AGENDA
A REGULAR MEETING
OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY
TO THE CUDAHY DEVELOPMENT COMMISSION
July 21, 2026 – 6:30 P.M.
Written materials distributed to the City Council within 72 hours of the City Council meeting shall be available for public inspection at www.cityofcudahyca.gov In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 72 hours in advance of the meeting.
Rules of Decorum
Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.
Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.
When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.
If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)
Cynthia Gonzalez, Mayor
Daisy Lomelí, Vice Mayor
Elizabeth Alcantar Loza, Council Member
Martin U. Fuentes, Council Member
Amanda Gomez, Council Member
This meeting will be conducted in person,
telephonically, and electronically.
Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 850 6215 4434
https://us06web.zoom.us/j/85062154434
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
1. CALL TO ORDER
2. ROLL CALL
Council / Agency Member Alcantar Loza
Council / Agency Member Fuentes
Council / Agency Member Gomez
Vice Mayor / Vice Chair Lomelí
Mayor / Chair Gonzalez
3. APPROVAL OF AGENDA
4. PLEDGE OF ALLEGIANCE
5. LAND ACKNOWLEDGMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.
6. PRESENTATIONS - NONE
7. PUBLIC COMMENTS
(Each member of the public may provide a public comment in person, telephonically or electronically.
In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items under the City Council’s jurisdiction, including items on the council agenda.)
(Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)
8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments, suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)
9. CITY MANAGER REPORT (information only)
10. REPORTS REGARDING AD HOC, ADVISORY, STANDING, OR OTHER COMMITTEE
MEETINGS
11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.
12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.) A. Consideration to Review and Approve the Draft Minutes of July 7, 2026, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 9) Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for July 7, 2026.
B. Approval of the Local Agency Investment Fund (LAIF) for the Month of June 2026 (page 23) Presented by the Finance Director
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of June 2026 in the amount of $5,761,597.49.
C. Approval of the City Demands and Payroll Including Statement of Cash and Investments for the Month of June 2026 (page 27)
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,314,108.26 and to receive and file the Statement of Cash and Investments for the month of June 2026.
D. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with InfoTech SystemHouse for a One-Year Term in a Form Approved by the City Attorney’s Office (page 37) Presented by the City Manager
Recommendation: The City Council is recommended to adopt a Resolution No. 26-31 authorizing the City Manager to execute an agreement with InfoTech SystemHouse for a one-year term in a form approved by the City Attorney’s Office.
E. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Willdan Engineering for an Amount not to Exceed $19,400 for Municipal Separate Storm Sewer System (MS4) Compliance in a Form Approved by the City Attorney’s Office (page 65) Presented by the City Manager
Recommendation: The City Council is recommended to adopt Resolution No. 26-32 authorizing the City Manager to execute an agreement with Willdan Engineering for an amount not to exceed $19,400 for municipal separate storm sewer system (MS4) compliance in a form approved by the City Attorney’s Office.
13. PUBLIC HEARING - NONE
14. BUSINESS SESSION
A. 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
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
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 (page 71) Presented by the Deputy City Attorney
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 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.
B. Consideration and Approval of a Resolution (1) Calling and Giving Notice of the Submission to Cudahy Voters of One of Several Ballot Measure Options Concerning Cudahy’s Existing Rent Stabilization Program; (2) Acknowledging City Council Approval of an Ordinance Effectuating the Foregoing Amendments; (3) Ordering that the Ballot Measure Be Submitted as Part of the City’s November 3, 2026 General Municipal Election; (4) Requesting that The Los Angeles County Board Of Supervisors Include the Ballot Measure as Part of the City’s Prior Election Consolidation Request; (5) Requesting that the Registrar-Recorder/County Clerk Provide Specific Election Administration Services, Inclusive of the Ballot Measure; and (6) Setting Priorities for Filing Written Arguments and Rebuttals Regarding the Ballot Measure and Directing Preparation of an Impartial Analysis
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
Introduction for First Reading of Ordinance Effectuating the Mandates of the Selected Ballot Measure Subject to Later Second Reading and Voter Approval at the City’s November 3, 2026, General Municipal Election (page 97)
Presented by the Deputy City Attorney
Recommendation: The Cudahy City Council (“City Council”) is requested to:
1. Consider alternative ballot measure options concerning the City’s rent stabilization program for placement on the November 3, 2026 General Election;
2. Find that the selected Resolution is not a project under the California Environmental Quality Act (“CEQA”) (Public Resources Code § 21000 et seq.) pursuant to the CEQA Guidelines (California Code of Regulations Title 14 §§ 15060(c)(2)-(3)), but if deemed to be a project, is categorically exempt under CEQA Guidelines § 15061(b)(3) (common sense exemption);
3. Introduce and waive full reading of an ordinance to submit the selected alternative rent stabilization measure to the voters for the November 3, 2026 General Election; and
4. Adopt a resolution to submit the selected alternative rent stabilization measure to the voters for the November 3, 2026 General Election.
C. Discussion and direction on establishing a resolution to subsidize eligible recreation program and service fees for City of Cudahy (page 297)
Presented by the Community Services Director
Recommendation: The City Council is recommended to discuss and provide direction on establishing a resolution to subsidize eligible recreation program and service fees for City of Cudahy.
D. Consideration to Adopt Resolution No. 26-33 Establishing a Policy Encouraging Public Participation in City Council Meetings (page 497)
Presented by the City Attorney
Recommendation: It is recommended that the City Council adopt Resolution No. 26-33, establishing a policy for public outreach to encourage participation in City Council meetings.
E. Updates Regarding City Contracts and Previously Incurred Expenditures (page 505) Presented by the City Manager
City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
July 21, 2026, at 6:30 P.M.
Recommendation: The City Council is requested to:
1. Receive an update from the City Manager’s Office regarding contract services in the City of Cudahy
15. COUNCIL DISCUSSION
A. Council Member Fuentes
i. Discuss Cudahy Park Baseball fields, maintenance, and availability.
RECESS TO CLOSED SESSION
16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957.6(a) – Conference with Labor Negotiator Regarding Represented Employees
City’s Designated Representative(s) for Negotiations: City Manager Christopher R. Lopez Employee Organization: Cudahy Miscellaneous Employees Association (CMEA) B. Closed Session Pursuant to Government Code Section 54956.9(d)(4) - Conference with Legal Counsel - Anticipated Litigation – Initiation of Litigation - One Matter
RECONVENE TO OPEN SESSION
17. CLOSED SESSION ANNOUNCEMENT
18. ADJOURNMENT
I, Richard Iglesias, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City’s Website, City Hall, Clara Park, and Lugo Park not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the City Clerk’sOffice.
Dated this 17th day of July 2026
Richard Iglesias, CMC
City Clerk
Blank Page
“Serving the People” "Sirviendo A La Comunidad"
Staff Report
07/21/2026 Page 1 of 2
STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of July 7, 2026, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for July 7, 2026.
BACKGROUND / ANALYSIS
On December 12, 2016, the City Council of the City of Cudahy adopted Resolution No. 16-38, approving the use of summary action minutes, meant to allow the City Clerk's Office to write the minutes in brief, assuring a record of Council's actions, due to having a recording of the full Council Meeting on the City’s website.
Historically
The Municipal Clerk is one of the oldest professions in government, dating back to 1272 A.D., originating in England. The record keeper then was called Remembrancer, an English official whose job was to remind the Lord Treasurer and Barons of Court, of business pending.
Years later, in the 1600s, when early colonists came to America, the office of the Clerk was one of the first offices to be established. Over the years, the City Clerk’s office has become the core for local government, and the liaison to the residents of the Community. The Municipal Item Number
12A
“Serving the People” "Sirviendo A La Comunidad"
Staff Report
07/21/2026 Page 2 of 2
Clerk (City Clerk) is the record keeper of a City’s recorded history.
William Bennett Munro, a Canadian historian, and political scientist, who taught at Harvard University and the California Institute of Technology, stated in one of his first textbooks written: “No other office in municipal service has so many contacts. It serves the Mayor, the City Council, the City Manager (when there is one), and all administrative departments, without exception. All of them call upon it, almost daily, for some service or information. Its work is not spectacular, but it demands versatility, alertness, accuracy, and no end of patience.
The public does not realize how many loose ends of city administration this office pulls together.”
Moving forward to the present time, the City Clerk’s office today is generally responsible for keeping a record of City Council meetings; agreements; recordings of official documents; legal advertisements; municipal elections; commissions and committees current files; claims against the city; and other legal or official documents.
City Clerks are required to keep record of the proceedings (minutes) of Council meetings (Government Code Sections 36814 and 40801). Minutes are the official record of a meeting which provides a history of the Council’s decisions and actions.
CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of July 7, 2026.
STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.
FINANCIAL IMPACT
No Financial Impact.
ATTACHMENT
A. July 7, 2026, Draft Minutes
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.
City Council/Successor Agency Minutes of 7/07/2026 Page 1 of 10
MINUTES
CUDAHY CITY COUNCIL REGULAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and
HOUSING SUCCESSOR AGENCY TO THE CUDAHY
DEVELOPMENT COMMISSION JOINT MEETING
July 7, 2026, 6:30 P.M.
1. CALL TO ORDER
Mayor / Chair Gonzalez called the meeting to order at 6:49 p.m.
2. ROLL CALL
Council / Agency Member Alcantar Loza participation remotely via Zoom due to travel while on official business of the legislative body or another state or local agency in accordance with Government Code Section 54953.8.3(c)(4).
PRESENT: Council / Agency Member Alcantar Loza
Council / Agency Member Fuentes
Council / Agency Member Gomez
Vice Mayor / Vice Chair Lomelí
Mayor / Chair Gonzalez
ALSO PRESENT: City Manager, Christopher R. Lopez, City Attorney, Shelley Preisler, Deputy City Attorney, Samuel Holmberg, City Clerk, Richard Iglesias, Community Services Director, Brenda Rodriguez, Finance Director, John Xie, Assistant to the City Manager, Estefania Zamora, Senior Planner, Cecilia Madrigal, Administrative Analyst, Daniela Trujillo, Executive Assistant to the City Manager, Janet Andrade, Housing Specialist II, Lorena Cardenas, Administrative Intern, Esmeralda Perez
3. APPROVAL OF AGENDA
Motion: Vice Mayor Lomelí motioned to approve the agenda, seconded by Council Member Gomez. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
Attachment A Page 11 of 506
City Council/Successor Agency Minutes of 7/07/2026 Page 2 of 10
4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Fuentes.
5. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Vice Mayor Lomelí.
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.
6. PRESENTATIONS
A. Housing Updates
7. PUBLIC COMMENTS
Ricardo Peralta came to make a claim regarding a permit he had requested for his cargo van that was denied. States there is another cargo van parked in the street and questions why his permit request was denied. Informed the City Council that street cleaning did not pass the previous week and parked both his vehicles on the street but received a ticket; currently owing the city 3 in total that have not been paid due to not receiving them. Has the license plate of the cargo van parked overnight and is asking the city to properly investigate what is occurring and contact him with a response.
Paty Osorjo thanked the City for the improvements on Patata, Salt Lake, and Atlantic streets, noting that the new signage and improved lighting have reduced the presence of unhoused individuals. Stated contacting the City of South Gate to clarify jurisdiction over the railway lines, where unhoused individuals continue to gather. Requested speed bumps on Cecilia Street and Atlantic Avenue heading towards Patata and Salt Lake due to speeding concerns, particularly at night, and noted that residents living in RVs and trailers fear their homes could be damaged. Shared suggestions with City staff regarding additional street improvements. Raised concerns about other individuals filling the trash bins, leaving insufficient space for residents who pay $60 for the service. Additionally, noted personally creating a permit for unauthorized vehicles, and requesting signage for overnight parking that would be available after July 15. Requested that overnight parking be extended to 24 hours, explaining that a nearby car business occupies much of the street parking with its vehicles, limiting parking availability for residents.
City Council/Successor Agency Minutes of 7/07/2026 Page 3 of 10 Lorenzo Uribe expressed concern about not seeing progress regarding complaints towards Republic Services. Stated being charged $100 for an overfilled bin and questioned the evidence provided by the company, noting the photos shown were from other streets. Voiced concern that other residents may also be experiencing similar issues without speaking up. Additionally, stated that, for the past five years, paying twice for trash services—through annual taxes and monthly Republic Services fees—and asked how to recover improperly charged funds and how those where those funds are located.
Mentioned that despite securing bins with chains to prevent them from being left open, was still charged a $50 fee for an open yard bin. Requested that the City provide greater oversight of Republic Services to prevent unfair practices and expressed hope to see results.
David Rodriguez worked the fireworks stand with the Cudahy Youth Foundation for the Fourth of July as overnight security. Pointed out that on Thursday, staff sold over $4000 in fireworks following procedures such as having business licenses, a seller's permit, fire inspection, and code enforcement. Collected approximately $420 in sales tax for the city, rounded down from $4000. Expresses no action being taken towards food vendors operating illegally without licenses, health inspections, code enforcement, and fire inspection, which have possibly generated zero sales taxes for the city of Cudahy.
Mentions concerns of food stands creating traffic and blocking sidewalks. Around Santa Ana and Salt Lake Avenue, there is a food vendor that sets up at Leal Auto Body, blocking the right turn lane and the bus stop, collecting nothing for the city.
Mario Dominguez Jr. expressed concern regarding a Planning Commission item in the City of South Gate involving an AT&T cellular tower located within a city park. Stated that the item indicated the tower had been installed on August 9, 2005, and expressed opposition to placing telecommunications infrastructure in public parks. Urged the City of Cudahy to preserve parks as green spaces and instead consider locating such infrastructure along streets, corridors, or other suitable parcels. Further suggested that, if the City enters into agreements with telecommunications companies, it require annual contributions to a park enhancement fund to support park maintenance, repairs, upgrades, and amenities.
8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes congratulated staff and residents on the success of the City's Fourth of July event, noting that while space was limited this year, he hopes the full park will be available for next year's celebration. Requested a future agenda item to discuss and vote on the maintenance and availability of Cudahy Park's baseball fields during the park renovation, stating receiving concerns from a resident and active softball player regarding the park's longstanding use for baseball.
City Council/Successor Agency Minutes of 7/07/2026 Page 4 of 10 Council Member Gomez thanked staff and Vice Mayor Lomelí for the assistance in organizing the recent air purifier distribution event. Expressed interest in working with the Assemblywoman's office to obtain additional air purifiers for residents.
Vice Mayor Lomelí thanked Council Member Gomez, staff, and the Mayor for their collaboration and support of the air purifier distribution event, noting that residents were appreciative and emphasizing the importance of preparing the community for health emergencies. Highlighted the City's ongoing efforts related to rent stabilization and tenant protection, stating the community is entering its third year of the program. Encouraged residents to stay safe during air quality conditions and announced a community film screening on July 20 focused on safety, thanking staff for their efforts in organizing the event.
Mayor Gonzalez thanked the volunteers who participated in the food distribution event, recognizing Susie de Santiago, along with moms who are members of Los Angeles Siempre Unidos, and the many volunteers who support local families. Acknowledged the passing of longtime community volunteer Petra and recognized her dedication to the community. Shared attendance at the Scholar Match event in the City of Cudahy, where students and their families received college counseling services. Commended staff for organizing the Fourth of July celebration, noting it was well organized with assigned seating, and mentioning the educators' rock band that performed would like to be considered back for next year's event.
9. CITY MANAGER REPORT (information only)
10. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER
COMMITTEE MEETINGS - NONE
11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Gomez motioned to waive full reading of resolutions and ordinances, seconded by Vice Mayor Lomelí. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
City Council/Successor Agency Minutes of 7/07/2026 Page 5 of 10
12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of June 16, 2026, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for June 16, 2026.
B. Adoption of Ordinance No. 769 Adding Chapter 9.15 “Law Enforcement Services Transparency and Constitutional Compliance” to Title 9 of the City’s Municipal Code and Amending Chapter 1.25 “Procedures Concerning Sensitive Information and Prohibition of the Use of City Resources for Federal Immigration Enforcement” of Title 1 of the City’s Municipal Code
Recommendation: The City Council is requested to waive the full reading and adopt Ordinance No. 769 by title only, adding Chapter 9.15 “Law Enforcement Services Transparency and Constitutional Compliance” to Title 9 of the City’s Municipal Code and amending Chapter 1.25 “Procedures Concerning Sensitive Information and Prohibition of the Use of City Resources for Federal Immigration Enforcement” of Title 1 of the City’s Municipal Code.
Motion: Vice Mayor Lomelí motioned to approve Consent Calendar items A-B, seconded by Council Member Gomez. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
13. PUBLIC HEARING
A. A Public Hearing to Consider and Approve a Resolution of the City of Cudahy Adopting and Approving the Filing of the Report of Rubbish Collection Charges for Fiscal Year 2026-2027 in accordance with the Solid Waste Rate Adjustments Pursuant to the Franchise Agreement with “Republic Services” (formerly Consolidated Disposal Services) and Approving the Placement on the Property Tax Roll
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to take the following action(s):
1. Open the public hearing, receive testimony and presentation of the proposed adjustments; and
City Council/Successor Agency Minutes of 7/07/2026 Page 6 of 10
2. Adopt proposed Resolution No. 26-28 adopting and approving the filing of the Report of Rubbish Collection Charges for Fiscal Year 2026/2027 in accordance with the Solid Waste Rate Adjustments Pursuant to the Franchise Agreement with “Republic Services” (formerly Consolidated Disposal Services) and Approving the Placement on the Property Tax Roll.
At 7:35 p.m. Mayor Gonzalez opened public comments.
-No CommentsAt 7:39 p.m. Mayor Gonzalez closed public comments.
Motion: Council Member Fuentes motioned to adopt Resolution No. 26-28, seconded by Vice Mayor Lomelí. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
14. BUSINESS SESSION
A. Adoption of Resolution No. 26-29 Removing the Commitment of Fund Balance Pursuant to GASB 54
Presented by the Finance Director
Recommendation: The City Council is requested to adopt Resolution No. 26-29, removing the commitment of $900,000 in General Fund balance previously committed for Strategic Plan Program Implementation pursuant to GASB 54.
Motion: Council Member Fuentes motioned to adopt Resolution No. 26-29, seconded by Vice Mayor Lomelí. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
B. Approve the Installation of a Backflow Prevention Devise at Lugo Park Facility Located at 4213 Elizabeth St. and Authorize the City Manager to Execute a Purchase Order with Kustom Plumbing
Presented by the Administrative Analyst
Recommendation: The City Council is requested to approve the installation of a backflow prevention device at the Lugo Park Facility located at 4213 Elizabeth St. and
City Council/Successor Agency Minutes of 7/07/2026 Page 7 of 10 authorize the City Manager to execute a purchase order with Kustom Plumbing in the amount of $35,985.00.
Motion: Council Member Fuentes motioned to approve the installation of a backflow prevention device at the Lugo Park Facility and authorize the City Manager to execute a purchase order with Kustom Plumbing in the amount of $35,985, seconded by Vice Mayor Lomelí. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
C. Discussion and direction on establishing a policy to subsidize eligible recreation program and service fees for City of Cudahy
Presented by the Community Services Director
Recommendation: The City Council is recommended to discuss and provide direction on establishing a policy to subsidize eligible recreation program and service fees for City of Cudahy. The City Council may consider the following items to help guide the discussion:
• Receive staff and consultant presentation summarizing the proposed comprehensive service and user fees. The City of Cudahy has historically provided recreation programs and services at rates that do not fully recover the cost of service. Recreation fees have not been comprehensively updated in more than ten years. • Recreation programs and services provide significant community benefits, including youth development, health and wellness opportunities, social engagement, and access to safe recreational activities.
• As part of the City's recent User Fee Study, staff evaluated the actual cost of providing recreation programs and services and compared City fees to those charged by neighboring agencies.
• The User Fee Study identified that the City currently recovers only a portion of the costs associated with providing recreation programs and services, with the remaining costs subsidized through General Fund resources.
• During discussions regarding user fees, the City Council expressed a desire to maintain affordability for residents while establishing a clear and transparent policy regarding fee subsidies.
-Direction Given, No Action TakenD. Discussion and Direction Regarding Placing Cudahy’s Existing Rent Stabilization Ordinance (Ordinance No. 736) Before the Voters at the November 2026 General Election
City Council/Successor Agency Minutes of 7/07/2026 Page 8 of 10 Presented by the City Attorney
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.
-Direction Given, No Action TakenE. 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 ThreeQuarter 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 Presented by the Deputy City Attorney
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 threequarter 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; and
City Council/Successor Agency Minutes of 7/07/2026 Page 9 of 10
3. Discuss and take action regarding the preparation of ballot arguments; and
4. Take such additional, related, action that may be desirable.
Motion: Council Member Fuentes motioned to for staff to return with materials revised to reflect the changes, seconded by Council Member Alcantar Loza. Motion passed 5-0 by the following roll call vote:
AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
15. COUNCIL DISCUSSION – NONE
At 9:44 p.m. City Attorney, Shelley recessed to closed session.
16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957.6(a) – Conference with Labor Negotiator Regarding Represented Employees
City’s Designated Representative(s) for Negotiations: City Manager Christopher R.
Lopez
Employee Organization: Cudahy Miscellaneous Employees Association (CMEA) B. Closed Session Pursuant to Government Code Section 54956.9(d)(4) – Conference with Legal Counsel - Anticipated Litigation – Initiation of Litigation - One Matter At 10:52 p.m., Mayor Gonzalez reconvened to open session.
17. CLOSED SESSION ANNOUNCEMENT
City Attorney Shelley Preisler announced that the City Council went into closed session for two items 1) Pursuant to Government Code Section54957.6(a) – Conference with Labor Negotiator Regarding Represented Employees 2) Pursuant to Government Code Section 54956.9(d)(4) – Conference with Legal Counsel - Anticipated Litigation – Initiation of Litigation - One Matter, all five council members where present for the item including Council Member Alcantar Loza attending remotely, direction given, no further reportable action.
18. ADJOURNMENT
The City Council / Agency meeting adjourned at 10:53 p.m.
City Council/Successor Agency Minutes of 7/07/2026 Page 10 of 10
Cynthia Gonzalez
Mayor
ATTEST:
Richard Iglesias
City Clerk
Attachment
B
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher Lopez, City Manager/Executive Director John Xie, Finance Director
Subject: Approval of the Local Agency Investment Fund (LAIF) for the Month of June 2026
RECOMMENDATION
The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of June 2026 in the amount of $5,761,597.49.
BACKGROUND
1. In 1955, the Pooled Money Investment Account (PMIA) started. LAIF became part of the PMIA. The oversight is provided by the Pooled Money Investment Board (PMIB) and an inhouse Investment Committee. The PMIB members consist of the State Treasurer, Director of Finance, and State Controller.
2. In 1977, LAIF was created as a voluntary program by Section 16429.1 et seq. of the California Government Code. The program was intended to be used as an investment alternative for California's local governments and special districts. The LAIF continues today under State Treasurer, Fiona Ma's administration.
3. On June 1, 2026, the balance in LAIF was $5,761,597.49 (See Attachment).
4. On June 30, 2026, the balance in LAIF was $5,761,597.49 (See Attachment). The reported balance agrees to the Local Agency Investment Fund account statement issued by the State Treasurer’s Office for the period. LAIF apportions interest quarterly; interest earned for the quarter ended June 30, 2026 will be apportioned by the State Treasurer’s Office in July 2026 and reflected in July 2026 report.
Item Number
12B
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ANALYSIS
The voluntary program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer’s Office investment staff at no additional cost to the taxpayer.
All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery versus payment basis using a third-party custodian.
Cudahy Municipal Code Section 3.04.080 indicates, "Except as otherwise provided, no warrant shall be drawn or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."
CONCLUSION
Once the City Council receives and files the current LAIF report, this balance may be relied upon, together with the City’s other pooled cash and subject to applicable fund restrictions, in determining whether the City has sufficient funds legally applicable to pay demands and payroll as required by Cudahy Municipal Code Section 3.04.080.
STRATEGIC PLAN CORRELATION
Strategy #2. Provide regular updates to the City Council and community about the city’s finances.
FINANCIAL IMPACT
None
ATTACHMENT
A. Local Agency Investment Fund (LAIF) Balance.
LOCAL AGENCY INVESTMENT FUND (LAIF)
General Account - City #98-19-225
Beginning Balance as of June 01, 2026 $5,761,597.49
LAIF Interest earned 0.00
Transfer from LAIF to City operating account 0.00
Transfer from City operating account to LAIF 0.00
Ending Balance as of June 30, 2026 $ 5,761,597.49
Note: LAIF interest is apportioned quarterly by the State Treasurer’s Office. Interest for the quarter ending June 30, 2026 will be apportioned in July 2026 and reflected in the July 2026 LAIF report. The reported balance agrees to the State Treasurer’s LAIF account statement for the period.
Attachment A Page 25 of 506
Blank Page
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher Lopez, City Manager/Executive Director By: John Xie, Finance Director
Subject: Approval of the City Demands and Payroll Including Statement of Cash and Investments for the Month of June 2026
RECOMMENDATION
The City Council is requested to approve the Demands and Payroll in the amount of $1,314,108.26 and to receive and file the Statement of Cash and Investments for the month of June 2026.
BACKGROUND
1. On December 13, 1993, Ordinance 476 was adopted and codified as Cudahy Municipal Code Section 3.04.080 indicating, "Except as otherwise provided, no warrant shall be drawn, or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."
2. During the month, the Finance Department completed the following demands and payroll:
A/P Demands $862,935.83
Payroll $451,172.43
Total: $1,314,108.26
Attachment A
Attachment B
Item Number
12C
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ANALYSIS
The Check Register Report (Attachment A), Payroll Warrants including payroll taxes and insurance premiums (Attachment B), Statement of Cash and Investments (Attachment C) indicate that the cash and investment balance was sufficient for the month’s disbursements.
Attachment D summarizes cash received and disbursed by month during Fiscal Year (FY) 2025- 26, and Attachment E summarizes cash received and disbursed by month during FY 2024-25.
Cudahy Municipal Code Section 3.04.070 indicates, "Budgeted demands paid by warrant prior to audit by the council shall be presented to the council for ratification and approval..."
CONCLUSION
The Finance Director certifies the attached Demand/Warrant Register accurately reflects the payments made during the period. The Register is submitted to the City Council for ratification and approval in accordance with Cudahy Municipal Code Section 3.04.070.
STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.
FINANCIAL IMPACT
The Statement of Cash and Investments Report (Attachment C) indicates that the City’s pooled cash and investments are sufficient to meet the pool’s expenditure requirements for the next six (6) months. Amounts held for the Successor Agency and under bond trustee arrangements are restricted to their respective purposes and are not available for City operations.
ATTACHMENTS
A. Accounts Payable Check Register Report
B. Payroll Warrants including payroll taxes and insurance premiums C. Statement of Cash and Investments
D. Summary of Cash Receipt / Disbursement by Month FY 2025-26 E. Summary of Cash Receipt / Disbursement by Month FY 2024-25 F. Credit Card Payment Detail
Attachment A Page 29 of 506
06/15/26 06/30/26 Total
Payroll Check Issued $721.47 $622.27 $1,343.74
(a) Direct Deposits 129,078.50 128,947.65 258,026.15
ICMA & Union Dues 581.19 30.68 611.87
CalPERS Ret & 457 Plan 27,727.77 27,983.23 55,711.00
(b) Payroll taxes 26,277.97 26,403.00 52,680.97
(c) CalPERS Medical 73,417.79 0.00 73,417.79
(d) Employee Benefits 5,078.34 4,302.57 9,380.91
Total Amount $262,883.03 $188,289.40 $451,172.43
(a) Employees / Council Members / Commissioners
(b) Federal / State payroll taxes and unemployment
(c) CalPERS Medical (active and retired)
(d) Employee Benefits - Active and Retired employees
City of Cudahy
Payroll - including payroll taxes and insurance premiums:
Attachment B Page 32 of 506
Institution Amount % of Total
City Pooled Cash and Investments
Deposit - 4588 Wells Fargo $4,037,137.07 27.36%
Checking - 7128 Wells Fargo 506,484.81 3.43%
Payroll - 4570 Wells Fargo 111,539.18 0.76%
Pooled Savings State Local Agency
Investment Fund (LAIF) 5,761,597.49 39.05%
Subtotal - City Pooled Cash and Investments 10,416,758.55 70.61% Successor Agency (Not Available for City Operations)
Money Market Account Bank of New York (BNY) 9,662.69 0.07% Successor Agency - 0688 Wells Fargo 4,326,927.15 29.33% Subtotal - Successor Agency: 4,336,589.84 29.39%
Total $14,753,348.39 100.00%
City of Cudahy
Note: City Pooled Cash and Investments represents the combined equity of all City funds held in the pool, including restricted special revenue, grant, and housing funds. The unrestricted General Fund portion is a subset of this amount, determined through fund-level analysis.
Pursuant to California Government Code Section 53646(b), I hereby certify that all investments held by the City are in compliance with state law and the City's Investment Policy, and that the City's pooled cash and investments are sufficient to meet the pool's expenditure requirements for the next six (6) months. Amounts held for the Successor Agency and under bond trustee arrangements are restricted to their respective purposes and are not available for City operations.
Respectfully submitted,
John Xie
Finance Director
Type
June 30, 2026
Statement of Cash and Investments
Attachment C Page 33 of 506
Month
Receipts Disbursement
July 2025 543,425.68 $ 5,348,611.40 $ (a)
August 2025 3,174,021.37 1,490,136.26
September 2025 4,881,824.99 3,404,130.55
October 2025 2,104,627.08 3,340,885.97
November 2025 1,621,749.79 2,174,728.73
December 2025 1,173,488.97 1,903,564.56
January 2026 4,848,479.86 (b) 2,407,878.77 (c)
February 2026 1,180,833.12 1,359,464.48
March 2026 816,092.60 1,792,631.57
April 2026 1,780,054.99 1,752,695.90
May 2026 3,467,129.46 (d) 2,435,853.05
June 2026 2,946,816.96 1,311,609.59
Total: $ 28,538,544.87 28,722,190.83
Note (b) - Includes $1,950,804 in Motor Vehicle In-Lieu Note (c) - Includes $906,984 in CIP vendor payments
Note (d) - Includes $1,950,803 in Motor Vehicle In-Lieu Month
Cash Receipts Disbursement
July 2025 481,146.70 $ 3,109,340.64 $ (1)
August 2025 1,555,890.77 854,330.70
September 2025 893,981.52 1,114,641.27
October 2025 1,314,560.66 1,196,654.11
November 2025 685,871.38 1,205,206.98
December 2025 777,611.77 1,157,684.74
January 2026 3,139,602.87 (2) 1,085,674.61
February 2026 748,989.68 1,101,673.02
March 2026 586,500.21 1,523,466.28
April 2026 746,528.77 998,924.39
May 2026 2,959,826.27 (3) 1,259,184.38 (4)
June 2026 830,444.75 1,085,967.58
Total: $ 14,720,955.35 $ 15,692,748.70
Note (2) - Includes $1,950,804 in Motor Vehicle In-Lieu Note (3) - Includes $1,950,803 in Motor Vehicle In-Lieu Note (4) - Includes $897,254 in CIP vendor payments
All Funds
General Fund
City of Cudahy
Note (1) - Sheriff $1.186M (3 months) Keenan (Ins), and CalPERS unfunded liability $641k Note (a) - Capital Project $1.573M, Sheriff $1.186M (3 months) Keenan (Ins), and CalPERS Unfunded Liability $641K.
Summary of Cash Receipt/Disbursement by Month FY 2025-2026 Attachment D Page 34 of 506
Month
Receipts Disbursement
July 2024 $ 1,537,864.08 $ 3,641,311.49 (a)
August 2024 995,697.04 1,290,369.09
September 2024 913,424.92 3,023,210.74 (b)
October 2024 1,231,618.97 2,197,219.69 (c)
November 2024 210,291.23 842,168.80
December 2024 808,306.87 1,601,849.17
January 2025 3,780,451.34 (d) 1,721,266.39
February 2025 880,961.79 1,447,014.74
March 2025 900,181.23 1,561,541.79
April 2025 1,786,755.19 (e) 1,900,675.18
May 2025 2,642,468.32 (f) 2,162,630.14
June 2025 1,051,756.76 3,922,309.00 (g)
Total: $ 16,739,777.74 25,311,566.22
Note (a) - City liab. & workers comp insurance, and PERS unfunded pension liab.
Note (b) - Includes $1.7M Debt Service payment
Note (c) - Includes Aug & Sep Sheriff invoice payments
Note (d) - Includes $1.888M in Motor Vehicle In-Lieu taxes Note (e) - Includes $319K in Franchise Fees
Note (f) - Includes $1.888M in Motor Vehicle In-Lieu receipt Note (g) - Includes $2.088M for LA River and $876K for Lugo Park Projects Month
Cash Receipts Disbursement
July 2024 963,942.68 $ 2,896,825.05 $ (1)
August 2024 678,458.46 1,051,901.91
September 2024 545,421.73 998,247.07
October 2024 765,107.19 1,845,289.62 (2)
November 2024 133,653.35 647,782.87
December 2024 571,683.73 1,210,748.09
January 2025 3,218,974.09 1,364,627.64
February 2025 557,476.33 1,172,987.78
March 2025 605,946.32 1,221,490.94
April 2025 1,158,417.08 1,577,473.09
May 2025 2,510,862.37 (3) 1,445,412.30
June 2025 585,119.44 633,663.29
Total: $ 12,295,062.77 $ 16,066,449.65
Note (1) - City liab. & workers comp ins, and PERS unfunded pension liab.
Note (2) - Includes Aug & Sep Sherrif invoice payments
Note (3) - Includes $1.888M in Motor Vehicle In-lieu taxes City of Cudahy
All Funds
General Fund
Summary of Cash Receipt/Disbursement by Month FY 2024-2025 Attachment E Page 35 of 506
Supplier - Name Transaction - Line Amount Description
Amazon Mktpl 1,768.56 Air Purifier's for Cudahy Residents Bestbuycom807191345995 1,673.05 Computer - Employee Receivable Baker Party Rentals 1,180.00 Chair rental for the fourth of July event Msft * E0300zw3v5 654.16 Microsoft subscription for staff Vivint Inc/Us 647.22 Alarm service
Adobe *800-833-6687 549.65 Adobe subscription for staff B.L. Wallace Distributor 399.28 Building Materials
Jersey Mikes Online Uc 380.85 Travel and meetings
Sq *agua Y Salud 376.00 Office Supplies
Ferguson Ent 1456 375.15 Facility Set Up Worker
Siteone Landscape Supply, 329.47 Subscription
World Famous Grill 328.77 Travel and meetings
Msft * E0300zvzk5 304.80 Subscription
24hourwristbands.Com 248.06 Office Supplies
The Ups Store 5391 237.00 Employee Physical
Samsclub.Com 184.88 Office Supplies
Otc Brands 171.56 Special Event
B&h Photo 800-606-6969 163.54 Office Supplies
U-Haul At Atlantic Ave 161.59 Food Distribution
Js Hvac And Electrical Su 127.32 Street Maintenance supplies Cudahy Sinclair 126.78 Gasoline
Smithfast 110.26 Advertising
La Princessa Bakery Cafe 100.00 Senior Activities
Cudahy 89.94 Office Supplies
Ace Hardware Corporation 88.36 Office Supplies
Flickr.Com 82.00 Advertising
Smart And Final 319 71.46 Office Supplies
Fs *systoolsgroup 59.00 Office Supplies
Piara Pizza 52.83 Special Events
Business.Apple.Com 48.51 Subscription
L B Johnson Ace Hdwe 43.88 Subscription
Best Buy 00008722 43.13 Advertising
Zoom.Com 888-799-9666 40.00 Contractual
Sei*worldsoccershop365 38.49 Office Supplies
Amazon.Com*ay1ap2cc3 36.45 Election Services
Msft * E0300zw7es 33.42 Subscription
City National Plaza 2 30.00 Travel and meetings
Panas Cafe 24.00 Travel and meetings
D35170009 19.54 Office Equipment
Lumabooth 18.00 Advertizing
Peacock 0c3f2 Premplus 16.99 Senior Activities
Arco 902273 15.00 Food Distribution
Msft * E0300zvzk6 5.60 Subscription
11,454.55
CITY OF CUDAHY
Credit Card Payment Detail
Jun 01, 2026 to Jun 30, 2026 paid on Jul 06, 2026
Attachment F Page 36 of 506
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director Richard Iglesias, City Clerk
Subject: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with InfoTech SystemHouse for a One-Year Term in a Form Approved by the City Attorney’s Office
RECOMMENDATION
The City Council is recommended to adopt a Resolution No. 26-31 authorizing the City Manager to execute an agreement with InfoTech SystemHouse for a one-year term in a form approved by the City Attorney’s Office.
BACKGROUND
On June 20, 2023, the City Council approved a Professional Services Agreement with Teslarian, lnc., now known as InfoTech SystemHouse, Inc., for Information Technology Services for a one (1) year term and two (2) one-year options to extend the agreement.
The current vendor has agreed to current pricing to extend the existing contract for one additional year.
ANALYSIS
InfoTech SystemHouse, Inc. (formerly known as Teslarian Inc. and IT Systemhouse, Inc.) will provide professional consultant services for Information Technology. This will include unlimited, as-needed, hours on-site and remote technical services, plus 32 hours of Information Technology Director Services per month. Remote monitoring services will be performed 24 hours a day, 7 days a week.
InfoTech SystemHouse, Inc., has provided continuous services to the City since their initial Item Number
12D
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contract term in 2014. They have thorough and complete knowledge of the City’s informational technology. Approval of this item would ensure that the City has an active contract with the firm. If approved, the term for InfoTech SystemHouse, Inc., would run from July 1, 2026—June 30, 2027.
CONCLUSION
The contract total is $3,200.00 a month, not to exceed $38,400 per fiscal year. The contract cost has been allocated in this fiscal year's budget. There is no additional financial impact.
FINANCIAL IMPACT
The contract total is $3,200.00 a month, not-to-exceed $38,400. The contract cost has been allocated in this fiscal year’s budget. There is no additional financial impact.
STRATEGIC PLAN CORRELATION
None.
ATTACHMENTS
A. Draft Resolution No. 26-31
B. Draft Agreement
RESOLUTION NO. 26-31
A RESOLUTION OF THE CITY OF CUDAHY CALIFORNIA,
AUTHORIZING THE EXECUTION OF A PROFESSIONAL
SERVICES AGREEMENT BETWEEN THE CITY OF CUDAHY
AND INFOTECH SYSTEMHOUSE, INC.
WHEREAS, On June 20, 2023, the City Council approved a Professional Services Agreement with Teslarian, lnc., now known as InfoTech SystemHouse, Inc., for Information Technology Services for a one (1) year term and two (2) one-year options to extend the agreement.
WHEREAS, the City wishes to enter into an agreement with InfoTech SystemHouse, Inc (“CONSULTANT”); and
WHEREAS, City staff has determined that CONSULTANT is qualified for the services required and to provide such services to City; and
WHEREAS, City requires information technology services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:
SECTION 1. The City Council hereby authorizes the City Manager to execute a professional services agreement with InfoTech SystemHouse for a One-Year Term in a Form Approved by the City Attorney’s Office, with a term of July 1, 2026 - June 30, 2027.
SECTION 2. The one year term cost shall not exceed $38,400.
SECTION 3. 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.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 21st day of July 2026.
Cynthia Gonzalez
Mayor
ATTEST:
Richard Iglesias
City Clerk
Attachment A Page 39 of 506
Resolution No. 26-31
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 26-31 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 21st day of July 2026 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Richard Iglesias
City Clerk
Resolution No. 26-31
Exhibit A
Professional Services Agreement
InfoTech SystemHouse, Inc.
1 2026
PROFESSIONAL SERVICES AGREEMENT
(Engagement: Information Technology Services)
(Parties: InfoTech SystemHouse, Inc. and City of Cudahy and City of Cudahy) THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this 1st day of July 2026 (hereinafter, the “Effective Date”) by and between the CITY OF CUDAHY, a municipal corporation (hereinafter, “CITY”) and INFO TECH SYSTEMHOUSE, INC., (hereinafter, “CONSULTANT”). For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.
RECITALS
WHEREAS, CITY requires a qualified information technology service provider; and WHEREAS, CITY staff has determined that CONSULTANT possesses the experience, skills and training necessary to competently provide such services to CITY; and
WHEREAS, the execution of this Agreement was approved by the Cudahy City Council at its Regular Meeting of ____________, 2026, under Agenda Item No. ______.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:
I.
ENGAGEMENT TERMS
1.1 TERM: This Agreement shall have a term commencing from the Effective Date through June 30, 2027 (hereinafter, the “Term”) and may be extended by the City administratively a maximum of two (2) one-year extension terms. Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below.
1.2 SCOPE OF SERVICES:
A. Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the services and tasks described in that certain proposal of CONSULTANT entitled “Scope of Work” (hereinafter, the “CONSULTANT Proposal”) which is attached and incorporated hereto as Exhibit “A”. CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks, and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of Attachment B Page 42 of 506
2 this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term “Services.”
1.3 PROSECUTION OF SERVICES:
A. CONSULTANT shall perform the Services contemplated under this Agreement on an on-call, as-needed basis. Nothing in this Agreement shall be construed to grant CONSULTANT the exclusive right to perform any of the types of services or tasks contemplated under this Agreement nor shall anything in this Agreement be construed to entitle CONSULTANT to the receipt of any sums under this Agreement, except to the extent CITY requests the performance of any Services in the manner described below and such Services is in fact performed and completed by CONSULTANT and accepted by CITY. CITY requests for the performance of specific services or tasks contemplated under this Agreement shall be made in the form of a written work order(s) issued by the City Representative (each such written request hereinafter referred to as a “Work Order”). Each Work Order shall include the following information:
1. A detailed description of the specific services or tasks requested;
2. The location of where the particular services or tasks are to be performed, if applicable;
3. A not-to-exceed budget for performing the services or tasks;
4. A timeline for completing the requested services or tasks;
5. Any other information CITY deems necessary and relevant to the requested services or tasks; and
6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.
B. CONSULTANT shall not perform any of the Services contemplated under this Agreement without a written Work Order request from the City Representative, containing the information set forth in Section 1.3(A), above;
C. CONSULTANT shall perform all assigned Services continuously and with due diligence so as to complete all assigned Services by the completion date indicated in each Work Order. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors, or agents;
D. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner; E. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees; and
3 F. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.
1.4 COMPENSATION: CONSULTANT shall perform the Services in accordance with the “Scope of Work” which is attached and incorporated hereto as Exhibit “A” (hereinafter, the “COMPENSATION RATE”). The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Services contemplated under this Agreement, may not exceed the aggregate sum of THIRTY-EIGHT THOUSAND FOUR HUNDRED DOLLARS ($38,400.00) PER FISCAL YEAR (hereinafter, the “Not-to-Exceed Sum”) during the Term of this Agreement, unless such added expenditure is first approved by the City Council.
In the event CONSULTANT’s charges are projected to exceed the Aggregate Notto-Exceed Sum prior to the expiration of this Agreement, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Aggregate Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.
1.5 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT will submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and any reimbursable out-ofpocket expenses incurred. If the amount of CONSULTANT’s monthly compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the person(s) responsible for performing the Services, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed.
Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.
1.6 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
1.7 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Services agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT will deliver to CITY immediately and without delay, all materials, records, and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the
4 reasonable value of the Services performed up to the time of cessation or abandonment, less a deduction for any damages, costs, or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.
II.
PERFORMANCE OF AGREEMENT
2.1 CITY’S REPRESENTATIVE: The CITY hereby designates Christopher R. Lopez (hereinafter, the “City Representative”) to act as its representative for the performance of this Agreement. The City Representative or the City Representative’s designee will act on behalf of the CITY for all purposes under this Agreement. CONSULTANT will not accept directions or orders from any person other than the City Representative or the City Representative’s designee.
2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Kevin Lee to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representative”). Consultant Representative will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. Consultant Representative or the Consultant Representative’s designee will supervise and direct the performance of the Services, using his/her best skill and attention, and will be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all Services under this Agreement. Notice to the Consultant Representative will constitute notice to CONSULTANT.
2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS:
CONSULTANT agrees to work closely with CITY staff in the performance of the Services and this Agreement and will be available to CITY staff and the CITY Representative at all reasonable times. All work prepared by CONSULTANT will be subject to inspection and approval by City Representative or his or her designees.
2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges, and agrees to the following:
A. CONSULTANT will perform all Services skillfully, consistent with and adhering to its professional standard of care, that is, the degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality; B. CONSULTANT shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative.
C. CONSULTANT will perform all Services in a manner reasonably satisfactory
5 to the CITY;
D. CONSULTANT will comply with all applicable federal, state, and local laws and regulations, including the conflict of interest provisions of Government Code §1090 and the Political Reform Act (Government Code §§81000 et seq.) CONSULTANT shall be liable for all violations of such laws and regulations in connection with CONSULTANT’s performance of the Services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom;
E. CONSULTANT understands the nature and scope of the Services to be performed under this Agreement as well as any and all schedules of performance;
F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training, and experience to perform those services and tasks assigned to them by CONSULTANT; and
G. All of CONSULTANT’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications, and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications, and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.
The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and, notwithstanding Section 5.2(B), will be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in her sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand, and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge, and experience necessary to perform the Services under the standard of care as articulated under section 2.4(A).
2.5 ASSIGNMENT: The skills, training, knowledge, and experience of CONSULTANT are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will
6 perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement, or the performance of any of CONSULTANT’s duties or obligations under this Agreement, without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.
2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT
CONTRACTOR: The Services will be performed by CONSULTANT or under CONSULTANT’s strict supervision. CONSULTANT will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s competent and timely performance of the Services contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Services under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT will pay all wages, salaries and other amounts due such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like. Notwithstanding any other CITY, state, or federal policy, rule, regulation, law, or ordinance to the contrary, CONSULTANT and any of its employees, agents, and subcontractors performing the Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by CITY, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contributions and/or employee contributions for PERS benefits.
2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Services in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Services.
2.8 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in
7 compliance with all applicable federal, state, or local laws to the extent such laws control or otherwise govern the performance of the Services. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the U.S.
Department of Housing and Urbanization.
2.9 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.
2.10 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand, and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments, or subdivisions of CITY.
CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants.
CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt, or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.
III.
INSURANCE
3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Before performing any Services contemplated under this Agreement, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT will procure and maintain the following insurance coverage, at its own expense:
A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage will have minimum limits of no less than Two Million Dollars ($1,000,000.00) per occurrence and Four Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.
B. Automobile Liability Insurance: For any owned, non-owned, or hired vehicles used in connection with the performance of this Agreement, CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering
8 Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance will have minimum limits of no less than Two Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.
C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Services contemplated in this Agreement.
D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per claim.
E. Cyber Security: Cyber Security coverage to include technology/professional liability insurance, intellectual property infringement, and data protection liability insurance. CONSULTANT shall procure and maintain coverage for cyber liabilities and financial loss resulting or arising from acts, errors, or omissions, in connection with data maintenance, hosting, software development and other information technology services provided under this agreement. Coverage shall include protection for liability arising from:
intellectual property infringement arising out of software and/or content (excluding patent infringement and misappropriation of trade secrets); breaches of security; violation or infringement of any right, privacy, breach of federal, state, or foreign security and/or privacy laws or regulations including; data theft, damage, destruction, or corruption, including without limitation, unauthorized access, unauthorized use, identity theft, theft of personally identifiable information or confidential corporate information, transmission of a computer virus or other type of malicious code; and participation in a denial of service attack on a third party. The minimum limits shall be three million dollars ($1,000,000) for each and every claim and in the aggregate.
3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers as additional insureds.
3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured
9 by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.
3.4 PRIMACY OF CONSULTANT’S INSURANCE: All policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers will be in excess of CONSULTANT’s insurance and will not contribute with it.
3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents, and volunteers.
3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands, and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is a material consideration of this Agreement.
Accordingly, CONSULTANT warrants, represents, and agrees that it will furnish CITY with certificates of insurance and endorsements evidencing the coverage required under this Article on ACORD-25 or forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf and will be on forms provided by the CITY if requested. Before performing any Services, CONSULTANT shall provide CITY with all certificates of insurance and endorsements referenced herein. Upon CITY’s written request, CONSULTANT will also provide CITY with copies of all required insurance policies and endorsements.
3.7 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.
3.8 SPECIAL RISKS OR CIRCUMSTANCES: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Any amendment to the insurance requirements of this Article shall be memorialized and approved in the form of a written amendment to this Agreement, signed by the Parties. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void or invalid.
10 IV.
INDEMNIFICATION
4.1 CITY’s elected and appointed officials, officers, employees, agents, and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law.
CONSULTANT acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT’s commitment to indemnify, defend and protect CITY as set forth herein Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents, or volunteers.
4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.
4.3 CITY shall have the right to offset against the amount of any compensation due to CONSULTANT under this Agreement, any amount due to CITY from CONSULTANT as a result of CONSULTANT’s failure to either pay CITY promptly for any costs associated with CONSULTANT’s obligations to indemnify the CITY Indemnitees under this Article or related to CONSULTANT’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.
4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers’ compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.
4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees
11 to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT’s subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.
4.6 CITY does not and shall not waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.
4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
V.
TERMINATION
5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination.
CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Services.
CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.
5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:
A. In the event either Party fails to perform any duty, obligation, service, or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service, or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to
12 the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2B and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.
B. CONSULTANT will cure the following Events of Defaults within the following time periods:
i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation, or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement.
Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.i. that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.
In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT will include, but will not be limited to the following: (i) CONSULTANT’s refusal or failure to perform any of the services or tasks called for under the Scope of Services; (ii) CONSULTANT’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv)
13 the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; and/or (v) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.
C. CITY will cure any Event of Default asserted by CONSULTANT within fortyfive (45) calendar days of CONSULTANT’s issuance of a Default Notice unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of CONSULTANT’s Default Notice to CITY.
D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT’s performance under this Agreement pending
CONSULTANT’s cure of any Event of Default by giving CONSULTANT written notice of CITY’s intent to suspend CONSULTANT’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT will be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.
E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach.
No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.
F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of
14 performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT’s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.
CONSULTANT will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.
G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.
5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty, or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.
5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.
VI.
MISCELLANEOUS PROVISIONS
6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. CONSULTANT will require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or
15 subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.
6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and will not be disclosed by CONSULTANT without prior written consent by CITY. CITY will grant such consent of disclosure as legally required. Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Services in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.
6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., §§3789 et seq. and the California False Claims Act, Government Code §§12650 et seq.
6.4 NOTICES: All notices permitted or required under this Agreement will be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:
CITY: CONSULTANT:
City of Cudahy
Attn: Christopher R. Lopez,
City Manager
Cudahy City Hall
5220 Santa Ana St.,
Cudahy, CA 90201
Phone: (323) 773-5143
InfoTech SystemHouse, Inc.
301 N Lake Ave, Suite 600
Pasadena, CA 91101
Attn: Kevin Lee, Co-Owner
Phone: (626) 626-7171
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.
6.5 COOPERATION; FURTHER ACTS: The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate, or convenient to achieve the purposes of this Agreement.
6.6 SUBCONTRACTING: CONSULTANT will not subcontract any of the Services contemplated under this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.
16 6.7 CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other independent contractors in connection with the various projects worked upon by CONSULTANT.
6.8 CONFLICTS OF INTEREST:
A. CONSULTANT warrants, represents, and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid, nor has it agreed to pay, any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
B. CONSULTANT may serve other clients, but none whose activities within the corporate limits of CITY or whose business, regardless of location, would place CONSULTANT in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code §81000 et seq.
C. CONSULTANT shall not employ any official or employee of the CITY during the Term of this Agreement or any extension term. No officer or employee of CITY shall have any financial interest in this Agreement that would violate Government Code §§1090 et seq. CONSULTANT warrants and represents that no owner, principal, partner, officer, or employee of CONSULTANT is or has been an official, officer, employee, agent, or appointee of the CITY within the twelve-month period of time immediately preceding the Effective Date. If an owner, principal, partner, officer, employee, agent, or appointee of CONSULTANT was an official, officer, employee, agent, or appointee of the CITY within the twelve-month period immediately preceding the Effective Date, CONSULTANT warrants that any such individuals did not participate in any manner in the forming of this Agreement. CONTRACTOR understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and CONSULTANT will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and CONSULTANT will be required to reimburse the CITY for any sums paid to CONSULTANT. CONSULTANT understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code §1090.
6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.
6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and
17 governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.
6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.
6.12 SUCCESSORS AND ASSIGNS: This Agreement will be binding on the successors and assigns of the Parties.
6.13 NO THIRD-PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
6.14 CONSTRUCTION OF AGREEMENT: This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.
6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.
6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.
6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.
6.19 ENTIRE AGREEMENT: This Agreement, including all attached exhibits, constitutes the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have been entered into between CITY and CONSULTANT prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made
18 by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties pursuant to Section
6.16, above.
6.20 FORCE MAJEURE: The completion deadline for any Services assigned to CONSULTANT may be extended in the event of any delays due to unforeseeable causes beyond the control of CONSULTANT and without the fault or negligence of CONSULTANT, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY.
CONSULTANT shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The CITY Representative shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the CITY Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONSULTANT be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, CONSULTANT’s sole remedy being extension of the Agreement pursuant to this Section.
6.21 COUNTERPARTS: This Agreement will be executed in three (3) original counterparts each of which will be of equal force and effect. No handwritten or typewritten amendment, modification, or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section
6.16, above. One fully executed original counterpart will be delivered to CONSULTANT and the remaining two original counterparts will be retained by CITY.
(SIGNATURES ON NEXT PAGE)
19 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.
CITY OF CUDAHY:
By:
Christopher R. Lopez
City Manager
Date:_______________________
INFO TECH SYSTEMHOUSE, INC:
By:
Name:
Title:
Date:_______________________
APPROVED AS TO FORM:
By:
Shelley Preisler
City Attorney
Date:_______________________
20 EXHIBIT “A”
SCOPE OF WORK
Scope of Work
1. Installation and Management of Network Infrastructure:
· Install and manage the LAN and WAN network infrastructure, including servers, switches, hubs, routers, modems, firewalls, e-mail systems, Wi-Fi, and data circuits. · Perform network design, performance monitoring, analysis, tuning, troubleshooting, equipment configuration, testing, installation, de-installation, moves, and changes.
2. Up-to-date Network Information:
· Provide the City of Cudahy with current information on networks and servers. · Share network configurations, logins, passwords, and any changes with a designated representative.
3. Remote System Monitoring:
· Utilize a Network Management and Monitoring System to remotely monitor the City's IT systems.
· Proactively identify and address issues or potential problems.
4. Computer and Printer Hardware Diagnostics Support:
· Provide support for diagnosing hardware issues with computers and printers. · Assist in identifying problems and recommending appropriate solutions for hardware repairs.
5. Application Software Support:
· Offer support for application software used by the City of Cudahy. · Assist with installation, upgrades, troubleshooting, and issue resolution.
6. System and Application Software Installation/Upgrade:
· Assist with the installation and upgrade of systems and application software on workstations and servers.
· Handle automated patch management for networked and standalone devices.
7. Day-to-Day IT Operations:
· Handle day-to-day IT operations, including computer support, backups, and report distribution.
· Ensure ongoing trouble-free IT operations and address operational issues.
8. Evaluation and Recommendation of Hardware and Software:
· Provide evaluations and recommendations for hardware and software purchases. · Work with the City of Cudahy's representative to recommend a budget for equipment, supplies, and other IT products or services.
9. Hardware/Software Inventory Management:
· Maintain and verify the hardware/software inventory of the City's computer systems. · Use a help desk system to track and manage inventory. · Oversee the transfer of outdated computer equipment to surplus.
10. Technology Solution and Vendor Selection:
· Advise the City of Cudahy in selecting appropriate technology solutions and vendors. · Recommend technology solutions based on current market technologies and industry standards.
11. Coordination with Third-Party Vendors:
· Coordinate with third-party vendors on issues related to information systems/technology.
· Act as a liaison between the City of Cudahy and external vendors.
12. Information Systems Guidelines, Policies, and Procedures:
· Work with the City of Cudahy management to review information systems guidelines, policies, and procedures.
· Provide expertise and recommendations to align IT practices with industry standards and best practices.
13. Helpdesk Management System:
· Develop, implement, manage, and assist with a Helpdesk Management System. · Address customer service needs of City of Cudahy staff efficiently.
14. Network Security and Integrity:
· Maintain network security and integrity for the City of Cudahy. · Manage group policy setup/configurations, user profiles, and staff internet activity monitoring.
· Implement security measures, investigate virus activity and outbreaks, and manage anti-virus systems.
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director Subject: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Willdan Engineering for an Amount not to Exceed $19,400 for Municipal Separate Storm Sewer System (MS4) Compliance in a Form Approved by the City Attorney’s Office
RECOMMENDATION
The City Council is recommended to adopt Resolution No. 26-32 authorizing the City Manager to execute an agreement with Willdan Engineering for an amount not to exceed $19,400 for municipal separate storm sewer system (MS4) compliance in a form approved by the City Attorney’s Office.
BACKGROUND
As background, the MS4 Permit regulates how a local agency manages stormwater runoff to reduce pollution entering rivers, lakes, and oceans. The storm drain system includes streets, gutters, catch basins, ditches, pipes, and storm drains that carry rainwater downstream. This permit, which is issued under the National Pollutant Discharge Elimination System (NPDES) is authorized under the United States Environmental Protection Agency under the Clean Water Act and is oftentimes administered by a state environmental agency. In California’s instance, the California State Water Resources Control Board oversees the statewide program, and the state is divided into several Regional Water Quality Control Boards. Each Regional Board then issues and enforces MS4 permits. Cudahy falls under the jurisdiction of the Los Angeles Regional Water Quality Control Board.
On June 23, 2026, the City Manager’s Office was notified that the Water Board had notified the City that it was required to comply with a provision within the City’s MS4 Permit that specified the City was to install full capture trash systems by September 30, 2016 to achieve 100% capture. In the City’s December 2025 report, the City reported that the City’s current capture Item Number
12E
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rate of 89% was below the required 100% capture.
In a meeting with the Water Board on July 6, 2026, Willdan Engineering (“Willdan”), Public Works Staff, and the City Manager’s Office, the Water Board requested that the City provide a formal response to the lack of 100% capture, and the non-compliance issue with the City’s MS4 Permit.
Prior to a formal response, the City reviewed its options, and identified the following items to achieve compliance:
1. Develop and submit a Trash Daily Generation Rate (DGR) Study that would identify the current capture rate for the City
2. In the event capture falls below the threshold, identify potential long term and short term solutions that might get the City into compliance
3. Identify costs for long term solutions, and identify a longer term plan for compliance
The proposed path identified above will be performed by Willdan and is expected to cost $19,400. While the City previously had an agreement with Willdan for NPDES compliance services, it is understood that the larger scope and agreement requires additional work.
With the State Control Board identifying non-compliance issues from a regulatory perspective, this item has been elevated and requires quicker action to address these issues.
The letter provided to the Water Board has been attached for reference.
ANALYSIS
The proposed agreement with Willdan is not a long-term solution to the current MS4 permit issues but is an attempt at achieving compliance. A long-term solution is not yet identified.
FINANCIAL IMPACT
The cost of this work is identified at an amount not to exceed $19,400.
The City recommends an appropriation of $19,400 from Measure W funds to complete this work.
ATTACHMENTS
A. Draft Resolution No. 26-32
B. State Water Board Letter
RESOLUTION NO. 26-32
A RESOLUTION OF THE CITY OF CUDAHY CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH WILLDAN ENGINEERING FOR AN
AMOUNT NOT TO EXCEED $19,400 FOR MUNICIPAL
SEPARATE STORM SEWER SYSTEM (MS4) COMPLIANCE
IN A FORM APPROVED BY THE CITY ATTORNEY’S OFFICE
WHEREAS, the City of Cudahy initially submitted a plan to the State Water Board that it would achieve 100% capture by 2016;
WHEREAS, CITY staff has been advised by the Water Board that it is non-compliant based on reports provided by the City; and;
WHEREAS, CITY staff has determined that CONSULTANT is qualified for the services required and provide such services to CITY; and;
WHEREAS, CITY requires service to reduce the likelihood of future action by the Water Board.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:
SECTION 1. The City Council hereby authorizes the City Manager to execute a professional services agreement with Willdan Engineering in a Form Approved by the City Attorney’s Office.
SECTION 2. The cost shall not exceed $19,400.
SECTION 3. The Finance Director is authorized to make a supplemental appropriation from Measure W funds to the Public Works Department budget to cover this expense and amend the FY 26/27 Budget as needed.
SECTION 4. The Finance Director is authorized to make any and all actions to implement this action.
SECTION 5. 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.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 21st day of July 2026.
Cynthia Gonzalez
Mayor
Attachment A Page 67 of 506
Resolution No. 26-32
ATTEST:
Richard Iglesias
City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 26-32 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 21st day of July 2026 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Richard Iglesias
City Clerk
Page | 1
5220 Santa Ana Street
Cudahy, CA 90201
Phone: (323) 773-5143
www.cityofcudahyca.gov
Mayor
Cynthia Gonzalez, Ed.D
Vice Mayor
Daisy Lomelí
Councilmember
Elizabeth Alcantar Loza
Councilmember
Martin U. Fuentes
Councilmember
Amanda Gomez
City Manager
Christopher R. Lopez
Incorporated November 10, 1960
July 13, 2026
Ms. Pavlova Vitale
Regional Water Quality Control Boards
320 West 4th Street, Suite 200
Los Angeles, CA 90013
Subject: Response to Notice of Non-Compliance and Proposed Corrective Actions Dear Ms. Vitale,
Thank you for meeting with us on July 6, 2026, to discuss the City's compliance status. We appreciate the opportunity to review the outstanding requirements and acknowledge that the City has not met certain compliance deadlines. We are committed to addressing these items and returning to full compliance as soon as possible.
The previous deadline was missed due to staff turnover and consultant procurement delays.
While these challenges affected our ability to meet the original schedule, the City is taking steps to prevent further delays and has developed a realistic schedule for completing the remaining work.
To achieve compliance, the City will complete the following actions:
1. Develop and submit the Trash Daily Generation Rate (DGR) Study Plan per Section IV.B.3.b.ii of the 2021 Los Angeles Regional Municipal Separate Storm Sewer Permit (MS4) Permit and submit to the Regional Water quality Control Board - Los Angeles (Regional Board) by August 3, 2026.
2. Conduct the study during a 30-day period, concluding by September 22, 2026.
3. Submit results of the 2026 study using the Attachment I_c: Trash Reporting Forms to the Regional Board by October 9, 2026.
Attachment B Page 69 of 506
Page | 2
The City is committed to maintaining open communication with Water Board staff throughout this process and will provide progress updates as requested. We appreciate your continued cooperation and look forward to working together to bring the City back into compliance.
Sincerely,
Christopher R. Lopez
City Manager
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor Dr. Cynthia Gonzalez and City Council Members From: Christopher Lopez, City Manager
By: Samuel M. 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 with other elections to be held on November 3, 2026, and directing the Registrar of Voters Item Number
14A
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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.
While the City’s revenue growth is trending positively, it has not kept pace with expenditures.
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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 were presented by the Deputy City Attorney at the July 7, 2026 regular City Council meeting. The City Council requested additional revisions, including the following:
• Remove the phrase “building ‘rainy day’ reserves”;
• Remove the words “maintain” and “stabilize”;
• Add further clarity that this is an “existing” and not a “new” tax; • Add further clarity that this tax will not “increase” the current tax rate; and • Add a phrase similar to the theme of “to continue or preserve the City’s existing local funding source” or “to preserve and continue the City’s funding stream.” Staff incorporated the above revisions into the draft ballot measure language.
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
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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.
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
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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 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
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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 August 4, 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 the measure on the ballot for November 3, 2026, general election, is approximately $48,318.78. This estimate is based on the Los Angeles County RegistrarRecorder/County Clerk election estimating calculator.
ATTACHMENTS
A. Draft Resolution No. 26-30
B. Draft Ordinance No. 770
Keep Cudahy Sales Tax Revenues Local Measure
To preserve and continue the City’s existing local funding stream, which may be used to support general City services, including, but not limited to, street, sidewalk and City building repair; park maintenance and enhancements; and youth and recreational programs, shall the City’s existing 3/4% transactions (sales) and use tax be extended indefinitely, unless repealed by voters, providing approximately $1.3 million annually for local use?
YES
NO
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 [DATE], 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 Attachment A Page 77 of 506
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 Section 9222, 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 County-administered 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 up to [#] resolutions adopted by the City Council and submitted to the Board of Supervisors and County Registrar 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 second resolution, Resolution No.
XX-XX, (1) Called for and gave notice of the submission to the voters of the City of Cudahy of a ballot measure question to ____________________________________________; acknowledged City Council approval of an ordinance effectuating the foregoing amendments; (iii) Ordered that the ballot measure be submitted as part of the City’s November 3, 2026 general municipal election; (iv) Requested that the Los Angeles County Board of Supervisors include the ballot measure as part of the City’s prior election consolidation request; (v) Requested that the Registrar-Recorder/County Clerk provide specific election administration services, inclusive of the ballot measure; and (vi) Set priorities for filing written arguments and rebuttals regarding the ballot measure and directed preparation of an impartial analysis.] 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 preserve and continue the City’s existing
local funding stream, which may be used to
support general City services, including, but
Yes
not limited to, street, sidewalk and City
building repair; park maintenance and
enhancements; and youth and recreational
programs, shall the City’s existing 3/4%
transactions (sales) and use tax be extended
indefinitely, unless repealed by voters,
providing approximately $1.3 million annually
for local use?
______________________________
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 XX day of XX 2026.
______________________________
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 XX day of XX 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 85 of 506
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 preserve and continue the City’s existing local funding stream, which may be used to support general City services, including, but not limited to, street, sidewalk and City building repair; park maintenance and enhancements; and youth and recreational programs, shall the City’s existing 3/4%
transactions (sales) and use tax be extended indefinitely, unless repealed by voters, providing 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, ______________, 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
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STAFF REPORT
Date: July 21, 2026
To: Honorable Mayor Dr. Cynthia Gonzalez and City Council Members From: Christopher Lopez, City Manager
Shelley Preisler, City Attorney
Samuel Holmberg, Deputy City Attorney
Subject: Consideration and Approval of a Resolution (1) Calling and Giving Notice of the Submission to Cudahy Voters of One of Several Ballot Measure Options Concerning Cudahy’s Existing Rent Stabilization Program; (2) Acknowledging City Council Approval of an Ordinance Effectuating the Foregoing Amendments; (3) Ordering that the Ballot Measure Be Submitted as Part of the City’s November 3, 2026 General Municipal Election; (4) Requesting that The Los Angeles County Board Of Supervisors Include the Ballot Measure as Part of the City’s Prior Election Consolidation Request; (5) Requesting that the RegistrarRecorder/County Clerk Provide Specific Election Administration Services, Inclusive of the Ballot Measure; and (6) Setting Priorities for Filing Written Arguments and Rebuttals Regarding the Ballot Measure and Directing Preparation of an Impartial Analysis
Introduction for First Reading of Ordinance Effectuating the Mandates of the Selected Ballot Measure Subject to Later Second Reading and Voter Approval at the City’s November 3, 2026, General Municipal Election
RECOMMENDATION
The Cudahy City Council (“City Council”) is requested to:
1. Consider alternative ballot measure options concerning the City’s rent stabilization program for placement on the November 3, 2026 General Election;
2. Find that the selected Resolution is not a project under the California Environmental Quality Act (“CEQA”) (Public Resources Code § 21000 et seq.) pursuant to the CEQA Guidelines (California Code of Regulations Title 14 §§ 15060(c)(2)-(3)), but if deemed to be a project, is categorically exempt under CEQA Guidelines § 15061(b)(3) (common sense exemption); Item Number
14B
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3. Introduce and waive full reading of an ordinance to submit the selected alternative rent stabilization measure to the voters for the November 3, 2026 General Election; and
4. Adopt a resolution to submit the selected alternative rent stabilization measure to the voters for the November 3, 2026 General Election.
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.
At the July 7, 2026 City Council meeting, Council discussed placing Cudahy’s existing Rent Stabilization Ordinance (Ordinance No. 736) before the voters at the November 2026 general election. Council directed Staff to prepare several ballot measure options for its consideration and return with materials for consideration and potential adoption at the July 21, 2026 City Council meeting.
DISCUSSION AND ANALYSIS
Under Elections Code Sections 9217 and 9222, a city council may place a City-sponsored ballot 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 a measure on the November 3, 2026 general election ballot, the City Council must pass a resolution or ordinance that submits the measure 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 measure becomes law and takes effect ten days later. Unless the Ordinance itself provides otherwise, a law enacted by ballot measure can only be amended or repealed by the voters.
At the July 7, 2026 City Council meeting, Council discussed implementation of Ordinance No. 736, challenges faced since adoption, and potential pathways to protect certain provisions of Ordinance No. 736 by submitting it to the voters for approval, while retaining Council authority to make certain amendments to resolve issues experienced with implementation thus far, and potentially retaining flexibility to address new challenges in the future. In consideration of
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protecting the City’s rent stabilization law from repeal or amendment by future councils while leveraging the ability pursuant to Election Code Section 9217 for Council to reserve the ability to make certain amendments in a voter approved law, Council discussed several potential options, with more in depth discussion and sample language for each option provided below:
• Option 1: Submission of the City’s existing rent stabilization ordinance as-is to the voters, so that it can only be substantively amended or repealed by the voters • Option 2: Submission of the City’s existing rent stabilization ordinance to the voters reserving Council authority to amend all provisions thereof except for CMC Section
5.13.050 (Permitted rent increases for covered rental units), which can only be substantively amended or repealed by the voters
• Option 3: Submission of the City’s existing rent stabilization ordinance to the voters reserving City Council authority to amend all provisions thereof except for any increase to the maximum permitted rent increases for covered rental units set forth in Section
5.13.050 (Permitted rent increases for covered rental units), which can only be amended to increase such maximum or repealed by the voters o This option would allow a future Council to legislatively decrease the maximum annual permitted rent increase below the current level under Section 5.13.050 (the lesser of 3% or Consumer Price Index (“CPI”)), but would require voter approval for any increase (or other amendment to the ordinance which has the effect of increasing such maximum annual permitted rent increase). • Option 4: Submission of the City’s existing rent stabilization ordinance to the voters reserving City Council authority to amend all provisions thereof by supermajority (2/3) vote
• Option 5: Submission of the City’s existing rent stabilization ordinance to the voters reserving City Council authority to amend by supermajority (2/3) vote all provisions thereof except for Section 5.13.050 (Permitted rent increases for covered rental units), which can only be substantively amended or repealed by the voters. • Option 6: Take no action
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
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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.
PROPOSED BALLOT MEASURE LANGUAGE: OPTION 1
Voter Approval Required for All Amendments or Repeal. This option would place the City’s existing Rent Stabilization Ordinance before the voters in its entirety, such that any future substantive amendment or repeal of the Ordinance would require voter approval. Accordingly, the City Council would not retain authority to substantively amend or repeal any provision of the Rent Stabilization Ordinance without first obtaining approval from the voters. If the City Council approves this option, the proposed ballot measure language could be:
The resolution and ordinance corresponding to Option 1 are attached as Attachments B and C, respectively.
PROPOSED BALLOT MEASURE LANGUAGE: OPTION 2
Council Authority to Amend Retained Except for Section 5.13.050. This option would authorize the City Council to amend any provision of its existing Rent Stabilization Ordinance except Cudahy Municipal Code Section 5.13.050 (“Permitted Rent Increases for Covered Rental Units”). Accordingly, Section 5.13.050 could be substantively amended or repealed only with voter approval. If the City Council approves this option, the proposed ballot measure language could be:
Measure to Protect Cudahy’s Rent Stabilization Ordinance To protect tenants from excessive rent increases, promote long-term stable rental prices, require registration of rental units, provide 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?
YES
NO
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The resolution and ordinance corresponding to Option 2 are attached as Attachments D and E, respectively.
PROPOSED BALLOT MEASURE LANGUAGE: OPTION 3
Council Authority to Amend Retained Except for Increases to the Maximum Permitted Rent Increase. This option would authorize the City Council to amend the Rent Stabilization Ordinance, including Section 5.13.050, except that voter approval would be required to increase the maximum permitted rent increase established by that section or to repeal the voter approved protection. The City Council would therefore retain authority to make amendments that decrease the maximum permitted rent increase or otherwise do not increase the maximum permitted rent increase (including amendments to other provisions of the Ordinance), but only the voters could authorize an increase to that maximum or repeal the applicable restriction. If the City Council approves this option, the proposed ballot measure language could be:
The resolution and ordinance corresponding to Option 3 are attached as Attachments F and G, respectively.
Measure to Protect Cudahy’s Rent Stabilization Ordinance To protect tenants from excessive rent increases, promote long-term stable rents, require registration of rental units, provide landlords fair opportunity to earn reasonable returns, establish landlord-tenant dispute resolution procedures, provide enforcement mechanisms, and allow the City Council to amend or repeal any provisions, except for the maximum annual increase in rent, which only the voters may amend or repeal, shall the voters approve Cudahy’s Rent Stabilization Ordinance?
YES
NO
Measure to Protect the Cudahy’s Rent Stabilization Ordinance To protect tenants from excessive rent increases, promote long-term stable rents, require registration of rental units, provide landlords fair opportunity to earn reasonable returns, establish landlord-tenant dispute resolution procedures, provide enforcement mechanisms, and allow City Council to amend or repeal any ordinance provisions except for any increase of the maximum annual increase in rent, which only the voters may amend, shall the voters approve Cudahy’s Rent Stabilization Ordinance?
YES
NO
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PROPOSED BALLOT MEASURE LANGUAGE: OPTION 4
Supermajority Council Approval Required for Amendments. This option would retain the City Council’s authority to amend all provisions of the Rent Stabilization Ordinance without voter approval, but any such amendment would require approval by a two-thirds vote of the City Council. If the City Council approves this option, the proposed ballot measure language could be:
The resolution and ordinance corresponding to Option 4 are attached as Attachments H and I, respectively.
PROPOSED BALLOT MEASURE LANGUAGE: OPTION 5
Supermajority Council Approval Required for Amendments Except for Section 5.13.050. This option would authorize the City Council, by a two-thirds vote, to amend any provision of the Rent Stabilization Ordinance except Section 5.13.050. Accordingly, Section 5.13.050 could be substantively amended or repealed only with voter approval, while all other provisions of the Ordinance could be amended by a two-thirds vote of the City Council. If the City Council approves this option, the proposed ballot measure language could be:
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 landlords a fair opportunity to earn a reasonable return, establish procedures for resolving landlord-tenant disputes, provide enforcement mechanisms, and prohibit amendment or repeal of the ordinance except by a supermajority of Council, shall the voters approve Cudahy’s Rent Stabilization Ordinance?
YES
NO
Measure to Protect Cudahy’s Rent Stabilization Ordinance To protect tenants from excessive rent increases, promote long-term stable rents, require registration of rental units, provide landlords fair opportunity to earn reasonable returns, establish landlord-tenant dispute resolution procedures, provide enforcement mechanisms, and require a supermajority of City Council to amend or repeal any ordinance provisions except for the maximum annual increase in rent, which only the voters may amend, shall the voters approve Cudahy’s Rent Stabilization Ordinance?
YES
NO
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The resolution and ordinance corresponding to Option 5 are attached as Attachments J and K, respectively.
OPTION 6: TAKE NO ACTION
If Council takes no action, Ordinance No. 736 remains City law, but could be amended or repealed by a future Council.
CONCLUSION
Due to the August 7, 2026 deadline to approve materials placing the measure on the ballot and submit them to the County, staff recommends that City Council select amongst the options provided herein, and if opting to place a rent stabilization measure on the November 3, 2026 general election ballot, approves the corresponding ordinance and materials. If City Council selects and approves an option for a rent stabilization ballot measure, staff will coordinate with the Registrar to place the Rent Stabilization measure on the November 3, 2026 general election ballot.
FINANCIAL IMPACT
The cost of placing a ballot measure on the ballot for November 3, 2026, is approximately $56,973.29. This estimate is based on the Los Angeles County Registrar-Recorder/County Clerk election estimating calculator.
ATTACHMENTS
A. Ordinance No. 736
B. Draft Resolution (Option 1) (A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY OF A BALLOT MEASURE TO PROTECT CUDAHY’S EXISTING RENT STABILIZATION PROGRAM FROM REPEAL OR SUBSTANTIVE AMENDMENT WITHOUT VOTER APPROVAL; (2) ACKNOWLEDING CITY COUNCIL APPROVAL OF AN ORDINANCE EFFECTUATING THE FOREGOING AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; (4) REQUESTING THAT THE LOS ANGELES COUNTY BOARD OF SUPERVISORS INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR ELECTION CONSOLIDATION REQUEST; (5) REQUESTING
THAT THE REGISTRAR-RECORDER/COUNTY CLERK PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES, INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING PRIORITIES FOR FILIING WRITTEN
ARGUMENTS AND REBUTTALS REGARDING THE BALLOT MEASURE AND DIRECTING PREPARATION OF
AN IMPARTIAL ANALYSIS)
C. Draft Ordinance (Option 1) (AN ORDINANCE OF THE PEOPLE OF THE CITY OF CUDAHY, CALIFORNIA
REQUIRING FUTURE VOTER APPROVAL TO REPEAL OR MAKE SUBSTANTIVE AMENDMENTS TO THE CITY’S EXISTING RENT STABILIZATION ORDINANCE AS CODIFIED UNDER CHAPTER 5.13 (RENT STABILIZATION) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE CUDAHY MUNICIPAL CODE
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(“CMC”))
D. Draft Resolution (Option 2) (A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY OF A BALLOT MEASURE TO PROTECT PROVISIONS OF CUDAHY’S EXISTING RENT STABILIZATION PROGRAM FROM REPEAL OR SUBSTANTIVE AMENDMENT WITHOUT VOTER APPROVAL; (2) ACKNOWLEDING CITY COUNCIL APPROVAL OF AN ORDINANCE EFFECTUATING THE FOREGOING AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; (4) REQUESTING THAT THE LOS ANGELES COUNTY BOARD OF SUPERVISORS INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR ELECTION CONSOLIDATION REQUEST; (5) REQUESTING THAT THE REGISTRAR-RECORDER/COUNTY CLERK PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES, INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING
PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING THE BALLOT MEASURE
AND DIRECTING PREPARATION OF AN IMPARTIAL ANALYSIS)
E. Draft Ordinance (Option 2) (AN ORDINANCE OF THE PEOPLE OF THE CITY OF CUDAHY, CALIFORNIA
REQUIRING FUTURE VOTER APPROVAL TO REPEAL OR MAKE SUBSTANTIVE AMENDMENTS TO CERTAIN PROVISIONS OF THE CITY’S EXISTING RENT STABILIZATION ORDINANCE AS CODIFIED UNDER CHAPTER
5.13 (RENT STABILIZATION) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE CUDAHY MUNICIPAL CODE (“CMC”))
F. Draft Resolution (Option 3) (A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY OF A BALLOT MEASURE TO PROTECT CERTAIN PROVISIONS OF CUDAHY’S EXISTING RENT STABILIZATION PROGRAM FROM REPEAL OR CERTAIN SUBSTANTIVE AMENDMENTS WITHOUT VOTER APPROVAL; (2)
ACKNOWLEDING CITY COUNCIL APPROVAL OF AN ORDINANCE EFFECTUATING THE FOREGOING AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; (4) REQUESTING THAT THE LOS ANGELES COUNTY BOARD OF SUPERVISORS INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR ELECTION CONSOLIDATION REQUEST; (5) REQUESTING THAT THE REGISTRAR-RECORDER/COUNTY CLERK PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES, INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING THE BALLOT
MEASURE AND DIRECTING PREPARATION OF AN IMPARTIAL ANALYSIS) G. Draft Ordinance (Option 3) (AN ORDINANCE OF THE PEOPLE OF THE CITY OF CUDAHY, CALIFORNIA
REQUIRING VOTER APPROVAL TO INCREASE THE MAXIMUM ANNUAL PERMITTED RENT INCREASES FOR COVERED UNITS UNDER THE CITY’S EXISTING RENT STABILIZATION ORDINANCE AS CODIFIED UNDER CHAPTER 5.13 (RENT STABILIZATION) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE CUDAHY MUNICIPAL CODE (“CMC”))
H. Draft Resolution (Option 4) (A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY OF A BALLOT MEASURE TO PROTECT CUDAHY’S EXISTING RENT STABILIZATION PROGRAM FROM REPEAL OR AMENDMENT WITHOUT APPROVAL BY A SUPERMAJORITY (2/3) OF THE FULL MEMBERSHIP OF THE CITY COUNCIL; (2) ACKNOWLEDING CITY COUNCIL APPROVAL OF AN ORDINANCE EFFECTUATING THE FOREGOING AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; (4) REQUESTING THAT THE LOS
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ANGELES COUNTY BOARD OF SUPERVISORS INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR ELECTION CONSOLIDATION REQUEST; (5) REQUESTING THAT THE REGISTRAR-RECORDER/COUNTY CLERK PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES, INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING THE
BALLOT MEASURE AND DIRECTING PREPARATION OF AN IMPARTIAL ANALYSIS) I. Draft Ordinance (Option 4) (AN ORDINANCE OF THE PEOPLE OF THE CITY OF CUDAHY, CALIFORNIA
REQUIRING THE FUTURE APPROVAL OF A SUPERMAJORITY OF CITY COUNCIL TO AMEND OR REPEAL THE CITY’S RENT STABILIZATION ORDINANCE AS CODIFIED UNDER CHAPTER 5.13 (RENT STABILIZATION) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE CUDAHY MUNICIPAL CODE (“CMC”)) J. Draft Resolution (Option 5) (A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY OF A BALLOT MEASURE TO PROTECT CUDAHY’S EXISTING RENT STABILIZATION PROGRAM FROM REPEAL OR AMENDMENT WITHOUT APPROVAL BY A SUPERMAJORITY (2/3) OF THE FULL MEMBERSHIP OF THE CITY
COUNCIL AND TO PROTECT CERTAIN PROVISIONS FROM REPEAL OR SUBSTANTIVE AMENDMENT WITHOUT VOTER APPROVAL; (2) ACKNOWLEDING CITY COUNCIL APPROVAL OF AN ORDINANCE EFFECTUATING THE FOREGOING AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; (4)
REQUESTING THAT THE LOS ANGELES COUNTY BOARD OF SUPERVISORS INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR ELECTION CONSOLIDATION REQUEST; (5) REQUESTING THAT THE
REGISTRAR-RECORDER/COUNTY CLERK PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES, INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS
AND REBUTTALS REGARDING THE BALLOT MEASURE AND DIRECTING PREPARATION OF AN IMPARTIAL
ANALYSIS)
K. Draft Ordinance (Option 5) (AN ORDINANCE OF THE PEOPLE OF THE CITY OF CUDAHY, CALIFORNIA
REQUIRING FUTURE APPROVAL OF A SUPERMAJORITY OF CITY COUNCIL TO AMEND OR REPEAL THE CITY’S RENT STABILIZATION ORDINANCE AS CODIFIED UNDER CHAPTER 5.13 (RENT STABILIZATION) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE CUDAHY MUNICIPAL CODE (“CMC”) AND TO
REQUIRE FUTURE VOTER APPROVAL TO AMEND OR REPEAL CERTAIN PROVISIONS THEREUNDER)
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 106 of 506
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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.
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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:
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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.
RESOLUTION NO. 26-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUDAHY, CALIFORNIA (1) CALLING AND GIVING NOTICE OF
THE SUBMISSION TO THE VOTERS OF THE CITY OF CUDAHY
OF A BALLOT MEASURE TO PROTECT CUDAHY’S EXISTING
RENT STABILIZATION PROGRAM FROM REPEAL OR
SUBSTANTIVE AMENDMENT WITHOUT VOTER APPROVAL;
(2) ACKNOWLEDING CITY COUNCIL APPROVAL OF AN
ORDINANCE EFFECTUATING THE FOREGOING
AMENDMENTS; (3) ORDERING THAT THE BALLOT MEASURE
BE SUBMITTED AS PART OF THE CITY’S NOVEMBER 3, 2026
GENERAL MUNICIPAL ELECTION; (4) REQUESTING THAT
THE LOS ANGELES COUNTY BOARD OF SUPERVISORS
INCLUDE THE BALLOT MEASURE AS PART OF CITY’S PRIOR
ELECTION CONSOLIDATION REQUEST; (5) REQUESTING
THAT THE REGISTRAR-RECORDER/COUNTY CLERK
PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES,
INCLUSIVE OF THE BALLOT MEASURE; AND (6) SETTING
PRIORITIES FOR FILIING WRITTEN ARGUMENTS AND
REBUTTALS REGARDING THE BALLOT MEASURE AND
DIRECTING PREPARATION OF AN IMPARTIAL ANALYSIS
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, the City Council of the City of Cudahy (“City Council”) formed an Ad Hoc Committee (the “Ad Hoc Committee”) at the City Council meeting of July 19, 2022, to analyze and study the issue of rent control and to formulate legislative or other appropriate recommendations for City Council consideration; and WHEREAS, on September 20, 2022, the City Council adopted Ordinance No. 725, 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 restriction on rent increases enacted by Ordinance No. 725, to allow more time to study and analyze the issue; and WHEREAS, on April 17, 2023, the City Council adopted Urgency Ordinance No. 735 extending the temporary restriction on rent increases enacted by Urgency Ordinance No. 725 and extended by Urgency Ordinance No. 731; and
Attachment B Page 136 of 506
WHEREAS, pursuant to its police power, 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; and
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 rent stabilization measure as set forth in proposed Ordinance No. XXXXXXX, 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 [DATE], 2026; and
WHEREAS, pursuant to California Elections Code section 9222, the City Council is authorized to submit this measure to the voters at the November 3, 2026 General Municipal Election; and
WHEREAS, pursuant to California Elections Code section 9217, if approved by the voters, the Ordinance may only be amended or repealed by the voters; and WHEREAS, the City Council wishes to include the above-referenced rent stabilization 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, 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 County-administered General Election to be held on the same day, for the purpose of submitting to the qualified electors a Measure (hereinafter, the "Measure") attached hereto as attached hereto as Exhibit "A" and incorporated herein by reference.
SECTION 3. As of the effective date, this Resolution is one of [#] 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 second resolution, Resolution No.
XX-XX, (1) Gave 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) Set Election Procedures And Priorities For The Filing Of Written Arguments And Rebuttals Regarding The Measure And Directed The City Attorney To Prepare An Impartial Analysis; And (3) Requested 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.] The City Council requests that the Measure in Ordinance No. XXXX-XXX 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. XXXX-XXX as part of the City of Cudahy's November 3, 2026 General Municipal Election, which is to be consolidated with the County-administered 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:
Measure to Protect Cudahy’s Rent
Stabilization Ordinance
To protect tenants from excessive rent
increases, promote long-term stable rental
prices, require registration of rental units,
provide 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?
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. 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 8. 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 9. 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 10. The complete text of the proposed Ordinance submitted to the voters is attached as Exhibit "A" to this Resolution.
SECTION 11. The ballots to be used at the election shall be in form and content as required by law.
SECTION 12. 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 13. 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 14. 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 15. The City Clerk shall follow all the public examinations and other relevant procedures set forth in Elections Code Section 9295.
SECTION 16. 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 17. 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 18. This Resolution 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 does not constitute a “project” that requires environmental review (14 Cal. Code of Regs., §§ 15060(c)(2)- (3),15378), but if deemed to be a project, is categorically exempt under 14 Cal. Code of Regs. § 15061(b)(3) (common sense exemption).
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 XX day of XX 2026.
______________________________
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-XX 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 XX day of XX 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. XXX
ORDINANCE NO. XXXX
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
CUDAHY, CALIFORNIA REQUIRING FUTURE VOTER
APPROVAL TO REPEAL OR MAKE SUBSTANTIVE
AMENDMENTS TO THE CITY’S EXISTING RENT
STABILIZATION ORDINANCE AS CODIFIED UNDER
CHAPTER 5.13 (RENT STABILIZATION) OF TITLE 5
(BUSINESS LICENSES AND REGULATIONS) OF THE
CUDAHY MUNICIPAL CODE (“CMC”)
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, the City Council of the City of Cudahy (“City Council”) formed an Ad Hoc Committee (the “Ad Hoc Committee”) at the City Council meeting of July 19, 2022, to analyze and study the issue of rent control and to formulate legislative or other appropriate recommendations for City Council consideration; and WHEREAS, on September 20, 2022, the City Council adopted Ordinance No. 725, 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 restriction on rent increases enacted by Ordinance No. 725, to allow more time to study and analyze the issue; and WHEREAS, on April 17, 2023, the City Council adopted Urgency Ordinance No. 735 extending the temporary restriction on rent increases enacted by Urgency Ordinance No. 725 and extended by Urgency Ordinance No. 731; and WHEREAS, pursuant to its police power, 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; 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 California Elections Code section 9217, if approved by the voters, an ordinance may only be amended or repealed by the voters; and Attachment C Page 145 of 506
WHEREAS, the City Council wishes to place a measure on the November 3, 2026 ballot so that its rent stabilization program may only be amended or repealed by the voters; 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, 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 Election Code Section 9217, 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 5.13 (Rent Stabilization) of Title 5 (Business Licenses and Regulations) of the Cudahy Municipal Code is hereby amended and retitled in its entirety to now state the following:
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.
Measure to Protect the Cudahy’s Rent Stabilization
Ordinance
To protect tenants from excessive rent increases, promote longterm stable rental prices, require registration of rental units, provide 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?
YES
NO
Article II. General Provisions
5.13.050 Permitted rent increases for covered rental units.
5.13.060 Capital improvements 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 deposit.
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.
(1) 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. (2) 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.
(3) The provisions of this Chapter were first adopted by City Council action, they were later approved and ratified by Cudahy voters at its General Municipal Election of November 3, 2026. Accordingly, this Chapter may not be repealed in whole or in part without subsequent voter approval. The foregoing notwithstanding, the City Council, without voter approval, may make non-substantive amendments to this Chapter. For the purpose of this Section 5.13.020(3), “non-substantive amendments” include, but are not limited to: (i) do not alter the criteria for establishing whether or not a rental unit is
subject to the protections of this Chapter in such a way as to narrow the types of rental units that are subject to this Chapter’s protections; (ii) do not alter any criteria for establishing an allowable increase in rent such that rents will increase by a greater percentage or may be increased at a greater frequency than under the current criteria; (iii) do not alter the restrictions on pass-through fees and charges under this Chapter; (iv) do not result in a relaxation of criteria for allowing landlords to receive a reasonable return on rents such that rents are subject to greater rates of increase than is the case under the current criteria. The later repeal of such non-substantive amendments will not require voter approval.
5.13.030 Definitions.
For the purposes of this chapter, unless the context requires otherwise, the following definitions shall apply:
(1) “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.
(2) “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 CMC 5.13.060. “Capital improvement” does not include normal or routine maintenance or repair or repairs covered by insurance. (3) “City” means the city of Cudahy.
(4) “Code” means Cudahy Municipal Code.
(5) “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. (6) “Covered rental unit” means any rental unit that is not designated as exempt pursuant to CMC 5.13.040.
(7) “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.
(8) “Director” means the director of the department, or their designee. (9) “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. (10) “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.
(11) “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. (12) “Mobilehome” means any mobilehome as defined under California Civil Code Section 798.3.
(13) “Mobilehome park” means an area of land located where two or more mobilehome spaces are rented or leased out for mobilehomes used as residences. (14) “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.
(15) “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.
(16) “Rental unit” means any dwelling unit, as defined under California Civil Code Section 1940(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. (17) “Residential real property” includes any parcel of land containing one or more dwelling units intended for human habitation.
(18) “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:
(a) California Civil Code Section 1941 et seq.;
(b) The landlord’s implied warranty of habitability, which cannot be contractually excluded or waived;
(c) A rental agreement between the landlord and the tenant; and (d) 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. (19) “Tenancy” means the lawful right or entitlement of a tenant to use or occupy a rental unit. This includes a lease or a sublease.
(20) “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.
(1) 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.
(2) Exemptions. The following are specifically exempt from the provisions of this chapter:
(a) Any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995.
(b) 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).
(c) 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 California 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 California 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. § 1437f). (d) Residential real property containing no more than two 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:
(i) The term “owner” means a natural person who owns at least a 25 percent ownership interest in the residential real property.
(ii) 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. (e) 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 CMC, Transient Occupancy Tax, and California Civil Code Section 1940(b). (f) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly (as defined in California Health and Safety Code Section 159.2), or any other facility licensed by the state to provide medical care for residents.
(3) 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.
(1) A landlord shall not increase the rent for a covered rental unit by more than the change in CPI, or three percent, 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.
(2) A landlord shall not impose more than one 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.
(3) The department shall announce the annual maximum allowable rent increase effective as of July 1st of the same year, in accordance with the department’s procedures and guidelines.
(4) A landlord may impose an annual rent increase for any covered rental unit, as allowed in this section, only after providing at least 30 days’ written notice to the tenant of the rent increase pursuant to California Civil Code Section 827. (5) 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 CMC 5.13.100, and maintaining compliance with state and local laws and requirements. (6) A landlord who does not impose a rent increase or imposes only a portion of the permitted rent increase in any 12-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. (7) This chapter does not supersede a landlord’s right to set the initial rent for new tenancies under state law.
(8) 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.
(9) 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.