15.2.7 Limitation of Leasehold Mortgagee Liability for Tenant Defaults.
Notwithstanding any contrary provision hereof: (i) no Leasehold Mortgagee shall be required to pay any liens or charges that are extinguished by the foreclosure of its Leasehold Mortgage; (ii) any incurable default shall be, and shall be deemed to have been waived by Landlord upon completion of foreclosure proceedings or acquisition of Tenant’s interest in this Lease by any purchaser at a foreclosure sale, or any entity who otherwise acquires Tenant’s interest from the Leasehold Mortgagee by deed in lieu of foreclosure. Any entity acquiring the interest of Tenant in the Property and in this Lease as a result of the foreclosure of a Leasehold Mortgage (or an assignment or deed in lieu thereof) acquires an interest in the leasehold only, and shall be liable to perform the obligations of Tenant under this Lease only during the period such entity retains ownership of the interest of Tenant in the Property and in this Lease.
15.3 Non-Subordination of Fee. Nothing in this Lease shall be construed as an agreement by Landlord to subordinate its fee interest in the Property or its right to rent payments hereunder or any other right of Landlord herein. Except as expressly set forth in this Article XV, no Leasehold Mortgage shall impair Landlord’s ability to enforce its rights and remedies under this Lease or provided by law. Landlord shall have no obligation to encumber or otherwise subordinate its fee interest in the Property or in this Lease to the interest of any Leasehold Mortgagee in this Lease or in Tenant’s leasehold estate.
15.4 Subsequent Transfers. In the event any person or entity becomes the lessee under the Lease by means of foreclosure or deed in lieu of foreclosure or pursuant to any new lease obtained under Section 15.2.7, such person or entity may assign or Transfer the Lease or such new lease in compliance with the terms of Article XVI.
15.5 Landlord’s Rights Under Leasehold Mortgages.
34 15.5.1 Notice of Tenant’s Default. Tenant shall use best efforts to ensure that every Leasehold Mortgage secured by a deed of trust on Tenant’s leasehold estate in the Property shall expressly provide that:
(a) the lender shall give Landlord contemporaneous notice of any default by Tenant thereunder, if the failure to cure such default could reasonably be expected to result in acceleration of the maturity of the debt secured by the Leasehold Mortgage; provided however, that the lender’s giving or failure to give notice shall not affect the lender’s rights or ability to timely pursue all applicable remedies, including, but not limited to, filing a notice of default or notice of sale, instituting judicial foreclosure proceedings, or seeking the appointment of a receiver. In addition, within three (3) business days following Tenant’s receipt of any notice of default under any financing document affecting the Property, Tenant shall provide Landlord with a copy of such notice.
(b) Landlord shall have the right to cure any curable default by Tenant (but without obligation to do so) upon the same terms and conditions and within ninety (90) days measured from the date that Landlord receives notice thereof; and (c) If Landlord shall tender payment in full of all sums required to be paid under the Leasehold Mortgage or the note secured thereby (disregarding any acceleration of maturity thereunder, but including any costs or expenses arising as a result of such default) on or before ninety (90) calendar days from the date of such notice of default from the lender to Landlord, then the lender shall accept such payment and rescind the acceleration, if any. Any sums paid by Landlord pursuant to this Section 15.5.1 shall become immediately due and payable from Tenant to Landlord as Rent due under this Lease; provided however, that no Leasehold Mortgagee shall be obligated to cure a failure by Tenant to pay such amount pursuant to the rights granted to Leasehold Mortgagees under this Lease and Landlord shall have no right to terminate this Lease as a result of Tenant’s failure to pay such amounts. (d) Landlord shall have the right and option (but not the obligation), during the period described in the last sentence of this paragraph, by notice in writing to the lender, to purchase any Leasehold Mortgage, the note secured thereby, and any other instruments securing or guaranteeing such note or otherwise evidencing any obligation secured by the Leasehold Mortgage. The purchase price therefor shall be the full amount due and owing to the lender thereunder, including any costs, expenses, swap termination fees, and penalties payable in accordance with the terms thereof. The sale and assignment by the lender shall be without recourse or warranty by the lender except that such lender has good title to the note (or is authorized to obtain payment or acceptance on behalf of one who has good title) and has the authority to transfer the loan to the Landlord. The right granted by this paragraph may be exercised by Landlord at any time after the lender has declared the entire sum secured by any Leasehold Mortgage to be due and payable or has commenced proceedings to foreclose any Leasehold Mortgage, and such right shall terminate ninety (90) days following receipt by Landlord of the notice described above.
15.6 No Voluntary Surrender/Modification. Notwithstanding anything to the contrary set forth herein, Landlord will not voluntarily surrender the Lease or accept a voluntary surrender of the Tenant’s leasehold estate, and Landlord will not amend or modify the Lease without the 35 prior written consent of (i) all holders of any Leasehold Mortgage then in effect (which such party may withhold in such party’s sole discretion), and (ii) the limited partners of Tenant.
Landlord will not enforce against any Leasehold Mortgagee any waiver or election made by Tenant under the Lease which has a material adverse effect on the value of Tenant’s leasehold estate or the rights of Tenant under the Lease without the prior written consent of such Leasehold Mortgagee (which may be withheld in its sole discretion).
15.7 Leasehold Mortgagee Right to Pay Landlord Obligations. Leasehold Mortgagees identified by written notice by Tenant to Landlord shall have the right, but not the obligation, upon not less than five (5) business days’ prior written notice to Landlord, to pay any taxes payable by Landlord with respect to the Property, and to cure any monetary or nonmonetary default by Landlord under any encumbrance on the Property which has priority over this Lease; and if any Leasehold Mortgagee does so pay or cure any such encumbrance (not including any property taxes or assessments, which are to be paid by Tenant), Landlord agrees that it will reimburse such Leasehold Mortgagee for the amount thereof promptly following Landlord’s receipt of Leasehold Mortgagee’s written request therefor.
15.8 Amendments for the Benefit of Leasehold Mortgagees. Landlord and Tenant shall cooperate to include in this Lease by reasonable amendment from time to time, reasonable provisions which may reasonably be requested by any proposed Leasehold Mortgagee for the purpose of implementing the mortgagee protection provisions contained in this Lease and allowing such Leasehold Mortgagee reasonable means to protect or preserve the lien of the Leasehold Mortgage upon the occurrence of a default under the Lease. Landlord and Tenant each agree to execute and deliver (and acknowledge, if necessary for recording purposes) any agreement reasonably necessary to effect any such amendment; provided however, that any such amendment shall not in any way affect the Term, the Rent payable hereunder, nor otherwise in any material respect adversely affect any rights or materially increase the obligations of Landlord under this Lease.
ARTICLE XVI
ASSIGNMENT, TRANSFER, SUBLETTING
16.1 Restrictions on Transfer or Assignment by Tenant. Prior to the issuance of a Certificate of Completion for the Project as provided by the DDA, any sale, transfer, encumbrance, pledge, assignment, conveyance, sublease or other disposition of all or any portion of Tenant’s interest in the Property, the Improvements, or this Lease shall be prohibited. Upon issuance and recordation of the Certificate of Completion for the Project as provided by the DDA, except as permitted pursuant to Article XV and this Article XVI, Tenant shall not sell, transfer, encumber, pledge, assign, convey, sublet or otherwise dispose (“Transfer”) all or any portion of its interest in the Property, the Improvements or this Lease voluntarily, involuntarily, by operation of law, or otherwise, without Landlord’s prior written consent. Each Transfer shall comply with all requirements therefor set forth elsewhere in this Lease and Tenant shall have no right to hypothecate or encumber its interest in this Lease or sublet or assign all or any portion of the Property and/or the Improvements except as expressly provided under the terms of this Lease. No voluntary or involuntary assignee, sublessee, or successor in interest of Tenant shall acquire any rights or powers under this Lease except as expressly set forth herein. 36 16.1.1 Exceptions. Notwithstanding any contrary provision of this Lease, Landlord’s consent shall not be required, and the provisions of Section 16.2 below shall not be applicable, with respect to the following Transfers: (A) the renting or leasing of residential units to tenants in the ordinary course of business in accordance with the Affordable Housing Covenant; (B) the granting of a Leasehold Mortgage in accordance with Section 15.1 or the foreclosure of a Leasehold Mortgage or the acquisition of Tenant’s interest in this Lease by an assignment or deed in lieu of foreclosure; and (C) the first Transfer following any event described in clause (B) of this sentence. In addition, Landlord shall not unreasonably withhold consent to any Transfer of Tenant’s interest in the Property or any portion thereof, to an entity in which ____________________ (“____”), retains 50% or more of the equity or beneficial interest in said entity and controls such entity, or to a limited partnership in which ______________ or its affiliate acts as the general partner, provided Landlord is given the applicable entity organizational documents. Neither the transfer of limited partner interests in Tenant, nor the admission of an investor limited partner to Tenant’s partnership shall be considered a Transfer for purposes of this Article XVI.
16.2 Procedure for Obtaining Landlord’s Consent.
(a) Transfer Request. With respect to each Transfer requiring the Landlord’s consent under Section 16.1, Tenant shall send to Landlord written request for Landlord’s approval of the Transfer (a “Transfer Consent Request”) specifying the name and address of the proposed transferee and its legal composition (if applicable). Each Transfer Request shall be accompanied by all of the following:
(i) An audited or certified financial statement of the proposed transferee for the three most recent calendar or fiscal years prepared in accordance with generally accepted accounting procedures by a certified public accounting firm sufficiently current and detailed to evaluate the proposed transferee’s assets, liabilities and net worth and certified as true and correct by the proposed transferee;
(ii) a description of the nature of the interest proposed to be transferred, the portion or portions of the Property affected by the Transfer, and the proposed effective date of such Transfer;
(iii) a true and complete copy of the proposed assumption agreement described in Section 16.6 and any other documents relating to the assignment and assumption (including any documents that include payment for the assignment); (iv) a complete history of the proposed transferee describing its background, its current real estate projects and location thereof, and the background of the principals or personnel to be involved in the development or operation of the portion of the Property subject to the Transfer and stating whether the proposed transferee ever filed for bankruptcy or had projects that were foreclosed;
(v) a description of all projects of the proposed transferee which during the past five (5) years have been the subject of substantial litigation; and 37 (vi) any such other information as reasonably requested by Landlord within fifteen (15) days following the receipt of the above information, in order to make an informed decision whether or not to approve or disapprove the Transfer. (b) Approval of Landlord. Within sixty (60) days following receipt of all the information referred to in Section 16.3 (a), Landlord shall approve or disapprove a proposed transferee with respect to the information supplied which approval shall not be unreasonably withheld (but may be conditioned upon Landlord receipt of all or a portion of any assignment consideration, it being acknowledged that this long term lease does not include any requirement for payment of periodic rent). If Landlord fails to give Tenant written notice of its disapproval of the transferee or request additional information in writing within such sixty (60) day period, it shall be deemed to have disapproved the transferee.
16.3 Subleases; Nondisturbance and Attornment. Tenant shall not permit its space tenants to sublease their apartment units. Tenant agrees for the benefit of Landlord that each sublease, rental agreement, and any other agreement for occupancy of any part of the Improvements (each an “Occupancy Agreement”): (a) shall state that it is subject to the terms and provisions of this Lease, and (b) shall require that the subtenant under the Occupancy Agreement shall attorn to and accept Landlord as the sublessor or other party under the Occupancy Agreement in the event this Lease is terminated. Landlord agrees that as long as each Occupancy Agreement complies with the requirements of the preceding clauses (a) and (b), then upon the expiration or termination of this Lease, Landlord shall recognize the subtenant or occupant under the Occupancy Agreement as the direct tenant of Landlord under the terms and conditions contained in the Occupancy Agreement and for a term equal to the then unexpired term of the Occupancy Agreement; provided however, that: (i) at the time of the expiration or termination of this Lease no uncured default shall exist under the Occupancy Agreement which at such time would permit the termination of the Occupancy Agreement or the exercise of any dispossession remedy provided for therein; and (ii) Landlord shall not be (x) liable for any prior act or omission of Tenant under the Occupancy Agreement; (y) liable for the return of any security deposit under the Occupancy Agreement not actually received by Landlord; or (z) subject to any offsets or defenses that the subtenant or occupant may have against Tenant. The provisions of this Section 16.3 shall survive the expiration or termination of this Lease.
16.4 Limitations.
(a) Non-Transfer Period. In no event shall Tenant request Landlord to approve any Transfer prior to the date that all of the following shall have occurred:
(i) the construction of the Improvements shall be complete and a Certificate of Completion as provided by the DDA shall be issued with respect to the Project; and
(ii) all costs and expenses with regard to the construction of the Project and related Improvements shall be paid in full, all lien periods shall have expired and there shall be no liens on the Property, the Improvements, the Landlord’s fee title or any portion thereof. 38 The provisions of this Section 16.4 (a) shall not be applicable to the granting of a Leasehold Mortgage in accordance with Section 15.1, and shall not be applicable to, or after, the foreclosure of a Leasehold Mortgage or the acquisition of Tenant’s interest in this Lease by assignment or deed in lieu of foreclosure.
(b) No Relief from Liability. No Transfer will limit, diminish or otherwise relieve Tenant or a successor in interest/assignee of any liability described herein arising during its ownership of the leasehold estate evidenced by this Lease. (c) No Consent If Bankruptcy. In no event shall Landlord be required to consent or be deemed to consent to a Transfer to a party then subject to any proceedings under any insolvency, bankruptcy or similar laws.
(d) Criteria for Transfer. Among other valid reasons for withholding consent, Landlord shall be deemed to be reasonable in withholding its consent to a proposed Transfer if, among other requirements, either of the following conditions is unsatisfied:
(i) Tenant delivers to Landlord an audited financial statement of the proposed transferee for the three most recent calendar or fiscal years prepared in accordance with generally accepted accounting principles by a recognized certified accounting firm demonstrating that the proposed transferee (or its principals) is a viable, going concern with sufficient financial ability to own, operate and manage the Property; and (ii) the proposed transferee shall have demonstrated experience operating and managing affordable residential projects similar to the Project.
16.5 Involuntary and Other Transfers. Without limiting any other restrictions on transfer contained in this Lease, no interest of Tenant in this Lease, the Property or part thereof shall be assignable in the following manner:
(a) under an order of relief filed, or a plan of reorganization confirmed, for or concerning Tenant by a bankruptcy court of competent jurisdiction under the federal bankruptcy act or the laws of the State of California, whereby any interest in this Lease, the Property or part thereof is assigned to any party which does not qualify as an approved transferee pursuant to this Lease unless such order is filed or such plan is confirmed in connection with an involuntary proceeding brought against Tenant and Tenant reacquires such transferred interest within ninety (90) days after the date such order is filed or such plan is confirmed; (b) if Tenant assigns substantially all of its assets for the benefit of its creditors; or
(c) if an order of attachment is issued by a court of competent jurisdiction, whereby any interest in this Lease, the Property or part thereof or substantially all of Tenant’s assets are attached by its creditors and such order of attachment is not stayed within ninety (90) days after the date it is issued.
The transfers described in this Section 16.5 shall constitute a breach under this Lease by Tenant and Landlord shall have the right to terminate this Lease as a result of any such transfer taking 39 place, in which case this Lease shall not be treated as an asset of Tenant. In such event, a Leasehold Mortgagee may request a new lease in accordance with Section 15.2.3.
16.6 Assumption Agreement and Release. No permitted Transfer shall be effective until any curable default hereunder shall have been cured and there shall have been delivered to Landlord an assumption agreement, executed by the transferor and the proposed transferee, whereby such transferee expressly assumes liability for such Lease obligations as arise and/or accrue during the period in which the transferee retains ownership of the interest of Tenant in the Property and in this Lease. The parties agree that as a condition to any Transfer taking place the transferee shall deliver to Landlord representations and warranties confirming the accuracy of the information delivered to Landlord concerning its current financial condition and its outstanding or pending liabilities.
16.7 Change in General Partner of Tenant. In addition to the restrictions on Transfers as set forth in this Article XVI, Landlord shall have the right to approve any change in the identity of the general partner of Tenant, including without limitation, any admission of any new general partner or withdrawal of any existing general partner. Such approval right of Landlord shall also apply to the transfer of a majority of the ownership interest in a general partner of Tenant. Notwithstanding any contrary provision of this Section 16.7, Landlord’s approval shall not be required with respect to any change in the identity or ownership of the general partner of Tenant as long as following such change the general partner of Tenant continues to be an entity which controls, is controlled by, or is under common control with ____________________________. For purposes of this Article XVI, “control” shall mean the right to direct the management and affairs of an entity, whether by virtue of the ownership of ownership interests, by contract, by appointment of directors or by common or overlapping boards. Removal of the general partner of Tenant by the Tenant's Limited Partner for cause in accordance with the Tenant's Partnership Agreement shall not require the consent of the Landlord, provided, that the Limited Partner concurrently with removal of the General Partner replaces the General Partner with an interim replacement General Partner (“Interim General Partner”) that is an affiliate of the Limited Partner. The Limited Partner must replace the Interim General Partner with a permanent replacement General Partner (“Permanent Replacement General Partner”) within 90 days from the date the General Partner was removed from the Partnership. Upon written request from the Tenant, the Landlord may give the Tenant thirty (30) day extensions at Landlord’s sole discretion, up to a total of a ninety (90) day extension, but in all events the Permanent Replacement General Partner must be admitted to the Partnership no later than one hundred eighty days (180) after the date the General Partner was removed from Tenant. The nomination of the Permanent Replacement General Partner shall be subject to City’s consent. Failure to replace the General Partner with the Permanent Replacement General Partner within the time set forth above shall constitute an Event of Default under this Lease and Landlord may terminate the Lease immediately upon delivering the Notice of termination. .
16.8 Sale by Landlord. Nothing contained in this Lease shall be deemed in any way to limit, restrict or otherwise affect the right of Landlord to sell, transfer, assign or convey all or any portion of the right, title and estate of Landlord in the Property and in this Lease; provided, however, that in each such instance any such sale, transfer, assignment or conveyance shall be subject to this Lease, and Tenant’s other rights arising out of this Lease shall not be affected or disturbed in any way by any such sale, transfer, assignment or conveyance. Any other provision 40 of this Lease to the contrary notwithstanding, each covenant, agreement or obligation of Landlord under this Lease relating to the ownership or use of the Property is intended to and shall constitute a covenant running with the title to the Property and shall be binding upon the owner from time to time of the Property. At such time as Landlord shall sell, transfer, assign or convey the entire right, title and estate of Landlord in the Property and in this Lease, all obligations and liability on the part of Landlord arising under this Lease after the effective date of such sale, transfer, assignment or conveyance shall terminate as to Landlord, and thereupon all such liabilities and obligations shall be binding upon the transferee.
ARTICLE XVII
BREACHES, REMEDIES AND TERMINATION
17.1 Event of Default. Tenant shall be in default under this Lease upon the occurrence of any of the following (“Events of Default”):
(a) Monetary Obligation. Tenant at any time is in default hereunder as to any monetary obligation (including without limitation, Tenant’s obligation to pay taxes and assessments due on the Property or part thereof, subject to Tenant’s rights to contest such charges pursuant to Section 5.2), and such default continues for ten (10) days after a notice of default is delivered by Landlord to Tenant;
(b) Insurance. Tenant fails to obtain and maintain any policy of insurance required pursuant to this Lease;
(c) Abandonment. Tenant abandons the Property;
(d) Bankruptcy. Tenant or any general partner of Tenant files a voluntary petition in bankruptcy or files any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors; or seeks or consents to or acquiesces in the appointment of any trustee, receiver or liquidator of Tenant (or any general partner of Tenant) or of all or any substantial part of its property, or of any or all of the royalties, revenues, rents, issues or profits thereof, or makes any general assignment for the benefit of creditors, or admits in writing its inability to pay its debts generally as they become due; (e) Reorganization. A court of competent jurisdiction enters an order, judgment or decree approving a petition filed against Tenant seeking any reorganization, dissolution or similar relief under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors, and such order, judgment or decree remains unvacated and unstayed for an aggregate of ninety (90) days from the first date of entry thereof, or any trustee receiver or liquidator of Tenant of all or any substantial part of its property, or of any or all of the royalties, revenues, rents, issues or profits thereof is appointed without the consent or acquiescence of Tenant and such appointment remains unvacated and unstayed for an aggregate of ninety (90) days, such ninety (90) day period to be extended in all cases during any period of a bona fide appeal diligently pursued by Tenant; 41 (f) Attachment. Subject to Tenant’s right to contest the following charges pursuant to Sections 5.2 and 6.6, Tenant fails to pay prior to delinquency taxes or assessments due on the Property or the Improvements or fails to pay when due any other charge that may result in a lien on the Property or the Improvements, and Tenant fails to cure such default within ninety (90) days of the date of delinquency, but in all events prior to the date upon which the holder of any lien has the right to pursue foreclosure thereof; (g) Transfer. Tenant Transfers all or any portion of Tenant’s interest in this Lease, the Property, the Improvements or part thereof in violation of the provisions of Article XVI and fails to rescind such Transfer within ten (10) days after written notice from Landlord; (h) Failure to Comply with Construction Deadlines. Tenant fails to comply with any construction deadlines under Section 6.2 (subject to force majeure delays, as described therein).
(i) Other Obligations. Tenant defaults in the performance of any term, provision, covenant or agreement contained in this Agreement other than an obligation enumerated in this Section 17.1 and unless a shorter cure period is specified for such default, the default continues for ten (10) days in the event of a monetary default or thirty (30) days in the event of a nonmonetary default after the date upon which Landlord shall have given written notice of the default to Tenant; provided however, if the default is of a nature that it cannot be cured within thirty (30) days, an Event of Default shall not arise hereunder if Tenant commences to cure the default within thirty (30) days and thereafter prosecutes the curing of such default with due diligence and in good faith to completion.
17.2 Notice and Opportunity to Cure.
17.2.1 Notice of Breach. Unless expressly provided otherwise in this Lease, no breach by a party shall be deemed to have occurred under this Lease unless another party first delivers to the nonperforming party a written request to perform or remedy (the “Notice of Breach”), stating clearly the nature of the obligation which such nonperforming party has failed to perform, and stating the applicable period of time, if any, permitted to cure the default.
17.2.2 Failure to Give Notice of Breach. Failure to give, or delay in giving, Notice of Breach shall not constitute a waiver of any obligation, requirement or covenant required to be performed hereunder. Except as otherwise expressly provided in this Lease, any failure or delay by either party in asserting any rights and remedies as to any breach shall not operate as a waiver of any breach or of any such rights or remedies. Delay by either party in asserting any of its rights and remedies shall not deprive such party of the right to institute and maintain any action or proceeding which it may deem appropriate to protect, assert or enforce any such rights or remedies.
17.2.3 Limited Partners’ Right to Cure. Provided Tenant shall have informed Landlord of the identity and address for notices of the applicable limited partner (which may be accomplished by delivery to Landlord of a copy of Tenant’s partnership agreement or amendment thereto with such information), the limited partners of Tenant (“Limited Partners”) shall have the right to cure any curable default of Tenant hereunder upon the same terms and 42 conditions afforded to Tenant within the same cure period as afforded Tenant hereunder extended by an additional sixty (60) days; provided however, if the default is of such a nature that the Limited Partners reasonably determine that it is necessary to replace the general partner of Tenant in order to cure such default, then the cure period shall be extended by an additional sixty (60) days after the removal and replacement of such general partner, provided that the Limited Partners have promptly commenced and diligently proceeded with all requisite actions to effect such removal and replacement. Landlord agrees that it shall deliver notice of default to the Limited Partners in accordance with Section 17.2.1 concurrently with delivery of such notice to Tenant provided that Landlord has been given the address for delivery of such notices. Any such cure by a Limited Partner shall be accepted by Landlord as if performed by Tenant or by any Leasehold Mortgagee. If this Lease has been terminated, upon any such cure by a Limited Partner, Landlord shall, upon request by such Limited Partner enter into a new lease with such Limited Partner (or any of its affiliated designees) pursuant to substantially similar terms and conditions as those set forth in this Lease, subject to the rights of Leasehold Mortgagees pursuant to Article XV. Notwithstanding the preceding sentence, the Landlord shall not exercise its rights to terminate this Lease pursuant to Section 17.3 until the expiration of the Limited Partner's cure period. No rights and remedies of Landlord shall be effective as against any Limited Partner unless Landlord has delivered to such Limited Partner all notices required to be so delivered hereunder and such Limited Partner has been afforded the opportunity to cure as provided herein. Landlord agrees not to amend any material provision of this Lease without the prior written consent of the Limited Partners.
17.3 Remedies Upon Default.
17.3.1 Landlord’s Remedies. Upon the occurrence of any Event of Default and in addition to any and all other rights or remedies of Landlord hereunder and/or provided by law, but subject in all events to the rights and remedies of Leasehold Mortgagees under Article XV hereof and of any Limited Partner under this Article XVII, Landlord shall have the right to terminate this Lease and/or Tenant’s possessory rights hereunder, in accordance with applicable law to re-enter the Property and take possession thereof and of the Improvements, and except as otherwise provided herein, to remove all persons and property therefrom, and to store such property at Tenant’s risk and for Tenant’s account, and Tenant shall have no further claim thereon or hereunder. In no event shall this Lease be treated as an asset of Tenant after any final adjudication in bankruptcy except at Landlord’s option so to treat the same but no trustee, receiver, or liquidator of Tenant shall have any right to disaffirm this Lease.
17.3.2 Remedies Upon Abandonment. If Tenant should breach this Lease and abandon the Property, Landlord may, at its option, but subject in all events to the rights and remedies of Leasehold Mortgagees under Article XV hereof and of any Limited Partner under this Article XVII, enforce all of its rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder. Additionally, Landlord shall be entitled to recover from Tenant all costs of maintenance and preservation of the Property, and all costs, including attorneys’ and receiver’s fees incurred in connection with the appointment of and performance by a receiver to protect the Property and Landlord’s interest under this Lease.
17.3.3 Landlord Right to Continue Lease. In the event of any default under this Lease by Tenant (and regardless of whether or not Tenant has abandoned the Property), this 43 Lease shall not terminate (except by an exercise of Landlord’s right to terminate under Section
17.3.1) unless Landlord, at Landlord’s option, elects to terminate Tenant’s right to possession or, at Landlord’s further option, by the giving of any notice (including, without limitation, any notice preliminary or prerequisite to the bringing of legal proceedings in unlawful detainer) to terminate Tenant’s right to possession. For so long as this Lease continues in effect, Landlord may enforce all of Landlord’s rights and remedies under this Lease, including, without limitation, the right to recover all rent and other monetary payments as they become due hereunder. For the purposes of this Lease, the following shall not constitute termination of Tenant’s right to possession: (a) acts of maintenance or preservation or efforts to relet the Property; or (b) the appointment of a receiver upon initiative of Landlord to protect Landlord’s interest under this Lease.
17.3.4 Right to Injunction; Specific Performance. In the event of a default by Tenant under this Lease that remains uncured beyond any applicable grace periods permitted hereunder, Landlord shall have the right to commence an action against Tenant for damages, injunction and/or specific performance. Tenant’s failure, for any reason, to comply with a courtordered injunction or order for specific performance shall constitute a breach under this Lease.
17.3.5 Damages Upon Termination. Should Landlord elect to re-enter the Property, or should Landlord take possession pursuant to legal proceedings or to any notice provided by law, this Lease shall thereupon terminate, and Landlord may recover from Tenant all amounts necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things are likely to result therefrom, including all costs (including attorneys’ fees) of repossession, removing persons or property from the Property, repairs, reletting and reasonable alterations of the Improvements in connection with reletting, if any.
17.4 Right to Receiver. Following the occurrence of an Event of Default, if Tenant (and all Leasehold Mortgagees and Limited Partners) fails after delivery of a notice of default or Notice of Breach to cure the default within the time period set forth in this Lease, Landlord, at its option, may have a receiver appointed to take possession of Tenant’s interest in the Property with power in the receiver (a) to administer Tenant’s interest in the Property, (b) to collect all funds available in connection with the operation of the Property, and (c) to perform all other acts consistent with Tenant’s obligations under this Lease, as the court deems proper. Landlord’s rights under this Section 17.4 shall be subject and subordinate to the rights of all Leasehold Mortgagees and Limited Partners.
17.5 Remedies Cumulative. No remedy in this Article XVII shall be considered exclusive of any other remedy, but the same shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute, and every power and remedy given by this Lease may be exercised from time to time and as often as occasion may arise or as may be deemed expedient, subject to any limitations referred to hereinabove.
17.6 No Election of Remedies. The rights given in this Article XVII to receive, collect or sue for any rent or rents, moneys or payments, or to enforce the terms, provisions and conditions of this Lease, or to prevent the breach or nonobservance thereof, or the exercise of 44 any such right or of any other right or remedy hereunder or otherwise granted or arising, shall not in any way affect or impair or toll the right or power of Landlord upon the conditions and subject to the provisions in this Lease to terminate Tenant’s right of possession because of any default in or breach of any of the covenants, provisions or conditions of this Lease beyond the applicable cure period.
17.7 Survival of Obligations. Nothing herein shall be deemed to affect the right of Landlord to indemnification for liability arising prior to the termination of the Lease for personal injuries or property damage or in connection with any other Claim, nor shall anything herein be deemed to affect the right of Landlord to equitable relief where such relief is appropriate. No expiration or termination of the Lease by operation of law, or otherwise, and no repossession of the Property or any part thereof shall relieve Tenant of its previously accrued liabilities and obligations hereunder, all of which shall survive such expiration, termination or repossession.
17.8 No Waiver. Except to the extent that Landlord may have agreed in writing, no waiver by Landlord of any breach by Tenant of any of its obligations, agreements or covenants hereunder shall be deemed to be a waiver of any subsequent breach of the same or any other covenant, agreement or obligation, nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be deemed a waiver by Landlord of its rights or remedies with respect to such breach.
ARTICLE XVIII
GENERAL PROVISIONS
18.1 Estoppel Certificates. At any time and from time to time, Landlord and Tenant, shall for the benefit of any Limited Partner or Leasehold Mortgagee, on at least twenty (20) days’ prior written request by the requesting party, deliver to the party requesting same a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there shall have been modifications that the same is in full force and effect as modified and stating the modifications) and the dates to which the Rent has been paid and stating whether or not, to the best knowledge of the certifying party, the other party is in default in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which the certifying party may have knowledge and such other statements or certifications reasonably requested. A prospective purchaser, mortgagee, or Limited Partner shall be entitled to request such a statement and rely on a statement delivered hereunder.
18.2 Quiet Enjoyment. Landlord covenants and agrees that Tenant (and pursuant to the provision of Articles XV and XVII, respectively, any Leasehold Mortgagee and Limited Partner, as applicable), upon paying the Rent and all other charges herein provided for and observing and keeping all covenants, agreements and conditions of this Lease on its part to be observed and kept, shall quietly have and enjoy the Property during the Term of this Lease without hindrance or molestation by anyone claiming by or through Landlord, subject, however, to the exceptions, reservations and conditions of this Lease. 45 18.3 Landlord’s Right to Enter the Property. Landlord and its agents may enter the Property or the Improvements from time to time with reasonable notice (and, upon Tenant’s request, when accompanied by representative(s) of Tenant), except for emergencies in which case no notice shall be required, to inspect the same, to post notices of nonresponsibility and similar notices, and to discharge Tenant’s obligations hereunder when Tenant has failed to do so within a reasonable time after written notice from Landlord.
18.4 Miscellaneous.
18.4.1 Severability. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.
18.4.2 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Lease shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:
(a) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (b) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.
Landlord: City of Hawthorne
4455 W. 126th Street,
Hawthorne, CA 90250
Attention: City Manager
With a required copy to:
City of Hawthorne
4455 W. 126th Street,
Hawthorne, CA 90250
Attention: City Attorney
Tenant:
And with copies to: [TBD Tax Credit Investor]
46 Leasehold Mortgagees: [TBD]
18.4.3 Captions; Construction. The captions used for the sections and articles of this Lease are inserted for convenience only and shall not be used to construe this Lease. The language in all parts of this Lease shall be construed as a whole, according to its fair meaning and not strictly for or against Landlord or Tenant.
18.4.4 Tenant's Rights. Landlord acknowledges that, subject to Tenant's obligations to pay rent pursuant to the terms of this Lease, Tenant shall have the exclusive right to deduct, claim, retain and enjoy any and all income, appreciation gain, depreciation, amortization and tax credits for federal and state tax purposes relating to the Property and Landlord shall treat Tenant as the tax owner of the Property for federal income tax purposes and shall not file any tax returns inconsistent with this treatment.
18.4.5 Binding on Successors. Subject to the restrictions on Transfers set forth in Article XVI, this Agreement shall bind and inure to the benefit of the Parties and their respective permitted successors and assigns. Any reference in this Agreement to a specifically named Party shall be deemed to apply to any permitted successor and assign of such Party who has acquired an interest in compliance with this Agreement or under law.
18.4.6 Short Form of Lease. A memorandum of lease substantially in the form attached hereto as Exhibit B shall be executed by Landlord and Tenant and recorded in the Office of the Orange County Recorder.
18.4.7 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court for Orange County, California or in the Federal District Court for the Southern District of California.
18.4.8 Attorneys’ Fees. If either Party fails to perform any of its obligations under this Agreement, or if any dispute arises between the Parties concerning the meaning or interpretation of any provision hereof, then the prevailing Party in any proceeding in connection with such dispute shall be entitled to the costs and expenses it incurs on account thereof and in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees and disbursements.
18.4.9 Indemnity Includes Defense Costs. In any case where either party is obligated under an express provision of this Lease, to indemnify and to save the other party harmless from any damage or liability, the same shall be deemed to include defense of the indemnitee by the indemnitor, such defense to be through legal counsel reasonably acceptable to the indemnitee.
18.4.10 No Brokers; No Third-Party Beneficiaries. Landlord represents that it has not engaged any broker or agent to represent Landlord in this transaction. Tenant represents 47 that it has not engaged any broker or agent to represent Tenant in this transaction. Each party agrees to indemnify and hold the other harmless from and against any and all liabilities or expenses, including attorneys’ fees and costs, arising out of, or in connection with claims made by any broker or individual for commissions or fees as a result of the acts of the indemnifying party. There shall be no third-party beneficiaries to this Lease other than the Leasehold Mortgagees and Limited Partners.
18.4.11 Disclaimer of Partnership, Lender/Borrower Relationship. The relationship of the parties under this Lease is solely that of landlord and tenant, and it is expressly understood and agreed that Landlord does not as a result of this Lease in any way nor for any purpose become a partner of Tenant or a joint venturer with Tenant in the conduct of Tenant’s business or otherwise. This Lease is not intended to, and shall not be construed to, create the relationship of principal and agent, partnership, joint venture, association, or seller and buyer as between Landlord and Tenant. It is further expressly understood and agreed that this Lease is not intended to, and shall not be construed to create the relationship of lender and borrower, and Landlord does not, solely as a result of this Lease, become a lender to Tenant.
18.4.12 Entire Agreement; Amendments. This Lease together with the DDA, the Affordable Housing Covenant and the other documents executed in connection with the DDA contains the entire agreement between the parties relative to the subject matter hereof. All previous correspondence, communications, discussions, agreements, understandings or proposals and acceptances thereof between the parties or their representatives, whether oral or written, are deemed to have been integrated into and superseded by this Lease and are of no further force and effect except as expressly provided in this Lease. No amendment or modification hereof shall be effective for any purpose unless in writing signed by Landlord and Tenant.
18.4.13 Time is of the Essence; Calculation of Time Periods. Time is of the essence for each condition, term, obligation and provision of this Agreement. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is not a business day, in which event the period shall run until the next business day. The final day of any such period shall be deemed to end at 5:00 p.m., local time at the Property. For purposes of this Agreement, a “business day” means a day that is not a Saturday, Sunday, a federal holiday or a state holiday under the laws of California.
18.4.14 Survival. The following provisions shall survive the expiration or termination of this Lease: all representations made by Tenant hereunder, Tenant’s release of Landlord pursuant to Section 2.6, Tenant’s indemnification and defense obligations hereunder and all other provisions of this Lease which state that they shall survive the expiration or termination of this Lease.
18.4.15 Headings; Interpretation. The section headings and captions used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this Agreement is the product of negotiation and compromise on the part of both Parties, and the Parties agree, that since both Parties have participated in the negotiation and 48 drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.
18.4.16 Counterparts. This Lease may be executed in one or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.
18.4.17 Action by the Landlord. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the Landlord is required or permitted under this Lease, such action shall be in writing, and such action may be given, made or taken by the City Manager or by any person who shall have been designated by the City Manager, without further approval by the governing board of the Landlord.
18.5.18 Books and Records; Inspection of Books and Records. Tenant shall keep and maintain at the Project, or elsewhere with City’s written consent, full, complete, and accurate books, records, and accounts relating to the Project, including such books, records, and accounts necessary to document Developer’s compliance with this Lease and prevailing wage laws. Upon request, Tenant shall permit the Landlord to inspect those books, records and all other documents of Tenant necessary to determine Tenant’s compliance with the terms of this Agreement.
SIGNATURES ON FOLLOWING PAGE
49 IN WITNESS WHEREOF, Landlord and Tenant have entered into this Lease as of the Effective Date.
LANDLORD:
CITY OF HAWTHORNE,
a municipal corporation
By:
__________________, City Manager
Attest:
_________________, City Clerk
TENANT:
50 EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land in the County of Los Angeles, State of California, described as follows:
THE SOUTHERLY 24 FEET OF LOT 308 OF DIVISION "B" AND LOT 309 OF DIVISION "B", EXCEPT THE SOUTHERLY 20 FEET OF SAID LOT 309, BOTH OF TRACT NO. 874, IN THE CITY OF HAWTHORNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 17 PAGES 110 AND 111 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
SAID DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN LOT LINE ADJUSTMENT/CERTIFICATE OF COMPLIANCE RECORDED MAY 5, 2010 AS INSTRUMENT NO. 20100643861 OF OFFICIAL RECORDS.
Assessor's Parcel Number: 4051-030-902
51 EXHIBIT B
FORM OF MEMORANDUM OF LEASE
52 RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Hawthorne
4455 W. 126th Street
Hawthorne, CA 90250
Attn: City Clerk
With a copy to:
______________________
)
)
)
)
)
)
)
)
The document is exempt from the payment of a
recording fee pursuant to Government Code § 27383.
MEMORANDUM OF GROUND LEASE
THE UNDERSIGNED DECLARE:
Documentary Transfer Tax is $0.00; City Transfer Tax is $0.00. [Conveyance for no consideration (long term lease with no rent).][DISCUSS] THIS MEMORANDUM OF GROUND LEASE (“Memorandum”), dated for identification purposes as of , 202__, is entered into by and between the CITY OF HAWTHORNE, a municipal corporation (“City”), and ________, L.P., a California limited partnership (“Developer”).
Pursuant to that certain Ground Lease dated _______________, 202_ (the "Lease"), Landlord hereby leases to Tenant and Tenant leases from Landlord certain real property situated in the City of Hawthorne, California, more specifically described on Exhibit A attached hereto (the "Site").
The term of the Lease commences as of the date of the Lease, and shall continue until the date that is fifty-five (55) years, unless sooner terminated pursuant to the terms of the Lease.
All of the terms of the Lease are hereby incorporated herein by reference.
This Memorandum is solely for recording purposes and shall not be construed to alter, modify, amend or supplement the Lease, of which this is a memorandum.
53 LANDLORD:
CITY OF HAWTHORNE,
a municipal corporation
By:
___________________, City Manager
Attest:
___________________________
_____________________, City Clerk
TENANT:
[notary acknowledgments required]
54 EXHIBIT A
LEGAL DESCRIPTION
The land in the County of Los Angeles, State of California, described as follows:
THE SOUTHERLY 24 FEET OF LOT 308 OF DIVISION "B" AND LOT 309 OF DIVISION "B", EXCEPT THE SOUTHERLY 20 FEET OF SAID LOT 309, BOTH OF TRACT NO. 874, IN THE CITY OF HAWTHORNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 17 PAGES 110 AND 111 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
SAID DESCRIPTION IS MADE PURSUANT TO THAT CERTAIN LOT LINE ADJUSTMENT/CERTIFICATE OF COMPLIANCE RECORDED MAY 5, 2010 AS INSTRUMENT NO. 20100643861 OF OFFICIAL RECORDS.
Assessor's Parcel Number: 4051-030-902
10325-0001\3133793v5.doc 35
Exhibit H
PRELIMINARY FINANCING PLAN
(To be added.)
Statutory Exemptions. State code number:
_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:
Project Location - City: ______________________ Project Location - County:
Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):
Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:
Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:
1. Attach certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:
Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:
Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011
AGENDA ITEM NO. 10.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: Planning
City Manager: Department Head:
SUBJECT:
Joint Powers Agreement (JPA) to participate in the South Bay Regional Housing Trust (SBRHT).
RECOMMENDED MOTION:
That the City Council approve joining the SBRHT and authorize the Mayor to execute the JPA, which will help fund the development and construction of affordable housing in the South Bay.
DISCUSSION:
BACKGROUND
As part of a REAP 2.0 project funded through SCAG, the South Bay Cities Council of Governments (SBCCOG) is creating a South Bay Regional Housing Trust (SBRHT). If formed, the SBRHT will help fund the development and construction of affordable housing units in cities that are members of the Trust, and only for development projects supported by the City in which it is proposed. Although the SBCCOG is leading the early feasibility work, the SBRHT will be a separate joint powers authority with its own Board of Directors. Four cities must approve the JPA for the SBRHT to form.
Over the past year, the SBCCOG's consultant, CivicHome, has been developing a SBRHT strategic plan, joint powers agreement, staffing plan, budget, and programs for the SBRHT Board to consider adopting when formed. A strategic plan advisory committee consisting of SBCCOG Board members, City staff, housing experts/, and affordable housing developers provided input over a series of four meetings throughout the process. CivicHome presented an update to the SBCCOG Board at its October 2025 meeting and to the South Bay City Managers group on November 19th. At its meeting on November 20, 2025, the SBCCOG Board of Directors voted to recommend member agencies move forward with the formation of the SBRHT.
DISCUSSION
Since the SBCCOG began working on the SBRHT, more information about funding coming to the South Bay through Measure A has become available. In particular, the SBCCOG will be receiving approximately $7.3 million annually through the Los Angeles County Affordable Housing Solutions Agency's (LACAHSA) "Production, Preservation, and Ownership (PPO)" program. LACAHSA also has agency matching funds that may be available and could increase that amount to around $14 million.
Additionally, these funds, along with other Measure A funding, could be used to offset most or all the SBRHT administrative costs, particularly during the startup period.
The SBCCOG is limited in its use of LACAHSA funds in ways that the Housing Trust would not be.
Primarily, the SBCCOG is not allowed to make or develop loans, so all allocations of PPO funds made by the SBCCOG would have to be in the form of grants or subsidies. These funds would be given out to a project and never returned for additional use. The SBRHT will have lending authority and could also provide soft development loans, construction and pre-development loans, preservation and acquisition stakes, master leasing, and direct service or homebuyer assistance programs. These approaches will be revenue generating and allow for these public dollars to come back to the Trust over time and be reprogrammed to maximize their use. The San Gabriel Valley Regional Housing Trust (formed several years ago) is generating over $230,000 annually in interest and loan fee revenue.
Although there will be administrative costs to operate the SBRHT, SBCCOG staff believes that most or all those costs could be covered through administrative dollars available through LACAHSA's programs.
This will allow for the SBRHT to offer low to no membership fees, particularly during the first year or two as the organization gets formed. Orange County and Gateway Cities trusts have also started with little or no membership fees and have been able to offset them through administrative funding received through grants and other funding going into their trusts. It is important to note, however, that whether there will be membership costs for the SBRHT after the first year will be determined by the Trust Board of Directors, not the SBCCOG. For the first year, start-up costs can be covered completely with the LACAHSA funds that the SBCCOG received with SBCCOG Board approval.
If the SBRHT is not formed and the SBCCOG ultimately provides grants using PPO funds, many administrative costs will still be incurred. For example, the SBCCOG will still be required to hire consultant experts to evaluate and vet the housing developments seeking grant funding. These costs are practically unavoidable but are covered through Measure A funding.
Pending Legislation to Modify SBRHT
SBCCOG staff has been working with SBCCOG Legal Counsel and Senator Allen's office to explore amendments to the initial SBRHT formation legislation. Although modeled on legislation for other trusts such as the one in San Gabriel Valley, several items have been re-evaluated since passage of that bill (SB 1444). The amendments being sought include:
Removing the SBCCOG from involvement in determining the number of SBRHT Board of Directors, their selection, and the responsibility for filling vacancies.
Adding language to provide flexibility for the SBRHT Board to determine when they choose their Chair and Vice-Chair.
Addition of the ability to fund the development and construction of moderate-income housing.
Allowing member agencies to appoint non-elected officials for SBRHT Board alternates Currently, SB 1444 requires the SBRHT Board (regardless of delegate or alternate status) to be a mayor, council member, or LA County Supervisor of the member agency. Several SBCCOG Board members suggested that non-elected officials be allowed to be alternate SBRHT Board members if the City so designates. This approach is similar to the Clean Power Alliance, which has proven to be very helpful as deliberations among these special boards take a lot of time, and it might be difficult for council members to have the time for the necessary oversight.
When a bill to revise SB 1444 is drafted, the SBCCOG will be soliciting support letters from South Bay cities to encourage the Legislature to approve these changes. Despite these pending changes, the SBCCOG Board of Directors recommends approval of the SBRHT JPA with its current language and would recommend SBRHT members approve an amended JPA in the future after any SB 1444 revisions are enacted. The current JPA is written to follow the current SB 1444 language and was developed by the South Bay City Managers working group and SBCCOG Legal Counsel Michael Jenkins.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Goal 5: Develop a strategy for major developments.
FISCAL IMPACT:
There is no immediate fiscal impact associated with approving the South Bay Regional Housing Trust Joint Powers Agreement. If determined necessary and approved by its Board of Directors in the future, membership dues may be required.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
JPA summary presentation
COG vs. SBRHT presentation
3_SBRHT JPA
SOUTH BAY REGIONAL HOUSING TRUST
STRATEGIC PLAN OVERVIEW
&
JPA SUMMARY
EXECUTIVE SUMMARY
• Mission Statement
• To empower South Bay cities with flexible funding,
strategic guidance, and technical assistance that advance local housing priorities, expand housing opportunity, and support the development and preservation of affordable
and supportive housing across the region.
• Vision Statement
• A South Bay region collaborating to expand housing
opportunities through innovation, strategic partnerships, and coordinated Trust resources—supporting access to
diverse housing choices that strengthen community
stability and economic vitality.
• Governance Board
• One Trust Board Director from each
member city + Two Trust Board
Directors representing housing experts.
• Trust Staff
• Option 1: SBCCOG Employees
• Option 2: Contracted Consulting Firm
• Organization Chart
• Advisory Committee Framework
• Purpose and Role
• Membership Composition
• Meeting frequency and output
• Benefits to the Trust
GOVERNANCE, TRUST STAFF, AND
ADVISORY COMMITTEE
TRUST FORMATION & IMPLEMENTATION
GOALS
1. Secure initial capital funding commitments.
2. Establish transparent, accountable, and sustainable governance.
3. Promote regional collaborative and shared solutions.
4. Strengthen local capacity through technical assistance.
5. Establish performance metrics and evaluation tools.
6. Building the Trust’s brand and demonstrating early impact.
7. Design and launch housing funding programs
SOUTH BAY REGIONAL HOUSING TRUST
DRAFT JOINT EXERCISE OF POWERS
AGREEMENT
INTRODUCTION
• 2022 Legislation added to the CA Government Code section 6539.9 authorizing the creation of the South Bay Regional Housing Trust.
• Purpose: Receive and leverage public and private funding for planning and construction of housing of all types and tenures for persons and families of Extremely-Low, Very-Low, and Low-Income.
• Term – The Effective Date of the JPA will be the date of approval by the fourth city to join the Trust.
LIMITATION ON POWERS
• Regulate land use within the jurisdiction of any of the Parties; • Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approving the funding for or approval of a development project;
• Require or incentivize inclusionary zoning requirements; • Require the Parties to dedicate or assign funding for any SBRHT obligations or programs; • Fund or approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited; • Require the Parties to accept or provide any number of housing units as a prerequisite to joining or remaining a member of SBRHT; and
• Affect the individual power of each Party separately to implement affordable housing projects and programs generated within its jurisdictional boundaries.
TERMS OF THE JPA
• One elected official from each Trust member City, appointed by that City Council + Two Housing Experts appointed by the City Managers Committee. • Withdrawal – anytime with written notice and executed copy of city resolution subject to notice received at least 90 days prior to start of fiscal year and payment of any administrative fees.
1 SOUTH BAY HOUSING TRUST
Why A South Bay Housing Trust?
• Voters approved Measure A in
2024; legislating ~$13 million
a year for Housing and
Prevention funding for
SBCCOG
• This presentation will talk
about the funds that are
dedicated to Production and
Preservation, and Ownership
of housing as those are the
funds we would be
considering for the proposed
Housing Trust
2 LACAHSA PPO FUNDS
Production, Preservation, and Ownership (PPO)
• SBCCOG mandated to
program $7.3 million of
LACAHSA PPO funds.
• LACAHSA agency
funds can also match
our funding – so
potentially +/- $14
million of funding for
our cities.
(allocations determined by
low income RHNA numbers)
3 SGV AND GATEWAY
SGV and Gateway Housing Trust Before LACAHSA
SGV and
Gateway
COGS
Housing
Trust
Housing
Trust +
LACAHSA
LACAHSA
• SGV and Gateway formed their Housing Trust first, and then incorporated LACAHSA funds into their Trust
2020/2023 2025
4 SBCCOG
SBCCOG Received LACAHSA Funding First
SBCCOG LACAHSA
• SBCCOG has received LACAHSA funding and is
contemplating a Housing Trust
2025
5 PROBLEM
SBCCOG May Need a Trust to Fulfill LACAHSA Portfolio
LACAHSA Product Portfolio:
• Grants
• Soft Development Loans (revenue generating)
• Construction/Pre-Development Loans (revenue generating) • Preservation Acquisition/Equity stakes (revenue generating) • Master Leasing
• Rental or Operating Subsidies
• Direct Service - Homebuyer Assistance (revenue generating) Activities in Red may not be possible under SBCCOG current authority – handicapping our ability to maximize our LACAHSA funding However, they would be possible under a Housing Trust
6 SGV REVENUE EXAMPLE
SGV Housing Trust Generating Revenue
• SGV Housing Trust is generating
over $230,000 a year in Interest and
Loan Fee Revenue
• Their Revolving Loan Fund will
receive its first loan repayment,
allowing their Trust to recycle those
funds to another project
• We can achieve similar results
with our LACAHSA funds, but
need a Housing Trust in order
to do it
7 ALL CITIES CAN BENEFIT
What about cities with no development opportunities?
If cities have no development opportunities, there are other ways to participate in LACAHSA PPO Funds + Housing Trust ▪ Preservation of existing affordable housing
▪ Master Leasing
▪ Rent or Operating Subsidies
▪ First Time Homebuyer Assistance
8 Evictions
• No city is immune to financial stress that
constituents face, whether they are renters
or homeowners
• Evictions are one pathway into
homelessness
9 SBCCOG LACAHSA
SBCCOG LACAHSA Activity FY25/26
• SBCCOG issued soft notice of funding
availability in September – sent to all cities
• Hawthorne and Inglewood may have viable
projects – currently being evaluated projects
totaling 120 units
• Other cities have reached out to discuss
interest in developing opportunities
• SBCCOG will be developing programs,
funding criteria, and documentation
requirements for the evaluation
This activity
is similar to a
housing trust
10 HOUSING TRUST SCENARIO
SBCCOG LACAHSA + Housing Trust Option
• Without a Housing Trust - Hawthorne and Inglewood – may be limited in how we can help them
• Will encourage those cities to also apply for LACAHSA agency funds • Option to wait for the Trust when a loan or other more complicated arrangement could be done – COG can only grant
• Recommendation to come back at a future meeting
• In order to maximize our LACAHSA funding – consider moving all LACAHSA Production, Preservation, and Ownership activities into the SBCCOG Housing Trust JPA
SBCCOG LACAHSA
2025 Housing
Trust
2026
11 SBCCOG LACAHSA
LACAHSA Production, Preservation, and Ownership
• IF HOUSING TRUST
• Housing Trust could work directly with developers on behalf of cities (pertinent for small cities)
• Developers would know to come to a Trust
• Cities must approve all projects funded by the Trust in their city • Benefits for all cities on LACAHSA projects
• Need to increase staffing and hire consultants
• NO HOUSING TRUST
• Cannot implement full LACAHSA Portfolio (Loans, Acquisitions, Ownership..) • Work directly with cities, but not work with developers on behalf of cities • LACAHSA would still benefit all cities
• Would still need to increase staffing and hire consultants 12 NEXT STEPS
Information You Need to Know to Decide
Questions?
99999.91743\44264840.1
1 | P a g e
JOINT EXERCISE OF POWERS AGREEMENT
of the
SOUTH BAY REGIONAL HOUSING TRUST
THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”) is made this ____ day of ________, 2026 (the “Effective Date”), by and between the public agencies listed in Exhibit A, attached hereto and incorporated herein by reference (each a “Party” and, collectively, the “Parties”).
RECITALS
A. The Parties are authorized to and have a strong interest in promoting the health, safety, and welfare of the residents within their geographic boundaries.
B. The Parties acknowledge that the State has declared the existence of a shortage of affordable housing.
C. The Parties find it in their mutual interest to increase the availability of affordable housing, workforce housing and supportive housing and to reduce homelessness in a coordinated manner on a regional level.
D. An adequate supply of housing throughout the South Bay subregion will provide social and economic benefits to residents and taxpayers of the Parties.
E. California Government Code section 6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes cited herein and permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities.
F. The Parties find that each of them has the individual power to implement the housing projects contemplated by this Agreement making them eligible under the Act to enter into this Agreement.
G. In 2022, the Act was amended by the addition of California Government Code section 6539.9, which expressly authorizes the creation of a South Bay Regional Housing Trust by way of approval of this Agreement in order to promote public-private partnerships, nonprofit collaborations and otherwise to fund housing to assist the homeless population and persons and families of extremely low, very low, and low income as defined in Section 50093 of the California Health and Safety Code within the South Bay subregion.
99999.91743\44264840.1
2 | P a g e
H. This Agreement shall not be interpreted to limit any Party’s authority over land use decision making or otherwise limit their respective sovereign powers within their respective jurisdictions.
NOW, THEREFORE, in consideration of the mutual promises set forth below, the Parties agree as follows:
Section 1. Creation and Purpose.
(a) Creation of SBRHT. Pursuant to the Joint Exercise of Powers Act, including Government Code section 6539.9, there is hereby created a public entity to be known as the “South Bay Regional Housing Trust” (“SBRHT”). Pursuant to Section 6503.5 of the California Government Code, SBRHT shall be a public entity separate and apart from the Parties and shall administer this Agreement.
(b) Purpose. This Agreement is made pursuant to the Joint Exercise of Powers Act for the purpose of creating the SBRHT as a public entity separate from the Parties to exercise common powers with respect to receiving and leveraging public and private financing and funds for the planning and construction of housing of all types and tenures for persons and families of extremely low-, very low-, and low- income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing. The purpose of this Agreement shall be accomplished, and common powers exercised in the manner set forth in this Agreement. Nothing contained in this Agreement shall preclude any Party from establishing, maintaining, or providing social programs or services to its respective residents as it deems proper and necessary.
Section 2. Term and Termination
(a) Term. This Agreement shall become effective, and SBRHT shall come into existence, upon the approval of this Agreement by the governing bodies of four eligible parties.
The Effective Date will be the date of approval by the fourth party. This Agreement shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section.
(b) Termination. This Agreement may be terminated by agreement of a majority vote of the Parties. Upon termination of this Agreement, SBRHT shall be dissolved and, after payment of or provision for payment of all liabilities, the assets of SBRHT shall be distributed to the Parties in proportion to the contributions of each Party to SBRHT and the amounts paid by each Party in connection with SBRHT’s activities.
Section 3. Powers and Duties of SBRHT.
(a) General Powers. SBRHT shall have all the powers common to the Parties to this Agreement necessary or convenient, specified, or implied, to accomplish the purpose of this Agreement as set forth in Section 1, subject to the restrictions set forth in this 99999.91743\44264840.1
3 | P a g e
Section 3, subdivision (c) below. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act, including without limitation all powers set forth in Government Code section 6539.9, and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon the City of ____________, a ___________ city, in the exercise of similar powers. (b) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, SBRHT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following:
1. to make and enter into contracts;
2. to hire employees or contract for staff assistance, including but not limited to contracting with other public agencies;
3. to sue and be sued in its own name;
4. to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America, the State of California, Los Angeles County, a Party to this Agreement, or any other agency providing funding related to the purposes of this Agreement;
5. to invest any money in the treasury pursuant to Section 6505.5 of the Joint Exercise of Powers Act that is not required for the immediate necessities of SBRHT, as SBRHT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code;
6. to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith;
7. to incur and discharge debts, liabilities, and obligations, subject to the limitations set forth in this Agreement and to the extent permitted by law;
8. to assume ownership of affordability covenants governing a property from another entity in order to preserve the units as affordable;
9. to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement;
10. to employ and compensate legal counsel determined appropriate by SBRHT in carrying out the purposes of this Agreement;
11. to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by SBRHT in connection with the accomplishment of the purposes of this Agreement; 99999.91743\44264840.1
4 | P a g e
12. for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which SBRHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;
13. for the purposes of renting space for SBRHT to operate, to lease to, and to lease from, a Party or any other person or entity, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which SBRHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;
14. to solicit charitable contributions from private sources;
15. to acquire, hold or dispose of property, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and government entities;
16. to partner with Parties on funding solicitations and other opportunities for the purposes set forth in this Agreement, including but not limited to jointly exercising powers with a Party pursuant to the Joint Exercise of Powers Act;
17. to authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the SBRHT.
18. to propose amendments to this Agreement;
19. to the extent not herein specifically provided for, to exercise any and all other powers as may be provided for SBRHT in the Joint Exercise of Powers Act or any other applicable law; and
20. to carry out and enforce all the provisions of this Agreement. (c) Limitation on Powers. This Agreement does not authorize SBRHT do any of the following:
1. Regulate land use within the jurisdiction of any of the Parties;
2. Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approving the funding for or approval of a development project;
3. Require or incentivize inclusionary zoning requirements;
4. Require the Parties to dedicate or assign funding for any SBRHT obligations or programs;
99999.91743\44264840.1
5 | P a g e
5. Fund or approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited;
6. Require the Parties to accept or provide any number of housing units as a prerequisite to joining or remaining a member of SBRHT; and
7. Affect the individual power of each Party separately to implement affordable housing projects and programs generated within its jurisdictional boundaries.
Section 4. Members
The members of SBRHT shall be the Parties to this Agreement, and such other public agencies as may join SBRHT after execution of this Agreement. New members may join on the terms and conditions set forth in Section 10 hereof. Only the County of Los Angeles and cities within the jurisdiction of the South Bay Cities Council of Governments may be a party to this Agreement and a member of SBRHT. The SBRHT bylaws may provide for affiliate memberships or other categories of membership for eligible entities which do not want to be full members.
Section 5. Board of Directors
(a) Selection of Directors. SBRHT shall be governed by a Board of Directors selected as follows:
1. One elected official from each Party to this Agreement, appointed by that Party’s governing body and ratified by the governing board of the South Bay Cities Council of Governments. Each Party may also appoint one of its elected officials as an Alternate Director, who may serve in the absence of the Party’s appointed Director.
2. Two Directors that are experts in homelessness or housing policy appointed by the South Bay Cities Council of Governments City Managers Committee and ratified by the governing board of the South Bay Cities Council of Governments . (b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of SBRHT shall be vested in and exercised by, and its property and its affairs administered by, the Board of Directors.
(c) Advisory Bodies. The Board of Directors may appoint advisory bodies that may include such persons as are designated by the Board of Directors. The Board of Directors shall adopt bylaws that govern the appointment of advisory bodies should it determine in its discretion to appoint such advisory bodies.
(d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as Director; provided such expenses have been previously approved by the Board of Directors and incurred in accordance with any SBRHT policies or procedures governing the same.
99999.91743\44264840.1
6 | P a g e
(e) Term. Members of the Board shall serve for a two-year term. There is no limit to the number of consecutive terms members may serve. In the event of a vacancy, the Party whose appointee has vacated the position shall appoint a replacement within 60 days of the effective date of the vacancy, subject to ratification by the governing board of the South Bay Cities Council of Governments. The replacement will serve out the remainder of the term of the Director that they replaced. The two Directors that are experts in homelessness or housing policy may be removed with or without cause at any time by a majority vote of the Board of Directors.
(f) Meetings of the Board of Directors.
1. Call, Notice and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, special meetings and adjourned special meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act, Government Code sections 54950 et seq.
2. Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour, unless otherwise determined by the Board. No notice of any regular meeting of the Board of Directors need be given to the individual Directors.
3. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. Notice of special meetings shall be provided to all Parties.
4. Quorum. A majority of the seated members of the Board of Directors shall constitute a quorum at any meeting of the Board except that less than a quorum may adjourn a meeting to another time and place. Unless otherwise provided in this Agreement, actions and decisions of the Board of Directors may be taken by a majority of the quorum present at any meeting.
5. Minutes. The Board of Directors shall cause minutes of all regular, adjourned regular, and special meetings to be kept and presented to the Board for approval at a subsequent meeting.
6. Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors at the first meeting held in each calendar year. In the event that the chairperson or vice chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the chairperson to act, the vice chairperson 99999.91743\44264840.1
7 | P a g e
shall act as chairperson. The chairperson, or in the chairperson’s absence, the vice chairperson, shall preside at and conduct all Board of Director’s meetings.
7. Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations, and bylaws for the conduct of its meetings and affairs as the Board determines is necessary or convenient.
Section 6. Staff and Treasurer
(a) Staff
1. SBRHT may contract with a Party or the SBCCOG for staff pursuant to Section 6(d), hire its own employees, or retain independent contractors, agents, or volunteers as the Board of Directors may deem necessary to carry out any of SBRHT’s powers, upon such terms and conditions as the Board may require, including the retaining of professional and technical assistance, provided that adequate funds are available in SBRHT’s budget and are appropriated by SBRHT therefor.
2. None of the officers, agents, or staff, if any, directly contracted by SBRHT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties.
(b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.6, the Board of Directors shall appoint an officer or employee of SBRHT, or an officer or employee of a public agency that is a Party, or a certified public accountant to hold the offices of treasurer and auditor for SBRHT. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for SBRHT required by Sections 6505, 6505.5 and 6505.6 of the Government Code, including any subsequent amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of SBRHT. The treasurer and auditor shall assure that there shall be strict accountability of all funds and reporting all receipts and disbursements of SBRHT.
The treasurer and auditor of SBRHT shall be required to file an official bond with the Board of Directors in an amount which shall be established by the Board. Should the existing bond or bonds or any such officer be extended to cover the obligations provided herein, said bond shall be the official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be an appropriate expense of SBRHT. (c) Attorney. The Board of Directors shall have the power to appoint one or more legal advisors to SBRHT who shall perform such duties as may be prescribed by the Board. (d) Administrative Services and Reimbursement of Costs.
1. The Board of Directors may contract with a Party to provide necessary administrative services to SBRHT, including the services described in Section 6(a), (b) and (c). The amount charged by the Party to provide such services to SBRHT shall be fixed by 99999.91743\44264840.1
8 | P a g e
agreement between the Board of Directors and the governing body of the Party providing such services. In the absence of an agreement on costs, the Party providing services to SBRHT under this Section 6 may charge SBRHT the amounts necessary to recover the direct and indirect costs of such services.
2. If SBRHT contracts with a Party to provide SBRHT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party’s employees and officers shall not constitute a liability of SBRHT or any other Party. This Section 6(d)(2) shall not preclude a Party providing administrative services to SBRHT pursuant to a contract with SBRHT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge SBRHT for providing such services.
Section 7. Financial Provisions
(a) Fiscal Year. The Fiscal Year of SBRHT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of SBRHT shall commence on the Effective Date and end on the immediately following 30th day of June. (b) Budget.
1. General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by the vote of a majority of the total membership of the Board of Directors. The budget shall distinguish between administrative costs (i.e., the cost of operating SBRHT) and Program costs (i.e., the financing of the programs funded or sponsored by SBRHT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of the total membership of the Board.
2. Expenditures for the Approved Budget. The payment of all SBRHT obligations is limited to the amount of appropriations allowed in SBRHT’s approved budget, except as it may be revised with the approval of a majority of the total membership of the Board of Directors.
(c) Contributions by the Parties.
1. Administrative Cost Contributions. In consideration of the mutual promises contained herein, the Parties agree that they shall make annual contributions (each a “Fee” and collectively the “Fees”) towards the budgeted administrative costs of SBRHT as set forth in a duly adopted Board resolution. The Fees shall be assessed annually. After the first fiscal year, the Fees shall increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for all urban consumers in the Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the Fees are assessed.
Payment of the Fees shall be due within 30 days of receipt of an invoice from the SBRHT. 99999.91743\44264840.1
9 | P a g e
The invoice shall indicate how the Fees were calculated. A Party's contribution to SBRHT's administrative costs shall be in the form of money, unless the Board of Directors approves another form of contribution such as services, personal property or use of real or personal property, or other in-kind contributions. The acceptance and valuation of any such non-monetary contributions may be used to offset in whole or part a Party’s contribution as determined in the sole and absolute discretion of the Board of Directors. Notwithstanding the above, after the first fiscal year the Board of Directors may establish Fees in an amount the Board of Directors deems financially prudent.
2. Program Cost Contribution. The particular programs and program budget, funded, sponsored or operated by SBRHT, as well as the level of and mechanisms for the involvement of SBRHT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors.
(d) Accounts and Reports.
1. Books and Records. There shall be strict accountability of all SBRHT funds and accounts and report of all SBRHT receipts and disbursements. Without limiting the generality of the foregoing, SBRHT shall establish and maintain such funds and accounts as may be required by good government accounting practice. The books and records of SBRHT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives.
2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for SBRHT shall cause an annual independent audit of the accounts and records of SBRHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public.
3. Annual Financial Report. Pursuant to section 6539.9(d) of the Government Code, SBRHT shall publish an Annual Financial Report that shall describe the funds received by SBRHT and the use of such funds by SBRHT. The Annual Financial Report shall describe how the funds received by SBRHT have furthered the purposes of SBRHT. (e) Funds. Subject to the applicable provisions of any instrument or agreement which SBRHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse SBRHT funds, the person appointed by the Board of Directors to perform the treasurer function for SBRHT shall receive, have the custody of and disburse SBRHT funds as nearly as possible in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement in order to carry out any of the provisions or purposes of this Agreement.
Section 8. Amendments.
99999.91743\44264840.1
10 | P a g e
(a) This Agreement may be amended or modified with the approval of two-thirds of all the Parties through formal action approving such an amendment by the Parties’ respective governing bodies.
(b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the parties, their officers, employees or agents, shall be valid or effective unless made in the form of a written amendment which is formally adopted and executed by the Parties as provided in subparagraph (a) of this Section.
Section 9. Non-Liability for Obligations of SBRHT.
(a) The debts, liabilities, and obligations of SBRHT shall not be considered the debts, liabilities and obligations of any of the Parties or their respective officers, employees, agents or volunteers, or the personal debts, liabilities and obligations or the Directors, officers or employees of SBRHT.
1. Indemnification. The SBRHT shall defend, indemnify and hold harmless each Party, its officers, agents, employees, representatives and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with SBRHT’s administration of this Agreement, including such third party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, agent, employee, representative or volunteer of SBRHT. The SBRHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions or willful misconduct, whether in whole or part. The SBRHT shall finance its obligation pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) as determined by the Board. In the event the SBRHT’s financial obligations to indemnify, defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the SBRHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and confer with SBRHT in good faith to negotiate alternative means or mechanisms by which SBRHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive SBRHT’s obligations of indemnity or defense to each Party as first set forth above in this Section. Nothing herein shall obligate any Party to indemnify or hold harmless SBRHT for any Unfunded Liability.
2. Assignment. Each Party shall assign to the SBRHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the SBRHT has met its obligations to defend and indemnify such Party pursuant to this Section.
99999.91743\44264840.1
11 | P a g e
3. Survival. SBRHT’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination.
Section 10. Admission and Withdrawal of Parties.
(a) Admission of New Parties. It is recognized that additional public agencies other than the original Parties, may wish to join SBRHT after the Effective Date. The County of Los Angeles and any city within the SBCCOG may become a Party to SBRHT upon such terms and conditions as are established by the Board of Directors. As a condition precedent to becoming a Party more than six months after the Effective Date, an eligible entity may thereafter become a Party to this Agreement; provided that (1) this Agreement is adopted by its governing body and (2) the eligible entity pays a late joining fee. The late joining fee shall be calculated by totaling the annual fee the eligible entity would have paid under this Agreement had it been a Party in all years prior and up until the Effective Date.
Notwithstanding the foregoing, an eligible entity’s late joining fee shall not exceed two times the amount of the applicable annual administrative fee existing at the time it becomes a Party. Payment shall be due within 30 days of receipt of an invoice from SBRHT. (b) Withdrawal from SBRHT. A Party may withdraw from SBRHT at any time upon its governing body’s adoption of a resolution stating the Party’s intent to withdraw from SBRHT and written notice of withdrawal accompanied by an executed copy of the resolution of intent to the SBRHT. The withdrawal of any Party, unless otherwise provided by the Board of Directors, shall be subject to the following prerequisites and conditions:
1. The withdrawal shall be effective immediately upon receipt by the SBRHT of the written notice of withdrawal, subject to subsection (2) below.
2. If the withdrawal notice is received by the SBRHT less than ninety (90) days before the start of a fiscal year or after the commencement of a fiscal year but before payment of that year’s Section 7(c) contribution, the withdrawal shall not be effective unless and until the withdrawing Party has fully paid that fiscal year’s contribution; otherwise, the notice of withdrawal shall be null and void.
3. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of SBRHT as set forth in Section 2 above.
Withdrawn members shall not be entitled to any reimbursement of Fees.
4. Withdrawal of a Party will not relieve that Party of prior financial obligations of liabilities unless otherwise approved by the Board.
Section 11. Notices.
99999.91743\44264840.1
12 | P a g e
(a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed at the addresses set forth in Exhibit A, or to such other address as may be designated in writing to SBRHT for formal notice.
Section 12. Miscellaneous.
(a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement 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 Agreement.
(c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California.
(d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligation hereunder without the written consent of a majority of the other Parties.
Section 13. Sunset Date.
In the event that a source of funding is not identified and funding not obtained to cover SBRHT’s administrative costs on or before December 31, 2026, this Agreement will on that date expire automatically and be null and void without further action of the Parties.
IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows:
99999.91743\44264840.1
13 | P a g e
(NAME OF CITY)
PASSED AND ADOPTED by the City Council of the City of Hawthorne at a meeting held on the 27th day of January, 2026.
ALEX VARGAS,
MAYOR, CITY OF HAWTHORNE
ATTEST:
DAYNA S. WILLIAMS-HUNTER,
CITY CLERK
APPROVED AS TO FORM:
DAVID CACERES,
INTERIM CITY ATTORNEY
99999.91743\44264840.1
14 | P a g e
EXHIBIT A
Parties to this Agreement and their Addresses for notice pursuant to Section 11 are as follows:
AGENDA ITEM NO. 11.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: Public Works
City Manager: Department Head:
SUBJECT:
General Services Agreement between the County of Los Angeles and the City of Hawthorne.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the General Services Agreement between the County of Los Angeles and the City of Hawthorne.
DISCUSSION:
This renewal will extend the City's current General Service Agreement with Los Angeles County for another five (5) years. This agreement enables the City to contract for general services including minor street repairs, traffic signal repairs and installation, safety lighting and maintenance, catch basin maintenance, emergency crew response, and other general maintenance services on an "as needed" basis.
The existing five-year General Service Agreement between the City and the County of Los Angeles expires on June 2026. Over the last five years, the City has continued to use the County's services provided for in the General Service Agreement. Staff works closely with the County regularly and is satisfied with the services that the City receives from it.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
The City shall continue to work closely with funding and regulatory agencies that support our infrastructure. City departments shall continue to work cooperatively to ensure that improvements to the infrastructure are kept apace of wear and tear as well as technological advances.
FISCAL IMPACT:
None. Funds for these services are available in the adopted Fiscal Year 2025-2026 budget and will be paid with approved and allocated funds for each year.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
General Agreement Services
1 of 6
GENERAL SERVICES AGREEMENT
THIS GENERAL SERVICES AGREEMENT ("Agreement"), dated for purposes of reference only, July 1, 2026, is made by and between the County of Los Angeles, hereinafter referred to as the "County," and the City of Hawthorne, hereinafter referred to as the "City."
RECITALS:
(a) The City is desirous of contracting with the County for the performance by its appropriate officers and employees of City functions.
(b) The County is agreeable to performing such services on the terms and conditions hereinafter set forth.
(c) Such contracts are authorized and provided for by the provisions of Section 56½ of the Charter of the County of Los Angeles and Section 51300, et seq., of the Government Code.
THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. The County agrees, through its officers, agents and employees, to perform those City functions, which are hereinafter provided for.
2. The City shall pay for such services as are provided under this Agreement at rates to be determined by the County Auditor-Controller in accordance with the policies and procedures established by the Board of Supervisors.
These rates shall be readjusted by the County Auditor-Controller annually effective the first day of July of each year to reflect the cost of such service in accordance with the policies and procedures for the determination of such rates as adopted by the Board of Supervisors of County.
3. No County agent, officer or department shall perform for said City any 2 of 6
function not coming within the scope of the duties of such agent, officer or department in performing services for the County.
4. No service shall be performed hereunder unless the City shall have available funds previously appropriated to cover the cost thereof.
5. No function or service shall be performed hereunder by any County agent, officer or department unless such function or service shall have been requested in writing by the City on order of the City Council thereof or such officer as it may designate and approved by the Board of Supervisors of the County, or such officer as it may designate, and each such service or function shall be performed at the times and under circumstances which do not interfere with the performance of regular County operations.
6. Whenever the County and City mutually agree as to the necessity for any such County agent, officer or department to maintain administrative headquarters in the City, the City shall furnish at its own cost and expense all necessary office space, furniture, and furnishings, office supplies, janitorial service, telephone, light, water, and other utilities. In all instances where special supplies, stationery, notices, forms and the like must be issued in the name of the City, the same shall be supplied by the City at its expense.
It is expressly understood that in the event a local administrative office is maintained in the City for any such County agent, officer or department, such quarters may be used by the County agent, officer or department in connection with the performance of its duties in territory outside the City and adjacent thereto provided, however, that the performance of such outside duties shall not be at any additional cost to the City.
7. All persons employed in the performance of such services and functions for 3 of 6
the City shall be County agents, officers or employees, and no City employee as such shall be taken over by the County, and no person employed hereunder shall have any City pension, civil service, or other status or right.
For the purpose of performing such services and functions, and for the purpose of giving official status to the performance hereof, every County agent, officer and employee engaged in performing any such service or function shall be deemed to be an agent, officer or employee of said City while performing service for the City within the scope of this agreement.
8. The City shall not be called upon to assume any liability for the direct payment of any salary, wages or other compensation to any County personnel performing services hereunder for the City, or any liability other than that provided for in this agreement.
Except as herein otherwise specified, the City shall not be liable for compensation or indemnity to any County employee for injury or sickness arising out of his or her employment.
9. The parties hereto have executed an Assumption of Liability Agreement approved by the Board of Supervisors on December 27, 1977 and/or a Joint Indemnity Agreement approved by the Board of Supervisors on October 8, 1991. Whichever of these documents the City has signed later in time is currently in effect and hereby made a part of and incorporated into this agreement as set out in full herein. In the event that the Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto.
10. Each County agent, officer or department performing any service for the 4 of 6
City provided for herein shall keep reasonably itemized and in detail work or job records covering the cost of all services performed, including salary, wages and other compensation for labor, supervision and planning, plus overhead, the reasonable rental value of all County-owned machinery and equipment, rental paid for all rented machinery or equipment, together with the cost of an operator thereof when furnished with said machinery or equipment, the cost of all machinery and supplies furnished by the County, reasonable handling charges, and all additional items of expense incidental to the performance of such function or service.
11. All work done hereunder is subject to the limitations of the provisions of Section 23008 of the Government Code, and in accordance therewith, before any work is done or services rendered pursuant hereto, an amount equal to the cost or an amount 10% in excess of the estimated cost must be reserved by the City from its funds to ensure payment for work, services or materials provided hereunder.
12. The County shall render to the City at the close of each calendar month an itemized invoice which covers all services performed during said month, and the City shall pay County therefore within thirty (30) days after date of said invoice.
If such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County is entitled to recover interest thereon. Said interest shall be at the rate of seven (7) percent per annum or any portion thereof calculated from the last day of the month in which the services were performed.
13. Notwithstanding the provisions of Government Code Section 907, if such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County may satisfy such indebtedness, 5 of 6
including interest thereon, from any funds of any such City on deposit with the County without giving further notice to said City of County's intention to do so.
14. This Agreement shall become effective on the date herein-above first mentioned and shall run for a period ending June 30, 2031, and at the option of the City Council of the City, with the consent of the Board of Supervisors of County, shall be renewable thereafter for an additional period of not to exceed five (5) years.
15. In the event the City desires to renew this Agreement for said five-year period, the City Council shall not later than the last day of May 2031, notify the Board of Supervisors of County that it wishes to renew the same, whereupon the Board of Supervisors, not later than the last day of June 2031, shall notify the City Council in writing of its willingness to accept such renewal. Otherwise, such Agreement shall finally terminate at the end of the aforedescribed period.
Notwithstanding the provisions of this paragraph herein-above set forth, the County may terminate this Agreement at any time by giving thirty (30) days' prior written notice to the City. The City may terminate this Agreement as of the first day of July of any year upon thirty (30) days' prior written notice to the County.
16. This Agreement is designed to cover miscellaneous and sundry services which may be supplied by the County of Los Angeles and the various departments thereof. In the event there now exists or there is hereafter adopted a specific contract between the City and the County with respect to specific services, such contract with respect to specific services shall be controlling as to the duties and obligations of the parties anything herein to the contrary notwithstanding, unless such special contract adopts the provisions hereof by reference.
6 of 6
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers.
Executed this _____________day of ________________________2026.
The City of Hawthorne,
By _____________________________
Mayor
ATTEST:
City Clerk THE COUNTY OF LOS ANGELES
By_____________________________ By_____________________________ Chair, Board of Supervisors
ATTEST:
EDWARD YEN
Executive Officer/Clerk
of the Board of Supervisors
By_____________________________
Deputy
APPROVED AS TO FORM:
DAWYN R. HARRISON
County Counsel
By ___________________________
Senior Deputy
AGENDA ITEM NO. 12.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: Public Works
City Manager: Department Head:
SUBJECT:
Final Acceptance of the First Contract Term and award of the Park Maintenance Services Contract extension to Martinez Landscape Co. Inc of Sylmar, CA.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the final acceptance if the first street tree trimming contract term and exercise the option pursuant to section 6.1 of the contract agreement to ratify and authorize the first extension from December 2025 through December 2026, the second contract extension from December 2026 to December 2027, and the third extension from December 2027 through December 2028, with a 4% CPI Increase to Martinez Landscape Co. of Sylmar, CA.
DISCUSSION:
In March 2022, the City Councilapproved athree-year contractagreement between the City of Hawthorne and Martinez Landscape, Inc with 3 annualcontract extension options for park maintenance services.The work includes refurbishingand supplyingtoilets, urinals, sinks,and removingand replacingrestroom tile floors, refurbishingand supplying drinkingfountains, repaintingand repairing picnic tables, benches,and trash cans, refurnishing play areas includingsand replacement, removingand replacing walkways, refurbishing baseball fields, basketballcourts,and exercise equipment,and trimmingand plantingtrees. Also included for City Facilities is repairing picnic tables, benches, trashcans,and refurbishingthe wading pools.
Lastly, incorporated in the scope of work are emergency work crews and a 24/7 Emergency Response Hotline.The City negotiated a 4% increase to pace increasinglabor, fuel,and materialcosts.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
This contractcontributes to economic development in the City of Hawthorne by investingin the upkeep and modernization of parks and public facilities, which makes the city more attractive to residents, visitors,and potential investors. Wellmaintained parks and restrooms supportcommunity events, youth sports,and everyday use activities that increase foot traffic nearby local businesses.
FISCAL IMPACT:
None. Funds for this project in the estimated amount of $373,976 are available in the adopted Fiscal Year 2025-26 budget and will be paid for with approved and allocated Measure A funds, Development Impact Fees, and general fund.
NOTICING PROCEDURE:
72 hours posted notice pursuant to Ralph M. Brown Act.
ATTACHMENTS
Updated Fees
MARTINEZ LANDSCAPE CO., INC
12357 SAN FERNANDO RD | SYLMAR, CA 91342 | PH: (818) 364-9188 | FAX: (818) 364-9958 City Of Hawthorne
Park Maintenance Services Project #22-01-Updated Price Sheet with 4% CPI Increase Effective Date
Item
# Description (Park Area) Unit Original Price 4% CPI Price 1 Eucalyptus park EA $ 1,500.00 $ 1,560.00
2 Holly Glen Park EA $ 1,000.00 $ 1,040.00
3 Holly Park EA $ 6,000.00 $ 6,240.00
4 Memorial Park EA $ 3,200.00 $ 3,328.00
5 Jim Thrope Park EA $ 4,000.00 $ 4,160.00
6 Ramona Park EA $ 1,000.00 $ 1,040.00
7 Bicentennial Park EA $ 1,000.00 $ 1,040.00
8 Zela Davis Park EA $ 1,500.00 $ 1,560.00
9 Glasow Park EA $ 2,000.00 $ 2,080.00
10 118th Street and Doty ( pocket Park) EA $ 300.00 $ 312.00 11 K-9 Park EA $ 500.00 $ 520.00
12 Betty Ainsworth Sports Center EA $ 1,000.00 $ 1,040.00 13 Community Gardens EA $ 10.00 $ 10.40
14 City Hall EA $ 1,000.00 $ 1,040.00
15 Municipal Pool EA $ 1,000.00 $ 1,040.00
16 Beach Boys Monument EA $ 100.00 $ 104.00
Parking and Hardscape areas, Basketball
and Tennis Courts, Trash Enclosure,
Snack Stand & Restroom Facilities)
17 Steam Clean/Pressure Wash
Hardscape Areas
(sidewalks, patios) LF $ 0.50 $ 0.52
18 Steam Clean/Pressure Wash
Litter/Trash Receptacles EA $ 10.00 $ 10.40
19 Steam Clean/Pressure Wash Picnic
Tables EA $ 25.00 $ 26.00
20 Steam Clean/Pressure Wash Benches EA $ 15.00 $ 15.60 21 Furnish and install 36” Box TreeStandard Trunk EA $ 475.00 $ 494.00 MARTINEZ LANDSCAPE CO., INC
12357 SAN FERNANDO RD | SYLMAR, CA 91342 | PH: (818) 364-9188 | FAX: (818) 364-9958 22 Furnish and install 24” Box-Tree
Standard Trunk EA $ 235.00 $ 244.40
(Maintain Landscape Areas)
23 115th Street *Grevillea Ave. to Hawthorne
Blvd. EA $ 400.00 $ 416.00
24 Intersection of Rosecrans Avenue and
Aviation Blvd N/E, S/W, and S/E corners EA $ 800.00 $ 832.00 25 Rosecrans Avenue from Hindry Ave. to
Aviation Blvd landscape on the northside,
(behind the returning wall and private
property. (± 5 Feet)) EA $ 1,200.00 $ 1,248.00
26 Eucalyptus Avenue (Parking area adjacent
to Public Works Yard) EA $ 400.00 $ 416.00
27 Park Yard (4623 Michu Lane) EA $ 400.00 $ 416.00
28 Public Works Yard (12501 Truro Avenue) EA $ 800.00 $ 832.00 29 116th Street *Gale Avenue to Eucalyptus
Avenue EA $ 200.00 $ 208.00
24/7 emergency tree service for storm and
non-storm events and tree material
removal $ -
30 3 person crew plus equipment HR $ 470.00 $ 488.80
31 6 person crew plus equipment HR $ 644.00 $ 669.76
32 9 person and more plus equipment HR $ 818.00 $ 850.72 33 Emergency On-call Responder (Per
worker, per hour) HR $ 150.00 $ 156.00
AGENDA ITEM NO. 13.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: Public Works
City Manager: Department Head:
SUBJECT:
Progress Payment #6 in the amount of $1,393,758.04 due to Martinez Landscape Co., Inc of Sylmar, CA for the City of Hawthorne New City Yard (Project #24-02).
RECOMMENDED MOTION:
Staff recommends that the City Council approve this Progress Payment #6 to Martinez Landscape Co.
Inc of Sylmar, CA.
DISCUSSION:
The work for the project includes adequate parking spaces for large and regular vehicles, a two-story building, a fuel-pumping station for gas and diesel vehicles, an above-ground propane tank, a mechanic station, wash down bays, hazardous material storage, welding area, general storage, employee restroom, and storage space for large city vehicles. Vehicle parking spaces will have a photovoltaic canopy above, as well as on all building rooftops. The two-story administration building will contain ground level storage, a public-facing entrance/vestibule, elevator, office, restrooms, and elevator equipment room. The second story will include City offices, training rooms, conference rooms, mail intake and sorting, and staff restrooms. The roof of the administration building will also hold a new radio tower and drone pad. Additionally, new sidewalks will be installed that are ADA compliant, along with driveways that provide entrance and exit to the facility. This project also consists of multiple trades, from low voltage electrical work to fueling station design & construction. This requires the awarding contractor to have multiple subcontractors for various works which include, but not limited to: low-voltage electrical work for the communication/security system, elevator construction and installation, mechanical lifts and pressure systems, fueling station design and installation, hazardous material storage construction, fire suppression system, standard plumbing, mechanical and electrical systems, ADA sidewalk construction, landscaping, etc. Any and all other additional, reduced or removed work will be made through negotiated change orders after the projects contract has been awarded in accordance with the bid documents.
The scope of work completed to date is as follows: the CMU perimeter wall erected, Building B2 exterior walls erected, and roof beams welded along with load-supporting vertical metal columns. Building B2 metal roof deck is welded on and inspected, building A1 interior steel beams/grade beams are installed and interior CMU walls are being formed, and building A2 column pads have been trenched, rebar placed and concrete poured to support the steel beams. A1 steel beams have been welded and inspected. Building A1 steel columns' foundation has been poured. Final concrete columns for the light & medium duty bays are being formed and poured this month. The fueling station's underground tanks are installed and the above-ground canopy and concrete pad are being worked on this month.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
This project is a result of the City working closely with funding and regulatory agencies to support and improve our infrastructure.
FISCAL IMPACT:
None. Funds for this progress payment in the amount of $1,393,758.04 will be funded through the issuance of 2024 Lease Revenue Bonds (the "2024 Bonds"), Equipment Funds, Sewer Funds, Proposition A & C, and allocated funds from the 2024-2025 budget.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act
ATTACHMENTS
PP#6 Proj. #24-02
ITEM CONTRACT
QUANTITY UNIT UNIT
PRICE CONTRACT AMOUNT QTY OR % PREVIOUS QTY OR % THIS ESTIMATE AMOUNT THIS
ESTIMATE
TOTAL QTY OR %
TO DATE
TOTAL AMOUNT TO
DATE
A LS 1 $ 13,770,087.00 $ 13,770,087.00 59% 11% $ 1,467,113.72 69% $ 9,536,239.24 1 LS 1 $ 901,050.30 $ 901,050.30 0% 0% $ - 0% $ -
$ 14,671,137.30
TOTAL: $ 1,467,113.72 $ 9,536,239.24
LESS RETENTION: $ 73,355.69 $ 476,811.96
LESS PREVIOUSLY PAID: $ - $ 7,665,669.24
TOTAL AMOUNT DUE: $ 1,393,758.04 $ 1,393,758.04
$ 1,000,000.00
$ 393,758.04
ACCOUNT NUMBER:
600-3103-000-0-0-47304
German Franco
German Franco
Project Engineer
600-3103-000-0-0-47404
Honorable Mayor and City Council 27-January-2026
City of Hawthorne Council Date
Hawthorne, CA 90250
RE: PROGRESS PAYMENT NO.6 FOR CITY OF HAWTHORNE NEW CITY YARD PROJECT #24-02 The following is a detailed breakdown of Progress Payment No.6 due to Martinez Landscape Co., Inc Sylmar, CA for work done on the subject through January 2025.
DESCRIPTION
Building B2 structural walls erected, shop drawings
reviewed and approved, trenching for underground
utilities (electrical/plumbing). Building A2 footing
excavated, compacted, rebar placed, concrete poured.
Underground electrical conduit and plumbing lines
excavated and placed/being placed. Building A1
leveling and compaction completed, to commence
trenching for underground utilitie. Purchase of
material and equipment include but not limited to
electrical conduits, wiring, plumbing pipes, rebar,
concrete, sand, steel, electrical box, receptacles,
switches, etc.
Change Order #1: Redesign of the North metal roofed
parking structure at the request of the City for the
New City Yard Project. Work to be done includes the
design & build of a solar panel shaded structure in the North portion of the New City Yard Project,
including all needed materials/equipment/installation.
TOTAL CONTRACT AMOUNT
TOTAL AMOUNT DUE THIS 6TH PROGRESS PAYMENT:
TO: PROJECT NAME: APPLICATION NO: 6
PROJECT ADDRESS: APPLICATION DATE: 14-Jan-25
FROM: PROJECT NO: PERIOD TO: 20-Jan-25
CONTRACT START DATE: 0-Jan-00
CONTRACT NUMBER: 24-02
VENDOR ID NO: 0
CONTRACTOR'S APPLICATION FOR PAYMENT
1. ORIGINAL CONTRACT AMOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2. Net Change by Change Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3. CONTRACT AMOUNT TO DATE (Line 1 + Line 2) . . . . . . . . . . . . . . . . . . . $
4. TOTAL COMPLETED & STORED TO DATE . . . . . . . . . . . . . . . . . . . . $ (Column G on Continuation Sheet)
5. RETAINAGE:
a._5_% of Completed Work (Line 4)
TOTAL RETAINAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Contractor:
6. TOTAL EARNED LESS RETAINAGE . . . . . . . . . . . . . . . . . . . . . . . . . $ (Line 4 less Line 5 Total)
7. LESS PREVIOUS CERTIFICATES FOR PAYMENT . . . . . . . . . . . . . . . $ (Line 6 from prior Application for Payment)
8. CURRENT PAYMENT DUE (Line 6 less Line 7) . . . . . . . . . . . . . . . . . . . . . $
9. BALANCE TO FINISH, INCLUDING RETAINAGE (Line 3 less Line 6) . . . . $ Owner Use Only:
10. TOTAL WITHHOLDS (from Owner Assessment Summary ): . . . . . $
11. TOTAL RELEASES (from Owner Assessment Summary ): . . . . . . $
12. ADJUSTED PAYMENT AMOUNT: . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Owner's Authorized Representative (Signature) (Date)
1,393,758.04
1,393,758.04 (Contractor's Signature) (Date)
5,611,710.02
7,665,669.24 (Name and title)
$ 476,811.96
476,811.96 Martinez Landscape Co., Inc
9,059,427.28 (Please print name of company)
13,770,087.00
901,050.30
14,671,137.30
9,536,239.25
(Contractor) 0
12357 San Fernando Rd. Sylmar, CA 91342
(Remittance Address)
City Of Hawthorne New City Yard
12613 Doty Ave. Hawthorne, CA 90250
Martinez Landscape Co., Inc #24-02
Under penalty of perjury under the Laws of California, I certify that all items, units, quantities and prices for work shown on this payment request are correct; that all Work has been performed and materials supplied in full accordance with the terms and conditions of the construction contract on this project; that all of the information set forth herein or attached hereto is a true and correct statement of the Contract Amount and the Contract Time up to and including the last day of the period covered by this invoice, and that no part of the “Current Payment Due” has been received.
CERTIFICATION
REVIEWED AND APPROVED AS PER TERMS OF CONTRACT
MARTINEZ LANDSCAPE CO., INC
12357 SAN FERNANDO RD | SYLMAR, CA 91342
PH: (818) 364-9188 | FAX: (818) 364-9958
APPLICATION FOR PAYMENT
01/14/2025
AGENDA ITEM NO. 14.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
City Manager: Department Head:
SUBJECT:
Amendment of Measure A Memorandum
RECOMMENDED MOTION:
Approve the Memorandum of Understanding (MOU) between the City of Hawthorne and the South Bay Cities Council of Governments (SBCCOG) regarding the use of Los Angeles County Measure A funds for homelessness-related services; authorize the Mayor to execute the MOU; and authorize the City Manager or designee to execute future amendments, exhibits, or administrative modifications to the MOU, subject to non-substantive changes and funding availability.
DISCUSSION:
Approval of this amendment ensures that the MOU accurately reflects current Measure A funding levels while allowing the City to continue providing homelessness-related services within the revised budget.
Program scopes, reporting requirements, and performance metrics will remain consistent with SBCCOG and County requirements, subject to the adjusted funding levels.ince execution of the original MOU, updated funding projections and program needs have resulted in a revised allocation amount for the City of Hawthorne. SBCCOG has adjusted the Measure A distribution to reflect updated regional funding assumptions and program participation levels. As a result, an amendment to the MOU is required to formally reduce the City's allocation and align the agreement with the revised funding amount.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
N/A
FISCAL IMPACT:
This Amendment reduces the city's Measure A allocation from $258,000 to $246,000 NOTICING PROCEDURE:
72 hours' notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
SBCOOG Agreement
MEMORANDUM OF UNDERSTANDING
BETWEEN THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS AND THE CITY OF HAWTHORNE REGARDING USE OF SBCCOG’S ALLOCATED COUNTY OF LOS ANGELES MEASURE A FUNDS.
This Memorandum of Understanding (“MOU”) created in 2025, is between the South Bay Cities Council of Governments (“SBCCOG”), a joint powers authority, and the City of Hawthorne, a chartered municipal corporation, (collectively, the “Parties”).
RECITALS
A. As a regional administrator, the SBCCOG receives homelessness funding, including the November 5, 2024, Los Angeles County voters approved Measure A half-cent sales tax which repealed and replaced Measure H. Measure A provides continuous funding to address homelessness with housing and services.
B. On March 25, 2025, the Board of Supervisors adopted the Local Solutions Fund (LSF) funding formula as part of the Measure A requirements, which is based 90% on a region’s Point-in-Time Homeless Count (2-year average) and 10% on a region’s low-income population percentage. Based on this formula, the SBCCOG is projected to receive $3,048,204 in the first year (FY25/26). Because the SBCCOG has outperformed most other regions in Los Angeles County in resolving instances of homelessness, the SBCCOG anticipates our region’s LSF funding will decrease over time due to the homeless count component of the funding formula.
C. In addition, to LSF programming, the SBCCOG will receive funding from the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) as an eligible jurisdiction per SB 679. The SBCCOG anticipates roughly $11 million annually in funding for (1) housing production, preservation, and ownership; (2) renter protection and homeless prevention; (3) technical assistance. With this programming, the SBCCOG expects to reduce the inflow of households into homelessness and make housing more affordable for vulnerable households.
D. Due to the modest amount of homeless services funding it receives, the SBCCOG has budgeted the majority of its funds into programs that all of our cities can participate in, including but not limited to:
a. Financial and Rental Assistance (application fees, security deposits, time limited subsidies, and other just-in-time funding)
b. SHARE! Housing to Employment (group homes)
c. Motel and SRO Bed Leasing
d. Housing Specialist (landlord engagement)
E. In addition to these shared services, the SBCCOG Board of Directors will also approve City-specific program allocations using LSF, LACAHSA, and other funding sources (“Funders”)
F. The Parties desire to enter this MOU to set forth and memorialize the obligations of the Parties with respect to program funding allocated solely to the City of Hawthorne.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants and promises herein contained, the SBCCOG and the City hereto agree as follows:
I. TERM:
This MOU shall be effective as of August 13, 2025, and shall remain in full force and effect until June 30, 2031 (“Term”), unless sooner terminated or extended, in whole or in part, as provided in the Los Angeles County Contract Number HI-25-018 (Exhibit 1 County Contract) and the LACAHSA/SBCCOG Contract (Exhibit 2 LACAHSA Contract). This MOU is contingent upon SBCCOG receiving funding from its Funders, and is subject to review during each funding year of the term. In the event that funding from the Funders is terminated, the termination of this Agreement shall be effective upon notice from SBCCOG.
Note, different Scope of Works (“SOW”) in the Exhibits may have different SOW Start Dates.
The SOW’s Start Date will govern the commencement of that SOW’s activity and billing. No activity shall be billed prior to the Start Date.
II. CITY RESPONSIBILITIES:
A. The City shall use the allocated funding in adherence with the Scope of Work in Exhibit 3, 4, and any subsequent added or amended Scope of Work.
B. The City shall adhere to the budget specified in Exhibit 3 and 4.
C. The City shall fulfill performance and reporting requirements to SBCCOG in accordance with Exhibit 3 and 4. Failure to comply with any invoicing and reporting requirements and deadlines may result in forfeiture of reimbursement claims.
D. The City hereby warrants, represents, and covenants that it will comply with all applicable local, state, or federal guidelines, regulations, requirements, and statutes and/or as required under the laws or regulations relating to the source of the Measure A Funds to be transferred by the County/LACAHSA to the SBCCOG to the City pursuant to this MOU, and will not use the Grant Funds for costs associated with activities in violation of any law or for any activity inconsistent with the requirements and purposes set forth in this MOU. Please see Exhibit 1 and 2 for County/LACAHSA Measure A requirements.
E. The City shall maintain records related to the program operation and use of Grant Funds for five (5) years following the expiration of this MOU. SBCCOG shall have access to the records upon request.
III. SBCCOG RESPONSIBILITIES:
A. The SBCCOG will make available to the City the budget amount specified in Exhibits 3 and
4. B. The SBCCOG shall monitor the City’s Programs for adherence to Exhibits 3 and 4.
C. The SBCCOG shall provide the City with a reporting template format for the submission of monthly reports in accordance with Exhibits 3 and 4.
D. The SBCCOG shall maintain records related to the program operation and use of Grant Funds for five (5) years following the expiration of this MOU.
IV. FUTURE PROGRAMS:
A. The Parties may attach Amendments to this MOU to modify, subtract or add programs, subject to the Parties approval.
V. THIRD PARTY LIABILITY AND INDEMNIFICATION:
A. The Parties agree to indemnify, defend, and hold harmless each other, including its elected and appointed officers, employees, agents, attorneys, and designated volunteers from and against any and all liability, including, but not limited to demands, claims, actions, fees, costs, and expenses (including reasonable attorney’s and expert witness fees), arising from or connected with the respective acts of each entity arising from or related to this MOU. Neither entity shall indemnify the other entity for that other entity’s own negligence or willful misconduct.
B. In light of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement (as defined in Government Code Section 895), each of the entities parties hereto, pursuant to the authorization contained in Government Code Sections 895.4 and 895.6, shall assume the full liability imposed upon it or any of its officers, agents, or employees, by law for injury caused by any act or omission occurring in the performance of this MOU to the same extent such liability would be imposed in the absence of Section 895.2.
To achieve the above stated purpose, each entity indemnifies, defends, and holds harmless each entity for any liability, cost, or expense that may be imposed upon such other entity solely by virtue of Section 895.2. The provision of Section 2778 of the California Civil Code is made a part hereof as if incorporated herein.
VI. MISCELLANEOUS:
A. This MOU shall be binding upon, and shall be to the benefit of the respective successors, heirs, and assigns of each entity; provided, however, neither entity may assign its respective rights or obligations under this MOU without prior written consent of the other entity.
B. This MOU (including for the purpose of clarity, the recitals, to this MOU), contains the entire agreement between the SBCCOG and the City with respect to the matters herein, and there are no restrictions, promises, warranties, or undertakings other than those set forth herein and referred to herein.
C. No alteration or variation of the terms of this MOU shall be valid unless made in writing and signed by the authorized representative from each entity; no oral understanding or agreement not incorporated herein shall be binding on either of the entities.
D. This MOU is not intended to be a third-party beneficiary contract and confers no rights on anyone other than the parties hereto.
E. Notices or other communications, which may be required or provided under the terms of this MOU, shall be given to the individuals identified for each entity. Any notices required to be given under this Agreement by either party to the other may be affected by any of the following means: by electronic correspondence (email), by personal delivery in writing by mail, registered or certified, postage prepaid with return receipt requested. Notices delivered personally will be deemed communicated as of actual receipt; mailed notices will be deemed communicated as of the day of receipt or the fifth day after mailing, whichever occurs first.
Electronic notices are deemed communicated as of actual time and date of receipt. Any electronic notices must specify an automated reply function that the email was received.
South Bay Cities Council of Governments:
South Bay Cities Council of Governments
357 Van Ness Way, Suite 110
Torrance, CA 90501
Attn: Jacki Bacharach
[email protected]
City of Hawthorne:
City of Hawthorne
4455 W 126th St, Hawthorne, CA 90250
Hawthorne, CA 90250
Attn: Dulce Medina
[email protected]
F. If a dispute arises under this Agreement, prior to instituting litigation the parties agree to first try to resolve the dispute with the help of a mutually agreed-upon mediator in California. Any costs and fees other than attorney fees associated with the mediation shall be shared equally by the parties.
G. The laws of the State of California and applicable local and federal laws, regulations, and guidelines shall govern this MOU. In the event of any legal action to enforce or interpret this MOU, the laws of the State of California shall apply and the Venue shall be Los Angeles County.
H. Either entity shall be excused from performing its obligations under this MOU during the time and to the extent that it is prevented from performing by an unforeseeable cause beyond its control, including but not limited to any incidence of fire or flood; acts of God; commandeering of material, products, plants, or facilities by the federal, state, or local government; national fuel shortage; or a material wrongful act or omission by the other Party; when satisfactory evidence of such cause is presented to the other entity, and provided further that such nonperformance is unforeseeable, beyond the control and is not due to the fault or negligence of the entity not performing.
I. The City shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company admitted to do business in California and approved by the SBCCOG (1) a policy or policies of broad-form comprehensive general liability insurance with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by City, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $1,000,000.00; (3) automotive liability insurance, with minimum combined single limits coverage of $1,000,000.00; (4) worker's compensation insurance with a minimum limit of $1,000,000.00 or the amount required by law, whichever is greater; and (5) comprehensive crime insurance with a minimum limit of $1,000,000.00. SBCCOG and participating public agencies, their respective officers, employees, attorneys, staff consultants, and volunteers shall be named as additional insureds on the policy (ies) as to comprehensive general liability, property damage, and automotive liability. The policy (ies) as to comprehensive general liability, property damage, and automobile liability shall provide that they are primary, and that any insurance maintained by the SBCCOG shall be excess insurance only.
J. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving SBCCOG thirty (30) day's prior written notice thereof. The City agrees that it will not cancel, reduce or otherwise modify the insurance coverage.
K. All policies of insurance shall cover the obligations of the City pursuant to the terms of this Agreement; shall be issued by an insurance company which is admitted to do business in the State of California or which is approved in writing by the SBCCOG; and shall be placed with a current A.M. Best's rating of no less that A VII.
L. The City shall submit to SBCCOG (1) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (2) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one (1) day prior to beginning of performance under this Agreement.
Endorsements shall be executed on SBCCOG's appropriate standard forms entitled "Additional Insured Endorsement", or a substantially similar form which the SBCCOG has agreed in writing to accept.
M. Authority and Signatures: The individuals signing this MOU, and its exhibits, which are incorporated herein by reference, have the authority to commit the entity they represent to the terms of this MOU, and do so commit by signing.
(Signatures on Following Page)
SOUTH BAY CITIES COUNCIL OF GOVERNMENTS
By:_____________________________________ Date:_________________ Bernadette Suarez, SBCCOG Chair
ATTEST:
By:_____________________________________
Jacki Bacharach, Executive Director/Board Secretary
APPROVED AS TO FORM:
By:_____________________________________
Michael Jenkins, Legal Counsel
CITY OF HAWTHORNE
By:_____________________________________ Date:_________________ Alex Vargas, Mayor
ATTEST:
By:_____________________________________
Dayna Williams-Hunter, City Clerk
EXHIBIT 1: COUNTY CONTRACT
See attached.
EXHIBIT 2: LACAHSA CONTRACT
See attached.
EXHIBIT 3: HAWTHORNE CASE MANAGEMENT AND OUTREACH SERVICES
SCOPE OF WORK
I. BUDGET AND START DATE
The total annual program budget is $160,000; of which $18,400 will go towards administrative costs defined as costs necessary to support the City’s case management and outreach program implementation, including meeting supplies, cellphone and internet/communication services, mileage reimbursement, office supplies, furniture, equipment, and office space rent. The Start Date begins August 13, 2025.
Based on current workforce standards, the accepted minimum pay scale for Case Managers under this program is $55,000 to $78,000. The SBCCOG is recommending for all its contracts, the following minimum benchmark on pay for these positions:
Peer support specialist: $45,000 - $55,000
Case manager: $55,000 - $72,000
Intensive case manager (ICMS): $55,000 - $78,000
Program supervisors: $65,000 - $80,000
Program manager: $75,000 - $87,000
Un-Licensed Clinical Social Worker: $72,000 - $92,000 Licensed Clinical Social Worker: $105,000 - $150,000
II. SCOPE OF WORK
Program Description: The Hawthorne Case Management and Outreach Services program will hire/contract 2 case managers, who will provide a holistic, client-centered approach as they conduct outreach and assist engaged clients with their health, mental health, and housing stability.
Included below is the expected Scope of Work (SOW) for the City as required by this MOU and the County Contract.
Table 1. Detailed Scope of Work
Scope of Work Expected Tasks
Hawthorne Case
Management and
Outreach Services
- Outreach people experience homelessness (PEH) in Hawthorne and conduct regular check-ins with clients to monitor progress, address challenges, and help reassess goals and next steps - Identify client needs related to substance use, mental health, and housing
- Enroll clients, as needed in supportive services, such as substance use treatment, mental health services from LA County Department of Mental Health and the Hawthorne Access Center, and social services like General Relief
- Identify and place PEH in interim housing
- Support housing-ready clients to complete applications, as applicable, to place them in permanent supportive housing or other permanent housing situations
- Maintain records of all services provided to PEH
- Collect, manage, and submit monthly data reports and comply with deadlines specified by the SBCCOG for time-specified submittal and delivery of information
- Attend regular meetings with the SBCCOG to case conference, problem solve, and identify housing options for clients on caseload
The Provider will ensure that the following staff requirements for Housing Focused Case Managers are met:
1. Criminal Clearances and Background Investigations: Contractor shall ensure that criminal clearances and background investigations have been conducted for all staff working on this contract.
2. Language Ability: Contractor shall ensure that all staff can read, write, speak and understand English in order to conduct business within SPA 8.
3. Service Delivery: Contractor shall ensure that all direct service staff providing supportive services in a manner that effectively responds to differences in cultural beliefs, behaviors, learning, and communication styles within the community where Contractor proposes to provide services.
4. Driver’s License and Automobile Insurance: Contractor shall maintain current copies of driver’s licenses, including current copies of proof of auto insurance that meets the minimal automobile liability prescribed by law for any and all staff providing transportation to residents.
5. Driving Record: Contractor shall ensure any staff that provides transportation to residents has a safe driving record. They will maintain copies of drivers’ Department of Motor Vehicles (DMV) printouts for any and all staff providing transportation to residents.
Reports will be available to the SBCCOG upon request.
6. Experience: Contractor shall be responsible for securing and maintaining staff who possess sufficient experience and expertise necessary to provide the services required in this SOW.
III. INVOICES AND REPORTING
The City shall submit monthly invoices and reports by the 10th of the month immediately following the month performed in accordance with this Exhibit as follows for each fiscal year this MOU is active.
If the 10th falls on a weekend, the City shall submit the invoice and monthly report on the Friday before.
Monthly reports will include metrics that are outlined in Sections (A) Key Performance Indicators and (B) Supplemental Monthly Reporting Metrics.
Reports and invoices from the City to the SBCCOG must contain the information set forth in this MOU and applicable portions of the County Scope of Work, project description, and budget.
Reports and invoices must describe tasks, deliverables, goods, services, work hours, indirect costs, and/or other work for which payment is claimed.
A. Key Performance Indicators (KPIs)
The program will be evaluated on the KPIs as outlined in the County Contract and in Table 2 below. The City will report these metrics monthly for each fiscal year this MOU is active.
Table 2. Key Performance Indicators
Key Performance Indicators Target Outcome Timeline
Number of PEH placed in IH 24 Annually
Number of PEH placed PH (including reunification) 24 Annually Number of PEH linked to behavioral health services 24 Annually
Each case manager will have 36 unduplicated cases a year.
B. Supplemental Monthly Reporting Metrics
In addition, City’s Monthly Report will include additional metrics and outcomes (Table 3), including progress on behavioral health plans, participants’ housing timeline, including any anticipated housing dates. The report shall include other data including demographic data and service linkages that can be queried in HMIS. This reporting will help the COG monitor the program’s progress and aid the operations where needed to ensure that metrics are met.
Table 3. Supplemental Monthly Reporting Metrics
Additional Monthly Reporting Data Details
Number of PEH on caseload Unduplicated clients currently on case managers’ active caseload
Year to Date (YTD) number of PEH
placed in IH
Cumulative number of individuals placed in available shelter, safe parking, motel and other IH to date (as of reporting) Year to Date (YTD) number of PEH
placed in PH
Cumulative number of individuals placed in a permanent
housing situation, including reunification
Number of clients experiencing
behavioral health challenges
Unduplicated clients with behavioral health services challenges per month. This includes substance use disorders/mental illness Number of clients actively receiving
behavioral health services
Unduplicated clients with behavioral health services per month.
This includes services from DMH, the Hawthorne Access
Center, or other services/treatment.
Notes and success stories What action steps have you taken to ensure the program’s KPIs are achieved? What is working? What are 3 challenges?
C. Additional Data Needs
As part of SBCCOG’s program, the SBCCOG may request additional data points to create reports to advocate for housing, income and shelter resources to our cities. Data points will include, but are not limited to:
How long the client has been in their city
Inflow/Outflow of street homeless individuals and families in the service areas Demographic characteristics such as:
o Race/Ethnicity
o Income Levels
o Veteran Status
o Age
Point of Contact
Off-Street Housing Attainment
o Shelters
o Hotels/Motels
o Transitional Housing
o Shared or Bridge Housing
o Skilled Nursing Homes
o Problem Solving
Detox/Substance Use Treatment/Rehabilitation
Mental Health Service Referrals
Other additional information that can provide actionable data outcomes The SBCCOG will work with the City to gather this information in a flexible and not burdensome manner.
EXHIBIT 4: HAWTHORNE HOUSING NAVIGATION SCOPE OF WORK
I. BUDGET
The total annual program budget is $80,000; of which $9,200 will go towards administrative costs defined as costs necessary to support the City’s case management and outreach program implementation, including meeting supplies, cellphone and internet/communication services, mileage reimbursement, office supplies, furniture, equipment, and office space rent. The Start Date begins August 13, 2025.
Based on current workforce standards, the accepted minimum pay scale for Case Managers under this program is $55,000 to $78,000. The SBCCOG is recommending for all its contracts, the following benchmark on pay for these positions:
Peer support specialist: $45,000 - $55,000
Case manager: $55,000 - $72,000
Intensive case manager (ICMS): $55,000 - $78,000
Program supervisors: $65,000 - $80,000
Program manager: $75,000 - $87,000
Un-Licensed Clinical Social Worker: $72,000 - $92,000 Licensed Clinical Social Worker: $105,000 - $150,000
II. SCOPE OF WORK
Program Description: The Hawthorne Housing Navigation program will hire 1 Housing Navigator at the Hawthorne Access Center to provide a holistic, client-centered approach as they complete case management for PEH and individuals or households at risk of homelessness. They will assist with placing people in interim and/or permanent supportive housing. In addition, they will perform other coordination and case management services. Included below in Table 1 is the expected Scope of Work (SOW) for the City as required by this MOU and the County Contract.
Table 1. Detailed Scope of Work
Scope of Work Expected Tasks
Hawthorne
Housing
Navigation
- Outreach people experience homelessness (PEH) in Hawthorne and provide services at the Hawthorne Access Center
- Complete housing and services plans with PEH clients
- Conduct regular check-ins with clients to monitor progress, address challenges, and help reassess goals and next steps - Enroll clients in supportive services, such as General Relief (GR) and Supplemental Security Income (SSI)
- Identify PEH and households at risk of homelessness to complete applications, as applicable, to place them in permanent supportive housing or other permanent housing situations - Connect PEH with interim or permanent housing option that best fits their current needs
- Support PEH to complete applications, as applicable, to place them in permanent housing situations
- Maintain records of all services provided to PEH
- Collect, manage, and submit monthly data reports and comply with deadlines specified by the SBCCOG for time-specified submittal and delivery of information
- Attend regular meetings with the SBCCOG to case conference, problem solve, and identify housing options for clients The Provider will ensure that the following staff requirements for Housing Focused Case Managers are met:
1. Criminal Clearances and Background Investigations: Contractor shall ensure that criminal clearances and background investigations have been conducted for all staff working on this contract.
2. Language Ability: Contractor shall ensure that all staff can read, write, speak and understand English in order to conduct business within SPA 8.
3. Service Delivery: Contractor shall ensure that all direct service staff providing supportive services in a manner that effectively responds to differences in cultural beliefs, behaviors, learning, and communication styles within the community where Contractor proposes to provide services.
4. Driver’s License and Automobile Insurance: Contractor shall maintain current copies of driver’s licenses, including current copies of proof of auto insurance that meets the minimal automobile liability prescribed by law for any and all staff providing transportation to residents.
5. Driving Record: Contractor shall ensure any staff that provides transportation to residents has a safe driving record. They will maintain copies of drivers’ Department of Motor Vehicles (DMV) printouts for any and all staff providing transportation to residents.
Reports will be available to the SBCCOG upon request.
6. Experience: Contractor shall be responsible for securing and maintaining staff who possess sufficient experience and expertise necessary to provide the services required in this SOW.
III. INVOICES AND REPORTING
The City shall submit monthly invoices and reports by the 10th of the month immediately following the month performed in accordance with this Exhibit as follows for each fiscal year this MOU is active.
If the 10th falls on a weekend, the City shall submit the invoice and monthly report on the Friday before.
Monthly reports will include metrics that are outlined in Sections (A) Key Performance Indicators and (B) Supplemental Monthly Reporting Metrics.
Reports and invoices from the City to the SBCCOG must contain the information set forth in this MOU and applicable portions of the County Scope of Work, project description, and budget.
Reports and invoices must describe tasks, deliverables, goods, services, work hours, and facility and/or other work for which payment is claimed.
A. Key Performance Indicators (KPIs)
The program will be evaluated on the KPIs in Table 2, as outlined in the County Contract. The City will report these metrics monthly for each fiscal year this MOU is active.
Table 2. Key Performance Indicators
Key Performance Indicators Target Outcome Timeline
Number of PEH placed in PH 16 Annually
Number of individuals served that retain housing or
transition directly into other PH 12 Annually
Minimum annual case load for this position will be 80 cases.
B. Supplemental Monthly Reporting Metrics
In addition, City’s Monthly Report will include additional metrics and outcomes (Table 3), including progress on enrollment in supportive services, participants’ housing timeline, including any anticipated housing dates. The report shall also include other data including demographic data and service linkages that can be queried in HMIS. This reporting will help the COG monitor the program’s progress and aid the operations where needed to ensure that metrics are met.
Table 3. Supplemental Monthly Reporting Metrics
Additional Monthly Reporting Data Details
Year to Date (YTD) number of PEH
placed in permanent housing
Cumulative number of unique individuals placed in permanent housing situation to date
Year to Date (YTD) number of
Individuals retained housing
Cumulative number of unique individuals retained their
housing situation to date
Number of clients on caseload
Unduplicated clients currently on case managers’ active caseload. Include a breakdown of clients who are currently experiencing homelessness and those who are at risk seeking prevention services per month
Number of clients enrolled in
supportive services
Unduplicated clients enrolled in supportive services by the Housing Navigator, including but not limited to GR, SSI, and mental and behavioral health services
Notes and success stories What action steps have you taken to ensure the program’s KPIs are achieved? What is working? What are 3 challenges?
D. Additional Data Needs
As part of SBCCOG’s program, the SBCCOG may request additional data points to create reports to advocate for housing, income and shelter resources to our cities. Data points will include, but are not limited to:
How long the client has been in their city
Inflow/Outflow of street homeless individuals and families in the service areas Demographic characteristics such as:
o Race/Ethnicity
o Income Levels
o Veteran Status
o Age
Point of Contact
Off-Street Housing Attainment
o Shelters
o Hotels/Motels
o Transitional Housing
o Shared or Bridge Housing
o Skilled Nursing Homes
o Problem Solving
Detox/Substance Use Treatment/Rehabilitation
Mental Health Service Referrals
Other additional information that can provide actionable data outcomes The SBCCOG will work with the City to gather this information in a flexible and not burdensome manner.
AGENDA ITEM NO. 15.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
C Line Extension -Supervisor Holly Mitchel Proposal - A. Monteiro AGENDA ITEM NO. 16.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Hawthorne Municipal Pool - Group Rental Use During Public Recreation Swim - A. Reyes English AGENDA ITEM NO. 17.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Protocols for Requests for Recognitions and Proclamations - K. Manning AGENDA ITEM NO. 18.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Review and Revision of Requirements for City-Sponsored and Council-Hosted Events - K. Manning AGENDA ITEM NO. 19.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Attorney
SUBJECT:
Proposed Leafletting Ordinance - S. Lask
AGENDA ITEM NO. 20.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Request for Study Session - Code of Conduct for Elected Officials - F. Johnson AGENDA ITEM NO. 21.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Black History Month Recognition -- Proclamation(s) for the February 24, 2026, CouncilMeeting-- A. Monteiro AGENDA ITEM NO. 22.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Manager
SUBJECT:
Annual Autism Walk -- April 26, 2026 - A. Monteiro
AGENDA ITEM NO. 23.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 01/27/2026
Originating Department: City Attorney
SUBJECT:
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Pursuant to Gov. Code Section 54956.9(d)(1))
Name of Case: Jesus Ruan v. City of Hawthorne, et al.
LASC Case No. 25TRCV00438