Cudahy City Council
July 7, 2026

Permit Issuance Fee $58.25 P.C. FEE PERMIT FEE VOLUME (cu. yds.) NOT OVER GRADING

CITY OF CUDAHY
Grading Fees
TAKE THE HIGHEST CUT/FILL (& ADD any OVEREXCAVATION) FOR PC & PERMIT FEES
The City utilizes the most up to date fees established by LA County for the below services. The below fee table reflects the fees currently adopted by LA County.
850,000 33,053.66 28,886.36860,000 33,306.35 29,116.07870,000 33,559.04 29,345.78880,000 33,811.73 29,575.49890,000 34,064.42 29,805.20900,000 34,317.11 30,034.91910,000 34,569.80 30,264.62920,000 34,822.49 30,494.33930,000 35,075.18 30,724.04940,000 35,327.87 30,953.75950,000 35,580.56 31,183.46960,000 35,833.25 31,413.17970,000 36,085.94 31,642.88980,000 36,338.63 31,872.59990,000 36,591.32 32,102.30 1,000,000 36,844.01 32,332.01
168.46
(plus) 16,139.67
(times) 1.5
153.14
(plus) 7,772.07
(times) 1.5
PERMIT FEE (Above 1,000,000 Cu Yds):

CUBIC YARDS (subtract) 100,000 (divided by) 10,000 (times) Building Permit Fees are pursuant to the California Building Code, Section 107.1 and the County of Los Angeles Building Code Fee Schedule, Table 1-B.Building Plan Check Fees are pursuant to the California Building Code, Section 107.2 and the County of Los Angeles Building Code Fee Schedule, Table 1-C.

PLAN CHECK FEE (Above 1,000,000 Cu Yds):

CUBIC YARDS (subtract) 500,000 (divided by) 10,000 (times) 65

Engineering
The City utilizes the most up to date fees established by LA County for the below services. The below fee table reflects the fees currently adopted by LA County. # Title Current Fee/Charge Unit Code Full Cost Subsidy % Suggested
Fee Fee Δ
1 Issuance Fee 16.10.020
2 Highway Permit $207.00 16.10.020 NA NA $207.00 $03 Fees for Inspection and Other Costs 16.10.0904 General NA NA $0.00 $0 5 Pre-inspection site visit $168.00 16.10.090 A1 NA NA $168.00 $06 Inspection during non-business hours (up to 4 hours) $636.00 16.10.090 A1 NA NA $636.00 $07 Aditional inspections during non-business hours (over 4 hours) $160.00 16.10.090 A1 NA NA $160.00 $08 Construction Inspection NA NA $0.00 $0 9 Inspect curb drain $216.00 16.10.090 A2 NA NA $216.00 $0 10 Inspect parkway drain $890.00 16.10.090 A2 NA NA $890.00 $011 Inspect residential driveway $742.00 16.10.090 A2 NA NA $742.00 $012 Inspect commercial driveway $907.00 16.10.090 A2 NA NA $907.00 $013 Inspect paving - ≤ 500 SF $1,032.00 16.10.090 A2 NA NA $1,032.00 $014 Inspect paving - > 500 SF Actual Cost 16.10.090 A2 NA NA Actual Cost $015 Inspect sidewalk and curb and gutter16 50 LF or less $570.00 16.10.090 A2 NA NA $570.00 $017 Greater than 50 LF - 250 LF $570 + $2.81/LF over 50 LF 16.10.090 A2 NA NA $570 + $2.81/LF over 50 LF
$0
18 Greater than 250 Lf - 500 LF $1,129 + $1.90/LF over 250 LF 16.10.090 A2 NA NA $1,129 + $1.90/LF over 250 LF
$0
19 Greater than 500 LF Actual Cost 16.10.090 A2 NA NA Actual Cost $020 Inspect new well construction21 Diameter ≤ 8", and depth ≤ 50 ft $479.00 16.10.090 A2 NA NA $479.00 $0 22 Diameter > 8", or depth > 50 ft Actual Cost 16.10.090 A2 NA NA Actual Cost $0 23 Inspect well destructions NA NA $0.00 $024 Diameter ≤ 6", and depth ≤ 50 ft $1,086.00 16.10.090 A2 NA NA $1,086.00 $025 6" < Diameter ≤ 18", and depth ≤ 25 ft $1,244.00 16.10.090 A2 NA NA $1,244.00 $026 6" < Diameter ≤ 18", and 25 ft < depth ≤ 50 ft $1,402.00 16.10.090 A2 NA NA $1,402.00 $027 Diameter > 18", or depth > 50 ft Actual Cost 16.10.090 A2 NA NA Actual Cost $028 Inspect pole removal/replacement $616.00 16.10.090 A2 NA NA $616.00 $0 29 Encroachment Inspection30 Inspect lane closure/detour $343.00 per day 16.10.090 A3 NA NA $343.00 $0 31 Inspect awning $411.00 per address 16.10.090 A3 NA NA $411.00 $0 32 Inspect monitoring of existing wells (allows monitoring for 1 year) $711.00 16.10.090 A3 NA NA $711.00 $033 Inspect crane operations $533.00 per day 16.10.090 A3 NA NA $533.00 $034 Inspect temporary storage of construction materials $342.00 per day 16.10.090 A3 NA NA $342.00 $035 Inspect filming permits - road $454.00 16.10.090 A3 NA NA $454.00 $036 Excavation Inspection NA NA $0.00 $0 37 Inspect utility service cuts (Up to 3 within one block) $673.00 16.10.090 A4 NA NA $673.00 $0 38 Inspect potholing (up to 3 within one traffic control setup not exceeding one block) 39 Depth ≤ 10 ft $459.00 16.10.090 A4 NA NA $459.00 $0
40 Depth > 10 ft Actual Cost 16.10.090 A4 NA NA Actual Cost $041 Inspect Soil Borings (up to 3 borings within one traffic control setup not exceeding one block)42 Diameter ≤ 6", and depth ≤ 50 ft $616.00 16.10.090 A4 NA NA $616.00 $0 66

Engineering
The City utilizes the most up to date fees established by LA County for the below services. The below fee table reflects the fees currently adopted by LA County. # Title Current Fee/Charge Unit Code Full Cost Subsidy % Suggested
Fee Fee Δ
43 6" < Diameter ≤ 18", and depth ≤ 25 ft $774.00 16.10.090 A4 NA NA $774.00 $044 6" < Diameter ≤ 18", and 25 ft < depth ≤ 50 ft $929.00 16.10.090 A4 NA NA $929.00 $045 Diameter > 18", or depth > 50 ft Actual Cost 16.10.090 A4 NA NA Actual Cost $046 Transportation Inspections47 Inspect oversize extralegal load moving permit (up to 4 hrs) $1,297.00 16.10.090 A5 NA NA $1,297.00 $048 Actual cost oversized extralegal load moving permit (greater than 4 hrs) Actual Cost 16.10.090 A5 NA NA Actual Cost $049 Permit Mainline Check Fees 16.10.090 B 50 Permit mainline check 0 - 15,000 LF $406 + $0.48/LF 16.10.090 B NA NA $406 + $0.48/LF $051 Permit mainline check > 15,000 LF Actual Cost 16.10.090 B NA NA Actual Cost $052 Permit Processing Fee 16.10.15553 Excavation, construction and encroachment permits $375.00 16.10.155 NA NA $375.00 $054 Joint trench excavation permits for each dry utility $740.00 16.10.155 NA NA $740.00 $055 Road closure (construction or excavation work) $529.00 16.10.155 NA NA $529.00 $056 Banner and pennants $632.00 16.10.155 NA NA $632.00 $057 Traffic control plan review Actual Cost ($350.00 min) 16.10.155 NA NA Actual Cost ($350.00 min) $058 Annual Permit Fees 16.19.05059 Drop box debris container annual permit $2,434.00 16.19.050 NA NA $2,434.00 $060 News Rack Annual Permit 16.24.02061 1 NEW news rack installation per location $207.00 16.24.020 NA NA $207.00 $062 2 NEW news racks installation per location $271.00 16.24.020 NA NA $271.00 $063 3 NEW news racks installation per location $333.00 16.24.020 NA NA $333.00 $064 Permit expiration and renewal 16.24.020 NA NA $0.00 $0 65 Permit renewal application fee $152.00 16.24.020 NA NA $152.00 $066 News rack renewal $59.00 each 16.24.020 NA NA $59.00 $0 67 Outdoor Sidewalk Dining Annual Permit 16.27.050
68 Outdoor sidewalk dining permit (new) $1,556.00 16.27.050 NA NA $1,556.00 $069 Outdoor sidewalk dining permit (renewal) $490.00 16.27.050 NA NA $490.00 $070 Other - Fees below are not in County fee schdule 16.27.05071 Final Tract or Parcel Map & Amendments New $7,747.99 0% $7,747.00 NA New feeFee decreaseFee increase greater than 50%Fee increase greater than 75% 67

27368 Via Industria, Suite 200
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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
07/07/2026 Page 1 of 3

STAFF REPORT
Date: July 7, 2026
To: Honorable Mayor Dr. Cynthia Gonzalez and City Council Members From: Christopher Lopez, City Manager
By: Samuel Holmberg, Deputy City Attorney
Subject: Discussion and Direction Regarding Placing Cudahy’s Existing Rent Stabilization Ordinance (Ordinance No. 736) Before the Voters at the November 2026 General Election

RECOMMENDATION
The City Council of Cudahy (“City Council”) is requested to:

1. Discuss and provide direction regarding whether staff should prepare materials to place Cudahy’s existing Rent Stabilization Ordinance (“Ordinance”) on the November 3, 2026 general election ballot;

2. Provide direction regarding potential ballot measure language; and

3. Take or provide direction to staff regarding additional, related actions that may be desirable.

BACKGROUND
On June 6, 2023, the City Council approved Ordinance No. 736, which added Chapter 5.13 to the Cudahy Municipal Code (“CMC”), restricting rent increases and establishing other regulations applicable to certain covered residential rental units in the City.

At the June 16, 2026 City Council meeting, Councilmember Alcantar Loza requested a rent stabilization ballot measure to be brought before Council for consideration at a future meeting.

Specifically, the proposed ballot measure would submit Ordinance No. 736 to the voters, which, if approved, would ensure the City’s rent stabilization law can only be repealed by the voters.

DISCUSSION AND ANALYSIS
Under Elections Code Sections 9217 and 9222, a city council may place a City-sponsored ballot Item Number
14D

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
07/07/2026 Page 2 of 3

measure to repeal, amend, or enact an ordinance on the ballot for a general or special election, which passes by approval of a simple majority of voters and takes effect ten days after the city council certifies the election results. The ordinance cannot be repealed or amended without voter approval, unless its content provides otherwise.

To place the Ordinance on the November 3, 2026 general election ballot, the City Council must pass a resolution or ordinance that submits the Ordinance to voters by August 7, 2026 (88 days before the election). If a majority of voters approve it, the City Council must certify the election results, and upon certification, the Ordinance becomes law and takes effect ten days later. If voters approve the Ordinance, the City Council cannot reverse it through Council action alone.

Only voters can repeal or amend it, unless the Ordinance itself provides otherwise.

RULES GOVERNING BALLOT MEASURE LANGUAGE
To move forward with a City-sponsored ballot measure, City Council must approve ballot question language within the constraints of applicable law.

Ballot measure language must satisfy the following requirements:
• The measure must include the phrase “Shall the measure (stating the nature thereof) be adopted?”
• The words “Yes” and “No” must appear on separate lines with voting targets, placed to the right of or below the measure statement.
• The measure statement must be a true and impartial synopsis of the measure’s purpose.
• The language cannot be argumentative or likely to create prejudice for or against the measure.
• The ballot measure text including its title cannot exceed 75 words. • The text cannot be written entirely in capital letters.

The draft ballot measure should include a provision stating that only the voters may amend or repeal the Ordinance.

Staff requests that the City Council provide direction on the ballot measure language.

PROPOSED BALLOT MEASURE LANGUAGE
Measure to Protect the Cudahy’s Rent Stabilization Ordinance To protect tenants from excessive rent increases, promote long-term stable rental prices, require registration of rental units, provide YES

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
07/07/2026 Page 3 of 3

CONCLUSION
Staff recommends that the City Council discuss and provide direction on whether staff should prepare materials to place the Cudahy’s existing Rent Stabilization Ordinance on the November 3, 2026 general election ballot and if so, desired ballot measure language.

FINANCIAL IMPACT
The cost of placing a ballot measure on the ballot for November 3, 2026, is approximately $48,318.78. This estimate is based on the Los Angeles County Registrar-Recorder/County Clerk election estimating calculator.

ATTACHMENTS
A. Ordinance No. 736
landlords a fair opportunity to earn a reasonable return, establish procedures for resolving landlord-tenant disputes, provide enforcement mechanisms, and prohibit repeal of the ordinance except by a vote of the people, shall the voters approve Cudahy’s Rent Stabilization Ordinance?
NO

ORDINANCE NO. 736

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

LICENSES AND REGULATIONS OF THE CUDAHY MUNICIPAL CODE

RESTRICTING RENT INCREASES AND ESTABLISHING OTHER

REGULATIONS APPLICABLE TO CERTAIN COVERED RESIDENTIAL

RENTAL UNITS IN THE CITY
WHEREAS, the City of Cudahy ("City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, cities across Los Angeles County and throughout the State of California are experiencing a housing shortage and affordability crisis; and WHEREAS, per the U.S. Department of Housing and Urban Development (HUD), in 2023 the median monthly rent for a two-bedroom apartment in Los Angeles County is $2,222, representing an 8.7% increase over the following year; and WHEREAS, per the U.S. Census Bureau, the median household income in the City is $47,050, compared to $76,367 in Los Angeles County; and WHEREAS, according to the City's Housing Element 2021-2029 ("Housing Element") approximately 85% of households in the City are renter occupied. Of the renteroccupied households, 56.3% are rent burdened, paying more than 30% of gross income on housing; and 10.2% are severely rent burdened, paying more than half of gross income on housing; and
WHEREAS, with high housing costs, low incomes and critical affordable housing shortages, many residents in the City struggle to pay for housing and meet other basic needs such as food, clothing, transportation and healthcare; and WHEREAS, housing instability has been associated with other disruptive effects on vulnerable populations such as overcrowding, poorer health, and negative educational outcomes for children; and
WHEREAS, widespread housing insecurity and rent burdened households leads to heightened risk of displacement and homelessness, and threatens the public health, safety, and welfare of City residents; and
WHEREAS, the City Council of the City of Cudahy ("City Council") formed an Ad Hoc Committee (the "Ad Hoc Committee") at the City Council meeting of July 19, 2022, Attachment A Page 652 of 707
L
Ordinance No. 736
to analyze and study the issue of rent control and to formulate legislative or other appropriate recommendations for City Council consideration; and WHEREAS, on September 20, 2022, the City Council adopted Ordinance No. 725 that went into effect on October 19, 2022, to temporarily restrict rent increases for certain residential properties while the City studied the issue of rent control; and WHEREAS, on January 17, 2023, the City Council adopted Urgency Ordinance No. 731 extending the temporary rent freeze for covered units to allow more time to study and analyze the issue; and
WHEREAS, on April 11, 2023, City staff provided an update to the City Council on the Ad Hoc Committee's efforts and the City Council directed staff to prepare a rent stabilization ordinance and a tenant eviction protections ordinance for future consideration by the City Council. The City Council also adopted Urgency Ordinance No. 735 further extending the temporary rent freeze for covered units to allow time for the ordinance to be prepared and considered; and
WHEREAS, on May 16, 2023, the City Council received public testimony and an update from staff, and provided further direction regarding consideration of a rent stabilization ordinance and a tenant eviction protections ordinance; and WHEREAS, on May 19, 2023, the City Clerk posted a Notice of Public Hearing in accordance with the City's public notice requirements regarding adoption of an ordinance adding Chapter 5.13 "Rent Stabilization" to Title 5 of the Cudahy Municipal Code ("Municipal Code") restricting rent increases and establishing other regulations applicable to certain covered residential rental units in the City; and WHEREAS, on May 30, 2023, the City Council heard public testimony under Agenda Item No. 5A regarding adoption of an ordinance adding Chapter 5.13 "Rent Stabilization" to Title 5 of the Municipal Code, restricting rent increases and establishing other regulations applicable to certain covered residential rental units in the City; and WHEREAS, the California Tenant Protection Act of 2019 (the "Tenant Protection Act") went into effect on January 1, 2020. Among other provisions, the Tenant Protection Act limits rent increases for rental properties subject to the Act to five percent plus the percentage change in the consumer price index up to a maximum of 10% (Civil Code Section 1947.12); and
WHEREAS, the Mobilehome Residency Law ("MRL"), California Civil Code sections 798, et seq., expressly authorizes cities to regulate the setting and/or increasing of rents for the use and occupancy of a mobile home space, subject to certain exceptions; and
WHEREAS, the Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et seq., ("Costa-Hawkins Act") limits the applicability of local rent stabilization

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

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

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

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

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

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

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

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

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

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

Daisy Lomeli, Mayor
ATTEST:
7

Ordinance No. 736

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY

CERTIFICATION
)
)
)
SS:

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

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

5.13.010 Title

5.13.020 Purpose

5.13.030 Definitions

5.13.040 Applicability
Article II. General Provisions

5.13.050 Permitted Rent Increases for Covered Rental Units

5.13.060 Capital Improvement Pass-Through Cost Recovery

5.13.070 Landlord Fair Return Petition for Rent Increase

5.13.080 Tenant Petition for Adjustment

5.13.090 Security Deposits

5.13.100 Rental Unit Registration

5.13.110 Notices to Tenants
Article III. Administration and Enforcement

5.13.120 Enforcement

5.13.130 Administrative Review and Appeals

5.13.140 Administrative Citations

5.13.150 Remedies

5.13.160 Waiver

5.13.170 Severability

Article I. Title, Purpose, Definitions and Applicability

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

5.13.020. Purpose.

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

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

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

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

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

C. “City” means the City of Cudahy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5.13.040. Applicability.

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

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

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

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

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

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

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

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

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

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

Article II. General Provisions

5.13.050. Permitted Rent Increases for Covered Rental Units.

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

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

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

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

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

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

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

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

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

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

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

5.13.060. Capital Improvements Pass-Through Cost Recovery.

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

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

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

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

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

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

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

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

E. Application Process.

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

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

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

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

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

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

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

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

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

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

5.13.070. Landlord Fair Return Petition for Rent Increase.

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

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

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

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

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

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

5.13.100.

C. Review and Approval of Application for Rent Increase.

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

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

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

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

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

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

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

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

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

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

administrative expenses incurred in reviewing and processing the application.

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

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

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

5.13.080. Tenant Petition for Adjustment.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5.13.090. Security Deposit.

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

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

5.13.100. Rental Unit Registration.

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

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

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

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

3. Ownership information for the rental property.

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

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

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

7. A description of Housing Services.

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

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

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

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

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

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

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

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

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

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

5.13.110. Notices to Tenants.

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

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

2. When renewing a Rental Agreement; and

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

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

Article III. Administration and Enforcement

5.13.120. Enforcement.

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

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

5.13.130. Administrative Review and Appeals.

A. Administrative Review.

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

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

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

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

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

E. Procedures for Appeals.

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

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

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

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

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

F. Decision and Notice.

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

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

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

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

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

5.13.140. Administrative Citations.

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

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

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

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

D. Administrative Appeals and Judicial Review.

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

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

5.13.150. Remedies.

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

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

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

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

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

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

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

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

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

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STAFF REPORT
Date: July 7, 2026
To: Honorable Mayor Dr. Cynthia Gonzalez and City Council Members From: Christopher Lopez, City Manager
By: Samuel Holmberg, Deputy City Attorney
Subject: Consider An Ordinance And Resolution Of The City Council Of The City Of Cudahy, California (1) Giving Notice Of The Submission Of A Ballot Measure Question To The Voters Of The City Of Cudahy Concerning The Extension Of The Temporary Three-Quarter Percent (3/4%) Transactions And Use Tax Currently Implemented As A General Use Tax Beyond Its Current Expiration Date, To Continue Until Repealed By City Voters; And (2) Setting Election Procedures And Priorities For The Filing Of Written Arguments And Rebuttals Regarding The Measure And Directing The City Attorney To Prepare An Impartial Analysis; And (3) Requesting The Los Angeles County Board Of Supervisors’ Consent To The Consolidation Of Said Election With Other Elections To Be Held On November 3, 2026, And Directing The Registrar Of Voters To Conduct The Election

RECOMMENDATION
The Cudahy City Council (“City Council”) is requested to:

1. Subject to adoption by the electorate, introduce and waive full reading of Ordinance No. 770 of the City of Cudahy, California (“City”) extending the City’s three-quarter percent (3/4%) transactions and use tax indefinitely until repealed by the voters as codified under Chapter 3.25 (CUDAHY TEMPORARY TRANSACTIONS AND USE TAX) of Title 3 (REVENUE AND FINANCE) of the Cudahy Municipal Code (“CMC”); and

2. Adopt Resolution No. 26-30 (1) giving notice of the submission of a ballot measure question to the voters of the City of Cudahy concerning the extension of the three-quarter percent (3/4%) transactions and use tax currently implemented as a general use tax beyond its current expiration date, to continue until repealed by city voters; and (2) setting election procedures and priorities for the filing of written arguments and rebuttals regarding the measure and directing the City Attorney to prepare an impartial analysis; and (3) requesting the Los Angeles County Board of Supervisors’ consent to the consolidation of said election Item Number
14E

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with other elections to be held on November 3, 2026, and directing the Registrar of Voters to conduct the election; and

3. Discuss and take action regarding the preparation of ballot arguments; and

4. Take such additional, related, action that may be desirable.

BACKGROUND
In 2018, the City Council took steps to place a temporary, ten (10) year 0.75% (3/4) transactions and use (sales) tax measure before Cudahy voters. The process began on August 7, 2018, when the City Council unanimously passed Resolution No. 18-41 by a 4-0 vote, with Councilmember Baru Sanchez absent. The Resolution established the measure as the Cudahy Services Preservation Measure or Measure R, drafted the initial ballot language, set deadlines for public arguments and rebuttals, directed the City Attorney to prepare an impartial analysis, and requested that the Los Angeles County Registrar-Recorder administer and canvass the election.

Measure R was structured as a general tax that directs revenue into the City’s General Fund and required only a simple majority of Cudahy voters to pass. Measure R’s ballot language described its purpose as maintaining and improving City services, including senior and youth programs, graffiti removal, park facilities, and street and public infrastructure repairs, while also requiring the City to complete annual financial audits, expenditure reports, and general financial oversight. At the time, the City projected the tax would generate approximately $750,000 annually.

On November 6, 2018, Cudahy voters approved Measure R, and the tax was codified in the CMC under Title 3 (Revenue and Finance), Chapter 3.25 (Cudahy Temporary Transactions and Use Tax). Because the earliest voter-approved Transaction and Use Taxes can become operative is the first day of the first calendar quarter 110+ days after the election on the ordinance proposing the tax, the Measure R tax took effect on April 1, 2019, the soonest date on which the California Department of Tax and Fee Administration (“CDTFA”) could implement the new rate, placing the City’s total sales tax rate at 10.5%, where it remains today.

Absent a voter-approved extension, the tax will sunset on March 31, 2029.

On April 14, 2026, staff updated the City Council on the City’s five-year financial model, the updated one-year Capital Improvement Plan for fiscal-year (“FY”) 26/27, and the preliminary FY 26/27 General Fund budget. Staff’s discussion focused on the City’s recurring structural imbalances over multiple fiscal years, the significant deficits in FY 22/23 and FY 23/24, the City’s general ongoing fiscal instability as shown in the audited financial statements, the City’s preliminary $1.8M deficit in the General Fund.

Additionally, over the last decade, General Fund expenditures have exceeded recurring ongoing revenues, forcing the City to draw on available fund balances and one-time funding sources.

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While the City’s revenue growth is trending positively, it has not kept pace with expenditures.

Further, at the April 14, 2026, meeting, the City Council provided staff with the following direction:
• Begin preparing an extension of the Cudahy Temporary Transactions and Use Tax for Cudahy voters.
• Identify a mix of revenue-generating strategies to help offset the budget deficit. • Review all expenditures including safety expenses for potential cost-savings. • Gather feedback from employees on potential budget solutions.

As a result of that direction, the City Attorney’s Office prepared ballot measure language and the necessary ordinance and resolution to extend the Cudahy Transactions and Use Tax indefinitely.

At the June 1, 2026 special City Council meeting, the City Attorney’s Office presented a draft ordinance and resolution extending Cudahy’s Transactions and Use Tax indefinitely and requested the City Council’s input on the proposed ballot measure language. The City Council provided requested the following revisions:
• Keep the words “stability” and “maintain”;
• Add the word “continue”;
• Incorporate the concept of “maintaining current funding”; • Replace “raising” with an alternative word or phrase to ensure clarity that the measure is extending an existing tax, rather than enacting a new tax; • Add “youth” to the recreational programs reference; and • Include language making clear the tax is for local City uses.

Staff subsequently incorporated the above revisions to the draft ballot measure language, which are incorporated in the updated ordinance and resolution.

ANALYSIS AND DISCUSSION
California imposes a statewide base sales and use tax rate of 7.25% on the sale of most tangible physical goods. Of that 7.25%, the state administers 6%, while cities and counties receive the remaining 1.25% when the sale takes place within the jurisdiction. The Bradley-Burns Uniform Local Sales and Use Tax Law (Rev. & Tax. Code § 7200 et seq.) governs the majority of these local taxes.

Under the Transactions and Use Tax Law (Rev. & Tax. Code § 7251 et seq.), cities, counties, and other local jurisdictions may levy additional sales and use taxes on top of the 7.25% statewide base rate. These additional taxes are called District Taxes and also apply to most tangible physical goods but are collected by the district where the goods are delivered or used.

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Cities, counties, and local jurisdictions generally levy District Taxes at a minimum rate of 0.125% and increase them in 0.125% increments, up to 2%. Cities and counties share the combined District Tax cap of 2%, which can only be raised by the State Legislature through special legislation.

To pass a District Tax, the local governing body must approve an ordinance by a two-thirds vote of all members and place the measure before the voters. Voters in the jurisdiction must then approve the tax. For a general tax, meaning a tax that funds any public purpose, a simple majority of voters must vote to approve the measure. For a special tax, meaning a tax that funds a specific designated purpose, two-thirds of voters must vote to approve it. When a city extends a District Tax that will sunset, it follows the same procedures as if it were initially passing the tax. State law also requires that the local governing body submit a general tax measure to voters at a regularly scheduled statewide primary election, a statewide general election, or a regularly scheduled local election at which all of the electors of the local government or district are entitled to vote, unless the governing body unanimously declares a fiscal emergency.

As stated above, Measure R will sunset on March 31, 2029. To extend it, the City Council must approve an ordinance and accompanying resolution by a two-thirds vote of all its members and place the tax extension on the ballot. For a five-member Council, that means at least four affirmative votes. Next, Cudahy voters must vote on the measure at a regularly scheduled statewide primary election, statewide general election, or a regularly scheduled local election at which all Cudahy voters are entitled to vote. The Council can only bypass this election scheduling requirement if it unanimously declares a fiscal emergency. Because Measure R is a general tax that directs revenue into the City’s general fund rather than funding a specific designated purpose, voters need only a simple majority to approve the extension.

The ballot measure and accompanying ordinance are drafted without a sunset date, making the tax permanent unless voters later act to repeal it.

The City also has an incentive to act before the 2028 election to ensure it is not precluded from extending its tax due to future County action. Under state law, cities and counties share a combined District Tax cap of 2%, and only the State Legislature can raise that cap. Cudahy currently uses 0.75% of that shared cap. Los Angeles County uses the other 1.00% of the cap, with an additional 1.50% in District Tax that the State Legislature exempted from the cap.

If Cudahy allows its 0.75% of the cap to lapse, Los Angeles County could pass or increase its own District Tax up to the 2% threshold, leaving the City with no ability to enact further District Taxes unless the County reduces its own levy or the City receives an exemption from the State Legislature.

Given these factors, it would be prudent for the City to place the measure before voters at the

“Serving The People” “Sirviendo A La Comunidad”
Staff Report
07/07/2026 Page 5 of 6

upcoming November 3, 2026 statewide general election, which satisfies the scheduling requirement and gives the City ample time to act before the 2029 sunset.

To meet the August 7, 2026 deadline to submit the measure to Los Angeles County, the City Council may adopt the ordinance and resolution at this July 7, 2026 meeting or, if seeking further revisions to the ballot measure language, direct staff to return with amended materials for adoption at the July 21, 2026 regular meeting.

RULES GOVERNING BALLOT MEASURE LANGUAGE
Ballot measure language for local tax measures must satisfy the following requirements:
• The measure must include the phrase “Shall the measure (stating the nature thereof) be adopted?”
• The words “Yes” and “No” must appear on separate lines with voting targets, placed to the right of or below the measure statement.
• The measure must state the purpose of the tax, its rate, the amount of money it will raise annually, and its duration.
• The measure statement must be a true and impartial synopsis of the measure’s purpose.
• The language cannot be argumentative or likely to create prejudice for or against the measure.
• The ballot measure text including its title cannot exceed 75 words. • The text cannot be written entirely in capital letters.

The draft ballot measure would provide for an indefinite extension, meaning the ballot measure will remain in effect unless voters act to repeal it.

Additionally, because the measure is a general tax, its revenues flow into the General Fund, which may be expended for any lawful governmental purpose. Therefore, the City has broad discretion over how funds are spent, so long as such uses are funded by the General Fund.

PROPOSED BALLOT MEASURE LANGUAGE
Keep Cudahy Sales Tax Revenues Local Measure
To maintain, stabilize, and continue current and ongoing funding for various local City services and goals like street, sidewalk and City building repair; park maintenance and enhancements; youth and recreational programs; building “rainy-day” reserves and for any other general governmental purpose, shall the City’s current 3/4% transactions (sales) and use tax be extended indefinitely, unless YES
NO

“Serving The People” “Sirviendo A La Comunidad”
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07/07/2026 Page 6 of 6

CONCLUSION
If the City Council approves the ordinance and resolution, staff will coordinate with the Registrar to place the measure on the November 3, 2026 statewide general election ballot. If Cudahy voters then approve the measure, the City will work with the CDTFA to ensure the tax continues past its March 31, 2029 sunset and remains in effect indefinitely.

If the City Council requests further revisions to the ballot measure language, staff will return with a revised ordinance and resolution at the July 21, 2026 regular meeting.

If the City Council does not approve the ordinance and resolution, then barring further action, Measure R will sunset on March 31, 2029.

FINANCIAL IMPACT
The cost of placing a ballot measure on the ballot for November 3, 2026, is approximately $48,318.78. This estimate is based on the Los Angeles County Registrar-Recorder/County Clerk election estimating calculator.

ATTACHMENTS
A. Resolution No. 26-30
B. Ordinance No. 770
repealed by voters, generating approximately $1.3 million annually for local use?

RESOLUTION NO. 26-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUDAHY, CALIFORNIA (1) GIVING NOTICE OF THE

SUBMISSION OF A BALLOT MEASURE QUESTION TO THE

VOTERS OF THE CITY OF CUDAHY CONCERNING THE

EXTENSION OF THE TEMPORARY THREE-QUARTER
PERCENT (3/4%) TRANSACTIONS AND USE TAX CURRENTLY

IMPLEMENTED AS A GENERAL USE TAX BEYOND ITS

CURRENT EXPIRATION DATE, TO CONTINUE UNTIL
REPEALED BY CITY VOTERS; AND (2) SETTING ELECTION

PROCEDURES AND PRIORITIES FOR THE FILING OF

WRITTEN ARGUMENTS AND REBUTTALS REGARDING THE

MEASURE AND DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS; AND (3) REQUESTING

THE LOS ANGELES COUNTY BOARD OF SUPERVISORS'

CONSENT TO THE CONSOLIDATION OF SAID ELECTION
WITH OTHER ELECTIONS TO BE HELD ON NOVEMBER 3,
2026, AND DIRECTING THE REGISTRAR OF VOTERS TO

CONDUCT THE ELECTION
WHEREAS, at its Regular Meeting of May 19, 2026, the City Council of the City of Cudahy ("City") approved Resolution No. 26-17, which (1) called for and gave notice of a general municipal election to be held on Tuesday, November 3, 2026, for the election of three City Councilmembers; (2) requested consolidation of such election with the County of Los Angeles with any and all elections held on such date; (3) requested the County of Los Angeles to provide specific election administration services for such election; (4) provided notice of regulations for candidates for elective office for such election regarding candidate statements; and (5) provided for the determination of tie votes by lot unless the City Council adopts the provisions of Elections Code Section 15651(b) prior to the conduct of the election resulting in the tie vote; and
WHEREAS, in addition to the election contests for three of the City's five City Council seats called for under Resolution No. 26-17, the City Council also called for the placement of a transactions and use tax measure as set forth in proposed Ordinance No. 770, attached hereto as Exhibit "A" and incorporated herein by reference (hereinafter, the "Ordinance"), on to the November 3, 2026 ballot, by approval of this Resolution at the City Council's Regular Meeting of July 7, 2026; and
WHEREAS, Revenue and Taxation Code Section 7251 et seq., authorizes municipalities to establish and extend local transactions and use taxes which can be added on to the existing County-wide sales tax; and
WHEREAS, Revenue and Taxation Code Section 7285.9 authorizes the governing bodies of cities to levy, increase, or extend a transactions and use tax for general revenue purposes pursuant to Section 7251 et seq., subject to approval by a two-thirds vote of the

City’s governing body along and approval by a majority vote of the qualified voters of the City voting on the measure; and
WHEREAS, the City's three-quarter percent (3/4%) transactions and use tax, approved by Cudahy voters in 2018 as Measure R, is set to expire on March 31, 2029; and
WHEREAS, the transactions and use tax is a general tax, the revenue of which is to be placed in the City's general fund and used to pay for various unrestricted governmental purposes; and
WHEREAS, the City desires to extend the existing transactions and use tax to maintain current levels of municipal services, preserve the City’s fiscal stability, and continue to meet the growing needs of the community; and WHEREAS, the proposed Ordinance No. 770 would extend the existing threequarter percent (3/4%) transactions and use tax, currently set to expire on March 31, 2029, beyond that expiration date and to continue until repealed by City voters, as a general tax; and
WHEREAS, the City Council wishes to include the above-referenced transactions and use tax measure as part of the City's General Municipal Election ballot and included among the matters referenced under Resolution No. 26-17; and WHEREAS, the City shall compensate the County of Los Angeles for all necessary expenses incurred by the County Registrar in performing election services for the City; and
WHEREAS, the proposed measure will only take effect if approved by a majority of votes cast at the City's General Municipal Election of November 3, 2026, which is to be consolidated with the County-administered General Election of the same date.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA, AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and incorporated into this Resolution.

SECTION 2. Pursuant to the requirements of the laws of the State of California relating to general law cities and Elections Code Sections 9222 and 12001, the City Council hereby orders and calls a General Municipal Election to be held in the City of Cudahy, California on Tuesday, November 3, 2026, to be consolidated with the Countyadministered General Election to be held on the same day, for the purpose of submitting to the qualified electors a Measure (hereinafter, the "Measure") seeking approval of the extension of the existing temporary three-quarter percent (3/4%) transactions and use tax currently set to expire on March, 31, 2029, in the manner described in the Ordinance

attached hereto as Exhibit "A." The proposed extension of the transactions and use tax shall continue indefinitely, without an expiration date, and shall remain in effect unless repealed by Cudahy voters.

SECTION 3. As of the effective date, this Resolution is one of two resolutions submitted to the Board of Supervisors and County Registrar by the City Council relating to the City's General Municipal Election of November 3, 2026. The first resolution, Resolution No. 26-17, referenced above, (1) called for and gave notice of a general municipal election to be held on Tuesday, November 3, 2026, for the election of three City Councilmembers; (2) requested consolidation of such election with the County of Los Angeles with any and all elections held on such date; (3) requested the County of Los Angeles to provide specific election administration services for such election; (4) provided notice of regulations for candidates for elective office for such election regarding candidate statements; and (5) provided for the determination of tie votes by lot unless the City Council adopts the provisions of Elections Code Section 15651(b) prior to the conduct of the election resulting in the tie vote. The City Council requests that the Measure in Ordinance No. 770 be added to the list of items referenced under Resolution No. 26-17 that are to be placed on the ballot for the General Municipal Election to be consolidated with the County- administered General Election of the same date.

SECTION 4. Pursuant to the requirements of Section 10403 of the Elections Code, and as part of the City Council's request under Resolution No. 26-17, it is further requested that the Board of Supervisors consent and agree to the inclusion of the abovereferenced Measure in Ordinance No. 770 as part of the City of Cudahy's November 3, 2026 General Municipal Election, which is to be consolidated with the Countyadministered General Election to be held on the same date. Further the City Council acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418.

SECTION 5. The following ballot question shall be submitted to the voters of the City of Cudahy at the General Municipal Election to be held on November 3, 2026:

Keep Cudahy Sales Tax Revenues Local
Measure
To maintain, stabilize, and continue current
and ongoing funding for various local City
services and goals like street, sidewalk and
City building repair; park maintenance and
enhancements; youth and recreational
programs; building “rainy-day” reserves and
for any other general governmental purpose,
shall the City’s current 3/4% transactions
(sales) and use tax be extended indefinitely,
unless repealed by voters, generating
approximately $1.3 million annually for local
use?
Yes
______________________________
No

SECTION 6. It is respectfully requested that the Board of Supervisors authorize and direct the County Registrar to canvass the returns of the City's consolidated General Municipal Election (for the items referenced under Resolution No. 26-17 and the Measure referenced in this Resolution) and that such election be held in all respects as if it were part and parcel of the County-administered General Election of the same date. It is also respectfully requested that the County Registrar assign a letter designation to the abovesubject measure, such that the measure may be identified accordingly on the ballot.

SECTION 7. As the tax established under the Measure is a general tax within the meaning of Proposition 218 whose proceeds may be used for any unrestricted general revenue purpose, the vote requirement for passage of the proposed Measure is a simple majority of the votes cast (50% plus 1).

SECTION 8. It is respectfully requested that the Board of Supervisors authorize and direct the County Registrar to:
a. Print and supply ballots for the General Municipal Election; and b. Mail the ballot question, ballot arguments, rebuttals, and the City Attorney's impartial analysis to the registered voters in the City of Cudahy.

SECTION 9. It is also respectfully requested that the Board of Supervisors issue instructions to the County Registrar to take any and all additional steps necessary for the holding of the consolidated election requested above.

SECTION 10. The City of Cudahy shall reimburse the Registrar for any additional costs attributable to the inclusion of the Measure on the ballot of the General Municipal Election to be consolidated with the County-administered General Election of November 3, 2026.

SECTION 11. The complete text of the proposed Ordinance submitted to the voters is attached as Exhibit "A" to this Resolution.

SECTION 12. The ballots to be used at the election shall be in form and content as required by law.

SECTION 13. As authorized under Elections Code Section 9282(b), the City Council reserves the right to file a written argument in favor of or against this Measure or authorize any member or members of the City Council to do the same. Pursuant to Elections Code Section 9282(b), written arguments for or against the Measure may also be submitted by any individual voter who is eligible to vote on the Measure; any bona fide association of citizens; any combination of voters and associations or such other persons or entities as may be authorized under Elections Code Section 9282(b). The foregoing notwithstanding, if more than one set of arguments "in favor of" or "in opposition to" the

Measure is timely submitted to the City Clerk, the City Clerk shall select only one argument for and one argument against in accordance with the selection priority set forth under Elections Code Section 9287. That priority gives preference as follows: (a) The City Council or City Council-authorized members of the City Council; (b) The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure; (c) A bona fide association of citizens; then (d) Individual voters who are eligible to vote on the measure. Pursuant to Elections Code Section 9283, a ballot argument will not be accepted unless accompanied by the printed name and signature or printed names and signatures of the author or authors submitting the argument, or if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers who is the author of the argument. Pursuant to Elections Code Section 9283, no more than five (5) signatures shall appear with any argument submitted and if any argument is signed by more than five authors, only the signatures of the first five shall be printed. Pursuant to Elections Code Section 9282(c) ballot arguments in support of or in opposition to the Measure may not exceed 300 words in length. Consistent with Elections Code Section 9286, the City Clerk shall fix the deadline for submission of ballot arguments in favor of or in opposition to the Measure as August 14, 2026. Ballot arguments submitted after this deadline will not be accepted. Notwithstanding the requirements stated above, all ballot arguments shall comply with the Elections Code and all other applicable laws and regulations. The City Clerk's Office is located at Cudahy City Hall, 5220 Santa Ana Street, Cudahy, California 90201.

SECTION 14. Pursuant to Elections Code Section 9285, when an argument in favor and an argument against a measure has been selected to be printed in the voter information guide, the City Clerk shall send a copy of the argument in favor to the authors of the argument against and a copy of an argument against to the authors of the argument in favor. To the extent permitted under Elections Code Section 9285(a)(2), the author or a majority of the authors of an argument may prepare and submit a rebuttal argument or may authorize in writing another person or persons to prepare, submit, or sign the rebuttal argument. No rebuttal argument may exceed 250 words in length. Consistent with Elections Code Section 9285(a)(5), a rebuttal argument shall not be signed by more than five persons, shall be printed in the same manner as a direct argument, and shall immediately follow the direct argument which it seeks to rebut. Rebuttal arguments shall be filed with the City Clerk no later than 10 days after the final filing date for primary arguments. Rebuttals that are received after this deadline will not be accepted. Again, the City Clerk's Office is located at Cudahy City Hall, 5220 Santa Ana Street, Cudahy, California 90201.

SECTION 15. Pursuant to Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney, who shall prepare an impartial analysis of it in accordance with Section 9280 and all other applicable laws. The impartial analysis shall be printed preceding the arguments for and against the measure.

SECTION 16. The City Clerk shall follow all the public examinations and other relevant procedures set forth in Elections Code Section 9295.

SECTION 17. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

SECTION 18. The City Clerk shall forward without delay, a copy of this Resolution to the appropriate public agency which shall be assisting the City of Cudahy with the conduct of its General Municipal Election.

SECTION 19. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 7th day of July2026.
______________________________
Cynthia Gonzalez
Mayor
ATTEST:
__________________________
Richard Iglesias
City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 26-30 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 7th day of July 2026 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

EXHIBIT "A"
ORDINANCE NO. 770

ORDINANCE NO. 770

AN ORDINANCE OF THE PEOPLE OF THE CITY OF
CUDAHY, CALIFORNIA EXTENDING THE CITY’S
TEMPORARY THREE-QUARTER PERCENT (3/4%)

TRANSACTIONS AND USE TAX CURRENTLY

IMPLEMENTED AS A GENERAL USE TAX BEYOND ITS

CURRENT EXPIRATION DATE, TO CONTINUE UNTIL

REPEALED BY CITY VOTERS, AS CODIFIED UNDER
CHAPTER 3.25 (CUDAHY TEMPORARY TRANSACTIONS
AND USE TAX) OF TITLE 3 (REVENUE AND FINANCE)

OF THE CUDAHY MUNICIPAL CODE
WHEREAS, pursuant to Revenue and Taxation Code Section 7285.9 et seq., the City of Cudahy (“City”) has the authority to collect a local transaction and use tax; and WHEREAS, pursuant to Elections Code Section 9222, the Cudahy City Council (“City Council”) has the authority to submit measures to be considered by Cudahy voters at a municipal election; and
WHEREAS, pursuant to Chapter 3.25 (Cudahy Temporary Transactions and Use Tax) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code (“CMC”), the City currently levies a voter-approved three-quarter percent (3/4%) general transactions and use tax, the proceeds of which are deposited into the general fund to be used for general municipal purposes; and
WHEREAS, the City's three-quarter percent (3/4%) transactions and use tax, approved by Cudahy voters in 2018 as Measure R, is set to expire on March 31, 2029; and
WHEREAS, the transactions and use tax is a general tax, the revenue of which is to be placed in the City's general fund and used to pay for various unrestricted governmental purposes; and
WHEREAS, pursuant to Government Code Sections 53723 and 53724(b), and Revenue and Taxation Code Section 7285.9, the placement on the ballot of any proposed ballot measure extending a transactions and use tax must be approved by two-thirds of all City Council members before it may be placed on the ballot, and then must be approved by a majority of votes cast (50% plus 1) at a Cudahy City election; and
WHEREAS, in compliance with Government Code Sections 53723 and 53724(b) and Revenue and Taxation Code Section 7285.9, the City Council at its meeting of [DATE], approved Resolution No. XX-XX, which (1) gave notice of the submission of a ballot measure question to the voters of the City of Cudahy concerning the reauthorization of the temporary three-quarter percent (3/4%) transactions and use tax currently implemented as a general use tax; and (2) set election procedures and priorities for the filing of written arguments and rebuttals regarding the measure and directing the City Attorney to prepare an impartial analysis; and (3) requested the Los Attachment B Page 697 of 707
Angeles County Board of Supervisors' consent to the consolidation of said election with other elections to be held on November 3, 2026, and directing the registrar of voters to conduct the election; and
WHEREAS, the ballot measure seeking approval of this Ordinance was given the letter designation Measure “XX” which presented the following question to Cudahy voters:

WHEREAS, the transactions and use tax imposed by this Ordinance conforms to the Transactions and Use Tax Law (Revenue and Taxation Code Sections 7251 et seq.); and
WHEREAS, this Ordinance was approved by the City Council for first reading on [Date], 2026, respectively, subject to the requirement that the ballot measure authorizing the implementation of this Ordinance is in fact approved by Cudahy voters at the general municipal election held November 3, 2026; and WHEREAS, as required by Government Code Sections 53723 and 53724(b), Revenue and Taxation Code Section 7285.9, and Section 2(b) of Article XIIIC of the California Constitution, the ballot measure seeking approval of this Ordinance was approved by a simple majority of votes cast at the general municipal election of November 3, 2026, by a final count of _________ “Yes” votes (or ______% “Yes”) to ________ “No” votes (or _____% “No”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY, ACTING WITH THE CONSENT OF THE VOTERS FOLLOWING A NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION, HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and incorporated into this Ordinance.

SECTION 2. Chapter 3.25 (Cudahy Temporary Transactions and Use Tax) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code is hereby amended and retitled in its entirety to now state the following:

Chapter 3.25
Keep Cudahy Sales Tax Revenues Local Measure
To maintain, stabilize, and continue current and ongoing funding for various local City services and goals like street, sidewalk and City building repair; park maintenance and enhancements; youth and recreational programs; building “rainy-day” reserves and for any other general governmental purpose, shall the City’s current 3/4% transactions (sales) and use tax be extended indefinitely, unless repealed by voters, generating approximately $1.3 million annually for local use? YES
NO

CUDAHY TRANSACTIONS AND USE TAX
Sections:

3.25.010 Title.

3.25.020 Operative date.

3.25.030 Purpose.

3.25.040 Contract with state.

3.25.050 Transactions tax rate.

3.25.060 Place of sale.

3.25.070 Use tax rate.

3.25.080 Adoption of provisions of state law.

3.25.090 Limitations on adoption of state law and collection of use taxes.

3.25.100 Permit not required.

3.25.110 Exemptions and exclusions.

3.25.120 Amendments.

3.25.130 Enjoining collection forbidden.

3.25.140 Severability.

3.25.150 Effective date.

3.25.160 Mandatory fiscal oversight committee.

3.25.010 Title.

This chapter shall be known as the “Cudahy Transactions and Use Tax.” The city of Cudahy hereinafter shall be called “city.” This chapter shall be applicable in the incorporated territory of the city.

3.25.020 Operative date.
"Operative date" means April 1, 2029.

3.25.030 Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(1) To impose a retail transactions and use tax in accordance with the provisions of Part

1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt the tax ordinance codified in this chapter which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

(2) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the state of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part

1.6 of Division 2 of the Revenue and Taxation Code.
(3) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State sales and use taxes. (4) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes and, at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this chapter.

3.25.040 Contract with state.

Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the city shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3.25.050 Transactions tax rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of three-fourths percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of the ordinance codified in this chapter.

3.25.060 Place of sale.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of

business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

3.25.070 Use tax rate.

An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this chapter for storage, use or other consumption in said territory at the rate of three-fourths percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax, regardless of the place to which delivery is made.

3.25.080 Adoption of provisions of state law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.

3.25.090 Limitations on adoption of state law and collection of use taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
(1) Wherever the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. However, the substitution shall not be made when:
(a) The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the constitution of the state of California; (b) The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof, rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. (c) In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to:
(i) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain

subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
(ii) Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
(d) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(2) The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203 of the Revenue and Taxation Code.

3.25.100 Permit not required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter.

3.25.110 Exemptions and exclusions.
(1) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the state of California or by any city, city and county, or county pursuant to the Bradley-Bums Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. (2) There are exempted from the computation of the amount of transactions tax the gross receipts from:
(a) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government.
(b) Sales of property to be used outside the city, which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the city shall be satisfied:
(i) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the

Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-ofcity address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and (ii) With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
(c) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in this chapter.
(d) A lease of tangible personal property, which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of the ordinance codified in this chapter.
(e) For the purposes of subsections (2)(c) and (d) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this chapter the storage, use or other consumption in this city of tangible personal property:
(a) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. (b) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the state of California.
(c) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in this chapter.
(d) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such

property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of the ordinance codified in this chapter.
(e) For the purposes of subsections (3)(c) and (d) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(f) Except as provided in subsection (3)(g) of this section, a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer. (g) A “retailer engaged in business in the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city. (4) Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

3.25.120 Amendments.

All amendments subsequent to the effective date of the ordinance codified in this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

3.25.130 Enjoining collection forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.25.140 Severability.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

3.25.150 Effective date.

This chapter relates to the levying and collecting of the city transactions and use taxes and shall take effect immediately.

3.25.160 Mandatory fiscal oversight committee.

The city council shall also establish a transactions and use tax fiscal oversight committee (“oversight committee”). Prior to the start of each city fiscal year, the oversight committee shall endeavor to analyze projections for the tax revenues generated pursuant to this chapter and make nonbinding, written recommendations to the city council by or before the date the city council approves the city’s upcoming annual general fund budget. The foregoing notwithstanding, the issuance of written recommendations by the oversight committee shall not be a condition precedent to the city council’s ability to approve the city’s annual general fund budget in any given year.

The oversight committee shall consist of at least three members and shall have such composition, structure and additional responsibilities as the city council may prescribe by resolution. The oversight committee may not include more than two members of the city council. Each committee member shall serve at the pleasure of the person or body responsible for appointing the committee member, whichever the case may be. The Cudahy finance department shall be the division responsible for providing administrative support as well as analytical and technical assistance to the oversight committee.

SECTION 3. Effective Date.

A. This Ordinance extends Cudahy’s Temporary Transactions and Use Tax at a rate of three-quarters of one percent (3/4%) indefinitely until repealed by Cudahy voters.

This Ordinance shall become operative only upon approval by a simple majority of votes cast by the voters of Cudahy at the November 3, 2026, general election. If approved by the voters, the transactions and use tax set forth under Chapter 3.25 of the Cudahy Municipal Code shall be extended indefinitely until repealed by Cudahy voters. If the measure fails to receive the requisite voter approval, this Ordinance shall be rendered inoperative and void, provided that such failure shall not extinguish or otherwise amend

the existing transactions and use tax as presently constituted and approved by Cudahy voters in November 2018.

B. The tax imposed pursuant to this Ordinance shall not become effective until the expiration of the Cudahy Temporary Transactions and Use Tax enacted in 2018.

Upon such expiration, the text of Chapter 3.25 of the Cudahy Municipal Code shall be updated in its entirety as set forth in Section 2 of this Ordinance. Following passage of this measure and approval of this Ordinance, the City may make clerical, formatting, or numbering corrections to the aforementioned text without additional voter approval, solely to ensure conformity with the requirements of the California Department of Tax and Fee Administration and internal consistency within the Cudahy Municipal Code, provided that no such correction shall result in a transactions and use tax rate exceeding the voter-approved rate of three-quarters of one percent (3/4%).

SECTION 4. CEQA. This Ordinance is exempt from review under the California Environmental Quality Act (Cal. Pub. Resources Code, § 2100 et seq.) (“CEQA”) and the CEQA Guidelines (14 Cal. Code of Regs., § 15000 et seq.) because it establishes rules and procedures to implement government funding mechanisms; does not involve any commitment to a specific project that could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not constitute a “project” that requires environmental review (14 Cal. Code of Regs., § 15378(b)(4)-(5)).

SECTION 5. Duration. The transactions and use tax imposed pursuant to this Ordinance shall become operative upon the expiration of the Cudahy Temporary Transactions and Use Tax enacted in 2018 indefinitely, unless repealed by the Cudahy voters.

SECTION 6. Certification of Adoption. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published pursuant to California Government Code Section 36933, following approval by Cudahy voters at the City’s general election held of November 3, 2026.

PASSED, APPROVED, AND ADOPTED this day of ,
2026.

THE CITY OF CUDAHY

Cynthia Gonzalez, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ _______________________________ Shelley Preisler Richard Iglesias
City Attorney City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, do hereby certify that the above and foregoing Ordinance No. _________ was passed, approved, and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a meeting of said City Council of the City of Cudahy held on this ______ day of ___________ 2026, and that said Ordinance was adopted by the following votes to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Richard Iglesias
City Clerk, City of Cudahy