Cudahy City Council
October 6, 2026

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
October 6, 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: 821 4908 1704
https://us06web.zoom.us/j/82149081704

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 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
A. Greater Los Angeles County Vector Control District (GLACVCD): Mosquito & Mosquito-borne Disease Activity in Cudahy

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.)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 2026, at 6:30 P.M.

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

9. CITY MANAGER REPORT (information only)

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

MEETINGS

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

12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.) A. Consideration to Review and Approve the Draft Minutes of August 4, 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 August 4, 2026.

B. Receive and file the Local Agency Investment Fund (LAIF) report for the Month of August 2026 (page 31)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 2026, at 6:30 P.M.

Presented by the Finance Director
Recommendation: The City Council is requested to receive and file the Local Agency Investment Fund (LAIF) Report for the month of August 2026 in the amount of $5,817,840.79.

C. Approval of the City Demands and Payroll Including Statement of Cash and Investments for the Month of August 2026 (page 35)
Presented by the Finance Director
Recommendation: The City Council is requested to ratify and approve the Demands and Payroll in the amount of $2,451,251.26 and to receive and file the Statement of Cash and Investments for the month of August 2026.

D. Business License Tax, Processing Fee Waiver, and Payment of State Disability Access Fees for Vendors Participating in the City’s Pilot Night Market “Cudahy Mercadito” (page 47) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt Resolution No. 26-41 Authorizing a Waiver of the Business License Tax, Processing Fee and Payment of the State Disability Access Fee for All Vendors Participating in the City’s Pilot Night Market “Cudahy Mercadito.”
E. Adoption of Resolution No. 26-42 Ratifying Payments Made in Excess of Contract Not-to-Exceed Amounts, Authorization of Expenditures in Excess of Contract Amounts, and Appropriation of Funds for Outstanding Invoices — Willdan Engineering, West Coast Arborists, Inc., Yunex LLC, and Nationwide Environmental Services (page 53)
Presented by the Director of Finance
Recommendation: The City Council is requested to adopt Resolution No. 26-42:

1. Ratify payments totaling $262,050.25 previously made to Willdan Engineering, West Coast Arborists, Inc., Yunex LLC, and Nationwide Environmental Services in excess of each agreement's approved notto-exceed (NTE) amount, or without an executed agreement;

2. Authorize expenditures of $48,674.80 in excess of contracted not-toexceed amounts, including services rendered by Yunex LLC without an executed agreement, and authorize payment of outstanding invoices totaling $63,867.80 to Willdan Engineering, West Coast Arborists, Inc., and Yunex LLC;

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 2026, at 6:30 P.M.

3. Adopt Resolution No. 26-42, amending the Fiscal Year 2025-26 Budget to appropriate $63,867.80 from the funds identified in the Financial Impact section; and

4. Authorize the City Manager to execute any documents necessary to carry out these actions, in a form approved by the City Attorney.

This action does not include Transtech related items. Payments to Transtech are not ratified or authorized by this item and will be addressed separately.

F. Adoption of Resolution No. 26-43 Accepting Completion of the Atlantic Avenue Complete Streets Improvement Project (STR-003) and Authorizing Related Project Actions (page 351) Presented by the Administrative Analyst
Recommendation: The City Council is requested to adopt Resolution No. 26-43:

1. Accepting the completion of work performed by Sequel Contractors, Inc. for the Atlantic Avenue Complete Streets Project (STR-003);

2. Appropriating $438,192.74 in Measure R Local Return funds for the Sequel Contractors Inc contract to cover construction costs exceeding the previously authorized contract and contingency amount, and related project cost;

3. Authorizing the City Manager to execute Contract Change Orders No. 26 through No. 35 in the total amount of $224,433.66;

4. Authorizing the City Manager to execute the Notice of Completion and direct the City Clerk to file the Notice of Completion with the Los Angeles Recorder’s Office; and

5. Authorizing the release of the construction contract retention in the amount of $265,259.91 to Sequel Contractors, Inc.

G. Receive and File a Status Update on the Clara Expansion Park Rehabilitation Project – PRE-004 (page 361)
Presented by the Administrative Analyst
Recommendation: It is recommended that the City Council:

1. Receive and file the status update for the Clara Expansion Park Rehabilitation Project (PRE-004);

2. Acknowledge the project's current estimated funding gap of approximately $4.83 million and the September 2027 deadline associated with the Measure A Competitive Grant;

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 2026, at 6:30 P.M.

3. Direct staff to continue pursuing federal, state, county, regional, and other external funding opportunities to reduce the project's funding gap;

4. Direct staff to incorporate the Clara Expansion Park funding requirement, along with the funding requirements of other existing Capital Improvement Program (CIP) projects, into the City's broader capital project funding and prioritization process; and

5. Direct staff to provide additional updates to the City Council on other active and planned CIP projects, including their respective project costs, secured and anticipated funding sources, remaining funding gaps, grant deadlines, and other funding considerations.

13. PUBLIC HEARING – NONE

14. BUSINESS SESSION
A. Discuss and Evaluate the 2023 Council Adopted Economic Development Strategic Plan: Workshop II (page 465)
Presented by the City Manager
Recommendation: The City Council is requested to discuss and evaluate the 2023 Council adopted Economic Development Strategic Plan. Specifically, it is recommended that the City Council:

1. Receive an update regarding the Economic Development Strategic Plan Refresh; and

2. Provide direction regarding the City's desired economic development priorities and outcomes to assist staff in preparing the next phase of the Plan.

15. COUNCIL DISCUSSION - NONE

RECESS TO CLOSED SESSION

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
October 6, 2026, at 6:30 P.M.

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 2
nd day of October 2026
Richard Iglesias, CMC
City Clerk

Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 1 of 2

STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher Lopez, City Manager/Executive Director Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of August 4, 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 August 4, 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 Clerk (City Clerk) is the record keeper of a City’s recorded history.

Item Number
12A

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 2 of 2
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 August 4, 2026.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
None.

ATTACHMENT
A. August 4, 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 8/4/2026 Page 1 of 18

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
August 4, 2026, 6:30 P.M.

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

2. ROLL CALL
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 (participated through Zoom) City Clerk, Richard Iglesias, Finance Director, John Xie, Community Services Director, Brenda Rodriguez, Assistant to the City Manager, Estefania Zamora, Executive Assistant to the City Manager, Janet Andrade, Administrative Intern, Esmeralda Perez

3. APPROVAL OF AGENDA
Motion: Council Member Alcantar Loza motioned to approve the agenda, 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

4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by student Nathanael Mendez.

5. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Vice Mayor Lomelí.

Attachment A Page 11 of 557
City Council/Successor Agency Minutes of 8/4/2026 Page 2 of 18 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
Irma Lopez Irma Lopez commenced by congratulating Cynthia Gonzalez for running for re-election as Mayor. Gave thanks for the support offered during the Mother's Day event, and thanked Brenda as well. Came to present their non-profit, created because of challenges that are noticeably faced by the SELA community. Expresses a desire to offer support and hopes to receive support from the council. Reads that, in the name of the Coalition of California for Life (CCLF), it is a pleasure to present their organization and reaffirm the promise to serve the residents of Cudahy and SELA. The foundation is dedicated to helping people and families in the City of Cudahy by listening to concerns, advocating for well-being, and collaborating with community leaders to address the problems most important to residents. Believes that strong communities are built on civil promises, respect, and a promise shared to improve the quality of life for everyone.

Implies that CCLF's focus is not just to promote dignity and the value of life, but to foster constructive community dialogue and the association that helps meet the needs of families and communities in Cudahy. Recognizes that durable solutions are achieved through cooperation, compassion, and active participation within the community.

Appreciates the dedication of City Hall to serving residents and hopes to create a positive and productive relationship in the city. Welcomed the opportunity to be able to work together in support of incentives that support families, increase civic participation, and improve the welfare of the community. Thanked the council for their time, leadership, and continued service, and hopes to collaborate. Additionally, would like to set up a meeting to discuss the topic further and the plans being discussed. Finished by introducing the Vice President, Camille Velasco, and Secretary Angel Velasco.

Olga Gonzalez has lived in the City of Cudahy for more than 20 years and supports item

13. Mentions being part of the association CB, is here to represent them, and would like support so that the organization (data centers) is not built in Cudahy, due to all the bad it is going to bring, such as sickness, etc.; hopes to have support from the entire council and is in support of all the points to better the community.

Camille Velasco Vice President of CCLF, is here on behalf of the organization to support item 13, denying data centers to be built in the city; informs that there have been many issues in the country regarding data centers, including air and water pollution, and the negative effects that communities will face if they are near those data centers. States that access to clean water is already an issue in the Los Angeles area. Is present today to

City Council/Successor Agency Minutes of 8/4/2026 Page 3 of 18 show support against the construction of data centers that will only make the health of the cities much worse than it already is, because of the amount of industry the city is surrounded by.

Angel Velasco Secretary of CCLF, commented that he has lived in Cudahy for about 10 years; he is present today to support item 13 and urges the council to prohibit the construction of data centers in the community, Implies that there are many reasons the data center should not be built in the city: it poses a serious risk to the community, contributes to pollution, consumes massive amounts of energy, requires large quantities of water, and often leaves behind contaminated waste, also increasing heat in already warm neighborhoods and creating constant noise that can affect residents' health, including sleep and heart conditions. Expresses that the community deserves clean air, safe water, and a healthy environment. For these reasons, respectfully asks that there not be any data centers in Cudahy.

Maria Reundon expressed not understanding why the city chose to do business with the trash service company it currently has, was told that there would be a change of company.

Explains that when the city sent the recycling and compost bins, a $274 bill followed, and since then, the bill has increased. Through personal investigation, discovered that both trash bins are free if the big bin is paid for; additionally, introduced a separate issue about being charged $50 because the trash bin was too heavy; reports that a supervisor stated there is a $50 extra charge because it is the individual's responsibility to ensure that other people do or do not place trash into their bins. Presented the daughter as a witness who saw trash from Lynwood, Compton, and Long Beach. Notes being told to place a lock, did as instructed, and did not see it work; canceled the service and was not given credit; continued to be charged without noticing. Implores that the issue be fixed, requests the money be returned, or states that next time, there will be a call to the TV channels.

Explains being charged $41 for small trash bins and was told a call was made to request that fee but says it was never done; no one is in charge; some adults cannot walk or take out the trash. States the company told her they would send a paper for handicap; it was sent and returned, but only sent a person once, and the company says one thing and does another.

Maria Barajas de Guillen recognizes the need to be active in the city of Cudahy, a small city with a large population, noting that it is sad that four or five people are the ones who make the difference in the City; like the five council members, they need to work hard to keep the city good, work together with the community, and attend to their needs, expresses that, as a parent, one fights for the good of their kids by ensuring they can vote, because if one wants to see change in their city, country, and state, it is important to vote. Noted paying more for their license plates in Cudahy due to the tax being higher than in other cities. Discussed the proposed data center and does not think it is convenient in the city. Shares that, as a member of SELA and focusing on the environment, three weeks ago, a tour was conducted from Los Angeles through Huntington Park, visiting multiple places that were contaminated but being cleaned. Asked that what is being brought to the city be taken into account and that the people be heard.

City Council/Successor Agency Minutes of 8/4/2026 Page 4 of 18 Susie de Santiago remarked on item 14A, the Temporary 45-day Moratorium, in hopes that the council supports it, expressing that data centers are not for the community for previous reasons mentioned; more green space and places where the community can go and recreate are needed instead of data centers, brought to the attention of the council, regarding an event that happened on Saturday at the shopping center, on the corner of Santa Ana and Atlantic; mentions pop-ups are constantly recurring, the individuals hosting the event were doing a good thing, but the approach was not done correct, stated the City being notified but the event did not take place where it was supposed to in the hallway next to Hielo Con Sabor; instead, was held in the parking lot, which affected customer parking, electrical cords were being ran through the parking lot, mentioned CYF as an example that they have to obtain permits for the firework stand when running electrical cords, also have inspections. Comments that other organizations are noticing that within the shopping center, they can hold events without oversight or consequences; more investigation or supervision is necessary, concluded by extending an invitation to CYF, where they are having the backpack giveaway, at 6 PM at Clara Park.

Patricia Ramirez wrote a comment expressing the need to increase police and ranger presence at night due to inappropriate behavior, littering, and individuals sleeping in parked cars; communicated concern about homeless individuals gathering near the liquor store at the corner of Cecilia and Atlantic, proposing that such activity contributes to disorder and possible drug-related activities, raising questions about the store owners' awareness of the issue, concluded by thanking the city for its efforts in maintaining the cleanliness of Salt Lake, Patata, and Atlantic streets, noting a visible improvement.

Mateo Gil an Organizer with East Yard and a member of Caracol, spoke in support of item 13, supporting the data center ban, expressed that in a time in which neighbors are experiencing fires, environmental racism, landlord apologists, and ICE Raids, the last thing needed in the community is data centers, informs that data centers impact energy use, consume a lot of energy, and use significant water resources, creating water scarcity, stated that Southern California is already drought-prone using water resources for server cooling instead of agriculture or drinking water is unsustainable and unjust, asked to move forward with the ban on data centers in Cudahy.

Mario Dominguez Jr. spoke about the Planning Commission meeting in the City of South Gate regarding Tweedy Blvd, how the owner of a business called Hops and Barley Alehouse tells the commissioners he wants to put a patio in the back of the building, wanting corrugated metal roofing, rod iron fencing, and a vinyl sound blanket, stated that the recommendation of staff was for the owner to go with high-grade quality material, but that the planning commission approved the item and did away with the stipulation requiring high-grade quality material, and instead had the owner use low-grade material, adding to the statement that they approved industrial material for an eatery on a business corridor in the city, noting that if one were to go to Downey, Paramount, or Bellflower, one would not see their residents eating at a patio constructed of corrugated metal roofing and surrounded by rod iron fencing, mentioned telling the commissioners to listen to their advisors, and city hall staff, noting that it is 30 through 40 years of bad decision making going back to the root source, the people working in City Hall, Council Members, and

City Council/Successor Agency Minutes of 8/4/2026 Page 5 of 18 Planning Commissioners, and expressing disappointment and the importance of having intelligent people on the commission.

Amber Rivera a staff researcher at Communities for a Better Environment, a social and environmental justice group in Southeast LA, was present to support agenda item 13, urging the council to prohibit the development of data centers in all zoning areas. Echoing fellow residents' comments to prohibit data centers, it is a health-protective step towards addressing health concerns from residents, such as air pollution and urban heat islands - phenomena where cities experience hot air and high temperatures due to a lack of room space, such as heat-absorbent infrastructure like data centers. Reporting that, to prevent data centers from overheating, they need 24/7 cooling equipment, often powered by diesel generators that emit NOx and other air pollutants that affect the respiratory system.

Informed, noting that it is estimated that air pollution from data centers can lead to 600,000 asthma cases and 1,300 premature deaths by 2030, citing satellite research showing data centers emit high temperatures because they are made of heat-absorbing materials, increasing land temperatures by up to 60 degrees Fahrenheit, and concluded by emphasizing the need to prohibit data centers in Cudahy and prioritize people and environmental health.

Vanessa Vazquez a legal fellow at Communities for a Better Environment, was present to support agenda item 13, prohibiting the development of data centers in all zoning areas, and to support reestablishing the temporary moratorium under item 14 until the prohibition is adopted. Voiced that it is of the utmost importance that the council prohibit data centers in all zoning areas, as the environmental impact of data centers is too large to ignore, threatening electrical and water resources, exacerbating climate and air quality impacts, and generating a lot of wastewater, noise, and e-waste, briefed that according to a report from Next 10 and UC Riverside, health costs from California data centers tripled from 2019 to 2023, with projections that they can rise another 496% above 2019 levels by 2028, states that a prohibition to ban data centers in the city of Cudahy is based on health and safety, also the welfare of residents and asked that data centers be prohibited in all zoning areas.

Edwin Gonzalez emailed his public comment, stating that the Clara Bridge improvement project is critical to the community's quality of life, emphasizing that efforts to improve conditions for residents could face one barrier after another if critical sectors in the community continue to struggle; expressed that if homelessness or any other social problem worsens, then progress will be hard to achieve, and that the push to improve infrastructure and implement capital projects will still leave a big void in the community, hopes that during the phases of projects like the Clara Bridge improvement, Clara Park Expansion Rehabilitation, and the Cudahy Park Project, residents are given something to be proud of. Shared that serious gains need to be made in having better-paying employment for residents who reside in Cudahy and the region itself - more stable households are needed and integrating them into formal employment and the formal economy, where they earn better wages and benefits. Reported that one of the achievements in Latin America, according to the World Bank and other institutions, has been in Mexico, where significant progress was made by reducing informal employment

City Council/Successor Agency Minutes of 8/4/2026 Page 6 of 18 and replacing it with formal employment. Mentioning that this is not occurring in Southeast Los Angeles, as tariffs by Trump and Biden are destroying the American working class, and even new infrastructure cannot keep up with the population's needs. Concluded by detailing the belief that communities like Cudahy are heading in that direction for many reasons, but do not have the elements to build a robust middle class; much of the economy is concentrated in surveillance, militarization, artificial intelligence, and real estate speculation, and the needs of an average person have been neglected.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Alcantar Loza thanked the team, including both council and staff, for their patience and for taking the lead during her absence; she also conveyed her readiness to return.

Council Member Fuentes started by congratulating Irma's new non-profit, California Coalition for Life, and looks forward to the good work; then spotlighted Superior Market, a business doing an uplift, and how it offers a different, inviting experience, acknowledging and celebrating businesses that are making changes that are more inviting to the community, commented on participating in a Zoom meeting with SELA Collaborative on a discussion on Measure G, which directly affects the SELA region and Cudahy, having to do with the expansion of county supervisors from five to nine, which will not take effect until 2034, mentioned seeing the Vice Mayor and the city manager at the meeting, underlining the importance of engagement, as much of the funding comes from the county, state, and federal levels. Highlighted the event on Saturday that Susie discussed, noting that one issue was that it came with its own sponsors; expressed wanting to engage with staff so that any outside organizations that come in collaborate with established nonprofits like Cudahy Youth Foundation, Cudahy Chamber of Commerce, or CCLF, and survey what is provided in Cudahy already, yet not an obligation; noted how haircuts were being provided, food was provided by Piara Pizza from USC, barber and beauty salon were not engaged, concluded by commenting on having staff engage in conversations to see what can be improved and modified for such events, and expressed looking forward to National Night Out tomorrow.

Council Member Gomez congratulated Irma and the rest of the CCLF team, thanked city staff for moving forward with getting the data center moratorium on the agenda, because it is a huge issue that neighboring cities are already dealing with, lastly, noting how the City of Industry decided to move forward, knowing it is a bit more difficult for them as they are unincorporated.

Vice Mayor Lomeli commented on how great it is to hear many people speak in support of improving the city overall, whether by joining forces, sharing new non-profits, or simply wanting to protect the community; thanked everyone for being involved and committed to improving the city, acknowledged two Cudahy residents who worked on the recent upgrade of the mural, stating that they should be brought back to a future council meeting to be recognized with certificates after the unveiling, mentioned being on the call for SELA Collaborative Elective Convening on Measure G, noting that one of the panelists offered

City Council/Successor Agency Minutes of 8/4/2026 Page 7 of 18 to come back to a meeting to present as they move forward in the process, would like to know if staff can connect with the SELA Collaborative to invite them back, specifically Elton Wang, voiced the importance of the council being informed throughout the process and not being left out of a big change.

Mayor Gonazlez congratulated Irma and CCLF, stating they should be included in the next Cudahy Collaborative, outlined the process of starting to send out invitations for the SELA Collaborative, making sure to include non-profits, businesses, as well as board member Karla Griego’s office, that would be interested in collaborating around school and family-related issues, mentioned community concerns regarding Cudahy's parking permits, particularly the inability to purchase extended-stay visitor passes online instantly, and how, moving forward, if there is a way to creatively problem-solve a process that accounts for multi-generational households and visiting families, expressed wanting to start neighborhood watch meetings (community-building meetings) to restructure and propose a different format from what was had before, reported looking at crime data that significant crime has decreased, personal property and petty crimes remain high, recommended implementing resident vigilance training and city-wide community-building initiatives to combat this trend, commented on the data centers with a focus on local control, countering that the topic surpasses local control, emphasized that local control should not be had if it results in decisions that actively harm neighboring communities, mentioned the City of Vernon's data centers coming to the city, highlighting that surrounding communities impacted by those data centers do not have a say in the development, state legislation might be needed that requires formal notifications and grants neighboring municipalities the right to oppose impactful projects. Noted getting policy changes to Republic Services that are not contract-bound and can be changed; highlighting costs that were approved but not part of the original contract, and the importance of identifying the charges and revisiting them, as there have been complaints regarding these issues. Concluded with an update on parks funding and data on the city of Cudahy, gathered at a SELA collaborative event. Recommended that the individual who presented the data be invited to present to Cudahy, so a strategic plan can be built to improve outcomes. Informed that the SELA collab has the information to contact the individual.

Mayor Gonzalez re-opened Public Comments at 7:20 p.m.

Jose Manuel Gutierrez a resident of Cudahy for 10 years and an educator in the Southeast area for the last 20 years, commended the city for what it has done for the community, commented on not needing data centers, as it will cause pollution and noise, and that there are already welding and other issues, recommended that they be sent to the Salton Sea, where water can be wasted and used, as it is not needed in the community, gave thanks for the support regarding local crime, such as property damage, and shared having a sister whose business was broken into, noted the need for more follow-up and giving officers a little more leeway to do what they have to do, believes the community is on a good path, reiterates no data centers, as costs for water and electricity are going to go up, voicing that the city is going to benefit, but it is not worth it in the long run.

City Council/Successor Agency Minutes of 8/4/2026 Page 8 of 18 Closed at 7:22 p.m.

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: Vice Mayor Lomelí motioned to waive full reading of resolutions and ordinances, 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

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of July 21, 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 21, 2026.

B. Consideration to Delegate Discretion to City Clerk to Direct County to Undertake One of Several Options Regarding Manner of Placement on The Ballot of The Ballot Measure Question Approved by Resolution No. 26-30 For Placement on The November 3, 2026 General Municipal Election Ballot
Recommendation: The City Council is requested to delegate discretion to the City Clerk to direct the County undertake one of the following voter information guide placement options for the ballot measure question approved by Resolution No. 26-30 for placement on the November 3, 2026 General Municipal Election Ballot: (a) Print a 75 word abbreviated ballot measure text (prescribed by law) only; (b) Print a 75 word abbreviated ballot measure text and include Official Sample Ballot Notice advising voters to call the City Clerk’s Office and request a free copy of the ballot measure enclosure (OR) that the city will be sending voters a supplemental mailing; or (c) Print a 75 word abbreviated ballot measure text and include Full Ballot Measure Enclosure Text in the Official Sample Ballot Booklet.

City Council/Successor Agency Minutes of 8/4/2026 Page 9 of 18 Motion: Council Member Gomez motioned to approve Consent Calendar items A-B, 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

13. PUBLIC HEARING
A. Consideration to Introduce Ordinance No. 771, Affirming Planning Commission’s Recommendation to Approve Zoning Ordinance Text Amendment No. 2026-01 Amending Section(s) 20.88.050, 20.16.020, 20.20.020, 20.24.020, and 20.28.020 of Title 20 (Zoning) of the Cudahy Municipal Code, to Add a New Use Classification for Data Centers and Prohibiting the Use Citywide, in All Zones Presented by Deputy City Attorney
Recommendation: The City Council is requested to take the following action(s):

1. Open the public hearing and receive public testimony; and

2. Find the action is exempt from the California Environmental Quality Act (Public Resource Code Section 21000, et seq. (“CEQA”) and the state CEQA Guidelines (California Code of Regulations, Title 14, § 15000, et seq.) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and

3. Waive the full reading of and introduce Ordinance No. 771 (Attachment A) by title only, approving Planning Commission’s recommendation and adopting Zoning Ordinance Text Amendment No. 2026-01, amending section(s) 20.88.050,

20.16.020, 20.20.020, 20.24.020, and 20.28.020 of Title 20 (Zoning) of the Cudahy Municipal Code, to add a new use classification for Data Centers and prohibiting the use city-wide, in all zones; and

4. Schedule the second reading of Ordinance No. 771 for the next regularly scheduled City Council meeting on August 18, 2026.

Mayor Gonzalez opened the Public Hearing at 7:38 p.m.

Susie de Santiago is present to support item 13A regarding the prohibition of data centers in Cudahy for the reasons mentioned previously: the use of water and electricity and the noise they create, expressed that the space occupied can be used for better things for

City Council/Successor Agency Minutes of 8/4/2026 Page 10 of 18 the community and hopes the Council supports the Planning Commission's recommendation to prohibit data centers in Cudahy.

Irma Lopez is present in support of item 13 on the agenda and the prohibition on constructing data centers. Reported that data centers affect air quality, and that the contamination of the atmosphere from these installations can cause 600,000 cases of asthma and 1,300 premature deaths per year by 2030; elaborated that data centers consume a lot of electricity and water, and that the polluting substances are very harmful to health; asked that the item be supported, and that the construction of data centers is prohibited.

Maria Barajas Guillen commented on the data centers, hoping they will not be approved for the good of the community; she expressed that the city is small but full of residents, apartments, and cars, noting that there is no parking as it keeps accumulating, that there is no more space, and that there will be no water; mentioned there are many considerations to take into account, and asked that as each person does their analysis, everyone comes to an agreement and supports the community.

Jass commented that she comes from the City of Walnut Park and Huntington Park; we are halfway between East LA and Boyle Heights. Regarding data centers, I am here to support point 13 of the agenda, which is to prevent the construction of data centers in the urban development zone. I just wanted to highlight some of the many reasons why we shouldn't have data centers in the community. Through the National Institutes of Health, data centers affect human and animal health, particularly through noise pollution, chronic emissions from backup generators of electronic networks, and fossil fuels. They also consume massive amounts of water and disrupt habitats; these facilities operate continuously, straining local resources and degrading environmental quality. Evidence shows that such conditions increase rates of asthma, respiratory issues, cardiovascular problems, and long-term systemic diseases. I believe we all agree that we do not want further harm to our community, so I urge you to reject these data centers. On a separate note, thank you for helping bring healthy food to our community—an initiative that shows you care about our health—and based on that, I believe you agree with me that we do not need these centers.

Moussa Saul commented on the consideration, agreeing to a ban and creating a moratorium for 45 days, and changing the zoning laws, noting it took a lot of planning.

Thanked the city for bringing the resolution forward and expressed that other cities may look at what Cudahy is doing as an example.

Laura, a Cudahy resident for many years, spoke in support of Proposition 13, which would prohibit data centers. Communicated that the community has many elementary schools, and that the impact on learning, children, and the environment that data centers would create is alarming and raises fears. Mentioned that as an educator, seeing the environmental impact, plastics, heat, etc., agrees with Susie in creating more green space, planting more trees, and reducing heating in the city. Shared that she visits other cities and sees canopies of trees, believing Cudahy needs them. Expressed how alarming

City Council/Successor Agency Minutes of 8/4/2026 Page 11 of 18 it was to learn there are data centers in the city of Vernon, and questioned why residents were not given a voice to speak against it. Supported the ban and hopes it is permanent, like Monterey Park, not a 45-day ban.

Oscar Cisco, present on behalf of Senator Gonzalez, mentioned that a letter in support of the Ordinance was sent. Appreciated the council showing leadership in the matter.

Vanessa Vasquez, a legal fellow at Communities for a Better Environment, supports agenda item 13, prohibiting the development of data centers in all zoning areas.

Communicated that the health and environmental impact of the facilities is so great that health costs from the California data center have tripled from 2019 to 2023 and are expected to continue rising. Elaborated that data center carbon emissions almost doubled from 1.24 million short tons in 2019 to 2.38 million in 2023 and are expected to continue rising; also noted that the facilities use massive amounts of water for cooling and highglobal-warming-potential refrigerants that exacerbate the climate crisis. Echoed from fellow residents that SELA is facing a data center cluster in the city of Vernon, where there is an existing facility and four anticipated facilities that have the potential to add over 70 backup diesel generators to the region - facilities that are dangerous to human health.

Expressed that a prohibition to ban data centers in the city of Cudahy centers on the health, safety, and welfare of residents, and asked to prohibit data centers in all zoning areas.

Mario Dominguez Jr. spoke about the Monterey Park City Council meeting and noted that a moratorium was also being imposed, adding that residents were raising concerns about data centers. Shared that data centers generate $4-$5 million. Communicated to council members in South Gate that they have the M2 & M3 zones for heavy industrial manufacturing businesses, and that data centers should be placed there. Voiced that supercomputers in data centers need a lot of water and consume a lot of energy, and wondered if there is a way to siphon the water from the LA River Bank and Rio Hondo Channel - drain the sources - for the data centers. Expressed being undecided on whether to allow South Gate to have data centers, noting that Cudahy is 1.2 square miles, so it would not make sense to put a data center in the city, and that it should be banned. He concluded by noting that data centers produce a lot of humming and asked whether there is a way to insulate the sound so it does not affect residents.

Jasmine Gonzalez, a resident and organizer in Southeast Los Angeles, supports item 13A. Conveyed that many residents have mentioned how problematic data centers are, and how they pose a big threat to the electricity grid, along with other harmful effects.

Thanked the council for being proactive and wanting to protect the community of Cudahy.

Edwin Gonzalez, a longtime resident of Bell, commented that the volatility associated with data centers and the lack of federal regulation leave local governments to prevent their proliferation. Explained that there are advantages to using AI sectors to perform certain tasks. Conveyed that communities like Cudahy must strengthen other sectors in the economic landscape and, possibly, in the future, adapt to the technology in ways that keep the community healthy, educated, and able to support families. Expressed that if

City Council/Successor Agency Minutes of 8/4/2026 Page 12 of 18 monopolies drive technology, the working-class communities will continue to be exploited rather than supported; adopting the technology is imperative, but at this juncture, the community is being pushed into it. Elaborates that big corporate donors and both Republican and Democratic parties took issue with President Biden for enforcing antitrust laws, so if real collaboration with artificial intelligence is to be established, it must begin by deterring monopolies and recognizing that the current infrastructure is not conducive to welcoming data centers and artificial intelligence. Voiced that community leaders should also realize that data centers, with the challenges they bring, indicate that a transition to electric vehicles will not happen as once thought possible; there are parallels between the products, expenditures, lack of government subsidies, and environmental impact. Mentioned that infrastructure could become antiquated within 5 to 6 years, and it could keep AI and EVs from reaching the next level. Lastly, wished the Council the very best.

Luis Robles emailed: I live in Huntington Park. Right at the border to Cudahy. I am writing to express support of prohibiting Data Center land use applications (Item #13 in the 8/4/26 meeting). As you know, the effects of data center noise pollution and emission pollution do not just affect Cudahy, but affect neighboring cities as well. Data Centers run 24/7 and their air handling equipment causes noise pollution which has been experienced in other parts of the country. These facilities are also known to burn natural gas in times where electricity is not available or not economical. Natural gas is not "clean burning" and will affect air quality far downstream from any proposed facilities. Any potential economic benefit is just not worth the misery imposed on residents.

Senator Lena Gonzalez emailed: Dear Mayor Gonzalez and Members of the City Council, I am writing to express my support for the City of Cudahy's proposed ordinance prohibiting the development of new data centers within the City. As California continues to experience rapid technological growth, local governments are increasingly tasked with balancing the opportunities created by economic development against the long-term needs and priorities of their communities. Cudahy's proposal reflects a thoughtful exercise of local land-use authority and demonstrates the City's commitment to putting residents first. Communities throughout Southeast Los Angeles have long experienced significant environmental and infrastructure challenges while having limited land available for future development. The city has determined that its limited industrial land is better preserved for uses that support housing opportunities, local economic development, quality employment, and neighborhood vitality. As demand for electricity, water, and other public resources continue to grow, it is appropriate for local governments to consider whether certain land uses align with their community's long-term vision and available infrastructure capacity. These decisions are best made by local elected officials who understand the unique needs and priorities of their residents. At the state level, I have supported legislation that takes a similar community-centered approach. I supported SB 57, which examines the potential electricity costs and rate impacts associated with serving new data center demands; AB 93, which sought greater transparency regarding data center water use; and AB 1577, which would provide state and local governments with additional information on data center energy use, noise, and other operational impacts to better inform local planning and environmental review. I am also a coauthor of

City Council/Successor Agency Minutes of 8/4/2026 Page 13 of 18 SB 887, which establishes environmental, infrastructure, and community standards for data center development. These efforts recognize that as data center development grows in California, communities should have the information, protection, and tools necessary to evaluate these projects and ensure that development does not come at the expense of residents. While data centers play an important role in today's digital economy, not every land use is appropriate for every community. Cudahy's proposal demonstrates that economic development should be intentional, community-serving, and responsive to local conditions. I commend the City of Cudahy for taking a proactive and thoughtful approach to land-use planning and for prioritizing the long-term interests of its residents. Thank you for your leadership and your continued commitment to building a healthier, more resilient, and more equitable community.

Mayor Gonzalez closed the Public Hearing at 8:01 p.m.

Mayor Gonzalez opened the floor for Council Comments.

Motion: Vice Mayor Lomelí motioned to find the action is exempt from the California Environmental Quality Act (Public Resource Code Section 21000, et seq. (“CEQA”) and the state CEQA Guidelines (California Code of Regulations, Title 14, § 15000, et seq.) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and Waive the full reading of and introduce Ordinance No. 771 (Attachment A) by title only, approving Planning Commission’s recommendation and adopting Zoning Ordinance Text Amendment No. 2026-01, amending section(s) 20.88.050, 20.16.020, 20.20.020,

20.24.020, and 20.28.020 of Title 20 (Zoning) of the Cudahy Municipal Code, to add a new use classification for Data Centers and prohibiting the use city-wide, in all zones; and Schedule the second reading of Ordinance No. 771 for the next regularly scheduled City Council meeting on August 18, 2026; and add Council Member Alcantar Loza’s recommendation to send a letter to neighboring cities (i.e., Bell, Bell Gardens, Commerce, Huntington Park, Lynwood, Maywood, South Gate, Vernon, Downey, and Paramount) encouraging them to engage in the same process in their cities, 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

14. BUSINESS SESSION
A. Consideration to Approve an Interim Urgency Ordinance Instituting a Temporary 45- Day Moratorium Prohibiting Approval and Acceptance of New Data Center Land Use Applications
Presented by the City Attorney
Recommendation: The City Council is requested to:

City Council/Successor Agency Minutes of 8/4/2026 Page 14 of 18

1. Determine the adoption of Urgency Ordinance No. 772 is exempt from California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3); and

2. Introduce by title only, and waive further reading of Urgency Ordinance No. 772, imposing a 45-day moratorium prohibiting approval and acceptance of new Data Center land use applications.

Motion: Vice Mayor Lomelí motioned to adopt Urgency Ordinance No. 772, which is exempt from California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3); and introduce by title only, and waive further reading of Urgency Ordinance No. 772, imposing a 45-day moratorium prohibiting approval and acceptance of new Data Center land use applications, 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
B. Consideration to Approve a Modified Iteration of a Rent Stabilization Ballot Measure in Accordance with Council Direction or a Prior Iteration Thereof for Submission to Cudahy Voters at the November 3, 2026 General Municipal Election Presented by the City Attorney and Deputy City Attorney Recommendation: The City Council is requested to:

1. Consider alternative ballot measure options concerning the City’s rent stabilization program for submittal to the voters at the November 3, 2026 General Election, including an option to require voter approval to increase the 3% maximum ceiling for annual rent increases codified under Chapter 5.13 (Rent Stabilization) of the Cudahy Municipal Code or constructive repeal thereof and requiring 2/3 approval of the full membership of the City Council to otherwise amend or repeal Chapter

5.13;

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);

City Council/Successor Agency Minutes of 8/4/2026 Page 15 of 18

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.

5. Authorize Council Member(s) to prepare and submit a written ballot argument in favor of or against the Measure by the August 14, 2026 deadline, if a resolution is adopted.

6. Take such additional related action that may be desirable.

Motion: Council Member Alcantar Loza motioned to adopt ballot measure language based on the direction and guidance from previous Council meeting concerning the City’s rent stabilization program for submittal to the voters at the November 3, 2026 General Election, including an option to require voter approval to increase the 3% maximum ceiling for annual rent increases codified under Chapter 5.13 (Rent Stabilization) of the Cudahy Municipal Code or constructive repeal thereof and requiring 2/3 approval of the full membership of the City Council to otherwise amend or repeal Chapter 5.13; and 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); and 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 adopt a resolution to submit the selected alternative rent stabilization measure to the voters for the November 3, 2026 General Election; and authorize Council Members Alcantar Loza and Gomez to prepare and submit a written ballot argument in favor of the Measure by the August 14, 2026 deadline, seconded by Vice Mayor Lomelí.

Motion passed 4-0 by the following roll call vote:

AYES: Alcantar Loza, Gomez, Lomelí, and Gonzalez
NOES: None
ABSENT: None
ABSTAIN: Fuentes
C. Consider A Written Argument in Favor of The Ballot Measure Extending the City of Cudahy’s Three-Quarter Percent (3/4%) Transactions and Use Tax Indefinitely, Unless Repealed by Voters, As Authorized by The City Council and Prepared by The Mayor and Vice Mayor
Presented by the Mayor and Vice Mayor
Recommendation: The Cudahy City Council (“City Council”) is requested to:

City Council/Successor Agency Minutes of 8/4/2026 Page 16 of 18

1. Consider Mayor Gonzalez’s and Vice Mayor Lomelí’s written argument in favor of the ballot measure (“Measure”) extending the City of Cudahy’s (“City”) threequarter percent (3/4%) transactions and use tax indefinitely, unless repealed by voters; and

2. Take one of the following actions:
a. Approve the written argument in favor of the Measure as presented and direct staff to submit it to the City Clerk;
b. Approve the written argument in favor of the Measure with revisions and direct staff to submit it to the City Clerk;
c. Reject the written argument and request that the Mayor and Vice Mayor prepare a new argument, which they may submit to the City Clerk by the August 14, 2026 deadline; or
d. Choose not to submit an argument; and

3. Designate the members of the City Council who will sign the written argument in favor of the Measure if the City Council moves forward with an argument; and

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

Motion: Council Member Alcantar Loza motioned to approve the written argument in favor of the Measure as presented and direct staff to submit it to the City Clerk; and designate each member of the City Council to sign the written argument in favor of the Measure, seconded by Council Member Fuentes. Motion passed 5-0 by the following roll call vote:

AYES: Alcantar Loza, Fuentes, Gomez, Lomelí, and Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
D. Adopt Resolution No. 26-35 Ratifying and Authorizing the County of Los Angeles Department of Public Works to Submit an Oil Payment Program (OPP) Grant Application on Behalf of the City of Cudahy
Presented by the Administrative Analyst
Recommendation: The City Council is requested to adopt Resolution No. 26-35 ratifying and authorizing the County of Los Angeles Department of Public Works (County) to submit an Oil Payment Program (OPP) grant application on behalf of the City of Cudahy.

City Council/Successor Agency Minutes of 8/4/2026 Page 17 of 18 Motion: Council Member Gomez motioned to adopt Resolution No. 26-35 ratifying and authorizing the County of Los Angeles Department of Public Works (County) to submit an Oil Payment Program (OPP) grant application on behalf of the City of Cudahy, 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
E. 90-day Report Back Regarding Resolution No. 26-12 Recognizing Child Care as Critical City Infrastructure and a Workforce Development Priority Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to:

1. Receive the 90-day report regarding staff's review of child care-related initiatives pursuant to Section 7 of Resolution No. 26-12; and

2. Direct staff to explore the following and report back at the first meeting in October 2026
a. Partnership opportunities identified by the League of California Cities; and b. Coordinate a meeting with Birthworkers of Color to obtain input on local childcare needs with the Mayor and/or Vice Mayor in the discussion; and c. Inquire with educational institutions about their willingness to offer child development courses at City facilities; and
d. Identify how other cities have successfully secured and received grant funding for child care-related programs and initiatives.

Motion: Council Member Lomelí motioned to approve the recommendation listed in a, b, c, and d, including what was outlined by the Council’s comments (i.e., speaking with the County to find resources, explore all educational programs offered in the City, a family network on the City’s app or City website, and ideas for the survey, surveying the parents, and using the collaborative effectively), 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

City Council/Successor Agency Minutes of 8/4/2026 Page 18 of 18 ABSENT: None
ABSTAIN: None

15. COUNCIL DISCUSSION – NONE
At 10:11 p.m., City Attorney Shelley Preisler recessed to closed session.

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54956.9(d)(4) - Conference with Legal Counsel - Anticipated Litigation – Initiation of Litigation - One Matter B. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter At 10:22 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, first item 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, direction given, no further reportable action; the second item was Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter, all five council members where present for the item, direction given, no further reportable action.

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

Cynthia Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment
B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 1 of 2

STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher Lopez, City Manager/Executive Director John Xie, Finance Director/City Treasurer
Subject: Receive and file the Local Agency Investment Fund (LAIF) report for the Month of August 2026

RECOMMENDATION
The City Council is requested to receive and file the Local Agency Investment Fund (LAIF) Report for the month of August 2026 in the amount of $5,817,840.79.

BACKGROUND

1. In 1955, the Pooled Money Investment Account (PMIA) started. LAIF became part of PMIA. The oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house 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 August 1, 2026, the balance in LAIF was $5,817,840.79 (See Attachment).

4. On August 31, 2026, the balance in LAIF was $5,817,840.79 (See Attachment). The reported balance agrees to the Local Agency Investment Fund account statement issued by the State Treasurer’s Office for the period ending on August 31, 2026.

ANALYSIS
The voluntary program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of billions of dollars, using the investment expertise Item Number
12B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 2 of 2
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
Goal (Financial Stability and Transparency)
• 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
General Account - City #98-19-225
Beginning Balance as of August 01, 2026 $5,817,840.79
LAIF Interest earned 0
Transfer from LAIF to City operating account 0
Transfer from City operating account to LAIF 0
Ending Balance as of August 31, 2026 $ 5,817,840.79
Attachment A Page 33 of 557
Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 1 of 3

STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher Lopez, City Manager/Executive Director By: John Xie, Finance Director/City Treasurer
Subject: Approval of the City Demands and Payroll Including Statement of Cash and Investments for the Month of August 2026

RECOMMENDATION
The City Council is requested to ratify and approve the Demands and Payroll in the amount of $2,451,251.26 and to receive and file the Statement of Cash and Investments for the month of August 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 $2,045,504.55
Payroll $405,746.71
Total: $2,451,251.26
Attachment A
Attachment B
Item Number
12C

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 2 of 3

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 disbursements. Attachment D summarizes cash received and disbursed by month during FY 2026-27, and Attachment E summarizes cash received and disbursed by month during FY 2025-26. Attachment F provides the detail of credit card transactions incurred during July 2026 and paid on August 10, 2026, which are included in the demands presented in Attachment A.

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 2026-27

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10/06/2026 Page 3 of 3
E. Summary of Cash Receipt / Disbursement by Month FY 2025-26 F. Credit Card Payment Detail

9/2/2026 3:56:45 PM Page 1 of 3
Check Report
City of Cudahy By Check Number
Date Range: 08/01/2026 - 08/31/2026
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number Bank Code: WF Checking-WF Checking
2378-3 8330 ATLANTIC AVE INC 08/13/2026 Regular 0.00 1,163.76 58252 11184 Angela Hernandez 08/13/2026 Regular 0.00 25.00 58253 11397 Annel Guillen 08/13/2026 Regular 0.00 200.00 58254 11005 Antonia Ortiz 08/13/2026 Regular 0.00 200.00 58255 0057-4 AT & T 08/13/2026 Regular 0.00 644.40 58256
5924 AVALOS ANDRES 08/13/2026 Regular 0.00 100.00 58257 11385 California Boring, Inc. 08/13/2026 Regular 0.00 6,675.00 58258 0136 CITY OF SOUTH GATE 08/13/2026 Regular 0.00 75.00 58259 9561 COST RECOVERY SYSTEMS 08/13/2026 Regular 0.00 3,750.00 58260 2514-1 COUNTY OF LOS ANGELES DEPT OF AUDITOR - CONTROLLER 08/13/2026 Regular 0.00 542.86 58261 8394 DK SANDLER BROTHERS, Inc. 08/13/2026 Regular 0.00 450.94 58262 10485 ENTERPRISE FM TRUST 08/13/2026 Regular 0.00 4,614.56 58263 10876 Foster & Foster, Inc. 08/13/2026 Regular 0.00 15,000.00 58264 4402 GATEWAY CITIES COUNCIL OF GOVERNMENT 08/13/2026 Regular 0.00 16,752.00 58265 2360 GOLDEN WEST PIPE & SUPPLY 08/13/2026 Regular 0.00 465.08 58266 10874 JCL Traffic Services 08/13/2026 Regular 0.00 1,329.98 58267 11352 KASA Construction Inc. 08/13/2026 Regular 0.00 910,650.65 58268 10394 KEENAN ASSOCIATES 08/13/2026 Regular 0.00 5,000.00 58269 11398 Kwang Hyun Ahn 08/13/2026 Regular 0.00 57.50 58270 0197 LA COUNTY SHERIFF'S DEPARTMENT 08/13/2026 Regular 0.00 1,809.08 58271 10721 LOOMIS 08/13/2026 Regular 0.00 464.46 58272
11119 MG Express 08/13/2026 Regular 0.00 2,800.00 58273 11399 Michelle Silva 08/13/2026 Regular 0.00 47.50 58274 7014 NATIONWIDE ENVIRONMENTAL SERVICES INC 08/13/2026 Regular 0.00 11,595.00 58275 11400 Norma Oronia 08/13/2026 Regular 0.00 200.00 58276 11401 Occupational Helat Centers of CA 08/13/2026 Regular 0.00 249.00 58277 10436 ONTARIO REFRIGERATION 08/13/2026 Regular 0.00 2,848.00 58278 11402 Rose Equipment Repair, Inc. 08/13/2026 Regular 0.00 2,447.92 58279 11174 Simgel Co, Inc. 08/13/2026 Regular 0.00 89,965.00 58280 11082 TERESA CONTRERAS 08/13/2026 Regular 0.00 25.00 58281 8066 TYLER TECHNOLOGIES INC. 08/13/2026 Regular 0.00 46,028.65 58282 2859 UNDERGROUND SERVICE ALERT-SC SOUTHERN CALIFORNIA 08/13/2026 Regular 0.00 77.35 58283 11331 Williams Scotsman, Inc. 08/13/2026 Regular 0.00 2,993.45 58284 2378-3 8330 ATLANTIC AVE INC 08/27/2026 Regular 0.00 1,188.85 58285 11036 ACC Business 08/27/2026 Regular 0.00 444.63 58286 11405 Alex Gutierrez 08/27/2026 Regular 0.00 57.50 58287 11406 Amanda Luna 08/27/2026 Regular 0.00 100.00 58288
10680 AMERICAN PRIDE BUILDERS 08/27/2026 Regular 0.00 50,358.55 58289 10896 Anaheim Lawnmower Shop 08/27/2026 Regular 0.00 134.69 58290 10595 ARAMSCO INC 08/27/2026 Regular 0.00 3,322.98 58291 9966 AT & T LONG DISTANCE SERVICE 08/27/2026 Regular 0.00 52.06 58292 10398 CALIFORNIA BUILDING STANDARDS COMMISSION08/27/2026 Regular 0.00 1,455.30 58293 10871 California Department of Conservation 08/27/2026 Regular 0.00 5,386.61 58294 10520 CASTRO DISCOUNT TIRES INC 08/27/2026 Regular 0.00 40.00 58295 11121 Cinthia Macias 08/27/2026 Regular 0.00 100.00 58296 2289 CONSOLIDATED DISPOSAL INC. 08/27/2026 Regular 0.00 273,752.79 58297 10872 CSLM Construction, Inc. 08/27/2026 Regular 0.00 1,290.00 58298 5552 CUDAHY AUTO CENTER 08/27/2026 Regular 0.00 382.28 58299 10784 Elvira Medina Hernandez 08/27/2026 Regular 0.00 160.00 58300 11407 Emily Garcia 08/27/2026 Regular 0.00 47.50 58301
11305 EPD Solutions, Inc. 08/27/2026 Regular 0.00 330.00 58302 10581 FIESTA TAXI COOPERATIVE INC. 08/27/2026 Regular 0.00 38,635.45 58303 6087 FIRST AMERICAN DATA TREE 08/27/2026 Regular 0.00 99.00 58304 11408 Japhet Stevens 08/27/2026 Regular 0.00 57.50 58305 Attachment A Page 38 of 557
Check Report Date Range: 08/01/2026 - 08/31/2026
9/2/2026 3:56:45 PM Page 2 of 3
Vendor Number Vendor Name Payment Date Payment Type Discount Amount Payment Amount Number 11409 Jorge Maldonado 08/27/2026 Regular 0.00 25.00 58306 0197 LA COUNTY SHERIFF'S DEPARTMENT 08/27/2026 Regular 0.00 405,902.88 58307 11108 LA Regional Ineroperable Communication System Authority 08/27/2026 Regular 0.00 80.00 58308 10868 Language Network, Inc. 08/27/2026 Regular 0.00 2,026.56 58309 10567 MCA DIRECT 08/27/2026 Regular 0.00 991.06 58310
11399 Michelle Silva 08/27/2026 Regular 0.00 47.50 58311 7014 NATIONWIDE ENVIRONMENTAL SERVICES INC 08/27/2026 Regular 0.00 11,667.48 58312 11023 RCX Sports 08/27/2026 Regular 0.00 8,186.12 58313 11410 Rejino Nieves Jimenez 08/27/2026 Regular 0.00 200.00 58314 11411 Robert Mai 08/27/2026 Regular 0.00 47.50 58315
11412 Rosa Sierra 08/27/2026 Regular 0.00 200.00 58316
11413 Sara Sanchez 08/27/2026 Regular 0.00 59.37 58317
11146 Sipra Corporation 08/27/2026 Regular 0.00 4,924.87 58318 11390 Western Fence & Supply Co, INc. 08/27/2026 Regular 0.00 4,954.89 58319 10603 ADVANCED IMAGING SOLUTIONS 08/12/2026 Bank Draft 0.00 455.26 DFT0001583 10640 AMAZON CAPITAL SERVICES, INC. 08/12/2026 Bank Draft 0.00 474.16 DFT0001584 0059-2 CALPERS FINANCIAL REPORTING & 08/12/2026 Bank Draft 0.00 38,717.25 DFT0001585 2724 HOME DEPOT CREDIT SERVICES 08/12/2026 Bank Draft 0.00 3,140.19 DFT0001586 10598 LEAF 08/12/2026 Bank Draft 0.00 559.14 DFT0001587 2802 SAM'S CLUB 08/12/2026 Bank Draft 0.00 40.98 DFT0001588 0070 SOUTHERN CALIFORNIA EDISON 08/12/2026 Bank Draft 0.00 65.61 DFT0001589 0070 SOUTHERN CALIFORNIA EDISON 08/12/2026 Bank Draft 0.00 23.41 DFT0001590 0070 SOUTHERN CALIFORNIA EDISON 08/12/2026 Bank Draft 0.00 12,258.65 DFT0001591 0070 SOUTHERN CALIFORNIA EDISON 08/12/2026 Bank Draft 0.00 56.92 DFT0001592 0070 SOUTHERN CALIFORNIA EDISON 08/12/2026 Bank Draft 0.00 3,694.80 DFT0001593 11403 California Dept of Tax & Fee Administration 08/12/2026 Bank Draft 0.00 4,280.84 DFT0001594 10729 WELLSONE COMMERCIAL CARD 08/10/2026 Bank Draft 0.00 13,964.51 DFT0001595 10490 CHARTER COMMUNICATIONS 08/27/2026 Bank Draft 0.00 319.99 DFT0001600 10490 CHARTER COMMUNICATIONS 08/27/2026 Bank Draft 0.00 986.06 DFT0001601 10490 CHARTER COMMUNICATIONS 08/27/2026 Bank Draft 0.00 229.99 DFT0001602 10490 CHARTER COMMUNICATIONS 08/27/2026 Bank Draft 0.00 229.99 DFT0001603 10053 HAULAWAY STORAGE CONTAINERS 08/27/2026 Bank Draft 0.00 89.04 DFT0001604 2724 HOME DEPOT CREDIT SERVICES 08/27/2026 Bank Draft 0.00 2,119.10 DFT0001605 0071-1 SO CAL GAS 08/27/2026 Bank Draft 0.00 92.41 DFT0001606 0071-1 SO CAL GAS 08/27/2026 Bank Draft 0.00 36.64 DFT0001607 0071-1 SO CAL GAS 08/27/2026 Bank Draft 0.00 121.07 DFT0001608 0070 SOUTHERN CALIFORNIA EDISON 08/27/2026 Bank Draft 0.00 47.65 DFT0001609 0070 SOUTHERN CALIFORNIA EDISON 08/27/2026 Bank Draft 0.00 6,036.82 DFT0001610 0070 SOUTHERN CALIFORNIA EDISON 08/27/2026 Bank Draft 0.00 4,359.42 DFT0001611 0070 SOUTHERN CALIFORNIA EDISON 08/27/2026 Bank Draft 0.00 6,302.17 DFT0001612 0070 SOUTHERN CALIFORNIA EDISON 08/27/2026 Bank Draft 0.00 846.42 DFT0001613 Regular Checks
Manual Checks
Voided Checks
Discount
Payment
Payment Type Count
Bank Code WF Checking Summary
Bank Drafts
EFT's
68 0
0 27
0 0.00

0.00 0.00

0.00 0.00
95 0.00
Payment
1,945,956.06

0.00 0.00
99,548.49

0.00 2,045,504.55
Payable
Count
85 0
0 29
0 114

Check Report Date Range: 08/01/2026 - 08/31/2026
9/2/2026 3:56:45 PM Page 3 of 3
All Bank Codes Check Summary
Payment Type Discount
Payment
Count Payment
Payable
Count
Regular Checks
Manual Checks
Voided Checks
Bank Drafts
EFT's
68 0
0 27
0 0.00

0.00 0.00

0.00 0.00
95 0.00
1,945,956.06

0.00 0.00
99,548.49

0.00 2,045,504.55
85 0
0 29
0 114
Fund Name Period Amount
Fund Summary
998 Pooled Cash 8/2026 2,045,504.55
2,045,504.55

08/10/26 08/31/26 Total
Payroll Check Issued $ 948.68 $ 849.48 $ 1,798.16
(a) Direct Deposits 119,344.12 113,129.54 232,473.66
ICMA & Union Dues - - -
CalPERS Ret & 457 Plan 23,941.83 23,408.54 47,350.37
Payroll taxes 22,101.63 21,297.70 43,399.33
CalPERS Medical 73,029.86 - 73,029.86
Employee Benefits 3,781.18 3,914.15 7,695.33
Total Amount $ 243,147.30 $ 162,599.41 $ 405,746.71
-
(a) Employees / Council Members / Commissioners

CITY OF CUDAHY
Payroll - including payroll taxes and insurance premiums:

Attachment B Page 41 of 557
Type Institution Amount % of Total
City Pooled Cash and investments
Deposit - 4588 Wells Fargo $ 1,505,163.75 11.36%
Checking - 7128 Wells Fargo 1,261,885.34 9.52%
Payroll - 4570 Wells Fargo 300,006.57 2.26%
Pooled Savings State Local Agency 5,817,840.79 43.91%
Investment Fund (LAIF)
8,884,896.45 67.05%
Successor Agency (Not Available for City Operations)
Money Market Account Bank of New York (BNY) 9,720.39 0.07% Successor Agency - 0688 Wells Fargo 4,356,127.15 32.87% 4,365,847.54
Total $ 13,250,743.99 100.00%
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

CITY OF CUDAHY
Statement of Cash and Investments
August 31, 2026
Attachment C Page 42 of 557
Month
Receipts Disbursement
July 2026 $ 1,327,479.36 $ 2,843,337.25 (a)
August 2026 1,334,145.16 2,451,251.26 (b)
September 2026
October 2026
November 2026
December 2026
January 2027
February 2027
March 2027
April 2027
May 2027
June 2027
Total: $ 2,661,624.52 5,294,588.51
Note (a) - $539,401 to KASA Construction, $679,797 to Keenan for Insurance Policies Note (b) - $910,650 paid to KASA Construction
Month
Receipts Disbursement
July 2026 $ 813,586.82 $ 2,038,002.40 (1)
August 2026 774,933.12 1,232,051.27
September 2026
October 2026
November 2026
December 2026
January 2027
February 2027
March 2027
April 2027
May 2027
June 2027
Total: $ 1,588,519.94 $ 3,270,053.67
Note (1) - $679,797 to Keenan for Insurance Policies

ALL FUNDS

GENERAL FUND
City of Cudahy
Summary of Cash Receipts/Disbursements by Month - FY 2026-2027 Attachment D Page 43 of 557
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 (a) - Capital Project $1.573M, Sheriff $1.186M (3 months) Keenan (Ins), and CalPERS Unfunded Liability $641K.

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
Receipts Disbursement
July 2025 $ 481,146.70 $ 3,109,340.64 (a)
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 (a) - Sheriff $1.186M (3 months) Keenan (Ins), and CalPERS Unfunded Liability $641K.

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
City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2025-2026 All Funds
General Fund
Attachment E Page 44 of 557
Supplier - Name Transaction - Line Amount G/L Acct
Baker Party Rentals 3,544.63 Chair rental for the Independence event 7/3/26 Apa California 1,600.00 Conference Registration for APA Conference Zoom.Com 888-799-9666 968.69 Zoom Annual Subscription for City Council Meetings.

Marriott Waterfront 693.82 Local Progress 2026 National Convening in Baltimore, MD.

Amazon Mktpl 666.52 Youth soccer balls, cones, ballet bars for ballet class Stapls0239122265000001 597.85 Office Supplies
Adobe *800-833-6687 574.63 Adobe subscription for City staff Vivint Inc/Us 562.92 Alarm for City facilities
Minionsicecream 515.00 Ice cream truck for Youth Baseball Awards Day Msft * E030104f0f 450.40 Subscription
Msft * E030104eho 400.27 Subscription
California Municipal C 300.00 Training and Education
Ferguson Ent 1456 288.77 Park Maintenance & Supplies
Sq *agua Y Salud 256.00 Water
Lees Bbq & Boba 226.53 Travel and meetings
Autozone #5371 208.71 Vehicle Maintenance
Amazon.Com*6e3qm6n53 193.80 Sports Equipment
Swa*excs_bag 180.00 Travel and meetings
Full Source, Llc 170.15 Uniforms
Samsclub.Com 163.50 Office Supplies
Conchitas Pupuseria 161.78 Travel and meetings
Volleyballusacom 157.58 Recreation Supplies
Iimc 135.00 Special Event
Penske Toyota Downey 133.04 Travel and meetings
Eb *2026 Yeo National 129.89 Travel and meetings
U-Haul At Atlantic Ave 102.53 Office Supplies
The Home Depot 6627 93.87 Recreation Supplies
Cudahy Sinclair 80.00 Gasoline
The Ups Store 5391 79.00 Subscription
The Home Depot #6627 55.23 Office Supplies
76 - Dba Shabod Naiem 51.95 Gasoline
Business.Apple.Com 48.51 Subscription
Chick-Fil-A #04415 44.17 Travel and meetings
Pilgrim Fence Co 37.13 Property Maintenance
Msft * E030104f0u 36.00 Subscription
Arco 902273 30.21 Food Distribution
Peacock B8af2 Premplus 16.99 Subscription
Google *youtubepremium 15.99 Subscription
Michaels Stores 1229 13.94 Office Supplies
Paypal 10.00 Travel and meetings
Msft * E030104g2u 8.00 Subscription
Dispute-Sei*worldsoccersh (38.49) Miscellaneous expense 13,964.51

CITY OF CUDAHY
Credit Card Payment Detail
Jul 01, 2026 to Jul 31, 2026 paid on Aug 10, 2026

Attachment F Page 45 of 557
Blank Page

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 1 of 2

STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director John Xie, Director of Finance/City Treasurer
Estefania Zamora, Assistant to the City Manager
Subject: Business License Tax, Processing Fee Waiver, and Payment of State Disability Access Fees for Vendors Participating in the City’s Pilot Night Market “Cudahy Mercadito”

RECOMMENDATION
The City Council is requested to adopt Resolution No. 26-41 Authorizing a Waiver of the Business License Tax, Processing Fee and Payment of the State Disability Access Fee for All Vendors Participating in the City’s Pilot Night Market “Cudahy Mercadito.”

BACKGROUND
The City of Cudahy is preparing for its first-ever Night Market, a new community event focused on food, art, culture, and local businesses. The event will provide residents with an opportunity to gather, support local businesses, and enjoy entertainment in a familyfriendly setting. The Night Market, “Cudahy Mercadito,” is scheduled for Friday, October 16, 2026, at Clara Park, and staff is anticipating approximately 20 vendors for the event.

ANALYSIS
As this is the City's first Night Market, the City is hoping to encourage local businesses and vendors to participate while evaluating the success and community interest in the event. Waiving the business license tax along with the $30 processing fee and paying the state disability access Fee would help reduce the cost for vendors and encourage participation in this event.

Under Cudahy Municipal Code (CMC) Sections 5.04.150(6) and 5.04.180(3), the Director of Finance, in consultation with the City Attorney and City Manager, may issue business licenses for shorter periods for a defined class of licenses, and adopt rules to administer them. The Director of Finance has established a one-day business license Item Number
12D

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 2 of 2
classification limited to Night Market vendors. The CMC does not, however, authorize the Director of Finance to reduce, waive, or modify the business license tax. City Council action is therefore required to waive the tax for this event.

The waiver applies only to the City business license tax and the $30 business license processing fee. The $4 state disability access fee required by Government Code Section 4467 cannot be waived; the City would instead cover the cost on behalf of each vendor. However, vendors remain responsible for obtaining all other required permits, including any Los Angeles County Department of Public Health temporary food facility permit and California Department of Tax and Fee Administration seller’s permit.

The proposed waiver would apply only to vendors participating in the Pilot Night Market on Friday, October 16, 2026, and would not create a general exemption from the City's business license requirements or taxes or fees on any other day.

CONCLUSION
If approved, Resolution No. 26-41 would authorize the City to issue one-day business licenses to qualifying vendors and waive the business license tax and processing fee for those licenses. This Resolution would also allow the City to pay the $4 state disability access fee on each vendor’s behalf.

The waiver would only apply to the Pilot Night Market “Cudahy Mercadito” and would expire immediately after the event unless the City Council takes further action.

STRATEGIC PLAN CORRELATION
None.

FINANCIAL IMPACT
The Night Market is a new event, and no business license tax revenue from it is included in the FY 2026-27 Budget. Participating vendors would otherwise pay the $50 annual business license tax for businesses without a fixed place of business in the City (CMC Section 5.08.800) or the minimum tax under CMC Section 5.04.330, plus the $30 processing fee, for a total of $80 per vendor. The City would also pay the $4 State disability access fee for each vendor. The financial impact will depend on the number of vendors participating in the event and the amount of business license tax and processing fee waived.

ATTACHMENTS
A. Resolution No. 26-41

RESOLUTION NO. 26-41

A RESOLUTION OF THE CITY OF CUDAHY, CALIFORNIA,

AUTHORIZING A WAIVER OF THE BUSINESS LICENSE TAX,

BUSINESS LICENSE PROCESSING FEE, AND PAYING THE STATE

DISABILITY ACCESS FEE FOR ALL VENDORS PARTICIPATING IN
THE CITY’S PILOT NIGHT MARKET, “CUDAHY MERCADITO,” ON
FRIDAY, OCTOBER 16, 2026
WHEREAS, the City of Cudahy (“City”) is a general law city, incorporated under the laws of the State of California, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws;
WHEREAS, the City is authorized to establish and administer business licenses requirements pursuant to Chapters 5.04 and 5.08 of the Cudahy Municipal Code (“CMC”); and
WHEREAS, CMC Section 5.04.150(6) allows the Director of Finance, in consultation with the City Attorney and City Manager, to adopt additional rules, regulations, and conditions related to the issuance of certain licenses, as necessary; and
WHEREAS, CMC Section 5.04.180(3) authorizes the Director of Finance issue licenses for shorter or longer periods, for any licensee or class of licensees, when necessary or desirable to ensure collection of the tax or to increase the efficiency of its administration; and
WHEREAS, on Friday, October 16, 2026, the City will conduct a Pilot Night Market known as “Cudahy Mercadito” (“Pilot Night Market”); and WHEREAS, the Pilot Night Market will be a City-sponsored event intended to provide an opportunity for local businesses and vendors to participate in a community marketplace; and
WHEREAS, the Director of Finance, in consultation with the City Attorney and City Manager have determined that, pursuant to CMC Sections 5.04.150(6) and

5.04.180(3), a one-day business license classification may be established for vendors participating in the Pilot Night Market; and
WHEREAS, the Cudahy Municipal Code does not authorize a waiver or modification of the business license taxes imposed pursuant to CMC Sections

5.04.330 and 5.04.340; and
Attachment A Page 49 of 557
Resolution No.26-41

WHEREAS, the City Council has expressed interest in waiving the business license tax, business license processing fee, and paying the state disability access fee for all vendors participating in the Pilot Night Market; and WHEREAS, the City Council believes the waiver of the business license tax and processing fee and paying the state disability access fee on their behalf, serves a public purpose by reducing the cost of participation for small and local businesses, supporting local economic activity, and encouraging community participation in a City sponsored event; and
WHEREAS, this business license tax waiver will be limited to the Pilot Night Market on Friday, October 16, 2026, only and shall not constitute a general exemption from the City's business license requirements or business license taxes at any other location besides the Pilot Night Market.

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 Director of Finance to establish and administer a one-day business license classification for all vendors participating in the City’s Pilot Night Market “Cudahy Mercadito,” on Friday, October 16, 2026, pursuant to CMC Sections 5.04.150(6) and 5.04.180(3).

SECTION 2. The City Council hereby waives the business license tax and the business license processing fee applicable to all vendors who shall be issued a oneday business license solely for participation in the Pilot Night Market “Cudahy Mercadito,” on Friday, October 16, 2026. The waiver authorized by this Section shall apply only to the Pilot Night Market identified in this Resolution and shall not constitute a waiver, reduction, exemption, or modification of the business license tax or processing fee for any other event, activity, licensee, or class of licensees on any other day. This waiver does not affect any annual business license held by a vendor and does not entitle any person to a refund of any business license tax or fee previously paid. The state disability access fee required by California Government Code Section 4467 is not waived; the City shall pay that fee on behalf of each vendor who are issued the one-day business license as outlined in this section.

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 6
th day of October 2026.

Resolution No.26-41

__
Cynthia Gonzalez
Mayor
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. 26-41 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 6
th day of October 2026 and that said
Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Richard Iglesias
City Clerk

Blank Page

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STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director John Xie, Director of Finance/City Treasurer
Subject: Adoption of Resolution No. 26-42 Ratifying Payments Made in Excess of Contract Not-to-Exceed Amounts, Authorization of Expenditures in Excess of Contract Amounts, and Appropriation of Funds for Outstanding Invoices — Willdan Engineering, West Coast Arborists, Inc., Yunex LLC, and Nationwide Environmental Services

RECOMMENDATION
The City Council is requested to adopt Resolution No. 26-42:

1. Ratify payments totaling $262,050.25 previously made to Willdan Engineering, West Coast Arborists, Inc., Yunex LLC, and Nationwide Environmental Services in excess of each agreement's approved not-to-exceed (NTE) amount, or without an executed agreement;

2. Authorize expenditures of $48,674.80 in excess of contracted not-to-exceed amounts, including services rendered by Yunex LLC without an executed agreement, and authorize payment of outstanding invoices totaling $63,867.80 to Willdan Engineering, West Coast Arborists, Inc., and Yunex LLC;

3. Adopt Resolution No. 26-42, amending the Fiscal Year 2025-26 Budget to appropriate $63,867.80 from the funds identified in the Financial Impact section; and

4. Authorize the City Manager to execute any documents necessary to carry out these actions, in a form approved by the City Attorney.

This action does not include Transtech related items. Payments to Transtech are not ratified or authorized by this item and will be addressed separately.

BACKGROUND
Item Number
12E

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Upon assuming office in January 2026, the City Manager identified the need for a comprehensive review of the City's financial and management controls, including procurement practices, contract administration, budgetary controls, capital commitments, and related financial systems.

The need for this review was not based on a single transaction or isolated issue. Early review identified circumstances requiring a broader examination of how the City authorized expenditures, administered contracts, monitored available funding, and communicated financial obligations to the City Council.

Given the importance and complexity of this work, the City Manager determined that the assessment should be conducted in coordination with dedicated financial leadership. Following the appointment of the Finance Director in May 2026, the Finance Department initiated a structured review of the City's financial control environment.

The resulting 90-Day Financial Synopsis, presented to the City Council in August 2026, identified several weaknesses in the City's financial control environment. Among other matters, the assessment identified payments made beyond Council approved contract amounts, services performed without executed agreements, and weaknesses in purchase order and encumbrance controls.

Specifically, Finding A identified payments made in excess of Council-approved notto-exceed amounts. Finding F identified the absence of purchase order encumbrances tied to contract ceilings, which allowed invoices to be processed without an effective system check against remaining contract authority.

The issues identified through that assessment have prompted additional reviews of the City's contracts, expenditures, capital improvement projects, funding sources, and financial practices.

These subsequent reviews have reinforced that the issues identified in the 90-Day Financial Synopsis were not isolated technical matters. Rather, they are part of a broader historical pattern in which contract commitments, expenditures, capital projects, and available funding were not always sufficiently aligned or visible through the City's financial management processes.

Many of the conditions being addressed predate the current City Manager, current Finance Director, and current management team responsible for these functions.

Several employees and managers who were responsible for departments and functions during the period in which these practices occurred are no longer employed by the City.

The purpose of identifying these historical conditions is not to assign fault to individual former employees. It is to provide the City Council with a clear and accurate understanding of the financial and operational environment that the current administration inherited and the corrective work required to address it.

Importantly, the current administration has also identified circumstances in which the Council was not provided with a consolidated view of the City's financial exposure,

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funding constraints, contract obligations, or operational risks at the time those conditions developed. Council may have approved individual projects, contracts, budgets, or expenditures based on the information presented at the time. The subsequent identification of funding gaps, contract exceptions, or control deficiencies does not necessarily mean that the Council was aware of the full extent of those conditions when prior decisions were made.

The City's approach is therefore to bring these matters forward transparently as they are identified, quantify the City's exposure, obtain the appropriate Council actions, and establish systems that provide the Council with better information before future commitments are made.

This report represents one component of that continuing effort.

ANALYSIS
As a follow-up to the 90-Day Financial Synopsis, Finance staff completed a contractby-contract analysis comparing each agreement's approved NTE to payments made to date and to invoices received but not yet paid.

The review identified $262,050.25 in payments that had been made above approved contract authority or without an executed agreement. The review also identified $63,867.80 in outstanding invoices for services already rendered, of which $48,674.80 exceeds existing contract authority.

Under the City's purchasing policies, payments above an approved contract amount require City Council approval. This item therefore seeks three distinct forms of Council action:
• Ratification of payments that have already occurred
• Authorization for additional expenditures necessary to pay for services already received
• Appropriation of the funds necessary to record and pay the outstanding obligations These actions are intended to resolve known historical exceptions and establish a clear record of the City's obligations.

Contract Expenditure Summary
Vendor Service Approved
NTE
Paid to Date Ratify —
Paid Above
NTE
Outstandi
ng to Pay
Willdan
Engineering
Interim
Building
Official &
Interim
Engineering
$10,000.00 $36,059.31 $26,059.31 $8,565.00
Willdan
Engineering
NPDES
Compliance
$50,000.00 $34,807.00 $0.00 $17,984.00

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(LAR-UR2)
West Coast
Arborists,
Inc.

Tree
Trimming
$60,000.00 $114,386.20 $54,386.20 $7,921.05
Yunex LLC Traffic Signal
& Streetlight
Maintenance
No
agreement
$166,958.13 $166,958.13 $29,397.75
Nationwide
Environmen
tal Services
Street
Sweeping
$130,000.00 $144,646.61 $14,646.61 $0.00
Total $250,000.00 $496,857.25 $262,050.25 $63,867.80
Paid-to-date and outstanding amounts are based on Finance's contract analysis, with outstanding balances as of June 2026.

Willdan Engineering — Interim Building Official and Engineering Amendments extended the term and scope of services, but the NTE was not increased from $10,000. Payments totaling $36,059.31 therefore exceed the NTE by $26,059.31.

An additional $8,565.00 remains unpaid.

The issue illustrates one of the control weaknesses identified in the 90-Day Financial Synopsis: changes to the scope or term of a contract were not consistently accompanied by a corresponding review and adjustment of the authorized contract ceiling.

Willdan Engineering — NPDES Compliance
Payments to date of $34,807.00 remain within the $50,000 NTE, including $7,878.25 of FY 2024-25 work paid in July 2025.

Payment of the $17,984.00 outstanding balance would bring total payments to $52,791.00, or $2,791.00 above the NTE. Council authorization is therefore requested for that amount.

The remaining $15,193.00 of the outstanding invoices is within the existing NTE.

West Coast Arborists, Inc. — Tree Trimming
Payments totaling $114,386.20 exceed the $60,000 NTE by $54,386.20. An additional $7,921.05 remains outstanding and is charged to the General Fund.

Yunex LLC — Traffic Signal and Streetlight Maintenance
Traffic signal and streetlight maintenance services were performed without an executed agreement. Accordingly, the full $166,958.13 previously paid is presented for Council ratification.

Services from Yunex have been discontinued, and $29,397.75 in invoices for services

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already performed remains unpaid.

This circumstance is among the clearest examples of the type of contract administration issue identified through the City's financial assessment. Going forward, services requiring an agreement will not be authorized without an executed agreement and appropriate funding authority.

Nationwide Environmental Services — Street Sweeping
The amendment changed the scope, term, and CPI adjustments, but the NTE was not increased from $130,000. Payments totaling $144,646.61 therefore exceed the original NTE by $14,646.61.

The excess consists of FY 2024-25 services paid in July. Measured against the CPIadjusted NTE of $134,061.96, the excess would be smaller. However, for transparency and clarity, staff recommends ratification of the full $14,646.61.

No invoices are currently outstanding.

BROADER FINANCIAL MANAGEMENT CONTEXT
The individual transactions identified in this report should be viewed in the context of the City's broader financial condition and the findings of the 90-Day Financial Synopsis.

The City has identified multiple circumstances in which expenditures, contractual commitments, capital projects, and available funding were not sufficiently integrated into the City's financial management process.

This includes:
• Contract expenditures exceeding approved NTE amounts
• Services being provided without executed agreements
• Contract amendments that changed scope or term without corresponding adjustments to NTE amounts
• Weak purchase order and encumbrance controls
• Budgetary and appropriation issues identified through the financial assessment • Capital improvement projects for which complete funding has not been identified; • Historical use of restricted funding sources that has contributed to current fund pressures
• Financial information and funding constraints that were not always presented to the City Council in a consolidated manner
The City's review of its Capital Improvement Program has separately identified projects for which additional funding is required to complete previously approved or initiated work. Staff will provide additional updates regarding other CIP projects and their respective funding issues as those reviews are completed.

The recurrence of these issues across different areas of City operations demonstrates

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the need to address the underlying management and financial control environment rather than treating each matter as an isolated exception.

The City inherited these conditions. The current administration is undertaking the work necessary to identify them, quantify their financial impact, bring them before the Council, and correct the underlying processes.

This approach is intended to ensure that historical conditions are not carried forward without disclosure or corrective action.

It is also important to distinguish between Council authorization and Council visibility.

The fact that the Council previously authorized individual projects, contracts, or expenditures does not necessarily mean that the Council was provided with complete information concerning subsequent funding gaps, cumulative expenditures, contract exposure, or other financial risks.

One of the objectives of the current administration's financial reform effort is therefore to improve the information available to the Council so that future decisions are made with a more complete understanding of the City's financial position and the long-term implications of its commitments.

The City Manager considers this transparency essential to restoring confidence in the City's financial management practices.

FINANCIAL IMPACT
The recommended appropriation is $63,867.80 in FY 2025-26.

The outstanding invoices are for services received on or before June 30, 2026, and were not accrued at year-end. Because the FY 2025-26 books remain open, staff will record the obligations as FY 2025-26 expenditures and accounts payable, supported by this budget amendment.

Ratification of the $262,050.25 previously paid has no additional budget impact because those payments were recorded in prior periods.

Vendor / Service Fund Account Appropriation
Willdan — Building Official &
Engineering
100 General
Fund
4216-
6745
$8,565.00
Willdan — NPDES Compliance 258 Measure
W
7134-
6720
$17,984.00
West Coast Arborists — Tree
Trimming
100 General
Fund
4410-
6785
$7,921.05
Yunex — Traffic Signal &
Streetlight Maintenance
100 General
Fund
4216-
6720
$29,397.75
Total $63,867.80
Of the total, $45,883.80 is a General Fund impact and $17,984.00 is funded from restricted sources. Restricted fund charges have been reviewed for eligibility under

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each funding source's allowable uses.

The appropriation provides budget authority only; it does not provide cash. The General Fund portion will reduce General Fund fund balance by $45,883.80. The General Fund does not currently hold unrestricted cash sufficient to pay these invoices. Payment timing will be managed consistent with the City's cash position and applicable restrictions on the use of restricted funds.

Staff considered charging the Yunex and West Coast Arborists invoices to the Gas Tax Fund, where similar street maintenance costs have historically been charged. The Gas Tax Fund is currently in a deficit position, and prior contract payments charged to it, including street sweeping and tree trimming, have contributed to that deficit.

Because any deficit in the Gas Tax Fund must ultimately be addressed by the General Fund, charging these invoices to the General Fund presents their full cost transparently rather than transferring additional pressure to a fund that is already in a deficit position.

Addressing the Gas Tax Fund deficit will be part of the City's broader fiscal recovery efforts.

CORRECTIVE ACTIONS
The City has implemented and is continuing to implement controls designed to prevent recurrence of the issues identified through the 90-Day Financial Synopsis and the subsequent contract review.

1. Contract Encumbrances
Every agreement is now encumbered on a purchase order in Tyler ERP at its Councilapproved NTE. Budget controls are being used to prevent payment once the authorized ceiling has been reached.

2. Citywide Contract Inventory
Finance is establishing a centralized contract inventory that tracks each agreement's:
• Approved NTE
• Term
• Amendments
• Expenditures
• Remaining contract authority
• Other material contract information
Finance will reconcile contract balances on a regular basis.

3. Contract Amendments
Amendments that change scope, term, or compensation must identify the resulting

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revised NTE. Any increase above the City Manager's delegated authority will return to the City Council for approval before additional work is authorized.

4. Executed Agreements
Services requiring a contract may not be authorized without an executed agreement and appropriate funding authority.

Services previously provided without an agreement, including traffic signal and streetlight maintenance, will be procured under an executed agreement before such work is authorized in the future.

5. Council Transparency
Management will continue to bring identified historical financial exceptions, material funding gaps, significant contract issues, and other matters affecting the City's financial position to the City Council for consideration rather than allowing those issues to remain embedded in departmental operations.

6. Capital Project Funding
Staff is reviewing the City's CIP portfolio to identify projects where the funding necessary to complete the project has not been fully secured or where existing commitments create a funding gap.

Staff will provide additional updates to the City Council regarding other CIP projects and their respective funding issues as those reviews are completed.

CONCLUSION
This report represents a direct follow-up to the City's 90-Day Financial Synopsis and is part of a broader effort to correct financial and management practices inherited by the current administration.

The City has identified historical obligations and control deficiencies that require corrective action. Some of these matters involve expenditures that occurred before the current administration assumed responsibility, and many of the employees and managers responsible for the affected functions are no longer with the City.

Rather than allowing these historical conditions to remain unresolved or addressing them individually without broader context, the current administration is bringing them forward, quantifying their impact, seeking the Council's authorization where required, and implementing controls designed to prevent recurrence.

The objective is not simply to reconcile historical transactions. It is to establish a management environment in which:
• expenditures are supported by appropriate authorization

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• contracts are monitored against approved limits
• projects are matched to identified funding
• restricted funds are used appropriately
• budget authority is maintained
• financial risks are identified before they become obligations • the City Council receives timely and complete information necessary to exercise its oversight responsibilities
The circumstances identified through the 90-Day Financial Synopsis, this contract review, and the City's ongoing CIP and fiscal reviews demonstrate the importance of these reforms.

The City inherited financial and management practices that require significant correction. The current administration's responsibility is to make those conditions visible, address them directly, and establish the systems necessary to ensure that the same problems are not carried forward.

STRATEGIC PLAN CORRELATION
Goal D (Financial Stability and Transparency), Objective:

4. Ensure internal financial controls are in place and regularly monitored.

ATTACHMENTS
A. Resolution No. 26-42 – Amending the Fiscal Year 2025-26 Budget B. Willdan – Agreement
C. Willdan – NPDES Compliance Service Agreement
D. West Coast Arborists – Tree Trimming Services
E. Nationwide Environmental Services – Street Sweeping Agreement and Amendment F. 90 Day Financial Report

RESOLUTION NO. 26-42

A RESOLUTION OF THE CUDAHY CITY COUNCIL APPROVING AN
APPROPRIATION OF $63,867.80 FROM THE GENERAL FUND AND
MEASURE W FUND TO THE FISCAL YEAR 2025-26 BUDGET FOR

OUTSTANDING CONTRACT SERVICES INVOICES AND AUTHORIZING THE

FINANCE DIRECTOR TO MAKE THE NECESSARY BUDGET

ADJUSTMENTS
WHEREAS, the City of Cudahy (“City”) has identified outstanding invoices totaling $63,867.80 from Willdan Engineering, West Coast Arborists, Inc., and Yunex LLC for services received on or before June 30, 2026; and
WHEREAS, the City previously entered into agreements with Willdan Engineering for interim building official and engineering services with a not-to-exceed (“NTE”) amount of $10,000.00 and for NPDES compliance services with an NTE amount of $50,000.00, and with West Coast Arborists, Inc. for tree trimming services with an NTE amount of $60,000.00, and Yunex LLC provided traffic signal and streetlight maintenance services without an executed agreement; and
WHEREAS, additional funding in the amount of $63,867.80 is necessary to pay these outstanding invoices, which were not accrued at fiscal year-end and will be recorded as Fiscal Year 2025-26 expenditures while the Fiscal Year 2025-26 books remain open; and
WHEREAS, the General Fund portion of $45,883.80 will be charged against General Fund fund balance, and the Measure W portion of $17,984.00 is for NPDES stormwater compliance, an eligible use of Measure W funds; and WHEREAS, concurrently with the adoption of this Resolution, the City Council is ratifying payments totaling $262,050.25 made to these vendors and Nationwide Environmental Services in excess of contract NTE amounts or without an executed agreement, and authorizing expenditures of $48,674.80 in excess of contract NTE amounts to pay the outstanding invoices; and
WHEREAS, it is recommended that the City Council approve an appropriation of $63,867.80 from the General Fund and the Measure W Fund to the Fiscal Year 2025-26 Budget for the payment of these outstanding invoices; and WHEREAS, the City Council desires to authorize the Finance Director, or designee, to make the necessary budget adjustments and appropriations to implement the funding authorized by this Resolution.

NOW, THEREFORE, the City Council of the City of Cudahy hereby finds, determines, declares, orders and resolves as follows:

Section 1. The City Council hereby approves an appropriation of $63,867.80 to the Fiscal Year 2025-26 Budget from the General Fund (Fund 100) and the Measure W Attachment A Page 62 of 557
Resolution No. 26-42

Fund (Fund 258) for the payment of outstanding contract services invoices, as set forth below, in accordance with the City’s adopted budget and applicable funding requirements:

Fund Account Vendor / Service Amount
100 General
Fund
4216-6745 Willdan Engineering — Interim
Building Official & Engineering
$8,565.00
100 General
Fund
4410-6785 West Coast Arborists, Inc. — Tree
Trimming
$7,921.05
100 General
Fund
4216-6720 Yunex LLC — Traffic Signal &
Streetlight Maintenance
$29,397.75
General Fund Subtotal $45,883.80
258 Measure W 7134-6720 Willdan Engineering — NPDES
Compliance
$17,984.00
Total Appropriation $63,867.80
Section 2. The City Council hereby authorizes and directs the Finance Director, or designee, to appropriate the funds authorized by Section 1 and make all necessary budget adjustments, transfers, and accounting entries to implement the appropriation approved by this Resolution.

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 the regular meeting of this 6th day of October, 2026. ___________________________
Cynthia Gonzalez
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk

Resolution No. 26-42

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. 26-42 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 6th day of October 2026 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

1.1 • -

PROFESSIONAL SERVICES AGREEMENT
(Willdan Engineering-INTERIM BUILDING OFFICIAL AND INTERIM CITY ENGINEER

SERVICES)
Tl-llS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 10th Day of August, 2012 (hereinafter, the "Effective Date"), by and between the CITY OF CUDAHY, a municipal corporation ("CITY'') and WILLDAN ENGINEERING., a California Corporation (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 CONSULT ANT interchangeably.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSUL TANT agree as follows:

I.

ENGAGEMENT TERMS
SCOPE OF WORK: SEE ATTACHED EXHIBIT A
PROSECUTION OF WORK: The Parties agrees as follows:

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY' s issuance of a Notice to Proceed, and shall be completed on a date not more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed (the "Completion Date");
B. CONSULT ANT shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents; C. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULT ANT or its subconsultants, to have related services or tasks completed in a timely manner;
D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT's employees
E. CONSULT ANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.2 COMPENSATION:

A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.

Attachment B Page 65 of 557
B. Section 1.3(A) notwithstanding, CONSULTANT's total compensation for the perfonnance and completion of the Work shall not exceed the sum of TEN THOUSAND DOLLARS ($10,000.00) (hereinafter, the ''Not-to-Exceed Sum"). CONSULT ANT further agrees that the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work.

1.3 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum shall be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULT ANT shall submit to CITY an itemized invoice indicating the services perfonned and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for perfonning the Work, 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. The hourly rate shall be ONE HUNDRED FORTY FIVE DOLLARS PER HOUR ($145.00/HR) within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULT ANT in writing of any disputed amounts included in the invoice. Within forty-five ( 45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULT ANT.

1.4 ACCOUNTING RECORDS: CONSULTANT shall 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 shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.5 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perfonn the Work 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 Work, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULT ANT in the performance of this Agreement.

Furthennore, CONSULT ANT shall only be compensated for the reasonable value of the services, tasks and other work 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 CONSULT ANT' s cessation or abandonment.

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II.

PERFORMANCE OF AGREEMENT

2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager and Director of Community Development (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement.

CONSULT ANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Senior Vice President William Paget to act as its representative for the performance of this Agreement (hereinafter, "CONSULT ANT Representative"). CONSULT ANT Representative shall have full authority to represent and act on behalf of the CONSULT ANT for all purposes under this Agreement CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.

Notice to the CONSULT ANT Representative shall constitute notice to CONSUL TANT.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULT ANT shall be subject to inspection and approval by CITY Representatives or their designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT shall perform all Work skillfully, competently and to the standards of practice ordinarily exercised by members ofCONSULTANT's profession; B. CONSULT ANT shall perform al1 Work in a manner reasonably satisfactory to the CITY; C. CONSULT ANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section I 090 and the Political Reform Act (Government Code Section 81000 et seq.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
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E. All of CONSULTANT's employees and agents possess sufficient skill, knowledge, training and experience to perfonn those services and tasks assigned to them by CONSULT ANT; and F. All of CONSULTANT's employees and agents (including but not limited to subcontractors and subconsultants) possess all licenses, pennits, 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 shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT shall 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 shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorired by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULTANT or on CONSULTANT's behalf shall 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 Work skillfully, competently and to the highest standards ofCONSULTANT's profession.

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 perfonn 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, CONSULT ANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULT ANT' 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 shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work shall be perfonned by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of perfonning the Work subject to the requirements of this Agreement. CITY retains CONSULT ANT on an independent contractor basis and not as an employee. CONSULT ANT 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 Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorired disclosure of CITY's

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confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULT ANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULT ANT shall 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.

2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any ofCONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants are determined by the CITY Representatives 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 Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8 COMPLIANCE WITH LAWS: CONSULTANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Cal/OSHA requirements.

2.9 NON•DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.

2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULT ANT and all persons retained or employed by CONSULT ANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULT ANT and all persons retained or employed by CONSULTANT shall 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 CONSULT ANT under this Agreement or is otherwise expressly conferred by CITY in writing.

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III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULT ANT shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULT ANT shall procure and maintain Commercial General Liability Insurance ("CGL Coverage") as broad as Insurance Services Office Commercial General Liability coverage ( occurrence Fonn CG 000 I) or its equivalent. Such CGL Coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two 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: CONSULT ANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Fonn Number CA 000 I covering Automobile Liability, Code I (any auto). Such Automobile Liability Insurance shall have minimum limits ofno less than One 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 shall indemnify, insure and provide legal defense for both CONSULT ANT 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 Work contemplated in this Agreement.

D. Errors & Omissions Insurance: For the fu)] term of this Agreement and for a period of three (3) years thereafter, CONSULT ANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits ofno less than One Million Dollars ($1,000,000.00) per claim and Two Millions Dollars ($2,000,000) annual aggregate.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall 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 shall 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 shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have

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an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition of the Standard & Poor's rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are 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 shall 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 shall be in excess of CONSULT ANT' s insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULTANT's officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULT ANT hereby waives all rights of subrogation against CITY.

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 critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that it shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and 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, and to the extent of CONSULT ANT'S negligence, recklessness or willful misconduct inthe 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 Page7ofl7
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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.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold hannless 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 and to the extent of CONSULTANT's negligence, recklessness or willful misconduct in the 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, active negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due CONSULT ANT under this Agreement any amount due CITY from CONSULTANT as a result ofCONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and 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 CONSULT ANT 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 in this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULT ANT in the performance of this Agreement. In the event CONSULT ANT fails to obtain such indemnity obligations from others as required herein, CONSULT ANT agrees 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 ofCITY's choice.

4.6 CITY does not, and shall not, waive any rights that it may possess against CONSULT ANT 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.

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4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend and hold free and hannless) 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 terminate this Agreement at any time for convenience and without cause by giving CONSULT ANT a minimum of five (5) calendar day's prior written notice of CITY's intent to terminate this Agreement. Upon such tennination for convenience, CONSULTANT shall 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 7.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work. CONSULTANT shall be required to provide such Documents and Data within fifteen ( 1 S) 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, shall 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'') shalt occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall 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 shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B 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 shall 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 shall cure the following Events of Defaults within the following time periods:
i. Within three (3) 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 Page9of17
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of the 3-day cure period, CONSULT ANT 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 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days ftom the end of the initial 3-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 CONSULT ANT 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 shall 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 ftom 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 CONSULT ANT shall include, but shall not be limited to the following: (i) CONSULT ANT's refusal or failure to perform any of the services or tasks called for under the Scope of Work; (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) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULT ANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY shall cure any Event of Default asserted by CONSULT ANT within forty-five ( 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 1.4, above, shall 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

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CONSULT ANT written notice of CITY' s intent to suspend CONSULTANP 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, CONSULT ANT shall be compensated only for those services and tasks which have been rendered by CONSULT ANT 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 shall 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 shall 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 shall 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 shall 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:

1. Upon written notice to CONSULT ANT, 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 performance; iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULT ANT' s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULT ANT shall 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 shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULT ANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, tenn, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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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 shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall 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, drawings, designs, renderings, specifications, 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.

CONSULT ANT shall require all subcontractors and subconsultants working on behalf of CONSULT ANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or 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 CONSULT ANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULT ANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULT ANT shall not use CITY' s name or insignia, photographs, or any publicity pertaining to the Work 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 CONSULT ANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement shall 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:

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CONSULTANT:

Willdan Engineering
13191 Crossroads Parkway North, Suite 405
Industry, CA 91746-3443
Attn: William Pagett
CITY:

City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attn: City Manager
Phone: (323) 773-5143
Fax: (323) 771-2072
Such notices shall be deemed effective when personally delivered m: 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 shall fully cooperate with one another, and shall 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 shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY'S RIGIIT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.

6.8 PROHIBITED INTERESTS: 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 CONSULT ANT, 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 shall 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, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

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6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall 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, shall 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, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall 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 shall be binding on the successors and assigns of the Parties.

6.13 NO TIDRD 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 shall not be construed in favor of, or against, either Party but shall 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 shall continue in full force and effect.

6.16 AMENDMENT: MODIFICATION: No amendment, modification or supplement of this Agreement shall 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 shall 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 shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all

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other agreements or understandings, whether oral or written, or entered into between CITY and CONSULT ANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.

6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.14, above. One fully executed original counterpart shall be delivered to CONSULT ANT and the remaining two original counterparts shall be retained by CITY.

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 CUD~
1 j
By: I( ----

WILLDAN ENGINEERING
ager
ATTEST:

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EXHIBIT A-SCOPE OF WORK
Proposal for Professional Management Services
Between the City of Cudahy and WILLDAN, Inc.

EXIIlBIT A:

BUILDING OFFICIAL
Under direction of the Director of Community Development, the Building Official manages the City's building plan check, inspection, and building and housing code enforcement activities; develops programs and work objectives; resolves complex administrative and technical problems; and does related work as required.

EXAMPLES OF DUTIES · Duties may include, but are not limited to, the following:

Supervises and participates in the implementation of ordinances and codes relating to the construction or alteration of buildings including the installation of building, plumbing, mechanical, structural and electrical systems and equipment; Supervises building and housing code enforcement;
Checks plans, interprets regulations and makes decisions on technical problems; Develops and establishes policies ensuring efficient issuance of building, electrical, mechanical and plumbing permits;
Keeps informed on new building methods and materials and their effect upon existing laws; Recommends revisions and updates of building, electrical and plumbing codes; Attends meetings of local, regional and state agencies to keep up•to•date in appropriate fields; Prepares and manages consultant contracts;
Conducts periodic field inspections for conformance to policies and procedures; Confers with architects, contractors, engineers, developers and others, regarding technical issues relating to construction codes and building plans;
Keeps records and prepares reports;
Prepares and administers the division budget and fee system; Supervises, trains and completes performance evaluations for the Building Division technical staff;
Prepares staff reports and makes presentations to the City Council, Building Board of Appeals and other city boards and commissions;
Answers inquiries and complaints.

CITY ENGINEER:

Designs and serves as project management of various public works projects and programs, including roadways, utilities, buildings, traffic signals, traffic lighting, water/wastewater systems, natural gas systems, drainage structures, assessment district, traffic and bond issue projects.

Duties and Responsibilities:

Plans, reviews, designs and certifies drawings for roadways, streets, drainage, utilities, buildings and other structures and systems; conducts field inspections of projects; signs and seals engineering plans, reports, specifications and contract documents.

Drafts and creates engineering drawings from field data, sketches, drawings, raw data, diagrams and verbal/written narrative instructions; performs calculations of geometric designs for public works projects.

Serves as project manager in coordinating the various aspects of design projects and engineering related programs, including preparing preliminary and final cost estimates; construction plans, contract documents, material specifications, acquisition of right of way and easements.

Responds to inquiries from the public regarding information requests, complaints or concerns; provides information and documentation regarding various projects.

Perform the lead role in the review and the coordination and administration of assessment districts, Bond Issue Projects in order to provide a coordinated, effective, cost-efficient project.

Prepare Requests for Proposals for professional engineering services needed by the City.

Coordinate projects with external agencies and other utility companies.

Reviews construction plans for compliance with the City design standards, Subdivision Code and Uniform Building Code, and other applicable codes, guidelines and standards.

Performs special studies of the existing infrastructure; recommends improvements and prepares technical reports.

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1.1 PROFESSIONAL SERVICES AGREEMENT
(Willdan Engineering - INTERIM BUILDING OFFICIAL AND INTERIM CITY ENGINEER

SERVICES)
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 05th Day of March, 2013 (hereinafter, the "Effective Date"), by and between the CITY OF CUDAHY, a municipal corporation ("CITY") and WILLDAN ENGINEERING., a California Corporation (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.

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

I.

ENGAGEMENT TERMS
SCOPE OF WORK: SEE ATTACHED EXHIBIT A
PROSECUTION OF WORK: The Parties agrees as follows:

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY' s issuance of a Notice to Proceed, and shall be completed on a date not more than one year (1) with an option to renew the contract for up to two (2) additional one-year (1) terms from the issuance of the Notice to Proceed (the "Completion Date"); B. CONSULTANT shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONSUL TANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents; C. 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;
D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT's employees
E. CONSUL TANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required bylaw.

1.2 COMPENSATION:

A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.

Attachment B Page 82 of 557
B. Section l.3(A) notwithstanding, CONSULTANT's total compensation for the performance and completion of the Work shall not exceed the sum of SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00) (hereinafter, the "Not-to-Exceed Sum"). CONSULTANT further agrees that the Not-toExceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work.

1.3 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum shall be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULT ANT shall 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 the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT' s personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, 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. The hourly rate shall be ONE HUNDRED FORTY DOLLARS PER HOUR ($140.00/HR) within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULT ANT in writing of any disputed amounts included in the invoice. Within forty-five ( 45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.4 ACCOUNTING RECORDS: CONSULTANT shall 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 shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.5 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work 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 Work, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULT ANT in the performance of this Agreement.

Furthermore, CONSULT ANT shall only be compensated for the reasonable value of the services, tasks and other work 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 CONSUL TANT' s cessation or abandonment.

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II.

PERFORMANCE OF AGREEMENT

2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager and Director of Community Development (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement.

CONSULT ANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Senior Vice President William Paget to act as its representative for the performance of this Agreement (hereinafter, "CONSULTANT Representative"). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement.

CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.

Notice to the CONSULTANT Representative shall constitute notice to CONSULTANT.

2.3 COORDINATION OF SERVICE: CONFORMANCE WITH REQUIREMENTS: CONSULTANT

2.4 agrees to work closely with CITY staff in the performance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees.

STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT shall perform all Work skillfully, competently and to the standards of practice ordinarily exercised by members of CONSULTANT's profession; B. CONSUL TANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSUL TANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
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E. All of CONSULT ANT' s employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by CONSULTANT; and F. 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 shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT shall 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 shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULTANT or on CONSULTANT's behalf shall 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 Work skillfully, competently and to the highest standards of CONSULTANT's profession.

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 perform the services and tasks to be undertaken by CONSUL TANT or on behalf of CONSULT ANT in the performance of this Agreement. In recognition of this interest, CONSULT ANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSUL TANT' 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 shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULT ANT 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 CONSUL TANT' s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's

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confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULT ANT shall 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.

2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any ofCONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants are determined by the CITY Representatives 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 Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8 COMPLIANCE WITH LAWS: CONSULTANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Cal/OSHA requirements.

2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.

2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall 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 shall 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.

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III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULT ANT shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULT ANT shall 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 shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two 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: CONSULTANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits ofno less than One 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 shall indemnify, insure and provide legal defense for both CONSUL TANT 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 CONSUL TANT in the course of carrying out the Work 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 shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSUL TANT' s profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim and Two Millions Dollars ($2,000,000) annual aggregate.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall 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 shall 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 shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have

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an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor' s rating of no less than BBB according to the latest published edition of the Standard & Poor' s rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are 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 CONSUL TANT shall 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 shall be in excess of CONSULTANT's insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULT ANT' s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULT ANT hereby waives all rights of subrogation against CITY.

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 critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that it shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and 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, and to the extent of CONSULTANT'S negligence, recklessness or willful misconduct inthe 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

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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.

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 and to the extent of CONSULTANT's negligence, recklessness or willful misconduct in the 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, active negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of CONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and 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 CONSUL TANT agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSUL TANT in the performance of this Agreement. In the event CONSUL TANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees 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 CONSUL TANT 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.

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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 terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar day's prior written notice of CITY' s intent to terminate this Agreement. Upon such termination for convenience, CONSUL TANT shall be compensated only for those services and tasks which have been performed by CONSUL TANT up to the effective date of the termination. CONSUL TANT 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 CONSUL TANT to provide all finished or unfinished Documents and Data, as defined in Section 7.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work. CONSULTANT shall 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, shall 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") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall 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 shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B 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 shall 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 shall cure the following Events of Defaults within the following time periods:
i. Within three (3) 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 CONSUL TANT is obligated to provide to CITY or CITY' s employees or agents under this Agreement. Prior to the expiration

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of the 3-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 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days from the end of the initial 3-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, CONSUL TANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSUL TANT 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 shall 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 CONSUL TANT shall include, but shall 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 Work; (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) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULT ANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY shall cure any Event of Default asserted by CONSULTANT within forty-five (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 1.4, above, shall 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 CONSUL TANT' s cure of any Event of Default by giving

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CONSULTANT written notice ofCITY'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 shall be compensated only for those services and tasks which have been rendered by CONSULT ANT 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 shall 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 shall 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 shall 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 shall 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:

1. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;

11. Upon written notice to CONSULTANT, the CITY may extend the time of 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.

CONSUL TANT shall 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 shall 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 shall 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 shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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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 shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.

6.1 VI.

MISCELLANEOUS PROVISIONS
DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall 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, drawings, designs, renderings, specifications, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULT ANT 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.

CONSUL TANT shall require all subcontractors and subconsultants working on behalf of CONSULT ANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSUL TANT 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 shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT shall not use CITY' s name or insignia, photographs, or any publicity pertaining to the Work 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: CONSULT ANT warrants and represents that neither CONSULT ANT 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., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement shall 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:

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CONSUL TANT:

Willdan Engineering
13191 Crossroads Parkway North, Suite 405
Industry, CA 91746-3443
Attn: William Pagett
CITY:

City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attn: City Manager
Phone: (323) 773-5143
Fax: (323) 771-2072
Such notices shall 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 shall fully cooperate with one another, and shall 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 shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.

6.8 PROHIBITED INTERESTS: 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 shall 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, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

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6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall 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 iri federal court, venue, without exception, shall 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, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall 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 shall 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 shall not be construed in favor of, or against, either Party but shall 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 shall continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement shall 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 shall 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 shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all

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other agreements or understandings, whether oral or written, or entered into between CITY and CONSULT ANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.

6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with ~ection 6.14, above. One fully executed original counterpart shall be delivered to CONSULTANT and the remaining two original counterparts shall be retained by CITY.

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: WILLDAN ENGINEERING
By: l1J) j ""----' ~ J.

William Pagett, Seni7>r Vi e President
ATTEST:

APPROVED AS TO FORM:

By.~4C...d~½~~:;:z.... ___ _
rney

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EXHIBIT A:

EXHIBIT A - SCOPE OF WORK
Proposal for Professional Management Services
Between the City of Cudahy and WILLDAN, Inc.

BUILDING OFFICIAL
Pay Rate of ONE-HUNDRED AND FORTY DOLLARS Per Hour ($140.00/hour) Under direction of the Director of Community Development, the Building Official manages the City's building plan check, inspection, and building and housing code enforcement activities; develops programs and work objectives; resolves complex administrative and technical problems; and does related work as required.

EXAMPLES OF DUTIES - Duties may include, but are not limited to, the following:

Supervises and participates in the implementation of ordinances and codes relating to the construction or alteration of buildings including the installation of building, plumbing, mechanical, structural and electrical systems and equipment; Supervises building and housing code enforcement;
Checks plans, interprets regulations and makes decisions on technical problems; Develops and establishes policies ensuring efficient issuance of building, electrical, mechanical and plumbing permits;
Keeps informed on new building methods and materials and their effect upon existing laws; Recommends revisions and updates of building, electrical and plumbing codes; Attends meetings of local, regional and state agencies to keep up-to-date in appropriate fields; Prepares and manages consultant contracts;
Conducts periodic field inspections for conformance to policies and procedures; Confers with architects, contractors, engineers, developers and others, regarding technical issues relating to construction codes and building plans;
Keeps records and prepares reports;
Prepares and administers the division budget and fee system; Supervises, trains and completes performance evaluations for the Building Division technical staff;
Prepares staff reports and makes presentations to the City Council, Building Board of Appeals and other city boards and commissions;
Answers inquiries and complaints.

CITY ENGINEER:

Pay Rate of ONE-HUNDRED AND FORTY DOLLARS Per Hour ($140.00/hour) · Designs and serves as project management of various public works projects and programs, including roadways, utilities, buildings, traffic signals, traffic lighting, water/wastewater systems, natural gas systems, drainage structures, assessment district, traffic and bond issue projects.

Duties and Responsibilities:

Plans, reviews, designs and certifies drawings for roadways, streets, drainage, utilities, buildings and other structures and systems; conducts field inspections of projects; signs and seals engineering plans, reports, specifications and contract documents.

Drafts and creates engineering drawings from field data, sketches, drawings, raw data, diagrams and verbal/written narrative instructions; performs calculations of geometric designs for public works projects.

Serves as project manager in coordinating the various aspects of design projects and engineering related programs, including preparing preliminary and final cost estimates; construction plans, contract documents, material specifications, acquisition of right of way and easements.

Responds to inquiries from the public regarding information requests, complaints or concerns; provides information and documentation regarding various projects.

Perform the lead role in the review and the coordination and administration of assessment districts, Bond Issue Projects in order to provide a coordinated, effective, cost-efficient project.

Prepare Requests for Proposals for professional engineering services needed by the City.

Coordinate projects with external agencies and other utility companies.

Reviews construction plans for compliance with the City design standards, Subdivision Code and Uniform Building Code, and other applicable codes, guidelines and standards.

Performs special studies of the existing infrastructure; recommends improvements and prepares technical reports.

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1 2021

SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT
(Engagement: Plan Review Services)
(Parties: City of Cudahy and Willdan Engineering)
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain agreement entitled, “Contract Services Agreement” and dated August 10, 2012 (hereinafter, the “Master Agreement”), is hereby made and entered into this 16th day of November 2021 (hereinafter, “Effective Date”) by and between the City of Cudahy, a municipal corporation (hereinafter, “City”) and Willdan Engineering, (hereinafter, “Consultant”). For purposes of this Second Amendment, the capitalized term “Parties” shall be a collective reference to both City and Consultant. The capitalized term “Party” may refer to either City or Consultant, interchangeably as appropriate.

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

WHEREAS, on August 10, 2012, the Parties executed and entered into the Master Agreement for Consultant to provide interim building official and interim City engineer services for the City; and
WHEREAS, the Master Agreement was amended by the First Amendment to the Master Agreement on April 7, 2020; and
WHEREAS, the Master Agreement and First Amendment referred to as Master Agreement, is attached and incorporated hereto as Exhibit A; and WHEREAS, Consultant currently provides plan review services for the City’s cannabis facilities; and
WHEREAS, the Parties wish to amend the Scope of Work given that the City requires additional plan review services; and
NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Exhibit A-Scope of Work of the Master Agreement is amended to include the attached “Plan Review Services” dated September 30, 2021.

SECTION 2. Except as otherwise set forth in this Second Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. The Second Amendment and Master Agreement shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 3. The provisions of this Second Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this Second Amendment, the Master Attachment B Page 99 of 557
2 Agreement and all provisions contained therein shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the provisions of the Master Agreement, the provisions of this Second Amendment shall control, but only in so far as such provisions conflict with the Master Agreement and no further. (SIGNATURES ON NEXT PAGE)

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

CITY:

CITY OF CUDAHY
By: _ ---l..£- --+¥'-----'---'---'-------l'i.----"-------- Alfi
City Manger
Date: 02-01-2!f22
APPROVED AS TO FORM:

By: ___________ _
Victor Ponto
City Attorney
Date: _______ _
3 CONSULTANT:

WILLDAN ENGINEERING
By:

Patrick Johnson
Director of Building & Safety
Date: /- Z 0 - 2 Z. --~-----
February 17, 2022

4 EXHIBIT A

MASTER AGREEMENT

2020

FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT
(Engagement: Interim Building Official and Interim City Engineer Services) (Parties: City of Cudahy and Willdan Engineering)
THIS FIRST AMENDMENT (hereinafter, "First Amendment") to that certain agreement entitled "Contract Services Agreement" and dated August 10, 2012 (hereinafter, the "Master Agreement"), is hereby made and entered into this 7th day of April 2020 (hereinafter, "Effective Date") by and between City of Cudahy, a municipal corporation (hereinafter, "City") and Willdan Engineering (hereinafter, "Consultant"). For purposes of this First Amendment, the capitalized term "Parties" shall be a collective reference to both City and Consultant. The capitalized term "Party" may refer to either City or Consultant, interchangeably as appropriate.

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

WHEREAS, on August 10, 2012 the Parties executed and entered into the Master Agreement for Consultant to provide interim building official and interim city engineer services for the City; and
WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit "A"; and
WHEREAS, the Parties wish to expand the Term given that City requires additional building official services; and
WHEREAS, under the terms of the Master Agreement, City agreed to a Term beginning on August 10, 2012 ("Effective Date") and the services were to be completed on a date no more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed; and
WHEREAS, the Parties now wish to adjust the Term to begin on the Effective Date and continue on a monthly basis until terminated by the City pursuant to Section 5 of the Master Agreement.

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

SECTION 1. Section 1.1 (A) of the Master Agreement is hereby amended from the original Term beginning on August 10, 2012 ("Effective Date") and the services were to be completed on a date no more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed, for a new Term to begin on the Effective Date of the Master Agreement and continue on a monthly basis until terminated by the City, pursuant to Section 5 of the Master Agreement for all work contemplated under the Master Agreement and this First 1

Amendment.

SECTION 2. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. This First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 3. The provisions of this First Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this First Amendment, the Master Agreement and all provisions contained therein shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this First Amendment and the provisions of the Master Agreement, the provisions of this First Amendment shall control, but only in so far as such provisions conflict with the Master Agreement and no further. (SIGNATURES ON NEXT PAGE)
2

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

CITY:

CITY OF CUDAHY
By:

Santor Nishizaki. Acting City Manager
Date:

APPROVED AS TO FORM:
/ee By:

Victor Ponto, City Attorney
Date: April 15, 2020
3 CONSULTANT:

WILLDAN ENGINEERING
By: -
Vanessa Munoz Vice Preside
Date: 1-1-15-X6),

EXHIBIT "A"

MASTER AGREEMENT
4

PROFESSIONAL SERVICES AGREEMENT
(Willdan Engineering — INTERIM BUILDING OFFICIAL AND INTERIM CITY ENGINEER

SERVICES)
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 10th Day of August, 2012 (hereinafter, the "Effective Date"), by and between the CITY OF CUDAHY, a municipal corporation ("CITY") and WILLDAN ENGINEERING., a California Corporation (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.

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

I.

ENGAGEMENT TERMS
SCOPE OF WORK: SEE ATTACHED EXHIBIT A

1.1 PROSECUTION OF WORK: The Parties agrees as follows:

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY's issuance of a Notice to Proceed, and shall be completed on a date not more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed (the "Completion Date");
B. CONSULTANT shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents; C. 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;
D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT's employees
E. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.2 COMPENSATION:

A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.

B. Section 1.3(A) notwithstanding, CONSULTANT's total compensation for the performance and completion of the Work shall not exceed the sum of TEN THOUSAND DOLLARS ($10,000.00) (hereinafter, the "Not-to-Exceed Sum"). CONSULTANT further agrees that the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work.

1.3 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum shall be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULTANT shall 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 the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, 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. The hourly rate shall be ONE HUNDRED FORTY FIVE DOLLARS PER HOUR ($145.00/HR) within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.4 ACCOUNTING RECORDS: CONSULTANT shall 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 shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.5 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work 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 Work CONSULTANT shall 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 shall only be compensated for the reasonable value of the services, tasks and other work 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.

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II.

PERFORMANCE OF AGREEMENT

2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager and Director of Community Development (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement.

CONSULTANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Senior Vice President William Paget to act as its representative for the performance of this Agreement (hereinafter, "CONSULTANT Representative"). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement.

CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.

Notice to the CONSULTANT Representative shall 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 Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT shall perform all Work skillfully, competently and to the standards of practice ordinarily exercised by members of CONSULTANT's profession; B. CONSULTANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSULTANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;

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E. 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 F. 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 shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT shall 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 shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULTANT or on CONSULTANT's behalf shall 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 Work skillfully, competently and to the highest standards of CONSULTANT's profession.

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 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 shall 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 shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of performing the Work 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 Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's

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confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT shall 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.

2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants are determined by the CITY Representatives 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 Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8 COMPLIANCE WITH LAWS: CONSULTANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Cal/OSHA requirements.

2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.

2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall 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 shall 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.

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INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT shall 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 shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two 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: CONSULTANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One 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 shall 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 Work 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 shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim and Two Millions Dollars ($2,000,000) annual aggregate.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall contain an endorsement naming the CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers as additional insureds.

3.3 REOUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall 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 shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have

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an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition of the Standard & Poor's rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are 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 shall 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 shall be in excess of CONSULTANT's insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall 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.

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 critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that it shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and 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, and to the extent of CONSULTANT'S negligence, recklessness or willful misconduct inthe 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

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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.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold hannless 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 and to the extent of CONSULTANT's negligence, recklessness or willful misconduct in the 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, active negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due CONSULT ANT under this Agreement any amount due CITY from CONSULTANT as a result ofCONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and 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 CONSULT ANT 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 in this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULT ANT in the performance of this Agreement. In the event CONSULT ANT fails to obtain such indemnity obligations from others as required herein, CONSULT ANT agrees 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 ofCITY's choice.

4.6 CITY does not, and shall not, waive any rights that it may possess against CONSULT ANT 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.

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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 terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar day's prior written notice of CITY's intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall 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 7.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work. CONSULTANT shall 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, shall 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") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall 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 shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B 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 shall 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 shall cure the following Events of Defaults within the following time periods:
i. Within three (3) 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

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of the 3-day cure period, CONSULT ANT 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 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days ftom the end of the initial 3-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 CONSULT ANT 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 shall 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 ftom 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 CONSULT ANT shall include, but shall not be limited to the following: (i) CONSULT ANT's refusal or failure to perform any of the services or tasks called for under the Scope of Work; (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) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULT ANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY shall cure any Event of Default asserted by CONSULT ANT within forty-five ( 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 1.4, above, shall 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

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CONSULT ANT written notice of CITY' s intent to suspend CONSULTANP 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, CONSULT ANT shall be compensated only for those services and tasks which have been rendered by CONSULT ANT 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 shall 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 shall 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 shall 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 shall 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:

1. Upon written notice to CONSULT ANT, 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 performance; iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULT ANT' s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULT ANT shall 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 shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULT ANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, tenn, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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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 shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall 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, drawings, designs, renderings, specifications, 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.

CONSULT ANT shall require all subcontractors and subconsultants working on behalf of CONSULT ANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or 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 CONSULT ANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULT ANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULT ANT shall not use CITY' s name or insignia, photographs, or any publicity pertaining to the Work 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 CONSULT ANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement shall 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:

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CONSULTANT:

Willdan Engineering
13191 Crossroads Parkway North, Suite 405
Industry, CA 91746-3443
Attn: William Pagett
CITY:

City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attn: City Manager
Phone: (323) 773-5143
Fax: (323) 771-2072
Such notices shall be deemed effective when personally delivered m: 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 shall fully cooperate with one another, and shall 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 shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY'S RIGIIT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.

6.8 PROHIBITED INTERESTS: 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 CONSULT ANT, 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 shall 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, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

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6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall 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, shall 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, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall 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 shall be binding on the successors and assigns of the Parties.

6.13 NO TIDRD 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 shall not be construed in favor of, or against, either Party but shall 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 shall continue in full force and effect.

6.16 AMENDMENT: MODIFICATION: No amendment, modification or supplement of this Agreement shall 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 shall 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 shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all

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other agreements or understandings, whether oral or written, or entered into between CITY and CONSULT ANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.

6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.14, above. One fully executed original counterpart shall be delivered to CONSULT ANT and the remaining two original counterparts shall be retained by CITY.

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 CUD� WILLDAN ENGINEERING
1 j
By: I(
ager
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ATTEST:

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September 30, 2021
City of Cudahy
Attn: Mr. Alfonso Noyola, City Manager
5220 Santa Ana Street
Cudahy, CA 90201
Subject: Proposal – Plan Review Services
Dear Mr. Noyola:

Willdan Engineering, is pleased to present this proposal to the City of Cudahy. As a company founded on the principles of serving public agencies, Willdan Engineering (Willdan) understands the City's requirements for professional services and outstanding customer service. Providing on-call staffing support to cities and counties is a key component of Willdan's services and has been a cornerstone service for the firm for more than 57 years. Willdan offers the City a team led by Mr. Salvador Lopez Jr. and Mr.

Patrick Johnson, filled with dedicated and respected professionals. Our staff members have served in public agencies prior to joining Willdan and understand municipal government.

While our exceptional services are presented in this response, listed below are reasons why Willdan is uniquely qualified to provide these services to the City of Cudahy.

The Willdan Advantage
▪ Demonstrated Competence – Willdan Engineering presently provides building and safety services to a vast number of jurisdictions throughout California. In this capacity, we provide a full range of services including Building Official services, building and safety plan review, permit issuance, inspection, and code enforcement. Willdan currently provides plan review services for the City’s cannabis facilities and our team is familiar with the City’s procedures and processes. Willdan's team will continue to be managed and coordinated through our full-service City of Industry office, approximately 20 miles to the City’s office – making Willdan conveniently located and responsive to the City’s requests. ▪ Electronic Plan Review – Willdan Engineering offers electronic plan review which reduces foot traffic at City Hall and significantly expedites review as well as reduces shipping and printing costs for the applicant while promoting a paperless environment at no additional cost to the City or permit applicants.
▪ CASp Certified Inspectors and Plans Examiners – Willdan Engineering can provide CASp certified specialists to the City, as required by Senate Bill No. 1608, specifically CHAPTER 549. ▪ Quick Turnaround Times. Willdan has a reputation of providing quality and accurate plan review in a timely manner. We understand that time is of critical importance to the City and to the development community. We are dedicated to meeting normal and “expedited” turnaround deadlines. ▪ Customer Service – Our approach to user-friendly customer service specifically results in reduced number of plan review rechecks and has allowed us to meet the required plan check turnaround time standards of the City. Likewise, the assignment of experienced building inspectors by Willdan results in accurate-time effective field building inspections.
▪ Large Company with Boutique-Company Approach. We have the resources of a large company but are staffed by individuals who respect our clients' unique needs. Every Willdan employee – including those working at City offices – seeks to understand each city's goals, policies, and practices based upon what is written in their general plans and development codes and how those goals and policies have been applied over time. When our plan checkers and planners need technical support, Willdan has additional in-house discipline resources to cover almost every aspect of a development project from engineering to municipal financing to building and safety to energy conservation. However, Exhibit A - Scope of Work

Page Two
September 30, 2021
when the need arises, we have existing relationships with a myriad of specialty subconsultants we can call upon to fill that need.
▪ Staff Quality and Longevity. Willdan recognizes that our employees are our most important resource – we provide them with professional development, flexibility, challenge, active listening, and recognition of the strengths they bring to our team. Our employees are committed to finishing clients' projects, especially the long-term ones and those that have been tabled and come back to life.

Mr. Pete Goodrich, CBO, will serve as Project Manager. Patrick Johnson, PE, CBO is the Director of Building and Safety and is authorized to contractually bind Willdan. Mr. Goodrich will oversee all day-today services provided to the City, will serve as the primary contact for the City, and can be reached as shown below:

Mr. Pete Goodrich, CBO
Senior Project Manager
13191 Crossroads Pkwy N
Suite 405
Industry, CA 91746
909.262.8612
[email protected]
Mr. Patrick Johnson, PE, CBO
Director of Building and Safety
13191 Crossroads Pkwy N
Suite 405
Industry, CA 91746
909.915.4361
[email protected]
Willdan looks forward to continuing to assist the City of Cudahy with their plan review needs. As demonstrated in our proposal, our team includes the skill and experience required to address the current and future workload. Our proposal demonstrates the advantages Willdan's team brings to this on-call contract and how the City can continue to benefit from having Willdan as an integral part of their team.

We appreciate the high value you and city staff place on our work and appreciate the opportunity to offer continued assistance with your comprehensive professional planning and plan review needs.

Willdan is the right firm with the right resources and the right experience to provide on-call building and safety consulting services to the City of Cudahy. We welcome and look forward to the opportunity to meet with the City to discuss our qualifications, experience, and how we can assist the City with the requested services.

Respectfully submitted,

WILLDAN ENGINEERING
Patrick Johnson, PE, CBO
Director of Building and Safety

CITY OF CUDAHY Plan Review Services
Table of Contents
Executive Summary ................................................................................................................................1 Approach to Scope of Services................................................................................................................2 Rates.........................................................................................................................................................6 Team.........................................................................................................................................................6 References ...............................................................................................................................................8 Appendix
▪ Résumés

CITY OF CUDAHY Plan Review Services
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Executive Summary

COMPANY OVERVIEW
Willdan, founded in 1964, is a leading nationwide provider of professional consulting and technical services. The primary markets Willdan serves are electric energy consulting; infrastructure planning and engineering; economic and financial consulting; and homeland security consulting. The company serves these four complementary markets through its divisions – engineering services (Willdan Engineering), energy efficiency services (Willdan Energy Solutions), public finance services (Willdan Financial Services) and homeland security services (Willdan Homeland Solutions). Willdan has a reputation for delivering high-quality projects on time and within budget. Rooted in Willdan’s corporate culture is its focus on quality customer service. The company has more than 1,400 employees, including licensed engineers, program and construction managers, financial analysts, planners, and other skilled professionals. Willdan benefits from well-established relationships with local and state government agencies, investor-owned and municipal utilities, and private sector commercial and industrial firms throughout the United States. Today, Willdan has employees operating out of multiple offices located throughout the United States. We have supported implementation of community visions through engineering, construction management, inspection, planning, building safety, and staff augmentation services. Willdan has completed various types of projects for over 90 percent of the cities and counties in California.

BUILDING AND SAFETY SERVICES
Willdan’s experience and strength in building and safety encompasses the complete range of technical disciplines, including permit issuance, building inspection, grading inspection, accessibility inspection, CASp services, OSHPD III plan check and inspection, flood zone experience, building plan review, firelife safety, building official services, and emergency safety assessment expertise. The inspection and plan review staff maintain current certifications and attend training on a regular basis, to stay current with industry technologies and standards. Specific certifications and education are delineated in staff résumés herein.

FINANCIAL STABILITY
Throughout our 57 years in business, Willdan has maintained a strong balance sheet with the financial and staffing resources to perform and complete all contractual obligations. We have continued to grow to better serve our clients by offering an expanding range of municipal services. Financial information, including information on revenue, earnings, and cash flow, are issued quarterly, and can be found at www.willdan.com.

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Approach to Scope of Services
When it comes to serving the residents of the City of Cudahy community, Willdan sees our role as that of facilitator and guide—helping the City’s customers in getting through the review, permitting, and inspection process—rather than leaving the applicant in a bind in obtaining or signing off permits, while ensuring development complies with building codes and City standards. We understand that the process of complying with the various codes, standards, regulations, and laws can be a formidable and daunting undertaking—for even the most seasoned design or construction professional. Furthermore, an understanding of the complexity associated with processing private development applications and the sometimes-competing interests is essential to exceptional customer service. Competing interests include, but are not limited to, creating a sense of place, achieving economic development objectives, ease of maintenance, and assuring the City will be as satisfied with the infrastructure on day one as 20 years from “day one.” Common sense decision making and technical analysis in interpreting the intent of regulatory guidelines are significant strengths Willdan staff brings to the City.

Our proven approach is based on years of experience and incorporates features enhancing the efficiency and quality of the following services:

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SCOPE OF WORK

BUILDING PLAN REVIEW
All building plans will be examined for compliance with the 2019 California Building Code, California Residential Code, Green Building Standards Code, California Mechanical Code, California Plumbing Code, California Electrical Code, California Fire Code, California Historical Code, California Existing Building Code and the Accessibility, Noise and Energy Conservation requirements as mandated by State Title 24, and all additional applicable City Ordinances. Plan review for Disabled Access Compliance will include a review of precise grading plans.

All plan check will include compliance with
code requirements as well as an overview
of the application package for other
applicable requirements such as approvals
from other local agencies and districts and
coordination with other City departments.

All plan review will comply with the City’s
directives, codes and policies.

Plan check will include a review of any or all of the following design elements as determined by the City:
▪ Architectural
▪ Fire/Life-safety
▪ Plumbing
▪ Mechanical
▪ Structural
▪ Electrical
▪ Energy Conservation Regulations (Title 24)
▪ Disabled Access Regulations (CBC)
▪ Green Building Standards
▪ CASp
Willdan will provide two complete typewritten plan check letters which outline the documents reviewed, instructions to the applicant regarding the processing of documents, and a listing of plan check comments. The plan check comments will refer to appropriate sheets, details or calculation pages and the code section of concern. Comments shall specify the apparent code violation.

Willdan staff will pick up plans (paper projects) from City Hall and/or provide delivery service at no additional cost to the City. We will supply the City with plan bags and shipping labels as well as Willdan’s FedEx and GSO account numbers.

ELECTRONIC PLAN REVIEW
Electronic Plan Review Procedure
“We really appreciate Willdan’s timely responses and
professional advice to our questions and concerns related to plan check comments and general code issues. Willdan’s
professionalism and knowledge of the plan check process was immensely helpful in cutting cost and schedule. It has been really great to work with Willdan and we hope we will keep working with them for future work.”
Inkon Kim, PhD, LEED AP
HPA, Inc.

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Willdan has long had the ability to provide plan review services electronically, at no additional cost to the City or applicants. The many advantages of our “tree-saving” electronic plan review process includes the elimination of the need for additional computer software or hardware–only an Internet connection is necessary.

Electronic plan review services are provided at the request of the applicant or the agency we serve. Submittals are accepted in PDF format and reviewed in Bluebeam.

Willdan will review plans and can transmit the redlined plans back to the applicant or designer via the website, along with the plan review comment sheet.

This service allows for on-line collaboration
between the City, designer and plans examiner to facilitate a complete understanding of plan review comments and can reduce shipping, printing and timelines for plan review processing for the applicant.

Our Electronic Plan Review (EPR) portal also serves as an accurate log of all plans coming in and going out. City staff will have full access to the site and will have the ability to check status, review redlines, comments, etc.

EPR is an excellent solution to ensure plan review services can still be offered/performed during this Covid-19 pandemic where paper submission and human contact are strongly discouraged.

PLAN REVIEW SCHEDULE

TYPE OF PROJECT INITIAL REVIEW SUBSEQUENT REVIEWS
Residential (new construction,
additions, remodels) 8 – 10 working days 5 working days Commercial/Industrial (new
construction, additions, remodels) 10 working days 5 working days Solar Plans 2 – 3 working days 1 – 2 working days
Expedited review will be provided at the request of City staff.

BUILDING OFFICIAL

BUILDING OFFICIAL
Our Building Officials oversee all plan checking, building inspections and permit counter technician services, and will act as the City’s representative on building-related matters. Responsibilities include, but are not limited to:
▪ Function as the Building Official as set forth in the California Building Code, in other City adopted building codes, ordinance Municipal Code, and as specified in Federal and State law. ▪ Issue Certificates of Use and Occupancy for building and structures. ▪ Assist in the coordination and oversight of the building permit, building inspection, building counter and building code enforcement services so that they function as one building and safety organization. "Working with Willdan speeds
up the installation of solar. They
have quick and efficient plan
reviews through an electronic
review process. Complete Solar
is happy to continue to work
with Willdan on a regular
basis.”
Sarah Prado, Agent
Complete Solar

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▪ Maintain, amend and develop ordinances and regulations necessary to implement and enforce the latest editions of the California Building Code, including any and all related Codes, or other uniform safety codes, laws, or regulations as adopted or amended by the City deemed necessary by the City to protect the health safety and welfare of its citizens.
▪ Prepare building and safety code violation cases for submittal to the City Attorney’s office when prosecution action is necessary to obtain compliance with existing codes and regulations. ▪ Quality control review of building inspections.
▪ Resolution of resident inquiries and complaints.
▪ Make determination on the approval and use of alternative materials and methods of construction. ▪ Assist in the administration and processing of complex Building Code issues and dispute resolution, including making final interpretations concerning the application of building and safety codes. ▪ Contribute the necessary resources to the configuration, implementation and on- going support of an automated permitting system
▪ Review discretionary applications for preliminary compliance with construction codes. ▪ Coordinate with Code Enforcement regarding abatement program. ▪ Review and update the Building/Safety Procedures Manual. ▪ Monthly Reporting of Building and Safety Activities as well as reports required for fee collection and other reports required by the State of California or other government agencies. ▪ Review Planning Commission & City Council staff reports related to Building & Safety items (as needed). ▪ Periodic attendance at Planning Commission and City Council meetings (as needed). ▪ Provide emergency and after-hours inspection and reports of damaged properties or structures. ▪ Meet with developers, homeowners, business owners, architects, engineers and the general public at the City or in the field, as the need dictates, to resolve grievance and/or respond to questions and ensure timely project processing in compliance with Federal, State and City laws and ordinances.

OPTIONAL ADDITIONAL SERVICES

BUILDING INSPECTION
Our inspectors are ICC certified and fully experienced to perform residential, commercial, and industrial inspections for compliance to the approved plans and related documents. The inspections will be performed in accordance with the City’s adopted version of the California Building Code, California Residential Code, Green Building Standards Code, California Mechanical Code, California Plumbing Code, California Electrical Code, and the State and Federal regulations for Accessibility, Noise and Energy Conservation, California Fire Code and provisions of Title 19 and NFPA.

Inspection staff will be available to meet with City staff, builders, developers, and citizens to provide assistance and resolve any inspection issues that may arise. Inspectors shall attend and participate in required meetings with other City inspection and plan review staff, property owners, contractors and/or design professionals.

CITY OF CUDAHY Plan Review Services
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Rates
Willdan Engineering is pleased to present this fee schedule to the City of Cudahy. Willdan has listed its fee schedule for plan review services based on valuations as percent of fee, as well as hourly rates. Expedited plan review will be charged a 1.35 factor based on the building plan review fee tables below. Percent of fee plan review will be charged through three reviews. Subsequent reviews will be charged based on our hourly rate schedule.

Fee Schedule
Building Plan Review Willdan Fee
Valuation up to $10,000,000 65% of fees collected
Valuation greater than $10,000,000 60% of fees collected CASp/ICC Certified Plans Examiner $120/hour
Plan Check Engineer $135/hour
Building Official $135/hour
Building Inspection $95/hour
Permit Technician $70/hour
Administrative Assistant $55/hour