENT AGREEMENT BETWEEN THE CITY OF CUDAHY AND RICHARD

IGLESIAS
THIS AMENDED AND RESTATED FIRST AMENDMENT (hereinafter, “Amended and Restated First Amendment”) to that certain agreement entitled “Interim City Manager Employment Agreement” dated the 22nd of September 2025 (hereinafter, the “Master Agreement”), is hereby made and entered into this 18th day of November 2025 (hereinafter, the “Effective Date”), by and between the CITY OF CUDAHY, a California municipal corporation (hereinafter, “City”) and RICHARD IGLESIAS, an individual (“Iglesias”). For the purposes of this Amended and Restated First Amendment, the capitalized term “Parties” shall be a collective reference to both City and Iglesias and the capitalized term “Party” may refer to either City or Iglesias interchangeably as appropriate.

RECITALS
This Amended and Restated First Amendment is made and entered into with respect to the following facts:

WHEREAS, on September 16, 2025, the Parties executed and entered into the Master Agreement for Interim City Manager Services; and WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit “A”; and
WHEREAS, the Parties now agree to extend the Term of the Master Agreement; and
WHEREAS, the Parties agree that extension of the Term will also include extension of the total sum paid to Iglesias; and
WHEREAS, the execution of this Amended and Restated First Amendment was approved by the Cudahy City Council at its Regular Meeting of November 18, 2025, under Agenda Item No. 12(G).

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 1.2 (Term) of the Master Agreement is hereby amended for a new Term of Monday, September 22, 2025 through Friday, December 5, 2025.

SECTION 2. Section 5.1 (Rate of Pay) of the Master Agreement is hereby amended to read as follows:
“For all services performed by Iglesias as Co-Interim City Manager under this Agreement, City shall pay Iglesias at the rate of Nineteen Dollars and Fifty-Three Cents ($19.53) per hour according to the payroll schedule in place for City employees, subject

2 to the limitations provided below. Iglesias’s compensation is for all hours worked and for all services under this Agreement, including those as Executive Directors or involving any other position, office or appointment associated with the City. Iglesias shall be exempt from the overtime pay provisions of California law (if any) and federal law.” SECTION 3. Except as otherwise set forth in this Amended and Restated First Amendment, the Master Agreement, as amended by the way of this Amended and Restated First Amendment, shall remain binding, controlling, and in full force and effect.

Section 1.2 of the Master Agreement notwithstanding, this Amended and Restated First Amendment, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 4. In the event of any conflict or inconsistency between the provisions of this Amended and Restated First Amendment and the provisions of the Master Agreement, the provisions of this Amended and Restated First Amendment shall govern and control to the extent of the conflict or inconsistency and no further. (SIGNATURES ON NEXT PAGE)

3 IN WITNESS WHEREOF, the Parties hereto have caused this Amended and Restated First Amendment to be executed on the day and year first appearing above.

CITY OF CUDAHY:

By: ___________________________
Elizabeth Alcantar Loza, Mayor

Date: ________
APPROVED AS TO FORM:

By: ______________________________
Stephanie A. Arechiga, City Attorney
Date: ______
RICHARD IGLESIAS:

By:

Name:

Date:_______________________

4 EXHIBIT “A”

MASTER AGREEMENT

1 2025

INTERIM CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN

THE CITY OF CUDAHY AND RICHARD IGLESIAS
THIS INTERIM CITY MANAGER EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of September 22, 2025, by and between the City of Cudahy, a California municipal corporation ("City") and Richard Iglesias, an individual (“Iglesias”).

The capitalized term “Parties” shall be a collective reference to both City and Iglesias and the capitalized term “Party” may refer to either City or Iglesias interchangeably as appropriate.

RECITALS
WHEREAS, the City is currently recruiting for a full time City Manager, and in the meantime requires the services of an Interim City Manager; WHEREAS, the City Council finds that together, Iglesias and Community Development Director/Assistant City Manager, Juan Arauz (“Arauz”) have the combined education, experience, skills, and expertise and are otherwise qualified to serve as CoInterim City Manager and both desires to serve in such capacity; WHEREAS, in accordance with Sections 2.04.070 and 2.12.020 of the Cudahy Municipal Code, the City Council desires to enter into an employment agreement that sets forth the terms and conditions of employment of Iglesias as Co-Interim City Manager with Arauz, including the duties, salary, and benefits of employment; WHEREAS, Iglesias desires to accept employment as Co-Interim City Manager under the terms set forth herein; and
WHEREAS, this Agreement was approved by the City Council at the Regular Meeting of September 16, 2025, in open session as part of the Regular Meeting Agenda under Agenda Item No. 14(E) in compliance with Government Code Sections 53262, 54953(c)(3) and 54956(b).

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Iglesias agree as follows:

I.

ENGAGEMENT TERMS

1.1 APPOINTMENT AS INTERIM CO-CITY MANAGER. The City does hereby appoint and employ Iglesias as Co-Interim City Manager effective September 22, 2025 (“Effective Date”), and Iglesias hereby accepts such employment.

1.2 TERM: Unless sooner terminated as provided herein below, the term of this Agreement shall commence on the Effective Date and shall continue through Tuesday, November 4, 2025 (“Term”). The Term may be extended for three (3) one-month periods at the option of the City, provided that City provides Iglesias with written notice of City’s intent to exercise City’s option to extend the term of the

2 Agreement no less than ten (10) days prior to the expiration of the Term or any prior extension term. In the event City exercises its option to extend this Agreement, all terms, conditions, and provisions of this Agreement shall remain in effect and govern the duties, responsibilities, and liabilities of the parties hereto.

II.

CO-INTERIM CITY MANAGER DUTIES AND AUTHORITY

2.1 Together, Iglesias and Arauz shall exercise the full powers and perform the duties of the position of City Manager as set forth in Chapter 2.12 (City Manager) of Title 2 (Administration and Personnel) of the Cudahy Municipal Code, the California Government Code, any human resources rules, any departmental and other rules, regulations and procedures, the City Manager job description (if any), and any provisions under state law, as each of them currently or may in the future exist, with the following exceptions:

A. Request City Council approval prior to any action taken pursuant to Section

2.12.030 (3) of the Cudahy Municipal Code, with the exception of filling the positions of:
• Permit Technician
• Assistant Planner
• Assistant to the City Manager
• Finance Director
B. The amount set forth in Section 2.12.030 (13) of the Cudahy Municipal Code is hereby amended to $5,000, such as together Iglesias and Arauz are only authorized to execute contracts on behalf of the City with a value of $5,000 or less.

C. When disagreement arise between Iglesias and Arauz as to how to proceed when executing Co-Interim City Manager Duties, the Mayor shall be consulted and provide feedback as to how to proceed.

D. The execution of any document on behalf of the City, including but not limited to agreements, checks, and related instruments, shall require the signature of only one Interim City Manager, no such document shall be executed absent the prior concurrence of both Interim City Managers.

2.2 Iglesias, along with Arauz, shall be responsible to the City Council for the proper administration of all affairs of the City. Iglesias and Arauz shall also exercise such other powers and authority and perform such other functions and duties as may legally be assigned from time to time by the City Council or are customary and appropriate to the position of City Manager.

2.3 Iglesias and Arauz shall report directly to the City Council and shall use all reasonable efforts to keep the City Council fully informed of all significant operations or major undertakings of the City.

3 2.4 City also designates Iglesias and Arauz as the Executive Directors of other Cityrelated legal entities including but not limited to, any joint powers authority of which the City is a member, or any other agency created or staffed by City, subject to any procedures applicable to said legal entity and if approved by the City Council.

III.

CO-INTERIM CITY MANAGER OBLIGATIONS

3.1 Iglesias shall devote the time necessary to adequately perform his duties as CoInterim City Manager as set forth in this Agreement and utilize their best efforts to promote the City's interests. Iglesias's duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty (40) hour workweek and may also include time outside normal office hours (including attendance at City Council meetings and other City sponsored functions). Iglesias shall be classified as an exempt employee from the overtime pay provisions of California law and federal law, and as such are expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager position. In recognition of the significant time Iglesias will need to devote outside normal office hours to business activities of the City, and the exempt salaried nature of the employment, Iglesias is permitted to exercise a flexible work schedule. However, consistent with this flexibility and Iglesias's participation in activities out of the office, Iglesias will be expected to keep office hours at the Cudahy City Hall, 5220 Santa Ana Street, Cudahy, CA 90201 (“City Hall”) during the days that City Hall is open during normal business hours.

3.2 Iglesias agrees not to become otherwise employed nor engage in any outside business activities while this Agreement is in effect without the prior written approval of the City Council. For purposes of this Agreement, outside business activities means any outside employment or any outside commercial activity which actually or potentially interferes with or poses a conflict with Iglesias’s position as Co-Interim City Manager, or which would otherwise constitute a violation of state or federal laws, including but not limited to the California Political Reform Act (Government Code Section 81000) and Government Code Section 1090. Further, Iglesias shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the City of Cudahy (except for stock ownership in any company whose capital stock is publicly held and regularly traded) without prior approval of the City Council.

3.3 For and during the Term of this Agreement, Iglesias further agrees, except for a personal residence or residential property acquired or held for future use as Iglesias’s personal residence, not to invest in any other real estate property improvements within the City without the prior consent of the City Council.

3.4 Iglesias shall also comply with the conflict of interest provisions of the California Government Code and any conflict of interest code applicable to Iglesias’s City employment. Such compliance includes submitting to the City Clerk a Form 700 Statement of Economic Interest at the time of appointment, annually thereafter,

4 and at the time of separation from the position.

3.5 In the case that Iglesias becomes permanently disabled or is otherwise unable to perform his duties without reasonable accommodations because of sickness, accident, injury, mental incapacity, or health for a period of two consecutive weeks, the City Council shall have the option to terminate this Agreement and no severance shall be entitled to Iglesias.

3.6 Iglesias agrees to comply with all applicable ethical standards having the force of state law.

IV.

COMPENSATION AND EXPENSES

4.1 The City shall provide the Co-Interim City Managers with the compensation and benefits as specified in Section 5 (Salary and Benefits) of this Agreement.

4.2 General Expenses. City recognizes that Iglesias may incur certain expenses of a non-personal and job-related nature. Accordingly, the City shall pay for or provide Iglesias reimbursement for all actual and necessary business expenses, as approved by the City Council. Iglesias shall submit request for reimbursement to the City Council prior to the expense being incurred. Failure to submit expenses prior to incurring them shall result in an immediate denial of the reimbursement.

Such expenses shall be incurred, submitted, and reimbursed in compliance with any applicable limitations or restrictions under California state law, as well as any City-approved travel and reimbursement policies as the same may be amended from time to time by the City Council. All expenses must be supported by documentation meeting City's normal requirements and must be submitted within any time limits established by City.

V.

SALARY AND BENEFITS

5.1 RATE OF PAY. For all services performed by Iglesias as Co-Interim City Manager under this Agreement, City shall pay Iglesias a total of FIVE THOUSAND DOLLARS ($5,000) (“Salary”). This Salary shall be paid at the rate of $19.53 per hour according to the payroll schedule in place for City employees, subject to the limitations provided below. Iglesias’s compensation is for all hours worked and for all services under this Agreement, including those as Executive Directors or involving any other position, office or appointment associated with the City. Iglesias shall be exempt from the overtime pay provisions of California law (if any) and federal law.

5.2 BENEFITS. Iglesias shall continue to receive his same benefits provided by the City to employees, including without limitation health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar benefits.

Iglesias shall receive no additional benefits under the Term of this Agreement.

5.3 HOLIDAYS. Iglesias shall be entitled to the same paid Holidays as was made

5 available prior to this Agreement.

5.4 BONDING. City shall bear the full costs of any fidelity or other bonds required of Iglesias (if any) under any law or ordinance for the services rendered under this Agreement.

VI.

INDEMNIFICATION

6.1 Except as otherwise permitted, provided, limited, or required by law, including without limitation California Government Code Sections 825, 995, and 995.2 through 995.8, the City will defend and pay any costs and judgments assessed against Iglesias arising out of an act or omission by Iglesias occurring in the course and scope of Iglesias’s performance of the Co-Interim City Manager duties under this Agreement.

6.2 Any and all defense payments or other benefits which may be provided to Iglesias under this Agreement upon termination or in the event of an investigation shall be subject to and interpreted to comply with the limitations set forth in Government Code Sections 53243 through 54244, including, without limitation, the obligation of Iglesias to reimburse the City for any funds paid should Iglesias be convicted of a crime involving an abuse of office or position as defined in Government Code Section 53243.4.

VII.

AT-WILL EMPLOYMENT RELATIONSHIP

7.1 Consistent with California Government Code Section 36506, Iglesias is an “at-will” employee and serves at the pleasure of the City Council. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of City to terminate this Agreement and the employment of Iglesias and/or remove Iglesias as Co-Interim City Manager for convenience and without cause, upon written notice. Upon termination, the employment relationship shall end, and City shall pay Iglesias for all services through the effective date of termination. Iglesias acknowledges and agrees that Iglesias shall have no right to any additional compensation or payment, except as provided in Section 5 (Salary and Benefits) above.

7.2 The foregoing notwithstanding, nothing in this subsection shall be construed to prevent the City Council, under such circumstance, from immediately terminating this Agreement and Iglesias’s employment with the City at any time for cause as provided under Section 8 (Termination) of this Agreement, below.

7.3 Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Iglesias to resign from Iglesias’s employment with City, subject only to Iglesias providing ten (10) calendar days prior written notice to the City Council, unless the Parties mutually agree to waive or alter the time required for such notice. If Iglesias voluntarily resigns his position as Co-Interim City Manager, he shall not be entitled to any severance payment.

6 VIII.

TERMINATION

8.1 BY CITY. This Agreement may be terminated by City for any reason, fifteen (15) days after providing written notice to Iglesias of such termination. City's only obligation in the event of such termination will be payment to Iglesias for all compensation then due and owing as set forth in Section 5 (Salary and Benefits) up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to CalPERS statutory or regulatory requirements.

8.2 BY IGLESIAS. This Agreement may be terminated by Iglesias for any reason twenty (20) days after providing written notice to City of such termination. City shall have the option, in its complete discretion, to make Iglesias’s termination effective at any time prior to the end of such period, provided City pays Iglesias all compensation as set forth in Section 5 (Salary and Benefits) then due and owing through the last day actually worked.

8.3 NO NOTICE FOR EXPIRATION. Nothing in this Section 8 shall be construed to require either party to give advance written notice for the Agreement to expire as set forth in Section 1.2 (Term), above.

8.4 TERMINATION OBLIGATIONS. Iglesias hereby agrees that all property, including, without limitation, all equipment, tangible proprietary information, documents, records, notes, contracts, and computer-generated materials furnished to or prepared by their incident to their employment belongs to City and shall be returned promptly to City upon termination of Iglesias’s employment. Iglesias’s obligations under this subsection shall survive the termination of their employment and the expiration of this Agreement.

8.5 EMPLOYMENT AFTER TERMINATION. After the Term has expired, or either Party has terminated pursuant to Section 8 (Termination), Iglesias will continue to be employed by the City as City Clerk. Nothing in this Agreement shall alter the City Clerk position that Iglesias currently holds.

IX.

CONFIDENTIAL INFORMATION

9.1 Iglesias acknowledges and agrees that in the performance of Co-Interim City Manager duties, the City discloses and entrusts Iglesias with certain confidential or proprietary information. Iglesias agrees not to directly or indirectly disclose or use at any time any such information, whether it be in the form of records, lists, data, personnel information, reports or otherwise, of a business or technical nature, which was acquired or viewed by Iglesias during his relationship with the City unless such disclosure is authorized by the City in writing, required by law, or required in the performance of the duties of Co-Interim City Manager. This provision shall survive the termination or expiration of this Agreement.

X.

7 GENERAL PROVISIONS

10.1 INTEGRATION. This Agreement sets forth the final, complete and exclusive Agreement between City and Iglesias relating to the employment of Iglesias by City as Co-Interim City Manager. Any prior discussions, agreements or representations by or between the Parties are merged into and rendered null and void by this Agreement. The Parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement. The foregoing notwithstanding, Iglesias acknowledges that, except as expressly provided in this Agreement, Iglesias’s employment as Co-Interim City Manager is subject to City's generally applicable rules and policies pertaining to employment matters, such as but not limited to those addressing equal employment opportunity, sexual harassment, and violence in the workplace as they currently or may in the future exist.

10.2 REPRESENTATIONS. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or written, have been made by any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding on either Party. Iglesias acknowledges that, except as expressly provided in this Agreement, Iglesias’s employment is subject to City's generally applicable rules and policies pertaining to employment matters, such as those addressing equal employment opportunity, sexual harassment, and violence in the workplace.

10.3 AMENDMENTS. This Agreement may only be amended by a writing approved by the City Council and signed by City and Iglesias.

10.4 BINDING EFFECT. This Agreement shall be binding on the City and Iglesias.

10.5 SEVERABILITY. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances.

10.6 PREVAILING PARTY ATTORNEYS' FEES. In any action to enforce this Agreement or resolve any dispute or controversy arising under the terms and conditions hereof, the prevailing Party shall be entitled to payment of reasonable attorneys' fees and costs.

10.7 CHOICE OF LAW AND VENUE. This Agreement shall be interpreted and construed pursuant to and in accordance with the local laws of the State of California and all applicable City Codes, Ordinances and Resolutions. The Parties agree that venue shall be in Los Angeles County, California.

10.8 DRAFTING OF AGREEMENT. The Parties hereto acknowledge and agree that although this Agreement has been drafted by City's legal counsel, Iglesias has

8 reviewed, or had an opportunity to review the terms of this Agreement with Iglesias’s legal counsel. Consequently, the doctrine that ambiguities in an agreement should be resolved against the drafting Party, shall not be employed in connection with this Agreement, and this Agreement shall be interpreted in accordance with its fair meaning.

10.9 INDEPENDENT REVIEW OF AGREEMENT. Iglesias acknowledges that he has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. Iglesias acknowledges that he has made an independent judgment upon the financial and legal effects of this Agreement and has not relied upon any representation of City, its officers, agents, or employees other than those expressly set forth in this Agreement.

10.10 NOTICES. Any notice given to City under this Agreement shall be given in writing to City, by personal service, by overnight delivery service providing confirmation of delivery, or by registered or certified mail, postage prepaid, addressed to the Director of Human Resources at the City's then principal place of business. Any such notice to Iglesias shall be given in a like manner and, if deposited with an overnight delivery service or mailed, shall be addressed to Iglesias at his home addresses then shown in City's files. For the purpose of determining compliance with any time limit in this Agreement, a notice shall be deemed to have been duly given (a) on the date of delivery, if served personally on the Party to whom notice is to be given, (b) on the next delivery day following deposit with an overnight delivery service, or (c) on the third calendar day after mailing, if mailed to the Party to whom the notice is to be given in the manner provided in this paragraph.

10.11 VOLUNTARY AGREEMENT. Iglesias represents and warrants that he has read carefully and fully understands all the provisions of this Agreement, that he is free to enter into this Agreement and to render the services described in it, that his entering into and performing under this Agreement will not breach or violate or conflict with any other agreement (written or oral) to which Iglesias is a Party, and that Iglesias has had an opportunity to consult with legal counsel prior to entering into this Agreement and has either done so or voluntarily chosen not to do so.

Iglesias is voluntarily entering into this Agreement. The City represents and warrants that it has the right and power to enter into this Agreement. (SIGNATURES ON NEXT PAGE)

9 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF CUDAHY
By:

Elizabeth Alcantar Loza, Mayor

Date:_______________________

RICHARD IGLESIAS
By:

Name:

Date:_______________________
APPROVED AS TO FORM:

By: _____
Stephanie A. Arechiga, City Attorney
Date:____________________________

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STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor and City Council Members
From: Juan Arauz/Richard Iglesias, Interim City Managers By: Ray Casey, Senior Engineer
Subject: City of Cudahy Capital Improvement Program (CIP) FY2025-2029 Amendment – Request to include Live Oak Street Improvement Project

RECOMMENDATION
The City Council is requested to approve the proposed City of Cudahy Capital Improvement Program (CIP) Amendment for Fiscal Years FY2025-2029 CIP budget to include the Live Oak Street Improvement Project and appropriate $961,480 for Pre-Construction and Construction Services and Contingency from the following funds:

1. $961,480 ($651,480 in Prop C and $310,000 in Measure M) of the unused CIP budget FY 2025 – 2029 allocated for the FY 24-25 Pavement Rehabilitation Program Project which includes:
• $687,500 in Prop C funds available
• $310,000 in Measure M funds available, and;

2. Allocate $133,000 in STPL funds to the Otis Ave. Street Improvement Project.

BACKGROUND

1. On February 4, 2025, Cudahy City Council approved the Capital Improvement Program (CIP) for Fiscal Years 2025-2029.

2. The original Capital Improvement Program (CIP) budget approved for Fiscal Years 2025 – 2029 allocated $21,951,332 for Street Improvements along 11 different projects. Out of the $21,951,332 CIP budget, $2,497,500 was allocated to the following 3 Street Improvement Projects: Wilcox Avenue Street Improvement Project (STR-004), Santa Ana St & Park Ave Street Improvement Project (STR-006) and Cecilia Street Improvement Project (STR-007).

Item Number
14A

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3. On Tuesday, June 03, 2025, City Council awarded a construction contract to Hardy & Harper, Inc. for the FY 24-25 Pavement Rehabilitation Program Project in the amount of $1,500,000 which includes the conversion of the 3 projects previously mentioned in item #2.

4. On Thursday April 24, 2025, the Metro Board of Directors held a meeting and approved the STP-L fulfillment to provide agencies with Metro Proposition C local funds. The City of Cudahy has an unprogrammed amount of $67,946 that is available to be converted to Prop C funding and used for other future projects. The City also has $133,000 in programmed funds available to be used.

5. The City of Cudahy is currently seeking approval from Caltrans for the upcoming Highway Safety Improvement Program (HSIP) Cycle 11 project to implement crosswalks at various locations. 4 of the locations listed for the project scope are within the segment of the Live Oak Street Improvement Project.

ANALYSIS
A water ponding issue has been reported multiple times along the residential neighborhood of Live Oak Street East of Atlantic Avenue which raised concerns of the affected residents. Due to the extensive nature of the repairs, additional funding is required to complete the project. City Staff requested a cost estimate from the contractor of the FY 24-25 Pavement Rehabilitation Program Project (Wilcox Avenue Street Improvement Project, STR-004; Santa Ana St & Park Ave Street Improvement Project, STR-006; Cecilia Street Improvement Project, STR-007) to conduct the storm drain improvements along the affected area, however, it was well above the contingency amount and the proposed work was unable to be completed at the time. This section of Live Oak Street is also included in the 2024 Pavement Management Program and is set to be improved upon within the next 2-3 years. The average Pavement Condition Index (PCI) of this segment when it was analyzed in 2024 was in “good” condition. However, with growing traffic volumes every year, it is important to address pavement conditions before they reach the “poor” or “very poor” stage of pavement life.

To ensure the community’s needs and the City’s obligation to Public Safety are met, City Staff is requesting appropriation of funds in the amount of $961,480 to cover the Live Oak Street Improvement Project. The requested funds can be appropriated from the CIP budget allocated for FY 2025 – 2029 for the FY 24-25 Pavement Rehabilitation Program Project (Wilcox Avenue Street Improvement Project, STR-004; Santa Ana St & Park Ave Street Improvement Project, STR-006; Cecilia Street Improvement Project, STR-007).

City Staff are also requesting to appropriate $133,000 of programmed STP-L funds for the Otis Street Improvement Project, which is set to begin construction within the following year.

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Additionally, City Staff is currently seeking Caltrans’ approval to implement crosswalks for the future HSIP Cycle 11 Project. Four of the locations proposed to get crosswalks are included within the segment of the Live Oak Street Improvement Project, therefore, it is beneficial to complete this project prior to the HSIP Cycle 11 Project to prevent having to install the crosswalks twice.

Appropriation Requests Amount
Construction Subtotal $740,739
Construction Contingency (10%) $74,074
Construction Total $ 814,813
Design Engineering, Bid Documents, & Geotechnical Engineering (8%) $65,185 Construction Management, Inspection, & Materials Testing (10%) $81,482 Total Appropriation Request $961,480
Available CIP Budget FY 2025 – 2029 appropriated for FY 24-25 Pavement Rehabilitation Program Project
Amount
Prop C (STR-004) = $1,040,000 (Allocated FY25-29) - $600,000 (Awarded) $440,000 Prop C (STR-006) = $697,500 (Allocated FY25-29) - $450,000 (Awarded) $247,500 Measure M (STR-007) = $760,000 (Allocated FY25-29) - $450,000 (Awarded) $310,000 Total CIP Budget Available from FY 24-25 Pavement Rehabilitation Program Project
$997,500
Total CIP Budget Available from FY 24-25 Pavement Rehabilitation Program Project ($997,500) – Remaining Appropriation Request needed ($961,480) = Total CIP Budget Remaining from FY 24-25 Pavement Rehabilitation Program Project ($36,020)

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CONCLUSION
City Staff recommends approving the proposed City of Cudahy Capital Improvement Program (CIP) amendment for Fiscal Years FY2025-2029.

STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)

FINANCIAL IMPACT
The proposed City of Cudahy Capital Improvement Program (CIP) amendment for Fiscal Years FY2025-2029 is consistent with the current City Budget and the identified funding sources in the amount of $997,500 are already programmed within the original CIP budget. The remaining balance of the unused CIP budget FY 2025 – 2029 allocated for the FY 24-25 Pavement Rehabilitation Program Project once the CIP amendment is approved will be $36,020.

ATTACHMENTS
A. Capital Improvement Plan – Live Oak Street Improvement Project

Wilcox
Avenue
Street
Improvement
Project
2025 thru 2029
Capital Improvement Plan
Cudahy, CA
Project # STR-XXX
Project Name Live Oak Street Improvement Project
Total Project Cost $961,480 Department
Type Improvement Category
Priority 1 Status
Useful Life 15 years
Public Works
Street Improvements
New
Strategic Plan Goal E
Description
The project scope of works includes asphalt concrete restoration, grind & cap and/or Surface Treatment (HyRAP System/ Slurry Seal/ Microsurfacing techniques) as well as installations of catch basins, storm drain lateral and other miscellaneous items such as traffic striping and speed humps.

Justification
Live Oak Street has a water ponding issue that has been reported by multiple residents over time. A water collection forms along the area of Live Oak Street and Flora Avenue which poses a safety hazard to residents and travelers during storm events. The segment of Live Oak Street between Salt Lake Avenue and Atlantic Avenue also has deteriorating pavement due to frequent and growing traffic volumes every year in this area.

Prior Expenditures 2025 2026 2027 2028 2029 Total
0 Construction 0 740,739 0 0 0 740,739
Construction Contingnecy 0 74,074 0 0 0 74,074
Construction Management/Design Engineering 0 146.667 0 0 0 146,667 Total 0 961,480 0 0 0 961,480
Prior
Funding
Sources 2025 2026 2027 2028 2029 Total
0 Proposition C 687,500 0 0 0 0 687,500
Total 961,480 0 0 0 0 961,480
Budget Impact
The identified funding sources in the amount of $961,480 are already programmed within the original 2025 - 2029 CIP budget.

Measure M 273,980 0 0 0 0 273,980
Attachment A Page 129 of 132
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STAFF REPORT
Date: December 2, 2025
To: Honorable Mayor/Chair and City Council/Agency Members From: Juan Arauz and Richard Iglesias, Interim City Managers By: Richard Iglesias
Subject: Creation and Appointment of Economic Development Ad Hoc Committee

RECOMMENDATION
The City Council is requested to:

1. Consider creating an Economic Development Ad Hoc Committee, establish the scope of the Committee, define a start and end date of the Committee, along with the reporting requirements by the Committee; and

2. Appoint two council members to serve on the Committee.

BACKGROUND/ANALYSIS
On November 4, 2025, Council Member Fuentes requested the creation of the Economic Development Ad Hoc Committee.

Ad Hoc Committees are formed to discuss specific topics, recommend policy, provide feedback to the City Manager, and report out to City Council during its regularly scheduled meetings.

Ad hoc committees are advisory committees with no decision-making power, consisting of less than a quorum of the City Council. Ad hoc committees are created for a short-term goal and have clear and defined parameters for the purpose of the Committee. Due to their advisory nature, these committees are not subject to the Brown Act's noticing or posting requirements; they are not open to the public as long as they are not serial meetings. Once the purpose of the Committee is fulfilled, their recommendations are presented to the City Council for final decisions, and the Committee is then dissolved.

Item Number
14B

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CONCLUSION
The City Council is recommended to:

1. Consider creating an Economic Development Ad Hoc Committee;

2. Establish a clear scope of the nature and end goal for the Committee;

3. Establish guidelines for the reporting to the Council by the Committee;

4. Establish a term of the committee; and

5. Appoint two Council Members to the Committee.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
None.

ATTACHMENTS
None.