Alex Vargas, Mayor
Katrina Manning, Mayor Pro Tem
Angie Reyes English, Councilmember
Alex Monteiro, Councilmember
L. David Patterson, Councilmember
Dayna S. Williams-Hunter, City
Clerk
Marie Poindexter-Hornback, City
Treasurer
CITY OF HAWTHORNE
CITY COUNCIL REGULAR MEETING AND PUBLIC
FINANCING AUTHORITY
AGENDA FOR AUGUST 27, 2024 6:00 PM
COUNCIL CHAMBER AT CITY HALL
4455 W. 126th STREET, HAWTHORNE, CALIFORNIA
MEETING INFORMATION
IF YOU ARE AN INDIVIDUAL WITH A DISABILITY AND NEED REASONABLE
ACCOMMODATION OR MODIFICATION PURSUANT TO THE AMERICANS WITH
DISABILITIES ACT (ADA) PLEASE CONTACT THE CITY CLERK DEPARTMENT AT [email protected] OR CALL (310) 349-2915 PRIOR TO THE MEETING FOR ASSISTANCE.
THE MEETING IS SHOWN LIVE ON CABLE CHANNEL 22, AND WILL BE REBROADCAST
AS PART OF THE REGULAR CITY COUNCIL, SUCCESSOR AGENCY, AND RELATED MEETINGS ACCORDING TO THE PUBLISHED CABLE SCHEDULE OF PROGRAMS. IT SHALL
ALSO BE BROADCAST LIVE AND BE MADE AVAILABLE THEREAFTER ON THE CITY OF HAWTHORNE'S WEBSITE:
https://www.cityofhawthorne.org/departments/community-services/hawthornecommunity-television/meeting-videos Or online on YouTube by searching for Hawthorne Community Television ______________________
THE AGENDA, STAFF REPORTS AND ATTACHMENTS ARE AVAILABLE ONLINE AT https://www.cityofhawthorne.org/departments/community-services/hawthornecommunity-television/meeting-videos AND THEN SELECTING THE DESIRED MEETING. MEMBERS OF THE PUBLIC MAY INSPECT (AT NO COST) AND/OR OBTAIN COPIES (UPON PAYMENT OF THE CITY’S
CURRENT COPYING FEE) OF ANY REGULAR SESSION ITEM BY CONTACTING THE CITY CLERK DEPARTMENT AT CITY HALL VIA TELEPHONE (310) 349-2915 OR EMAIL [email protected].
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL
ORAL COMMUNICATIONS
ORAL COMMUNICATION INSTRUCTIONS
ANY PERSON DESIRING TO ADDRESS THE CITY COUNCIL AND PARKING AUTHORITY SHOULD COMPLETE A
SPEAKER REQUEST CARD AND SUBMIT THE CARD TO THE CITY CLERK/SECRETARY PRIOR TO THE COMMENCEMENT OF THE CITY COUNCIL, PARKING AUTHORITY AND HOUSING AUTHORITY MEETING. AFTER
OBTAINING PERMISSION TO PROCEED BY THE PRESIDING OFFICER SPEAKERS SHOULD FIRST STATE THEIR FULL NAME AND ADDRESS FOR THE RECORD. THEY THEN SHALL STATE THEIR BUSINESS FOR ALL GOVERNING BODIES
BRIEFLY AND COMPLETELY AND UNLESS GRANTED FURTHER TIME BY A GOVERNING BODY SHALL LIMIT THEIR ADDRESS TO THREE MINUTES. THE THREE-MINUTE LIMIT SHALL INCLUDE GOVERNING BODY OR STAFF RESPONSES, IF ANY, TO QUERIES POSED BY SPEAKERS. HOWEVER, THE STATE OPEN MEETINGS LAW (GOVERNMENT CODE SECTION 54950 ET SEQ.) PROHIBITS THE CITY COUNCIL FROM PROVIDING A DETAILED RESPONSE OR ACTING UPON ANY ITEM NOT CONTAINED ON THE AGENDA POSTED 72 HOURS BEFORE A REGULAR MEETING AND 24 HOURS BEFORE A SPECIAL MEETING. ALL REMARKS SHALL BE ADDRESSED TO THE GOVERNING BODIES AS A BODY AND NOT TO ANY PARTICULAR MEMBER THEREOF. THE GOVERNING BODY MAY EITHER
DISPOSE OF THE COMMUNICATION AT THE CLOSE THEREOF OR MAY REFER IT TO AN APPROPRIATE ADMINISTRATIVE OFFICER FOR STUDY, INVESTIGATION, REPORT, AND/OR RECOMMENDATION. DISCUSSION, IF ANY, SHALL BE BY MEMBERS OF A GOVERNING BODY ONLY. (H.M.C. 2.06.180, RESO. NO. 6443)
CITY CLERK'S CONSENT CALENDAR
1. Approval of waiver of full readings of resolutions and ordinances on Tuesday, August 27, 2024’s agenda. Motion to waive full readings.
2. City Treasurer requests approval of the warrants. Motion to approve the warrants.
RESOLUTIONS
3. RESOLUTION NO. 8484
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE,
CALIFORNIA, ESTABLISHING A CODE OF CONDUCT FOR ALL CITY SPONSORED EVENTS
4. Resolution No. 8482, a Resolution of the City Council of the City of Hawthorne, California, Rescinding Resolution Numbers 8175, 8207, 8216, 8266 and Proclaiming the Termination of the Local Emergency Due to COVID-19 Under Government Code Section 8630(d)
PUBLIC HEARINGS (FIRST READING AND ADOPTIONS)
5. Public Hearing on the Draft Substantial Amendment to the 2024-2025 Action Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs
6. Public Hearing - Adopt Resolution No. 8481, Authorizing the Issuance of the Lease Revenue Bonds, Series 2024 .
City Clerk Declaration publication filed.
Motion to open public hearing.
Motion to approve Resolution No. 8481
RESOLUTION NO. 8481
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA,
APPROVING THE ISSUANCE OF THE HAWTHORNE PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2024, AND MAKING A FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION THEREWITH, AUTHORIZING THE CITY’S EXECUTION AND DELIVERY OF RELATED DOCUMENTS AND TAKING RELATED ACTIONS. Motion to adopt.
ORDINANCES
7. ORDINANCE NO. 2253 (2nd Reading) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, AMENDING CHAPTERS 17.04, 17.32, AND 17.34 TO UPDATE THE DEFINITIONS OF AUTOMOBILE REPAIR AND THE ZONES WITHIN WHICH THEY ARE PERMITTED. Motion to Adopt
CITY MANAGER'S CONSENT CALENDAR
8. Construction of Speed Humps on Eucalyptus Ave from 118th St to 120th St RECOMMENDED MOTION: Staff recommends that the City Council approve the installation of speed humps on Eucalyptus Ave from 118th St to 120th St.
9. City of Hawthorne’s Investment Report for the quarter ended June 30, 2024.
RECOMMENDED MOTION: Staff recommends that the City Council receive, approve and file the City of Hawthorne’s Investment Report for the quarter ended June 30, 2024 of FY 23-24.
10. Progress Payment #13 in the amount of $71,174.00 due to Elecnor Belco Electric of Chino, CA for Highway Safety Improvement Project Traffic Signal Upgrade and Reconstruction 120th St Improvement Project – Prairie Ave to Felton Ave (Project # 21-06)
RECOMMENDED MOTION: Staff recommends that the City Council approve this Progress Payment #13 to Elecnor Belco Electric of Chino, CA
11. Progress Payment #03 in the amount of $218,210.92 due to Best Contracting Services, Inc of Gardena, CA for Betty Ainsworth Gymnasium Roof Replacement (Project #23-03)
RECOMMENDED MOTION: Staff Recommends that the City Council approve this Progress Payment #03 to Best Contracting Services Inc of Gardena, CA
12. Progress Payment #6 in the amount of $1,102,849.21 due to Klassic Engineering & Construction, Inc of Orange, CA for Hawthorne Housing Rehabilitation of City Owned Properties 2023 (Project #23-09)
RECOMMENDED MOTION: Staff recommends that the City Council approve this Progress Payment #6 to Klassic Engineering & Construction Inc of Orange, CA.
13. Agreement between the City of Hawthorne and Ninyo & Moore for evaluation of airport pavement strength for the Hawthorne Municipal Airport (HHR) in Hawthorne, CA.
RECOMMENDED MOTION: Staff recommends that the City Council approve an agreement with Ninyo & Moor and authorize the Director of Public Works or his designee to enter into and execute the agreement.
14. A Side Letter Agreement between the City of Hawthorne and the Hawthorne Municipal Employees Association Part-Time (HMEA-PT), amending the Memorandum of Understaning (MOU).
RECOMMENDED MOTION: Staff Recommends that the City Council approve the amendment.
CITY ATTORNEY'S CONSENT CALENDAR
15. Claim for physical assault and property damage by Vincent Rand Littlejohn.
RECOMMENDED MOTION: Staff recommends that the City Council deny the claim of Vincent Rand Littlejohn.
PUBLIC FINANCING AUTHORITY
16. RESOLUTION OF THE HAWTHORNE PUBLIC FINANCING AUTHORITY AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF LEASE REVENUE BONDS, SERIES 2024, AUTHORIZING THE EXECUTION
AND DELIVERY OF AN INDENTURE AND OTHER DOCUMENTS AND TAKING RELATED ACTIONS
ELECTED OFFICIALS REPORTS/RECOMMENDATIONS
CLOSED SESSION
17. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to Gov. Code Section 54956.9(d)(1))
Name of Case: Kenneth Washington, Kimberly Hagen, Marley Washington v. City of Hawthorne, et al.,
LASC Case No. 22STCV13645
ADJOURNMENT
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF HAWTHORNE )
I, DIANA CUCALON, Deputy City Clerk for the City of Hawthorne, certify that a true and correct copy of the foregoing City Council Meeting Agenda was posted not less than 72 hours before the City Council Meeting to be held on Tuesday, August 27, 2024 . __________________________________
DIANA CUCALON, HAWTHORNE DEPUTY CITY CLERK
AGENDA ITEM NO. 2
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of August 27, 2024
Originating Department: Licensing
City Manager: __________
Vontray Norris
Revenue & A/P Mgr: ___________
Shuntell Dixon
SUBJECT:
City Treasurer requests approval of the warrants. Motion to approve the warrants.
RECOMMENDED MOTION:
Staff Recommends that the City Council approve the warrants issued for the period of 08/14/2024 to 08/27/2024 in the total of $5,661,647.89.
DISCUSSION:
Staff plans to issue checks to the vendors that provide goods and services to the City of Hawthorne
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Develop and implement clear, business friendly methods of communicating useful and helpful information to vendors.
FISCAL IMPACT:
None. Funds for these payments with the amount of $5,661,647.89 are available in the adopted Fiscal Year 2024-2025 budget.
Description of Warrants Amount
Payroll City Warrants $ 1,120,729.77
General City Warrants $ 4,484,150.52
Housing Warrants $ -
Asset Forfeiture Warrants $ 56,767.60
Grand Total $ 5,661,647.89
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):
1. COUNCIL WARRANTS 08/27/2024
K:\Finance\COUNCIL APPROVAL OF WARRANTS\2025\Council approval of Warrants 082724.xlsx ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following Payroll City Warrants for your approval:
Date Start Ending Warrant type Total $
8/1/24 28200 28514 PAYROLL 887,539.64
8/1/24 196189 196229 PAYROLL 33,312.93
8/15/24 28515 28825 PAYROLL 165,362.00
8/15/24 196230 196268 PAYROLL 34,515.20
* Emergency Issue - for ratification only 1,120,729.77
State of California, County of Los Angeles SS:
The foregoing claims/demands/warrants have been filed with me; each one bearing an endorsement of the officer or employee of the department, requiring same, that the price is correct.
City Treasurer
City Clerk
CITY OF HAWTHORNE
FOR THE MEETING OF AUGUST 27, 2024
Warrant #s
ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following General City Warrants for your approval:
Date Start Ending Warrant type Total $
8/1/24 487188 487204 DEBT LEVIES 21,682.00
8/27/24 487211 487217 UTILITIES 86,344.73
8/27/24 487218 487273 CITY 241,796.63
8/27/24 487274 487408 CITY 4,040,195.74
8/15/24 487409 487425 DEBT LEVIES 21,123.69
8/19/24 487426 487433 CITY-SPECIAL 73,007.73
4,484,150.52
* Emergency Issue - for ratification only
State of California, County of Los Angeles SS:
The foregoing claims/demands/warrants have been filed with me; each one bearing an endorsement of the officer or employee of the department, requiring same, that the price is correct. City Treasurer
City Clerk
CITY OF HAWTHORNE
FOR THE MEETING OF AUGUST 27, 2024
Warrant #s
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 07/31/2024 15:08
User: sdixon
Program ID: appdwarr
CHECK: DL080124 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123239 CA DISBURSEMENT UNIT
81322 08/01/24 487188 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 704.30 INVOICE: 2024-17
VENDOR TOTALS 2,112.90 YTD INVOICED 2,112.90 YTD PAID 704.30 119637 CA SDU, STATE DISBURSEMENT UNIT
81318 08/01/24 487189 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 258.46 INVOICE: 2024-17
VENDOR TOTALS 775.38 YTD INVOICED 775.38 YTD PAID 258.46 119685 CA SDU, STATE DISBURSEMENT UNIT
81319 08/01/24 487190 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 177.69 INVOICE: 2024-17
VENDOR TOTALS 533.07 YTD INVOICED 533.07 YTD PAID 177.69 124099 CALIFORNIA STATE DISBURSEMENT UNIT
81320 08/01/24 487192 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 533.53 INVOICE: 2024-17
VENDOR TOTALS 533.53 YTD INVOICED 533.53 YTD PAID 533.53 123708 CALIFORNIA STATE DISBURSEMENT UNIT
81326 08/01/24 487191 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 126.00 INVOICE: 2024-17
VENDOR TOTALS 378.00 YTD INVOICED 378.00 YTD PAID 126.00 122863 FRANCHISE TAX BOARD
81321 08/01/24 487194 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 100.00 INVOICE: 2024-17
VENDOR TOTALS 300.00 YTD INVOICED 300.00 YTD PAID 100.00 123629 FRANCHISE TAX BOARD
81325 08/01/24 487195 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 150.00 INVOICE: 2024-17
VENDOR TOTALS 450.00 YTD INVOICED 450.00 YTD PAID 150.00 121291 FRANCHISE TAX BOARD
81327 08/01/24 487193 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 50.00 INVOICE: 2024-17
VENDOR TOTALS 150.00 YTD INVOICED 150.00 YTD PAID 50.00 4 H.M.E.A.
81313 08/01/24 487196 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 2,260.00 INVOICE: 2024-17
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 07/31/2024 15:08
User: sdixon
Program ID: appdwarr
CHECK: DL080124 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 6,820.00 YTD INVOICED 6,820.00 YTD PAID 2,260.00 99379 HAWTHORNE EXECUTIVE GROUP
81312 08/01/24 487197 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 360.00 INVOICE: 2024-17
VENDOR TOTALS 1,080.00 YTD INVOICED 1,080.00 YTD PAID 360.00 3 HAWTHORNE POLICE OFFICERS ASSN
81314 08/01/24 487198 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 4,872.93 INVOICE: 2024-17A
81315 08/01/24 487198 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 648.00 INVOICE: 2024-17B
81316 08/01/24 487198 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 3,117.35 INVOICE: 2024-17C
VENDOR TOTALS 25,179.24 YTD INVOICED 25,179.24 YTD PAID 8,638.28 123935 LOS ANGELES COUNTY SHERIFF'S DEPARTMENT
81329 08/01/24 487199 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 139.75 INVOICE: 2024-17
VENDOR TOTALS 419.25 YTD INVOICED 419.25 YTD PAID 139.75 115178 PRE PAID LEGAL SERVICES, INC.
81317 08/01/24 487200 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 142.55 INVOICE: 2024-17
VENDOR TOTALS 578.95 YTD INVOICED 578.95 YTD PAID 142.55 113121 TOTAL ADMINISTRATION SVCS CORP
81330 08/01/24 487201 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 341.53 INVOICE: 2024-17A
81331 08/01/24 487201 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 2,776.37 INVOICE: 2024-17B
VENDOR TOTALS 9,476.77 YTD INVOICED 9,762.23 YTD PAID 3,117.90 123898 TRANSWORLD SYSTEMS INC.
81328 08/01/24 487202 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 363.45 INVOICE: 2024-17
VENDOR TOTALS 1,090.35 YTD INVOICED 1,090.35 YTD PAID 363.45 103511 U.S. BANK PARS 6746022400, L.A. LOCKBOX 511649
81332 08/01/24 487203 P 08/01/24 960 20270 PARS LIABILITY 3,555.76 INVOICE: 2024-17A
81333 08/01/24 487203 P 08/01/24 960 20270 PARS LIABILITY 888.95 INVOICE: 2024-17B
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 07/31/2024 15:08
User: sdixon
Program ID: appdwarr
CHECK: DL080124 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 11,216.94 YTD INVOICED 11,216.94 YTD PAID 4,444.71 123240 VILLEGAS, ALBA
81323 08/01/24 487204 P 08/01/24 960 21600 ACCRUED WAGES PAYABLE 115.38 INVOICE: 2024-17
VENDOR TOTALS 346.14 YTD INVOICED 346.14 YTD PAID 115.38 REPORT TOTALS 21,682.00
COUNT AMOUNT
TOTAL PRINTED CHECKS 17 21,682.00
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:28
User: sdixon
Program ID: appdwarr
CHECK: U082724 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115783 AT&T
81002 06/27/24 487211 P 08/27/24 10001221 43054 TELEPHONE 435.07 INVOICE: JN9391057056
81004 07/10/24 487211 P 08/27/24 10001221 43054 TELEPHONE 155.55 INVOICE: JY9391053669
81407 03/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 499.22 INVOICE: MA9391036095
81408 04/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 513.39 INVOICE: AP9391036095
81409 06/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 502.11 INVOICE: JN9391036095
81410 07/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 498.11 INVOICE: JY9391036095
81411 07/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 602.33 INVOICE: JY9391036076
81412 07/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 498.11 INVOICE: JY9391036095
81413 07/13/24 487211 P 08/27/24 10001222 43054 TELEPHONE 267.32 INVOICE: JY9391026343
81414 06/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 602.33 INVOICE: JN9391036076
81415 07/20/24 487211 P 08/27/24 10001222 43054 TELEPHONE 478.66 INVOICE: JY9391026341
81416 07/20/24 487211 P 08/27/24 10001222 43054 TELEPHONE 139.87 INVOICE: JY9391031543
81417 07/20/24 487211 P 08/27/24 10001222 43054 TELEPHONE 65.68 INVOICE: JY9391031546
81418 07/19/24 487211 P 08/27/24 10001222 43054 TELEPHONE 5.25 INVOICE: JY9391026307
81419 07/20/24 487211 P 08/27/24 10001222 43054 TELEPHONE 65.68 INVOICE: JY9391031544
81420 07/13/24 487211 P 08/27/24 10001222 43054 TELEPHONE 83.37 INVOICE: JY9391031541
81421 07/12/24 487211 P 08/27/24 10001222 43054 TELEPHONE 84.25 INVOICE: JY9391026281
81422 07/12/24 487211 P 08/27/24 10061100 43054 TELEPHONE 29.12 INVOICE: JY9391026282
81423 07/12/24 487211 P 08/27/24 52035030 43054 TELEPHONE 4,045.85 INVOICE: JY9391026344
81570 07/27/24 487211 P 08/27/24 10001222 43054 TELEPHONE 97.97 INVOICE: JY9391026316
VENDOR TOTALS 2,632.06 YTD INVOICED 22,886.25 YTD PAID 9,669.24 103177 CALIFORNIA WATER SERVICE
81424 07/17/24 487212 P 08/27/24 10061100 45444 UTILITIES 98.98 INVOICE: JY6395574084
81425 07/17/24 487212 P 08/27/24 22041060 45444 UTILITIES 1,401.66 INVOICE: JY3089311111
81426 07/17/24 487212 P 08/27/24 10061100 45444 UTILITIES 44.26 INVOICE: JY1072582226
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:28
User: sdixon
Program ID: appdwarr
CHECK: U082724 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81427 07/17/24 487212 P 08/27/24 10061100 45444 UTILITIES 128.84 INVOICE: JY8717030744
81428 07/17/24 487212 P 08/27/24 10061100 45444 UTILITIES 46.89 INVOICE: JY4031446452
81429 07/17/24 487212 P 08/27/24 22041060 45444 UTILITIES 274.78 INVOICE: JY2207311111
81436 07/18/24 487212 P 08/27/24 46615731 45444 UTILITIES 585.52 INVOICE: JY7858758946
81437 07/18/24 487212 P 08/27/24 10061100 45444 UTILITIES 294.95 INVOICE: JY9056440300
81438 07/18/24 487212 P 08/27/24 22041060 45444 UTILITIES 316.24 INVOICE: JY9379311111
81439 07/19/24 487212 P 08/27/24 46847150 45444 UTILITIES 107.70 INVOICE: JY8816940090
81440 07/19/24 487212 P 08/27/24 22041060 45444 UTILITIES 26.47 INVOICE: JY3357207262
81441 07/18/24 487212 P 08/27/24 46715732 45444 UTILITIES 621.29 INVOICE: JY4046764921
81442 07/19/24 487212 P 08/27/24 10011500 45154 GENERAL EXPENSE 20.09 INVOICE: JY9004264798
81443 07/22/24 487212 P 08/27/24 10061100 45444 UTILITIES 592.12 INVOICE: JY5297758587
81444 07/24/24 487212 P 08/27/24 22041060 45444 UTILITIES 68.99 INVOICE: JY0866316861
81540 07/26/24 487212 P 08/27/24 22041060 45444 UTILITIES 44.66 INVOICE: JY3124149340
VENDOR TOTALS 20,761.67 YTD INVOICED 62,274.37 YTD PAID 4,673.44 18100 GOLDEN STATE WATER CO.
81430 07/15/24 487213 P 08/27/24 10061100 45444 UTILITIES 1,073.37 INVOICE: JY28617300000
81431 07/12/24 487213 P 08/27/24 32420030 41144 PHLA PROJECT 268.83 INVOICE: JY77948662174
81432 07/15/24 487213 P 08/27/24 10061100 45444 UTILITIES 995.90 INVOICE: JY77537000000
81433 07/15/24 487213 P 08/27/24 10061100 45444 UTILITIES 390.42 INVOICE: JY87617300006
VENDOR TOTALS 10,109.44 YTD INVOICED 23,351.41 YTD PAID 2,728.52 17953 SO CALIF EDISON CO
81445 07/25/24 487214 P 08/27/24 10061010 45444 UTILITIES 63.91 INVOICE: JY700414028780
81446 07/25/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 237.70 INVOICE: JY700413899448
81447 07/25/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 79.64 INVOICE: JY700412535081
81448 07/25/24 487214 P 08/27/24 10061010 45444 UTILITIES 106.39 INVOICE: JY700415041523
81449 07/24/24 487214 P 08/27/24 22041060 45444 UTILITIES 80.47 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:28
User: sdixon
Program ID: appdwarr
CHECK: U082724 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: JY700415434270
81450 07/25/24 487214 P 08/27/24 10061010 45444 UTILITIES 381.40 INVOICE: JY700123368078
81451 07/25/24 487214 P 08/27/24 20025000 45444 UTILITIES 28.29 INVOICE: JY700370247933
81452 07/25/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 81.42 INVOICE: JY700023530426
81453 07/22/24 487214 P 08/27/24 10061010 45444 UTILITIES 382.92 INVOICE: JY700415238048
81454 07/15/24 487214 P 08/27/24 20025000 45444 UTILITIES 261.90 INVOICE: JY700129840305
81455 07/15/24 487214 P 08/27/24 10041050 45444 UTILITIES 123.77 INVOICE: JY700415091942
81456 07/15/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 196.00 INVOICE: JY700415056980
81457 07/15/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 116.63 INVOICE: JY700026722534
81458 07/15/24 487214 P 08/27/24 20025000 45444 UTILITIES 130.20 INVOICE: JY700302504850
81459 07/15/24 487214 P 08/27/24 10041050 45444 UTILITIES 46.64 INVOICE: JY700250749286
81460 07/12/24 487214 P 08/27/24 20025000 45444 UTILITIES 15.68 INVOICE: JY700387810589
81461 07/16/24 487214 P 08/27/24 10041050 45444 UTILITIES 206.06 INVOICE: JY700441426331
81462 07/16/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 89.82 INVOICE: JY700415420833
81463 07/16/24 487214 P 08/27/24 22041060 45444 UTILITIES 78.94 INVOICE: JY700412390995
81464 07/16/24 487214 P 08/27/24 10041050 45444 UTILITIES 47.41 INVOICE: JY700382595225
81465 07/16/24 487214 P 08/27/24 20025000 45444 UTILITIES 182.57 INVOICE: JY700390586409
81466 07/16/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 29.57 INVOICE: JY700415270885
81467 07/16/24 487214 P 08/27/24 22041060 45444 UTILITIES 141.47 INVOICE: JY700415247344
81468 07/18/24 487214 P 08/27/24 46615731 45444 UTILITIES 75.82 INVOICE: JY700441364188
81469 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 165.79 INVOICE: JY700024150620
81485 07/18/24 487214 P 08/27/24 32420030 41144 PHLA PROJECT 1,582.20 INVOICE: JY700781445279
81486 07/18/24 487214 P 08/27/24 10061090 45444 UTILITIES 532.40 INVOICE: JY700573925503
81487 07/18/24 487214 P 08/27/24 20025000 45444 UTILITIES 134.40 INVOICE: JY700474337421
81488 07/18/24 487214 P 08/27/24 20025000 45444 UTILITIES 59.80 INVOICE: JY700474481507
81489 07/18/24 487214 P 08/27/24 10061010 45444 UTILITIES 13,237.70 INVOICE: JY700416586752
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:28
User: sdixon
Program ID: appdwarr
CHECK: U082724 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81490 07/18/24 487214 P 08/27/24 20025000 45444 UTILITIES 93.34 INVOICE: JY700133933301
81491 07/18/24 487214 P 08/27/24 10061090 45444 UTILITIES 148.05 INVOICE: JY700015713034
81492 07/18/24 487214 P 08/27/24 10041050 45444 UTILITIES 212.45 INVOICE: JY700819800190
81493 07/18/24 487214 P 08/27/24 10061010 45444 UTILITIES 41.35 INVOICE: JY700415539253
81510 07/18/24 487214 P 08/27/24 22041060 45444 UTILITIES 314.65 INVOICE: JY700663728305
81511 07/18/24 487214 P 08/27/24 10061010 45444 UTILITIES 230.85 INVOICE: JY700415512274
81512 07/18/24 487214 P 08/27/24 22041060 45444 UTILITIES 82.93 INVOICE: JY700415337573
81513 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 282.30 INVOICE: JY700415350812
81514 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 80.16 INVOICE: JY700028571901
81515 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 163.92 INVOICE: JY700415481861
81516 07/18/24 487214 P 08/27/24 10041050 45444 UTILITIES 106.19 INVOICE: JY700415178636
81517 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 117.78 INVOICE: JY700170837555
81518 07/19/24 487214 P 08/27/24 52035030 45444 UTILITIES 2,080.30 INVOICE: JY700362433975
81519 07/19/24 487214 P 08/27/24 46515730 45444 UTILITIES 78.61 INVOICE: JY700427237251
81519 07/19/24 487214 P 08/27/24 46615731 45444 UTILITIES 142.86 INVOICE: JY700427237251
81523 07/19/24 487214 P 08/27/24 22041060 45444 UTILITIES 244.02 INVOICE: JY700654091757
81524 07/19/24 487214 P 08/27/24 20025000 45444 UTILITIES 124.15 INVOICE: JY700602968212
81526 07/19/24 487214 P 08/27/24 20025000 45444 UTILITIES 1,913.54 INVOICE: JY700525278787
81527 07/19/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 78.84 INVOICE: JY700415229055
81528 07/19/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 165.41 INVOICE: JY700415456195
81529 07/15/24 487214 P 08/27/24 10041050 45444 UTILITIES 21,918.83 INVOICE: JY700415081232
81530 07/15/24 487214 P 08/27/24 46447150 42024 BUILDING MAINTENANCE 85.73 INVOICE: JY700541319153
81531 07/15/24 487214 P 08/27/24 10061010 45444 UTILITIES 75.07 INVOICE: JY700703880342
81532 07/15/24 487214 P 08/27/24 22041060 45444 UTILITIES 203.73 INVOICE: JY700413936329
81533 07/15/24 487214 P 08/27/24 20025000 45444 UTILITIES 109.63 INVOICE: JY700242400216
81534 07/18/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 159.05 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:28
User: sdixon
Program ID: appdwarr
CHECK: U082724 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: JY700414014232
81535 07/18/24 487214 P 08/27/24 20025000 45444 UTILITIES 96.01 INVOICE: JY700475567297
81537 07/18/24 487214 P 08/27/24 60031030 45444 UTILITIES 2,416.06 INVOICE: JY700415521772
81538 07/30/24 487214 P 08/27/24 22041060 42104 SIGNAL MAINTENANCE 93.73 INVOICE: JY700238897708
VENDOR TOTALS 124,621.48 YTD INVOICED 334,551.02 YTD PAID 50,756.45 18000 SO CALIF GAS CO
81434 07/30/24 487215 P 08/27/24 10061010 45444 UTILITIES 55.47 INVOICE: 09730449007
81435 07/02/24 487215 P 08/27/24 46615731 42024 BUILDING MAINTENANCE 386.91 INVOICE: 09680396372
81541 07/31/24 487215 P 08/27/24 10061100 45444 UTILITIES 20.46 INVOICE: 16330470002
81542 07/31/24 487215 P 08/27/24 10061010 45444 UTILITIES 36.03 INVOICE: 08140463004
81568 07/31/24 487215 P 08/27/24 10061010 45444 UTILITIES 16.65 INVOICE: 07510463859
VENDOR TOTALS 2,190.93 YTD INVOICED 12,329.68 YTD PAID 515.52 117117 T-MOBILE
81505 08/05/24 487217 T 08/27/24 10002215 41514 OPERATING SUPPLIES 115.00 INVOICE: 9575826488
81506 08/05/24 487217 T 08/27/24 10002215 41514 OPERATING SUPPLIES 115.00 INVOICE: 9575826489
VENDOR TOTALS 230.00 YTD INVOICED 230.00 YTD PAID 230.00 113605 VERIZON WIRELESS
81151 05/23/24 487216 P 08/27/24 10001221 43054 TELEPHONE 5,407.47 INVOICE: MY470985090-1
81152 04/23/24 487216 P 08/27/24 10001221 43054 TELEPHONE 5,339.93 INVOICE: AP470985090-1
81153 06/23/24 487216 P 08/27/24 10001221 43054 TELEPHONE 7,024.16 INVOICE: JN470985090-1
VENDOR TOTALS 17,771.56 YTD INVOICED 19,103.31 YTD PAID 17,771.56 REPORT TOTALS 86,344.73
COUNT AMOUNT
TOTAL PRINTED CHECKS 6 86,114.73
TOTAL EFT TRANSFERS 1 230.00
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 120612 ACCO ENGINEERED SYSTEMS, INC
81474 06/13/24 1855 487237 T 08/27/24 10041050 40654 AIR CONDITIONING MAINTENA 2,135.69 INVOICE: 20556218
81474 06/13/24 1855 487237 T 08/27/24 10041050 40654 AIR CONDITIONING MAINTENA 16,362.31 INVOICE: 20556218
VENDOR TOTALS .00 YTD INVOICED 23,563.44 YTD PAID 18,498.00 119085 AGUILAR, ROLANDO
81168 06/27/24 487238 T 08/27/24 60031030 42014 REPAIR & MAINTENANCE SUPP 1,175.00 INVOICE: 003991
VENDOR TOTALS .00 YTD INVOICED 1,175.00 YTD PAID 1,175.00 123570 ANIMAL PEST MANAGMENT SERVICES, INC.
79476 06/30/24 487239 T 08/27/24 10061100 40454 HEALTH INSURANCE BENEFITS 375.00 INVOICE: 716598
VENDOR TOTALS 375.00 YTD INVOICED 1,125.00 YTD PAID 375.00 122237 ARTH, BRANDON WAYNE
81595 05/08/24 487240 T 08/27/24 10001224 45184 TRAINING 40.00 INVOICE: 052705312024
VENDOR TOTALS 109.22 YTD INVOICED 40.00 YTD PAID 40.00
106126 SANDAN PLUMBING CO INC
81596 04/10/24 487241 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 320.00 INVOICE: S-111401
81597 05/20/24 487241 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 386.30 INVOICE: S-111690
81599 05/20/24 487241 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 222.76 INVOICE: S-111701
81601 05/21/24 487241 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 1,266.73 INVOICE: S-111714
81602 06/24/24 487241 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 796.00 INVOICE: S-111942
VENDOR TOTALS .00 YTD INVOICED 2,991.79 YTD PAID 2,991.79 110437 CATHOLIC CHARITIES OF
77549 03/15/24 1706 487242 T 08/27/24 10061060 40514 CONTRACT SERVICES 4,748.66 INVOICE: MARCH 2024
VENDOR TOTALS .00 YTD INVOICED 13,089.76 YTD PAID 4,748.66 123668 CITIGUARD, INC.
81188 04/02/24 1946 487243 T 08/27/24 18110020 40514 CONTRACT SERVICES 17,856.00 INVOICE: 58408
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 17,798.40 YTD INVOICED 35,654.40 YTD PAID 17,856.00 105166 CITY OF INGLEWOOD
81263 06/30/24 1709 487218 P 08/27/24 28034000 45384 PARATRANSIT DIAL A RIDE 13,697.35 INVOICE: APRIL-JUNE 2024
VENDOR TOTALS .00 YTD INVOICED 13,697.35 YTD PAID 13,697.35 122544 CITYWIDE RESTORATION, INC.
81587 02/02/24 487219 P 08/27/24 10000101 51114 BUSINESS LICENSE TAXES 75.00 INVOICE: req#2000-114893
VENDOR TOTALS .00 YTD INVOICED 75.00 YTD PAID 75.00
124098 CIVICPLUS, LLC.
79901 06/30/24 487220 P 08/27/24 10001222 40544 COMPUTER SERVICE 2,876.79 INVOICE: 309173
VENDOR TOTALS .00 YTD INVOICED 2,876.79 YTD PAID 2,876.79 115849 COLANTUONO,HIGHSMITH & WHATLEY, PC
81391 06/13/74 487244 T 08/27/24 10011500 40514 CONTRACT SERVICES 2,251.50 INVOICE: 60462
81618 05/14/24 2046 487244 T 08/27/24 10011500 40514 CONTRACT SERVICES 7,347.00 INVOICE: 60384
VENDOR TOTALS .00 YTD INVOICED 10,671.00 YTD PAID 9,598.50 124114 CONTRERAS, HENRY
81594 05/21/24 487221 P 08/27/24 10000109 51921 AQUATICS PROGRAM 110.00 INVOICE: REFUND 05/21/24
VENDOR TOTALS .00 YTD INVOICED 220.00 YTD PAID 110.00
104971 DELL MARKETING LP
80912 06/30/24 1695 487222 P 08/27/24 10001222 47404 MACHINERY & EQUIPMENT 22,592.97 INVOICE: 10760301653
VENDOR TOTALS .00 YTD INVOICED 29,299.53 YTD PAID 22,592.97 6550 EDDINGS BROTHERS INC.
81214 06/26/24 1748 487245 T 08/27/24 60031030 42064 PARTS 41.15 INVOICE: 926713
81225 06/24/24 1748 487245 T 08/27/24 60031030 42064 PARTS 196.45 INVOICE: 926542
81226 06/24/24 1748 487245 T 08/27/24 60031030 42064 PARTS 22.03 INVOICE: 926546
81228 06/21/24 1748 487245 T 08/27/24 60031030 42064 PARTS 77.16 INVOICE: 926461
81229 06/21/24 1748 487245 T 08/27/24 60031030 42064 PARTS 77.16 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 926459
81230 06/18/24 1748 487245 T 08/27/24 60031030 42064 PARTS 17.35 INVOICE: 926198
81231 06/17/24 1748 487245 T 08/27/24 60031030 42064 PARTS 165.26 INVOICE: 926099
81232 06/17/24 1748 487245 T 08/27/24 60031030 42064 PARTS 3,741.64 INVOICE: 926110
81233 06/03/24 1748 487245 T 08/27/24 60031030 42064 PARTS 259.70 INVOICE: 925307
81234 06/28/24 1748 487245 T 08/27/24 60031030 42064 PARTS 324.64 INVOICE: 926873
81235 06/13/24 1748 487245 T 08/27/24 60031030 42064 PARTS 20.68 INVOICE: 925946
81236 06/03/24 1748 487245 T 08/27/24 60031030 42064 PARTS 154.31 INVOICE: 925276
81238 06/11/24 1748 487245 T 08/27/24 60031030 42064 PARTS 72.63 INVOICE: 925779
81239 06/07/24 1748 487245 T 08/27/24 60031030 42064 PARTS 6.82 INVOICE: 925596
VENDOR TOTALS .00 YTD INVOICED 6,892.14 YTD PAID 5,176.98 114557 ENVIRONMENTAL SYSTEMS RESEARCH, INSTITUTE, (ESRI, 81584 04/09/24 1908 487246 T 08/27/24 10001222 40514 CONTRACT SERVICES 7,920.00 INVOICE: 94702342
VENDOR TOTALS .00 YTD INVOICED 7,920.00 YTD PAID 7,920.00 21010 FACILITY SOLUTIONS GROUP, INC.
81387 11/29/23 487247 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 570.59 INVOICE: 5406952-00
81388 06/26/24 487247 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 1,239.51 INVOICE: 5459357-00
81390 02/02/24 487247 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 1,208.73 INVOICE: 5424693-00
VENDOR TOTALS .00 YTD INVOICED 3,018.83 YTD PAID 3,018.83 123512 FAIR HOUSING FOUNDATION
81180 05/09/24 1756 487248 T 08/27/24 72748010 44704 FAIR HOUSING SERVICES 2,734.14 INVOICE: 10
81181 06/07/24 1756 487248 T 08/27/24 72748010 44704 FAIR HOUSING SERVICES 2,117.48 INVOICE: 11
81182 06/30/24 1756 487248 T 08/27/24 72748010 44704 FAIR HOUSING SERVICES 2,458.43 INVOICE: 12
VENDOR TOTALS .00 YTD INVOICED 7,310.05 YTD PAID 7,310.05 115709 FINE LINE AUTO BODY & PAINT
81253 06/12/24 487249 T 08/27/24 60031030 42004 COLLISION REPAIR 1,827.88 INVOICE: 17005
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81254 06/20/24 487249 T 08/27/24 60031030 42004 COLLISION REPAIR 742.48 INVOICE: 17008
81255 05/13/24 487249 T 08/27/24 60031030 42004 COLLISION REPAIR 4,763.03 INVOICE: 16132
VENDOR TOTALS 37,214.82 YTD INVOICED 24,902.27 YTD PAID 7,333.39 97578 GRAINGER INDUSTRIAL SUPPLY
81626 01/23/24 487250 T 08/27/24 60031030 42014 REPAIR & MAINTENANCE SUPP 76.30 INVOICE: 9972754783
VENDOR TOTALS 208.31 YTD INVOICED 1,364.49 YTD PAID 76.30 124092 GREEN, SHANELL
81589 05/21/24 487223 P 08/27/24 10000109 51928 YOUTH SPORTS 51.00 INVOICE: REFUND 05/21/24
VENDOR TOTALS .00 YTD INVOICED 93.50 YTD PAID 51.00
124139 HABIB, AHMED
81769 04/29/24 487224 P 08/27/24 10000109 51928 YOUTH SPORTS 51.00 INVOICE: REFUND 04/29/24
VENDOR TOTALS .00 YTD INVOICED 51.00 YTD PAID 51.00
123559 HARRIS, ALLEN
81076 06/27/24 487251 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 220.00 INVOICE: 06272024
VENDOR TOTALS 880.00 YTD INVOICED 828.00 YTD PAID 220.00 99952 HAWTHORNE PARKS AND
81189 02/21/24 487225 P 08/27/24 10011500 45104 DUES & SUBSCRIPTIONS 800.00 INVOICE: 02212024
VENDOR TOTALS .00 YTD INVOICED 800.00 YTD PAID 800.00
123641 HERRERA, BRANDON
81070 06/24/24 487252 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 480.00 INVOICE: 06242024
VENDOR TOTALS 450.00 YTD INVOICED 1,230.00 YTD PAID 480.00 121861 HINDERLITER, DE LLAMAS & ASSOC
81190 06/30/24 944 487253 T 08/27/24 10013010 40514 CONTRACT SERVICES 5,620.00 INVOICE: Sin040981
81191 06/30/24 944 487253 T 08/27/24 10013010 40514 CONTRACT SERVICES 1,790.00 INVOICE: SIN040982
VENDOR TOTALS 5,812.15 YTD INVOICED 15,974.77 YTD PAID 7,410.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 108208 HOME PIPE & SUPPLY
79523 06/12/24 487226 P 08/27/24 10061100 41514 OPERATING SUPPLIES 161.94 INVOICE: F48676
79524 06/20/24 487226 P 08/27/24 10061100 41514 OPERATING SUPPLIES 3.44 INVOICE: F48697
VENDOR TOTALS 252.02 YTD INVOICED 165.38 YTD PAID 165.38 124133 KALLAS, JEANNETTE
81592 05/24/24 487227 P 08/27/24 10000109 51928 YOUTH SPORTS 51.00 INVOICE: REFUND 05/24/24
VENDOR TOTALS .00 YTD INVOICED 51.00 YTD PAID 51.00
123456 KIMLEY-HORN AND ASSOCIATES, INC.
81560 06/30/24 1676 487228 P 08/27/24 10041030 40514 CONTRACT SERVICES 7,476.29 INVOICE: 28684855-001
81561 06/30/24 1676 487228 P 08/27/24 10041030 40514 CONTRACT SERVICES 7,523.35 INVOICE: 28684855-105
VENDOR TOTALS .00 YTD INVOICED 14,999.64 YTD PAID 14,999.64 12317 CES HOLDINGS, LLC.
79479 05/23/24 487254 T 08/27/24 10061100 42514 SMALL TOOLS & MINOR EQUIP 176.03 INVOICE: 236511
VENDOR TOTALS 2,098.90 YTD INVOICED 3,150.59 YTD PAID 176.03 123445 KOURY ENGINEERING & TESTING, INC.
81299 06/30/24 487255 T 08/27/24 28402418 40514 CONTRACT SERVICES 4,115.00 INVOICE: 957685
VENDOR TOTALS .00 YTD INVOICED 4,115.00 YTD PAID 4,115.00 121776 LA UNIFORMS & TAILORING, INC.
81269 05/01/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 176.34 INVOICE: 21563
81271 05/01/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 458.42 INVOICE: 21576
81272 05/01/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 441.88 INVOICE: 21577
81273 05/01/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 886.49 INVOICE: 21580
81275 05/10/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 958.51 INVOICE: 21722
81277 05/20/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 107.99 INVOICE: 21835
81279 05/20/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 107.99 INVOICE: 21836
81280 05/20/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 621.53 INVOICE: 21837
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81282 05/21/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 107.99 INVOICE: 21855
81284 05/21/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 255.61 INVOICE: 21856
81286 05/21/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 270.00 INVOICE: 21859
81287 05/21/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 282.44 INVOICE: 21864
81288 05/22/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 220.50 INVOICE: 21876
81294 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 242.44 INVOICE: 21897
81295 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21918
81297 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21919
81298 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21920
81300 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21921
81301 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 225.74 INVOICE: 21922
81302 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21923
81303 05/23/24 487256 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 313.88 INVOICE: 21924
VENDOR TOTALS 2,589.55 YTD INVOICED 9,966.99 YTD PAID 7,247.15 107288 LAWSON PRODUCTS, INC.
81166 06/16/24 487257 T 08/27/24 60031030 42064 PARTS 171.87 INVOICE: 9311622746
81167 06/17/24 487257 T 08/27/24 60031030 42064 PARTS 4.07 INVOICE: 9311625257
VENDOR TOTALS .00 YTD INVOICED 304.89 YTD PAID 175.94
121652 LOBBY TRAFFIC SYSTEMS, INC.
81264 06/11/24 487258 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 709.99 INVOICE: 76784
VENDOR TOTALS .00 YTD INVOICED 6,492.55 YTD PAID 709.99 123643 MACIAS, FRANCISCO
81074 06/24/24 487259 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 270.00 INVOICE: 06242024
VENDOR TOTALS 760.00 YTD INVOICED 990.00 YTD PAID 270.00 124132 MURO. IRMA
81590 05/21/24 487229 P 08/27/24 10000109 51921 AQUATICS PROGRAM 55.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: REFUND 05/21/24
81770 05/21/24 487229 P 08/27/24 10000109 51921 AQUATICS PROGRAM 55.00 INVOICE: REFUND 05/21/24
VENDOR TOTALS .00 YTD INVOICED 110.00 YTD PAID 110.00
120965 NEW LOOK AUTO DETAIL
81259 05/27/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 405.00 INVOICE: 3181
81261 05/21/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 290.00 INVOICE: 3179
81265 05/28/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 260.00 INVOICE: 3182
81266 05/16/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 420.00 INVOICE: 3177
81268 05/20/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 3178
81270 06/27/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 445.00 INVOICE: 3207
81274 06/06/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 3196
81276 06/04/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 310.00 INVOICE: 3195
81278 06/03/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 3194
81281 06/13/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 3199
81283 06/11/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 235.00 INVOICE: 3198
81285 06/10/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 445.00 INVOICE: 3197
81289 06/25/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 355.00 INVOICE: 3206
81290 06/24/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 435.00 INVOICE: 3205
81291 06/21/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 425.00 INVOICE: 3202
81292 06/18/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 380.00 INVOICE: 3201
81293 06/17/24 487260 T 08/27/24 60031030 40514 CONTRACT SERVICES 440.00 INVOICE: 3200
VENDOR TOTALS .00 YTD INVOICED 12,090.00 YTD PAID 6,585.00 124112 NG, KENNY
80862 05/08/24 487261 T 08/27/24 25019020 45064 SETTLEMENTS / JUDGEMENTS 3,394.32 INVOICE: 5/8/2024
VENDOR TOTALS .00 YTD INVOICED 3,394.32 YTD PAID 3,394.32 93771 P S I
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81624 06/19/24 487230 P 08/27/24 60031030 42064 PARTS 443.51 INVOICE: 45665
VENDOR TOTALS .00 YTD INVOICED 443.51 YTD PAID 443.51
99213 PARKHOUSE TIRE, INC.
81248 05/23/24 487262 T 08/27/24 60031030 42554 TIRES 930.98 INVOICE: 1010980966
81250 05/22/24 487262 T 08/27/24 60031030 42554 TIRES 510.00 INVOICE: 1010980973
81251 05/29/24 487262 T 08/27/24 60031030 42554 TIRES 1,319.37 INVOICE: 1010981127
VENDOR TOTALS 6,843.68 YTD INVOICED 12,288.30 YTD PAID 2,760.35 124117 PIMENTEL RICHARD
81221 08/29/23 487231 P 08/27/24 10000109 51974 PLAN CHECK & SITE INSPEC 1,940.40 INVOICE: RFUND 08/29/23
VENDOR TOTALS .00 YTD INVOICED 1,940.40 YTD PAID 1,940.40 122873 QUADIENT LEASING USA, INC.
81736 05/20/24 487232 P 08/27/24 10011500 43044 POSTAGE 1,071.84 INVOICE: Q1343040
VENDOR TOTALS .00 YTD INVOICED 1,071.84 YTD PAID 1,071.84 123234 REECE SUPPLY, LLC
77988 05/28/24 487234 P 08/27/24 10061100 41514 OPERATING SUPPLIES 16.11 INVOICE: S118197678.001
77993 05/22/24 487233 P 08/27/24 10061100 41514 OPERATING SUPPLIES 13.72 INVOICE: S118169812.001
79364 05/13/24 487234 P 08/27/24 10061100 41514 OPERATING SUPPLIES 7.08 INVOICE: S118099213.001
VENDOR TOTALS 290.57 YTD INVOICED 1,015.13 YTD PAID 36.91 112919 RICOH USA, INC.
81035 06/28/24 2039 487263 T 08/27/24 10110010 41004 VIRTUAL ELECTRONIC DOC MI 18,870.58 INVOICE: 1100891572
VENDOR TOTALS 3,403.06 YTD INVOICED 36,798.72 YTD PAID 18,870.58 122928 RODOLFO RAMOS
81470 06/30/24 1692 487235 P 08/27/24 10001222 40644 PUBLIC SAFETY INFO SRVCE 5,000.00 INVOICE: 0630-PD
VENDOR TOTALS .00 YTD INVOICED 5,000.00 YTD PAID 5,000.00 124130 SANDOVAL, OCTAVIO
81593 06/25/24 487236 P 08/27/24 10000109 51929 RECREATION CLASSES 34.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: REFUND 06/25/24
VENDOR TOTALS .00 YTD INVOICED 34.00 YTD PAID 34.00
118382 FITCH, ROBERT A.
77755 06/05/24 487264 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 2,083.20 INVOICE: 06052024
VENDOR TOTALS 1,814.40 YTD INVOICED 3,225.60 YTD PAID 2,083.20 121161 SKOVOLD, JOHNATHON
81267 04/12/24 487265 T 08/27/24 10001224 45184 TRAINING 405.00 INVOICE: 040804122024
VENDOR TOTALS .00 YTD INVOICED 405.00 YTD PAID 405.00
17651 SMARDAN SUPPLY CO.
81694 05/06/24 487266 T 08/27/24 10061100 42014 REPAIR & MAINTENANCE SUPP 377.88 INVOICE: S4089562.001
VENDOR TOTALS 272.74 YTD INVOICED 1,149.72 YTD PAID 377.88 101153 SOUTH BAY FORD
81178 05/09/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 58.43 INVOICE: 488287
81197 05/04/24 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES -82.69 INVOICE: CM486270
81198 05/24/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 878.47 INVOICE: 490554
81199 06/06/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 878.43 INVOICE: 492413
81200 06/18/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 115.28 INVOICE: 493869
81201 06/18/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 87.45 INVOICE: 494110
81203 06/17/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 652.55 INVOICE: 494014
81204 06/17/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 55.01 INVOICE: 493867
81205 06/14/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 2,663.38 INVOICE: 522619
81206 06/14/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 146.32 INVOICE: 493398
81207 06/10/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 449.56 INVOICE: 492877
81208 06/10/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 952.43 INVOICE: 492876
81210 06/10/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 449.56 INVOICE: 493000
81211 06/06/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 877.01 INVOICE: 522543
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81213 06/06/24 1962 487267 T 08/27/24 60031030 40514 CONTRACT SERVICES 264.57 INVOICE: 492442
VENDOR TOTALS .00 YTD INVOICED 63,511.94 YTD PAID 8,445.76 17857 SOUTH BAY REGIONAL PUBLIC
81336 04/23/24 2045 487268 T 08/27/24 10001221 47424 SBRPCA - EQUIPMENT 6,428.95 INVOICE: 04468
VENDOR TOTALS 1,057,848.40 YTD INVOICED 1,114,370.20 YTD PAID 6,428.95 123415 TRIPEPI, SMITH AND ASSOCIATES, INC.
81192 06/30/24 487269 T 08/27/24 10013010 43044 POSTAGE 1,271.25 INVOICE: 12674
81195 06/30/24 2041 487269 T 08/27/24 18110040 44794 MARKETING ASSISTANT PROG 5,000.00 INVOICE: 12647
VENDOR TOTALS .00 YTD INVOICED 21,041.25 YTD PAID 6,271.25 124080 VALADEZ, RICHARD
80980 05/30/24 487270 T 08/27/24 10001224 45184 TRAINING 670.94 INVOICE: 042205032024
VENDOR TOTALS .00 YTD INVOICED 670.94 YTD PAID 670.94
121110 VITAL MEDICAL SERVICES, LLC
80847 05/31/24 752 487271 T 08/27/24 10002220 40724 MEDICAL & AMBULANCE 1,380.00 INVOICE: 4457
VENDOR TOTALS .00 YTD INVOICED 22,406.00 YTD PAID 1,380.00 120963 WEBIPLEX, INC.
80968 06/25/24 2037 487272 T 08/27/24 23021020 47404 MACHINERY & EQUIPMENT 10,854.00 INVOICE: SI-014274
VENDOR TOTALS .00 YTD INVOICED 10,854.00 YTD PAID 10,854.00 122925 YASER KHOUJA
81306 06/30/24 1725 487273 T 08/27/24 10001222 40644 PUBLIC SAFETY INFO SRVCE 800.00 INVOICE: 0027
81308 06/30/24 1725 487273 T 08/27/24 10001222 40644 PUBLIC SAFETY INFO SRVCE 1,440.00 INVOICE: 0028
VENDOR TOTALS .00 YTD INVOICED 8,160.00 YTD PAID 2,240.00 REPORT TOTALS 241,796.63
COUNT AMOUNT
TOTAL PRINTED CHECKS 19 64,106.79
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 11:53
User: sdixon
Program ID: appdwarr
CHECK: C082724A TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION TOTAL EFT TRANSFERS 37 177,689.84
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 122920 4283929 DELAWARE LLC.
81503 07/31/24 487304 T 08/27/24 10001230 40514 CONTRACT SERVICES 158.00 INVOICE: WC11536-I-0041
VENDOR TOTALS 158.00 YTD INVOICED 158.00 YTD PAID 158.00 118356 ABBOT INDUSTRIAL SUPPLIES INT'L INC.
81216 07/23/24 487305 T 08/27/24 100 13100 INVENTORY MATERIALS & SUP 4,729.73 INVOICE: 55261
VENDOR TOTALS 4,729.73 YTD INVOICED 4,729.73 YTD PAID 4,729.73 123058 ACCESS INFORMATION INTERMEDIATE HOLDINGS I, LLC. 81472 07/31/24 487306 T 08/27/24 10013010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81472 07/31/24 487306 T 08/27/24 10015010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81472 07/31/24 487306 T 08/27/24 10016010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81472 07/31/24 487306 T 08/27/24 10016020 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81472 07/31/24 487306 T 08/27/24 10017010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81472 07/31/24 487306 T 08/27/24 10043010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81473 07/31/24 487306 T 08/27/24 81044010 41514 OPERATING SUPPLIES 111.20 INVOICE: 11064958
81543 07/31/24 487306 T 08/27/24 10002215 41514 OPERATING SUPPLIES 1,170.45 INVOICE: 11064960
VENDOR TOTALS 1,948.85 YTD INVOICED 3,696.35 YTD PAID 1,948.85 117802 ADVANCED BATTERY SYSTEMS, INC.
81351 07/05/24 487307 T 08/27/24 60031030 42064 PARTS 300.72 INVOICE: 10032784
81353 07/08/24 487307 T 08/27/24 60031030 42064 PARTS 296.31 INVOICE: 350876
VENDOR TOTALS 597.03 YTD INVOICED 597.03 YTD PAID 597.03 116315 AFLAC
81244 07/12/24 487308 T 08/27/24 990 20900 INSURANCE BENEFITS 5,676.34 INVOICE: 704171
VENDOR TOTALS 5,676.34 YTD INVOICED 5,676.34 YTD PAID 5,676.34 111720 AMAZING BALLOONS BY GEE, LLC.
81498 08/02/24 487309 T 08/27/24 10061020 41514 OPERATING SUPPLIES 474.08 INVOICE: 2021-2922
81670 08/05/24 487309 T 08/27/24 10061050 49584 RECREATION SUPPLIES ACCOU 341.78 INVOICE: 2021-2926
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 815.86 YTD INVOICED 1,047.39 YTD PAID 815.86 106685 AMERICAN PLANNING ASSOCIATION
81335 07/06/24 487274 P 08/27/24 10042010 45104 DUES & SUBSCRIPTIONS 323.00 INVOICE: 328855-202410
VENDOR TOTALS 323.00 YTD INVOICED 323.00 YTD PAID 323.00 118713 AMIGOS NURSERY LLC-1
81683 07/23/24 487310 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 445.63 INVOICE: 3111
VENDOR TOTALS 445.63 YTD INVOICED 445.63 YTD PAID 445.63 114567 ANGEL'S AUTO ELECTRIC
81639 07/26/24 32 487311 T 08/27/24 60031030 42014 REPAIR & MAINTENANCE SUPP 1,452.95 INVOICE: 8375
81640 07/29/24 32 487311 T 08/27/24 60031030 42014 REPAIR & MAINTENANCE SUPP 1,073.45 INVOICE: 8382
VENDOR TOTALS 2,526.40 YTD INVOICED 5,003.28 YTD PAID 2,526.40 123570 ANIMAL PEST MANAGMENT SERVICES, INC.
81378 07/31/24 487312 T 08/27/24 10061100 40514 CONTRACT SERVICES 375.00 INVOICE: 716599
VENDOR TOTALS 375.00 YTD INVOICED 1,500.00 YTD PAID 375.00 122237 ARTH, BRANDON WAYNE
81556 08/05/24 487313 T 08/27/24 10001224 45184 TRAINING 109.22 INVOICE: 072207242024
VENDOR TOTALS 109.22 YTD INVOICED 149.22 YTD PAID 109.22 122831 BANDERA, DARIO A.
81354 07/09/24 487314 T 08/27/24 60031030 42064 PARTS 280.00 INVOICE: 07924
VENDOR TOTALS 280.00 YTD INVOICED 1,380.00 YTD PAID 280.00 120909 BARLIN, ANTHONY
81557 08/05/24 487315 T 08/27/24 10001224 45184 TRAINING 312.69 INVOICE: 071507192024
VENDOR TOTALS 312.69 YTD INVOICED 834.69 YTD PAID 312.69 113874 BELL, LAMEKA D.
81502 07/31/24 487316 T 08/27/24 10001206 41514 OPERATING SUPPLIES 71.00 INVOICE: REIMB. 7/24/2024
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 71.00 YTD INVOICED 153.00 YTD PAID 71.00
123560 BELLMAR, TONY
81062 07/20/24 487317 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 78.00 INVOICE: 07202024
81689 07/27/24 487317 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 78.00 INVOICE: 07272024
81690 08/10/24 487317 T 08/27/24 10061050 41514 OPERATING SUPPLIES 52.00 INVOICE: 081102024
VENDOR TOTALS 286.00 YTD INVOICED 286.00 YTD PAID 208.00 117898 BMI GENERAL LICENSING
81726 07/02/24 487275 P 08/27/24 10011100 45104 DUES & SUBSCRIPTIONS 33.00 INVOICE: 54170901
VENDOR TOTALS 33.00 YTD INVOICED 1,074.00 YTD PAID 33.00 116616 BOWIE, KYWANNA D.
79929 07/08/24 487276 P 08/27/24 10021010 41514 OPERATING SUPPLIES 400.00 INVOICE: REIMB
VENDOR TOTALS 400.00 YTD INVOICED 400.00 YTD PAID 400.00 124131 BRAVO, GINA PEREZ
81591 05/21/24 487277 P 08/27/24 10000109 51928 YOUTH SPORTS 60.00 INVOICE: REFUND 05/21/24
VENDOR TOTALS .00 YTD INVOICED 60.00 YTD PAID 60.00
123556 BROWN, KELVIN JEROME
81607 08/07/24 487318 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 3,637.20 INVOICE: 08072024
VENDOR TOTALS 3,637.20 YTD INVOICED 3,637.20 YTD PAID 3,637.20 119890 BRYANT, CHARLES
81654 07/27/24 487319 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 260.00 INVOICE: 07272024
81713 08/10/24 487319 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 208.00 INVOICE: 081024
81725 07/13/24 487319 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 156.00 INVOICE: 07132024
VENDOR TOTALS 728.00 YTD INVOICED 978.00 YTD PAID 624.00 110001 C A C E O
81309 07/25/24 487320 T 08/27/24 10042040 45184 TRAINING 34.00 INVOICE: 200030389
81310 07/23/24 487320 T 08/27/24 10042040 45184 TRAINING 34.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 200030318
81311 07/23/24 487320 T 08/27/24 10042040 45184 TRAINING 34.00 INVOICE: 200030322
VENDOR TOTALS 102.00 YTD INVOICED 318.00 YTD PAID 102.00 124123 CALIFORNIA MUNICIPAL STATISTICS, INC.
81296 07/17/24 487278 P 08/27/24 10016010 40514 CONTRACT SERVICES 550.00 INVOICE: 24071701
VENDOR TOTALS .00 YTD INVOICED 550.00 YTD PAID 550.00
123999 ACEVEDO, CRYSTAL MORALES
81608 08/07/24 487321 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 882.00 INVOICE: 08072024
VENDOR TOTALS 882.00 YTD INVOICED 1,386.00 YTD PAID 882.00 123927 CATCHING, LAURYN
81710 08/10/24 487322 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 52.00 INVOICE: 081024
VENDOR TOTALS 338.00 YTD INVOICED 416.00 YTD PAID 52.00 116355 PRIME HEALTHCARE CENTINELA, LLC.
81499 06/25/24 487323 T 08/27/24 10002220 40724 MEDICAL & AMBULANCE 750.00 INVOICE: VAN54171
81500 07/05/24 487323 T 08/27/24 10002220 40724 MEDICAL & AMBULANCE 750.00 INVOICE: VAN56168
VENDOR TOTALS .00 YTD INVOICED 4,500.00 YTD PAID 1,500.00 114222 CENTINELA RADIOLOGY MED GRP
81501 07/04/24 487279 P 08/27/24 10002220 40724 MEDICAL & AMBULANCE 427.48 INVOICE: 6831286
VENDOR TOTALS .00 YTD INVOICED 427.48 YTD PAID 427.48
123567 CIVICA LAW GROUP, APC
81753 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 1,263.60 INVOICE: 13537
81754 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 1,117.80 INVOICE: 13538
81755 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 72.90 INVOICE: 13539
81756 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 660.20 INVOICE: 13540
81757 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 6,801.40 INVOICE: 13541
81759 08/01/24 65 487324 T 08/27/24 10015010 40744 RECEIVERSHIPS 48.60 INVOICE: 13542
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 28,655.56 YTD INVOICED 31,868.66 YTD PAID 9,964.50 108324 COASTLINE EQUIPMENT
81341 07/03/24 487280 P 08/27/24 60031030 42064 PARTS 200.98 INVOICE: 1146155
81364 07/12/24 487280 P 08/27/24 60031030 42064 PARTS 62.24 INVOICE: 1148309
VENDOR TOTALS 263.22 YTD INVOICED 263.22 YTD PAID 263.22 91961 GPC INC.
72287 11/21/23 487281 P 08/27/24 60031030 42064 PARTS -18.00 INVOICE: 003416
72294 11/28/23 487281 P 08/27/24 60031030 42064 PARTS -19.71 INVOICE: 004229
72295 11/07/23 487281 P 08/27/24 60031030 42064 PARTS -18.00 INVOICE: 001028
72298 11/13/23 487281 P 08/27/24 60031030 42064 PARTS -66.00 INVOICE: 002129
74214 01/30/24 1777 487281 P 08/27/24 60031030 42064 PARTS 243.88 INVOICE: 013069
74216 02/28/24 1777 487281 P 08/27/24 60031030 42064 PARTS 585.70 INVOICE: 016997
74217 02/06/24 1777 487281 P 08/27/24 60031030 42064 PARTS 26.04 INVOICE: 013863
74218 02/14/24 1777 487281 P 08/27/24 60031030 42064 PARTS 324.59 INVOICE: 015063
74219 02/14/24 1777 487281 P 08/27/24 60031030 42064 PARTS 28.82 INVOICE: 014981
74220 02/16/24 1777 487281 P 08/27/24 60031030 42064 PARTS 212.67 INVOICE: 015341
74221 02/26/24 1777 487281 P 08/27/24 60031030 42064 PARTS 65.18 INVOICE: 016487
74222 01/04/24 1777 487281 P 08/27/24 60031030 42064 PARTS 6.41 INVOICE: 009344
74223 01/17/24 1777 487281 P 08/27/24 60031030 42064 PARTS 356.79 INVOICE: 011320
74224 01/02/24 1777 487281 P 08/27/24 60031030 42064 PARTS 375.97 INVOICE: 009015
74225 02/21/24 1777 487281 P 08/27/24 60031030 42064 PARTS 13.21 INVOICE: 015921
80805 03/12/24 487325 T 08/27/24 60031030 42064 PARTS -182.84 INVOICE: 018569
81684 07/10/24 21 487325 T 08/27/24 60031030 42064 PARTS 132.17 INVOICE: 033154
81686 07/31/24 21 487325 T 08/27/24 60031030 42064 PARTS 63.90 INVOICE: 035770
81691 07/30/24 21 487325 T 08/27/24 60031030 42064 PARTS 22.42 INVOICE: 035499
81692 07/29/24 21 487325 T 08/27/24 60031030 42064 PARTS 239.23 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 035335
81695 07/16/24 21 487325 T 08/27/24 60031030 42064 PARTS 814.60 INVOICE: 033816
81696 07/16/24 21 487325 T 08/27/24 60031030 42064 PARTS 5.29 INVOICE: 033827
81697 07/16/24 21 487325 T 08/27/24 60031030 42064 PARTS 50.23 INVOICE: 033833
81698 07/16/24 21 487325 T 08/27/24 60031030 42064 PARTS 41.01 INVOICE: 033863
81699 07/22/24 21 487325 T 08/27/24 60031030 42064 PARTS 237.92 INVOICE: 034646
81700 07/23/24 21 487325 T 08/27/24 60031030 42064 PARTS 117.20 INVOICE: 034752
81701 07/10/24 21 487325 T 08/27/24 60031030 42064 PARTS 146.04 INVOICE: 033087
81702 07/09/24 21 487325 T 08/27/24 60031030 42064 PARTS 485.53 INVOICE: 032914
VENDOR TOTALS 2,355.54 YTD INVOICED 5,099.61 YTD PAID 4,290.25 122446 CONTRERAS, FRANKIE
81658 07/05/24 487326 T 08/27/24 29054010 45604 FINANCIAL INCENTIVES 30.00 INVOICE: 2900-111722
VENDOR TOTALS 30.00 YTD INVOICED 90.00 YTD PAID 30.00
92043 COUNTRY HILLS ANIMAL CLINIC
81507 07/24/24 487327 T 08/27/24 10002205 45594 K-9 EXPENSES 240.70 INVOICE: 288225
81508 07/25/24 487327 T 08/27/24 10002205 45594 K-9 EXPENSES 110.49 INVOICE: 288249
81509 07/30/24 487327 T 08/27/24 10002205 45594 K-9 EXPENSES 207.04 INVOICE: 288401
VENDOR TOTALS 558.23 YTD INVOICED 1,066.45 YTD PAID 558.23 119887 DEWEY PEST CONTROL
80909 07/01/24 487282 P 08/27/24 18110020 40514 CONTRACT SERVICES 150.00 INVOICE: 16777190
80910 07/01/24 487282 P 08/27/24 18110020 40514 CONTRACT SERVICES 162.00 INVOICE: 16783974
80911 07/01/24 487282 P 08/27/24 18110020 40514 CONTRACT SERVICES 35.00 INVOICE: 16785868
81751 07/26/24 487282 P 08/27/24 18110020 40514 CONTRACT SERVICES 450.00 INVOICE: 16811292
VENDOR TOTALS 797.00 YTD INVOICED 1,489.00 YTD PAID 797.00 123858 DK SANDLER BROTHERS
81217 07/22/24 487328 T 08/27/24 100 13100 INVENTORY MATERIALS & SUP 932.72 INVOICE: 0249427-IN
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 932.72 YTD INVOICED 932.72 YTD PAID 932.72 124104 DONOVAN, HANK
81662 08/03/24 487329 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 130.00 INVOICE: 08032024
VENDOR TOTALS 338.00 YTD INVOICED 338.00 YTD PAID 130.00 105084 E J WARD INC.
81355 07/11/24 25 487330 T 08/27/24 60031030 47304 IMPROV OTHER THAN BUILDIN 7,188.00 INVOICE: 3000627-IN
VENDOR TOTALS 7,188.00 YTD INVOICED 9,247.30 YTD PAID 7,188.00 103766 EWING IRRIGATION PRODUCTS
81398 07/11/24 487331 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 147.41 INVOICE: 22838885
81406 07/11/24 487331 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 204.49 INVOICE: 22834616
VENDOR TOTALS 351.90 YTD INVOICED 351.90 YTD PAID 351.90 115709 FINE LINE AUTO BODY & PAINT
81338 07/09/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 5,110.82 INVOICE: 17010
81476 07/15/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 2,245.76 INVOICE: 17011
81482 07/19/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 1,420.09 INVOICE: 17012
81495 07/24/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 7,086.76 INVOICE: 17014
81536 07/30/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 7,785.89 INVOICE: 17015
81539 07/30/24 28 487332 T 08/27/24 60031030 42004 COLLISION REPAIR 13,565.50 INVOICE: 17016
VENDOR TOTALS 37,214.82 YTD INVOICED 62,117.09 YTD PAID 37,214.82 120493 CORPAY, INC./CORPAY TECHNOLOGIES OPERATING CO. LLC 81604 08/05/24 487283 P 08/27/24 60031030 45144 GASOLINE & OIL 3,062.40 INVOICE: NP66910981
VENDOR TOTALS 3,062.40 YTD INVOICED 6,460.37 YTD PAID 3,062.40 124124 GARCIA, ALEJANDRA YANEZ
81613 08/07/24 487333 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 1,209.60 INVOICE: 08072024
VENDOR TOTALS 1,209.60 YTD INVOICED 1,209.60 YTD PAID 1,209.60 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 113236 GASKINS, GREG
81651 07/27/24 487334 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 104.00 INVOICE: 07272024
81712 08/10/24 487334 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 52.00 INVOICE: 081024
VENDOR TOTALS 234.00 YTD INVOICED 286.00 YTD PAID 156.00 116618 GOLDEN STATE ELEVATOR
81243 07/01/24 487284 P 08/27/24 52035030 40514 CONTRACT SERVICES 115.11 INVOICE: 00182706
VENDOR TOTALS 115.11 YTD INVOICED 230.22 YTD PAID 115.11 123599 GOVERNANCE SCIENCES GROUP, INC.
81196 04/22/24 59 487285 P 08/27/24 10042010 40514 CONTRACT SERVICES 12,900.00 INVOICE: 2023-HawthorneCA
VENDOR TOTALS 12,900.00 YTD INVOICED 12,900.00 YTD PAID 12,900.00 97578 GRAINGER INDUSTRIAL SUPPLY
81381 07/15/24 487335 T 08/27/24 10061070 41514 OPERATING SUPPLIES 152.20 INVOICE: 9182051640
81382 07/17/24 487335 T 08/27/24 10061070 41514 OPERATING SUPPLIES 56.11 INVOICE: 9184371855
VENDOR TOTALS 208.31 YTD INVOICED 1,572.80 YTD PAID 208.31 122755 GRBCON, INC.
81719 06/24/24 2048 487336 T 08/27/24 18110070 40514 CONTRACT SERVICES 144,048.30 INVOICE: Retention #7
VENDOR TOTALS 118,100.39 YTD INVOICED 262,148.69 YTD PAID 144,048.30 115883 GREENLAND SUPPLY INC.
81679 08/07/24 487337 T 08/27/24 10061100 41514 OPERATING SUPPLIES 281.40 INVOICE: 274158
VENDOR TOTALS 281.40 YTD INVOICED 1,015.05 YTD PAID 281.40 119891 GRIER, JR., ROBERT
81655 07/27/24 487338 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 78.00 INVOICE: 07272024
VENDOR TOTALS 156.00 YTD INVOICED 156.00 YTD PAID 78.00 121778 GSE SOLUTIONS
81565 08/06/24 487286 P 08/27/24 10041050 40514 CONTRACT SERVICES 2,310.00 INVOICE: 1223A
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 2,310.00 YTD INVOICED 2,310.00 YTD PAID 2,310.00 120536 HARRIS & ASSOCIATES, INC.
81576 08/05/24 693 487339 T 08/27/24 46101112 40514 CONTRACT SERVICES 2,980.00 INVOICE: 63834
81577 08/05/24 693 487339 T 08/27/24 46101112 40514 CONTRACT SERVICES 12,553.75 INVOICE: 63835
81598 08/05/24 370 487339 T 08/27/24 47846010 40514 CONTRACT SERVICES 12,000.00 INVOICE: 63837
81600 08/05/24 370 487339 T 08/27/24 47746010 40514 CONTRACT SERVICES 12,000.00 INVOICE: 63838
81616 07/10/24 487339 T 08/27/24 41046010 40514 CONTRACT SERVICES 320.00 INVOICE: 63458
81741 08/13/24 487339 T 08/27/24 10042010 40514 CONTRACT SERVICES 292.50 INVOICE: 64009
VENDOR TOTALS 3,292.50 YTD INVOICED 52,041.58 YTD PAID 40,146.25 123559 HARRIS, ALLEN
81163 07/24/24 487340 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 220.00 INVOICE: 07112024
81664 07/27/24 487340 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 104.00 INVOICE: 07272024
81666 07/25/24 487340 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 310.00 INVOICE: 07252024
VENDOR TOTALS 880.00 YTD INVOICED 1,462.00 YTD PAID 634.00 8950 HAWTHORNE HARDWARE
81366 07/25/24 487341 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 42.29 INVOICE: 445571
VENDOR TOTALS 67.60 YTD INVOICED 155.51 YTD PAID 42.29
121449 HDL COREN & CONE
81157 07/23/24 1730 487342 T 08/27/24 10016010 40514 CONTRACT SERVICES 4,553.57 INVOICE: SIN041228
81220 07/25/24 487342 T 08/27/24 10016010 40514 CONTRACT SERVICES 695.00 INVOICE: SIN041489
VENDOR TOTALS 4,553.57 YTD INVOICED 5,248.57 YTD PAID 5,248.57 105919 HERALD PUBLICATIONS
81356 07/31/24 487343 T 08/27/24 10042010 43024 LEGAL ADVERTISING 120.00 INVOICE: 61891
81357 07/31/24 487343 T 08/27/24 78948010 43024 LEGAL ADVERTISING 330.00 INVOICE: 61892
81358 07/31/24 487343 T 08/27/24 78948010 43024 LEGAL ADVERTISING 60.00 INVOICE: 61893
81358 07/31/24 487343 T 08/27/24 72748010 43024 LEGAL ADVERTISING 330.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 61893
81648 08/08/24 487343 T 08/27/24 10042010 43024 LEGAL ADVERTISING 105.00 INVOICE: 61912
81649 08/08/24 487343 T 08/27/24 10042010 43024 LEGAL ADVERTISING 105.00 INVOICE: 61913
VENDOR TOTALS 2,130.00 YTD INVOICED 2,340.00 YTD PAID 1,050.00 123641 HERRERA, BRANDON
81161 07/24/24 487344 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 230.00 INVOICE: 07082024
81668 07/29/24 487344 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 130.00 INVOICE: 07292024
VENDOR TOTALS 450.00 YTD INVOICED 1,590.00 YTD PAID 360.00 121861 HINDERLITER, DE LLAMAS & ASSOC
81777 08/11/24 1729 487345 T 08/27/24 10016010 40514 CONTRACT SERVICES 5,812.15 INVOICE: SIN041755
VENDOR TOTALS 5,812.15 YTD INVOICED 21,786.92 YTD PAID 5,812.15 108208 HOME PIPE & SUPPLY
81685 07/16/24 487287 P 08/27/24 10061100 42014 REPAIR & MAINTENANCE SUPP 18.56 INVOICE: F48835
81687 07/22/24 487287 P 08/27/24 10061100 42014 REPAIR & MAINTENANCE SUPP 233.46 INVOICE: F48850
VENDOR TOTALS 252.02 YTD INVOICED 417.40 YTD PAID 252.02 116524 HUNTINGTON BEACH HONDA
81483 07/19/24 487346 T 08/27/24 60031030 42064 PARTS 595.76 INVOICE: 116880
81681 08/09/24 487346 T 08/27/24 60031030 42064 PARTS 738.25 INVOICE: 117185
81682 08/09/24 487346 T 08/27/24 60031030 42064 PARTS 270.19 INVOICE: 117183
VENDOR TOTALS 1,604.20 YTD INVOICED 1,604.20 YTD PAID 1,604.20 124031 DISTRIBUTOR OPERATIONS INC.
81497 07/22/24 487347 T 08/27/24 60031030 42064 PARTS 1,142.86 INVOICE: 130110955
VENDOR TOTALS 1,142.86 YTD INVOICED 2,077.96 YTD PAID 1,142.86 115272 JEREZ AUTO DETAIL INC.
81343 07/03/24 487348 T 08/27/24 60031030 40514 CONTRACT SERVICES 120.00 INVOICE: 446350
81352 07/08/24 487348 T 08/27/24 60031030 40514 CONTRACT SERVICES 180.00 INVOICE: 781900
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81496 07/22/24 487348 T 08/27/24 60031030 40514 CONTRACT SERVICES 120.00 INVOICE: 792100
VENDOR TOTALS 420.00 YTD INVOICED 420.00 YTD PAID 420.00 123915 JOHNSON, ANDRE
81739 08/11/24 487288 P 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 52.00 INVOICE: 081124
VENDOR TOTALS 52.00 YTD INVOICED 52.00 YTD PAID 52.00
113091 K & P JANITORIAL SERVICES INC
81177 07/01/24 14 487349 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 14,213.00 INVOICE: 72906
VENDOR TOTALS 14,213.00 YTD INVOICED 34,314.00 YTD PAID 14,213.00 123926 KARPEL COMPUTER SYSTEMS INC.
81240 07/22/24 1880 487289 P 08/27/24 10015020 40514 CONTRACT SERVICES 1,983.91 INVOICE: 68210
VENDOR TOTALS 1,983.91 YTD INVOICED 1,983.91 YTD PAID 1,983.91 124122 KEEPER SECURITY, INC
81249 07/26/24 487350 T 08/27/24 10001222 40514 CONTRACT SERVICES 2,100.00 INVOICE: INV304486
VENDOR TOTALS 2,100.00 YTD INVOICED 2,100.00 YTD PAID 2,100.00 120281 KEMP, SHAUN
81558 08/05/24 487351 T 08/27/24 10001224 45184 TRAINING 413.02 INVOICE: 071407172024
VENDOR TOTALS 413.02 YTD INVOICED 1,093.72 YTD PAID 413.02 109121 KONE INC.
81615 08/01/24 487352 T 08/27/24 10041050 42014 REPAIR & MAINTENANCE SUPP 710.14 INVOICE: 871431235
VENDOR TOTALS 1,420.28 YTD INVOICED 2,130.42 YTD PAID 710.14 121387 KWON, HEECHEOL
81562 08/02/24 487353 T 08/27/24 10041020 40514 CONTRACT SERVICES 1,400.00 INVOICE: 2024-3
VENDOR TOTALS 1,400.00 YTD INVOICED 3,570.00 YTD PAID 1,400.00 102360 L A COUNTY FIRE DEPARTMENT
81637 08/02/24 54 487290 P 08/27/24 10050121 40774 COUNTY FIRE SERVICES 1,241,470.65 INVOICE: C0012332
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 3,598,095.51 YTD INVOICED 3,598,095.51 YTD PAID 1,241,470.65 121776 LA UNIFORMS & TAILORING, INC.
81546 07/09/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 121.22 INVOICE: 22554
81547 07/09/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 223.70 INVOICE: 22557
81548 07/09/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 16.48 INVOICE: 22566
81549 07/16/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 682.17 INVOICE: 22634
81551 07/19/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 609.41 INVOICE: 22670
81552 07/23/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 720.59 INVOICE: 22713
81554 07/29/24 13 487354 T 08/27/24 10001224 41614 UNIFORMS & SAFETY EQUIPME 215.98 INVOICE: 22802
VENDOR TOTALS 2,589.55 YTD INVOICED 12,556.54 YTD PAID 2,589.55 123749 JOHN LABIB STRUCTURAL ENGINEERS, LLP
81629 07/15/24 63 487355 T 08/27/24 50410040 40514 CONTRACT SERVICES 15,620.00 INVOICE: LFA60925
VENDOR TOTALS 15,620.00 YTD INVOICED 15,620.00 YTD PAID 15,620.00 123884 LOS ANGELES COUNTY CHIEF'S ASSOCIATION - LACPCA
81179 07/24/24 487291 P 08/27/24 10001224 45774 STC REIMBURSABLE EXPENSES 300.00 INVOICE: REG Tomatani 102924
VENDOR TOTALS 300.00 YTD INVOICED 300.00 YTD PAID 300.00 116247 LAMB, THEODORE
81176 07/31/24 487356 T 08/27/24 10015020 40514 CONTRACT SERVICES 2,520.00 INVOICE: 7-31-2024
VENDOR TOTALS 2,520.00 YTD INVOICED 7,200.00 YTD PAID 2,520.00 105204 LANDS' END BUSINESS OUTFITTERS
81575 08/05/24 487357 T 08/27/24 10042010 41514 OPERATING SUPPLIES -60.46 INVOICE: SCR1504443
81614 08/06/24 487357 T 08/27/24 10042010 41514 OPERATING SUPPLIES 69.41 INVOICE: SIN12229045
VENDOR TOTALS 752.94 YTD INVOICED 752.94 YTD PAID 8.95
123674 LATONA, TYLER
81603 08/05/24 487292 P 08/27/24 10001224 45184 TRAINING 322.07 INVOICE: 071507192024
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 322.07 YTD INVOICED 322.07 YTD PAID 322.07 118914 LAWRENCE ROLL UP DOORS, INC.
81605 07/31/24 487358 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 795.00 INVOICE: 2424046
VENDOR TOTALS 795.00 YTD INVOICED 795.00 YTD PAID 795.00 101286 SCP DISTRIBUTORS LLC
81367 07/31/24 487359 T 08/27/24 10061090 45754 SWIM POOL CHEMICALS 2,207.21 INVOICE: 37034637
81368 07/25/24 487359 T 08/27/24 10061090 45754 SWIM POOL CHEMICALS 2,494.19 INVOICE: 37033484
VENDOR TOTALS 10,663.39 YTD INVOICED 14,478.23 YTD PAID 4,701.40 106227 LITTLETON, ALICE
81611 08/07/24 487360 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 1,925.00 INVOICE: 08072024
VENDOR TOTALS 1,925.00 YTD INVOICED 1,925.00 YTD PAID 1,925.00 123643 MACIAS, FRANCISCO
81162 07/24/24 487361 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 260.00 INVOICE: 07112024
81667 07/25/24 487361 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 320.00 INVOICE: 07252024
VENDOR TOTALS 760.00 YTD INVOICED 1,570.00 YTD PAID 580.00 123637 MANNING, KATRINA
81172 07/22/24 487293 P 08/27/24 10011100 44654 EDUC. DEVELOPMENT - MANNI 2,625.00 INVOICE: 072224manning
VENDOR TOTALS 2,625.00 YTD INVOICED 2,625.00 YTD PAID 2,625.00 123514 MARQUEZ CABLE SYSTEMS, INC.
81553 08/06/24 487294 P 08/27/24 52035030 40514 CONTRACT SERVICES 690.00 INVOICE: 240842
VENDOR TOTALS 690.00 YTD INVOICED 690.00 YTD PAID 690.00 124135 MARROQUIN, JAYDON ANTHONY
81663 07/08/24 487362 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 240.00 INVOICE: 07082024
VENDOR TOTALS 240.00 YTD INVOICED 240.00 YTD PAID 240.00 123577 MARTINEZ, NANCY
81559 08/05/24 487363 T 08/27/24 10001224 45184 TRAINING 120.44 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 071607192024
VENDOR TOTALS 120.44 YTD INVOICED 656.60 YTD PAID 120.44 118734 MEDIA CONTROL SYSTEMS LLC.
81237 07/10/24 487364 T 08/27/24 10610010 40514 CONTRACT SERVICES 1,600.00 INVOICE: 00004063
VENDOR TOTALS 1,600.00 YTD INVOICED 1,600.00 YTD PAID 1,600.00 100108 MERRIMAC ENERGY GROUP
81365 07/15/24 27 487365 T 08/27/24 60031030 45144 GASOLINE & OIL 15,562.36 INVOICE: 2232627
81525 07/29/24 27 487365 T 08/27/24 60031030 45144 GASOLINE & OIL 13,562.49 INVOICE: 2232902
VENDOR TOTALS 39,698.66 YTD INVOICED 106,985.00 YTD PAID 29,124.85 123575 MISSION LINEN SUPPLY
81383 07/29/24 487366 T 08/27/24 10061050 41514 OPERATING SUPPLIES 72.16 INVOICE: 522065606
81680 08/05/24 487366 T 08/27/24 10061070 41514 OPERATING SUPPLIES 72.16 INVOICE: 522109287
VENDOR TOTALS 441.63 YTD INVOICED 816.88 YTD PAID 144.32 115113 MITSUBISHI ELECTRIC &
81349 08/01/24 487367 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 689.41 INVOICE: 497774
VENDOR TOTALS 1,360.11 YTD INVOICED 1,360.11 YTD PAID 689.41 122051 MRI SOFTWARE, LLC
76407 04/30/24 1950 487368 T 08/27/24 81044010 40514 CONTRACT SERVICES 31,974.44 INVOICE: MRIUS1949706
VENDOR TOTALS .00 YTD INVOICED 31,974.44 YTD PAID 31,974.44 107937 MUTUAL PROPANE
81359 07/01/24 487369 T 08/27/24 60031030 45144 GASOLINE & OIL 30.00 INVOICE: 164380
VENDOR TOTALS 30.00 YTD INVOICED 30.00 YTD PAID 30.00
115942 NAKAGAWA, JOE
81555 08/05/24 487370 T 08/27/24 10001224 45184 TRAINING 485.68 INVOICE: 072808022024
VENDOR TOTALS 485.68 YTD INVOICED 746.68 YTD PAID 485.68 123857 NASTEC INTERNATIONAL INC.
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81346 07/17/24 1991 487371 T 08/27/24 10002229 40514 CONTRACT SERVICES 6,269.25 INVOICE: 9016
81348 07/30/24 1991 487371 T 08/27/24 10002229 40514 CONTRACT SERVICES 5,411.25 INVOICE: 9050
VENDOR TOTALS 11,680.50 YTD INVOICED 11,680.50 YTD PAID 11,680.50 120571 NMK CORPORATION
81393 08/01/24 58 487372 T 08/27/24 10001222 40514 CONTRACT SERVICES 6,012.92 INVOICE: HPD-019
VENDOR TOTALS 6,012.92 YTD INVOICED 6,012.92 YTD PAID 6,012.92 113242 NORMAN, KEITH
81661 07/27/24 487373 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 104.00 INVOICE: 07272024
81706 08/10/24 487373 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 130.00 INVOICE: 081024
VENDOR TOTALS 598.00 YTD INVOICED 862.00 YTD PAID 234.00 121419 OAK PAPER PRODUCTS COMPANY, INC.
81215 07/17/24 487295 P 08/27/24 100 13100 INVENTORY MATERIALS & SUP 3,054.26 INVOICE: 2012809-IN
VENDOR TOTALS 3,054.26 YTD INVOICED 3,054.26 YTD PAID 3,054.26 123279 ODP BUSINESS SOLUTIONS, LLC
70501 01/18/24 487296 P 08/27/24 10016020 41514 OPERATING SUPPLIES 49.13 INVOICE: 350876833001
81159 05/06/24 487374 T 08/27/24 10042010 41514 OPERATING SUPPLIES -38.58 INVOICE: 365958581001
81219 07/19/24 487374 T 08/27/24 10016010 41514 OPERATING SUPPLIES 35.61 INVOICE: 377300398001
81627 07/08/24 487374 T 08/27/24 60031030 41514 OPERATING SUPPLIES 4.21 INVOICE: 374019254001
81628 07/05/24 487374 T 08/27/24 60031030 41514 OPERATING SUPPLIES 59.36 INVOICE: 374017718001
81703 08/05/24 487374 T 08/27/24 10061010 41404 MATERIALS, SUPPLIES & OTH 36.58 INVOICE: 379321313001
81704 08/05/24 487374 T 08/27/24 10061060 41514 OPERATING SUPPLIES 88.18 INVOICE: 379324652001
VENDOR TOTALS 664.00 YTD INVOICED 2,434.58 YTD PAID 234.49 123925 OFFICEUNTITLED, INC.
81256 07/09/24 2042 487375 T 08/27/24 50410040 40514 CONTRACT SERVICES 18,790.00 INVOICE: 4110
81257 07/09/24 2040 487375 T 08/27/24 50410030 40514 CONTRACT SERVICES 81,598.95 INVOICE: 4111
81258 07/09/24 2044 487375 T 08/27/24 50410010 40514 CONTRACT SERVICES 46,018.40 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 4109
VENDOR TOTALS .00 YTD INVOICED 441,831.09 YTD PAID 146,407.35 123098 ORKIN SERVICES OF CALIFORNIA, INC
81340 07/30/24 487376 T 08/27/24 10001221 41514 OPERATING SUPPLIES 139.99 INVOICE: 263515326
81369 07/25/24 487377 T 08/27/24 10061120 40514 CONTRACT SERVICES 251.99 INVOICE: 263515333
81688 08/08/24 487378 T 08/27/24 10061120 40514 CONTRACT SERVICES 251.99 INVOICE: 265155525
VENDOR TOTALS 643.97 YTD INVOICED 2,114.89 YTD PAID 643.97 121012 ORTIZ, JUAN
70271 09/06/23 487297 P 08/27/24 10042010 40504 COMMISSIONER STIPENDS 50.00 INVOICE: 4200-112942
VENDOR TOTALS .00 YTD INVOICED 50.00 YTD PAID 50.00
99213 PARKHOUSE TIRE, INC.
81362 07/05/24 30 487379 T 08/27/24 60031030 42554 TIRES 408.69 INVOICE: 1010987689
81477 07/16/24 30 487379 T 08/27/24 60031030 42554 TIRES 514.73 INVOICE: 1010989415
81478 07/18/24 30 487379 T 08/27/24 60031030 42554 TIRES 1,275.27 INVOICE: 1010989862
81479 07/18/24 30 487379 T 08/27/24 60031030 42554 TIRES 4,644.99 INVOICE: 1010989736
VENDOR TOTALS 6,843.68 YTD INVOICED 19,131.98 YTD PAID 6,843.68 123300 PARTY PRONTO, INC.
79747 07/09/24 487380 T 08/27/24 10021010 41514 OPERATING SUPPLIES 339.00 INVOICE: O43845
81376 07/30/24 487381 T 08/27/24 10061020 41514 OPERATING SUPPLIES 793.00 INVOICE: O43916
VENDOR TOTALS 1,471.00 YTD INVOICED 1,471.00 YTD PAID 1,132.00 123608 PLASTIC-VIEW ATC, INC
81224 07/26/24 931 487382 T 08/27/24 52035030 40514 CONTRACT SERVICES 19,023.00 INVOICE: 39797A
VENDOR TOTALS 19,023.00 YTD INVOICED 19,023.00 YTD PAID 19,023.00 124125 PROLOGIS, L.P.
81324 07/05/24 487383 T 08/27/24 10000109 51908 TRUCKING FEES 9,245.61 INVOICE: Refund 070524
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 9,245.61 YTD INVOICED 9,245.61 YTD PAID 9,245.61 16650 PRUDENTIAL OVERALL SUPPLY
81347 07/04/24 487384 T 08/27/24 60031030 40514 CONTRACT SERVICES 74.25 INVOICE: 42947638
81350 07/04/24 487384 T 08/27/24 60031030 40514 CONTRACT SERVICES 75.00 INVOICE: 42947639
81363 07/11/24 487384 T 08/27/24 60031030 40514 CONTRACT SERVICES 74.25 INVOICE: 42949462
81480 07/18/24 487384 T 08/27/24 60031030 40514 CONTRACT SERVICES 74.25 INVOICE: 42951281
81481 07/18/24 487384 T 08/27/24 60031030 40514 CONTRACT SERVICES 75.00 INVOICE: 42951282
VENDOR TOTALS 372.75 YTD INVOICED 670.50 YTD PAID 372.75 123536 R & A TANK TECHNOLOGIES LLC
81521 07/26/24 487385 T 08/27/24 60031030 40514 CONTRACT SERVICES 175.00 INVOICE: 072024-47
81522 07/26/24 487385 T 08/27/24 60031030 40514 CONTRACT SERVICES 175.00 INVOICE: 072024-48
VENDOR TOTALS 350.00 YTD INVOICED 1,050.00 YTD PAID 350.00 123621 RED MOUNTAIN ASSET FUND I LLC.
54082 11/01/17 487298 P 08/27/24 10000101 51114 BUSINESS LICENSE TAXES 4,699.00 INVOICE: REFUND 11/01/17
54082 11/01/17 487298 P 08/27/24 10000109 51968 BUSINESS LICENSE APP FEE 56.00 INVOICE: REFUND 11/01/17
54082 11/01/17 487298 P 08/27/24 10000106 51631 SB 1186 $4 STATE SURCHAR 21.00 INVOICE: REFUND 11/01/17
VENDOR TOTALS .00 YTD INVOICED 4,776.00 YTD PAID 4,776.00 112503 REDFLEX TRAFFIC SYSTEMS, INC.
81742 07/31/24 1636 487386 T 08/27/24 10000104 51431 VEHICLE CODE FINES 21,837.56 INVOICE: INV0081700
VENDOR TOTALS .00 YTD INVOICED 43,675.12 YTD PAID 21,837.56 121903 RELIANCE STANDARD LIFE INS. CO
81246 07/30/24 487387 T 08/27/24 990 20900 INSURANCE BENEFITS 2,873.78 INVOICE: 8/1/2024_LTD_STD_Saf
81247 07/30/24 487387 T 08/27/24 990 20900 INSURANCE BENEFITS 7,768.58 INVOICE: 8/1/2024_LTD_MISC
VENDOR TOTALS 10,642.36 YTD INVOICED 21,117.83 YTD PAID 10,642.36 98822 RICHARDS, WATSON & GERSHON
81183 07/23/24 715 487388 T 08/27/24 52350010 40514 CONTRACT SERVICES 5,561.30 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION INVOICE: 248819
81184 07/23/24 487388 T 08/27/24 10015010 40514 CONTRACT SERVICES 1,122.20 INVOICE: 248815
81185 07/23/24 487388 T 08/27/24 10015010 40514 CONTRACT SERVICES 809.60 INVOICE: 248817
81186 07/23/24 487388 T 08/27/24 10015010 40514 CONTRACT SERVICES 362.00 INVOICE: 248818
81187 07/23/24 487388 T 08/27/24 10015010 40514 CONTRACT SERVICES 144.80 INVOICE: 248820
VENDOR TOTALS .00 YTD INVOICED 34,305.80 YTD PAID 7,999.90 112919 RICOH USA, INC.
80964 07/01/24 487389 T 08/27/24 10001222 40614 CITY PRINT SERVICES 431.38 INVOICE: 5069716004
80965 07/01/24 487389 T 08/27/24 10001222 40614 CITY PRINT SERVICES 302.25 INVOICE: 5069715561
80966 07/12/24 487389 T 08/27/24 10001222 40614 CITY PRINT SERVICES 349.36 INVOICE: 39565928
81342 07/28/24 487389 T 08/27/24 10001222 40614 CITY PRINT SERVICES 2,761.00 INVOICE: 5069863237
81342 07/28/24 487389 T 08/27/24 81044010 41154 COPIER PRINT SERVICES 227.32 INVOICE: 5069863237
81345 07/24/24 487389 T 08/27/24 52035030 41154 COPIER PRINT SERVICES 18.16 INVOICE: 5069849683
VENDOR TOTALS 3,403.06 YTD INVOICED 40,888.19 YTD PAID 4,089.47 124049 RUSS BASSETT CORP.
81304 07/09/24 1987 487390 T 08/27/24 10002229 41514 OPERATING SUPPLIES 86,660.69 INVOICE: 83108-2
VENDOR TOTALS 86,660.69 YTD INVOICED 129,991.03 YTD PAID 86,660.69 116672 SAM'S ALIGNMENT TIRE CENTER, INC.
81494 07/22/24 29 487391 T 08/27/24 60031030 42554 TIRES 100.00 INVOICE: 30643
VENDOR TOTALS 100.00 YTD INVOICED 100.00 YTD PAID 100.00 108274 SANTA MONICA-UCLA
80978 07/18/24 487392 T 08/27/24 10002215 45024 FORENSIC TESTING 1,029.00 INVOICE: 25467551
80979 07/18/24 487392 T 08/27/24 10002215 45024 FORENSIC TESTING 1,029.00 INVOICE: 25513068
VENDOR TOTALS .00 YTD INVOICED 8,232.00 YTD PAID 2,058.00 118382 FITCH, ROBERT A.
81612 08/07/24 487393 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 1,814.40 INVOICE: 08072024
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 1,814.40 YTD INVOICED 5,040.00 YTD PAID 1,814.40 123856 SECTRAN SECURITY INC.
81731 08/07/24 487394 T 08/27/24 10016020 40514 CONTRACT SERVICES 305.03 INVOICE: 24080584
VENDOR TOTALS 610.06 YTD INVOICED 916.32 YTD PAID 305.03 112605 SEQUEL CONTRACTORS, INC.
81260 07/23/24 2043 487395 T 08/27/24 28302417 47734 PUBLIC WORKS PROJECTS 233,607.43 INVOICE: 5
81260 07/23/24 2043 487395 T 08/27/24 28534000 44504 PROP C IMPROVEMENTS 300,000.00 INVOICE: 5
81260 07/23/24 2043 487395 T 08/27/24 29550020 47814 PUBLIC WORKS PROJ-METRO G 1,400,000.00 INVOICE: 5
VENDOR TOTALS .00 YTD INVOICED 3,914,399.81 YTD PAID 1,933,607.43 113893 SHELDON MECHANICAL CORPORATION
81544 08/01/24 10 487396 T 08/27/24 10001221 42024 BUILDING MAINTENANCE 3,910.00 INVOICE: 24-0475
VENDOR TOTALS 3,910.00 YTD INVOICED 6,791.04 YTD PAID 3,910.00 17651 SMARDAN SUPPLY CO.
81374 07/23/24 487397 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 272.74 INVOICE: S4128202.001
VENDOR TOTALS 272.74 YTD INVOICED 1,422.46 YTD PAID 272.74 124088 BARROW, SYREETA
81653 07/20/24 487398 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 338.00 INVOICE: 07202024
81711 08/10/24 487398 T 08/27/24 10061050 40264 CONTRACT LABOR SALARIES 104.00 INVOICE: 081024
VENDOR TOTALS 546.00 YTD INVOICED 676.00 YTD PAID 442.00 123933 SOKOL, GEOFFREY RYAN
81609 08/07/24 487399 T 08/27/24 10061020 40264 CONTRACT LABOR SALARIES 1,153.60 INVOICE: 08072024
VENDOR TOTALS 1,153.60 YTD INVOICED 1,153.60 YTD PAID 1,153.60 113055 SOUTH BAY CITIES
81242 07/23/24 61 487299 P 08/27/24 28902421 40514 CONTRACT SERVICES 54,827.00 INVOICE: FY2025-DC-Hawthorne
VENDOR TOTALS 54,827.00 YTD INVOICED 120,633.00 YTD PAID 54,827.00 City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 101153 SOUTH BAY FORD
81209 06/10/24 1962 487400 T 08/27/24 60031030 40514 CONTRACT SERVICES 190.25 INVOICE: 492946
81212 06/06/24 1962 487400 T 08/27/24 60031030 40514 CONTRACT SERVICES 264.57 INVOICE: 492445
VENDOR TOTALS .00 YTD INVOICED 63,966.76 YTD PAID 454.82 95972 SOUTH COAST A.Q.M.D.
81360 07/02/24 487300 P 08/27/24 60031030 40514 CONTRACT SERVICES 165.96 INVOICE: 4385827
81361 07/02/24 487300 P 08/27/24 60031030 40514 CONTRACT SERVICES 159.92 INVOICE: 4384286
VENDOR TOTALS 325.88 YTD INVOICED 576.99 YTD PAID 325.88 123166 CHARTER COMMUNICATIONS HOLDINGS, LLC
81222 07/13/24 487401 T 08/27/24 10001222 43054 TELEPHONE 3,080.00 INVOICE: 1772972071324
VENDOR TOTALS 3,080.00 YTD INVOICED 9,240.00 YTD PAID 3,080.00 124007 THE FELDHAKE LAW FIRM, APC
81672 08/02/24 64 487402 T 08/27/24 10015010 40514 CONTRACT SERVICES 13,461.29 INVOICE: 56621
VENDOR TOTALS 30,859.47 YTD INVOICED 30,859.47 YTD PAID 13,461.29 105802 THE SAFEMART OF SO. CALIF.
81370 07/24/24 487403 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 218.75 INVOICE: 1011
81371 07/25/24 487403 T 08/27/24 10061050 42014 REPAIR & MAINTENANCE SUPP 112.50 INVOICE: 1020
81372 08/01/24 487403 T 08/27/24 10061100 41404 MATERIALS, SUPPLIES & OTH 35.83 INVOICE: 1035
VENDOR TOTALS 367.08 YTD INVOICED 755.93 YTD PAID 367.08 112363 THE STANDARD INSURANCE COMPANY, ATTN: EMPLOYEE BE 80986 07/22/24 487301 P 08/27/24 990 20900 INSURANCE BENEFITS 2,543.75 INVOICE: 006430320001
VENDOR TOTALS 2,543.75 YTD INVOICED 5,066.88 YTD PAID 2,543.75 115132 THE STANDARD INSURANCE CO.
81245 07/15/24 487404 T 08/27/24 990 20900 INSURANCE BENEFITS 2,275.75 INVOICE: 8/1/2024_DIV2
VENDOR TOTALS 2,275.75 YTD INVOICED 4,551.50 YTD PAID 2,275.75 123815 TRANSUNION RISK AND ALTERNATIVE DATA SOLUTIONS,INC City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 16:01
User: sdixon
Program ID: appdwarr
CHECK: C082724B TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 81504 08/01/24 487302 P 08/27/24 10002215 40514 CONTRACT SERVICES 280.00 INVOICE: 777625-202407-1
VENDOR TOTALS 280.00 YTD INVOICED 560.00 YTD PAID 280.00 107614 U S BANK TRUST NATIONAL ASSOC.
81334 07/19/24 487405 T 08/27/24 47446010 40584 PAYING AGENT FEE 2,650.00 INVOICE: 7401746
81334 07/19/24 487405 T 08/27/24 47446010 40584 PAYING AGENT FEE 40.00 INVOICE: 7401746
VENDOR TOTALS 2,690.00 YTD INVOICED 2,690.00 YTD PAID 2,690.00 121590 VARGAS, ALEX
71043 02/07/24 487303 P 08/27/24 10011100 44554 TRAVEL, CONFERENCE - VARG 248.73 INVOICE: Reimb020124
VENDOR TOTALS .00 YTD INVOICED 369.47 YTD PAID 248.73
95851 VISION SERVICE PLAN - (CA)
80990 07/19/24 487406 T 08/27/24 990 20900 INSURANCE BENEFITS 2,435.80 INVOICE: 820919811
80991 07/19/24 487406 T 08/27/24 990 20900 INSURANCE BENEFITS 2,081.62 INVOICE: 820919821
80992 07/19/24 487406 T 08/27/24 990 20900 INSURANCE BENEFITS 150.22 INVOICE: 820924250
VENDOR TOTALS 4,667.64 YTD INVOICED 9,406.44 YTD PAID 4,667.64 111056 WESTERN GRAPHIX
81606 08/06/24 487407 T 08/27/24 10021010 41514 OPERATING SUPPLIES 641.60 INVOICE: 59491
VENDOR TOTALS 641.60 YTD INVOICED 1,312.96 YTD PAID 641.60 116300 WILLIAMS, BRENDA
81656 08/08/24 487408 T 08/27/24 10001206 40454 HEALTH INSURANCE BENEFITS 303.13 INVOICE: 1701-113120
VENDOR TOTALS 303.13 YTD INVOICED 303.13 YTD PAID 303.13 REPORT TOTALS 4,040,195.74
COUNT AMOUNT
TOTAL PRINTED CHECKS 30 1,337,209.16
TOTAL EFT TRANSFERS 105 2,702,986.58
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 09:13
User: sdixon
Program ID: appdwarr
CHECK: DL081524 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123239 CA DISBURSEMENT UNIT
81822 08/15/24 487409 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 704.30 INVOICE: 2024-18
VENDOR TOTALS 2,817.20 YTD INVOICED 2,817.20 YTD PAID 704.30 119637 CA SDU, STATE DISBURSEMENT UNIT
81818 08/15/24 487410 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 258.46 INVOICE: 2024-18
VENDOR TOTALS 1,033.84 YTD INVOICED 1,033.84 YTD PAID 258.46 119685 CA SDU, STATE DISBURSEMENT UNIT
81819 08/15/24 487411 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 177.69 INVOICE: 2024-18
VENDOR TOTALS 710.76 YTD INVOICED 710.76 YTD PAID 177.69 124099 CALIFORNIA STATE DISBURSEMENT UNIT
81820 08/15/24 487413 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 533.53 INVOICE: 2024-18
VENDOR TOTALS 1,067.06 YTD INVOICED 1,067.06 YTD PAID 533.53 123708 CALIFORNIA STATE DISBURSEMENT UNIT
81825 08/15/24 487412 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 126.00 INVOICE: 2024-18
VENDOR TOTALS 504.00 YTD INVOICED 504.00 YTD PAID 126.00 122863 FRANCHISE TAX BOARD
81821 08/15/24 487415 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 100.00 INVOICE: 2024-18
VENDOR TOTALS 400.00 YTD INVOICED 400.00 YTD PAID 100.00 123629 FRANCHISE TAX BOARD
81824 08/15/24 487416 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 150.00 INVOICE: 2024-18
VENDOR TOTALS 600.00 YTD INVOICED 600.00 YTD PAID 150.00 121291 FRANCHISE TAX BOARD
81826 08/15/24 487414 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 50.00 INVOICE: 2024-18
VENDOR TOTALS 200.00 YTD INVOICED 200.00 YTD PAID 50.00 4 H.M.E.A.
81836 08/15/24 487417 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 2,240.00 INVOICE: 2024-18
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 09:13
User: sdixon
Program ID: appdwarr
CHECK: DL081524 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 9,060.00 YTD INVOICED 9,060.00 YTD PAID 2,240.00 99379 HAWTHORNE EXECUTIVE GROUP
81811 08/15/24 487418 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 360.00 INVOICE: 2024-18
VENDOR TOTALS 1,440.00 YTD INVOICED 1,440.00 YTD PAID 360.00 3 HAWTHORNE POLICE OFFICERS ASSN
81814 08/15/24 487419 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 4,872.93 INVOICE: 2024-18A
81815 08/15/24 487419 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 648.00 INVOICE: 2024-18B
81816 08/15/24 487419 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 3,117.35 INVOICE: 2024-18C
VENDOR TOTALS 33,817.52 YTD INVOICED 33,817.52 YTD PAID 8,638.28 123935 LOS ANGELES COUNTY SHERIFF'S DEPARTMENT
81828 08/15/24 487420 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 139.75 INVOICE: 2024-18
VENDOR TOTALS 559.00 YTD INVOICED 559.00 YTD PAID 139.75 115178 PRE PAID LEGAL SERVICES, INC.
81817 08/15/24 487421 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 142.55 INVOICE: 2024-18
VENDOR TOTALS 721.50 YTD INVOICED 578.95 YTD PAID 142.55 113121 TOTAL ADMINISTRATION SVCS CORP
81830 08/15/24 487422 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 341.53 INVOICE: 2024-18A
81831 08/15/24 487422 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 2,776.37 INVOICE: 2024-18B
VENDOR TOTALS 12,594.67 YTD INVOICED 12,880.13 YTD PAID 3,117.90 123898 TRANSWORLD SYSTEMS INC.
81827 08/15/24 487423 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 65.61 INVOICE: 2024-18
VENDOR TOTALS 1,155.96 YTD INVOICED 1,155.96 YTD PAID 65.61 103511 U.S. BANK PARS 6746022400, L.A. LOCKBOX 511649
81833 08/15/24 487424 P 08/15/24 960 20270 PARS LIABILITY 3,363.39 INVOICE: 2024-18A
81834 08/15/24 487424 P 08/15/24 960 20270 PARS LIABILITY 840.85 INVOICE: 2024-18B
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 09:13
User: sdixon
Program ID: appdwarr
CHECK: DL081524 TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 15,421.18 YTD INVOICED 15,421.18 YTD PAID 4,204.24 123240 VILLEGAS, ALBA
81823 08/15/24 487425 P 08/15/24 960 21600 ACCRUED WAGES PAYABLE 115.38 INVOICE: 2024-18
VENDOR TOTALS 461.52 YTD INVOICED 461.52 YTD PAID 115.38 REPORT TOTALS 21,123.69
COUNT AMOUNT
TOTAL PRINTED CHECKS 17 21,123.69
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 09:34
User: sdixon
Program ID: appdwarr
CHECK: C081924 TO FISCAL 2025/02 07/01/2023 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 121407 DIAL INSTANT PRINTERS, INC.
81574 07/23/24 487430 T 08/19/24 10014010 41514 OPERATING SUPPLIES 650.48 INVOICE: 11841
VENDOR TOTALS 650.48 YTD INVOICED 25,794.11 YTD PAID 650.48 114123 ENGLISH, ANGIE REYES
81782 07/23/24 487426 P 08/19/24 10011100 44574 TRAVEL, CONFERENCE - REYE 335.93 INVOICE: CONF REIMB 072324
VENDOR TOTALS 335.93 YTD INVOICED 1,779.24 YTD PAID 335.93 112444 INSITE GRAFIX
81373 07/30/24 487431 T 08/19/24 10061020 41514 OPERATING SUPPLIES 220.50 INVOICE: 8941
81677 07/29/24 487431 T 08/19/24 10061020 41514 OPERATING SUPPLIES 220.61 INVOICE: 8991
81787 08/12/24 487431 T 08/19/24 990 23027 STATE OF THE CITY 1,758.49 INVOICE: 9036
VENDOR TOTALS 2,298.83 YTD INVOICED 7,917.97 YTD PAID 2,199.60 124140 HERNANDEZ, CHRISTIAN
81780 08/13/24 487427 P 08/19/24 10017010 45514 EMPLOYEE TRAINING/WORKSHO 1,600.00 INVOICE: JTPXM7ZGT8B8P
VENDOR TOTALS 1,600.00 YTD INVOICED 1,600.00 YTD PAID 1,600.00 124136 LUXURY VALET & SHUTTLE
81727 07/12/24 487428 P 08/19/24 990 23027 STATE OF THE CITY 2,490.00 INVOICE: 82
VENDOR TOTALS 2,490.00 YTD INVOICED 2,490.00 YTD PAID 2,490.00 123225 MCGEE, EBONY J.
81752 07/30/24 2401 487432 T 08/19/24 31810010 40514 CONTRACT SERVICES 16,000.00 INVOICE: 0000210
81800 06/30/24 2052 487432 T 08/19/24 31810010 40514 CONTRACT SERVICES 23,900.00 INVOICE: 0000209
81801 05/30/24 2052 487432 T 08/19/24 31810010 40514 CONTRACT SERVICES 16,000.00 INVOICE: 0000208
VENDOR TOTALS 16,000.00 YTD INVOICED 497,207.83 YTD PAID 55,900.00 123201 PCCM3, INC.
81392 07/18/24 487429 P 08/19/24 990 23027 STATE OF THE CITY 1,300.00 INVOICE: 210004
81399 07/18/24 487429 P 08/19/24 990 23027 STATE OF THE CITY 4,898.98 INVOICE: 240008
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 09:34
User: sdixon
Program ID: appdwarr
CHECK: C081924 TO FISCAL 2025/02 07/01/2023 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION VENDOR TOTALS 6,198.98 YTD INVOICED 7,758.20 YTD PAID 6,198.98 119402 ORI, JR., STEVEN
81573 08/06/24 487433 T 08/19/24 990 23027 STATE OF THE CITY 3,632.74 INVOICE: 2024137
VENDOR TOTALS 3,632.74 YTD INVOICED 25,123.70 YTD PAID 3,632.74 REPORT TOTALS 73,007.73
COUNT AMOUNT
TOTAL PRINTED CHECKS 4 10,624.91
TOTAL EFT TRANSFERS 4 62,382.82
** END OF REPORT - Generated by Shuntell Dixon **
ORIGINATING DEPARTMENT: FINANCE
The City Treasurer submits the following Asset Forfeiture Warrants for your approval:
Date Start Ending Warrant type Total $
8/27/24 10976 10977 ASSET FORFEITURE 55,794.14
8/27/24 10978 10978 ASSET FORFEITURE 973.46
* Emergency Issue - for ratification only 56,767.60
State of California, County of Los Angeles SS:
The foregoing claims/demands/warrants have been filed with me; each one bearing an endorsement of the officer or employee of the department, requiring same, that the price is correct.
City Treasurer
City Clerk
CITY OF HAWTHORNE
FOR THE MEETING OF AUGUST 27, 2024
Warrant #s
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/15/2024 10:03
User: sdixon
Program ID: appdwarr
CHECK: AF082724 TO FISCAL 2025/02 07/01/2023 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 123744 AERODOME, INC.
75761 04/18/24 1737 10976 P 08/27/24 23021020 40514 CONTRACT SERVICES 49,725.00 INVOICE: 1002
VENDOR TOTALS .00 YTD INVOICED 49,725.00 YTD PAID 49,725.00 121444 VIGILANT SOLUTIONS, INC.
77853 05/30/24 1953 10977 T 08/27/24 23021020 47404 MACHINERY & EQUIPMENT 6,069.14 INVOICE: 57615 RI
VENDOR TOTALS .00 YTD INVOICED 267,223.20 YTD PAID 6,069.14 REPORT TOTALS 55,794.14
COUNT AMOUNT
TOTAL PRINTED CHECKS 1 49,725.00
TOTAL EFT TRANSFERS 1 6,069.14
** END OF REPORT - Generated by Shuntell Dixon **
City of Hawthorne, CA
PAID INVOICES REPORT
Report generated: 08/14/2024 17:43
User: sdixon
Program ID: appdwarr
CHECK: F082724C TO FISCAL 2025/02 07/01/2024 TO 06/30/2025
VENDOR NAME
DOCUMENT INV DATE PO CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 117149 ADVANCED AIR, LLC.
81634 08/08/24 20 10978 T 08/27/24 23002244 45144 GASOLINE & OIL 973.46 INVOICE: July 2024
VENDOR TOTALS 973.46 YTD INVOICED 4,929.55 YTD PAID 973.46 REPORT TOTALS 973.46
COUNT AMOUNT
TOTAL EFT TRANSFERS 1 973.46
** END OF REPORT - Generated by Shuntell Dixon **
AGENDA ITEM NO. 3
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of August 27, 2024
Originating Department: City Manager
City Manager: __________
Vontray Norris
City Attorney: ___________
Robert Kim
SUBJECT:
RESOLUTION NO. 8484
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA,
ESTABLISHING A CODE OF CONDUCT FOR ALL CITY SPONSORED EVENTS RECOMMENDED MOTION:
Staff Recommends that the City Council adopt Resolution No. 8484 DISCUSSION:
The City regularly hosts public events, on and off city owned property, in order to foster a sense of community and belonging among all our residents and those who spend time in our city like business owners and their employees. In order to ensure that all who attend, be they vendors or guests, feel safe and welcomed, this resolution will enact a code of conduct for all to follow. This code of conduct, among other things, explicitly states that harassment, discrimination, violence, threats, or any other antisocial behavior will not be tolerated at city events and any individuals engaging in such activity will be warned and ultimately removed if such conduct persists.
FISCAL IMPACT:
None.
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):
1. Resolution No. 8484
2. Exhibit "A" to Resolution 8484
- 1 -
RESOLUTION NO. 8484
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HAWTHORNE, CALIFORNIA, ESTABLISHING A CODE OF
CONDUCT FOR ALL CITY SPONSORED EVENTS
WHEREAS, the City of Hawthorne regularly hosts public events, on and off city owned property; and
WHEREAS, city events are intended to foster a sense of community and belonging among the citizens of Hawthorne and those who work and visit the city; and WHEREAS, the City believes it is important that all are welcome at city events regardless of race, color, religion, gender, sexual orientation, gender identity, age, national origin, disability, or any other protected characteristic; and WHEREAS, the City believes a Code of Conduct governing all participants and vendors is necessary in order to ensure those who participate in these events feels safe, included, and enjoy their experience.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hawthorne does hereby find, determine and order as follows:
Section 1. The City Council of the City of Hawthorne, California, hereby incorporates by reference all the recitals herein and finds that they are true and correct.
Section 2. The Council of the City of Hawthorne, California hereby institutes the City of Hawthorne Event Code of Conduct, attached hereto as Exhibit “A,” to be in full force and effect at all city sponsored events, on or off city property, to govern all vendors and participants.
Section 3. The City Clerk shall certify to the adoption of this Resolution and thereafter the same shall be in full force and effect.
PASSED, APPROVED, and ADOPTED this 27th day of August, 2024. ______________________________
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
- 2 -
______________________________
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM:
___________________________________
ROBERT M. KIM, City Attorney
City of Hawthorne, California
City of Hawthorne Event Code of Conduct
The City of Hawthorne is committed to providing a safe, inclusive, and enjoyable environment for all attendees, participants, and staff at our events. This Event Code of Conduct outlines the expectations for behavior at all city-sponsored events. By attending a City of Hawthorne event, you agree to adhere to this code of conduct.
Expected Behavior
1. Respect: Treat all attendees, staff, and participants with respect and courtesy.
Discriminatory, derogatory, or offensive language and actions will not be tolerated.
2. Inclusivity: Promote a welcoming environment for everyone, regardless of race, color, religion, gender, sexual orientation, gender identity, age, national origin, disability, or any other protected characteristic.
3. Safety: Prioritize the safety of yourself and others. Comply with all event policies, instructions from event staff, and any relevant laws or regulations.
4. Privacy: Respect the privacy of others. Do not record or take photographs of individuals without their permission.
5. Cleanliness: Maintain a clean and tidy environment. Dispose of trash properly and take care of public property.
6. Compliance: Follow all event-specific rules and guidelines, including those related to health and safety protocols.
Unacceptable Behavior
1. Harassment and Discrimination: Harassment, discrimination, or any form of verbal or physical abuse will not be tolerated.
2. Violence or Threats: Any behavior that is threatening or violent towards others, including physical altercations or intimidation, is strictly prohibited.
3. Disruptive Behavior: Actions that disrupt or interfere with the event or other attendees’ enjoyment are not allowed.
4. Intoxication: Excessive use of alcohol or illegal substances is prohibited, as is being visibly intoxicated at the event.
5. Property Damage: Intentional damage or vandalism to property will not be tolerated and may result in removal from the event and potential legal action.
Reporting and Enforcement
1. Reporting Violations: If you experience or witness any violations of this code of conduct, please report them immediately to event staff or security personnel. You can also report issues by contacting any city employee.
2. Enforcement: The City of Hawthorne reserves the right to take any action deemed necessary to ensure the safety and well-being of all attendees, including:
o Issuing warnings or requests to cease specific behaviors o Removing individuals from the event without a refund
o Contacting law enforcement if necessary
o Banning individuals from future events
Commitment to Improvement
The City of Hawthorne is committed to continuously improving the experience of our events. We welcome feedback and suggestions on how we can enhance our code of conduct and the overall safety and inclusivity of our events.
Thank you for your cooperation and for helping us create a positive and respectful environment at City of Hawthorne events. We hope you enjoy the event and the company of our community members.
AGENDA ITEM NO. 4
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of August 27, 2024
Originating Department: City Manager
City Manager: __________
Vontray Norris
City Attorney: ___________
Robert M. Kim
SUBJECT:
Resolution No. 8482, a Resolution of the City Council of the City of Hawthorne, California, Rescinding Resolution Numbers 8175, 8207, 8216, 8266 and Proclaiming the Termination of the Local Emergency Due to COVID-19 Under Government Code Section 8630(d) RECOMMENDED MOTION:
Adopt Resolution No. 8482 Proclaiming the Termination of the Local Emergency Due to COVID19 Under Government Code Section 8630(d).
DISCUSSION:
At the onset of the COVID-19 pandemic, on March 15, 2020, the City Council adopted Resolution No. 8175 proclaiming the existence of a local emergency due to the pandemic. The emergency proclamation was followed by many orders to protect the staff and residents from the spread of COVID-19. The protective orders included the mandated use of face masks, social distancing, teleworking and other measures. The City Council also met through teleconference meetings, authorized under Assembly Bill No. 361, which required making certain findings every 30 days.
Additionally, pursuant to the emergency, Resolution Numbers 8207, 8216 and 8266 were approved, accommodating the needs for restaurants to operate outdoors.
On February 28, 2023, the Governor proclaimed the termination of the state of emergency in California. Similarly, local agencies are to proclaim the termination of the emergency at the earliest possible date. Although the current rate of COVID-19 infections still remain at a significant rate, based on the rate of hospitalization and deaths in the County of Los Angeles, the conditions have improved sufficiently for the City of Hawthorne to proclaim the termination of the local emergency.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
FISCAL IMPACT:
None.
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act ATTACHMENT(S):
1. Resolution No. 8482
1 Reso. No. 8482
RESOLUTION NO. 8482
A RESOLUTION OF THE CITY COUNCIL, OF THE CITY
OF HAWTHORNE, CALIFORNIA, RESCINDING
RESOLUTION NUMBERS 8175, 8207, 8216, 8266 AND
PROCLAIMING THE TERMINATION OF THE LOCAL
EMERGENCY DUE TO COVID-19 UNDER
GOVERNMENT CODE SECTION 8630 (d)
WHEREAS, on March 15, 2020, the city council adopted Resolution No. 8175 which proclaimed the existence of a local emergency due to COVID-19 under Government Code section 8630 and Chapter 2.16 of the Hawthorne Municipal Code; and WHEREAS, the said emergency proclamation during the height of the COVID-19 pandemic led to many orders and protective policies that included the cancellation and postponement of all public gatherings and events, social distancing, the issuance of protective equipment, teleworking, to name a few, including the series of resolutions authorizing teleconferenced council meetings pursuant to the state Assembly Bill 361; and WHEREAS, during the state of emergency, the council approved a few resolutions in order to accommodate the needs of restaurants to have outdoor dining, including at Public Rightof-Way under Resolution No. 8207 and its amendments under Resolution No. 8216 and 8266; and
WHEREAS, although the current rate of infection caused by the variants of COVID-19 remains significant, the rate of hospitalization and deaths caused by COVID-19 has dwindled down to a level that no longer requires the continuation of the local emergency; and WHEREAS, on February 28, 2023, Governor Newsome proclaimed the termination of the state of emergency in California; and
WHEREAS, Government Code section 8630 subsection (d) provides for the local governing body to proclaim the termination of the emergency at the earliest possible date that conditions warrant.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, hereby resolves as follows:
Section 1. The recitals contained in this resolution are true and correct and are hereby incorporated herewith.
Section 2. The City Council hereby proclaim the termination of the state of emergency caused by the COVID-19 pandemic and thereby rescind Resolution No. 8175 adopted on March 15, 2020.
2 Reso. No. 8482
Section 3. The City Council hereby also rescind Resolution No. 8207, 8216 and 8266 that were adopted to accommodate outdoor dining during the state of emergency.
Section 4. The City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and their certification to be entered into the Book of Resolutions of the Council of the City of Hawthorne.
Section 5. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED and ADOPTED this 27th day of August, 2024.
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM:
ROBERT M. KIM, City Attorney
City of Hawthorne, California
AGENDA ITEM NO. 5
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of August 27, 2024
Originating Department: Housing
City Manager: __________
Vontray Norris
Dir. of Housing: ___________
Kimberly Mack
SUBJECT:
Public Hearing on the Draft Substantial Amendment to the 2024-2025 Action Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs
RECOMMENDED MOTION:
The staff advises that the City Council:
1. Conduct a public hearing and receive comments on the draft substantial amendment to the 2024-2025 Action Plan for the use of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds.
2. Adopt the amended 2024-2025 Action Plan and authorize the City Manager, or designee, to submit the plan to the United State Department of Housing and Urban Development (HUD).
3. Authorize the City Manager, or designee, to negotiate, execute, and amend contracts with subrecipients or professional service providers as necessary to implement the CDBG and HOME projects identified in the 2024-2025 Action Plan.
4. Authorize the City Manager, or designee, to execute, amend, and submit to HUD all plans and documents necessary to administer the 2024-2025 CDBG and HOME programs.
DISCUSSION:
On May 12, 2020, the City of Hawthorne Council adopted the 2020-2024 Consolidated Plan, which outlines the City’s strategic approach to meeting housing and community development needs over a five-year period using HUD entitlement funds. The 2024-2025 Action Plan represents the fifth and final year of this Consolidated Plan, detailing how the City will invest its CDBG and HOME funds to achieve its goals.
For the 2024-2025 program year, the City is set to receive $1,177,964 in CDBG funds and $508,759.41 in HOME funds from HUD. In addition, the City will allocate $1,515,174.13 in prior
year unprogrammed CDBG funds and $4,490,956.12 in prior year unprogrammed HOME funds to critical activities for the period from July 1, 2024, to June 30, 2025.
A substantial amendment to the 2024-2025 Action Plan is proposed to capitalize on a recent opportunity to acquire and develop an affordable housing complex. This strategic shift prioritizes funding to this vital project, ensuring the City’s resources are used effectively to address the most urgent community needs. The amendment includes adjustments to both CDBG and HOME activities, ensuring alignment with our housing development priorities.
Key Amendments to CDBG activities:
• Cancelled: Acquisition and Rehabilitation ($602,814.38) • Reduced: Commercial Rehabilitation Program (decreased by $708,264 to $582,829) • Added: Acquisition of Real Property ($1,311,708.38)
Key Amendments to HOME activities:
• Cancelled: Homebuyer Assistance ($254,710.41)
• Cancelled: Acquisition, Rehabilitation, and Resale Project ($1,600,000) • Increased: Rental Rehabilitation Project (increased by $800,000 to $3,440,781.12) • Added: Affordable Housing Development ($1,054,710.41) was added 2024-2025 CDBG PROGRAM
Public Service Activities
South Bay Workforce Investment Board: Teen Center $93,217.00 New Star Family Justice Center: Domestic Violence Services $21,813.00 Family Promise of the South Bay: Housing Stabilization Services $19,390.00 Catholic Charities of LA: St. Margaret’s Emergency Assistance $21,915.00 The Richstone Family Center: Behavioral Health Services $20,359.00 Sub-Total: $176,694.00
Capital Activities
City of Hawthorne: Section 108 Loan Repayment $339,773.75 City of Hawthorne: Housing Rehabilitation Program $430,000.00 City of Hawthorne: Public Housing Modernization $200,000.00 City of Hawthorne: Acquisition and Rehabilitation (cancelled) $0.00 City of Hawthorne: Real Property Acquisition $1,311,708.38 Sub-Total: $2,280,852.13
Program Administration Activities
City of Hawthorne: CDBG Program Administration $205,592.00 Housing Rights Center: Fair Housing Services $30,000.00 Sub-Total: $235,592.00
CDBG TOTAL: $2,693,138.13
2024-2025 HOME PROGRAM
Housing Activities
City of Hawthorne: Acquisition, Rehab, Resale (cancelled) $0.00 City of Hawthorne: Homebuyer Assistance (cancelled) $0.00 City of Hawthorne: Rental Rehabilitation (includes PY23) $3,440,781.12 City of Hawthorne: Affordable Housing Development $1,054,710.41 CHDO: Set-Aside PY20, 21, 22, 23, & 24 $453,349.00
Sub-Total: $4,948,840.53
Program Administration Activities
City of Hawthorne: HOME Program Administration $50,875.00 Sub-Total: $50,875.00
HOME TOTAL: $4,999,715.53
Approval of the draft substantial amendment is categorically exempt from environmental review under the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA). HUD requires that all funded activities undergo an appropriate environmental review before any commitment or release of funds.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None
FISCAL IMPACT:
The City’s federal entitlement budget for FY 2024-2025 includes $1,177,964 in CDBG funds and $508,759.41 in HOME funds. Approval of the 2024-2025 Action Plan will have no impact on the General Fund. All associated costs, including staff and legal counsel expenses related to the preparation and review of contractual agreements with funding recipients, will be covered by CDBG and HOME administrative allocations.
NOTICING PROCEDURES:
In compliance with federal regulations, a Notice of Public Hearing was published on July 18, 2024, in the Hawthorne Press-Tribune. The draft substantial amendment to the 2024-2025 Action Plan has been available for public review and comment at City Hall, the Hawthorne Public Library, and on the City’s website from July 22, 2024, through August 27, 2024.
ATTACHMENT(S):
1. Draft Substantial Amendment to 2024-2025 Action Plan Draft Substantial
Amendment
Annual Action Plan
PY24-25
Public Review & Comment
August 27, 2024
City of Hawthorne i 24-25 Annual Action Plan
This page intentionally left blank
City of Hawthorne ii 24-25 Annual Action Plan
Table of Contents
Table of Contents........................................................................................................................................ii Version History...........................................................................................................................................iii Executive Summary ...............................................................................................................................- 1 - AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b).................................................................- 1 - PR-05 Lead & Responsible Agencies – 91.200(b)...............................................................................- 9 - AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ..........................................................................- 10 - AP-12 Participation – 91.105, 91.200(c)...........................................................................................- 20 - Expected Resources ............................................................................................................................- 26 - AP-15 Expected Resources – 91.220(c)(1,2)....................................................................................- 26 - Annual Goals and Objectives ...............................................................................................................- 30 - AP-20 Annual Goals and Objectives .................................................................................................- 30 - AP-35 Projects – 91.220(d) ..............................................................................................................- 33 - AP-38 Project Summary ...................................................................................................................- 34 - AP-50 Geographic Distribution – 91.220(f) .......................................................................................- 36 - Affordable Housing...............................................................................................................................- 38 - AP-55 Affordable Housing – 91.220(g) .............................................................................................- 38 - AP-60 Public Housing – 91.220(h)....................................................................................................- 40 - AP-65 Homeless and Other Special Needs Activities – 91.220(i) ......................................................- 41 - AP-75 Barriers to affordable housing – 91.220(j) ..............................................................................- 44 - AP-85 Other Actions – 91.220(k)......................................................................................................- 46 - Program Specific Requirements ...........................................................................................................- 49 - AP-90 Program Specific Requirements – 91.220(l)(1,2,4).................................................................- 49 - Action Plan Tables
Table 1 - Strategic Plan Summary...........................................................................................................................- 6 - Table 2 – Responsible Agencies .............................................................................................................................- 9 - Table 3 - Agencies, groups, organizations who participated..................................................................................- 18 - Table 4 - Other local / regional / federal planning efforts........................................................................................- 18 - Table 5 – Citizen Participation Outreach ...............................................................................................................- 25 - Table 6 - Expected Resources – Priority Table ......................................................................................................- 27 - Table 7 – Goals Summary.....................................................................................................................................- 31 - Table 8 - Project Information.................................................................................................................................- 33 - Table 9 - Geographic Distribution .........................................................................................................................- 37 - Table 10 - One Year Goals for Affordable Housing by Support Requirement .........................................................- 39 - Table 11 - One Year Goals for Affordable Housing by Support Type......................................................................- 39 - City of Hawthorne iii 24-25 Annual Action Plan
Version History
No. Summary of Changes
Published Draft for Public Comment: 3/21/24 Sent to HUD for Approval: 5/15/24 Conducted Public Hearing: 4/23/24 Approved by HUD: 6/18/24 1 Original 24-25 Action Plan.
Published Draft for Public Comment: 7/18/24 Sent to HUD for Approval: 8/29/24 Conducted Public Hearing: 8/27/24 Approved by HUD: TBD
2 Amendment 1 (Substantial): The Action Plan was amended to revise the following CDBG activities:
• 24-25 COH: Acquisition and Rehabilitation ($602,814.38) was cancelled • 21-22 COH: Commercial Rehabilitation Program (decreased by $708,264 to $582,829)
• 24-25 COH: Acquisition of Real Property ($1,311,708.38) was added Additionally, the Action Plan was modified to revise the following HOME activities:
• COH: Homebuyer Assistance ($254,710.41) was cancelled. • COH: Acquisition, Rehabilitation, and Resale Project ($1,600,000) was cancelled • COH: Rental Rehabilitation Project (increased by $800,000 to $3,440,781.12) • COH: Affordable Housing Development ($1,054,710.41) was added City of Hawthorne - 1 - 24-25 Annual Action Plan
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
On May 12, 2020, the Hawthorne City Council adopted the 2020-2024 Consolidated Plan, which described the City’s housing and community development needs, strategies, and activities to address those needs over a five-year period using entitlement grant funds provided by the U.S. Department of Housing and Urban Development (HUD). The 2024-2025 Action Plan is the fifth and final of five annual plans implementing the 2020-2024 Consolidated Plan Strategic Plan goals via the investment of annual allocations of Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) funds from HUD. The Action Plan identifies available resources, annual goals, projects and activities for the period beginning July 1, 2024, and ending June 30, 2025.
The City receives CDBG and HOME funds from HUD on a formula basis each year, and in turn, awards grants and loans to non-profit, for-profit or public organizations for programs and projects in furtherance of this Plan. The CDBG and HOME programs generally provide for a wide range of eligible activities for the benefit of low- and moderate-income Hawthorne residents, as discussed below.
Community Development Block Grant (CDBG)
The Housing and Community Development Act of 1974 created the CDBG Program. The primary objective of the CDBG program is the development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low- and moderate-income. The CDBG regulations require that each activity meet one (1) of the following national objectives:
• Benefit low- and moderate-income persons; or
• Aid in the prevention or elimination of slums and blight; or • Meet other community development needs having a particular urgency (usually the result of a natural disaster).
Each year, the City certifies with the submission of its Annual Action Plan that it has given maximum feasible priority to activities which meet the first and second objectives above. Additionally, the City certifies that no less than 70 percent of the CDBG funds received, over a three-year certification period, will be designed to benefit low- and moderate-income persons.
HOME Investment Partnerships (HOME) Program
The Cranston-Gonzalez National Affordable Housing Act of 1990 created the HOME program to expand the supply of affordable housing for low- and moderate-income households. Often used in partnership with local nonprofit housing development organizations, the HOME program can support a wide range of affordable City of Hawthorne - 2 - 24-25 Annual Action Plan
housing activities, including building, buying, and/or rehabilitating rental and ownership housing or providing direct rental assistance to low- and moderate-income people. 2024-2025 Program Year
During the 2024-2025 program year, the City will receive $1,177,964 of CDBG and $508,759.41 of HOME funds from HUD. The 2024-2025 Action Plan will invest the City’s current year CDBG and HOME allocations and $1,515,174.13 in prior year unprogrammed CDBG funds and $4,490,956.12 in prior year unprogrammed HOME funds to the following program activities to be implemented from July 1, 2024 to June 30, 2025.
August 2024 Amendment
: The Action Plan was amended to revise the following CDBG activities:
• 24-25 COH: Acquisition and Rehabilitation ($602,814.38) was cancelled • 21-22 COH: Commercial Rehabilitation Program (decreased by $708,264 to $582,829) • 24-25 COH: Acquisition of Real Property ($1,311,708.38) was added Additionally, the Action Plan was modified to revise the following HOME activities:
• COH: Homebuyer Assistance ($254,710.41) was cancelled. • COH: Acquisition, Rehabilitation, and Resale Project ($1,600,000) was cancelled • COH: Rental Rehabilitation Project (increased by $800,000 to $3,440,781.12) • COH: Affordable Housing Development ($1,054,710.41) was added 2024-2025 CDBG PROGRAM
Public Service Activities
South Bay Workforce Investment Board: Teen Center $93,217.00 New Star Family Center: Domestic Violence Services $21,813.00 Family Promise of the South Bay: Shelter and Supportive Services $19,390.00 Catholic Charities of Los Angeles: St. Margaret’s Emergency Assistance $21,915.00 The Richstone Family Center: Behavioral Health Services $20,359.00 Sub-Total: $176,694.00
City of Hawthorne - 3 - 24-25 Annual Action Plan
Capital Activities
City of Hawthorne: Section 108 Loan Repayment $339,773.75 City of Hawthorne: Housing Rehabilitation Program $430,000.00 City of Hawthorne: Public Housing Modernization $200,000.00 City of Hawthorne: Acquisition and Rehabilitation (cancelled) $0.00 City of Hawthorne: Real Property Acquisition $1,311,708.38 Sub-Total: $2,280,852.13
Program Administration Activities
City of Hawthorne: CDBG Program Administration $205,592.00 Fair Housing Foundation: Fair Housing Services $30,000.00 Sub-Total: $235,592.00
CDBG TOTAL: $2,693,138.13
2024-2025 HOME PROGRAM
Housing Activities
City of Hawthorne: Acquisition, Rehab, Resale (cancelled) $0.00 City of Hawthorne: Homebuyer Assistance (cancelled) $0.00 City of Hawthorne: Rental Rehabilitation (includes PY23) $3,440,781.12 City of Hawthorne: Affordable Housing Development $1,054,710.41 CHDO: Set-Aside PY 20, 21, 22, 23, & 24 $453,349.00
Sub-Total: $4,948,840.53
Program Administration Activities
City of Hawthorne: HOME Program Administration $50,875.00 Sub-Total: $50,875.00
HOME TOTAL: $4,999,715.53
In addition, the City is requesting up to $5,740,140 in Section 108 Loan Guarantee funds to assist with various public facility improvements. To facilitate a more streamlined process, the City is including the anticipated use of funds as part of this Action Plan. However, it should be noted that the following activities will only be carried out upon approval of the City’s Section 108 Loan application by HUD.
City of Hawthorne - 4 - 24-25 Annual Action Plan
2024-2025 SECTION 108 LOAN PROGRAM
Capital Activities
City of Hawthorne: Senior Center $3,300,000.00
City of Hawthorne: Ramona Park $700,000.00
City of Hawthorne: Jim Thorpe Baseball Field $500,000.00 City of Hawthorne: Eucalyptus Park $1,240,140.00
Sub-Total: $5,740,140.00
SECTION 108 TOTAL: $5,740,140.00
2. Summarize the objectives and outcomes identified in the Plan HUD’s Community Planning and Development (CPD) Outcome Performance Measurement Framework classifies objectives in three (3) categories: decent housing, a suitable living environment, and economic opportunity. In consideration of community input as well as the Needs Assessment and Market Analysis, the Strategic Plan identifies eight (8) high priority needs to be addressed through the implementation of activities with seven (7) Strategic Plan goals.
The high priority needs include:
• Preserve the supply of affordable housing
• Increase the supply of affordable housing for low-income individuals, families, persons with special needs and persons experiencing homelessness
• Public services for low-and moderate-income income residents • Ensure equal access to housing opportunities
• Improve public facilities and infrastructure
• Address material barriers to accessibility
• Response to COVID-19 Impact
• Promote economic opportunity
Consistent with HUD’s national goals for the CDBG and HOME programs to provide decent housing opportunities, maintain a suitable living environment and expand economic opportunities for low- and moderate-income residents, the priority needs listed above will be addressed over the five year Consolidated Plan cycle through the implementation of CDBG and HOME funded activities aligned with the following measurable goals included in the Strategic Plan section of the 2020-2024 Consolidated Plan.
City of Hawthorne - 5 - 24-25 Annual Action Plan
Goal Name Category Need(s) Addressed Goal Outcome Indicator Affordable Housing
Preservation
Affordable
Housing
Preserve the supply of
affordable housing
Homeowner housing rehabilitation:
30 housing units
Rental housing rehabilitation: 18
housing units
Affordable Housing
Development
Affordable
Housing
Increase the supply of
affordable housing
Affordable housing: 2 housing units;
2 households
Public Services
Non-Housing
Community
Development
Provide public services to
low- and moderate-income
residents
Public service activities other than
Low/Mod Income Housing Benefit:
1,500 persons
Fair Housing Services Affordable
Housing
Ensure equal access to
housing opportunities Other: 1,200 persons
Public Facilities and
Infrastructure
Improvements
Non-Housing
Community
Development
Improve public facilities and
infrastructure; Address
material barriers to
accessibility
Public facility or infrastructure
activities other than Low/Mod
Income Housing
Benefit: 15,000 people
COVID-19 Response
Non-Housing
Community
Development
COVID-19 Impact
Homelessness Prevention: 10
people; 15 temporary noncongregate shelter units.
Housing Assistance: 105 households
Business Assistance: 2 jobs
created/retained and 7
microenterprises assisted
Economic
Development
Opportunities
Non-Housing
Community
Development
Promote Economic
Opportunity
Commercial Facade Improvements:
2 businesses assisted; 1 jobs
created/retained
Table 1 - Strategic Plan Summary
3. Evaluation of past performance
The City is currently implementing the projects and activities included in the 2023-2024 Action Plan. As of this writing, all projects and activities are underway.
The investment of HUD resources during the 2022-2023 program year was a catalyst for positive change in the community. Together with other federal, state and local investments, HUD resources allowed the City and its partners to accomplish the following:
• Affordable Housing Preservation: The City of Hawthorne Housing Rehabilitation Program completed four (4) housing rehabilitation projects to address deficient housing conditions and preserve the existing housing stock that is affordable to low- and moderate-income homeowners. • Fair Housing Services: The Fair Housing Foundation provided 232 Hawthorne residents with fair housing and landlord-tenant mediation services.
• Public Services: Three (3) non-profit organizations provided a range of services to Hawthorne residents including but not limited to providing after-school enrichment activities for 137 low- and City of Hawthorne - 6 - 24-25 Annual Action Plan
moderate-income school children, case management and emergency assistance to 164 extremely low- and low-income residents, and domestic violence services for 35 Hawthorne residents. • Public Facilities and Infrastructure Improvements: The City of Hawthorne continued repayment of its Section 108 Loan.
• COVID-19 Response: CDBG-CV funds were used to address housing and economic development needs of Hawthorne residents. The housing component of these activities included short-term rental and utility assistance to 123 income eligible households. The economic development components included financial assistance in the form of grants to 2 small businesses and 6 microenterprises.
Lastly, the City included a homelessness component to provide transitional housing for 12 homeless residents.
While the City and local partners were able to successfully implement the activities listed above, there were insufficient resources to fully address the level of need identified in the last Consolidated Plan.
4. Summary of Citizen Participation Process and consultation process The Consolidated Plan regulations at 24 CFR Part 91 provide the citizen participation and consultation requirements for the development of the Consolidated Plan. Chief among those requirements is the need to consult with the Continuum of Care (CoC) to address homelessness, Public Housing Authorities (PHA), business leaders, civic leaders and public or private agencies that address housing, health, social service, survivor services, employment, or education needs of low-income individuals and families, homeless individuals and families, youth and/or other persons with special needs. This qualitative input was combined with a quantitative analysis of demographic, housing and socioeconomic data to develop the strategic plan that reflects the housing, community and economic development needs and priorities for the City of Hawthorne during the Five-Year Consolidated Plan cycle.
In accordance with the City’s adopted Citizen Participation Plan, residents and stakeholders were able to participate in the development process through surveys, community meetings and public hearings. Efforts were made to encourage participation by low- and moderate-income persons, particularly those living in areas where HUD funds are proposed to be used, and by residents of predominantly low- and moderateincome neighborhoods. Efforts were made to encourage the participation of minorities and non-English speaking persons, as well as persons with disabilities. The consultation process included representatives of the CoC, PHA, and other specified groups who completed surveys, provided local data, and assisted the City to ensure practical coordination of strategies to maximize impact and to avoid duplication of effort.
To satisfy the federal requirements at 24 CFR 91.105(e)(1)(ii), the City held two public hearings to obtain residents’ views on housing and community development needs, development of proposed activities, proposed strategies and actions for affirmatively furthering fair housing, and a review of program performance. The City of Hawthorne convened the first public hearing on September 12, 2023, to receive comments regarding program performance. A draft of the 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) was made available for public review and comment from August 24, 2023 to September 12, 2023. No public comments were received.
City of Hawthorne - 7 - 24-25 Annual Action Plan
Subsequently, the City made the draft 2024-2025 Action Plan available for public review and comment from March 21, 2024 to April 23, 2024. Residents were invited to review the draft Action Plan and to attend the second Public Hearing on April 23, 2024, or submit written comments concerning the housing and community development needs, proposed projects and activities in the Action Plan, as well as proposed strategies and actions for affirmatively furthering fair housing.
During the development of the 2024-2025 Action Plan, the City solicited applications from various non-profit organizations and City Departments for the provision of fair housing services, public services and community and economic development projects. Applications received by the January 26, 2024 deadline were evaluated for eligibility and funding recommendations.
August 2024 Amendment
The City made the draft Substantial Amendment to the 2024-2025 Action Plan available for public review and comment from July 22, 2024 to August 27, 2024. Residents were invited to review the draft Substantial Amendment and to attend a Public Hearing on August 27, 2024, or submit written comments concerning the housing and community development needs, proposed projects and activities in the Action Plan, as well as proposed strategies and actions for affirmatively furthering fair housing.
5. Summary of public comments
As required by HUD regulations, all comments received, and responses to said comments by the City are summarized in section AP-12 of this Action Plan.
6. Summary of comments or views not accepted and the reasons for not accepting them All comments and views received by the City in the development of the Action Plan were accepted and taken into consideration in the development of the Action Plan.
7. Summary
The 2024-2025 Action Plan addresses four (4) of the seven (7) Strategic Plan Goals from the 2020-2024 Consolidated Plan by allocating a total of $2,693,138.13 in CDBG funds and $4,999,715.53 of HOME funds towards eligible activities that are to be implemented from July 1, 2024 to June 30, 2025. Activities submitted for consideration in response to any solicitation of Notice of Funding Availability (NOFA) process must conform with one (1) of the seven (7) Strategic Plan strategies and the associated action-oriented, measurable goals to be considered to receive CDBG or HOME funds.
City of Hawthorne - 8 - 24-25 Annual Action Plan
PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator City of Hawthorne Housing Department HOME Administrator City of Hawthorne Housing Department Table 2 – Responsible Agencies
Narrative
The City of Hawthorne's Housing Department is the lead agency responsible for the administration of the CDBG and HOME programs. The City contracted with LDM Associates, Inc. to prepare the 2024-2025 Annual Action Plan.
In the development of this Consolidated Plan, LDM Associates, Inc. developed and implemented a comprehensive citizen participation and consultation process and conducted a needs assessment and market analysis to identify levels of relative need regarding affordable housing, homelessness, special needs, and community development. This information was gathered through consultation with public officials and local agencies, public outreach and community meetings, review of demographic and economic data, and housing market analysis.
In the implementation of the 2024-2025 Annual Action Plan and each of the five (5) Annual Action Plans, the Housing Department shall be responsible for all grants planning, management, and monitoring duties necessary to comply with HUD regulations and City policy.
Consolidated Plan Public Contact Information
City of Hawthorne
Housing Department
Attn: Kimberly Mack, Housing Director
4455 W 126th Street
Hawthorne, CA 90250
(310) 349-1603
City of Hawthorne - 9 - 24-25 Annual Action Plan
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
The City of Hawthorne consulted with representatives from multiple agencies, groups, and organizations involved in the development of affordable housing, creation of job opportunities for low- and moderate-income residents, and/or provision of services to children, elderly persons, persons with disabilities, persons with HIV/AIDS and their families, and homeless persons. To facilitate this consultation, the City solicited feedback through the following methods:
• Survey of residents and stakeholders (web-based and paper surveys) • Individual stakeholder consultations
• Community meetings
• Community events
• Public hearings
• Receipt of written comments
To gather the greatest breadth and depth of information, the City consulted with a wide variety of agencies, groups and organizations concerning the housing, community and economic development needs of the community. Each of the agencies, groups or organizations invited to consult and participate in the planning process is represented in Table 3. The input received from these consultations helped establish and inform the objectives and goals described in the Strategic Plan. The City also provided each agency with an opportunity to comment on the draft 2024-2025 Action Plan during the public review and comment period.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).
The City recognizes the importance of careful coordination and alignment among various service providers to maximize the effectiveness of their programs. As a result, during the development of this Consolidated Plan, the City consulted closely with organizations that provide assisted housing, health services and other community-focused agencies. Outreach efforts included surveys including specific questions associated with coordination, invitations to community meetings and follow-up in-person interviews where appropriate.
The City further recognizes the importance of continued coordination and alignment during the preparation of the 2024-2025 Action Plan with these organizations and agencies. The City will reinforce these partnerships through the implementation of the Notice of Funding Availability (NOFA) process for CDBG funds each year and through technical assistance provided to subrecipients.
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Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness Los Angeles County’s homeless Continuum of Care (CoC) is comprised of a network of public, private, faithbased, for-profit, and non-profit service providers who utilize several federal, state and local resources to provide services for homeless people. The region’s municipalities, including the City of Hawthorne, also provide resources for services that assist the homeless and those at risk of becoming homeless. The nonprofit and faith-based community plays a key role in the current CoC system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The non-profit and faith-based community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth.
The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. The City provided a detailed questionnaire to the CoC to identify the CoC’s perceived needs in the county and its objectives to address the needs of different homeless persons populations, specifically chronically homeless families and individuals, families with children, veterans, unaccompanied youth and persons at risk of homelessness. Following the delivery and response to this questionnaire, the City followed up with the CoC to clarify existing needs and objectives and understand opportunities for collaboration and coordination during the five-year planning process.
To address the City’s homeless population, the City utilizes CDBG funds to provide public and supportive services to prevent homelessness and/or aid those who are homeless or at risk of becoming homeless.
Homeless supportive and prevention services funded through the City’s 2024-2025 CDBG program include:
• Family Promise of the South Bay (FPOSB) – Provides shelter (transitional housing) and case management for individuals experiencing homelessness.
• New Star Family Center (NSFC) – Provides case management, education, counseling and legal services to survivors of domestic violence who are at risk of homelessness. • The Richstone Family Center (RFC) – Provides behavioral health services to families affected by domestic violence who are at risk of homelessness.
• Catholic Charities of Los Angeles (CCLA) – Provides emergency housing and utility assistance to low-income Hawthorne residents.
• Fair Housing Foundation (FHF) – Addresses fair housing mediation and landlord-tenant dispute resolution services, which helps prevent homelessness.
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2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities Agency/Group/Organization LAHSA
Agency/Group/Organization Type Services-homeless
Continuum of Care
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
1 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Legal Aid Society of Orange County Agency/Group/Organization Type Services - Victims
What section of the Plan was addressed by
Consultation?
Public Services
2 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Los Angeles County Development Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Public Housing Needs
3 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Children's Dental Health Clinic Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Public Services
4 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization The Children's Clinic
Agency/Group/Organization Type Services-Health
5 What section of the Plan was addressed by
Consultation?
Public Services
City of Hawthorne - 12 - 24-25 Annual Action Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Hawthorne Veteran Affairs Commission Agency/Group/Organization Type Services-Homeless Veterans What section of the Plan was addressed by
Consultation?
Public Services
6 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Steelworkers Oldtimers Foundation Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation?
Public Services
7 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Harbor Regional Center
Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by
Consultation?
Public Services
8 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Watts Health Center
Agency/Group/Organization Type Services-Persons with HIV/AIDS What section of the Plan was addressed by
Consultation?
Public Services
9 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization County Public Health Department Agency/Group/Organization Type Services-Persons with HIV/AIDS Services-Health
Other government - Local
What section of the Plan was addressed by
Consultation?
Public Services
10 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
City of Hawthorne - 13 - 24-25 Annual Action Plan
Agency/Group/Organization Volunteers of America
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
11 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization South Bay Workforce Investment Board, Inc.
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Public Services
12 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization C-H #4 Residential Facility
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Residential Facility
13 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Champions of Caring
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Public Services
14 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization El Nido Family Centers
Agency/Group/Organization Type Services-Employment
What section of the Plan was addressed by
Consultation?
Economic Development
15 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Advantage
Agency/Group/Organization Type Services-Elderly Persons 16 What section of the Plan was addressed by
Consultation?
Public Services
City of Hawthorne - 14 - 24-25 Annual Action Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Ashley's Place Adult Residential II Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Elderly Services
17 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization EPI Center
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Elderly Services
18 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Piety and Emenogu-Work Skill Center Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Elderly Services
19 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Rosecrans Villa Residential Care Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Elderly Services
20 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Moneta Gardens Improvements
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Economic Development
21 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey, e-mail, and in person
22 Agency/Group/Organization Woodyear Home
Agency/Group/Organization Type Services-Elderly Persons City of Hawthorne - 15 - 24-25 Annual Action Plan
What section of the Plan was addressed by
Consultation?
Elderly Services
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization Los Angeles County Development Authority Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
23 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey and e-mail
Agency/Group/Organization New Star Family Center
Agency/Group/Organization Type Services – Survivors of Domestic Violence What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
24 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey, e-mail, and NOFA
Agency/Group/Organization Family Promise of the South Bay Agency/Group/Organization Type Housing
Services – Housing
Services – Homeless
What section of the Plan was addressed by
Consultation?
Housing Needs Assessment
Homeless Needs – Chronically Homeless
Homeless Needs – Families with Children
Homelessness Strategy
25 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey, e-mail, and NOFA
Agency/Group/Organization Catholic Charities of Los Angeles Agency/Group/Organization Type Services – Housing
Services - Homeless
What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
26 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Survey, e-mail, and NOFA
Agency/Group/Organization The Richstone Family Center
Agency/Group/Organization Type Services – Survivors of Domestic Violence 27 What section of the Plan was addressed by
Consultation?
Non-Housing Community Development
City of Hawthorne - 16 - 24-25 Annual Action Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
E-mail and NOFA
Agency/Group/Organization WeeCare
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Economic Development
28 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
E-mail and NOFA
Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Services-Fair Housing
Services-Housing
What section of the Plan was addressed by
Consultation?
Housing Needs Assessment
Market Analysis
28 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
E-mail and NOFA
Agency/Group/Organization FEMA
Agency/Group/Organization Type Agency – Managing Flood Prone Areas Agency – Emergency Management
What section of the Plan was addressed by
Consultation?
Hazard Mitigation
29 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey
Agency/Group/Organization FCC
Agency/Group/Organization Type Agency – Narrowing the Digital Divide What section of the Plan was addressed by
Consultation?
Hazard Mitigation
30 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
The organization was consulted by email outreach
and the web-based survey
Table 3 - Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City attempts to maintain a current and comprehensive list of agencies, organizations and other stakeholders and invited representatives from each entity to participate in the planning process at multiple points in the planning process. All agencies were strongly encouraged to attend community meetings and participate in surveys.
City of Hawthorne - 17 - 24-25 Annual Action Plan
If an agency or organization was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Housing Director in the Housing Department at (310) 349-1603.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Los Angeles Homeless
Services Authority
(LAHSA)
The goals included in the Strategic Plan are
consistent with the County of Los Angeles 10-Year
Strategy to End Homelessness.
City of Hawthorne
2021-2029 Housing
Element
City of Hawthorne The goals included in the Strategic Plan are consistent with the City of Hawthorne's Housing
Element with respect to affordable housing, housing
preservation, and furthering fair housing choice
City of Hawthorne
2020-2024 Analysis of
Impediments to Fair
Housing Choice (AI)
City of Hawthorne The AI was adopted on May 12, 2020 to accompany the City’s Consolidated Plan to ensure the goals
were properly aligned to address fair housing issues
and ensure equal access to housing for all residents.
Table 4 - Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) To enhance coordination among the CoC, public and assisted housing providers and private and governmental health, mental health and service agencies, the City invited each of these entities to provide input on the needs of the community in the development of this Consolidated Plan.
The Housing Department works with subrecipients of CDBG funds to ensure a coordinated effort among service agencies in the region to address the needs of Hawthorne residents, including but not limited to chronically homeless individuals and families, families with children, veterans and their families, unaccompanied youth, and persons who were recently homeless but now live in permanent housing. To promote economic opportunities for low-income residents, the City coordinates with subrecipient social service agencies, businesses and housing developers to ensure that where there are job opportunities for low-income people in connection with HUD-assisted projects, information is disseminated through appropriate channels consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.
Narrative
Broadband
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Throughout the City of Hawthorne, residents have consistent and multiple options to access broadband, high-speed internet. For broadband download speeds of 25 megabytes per second (mbps), 100% of residents are serviced by at least three internet service providers. For download speeds of 100 mbps, 71% of residents are serviced by two internet service providers and 28% of residents are serviced by one provider.
According to broadbandnow, the average download speed in Hawthorne is 70.91 mbps which is 119.3% faster than the average internet speed in California.
Hawthorne complies with HUD’s Narrowing the Digital Divide Through Installation of Broadband Infrastructure in HUD-Funded New Construction and Substantial Rehabilitation of Multifamily Rental Housing (81 FR 92626) rule (effective January 19, 2017). Through this rule, all new HUD-funded multi-family construction or substantial rehabilitation has included broadband infrastructure including cables, fiber optics, wiring and wireless connectivity to ensure that each unit has the infrastructure to achieve at least 25 mbps download and 3 mbps upload speeds.
Throughout the city, residents are serviced by two, oftentimes at least three internet service providers who offer high speed internet. The three primary service providers in Hawthorne are Spectrum, ATT and Earthlink. While broadband is available through multiple providers, residents who participated in the community outreach survey, identified that access to broadband was the highest public infrastructure need in Hawthorne. Of those who participated in the community outreach survey, 87% indicated that they had access to broadband internet.
Resilience
The City prepared its Local Hazard Mitigation Plan (LHMP) in coordination with other City departments, community stakeholders, partner jurisdictions, agencies, and organizations, and members of the public. The purpose of the LHMP is to focus on optimizing the mitigation phase of harm caused by a disaster. Mitigation involves making a community more resilient so that when hazard events do ultimately occur, the community suffers less damage and can recover more quickly and effectively. It differs from preparedness, which involves advanced planning for how to best respond when a disaster occurs or is imminent. The following new key goals were identified through consultation to increase resiliency:
• Protect life, property, and reduce potential injuries from natural caused hazards. • Improve public understanding, support, and need for hazard mitigation measures. • Promote disaster resistance for Hawthorne’s natural, existing, and future built environment. • Strengthen partnerships and collaboration to implement hazard mitigation activities. • Enhance the City’s ability to effectively and immediately respond to disasters.
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AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation The City established and followed a process for the development of this five-year Consolidated Plan that included broad participation from the community. These activities were coordinated and implemented by the Housing Department.
To assist in the identification of priority needs in the City, a survey was prepared and distributed to residents of the City to solicit resident input in the prioritization of needs related to community services, community facilities, infrastructure, neighborhood services, special needs services, businesses and jobs, and housing.
The surveys were available online and also were made available at various public facilities.
Two (2) community meetings to discuss the housing and community development needs in the community were held on September 26, 2019 and October 19, 2019. At each step in the process, the City was careful to ensure that low- and moderate-income residents, members of minority groups, agencies involved in the provision of services to these populations, and others who are directly impacted by the programs and activities supported by the Consolidated Plan programs had the opportunity to be actively involved.
To satisfy the federal requirements at 24 CFR 91.105(e)(1)(ii), the City held two (2) public hearings to obtain residents’ views on housing and community development needs, development of proposed activities, proposed strategies and actions for affirmatively furthering fair housing, and a review of program performance. The City of Hawthorne convened the first public hearing on September 12, 2023, to receive comments regarding program performance. A draft of the 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) was made available for public review and comment from August 24, 2023 to September 12, 2023. No public comments were received.
The City made the draft 2024-2025 Action Plan available for public review and comment from March 21, 2024 to April 23, 2024. Residents were invited to review the draft Action Plan and to attend the Public Hearing on April 23, 2024, or submit written comments concerning the housing and community development needs, proposed projects and activities in the Action Plan, as well as proposed strategies and actions for affirmatively furthering fair housing.
During the development of the 2024-2025 Action Plan, the City solicited applications from various non-profit organizations and City Departments for the provision of fair housing services, public services and community and economic development projects. Applications received by the January 26, 2024 deadline were evaluated for eligibility and funding recommendations.
August 2024 Amendment
The City made the draft Substantial Amendment to the 2024-2025 Action Plan available for public review and comment from July 22, 2024 to August 27, 2024. Residents were invited to review the draft Substantial Amendment and to attend a Public Hearing on August 27, 2024.
City of Hawthorne - 20 - 24-25 Annual Action Plan
Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 2020-2024
Consolidated Plan
Needs
Assessment
Survey
Minorities
Non-English
Speaking - Specify
other language:
Spanish
Nontargeted/broad
community
The 2020-2024
Consolidated Plan
Needs Assessment
Survey was
disseminated on
paper and in
electronic form in
English and in
Spanish to advise
the City on the
highest priority
housing, community
and economic
development needs
in Hawthorne.
58 Hawthorne
residents
responded to the
survey. The survey
was available from
August 2019 to
December 2019.
All comments were
accepted and
incorporated into the
survey results.
2 Public Meeting Minorities
Non-English
Speaking - Specify
other language:
Spanish
Persons with
disabilities
Residents and
stakeholders
attended two
Community Meetings
held on September
26, 2019 and
October 3, 2019.
Residents and
stakeholders
participated in a
presentation
concerning the
Consolidated Plan
and Action Plan. A
facilitated
discussion of
community needs
followed the
presentation.
All comments were
accepted.
City of Hawthorne - 21 - 24-25 Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
3 Newspaper Ad Minorities
Persons with
disabilities
Non-targeted /
broad community
Residents of Public
and Assisted
Housing
Notice of the 30-day
public review and
comment period for
the draft 2020-2024
Consolidated Plan,
2020-2021 Annual
Action Plan and
Analysis of
Impediments to Fair
Housing Choice. The
public notice invited
interested residents
to review the draft
documents and
where they were
available. Residents
were invited to a
public hearing to
provide oral
comments before
the Hawthorne City
Council on May
12,2020 at 6:00 p.m.
Not Applicable Not Applicable
4 Public Hearing Nontargeted/broad
community
Public hearing for
the draft 2020-2024
Consolidated Plan
No public
comments were
received
Not Applicable
City of Hawthorne - 22 - 24-25 Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
and the 2020-2021
Annual Action Plan
before the
Hawthorne City
Council on May 12,
2020 at 6:00 p.m.
5 Newspaper Ad Minorities
Persons with
disabilities
Non-targeted /
broad community
Residents of Public
and Assisted
Housing
Notice of the 15-day
public review and
comment period for
the draft 2022-2023
Consolidated Annual
Performance and
Evaluation Report
(CAPER). The public
notice invited
interested residents
to review the draft
documents.
Residents were
invited to a public
hearing to provide
oral comments
before the
Hawthorne City
Council on
September 12, 2023
at 6:00 p.m.
Not Applicable Not Applicable
City of Hawthorne - 23 - 24-25 Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
6 Public Hearing Nontargeted/board
community
Public hearing for
the draft 2022-2023
Consolidated Annual
Performance and
Evaluation Report
(CAPER) before the
Hawthorne City
Council on
September 12, 2023
at 6:00 p.m.
No public
comments were
received.
Not applicable.
7 Newspaper Ad Minorities
Persons with
disabilities
Non-targeted /
broad community
Residents of Public
and Assisted
Housing
Notice of the 30-day
public review and
comment period for
the draft 2024-2025
Action Plan. The
public notice invited
interested residents
to review the draft
documents.
Residents were
invited to a public
hearing to provide
oral comments
before the
Hawthorne City
Council on April 23,
2024 at 6:00 p.m.
Not Applicable Not Applicable
City of Hawthorne - 24 - 24-25 Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
8 Public Hearing Nontargeted/board
community
Public hearing for
the draft 2024-2025
Action Plan before
the Hawthorne City
Council on April, 23,
2024 at 6:00 p.m.
No public
comments were
received.
Not applicable.
9 Newspaper Ad Minorities
Persons with
disabilities
Non-targeted /
broad community
Residents of Public
and Assisted
Housing
Notice of the 30-day
public review and
comment period for
the draft Substantial
Amendment to the
2024-2025 Action
Plan. The public
notice invited
interested residents
to review the draft
documents.
Residents were
invited to a public
hearing to provide
oral comments
before the
Hawthorne City
Council on August
27, 2024 at 6:00
p.m.
Not Applicable Not Applicable
City of Hawthorne - 25 - 24-25 Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
10 Public Hearing Nontargeted/board
community
Public hearing for
the draft Substantial
Amendment to the
2024-2025 Action
Plan before the
Hawthorne City
Council on August
27, 2024 at 6:00
p.m.
TBD Not applicable.
Table 5 – Citizen Participation Outreach
City of Hawthorne - 26 - 24-25 Annual Action Plan
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The projects and activities included in the 2024-2025 Action Plan are based on resources that are reasonably anticipated to be available to the City from federal, state, local and private sources from July 1, 2024 through June 30, 2025. The actual resources available to support activities during the implementation of the remainder of the 2020-2024 Consolidated Plan may vary significantly due to factors outside of the City’s control. For example, HUD formula grant allocations are subject to change each year based on several factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the CPD grant formulas, the addition or removal of entitlements receiving a particular CPD grant and the availability of reallocated funds. Additionally, state, local and private resources will vary significantly depending on the economic conditions.
For the 2024-2025 Program Year, the City will receive $1,177,964 in CDBG and $508,759.41 in HOME funds. In addition, the City will be reallocating $1,515,174.13 in prior year unprogrammed CDBG funds and $4,490,956.12 in prior year unprogrammed HOME funds during the 2024-2025 program year.
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Anticipated Resources
Expected Amount Available Year 5
Program Source of
Funds Uses of Funds Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
Expected
Amount
Available
Remainder of
Con Plan
$
Narrative
Description
CDBG public -
federal
Acquisition
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
$1,177,964 $0 $1,515,174.13 $2,693,138.13 $0
The expected
amount
available for
the remainder
of the
Consolidated
Plan period
assumes level
funding in
future years.
HOME public -
federal
Acquisition
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental rehab
New construction for
ownership
TBRA
$508,759.41 $0 $4,490,956.12 $4,999,715.53 $0
The expected
amount
available for
the remainder
of the
Consolidated
Plan period
assumes level
funding in
future years.
Table 6 - Expected Resources – Priority Table
City of Hawthorne - 28 - 24-25 Annual Action Plan
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied As a City with substantial housing and community development needs, Hawthorne needs to leverage its CDBG and HOME entitlement grants with a variety of funding resources in order to maximize the effectiveness of available funds. The City’s former Redevelopment Agency was the City’s primary non-federal source of leveraged funds. With the elimination of the City’s Redevelopment Agency, the City’s ability to leverage federal funds has been substantially reduced. The City is currently seeking new opportunities to leverage federal funds, such as the Low Income Housing Tax Credit (LIHTC) program and U.S. Department of Housing and Urban Development Community Project Funds (CPF) and 811 for the Elderly Program.
Since the initial planning and programming of these resources, the Housing Department has worked closely with other City departments as well as County, State, and Federal partners to identify other available resources authorized through the CARES Act, ARP Act, the Small Business Administration (SBA), and Federal Emergency Management Agency (FEMA) that may be leveraged to maximize the impact of the CDBG and HOME resources.
Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• Youthbuild
• Federal Low-Income Housing Tax Credit Program
• HUD Community Project Funding (CPF)
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• State Permanent Local Housing Allocation (PLHA)
Local Resources
• Los Angeles Homeless Services Authority (LAHSA)
• Los Angeles County Development Agency (LACDA)
City of Hawthorne - 29 - 24-25 Annual Action Plan
• Los Angeles County Community Development Commission (LACDC) • Southern California Home Financing Authority (SCHFA) Funding Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
HOME Matching Requirements
HUD requires HOME Participating Jurisdictions (PJ’s) to match 25 percent of their HOME annual allocation.
In accordance with 24 CFR 92.222, PJ’s satisfying the distress criteria established by the HOME Program regulations are provided a match reduction. As of November 2023, City of Hawthorne received a match reduction from HUD, and therefore, is required to match 12.5% of HOME Funds using non-federal funds. The City of Hawthorne leverages HOME funds with other local and private non-federal resources.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
In December 2011, the California Supreme Court upheld Assembly Bill 1X 26, which barred Redevelopment Agencies from engaging in new business and provided for their windup and dissolution. In the last five years, the elimination of the Redevelopment Agencies has resulted in the loss of a crucial resource for the development and preservation of affordable housing. This was the most significant public policy change impacting affordable housing and residential investment. While there are mechanisms whereby certain affordable housing assets are tied to the former Redevelopment Agencies (Successor Agencies) that may be utilized today, these resources are finite and scarce.
As such, any land or property necessary to address the needs in the Consolidated Plan would need to be acquired using HUD grant funds or other local resources.
Discussion
During the 2024-2025 program year, the City anticipates that these funds will be leveraged with other public and private funding. Along with leveraged dollars, the City expects to spend approximately $1,984,874.13 of CDBG and $4,999,715.53 of HOME funds during the program year on public services, housing development, and public facility and infrastructure improvement activities that promote a suitable living environment and decent housing.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order Goal Name Start Year
End
Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Program Planning and
Administration 2024 2025 N/A Citywide N/A
CDBG:
$205,592
HOME:
$50,875
Other: 2
2 Fair Housing Services
(subject to 20% Admin
cap)
2024 2025 Affordable
Housing Citywide
Ensure Equal Access
to Housing
Opportunities
CDBG:
$30,000 Other: 250 persons
3 Public Services 2024 2025
Non-Housing
Community
Development
Citywide &
CDBG
Eligible
Areas
Provide Public Services
to low-and moderateincome residents
CDBG:
$176,694
Public service activities other
than Low/Moderate Income
Housing Benefit: 291 Persons
4 Public Facilities and
Infrastructure
Improvements
(includes Section 108
Loan Repayment)
2024 2025
Non-Housing
Community
Development
Citywide &
CDBG
Eligible
Areas
Improve public facilities
and infrastructure;
Address material
barriers to accessibility
108 Loan:
$5,740,140
CDBG:
$339,773.75
Public facility or infrastructure
activity other than Low/Mod
Income Housing Benefit:
90,310 persons
Other: 1
5 Affordable Housing
Development 2024 2025 Affordable Housing Citywide
Increase the supply of
affordable housing for
low- and moderateincome residents
CDBG:
$1,311,078.38
HOME:
$1,508,059.41
Homeowner Housing: 2
Household Housing Units
6 Affordable Housing
Preservation 2024 2025 Affordable Housing Citywide
Preserve the supply of
affordable housing for
low- and moderateincome residents
CDBG:
$630,000
HOME:
$3,440,781.12
Homeowner Housing
Rehabilitated: 10 Household
Housing Units
Rental Modernization: 18
Tenant Occupied Housing Units
Table 7 – Goals Summary
City of Hawthorne - 31 - 24-25 Annual Action Plan
Goal Descriptions
1 Goal Name Program Planning and Administration
Goal
Description
CDBG and HOME Program Planning and Administration.
2 Goal Name Fair Housing Services (subject to 20% admin cap) Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination, and landlord-tenant mediation services. 3 Goal Name Public Services
Goal
Description
Provide low- and moderate- income families with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty.
Goal Name Public Facilities and Infrastructure Improvements (Includes Section 108 Loan Repayment)
4 Goal
Description
Improve City of Hawthorne public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderate-income such as elderly and disabled adults. Includes Section 108 Loan Repayment.
5 Goal Name Affordable Housing Development
Goal
Description
Expand the supply of affordable housing for low- and moderate-income Hawthorne homeowners and tenants.
6 Goal Name Affordable Housing Preservation
Goal
Description
Preserve the quality of existing affordable housing stock occupied by low- and moderate-income Hawthorne homeowners and tenants through rehabilitation activities.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b).
The City of Hawthorne anticipates providing affordable housing to low- and moderate-income households through the following projects:
• City of Hawthorne: Homeowner Housing Rehabilitation Program - $430,000 (10 homeowner household housing units)
• City of Hawthorne: Rental Rehabilitation Program - $3,440,781.12 in HOME funds and $200,000 in CDBG funds (18 tenant occupied housing units)
• City of Hawthorne: Acquisition and Affordable Housing Development- $1,054,710.41 in HOME funds and $1,311,078.38 in CDBG funds (2 homeowner household housing units) City of Hawthorne - 32 - 24-25 Annual Action Plan
AP-35 Projects – 91.220(d)
Introduction
To address the high priority needs identified in the Strategic Plan to the 2020-2024 Consolidated Plan, the City of Hawthorne will invest CDBG and HOME funds in projects that provide fair housing services, provide public services to low- and moderate-income residents, develop affordable housing, and improve the City’s public facilities and infrastructure. Together, these projects will address the housing, community and economic development needs of Hawthorne residents.
Projects
# Project Name
1 Program Administration
2 Fair Housing Services
3 Public Services
4 Public Facilities and Infrastructure Improvements
5 Affordable Housing Development
6 Affordable Housing Preservation
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG funds (excluding Section 108 loan repayment and CDBG administration) as well as HOME funds for 2024-2025 projects and activities that benefit low- and moderate-income people. Due to the nature of the projects and activities to be undertaken, investments in public service activities may be limited to the CDBG low- and moderate-income areas while other activities benefit low- and moderate-income limited clientele and are available citywide.
The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to lowincome people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2024-2025 Action Plan in projects that develop and preserve affordable housing, provide public services to low- and moderateincome residents, and improve public facilities and infrastructure.
City of Hawthorne - 33 - 24-25 Annual Action Plan
AP-38 Project Summary
Project Summary Information
Project Name Program Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $205,592
HOME: $50,875
Description Overall administration of the CDBG and HOME program which includes preparation and submission of the Annual Action Plan and CAPER, IDIS data input, provision of technical assistance, monitoring of all projects, and overall fiscal management.
Target Date 6/30/2025
Estimate the number and type of families
that will benefit from the proposed activities
N/A
Location Description N/A
1 Planned Activities City of Hawthorne: CDBG Program Administration ($205,592) City of Hawthorne: HOME Program Administration ($50,875) Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $30,000
Description Fulfill obligation to affirmatively further fair housing choice through the provision of fair housing education, counseling, antidiscrimination, and landlord-tenant mediation services.
Target Date 6/30/2025
Estimate the number and type of families
that will benefit from the proposed activities
250 persons assisted
Location Description Citywide
2 Planned Activities Fair Housing Foundation: Fair Housing Services ($30,000 - 250 persons assisted)
Project Name Public Services
Target Area Citywide/CDBG Eligible Areas
Goals Supported Public services for low- and moderate-income residents Needs Addressed Provide public services to low- and moderate-income residents Funding CDBG: $176,694
Description Provide low- and moderate-income residents with a range of public services necessary to prevent homelessness and
ameliorate the effects of poverty.
Target Date 6/30/2025
3 Estimate the number and type of families
that will benefit from the proposed activities
291 persons assisted
City of Hawthorne - 34 - 24-25 Annual Action Plan
Location Description Citywide/CDBG Eligible Areas
Planned Activities South Bay Workforce Investment Board: Teen Center ($93,217 – 90 persons assisted)
New Star Family Justice Center: Domestic Violence Program ($21,813 – 22 persons assisted)
Family Promise of the South Bay: Shelter and Supportive Services ($19,390 – 15 persons assisted)
Catholic Charities of Los Angeles: St. Margaret’s Center Emergency Assistance Program ($21,915 – 140 persons assisted)
The Richstone Family Center: Behavioral Health Services ($20,359 – 24 persons assisted)
Project Name Public Facilities and Infrastructure Improvements Target Area Citywide/CDBG Eligible Areas
Goals Supported Public Facilities and Infrastructure Improvements Needs Addressed Improve public facilities and infrastructure; Address material barriers to accessibility
Funding CDBG: $339,773.75
Section 108 Loan: $5,740,140
Description Improve City of Hawthorne public facilities and infrastructure to benefit low- and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults as well as residents of lowand moderate-income housing. This strategy includes the improvement of alleyways and repayment of the City’s section 108 loan is included under this project.
Target Date 6/30/2025
Estimate the number and type of families
that will benefit from the proposed activities
90,310 persons assisted
Other: 1
Location Description Citywide/CDBG Eligible Areas
4 Planned Activities City of Hawthorne: Eucalyptus Park Project ($1,240,140 – 29,210 persons assisted)
City of Hawthorne: Jim Thorpe Park Project ($500,000 – 36,735 persons assisted)
City of Hawthorne: Ramona Park Project ($700,000 – 18,030 persons assisted)
City of Hawthorne: Senior Center Project ($3,300,000 - 6,335 seniors assisted)
City of Hawthorne: Section 108 Loan Repayment: ($339,773.75) Project Name Affordable Housing Development
Target Area Citywide
Goals Supported Affordable Housing Development
Needs Addressed Increase the supply of affordable housing 5 Funding CDBG: $1,311,078.38
HOME: $1,508,059.41
City of Hawthorne - 35 - 24-25 Annual Action Plan
Description Expand the supply of affordable owner-occupied dwellings through acquisition, rehabilitation, and resale of housing units to eligible households as well as homebuyer assistance to eligible households.
Target Date 6/30/2025
Estimate the number and type of families
that will benefit from the proposed activities
2 Households/Housing Units
Location Description Citywide
Planned Activities TBD: CHDO Set-Aside ($453,349)
City of Hawthorne: Acquisition & Affordable Housing
Development ($2,365,788.79 – 2 household housing units) Project Name Affordable Housing Preservation
Target Area Citywide
Goals Supported Affordable Housing Preservation
Needs Addressed Preserve the supply of affordable housing Funding CDBG: $630,000
HOME: $3,440,781.12
Description The City has an existing Housing Rehabilitation Program geared towards the preservation of the quality of existing affordable housing stock occupied by low- and moderate-income
homeowners and tenants.
Target Date 6/30/2025
Estimate the number and type of families
that will benefit from the proposed activities
10 Homeowner Households/Housing Units
18 Tenant-occupied housing units
Location Description Citywide
6 Planned Activities City of Hawthorne: Homeowner Housing Rehabilitation ($430,000 – 10 Household Housing Units)
City of Hawthorne: Public Housing Modernization/Rental
Rehabilitation ($3,640,781.12 – 18 Tenant Occupied Housing Units)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
Assistance will be primarily directed to activities that serve low- and moderate-income residents. During the 2024-2025 program year, three (3) public facility and infrastructure projects and one (1) public service activity rely on the established low- and moderate-income area.
The low- and moderate-income census tract/block groups are shown on the map included in Section NA-10 of the Consolidated Plan and Appendix B of this Action Plan. According to data from the 2011-2015 American Community Survey (ACS) provided in HUD’s eCon Planning Suite, a total of 86,440 residents live in these City of Hawthorne - 36 - 24-25 Annual Action Plan
Census Tract Block Groups, of which 62,945 or 73% are predominantly comprised of members of low- and moderate-income households. Based on available data and mapping, the CDBG low- and moderate-income areas are primarily Hispanic.
Geographic Distribution
Target Area Percentage of
Funds
Citywide 94%
CDBG Eligible Areas 6%
Table 9 - Geographic Distribution
*Rationale for the priorities for allocating investments geographically For the 2024-2025 program year, the City will invest $1,177,964 of CDBG funds and $508,759.41 of HOME funds for a total of $1,686,723.41 that will benefit low- and moderate-income people throughout the City. Of this amount, $96,150, or 6 percent, of all resources will be invested in public service activities that exclusively benefits residents of the L/M Income Census Tract/Block Groups. Due to the nature of the projects and activities to be undertaken, investments in activities such as the Teen Center are generally limited to the eligible low- and moderate-income areas, while other projects and activities that benefit low- and moderateincome limited clientele are available citywide.
The City has applied for a Section 108 Loan that will result in an investment of $5,740,140 towards four (4) public facility and infrastructure improvement projects. Of this amount, $2,440,140, or 43 percent, of all Section 108 resources will be invested in three (3) public facility improvement projects that exclusively benefit residents of the L/M Income Census Tract/Block Groups. Due to the nature of these projects, investments in activities such as the Ramona Park, Jim Thorpe Park, and Eucalyptus Park are generally limited to the eligible low- and moderate-income areas, while other projects such as the Senior Center are available to elderly residents citywide.
Discussion
Based on the Strategic Plan, the City is allocating 100 percent of its CDBG funds (excluding Section 108 loan repayment and CDBG administration) as well as HOME funds for program year 2024-2025 to projects and activities that benefit low- and moderate-income people.
City of Hawthorne - 37 - 24-25 Annual Action Plan
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Two high priority affordable housing needs are identified in the 2020-2024 Consolidated Plan and two Strategic Plan goals are established to provide the framework necessary to invest CDBG and HOME funds to address the affordable housing needs of the City.
Expand the Supply of Affordable Housing
Based on evaluation of 2011-2015 ACS and CHAS data, there is a high need for housing units affordable for households earning less than 80 percent of AMI. Of the 19,050 households earning 0-80 percent of AMI in the City, 13,578 are cost burdened households—meaning households paying more than 30 percent of their income for housing. Additionally, 7,199 of the cost burdened households are considered severely cost burdened households—meaning that they pay more than 50 percent of their income for housing. Of the 7,199 severely cost burdened households, 5,850 are renters. Of those severely cost burdened renter households, 5,690 households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless.
Preserve the Supply of Affordable Housing
As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them to remain safe and habitable. The situation is of particular concern for low- and moderate-income homeowners who are generally not in a financial position to properly maintain their homes.
The age and condition of Hawthorne’s housing stock is an important indicator of potential rehabilitation needs. Commonly, housing over 30 years of age needs some form of major rehabilitation, such as roof replacement, foundation work and plumbing systems. Housing over 15 years of age will generally exhibit deficiencies in terms of paint, weatherization, heating / air-conditioning systems, hot water heaters and finish plumbing fixtures.
According to CHAS data showing the year that housing units were built categorized by owner and renter tenure:
• 5,900 or 76 percent of the 7,735 owner-occupied housing units in Hawthorne were built 40 or more years ago (built prior to 1980)
• 1,120 or 14 percent of the 7,735 owner-occupied housing units in Hawthorne were built between 30 and 40 years ago (built between 1980 and 1999)
• 14,755 or 69 percent of the 21,415 renter-occupied housing units in Hawthorne were built 40 or more years ago (built prior to 1980)
• 6,195 or 29 percent of the 21,415 renter-occupied housing units in Hawthorne were built between 30 and 40 years ago (built between 1980 and 1999)
City of Hawthorne - 38 - 24-25 Annual Action Plan
Preservation of the physical and functional integrity of existing housing units occupied by low- and moderateincome households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate-income households in the community. Addressing substandard housing conditions through housing preservation activities provide that all economic segments of the community have the means to ensure that their property meets local standards and that all Hawthorne residents have the opportunity to live in decent housing.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 170
Special-Needs 0
Total 170
Table 10 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 140
The Production of New Units 2
Rehab of Existing Units 28
Acquisition of Existing Units 0
Total 170
Table 11 - One Year Goals for Affordable Housing by Support Type Discussion
The Strategic Plan identifies a high priority need to expand the supply of affordable housing and a high priority need to preserve the supply of affordable housing. During the 2024-2025 program year, the City of Hawthorne will continue collaborating and coordinating with potential Community Development Housing Organizations (CHDO’s) to invest HOME funds in the expansion and preservation of affordable housing units.
The 2024-2025 Annual Action Plan allocates $430,000 of CDBG funds to provide financial assistance to lowand moderate-income homeowners to help preserve their single-family homes in need of critical home improvements. In addition, the City intends to invest $3,440,781.12 in HOME and $200,000 in CDBG funds towards rehabilitating and modernizing its existing public housing stock. As it relates to expansion of affordable housing, the City plans to utilize $1,311,078.38 in CDBG and $1,054,710.41 of HOME funds to acquire and develop two (2) affordable owner-occupied housing units.
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AP-60 Public Housing – 91.220(h)
Introduction
The City of Hawthorne Housing Authority was formed in 1994 under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The Hawthorne Housing Authority does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the Los Angeles County Development Agency (LACDA) for the purposes of Section 8 and Public Housing.
Actions planned during the next year to address the needs to public housing During the 2024-2025 program year, LACDA will continue providing housing and public services to existing residents of the City of Hawthorne. LACDA takes in feedback of residents collected through resident surveys distributed throughout the City of Hawthorne to improve services.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
LACDA actively encourages residents to be involved in the organization through resident councils and active participation in housing authority decisions via surveys and other forms of engagement. Resident surveys were distributed with translation services available on request. Community meetings in target areas were hosted with copies of the Consolidated Plan draft being available in these areas. A public hearing is conducted to accept public comments on the draft plan before its approval and submittal to HUD. Grant funding is administered to increase housing availability and accessibility to residents to encourage greater participation in homeownership. LACDA also maintains quarterly newsletters for Section 8 tenants, public housing residents, and Section 8 property owners.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable, LACDA is designated as a High Performing Public Housing Agency.
Discussion
LACDA is well-positioned to continue providing Section 8 Housing Choice Vouchers in the City of Hawthorne and throughout Los Angeles County.
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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City of Hawthorne supports the efforts of The Los Angeles Homeless Service Authority (LAHSA), County Continuum of Care (CoC), and its member organizations that address homelessness throughout Los Angeles County. In alignment with this strategy, the City will use CDBG and HOME and other local funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The CoC and its partner agencies will continue to provide a continuum of programs ranging from outreach, access centers, emergency shelters, safe havens, transitional and permanent housing, and prevention.
More specifically, LAHSA, the County’s CoC, will increase efforts in 2024-2025 to add emergency and transitional shelter housing units through expedited construction or rehabilitation of facilities to accommodate homeless persons.
To reach out to unsheltered homeless persons and assess their individual needs for the purpose of connecting them with available emergency shelter and transitional housing resources, the City of Hawthorne, through its Housing Department provided information and referrals – primarily to LAHSA, United Way 2-1-1, and the organizations received CDBG funds for homelessness prevention activities.
During the 2024-2025 program year, the City will invest $83,477 of CDBG funds to the following non-profit organizations that provide public services that prevent and eliminate homelessness:
• Family Promise of the South Bay: Transitional Shelter & Housing Case Management (15 persons assisted - $19,390)
• New Star Family Center: Domestic Violence Services (22 persons assisted - $21,813) • The Richstone Family Center: Behavioral Therapy Services (24 persons assisted - $20,359) • Catholic Charities of Los Angeles: St. Margaret’s Center Emergency Assistance (140 persons assisted - $21,915)
Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for City of Hawthorne - 41 - 24-25 Annual Action Plan
affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system in order to address the immediate needs of Los Angeles County’s homeless population.
To address the emergency shelter and transitional housing needs of homeless persons, the City continues to support the Family Promise of the South Bay (FPOSB) which operates a transitional shelter for families that are homeless and provides case management services with the goal of helping 15 people to enter their own permanent housing.
This increase in permanent supportive housing for the most vulnerable populations is attributed to Los Angeles County homeless service providers re-tooling their programs and shifting their focus to moving people quickly into permanent supportive housing throughout the County. Homelessness can be significantly reduced and the quality of life of our residents, especially those precariously housed or homeless can be improved.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again To address the needs of homeless families, families with children, veterans and their families, the City will continue to support the Family Promise of the South Bay (FPOSB) which operates a transitional shelter for families that are homeless and provides case management services with the goal of helping families enter their own permanent housing. Furthermore, the City intends to continue its support of Catholic Charities of Los Angeles' (CCLA) emergency assistance program that helps families that are at-risk of homelessness achieve stability by connecting them to the appropriate housing and utility resources based on their needs.
Additionally, the City’s partnership with LAHSA provides intensive, field-based engagement services and support that meets clients and their families where they live. As a result, the City has been able to leverage its partnerships with the County agencies to bolster its homeless outreach efforts.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs To help low-income individuals and families avoid becoming homeless, the City will continue its partnership with Catholic Charities of Los Angeles (CCLA) to connect residents at risk of becoming homeless to existing short-term housing and utility assistance programs based on their eligibility and need. In addition, the City intends to support both New Star Family Center (NSFC) and the Richstone Family Center (RFC) which City of Hawthorne - 42 - 24-25 Annual Action Plan
provide a range of services to survivors of domestic violence and their children who are homeless or at-risk of homelessness after fleeing violent homes.
Inadequate discharge planning and coordination contributes to homelessness in situations where people are released from public institutions or public systems of care without having an appropriate mainstream or supportive housing option available upon discharge from an institutional setting. Public institutions such as jails, hospitals, treatment facilities, mental health facilities, youth facilities, and foster care homes are central to limiting the creation of newly homeless persons upon discharge.
In California, discharge coordination and planning is largely unregulated unless county or municipal ordinances provide rules preventing public institutions from discharging people into homelessness. One of the goals included in the Los Angeles Ten Year Strategy to End Homelessness is to formalize protocols and improve the coordination of discharge planning among key institutional systems of care and supervision. The goal calls for the CoC to close the “revolving door” to homelessness so that new persons do not find themselves living in the community without the social and economic support necessary to access and maintain themselves in a safe environment.
The City coordinated with the CoC and other subrecipients receiving CDBG funds to ensure that its HUDfunded programs are targeted, to the greatest extent feasible, to address the discharge of persons from publicly funded institutions or systems of care so that these individuals and families have access to public services and affordable housing opportunities necessary to prevent homelessness. The City will continue to explore additional ways to prevent and address homelessness caused by discharge from public institutions.
Discussion
The City will use CDBG, HOME and other local funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents
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AP-75 Barriers to affordable housing – 91.220(j)
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey, the 2021-2029 Housing Element and market analysis, the primary barriers to affordable housing in Hawthorne are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In the development of the 2021-2029 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken all necessary steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. Moreover, the City is actively engaged with affordable housing developers concerning the siting of affordable housing and ensuring that the entitlement process runs smoothly from inception to completion.
The City’s 2021-2029 Housing Element includes a goal to reduce or remove governmental and nongovernmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. More specifically, the following actions were identified:
• Review residential development standards, regulations, ordinances, departmental processing procedures, and permit fees related to construction and rehabilitation to determine any constraints on housing development and modify accordingly.
• Inform applicants on how to navigate the development review process and efficiently facilitate building permit and development plan processing for residential construction. • Monitor state and federal housing-related legislation, and update City plans, ordinances, and processes pursuant to such legislation to remove or reduce governmental constraints. • Provide incentives and regulatory concessions for residential projects constructed specifically for lowand moderate-income households. • Adopt plans and programs that support the provision of adequate infrastructure and public facilities City of Hawthorne - 44 - 24-25 Annual Action Plan
required to serve new housing.
Discussion
To address housing affordability and the lack of monetary resources for affordable housing, the City will continue to leverage its CDBG and HOME funds to attract private and other available resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing.
Through the City’s Housing Rehabilitation Program, it will provide financial assistance to low- and moderateincome owners of single-family residences to help preserve homes that need critical home improvements. In addition, the City’s Homebuyer Assistance program will provide financial assistance to income-eligible households to purchase a house. Lastly, the Acquisition, Rehabilitation, and Resale project will expand the supply of affordable housing for low- and moderate-income residents.
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AP-85 Other Actions – 91.220(k)
Introduction
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce leadbased paint hazards, reduce the number of poverty-level families, develop institutional structure and enhance coordination between public and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to lowincome people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2024-2025 Action Plan in projects that provide public services to low- and moderate-income people and those with special needs, financial assistance to low- and moderate-income homeowners to preserve their residence, financial assistance to income eligible households to purchase a house, as well as projects that acquire, rehabilitate and resell housing units to low- and moderate-income residents. To address underserved needs, the City is allocating 100 percent of its non-administrative CDBG and HOME investments for program year 2024-2025 to projects and activities that benefit low- and moderate-income people or people presumed under HUD regulations to be low- and moderate-income.
Actions planned to foster and maintain affordable housing During the 2024-2025 program year, the City will invest CDBG funds to preserve and maintain affordable housing through the City’s Housing Rehabilitation Program that will provide financial assistance to low- and moderate-income owners of single-family housing. In addition, the City will allocate CDBG and HOME funds to preserve and maintain affordable housing units for low- and moderate-income tenants. Lastly, CCLA’s Emergency Assistance program furthers the aim of affordable housing by financially assisting low- to moderate-income residents who are at risk of experiencing homelessness through emergency rental and utility payments.
Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City of Hawthorne Housing Rehabilitation Program will conduct lead-based paint testing and risk assessments for each property assisted that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.
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Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in the 2020-2024 Consolidated Plan - Strategic Plan and this Annual Action Plan will help to reduce the number of povertylevel families by:
• Supporting activities that expand the supply of housing that is affordable to low- and moderateincome households; • Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; and
• Supporting public services for low- and moderate-income residents In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness.
The Fair Housing Foundation (FHF) will assist low- and moderate-income households by providing guidance, services, and information regarding fair housing rights and help with addressing cases of housing discrimination. Additionally, FPOSB’s program will be providing shelter (transitional housing) and case management services.
Actions planned to develop institutional structure
The institutional delivery system in Hawthorne is high-functioning and collaborative—particularly the relationship between local government and the nonprofit sector comprised of a network of capable non-profit organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs and the housing, community and economic development activities that are implemented by the City support and enhance this existing institutional structure, the City of Hawthorne will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2024-2025 Annual Action Plan to ensure that the needs of low- and moderateincome residents are met as envisioned within the 2020-2024 Consolidated Plan - Strategic Plan.
Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Hawthorne— particularly the CDBG low- and moderate-income areas. With improvements in technology, the City will City of Hawthorne - 47 - 24-25 Annual Action Plan
expand its outreach efforts to enhance coordination with public and private housing and social service agencies through social media platforms such as Facebook, Twitter, NextDoor, etc.
Discussion
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce leadbased paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.
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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
In the implementation of programs and activities under the 2024-2025 Annual Action Plan, the City of Hawthorne will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.
Eligible applicants for CDBG assistance include organizations that carry out programs that benefit low- and moderate-income residents on behalf of the City. Applications from interest organizations are solicited by the City via a published Notice of Funding Availability (NOFA). Eligible beneficiaries for HOME funded resale programs include households earning less than 80 percent of AMI. Developers for HOME-assisted housing projects shall be selected via an application and underwriting process determined by the City based on the nature, scope, and applicable regulatory requirements of the prospective project. Opportunities for leveraging and matching funds shall be emphasized in the selection of affordable housing developers.
Selection of affordable housing development projects shall be based on project feasibility, funding availability, and the City needs as determined by staff and the City Council.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
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Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section 92.205.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
During the 2024-2025 program year, the City of Hawthorne will implement homebuyer activities which will incorporate recapture requirements into written agreements and long-term affordability covenants as required by 24 CFR 92.254.
The recapture provision ensures that all or a portion of the City’s HOME assistance to homebuyers or homeowners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability. In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investments due, the City can only recapture a portion of the net proceeds, if any. The net proceeds that are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.
In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. However, notwithstanding a foreclosure situation, the City intends to recapture all or some of its HOME funds invested during or at the end of the established affordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale if the assisted owner is no longer residing in the assisted residence or for any other breaches of the agreement with the City.
Recaptured funds may be used for any HOME eligible activity.
These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.
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3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
Periods of affordability. The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described in the table below:
Amount of HOME Assistance Minimum Period of Affordability Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
Recapture
During the affordability period, if there is a property sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the City will provide for the recapture of HOME funds in accordance with the following:
1. Upon the occurrence of a sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the entire amount of the HOME Assistance provided by the City will be due to the City.
2. Notwithstanding the preceding, in the event that the Net Proceeds resulting from a sale are not sufficient to provide for the full return of the borrower’s investment inclusive of the original down payment and capital improvements performed on the acquired property (subject to City verification and approval), then the borrower shall be entitled to recover their original down payment amount and City-approved capital improvement amounts before the City recapture of the HOME investment amount (the City HOME Assistance). For the purposes of this calculation, net proceeds shall mean the sales price minus the repayment of the Primary Loan undertaken to acquire the Property (other than HOME funds) and any closing costs. Capital improvements means those improvements legally made by Homeowner to the Property after the closing of Homeowner’s purchase of the Property, with a minimum cost of Two Thousand Five Hundred Dollars ($2,500) per item, and a useful remaining economic life of not less than five (5) years, as approved by the City and documented by invoices and receipts which the Homeowner certifies to be true and correct. In the event the net proceeds are not sufficient to repay the full amount of the HOME assistance plus enable the Qualified Homebuyer to recover their initial investment in the home and documented costs of any Capital Improvements, the Qualified Homebuyer shall share the Net Proceeds with the City. For the purpose of this provision, the “initial investment in the home” shall mean the Qualified Homebuyer’s down payment. Share of Net Proceeds shall be calculated as set forth in the following mathematical formulas: 24 CFR 92.254(a)(5)(ii)(A)(3)
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The affordability period will be evidenced by a promissory note, secured by a deed of trust or mortgage, which provides the affordability period and details the formula under which the HOME funds will be recaptured by the City.
The affordability period and recapture requirements will be evidenced by a deed restriction or covenant indicating the affordability period and restricting future sales.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2024-2025 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
Discussion
APPENDIX A
Citizen Participation
APPENDIX B
Grantee Unique Appendices
APPENDIX C
SF-424, SF-424D, & Certifications
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AGENDA ITEM NO.
CITY OF HAWTHORNE
CITY COUNCIL
AGENDA BILL
For the meeting of August 27, 2024
Originating Department: Finance
City Manager: ____________________ Dir. of Finance: ____________________ Vontray Norris Felice Lopez
SUBJECT:
Public Hearing – Adopt Resolution No. 8481, Authorizing the Issuance of the Lease Revenue Bonds, Series 2024.
City Clerk Declaration publication filed.
RESOLUTION NO. 8481
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE APPROVING
THE ISSUANCE OF THE HAWTHORNE PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2024, AND MAKING A FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION THEREWITH, AUTHORIZING THE CITY’S EXECUTION AND DELIVERY OF RELATED DOCUMENTS AND TAKING RELATED ACTIONS.
Motion to Adopt.
RECOMMENDED MOTION:
Conduct a Public Hearing and Approve Resolution No. 8481 (i) Authorizing Issuance of the Lease Revenue Bonds, Series 2024 (the “2024 Bonds”); (ii) Approving related documents, including the Preliminary Official Statement; and (iii) Directing Related Actions to Finance Public Improvements to the City Hall and Civic Center Park, the new Public Works Yard, the Senior Center, the Police Facility, and the City Aquatics Center (the “Public Improvements”).
DISCUSSION:
Plan of Finance. The City contemplates issuance of the 2024 Bonds to fund, together with additional funds on hand of the City, the proposed construction of the Public Improvements:
Public Improvements
City Hall Building and Civic Center Park
Public Works Yard
Senior Center Addition
Police Facility Improvements
Total Approximate Cost
$24 million
$7 million
$12 million
$2 million
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City Aquatics Center Updates
Total
$2 million
$47 million
Approximately $30 million will be funded from the proposed 2024 Bonds and approximately $17 million from existing reserves of the general fund.
Lease Financings Generally. California cities commonly use lease financing to pay for capital improvements through their general fund without first holding a city-wide election. Lease financings are commonly structured as lease revenue bonds issued by a joint powers authority (a separate public agency formed to provide assistance with financings under State law). Under a lease revenue bond financing, the city makes lease payments to the joint powers authority for the right to use and occupy a public building, and the joint powers authority assigns its right to receive the lease payments to a bond trustee; the bond trustee uses the lease payments to pay debt service on lease revenue bonds that are sold to investors. In lease financing structures, cities covenant to annually budget and appropriate from the general fund for the lease payments.
Hawthorne Public Financing Authority. The City and the Hawthorne Public Financing Authority (the “Authority”) are parties to a certain Joint Exercise of Powers Agreement, dated as of November 23, 1992 (the “Joint Powers Agreement”)], pursuant to which the Authority was established as a joint exercise of powers authority under the Joint Exercise of Powers Act (Government Code §6500 et seq.) (the “Joint Powers Law”) for the purpose of providing assistance to the City and the Authority with their financing programs, and for any other purposes authorized under Article 4 of the Joint Powers Law (the “Bond Law”).
Proposed 2024 Bonds. Staff recommends the following actions:
Public Hearing. Pursuant to Government Code Section 6585.5, the City must make a finding of significant benefit before the Authority’s issuance of the 2024 Bonds, after the noticed public hearing. Notice of the public hearing was published on August 15, 2024. In accordance with such requirement, Staff recommends that the Council hold the public hearing to make a finding of significant public benefit related to the issuance of the 2024 Bonds.
Resolution No. 8481. By adopting the Resolution No. 8481, the City Council will authorize the issuance of the 2024 Bonds, and approve the execution and delivery of the following documents. Each of the documents are presented in substantial final form, and will be completed after the 2024 Bonds are priced (i.e., when the principal amount of the 2024 Bonds, the interest rates and the original issue premium or discount will be determined). (i) Lease Agreement (the “Lease”),
(ii) Sublease Agreement,
(iii) Continuing Disclosure Agreement,
(iv) Preliminary Official Statement, and
(v) Bond Purchase Agreement.
Below are brief descriptions of these documents:
(i) Lease Agreement: (Attachment No. 2)
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Under the Lease Agreement, the City will lease the Leased Properties (described below) to the Authority in consideration for the application of the bond proceeds for the project.
(ii) Sublease Agreement: (Attachment No. 3)
Under the Sublease, the Authority will sublease the Leased Properties to the City and the City will pay the Lease Payments. The scheduled Lease Payments will correspond, in amounts and due dates, to the scheduled principal and interest payments of the 2024 Bonds. The City will also covenant to maintain certain insurance coverage with respect to the Leased Properties.
Under the provisions of the Lease and the Sublease, the properties currently proposed to be subject to Lease Payments are identified as the Memorial Center Complex; Fire Station #1; Fire Station #2; Fire Station #3, Eucalyptus Park, the existing Public Works Yard and the recently purchased lot with storage structure (collectively, the “Leased Properties”). The Resolution authorizes the City Manager to make the final determination of which City assets will ultimately be subject to the Lease and the Sublease. Upon completion of the various project components, the Sublease provides the City with the ability to release all of the Leased Properties with the exception of the Memorial Center Complex. (iii) Continuing Disclosure Agreement: (Attachment No. 4) Under the Continuing Disclosure Agreement, the City will agree to provide a copy of its audited financial statements and a report of other information relevant to the security of the 2024 Bonds for filing each year, to make this information available to the investors. The City will also agree to disclose and make filings upon the occurrence of certain enumerated events (such as material default by the City on its financial obligations).
(iv) Preliminary Official Statement:( Attachment No. 5) In connection with a public offering, the Preliminary Official Statement (the “POS”) will be distributed by the Underwriter (as described below) to potential investors. The POS provides a summary of the proposed terms of the 2024 Bonds, the sources of repayment and certain risks relating to the investment in the 2024 Bonds. As permitted by federal securities laws, some of the terms relating to the 2024 Bonds (such as interest rates and redemption schedule), will appear as blanks or be footnoted as “preliminary; subject to change” in the POS and will not be determined until the pricing of the 2024 Bonds. After the pricing of the 2024 Bonds, these terms will be inserted, and the POS will be converted into a final Official Statement. The Underwriter will then distribute the Official Statement to buyers of the 2024 Bonds and cause it to be uploaded onto the Electronic Municipal
62952355.v2
Market Access website (known as EMMA), the official repository for information pertaining municipal securities issued in the United States.
The Official Statement is the “offering document” for the 2024 Bonds, required to be made available to investors pursuant to federal securities laws. The Official Statement must include all information that would be material to a prospective investor’s decision whether to purchase the 2024 Bonds. While the various members of the financing team have contributed to the preparation of the POS and the Official Statement, the City and the Authority are ultimately responsible for ensuring that the POS is accurate, contains no misleading information and does not omit any information necessary to make the POS not misleading to investors. (v) Bond Purchase Agreement: (Attachment No. 6)
In connection with a public offering, this agreement will be executed on the day that the 2024 Bonds are priced (i.e., when the principal amount of the 2024 Bonds, the interest rates and the original issue premium or discount will be determined, a few weeks before the closing date). Under this agreement, Samuel A. Ramirez & Co. Incorporated (the “Underwriter”) will agree to buy the 2024 Bonds from the Authority on the issuance date of the 2024 Bonds upon satisfaction of the closing conditions specified in the Bond Purchase Agreement, including the execution and delivery of applicable documents by the Authority and the City.
Additional Financing Team Agreements. Resolution No. 8481 also approves the engagement of Nossaman LLP, as Bond Counsel and Disclosure Counsel, and CSG Advisors Incorporated as Municipal Advisor.
Additional Actions. Resolution No. 8481 also authorizes Authorized Officers of the City as needed to effectuate bond closing, including the provision of bond insurance and/or a reserve fund surety as needed.
Good Faith Estimates. Pursuant to Government Code Section 5852.1, the following information consists of estimates that have been provided in good faith by the Municipal Advisor, in consultation with the Underwriter, and based on market conditions as of August 16, 2024:
(A) True Interest Cost of the 2024 Bonds: 4.30%
(B) Finance Charge of the 2024 Bonds (Sum of all fees/charges paid to third parties, but excluding potential bond insurance or debt service reserve fund insurance premiums): $580,500 (C) Net Proceeds of the 2024 Bonds to be Received (net of finance charges, reserves and capitalized interest, if any): $30,000,000
(D) Total Payment on the 2024 Bonds Through Maturity: $55,003,000
62952355.v2
The foregoing estimates constitute good faith estimates only. The principal amount of the 2024 Bonds, the true interest cost of the 2024 Bonds, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the 2024 Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of 2024 Bonds sold being different from the estimated amount used for purposes of such estimates, (c) the actual amortization of the 2024 Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the 2024 Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the City’s financing plan, or a combination of such factors. The actual date of sale of the 2024 Bonds and the actual principal amount of 2024 Bonds sold will be determined by the City based on the timing of the need for proceeds of the 2024 Bonds and other factors. Market interest rates are affected by economic and other factors beyond the control of the City.
FISCAL IMPACT:
In accordance with the Good Faith Estimates above, the annual lease payments are estimated to average approximately $1,835,000 per year through November 1, 2054, and would be paid from available general fund revenues. Actual annual average lease payments will not be determined until the 2024 Bonds price as expected in September 2024.
The fees and expenses of the financing team, including Bond Counsel, Disclosure Counsel, Underwriter and Municipal Advisor, Rating Agency, and any bond insurance or reserve fund surety, if applicable, are paid from proceeds of the 2024 Bonds.
NOTICING PROCEDURES:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENT(S):
1. City Resolution No. 8481
2. Lease Agreement
3. Sublease Agreement
4. Continuing Disclosure Agreement
5. Preliminary Official Statement
6. Bond Purchase Agreement.
1 62951885.v2
RESOLUTION NO. 8481
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HAWTHORNE APPROVING THE ISSUANCE OF THE
HAWTHORNE PUBLIC FINANCING AUTHORITY LEASE
REVENUE BONDS, SERIES 2024, AND MAKING A FINDING
OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION
THEREWITH, AUTHORIZING THE CITY’S EXECUTION
AND DELIVERY OF RELATED DOCUMENTS AND TAKING
RELATED ACTIONS
WHEREAS, the Hawthorne Public Financing Authority (the “Authority”) is a joint powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, dated November 23, 1992, by and between the City of Hawthorne (the “City”) and the Community Redevelopment Agency of the City of Hawthorne, and under the provisions of Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act to issue bonds to provide financing for public capital improvements; and WHEREAS, the Authority proposes to issue and sell lease revenue bonds (the “Bonds”), to be secured pursuant to an Indenture (the “Indenture”), to be entered into by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”); and WHEREAS, proceeds of the Bonds will used to assist the City with financing a portion of the costs of construction and renovation of the city hall expansion and new civic center park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and certain other related capital improvements (the “Project”); and WHEREAS, in connection with the issuance of the Bonds, it is proposed that the Authority will enter into a Lease Agreement (the “Lease”), under which the Authority will lease certain real properties, including the land and the improvements thereon (collectively, the “Leased Properties”) from the City, and a Sublease (the “Sublease”), under which the City will sublease the Leased Properties from the Authority and make base rental payments, calculated to be sufficient to allow the Authority to pay principal and interest payments on the Bonds; and WHEREAS, for the benefit of the holders of the Bonds, the Authority will enter into the Assignment Agreement (defined below) under which the Authority will assign its right to receive the base rental payments and certain other rights of the Authority under the Lease and Sublease to the trustee for the Bonds; and
2 62951885.v2
WHEREAS, there has been presented to the Authority and the City a Bond Purchase Agreement (the “Bond Purchase Agreement”), to be entered into by and among the Authority, the City and Samuel A. Ramirez & Co. Incorporated, as underwriter (the “Underwriter”), pursuant to which the Underwriter will purchase the Bonds, upon their issuance, from the Authority; and WHEREAS, pursuant to Section 6586.5 of the California Government Code, after notice duly published in accordance with law, the City Council held a public hearing on this date with respect to the proposed issuance of the Bonds and the related financing and received evidence concerning the public benefits therefrom.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hawthorne hereby finds, determines, resolves and orders as follows:
SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution.
SECTION 2. The City Council hereby finds that the Authority's issuance of the Bonds to finance the Project will result in significant public benefit to the constituents of the City, including more efficient delivery of local agency services to residential and commercial development. The City Council hereby approves the issuance of the Bonds.
SECTION 3. The Lease Agreement proposed to be entered into by and between the City, as lessor, and the Authority, as lessee, in the form on file with the City Clerk, is hereby approved.
Each of the Mayor, the Mayor Pro Tem, the City Manager and the Finance Director (together, the “Authorized Officers”), acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Lease in substantially said form, with such changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 4. The Sublease proposed to be entered into by and between the Authority, as sublessor, and the City, as sublessee, in the form on file with the City Clerk, is hereby approved.
Each Authorized Officer, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Sublease in substantially said form, with such changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 5. The Bond Purchase Agreement, in the form on file with the City Clerk, is hereby approved. Subject to the satisfaction of the parameters set forth in the resolution of the Authority authorizing the issuance of the Bonds (the “Authority Resolution”), each Authorized Officer, acting individually, is hereby authorized, for and in the name and on behalf of the City, execute and deliver the Bond Purchase Agreement in substantially said form, with such changes 3 62951885.v2
therein as the Authorized Officer executing the same may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 6. The Preliminary Official Statement relating to the Bonds (the “Preliminary Official Statement”), in the form on file with the City Clerk, is hereby approved. Each Authorized Officer, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to cause the Preliminary Official Statement in substantially said form, with such additions or changes therein as such Authorized Officer may approve, to be deemed final for the purposes of Rule 15c2-12 promulgated pursuant to the Securities and Exchange Act of 1934. The distribution by the Underwriter of copies of the Preliminary Official Statement to potential purchasers of the Bonds is hereby approved.
SECTION 7. Each Authorized Officer, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to cause the Preliminary Official Statement to be brought into the form of a final Official Statement (the “Official Statement”), and to execute the same for and in the name and on behalf of the City, with such additions or changes therein as such Authorized Officer may approve (such approval to be conclusively evidenced by such Authorized Officer’s execution and delivery thereof). The distribution and use of the Official Statement by the Underwriter in connection with the sale of the Bonds are hereby approved.
SECTION 8. The Continuing Disclosure Agreement, in the form attached as Appendix D to the form of Preliminary Official Statement on file with the City Clerk, is hereby approved.
Each Authorized Officer, acting individually, is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Agreement in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 9. In accordance with Government Code Section 5852.1, there has been presented to this City Council in the Staff Report accompanying this Resolution certain good faith estimates provided to the City by its Municipal Advisor with respect to the Bonds. The City Council hereby finds that the requirements of Government Code Section 5852.1 have been satisfied.
SECTION 10. In connection with the issuance of the Bonds, the appointment of the following firms is hereby approved: (i) Nossaman LLP, as bond counsel and disclosure counsel, and (ii) CSG Advisors Incorporated, as municipal advisor.
SECTION 11. The Authorized Officers and all other officers of City, are hereby authorized, jointly and severally, to execute and deliver any and all necessary instruments and to do all things which they may deem necessary or in the best interests of the City to effectuate the purposes of this Resolution, the documents approved hereby, and to assist the Authority with respect to the issuance, sale and delivery of the Bonds (including, but not limited to, obtaining 4 62951885.v2
reserve fund surety bonds, bond insurance policies or other types of credit enhancement, as necessary or appropriate, determining which City properties will ultimately serve as the Leased Property for the Lease and the Sublease, and executing termination agreements with the title company to release certain leased assets from documents related to debt that is no longer outstanding) and any such actions previously taken by such officers are hereby ratified and confirmed.
SECTION 12. That the City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and this certification to be entered in the Book of Resolutions of the Council of the City.
PASSED, APPROVED AND ADOPTED this 27th day of August, 2024. ____________________________
ALEX VARGAS, Mayor
City of Hawthorne, California
ATTEST:
_________________________________
DAYNA WILLIAMS-HUNTER, City Clerk
City of Hawthorne, California
APPROVED AS TO FORM
_____________________________
ROBERT M. KIM, City Attorney
City of Hawthorne, California
62902453.v2
Recording requested by and when
recorded mail to:
City of Hawthorne
c/o Nossaman LLP
777 South Figueroa Street, 34th Floor
Los Angeles, California 90017
Attention: Lolly Enriquez, Esq.
This Document is recorded for the benefit of the City of Hawthorne and is exempt from California documentary transfer tax pursuant to Section 11928 of the California Revenue and Taxation Code and from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.
====================================================================
LEASE AGREEMENT
by and between
the
CITY OF HAWTHORNE,
as lessor
and the
HAWTHORNE PUBLIC FINANCING AUTHORITY,
as lessee
Dated as of [September] 1, 2024
====================================================================
TABLE OF CONTENTS
Page
-i62902453.v2
SECTION 1. DEFINITIONS .............................................................................................1 SECTION 2. LEASE OF LEASED PROPERTY ....................................................................2 SECTION 3. TERM ........................................................................................................2 SECTION 4. RENTAL .....................................................................................................2 SECTION 5. TITLE .........................................................................................................3 SECTION 6. DEFAULT ...................................................................................................3 SECTION 7. EMINENT DOMAIN ...................................................................................4 SECTION 8. RIGHT OF ENTRY.......................................................................................4 SECTION 9. SURRENDER OF PROPERTIES UPON TERMINATION .................................4 SECTION 10. QUIET ENJOYMENT BY THE AUTHORITY...................................................4 SECTION 11. ASSIGNMENTS AND SUBLEASES ...............................................................4 SECTION 12. WAIVER OF PERSONAL LIABILITY..............................................................5 SECTION 13. TAXES........................................................................................................5 SECTION 14. GOVERNING LAW .....................................................................................5 SECTION 15. NOTICES....................................................................................................5 SECTION 16. VALIDITY AND SEVERABILITY ....................................................................5 SECTION 17. PURPOSE OF LEASE...................................................................................5 SECTION 18. WAIVER OF DEFAULT................................................................................5 SECTION 19. SECTION HEADINGS..................................................................................6 SECTION 20. AMENDMENTS .........................................................................................6 SECTION 21. EXECUTION ...............................................................................................6
EXHIBIT A DESCRIPTION OF LEASED PROPERTY
62902453.v2
LEASE AGREEMENT
This Lease Agreement, dated as of [September] 1, 2024 (this “Lease”), is made by and between the CITY OF HAWTHORNE, a municipal corporation duly organized and existing under the laws of the State of California (the “City”), as lessor, and the HAWTHORNE PUBLIC FINANCING AUTHORITY, a joint powers authority duly formed and existing under the laws of the State of California (the “Authority”), as lessee.
RECITALS:
A. The Authority is a joint powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, dated November 23, 1992, by and between the City of Hawthorne (the “City”) and the Community Redevelopment Agency of the City of Hawthorne, and under the provisions of Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act to issue bonds to provide financing for public capital improvements.
B. The Authority is issuing its Lease Revenue Bonds, Series 2024 (the “Bonds”), pursuant to the Indenture, dated as of [September] 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank National Association, as trustee.
C. Proceeds from the sale of the Bonds will be used to (i) pay a portion of the costs of construction, renovation, and installation of the City’s city hall expansion and new civic center Park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and other capital improvements; and (ii) pay cost of issuance.
D. In connection with the issuance of the Bonds, the City and the Authority desire to enter into this Lease, whereby the Authority will lease certain real property from the City (the “Leased Property”).
E. Pursuant to the Sublease, dated as of even date herewith, by and between the City and the Authority, the Authority will sublease the Leased Property to the City.
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND OF THE MUTUAL
AGREEMENTS AND COVENANTS CONTAINED HEREIN AND FOR OTHER VALUABLE CONSIDERATION, THE PARTIES HERETO DO HEREBY AGREE AS FOLLOWS:
SECTION 1. DEFINITIONS.
Terms used and not otherwise defined herein but which are defined in the Indenture shall have the meanings ascribed to them in the Indenture. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Lease, have the meanings specified in this Section (the following definitions to be equally applicable to both the singular and plural forms of such defined terms):
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62902453.v2
“Bonds” means the Authority’s Lease Revenue Bonds, Series 2024. “Commencement Date” means the Closing Date with respect to the Bonds. “Expiration Date” means November 1, 2054; provided, however, if the City is in default with respect to any Base Rental payment on November 1, 2054, then the Expiration Date shall be automatically extended to November 1, 2064.
“Indenture” means the Indenture, dated as [September] 1, 2024, by and between the Authority and the Trustee, relating to the Bonds, as the same may be amended, supplemented or otherwise modified from time to time, pursuant to the terms thereof. “Lease” means this Lease, and as the same may be amended, supplemented or otherwise modified from time to time pursuant to the terms hereof. “Leased Property” means the real property in the City described in Exhibit A of this Lease, and incorporated herein by reference, including improvements thereon, including the following: (1) ______.
“Sublease” means the Sublease, dated as of [September] 1, 2024, with respect to the Leased Property, by and between the Authority, as lessor, and the City, as lessee, and as the same may be amended, supplemented or otherwise modified from time to time pursuant to the terms thereof.
“Trustee” means U.S. Bank National Association, its successors and assigns, acting as the Trustee under the Indenture.
SECTION 2. LEASE OF LEASED PROPERTY.
The City hereby leases the Leased Property to the Authority and the Authority hereby leases the Leased Property from the City, on the terms and conditions hereinafter set forth.
SECTION 3. TERM.
The term of this Lease shall commence on the Commencement Date and shall end on the last day of the term of the Sublease; which is the earliest of: (i) the Expiration Date; (ii) the date on which the Base Rental payments are paid (or prepaid) in full under the provisions of the Sublease; or (iii) the date of discharge of the Indenture.
SECTION 4. RENTAL.
The Authority agrees to pay to the Trustee on the Closing Date the proceeds of the Bonds as advance rental for the use and right to possession of the Leased Property for the term of this Lease. The rental shall be applied by the Trustee as provided in the Indenture. -3-
62902453.v2
SECTION 5. TITLE.
In accordance with the Sublease, the City shall obtain one or more CLTA (or at the City’s sole discretion, ALTA) policies of title insurance at the time of and dated as of the Commencement Date in an amount not less than the aggregate principal amount of the Outstanding Bonds, payable to the Trustee, insuring the respective interests of the City and the Authority in the Leased Property, and insuring the validity of this Lease and the Sublease, issued by a title insurance company qualified to do business in the State of California and acceptable to the Authority. To the extent permitted under the Indenture, the costs of obtaining such title insurance policy or policies may be paid out of the sale proceeds of the Bonds.
SECTION 6. DEFAULT.
If -
(a) the Authority shall fail to keep, observe or perform any term, covenant or condition contained herein to be kept or performed by the Authority, or (b) the Authority’s interest in this Lease or any part thereof is assigned or transferred without the written consent of the City, either voluntarily or by operation of law or otherwise, except as provided in Section 11 hereof, or
(c) any proceeding under the United States Bankruptcy Code or any federal or state bankruptcy, insolvency or similar law or any law providing for the appointment of a receiver, liquidator, trustee or similar official of the Authority or of all or substantially all of its assets is instituted by or with the consent of the Authority, or is instituted without its consent and is not permanently stayed or dismissed within 30 days, or
(d) the Authority offers to the Authority’s creditors to effect a composition or extension of time to pay the Authority’s debts, or asks, seeks or prays for a reorganization or to effect a plan of reorganization or for readjustment of the Authority’s debts, or (e) the Authority shall make, in connection with any proceedings related to bankruptcy, insolvency, liquidation, winding up or similar events a general assignment or any assignment for the benefit of the Authority’s creditors, then the Authority shall be deemed to be in default hereunder and it shall be lawful for the City to exercise any and all rights and remedies available pursuant to law; provided, however, that:
(i) no merger of this Lease and the Sublease shall be deemed to occur as a result thereof and (ii) so long as any Bonds remain outstanding, the City shall have no power to terminate this Lease by reason of any default on the part of the Authority.
Neither the City nor the Authority shall in any event be in default in the performance of any of its obligations hereunder or imposed by law unless and until the City or the Authority (as the case may be) shall have failed to perform such obligation within 30 days -4-
62902453.v2
after notice by the Authority or the City (as the case may be) to the nonperforming party properly specifying wherein such party has failed to perform any such obligation.
SECTION 7. EMINENT DOMAIN.
If the whole or any part of the Leased Property shall be taken under the power of eminent domain, the interest of the Authority shall be recognized and any condemnation award shall be applied as provided in Section 9 of the Sublease.
SECTION 8. RIGHT OF ENTRY.
The City and its assignees shall have the right to enter any of the Leased Property during reasonable business hours (and in emergencies at all times) (a) to inspect the same, (b) for any purpose connected with the City’s or the Authority’s rights or obligations under this Lease and (c) for all other lawful purposes.
SECTION 9. SURRENDER OF PROPERTIES UPON TERMINATION.
The Authority agrees upon the termination of this Lease to quit and surrender the Leased Property in the same good order and condition as the same were in at the time of commencement of the term hereunder, reasonable wear and tear excepted, and the Authority and the City agree that any permanent improvements and structures existing upon the Leased Property at the time of the termination of this Lease shall remain thereon and title thereto shall be vested in the City.
SECTION 10. QUIET ENJOYMENT BY THE AUTHORITY.
The Authority shall at all times during the term of this Lease peaceably and quietly have, hold and enjoy the real property leased hereunder without suit, trouble or hindrance from the City, subject to the rights granted to the City under the Sublease, and subject to the Authority’s compliance with the terms and provisions hereof.
SECTION 11. ASSIGNMENTS AND SUBLEASES.
The parties understand that this Lease and the rights of the Authority hereunder (except the Authority’s rights to give approvals and consents hereunder and to indemnification and payment or reimbursement for any costs or expenses of the Authority hereunder) will be assigned to the Trustee pursuant to the Assignment Agreement for the benefit of the Owners of the Bonds. Except as provided in the foregoing sentence, the Authority shall not assign, mortgage, hypothecate or otherwise encumber this Lease or any rights hereunder or the leasehold created hereby by trust agreement, indenture or deed of trust or otherwise or sublet the Leased Properties without the written consent of the City except as provided by the Sublease and as security for the Bonds.
-5-
62902453.v2
SECTION 12. WAIVER OF PERSONAL LIABILITY.
All liabilities hereunder on the part of the Authority shall be solely liabilities of the Authority as a separate legal entity, and no member, officer or employee of the Authority shall at any time or under any circumstances be individually or personally liable hereunder for anything done or omitted to be done by the Authority under this Lease.
SECTION 13. TAXES.
The City shall be responsible for the payment of any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Leased Property.
SECTION 14. GOVERNING LAW.
This Lease shall be governed exclusively by the provisions hereof and by the laws of the State of California.
SECTION 15. NOTICES.
Any notice, request, demand, or other communication under this Lease shall be governed by Section 9.14 of the Indenture, which is hereby incorporated.
SECTION 16. VALIDITY AND SEVERABILITY.
If for any reason this Lease shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by the City or by the Authority, or if for any reason it is held by such a court that any of the covenants and conditions of the Authority hereunder is unenforceable for the full term hereof, then and in such event this Lease is and shall be deemed to be a lease from year to year and all of the rental and other terms, provisions and conditions of this Lease, except to the extent that such terms, provisions and conditions are contrary to or inconsistent with such holding, shall remain in full force and effect.
SECTION 17. PURPOSE OF LEASE.
The Authority covenants that during the term of this Lease, except to the extent that other uses may be permitted under the Sublease, it will use, or cause the use of, the Leased Property to be consistent with the descriptions set forth in the Sublease or related public purposes.
SECTION 18. WAIVER OF DEFAULT.
Failure of the City to take advantage of any default on the part of the Authority shall not be, or be construed as, a waiver thereof, nor shall any custom or practice which may grow up between the parties in the course of administering this Lease be construed to waive or to lessen the right of the City to insist upon performance by the Authority of any term, covenant or -6-
62902453.v2
condition hereof, or to exercise any rights given the City on account of such default. A waiver of a particular default shall not be deemed to be a waiver of the same or any subsequent default.
The acceptance of rent hereunder shall not be, nor be construed to be, a waiver of any term, covenant or condition of this Lease.
SECTION 19. SECTION HEADINGS.
All section headings contained are for convenience of reference only and are not intended to define or limit the scope of any provision of this Lease.
SECTION 20. AMENDMENTS.
This Lease may not be amended unless such amendment is agreed upon in writing by the parties hereof; provided that, no such amendment shall materially affect the interests and rights of the Owners of the Bonds under the Indenture or the Sublease unless: (i) there shall have been delivered to the Trustee an opinion of Bond Counsel that such amendment will not adversely affect the tax-exempt status of any Bonds, or (ii) the Trustee shall have obtained written consent of the Owners of at least a majority in aggregate principal amount of the affected Bonds then Outstanding to such amendment. A substitution or release of any portion of the Leased Properties under this Lease and the Sublease, or an amendment to delete of a portion of the Leased Properties in connection with a partial prepayment of Base Rental under the Sublease from insurance or condemnation proceeds, shall not be considered as materially affecting the interests and rights of the Owners of the Bonds if such substitution, release or deletion complies with the provisions of the Sublease. The Authority shall provide copies of all amendments to the Trustee promptly after execution of any such amendment.
SECTION 21. EXECUTION.
This Lease may be executed in any number of counterparts, each of which shall be deemed to an original, but all together shall constitute but one and the same instrument. -7-
62902453.v2
IN WITNESS WHEREOF, the City and the Authority have caused this Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written.
CITY OF HAWTHORNE
By:
Vontray Norris, City Manager
Attest:
Dayna Williams-Hunter, City Clerk
HAWTHORNE PUBLIC FINANCING AUTHORITY
By:
Vontray Norris, Executive Director
Attest:
Dayna Williams-Hunter, Secretary
EXHIBIT A
DESCRIPTION OF LEASED PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF HAWTHORNE, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS, TOGETHER WITH IMPROVEMENTS THEREON:
PARCEL 1 - (APN: ____)
State of California )
County of Los Angeles)
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California )
County of Los Angeles)
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 62902455.v3
Recording requested by and when
recorded mail to:
City of Hawthorne
c/o Nossaman LLP
777 South Figueroa Street, 34th Floor
Los Angeles, California 90017
Attention: Lolly Enriquez, Esq.
This Document is recorded for the benefit of the City of Hawthorne and is exempt from California documentary transfer tax pursuant to Section 11928 of the California Revenue and Taxation Code and from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.
====================================================================
SUBLEASE
by and between
the
HAWTHORNE PUBLIC FINANCING AUTHORITY,
as lessor,
and the
CITY OF HAWTHORNE,
as lessee
Dated as of [September] 1, 2024
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TABLE OF CONTENTS
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SECTION 1. DEFINITIONS..........................................................................................................1 SECTION 2. TERM ...................................................................................................................3 SECTION 3. RENTAL ..................................................................................................................3 SECTION 4. USE OF PROCEEDS.................................................................................................5 SECTION 5. MAINTENANCE, UTILITIES, TAXES AND ASSESSMENTS.........................................5 SECTION 6. CHANGES TO THE LEASED PROPERTY ...................................................................5 SECTION 7. TITLE INSURANCE ..................................................................................................6 SECTION 8. OTHER INSURANCE................................................................................................6 SECTION 9. DAMAGE, DESTRUCTION AND CONDEMNATION .................................................8 SECTION 10. DEFAULT ................................................................................................................9 SECTION 11. PREPAYMENT AND CREDITS................................................................................10 SECTION 12. RIGHT OF ENTRY..................................................................................................11 SECTION 13. MECHANICS’ LIENS..............................................................................................11 SECTION 14. QUIET ENJOYMENT .............................................................................................12 SECTION 15. INDEMNIFICATION ..............................................................................................12 SECTION 16. ASSIGNMENT TO TRUSTEE ..................................................................................12 SECTION 17. ABATEMENT OF RENTAL .....................................................................................13 SECTION 18. ADDITIONAL COVENANTS REGARDING TAX-EXEMPT BONDS ............................13 SECTION 19. SUBSTITUTION OR RELEASE OF PROPERTY.........................................................14 SECTION 20. WAIVER................................................................................................................15 SECTION 21. NET LEASE............................................................................................................15 SECTION 22. AMENDMENTS ....................................................................................................15 SECTION 23. GOVERNING LAW................................................................................................15 TABLE OF CONTENTS (cont.)
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SECTION 24. NOTICES...............................................................................................................15 SECTION 25. VALIDITY AND SEVERABILITY...............................................................................15 SECTION 26. SECTION HEADINGS.............................................................................................16 SECTION 27. EXECUTION..........................................................................................................16
EXHIBIT A DESCRIPTION OF LEASED PROPERTY
EXHIBIT B BASE RENTAL PAYMENT SCHEDULE
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SUBLEASE
This Sublease, dated as of [September] 1, 2024 (this “Sublease”), is made by and between the HAWTHORNE PUBLIC FINANCING AUTHORITY, a joint powers authority duly formed and existing pursuant to the laws of the State of California (the “Authority”), as lessor, and the CITY OF HAWTHORNE, a municipal corporation duly organized and existing under the laws of the State of California (the “City”), as lessee.
RECITALS:
A. The Authority is a joint powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, dated November 23, 1992, by and between the City of Hawthorne (the “City”) and the Community Redevelopment Agency of the City of Hawthorne, and under the provisions of Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act to issue bonds to provide financing for public capital improvements.
B. The Authority is issuing its Lease Revenue Bonds, Series 2024 (the “Bonds”), pursuant to the Indenture, dated as of [September] 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank National Association, as trustee.
C. Proceeds from the sale of the Bonds will be used to (i) pay a portion of the costs of construction, renovation, and installation of the City’s city hall expansion and new civic center Park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and other capital improvements; and (ii) pay cost of issuance.
D. In connection with the issuance of the Bonds, the City and the Authority are entering into the Lease Agreement, dated as of [September] 1, 2024 (the “Lease”), whereby the Authority will lease certain properties from the City (the “Leased Property”).
E. Pursuant to this Sublease, the Authority will sublease the Leased Property to the City.
NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the parties hereto agree as follows:
SECTION 1. DEFINITIONS.
Terms used and not otherwise defined herein but which are defined in the Indenture shall have the meanings ascribed to them in the Indenture. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Sublease, have the meanings specified in this Section (the following definitions to be equally applicable to both the singular and plural forms of any of such defined terms):
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“Additional Rental” has the meaning assigned to that term in Section 3(b) hereof. “Assignment Agreement” means the Assignment Agreement, dated as of [September] 1, 2024, by and between the Authority and the Trustee, as the same may be amended, supplemented or otherwise modified from time to time.
“Base Rental” has the meaning assigned to that term in Section 3(a) hereof. “Bonds” means the Authority’s Lease Revenue Bonds, Series 2024. “Commencement Date” means the Closing Date with respect to the Bonds. “Expiration Date” means November 1, 2054; provided, however, if on such date, the City is in default with respect to any Base Rental payment or an abatement event has occurred such that all Base Rental payments have not been made, then the Expiration Date shall be automatically extended to November 1, 2064.
“Indenture” means the Indenture, dated as [September] 1, 2024, by and between the Authority and the Trustee relating to the Bonds, as the same may be amended and supplemented from time to time in accordance with the terms thereof. “Leased Property” means the real property in the City described in Exhibit A of this Sublease, and incorporated herein by reference, including improvements thereon, including the following: (1) [__________]
“Net Proceeds” means any insurance or condemnation proceeds, paid with respect to the Leased Property remaining after payment therefrom of all expenses in the collection thereof. “Payment Date” means, with respect to a Base Rental payment, the date listed as its related “Payment Date” in Exhibit B of this Sublease.
“Permitted Encumbrances” means (a) liens for general ad valorem taxes, special taxes and assessments, if any, not then delinquent, or which the City may, pursuant to this Sublease, permit to remain unpaid; (b) liens created pursuant to or permitted under the Lease or this Sublease; (c) easements, right of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions which exist of record as of the Commencement Date; (d) utility, access and other easements and rights of way, restrictions and exceptions that do not interfere with or impair the use intended to be made of the relevant Leased Property; (e) the City’s right to access and exclusive right to use and maintain facilities essential to the City’s utilities systems; (f) any right or claim of any mechanic, laborer, materialman, supplier or vendor filed or perfected in the manner prescribed by law after the Commencement Date; (g) such minor defects, irregularities, encumbrances and clouds on title as normally exist with respect to property similar in character to the relevant Leased Property and as do not materially impair the use intended to be made of property affected thereby; and (h) easements, right of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions -3-
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established following the Commencement Date which do not materially impair the City’s use of the Leased Property and to which the Authority and the City consent in writing. “Projects” means the construction, renovation, and installation of the City’s City Hall expansion and Civic Center Park, Senior Center and Public Works Yard. “Rental Payments” means, together, Base Rental and Additional Rental. “Sublease” means this Sublease, as the same may be amended and supplemented from time to time in accordance with the terms hereof.
SECTION 2. TERM.
(a) The Authority hereby subleases to the City and the City hereby leases from the Authority, the Leased Property on the terms and conditions set forth in this Sublease. (b) The term of this Sublease shall commence on the Commencement Date, and shall end on the earliest of: (i) the Expiration Date; (ii) the date on which the Base Rental payments are paid (or prepaid) in full under the provisions the Sublease; or (iii) the date of discharge of the Indenture.
(c) Throughout the term of this Sublease, fee title to the Leased Property shall remain in the City. While any Bonds remain Outstanding under the Indenture, there shall be no merger of the subleasehold estate in the Leased Property created by this Sublease, the leasehold estate in the Leased Property created by the Lease, and the fee estate in the Leased Property merely because such estates, or any of them, have been acquired or become vested in the same person or entity.
SECTION 3. RENTAL.
Subject to the provisions of Sections 8(c) and 17 hereof, the City agrees to pay to the Authority, its successors or assigns, as rental for the use and possession of the Leased Property, the following amounts at the following times:
(a) The City shall pay as “Base Rental” to the Authority or to the Trustee, as hereinafter provided, semiannually, the rental payments in accordance with the Base Rental payment Schedule attached hereto as Exhibit B, less any amount credited against Base Rental pursuant to Section 4.02(d) of the Indenture. Each Base Rental payment shall be payable in arrears five days before its Payment Date, and shall be made in consideration for the City’s use and possession of the Leased Property for the six month period preceding the Payment Date of such payment.
(b) The City shall also pay, as “Additional Rental” hereunder, in addition to the Base Rental, to the Authority or to the Trustee, as hereinafter provided, such amounts in each year as shall be required for the payment of all costs and expenses (not otherwise paid for or provided for out of the proceeds of sale of the Bonds) incurred by the Authority or the Trustee in -4-
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connection with the execution, performance or enforcement of this Sublease or the assignment hereof, the Indenture, or the Authority’s or the Trustee’s respective interests in the Leased Property, including, but not limited to, all fees, costs and expenses, all administrative costs of the Authority relating to the Leased Property (including, without limiting the generality of the foregoing, salaries and wages of employees, overhead, insurance premiums, taxes and assessments (if any), expenses, compensation and indemnification of the Trustee payable by the Authority under the Indenture), fees of auditors, accountants, attorneys or engineers, and all other reasonable and necessary administrative costs of the Authority or charges required to be paid by it to comply with the terms of the Bonds or of the Indenture. The Authority or the Trustee shall bill such Additional Rental to the City from time to time. The City shall pay amounts so billed within 30 days after receipt of the bill by the City.
(c) Such payments of Base Rental and Additional Rental for each rental payment period shall constitute the total rental for said rental payment period, and shall be paid by the City in each rental payment period for and in consideration of the right of the use and possession of, and the continued quiet use and enjoyment of, the Leased Property during each such period for which said rental is to be paid. The parties hereto have agreed and determined that such total rental does not exceed the fair rental value of the Leased Property for each such period. In making such determination, consideration has been given to other obligations of the parties under this Sublease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public. The determination of fair rental value of the Leased Property pursuant to this paragraph shall not be deemed to be controlling in connection with a determination of fair value of the Leased Property by the parties hereto for any other purpose.
(d) Each installment of Base Rental payable hereunder shall be paid in lawful money of the United States of America to the order of the Trustee at the corporate trust office of the Trustee in Los Angeles, California, or such other place as the Trustee may designate. (e) Notwithstanding any dispute between the City and the Authority, the City shall make all Rental Payments when due, without deduction or offset of any kind, and shall not withhold any Rental Payments pending the final resolution of any such dispute. In the event of a determination that the City was not liable for said Rental Payments or any portion thereof, said payments or excess of payments, as the case may be, at the option of the City, shall be credited against subsequent Rental Payments due hereunder or be refunded at the time of such determination.
(f) The City covenants to take such action as may be necessary to include all such Rental Payments due hereunder in its annual budget and to make the necessary annual appropriations for all such Rental Payments. If the City’s adopted annual budget for any fiscal year fails to include sufficient appropriation for the scheduled Rental Payments for such fiscal year, the City shall give written notice to the Authority and the Trustee of such failure as soon as practical, but in any event within ten Business Days of the adoption of such annual budget. The covenants on the part of the City contained in this Sublease shall be deemed to be and shall be -5-
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construed to be duties imposed by law and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Sublease agreed to be carried out and performed by the City; provided, the obligation of the City to make Base Rental or Additional Rental payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. Neither the Bonds nor the obligation of the City to make Base Rental or Additional Rental payments constitutes an indebtedness of the City, the State or any of its political subdivisions in contravention of any constitutional or statutory debt limitation or restriction.
SECTION 4. USE OF PROCEEDS.
The Authority and the City agree that the proceeds of the Bonds will be used to:
(i) finance the Projects, and (ii) pay the costs of issuing the Bonds and incidental and related expenses, as more fully set forth in the Indenture.
SECTION 5. MAINTENANCE, UTILITIES, TAXES AND ASSESSMENTS. (a) During such time as the City or any assignee or sublessee thereof is in possession of the Leased Property, all maintenance and repair, ordinary or extraordinary, of the Leased Property shall be the responsibility of the City, and the City shall pay for or otherwise arrange for the payment of: (i) all utility services supplied to the Leased Property, (ii) the cost of operation of the Leased Property, and (iii) the costs of maintenance of and repair to the Leased Property resulting from ordinary wear and tear or want of care on the part of the City. The City shall, at the City’s sole cost and expense, keep and maintain the Leased Property clean and in a safe and good condition and repair. The Authority shall have no obligation to alter, remodel, improve, repair, decorate, or paint the Leased Property or any part thereof, and the parties hereto affirm that the Authority has made no representations or warranties to the City respecting the condition of the Leased Property.
(b) The City shall comply with all statutes, ordinances, regulations, and other requirements of all governmental entities that pertain to the occupancy or use of the Leased Property. The Authority has no responsibility or obligation whatsoever to construct any improvements, modifications or alterations to the Leased Property. (c) The parties hereto contemplate that the City will use the Leased Property for public purposes and, therefore, that the Leased Property will be exempt from all taxes presently assessed and levied with respect to real and personal property, respectively. In the event that the use, possession or acquisition by the Authority or the City of any of the Leased Property is found to be subject to taxation in any form, the City will pay during the term hereof, as the same respectively become due, all taxes and governmental charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to such Leased Property and any other property acquired by the City in substitution for, as a renewal or replacement of, or a modification, improvement or addition to such Leased Property; provided, -6-
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that with respect to any governmental charges or taxes that may lawfully be paid in installments over a period of years, the City shall be obligated to pay only such installments as are accrued during such time as this Sublease is in effect.
SECTION 6. CHANGES TO THE LEASED PROPERTY.
(a) The City shall have the right during the term of this Sublease to acquire and construct improvements or to attach fixtures, structures or signs to any of the Leased Property if the improvements, fixtures, structures or signs are necessary or beneficial for the use of such Leased Property by the City; provided, however, that no such acquisition or construction shall result in a material reduction in the aggregate value of the Leased Property or reduce the aggregate fair rental value thereof or result in an abatement of the Rental Payments. (b) Upon termination of this Sublease, the City may remove any fixture, structure or sign added by the City, but such removal shall be accomplished so as to leave the Leased Property, except for ordinary wear and tear and damage by casualty, in substantially the same condition as they were in before the fixture, structure or sign was attached.
SECTION 7. TITLE INSURANCE.
The City shall obtain one or more California Land Title Association insurance policies (or, at the City’s sole discretion, American Land Title Association insurance policies) at the time of and dated as of the Commencement Date in an aggregate amount not less than the aggregate principal amount of the Bonds, payable to the Trustee, insuring the respective interests of the City and the Authority in the Leased Property, and insuring the validity of this Sublease, subject only to Permitted Encumbrances, naming the Trustee as an insured thereunder, issued by a title insurance company qualified to do business in the State of California and acceptable to the Trustee. To the extent permitted under the Indenture, the costs of obtaining such title insurance policy or policies may be paid out of the sale proceeds of the Bonds.
SECTION 8. OTHER INSURANCE.
(a) Fire and Extended Coverage Insurance. The City shall maintain or cause to be maintained fire, lightning and extended coverage insurance on the Leased Property in an amount equal to (i) 100 percent of the then current replacement cost of the Leased Property, excluding the then fair market value of the land as unimproved or (ii) the principal amount of all outstanding Bonds, whichever is less (except that such insurance may be subject to a deductible clause not to exceed 10 percent of the amount of such policy). Earthquake insurance shall be maintained on the Leased Property only if available on the open market from reputable insurance companies at a reasonable cost. The extended coverage endorsement shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke, vandalism, malicious mischief, dumping or other deposit of any pollutant or other debris and such other hazards as are normally covered by such endorsement. Each such policy of insurance shall be in form reasonably satisfactory to the Authority, and shall contain a clause naming the Trustee as an additional insured and making all losses payable to the Trustee, and all proceeds -7-
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thereof shall be paid over to the party contractually responsible for making repairs of casualty damage.
In the event of any damage to or destruction of the Leased Property caused by the perils covered by such insurance, the proceeds of such insurance shall be utilized to repair, reconstruct or replace the Leased Property to the end that the property shall be restored to at least the same condition that such Leased Property was in prior to such damage or destruction.
Any balance of such proceeds not required for such repair, reconstruction or replacement shall be transferred to the Authority and treated as Revenues and applied in the manner provided in the Indenture.
(b) Liability Insurance. The City shall maintain or cause to be maintained public liability insurance with limits of not less than $3,000,000 for one person and $5,000,000 for more than one person involved in one accident to protect the Authority and the Trustee from all direct or contingent loss or liability for damages for bodily injury or death occasioned by reason of the construction, condition or operation of the Leased Property. The City will also maintain or cause to be maintained insurance against liability for property damage resulting from any casualty attributable to the operation of the property in an amount not less than $1,000,000 for each accident. The public liability insurance and property damage insurance may be subject to a deductible clause for anyone accident of not to exceed $250,000. The insurance coverage required by this subsection may be effected by blanket policies covering the Leased Property issued to the party contractually responsible for the maintenance and operation of the project and such insurance policy or policies shall name the Trustee as an additional insured. (c) Rental Interruption Insurance. The City will maintain or cause to be maintained rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of the Leased Property as a result of any of the hazards covered by the insurance required by subsection (a) of this section in an amount not less than the greatest of the aggregate Base Rental payable by the City under this Sublease for a period of any future 24 months. Any such insurance policy shall be in form satisfactory to the Authority and shall contain a clause naming the Trustee as an additional insured and making any loss thereunder payable to the Trustee as its interests may appear. Any proceeds of such insurance shall be used by the Trustee to pay Annual Debt Service on the Outstanding Bonds for the period during which the payment of rental under the Sublease is abated, and any proceeds of such insurance not so used shall be applied as provided in the Indenture to the extent required to pay administrative costs of the Authority in connection with the Leased Property.
(d) Self-Insurance; Alternative Plan of Protection. As an alternative to providing the insurance required by paragraph (b) above, the City may provide or cause to be provided a self-insurance method or plan of protection if and to the extent such self-insurance method or plan of protection shall afford reasonable protection to the City and the Authority, and their directors, officers, agents and employees and the Trustee, its directors, officers, agents and employees in light of all circumstances, giving consideration to cost, availability and similar plans or methods of protection adopted by public entities in the State of California other than -8-
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the City; provided that the obligation of the Authority or City to make payments under such selfinsurance shall be limited to money in a designated fund balance established by the Authority or City and that the Authority or City shall not be obligated to replenish such designated fund balance from the General Fund or be otherwise obligated to make payments except from such designated fund balance. After the Commencement Date, before any substitute method or plan may be provided by the City, there shall be filed with the Trustee a certificate of an actuary, independent insurance consultant or other qualified person, stating that, in the opinion of the signer, the substitute method or plan of protection is in accordance with the requirements of this Section and, when effective, would afford adequate protection to the City and the Authority, and their directors, officers, agents and employees and the Trustee and its directors, officers, agents and employees against loss and damage from the hazards and risks covered thereby; provided, however, that in the event the City provides a self-insurance method or plan of protection for the insurance required by paragraph (c) above, the designated fund balance established by the City shall be funded in an amount at least equal to the greatest of the aggregate Base Rental payable by the City under this Sublease for a period of any future 24 months.
Moreover, as an alternative to providing the insurance required by paragraph (b) above, the City may provide a self-insurance method or plan of protection through the California Insurance Pool Authority (or another insurance risk sharing pool joint powers authority formed in the State) or any successor entity as the City may reasonably determine. (e) Evidence of Insurance. The City shall deliver to the Trustee each year a Certificate of the City stating that all requirements of this Sublease related to insurance have been complied with. Each such insurance policy shall require that the Trustee be given 30 days’ notice of any intended cancellation thereof or reduction of the coverage provided thereby. The Trustee shall have no responsibility as to the sufficiency of coverage or amounts of such policies.
If so requested in writing by the Trustee, the City shall also deliver to the Trustee duplicate originals or certified copies of each insurance policy described in such schedule. (f) Advances. If the City shall fail to perform any of its obligations under this Section, then the Authority may, but shall not be obligated to, take such action as may be necessary to cure such failure, including the advancement of money on behalf of the City, and the City shall be obligated to repay all such advances as soon as possible, as Additional Rental under Section 3(b).
(g) Waivers of Subrogation. Each of the parties hereby waives any and all rights to recovery against the other or against any other tenant or occupant of the Leased Property, or against the officers, employees, agents, representatives, customers, and business visitors of such other party or of such other tenant or occupant of the Leased Property, for loss or damage to such waiving party or its property or the property of others under its control, arising from any cause insured against under the standard form of property damage insurance policy with all permissible extensions and endorsements covering extended perils or under any other policy of insurance carried by such waiving party in lieu thereof, to the extent such policies then in force permit such waiver.
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SECTION 9. DAMAGE, DESTRUCTION AND CONDEMNATION; APPLICATION OF NET PROCEEDS.
If: (i) the whole, or any portion, of the Leased Property is destroyed (in whole or in part) or is damaged by fire of other casualty or taken by eminent domain proceedings (or sold to a government threatening to exercise the power of eminent domain), or (ii) the leasehold title in all or a portion of the Leased Property is materially impaired by reason of a defect in title, then (a) the City, but only to the extent permitted by law, shall substitute other property for the portion of the Leased Property that has been destroyed, or taken, or affected by the defective title in accordance with Section 19 hereof; or (b) the City shall require the Net Proceeds of any insurance payment (other than the Net Proceeds of rental interruption insurance which shall be applied pursuant to Section 8(c)) or any condemnation award to be held by the Trustee in a special trust fund to be applied and disbursed by the Trustee as follows:
(i) If less than all of the Leased Property shall have been so destroyed or taken or affected by defective title and the remainder is usable, then this Sublease shall continue in full force and effect as to such remainder and (A) if the portion taken or destroyed is replaced by one or more properties of equal or greater fair market value (as demonstrated by an MAI fair market appraisal), the Trustee upon written direction of the City shall disburse such proceeds to the party that incurred the expense of making such replacement and there shall not be any abatement of the Base Rental under this Sublease; or (B) failing the making of such replacement, there shall be a partial abatement of the Base Rental under this Sublease (in accordance with Section 17) and the Trustee shall apply such Net Proceeds, together with any other money then available to it for such purpose, to the Redemption Fund under the Indenture for the redemption of outstanding Bonds in accordance with Sections 4.03 and 2.03(a) of the Indenture.
(ii) If less than all of the Leased Property shall have been so destroyed or taken or affected by defective title and the remainder is not usable, or if all of the Leased Property shall have been so destroyed or taken or affected by the defective title, then the term of this Sublease shall cease as of the day that possession shall be so taken; and the Trustee shall apply such Net Proceeds, together with any other money then available to it for such purpose, to the Redemption Fund under the Indenture for the redemption of outstanding Bonds in accordance with Sections 4.03 and 2.03(a) of the Indenture.
SECTION 10. DEFAULT.
(a) If default shall be made by the City in the observance or performance of any agreement, condition, covenant or term contained herein required to be observed or performed by it (including, without limitation, the payment of any Base Rental or Additional Rental due hereunder), subject to the provisions of subsection (c) below, the Authority may at any time thereafter (with or without notice and demand and without limiting any other rights or -10-
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remedies the Authority may have) recover rent and other monetary charges as they become due hereunder without terminating the City’s right to possession of the Leased Property (regardless of whether or not the City has abandoned the Leased Property). Furthermore, upon the occurrence of such a default, the Authority shall have the right, and the City hereby irrevocably appoints the Authority as its agent and attorney-in-fact for such purpose, to attempt to relet the Leased Property at such rent, upon such conditions and for such term (subject to then existing Permitted Encumbrances, including but not limited to the City’s right to access and exclusive right to maintain and use facilities essential to the City’s utilities systems), and to do all other acts to maintain or preserve the Leased Property, including the removal of persons or property therefrom or taking possession thereof, as the Authority deems desirable or necessary. The City hereby waives any and all claims for any damages that may result to the Leased Property upon any action taken by the Authority under this Section 10(a). No action taken by the Authority under this Section 10(a) shall be deemed to terminate the Lease or the Sublease and the City shall continue to remain liable for any deficiency that may arise out of such reletting, taking into account expenses incurred by the Authority due to such reletting, payable at the same time and manner as provided for Base Rental in Section 3(a).
The Authority expressly waives the right to receive any amount from the City pursuant to Section 1951.2(a)(3) of the California Civil Code.
Each and all of the remedies given to the Authority hereunder or by any law now existing or hereafter enacted are cumulative and the exercise of any one remedy shall not impair the right of the Authority to any or all other remedies. (b) In addition to any default resulting from breach by the City of any agreement, condition, covenant or term hereof, if –
(i) the City’s interest herein or any part thereof is assigned or transferred, either voluntarily or by operation of law, except as provided in Section 16; or (ii) the City shall file any petition or institute any proceedings under any act or acts, state or federal, dealing with or relating to the subject of bankruptcy or insolvency or under any amendment of such act or acts, either as a bankrupt or as an insolvent or as a debtor or in any similar capacity, wherein or whereby the City asks or seeks or prays to be adjudicated a bankrupt, or is to be discharged from any or all of its debts or obligations, or offers to its creditors to effect a composition or extension of time to pay its debts, or asks, seeks or prays for a reorganization or to effect a plan of reorganization or for a readjustment of its debts or for any other similar relief, or if the City shall make a general or any assignment for the benefit of its creditors in connection with any proceedings related to bankruptcy, insolvency, liquidation, winding up or similar event; or
(iii) the City shall abandon the Leased Property or any portion thereof, then in each and every such case the City shall be deemed to be in default hereunder. -11-
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(c) Neither the Authority nor the City shall be in default in the performance of any of its obligations hereunder (except for the obligation of the City to pay Base Rental when due pursuant to Section 3(a)) unless and until it shall have failed to perform such obligation within 30 days after notice by the Authority or the City, as the case may be, to the other party properly specifying wherein it has failed to perform such obligation.
SECTION 11. PREPAYMENT AND CREDITS.
(a) In the event that, pursuant to Section 9, the City determines that Base Rental shall be abated and Net Proceeds from insurance or any condemnation award shall be used to redeem Bonds, the City shall provide the Authority and the Trustee an amended Exhibit B reflecting the new schedule of Base Rental payments.
(b) The City may, at its option, prepay from any source of available moneys, Base Rental then unpaid, in whole or in part, for the redemption of Bonds, which redemption date(s) shall be on or after November 1, 2033. In such event, the Bonds shall be redeemed pursuant to Section 2.03(b) of the Indenture. A prepayment under this Section 11(b) shall be deemed made upon the occurrence of either of the following:
(i) The City shall have deposited with the Trustee an amount equal to the sum of (A) the principal components of Base Rental being so prepaid, plus (B) the interest components with respect thereto accrued to the related redemption date(s) of the Bonds, plus (C) a premium, if any, in an amount equal to the redemption premium applicable to the Bonds being so redeemed; or
(ii) There shall have been deposited, on behalf of the Authority, with the Trustee or another fiduciary, Federal Securities in a sufficient amount to satisfy the requirements of Section 9.03 of the Indenture to discharge the Bonds to be redeemed in connection with such prepayment.
Except in the case of a prepayment of Base Rental to redeem all of the then Outstanding Bonds, a prepayment of principal components of Base Rental pursuant to this Section 11(b) shall: (1) apply only to Base Rental previously unpaid and not yet due, and (2) be applied to reduce Base Rental so that, after such prepayment (and the related redemption of Bonds), (A) each annual installment of principal components of Base Rental due hereunder shall be an integral multiple of $5,000 and (B) the principal components of Base Rental due in any year shall correspond with the principal amount of Bonds due and payable in such year. (c) Before making any prepayment pursuant to this Section 11, the City shall give written notice to the Trustee specifying the date on which the prepayment will be made.
Such notice by the City shall be given at least 45 days before the prepayment date; provided, that the Trustee may accept a shorter notice period or waive such notice requirement at the Trustee’s sole discretion. The City shall have the right to rescind an optional prepayment (exercised under Section 11(b)) by written notice to the Authority and the Trustee prior to the corresponding redemption date of the Bonds, and the Trustee, upon receipt of such notice, shall promptly send -12-
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notices of rescission of such optional redemption of the Bonds pursuant to Section 2.03(e) of the Indenture.
(d) In the event of a partial prepayment of Base Rental under this Section 11, the City shall provide the Trustee with an amended Exhibit B reflecting the new schedule of Base Rental payments. A prepayment made pursuant to this Section 11 shall not cause a defeasance of Bonds unless the requirements of Section 9.03 of the Indenture are satisfied. (e) In the event of a prepayment in full of the principal component of Base Rental under this Section 11, such that this Sublease shall be terminated by its terms as provided in Section 2, all amounts then on deposit under the Indenture which are to be credited to the City’s obligations to make Base Rental payments shall be credited towards the amounts then required to be so prepaid.
SECTION 12. RIGHT OF ENTRY.
The Authority and its assignees shall have the right to enter any of the Leased Property during reasonable business hours (and in emergencies at all times), subject to the City’s reasonable security measures, (a) to inspect the same, (b) for any purpose connected with the City’s or the Authority’s rights or obligations under this Sublease, and (c) for all other lawful purposes.
SECTION 13. MECHANICS’ LIENS.
In the event the City shall at any time before or during the term of this Sublease cause any improvements or other work to be done or performed or materials to be supplied, in or upon the Leased Property, the City shall pay, when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to or for the City in, upon or about the Leased Property and which may be secured by any mechanics’, materialmen’s or other liens against the Leased Property or the Authority’s interest therein, and will cause any such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures or becomes due, except that, if the City desires to contest any such lien it may do so. If any such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, the City shall promptly pay and discharge said judgment.
SECTION 14. QUIET ENJOYMENT.
The parties hereto mutually covenant that the City, so long as it keeps and performs the covenants and agreements herein contained, shall at all times during the term of this Sublease peaceably and quietly have, hold and enjoy the Leased Property without suit, trouble or hindrance from the Authority.
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SECTION 15. INDEMNIFICATION.
The City shall, to the full extent then permitted by law, indemnify, defend, protect and hold harmless the Authority and its members, officers and employees and the Trustee and its officers, directors or employees from and against any and all liabilities, obligations, losses, claims and damages whatsoever, regardless of the cause thereof (except for any liability, obligation, loss, claim or damage arising out of the negligent or intentional act or omission of the Trustee, its officers, directors or employees), and expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this Sublease and the Indenture, or the payment of costs of (including any accident in connection with) the operation, use, condition or possession of the Leased Property or any portion thereof resulting in damage to property or injury to or death to any person. The indemnification arising under this section shall continue in full force and effect notwithstanding the full payment of all rent obligations hereunder or the termination hereof for any reason, and with regard to the Trustee, the resignation or removal of the Trustee. The City agrees not to withhold or abate any portion of the payments required pursuant hereto by reason of any defects, malfunctions, breakdowns or infirmities of the Leased Property. The Authority and the City mutually agree to promptly give notice to each other of any claim or liability hereby indemnified against following either’s learning thereof.
SECTION 16. ASSIGNMENT TO TRUSTEE; SUBLETTING BY CITY.
(a) The parties understand that this Sublease and the rights of the Authority hereunder (except for the Authority’s rights with respect to approvals or consents hereunder, and indemnification and payment or reimbursement for any costs or expenses of the Authority hereunder) will be assigned to the Trustee pursuant to the Assignment Agreement and the Indenture, and accordingly, the City agrees to make all Rental Payments due to the Authority hereunder directly to the Trustee, notwithstanding any claim, defense, setoff or counterclaim whatsoever (whether arising from a breach hereof or otherwise) that the City may have from time to time against the Authority, except as provided in Section 17. (b) Neither this Sublease nor any interest of the City hereunder shall be mortgaged, pledged, assigned or transferred by the City by voluntary act or by operation of law or otherwise; provided, subject to Section 18, that the City may sublease all or any portion of the Leased Property, and may grant concessions to others involving the use of any portion of the Leased Property, whether such concessions purport to convey a leasehold interest or a license to use a portion of the Leased Property. The City shall at all times remain liable for the performance of the covenants and conditions on its part to be performed under this Sublease, notwithstanding any subletting or granting of concessions which may be made. Nothing contained herein shall be construed to relieve the City from its obligation to pay Base Rental and Additional Rental as provided in this Sublease or to relieve the City from any other obligations contained herein. (c) Without limiting the foregoing, to the extent that this Sublease or the Assignment Agreement confer upon or grants the Trustee any right, remedy or claim under or by -14-
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reason of this Sublease, the Trustee is hereby further recognized as being a third party beneficiary hereunder and may enforce such right, remedy or claim conferred, given or granted hereunder.
SECTION 17. ABATEMENT OF RENTAL.
(a) The obligation of the City to pay Base Rental and Additional Rental shall be abated during any period in which, by reason of any damage, destruction, condemnation or impairment of leasehold interest, there is substantial interference with the use and occupancy of the Leased Property or any portion thereof by the City. Such abatement shall be in an amount agreed upon by the City and the Authority such that the resulting Base Rental in any year during which such interference continues does not exceed the fair rental value of the portions of the Leased Property as to which such damage, destruction, taking or impairment do not substantially interfere with the City’s use and right of possession. Such abatement shall continue for the period commencing with the date of such interference and ending with the restoration of the relevant Leased Property to tenantable condition. For clarification purposes, to the extent that any Base Rental is to be paid or prepaid from insurance or condemnation proceeds deposited with the Trustee pursuant to Section 8(c) of this Sublease, such Base Rental shall not be reduced or abated pursuant to this Section.
(b) Upon the cessation of the occurrence of any abatement event during the term of this Sublease, the City and the Authority shall, in good faith, determine the current fair rental value of the Leased Property. If such fair rental value is greater than the fair rental value of the Leased Property determined under Section 3 as of the Commencement Date, the Base Rental shall be increased by the lesser of (i) such incremental value or (ii) the amount needed to recoup all amounts abated during the remaining term of this Sublease. (c) Except as set forth herein, in the event of any damage, destruction of condemnation, this Sublease shall continue in full force and effect and the City hereby waives any right to terminate this Sublease by virtue of such damage, destruction or condemnation. The City further waives the benefit of Sections 1932(1), 1932(2), 1933(4), 1941 and 1942 of the California Civil Code.
SECTION 18. ADDITIONAL COVENANTS REGARDING TAX-EXEMPT BONDS.
The City covenants that during the term of this Sublease it shall not use or permit the use of the Leased Property or any proceeds of the Bonds, directly or indirectly, in any manner, and shall not take or omit to take any action, that would cause any of the Bonds to be treated as an obligation not described in Section 103(a) of the Code. The City shall comply with the provisions of the Tax Certificate, which is incorporated in this Sublease.
SECTION 19. SUBSTITUTION OR RELEASE OF PROPERTY.
(a) Notwithstanding anything herein to the contrary, the Leased Property may be substituted, in whole or in part, by other properties, or a portion of the Leased Property may -15-
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be released from this Sublease, at the option of the City; provided, that the following conditions shall have been satisfied:
(i) such substitution or release does not, in the opinion of Bond Counsel, adversely affect the Tax-Exempt status of the Bonds; (ii) The City shall have provided certification to the Authority and the Trustee that the fair market value of the Leased Property, after the proposed substitution or release, shall be equal to or greater than the aggregate amount of the principal component of the Base Rental (i.e., the principal amount of the Outstanding Bonds); (iii) the City certifies to the Authority and the Trustee that, based on the City’s determination, the annual fair rental value of the Leased Property, after such substitution or release, is at least equal to the maximum annual Base Rental remaining unpaid under the terms of this Sublease, and the expected useful life of the Leased Property, after such substitution or release, extends at least to the Expiration Date; (iv) Except as provided in Section 19(b), the City shall notify the rating agency (or agencies) then rating the Bonds regarding such substitution or release; (v) in the event that the substituted property consists in whole or in part of real property, a California Land Title Association insurance policy (or, at the City’s sole discretion, an American Land Title Association insurance policy) on the substituted real property has been obtained, along with evidence that, other than Permitted Encumbrances, no prior liens exist as to the substituted property;
(vi) the City shall provide to the Authority and the Trustee evidence that any existing title insurance with respect to the portion of the Leased Property remaining after such substitution or release is not affected; and (vii) the parties hereto shall amend this Sublease to properly reflect such substitution or release.
(b) In addition to the release and substitution of property pursuant to Section 19 hereof, upon completion of the new city yard and senior center expansion, the portions of the Leased Property other than the Memorial Center Complex and the related real property upon which the Memorial Center Complex is located (all as described in Exhibit A to this Sublease) may be released from the Lease and this Sublease; provided, however, that no such release shall occur until there is delivered to the Trustee a Written Certificate of the City that the conditions set forth in Section 19 have been satisfied and that the City has received a certificate of occupancy for, and has beneficial use and occupancy of, the new city yard.
SECTION 20. WAIVER.
Failure of the Authority to take advantage of any default on the part of the City shall not be, or be construed as, a waiver thereof, nor shall any custom or practice which may be -16-
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established between the parties in the course of administering this Sublease be construed to waive or to lessen the right of the Authority to insist upon performance by the City of any term, covenant or condition hereof, or to exercise any rights given the Authority on account of such default. A waiver of a particular default shall not be deemed to be a waiver of the same or any subsequent default. The acceptance of rent hereunder shall not be, nor be construed to be, a waiver of any term, covenant or condition of this Sublease.
SECTION 21. NET LEASE.
Subject to the provisions of Section 17 (“Abatement of Rental”), this Sublease shall be deemed and construed to be a “Triple Net Lease” and the City hereby agrees that rental provided for herein shall be an absolute net return to the Authority, free and clear of any expenses, charges or setoffs whatsoever.
SECTION 22. AMENDMENTS.
This Sublease may only be amended to the extent permitted by Section 5.07 of the Indenture.
SECTION 23. GOVERNING LAW.
This Sublease shall be governed exclusively by the provisions hereof and by the laws of the State of California.
SECTION 24. NOTICES.
Any notice, request, demand, or other communication under this Sublease shall be governed by Section 9.14 of the Indenture, which is hereby incorporated.
SECTION 25. VALIDITY AND SEVERABILITY.
If for any reason this Sublease shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by the Authority or by the City, or if for any reason it is held by such a court that any of the covenants of the City hereunder, including the covenant to pay rentals hereunder, is unenforceable for the full term hereof, then and in such event this Sublease is and shall be deemed to be a lease from year to year under which the rentals are to be paid by the City monthly in consideration of the right of the City to possess, occupy and use the Leased Property, and all of the rental and other terms, provisions and conditions of this Sublease, except to the extent that such terms, provisions and conditions are contrary to or inconsistent with such holding, shall remain in full force and effect.
SECTION 26. SECTION HEADINGS.
All section headings contained are for convenience of reference only and are not intended to define or limit the scope of any provision of this Sublease. -17-
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SECTION 27. EXECUTION; RECORDATION.
This Sublease may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the Authority and the City have caused this Sublease to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written.
HAWTHORNE PUBLIC FINANCING AUTHORITY
By:
Vontray Norris, Executive Director
ATTEST:
Dayna Williams-Hunter, Secretary
CITY OF HAWTHORNE
By:
Vontray Norris, City Manager
ATTEST:
Dayna Williams-Hunter, City Clerk
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EXHIBIT A
Description of Leased Property
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF HAWTHORNE, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS, TOGETHER WITH IMPROVEMENTS THEREON:
PARCEL 1 - __ Boulevard - __: (APN: __)
.
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EXHIBIT B
Base Rental Payment Schedule
Payment Date Principal Component Interest Component Total 11/1/2054
TOTAL $ $ $
Payable five days before each payment date.
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State of California )
County of Los Angeles)
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California )
County of Los Angeles)
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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APPENDIX E
FORM OF CONTINUING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement (the “Disclosure Agreement”), dated as of [September] 1, 2024, is executed and delivered by the City of Hawthorne, California (the “City”) and U.S. Bank Trust Company, National Association, as dissemination agent (the “Dissemination Agent”) in connection with the issuance by the Hawthorne Public Financing Authority (the “Authority”) of its $[principal amount] aggregate principal amount of Lease Revenue Bonds, Series 2024 (the “Bonds”). The Bonds are being issued pursuant to an Indenture, dated as of [September] 1, 2024 (the “Indenture”), each by and between the City and U.S. Bank Trust Company, National Association (the “Trustee”). The City and the Dissemination Agent covenant and agree as follows:
Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the City and the Dissemination Agent for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule (as defined below).
Section 2. Definitions. In addition to the definitions set forth in the Indenture which apply to any capitalized term used in this Disclosure Agreement, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. “Dissemination Agent” shall mean U.S. Bank Trust Company, National Association, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Financial Obligation” shall mean a: (A) Debt obligation; (B) Derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (C) Guarantee of any financial obligation outlined in the foregoing (A) or (B). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Listed Events” shall mean any of the events listed in Section 5(a) of this Disclosure Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board. “Obligated Person” shall mean any person, including an issuer of municipal securities, who is either generally or through an enterprise, fund, or account of such person committed by contract or other arrangement to support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond insurance, letters of credit, or other liquidity facilities). “Official Statement” shall mean the final Official Statement, dated ____, 2024, relating to the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds.
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“Rule” shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than March 1 after the end of the City’s fiscal year of each year, commencing March 1, 2025 with the report for the 2023-2024 fiscal year, provide to the MSRB, in an electronic format accompanied by identifying information as prescribed by the MSRB, an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b).
(b) Not later than fifteen (15) business days prior to the date specified in subsection (a) above for providing the Annual Report to the MSRB, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the first sentence of this subsection (b). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder.
If the Dissemination Agent is unable to verify that an Annual Report has been provided to the MSRB by the date required in subsection (a), the Dissemination Agent shall promptly send a notice to the MSRB, in an electronic format as prescribed by the MSRB. (c) The Dissemination Agent (if other than the City) shall, if and to the extent, the City has provided an Annual Report in final form to the Dissemination Agent for dissemination, file a report with the City certifying that the Annual Report has been provided to the MSRB pursuant to this Disclosure Agreement, and stating the date it was provided.
Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
(a) Audited financial statements of the City prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) To the extent not contained in the audited financial statements filed pursuant to the preceding subsection (a) by the date required by Section 3 hereof, the following information:
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1) The principal amount of Bonds outstanding as of the October 2 date preceding the filing of the Annual Report.
2) The tabular financial information and operating data contained in the Official Statement under the following section headings presented on an annual basis, for the subject Fiscal Year:
(i) Table 8, General Fund Budget Summary;
(ii) Table 9, General Fund Balance Sheets;
(iii) Table 10, Statements of Revenues, Expenditures and Changes in General Fund Balance;
(iv) Table 11, Top Revenue Sources;
(v) Table 12, Assessed Values of All Taxable Property; and (vi) Table 13, Top Ten Taxpayers Based on Local Secured Assessed Value.
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been available to the public on the MSRB’s internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference.
Section 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds, which notice shall be given in a timely manner, not in excess of ten (10) business days after the occurrence of such Listed Event:
1) Principal and interest payment delinquencies;
2) Non-payment related defaults, if material;
3) Unscheduled draws on debt service reserves reflecting financial difficulties; 4) Unscheduled draws on credit enhancements reflecting financial difficulties; 5) Substitution of credit or liquidity providers, or their failure to perform; 6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security;
7) Modifications to rights of security holders, if material; E-4
8) Bond calls, if material, and tender offers;
9) Defeasances;
10) Release, substitution, or sale of property securing repayment of the securities, if material;
11) Rating changes;
12) Bankruptcy, insolvency, receivership or similar event of the Obligated Person;
13) The consummation of a merger, consolidation, or acquisition involving an Obligated Person or the sale of all or substantially all of the assets of the Obligated Person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
14) Appointment of a successor or additional trustee or the change of name of a trustee, if material;
15) Incurrence of a Financial Obligation of the Obligated Person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Obligated Person, any of which affect security holders, if material; and
16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the Obligated Person, any of which reflect financial difficulties.
(b) The Dissemination Agent is under no obligation to determine if a Listed Event has occurred. However, if the Dissemination Agent obtains knowledge of the occurrence of any of the events listed in Section 5(a) (1), (3), (4), (5), (6), (9), (11), (12) or (16), the Dissemination agent shall, within one (1) business day after obtaining knowledge of such event, inform the City of the occurrence of such event within one (1) business day. As soon as reasonably practicable after obtaining knowledge of the occurrence of such event, the City shall, or shall cause the Dissemination Agent to, file in a timely manner, not in excess of ten (10) business days after the occurrence of any such event, a notice of such occurrence with the MSRB. (c) If the Dissemination Agent obtains knowledge of the occurrence of any of any of the events listed in Section 5(a) (2), (7), (8), (10), (13), (14), or (15), the Dissemination Agent shall, within one (1) business day after obtaining knowledge of such event, inform the City of the occurrence of such event and request that the City promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (d). (d) Whenever the City obtains knowledge of the occurrence of any event specified in Section 5(a) (2), (7), (8), (10), (13), (14) or (15), the City shall as soon as possible, in order to meet the ten (10) business day deadline to file notices required under the Rule and pursuant to the following sentence, determine if such event would be material under applicable Federal securities law. If the City determines that knowledge of the occurrence of such event would be E-5
material under applicable Federal securities law, the City shall, or shall cause the Dissemination Agent to, file in a timely manner, not in excess of ten (10) business days after the occurrence of any such event, a notice of such occurrence with the MSRB, in an electronic format accompanied by identifying information as prescribed by the MSRB.
Section 6. Termination of Reporting Obligation. The City’s obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
Section 7. Dissemination Agent.
(a) The City hereby appoints and engages U.S. Bank Trust Company, National Association as the Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Agreement. The City may replace the Dissemination Agent with or without cause. If at the time there is no designated Dissemination Agent appointed by the City, the City shall be the Dissemination Agent and undertake or assume its obligations hereunder.
Any company succeeding to all or substantially all of the Dissemination Agent’s corporate trust business shall be the successor to the Dissemination Agent hereunder without the execution or filing of any paper or any further act. The Dissemination Agent may resign its duties hereunder by giving 30-days written notice to the City. (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees agreed to between the Dissemination Agent and the City from time to time and for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, holders or beneficial owners of the Bonds or any other party. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon any direction from the City or an opinion of bond counsel.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City and the Dissemination Agent may amend this Disclosure Agreement and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an Obligated Person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
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(c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the MSRB in the same manner as for a Listed Event under Section 5(b).
No amendment to this Agreement which modifies the duties or rights of the Dissemination Agent shall be made without the prior written consent of the Dissemination Agent. The Dissemination Agent may rely conclusively on any opinion of bond counsel delivered pursuant to the provisions of this Section 8, and shall have no duty to determine or liability for failing to determine whether any amendment made pursuant to this Section 8 is consistent with guidance provided by the Securities and Exchange Commission with regard to permitted amendments, or the manner of effecting such amendments, under the Rule.
Section 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the City shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the City or the Dissemination Agent to comply with any provision of this Disclosure Agreement, any Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City or the Dissemination Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the City or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance.
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Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent (if other than the Trustee or the Trustee in its capacity as Dissemination Agent) shall have only such duties as are specifically set forth in this Disclosure Agreement, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the MSRB, or any other party. The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon any direction from the City or an opinion of bond counsel. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Agreement. The Dissemination Agent shall not be liable under any circumstances for monetary damages to any person for any breach of this Agreement.
Section 12. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows:
To the City: City of Hawthorne
4455 W. 126th Street
Hawthorne, California 90250
Attention: Finance Director
Phone (310) 349-2923
E-mail: [email protected]
To the Dissemination Agent: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, CA 90071
Attention: Ismael Diaz
Vice President
Phone: 213-615-6063
E-mail: [email protected]
Section 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 14. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
E-8
IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the date first written above.
CITY OF HAWTHORNE
Vontray Norris
City Manager
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION
as Dissemination Agent
Ismael Diaz
Vice President
PRELIMINARY OFFICIAL STATEMENT DATED ___, 2024
62908452.v3
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the dated date of the Official Statement in its final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
NEW ISSUE – BOOK ENTRY ONLY RATINGS: S&P:__
(See “RATING” herein.)
In the opinion of Nossaman LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax; however, for tax years beginning after December 31, 2022, interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax, and (ii) interest on the Bonds is exempt from State of California personal income taxes. Bond Counsel expresses no opinion as to any other tax consequences regarding the Bonds. For a more complete discussion of the tax aspects, see “TAX MATTERS” herein.
$[principal amount]*
HAWTHORNE PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS
SERIES 2024
Dated: Date of Delivery Due: November 1, as shown on the inside front cover The Hawthorne Public Financing Authority (the “Authority”) will issue its Lease Revenue Bonds, Series 2024 (the “Bonds”) pursuant to an Indenture, dated as of September 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as Trustee.
Proceeds of the Bonds will be used to: (i) pay a portion of the costs of construction and renovation of the city hall expansion and new civic center park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and certain other related capital improvements; (ii) [to purchase a municipal bond insurance policy]; and (iii) pay cost of issuance of the Bonds.
The Bonds will be payable solely from and secured by Revenues and certain funds and accounts held under the Indenture. Revenues consist primarily of certain rental payments (“Base Rental Payments”) to be made by the City of Hawthorne (the “City’”) to the Authority pursuant to a Sublease Agreement, dated as of September 1, 2024 (the “Sublease”), by and between the Authority and the City for subleasing of the Leased Property (as described herein). The City covenants under the Sublease to take such action as necessary to include the Base Rental Payments and Additional Rental (as defined in the Sublease, and together with the Base Rental Payments, the “Rental Payments”) in its annual budget and to make all necessary appropriations therefor subject to abatement of such payments.
The Bonds are subject to optional redemption,* mandatory sinking fund redemption,* and extraordinary redemption prior to their maturity as described herein. The Bonds are expected to be redeemed prior to maturity from the proceeds of grant funds.
See “’PLAN OF FINANCING” and “THE BONDS.”
The Bonds will be issued in fully registered form and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in book-entry form only, in denominations of $5,000 each or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. Principal of and interest on the Bonds will be paid directly to DTC by the Trustee. Principal of the Bonds is payable on their maturity dates set forth on the inside cover hereof. Interest on the Bonds is payable on May 1 and November 1 of each year, commencing [May 1, 2025]. Upon its receipt of payments of principal and interest, DTC is in turn obligated to remit such principal and interest to DTC participants for subsequent disbursement to the beneficial owners of the Bonds as described herein.
THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM AND SECURED BY A PLEDGE OF REVENUES AND CERTAIN FUNDS AND ACCOUNTS HELD UNDER THE INDENTURE. THE AUTHORITY HAS NO TAXING POWER.
THE OBLIGATION OF THE CITY TO MAKE RENTAL PAYMENTS UNDER THE SUBLEASE DOES NOT CONSTITUTE AN
OBLIGATION OF THE CITY WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY
TO MAKE RENTAL PAYMENTS UNDER THE SUBLEASE CONSTITUTES AN INDEBTEDNESS OF THE CITY, STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATIONS.
See the section of this Official Statement entitled “BONDOWNERS’ RISKS” for a discussion of certain of the risk factors that should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. This cover page contains information for quick reference only. It is not a summary of this issue. Potential purchasers must read the entire Official Statement to obtain information essential to making an informed investment decision. [The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Bonds by ___. See “MUNICIPAL BOND INSURANCE” herein.] [insurer logo]
The Bonds are offered when, as and if issued, subject to the approval as to their legality by Nossaman LLP, Los Angeles, California, Bond Counsel. Certain legal matters will also be passed on for the Authority by Nossaman LLP, Los Angeles, California, as Disclosure Counsel. Certain legal matters will be passed on for the Underwriter by Kutak Rock LLP, Irvine, California. It is anticipated that the Bonds will be available for delivery in book-entry form through the facilities of DTC on or about September ___, 2024. [Ramirez & Co., Inc. logo]
Dated: ________, 2024
* Preliminary, subject to change.
62908452.v3
MATURITY SCHEDULE
(Base CUSIP† ________)
$[principal amount]*
HAWTHORNE PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS
SERIES 2024
Maturity Date
(November 1)
Principal
Amount
Interest
Rate Yield Price
CUSIP†
Suffix
$ % %
$____ __% Term Bonds due November 1, 20__ Yield: __%, Price: CUSIP† ___ ___________________________
* Preliminary; subject to change.
C Priced to optional redemption date of ___, 20__ at par. † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright(c) 2024 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services.
This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the Authority, the City, the Underwriter or their agents or counsel take any responsibility for the accuracy of such numbers. 62908452.v3
CITY OF HAWTHORNE / HAWTHORNE PUBLIC FINANCING AUTHORITY
LOS ANGELES COUNTY, CALIFORNIA
CITY COUNCIL / AUTHORITY COMMISSION
Alex Vargas, Mayor / President
Katrina Manning, Mayor Pro Tempore / Vice President
Angie Reyes English, Council Member / Commissioner
Alex Monteiro, Council Member / Commissioner
L. David Patterson, Council Member / Commissioner
CITY / AUTHORITY OFFICIALS AND STAFF
Vontray Norris, City Manager / Executive Director
Dana Williams-Hunter, City Clerk / Secretary
Robert Kim, City Attorney / General Counsel
Felice Lopez, Director of Finance
SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Nossaman LLP
Los Angeles, California
Municipal Advisor
CSG Advisors Incorporated
San Francisco, California
Trustee
U.S. Bank Trust Company, National Association
Los Angeles, California
62908452.v3
No dealer, broker, salesperson or other person has been authorized by the City or the Authority to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Authority. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers or Owners of the Bonds.
Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
This Official Statement and the information contained herein are subject to completion or amendment without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or the Authority or any other parties described herein since the date hereof. The Bonds may not be sold nor may an offer to buy be accepted prior to the time this Official Statement is delivered in final form. This Official Statement is being submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions.
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget,” “intend” or similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the caption “BONDOWNERS’ RISKS” and “THE CITY.”
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY
UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. IN EVALUATING SUCH STATEMENTS, POTENTIAL INVESTORS SHOULD SPECIFICALLY
CONSIDER THE VARIOUS FACTORS WHICH COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS.
IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR
EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE
BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AND OTHERS AT PRICES
LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT AND HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.
The references to internet websites in this Official Statement are shown for reference and convenience only; unless explicitly stated to the contrary, the information contained within the websites and any links contained within those websites are not incorporated herein by reference and do not constitute part of this Official Statement.
TABLE OF CONTENTS
Page Page
i
62908452.v3
INTRODUCTION ............................................1 Authority for Issuance ................................1 Purpose of the Bonds.................................1
The Authority and the City..........................1
Bond Terms; Book-Entry Only. ..................2
Security for the Bonds................................2 Municipal Bond Insurance..........................2
Redemption. ..............................................3 Additional Bonds. .......................................3 Risks of Investment....................................3 Professionals Involved in the Offering........3
Summaries of Documents..........................4
PLAN OF FINANCING....................................4
The Projects ..............................................4 SOURCES AND USES OF FUNDS ...............6
ANNUAL DEBT SERVICE ..............................6
THE BONDS ...................................................7 Authority for Issuance ................................7 General Provisions.....................................7 Transfer, Registration and Exchange.........8
Redemption. ..............................................8 Book-Entry Only System ............................11
SECURITY FOR THE BONDS .......................11
Revenues; Pledge of Revenues.................11
Allocation of Revenues by Trustee; Application
of Funds .............................................12 Base Rental................................................13 Additional Rental........................................13 Fair Rental Value .......................................14 Limited Obligation ......................................14 Source of Payments; Covenant to Appropriate
Funds for Base Rental .......................14
Abatement..................................................14 Additional Bonds ........................................15 Default; Remedies......................................15 Covenants to Maintain Insurance...............17
Damage, Destruction and Condemnation; Net
Proceeds..............................................19 LEASED PROPERTY .....................................20 Lease of the Leased Property....................20
Description of the Leased Property............20
Changes to Leased Property .....................20
Substitution or Release of Property ...........21
THE AUTHORITY ...........................................21 THE CITY........................................................22 General ..............................................22 City Government ........................................23 Population ..............................................23 Employment ..............................................24 Commerce ..............................................25 Construction Activity...................................26 CITY FINANCIAL INFORMATION..................26
Budgetary Process; City Budget for Fiscal
Years 2023-24 through 2024-25.............26
General Fund Reserve Policy ....................29
Debt Policy ..............................................30 Financial Statements..................................30 Primary General Fund Revenue Sources ..32
Sales Taxes ..............................................33 Property Taxes...........................................34 Transient Occupancy Taxes ......................36
Vehicle License Fee...................................37 Franchise Fees ..........................................37 Investment Policy and Portfolio..................37
Long-Term Liabilities..................................38 Retirement Pension Plans..........................39
Contributions ..............................................40 Net Pension Liability...................................41 Other Post-Employment Benefits Other
Than Pensions.............................44
Risk Management ......................................46 BONDOWNERS’ RISKS.................................47
No Pledge of Taxes....................................47 Abatement ..............................................48 Limited Recourse on Sublease Default......48
Limitations on Remedies for Bond Holders49
Limited Obligations with Respect to the
Bonds ..........................................49
Additional Obligations of the City ...............50
Transient Occupancy Taxes ......................50
Sales Tax ...................................................51 Property Taxes...........................................51 Natural Calamities......................................52 Risk of Uninsured Loss ..............................53 Public Health Emergencies........................53
Cyber Security............................................54 State Finances ...........................................54 Investment of Funds...................................55 Future Initiative and Legislation .................55
Loss of Tax Exemption...............................55
Secondary Market for Bonds......................56
LIMITATIONS ON REVENUES AND
APPROPRIATIONS ...........................56
Property Tax Limitations - Article XIIIA ......56
Article XIIIA Implementing Legislation........57
Challenges to Article XIIIA .........................57 Appropriations Limitations: Article XIIIB.....57
Propositions 218 and 26: Article XIIIC
and Article XIIID ....................................58 Proposition 62 ............................................59 Unitary Property .........................................59 ABSENCE OF LITIGATION............................59
CONTINUING DISCLOSURE.........................60
LEGAL MATTERS ..........................................60 TAX MATTERS...............................................60 MUNICIPAL ADVISOR ...................................63 UNDERWRITING............................................63 RATINGS ........................................................63 FINANCIAL STATEMENTS ............................63
MISCELLANEOUS .........................................63 TABLE OF CONTENTS (cont’d)
ii
62908452.v3
APPENDIX A – CITY OF HAWTHORNE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2023 ...............................................................................................A-1 APPENDIX B –FORM OF BOND COUNSEL OPINION ........................................................................B-1 APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS .....................................................C-1 APPENDIX D – DTC’S BOOK-ENTRY ONLY SYSTEM.........................................................................D-1 APPENDIX E – FORM OF CONTINUING DISCLOSURE AGREEMENT ..............................................E-1 APPENDIX F -- SPECIMEN MUNICIPAL BOND INSURANCE POLICY................................................F-1 [Insert Map of Hawthorne]
1 62908452.v3
$[principal amount]*
HAWTHORNE PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS
SERIES 2024
INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement. Capitalized terms used but not defined in this Official Statement have the meanings set forth in the Indenture (as defined below). See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” Authority for Issuance
The Hawthorne Public Financing Authority (the “Authority”) is issuing its $[principal amount]* aggregate principal amount of Lease Revenue Bonds, Series 2024 (the “Bonds”), pursuant to the provisions relating to the joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of the California Government Code, including the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 thereof (the “Bond Law”), and an Indenture, dated as of September 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association (the “Trustee”).
Purpose of the Bonds
Proceeds of the Bonds will be used to: (i) pay a portion of the costs of construction and renovation of the city hall expansion and new civic center park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and certain other related capital improvements; (ii) [to purchase a municipal bond insurance policy]; and (iii) pay cost of issuance of the Bonds.
The Authority and the City
The Authority is a joint powers authority, duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, dated as of November 23, 1992, by and between the City and the Community Redevelopment Agency of the City of Hawthorne, in accordance with the provisions of Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Joint Powers Law”). The Authority is governed by a five-member Board of Directors which consists of the City Council of the City. The Authority has no taxing power. The Authority and the City are each separate and distinct legal entities, and the debts and obligations of one such entity are not debts or obligations of the other entity. See “THE AUTHORITY” herein.
The City was incorporated in 1922 and encompasses six square miles. The City is located in the South Bay region of Los Angeles County, 17 miles west of downtown Los Angeles, and five miles east of Los Angeles International Airport (LAX). Neighboring communities include Gardena, Lawndale and Redondo Beach. Based on an estimate by the California Department of Finance, the City’s population was approximately 85,556, as of January 1, 2024. *
Preliminary, subject to change.
2 62908452.v3
The City is a general law city governed by the council-manager form of government. The City Council is composed of five members. Every two years, two members of the City Council are elected at-large by the community to serve four-year terms. The Mayor is elected by residents to serve a four-year term. The City Manager, City Attorney, Human Resources Director and Chief of Police are appointed by the City Council. See “THE CITY” herein.
Bond Terms; Book-Entry Only
Interest on the Bonds is payable on May 1 and November 1 of each year, commencing [May 1], 2025. The Bonds will mature in the amounts and on the dates and bear interest at rates shown on the cover of this Official Statement.
The Bonds will be issued in fully registered form only and, when issued and delivered, will be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York (“DTC”). DTC will act as the depository for the Bonds and all payments due on the Bonds will be made to Cede& Co. Ownership interests in the Bonds may be purchased only in book-entry form. See “THE BONDS – Book-Entry Only System” and “APPENDIX D – DTC’S BOOK-ENTRY ONLY SYSTEM.”
Security for the Bonds
The Bonds will be payable solely from and secured by Revenues (defined below) and certain funds and accounts held under the Indenture. Revenues consist primarily of certain rental payments (“Base Rental Payments”) to be made by the City to the Authority pursuant to a Sublease Agreement, dated as of September 1, 2024 (the “Sublease”), by and between the Authority and the City for subleasing of certain City properties and the improvements thereon as described below under “LEASED PROPERTY” (collectively, the “Leased Property”). Pursuant to an Assignment Agreement, dated as of September 1, 2024 (the “Assignment Agreement”), by and between the Authority and the Trustee, the Authority has assigned to the Trustee for the benefit of the Owners of the Bonds, certain of its rights under the Sublease, including its rights to receive Base Rental Payments for the purpose of securing the payment of debt service on the Bonds. The City covenants under the Sublease to take such action as necessary to include the Base Rental Payments and Additional Rental (as defined therein, and together with the Base Rental Payments, the “Rental Payments”) in its annual budget and to make all necessary appropriations therefor (subject to abatement under certain circumstances described in the Sublease).
Base Rental Payments payable by the City under the Sublease are calculated to be sufficient to permit the Authority to pay the principal of, and interest on, the Bonds when due.
However, under the certain circumstances, Base Rental Payments may be abated under the Sublease without constituting a default. See “SECURITY FOR THE BONDS.” [Municipal Bond Insurance]
[Concurrently with the issuance of the Bonds, _______ (the “Municipal Bond Insurer”) will issue its Municipal Bond Insurance Policy (the “Insurance Policy”) for the Bonds. The Insurance Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Insurance Policy included as Appendix G – “Specimen Municipal Bond Insurance Policy.” See “MUNICIPAL BOND INSURANCE” herein.] 3 62908452.v3
Redemption*
The Bonds are subject to optional redemption,* mandatory sinking fund redemption,* and extraordinary redemption prior to their maturity as described herein. See “THE BONDS.” Additional Bonds
Under the Indenture, the Authority may from time to time issue one or more series of Additional Bonds payable from and secured by Revenues (consisting primarily of Base Rental Payments received by the Authority from the City) on parity with all other Outstanding Bonds. In addition, the City is permitted to enter into other obligations which constitute additional charges against its general fund revenues without the consent of Owners of the Bonds. See “SECURITY FOR THE BONDS – Additional Bonds.”
Risks of Investment
Debt service on the Bonds is payable only from Base Rental Payments and other amounts payable by the City to the Authority under the Sublease. The Base Rental payments are payable from revenues available in the City’s General Fund, which revenues may be materially adversely affected by numerous factors outside the City’s control. See “SECURITY FOR THE BONDS” and “BONDOWNERS’ RISKS.”
THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY
FROM AND SECURED BY A PLEDGE OF REVENUES AND CERTAIN FUNDS AND ACCOUNTS HELD UNDER THE INDENTURE. THE AUTHORITY HAS NO TAXING POWER. THE
OBLIGATION OF THE CITY TO MAKE RENTAL PAYMENTS UNDER THE SUBLEASE DOES
NOT CONSTITUTE AN OBLIGATION OF THE CITY WHICH THE CITY IS OBLIGATED TO LEVY
OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION.
Professionals Involved in the Offering
U.S. Bank Trust Company, National Association, Los Angeles, California, will act as Trustee with respect to the Bonds. CSG Advisors Incorporated, San Francisco, California, has served as Municipal Advisor to the Authority and the City in connection with the Bonds and has assisted the Authority and the City in structuring the Bonds. All proceedings in connection with the issuance of the Bonds are subject to the approval of Nossaman LLP, Los Angeles, California, Bond Counsel.
Certain legal matters will also be passed on for the Authority by Nossaman LLP, as Disclosure Counsel.
Summaries of Documents
There follows in this Official Statement descriptions of the Bonds, the Indenture, the Sublease, and various other agreements and documents. The descriptions and summaries of documents herein do not purport to be comprehensive or definitive, and reference is made to each such document for the complete details of all terms and conditions. All statements herein are qualified in their entirety by reference to each such document and, with respect to certain rights and remedies, to laws and principles of equity relating to or affecting creditors’ rights generally.
Capitalized terms not defined herein shall have the meanings set forth in the Indenture. Copies of *
Preliminary, subject to change.
4 62908452.v3
the Indenture and the Sublease are available for inspection during business hours at the corporate trust office of the Trustee in Los Angeles, California.
PLAN OF FINANCING
Projects
The Bonds are being issued to finance a portion of the costs of design, construction and renovation of various City projects, including an additional city hall building, new civic center park, new public works yard, senior center expansion, police department facility improvements, aquatics center and pool improvements, and certain other related capital improvements (collectively, the “Projects”). The Projects will be done in various phases as described below, with an expected cost of $47 million, which will be funded by Bond proceeds in the approximate amount of $30 million, with the remaining costs financed from City general fund moneys.
Additional City Hall Building and Civic Center Park
The new additional city hall building will be three-stories and 32,000 square feet, and will be built adjacent to the existing city hall with a covered bridge connecting to the two buildings. The new building will hold the Council chambers and provide approximately 20,000 square feet of additional office space for staff, as well as a usable roof top deck space.
A new 95,000 square foot civic center park will be built in front of the existing city hall and the new three-story city hall building, on the same lot. The new civic center park will feature a “great lawn” for recreation use, as well as a walking path, and a botanical garden. The park will hold approximately 1,200 people, allowing the City to host events for residents, such as a farmers market, art fair, movie nights, and holiday events. Approximately 44 angled parking stalls will be built along the streets surrounding the civic center park lot to provide additional street parking.
There is an existing building on the same lot as the civic center park, which is currently leased to Bank of America. In the future, the City intends to renovate the building leased to Bank of America with general fund moneys in the approximate amount of $10 million. An underground parking structure providing approximately 166 parking stalls will be built underneath the civic center park using general fund moneys. In addition, in 2028, the City plans to build a new three-story parking garage, known as the Grevillea parking garage, located catty-corner to the existing city hall providing approximately 100 parking stalls for city staff. The City expects this parking structure to cost approximately $3 million and will use general fund moneys to pay for the costs of design and construction.
The City Hall Expansion and Civic Center Park is expected to cost approximately $24 million. The design of the project is expected to be completed in August 2024. The City plans to bid the construction of this project in October 2024 and award the project in January 2025. Construction is expected to commence in March 2025 and be completed by the summer of 2027.
Public Works Yard
The new public works yard will consist of a two-story, 70,000 square foot maintenance facility constructed on a portion of the existing under-utilized parking lot of the City’s Memorial Center Complex. Once built, the new public works yard will replace the City’s existing public works yard located at a different location in the City. The new facility will feature a public access counter for inquiries and reports related to street and park maintenance, as well as offices, a conference room, a training room, bathrooms, and locker facilities. Additionally, it will include mechanic bays 5 62908452.v3
for maintaining the city’s fleet, a gas station, and storage rooms for hazardous materials (HAZMAT), electronic waste (E-Waste), and organic waste. The City’s purchasing department will be housed at this location, with a 20,000 square foot storage area designated for City documents used in audits.
The new public works yard is expected to cost approximately $7 million. The design of the public works yard was completed in July 2024. The City plans to bid the construction of the public works yard in August 2024 and award the project in October 2024. Construction is expected to commence in November 2024 and be completed by the Spring of 2026.
Senior Center Expansion
The senior center project will consist of adding an approximately 10,000 square foot second story to the existing one-story senior center building, resulting in a 20,000 square foot facility. The new senior center will feature several upgrades, such as new elevators, ADA-compliant restrooms, walkways, ramps, signage, and handicap parking spaces. There will be a green courtyard with accessible walkways, seating, and outdoor spaces. The existing building will be renovated with new LED lighting, a modern mechanical system, and a courtyard. The first floor will have 20-foot ceilings and include a commercial kitchen, sewing room, dance room, billiards room, dedicated computer lab, elevator, lobby with transit information and programs, multipurpose room, courtyard entrance, and administrative offices. The second floor, with 15-foot ceilings, will feature a conference room, art room, lounge, library, larger multipurpose room, outdoor deck overlooking the park, and administrative offices.
The new Senior Center is expected to cost approximately $12 million. The design of the senior center project was completed July 2024. The City plans to bid the construction of the senior center project in September 2024 and award the project in November 2024. Construction is expected to commence in January 2025 and be completed by the Spring of 2026.
Police Facility
The police department facility will undergo several improvements including facade repairs to address structural issues and improve the aesthetic appearance of the building's exterior and interior. In addition, a new roof and energy efficient lighting fixtures and bulbs will be installed.
The police department improvements are expected to cost approximately $2 million. The design of the police department improvements is expected to be completed by December 2024.
The City plans to bid the construction of the project in January 2025 and award the project in March 2025. Construction is expected to commence in the Summer of 2025 and be completed by March 2026.
City Aquatics Center
The City’s aquatics center improvements include renovations to the existing City pool, restrooms, and locker facilities, as well as the addition of new benches throughout the facility. The existing pool will be resurfaced with non-slip material, and will undergo structural repairs to fix cracks and leaks. The pool will be equipped with a new filtration system to maintain water quality, and a new heating system as well as energy-efficient LED lighting. Additional lockers with a digital locking system will be added to the locker facility. Bathroom renovations will include new fixtures, flooring, and lighting, and improvements to ensure ADA compliance. 6 62908452.v3
The aquatics center and pool improvements are expected to cost approximately $2 million.
The design of the project is expected to be completed by January 2025. The City plans to bid the construction of the project in April 2025 and award the project in July 2025. Construction is expected to commence in the September of 2025 and be completed by the end of 2026.
SOURCES AND USES OF FUNDS
The following table shows the estimated sources and uses of the proceeds from the sale of the Bonds:
Sources:
Par amount of the Bonds $
[Plus/Less] Net Original Issue[Premium/Discount]
Less: Underwriter’s discount ()
Total Sources
Uses:
Project Fund
Costs of Issuance (1)
Total Uses
____________________
(1) Costs of Issuance include fees and expenses for Bond Counsel, Disclosure Counsel, Municipal Advisor, Trustee, [premiums for the Insurance Policy,] printing expenses, rating fees and other costs.
ANNUAL DEBT SERVICE
The following table shows the scheduled annual debt service for the Bonds assuming no optional redemption or extraordinary mandatory redemption:
Bond Year
Ending
November
1 Principal Interest Total
Total
7 62908452.v3
LEASED PROPERTY
Description of the Leased Property
The Leased Property consists of the following City-owned assets, and the improvements thereon.
City Property Address Square Feet Insured Value
Memorial Center Complex(1) 3901 West El Segundo Blvd. 60,089 $19,778,000 Fire Station #1(2) 4475 W. El Segundo Blvd. 14,788 3,476,000 Fire Station #2(2) 12151 S. Crenshaw Blvd. 2,164 613,000 Fire Station #3(2) 5323 Rosecrans Blvd. 2,388 621,000
City Yard 12501 Truro Avenue 15,070 2,410,000
Lot with Small Office Structure 11605 Hawthorne Blvd. 19,639 3,750,000 Eucalyptus Park 123rd Street & Gate Avenue 30,804 2,935,000 Total Insured Value $33,583,000
_________
(1) The senior center expansion, which is located on the lot of the Memorial Center Complex, will remain operational during construction.
(2) The City allows Los Angeles County to operate out of the City’s fire stations to provide fire protection services to the City pursuant to [an Agreement ___].
The City calculated the value of the Leased Property, based on current insurance coverage, at more than $33 million. The Leased Property is not subject to a security interest, mortgage or any other lien in favor of the Trustee for the benefit of Bond Owners.
Lease of the Leased Property
Simultaneously with the delivery of the Bonds, the Authority will acquire a leasehold interest in the Leased Property from the City. The Authority will sublease the Leased Property to the City pursuant to the Sublease. While the City is in possession of the Leased Property, all maintenance and repairs of the Leased Property are the responsibility of the City. Pursuant to the Sublease, the City may substitute the Leased Property, in whole or in part, with other properties, upon the satisfaction of certain conditions. See “SECURITY FOR THE BONDS” and “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS – Sublease.”
The City has not granted any security interest in the Leased Property for the benefit of the Bonds, and there is no remedy of foreclosure on the Leased Property upon the occurrence of an Event of Default under the Indenture or the Sublease. For a discussion of remedies upon an Event of Default under the Indenture or the Sublease, see “BONDOWNERS’ RISKS – Limited Recourse on Sublease Default” and “—Limitations on Remedies.”
Changes to Leased Property
The City will have the right during the term of the Sublease to acquire and construct improvements or to attach fixtures, structures or signs to any of the Leased Property if the improvements, fixtures, structures or signs are necessary or beneficial for the use of such Leased Property by the City; provided, however, that such acquisition or construction must not result in a material reduction in the aggregate value of the Leased Property or reduce the aggregate fair rental value thereof.
8 62908452.v3
Substitution or Release of Property
Pursuant to the Sublease, the Leased Property may be substituted, in whole or in part, by other properties, or a portion of the Leased Property may be released from the Sublease, at the option of the City; provided, that the following conditions have been satisfied:
• Such substitution or release does not, in the opinion of Bond Counsel, adversely affect the tax-exempt status of the Bonds;
• the City shall have provided certification to the Authority and the Trustee that the fair market value of the Leased Property, after the proposed substitution or release, shall be equal to or greater than the aggregate amount of the principal component of the Base Rental (i.e., the principal amount of the Outstanding Bonds); • the City certifies to the Authority and the Trustee that, based on the City’s determination, the annual fair rental value of the Leased Property, after such substitution or release, is at least equal to the maximum annual Base Rental remaining unpaid under the terms of the Sublease, and the expected useful life of the Leased Property, after such substitution or release, extends at least to the Expiration Date, as such term is defined in the Sublease; • the City will notify any rating agency then rating the Bonds regarding such substitution or release;
• in the event that the substituted property consists in whole or in part of real property, a California Land Title Association insurance policy (or, at the City’s sole discretion, an American Land Title Association insurance policy) on the substituted property has been obtained, along with evidence that, other than Permitted Encumbrances, no prior liens exist as to the substituted property;
• the City will provide to the Authority and the Trustee evidence that any existing title insurance with respect to the portion of the Leased Property remaining after such substitution or release is not affected;
• the Authority and the City will amend the Sublease to properly reflect such substitution or release.
In addition to the release and substitution of property under to the Sublease, upon completion of the new public works yard and the senior center expansion, the portions of the Leased Property other than the Memorial Center Complex may be released from the Lease and the Sublease; provided, however, that no such release shall occur until there is delivered to the Trustee a certification of the City that the conditions set forth in the Sublease have been satisfied and that the City has received a certificate of occupancy for, and has beneficial use and occupancy of, the new city yard.
See “APPENDIX C − SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” 9 62908452.v3
THE BONDS
This section provides summaries of the Bonds and certain provisions of the Indenture. See APPENDIX C for a more complete summary of the Indenture. Capitalized terms used but not defined in this section have the meanings given in APPENDIX C.
Authority for Issuance
The Bonds are being issued under the Bond Law, the Indenture, the Authority Resolution adopted by the Board of the Authority on August [27], 2024, and the City Resolution adopted by the City Council on August [27], 2024.
General Provisions
Bond Terms. The Bonds will be dated their date of delivery and issued in fully registered form, numbered from one upwards in consecutive numerical order (with such alphabetical prefix as the Trustee shall determine), without coupons in denominations of $5,000 or any integral multiple of $5,000. The Bonds will mature in the amounts and on the dates, and bear interest at the annual rates, set forth on the inside cover page of this Official Statement.
Payments of Principal and Interest. Interest on the Bonds will be payable on May 1 and November 1 in each year, beginning [April] 1, 2025 (each an “Interest Payment Date”). Principal on the Bonds will be payable on November 1 in the amounts and in the years set forth on the inside front cover of this Official Statement.
While the Bonds are subject to the book-entry system, the principal, interest and any prepayment premium with respect to the Bonds will be paid by the Trustee to DTC for subsequent disbursement to beneficial owners of the Bonds. See “− Book-Entry Only System” below.
Interest with respect to any Bond will be payable on each Interest Payment Date to the Owner thereof as of the close of business on the Record Date, such interest to be paid by check or draft of the Trustee, mailed by first-class mail, no later than the Interest Payment Date to the Owner at such Owner’s address as it appears on the registration book maintained by the Trustee; provided however that at the written request of the Owner of at least $1,000,000 in aggregate principal amount of Outstanding Bonds filed with the Trustee prior to any Record Date, interest on such Bonds will be paid to such Owner on each succeeding Interest Payment Date (unless such request has been revoked in writing), by wire transfer in immediately available funds to an account in the United States of America designated by written request. Payments of defaulted interest will be paid by check or draft to the Owners as of a special record date to be fixed by the Trustee, notice of which special record date will be given to the Owners of the Bonds not less than 10 days prior thereto.
The principal of and premium, if any, and interest on the Bonds are payable by check when due upon surrender thereof at the Trust Office in lawful money of the United States of America.
Calculation of Interest. Each Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless: (i) it is authenticated during the period from the day after the Record Date for an Interest Payment Date to and including such Interest Payment Date, in which event it will bear interest from such Interest Payment Date, or (ii) it is authenticated on or prior to the Record Date for the first Interest Payment Date, in which event it will bear interest from its dated date, provided however, that if at the time of registration of any Bond, interest with 10 62908452.v3
respect to such Bond is in default, such Bond will bear interest from the Interest Payment Date to which interest has been paid or made available for payment with respect to such Bond.
Notwithstanding the foregoing, if, at the time of registration of any Bond, interest with respect to such Bond is in default, such Bond will bear interest from the Interest Payment Date to which interest has been paid or made available for payment with respect to such Bond.
Transfer, Registration and Exchange
See “APPENDIX C − SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” for a description of the provisions of the Indenture relating to the transfer, registration and exchange of the Bonds.
Redemption
Optional Redemption. The Bonds maturing on or after [November 1, 2035], shall be subject to redemption prior to their respective maturity dates on any date on or after [November 1, 2034], as a whole or in part, from prepayments of Base Rental made at the option of the City under the Sublease on any date with respect to which such prepayment have been made. The Bonds called for optional redemption shall be redeemed at a redemption price equal to 100 percent of the principal amount of the Bonds to be redeemed, without premium, plus accrued interest thereon to the date of redemption.
Mandatory Sinking Fund Redemption. The Bonds maturing on November 1, 20__ and November 1, 20__ (the “Term Bonds”) shall be subject to redemption in part by lot from sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed with accrued interest thereon to the redemption date, without premium, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, if some but not all of the Term Bonds of a maturity have been redeemed pursuant to the optional and extraordinary redemption provisions of the Indenture, each future sinking account payment with respect to such Term Bonds will be reduced on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, so that the total amount of sinking account payments with respect to such Term Bonds to be made subsequent to the optional and extraordinary redemption provisions of the Indenture shall be reduced by an amount equal to the principal amount of the Term Bonds so redeemed, all as shall be designated pursuant to written notice filed by the Authority with the Trustee:
Bonds Maturing on November 1, 20__
Redemption Date
(November 1)
Principal Amount
to be Redeemed
______________
* maturity
11 62908452.v3
Bonds Maturing on November 1, 20__
Redemption Date
(November 1)
Principal Amount
to be Redeemed
______________
* maturity
Extraordinary Redemption from Insurance and Condemnation Proceeds. The Bonds are subject to redemption prior to their respective maturity dates, upon notice as provided below, as a whole or in part on a pro rata basis (as much as practicable) among the maturities, on any date, from amounts on deposit in the Redemption Fund pursuant the Sublease (from Net Proceeds received by the City from insurance payments or condemnation awards with respect to the Leased Property or any portion thereof under the circumstances and upon the conditions and terms prescribed in the Sublease, together with additional money, if any, transferred by the City at its discretion for such purpose). Extraordinary redemption will be made at a redemption price equal to the sum of the principal of the Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption, without premium.
Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all the Bonds, the Trustee will select the Bonds to be redeemed from the all Outstanding Bonds or such given portion thereof not previously called for redemption, on a pro rata basis among the maturities (unless the maturity or maturities are otherwise specified in the Indenture or in writing by the Authority, and by lot within a maturity in any manner which the Trustee in its discretion deems appropriate, subject to the procedures of the depository (if applicable). For purposes of such selection, all Bonds will be deemed to be comprised of separate $5,000 portions and such portions will be treated as separate Bonds, which may be separately redeemed.
Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority will execute, and the Trustee will authenticate and deliver, to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond being redeemed. A partial redemption will be valid upon payment of the amount required to be paid to the Owner, and the Authority and the Trustee will be released and discharged from all liability to the extent of such payment.
Notice of Redemption. The Authority will give written notice of its intention to redeem Bonds under the optional or extraordinary redemption provisions of the Indenture to the Trustee at least 45 days before the proposed redemption date; provided, that the Trustee may accept a shorter notice period or waive such notice requirement at the Trustee’s sole discretion. The Trustee, on behalf and at the expense of the Authority, will send by first class mail (or if the Owner of such Bonds is a depository, by such method as acceptable to such depository) notice of any redemption to (i) the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, (ii) to the Securities Depositories and (iii) to one or more Information Services by such manner of delivery as then acceptable to such entities, at least 30 but not more than 60 days prior to the date fixed for redemption; provided, however, that neither failure to receive any such notice so sent nor any defect therein will affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. 12 62908452.v3
Such notice of redemption will state the date of the notice, the redemption date, the redemption place, the redemption price and will specify the CUSIP numbers, the Bond numbers and the maturity or maturities (in the event of redemption of all of the Bonds of such maturity or maturities in whole) of the Bonds to be redeemed, and will require that such Bonds be then surrendered at the Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date.
Neither the Authority nor the Trustee will have any responsibility for any defect in the CUSIP number that appears on any Bond or in any redemption notice with respect thereto, and any such redemption notice may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Authority nor the Trustee will be liable for any inaccuracy in such numbers.
Right to Rescind Optional Redemption. The Authority (upon direction by the City, at the City’s option) may rescind any optional redemption by written notice to the Trustee on or prior to the date fixed for redemption. In addition, any notice of optional redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default under the Indenture. The Authority, the City and the Trustee shall have no liability to the Owners or any other party related to or arising from such rescission.
Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all of the Bonds, the Trustee shall select the Bonds to be redeemed from all Outstanding Bonds or such given portion thereof not previously called for redemption, on a pro rata basis among the maturities (unless the maturity or maturities are otherwise specified in this Indenture or in writing by the Authority) and by lot within a maturity in any manner which the Trustee in its discretion shall deem appropriate, subject to the procedures of the depository (if applicable). For purposes of such selection, all Bonds shall be deemed to be comprised of separate $5,000 portions and such portions shall be treated as separate Bonds, which may be separately redeemed.
Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond being redeemed. A partial redemption shall be valid upon payment of the amount required to be paid to the Owner, and the Authority and the Trustee shall be released and discharged from all liability to the extent of such payment.
Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price, and no interest will accrue thereon from and after the redemption date. All Bonds redeemed pursuant to the Indenture will be canceled by the Trustee. All moneys held by or on behalf of the Trustee for the payment of principal of or interest or premium on Bonds, whether at redemption or maturity, will be held in trust for the account of the Owners thereof and the Trustee will not be required to pay Owners any interest on, or be liable to Owners for any interest earned on, moneys so held. 13 62908452.v3
Book-Entry Only System
The Bonds will be issued as fully registered bonds in book-entry only form, registered in the name of Cede & Co. as nominee of DTC, and will be available to ultimate purchasers in the denomination of $5,000 or any integral multiple of $5,000, under the book-entry system maintained by DTC. While the Bonds are subject to the book-entry system, the principal, interest and any redemption premium with respect to a Bond will be paid by the Trustee to DTC, which in turn is obligated to remit such payment to its DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds. Purchasers of the Bonds will not receive certificates representing their interests therein, which will be held at DTC. See “APPENDIX F – DTC AND THE BOOK-ENTRY ONLY SYSTEM” for further information regarding DTC and the book-entry system.
SECURITY FOR THE BONDS
The principal of and interest on the Bonds are not a debt of the Authority or the City, nor a legal or equitable pledge, charge, lien or encumbrance, upon any of their respective property, or upon any of their income, receipts, or revenues except the Revenues and other amounts pledged under the Indenture.
This section provides summaries of the security for the Bonds and certain provisions of the Indenture, the Sublease and the Lease. See “APPENDIX C – Summary of Principal Legal Documents” for a more complete summary of the Indenture, the Sublease, the Lease and the Assignment Agreement. Capitalized terms used but not defined in this section have the meanings given in APPENDIX C.
Revenues; Pledge of Revenues
Pledge of Revenues and Other Amounts. Under the Indenture, subject to the lien in favor of the trustee for certain fees and costs, the Bonds will be secured by a first lien on and pledge (which shall be effected in the manner and to the extent provided in the Indenture) of all of the Revenues and a pledge of all the moneys in the Lease Revenue Fund, including all amounts derived from the investments of such moneys.
The Bonds will be equally secured by a pledge, charge and lien upon the Revenues and such moneys without priority for number, date of the Bonds, date of execution or date of delivery; and the payment of the interest on and principal of the Bonds and any premiums upon the redemption of any portion thereof will be and are secured by an exclusive pledge, charge and lien upon the Revenues and such moneys.
So long as any of the Bonds remain Outstanding, the Revenues will not be used for any other purpose; except that out of the Revenues and such moneys there may be apportioned such sums in the Lease Revenue Fund, for such purposes, as are expressly permitted under the Indenture.
Definition of Revenues. “Revenues” are defined in the Indenture as (a) all Base Rental Payments payable by the City pursuant to the Sublease (including prepayments); (b) any proceeds of Bonds originally deposited with the Trustee and held by the Trustee in the Lease Revenue Fund and the accounts thereof; (c) investment income with respect to any moneys held by the Trustee in the Lease Revenue Fund and the accounts thereof (other than amounts payable to the United States of America pursuant to tax-exemption law requirements); and (d) any insurance proceeds or condemnation awards received by or payable to the Trustee with respect to the Leased Properties, including rental interruption insurance.
14 62908452.v3
Revenues Held in Trust. Except as otherwise provided in the provisions of the Indenture concerning the investment of moneys in funds, all Revenues to which the Authority may at any time be entitled will be paid directly to the Trustee and all of the Revenues collected or received by the Authority will be deemed to be held in trust and to have been collected or received by the Authority as the agent of the Trustee, and if received by the Authority at any time will be deposited by the Authority with the Trustee.
Allocation of Revenues by Trustee; Application of Funds Transfers from the Lease Revenue Fund. All Base Rental Payments will be deposited by the Trustee in a special fund designated as the Lease Revenue Fund (the “Lease Revenue Fund”), which the Trustee will establish, maintain and hold in trust under the Indenture.
Under the Indenture, on or before each Interest Payment Date, the Trustee will transfer from the Lease Revenue Fund and deposit into the following respective accounts, each of which the Trustee will establish and maintain within the Lease Revenue Fund, and the moneys in each of which will be disbursed and applied only as authorized in the Indenture. Revenues will be deposited in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any transfer is made to any fund subsequent in priority:
Interest Account. On or before each Interest Payment Date, the Trustee will deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest becoming due and payable on such Interest Payment Date on all Outstanding Bonds. No deposit need be made into the Interest Account if the amount contained therein is at least equal to the interest becoming due and payable upon all Outstanding Bonds on each succeeding Interest Payment Date within the then current Bond Year.
All moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it becomes due and payable (including accrued interest on any Bonds redeemed prior to maturity pursuant to the Indenture).
Principal Account. On or before each Interest Payment Date, the Trustee will deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds maturing or required to be redeemed through mandatory sinking account redemption on such Interest Payment Date. All moneys in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds.
Surplus. On or promptly after each Interest Payment Date, Trustee will determine the amount, if any, remaining in the Lease Revenue Fund after making the deposits required by the paragraphs above and the transfers of investment earnings pursuant to the Indenture, and shall notify the City of the amount so determined. The Trustee will apply such amount as a credit against the next following Base Rental Payment; provided however, if directed in a Request of the City, the Trustee will, with respect to all or any portion of such amount, pay, or set an amount aside for the payment of, any rebate requirement in accordance with a computation made by the City pursuant to the Code, or if no such rebate requirement is then due, release to the City for use for any lawful purpose.
15 62908452.v3
Base Rental
Requirement to Make Base Rental. Under the Sublease, the City agrees to pay to the Authority, its successors or assigns, as rental for the use and possession of the Leased Property (subject to the provisions of the Sublease concerning the rental interruption insurance and rental abatement), the amounts at the times specified in and in accordance with the Base Rental Payment Schedule set forth in the Sublease, less any amount credited against Base Rental Payments pursuant to the Indenture.
Base Rental Payments will be payable in arrears 5 days before each Interest Payment Date during the term of the Sublease, and will be made in consideration for the City’s use and possession of the Leased Property for the six month period preceding the date of such payment. The Authority has assigned its right to receive Base Rental Payments to the Trustee.
Payment in Installments. Each installment of Base Rental payable under the Sublease and each installment of Additional Rental (as described under the heading “− Additional Rental”) payable under the Sublease will be paid in lawful money of the United States of America to the order of the Trustee at the corporate trust office of the Trustee in Los Angeles, California, or such other place as the Trustee designates.
Offsets and Credits. Notwithstanding any dispute between the City and the Authority, the City is obligated to make all rental payments when due under the Sublease, without deduction or offset of any kind and will not withhold any rental payments pending the final resolution of such dispute. In the event of a determination that the City was not liable for said rental payments or any portion thereof, the payments or excess of payments, as the case may be, at the option of the City, will be credited against subsequent rental payments due under the Sublease or be refunded at the time of such determination.
Additional Rental
Under the Sublease, the City will also pay as Additional Rental, in addition to the Base Rental, to the Authority or to the Trustee, such amounts in each year as will be required for the payment of all costs and expenses (not otherwise paid for or provided for out of the proceeds of sale of the Bonds) incurred by the Authority or the Trustee in connection with the execution, performance or enforcement of the Sublease or the assignment thereof, the Indenture, or the Authority’s or the Trustee’s respective interests in the Leased Property, including, but not limited to:
(i) All fees, costs and expenses.
(ii) All administrative costs of the Authority relating to the Leased Property (including, without limiting the generality of the foregoing, salaries and wages of employees, overhead, insurance premiums, taxes and assessments (if any), expenses, compensation and indemnification of the Trustee payable by the Authority under the Indenture).
(iii) Fees of auditors, accountants, attorneys or engineers, and all other reasonable and necessary administrative costs of the Authority or charges required to be paid by it to comply with the terms of the Bonds or of the Indenture.
16 62908452.v3
Fair Rental Value
The payments of the Base Rental and Additional Rental for each rental payment period during the term of the Sublease will constitute the total rental for said rental payment period, and will be paid by the City in each rental payment period for and in consideration of the right of the use and possession of, and the continued quiet use and enjoyment of, the Leased Property during each such period for which said rental is to be paid.
The City and the Authority have agreed and determined that such total rental does not exceed the fair rental value of the Leased Property for each such period. In making such determination, consideration has been given to other obligations of the parties under the Sublease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public.
Notwithstanding any other provision of the Sublease, if rental payments are abated for any period of time, the resulting Base Rental in any year during which such interference continues will not exceed the fair rental value of the portions of the Leased Property as to which such damage, destruction, taking or impairment do not substantially interfere with the City’s use and right of possession. See “– Abatement” below.
Limited Obligation
The Bonds are special obligations of the Authority, payable solely from and secured by a pledge of the Revenues as specified herein and in the Indenture. Neither the payment of the principal of the Bonds, nor any interest thereon, constitutes a debt, liability or obligation of the City, Authority or State of California. The obligation of the City to pay the Base Rental or Additional Rental does not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
Source of Payments; Covenant to Appropriate Funds for Base Rental Under the Sublease, the City covenants to take such action as may be necessary to include all Base Rental and Additional Rental payments due under the Sublease in its annual budget and to make necessary annual appropriations for all such rental payments. If the City’s adopted annual budget for any fiscal year fails to include sufficient appropriation for the scheduled Base Rental Payments and Additional Rental payments for the such fiscal year, the City shall give written notice to the Authority and the Trustee of such failure as soon as practical, but in any event within ten Business Days of the adoption of such annual budget.
Such covenants will be deemed to be and will be construed to be duties imposed by law and it will be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements agreed to be carried out and performed by the City in the Sublease; provided, the obligation of the City to make Base Rental or Additional Rental payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation.
Abatement
General. The obligation of the City to pay Base Rental and Additional Rental will be abated during any period in which, by reason of any damage, destruction, condemnation or impairment of 17 62908452.v3
leasehold interest, there is substantial interference with the use and occupancy of the Leased Property or any portion thereof by the City.
Except as set forth therein, in the event of any damage, destruction of condemnation, the Sublease will continue in full force and effect and the City waives any right to terminate the Sublease by virtue of such damage, destruction or condemnation. Under the Sublease, the City waives the benefits of California Civil Code Sections 1932(1), 1932(2), 1933(4), 1941, and 1942.
The abatement will be in an amount agreed upon by the City and the Authority such that the resulting Base Rental in any year during which such interference continues does not exceed the fair rental value of the portions of the Leased Property as to which such damage, destruction, taking or impairment do not substantially interfere with the City’s use and right of possession. Such abatement will continue for the period commencing with the date of such interference and ending with the restoration of the relevant Leased Property to tenantable condition.
Proceeds of Rental Interruption Insurance. Under the Sublease, the City acknowledges and agrees that during any period of abatement with respect to all or any part of the Leased Property, proceeds of rental interruption insurance maintained under the Sublease will be used to pay Annual Debt Service on the Bonds to the extent necessary to restore the balance therein to the Reserve Requirement, and any proceeds of such insurance not so used shall be applied as provided in the Indenture to the extent required to pay administrative costs of the Authority in connection with the Leased Property. See “– Covenants to Maintain Insurance − Rental Interruption Insurance.”
Additional Bonds
Under the Indenture, the Authority may from time to time issue one or more series of Additional Bonds payable from and secured by Revenues on parity with all other Outstanding Bonds. In addition, the City is permitted to enter into other obligations which constitute additional charges against its revenues without the consent of Owners of the Bonds.
Additional Bonds may be issued pursuant to a Supplemental Indenture, which shall specify:
(i) the maturity date or dates of such Additional Bonds, which shall be November 1 in any given year; (ii) the interest payment dates, which shall be May 1 and November 1; (iii) the terms, if any, for call and redemption of such Additional Bonds prior to maturity; and (iv) the interest rate or rates on such Additional Bonds and any other matters deemed appropriate or necessary and not inconsistent with the provisions of the Indenture.
In addition, there shall be provided a Certificate of the Authority: (i) certifying that the Authority is in compliance in all material respects with all agreement and covenants contained in the Indenture and that no Event of Default has occurred or is continuing; (ii) stating that the Authority and the City have entered into an amendment to the Sublease pursuant to which the City is obligated to make Base Rental Payments at times and in amounts sufficient to provide for payment of the principal of and interest on the Bonds (including such Additional Bonds) which will be Outstanding following the sale and delivery of such Additional Bonds; and (iii) containing such additional statements as may be reasonably necessary to show compliance with the requirements of the Indenture.
Default; Remedies
City Default and Remedies. The City will be deemed to be in default under the Sublease if the following occurs: default in the observance or performance of any agreement, condition, 18 62908452.v3
covenant or term contained in the Sublease required to be observed or performed by the City (including, without limitation, the payment of any Base Rental or Additional Rental due under the Sublease; provided that non-payment of Base Rental or Additional Rental during any period of abatement under the Sublease will not be deemed a default), subject to the provisions of the Sublease.
The Trustee, as assignee of the Authority, may at any time after default by the City (with or without notice and demand and without limiting any other rights or remedies the Authority may have), recover rent and other monetary charges as they become due under the Sublease without terminating the City’s right to possession of the Leased Property (regardless of whether or not the City has abandoned the Leased Property).
Furthermore, upon the occurrence of such a default by the City, the Trustee, as assignee of the Authority, will have the right, and the City irrevocably appoints the Authority as its agent and attorney-in-fact for such purpose, to attempt to relet the Leased Property at such rent, upon such conditions and for such term, and to do all other acts to maintain or preserve the Leased Property, including the removal of persons or property therefrom or taking possession thereof, as the Authority deems desirable or necessary. Under the Sublease, the City waives any and all claims for any damages that may result to the Leased Property upon any action taken by the Authority in event of default.
No such action taken by the Trustee, as assignee of the Authority, upon the City’s default under the Sublease (as described above) will be deemed to terminate the Lease or the Sublease and the City will continue to remain liable for any deficiency that may arise out of such reletting, taking into account expenses incurred by the Authority due to such reletting, payable at the same time and manner as provided for Base Rental in the Sublease.
Authority Default and Remedies. The Authority will be deemed to be in default under the Indenture if the following occurs:
(a) (i) Default in the due and punctual payment of the
principal of or premium on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed, or by proceedings for redemption. (b) (ii) Default in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable.
(iii) Upon the happening of any of certain other events specified in the Indenture.
The Trustee under the Indenture, and as assignee of the Authority under the Sublease and the Indenture, may exercise any and all remedies available pursuant to law (other than those specifically waived in the Indenture, the Lease, and the Sublease) upon the occurrence of any default and will have the right to do any of the following:
(c) (i) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the Authority or any member, officer or employee thereof, in order to compel the Authority or any such member, officer or employee to perform and carry out its or his or her duties under law and the agreements and covenants required to be performed by it or him or her contained in the Indenture; 19 62908452.v3
(d) (ii) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Trustee; or
(e) (iii) by suit in equity upon the happening of an Event of Default to require the Authority and its members, officers and employees to account as the trustee of an express trust.
Covenants to Maintain Insurance
Title Insurance. Under the Sublease, the City is required to obtain one or more California Land Title Association insurance policies (or, at the City’s sole discretion, American Land Title Association insurance policies) at the time of and dated as of the Closing Date in an aggregate amount not less than the aggregate principal amount of the Bonds, payable to the Trustee, insuring the respective interests of the City and the Authority in the Leased Property, and insuring the validity of the Sublease, subject only to Permitted Encumbrances, naming the Trustee as an insured thereunder, issued by a title insurance company qualified to do business in the State of California and acceptable to the Trustee.
Fire and Extended Coverage Insurance. Under the Sublease, the City is required to maintain or cause to be maintained fire, lightning and extended coverage insurance on the Leased Property in an amount equal to:
(i) 100 percent of the then current replacement cost of the Leased Property, excluding the then fair market value of the land as unimproved; or (ii) the principal amount of all outstanding Bonds, whichever is less (except that such insurance may be subject to a deductible clause not to exceed 10 percent of the amount of such policy).
Earthquake insurance will be maintained on the Leased Property only if available on the open market from reputable insurance companies at a reasonable cost. The City does not currently maintain earthquake insurance on the Leased Property and does not expect to purchase earthquake insurance at this time.
The extended coverage endorsement will, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke, vandalism, malicious mischief, dumping or other deposit of any pollutant or other debris and such other hazards as are normally covered by such endorsement. Each such policy of insurance will be in form reasonably satisfactory to the Authority, and will contain a clause naming the Trustee as an additional insured and making all losses payable to the Trustee, and all proceeds thereof shall be paid over to the party contractually responsible for making repairs of casualty damage.
In the event of any damage to or destruction of the Leased Property caused by the perils covered by such insurance, the proceeds of such insurance will be utilized to repair, reconstruct or replace the Leased Property to the end that the project will be restored to at least the same condition that it was in prior to such damage or destruction. Any balance of such proceeds not required for such repair, reconstruction or replacement will be transferred to the Authority and treated as Revenues and applied in the manner provided in the Indenture.
Liability Insurance. Under the Sublease, the City is required to maintain or cause to be maintained public liability insurance with limits of not less than $3,000,000 for one person and $5,000,000 for more than one person involved in one accident to protect the Authority and the 20 62908452.v3
Trustee from all direct or contingent loss or liability for damages for bodily injury or death occasioned by reason of the construction, condition or operation of the Leased Property. The City will also maintain or cause to be maintained insurance against liability for property damage resulting from any casualty attributable to the operation of the project in an amount not less than $1,000,000 for each accident. The public liability insurance and property damage insurance may be subject to a deductible clause for any one accident of not to exceed $250,000. The insurance coverage required by the Sublease may be effected by blanket policies covering the Leased Property issued to the party contractually responsible for the maintenance and operation of the project and such insurance policy or policies shall name the Trustee as an additional insured.
Rental Interruption Insurance. The City is required under the Sublease to maintain or cause to be maintained or use and occupancy insurance to cover loss, total or partial, of the use of the Leased Property as a result of any of the hazards covered by the insurance required by the Fire and Extended Coverage Insurance section above, in an amount not less than the total rent payable by the City under this Sublease for a period of any future 24 months.
Any such insurance policy will be in form satisfactory to the Authority and will contain a clause naming the Trustee as an additional insured and making any loss thereunder payable to the Trustee as its interests may appear. Any proceeds of such insurance will be used by the Trustee to pay Annual Debt Service on the Outstanding Bonds for the period during which the payment of rental under the Sublease is abated, and any proceeds of such insurance not so used will be applied as provided in the Indenture to the extent required to pay administrative costs of the Authority in connection with the Leased Property.
Self-Insurance. As an alternative to providing the insurance required by the “Liability Insurance” description above, the City may provide or cause to be provided a self-insurance method or plan of protection if and to the extent such self-insurance method or plan of protection shall afford reasonable protection to the City and the Authority, and their directors, officers, agents and employees and the Trustee, its directors, officers, agents and employees in light of all circumstances, giving consideration to cost, availability and similar plans or methods of protection adopted by public entities in the State of California other than the City; provided that the obligation of the Authority or City to make payments under such self-insurance shall be limited to money in a designated fund balance established by the Authority or City and that the Authority or City shall not be obligated to replenish such designated fund balance from the General Fund or be otherwise obligated to make payments except from such designated fund balance. After the Commencement Date, before any substitute method or plan may be provided by the City, there shall be filed with the Trustee a certificate of an actuary, independent insurance consultant or other qualified person, stating that, in the opinion of the signer, the substitute method or plan of protection is in accordance with the requirements of this Section and, when effective, would afford adequate protection to the City and the Authority, and their directors, officers, agents and employees and the Trustee and its directors, officers, agents and employees against loss and damage from the hazards and risks covered thereby; provided, however, that in the event the City provides a self-insurance method or plan of protection for the insurance required by the “Rental Interruption Insurance” description above, the designated fund balance established by the City shall be funded in an amount at least equal to the greatest of the aggregate Base Rental payable by the City under the Sublease for a period of any future 24 months.
Moreover, as an alternative to providing the insurance required by the “Rental Interruption Insurance” description above, the City may provide a self-insurance method or plan of protection through the California Insurance Pool Authority (or another insurance risk sharing pool joint powers authority formed in the State) or any successor entity as the City may reasonably determine. 21 62908452.v3
Damage, Destruction and Condemnation; Net Proceeds
If the whole, or any portion, of the Leased Property is destroyed (in whole or in part) or is damaged by fire of other casualty or taken by eminent domain proceedings (or sold to a government threatening to exercise the power of eminent domain), or the leasehold title in all or a portion of the Leased Property is materially impaired by reason of a defect in title, then (a) the City, but only to the extent permitted by law, shall substitute other property for the portion of the Leased Property that has been destroyed, or taken, or affected by the defective title in accordance with the Sublease; or
(b) the City shall require the Net Proceeds of any insurance payment (other than the Net Proceeds of rental interruption insurance which shall be applied pursuant to the Sublease) or any condemnation award to be held by the Trustee in the Insurance and Condemnation Fund established under the Indenture to be applied and disbursed by the Trustee as follows:
(i) If less than all of the Leased Property shall have been so destroyed or taken or affected by defective title and the remainder is usable, then the Sublease shall continue in full force and effect as to such remainder and (A) if the portion taken or destroyed is replaced by one or more properties of equal or greater fair market value (as demonstrated by an MAI fair market appraisal), the Trustee upon written direction of the City shall disburse such proceeds to the party that incurred the expense of making such replacement and there shall not be any abatement of the Base Rental under this Sublease; or (B) failing the making of such replacement, there shall be a partial abatement of the Base Rental under the Sublease and the Trustee shall apply such Net Proceeds, together with any other money then available to it for such purpose, to the Redemption Fund under the Indenture for the redemption of outstanding Bonds.
(ii) If less than all of the Leased Property shall have been so destroyed or taken or affected by defective title and the remainder is not usable, or if all of the Leased Property shall have been so destroyed or taken or affected by the defective title, then the term of the Sublease shall cease as of the day that possession shall be so taken; and the Trustee shall apply such Net Proceeds, together with any other money then available to it for such purpose, to the Redemption Fund under the Indenture for the redemption of outstanding Bonds.
See “THE BONDS – Redemption – Extraordinary Redemption.”
MUNICIPAL BOND INSURANCE POLICY
The following information has been furnished by the Municipal Bond Insurer for use in this Official Statement. No representation is made as to the accuracy or completeness of this information, or the absence of material adverse changes therein at any time subsequent to the date hereof. Reference is made to APPENDIX G for a specimen of the Insurance Policy. [to come]
THE AUTHORITY
The Hawthorne Public Financing Authority (the “Authority”) was established pursuant to a Joint Exercise of Powers Agreement, dated as of November 23, 1992, by and between the City and the Community Redevelopment Agency of the City of Hawthorne, in accordance with the provisions of Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government 22 62908452.v3
Code (the “Joint Powers Law”). The Authority was created for the purpose of assisting in the financing and refinancing of public capital improvements for the City. Under the Marks-Roos Local Bond Pooling Act of 1985 (California Government Code Section 6854 et seq.), the Authority has the power to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public or negotiated sale. The Authority is governed by a five-member Board of Directors which consists of the City Council of the City. The Chairman of the Authority is the Mayor of the City, and the Vice-Chairman of the Authority is the Mayor Pro Tem of the City. The City Manager acts as its Executive Director, the City Clerk acts as its Secretary, and the Finance Director acts as its Treasurer.
The Authority has no taxing power. The Authority and the City are each separate and distinct legal entities, and the debts and obligations of one such entity are not debts or obligations of the other entity.
THE CITY
General
Incorporated in 1922, the City of Hawthorne has a population of approximately 85,566 as of January 1, 2024, within a six square mile area. Located near the Los Angeles International Airport, connected by rail to the Port of Los Angeles and downtown Los Angeles, and surrounded by the San Diego (I-405), Harbor (I-110), and Glenn M. Anderson (I-105) Freeways, the City is a transportation hub to the South Bay region of Los Angeles County. The City is the headquarters for several manufacturing and aerospace companies, including Tesla Motors (which has its design center at the Hawthorne Municipal Airport), SpaceX and OSI Systems. To the north of the City is the unincorporated community of Lennox and the city of Inglewood. To the east is the unincorporated community of Athens and the city of Gardena. To the south is the unincorporated community of El Camino Village, and the cities of Lawndale and Redondo Beach. Manhattan Beach is at the southwest corner of Hawthorne, and the city of El Segundo is to the west of Hawthorne.
The unincorporated community of Del Aire is surrounded on three sides by the city of Hawthorne along the western edge of Hawthorne.
The County Los Angeles County (the “County”) was established by an act of the State Legislature on February 18, 1850 as one of California's original 27 counties. Located in the southern portion of the State, the County covers 4,083 square miles. With a population of over nine million, its population is the largest of any county in the nation and is largest non–state level governmental entity in the United States.. The County serves as the central trade district for the western United States and the gateway to the Asian economies. The County has 88 incorporated cities and many unincorporated areas and, at 4,083 square miles (10,570 km2 ), it is larger than the combined areas of Delaware and Rhode Island. The County is home to more than one-quarter of California’s residents and is one of the most ethnically diverse counties in the U.S.
The City provides a wide range of services, including police protection, public works, storm drainage, planning and development, park and landscape maintenance, code enforcement, building inspection, and administration. Fire protection and library services are provided by Los Angeles County. Many recreation programs for all age groups and services for the mature adult population are provided year round. The City provides for trash collection services through a contracted third party.
City Government
The City is a general law city, which was incorporated in 1992. The City is governed by the council-manager form of municipal government. The City Council is composed of five members 23 62908452.v3
elected biennially at-large to four-year overlapping terms. The Mayor is elected annually by the residents to serve a four-year term. The City Manager is appointed by the City Council and is responsible for implementing the policies, ordinances and directives of the City Council and for overseeing the day to day operations of the City. The City Attorney and Chief of Police are also appointed directly by the Council. The City currently employs approximately 361 regular employees (246 full time, and 115 part-time).
The current members of the City Council are as follows:
Name and Office Current Term Expires
Alex Vargas, Mayor December 2024
Katrina Manning, Mayor Pro Tempore December 2026
Angie Reyes English, Council Member December 2024
Alex Monteiro, Council Member December 2026
L. David Patterson, Council Member December 2024
Below are brief biographies of the City Manager and the Finance Director:
Vontray Norris, City Manager. Vontray Norris joined the City of Hawthorne in 2017 as the Community Service Manager for the Community Service Department. Mr. Norris was appointed as Interim City Manager on April 14, 2021 prior to being appointed as City Manager on October 13, 2021. Mr. Norris’ contract to serve as City Manager was renewed on December 12, 2023 through December 12, 2027. Mr. Norris was raised in the Holly Park area of Hawthorne, and attended St.
Bernard High School in Playa del Rey, California. He attended California State University, Long Beach obtaining a Bachelor of Arts Degree in Recreation and Leisure Studies with an emphasis in Municipal Recreation. Prior to working for the City of Hawthorne, Mr. Norris worked for the City of Los Angeles Department of Recreation and Parks. His career has provided him with over 23 years of experience in Municipal Recreation serving in multiple capacities, which includes managing multiple recreation facilities and providing leadership training to other recreation professionals.
Felice Lopez, Director of Finance. Felice Lopez joined the City of Hawthorne in 2004, as Payroll Technician and shortly thereafter, was promoted to Accountant I in 2006, and to Accounting Supervisor in 2011. Ms. Lopez was appointed Acting Director of Finance in May 2018. After a lengthy recruitment process, Ms. Lopez became the Director of Finance in February 2019, overseeing the General Ledger, Annual Audits, Budget preparation, Payroll, and Grant administration Functions. Ms. Lopez attended Loyola Marymount University, where she earned a Bachelor of Business Administration in 1991. She has over 25 years of experience in all areas of Accounting/Finance.
Population
The City’s population was approximately 85,566 as of January 1, 2024, according to the California State Department of Finance’s estimates. The table below shows the population and population growth in the City and the County from January 1, 2015 through January 1, 2024:
24 62908452.v3
TABLE 1
City of Hawthorne
City and County Population
2015 through 2024
City County
Year (1) Population Growth Rate Population Growth Rate
2015 88,146 -- 10,124,800 --
2016 88,318 0.20% 10,150,386 0.25
2017 88,197 -0.14 10,181,162 0.30
2018 88,144 -0.06 10,192,593 0.11
2019 87,827 -0.36 10,163,139 -0.29
2020 87,571 -0.29 10,135,614 -0.27
2021 87,505 -0.08 9,955,445 -1.78
2022 86,539 -1.10 9,861,493 -0.94
2023 85,886 -0.75 9,819,312 -0.43
2024 85,566 -0.37 9,824,091 0.05
__________
(1) As of January 1 of each year.
Source: State of California, Department of Finance.
Employment
The following table shows certain employment statistics for the City and the County for the last five calendar years.
TABLE 2
City of Hawthorne
City and County Employment Statistics
Calendar Years 2020 through 2024(1)
City County
Year
Labor
Force Employed
Unemployment
Number
Unemployment
Rate
Unemployment
Rate
2020 43,900 37,500 6,400 14.6% 12.3%
2021 43,700 39,200 4,600 10.4 9.0
2022 43,100 40,900 2,200 5.0 5.0
2023 43,000 40,900 2,100 4.8 5.0
2024(2) 43,000 40,900 2,200 5.0 5.2
_____________
(1) Data not seasonally adjusted. Figures represent the 12-month average for each such year. (2) Preliminary, as of May 2024.
Source: State of California, Employment Development Department. 25 62908452.v3
The following table lists the City’s major area employers in calendar year 2023.
TABLE 3
City of Hawthorne
Major Area Employers
2023
Employer Employees
% of total City
Employment
SpaceX - Space Exploration Technologies(1) 6,992 16.37% Hawthorne School District 1,029 2.41
Amazon Fulfillment Center 606 1.42
Wiseburn Unified School District 489 1.15
OSI Systems Inc. 277 0.65
Home Depot(2) 260 0.61
Teledyne Relays 255 0.60
Ring Headquarters 250 0.59
City of Hawthorne 237 0.56
South Bay Ford 206 0.48
Total 10,601 24.83%
Total City Employment(2) 42,700(3)
_____________
(1) On July 16, 2024, SpaceX founder Elon Musk tweeted on X (formerly Twitter) that SpaceX will be moving to Texas.
Since then, there has been no formal announcement by SpaceX. The City does not know if or what date SpaceX plans to move out of the City, nor which departments of SpaceX will locate to Texas. SpaceX paid $260,000 per year in business license taxes to the City from 2012-2022, and $500,000 in 2023 and 2024. In fiscal year 2023-24, SpaceX paid approximately $606,334 in property taxes.
(2) Includes both full-time and part-time employees.
(3) Total City Employment provided by Employment Development Department Labor Force Data.
Source: City of Hawthorne Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023.
Construction Activity
The following is a summary of the construction permits issued by the City for the last five fiscal years.
TABLE 4
City of Hawthorne
Building Permits Issued and Values for Permits Issued
Fiscal Years 2019-20 through 2023-24
Value of Permits Issued
Fiscal Year Building Permits Commercial Residential Total 2019-20 703 $53,028,505.01 $28,329,232.41 $81,357,737.42 2020-21 420 9,283,170.14 19,220,260.78 28,503,430.92
2021-22 393 18,494,182.80 12,273,827.47 30,768,010.27
2022-23 484 10,728,009.02 8,460,743.06 9,188,752.08
2023-24 548 12,139,333.71 19,145,152.79 31,284,486.50
Source: City of Hawthorne.
26 62908452.v3
Labor Relations
The City currently has approximately 361 employees (246 full-time and 115 part-time).
There are currently 90 sworn police officers, and eight department heads. The City Manager, Chief of Police and City Attorney, each have individual employment agreements with the City. The remaining employees are covered by negotiated agreement.
TABLE 5
City of Hawthorne
Negotiated Employee Agreements
Bargaining Unit
Contract
Expiration Date
Number of
Employees
Hawthorne Municipal Employees Association - Full Time June 30, 2027 140 Hawthorne Municipal Employees Association - Part Time June 30, 2027 115 Hawthorne Executive Group June 30, 2027 13
Hawthorne Police Officers Association June 30, 2027 63
Hawthorne Police Management and Supervisory Group June 30, 2027 27 Total 358
___________
Source: City of Hawthorne
27 62908452.v3
The following is a direct and overlapping debt report as of July 1, 2024, prepared by California Municipal Statistics, Inc. This report is included for informational purposes only. Neither the City nor the Authority has reviewed the report for completeness or accuracy and makes no representation in connection therewith.
TABLE 6
City of Hawthorne
Direct and Overlapping Debt
As of July 1, 2024
2023-24 Assessed Valuation: $10,842,229,863
OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 7/1/24 Metropolitan Water District 0.280% $ 50,988
El Camino Community College District 6.720 30,045,413
Los Angeles Community College District 0.079 4,073,118
Los Angeles Unified School District 0.097 9,765,543
Centinela Valley Union High School District 37.703 86,784,532 Centinela Valley Union High School District SFID No. 2016-1 36.210 78,517,764 Inglewood Unified School District 0.038 63,204
Wiseburn Unified School District 14.795 18,299,458
Hawthorne School District 97.236 62,981,235
Lawndale School District 19.401 9,826,607
Lennox School District 7.799 2,742,660
City of Hawthorne Community Facilities District No. 1999-1 100. 2,350,000 City of Hawthorne Community Facilities District No. 2004-1 100. 2,390,000 City of Hawthorne Community Facilities District No. 2006-1 100. 7,830,000 TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT $315,720,522 Less: Los Angeles Unified School District supported general obligation bonds 290,492 TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT $315,430,030 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations 0.541% $ 13,412,633 Los Angeles County Superintendent of Schools Certificates of Participation 0.541 15,458 Los Angeles Unified School District Certificates of Participation 0.097 457,442 Centinela Valley Union High School District Certificates of Participation 58.958 3,339,971 Inglewood Unified School District Certificates of Participation 0.038 399 Hawthorne School District Certificates of Participation 97.236 9,704,153 Lennox School District Certificates of Participation 7.799 260,487 City of Hawthorne General Fund Obligations 100. 18,676,850 (1) City of Hawthorne Pension Obligation Bonds 100. 108,530,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $154,397,393 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100. % $17,435,000 GROSS COMBINED TOTAL DEBT $487,552,915 (2)
NET COMBINED TOTAL DEBT $487,262,423
Ratios to 2023-24 Assessed Valuation:
Total Gross Overlapping Tax and Assessment Debt ..............2.91% Total Net Overlapping Tax and Assessment Debt ..................2.91% Total Direct Debt ($127,206,850) ...........1.17%
Gross Combined Total Debt...................................................4.50% Net Combined Total Debt.......................................................4.49% Ratios to Redevelopment Successor Agency Incremental Valuation ($2,782,924,355):
Total Overlapping Tax and Assessment Debt.........................0.63% _____________
(1) Excludes issue to be sold.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Source: California Municipal Statistics.
28 62908452.v3
CITY FINANCIAL INFORMATION
Budgetary Process
The City’s Municipal Code requires that the annual budget be adopted on or before July 1st of each year. The annual budget serves as the foundation for the City’s financial planning and control. The budget development process begins in December of each year. The finance department updates excel worksheets for each department, which are distribute in February. Each department is responsible for developing the operational line items, while finance staff is responsible for the salary and benefit line items.
The Finance Director, along with the applicable operating departments, provides the City Manager with proposed revenue projections, which are reviewed along with the department expenditure budget requests to determine available funding. Supplemental requests, proposed changes to personnel, equipment and services, are subject to City Manager review and approval. The City Manager and Finance Director meet with each department to review all operating budgets and supplemental requests. Once this review is completed, the proposed budget is presented to the City Council at a public hearing and public workshop. The City Council adopts a budget recommended by the City Manager prior to June 30 of each year.
During the fiscal year, the budget can be amended to meet the City’s needs, with the approval of the City Council. Department heads may only authorize expenditures based on appropriations approved by the City Council, and only from accounts under their organizational responsibility. Total expenditures within each fund may not exceed the total appropriations by that fund. Interfund transfers require budget amendment by the City Council. The City conducts a mid-year budget review that analyzes the operating results for the first half of the fiscal year.
General Fund Reserve Policy
On September 10, 2019, the City Council approved a minimum cash reserve policy to ensure the general fund reserve balance does not fall below three months of average operating expenditures.
This amount is calculated by dividing the budgeted total operating expenditures for the current fiscal year by four.
Debt Policy
The City Council adopted a debt policy for the City in August 2019. The policy specifies the City may consider debt financing for capital improvement projects if the project’s useful life will equal or exceed the term of the financing and when resources are identified sufficient to pay the debt service.
The City may use long term debt financing if the project is approved by the Council, and the City estimates that sufficient revenues will be available to pay debt service through maturity. The City should periodically review outstanding long term debt for potential refunding opportunities, which will be considered if there is a net present value savings of at least three percent of the refunded debt, or to remove restrictive covenants.
29 62908452.v3
Budget
The following table shows the City’s adopted budget for Fiscal Year 2024-25.
TABLE 7
City of Hawthorne
Adopted Budget Summary
Fiscal Year 2024-25
FY 2024-25 Adopted Budget
Revenue
Sales Tax $40,059,374
Intergovernmental-State 14,535,329
Property Taxes 9,486,354
Utility Users Taxes 8,453,791
Business License Taxes 8,000,000
Franchise Fees 6,500,000
Transient Occupancy Tax 7,000,000
Service Charges 4,608,200
Fines & Forfeitures 3,200,000
Licenses & Permits 1,858,719
Other Revenue 2,092,331
Program Contributions 1,300,000
Other Taxes 3,610,063
Rev. Use Of Money 1,500,000
Total Revenue $112,204,161
Expenses
Personnel Costs $59,409,278
Contract Services 22,344,735
Maintenance and Operations 14,720,761
Interdepartmental Charges 5,390,438
Operating Transfers out 7,603,645
Capital Outlay 481,006
Total Expenses $109,949,863
Source: City of Hawthorne Adopted Budget for Fiscal Year 2024-25. 30 62908452.v3
The table below shows the City’s budget and actual results for General Fund revenues and expenditures for the fiscal years shown.
TABLE 8
City of Hawthorne
General Fund Budget Summary
Fiscal Years 2020-21 through 2023-24
FY 2020-21
Adopted
Budget
FY 2020-21
Audited Actual
FY 2021-22
Adopted Budget
FY 2021-22
Audited
Actual
FY 2022-23
Adopted
Budget
FY 2022-23
Audited Actual
FY 2023-24
Adopted Budget
FY 2023-24
Revised MidYear Budget
Revenues
Taxes $69,325,000 $75,978,052 $68,869,000 $88,866,674 $77,222,000 $ 96,697,076 $83,562,000 $84,762,000 Licenses and permits 2,409,000 1,981,724 2,458,400 1,553,744 2,110,900 1,603,989 2,816,000 1,925,000 Intergovernmental 1,128,000 1,359,494 1,274,660 1,269,922 1,626,000 1,651,930 1,526,000 1,567,250 Charges for services 2,382,180 2,158,138 2,209,998 3,021,149 2,937,025 4,577,344(1) 3,995,200 4,695,200(1) Fines and forfeitures 2,800,000 2,806,952 2,600,000 3,268,876 2,600,000 3,410,211 3,200,000 3,200,000 Use of money and property(4) 400,000 129,714 150,000 (1,243,570) 300,000 1,399,385 500,000 1,900,000 Contributions 200,000 200,000 200,000 350,000 200,000 200,000 200,000 200,000 Miscellaneous 1,752,000 1,560,332 1,715,000 1,849,783 1,802,000 2,653,946 1,817,000 1,916,331 Total Revenues $80,396,180 $86,174,406 79,477,058 $98,936,578 $88,797,925 $112,193,881 $97,616,200 $100,165,781 Expenditures
General government $12,846,598 $10,535,067 $12,382,423 $11,453,845 $19,332,918 $19,074,505(2) $18,101,923 $17,333,126(2) Public safety 50,686,074 44,916,957 49,411,272 53,249,352 53,852,234 55,115,459 60,537,829 60,529,529 Community development 2,281,489 2,201,949 2,975,993 2,191,278 3,524,718 2,425,221 4,456,209 4,156,209 Parks and recreation 3,710,219 2,901,385 4,648,037 3,704,975 4,909,215 4,165,633 5,895,768 5,591,768 Public works 2,393,034 1,752,479 2,107,803 1,463,847 3,076,388 2,099,928 3,485,408 2,993,408 Capital Outlay 27,450 -- 22,626 354,526(3) 25,220 14,670,128(3) 459,615 458,115 Total Expenditures $71,944,864 $62,307,837 $71,548,064 $72,417,823 $84,720,693 $97,550,874 $92,936,752 $91,062,155 Excess (deficiency) of revenues
over expenditures $ 8,451,316 $23,866,569 $7,928,994 $26,518,755 $4,077,232 $14,643,007 $4,679,448 $9,103,626 Other Financing Sources (Uses)
Transfers in(2) -- -- -- 1,467,681(2) (6,607) 7,932,039(2) 1,491,940 17,406,282(2) Transfers out (8,345,779) (8,735,843) (7,754,835) (8,907,765) (3,816,779) (7,723,899) (3,300,142) (26,325,142) Subscription acquisition -- -- -- -- -- 387,983
Total other sources (uses) $ (8,345,779) $ (8,735,843) $ (7,754,835) $(7,440,084) $(3,823,386) $ 596,123 (1,808,202) ($8,918,860) Net change in fund balance $ 105,537 $15,130,726 $ 174,159 $19,078,671 $ 253,846 $15,239,130 $2,871,246 $184,766 Beginning Fund Balance 44,643,818 44,643,818 59,774,544 59,774,544 78,853,215 78,853,215 94,092,345 94,092,345 Ending Fund Balance $44,749,355 $59,774,544 $59,948,703 $78,853,215 $79,107,061 $94,092,345 $96,963,591 $94,277,111 ______________________________________
(1) Increase is due to overtime reimbursement for police services to the City of Inglewood for various special events. (2) The City received $30.5 million in funding from the American Rescue Plan Act (ARPA). When ARPA funds need to be spent, they are posted in Other Financing Sources (Uses) - transfers in.
The increase in Expenditures – general government in fiscal years 2022-23 and 2023-24 is attributable to non-recurring ARPA eligible expenditures. (3) In Fiscal Year 2021-22, the City paid a $350,000 deposit for the escrow for the purchase of real property. In Fiscal Year 2022-23, the City purchased a parcel of property referred to as the Bank of America building for $11,135,045 and another parcel for $3,502,875. (4) Fluctuations are due to reporting of net value unrealized gains and losses beginning Fiscal year 2021-22 per required accounting rules.
Source: City of Hawthorne Budgets and Annual Comprehensive Financial Reports for Fiscal Years Ended June 30, 2021, 2022 and 2023. 31 62908452.v3
The City conducted its annual mid-year budget review. This resulted in increased General Fund revenues of $2,549,581 and expenditures of $890,403. As of July 9, 2024, the City has collected approximately 98% of estimated revenues for Fiscal Year 2023-24.
Financial Statements
Set forth in the following pages are the City’s General Fund balance sheets and statements of revenues, expenditures and changes in General Fund balance for fiscal years 2018-19 through 2022- 23, based on the City’s audited financial statements. The balance sheets and statements presented in this Official Statement are subject to the various notes attached to the City’s audited financial statements for the respective years. The City’s Annual Comprehensive Financial Report for fiscal year ended June 30, 2023, which includes the City’s 2022-23 audited financial statements, are set forth in Appendix A.
A complete copy of the City’s Annual Comprehensive Financial Reports for the prior years, can be obtained from the City’s Finance Department and are available on the City’s website.
TABLE 9
City of Hawthorne
General Fund Balance Sheets
Fiscal Years 2018-19 through 2022-23
2018-19 2019-20 2020-21 2021-22 2022-23
ASSETS
Cash and investments $30,074,866 $36,683,606 $52,393,986 $71,932,991 $85,018,951 Receivables:
Accounts 7,315,467 7,338,143 8,952,702 10,061,744 9,783,031 Taxes 90,571 188,902 186,972 569,946 489,734
Interest 49,380 28,241 6,523 94,082 374,490
Leases -- -- -- 3,509,956 6,018,438
Due from other funds 1,385,331 2,401,589 3,279,725 -- 5,872,638 Prepaid expenses -- -- 1,830,046 2,822,522 --
Inventories 52,198 80,632 70,850 69,652 67,458
Total assets $38,967,813 $46,721,113 $66,720,804 $89,060,893 $107,624,740
LIABILITIES
Accounts payable $ 887,987 $1,012,791 $1,106,482 $ 576,325 $1,642,061 Accrued liabilities 799,538 1,039,504 1,056,517 1,073,813 1,251,149 Unearned revenue 752 -- -- -- --
Deposits payable 25,000 25,000 4,783,261 5,030,558 4,699,806 Total liabilities $1,713,277 $2,077,295 $6,946,260 $6,680,696 $7,593,016
DEFERRED INFLOWS OF RESOURCES
Lease related -- -- -- 3,526,982 5,939,379
Total deferred inflow of resources -- -- -- $3,526,982 $5,939,739 FUND BALANCES:
Nonspendable $ 52,198 $ 80,632 $ 1,900,896 $ 69,652 $ 67,458 Restricted -- -- 36,529 36,529 36,529
Unassigned 37,202,338 44,563,186 57,837,119 78,747,034 93,988,358 Total Fund Balance $37,254,536 $44,643,818 $59,774,544 $78,853,215 $94,092,345 Total liabilities, Deferred Inflows &
Fund balance
$38,967,813 $46,721,113 $66,720,804 $89,060,893 $107,624,740 _____________
Source: City of Hawthorne Annual Comprehensive Financial Reports for Fiscal Years shown. 32 62908452.v3
TABLE 10
City of Hawthorne
Statements of Revenues, Expenditures and Changes in General Fund Balance Fiscal Years 2018-19 through 2022-23
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-2022 FY 2022-23 Revenues
Taxes $70,510,829 $72,522,803 $75,978,052 $88,866,674 $96,697,076 Licenses and permits 3,318,633 2,692,172 1,981,724 1,553,744 1,603,989 Intergovernmental 1,206,550 1,368,736 1,359,494 1,269,922 1,651,930 Charges for services 2,428,090 2,400,099 2,158,138 3,021,149 4,577,344(1) Fines and forfeitures 3,311,235 2,713,391 2,806,952 3,268,876 3,410,211 Use of money and property(4) 307,250 712,702 129,714 (1,243,570) 1,399,385 Contributions 148,469 201,000 200,000 350,000 200,000
Miscellaneous 1,335,242 1,813,002 1,560,332 1,849,783 2,653,946 Total Revenues $82,566,298 $84,423,905 $86,174,406 $98,936,578 $112,193,881 Expenditures
General government 12,030,929 12,002,579 $10,535,067 $11,453,845(2) 19,074,505(2) Public safety 49,160,135 51,135,361 44,916,957 53,249,352 55,115,459 Community development 2,566,027 2,284,434 2,201,949 2,191,278 2,425,221 Parks and recreation 3,767,113 3,394,445 2,901,385 3,704,975 4,165,633 Public works 2,459,130 2,221,948 1,752,479 1,463,847 2,099,928 Capital Outlay 243,571 429,304 -- 354,526(3) 14,670,128(3) Total Expenditures $70,226,905 $71,468,071 $62,307,837 $72,417,823 $97,550,874 Excess (deficiency) of revenues
over expenditures $12,339,393 $12,955,834 $23,866,569 $26,518,755 $14,643,007 Proceeds from asset disposal -- 6,947 -- -- --
Transfers in -- 221,651 -- 1,467,681(2) 7,932,039(2)
Transfers out (1,200,318) (5,795,150) (8,735,843) (8,907,765) (7,723,899) Subscription acquisition -- -- -- -- 387,983
Total other sources(uses) $ (1,200,318) $ (5,566,552) $ (8,735,843) $ (7,440,084) $ 596,123 Net change in fund balance $11,139,075 $ 7,389,282 $15,130,726 $19,078,671 15,239,130 Beginning Fund Balance 26,115,461 37,254,836 44,643,818 59,774,544 78,853,215 Ending Fund Balance $37,254,536 $44,643,818 $59,774,544 $78,853,215 $94,092,345 ______________________________________
(1) Increase is due to overtime reimbursement for police services to the City of Inglewood for various special events. (2) The City received $30.5 million in funding from the American Rescue Plan Act (ARPA). A portion of ARPA funds was posted in Other Financing Sources (Uses) - transfers in, as well as in Expenditures – general government, as ARPA eligible expenditures are spent. (3) In Fiscal Year 2021-22, the City paid a $350,000 deposit for the escrow for the purchase of real property. In Fiscal Year 2022-23, the City purchased a parcel of property referred to as the Bank of America building for $11,135,045 and another parcel for $3,502,875. (4) Fluctuations are due to reporting of net value unrealized gains and losses beginning Fiscal year 2021-22 per required accounting rules.
Source: City of Hawthorne Annual Comprehensive Financial Reports for Fiscal Years shown.
Primary General Fund Revenue Sources
Sales taxes and property taxes are the two largest sources of revenues for the City’s general fund in fiscal year 2022-23. The remaining top revenues are from business license tax, utility user tax, transient occupancy tax and franchise fees. The table below provides the amount of sales tax, property tax, business license tax, utility user tax, transient occupancy tax and franchise fee revenues and the share of General Fund revenues that each represents for fiscal year 2022-23. 33 62908452.v3
TABLE 11
City of Hawthorne
Top Revenue Sources
Fiscal Year 2022-23
Revenue Source Revenues
% of General
Fund Revenues
Increase
(Decrease) from
2021-22
% Increase
(Decrease) from
2021-22
Sales Tax(1) $40,393,795 36.0% $2,122,394 5.3
Property Tax(2) 22,825,681 20.3 1,025,699 4.5
Business License Tax 9,452,193 8.4 (4,673) 0.0
Utility Users Tax 8,792,532 7.8 1,333,189 15.2
Transient Occupancy Tax 7,891,009 7.0 1,819,642 23.1
Total Top Revenue Sources $89,355,210 $6,296,251
Total General Fund Revenues $112,193,881 100.0% $13,257,303 13.4% _________________
(1) Sales tax increase by $2 million or 5.4% from the prior fiscal year primarily due to growth in the area of building and construction and internal consumer good.
(2) Includes property taxes received by the City in-lieu of motor vehicle license fees in the amount of $12,958,501.
Source: City of Hawthorne audited financial statements for Fiscal Year Ended June 30, 2023.
Sales Taxes
A sales tax is imposed on retail sales or consumption of personal property. Sales tax revenues represented the largest source of revenue for the City in fiscal year 2022-23, comprising approximately
36.0 percent of the City’s total revenues.
Sales Tax Rates. The City’s sales tax revenue represents the City’s share of the sales and use tax, imposed on taxable transactions occurring within the City’s boundaries. The sales tax is governed by the Bradley-Burns Uniform Local Sales and Use Tax. The tax rate is established by the State Legislature. The current total sales tax rate in the City is 10.25%, which includes the 7.25% sales tax rate established by the State legislature. The aggregate tax rate in the State is six percent (6.00%). An additional one and a half percent (1.25%) is imposed in the County. Los Angeles County voters approved Measure A in 1980, Measure C in 1990, and Measure R in 2008 to finance transportation programs and improvements. The City’s share of sales tax is approximately 1% of the total City sales tax rate of 10.25%. The State’s actual administrative costs with respect to the portion of sales taxes allocable to the City are deducted before distribution and are determined on a quarterly basis.
Property Taxes
Property taxes were the second largest revenue source to the City in fiscal year 2022-23.
Revenues from property taxes, at $22,825,681, represented 20.3 percent of the City’s General Fund revenues in fiscal year 2022-23. This amount includes property taxes received by the City in-lieu of motor vehicle license fees in the amount of $12,958,501.
The motor vehicle license fee (“VLF”) is a fee charged for the privilege of operating a vehicle on public streets. This fee is collected annually by the State’s Department of Motor Vehicles and disbursed to other governmental agencies by the State Controller. VLF was originally based on a rate equivalent to 2% of the market value of motor vehicles, which is imposed annually by the State “in-lieu” of property tax.
34 62908452.v3
In 1999, the State began reducing the VLF rate charged to vehicle owners and backfilling city and county revenue losses with state subventions. The Fiscal Year 2005 State Budget reduced the VLF from 2% to 0.65% of the value of a vehicle and deleted the requirement for backfill payments, providing instead that the amount of the backfill requirement will be met by an increase in the property tax allocation to cities and counties. In fiscal year 2022-23, the City received $12,958,501 in property tax revenues in lieu of VLF.
Proposition 13 Limitations. Article XIIIA of the State of California Constitution imposes limits on annual adjustments to real property assessed values and to the amount of ad valorem tax that may be levied on real property. See “LIMITATIONS ON TAX REVENUES AND APPROPRIATIONS – Article XIIIA.”
Tax Levies and Delinquencies. Taxes are levied by the County for each fiscal year on taxable real and personal property which is situated in the County as of the preceding January 1. Effective July 1, 1983, real property that changes ownership or is newly constructed is reassessed at the time the change in ownership occurs or the new construction is completed. If the property is reassessed at a higher value, one or more supplemental tax statements will be added to the annual tax bill. If the property is reassessed at a lower value, the property owner may receive a refund.
Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year, and if unpaid become delinquent on December 10 and April 10, respectively. If the first installment is not paid by December 10, a ten percent delinquent penalty is added to any unpaid balance. If the second installment is not paid by April 10, a ten percent penalty plus a charge of $10 is added to the unpaid balance. Since supplemental tax bills are mailed throughout the year, they may or may not be due or delinquent at the same time as annual tax bills. The same penalties and charges accrue for delinquent supplemental taxes as for delinquent annual taxes.
Property on the secured roll with respect to which taxes are delinquent becomes tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of a penalty of 1.5 percent of the unpaid tax per month to the time of redemption, plus costs and a redemption fee. If taxes remain unpaid for a period of five years following tax default, the property becomes subject to the County Tax Collector’s power of sale. Properties may be redeemed under an installment plan by paying the current year’s taxes, plus an initial payment of twenty percent of the redemption amount and an installment setup fee. The installment plan of redemption allows for the payment of delinquent taxes over a five-year period beginning the date the installment plan account is opened. An installment plan account can be opened any time after the property becomes tax defaulted and within five years of that date. After the five-year period an installment plan account may not be opened, as the property becomes subject to the County Tax Collector’s power of sale.
Property taxes on the unsecured roll are due as of the January 1 lien date and, in general, become delinquent on August 31 and are thereafter subject to a ten percent penalty plus a collection fee. If unsecured taxes are unpaid on October 31, an additional penalty of 1.5 percent attaches to them on the first day of each month until paid. The City has four ways of collecting delinquent unsecured personal property taxes: (1) bringing a civil action against the taxpayer; (2) filing a certificate in the office of the clerk of the court specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder’s office, in order to obtain a lien on certain property of the taxpayer; and (4) seizing and selling personal property, improvements or possessory interests belonging or assessed to the assessee. 35 62908452.v3
Assessed Valuation. The table below presents the assessed valuation (secured and unsecured) of taxable property in the City for the last ten fiscal years.
TABLE 12
City of Hawthorne
Assessed Values of All Taxable Property(1)
Fiscal Years 2014-15 through 2023-24
Fiscal Years Secured Unsecured Less Exemptions
Total Taxable
Assessed Value Direct Tax Rate
2014-15 $5,975,266,047 $271,246,528 ($38,278,306) $6,208,234,269 0.09115% 2015-16 6,360,930,083 261,718,287 (38,794,555) 6,583,853,815 0.09137 2016-17 6,761,280,688 586,347,166 (70,829,245) 7,276,798,609 0.09174 2017-18 7,149,882,995 639,095,098 (62,805,701) 7,726,172,392 0.09127 2018-19 7,532,179,160 732,745,553 (75,014,723) 8,189,909,990 0.09104 2019-20 7,971,171,054 728,823,022 (69,188,809) 8,630,805,267 0.08950 2020-21 8,394,513,934 871,235,153 (89,168,195) 9,176,580,892 0.08648 2021-22 8,771,167,546 740,382,503 (106,971,423) 9,404,578,626 0.08939 2022-23 9,143,741,870 997,321,789 (67,095,584) 10,073,968,075 0.08939 2023-24(2) 9,653,802,801 1,188,427,064 (58,950,459) 10,842,229,863 0.08517 _____________
(1) Excludes secured and unsecured assessed values of properties included in the former redevelopment project area. (2) On July 16, 2024, SpaceX founder Elon Musk tweeted on X (formerly Twitter) that SpaceX will be moving to Texas. Since then, there has been no formal announcement by the company. The City does not know if, or what date, SpaceX plans to move out of the City, nor which departments of SpaceX will locate to Texas. In addition, the City is not aware of whether SpaceX plans to sell its real property once it relocates. For Fiscal Year 2023-24, SpaceX comprised $12,639,344 of secured assessed value and $700,700,360 of unsecured assessed value. See Table 13 City of Hawthorne Top Ten Taxpayers Based on Assessed Value.
Source: City of Hawthorne Audited Financial Statements for fiscal years 2014-15 through 2022-23; City of Hawthorne for fiscal year 2023-24, based on information provided by the Los Angeles County Auditor-Controller.
Redevelopment Dissolution. The State’s Community Redevelopment Law (codified in Part 1 of Division 24 of the California Health and Safety Code) authorized the redevelopment agency of any city or county to receive an allocation of tax revenues resulting from increases in assessed values of properties within designated redevelopment project areas (the “incremental value”) occurring after the year the project area is formed. In effect, local taxing agencies, such as the City, realize tax revenues only in the assessed value of such property at the time the redevelopment project is created for the duration of such redevelopment project. Although Assembly Bill No. 26 (“AB X1 26”), enacted on June 29, 2011 as Chapter 5 of Statutes of 2011, statutorily dissolved redevelopment agencies as of February 1, 2012, the enforceable obligations of dissolved redevelopment agencies, continue to be paid from property taxes derived from such incremental value until the enforceable obligations are paid in full in accordance with Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code of the State, as amended on June 27, 2012 by Assembly Bill No. 1484 (“AB 1484”), enacted as Chapter 26, Statutes of 2012, and as such statutory provisions may further be amended from time to time (as amended, the “Dissolution Act”). Under the Dissolution Act, taxing entities, such as the City, are to receive distributions (in proportion to such taxing entity’s share of property tax revenues in the tax rate area for the applicable fiscal year) of residual amounts of property taxes attributable to incremental value on each June 1 and January 2, commencing June 1, 2012, after payment of (i) tax sharing obligations established previously pursuant to the Community Redevelopment Law, (ii) enforceable obligations of the successor agency to the former redevelopment agency, and (iii) an administrative cost allowance to such successor agency. As 36 62908452.v3
enforceable obligations of the former redevelopment agency and its successor agency are paid and retired, residual amounts of property tax revenues attributable to redevelopment project area incremental value are expected to increase over time.
The top ten taxpayers, based on assessed values of taxable property in the City, as shown on the 2023-24 tax roll, are set forth in the following table:
TABLE 13
City of Hawthorne
Top Ten Taxpayers Based on Assessed Value
Fiscal Year 2023-24
Rank Taxpayer
Secured
Assessed
Value
% of
Secured
Assessed
Value
Unsecured
Assessed
Value
Combined
Assessed Value
% of Total
Combined
Assessed
Value
1 Space Exploration Technologies Corp(1) $ 12,639,344 0.13% $700,700,360
2) $713,339,704 6.58%
2 Holston DC Assets LLC 112,608,000 1.17 -- 112,608,000 1.04 3 Mogul Hospitality Partners Hawthorne LLC 91,513,963 0.95 -- 91,513,963 0.84 4 DCT Cargo LLC 91,190,775 0.94 -- 91,190,775 0.84
5 Falcon Landing LLC 34,929,080 0.36 53,670,510 88,599,590 0.82 6 Costco Wholesale Corporation 66,786,978 0.69 -- 66,786,978 0.62 7 BSP Zelman Hawthorne LLC 66,677,419 0.69 -- 66,677,419 0.61 8 Hawthorne Creative LLC 61,997,640 0.64 -- 61,997,640 0.57 9 Equity Holdings LLC 60,439,650 0.63 -- 60,439,650 0.56 10 15000 Aviation Ventures LLC 57,814,819 0.60 57,814,813 0.53 Top Ten Total $655,597,668 6.80% $754,370,870 $1,410,968,538 13.01% City Total
$9,653,802,7
99 100.0%
$1,188,427,0
64 $10,842,229,863 100.00%
__________________
(1) On July 16, 2024, SpaceX founder Elon Musk tweeted on X (formerly Twitter) that SpaceX will be moving to Texas. Since then there has been no formal announcement by the company regarding the move. The City does not know if, or what date SpaceX plans to move out of the City, nor which departments of SpaceX will locate to Texas. In addition, the City is not aware of whether SpaceX plans to sell the real property it owns in the City in the event it relocates to Texas. For fiscal years ending 2019, 2020, 2021, 2022, and 2023, the City collected approximately $348,137, $393,390, $396,486, $504,008 and $606,334, respectively, in property tax revenues from SpaceX. (2) Unsecured Property Taxes are taxes on items such as business fixtures, business furniture, and business machinery.
Every year this amount varies for SpaceX due to yearly variations of projects which are at various stages of completion.
Source: City of Hawthorne.
Business License Fees
The City charges a business license fee on persons or entities conducting business within the City. During fiscal year 2022-23, business license fees were $9,452,193 representing 8.4% of the City’s general fund revenues for fiscal year 2022-34.
Utility Users Tax
The Utility User Tax (UUT) is a usage tax of 5.0% on water, natural gas, electricity, and communications services. Generally, the UUT is collected by each service provider from its customers at the time the customer pays for service. Where customers are billed by a provider, the UUT is generally listed as a separate line item on the utility bill. All UUT payments collected by a service provider are remitted to the City. These funds are then deposited by the City in its general fund and available for any lawful municipal purpose. During fiscal year 2022-23, utility user tax revenues were $8,792,532 representing 7.8% of the City’s general fund revenues for fiscal year 2022-34. 37 62908452.v3
Transient Occupancy Taxes
Revenues from the transient occupancy taxes (“TOT”) also represent a source of revenues for the General Fund. The transient occupancy tax is levied on persons staying 30 days or less in a hotel, inn, motel, tourist home or other lodging facility. The transient occupancy tax is applied to the customer’s lodging bill at a rate of 12%. The City’s transient occupancy tax revenues deposited in the General Fund were $7,891,009 in fiscal year 2022-23 representing 7.0% percent of all General Fund revenues.
Investment Policy and Portfolio
The City has adopted policies and procedures for the management of the investment of unexpended funds for the City itself and for other entities of the city, including the Authority, for which the City provides financial management services. The three basic objectives of the policies and procedures are: safety of invested funds, maintenance of sufficient liquidity to meet cash flow needs and attainment of the maximum yield possible consistent with the first two objectives.
The City's investment policy authorizes the following investments under provisions of California Government Code Section 53601:
Authorized Investment Type
Authorized by
Investment
Policy
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
U.S. Treasury Obligation Yes 5 years None None
U.S. Agency Securities Yes 5 years 75% 30%
Banker’s Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 25% 10%
Certificate of Deposit Yes 5 years None None
Medium-Term Notes Yes 5 years 30% 5%
Money Market Mutual Funds Yes N/A 20% None
Local Agency Investment Funds Yes N/A None $75 million
Negotiable Certificates of Deposit Yes 5 years 30% None Mutual Funds Yes N/A 20% 10%
Local Governmental Investment Pool Yes N/A None None
Supranational Yes 5 years 30% None
Asset Backed Securities Yes 5 years 20% None
Portfolio as of June 30, 2023. The table below shows the City’s investment portfolio, as categorized by types of investment securities:
TABLE 14
City of Hawthorne
Investment Report
as of June 30, 2023
Investment Types Less than 1 year 1 to 3 years Total
External Investment Pools - Local Agency
Investment Fund $70,405,118 -- $70,405,118
Negotiable Certificates of Deposit 294,122 $6,087,731 6,381,853 U.S. Government Bonds -- 2,281,221 2,281,221
38 62908452.v3
Med - Term Notes -- 447,460 447,460
Fidelity Money Market 3,169,731 -- 3,169,731
Held by Bond Trustee: Money Market Mutual Funds 3,762,403 -- 3,762,403 Total Investments $77,631,374 $8,816,412 $86,447,786
Source: City of Hawthorne audited financial statements for fiscal year 2022-23.
Long-Term Liabilities
The City currently has several long-term debt obligations payable from the General Fund:
(i) the City’s agreement to make semiannual lease payments to the Public Property Financing Corporation of California in connection with the execution and delivery of the: (a) 2016 Certificates of Participation, Series A, in the original principal amount of $12,645,000, all of which remain outstanding, and (b) 2016 Certificates of Participation, Series B, in the original principal amount of $17,470,000, of which $2,515,00 remain outstanding;
(ii) the City’s agreement to make semiannual lease payments to the Public Property Financing Corporation of California in connection with the Lease Agreement, dated as of August 1, 2016, representing lease payments with an original principal component in the amount of $2,730,900, of which $1,301,850 remains outstanding; and
(iii) the City’s 2019 Taxable Pension Obligation Bonds issued in the principal amount of $121,865,000, of which $108,530,000 remains outstanding.
See Note 6 in “APPENDIX A – CITY OF HAWTHORNE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2023.”
Retirement Pension Plans
This section contains certain information relating to the California Public Employees Retirement System (“CalPERS”). The information is derived from information produced by CalPERS, its independent accountants and actuaries. The City has not independently verified the information provided by CalPERS and makes no representations nor expresses any opinion as to the accuracy of the information provided by CalPERS.
The annual comprehensive financial reports of CalPERS are available on its internet website at www.calpers.ca.gov. The CalPERS website also contains CalPERS’s most recent actuarial valuation reports and other information concerning benefits and other matters. Such information is not incorporated by reference herein.
Plan Descriptions. All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two safety plans in safety risk pools. Benefit provisions under the Plan are established by State statute and the City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, 39 62908452.v3
assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment.
Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Hire Date Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years’ service Benefit payments monthly for life monthly for life
Retirement age 50-55 52-57
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.710% 6.750%
Required employer contribution rates 12.34% 12.34%
Safety
Hire Date Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years’ service Benefit payments monthly for life monthly for life
Retirement age 50 50-57
Monthly benefits, as a % of eligible compensation 3.0% 2.0% to 2.7% Required employee contribution rates 8.99% 13.75%
Required employer contribution rates 25.59% 13.98%
Employees Covered. At June 30, 2021 (valuation date), the following employees were covered by the benefit terms:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 348 238 Inactive employees entitled to but not receiving benefits 278 51 Active employees 174 89
Total 800 378
40 62908452.v3
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023, were $2,000,024.
For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023, were $3,471,882. The actual employer payments of $2,851,665 made to CalPERS by the City during the measurement period ended June 30, 2022, differed from the City’s proportionate share of the employer’s contributions of $16,057,652 by $13,205,987 which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
Net Pension Liability. The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Assumptions
Investment Rate of Return 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter _______________
(1) The mortality table used was developed based on CalPERS’ specific data. For more details on this table, please refer to the CalPERS experience study report on the CalPERS website.
The following table shows the changes in net pension liability over the measurement period.
Miscellaneous
Increase (Decrease)
41 62908452.v3
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability / (Asset)
(c) = (a) - (b)
Balance at: 6/30/2021 (Valuation Date) $214,090,005 $242,764,662 $(28,674,657) Changes Recognized for the Measurement Period:
• Service Cost
• Interest on the Total Pension Liability
• Changes of Assumptions
• Differences between Expected and Actual Experience
• Contributions from the Employer
• Contributions from Employees
• Net Investment Income
• Benefit Payments, including Refunds of Employee
Contributions
• Administrative Expense
2,662,009
14,801,624
6,297,331
(961,116)
--
--
--
--
(12,481,867)
--
--
--
--
--
1,599,394
984,017
(17,954,498)
--
(12,481,867)
(151,228)
2,662,009
14,801,624
6,297,331
(961,116)
(1,599,394)
(984,017)
17,954,498
--
--
151,228
Net Changes during 2020-21 $ 10,317,981 $ (28,004,182) $38,322,163 Balance at: 6/30/2022 (Measurement Date) $224,407,986 $214,760,480 $ 9,647,506 Safety
Increase (Decrease)
Plan Total
Pension Liability
(a)
Plan Fiduciary
Net Position
(b)
Plan Net Pension
Liability / (Asset)
(c) = (a) - (b)
Balance at: 6/30/2021 (MD) $240,341,030 $274,762,158 $(34,421,128) Balance at: 6/30/2022 (MD) 251,662,721 240,688,025 10,974,696 Net changes during 2021-22 $ 11,321,691 $ (34,074,133) $ 45,395,824 Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the City’s proportionate share of the net pension liability of each Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (6.90 percent) than the current rate:
Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous Plan’s Net Pension Liability $38,342,320 $ 9,647,506 $(14,011,741) Safety Plan’s Net Pension Liability $45,728,925 $10,974,696 $(17,429,034) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions. As of the start of the measurement period (July 1, 2021), the City’s total net pension asset was $63,095,785. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a total pension expense of $52,521,784. A breakdown of the pension expense and deferred outflows and deferred inflows of resources related to each pension plan is as follows:
Miscellaneous
As of the start of the measurement period (July 1, 2021), the net pension asset is $28,674,657.
For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense of $3,831,825 for the miscellaneous plan. A complete breakdown of the pension expense is as follows:
Description Amount
Service Cost $2,662,009
42 62908452.v3
Interest on the Total Pension Liability 14,801,624
Recognized Changes of Assumptions 2,518,932
Differences between Expected and Actual Experience (60,064) Contributions - Employees (984,017)
Projected Earnings on Pension Plan Investments (16,384,694) Recognized Differences Between Projected and Actual
Earnings on Plan Investments 1,126,807
Administrative Expenses 151,228
Total Pension Expense $3,831,825
Safety
As of the start of the measurement period (July 1, 2021), the net pension asset for the safety plans was $(34,421,128). For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense of $48,689,959 for the safety plan.
As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Miscellaneous Safety
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between Expected and Actual Experience
Changes of Assumptions
Net Difference between Projected and Actual Earnings on Pension Plan Investments
Change in Employer’s Proportion
Difference in Actual vs Projected Contributions
Pension Contributions Subsequent to Measurement Date
$ 91,255
3,778,39
10,325,615
--
--
2,000,024
$ (576,670)
--
--
--
--
--
$ 454,203
1,106,582
1,733,058
26,152,682
12,945,934
3,471,882
$ (119,176)
--
--
--
(12,386,652)
(15,279,589)
--
$16,195,293 $(576,670) $45,864,341 $(27,785,417)
These amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. The $2,000,024 and $3,471,882 reported as deferred outflows of resources related to the contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year
Ended June 30
Deferred Outflows (Inflows) of
Resources, Net
Miscellaneous Safety
2024 $3,706,266 $5,463,014
2025 2,386,937 4,765,684
2026 657,556 3,321,157
2027 6,867,840 1,057,187
Thereafter -- --
For additional information regarding the City’s retirement plans, including the long term expected rate of return, discount rate, amortization of deferred outflows and inflow of resources, and recognition of gains and losses, see Note 11 to the City’s audited financial statements for fiscal year 2022-23 attached hereto as Appendix A.
43 62908452.v3
Other Post-Employment Benefits Other Than Pensions
Plan Description. The City provides certain postemployment health care benefits under a single employer defined benefit plan, in accordance with the various City Council Resolutions to the following three employee categories: general, fire and police.
General. All employees who have retired from a classification covered by the memorandum of understanding, are receiving retirement benefits from PERS, and have a minimum of 10 years of fulltime employment, are entitled to enroll in a PERS health plan. The City will reimburse an amount equal to the coverage for the plan in which the employee is enrolled. This benefit commences upon the employee's retirement date and ceases when the employee becomes ineligible for coverage under the PERS health benefits plan.
Fire. All employees who have retired from a classification covered by the memorandum of understanding, are receiving retirement benefits from PERS and have a minimum of 15 years of fulltime employment, are entitled to enroll in a PERS health plan. The City will reimburse an amount equal to the cost of the coverage for the plan in which the employee is enrolled. This benefit commences upon the employee's retirement date and ceases when the employee becomes ineligible for coverage under the PERS health benefits plan. The City began contracting with the County of Los Angeles beginning in February 1997. Therefore, this benefit pertained only to those employees retiring before February 1997.
Police. All employees who have retired, have at least 20 years of service in the Hawthorne Police Department, and have reached the age of 50, are entitled to enroll in a PERS health plan. The City will pay for health insurance for the retired employee and his or her dependent spouse or family less the retiree contribution of $14.15 per month for two-party coverage or $23.99 per month for family coverage.
A qualified retiree will be covered by this provision as long as he/she is eligible for PERS health insurance coverage. The dependent spouse of a qualified retiree shall be covered until he/she reaches the age of 65. Any employee who retires with less than the minimum requirements as noted above shall be offered the opportunity to continue their participation in the group health insurance (PERS) in effect at that time. The City does not provide dental, vision, Medicare Part B, or life insurance as part of the plan.
Employees Covered. As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
Active employees 260
Inactive employees or beneficiaries currently receiving benefits 273 Inactive employees entitled to but not yet receiving benefits 62 Total 595
Funding Policy. The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee association. Currently, contributions are not required from plan members. If liquidation of the policy were to occur, the General Fund would be responsible for funding the outstanding OPEB liability.
The City pays for postemployment health insurance on a pay-as-you-go basis. For fiscal year 2022-23, the City paid $6,740,492 for other postemployment benefits, of which $3,240,492 was for health insurance benefits and $3,500,000 was for Trust contributions.
Total OPEB Liability. The City’s total OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation 44 62908452.v3
using the Alternative Measurement Method dated June 30, 2022 that was rolled forward to determine the June 30, 2022 total OPEB liability, based on certain actuarial methods and assumptions. For additional information regarding actuarial methods and assumptions used to determine the total OPEB liability, see Note 12 to the City’s audited financial statements for fiscal year 2022-23 attached hereto as Appendix A.
The changes in the total OPEB liability for the Plan are as follows:
Total OPEB Liability
Balance at June 30, 2022 (6/30/2021 measurement date) $121,828,966 Changes recognized for the measurement period:
Service Cost 4,500,230
Interest on Total OPEB lability 2,693,466
Changes of assumptions (25,044,228)
Benefit Payments (3,263,442)
Net changes during 2022-23 (21,113,974)--
Balance at June 30, 2023 (6/30/2022 measurement date) $100,714,992 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
2.54%
Current Discount Rate
3.54%
1% Increase
4.54%
Total OPEB Liability $117,995,552 $100,714,992 $87,046,138 Sensitivity of the Total OPEB Liability to Changes in the Health Care Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability $85,015,283 $100,714,992 $120,903,383 OPEB Plan Fiduciary Net Position
During the fiscal year ended June 30, 2023, the City began prefunding in the PARS Balanced Strategy with an initial contribution of $3,500,000 to a Section 115 OPEB trust in November 2022. Since the prefunding took place subsequent to the measurement date of June 30, 2022, the amount is not reflected in the plan’s fiduciary net position, rather it is shown as a deferred outflow on the governmentwide financial statements. 45 62908452.v3
For additional information regarding the City’s OPEB plan, including actuarial methods and assumptions used to determine the total OPEB lability, recognition of deferred outflows and inflows of resources, see Note 12 of the City’s audited financial statements for fiscal year 2022-23 attached hereto as Appendix A.
Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City established the Insurance Reserve Fund to self-insure for worker’s compensation and general liability coverage for up to a maximum of $500,000 for each workers' compensation claim and $500,000 for each general liability claim.
In 2006, the City joined Independent Cities Risk Management Authority (ICRMA), a joint powers authority of several California cities, for the purpose of pooling the City’s risk for general liability and workers’ compensation losses with those of other member cities. General liability claims that exceed the self-insured retention (SIR) are covered by ICRMA up to a maximum of $35nvest million per incident.
The City purchase commercial insurance for claims in excess of coverage provide by its SIR for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years.
All funds of the City except the fiduciary funds participate in the program and make payments to the fund based on actuarial estimates of the amounts needed to pay prior year and current year claims.
The claims liability of $5,577,645 reported in the Insurance Reserve Fund at June 30, 2023, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Changes in the Insurance Reserve Fund's claims liability amounts in the fiscal years 2020-21, 2021-22, and 2022-23, were as follows:
Fiscal
Year
Beginning
Balance
Changes in
Estimates
Claims
Payments
Ending
Balances
Due Within
One Year
2020-21 $2,973,235 $2,718,450 $(1,379,301) $4,312,384 $ 862,477 2021-22 4,312,384 1,527,798 -- 5,840,185 1,168,036
2022-23 5,840,182 -- (262,537) 5,577,645 1,115,529
BONDOWNERS’ RISKS
INVESTMENT IN THE BONDS INVOLVES ELEMENTS OF RISK. THE FOLLOWING
SECTION DESCRIBES CERTAIN SPECIFIC RISK FACTORS AFFECTING THE PAYMENT AND SECURITY OF THE BONDS. THE FOLLOWING DISCUSSION OF RISKS IS NOT MEANT TO BE AN
EXHAUSTIVE LIST OF THE RISKS ASSOCIATED WITH THE PURCHASE OF THE BONDS AND
THE ORDER OF DISCUSSION OF SUCH RISKS DOES NOT NECESSARILY REFLECT THE RELATIVE IMPORTANCE OF THE VARIOUS RISKS. POTENTIAL INVESTORS ARE ADVISED TO
CONSIDER THE FOLLOWING FACTORS ALONG WITH ALL OTHER INFORMATION IN THIS OFFICIAL STATEMENT IN EVALUATING THE BONDS. THERE CAN BE NO ASSURANCE THAT
OTHER RISK FACTORS NOT DISCUSSED UNDER THIS CAPTION WILL NOT BECOME MATERIAL IN THE FUTURE.
46 62908452.v3
No Pledge of Taxes
General. The obligation of the City to pay the Base Rental and Additional Rental payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The obligation of the City to pay Base Rental and Additional Rental payments does not constitute a debt or indebtedness of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory debt limitation or restriction.
The City is currently liable on other obligations payable from general revenues, which are described above under “CITY FINANCIAL INFORMATION – General Fund Long-Term Obligations.” Limitations on Taxes and Fees. Certain taxes, assessments, fees and charges presently imposed by the City could be subject to the voter approval requirements of Article XIIIC and Article XIIID of the State Constitution. Based upon the outcome of an election by the voters, such fees, charges, assessments and taxes might no longer be permitted to be imposed, or may be reduced or eliminated and new taxes, assessments fees and charges may not be approved. The City has assessed the potential impact on its financial condition of the provisions of Article XIIIC and Article XIIID of the State Constitution respecting the imposition and increase of taxes, fees, charges and assessments and does not believe that an election by the voters to reduce or eliminate the imposition of certain existing fees, charges, assessments and taxes would substantially affect its financial condition. However, the City believes that if the initiative power was exercised so that all local taxes, assessments, fees and charges that may be subject to Article XIIIC and Article XIIID of the State Constitution are eliminated or substantially reduced, the financial condition of the City, including its General Fund, could be materially adversely affected.
Although the City does not currently anticipate that the provisions of Article XIIIC and Article XIIID of the State Constitution would adversely affect its ability to pay Base Rental and its other obligations payable from the General Fund, no assurance can be given regarding the ultimate interpretation or effect of Article XIIIC and Article XIIID of the State Constitution on the City’s finances.
See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.” Abatement
In the event of loss or substantial interference in the use and possession by the City of all or any portion of the Leased Property caused by material damage, title defect, destruction to or condemnation of the Leased Property, Base Rental payments will be subject to abatement. Such abatement will continue until the restoration of the Leased Property to tenantable condition. See “SECURITY FOR THE BONDS – Abatement.” In the event that such component of the Leased Property, if damaged or destroyed by an insured casualty, could not be replaced during the period of in which proceeds of rental interruption insurance, if any, will be available in lieu of Base Rental, or in the event that casualty insurance proceeds or condemnation proceeds are insufficient to provide for complete repair or replacement of such component of the Leased Property or prepayment of the Bonds, there could be insufficient funds to make payments to Owners in full. It is not always possible to predict the circumstances under which abatement of rental may occur. In addition, there is no statute, case or other law specifying how such an abatement of rental should be measured. For example, it is not clear whether fair rental value is established as of commencement of the lease or at the time of the abatement. If the latter, it may be that the value of the Leased Property is substantially higher or lower than its value at the time of issuance of the Bonds. Abatement, therefore, could have an uncertain and material adverse effect on the security for and payment of the Bonds.
If damage, destruction, title defect or eminent domain proceedings with respect to the Leased Property results in abatement of the Base Rental payments related to such Leased Property and if such 47 62908452.v3
abated Base Rental payments, if any, together with moneys from rental interruption or use and occupancy insurance, if any, (in the event of any insured loss due to damage or destruction), and eminent domain proceeds, if any, are insufficient to make all payments of principal and interest with respect to the Bonds during the period that the Leased Property is being replaced, repaired or reconstructed, then all or a portion of such payments of principal and interest may not be made.
Reduction in Base Rental payments due to abatement as provided in the Sublease does not constitute a default thereunder, and no remedy is available to the Bond Owners under the Sublease or the Indenture for nonpayment under such circumstances. See APPENDIX C.
Limited Recourse on Sublease Default
If an event of default occurs and is continuing under the Sublease, there is no remedy of acceleration of any Base Rental Payment which have not come due. The remedies provided for in the Sublease include, in addition to all other remedies provided at law, reletting the Leased Property or, without terminating the Sublease, collecting each installment of rent as it becomes due and holding the City liable therefor. If the Trustee does not terminate the Sublease, the Trustee may be required to seek a separate judgment each year for that year’s defaulted Base Rental Payments. Any such suit for money damages would be subject to limitations on legal remedies against cities in California, including a limitation on enforcement of judgments against funds or property needed to serve the public welfare and interest could prove both expensive and time-consuming.
The Sublease permits the Trustee, as the Authority’s assignee, to take possession of and re-let the Leased Property in the event of a default by the City under the Sublease. However, due to the fact that the Leased Property serves essential governmental purposes, a court may determine to not permit such remedy to be exercised. Even if such remedy may be exercised, no assurance can be given that the Trustee could readily relet the Leased Property for rents which are sufficient to enable it to pay debt service on the Bonds in full when due.
Limitations on Remedies for Bondholders
Remedies available to the owners of the Bonds upon the occurrence of an event of default under the Sublease or the Indenture may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest and premium, if any, on the Bonds or to preserve the taxexempt status of interest on the Bonds. Remedies are in many respects dependent upon judicial actions, which are often subject to discretion and delay and could prove both expensive and time consuming to obtain.
In addition to the limitations on Bondowner remedies contained in the Sublease and the Indenture, the rights and obligations under the Bonds, the Sublease and the Indenture may be subject to the following: the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under State law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights.
The opinion to be delivered by Bond Counsel, concurrently with the issuance of the Bonds, will include a qualification that the rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture, the Sublease and the Lease may be subject to bankruptcy, insolvency, reorganization, 48 62908452.v3
moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in accordance with principles of equity or otherwise in appropriate cases. See “APPENDIX E — FORM OF OPINION OF BOND COUNSEL.” Limited Obligations with Respect to the Bonds
The Bonds are limited obligations of the Authority payable solely from and secured by a pledge of Revenues and certain funds and accounts held under the Indenture. Revenues consist primarily of Base Rental Payments payable by the City under the Sublease and amounts on deposit from time to time in the funds and accounts held by the Trustee. If for any of the reasons described herein, or for any other reason, the Revenues collected under the Sublease are not sufficient to pay debt service on the Bonds, the Authority will not be obligated to utilize any other of its funds, other than amounts on deposit in the funds and accounts established under the Indenture, to pay debt service on the Bonds.
The Authority has no taxing power. The obligation of the City to make Rental Payments under the Sublease does not constitute an obligation of the City which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. Neither the Bonds nor the obligation of the City to make Rental Payments under the Sublease constitutes an indebtedness of the City, State or any of its political subdivisions within the meaning of any constitutional or statutory debt limitations.
Additional Obligations of the City
General. The City is permitted to enter into other obligations which constitute additional charges against its revenues without the consent of Owners of the Bonds, and may in the future be subject to liabilities payable from the general fund (some of which are described below). To the extent that additional obligations are incurred by (or imposed upon) the City, the funds available to pay Base Rental payments may be decreased.
The Base Rental payments and other payments due under the Sublease (including payment of costs of repair and maintenance of the Leased Property, taxes and other governmental charges levied against the Leased Property) are payable from funds lawfully available to the City. If the amounts that the City is obligated to pay in a fiscal year exceed the City’s revenues for such year, the City may choose to make some payments rather than making other payments, including Base Rental and Additional Rental payments, based on the perceived needs of the City. The same result could occur if, because of California Constitutional limits on expenditures, the City is not permitted to appropriate and spend all of its available revenues or is required to expend available revenues to preserve the public health, safety and welfare.
Litigation. The City is subject to litigation arising in the normal course of business, the costs of which may be payable from the General Fund. See “LITIGATION.” CalPERS Obligations. Many cities and other local agencies in the State have been faced with increased payments due to CalPERS in recent years. The City, like many other cities and local agencies in the State, is responsible for payments to CalPERS for its share of employee pension costs.
Amounts owed to CalPERS for pension costs have increased in recent years and are expected to continue to increase, as CalPERS implements changes to its discount rate and other methodologies for calculating pension costs. See “CITY FINANCIAL INFORMATION – Employee Retirement System; CalPERS,” above, for additional information.
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Transient Occupancy Taxes
Transient occupancy tax revenues are typically the biggest source of General Fund revenue to the City. Transient occupancy tax revenues are based upon hotel and motel room night occupancy rates and room-night pricing, which could be impacted by a variety of factors.
For example, before final maturity of the Bonds, the City may enter into an economic recession.
In times of economic recession, overnight travel involving hotel and motels may decline and/or the pricing of hotel and motel room nights may decline, and such a decline would cause the transient occupancy tax revenues received by the City to also decline.
Natural disasters, weather and public health emergencies can also affect tourism activity in the City, which could potentially have a material adverse impact on the City’s receipt of TOT revenues. For example, fires near to the City and/or Highway 50 (the main highway into the City) have reduced TOT revenues in the past and future similar events could result in decreased TOT revenues in the future. In addition, the COVID-19 pandemic lock-down orders reduced TOT revenues, until those orders were lifted.
In addition, changes or amendments in the laws applicable to the City’s receipt of sales tax revenues, whether implemented by State legislative action or voter initiative, could have an adverse effect on transient occupancy tax revenues received by the City. For example, in November 2018, voters in the City passed Measure T, which severely restricted the number of vacation rental homes in the City. See “CITY FINANCIAL INFORMATION – Transient Occupancy Taxes” for additional details.
Sales Taxes
Sales tax revenues are the largest source of revenue to the City. Sales tax revenues are based upon the gross receipts of retail sales of tangible goods and products by retailers with taxable transactions in the City, which could be impacted by a variety of factors. For example, before final maturity of the Bonds, the City may enter into an economic recession. In times of economic recession, the gross receipts of retailers often decline, and such a decline would cause the sales tax revenues received by the City to also decline.
In addition, changes or amendments in the laws applicable to the City’s receipt of sales tax revenues, whether implemented by State legislative action or voter initiative, could have an adverse effect on sales tax revenues received by the City. For example, many categories of transactions are exempt from the statewide sales tax, and additional categories could be added in the future. Currently, most sales of food products for human consumption are exempt; this exemption, however, does not apply to liquor or to restaurant meals. The rate of sales tax levied on taxable transactions in the City or the fee charged by the CDTFA for administering the City’s sales tax could also be changed.
Property Taxes
Property taxes are a significant source of General Fund revenue to the City. Certain risks associated with property tax revenues follow.
Levy and Collection. The City does not have any independent power to levy and collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the City’s property tax revenues, and accordingly, could have an adverse impact on the ability of the City to make Base Rental payments. Likewise, delinquencies in the payment of property taxes could have an adverse effect on the City’s ability to pay principal of and interest on the Bonds when due.
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Reduction in Inflationary Rate. Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining assessed value may be adjusted from year to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.” Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. Since Article XIIIA was approved, the annual adjustment for inflation has fallen below the 2% limitation a limited number of times.
The City is unable to predict if any adjustments to the full cash value base of real property within the City, whether an increase or a reduction, will be realized in the future.
Appeals of Assessed Values. There are two types of appeals of assessed values that could adversely impact property tax revenues:
Proposition 8 Appeals. Most of the appeals that might be filed in the City would be based on Section 51 of the Revenue and Taxation Code, which requires that for each lien date the value of real property must be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value.
Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application with the appropriate county board of equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value.
These market-driven appeals are known as Proposition 8 appeals.
Any reduction in the assessment ultimately granted as a Proposition 8 appeal applies to the year for which application is made and during which the written application was filed. These reductions are often temporary and are adjusted back to their original values when market conditions improve. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.
Base Year Appeals. A second type of assessment appeal is called a base year appeal, where the property owners challenge the original (basis) value of their property. Appeals for reduction in the “base year” value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.
No assurance can be given that property tax appeals in the future will not significantly reduce the City’s property tax revenues.
Natural Calamities
General. Natural disasters could affect economic activity in the City, and could have a negative impact on City finances. There can be no assurance that the occurrence of any natural calamity would not cause substantial interference to and costs for the City or impact the Leased Property.
The occurrence of any natural calamity, including but not limited to an earthquake, uncontrolled fire or a major flood, may result in the substantial interference with the use and occupancy of the Leased 51 62908452.v3
Property, which could result in Base Rental Payments being subject to abatement. Under such circumstances, no assurance can be given that the City would have insurance or other resources available to make repairs to the Leased Property or to make Base Rental Payments under the Sublease.
Earthquakes. Like most of the State, the City is located in a seismically active area. If there were to be an occurrence of severe seismic activity in the area of the City, such an occurrence may adversely affect economic activity in the City, and could have a negative impact on City finances. The City could be at risk from strong ground motion and secondary effects related to a seismic event, including ground failure (such as landslide, liquefaction, lateral spreading, lurching and differential settlement) and seismically induced flooding (such as flooding from a tsunami or dam failure).
The City is part of the seismically active Southern California region, probably best known for the 750-mile long San Andreas Fault, which stretches from the Mexican Border to San Francisco. The City is bounded on the southwest by the Palos Verdes Fault and on the west the Newport-Inglewood Fault.
Both faults are less than five miles from the City. No Alquist-Priolo Special Studies Zones have been designated within the city limits. Much of Hawthorne lies atop late Quaternary (Pleistocene) compactto-very-dense deposits of gravel, silt, and clay. The City is not required to maintain earthquake insurance under the Sublease. Rental interruption insurance will not cover interruption of Base Rental Payments due to an earthquake.
Droughts. California is subject to droughts from time-to-time. In April 2015, for the first time in California’s history, Governor Brown directed the State Water Resources Control Board to implement mandatory water reductions in cities and towns across California to reduce water usage by 25%.
Following a wet winter in 2016-17, most of the mandatory water reductions were lifted, only to return again in 2021 and 2022 following unusually dry years. Customers in the City are subject to certain mandatory water reductions imposed by State and local water agencies.
Climate Change. City finances may be negatively impacted by climate change. Local impacts of climate change are not definitive, but parcels in the City could experience changes to local and regional weather patterns; increased risk of flooding; and water restrictions.
Risk of Uninsured Loss
The City covenants under the Sublease to maintain certain insurance policies on the Leased Property. These insurance policies do not cover all types of risk. The Leased Property could be damaged or destroyed due to a casualty for which the Leased Property is uninsured. Additionally, the Leased Property could be the subject of an eminent domain proceeding. Under these circumstances an abatement of Base Rental Payments could occur and could continue indefinitely. There can be no assurance that the providers of the City’s liability and rental interruption insurance will in all events be able or willing to make payments under the respective policies for such loss should a claim be made under such policies. There can be no assurances that amounts received as proceeds from insurance or from condemnation of the Leased Property will be sufficient to redeem the Bonds.
Public Health Emergencies
In recent years and as a result of the COVID-19 pandemic, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. Pandemic diseases arising in the future could have significant adverse health and financial impacts throughout the world, leading to loss of jobs and personal financial hardships, and/or actions by federal, State and local governmental authorities to contain or mitigate the effects of an outbreak.
There can be no assurances that future public health emergencies and/or responses intended to slow the spread of disease, such as limiting business and travel activity, will not materially adversely 52 62908452.v3
impact the state and national economies and, accordingly, materially adversely impact the financial condition of the City and the City’s General Fund in the future. In addition, the City may experience increased personnel costs and/or reduced revenues due to the occurrence of future disease emergencies and the related impacts on economic and other activity in and around the City.
Cyber Security
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. The City employs a multi-level cyber protection scheme that includes network firewalls, server and personal computer level antivirus software, antispam/malware software, e-mail protection and intrusion protection. The City carries cybersecurity insurance. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. To date, the City has not experienced an attack on its computer operating systems which resulted in a breach of its cybersecurity systems that are in place.
However, no assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector and other authorities for the levy and collection of taxes, and the Trustee. No assurance can be given that the City and/or the other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.]
State Finances
The State’s financial condition and budget policies affect communities and local public agencies throughout California. State budgets are affected by regional, national or even international economic conditions and a multitude of other factors over which the City has no control. The City cannot give any assurances regarding the financial conditions of the State during any period of time. Some of the State’s budget solutions have caused in the past, and may cause in the future, increased financial stress to cities, counties and other local governments by: (i) decreasing local revenues (for example, the property tax, road improvement funding, public safety or other categorical funded initiatives), or (ii) increasing directly or indirectly demand for local programs (such as public safety or indigent health programs). In recent years, the State has faced significant financial and budgetary stress. AB X1 26 enacted in 2011, pursuant to which all redevelopment agencies in the State were dissolved, was enacted during the fiscal year 2011-12 budget process and was just one example where cities and counties throughout the State were significantly impacted. Even though California has experienced significantly improved fiscal condition during the past few fiscal years, the State is still facing continuing financial challenges and unfunded long-term liabilities.
According to the State Constitution, the Governor is required to propose a budget to the State Legislature by no later than January 10 of each year, and a final budget must be adopted by the vote of each house of the Legislature no later than June 15, although this deadline has been frequently breached in the past. Before fiscal year 2010-11, the State budget had to be adopted by a two-thirds vote of each house of the State Legislature. However, in November 2010, the voters of the State passed Proposition 25, which reduced the vote required to adopt a budget to a majority vote of each house and which provided that there would be no appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for members of the Legislature for the period during which the budget was presented late to the Governor. The State budget becomes law upon the signature of the Governor, who may veto specific items of expenditure.
The Governor signed the fiscal year 2024-25 State budget on June 24, 2023. The City does not anticipate any material adverse effect on the City’s finances based on the fiscal year 2024-25 State 53 62908452.v3
budget. The City also cannot predict what measures the State will adopt to respond to any future financial difficulties. The City can provide no guarantees regarding the outcome of future State budget negotiations, the actions that will be taken in the future by the State Legislature and Governor to deal with changing State revenues and expenditures, or the impact that such budgets or actions will have on the City’s finances and operations.
Information about the State budget and State spending is available at various State-maintained websites. Text of proposed and adopted budgets may be found at the website of the State Department of Finance, www.dof.ca.gov. An analysis of the budget is posted by the Office of the Legislative Analyst at www.lao.ca.gov. In addition, various official statements for State-issued bonds, many of which contain a summary of the current and past State budgets may be found at the website of the State Treasurer, www.treasurer.ca.gov. None of the websites referenced above is in any way incorporated into this Official Statement. They are cited for informational purposes only. The City makes no representation concerning, and does not take any responsibility for, the accuracy or timeliness of information posted on such websites or the continued maintenance of such websites by the respective entities.
Investment of Funds
All moneys in any of the funds or accounts held under the Indenture may be invested in Permitted Investments as provided under the Indenture. See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” All investments, including Permitted Investments, authorized by law from time to time for investments by the Authority contain a certain degree of risk. Such risks include, but are not limited to, a lower rate of return than expected, decline in market value and loss or delayed receipt of principal. The occurrence of these events with respect to amounts held under the Indenture could have a material adverse effect on the security for the Bonds.
Future Initiative and Legislation
As discussed below under “LIMITATIONS ON TAX REVENUES AND APPROPRIATIONS,” the California’s Constitutional initiative process has resulted in the adoption of measures which pose certain limits on the ability of cities and local agencies to generate revenues, through property taxes or otherwise. From time to time, other initiative measures could be adopted, affecting the City’s ability to generate revenues and to increase appropriations. No assurances can be given as to the potential impact of any future initiative or legislation on the finances and operations of the City.
Loss of Tax Exemption
In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds, the Authority and the City have covenanted to comply with the applicable requirements of Section 148 and certain other sections of the Internal Revenue Code of 1986, as amended, relative to arbitrage and avoidance of characterization as private activity bonds, among other things. The interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the Bonds as a result of acts or omissions of the Authority and/or the City in violation of their covenants. Should such an event of taxability occur, the Bonds are not subject to acceleration, redemption or any increase in interest rates and will remain Outstanding until maturity or until redeemed under one of the redemption provisions contained in the Indenture. See “TAX MATTERS.”
Secondary Market for Bonds
There can be no assurance that there will be a secondary market for the Bonds, or if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general 54 62908452.v3
market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated.
Additionally, pricing of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could substantially differ from the original purchase price.
LIMITATIONS ON REVENUES AND APPROPRIATIONS
There are a number of provisions in the State of California Constitution that limit the ability of the City to raise and expend revenues. Contained below is a description of some of these limitations.
In addition to the ones discussed in this section below, other initiative measures could be adopted from time to time further affecting the City’s revenues and finances.
Property Tax Limitations - Article XIIIA
California voters, on June 6, 1978, approved an amendment (commonly referred to as “Proposition 13” or the “Jarvis-Gann Initiative”) to the California Constitution. This amendment, which added Article XIIIA to the California Constitution, among other things, affects the valuation of real property for the purpose of taxation in that it defines the full cash value of property to mean “the county assessor’s valuation of real property as shown on the 1975-76 tax bill under full cash value, or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” The full cash value may be adjusted annually to reflect inflation at a rate not to exceed two percent per year, or any reduction in the consumer price index or comparable local data, or any reduction in the event of declining property value caused by damage, destruction or other factors.
Article XIIIA further limits the amount of any ad valorem tax on real property to one percent of the full cash value except that additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to July 1, 1978. In addition, an amendment to Article XIII was adopted in August 1986 by initiative that exempts from the one percent limitation any bonded indebtedness approved by two-thirds of the votes cast by voters for the acquisition or improvement of real property.
On December 22, 1978, the California Supreme Court upheld the amendment over challenges on several state and federal constitutional grounds (Amador Valley Joint Union School District v. State Board of Equalization).
In the general election held on November 4, 1986, voters of the State of California approved two measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to provide that the terms “purchased” and “change of ownership,” for purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of (1) real property between spouses and (2) the principal residence and the first $1,000,000 of other property between parents and children. Proposition 60 amended Article XIIIA to permit the Legislature to allow persons over age 55 who sell their residence to buy or build another of equal or lesser value within two years in the same county, to transfer the old residence’s assessed value to the new residence. Pursuant to Proposition 60, the Legislature has enacted legislation permitting counties to implement the provisions of Proposition 60.
Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster and in certain other minor or technical ways. 55 62908452.v3
Article XIIIA Implementing Legislation
Legislation has been enacted and amended a number of times since 1978 to implement Article XIIIA. Under current law, local agencies are no longer permitted to levy directly any property tax (except to pay voter-approved indebtedness). The one percent property tax is automatically levied by the county and distributed according to a formula among taxing agencies. The formula apportions the tax roughly in proportion to the relative shares of taxes levied prior to 1978.
Increases of assessed valuation resulting from reappraisals of property due to new construction, change in ownership or from the two percent annual adjustment are allocated among the various jurisdictions in the “taxing area” based on their respective “situs.” Any such allocation made to a local agency continues as part of its allocation in future years.
Beginning in the 1981-82 fiscal year, assessors in California no longer record property values on tax rolls at the assessed value of 25 percent of market value, which was expressed as $4 per $100 of assessed value. All taxable property is now shown at full market value on the tax rolls. Consequently, the tax rate is expressed as $1 per $100 of taxable value. Unless otherwise noted, all taxable property value included in this Official Statement (unless noted differently) is shown at 100 percent of market value and all tax rates reflect the $1 per $100 of taxable value.
Challenges to Article XIIIA
California trial and appellate courts have upheld the constitutionality of Article XIIIA’s assessment rules in three significant cases. The United States Supreme Court, in an appeal to one of these cases, upheld the constitutionality of Article XIIIA’s tax assessment system. The City cannot predict whether there will be any future challenges to California’s present system of property tax assessment and cannot evaluate the ultimate effect on the City’s receipt of property tax revenues should a future decision hold unconstitutional the method of assessing property.
Appropriations Limitations: Article XIIIB
On November 6, 1979, California voters approved Proposition 4, the so-called Gann Initiative, which added Article XIIIB to the California Constitution. Article XIIIB limits the annual appropriations of the State and any city, county, school district, authority or other political subdivision of the State to the level of appropriations for the prior fiscal year, as adjusted annually for changes in the cost of living, population and services rendered by the government entity. The “base year” for establishing such appropriations limit is the 1978-79 fiscal year, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies. Revenues received in excess of the appropriations limit must be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years.
Propositions 218 and 26: Article XIIIC and Article XIIID On November 5, 1996, California voters approved Proposition 218, “the Right to Vote on Taxes Act.” Proposition 218 added Articles XIIIC and XIIID to the California Constitution, providing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments, and property-related fees and charges.
The general financial condition of the City may be affected by provisions of Article XIIIC and Article XIIID. In particular, provisions of Article XIIIC (i) require taxes for general governmental purposes to be approved by a majority vote and taxes for specific purposes, even if deposited into the General Fund, to be approved by two-thirds vote, (ii) require any general purpose tax which the City imposed, extended or increased, without voter approval, after December 31, 1994, to be approved by majority 56 62908452.v3
vote on November 5, 1998 and (iii) provide that all taxes, assessments, fees and charges to reduction or repeal at any time through the initiative process, subject to overriding constitutional principles relating to the impairment of contracts. Provisions of Article XIIID that affect the ability of the City to fund certain services or programs that it may be required or choose to fund include (ii) adding notice, hearing, protest and, in some cases, voter approval requirements to impose, increase or extend certain assessments, fees and charges and (ii) adding stricter requirements for finding individualized benefits associated with such levies.
On November 2, 2010, California voters approved Proposition 26, the "Supermajority Vote to Pass New Taxes and Fees Act." Relevant to local governments, Proposition 26 amended Article XIIIC of the California Constitution by adding an expansive definition for the term "tax," which previously was not defined under the California Constitution. As a result, Proposition 26 requires a local government to obtain two-thirds voter approval for many fees, charges and levies that a local government was previously authorized to adopt by a majority vote of its legislative body. Specifically, Proposition 26 defines a "tax" as any levy, charge, or exaction of any kind imposed by a local government except those enumerated in seven specified exceptions, as follows:
(1) A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. (2) A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.
(3) A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. (4) A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
(5) A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law. (6) A charge imposed as a condition of property development. (7) Assessments and property-related fees imposed in accordance with the provisions of Article XIII D.
In the event that the City cannot properly impose a charge, which constitutes a “tax” pursuant to Article XIII, the City would have to choose whether to reduce or eliminate the services financed by such tax or to finance such services from its General Fund. The foregoing discussion of Proposition 218 should not be considered an exhaustive or authoritative treatment of the provisions of Proposition 218 or the possible effects of Propositions 218 or 26. Interim rulings, final decisions, legislative proposals and legislative enactments affecting Propositions 218 and 26 may impact the City’s ability to make Rental Payments. The City does not expect to be in a position to control the consideration or disposition of these issues and cannot predict the timing or outcome of any judicial or legislative activity related to these issues.
Proposition 62
On November 4, 1986, California voters adopted Proposition 62, which requires that (i) any local tax for general governmental purposes (a “general tax”) must be approved by a majority vote of the 57 62908452.v3
electorate; (ii) any local tax for specific purposes (a “special tax”) must be approved by a two-thirds vote of the electorate; (iii) any general tax must be proposed for a vote by two-thirds of the legislative body; and (iv) proceeds of any tax imposed in violation of the vote requirements must be deducted from the local agency’s property tax allocation.
Most of the provisions of Proposition 62 were affirmed by the 1995 California Supreme Court decision in Los Angeles County Local Transportation Authority v. Guardino, which invalidated a special sales tax for transportation purposes because fewer than two-thirds of the voters voting on the measure had approved the tax. The City does not believe any of the taxes constituting City revenues are levied in violation of Proposition 62.
Unitary Property
AB 454 (Chapter 921, Statutes of 1986) provides that revenues derived from most utility property assessed by the State Board of Equalization (“Unitary Property”), commencing with the 1988-89 fiscal year, will be allocated as follows: (i) each jurisdiction will receive up to 102 percent of its prior year State-assessed revenue; and (ii) if county-wide revenues generated from Unitary Property are less than the previous year’s revenues or greater than 102 percent of the previous year’s revenues, each jurisdiction will share the burden of the shortfall or benefit of the excess revenues by a specified formula.
This provision applies to all Unitary Property except railroads, whose valuation will continue to be allocated to individual tax rate areas.
The provisions of AB 454 do not constitute an elimination of the assessment of any Stateassessed properties nor a revision of the methods of assessing utilities by the State Board of Equalization. Generally, AB 454 allows valuation growth or decline of Unitary Property to be shared by all jurisdictions in a county.
ABSENCE OF LITIGATION
To the Authority’s and the City’s knowledge, there is no litigation pending or threatened to restrain or enjoin the issuance, execution or delivery of the Bonds, to contest the validity of the Bonds, the Indenture, the Lease, the Sublease or any proceedings of the City or the Authority with respect thereto. In the opinion of the Authority and its counsel, there is no lawsuit or claim pending against the Authority which will materially impair the Authority’s ability to enter into the Indenture or restrain or enjoin the collection of Revenues as contemplated therein. In the opinion of the City and its counsel, there is no lawsuit or claim pending against the City which will materially impair the City’s ability to enter into the Sublease or restrain or enjoin the payment of Base Rental Payments.
CONTINUING DISCLOSURE
The City has undertaken for the benefit of holders and beneficial owners of the Bonds to provide certain financial information relating to the City and other data by not later March 1 of each year (the “Annual Report”), commencing March 1, 2025 with the report for the 2023-24 fiscal year, and to provide notices of the occurrence of certain enumerated events. The Annual Report, and any notice of material event will be filed by the City or Digital Assurance Certification, LLC, as the Dissemination Agent on behalf of the City, with the Municipal Securities Rulemaking Board, through its Electronic Municipal Market Access System (referred to as “EMMA”), at www.emma.msrb.org. The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in “APPENDIX E – FORM OF CONTINUING DISCLOSURE AGREEMENT.” This undertaking has been made in order to assist the Underwriter in complying with Rule 15c2-12(b)(5) (the “Rule”) promulgated by the Securities and Exchange Commission under the Securities and Exchange Act of 1934, as amended.
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A failure by the City to comply with the provisions of the Continuing Disclosure Agreement is not an event of default under the Indenture (although the holders and beneficial owners of the Bonds do have remedies at law and in equity). However, a failure to comply with the provisions of the Continuing Disclosure Agreement must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds.
Therefore, a failure by the City to comply with the provisions of the Continuing Disclosure Agreement may adversely affect the marketability of the Bonds on the secondary market.
A review of the City’s prior compliance with its continuing disclosure obligations under the Rule reveals several instances of filing delays with its continuing disclosure requirements during the past five years. The City has adopted a continuing disclosure policy and will work closely with the Dissemination Agent to ensure timely compliance of annual reports in the future.
LEGAL MATTERS
The legality of the issuance of the Bonds is subject to the approval of Nossaman LLP, Los Angeles, California, Bond Counsel. Bond Counsel’s opinions with respect to the Bonds will be substantially in the forms set forth in APPENDIX B of this Official Statement.
TAX MATTERS
The Internal Revenue Code of 1986, as amended (the “Code”), establishes certain requirements which must be met subsequent to the issuance and delivery of the Bonds for interest thereon to be and remain excluded from gross income for federal income tax purposes. Noncompliance with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to their date of issue. These requirements include, but are not limited to, provisions which limit how the proceeds of the Bonds may be spent and invested, and generally require that certain investment earnings be rebated on a periodic basis to the United States of America. The City and the Authority have made certifications and representations and have covenanted to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes pursuant to Section 103 of the Code.
In the opinion of Nossaman LLP, Bond Counsel, under existing law and assuming the accuracy of such certifications and representations by, and compliance with such covenants of, the City and the Authority, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax; however, for tax years beginning after December 31, 2022, interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from State of California personal income taxes. Bond counsel expresses no opinion as to any other tax consequences regarding the Bonds.
Under the Code, interest on the Bonds may be subject to a federal branch profits tax imposed on certain foreign corporations doing business in the United States and to a federal tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes may have certain adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers, including financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, those deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations, and individuals otherwise eligible for the earned income tax credit. The applicability and extent of these and other tax consequences will depend upon the particular tax status or other tax items of the owner of the Bonds. Bond Counsel will express no opinion regarding these and other such consequences. 59 62908452.v3
Bond Counsel has not undertaken to advise in the future whether any circumstances or events occurring after the date of issue of the Bonds may affect the tax status of interest on the Bonds.
Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may also be considered by the California legislature. Court proceedings may also be filed, the outcome of which could modify the tax treatment of obligations such as the Bonds. No assurance can be given that legislation enacted or proposed, or actions by a court, after the date of issue of the Bonds, will not eliminate, or directly or indirectly reduce the benefit of the exclusion of interest on the Bonds from gross income for federal income tax purposes, or have an adverse effect on the market value or marketability of the Bonds. Investors should consult their own financial and tax advisors to analyze the importance of these risks.
For example, federal tax legislation enacted on December 22, 2017, reduced corporate tax rates, modified individual tax rates, eliminated many deductions, and generally eliminated the taxexempt advance refunding of tax-exempt bonds and other tax advantaged bonds, among other things.
In addition, investors in the Bonds should be aware that future legislative actions might increase, reduce, or otherwise change (including retroactively) the financial benefits and the treatment of all or a portion of the interest on the Bonds for federal income tax purposes for all or certain taxpayers. In all such events, the market value of the Bonds may be adversely affected and the ability of holders to sell their Bonds in the secondary market may be reduced. The Bonds are not subject to special mandatory redemption, and the interest rates on the Bonds are not subject to adjustment, in the event of any such change.
Certain requirements and procedures contained or referred to in relevant documents may be changed and certain actions may be taken, under the circumstances and subject to the terms and conditions set forth in such documents, upon the advice or with the approving opinion of nationally recognized bond counsel. Bond Counsel expresses no opinion as to any Bond, or the interest thereon, if any such change occurs or action is taken upon the advice or approval of bond counsel other than Nossaman LLP.
If the issue price of a Bond (the first price at which a substantial amount of the bonds of a maturity are sold to the public) is less than the stated redemption price at maturity of such Bond, the difference constitutes original issue discount, the accrual of which is excluded from gross income for federal income tax purposes to the same extent as interest on the Bonds. Further, such original issue discount accrues actuarially on a constant yield method over the term of each such Bond and the basis of each Bond acquired at such initial offering price by an initial purchaser thereof will be increased by the amount of such accrued original issue discount. The accrual of original issue discount may be taken into account as an increase in the amount of tax-exempt income for purposes of determining various other tax consequences of owning such Bonds. Purchasers who acquire Bonds with original issue discount are advised that they should consult with their own independent tax advisors with respect to the state and local tax consequences of owning such Bonds.
If the issue price of a Bond is greater than the stated redemption price at maturity of such Bond, the difference constitutes original issue premium, the amortization of which is not deductible from gross income for federal income tax purposes. Original issue premium is amortized over the period to maturity of such Bond based on the yield to maturity of that Bond (or, in the case of a Bond callable prior to its stated maturity, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on that Bond), compounded semiannually. For purposes of determining gain or loss on the sale or other disposition of such Bond, the purchaser is required to decrease such purchaser’s adjusted basis in such Bond by the amount of premium that has amortized to the date of such sale or other disposition. As a result, a purchaser may realize taxable gain for federal income tax purposes from the sale or other disposition of such Bond for an amount equal to or less than the amount paid by the purchaser for that Bond. A purchaser of that Bond in the initial public offering at 60 62908452.v3
the issue price for that Bond who holds it to maturity (or, in the case of a callable Bond, to its earlier call date that results in the lowest yield on that Bond) will realize no gain or loss upon its retirement.
Payments of interest on tax-exempt obligations, including the Bonds, are generally subject to IRS Form 1099-INT information reporting requirements. If an owner of a Bond is subject to backup withholding under those requirements, then payments of interest will also be subject to backup withholding. Those requirements do not affect the exclusion of such interest from gross income for federal income tax purposes.
Prospective purchasers of the Bonds should consult their own independent tax advisers regarding pending or proposed federal and state tax legislation and court proceedings, and prospective purchasers of the Bonds at other than their original issuance at the respective prices indicated on the inside cover of this Official Statement should also consult their own tax advisers regarding other tax considerations such as the consequences of market discount, as to all of which Bond Counsel expresses no opinion.
Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City, the Authority or the owners of the Bonds regarding the tax status of interest thereon in the event of an audit examination by the IRS. The IRS has a program to audit tax-exempt obligations to determine whether the interest thereon is includible in gross income for federal income tax purposes. If the IRS does audit the Bonds, under current IRS procedures, the IRS will treat the Authority as the taxpayer and the beneficial owners of the Bonds will have only limited rights, if any, to participate in the audit or to obtain and participate in judicial review of such audit. Any action of the IRS, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of other obligations presenting similar tax issues, may affect the market value of the Bonds.
A copy of the proposed form of opinion of Bond Counsel is attached hereto as APPENDIX B.
MUNICIPAL ADVISOR
The City has retained CSG Advisors Incorporated, San Francisco, California, as Municipal Advisor for the sale of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement.
CSG Advisors Incorporated, is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.
UNDERWRITING
Samuel A. Ramirez & Co., Inc., as underwriter (the “Underwriter”), has agreed, subject to certain conditions, to purchase the Bonds at a purchase price of $__ (equal to the principal amount of the Bonds, [plus/less] original issue [premium/discount] of $__ and less an underwriter’s discount of $_).
The Underwriter intends to offer the Bonds to the public initially at the prices set forth on the inside cover page of this Official Statement, which prices may subsequently change without any requirement of prior notice.
RATINGS
S&P Global Ratings (“S&P”) has assigned its rating of “__” to the Bonds. Such rating reflects only the views of S&P and any explanation of the significance of such ratings may be obtained only from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it 61 62908452.v3
and on investigations, studies and assumptions of its own. There is no assurance such rating will continue for any given period of time or that such rating will not be revised downward, suspended, or withdrawn entirely by the rating agency, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision, suspension or withdrawal of the rating may have an adverse effect on the market price of the Bonds.
FINANCIAL STATEMENTS
The City’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023 (the “ACFR”), attached as Appendix A hereto, was audited by Rogers, Anderson, Malody & Scott, LLP, San Bernardino, California (the “Auditor”). The Auditor was not requested to consent to the inclusion of its report in Appendix A and it has not undertaken to update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness, or fairness of the statements made in the Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to its report. See “APPENDIX A – CITY OF HAWTHORNE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2023.”
MISCELLANEOUS
All of the preceding description and summaries of the Bonds, the Indenture and the Sublease, other applicable agreements, legislation and other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the City for further information in connection therewith.
Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized.
The Authority and the City have duly authorized the execution and delivery of this Official Statement by their duly authorized officers.
HAWTHORNE PUBLIC FINANCING AUTHORITY
By:
Vontray Norris
Executive Director
CITY OF HAWTHORNE
By:
Vontray Norris
City Manager
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APPENDIX A
CITY OF HAWTHORNE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2023
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APPENDIX B
FORM OF OPINION OF BOND COUNSEL
Upon issuance and delivery of the Bonds, Nossaman LLP, as Bond Counsel, proposes to render its final approving opinion in substantially the following form:
[closing date], 2024
Hawthorne Public Financing Authority
4455 West 126th Street
Hawthorne, California 90250
Opinion of Bond Counsel
with reference to
$_____
Hawthorne Public Financing Authority
Lease Revenue Bonds
Series 2024
Ladies and Gentlemen:
We have examined (i) a record of proceedings relating to the issuance of the abovecaptioned Series 2024 Bonds (the “Bonds”) of the Hawthorne Public Financing Authority, a joint powers authority (the “Authority”), (ii) the Indenture, dated as of September 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), (iii) the Lease Agreement, dated as of September 1, 2024 (the “Lease”), by and between the City of Hawthorne (the “City”) and the Authority, (iv) the Sublease, dated as of September 1, 2024 (the “Sublease”), by and between the Authority and the City, (v) the Assignment Agreement, dated as of September 1, 2024 (the “Assignment Agreement”), by and between the Authority and the Trustee; and (vi) such other matters of law as we have deemed necessary to enable us to render the opinions expressed herein. As to questions of fact material to this opinion, we have relied upon such certificates and documents without undertaking to verify the same by independent investigation. Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Indenture.
The Bonds are issued under and pursuant to the Indenture, the provisions relating to the joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, as amended (the “Act”), including the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 of the Act. The Bonds are issued for the purpose of assisting the City in financing the costs of design, construction and renovation of the city hall expansion and new civic center park, new public works yard, expanded senior center, police facility improvements, aquatics center and pool improvements, and certain other related capital improvement projects.
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Based upon such examination, we are of the opinion under existing law that:
1. The Indenture has been duly and lawfully authorized, executed and delivered by the Authority. Assuming due authorization, execution and delivery by the Trustee, the Indenture is in full force and effect in accordance with its terms and is valid and binding upon the Authority and enforceable in accordance with its terms. The Indenture creates the valid pledge which it purports to create of the Revenues and certain funds established by the Indenture (including the investments, if any, thereof), subject to the provisions of the Indenture permitting the application thereof for the purposes, and on the terms and conditions set forth in the Indenture.
2. The Authority is duly authorized and entitled to issue the Bonds. The Bonds have been duly and validly authorized and issued by the Authority in accordance with the Constitution and statutes of the State of California, including the Act, and in accordance with the Indenture.
The Bonds constitute the valid and binding obligations of the Authority as provided in the Indenture, are enforceable in accordance with their terms and the terms of the Indenture and entitled to the benefits of the Act and the Indenture. The Bonds are not an obligation of the State of California, any public agency thereof (other than the Authority), or any member of the Authority and neither the faith and credit nor the taxing power of the State of California or any public agency thereof or any member of the Authority is pledged for the payment of the Bonds. The Authority has no taxing power.
3. The Authority and the City have duly authorized, executed and delivered the Lease, the Sublease, and the Assignment Agreement, as applicable. The Lease and the Sublease constitute the valid and binding agreements of the Authority and the City enforceable according to their respective terms. The obligation of the City to make Base Rental Payments during the term of the Sublease constitutes a valid and binding obligation of the City, payable from funds of the City lawfully available therefor, and does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State of California is obligated to levy or pledge any form of taxation or for which the City or the State of California has levied or pledged any form of taxation.
4. Interest on the Bonds is exempt from personal income taxes of the State of California.
5. Assuming compliance with the covenants described below, interest on the Bonds is excluded from gross income for federal income tax purposes. The Bonds are not “specified private activity bonds” within the meaning of Section 57(a)(5) of the Internal Revenue Code of 1986, as amended (the “Code”) and, therefore, interest on the Bonds will not be treated as an item of tax preference for purposes of the federal individual alternative minimum tax, although we observe that, for tax years beginning after December 31, 2022, such interest included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax.
The Code sets forth certain requirements which must be met subsequent to the issuance and delivery of the Bonds for interest thereon to be and remain excluded from gross income for federal income tax purposes. Noncompliance with such requirements could cause the interest on the Bonds to be included in gross income retroactive to the date of issue of the Bonds. The City has covenanted to satisfy, or take such actions as may be necessary to cause to be satisfied, each provision of the Code necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes pursuant to Section 103(a) of the Code.
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Certain requirements and procedures contained or referred to in the Indenture and other relevant documents may be changed and certain actions may be taken or omitted, under the circumstances and subject to the terms and conditions set forth in such documents, upon the advice or with the approving opinion of nationally recognized bond counsel. We express no opinion as to any Bond, or the interest thereon, if any change occurs or action is taken or omitted upon the advice or approval of any counsel other than ourselves.
Except as stated in the foregoing paragraphs numbered 4 and 5 and the paragraph immediately following paragraph 5, we express no opinion as to any federal or state tax consequences of the ownership or disposition of the Bonds.
The opinions expressed herein are qualified to the extent that the enforceability of the Indenture, the Bonds, the Lease and the Sublease may be limited by applicable bankruptcy, insolvency, debt adjustment, receivership, fraudulent conveyance or transfer, moratorium, reorganization, arrangements or other laws affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against public entities in the State or other laws or equitable principles affecting the enforcement of creditors’ rights generally. We express no opinion with respect to any indemnification, contribution, liquidated damages, penalty (including any remedy deemed to constitute a penalty), right of set-off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non-exclusivity of remedies, waiver or severability provisions contained in the foregoing documents. We do not express any opinion with respect to the quality of title to, or interests in, any of the real or personal property subject to the lien of the Lease or Sublease or with respect to the accuracy or sufficiency of the description of any real property contained therein and in the Indenture. Without limiting the foregoing, we have assumed compliance with all agreements and covenants contained in the Indenture.
The opinions expressed herein are based on an analysis of existing law and cover certain matters not directly addressed thereby. Such opinions may be affected by actions taken or omitted or events occurring after the date hereof, and we have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. We have assumed the genuineness of all documents and signatures presented to us. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in such documents. No opinion is expressed in this letter regarding the accuracy, completeness or fairness of the Official Statement or any other offering material relating to the Bonds.
Respectfully submitted,
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APPENDIX C
SUMMARY OF PRINCIPAL LEGAL DOCUMENTS
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APPENDIX D
DTC’S BOOK-ENTRY ONLY SYSTEM
The information in this Appendix D concerning The Depository Trust Company (“DTC”), New York, New York, and DTC’s book-entry system has been obtained from DTC. The Authority and the City take no responsibility for the completeness or accuracy thereof. The City and the Authority cannot give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners: (i) payments of interest, principal or premium, if any, with respect to the Bonds, (ii) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (iii) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis without error, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.