Agenda — Lynwood City Council, July 19, 2022 (part 1 of 2)

This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200.

Procedures for Addressing the Council

IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE

COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO
[email protected]

OR FILL OUT A FORM

PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.

AGENDA
City Council Regular Meeting

TO BE HELD ON

July 19, 2022

COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238
Duly Posted on 7/16/2022 By MQ
6:00 PM

1. CALL TO ORDER

2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK

3. ROLL CALL OF COUNCIL MEMBERS
Jorge Casanova, Mayor
Jose Luis Solache, Mayor Pro Tem
Oscar Flores, Council Member
Marisela Santana, Council Member
Rita Soto, Council Member

4. PLEDGE OF ALLEGIANCE

5. INVOCATION

6. PRESENTATIONS/PROCLAMATIONS
Update on Law Enforcement Issues
City Council Members Reporting on Meetings Attended (Gov. Code Section 53232.3 (D)).

City Video(s)

7. COUNCIL RECESS TO:

Lynwood Successor Agency
City Council Regular Meeting - Page 1 of 664
Lynwood Housing Authority
Lynwood Public Financing Authority

PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)

NON-AGENDA PUBLIC ORAL COMMUNICATIONS

THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE COUNCIL ON ITEMS WITHIN THE JURISDICTION OF THE COUNCIL AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE

AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT COUNCIL MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).)

CONSENT CALENDAR

ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON

THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.

8. APPROVAL OF THE WARRANT REGISTERS
Comments:

City of Lynwood warrant registers dated July 19, 2022 for FY 2021-2022 and FY 2022-2023. (FIN)

Recommendation:

Staff respectfully recommends that the City Council of the City of Lynwood approve the warrant registers dated July 19, 2022 for FY 2021-2022 and FY 2022-2023. (FIN)

9. TREASURER'S MONTHLY INVESTMENT REPORT
Comments:

The purpose of this item is to have the Honorable Mayor and the Lynwood City Council review the Treasurer’s Monthly Investment Report as required by State Statutes. (CT)

Recommendation:

The following is the Investment Report for the month ending June 30, 2022. This report is provided to ensure the City Council is informed of the Department’s investment activities. The report satisfies the recommended reporting requirements of the City of Lynwood, which addresses the City Council’s request for monthly financial information.

It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.

10. APPROVAL

OF PAYMENT FOR SERVICES RENDERED TO OPERATIONAL
TECHNICAL SERVICES, INC. (OTS) WHICH PROVIDE TEMPORARY STAFF

AUGMENTATION FOR THE UTILITY DEPARTMENT FOR A NOT-TO-EXCEED AMOUNT OF $16,875
Comments:

Staff augmentation was needed for the Water Division to keep pace with the work demand.

During FY2022, Operational Technical Services, Inc. (OTS) provided field staffing support. (PW)

Recommendation:

City Council Regular Meeting - Page 2 of 664
Staff recommends that the City Council adopt the following resolution entitled: “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING

PAYMENT FOR SERVICES RENDERED TO OPERATIONAL TECHNICAL
SERVICES, INC. (OTS) FOR PROVIDING TEMPORARY STAFF AUGMENTATION TO WATER DIVISION FOR A NOT-TO-EXCEED AMOUNT OF $16,875 .”

11. CONTINUATION OF AN EMERGENCY ACTION PER PUBLIC CONTRACT CODE SECTION 22050 FOR THE EMERGENCY ACTION AT THE NATATORIUM Comments:

The City Council delegated to the City Manager or his or her designee the authority to order any action specified under California Public Contract Code Section 22050(a)(1) pursuant to Section 22050(b).

On April 5, 2022, the City Council found
that there is a need for emergency action at the
Natatorium.

Public Contract Code Section 22050(c)(2) requires the City Council to review the emergency action at every regularly scheduled Council Meeting to determine by four-fifths vote that there is a need to continue the action. (PW)

Recommendation:

Staff recommends for the City Council to adopt the attached resolution entitled:
“A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD FINDING THAT

THERE IS A NEED TO CONTINUE THE EMERGENCY ACTION, BY WAY OF A FOUR-

FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RESPECT TO THE EMERGENCY RENOVATIONS AND EMERGENCY REPAIRS AT THE NATATORIUM.”

12. CONTINUATION OF AN EMERGENCY ACTION PER PUBLIC CONTRACT CODE SECTION 22050 FOR THE EMERGENCY ACTION AT WELL NO. 19
Comments:

On April 5, 2022, the City Council found
that there is a need for emergency action on
Well No. 19.

Recommendation:

Staff recommends for the City Council to adopt the attached resolution entitled:
“A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD FINDING THAT

THERE IS A NEED TO CONTINUE THE EMERGENCY ACTION, BY WAY OF A FOUR-

FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RESPECT TO THE EMERGENCY REHABILITATION ON WELL NO. 19.”

13. CONSIDERATION OF A RESOULTION PROCLAIMING A LOCAL EMERGENCY,

RATIFYING THE PROCLAMATION OF A STATE OF EMERGENCY BY GOVERNOR

NEWSOM, FINDING THAT THE PROCLAIMED STATE OF EMERGENCY

CONTINUES TO IMPACT THE ABILITY TO MEET SAFELY IN PERSON, AND

DECLARING THAT THE CITY COUNCIL AND CITY COMMISSIONS AND

COMMITTEES WILL COTINUE TO MEET REMOTELY IN ADHERENECE WITH AB 361 IN ORDER TO ENSURE THE HEALTH AND SAFETY OF THE PUBLIC Comments:

Beginning in March 2020, Governor Newsom issued a series of Executive Orders aimed at containing the novel coronavirus (COVID-19). Among these were several Executive Orders N-25- 20, N-29-20, N-35-20 (collectively, the Brown Act Orders) that waived requirements in the Brown Act expressly or impliedly requiring the physical presence of city councilmembers, staff, or the public at local agency meetings.

City Council Regular Meeting - Page 3 of 664

Recommendation:

Staff is recommending that the City Council adopt a City Council Resolution entitled: “A Resolution Proclaiming a Local Emergency, Ratifying the Proclamation of a State of Emergency by Governor Newsom, Finding that the Proclaimed State of Emergency Continues to Impact the Ability to Meet Safely in Person, and Declaring that the City Council and City Commissions and Committees Will Continue to Meet Remotely in Adherence With AB 361 in Order to Ensure the Health and Safety of the Public”

PUBLIC HEARING

14. CONSIDERATION OF ORDINANCE NO. ________ TO APPROVE A DEVELOPMENT

AGREEMENT (DA) BEETWEEN THE CITY OF LYNWOOD AND BULLETIN

DISPLAYS, LLC FOR THE DVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11104-11106 WRIGHT ROAD, LYNWOOD ASSESSOR’S PARCEL NUMBER 6194-029-006
Comments:

The City Council will consider a Development Agreement with Bulletin Displays, LLC for the development of a new, back-to-back digital billboard at 11104-11106 Wright Road, in the City of Lynwood (Assessor's Parcel Number 6194-029-006). (CD)

Recommendation:

1. Conduct a public hearing, receive public testimony, and after discussion, vote upon the matter at hand; and

2. Staff recommends that the City Council introduce for a first reading, ready by title only, waive further reading, the attached Ordinance No. ___ entitled:
“AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LYNWOOD FOR APPROVAL OF THE DEVELOPMENT

AGREEMENT BETWEEN THE CITY OF LYNWOOD AND BULLETIN DISPLAYS, LLC

FOR THE DEVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11104-11106 WRIGHT ROAD, LYNWOOD (ASSESSOR’S PARCEL NUMBER 6194-029- 006)”

15. CONSIDERATION OF ORDINANCE NO._____ TO APPROVE A DEVELOPMENT

AGREEMENT (DA) BETWEEN THE CITY OF LYNWOOD AND BULLETIN

DISPLAYS, LLC FOR THE DEVELOPMENT OF A NEW, BACK-TO-BACKDIGITAL BILLBOARD AT 11350 WRIGHT ROAD, LYNWOOD ASSESSOR’S PARCEL NUMBER 6194-031-007
Comments:

The City Council will consider a Development Agreement with Bulletin Displays, LLC for the development of a new, back-to-back digital billboard at 11350 Wright Road, in the City of Lynwood (Assessor's Parcel Number 6194-031-007). (CD)

Recommendation:

1. Conduct a public hearing, receive public testimony, and after discussion, vote on the matter at hand; and

2. Staff recommends that the City Council introduce for first reading, ready by title only, waive further reading, the attached Ordinance No. ___ entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LYNWOOD FOR APPROVAL OF THE DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF LYNWOOD AND BULLETIN DISPLAYS, LLC FOR THE City Council Regular Meeting - Page 4 of 664
DEVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11350 WRIGHT ROAD, LYNWOOD (ASSESSOR’S PARCEL NUMBER 6194-031-007)”

16. LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT, FY 2022-2023 Comments:

On
June 21, 2022
, the City Council approved the Landscape Maintenance Assessment District Fiscal Year
2022-2023
Engineer’s Report and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. (PW)

Recommendation:

Staff recommends that the City Council hold a public hearing, and after considering all oral statements and all written protests made or filed by any interested person, to close the public hearing and approve the following actions:

1. Set the assessment rate for the Landscape Maintenance Assessment District at the existing
$1.90
per front footage for residential and commercial properties; and

2. Adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL

ASSESSMENTS FOR THE EXISTING LYNWOOD LANDSCAPE MAINTENANCE

ASSESSMENT DISTRICT FOR
FISCAL YEAR 2022-2023
”.

17. LYNWOOD LIGHTING MAINTENANCE ASSESSMENT DISTRICT, FY 2022-2023 Comments:

On
June 21, 2022
, the City Council approved the Lighting Maintenance Assessment District Fiscal Year
2022/2023
Engineer’s Report and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. (PW)

Recommendation:

1. Set the assessment rates for the Lynwood Lighting Assessment District at the existing
$1.62
per front footage for residential properties and at the existing $3.01
per
front footage for commercial properties; and

2. Adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL

ASSESSMENTS FOR THE EXISTING LYNWOOD LIGHTING ASSESSMENT

DISTRICT FOR FISCAL YEAR
2022-2023
”.

18. CONSIDERATION OF AN ORDINANCE AMENDING SECTION 25-2001-1 OF CHAPTER 25 (ZONING) OF THE LYNWOOD MUNICIPAL CODE AND APPENDIX A TO CHAPTER 25 (USES BY ZONING DISTRICT); AND CONSIDERATION OF AN ORDINANCE ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO THE

LICENSING AND REGULATION OF CANNABIS RETAILERS AND ACCOMPANYING AMENDMENTS TO SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS REGULATIONS OF THE LYNWOOD MUNICIPAL CODE; CONSIDERATION OF AN ORDINANCE ADDING SECTION 36 TO CHAPTER 4 OR THE CITY CODE, ESTABLISHING A CANNABIS RETAILER BUSINESS LICENSE TAX; AND

CONSIDERATION OF A RESOLUTION PLACING THE CANNABIS RETAILER City Council Regular Meeting - Page 5 of 664
BUSINESS LICENSE TAX ORDINANCE ON THE NOVEMBER 8, 2022 BALLOT.

Comments:

Consideration of an Ordinance Amending Section 25-2001-1 of Chapter 25 (Zoning) of the Lynwood Municipal Code and Appendix A to Chapter 25 (Uses by Zoning District); and Consideration of an Ordinance Adding Section 35 To Chapter 4 Licensing and Business Regulations of the Lynwood Municipal Code Relating to the Licensing and Regulation of Cannabis Retailers and Accompanying Amendments to Section 34 of Chapter 4 Licensing and Business Regulations of the Lynwood Municipal Code; Consideration of an Ordinance Adding Section 36 to Chapter 4 or the City Code, establishing a cannabis retailer business license tax; and Consideration of a Resolution placing the cannabis retailer business license tax Ordinance on the November 8, 2022 ballot. (CA)

Recommendation:

Staff respectfully recommends:

1.) CONDUCT a public hearing and receive public testimony regarding the Ordinance Amending Section 25-2001-1 of Chapter 25 (Zoning) of the Lynwood Municipal Code and Appendix A to Chapter 25 (Uses by Zoning District); and

2.) INTRODUCE for first reading, read by title only, and waive further reading, the attached Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA AMENDING SECTION 25-200-1 OF CHAPTER 25 (ZONING) OF THE LYNWOOD MUNICIPAL CODE AND APPENDIX A TO CHAPTER 25 (USES BY ZONING DISTICT); and

3.) INTRODUCE for first reading, read by title only, and waive further reading, the attached Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO THE LICENSING

AND REGULATION OF CANNABIS RETAILERS IN THE CITY OF LYNWOOD AND ACCOMPANYING AMENDMENTS TO SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS REGULATIONS OF THE LYNWOOD MUNICIPAL CODE; and

4.) That the Lynwood City Council adopt the attached resolution entitled, “A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, PLACING A BALLOT MEASURE ON THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION FOR THE

SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF LYNWOOD AN ORDINANCE NO. ____ ENACTING A CANNABIS RETAILER BUSINESS LICENSE TAX;

SETTING DEADLINES FOR FILING WRITTEN ARGUMENTS FOR AND AGAINST THE INITIATIVE MEASURE, AND REBUTTALS THEREOF; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND RELATED MATTERS TO SAID
MUNICIPAL ELECTION.

5.) INTRODUCE for first reading, read by title only, and waive further reading, the attached Ordinance entitled “AN ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD

ENACTING A CANNABIS RETAILER BUSINESS LICENSE TAX ON THE RETAIL

BUSINESS OF SELLING CANNABIS PRODUCTS TO PROVIDE CITY GENERAL FUND

SERVICES THAT RESIDENTS NEED AND WANT, INCLUDING BUT NOT LIMITED TO

SENIOR CITIZEN PROGRAMS, CITY BEAUTIFICATION EFFORTS, ENFORCEMENT

OF ILLEGAL CANNABIS OPERATIONS, PUBLIC SAFETY, HOUSING PROGRAMS,

RECREATION SERVICES, INFRASTRUCTURE, HOMELESS REDUCTION AND

OTHER CITY EFFORTS

6.) That the Lynwood City Council select from amongst themselves two of its members to serve as cannabis ad hoc committee members.

NEW/OLD BUSINESS
City Council Regular Meeting - Page 6 of 664

19. APPROVING AN AMENDED AND RESTATED EMPLOYMENT SERVICES

AGREEMENT FOR THE POSITION OF CITY MANAGER
Comments:

The City Manager's employment agreement requires the City Council to perform an annual employee evaluation and to simultaneously consider the City Manager's compensation and benefits. (CM)

Recommendation:

Staff recommends that the City Council of the City of Lynwood approve: "A RESOLUTION OF

THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,

APPROVING AN AMENDED AND RESTATED EMPLOYMENT SERVICES
AGREEMENT FOR THE POSITION OF CITY MANAGER."

20. CITY COUNCIL ORAL AND WRITTEN COMMUNICATION

21. STAFF ORAL COMMENTS

ADJOURNMENT
THE NEXT REGULAR MEETING WILL BE HELD ON AUGUST 2, 2022 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA.

City Council Regular Meeting - Page 7 of 664
Agenda Item # 8.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Harry Wong, Director of Finance & Administration
Lilly Hampton, Senior Accounting Technician

SUBJECT:

APPROVAL OF THE WARRANT REGISTERS
Recommendation:

Staff respectfully recommends that the City Council of the City of Lynwood approve the warrant registers dated July 19, 2022 for FY 2021-2022 and FY 2022-2023. (FIN)

Background:

N/A
Discussion and Analysis:

N/A
Fiscal Impact:

FY 2021-2022
FY 2022-2023

Coordinated With:

City Manager
City Attorney
City Council Regular Meeting - Page 8 of 664
ATTACHMENTS:

Description

RESOLUTION ITEM

WARRANT RUNS
7 19 2022
City Council Regular Meeting - Page 9 of 664
RESOLUTION NO. 2022.XXX

Warrant Registers Dated 07-19-2022

PASSED, APPROVED and ADOPTED this 19_th day of JULY_, 2022.

Jorge Casanova, Mayor

ATTEST:

__________________________
Maria Quiňonez, Ernie Hernandez,
City Clerk City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

________
Noel Tapia, Harry Wong,
City Attorney Director of Finance and Administration

City Council Regular Meeting - Page 10 of 664

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 19th day of JULY, 2022.

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM

SOLACHE AND MAYOR CASANOVA

NOES: NONE

ABSENT: NONE

ABSTAIN: NONE

________________________
Maria Quiňonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2022.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this _19 th day of JULY_, 2022.

___________________________
Maria Quiňonez,
City Clerk

City Council Regular Meeting - Page 11 of 664
vchlist
07/06/2022
Bank code:

Voucher
205113
205114
205115
205117
205118
205119
205120
205121
205122
1:09:22PM
apbank
Date Vendor
6/29/2022 000163 SOUTHERN CALIFORNIA EDISON
6/29/2022 000164 THE GAS CO.
6/29/2022 013613 TLC CREATIVE
7/6/2022 009633 EVENT STEP AND REPEAT
7/6/2022 001087 FANTASY FLOWERS AND GIFTS
7/6/2022 001087 FANTASY FLOWERS AND GIFTS
7/6/2022 013478 TORRENT RESOURCES (CA), INC
7/6/2022 005282 FRANCHISE TAX BOARD
7/6/2022 013084 LE, JESSICA
9 Vouchers for bank code : apbank
9 Vouchers in this report
FY 2021-2022
Prepaid-Check List
City of Lynwood
Invoice
000163062922
000164062922
228400512
15323
15323-A
1398
1366
5010220131001
Ben146074
Ben146072
PO#
08-004974
08-004878
08-004969
01-001717
01-001636
06-009413
Description/Account

LIGHT & POWER SERVICES
Total :

GAS SERVICES
Total :

COMMUNITY ACTIVITY EXPENSE
Total:

COMMUNITY ACTIVITY EXPENSE

COMMUNITY ACTIVITY EXPENSE
Total:

COMMUNITY ACTIVITY EXPENSE
Total :

COMMUNITY ACTIVITY EXPENSE
Total:

PROF & CONTRACTUAL SERVICES
Total :

FRANCHISE TAX BOARD: PAYMENT
Total:

LEVY PAYMENT
Total:

Bank total:

Total vouchers :

Page: 1
Amount
5,488 .57
5,488.57
71 .02

71.02 10,000.00
10,000.00
902.29
4,043.83
4,946.12
220.50
220.50

88.20 88.20
5,100.00
5,100.00
599.81
599.81
293.00
293.00
26,807.22
26,807.22
Page : 1
City Council Regular Meeting - Page 12 of 664
vchlist
07/06/2022
Bank code:

Voucher
205116
5:42:05PM
apbank
Date Vendor
6/30/2022 013609 PEREZ, DALIA CONTRERAS
1 Vouchers for bank code :
1 Vouchers in this report
apbank
FY 2021-2022
Prepaid-Check List
City of Lynwood
Invoice
10024
Page: 2
PO# Description/Account Amount

COMMUNITY ACTIVITY EXPENSE
08-004972 500.00
Total: 500.00
Bank total: 500.00
Total vouchers: 500.00
Page: 2
City Council Regular Meeting - Page 13 of 664
vchlist
07/11/2022
Bank code:

Voucher
205123
205124
8:02:26AM
apbank
Date Vendor
717/2022 001224 STANDARD INSURANCE COMPANY
7/11/2022 008216 NOVA STORAGE
2 Vouchers for bank code : apbank
2 Vouchers in this report
FY 2022-2023
Prepaid-Check List
City of Lynwood
Invoice
001224-073122
001224-073122-A
58834
Page: 3
PO# Description/Account Amount
LIFE INSURANCE PREMIUM 7/2022 771 .00
LIFE INSURANCE PREMIUM 7/2022 1,407 .00
Total : 2,178.00
02-002607 RENTAL BLDGS & EQUIPMENT 1,178.00
Total: 1,178.00
Bank total: 3,356.00
Total vouchers: 3,356.00
Page: 3
City Council Regular Meeting - Page 14 of 664
vchlist
07/13/2022
Bank code:

Voucher
205125
3:16:13PM
apbank
Date Vendor
7/11/2022 000163 SOUTHERN CALIFORNIA EDISON
1 Vouchers for bank code :
1 Vouchers in this report
apbank
FY 2021-2022
Prepaid-Check List
City of Lynwood
Invoice
000163070622
PO# Description/Account
------ -

LIGHT & POWER SERVICE
Total:

Bank total:

Total vouchers :

Page: 4
Amount
54,350.89
54,350.89
54,350.89
54,350.89
Page: 4
City Council Regular Meeting - Page 15 of 664
FY 2021-2022
vchlist Check List Page: 5
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205126 7/19/2022 000743 ADMINISTRATIVE SVCS. CO-OP 220419 08-004690 PROF & CONTRACTUAL SERVICE 6,919.58 220523 08-004690 PROF & CONTRACTUAL SERVICE 7,434.31
Total: 14,353.89
205127 7/19/2022 001994 ALIN'S PARTY SUPPLY CO. 600878 08-004788 COMMUNITY ACTIVITIES EXPENSE 723.70 602567 08-004673 COMMUNITY ACTIVITIES EXPENSE 341 .32
Total : 1,065.02
205128 7/19/2022 013279 ALVARADO, MARIA DE LA LUZ o 13219-061622 05-001914 MONTHLY STIPEND 50.00 Total : 50.00
205129 7/19/2022 010746 ALVAREZ-GLASMAN & COLVIN 2022-02-20315-3 02-002525 LEGAL SERVICES 1,783.00 2022-02-20315-4 02-002525 LEGAL SERVICES 2,038.00
2022-02-20315-5 02-002525 LEGAL SERVICES 246.50
2022-02-20317-2 02-002525 LEGAL SERVICES 975.00
Total : 5,042.50
205130 7/19/2022 013608 AMAYA, ANYSSA 013608-2022 08-004976 EVENT COMPETITIONS/SCHOLARSHIPS 600.00 Total: 600.00
205131 7/19/2022 008217 AMAZON.COM, LLC 445579883894 11-002111 OPERATING SUPPLIES 1,348.80 Total : 1,348.80
205132 7/19/2022 003312 AMERICAN RENTALS 506742 06-009483 OPERATING SUPPLIES 609.29 Total : 609.29
205133 7/19/2022 000926 AMERICAN TRANSPORTATION SYSTEM 125110 08-004670 PROF & CONTRACTUAL SERVICE 1,251.00 125111 08-004670 PROF & CONTRACTUAL SERVICE 1,529.00
Total : 2,780.00
205134 7/19/2022 001821 APPLE, INC. AJ07758513 OPERATING SUPPLIES 1,356.55 08-004917
Total: 1,356.55
205135 7/19/2022 004285 AVANT GARDE, INC. 7710 06-008241 PROF & CONTRACTUAL SERVICE 1,617.50 Total: 1,617.50
Page: 5
City Council Regular Meeting - Page 16 of 664
vchlist Check List Page: 6
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount -
205136 7/19/2022 002978 B.L. WALLACE-DISTRIBUTOR, INC. 20222285 06-009183 REPAIRS AND MAINTENANCE 1,405.69 Total: 1,405.69
205137 7/19/2022 013618 BALTAZAR, PATRICIA 002063-0036 REFUND-BATEMAN HALL RENTAL 100.00 Total : 100.00
205138 7/19/2022 001046 BAVCO 164400 06-009185 OPERATING SUPPLIES 2,204.78 Total : 2,204.78
205139 7/19/2022 000377 BEST BUY BUSINESS ADVANTAGE 6218890 08-004977 EQUIPMENT SUPPLIES 989.85 Total : 989.85
205140 7/19/2022 000300 BUBBS HARDWARE 236 06-009188 OPERATING SUPPLIES 8.35 Total : 8.35
205141 7/19/2022 012005 CARNEY MEHR, A LEGAL CORP. 244 05-001929 LEGAL SERVICES 4,592.50 260 05-001910 LEGAL SERVICES 2,640.00
277 05-001929 LEGAL SERVICES 1,622.50
Total: 8,855.00
205142 7/19/2022 009202 CENTRAL RESTAURANT PRODUCTS 11661212-1 08-004950 EQUIPMENT SUPPLIES 19,176.82 Total : 19,176.82
205143 7/19/2022 013622 CHANG, ANDREW 001512-0048 REFUNDABLE DEPOSIT 3,500.00 Total : 3,500.00
205144 7/19/2022 009302 CHESSER, CHRISTINE 15439228 08-004733 PROF & CONTRACTUAL SERVICE 250.00 Total : 250.00
205145 7/19/2022 000702 CINTAS DOCUMENT MANAGEMENT 8405749201 08-004720 PROF & CONTRACTUAL SERVICE 71 .30 Total : 71.30
205146 7/19/2022 013555 COLLINS, JORDAN 013555-063022 08-004958 PROF & CONTRACTUAL SERVICE 680.00 Total: 680.00
205147 7/19/2022 012021 CONCENTRA MEDICAL CENTERS 75590928 05-001879 PROF & CONTRACTUAL SERVICE 513.00 75666364 05-001879 PROF & CONTRACTUAL SERVICE 342.00
Page: 6
City Council Regular Meeting - Page 17 of 664
vchlist Check List Page : 7
07/13/2022 5:38:40PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205147 7/19/2022 012021 012021 CONCENTRA MEDICAL CENTERS (Continued) Total : 855.00 205148 7/19/2022 010944 CONVERGEONE, INC. IE9093288 12-000401 REPAIRS/MAINT-BLDG & EQUIPMENT 4,520.16 Total: 4,520.16
205149 7/19/2022 010754 COOL IMAGE WATER, OBA/ AMERICAN 1508 03-000434 PROF & CONTRACTUAL SERVICE 8.06 1508-A 03-000416 PROF & CONTRACTUAL SERVICE 21 .89
1559 03-000434 PROF & CONTRACTUAL SERVICE 23.96
1577 02-002586 PROF & CONTRACTUAL SERVICE 30.96
Total : 84.87
205150 7/19/2022 007243 COUNTY OF LOS ANGELES, 22061307352 06-009233 PROF & CONTRACTUAL SERVICE 261 .56 22061307353 06-009233 PROF & CONTRACTUAL SERVICE 258.91 Total : 520.47
205151 7/19/2022 009030 CPACINC.COM Sl-1294974 12-000399 PROF & CONTRACTUAL SERVICE 1,126.80 Total : 1,126.80
205152 7/19/2022 011977 DELGADILLO, LILIANAA . 011977-061622 05-001915 MONTHLY STIPEND 50.00 Total : 50.00
205153 7/19/2022 002430 DELGADILLO, YOLANDA 001976-0015 REFUND-BATEMAN HALL RENTAL 100.00 Total : 100.00
205154 7/19/2022 013431 DEONDRA TISDALE 013431-061622 05-001904 MONTHLY SITPEND 50.00 Total : 50.00
205155 7/19/2022 013614 DKF SOLUTIONS GROUP LLC 20409 REGISTRATION FEE 299.00 Total: 299.00
205156 7/19/2022 009569 ECAMSECURE 843005 12-000402 PROF & CONTRACTUAL SERVICE 767.71 843005-ADD15 12-000402 PROF & CONTRACTUAL SERVICE 1,547.07 Total : 2,314.78
205157 7/19/2022 002799 ECS IMAGING INC 16986 12-000403 PROF & CONTRACTUAL SERVICE 16,588.00 Total : 16,588.00
205158 7/19/2022 013606 EDUCATIONAL FOUNDATION, LYNWOOD LPEF061522 08-004978 COMMUNITY ACTIVITIES EXPENSE 1,440.00 Page: 7
City Council Regular Meeting - Page 18 of 664
vchlist Check List Page: 8
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205158 7/19/2022 013606 013606 EDUCATIONAL FOUNDATION, (Continued) Total: 1,440.00 205159 7/19/2022 013546 EPIC OUTDOOR CINEMA,LLC 13831 08-004952 COMMUNITY ACTIVITIES EXPENSE 24,529.29 Total: 24,529.29
205160 7/19/2022 001087 FANTASY FLOWERS AND GIFTS 1390 08-004960 OTHER FEES FOR SERVICES 30.00 6608 08-004960 OTHER FEES FOR SERVICES 661 .50
Total : 691.50
205161 7/19/2022 001393 FERGUSON ENTERPRISES, INC. 1497038-1 06-009148 MATERIALS AND SUPPLIES 435.56 1518021 06-009148 MATERIALS AND SUPPLIES 576.43
1542470 06-009148 MATERIALS AND SUPPLIES 1,293.86
Total : 2,305.85
205162 7/19/2022 002234 FLORES, MARK 002234-022822 08-004848 COMMUNITY ACTIVITIES EXPENSE 291.67 Total : 291.67
205163 7/19/2022 009082 FLOYD, LATASIA 009082-063022 08-004897 PROF & CONTRACTUAL SERVICE 1,600.00 Total: 1,600.00
205164 7/19/2022 003983 GALLS QUARTERMASTER BC1631691 11-001927 OTHER FEES FOR SERVICES 405.55 BC1631923 11-001927 OTHER FEES FOR SERVICES 41.31
Total : 446.86
205165 7/19/2022 005304 GOLDEN BELL PRODUCTS INC. 17922 06-009501 OPERATING SUPPLIES 18,844.50 Total : 18,844.50
205166 7/19/2022 009632 GOLDEN METERS SERVICE, INC. 1683 06-009411 PROF & CONTRACTUAL SERVICE 1,425.00 1692 06-009411 PROF & CONTRACTUAL SERVICE 1,430.00
Total : 2,855.00
205167 7/19/2022 013616 GOSMAN, GRISELDA 53607547 REFUND-CANCELLED CLASS 155.00 Total: 155.00
205168 7/19/2022 001510 GRAINGER, INC. 9352462296 06-009203 OPERATING SUPPLIES 2,366.83 9352462304 06-009203 OPERATING SUPPLIES 91 .84
9352462312 06-009203 OPERATING SUPPLIES 90.26
9353766679 06-009203 OPERATING SUPPLIES 403.31
Page: 8
City Council Regular Meeting - Page 19 of 664
vchlist Check List Page: 9
07/13/2022 5:38:40PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205168 7/19/2022 001510 GRAINGER, INC. (Continued)
9362637762 06-009203 OPERATING SUPPLIES 1,983.71
Total: 4,935.95
205169 7/19/2022 000233 HARDY AND HARPER, INC. 2-47716 B 06-009237 PROF & CONTRACTUAL SERVICE 180,983.45 Total: 180,983.45
205170 7/19/2022 003338 HILLYARD-LOS ANGELES 604784313 06-009239 OPERATING SUPPLIES 2,668 .02 604788488 06-009239 OPERATING SUPPLIES 51.43
604792186 06-009239 OPERATING SUPPLIES 2,279 .53
604792187 06-009239 OPERATING SUPPLIES 2,968 .10
604792188 06-009239 OPERATING SUPPLIES 1,495.21
Total: 9,462.29
205171 7/19/2022 000676 IDEAL LIGHTING SUPPLY, INC. 121862 06-009275 ELECTRICAL SUPPLIES 72.29 Total : 72.29
205172 7/19/2022 005848 INFRASTRUCTURE ENGINEERS 26938 06-009416 PROF & CONTRACTUAL SERVICE 10,585 .20 Total : 10,585 .20
205173 7/19/2022 008254 JCL TRAFFIC SERVICES 115065 06-009225 OPERATING SUPPLIES 2,887.48 115066 06-009462 OPERATING SUPPLIES 3,706 .22
Total: 6,593.70
205174 7/19/2022 013521 LOS ANGELES ENGINEERING , INC 3-EAST 06-009482 PROF & CONTRACTUAL SERVICE 171,237 .50 3-WEST 06-009482 PROF & CONTRACTUAL SERVICE 523 ,422 .85 Total : 694,660.35
205175 7/19/2022 003313 LOS ANGELES METROPOLITAN, 6016706 02-002589 PROF & CONTRACTUAL SERVICE 212 .00 Total : 212 .00
205176 7/19/2022 000111 MANAGED HEAL TH NETWORK PRM-072969 05-001882 EMPLOYEE ASSISTANCE PROGRAM 323 .95 Total: 323.95
205177 7/19/2022 002761 MARCO POWER EQUIPMENT 21214936 06-009244 SUPPLIES, REPAIRS, MACHINERY 256 .88 Total : 256.88
205178 7/19/2022 004509 MARISOL MEDINA 004509-063022 08-004697 PROF & CONTRACTUAL SERVICE 1,408 .00 Page: 9
City Council Regular Meeting - Page 20 of 664
vchlist Check List Page: 10
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205178 7/19/2022 004509 004509 MARISOL MEDINA (Continued) Total: 1,408.00 205179 7/19/2022 013615 MARTINEZ ROOFING B-010865 REFUND-PERMIT CANCELLED 264.00 Total: 264.00
205180 7/19/2022 002683 MAY TOOL I NC. 196415 06-009207 REPAIRS/ MAI NT-BLDG & EQUIPMENT 650.11 Total: 650.11
205181 7/19/2022 013620 MEDINA, MARISOL 49556 REFUND-BATEMAN HALL RENTAL 100.00 Total: 100.00
205182 7/19/2022 013621 MENDOZA, JESUS 001818-0016 REFUNDABLE DEPOSIT 2,220.00 Total: 2,220.00
205183 7/19/2022 013504 MINER, LTD 5310510986 06-009523 REPAIRS/ MAINT-BLDG & EQUIPMENT 495.75 Total: 495.75
205184 7/19/2022 000982 MITY-LITE 00149331 08-004945 REPAIRS/ MAI NT-BLDG & EQUIPMENT 652.51 00149378 08-004945 REPAIRS/ MAINT-BLDG & EQUIPMENT 19,235.91 Total: 19,888.42
205185 7/19/2022 012270 MUNIENVIRONMENTAL, LLC 22-015 06-009466 PROF & CONTRACTUAL SERVICE 3,800.00 Total: 3,800.00
205186 7/19/2022 013440 MUNISERVICES LLC INV06-013520 02-002612 PROF & CONTRACTUAL SERVICE 2,036.77 INV06-013664 02-002612 PROF & CONTRACTUAL SERVICE 1,894.24 INV06-013665 02-002612 PROF & CONTRACTUAL SERVICE 1,937.08 INV06-014176 02-002612 PROF & CONTRACTUAL SERVICE 1,000.00 I NV06-014200 02-002612 PROF & CONTRACTUAL SERVICE 1,875.00 INV06-014255 02-002552 PROF & CONTRACTUAL SERVICE 176.92 INV06-014256 02-002552 PROF & CONTRACTUAL SERVICE 63.34 Total : 8,983.35
205187 7/19/2022 009647 MV CHENG & ASSOCIATES, INC. 6/30/2022 02-002590 PROF & CONTRACTUAL SERVICE 1,580.00 Total : 1,580.00
205188 7/19/2022 000475 NATIONWIDE ENVIRONMENTAL SVCS. 32442 06-009246 PROF & CONTRACTUAL SERVICE 45,867.37 Page: 10
City Council Regular Meeting - Page 21 of 664
vchlist Check List Page: 11
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205188 7/19/2022 000475 000475 NATIONWIDE ENVIRONMENTAL (Continued) Total: 45,867.37 205189 7/19/2022 000475 NATIONWIDE ENVIRONMENTAL SVCS. 32442-A 11-001954 PROF & CONTRACTUAL SERVICE 4,536 .33 Total: 4,536.33
205190 7/19/2022 000078 ODP BUSINESS SOLUTIONS,LLC 248975577001 03-000428 OFFICE SUPPLIES 658.47 252044749001 01-001642 OFFICE SUPPLIES 196.34
252886580001 08-004739 OFFICE SUPPLIES 318.04
252886580001-A 08-004739 OFFICE SUPPLIES 156.01
252886590001 08-004739 OFFICE SUPPLIES 181 .76
252886590001-A 08-004739 OFFICE SUPPLIES 292.29
253344564001 08-004739 OFFICE SUPPLIES 881 .96
Total: 2,684.87
205191 7/19/2022 013552 ODP BUSINESS SOLUTIONS,LLC 247773587001 11-002114 OFFICE SUPPLIES 364.71 247777511001 11-002115 OFFICE SUPPLIES 539.11
247777516001 11-002114 OFFICE SUPPLIES 39.68
247777517001 11-002114 OFFICE SUPPLIES 31.41
Total: 974.91
205192 7/19/2022 005562 ORKIN PEST CONTROL 231835430 08-004718 PEST CONTROL SERVICE 279 .00 232256889 08-004718 PEST CONTROL SERVICE 140.00
Total: 419.00
205193 7/19/2022 001425 PACIFIC COAST BOLT 2095915 06-009282 MATERIALS AND SUPPLIES 674.73 Total : 674.73
205194 7/19/2022 012486 PEREZ, JAVIER ARMANDO 012486-063022 08-004900 PROF & CONTRACTUAL SERVICE 2,222.80 012486-063022-A 08-004981 PROF & CONTRACTUAL SERVICE 382.08 Total : 2,604.88
205195 7/19/2022 004854 PETTY CASH- FINANCE 004854-062722 REPLENISH BOX 320.85 004854-062922 REPLENISH BOX 72.00
Total: 392.85
205196 7/19/2022 008307 PHOENIX GROUP INFORMATION SYS 0520221204 11-002104 PROF & CONTRACTUAL SERVICE 1,224.08 052022902 11-002104 PROF & CONTRACTUAL SERVICE 350.00
Page: 11
City Council Regular Meeting - Page 22 of 664
vchlist Check List Page: 12
07/13/2022 5:38:40PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205196 7/19/2022 008307 008307 PHOENIX GROUP INFORMATION (Continued) Total : 1,574.08 205197 7/19/2022 009298 PRINTING MULTISERVICES, GALAVIZ'S 2065 06-009550 PROF & CONTRACTUAL SERVICE 545.74 Total: 545.74
205198 7/19/2022 006281 PROFESSIONAL SECURITY, IN000119734 08-004700 PROF & CONTRACTUAL SERVICE 9,930.54 IN000120224 08-004901 PROF & CONTRACTUAL SERVICE 440.05 Total : 10,370.59
205199 7/19/2022 001313 QUINONEZ, MARIA 001313-063022 ELECTRONIC/MEDIA-AUTO EXPENSES 500.00 Total: 500.00
205200 7/19/2022 001057 RAMIREZ, JUAN E. 220623 03-000432 PROF & CONTRACTUAL SERVICE 775.00 Total : 775.00
205201 7/19/2022 011613 REACH MEDIA NETWORK 79666 08-004982 PROF & CONTRACTUAL SERVICE 1,404.00 Total: 1,404.00
205202 7/19/2022 008690 RICOH USA, INC. 5064897011 06-009287 REPAIRS/ MAINT-BLDG & EQUIPMENT 189.65 Total: 189.65
205203 7/19/2022 005067 ROADLINE 17690 06-009561 OPERATING SUPPLIES 5,752.25 Total: 5,752.25
205204 7/19/2022 013607 ROBLES, NATTEN 013607-2022 08-004983 EVENT COMPETITIONS/SCHOLARSHIPS 600.00 Total: 600.00
205205 7/19/2022 000519 S&S WORLDWIDE IN 100993190 08-004932 OPERATING SUPPLIES 1,802.09 IN101017872 08-004932 OPERATING SUPPLIES 80.43
IN101024268 08-004932 OPERATING SUPPLIES 74.46
so 1 01650218-006 08-004932 OPERATING SUPPLIES 800.07
Total : 2,757.05
205206 7/19/2022 012093 SAESHE 9137 06-009329 PROF & CONTRACTUAL SERVICE 720.00 9138 06-009329 PROF & CONTRACTUAL SERVICE 2,965.00
9139 06-009329 PROF & CONTRACTUAL SERVICE 3,211.00
9140 06-009329 PROF & CONTRACTUAL SERVICE 600.00
9141 06-009329 PROF & CONTRACTUAL SERVICE 925.00
Page: 12
City Council Regular Meeting - Page 23 of 664
vchlist
07/13/2022
Bank code:

Voucher
205206
205207
205208
205209
205210
205211
205212
5:38:40PM
apbank
Date Vendor
7/19/2022 012093 012093 SAESHE
7/19/2022 006772 SEA CLEAR POOL , INC.
7/19/2022 011753 ST. NICK'S
Check List
City of Lynwood
Invoice
22-3584
22-3601
22-3602
22-3603
22-3605
2535
2535-A
(Continued)
7/19/2022 008420 SWANK MOTION PICTURES, INC RG 1910095
7/19/2022 002938 TAJ OFFICE SUPPLY 01808
7/19/2022 013525 TANORY, YADIRA 013525-053122
7/19/2022 013215 THE HOME DEPOT PRO SUPPLY WORK 691937825 691940209
692199763
692211048
692219199
692220395
692241391
692253370
692408610
692485790
692991896
693225997
693473324
693480717
693710196
693764920
PO#
06-009171
06-009171
06-009171
06-009171
06-009171
06-009564
11-002121
08-004973
02-002604
08-004887
06-009140
06-009140
06-009140
06-009140
06-009140
06-009140
06-009140
06-009140
06-009128
08-004743
06-009140
06-009140
06-009140
06-009297
06-009140
06-009140
Page: 13
Description/Account Amount
Total : 8,421.00
REPAIRS/ MAINT-BLDG & EQUIPMENT 312.70
REPAIRS/ MAI NT-BLDG & EQUIPMENT 330.68
REPAIRS/ MAINT-BLDG & EQUIPMENT 110.23
REPAIRS/ MAI NT-BLDG & EQUIPMENT 330.68
REPAIRS/ MAINT-BLDG & EQUIPMENT 330.68
Total: 1,414.97
OPERATING SUPPLIES 53,000.00
OPERATING SUPPLIES 50,000 .00
Total : 103,000.00
LICENSING FEES PARK 495.00
Total : 495.00
OPERATING SUPPLIES 37.49
Total : 37.49
PROF & CONTRACTUAL SERVICE 21 .60
Total : 21.60
MATERIALS & SUPPLIES 350.60
MATERIALS & SUPPLIES 497 .84
MATERIALS & SUPPLIES 242.22
MATERIALS & SUPPLIES 791.10
MATERIALS & SUPPLIES 230.90
MATERIALS & SUPPLIES 498.89
MATERIALS & SUPPLIES 344.27
MATERIALS & SUPPLIES 407 .78
MATERIALS & SUPPLIES 3,747.56
MATERIALS & SUPPLIES 799.22
MATERIALS & SUPPLIES 408 .79
MATERIALS & SUPPLIES 862.89
MATERIALS & SUPPLIES 502.70
MATERIALS & SUPPLIES 663.27
MATERIALS & SUPPLIES 475.86
MATERIALS & SUPPLIES 567.80
Page: 13
City Council Regular Meeting - Page 24 of 664
vchlist Check List Page: 14
07/13/2022 5:38:40PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205212 7/19/2022 013215 THE HOME DEPOT PRO SUPPLY WORK (Continued) 693765232 06-009128 MATERIALS & SUPPLIES 2,453.10
693766842 06-009140 MATERIALS & SUPPLIES 1,190.94
693769028 06-009297 MATERIALS & SUPPLIES 2,446.23
693769465 06-009140 MATERIALS & SUPPLIES 225.95
694127630 06-009128 MATERIALS & SUPPLIES 2,465.50
694127648 06-009297 MATERIALS & SUPPLIES 1,141.20
694127648-A 06-009128 MATERIALS & SUPPLIES 6,886.32
Total : 28,200.93
205213 7/19/2022 013215 THE HOME DEPOT PRO SUPPLY WORK 693225997-A 06-009330 MATERIALS & SUPPLIES 862.90 693719783 06-009330 MATERIALS & SUPPLIES 427.43
Total: 1,290.33
205214 7/19/2022 004179 TIERRA WEST ADVISORS, LLC LY-0522 11-002062 PROF & CONTRACTUAL SERVICE 23,400 .00 Total : 23,400.00
205215 7/19/2022 012294 TRANSTECH ENGINEERS, INC. 20216696 06-009372 PROF & CONTRACTUAL SERVICE 1,125.00 20216697 06-009479 PROF & CONTRACTUAL SERVICE 4,850.00
20216700 06-009549 PROF & CONTRACTUAL SERVICE 270.00
Total : 6,245.00
205216 7/19/2022 007742 ULINE, INC. 150670698 06-009220 JANITORIAL SUPPLIES 476.43 Total : 476.43
205217 7/19/2022 000166 UNDERGROUND SERVICE ALERT/SC 620220417 06-009499 UNDERGROUND SERVICE 214.60 dsb20211677 06-009499' UNDERGROUND SERVICE 73.91
Total : 288.51
205218 7/19/2022 009742 UNIFIRST CORPORATION 3242742919 06-009153 UNIFORM SERVICE 13.72 3242742920 06-009153 UNIFORM SERVICE 55.68
3242742921 06-009153 UNIFORM SERVICE 51 .73
3242742922 06-009153 UNIFORM SERVICE 72.42
3242742923 06-009153 UNIFORM SERVICE 95.74
3242742924 06-009520 UNIFORM SERVICE 81 .14
3242746279 06-009153 UNIFORM SERVICE 13.72
3242746280 06-009153 UNIFORM SERVICE 55.68
Page: 14
City Council Regular Meeting - Page 25 of 664
vchlist Check List Page: 15
07/13/2022 5:38:40PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 205218 7/19/2022 009742 UNIFIRST CORPORATION (Continued) 3242746281 06-009153 UNIFORM SERVICE 51 .73
3242746282 06-009153 UNIFORM SERVICE 72.42
3242746283 06-009153 UNIFORM SERVICE 85.14
3242746284 06-009520 UNIFORM SERVICE 81 .14
Total: 730.26
205219 7/19/2022 013465 UNION PACIFIC RAILROAD COMPANY 90116327 06-009387 PROF & CONTRACTUAL SERVICE 3,395.76 Total: 3,395.76
205220 7/19/2022 001725 UNITED STATES TREASURY 720-V 2022 FORM 720 REPORTING FEE- 0.07 Total : 0.07
205221 7/19/2022 008657 WASTE RESOURCES, INC. 008657-062822 02-002606 RUBBISH PROPERTY TAX 55,233.84 Total: 55,233.84
205222 7/19/2022 002912 WATERLINE TECHNOLOGIES,INC 5587880 06-009507 OPERATING SUPPLIES 370.44 5587881 06-009507 OPERATING SUPPLIES 289.41
5587883 06-009507 OPERATING SUPPLIES 266.25
5587888 06-009507 OPERATING SUPPLIES 335.71
5589074 06-009507 OPERATING SUPPLIES 277.83
5589076 06-009507 OPERATING SUPPLIES 266.25
5589077 06-009507 OPERATING SUPPLIES 254.68
Total: 2,060.57
205223 7/19/2022 000040 WAXIE SANITARY SUPPLY 81013516 06-009222 JANITORIAL SUPPLIES 2,906.65 Total: 2,906.65
205224 7/19/2022 010312 WEBER WATER RESOURCES CA, LLC 1556 06-009562 REPAIRS/ MAINT-BLDG & EQUIPMENT 138,578.00 Total: 138,578.00
205225 7/19/2022 001522 WECK LABORATORIES, INC. W2G0317-colynwood 06-009508 PROF & CONTRACTUAL SERVICE 480.00 Total : 480.00
205226 7/19/2022 000601 WESTERLY METER SERVICE CO. 17111 06-009268 PROF & CONTRACTUAL SERVICE 457.27 Total: 457.27
205227 7/19/2022 013287 WINSTAR DONUTS 220630 08-004986 COMMUNITY ACTIVITY EXPENSE 400.00 Page: 15
City Council Regular Meeting - Page 26 of 664
vchlist
07/13/2022
Bank code:

Voucher
205227
205228
5:38:40PM
apbank
Date Vendor
7/19/2022 013287 013287 WINSTAR DONUTS
7/19/2022 012137 XIO INC.
103 Vouchers for bank code: apbank
Check List
City of Lynwood
Invoice
(Continued)
20122152
PO#
-------
06-009409
Description/Account
Total:

PROF & CONTRACTUAL SERVICE
Total:

Bank total:

Page: 16
Amount
400.00
760 .00
760.00
1,554,126.76
Page: 16
City Council Regular Meeting - Page 27 of 664
vchlist
07/14/2022
Bank code :

Voucher
205229
205230
205231
9:06:20AM
apbank
Date Vendor
7/19/2022 007782 CAMACHO, GABRIELA
7/19/2022 000078 ODP BUSINESS SOLUTIONS,LLC
7/19/2022 004854 PETTY CASH- FINANCE
3 Vouchers for bank code : apbank
FY 2022-2023
Check List
City of Lynwood
Invoice
007782-073122
254230150001
004854-071122
Page: 17
PO# Description/Account Amount
ELECTRONIC/MEDIA-AUTO EXPENSES 500.00
Total: 500.00
02-002608 OPERATING SUPPLIES 509.22
Total: 509.22
REPLENISH BOX 319.37
Total: 319.37
Bank total: 1,328.59
Page: 17
City Council Regular Meeting - Page 28 of 664
vchlist
07/14/2022
Bank code :

Voucher
205232
205233
205234
3:53:32PM
apbank
Date Vendor
7/19/2022 005848 INFRASTRUCTURE ENGINEERS
7/19/2022 013623 NTANIOS, RABIH
7/19/2022 006858 ORBIT RENTALS INC
3 Vouchers for bank code :
3 Vouchers in this report
apbank
FY 2021-2022
Check List
City of Lynwood
Invoice
---------
26556 Revise
9508
113006
PO#
11-002031
08-004939
Description/Account

PROF &-CONTRACTUAL SERVICES
Total :

REFUND BUILDING PERMIT
Total :

RENTAL BLDGS & EQUIPMENT
Total:

Bank total:

Total vouchers :

Page: 18
Amount
34,466.00
34,466.00
67,196.00
67,196.00
641.60
641.60
102,303.60
102,303.60
Page: 18
City Council Regular Meeting - Page 29 of 664
Agenda Item # 9.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Gabriela Camacho, City Treasurer
Sheila Harding, Deputy City Treasurer

SUBJECT:

TREASURER'S MONTHLY INVESTMENT REPORT
Recommendation:

It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.

Background:

Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer
shall
make a monthly report of those transaction to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to establishment of an Investment Policy and investment reporting states that “the Treasurer may render a quarterly report”. To determine the applicable code inasmuch as reference to Government Code Section 53607 or non-compliance thereof has never been included in past audit findings. While Government Code Section 53646 (b) (1) which is the most current version related to Investment Reporting utilizes the word “may” indicating the reporting mechanism is optional, to err on the side of caution, and in order to ensure that we are in compliance with all Government Codes, a new procedure of submitting monthly reports to the Council/Agency agenda was implemented. Attached for Council/Agency review is the City’s/Agency’s Monthly Treasurer’s Report.

Subsequent reports will be provided on a monthly basis at the second meeting of each month.

Discussion and Analysis:

City Council Regular Meeting - Page 30 of 664
The investment transactions were executed in accordance with the City's Investment Policy and the California State Government Code Section 53646(b)(3) that requires the general fund is able to meet its expenditure requirements for the next six months.

Fiscal Impact:

The action recommended in this report will not have a fiscal impact on the City.

Coordinated With:

FHN Financial Main Street Advisors currently monitors the City’s investment activities.

ATTACHMENTS:

Description
ACTIVITY & PERFORMANCE - JUNE 2022
FHN REPORT - JUNE 2022
ECONOMIC REPORT - JUNE 2022
City Council Regular Meeting - Page 31 of 664

ACTIVITY & PERFORMANCE SUMMARY
JUNE 2022

1 The following is the City’s cash flow and the monthly investment report. The monthly report includes a summary of the City’s investment portfolio, a monthly review of the investment market as prepared by the investment managers and detailed information on monthly transactions, cash flows and investments by issuer.

FHN Investment Advisors manage the portion of investments not invested by LAIF (State Local Agency Investment Fund).

The tables below provide key statistics regarding the City’s cash flow and investment portfolio as of June 30, 2022.

Type Balances Held
Cash - US Bank $ 61,579,681.00
Cash - JPMorgan Chase Bank $ 7,592,849.00
Local Agency Investment Fund $ 9,545,267.55
FHN Investment Advisors/BNY $ 16,024,088.42
TOTAL $ 94,741,885.97

FHN ACCOUNT SUMMARY
June 2022 May 2022
Market Value $25,569,356 $25,667,117
Book Value $26,264,220 $26,254,319
Variance -$694,864 -$587,202
Par Value $26,223,310 $26,209,933
Net Asset Value $97.35 $97.76
Book Yield 1.20% 1.13%
Market Yield 2.32% 1.87%
Years to Maturity 1.55 1.55
Effective Duration 1.44 1.45

FHN INVESTMENT COMPLIANCE
% %
Company Book Value of Portfolio of Total
US Treasuries 6,501,539.61 24.75% 100%
US Federal Agencies 3,822,640.27 14.55% 100%
Supranational Obligations 0.00 0% 30%
LAIF 9,545,267.55 36.36 100%
Commercial Paper 349,980.55 1.33 25%
Money Market Funds 556,042.84 2.12 20%
Negotiable Certificates of Deposit 3,471,133.37 13.22 30% Corporate Obligations 2,017,615.41 7.68 30%
State and Local Governments 0.00 0% 100%

City Council Regular Meeting - Page 32 of 664

ACTIVITY & PERFORMANCE SUMMARY
JUNE 2022

2 All of the City’s rated investments were rated “A” or higher by at least two rating agencies on June 30, 2022.

The City’s investments comply with its current investment policy, which emphasizes the safety, liquidity, and return of its investments, allowing the city to meet its expenditures for the next six months.

FHN INCOME EARNED SUMMARY
June Month End Fiscal Year to Date
Interest
Interest Received/Purchased. 11,382.08 272,079.90
Plus Accrued Interest at End of Period 56,809.32 56,809.32 Less Accrued Interest at Beginning of Period -47,208.79 -67,702.76 Interest Earned During Period 20,982.61 261,186.46

Total Adjustments for Amortization/Accretion -1,481.69 -19,025.05 Total Capital Gains or Losses 0.00 0.00
Total Earnings During Period 19,500.92 242,161.41

PURCHASES & MATURITIES

PURCHASE(S)

SETTLEMENT

DATE NAME

TRANSACTION

TYPE ISSUER PAR VALUE
MARKET

VALUE RATING
6/9/2022 Amazon Purchase Corp Bond 248,005.00 244,702.50 A1/AA

REDEMPTION(S)

MATURITY

DATE NAME

TRANSACTION

TYPE ISSUER REDEMPTION
COUPON

RATE INTEREST
6/13/2022 Flagstar Bank Mature
Cert of
Deposit 248,000.00 2.50% 3,091.51

City Council Regular Meeting - Page 33 of 664
Run Date: 7/11/2022 - 11:47 AM
Amortizing Page 2
Portfolio Summary
City of Lynwood 6/30/2022

SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)

ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 6/30/22 5/31/22 Issuer % Portfolio
Market Value $25,569,356 $25,667,117 LAIF 36.3%
Book Value $26,264,220 $26,254,319 U.S. Treasury 24.8%
Variance -$694,864 -$587,202 FHLB 6.2%
FNMA 3.8%
Par Value $26,223,310 $26,209,933 FFCB 2.7%
Goldman Sachs Govt MMF 2.1%
Net Asset Value $97.35 $97.76 JPMorgan 1.9%
FHLMC 1.9%
Book Yield 1.20% 1.13% Royal Bank of Canada 1.3%
Exxon Mobil 1.0%
Market Yield 2.32% 1.87% Toyota 1.0%
US Bancorp 1.0%
Years to Maturity 1.55 1.55 New York Life 1.0%
Charles Schwab 0.9%
Effective Duration 1.44 1.45 Amazon 0.9%
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

1.3%

2.1%

7.7%

13.2%

14.6%

24.8%

36.3%
CP
MMF
CORP
CD
AGY
TSY
LAIF
100%75%50%25%0%

48.3%

13.3% 13.3% 15.2%

9.9%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%

49.6%

2.9%

1.0%

42.4%

1.3%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 City Council Regular Meeting - Page 34 of 664
Run Date: 7/11/2022 - 11:47 AM
Amortizing Page 3
Investment Policy Compliance
City of Lynwood 6/30/2022
Category Book Value % of Portfolio % Allowed by Policy In ComplianceReserved row US Treasuries 6,501,539.61 24.75% 100% Yes
US Federal Agencies 3,822,640.27 14.55% 100% Yes
Supranational Obligations 0.00 0.00% 30% Yes
Commercial Paper 349,980.55 1.33% 25% Yes
Money Market Funds 556,042.84 2.12% 20% Yes
Negotiable Certificates of Deposit 3,471,133.37 13.22% 30% Yes Corporate Obligations 2,017,615.41 7.68% 30% Yes
State and Local Governments 0.00 0.00% 100% Yes
Total 16,718,952.06 63.70%
Other Metrics Portfolio Metric In Compliance
Weighted Average Maturity 1.55 Less than 3.0 Years Yes
Liquidity 48.32% 30% Under 365 Days Yes
Ratings Yes
3 City Council Regular Meeting - Page 35 of 664
Run Date: 7/11/2022 - 11:47 AM
Amortizing Page 12
Historical Earnings & Book Return Performance
City of Lynwood 6/30/2022
Fiscal YTD ($K) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2020 $65.050 $31.666 $187.208 $249.056 $303.058 $354.899 $410.103 $456.891 $498.400 $552.596 $586.799 $623.500 FY 2021 $35.200 $66.215 $94.922 $120.389 $147.318 $173.870 $199.724 $223.094 $247.869 $271.162 $294.542 $316.873 FY 2022 $18.153 $37.347 $56.010 $82.204 $100.760 $118.668 $142.482 $159.901 $178.121 $203.773 $222.371 $242.161 Fiscal YTD Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Book Return 0.77% 0.78% 0.81% 0.90% 0.89% 0.88% 0.90% 0.90% 0.89% 0.92% 0.91% 0.91% Fiscal Year-To-Date Earnings
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
$0
$100
$200
$300
$400
$500
$600
$700
Thousands
FY 2020
FY 2021
FY 2022
Fiscal Year-To-Date Book Return
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%
11 City Council Regular Meeting - Page 36 of 664
Run Date: 7/11/2022 - 11:47 AM
Amortizing Page 13
Historical Yield At Cost vs Benchmark
City of Lynwood 6/30/2022
Month-End Yield At Cost vs Benchmark
Jun-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0% Portfolio
Benchmark
Trailing 12 Months: Month End Yield At Cost vs Benchmark Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4% Portfolio
Benchmark
Benchmark: Custom Benchmark (see disclosure)
12 City Council Regular Meeting - Page 37 of 664
Run Date: 7/11/2022 - 11:47 AM
Amortizing Page 15
Investment Activity
City of Lynwood 6/30/2022
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Positions 40 40 40 41 41 43 43 43 43 42 42 41
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Purchases 5 1 0 1 1 3 0 0 0 1 1 1
Redemptions 1 1 0 0 1 1 0 0 0 2 1 2
Total 6 2 0 1 2 4 0 0 0 3 2 3
Number of Positions at Month End
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 39 39
40 40
41 41
42 42
43 43
44 Positions
Purchases and Redemptions* (Excluding MMF/LGIP)
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 0 2
4 6
8 10
Number of Transactions
Purchases
Redemptions
*Redemptions include maturities, calls, and sells
14 City Council Regular Meeting - Page 38 of 664
Portfolio Summary
City of Lynwood June 30, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 3,472,000.00 3,471,133.37 13.22 2.24 650 3,377,790.20 Commercial Paper 350,000.00 349,980.55 1.33 0.33 6 349,374.38 Corporate Bonds 2,000,000.00 2,017,615.41 7.68 2.73 964 1,974,760.00 LAIF 9,545,267.55 9,545,267.55 36.34 0.86 1 9,545,267.55 Money Market Funds 556,042.84 556,042.84 2.12 1.36 1 556,042.84 U.S. Agencies 3,800,000.00 3,822,640.27 14.55 1.46 1,086 3,661,476.00 U.S. Treasuries 6,500,000.00 6,501,539.61 24.75 0.56 997 6,104,645.00 26,264,219.61 100.00 565 25,569,355.97 1.20 26,223,310.39 Investments
June 30 Month Ending Fiscal Year To DateTotal Earnings
Current Year 19,500.92 242,161.41
Average Daily Balance 26,255,811.46 26,524,700.55
Book Rate of Return 0.90% 0.91%
Run Date: 7/11/2022 - 11:47 AM
Amortizing
15City Council Regular Meeting - Page 39 of 664
Holdings Report
City of Lynwood June 30, 2022
Call Date
Maturity Date
Par Value
Settle Date
Book Value
Original Value
Mkt YTM
Mkt Price
Gain/Loss
% of Port
Fitch
Moody/S&P
Eff. Dur.

WAM
Accrued Int.

Market Value
CUSIP Coupon Rate
Issuer
Book Yield
Remaining
Certificates of Deposit
1404203Z1 248,000.00Capital One Bank USA 08/03/2017 247,417.20 100.05 248,127.95 0.94% NR/NR 0.0908/02/2022 138.49 NR 0.09 2,328.48 2.35% 247,989.46 1.72%2.300% 795450D36 248,000.00Sallie Mae Bank 08/24/2017 247,417.20 100.09 248,228.47 0.94% NR/NR 0.1508/23/2022 245.71 NR 0.15 2,043.79 2.40% 247,982.76 1.72%2.350% 61747MF63 248,000.00Morgan Stanley Bank 01/12/2018 247,417.20 99.88 247,706.03 0.94% NR/NR 0.5301/11/2023 -231.70 NR 0.52 3,078.94 2.70% 247,937.73 2.87%2.650% 59013J5Z8 248,000.00Merrick Bank 12/19/2018 247,516.40 100.22 248,546.31 0.94% NR/NR 0.6502/21/2023 621.15 NR 0.62 295.90 3.41% 247,925.16 3.00%3.350%
20033AZK5 248,000.00Comenity Capital Bank 06/29/2018 247,427.12 99.79 247,485.79 0.94% NR/NR 1.0006/29/2023 -400.01 NR 0.97 44.84 3.40% 247,885.80 3.51%3.300%
38148PR33 248,000.00Goldman Sachs Bank 07/09/2018 247,432.08 99.68 247,204.33 0.94% NR/NR 1.0207/06/2023 -680.09 NR 0.98 3,946.26 3.35% 247,884.42 3.62%3.300% 949763TF3 248,000.00Wells Fargo Bank NA 08/31/2018 247,429.60 99.70 247,265.39 0.94% NR/NR 1.1708/30/2023 -601.46 NR 1.12 22.42 3.35% 247,866.85 3.56%3.300%
29278TLY4 248,000.00EnerBank 09/30/2019 247,523.84 98.08 243,247.87 0.94% NR/NR 1.2409/27/2023 -4,603.86 NR 1.21 54.36 2.05% 247,851.73 3.58%2.000% 17312Q3B3 248,000.00Citibank 02/28/2019 247,427.12 99.35 246,377.21 0.94% NR/NR 1.6602/27/2024 -1,432.25 NR 1.59 2,527.56 3.05% 247,809.46 3.41%3.000% 32100LCB9 248,000.00First Missouri State Bank 09/13/2019 248,000.00 97.06 240,705.73 0.94% NR/NR 2.2109/13/2024 -7,294.27 NR 2.14 1,382.68 1.85% 248,000.00 3.24%1.850% 05580AXF6 248,000.00BMW Bank 09/25/2020 248,000.00 91.93 227,988.16 0.94% NR/NR 3.2409/25/2025 -20,011.84 NR 3.20 332.93 0.50% 248,000.00 3.14%0.500% 856283S98 248,000.00State Bank of India 04/27/2021 248,000.00 92.48 229,347.53 0.94% NR/NR 3.8304/27/2026 -18,652.47 NR 3.74 441.64 1.00% 248,000.00 3.10%1.000% 89235MLC3 248,000.00Toyota Financial Savings Bank 07/15/2021 248,000.00 91.94 228,006.65 0.94% NR/NR 4.0407/15/2026 -19,993.35 NR 3.94 1,077.95 0.95% 248,000.00 3.09%0.950% 90348JR93 248,000.00UBS Bank USA 08/11/2021 248,000.00 91.76 227,552.77 0.94% NR/NR 4.1208/11/2026 -20,447.23 NR 4.01 129.10 0.95% 248,000.00 3.09%0.950% 3,467,007.76 3,377,790.20 13.22% 1.78
3,471,133.37 2.24% 3,472,000.00 3.05% 17,706.85 -93,343.18 1.73Total Certificates of Deposit Commercial Paper
78015DG61 350,000.00Royal Bank of Canada, NY 12/20/2021 349,364.75 99.82 349,374.38 1.33% P-1/A-1+ 0.0207/06/2022 -606.18 F1+ 0.02 0.00 0.33% 349,980.55 10.89%0.000%
Run Date: 7/11/2022 - 11:47 AM
Amortizing
16City Council Regular Meeting - Page 40 of 664
Holdings Report
City of Lynwood June 30, 2022
Call Date
Maturity Date
Par Value
Settle Date
Book Value
Original Value
Mkt YTM
Mkt Price
Gain/Loss
% of Port
Fitch
Moody/S&P
Eff. Dur.

WAM
Accrued Int.

Market Value
CUSIP Coupon Rate
Issuer
Book Yield
Remaining
349,364.75 349,374.38 1.33% 0.02
349,980.55 0.33% 350,000.00 10.89% 0.00 -606.18 0.02Total Commercial Paper Corporate Bonds
90331HNV1 250,000.00US Bank 03/01/2019 253,307.50 99.93 249,827.50 0.95% A1/AA- 1.0707/24/2023 -974.82 AA- 0.98 3,706.94 3.08% 250,802.32 3.46%3.400% 06/23/2023 89236TFS9 250,000.00Toyota Motor Credit 02/28/2019 253,545.00 100.17 250,412.50 0.96% A1/A+ 1.5301/08/2024 -697.59 A+ 1.44 4,024.65 3.03% 251,110.09 3.24%3.350% 46625HJX9 500,000.00JPMorgan Chase & Co 05/13/2019 515,115.00 100.24 501,190.00 1.93% A2/A- 1.8705/13/2024 -4,461.33 AA- 1.78 2,416.67 2.97% 505,651.33 3.49%3.625% 64952WDL4 250,000.00New York Life 01/22/2020 249,102.50 95.73 239,325.00 0.95% Aaa/AA+ 2.5701/22/2025 -10,215.28 AAA 2.43 2,208.33 2.08% 249,540.28 3.76%2.000% 30231GBH4 250,000.00Exxon Mobil 06/22/2020 272,752.50 98.51 246,272.50 1.00% Aa2/AA- 2.7203/19/2025 -16,776.53 NR 2.53 2,119.33 0.99% 263,049.03 3.57%2.992% 02/19/2025 808513BW4 250,000.00Charles Schwab 04/12/2022 249,407.50 97.21 243,030.00 0.95% A2/A 4.7604/01/2027 -6,403.33 A 4.25 2,062.50 3.35% 249,433.33 3.95%3.300% 023135CF1 250,000.00Amazon 06/09/2022 248,005.00 97.88 244,702.50 0.94% A1/AA 4.7904/13/2027 -3,326.52 AA- 4.32 1,787.50 3.48% 248,029.02 3.79%3.300% 2,041,235.00 1,974,760.00 7.68% 2.64
2,017,615.41 2.73% 2,000,000.00 3.59% 18,325.92 -42,855.40 2.43Total Corporate Bonds LAIF
9819499 9,545,267.55LAIF 04/15/2022 9,545,267.55 1.00 9,545,267.55 36.34% NR/NR 0.0007/01/2022

0.00 NR 0.00 0.00 0.86% 9,545,267.55 0.86%0.860%
9,545,267.55 9,545,267.55 36.34% 0.00
9,545,267.55 0.86% 9,545,267.55 0.86% 0.00 0.00 0.00Total LAIF Money Market Funds
FGTXX 556,042.84Goldman Sachs Govt MMF 556,042.84 1.00 556,042.84 2.12% Aaa/AAA 0.0007/01/2022

0.00 NR 0.00 271.56 1.36% 556,042.84 1.36%1.355%
556,042.84 556,042.84 2.12% 0.00
556,042.84 1.36% 556,042.84 1.36% 271.56 0.00 0.00Total Money Market Funds Run Date: 7/11/2022 - 11:47 AM
Amortizing
17City Council Regular Meeting - Page 41 of 664
Holdings Report
City of Lynwood June 30, 2022
Call Date
Maturity Date
Par Value
Settle Date
Book Value
Original Value
Mkt YTM
Mkt Price
Gain/Loss
% of Port
Fitch
Moody/S&P
Eff. Dur.

WAM
Accrued Int.

Market Value
CUSIP Coupon Rate
Issuer
Book Yield
Remaining
U.S. Agencies
3135G0T78 500,000.00FNMA 11/30/2017 497,400.00 99.95 499,765.00 1.90% Aaa/AA+ 0.2710/05/2022 -93.45 AAA 0.26 2,388.89 2.11% 499,858.45 2.17%2.000% 3133EKTV8 500,000.00FFCB 07/02/2019 499,900.00 98.17 490,860.00 1.90% Aaa/AA+ 2.0107/01/2024 -9,099.92 AAA 1.95 4,750.00 1.90% 499,959.92 2.85%1.900% 3133EK3B0 200,000.00FFCB 10/17/2019 198,370.00 96.86 193,728.00 0.76% Aaa/AA+ 2.3010/16/2024 -5,523.60 AAA 2.23 625.00 1.67% 199,251.60 2.92%1.500% 3130A4CH3 500,000.00FHLB 10/07/2020 541,330.00 98.15 490,770.00 2.00% Aaa/AA+ 2.7103/14/2025 -34,436.90 AAA 2.58 3,529.51 0.49% 525,206.90 3.09%2.375% 3136G4H71 500,000.00FNMA 08/18/2020 500,000.00 92.34 461,720.00 1.90% Aaa/AA+ 3.1208/12/2025 -38,280.00 AAA 3.06 923.61 0.50% 500,000.00 3.10%0.500% 02/18/2022 3137EAEX3 500,000.00FHLMC 10/20/2020 497,505.00 91.80 458,975.00 1.90% Aaa/AA+ 3.2409/23/2025 -39,388.40 AAA 3.17 510.42 0.48% 498,363.40 3.06%0.375% 3130AQEC3 500,000.00FHLB 12/30/2021 500,000.00 93.71 468,550.00 1.90% Aaa/AA+ 4.5012/30/2026 -31,450.00 AAA 4.29 19.03 1.37% 500,000.00 2.87%1.370% 09/30/2022 3130ARTT8 600,000.00FHLB 05/19/2022 600,000.00 99.52 597,108.00 2.28% Aaa/AA+ 4.8905/19/2027 -2,892.00 AAA 2.38 2,100.00 3.00% 600,000.00 3.11%3.000% 05/19/2023 3,834,505.00 3,661,476.00 14.55% 2.98
3,822,640.27 1.46% 3,800,000.00 2.90% 14,846.46 -161,164.27 2.51Total U.S. Agencies U.S. Treasuries
912828ZD5 500,000.00U.S. Treasury 12/16/2020 504,140.63 98.45 492,245.00 1.91% Aaa/AA+ 0.7103/15/2023 -9,059.37 AAA 0.69 733.70 0.13% 501,304.37 2.72%0.500% 91282CAW1 1,000,000.00U.S. Treasury 07/22/2021 999,960.94 96.43 964,260.00 3.81% Aaa/AA+ 1.3811/15/2023 -35,716.78 AAA 1.35 319.29 0.25% 999,976.78 2.92%0.250% 91282CBV2 500,000.00U.S. Treasury 11/22/2021 496,308.59 95.54 477,695.00 1.89% Aaa/AA+ 1.7904/15/2024 -19,541.72 AAA 1.76 394.47 0.69% 497,236.72 2.95%0.375% 912828YV6 1,000,000.00U.S. Treasury 07/22/2021 1,035,742.19 96.55 965,510.00 3.91% Aaa/AA+ 2.4211/30/2024 -60,240.69 AAA 2.35 1,270.49 0.43% 1,025,750.69 2.99%1.500% 912828ZT0 500,000.00U.S. Treasury 06/29/2021 491,542.97 92.38 461,895.00 1.88% Aaa/AA+ 2.9205/31/2025 -31,809.47 AAA 2.87 105.87 0.69% 493,704.47 3.00%0.250% 91282CAZ4 1,000,000.00U.S. Treasury 07/22/2021 989,492.19 91.44 914,410.00 3.78% Aaa/AA+ 3.4211/30/2025 -77,346.12 AAA 3.35 317.62 0.62% 991,756.12 3.03%0.375% 91282CBH3 500,000.00U.S. Treasury 02/25/2021 494,433.59 91.04 455,195.00 1.89% Aaa/AA+ 3.5901/31/2026 -40,753.05 AAA 3.51 782.11 0.60% 495,948.05 3.03%0.375% 91282CCF6 1,000,000.00U.S. Treasury 07/22/2021 1,002,382.81 91.61 916,130.00 3.81% Aaa/AA+ 3.9205/31/2026 -85,792.10 AAA 3.81 635.25 0.70% 1,001,922.10 3.04%0.750% Run Date: 7/11/2022 - 11:47 AM
Amortizing
18City Council Regular Meeting - Page 42 of 664
Holdings Report
City of Lynwood June 30, 2022
Call Date
Maturity Date
Par Value
Settle Date
Book Value
Original Value
Mkt YTM
Mkt Price
Gain/Loss
% of Port
Fitch
Moody/S&P
Eff. Dur.

WAM
Accrued Int.

Market Value
CUSIP Coupon Rate
Issuer
Book Yield
Remaining
U.S. Treasuries
91282CCZ2 500,000.00U.S. Treasury 10/19/2021 492,949.22 91.46 457,305.00 1.88% Aaa/AA+ 4.2509/30/2026 -36,635.31 AAA 4.11 1,099.73 1.17% 493,940.31 3.03%0.875% 6,506,953.13 6,104,645.00 24.75% 2.73
6,501,539.61 0.56% 6,500,000.00 2.98% 5,658.53 -396,894.61 2.66Total U.S. Treasuries 26,300,376.03 25,569,355.97 100.00% 1.55
56,809.32 -694,863.64 1.44 2.32% 26,264,219.61 1.20% 26,223,310.39TOTAL PORTFOLIO TOTAL MARKET VALUE PLUS ACCRUED INTEREST 25,626,165.29 Run Date: 7/11/2022 - 11:47 AM
Amortizing
19City Council Regular Meeting - Page 43 of 664
Maturity Report
City of Lynwood June 30, 2022
CUSIP Date
Purchase
Value
Book
Rate
Coupon
Date
Maturity
Par
Remaining
Term Value
Market
YTMIssuer
Days to
Maturity
Book
FGTXX 1.355% 1Goldman Sachs Govt MMF 556,042.84 07/01/2022 1 1.36% 556,042.84 556,042.84 9819499 0.860% 1LAIF 05/18/2020 9,545,267.55 07/01/2022 1 0.86% 9,545,267.55 9,545,267.55 78015DG61 0.000% 192Royal Bank of Canada, NY 12/20/2021 349,980.55 07/06/2022 6 0.33% 350,000.00 349,374.38 1404203Z1 2.300% 1,792Capital One Bank USA 08/03/2017 247,989.46 08/02/2022 33 2.35% 248,000.00 248,127.95 795450D36 2.350% 1,771Sallie Mae Bank 08/24/2017 247,982.76 08/23/2022 54 2.40% 248,000.00 248,228.47 3135G0T78 2.000% 1,673FNMA 11/30/2017 499,858.45 10/05/2022 97 2.11% 500,000.00 499,765.00 61747MF63 2.650% 1,630Morgan Stanley Bank 01/12/2018 247,937.73 01/11/2023 195 2.70% 248,000.00 247,706.03 59013J5Z8 3.350% 1,289Merrick Bank 12/19/2018 247,925.16 02/21/2023 236 3.41% 248,000.00 248,546.31 912828ZD5 0.500% 561U.S. Treasury 12/16/2020 501,304.37 03/15/2023 258 0.13% 500,000.00 492,245.00 20033AZK5 3.300% 1,462Comenity Capital Bank 06/29/2018 247,885.80 06/29/2023 364 3.40% 248,000.00 247,485.79 38148PR33 3.300% 1,452Goldman Sachs Bank 07/09/2018 247,884.42 07/06/2023 371 3.35% 248,000.00 247,204.33 90331HNV1 3.400% 1,217US Bank 03/01/2019 250,802.32 07/24/2023 389 3.08% 250,000.00 249,827.50 949763TF3 3.300% 1,399Wells Fargo Bank NA 08/31/2018 247,866.85 08/30/2023 426 3.35% 248,000.00 247,265.39 29278TLY4 2.000% 1,004EnerBank 09/30/2019 247,851.73 09/27/2023 454 2.05% 248,000.00 243,247.87 91282CAW1 0.250% 343U.S. Treasury 07/22/2021 999,976.78 11/15/2023 503 0.25% 1,000,000.00 964,260.00 89236TFS9 3.350% 1,218Toyota Motor Credit 02/28/2019 251,110.09 01/08/2024 557 3.03% 250,000.00 250,412.50 17312Q3B3 3.000% 1,218Citibank 02/28/2019 247,809.46 02/27/2024 607 3.05% 248,000.00 246,377.21 91282CBV2 0.375% 220U.S. Treasury 11/22/2021 497,236.72 04/15/2024 655 0.69% 500,000.00 477,695.00 46625HJX9 3.625% 1,144JPMorgan Chase & Co 05/13/2019 505,651.33 05/13/2024 683 2.97% 500,000.00 501,190.00 3133EKTV8 1.900% 1,094FFCB 07/02/2019 499,959.92 07/01/2024 732 1.90% 500,000.00 490,860.00 32100LCB9 1.850% 1,021First Missouri State Bank 09/13/2019 248,000.00 09/13/2024 806 1.85% 248,000.00 240,705.73 3133EK3B0 1.500% 987FFCB 10/17/2019 199,251.60 10/16/2024 839 1.67% 200,000.00 193,728.00 912828YV6 1.500% 343U.S. Treasury 07/22/2021 1,025,750.69 11/30/2024 884 0.43% 1,000,000.00 965,510.00 64952WDL4 2.000% 890New York Life 01/22/2020 249,540.28 01/22/2025 937 2.08% 250,000.00 239,325.00 3130A4CH3 2.375% 631FHLB 10/07/2020 525,206.90 03/14/2025 988 0.49% 500,000.00 490,770.00 30231GBH4 2.992% 738Exxon Mobil 06/22/2020 263,049.03 03/19/2025 993 0.99% 250,000.00 246,272.50 912828ZT0 0.250% 366U.S. Treasury 06/29/2021 493,704.47 05/31/2025 1,066 0.69% 500,000.00 461,895.00 3136G4H71 0.500% 681FNMA 08/18/2020 500,000.00 08/12/2025 1,139 0.50% 500,000.00 461,720.00 3137EAEX3 0.375% 618FHLMC 10/20/2020 498,363.40 09/23/2025 1,181 0.48% 500,000.00 458,975.00 05580AXF6 0.500% 643BMW Bank 09/25/2020 248,000.00 09/25/2025 1,183 0.50% 248,000.00 227,988.16 91282CAZ4 0.375% 343U.S. Treasury 07/22/2021 991,756.12 11/30/2025 1,249 0.62% 1,000,000.00 914,410.00 91282CBH3 0.375% 490U.S. Treasury 02/25/2021 495,948.05 01/31/2026 1,311 0.60% 500,000.00 455,195.00 856283S98 1.000% 429State Bank of India 04/27/2021 248,000.00 04/27/2026 1,397 1.00% 248,000.00 229,347.53 91282CCF6 0.750% 343U.S. Treasury 07/22/2021 1,001,922.10 05/31/2026 1,431 0.70% 1,000,000.00 916,130.00 89235MLC3 0.950% 350Toyota Financial Savings Bank 07/15/2021 248,000.00 07/15/2026 1,476 0.95% 248,000.00 228,006.65 90348JR93 0.950% 323UBS Bank USA 08/11/2021 248,000.00 08/11/2026 1,503 0.95% 248,000.00 227,552.77 Run Date: 7/11/2022 - 11:48 AM
Amortizing
20City Council Regular Meeting - Page 44 of 664
Maturity Report
City of Lynwood June 30, 2022
CUSIP Date
Purchase
Value
Book
Rate
Coupon
Date
Maturity
Par
Remaining
Term Value
Market
YTMIssuer
Days to
Maturity
Book
91282CCZ2 0.875% 254U.S. Treasury 10/19/2021 493,940.31 09/30/2026 1,553 1.17% 500,000.00 457,305.00 3130AQEC3 1.370% 182FHLB 12/30/2021 500,000.00 12/30/2026 1,644 1.37% 500,000.00 468,550.00 808513BW4 3.300% 79Charles Schwab 04/12/2022 249,433.33 04/01/2027 1,736 3.35% 250,000.00 243,030.00 023135CF1 3.300% 21Amazon 06/09/2022 248,029.02 04/13/2027 1,748 3.48% 250,000.00 244,702.50 3130ARTT8 3.000% 42FHLB 05/19/2022 600,000.00 05/19/2027 1,784 3.00% 600,000.00 597,108.00 Net Maturities and Averages 26,264,219.61 565 1.20% 25,569,355.97 26,223,310.39 Run Date: 7/11/2022 - 11:48 AM
Amortizing
21City Council Regular Meeting - Page 45 of 664
Income Earned
City of Lynwood June 01, 2022 - June 30, 2022
CUSIP Value
Ending Par
Date
Maturity
Book Value
Beginning
Value
Ending Book
Accrued
Beginning
/Purchased
Int.Received
Accrued
Ending
Issuer Earned
Interest Amortization/
Accretion Earned
Net Income
Certificates of Deposit
33847E2J5 06/13/2022 0.00Flagstar Bank 248,000.00 0.00 2,904.66 3,108.49 0.00 203.83 0.00 203.83 1404203Z1 08/02/2022 248,000.00Capital One Bank USA 247,979.88 247,989.46 1,859.66 0.00 2,328.48 468.82 9.58 478.40 795450D36 08/23/2022 248,000.00Sallie Mae Bank 247,973.18 247,982.76 1,564.78 0.00 2,043.79 479.01 9.58 488.59 61747MF63 01/11/2023 248,000.00Morgan Stanley Bank 247,928.15 247,937.73 2,538.77 0.00 3,078.94 540.17 9.58 549.75 59013J5Z8 02/21/2023 248,000.00Merrick Bank 247,915.65 247,925.16 318.66 705.61 295.90 682.85 9.51 692.36 20033AZK5 06/29/2023 248,000.00Comenity Capital Bank 247,876.39 247,885.80 67.27 695.08 44.84 672.65 9.41 682.06 38148PR33 07/06/2023 248,000.00Goldman Sachs Bank 247,875.08 247,884.42 3,273.60 0.00 3,946.26 672.66 9.35 682.01 949763TF3 08/30/2023 248,000.00Wells Fargo Bank NA 247,857.48 247,866.85 44.84 695.08 22.42 672.66 9.38 682.04 29278TLY4 09/27/2023 248,000.00EnerBank 247,841.93 247,851.73 67.95 421.26 54.36 407.67 9.80 417.47 17312Q3B3 02/27/2024 248,000.00Citibank 247,800.04 247,809.46 1,916.05 0.00 2,527.56 611.51 9.42 620.93 32100LCB9 09/13/2024 248,000.00First Missouri State Bank 248,000.00 248,000.00 1,005.59 0.00 1,382.68 377.09 0.00 377.09 05580AXF6 09/25/2025 248,000.00BMW Bank 248,000.00 248,000.00 231.01 0.00 332.93 101.92 0.00 101.92 856283S98 04/27/2026 248,000.00State Bank of India 248,000.00 248,000.00 237.81 0.00 441.64 203.83 0.00 203.83 89235MLC3 07/15/2026 248,000.00Toyota Financial Savings Bank 248,000.00 248,000.00 884.31 0.00 1,077.95 193.64 0.00 193.64 90348JR93 08/11/2026 248,000.00UBS Bank USA 248,000.00 248,000.00 135.55 200.10 129.10 193.65 0.00 193.65 Certificates of Deposit - Sub Total 3,472,000.00 3,719,047.77 3,471,133.37 17,050.51 5,825.62 17,706.85 6,481.96 85.60 6,567.56 Commercial Paper
78015DG61 07/06/2022 350,000.00Royal Bank of Canada, NY 349,886.56 349,980.55 0.00 0.00 0.00 0.00 93.99 93.99 Commercial Paper - Sub Total
350,000.00 349,886.56 349,980.55 0.00 0.00 0.00 0.00 93.99 93.99 Corporate Bonds
46849LSW2 06/27/2022 0.00Jackson National Life 249,967.88 0.00 2,673.61 3,125.00 0.00 451.39 32.12 483.51 90331HNV1 07/24/2023 250,000.00US Bank 250,862.92 250,802.32 2,998.61 0.00 3,706.94 708.33 -60.59 647.74 89236TFS9 01/08/2024 250,000.00Toyota Motor Credit 251,170.86 251,110.09 3,326.74 0.00 4,024.65 697.91 -60.77 637.14 46625HJX9 05/13/2024 500,000.00JPMorgan Chase & Co 505,894.85 505,651.33 906.25 0.00 2,416.67 1,510.42 -243.52 1,266.90 64952WDL4 01/22/2025 250,000.00New York Life 249,525.82 249,540.28 1,791.67 0.00 2,208.33 416.66 14.46 431.12 30231GBH4 03/19/2025 250,000.00Exxon Mobil 263,435.57 263,049.03 1,496.00 0.00 2,119.33 623.33 -386.54 236.79 808513BW4 04/01/2027 250,000.00Charles Schwab 249,423.73 249,433.33 1,375.00 0.00 2,062.50 687.50 9.60 697.10 023135CF1 04/13/2027 250,000.00Amazon 0.00 248,029.02 0.00 -1,283.33 1,787.50 504.17 24.02 528.19 Corporate Bonds - Sub Total
2,000,000.00 2,020,281.63 2,017,615.41 14,567.88 1,841.67 18,325.92 5,599.71 -671.22 4,928.49 LAIF
9819499 07/01/2022 9,545,267.55LAIF 9,545,267.55 9,545,267.55 0.00 0.00 0.00 0.00 0.00 0.00 Run Date: 7/11/2022 - 11:48 AM
Amortizing
24City Council Regular Meeting - Page 46 of 664
Income Earned
City of Lynwood June 01, 2022 - June 30, 2022
CUSIP Value
Ending Par
Date
Maturity
Book Value
Beginning
Value
Ending Book
Accrued
Beginning
/Purchased
Int.Received
Accrued
Ending
Issuer Earned
Interest Amortization/
Accretion Earned
Net Income
LAIF - Sub Total 9,545,267.55 9,545,267.55 9,545,267.55 0.00 0.00 0.00 0.00 0.00 0.00 Money Market Funds
FGTXX 07/01/2022 556,042.84Goldman Sachs Govt MMF 294,665.76 556,042.84 289.79 289.79 271.56 271.56 0.00 271.56 Money Market Funds - Sub Total 556,042.84 294,665.76 556,042.84 289.79 289.79 271.56 271.56 0.00 271.56 U.S. Agencies
3135G0T78 10/05/2022 500,000.00FNMA 499,813.75 499,858.45 1,555.56 0.00 2,388.89 833.33 44.70 878.03 3133EKTV8 07/01/2024 500,000.00FFCB 499,958.31 499,959.92 3,958.33 0.00 4,750.00 791.67 1.61 793.28 3133EK3B0 10/16/2024 200,000.00FFCB 199,225.32 199,251.60 375.00 0.00 625.00 250.00 26.28 276.28 3130A4CH3 03/14/2025 500,000.00FHLB 525,957.41 525,206.90 2,539.93 0.00 3,529.51 989.58 -750.51 239.07 3136G4H71 08/12/2025 500,000.00FNMA 500,000.00 500,000.00 715.28 0.00 923.61 208.33 0.00 208.33 3137EAEX3 09/23/2025 500,000.00FHLMC 498,322.59 498,363.40 354.17 0.00 510.42 156.25 40.81 197.06 3130AQEC3 12/30/2026 500,000.00FHLB 500,000.00 500,000.00 2,873.19 3,425.00 19.03 570.84 0.00 570.84 3130ARTT8 05/19/2027 600,000.00FHLB 600,000.00 600,000.00 600.00 0.00 2,100.00 1,500.00 0.00 1,500.00 U.S. Agencies - Sub Total
3,800,000.00 3,823,277.39 3,822,640.27 12,971.46 3,425.00 14,846.46 5,300.00 -637.12 4,662.88 U.S. Treasuries
912828ZD5 03/15/2023 500,000.00U.S. Treasury 501,456.05 501,304.37 529.89 0.00 733.70 203.81 -151.67 52.14 91282CAW1 11/15/2023 1,000,000.00U.S. Treasury 999,975.39 999,976.78 115.49 0.00 319.29 203.80 1.39 205.19 91282CBV2 04/15/2024 500,000.00U.S. Treasury 497,110.15 497,236.72 240.78 0.00 394.47 153.69 126.56 280.25 912828YV6 11/30/2024 1,000,000.00U.S. Treasury 1,026,624.58 1,025,750.69 40.98 0.00 1,270.49 1,229.51 -873.89 355.62 912828ZT0 05/31/2025 500,000.00U.S. Treasury 493,527.30 493,704.47 3.42 0.00 105.87 102.45 177.17 279.62 91282CAZ4 11/30/2025 1,000,000.00U.S. Treasury 991,558.11 991,756.12 10.25 0.00 317.62 307.37 198.01 505.38 91282CBH3 01/31/2026 500,000.00U.S. Treasury 495,855.33 495,948.05 626.73 0.00 782.11 155.38 92.72 248.10 91282CCF6 05/31/2026 1,000,000.00U.S. Treasury 1,001,962.39 1,001,922.10 20.49 0.00 635.25 614.76 -40.30 574.46 91282CCZ2 09/30/2026 500,000.00U.S. Treasury 493,823.25 493,940.31 741.12 0.00 1,099.73 358.61 117.06 475.67 U.S. Treasuries - Sub Total
6,500,000.00 6,501,892.55 6,501,539.61 2,329.15 0.00 5,658.53 3,329.38 -352.95 2,976.43 26,223,310.39Grand Total 26,254,319.22 26,264,219.61 47,208.79 11,382.08 56,809.32 20,982.61 -1,481.69 19,500.92 Run Date: 7/11/2022 - 11:48 AM
Amortizing
25City Council Regular Meeting - Page 47 of 664
Realized Gains and Losses
City of Lynwood June 01, 2022 - June 30, 2022
Par Value Sale Date Days Held Maturity/Sales RealizedCUSIP Coupon Rate Maturity Date Book Value Proceeds Gain/LossPurchase Date TermIssuer Certificates of Deposit
33847E2J5 248,000.0006/12/2019 06/13/2022 1,097 248,000.00 0.00 248,000.00 06/13/2022 1,097Flagstar Bank 2.500%
Total Certificates of Deposit 0.00 248,000.00 248,000.00 Corporate Bonds
46849LSW2 250,000.0007/12/2017 06/27/2022 1,811 250,000.00 0.00 250,000.00 06/27/2022 1,811Jackson National Life 2.500%
Total Corporate Bonds 0.00 250,000.00 250,000.00
Grand Total 0.00 498,000.00 498,000.00
Run Date: 7/11/2022 - 11:48 AM
Amortizing
26City Council Regular Meeting - Page 48 of 664
Transaction Report
City of Lynwood June 01, 2022 - June 30, 2022
Transaction Transaction Security Security Maturity
Date Type ID Description Date Purchases Redemptions Interest Deposits Withdrawals 06/02/2022 Interest FGTXX GSGF - - 289.79 - -
06/09/2022 Purchase 023135CF1 AMZN 3.3 04/13/27 04/13/2027 -248,005.00 - -1,283.33 - - 06/13/2022 Interest 90348JR93 UBS 0.95 08/11/26 08/11/2026 - - 200.10 - - 06/13/2022 Maturity 33847E2J5 FBC 2 1/2 06/13/22 06/13/2022 - 248,000.00 - - - 06/13/2022 Interest 33847E2J5 FBC 2 1/2 06/13/22 06/13/2022 - - 3,091.51 - - 06/13/2022 Interest 33847E2J5 FBC 2 1/2 06/13/22 06/13/2022 - - 16.98 - - 06/20/2022 Interest 59013J5Z8 MERICK 3.35 02/21/23 02/21/2023 - - 705.61 - - 06/27/2022 Interest 29278TLY4 CMS 2 09/27/23 09/27/2023 - - 421.26 - - 06/27/2022 Interest 46849LSW2 JACLIF 2 1/2 06/27/22 06/27/2022 - - 3,125.00 - - 06/27/2022 Maturity 46849LSW2 JACLIF 2 1/2 06/27/22 06/27/2022 - 250,000.00 - - - 06/29/2022 Interest 20033AZK5 ADS 3.3 06/29/23 06/29/2023 - - 695.08 - - 06/30/2022 Interest 949763TF3 WFC 3.3 08/30/23 08/30/2023 - - 695.08 - - 06/30/2022 Interest 3130AQEC3 FHLB 1.37 12/30/26 12/30/2026 - - 3,425.00 - - Grand Total: -248,005.00 498,000.00 11,382.08 0.00 0.00 Run Date: 7/11/2022 - 11:48 AM
Amortizing
27City Council Regular Meeting - Page 49 of 664
Source – CNBC/JP Morgan
ECONOMY REPORT – JUNE 2022
Higher inflation, which has generated more restrictive central bank policy and tightening financial conditions, poses a challenge to this outlook . However, as the inflation surge looks likely to persist, policy guidance is starting to shift. The Federal Open Market Committee (FOMC) meeting in June suggested the Fed is now committed to push policy rates well into restrictive territory this year, whil e also guiding to a meaningful rise in the unemployment rate. This shift is likely to resonate elsewhere and is a significant factor tightening global financial markets.

Downward momentum looks to be concentrated in the U.S. economy, which will likely feel the brunt of the drag from higher interest rates and is benefiting less from fading COVID drags.

By contrast, the fading of the Omicron drag is expected to generate a period of Asian outperformance. In Europe, where the recovery is further behind the U.S. , growth is also set to get a boost from somewhat easier monetary and fiscal policies.

Equity sentiment, investor positioning and market internals have been bearish, resulting in the worst annual start for equities in around 100 years, with the exception of the Great Depression. Portfolios are defensively positioned for a recessionary outcome and corporate fundamentals should exhibit relative resilience for the rest of the year, despite some softness in corporate guidance.

Commodities are on pace to deliv er a third consecutive year of significant positive returns, up 30% year-to-date. Despite this strong performance, the case for commodities going forward remains strong, as conditions of acute scarcity continue to persist across commodities. Summertime is the traditional peak of demand season, but current inventories are 19% below historical norms and lack of an inventory buffer is leaving the market vulnerable to unplanned supply outages.

Inflation has been strong throughout the year so far and the Federal Reserve (Fed) is now working to rein it in. Through much of 2021, the FOMC believed strong inflation was transitory and kept policy City Council Regular Meeting - Page 50 of 664
Source – CNBC/JP Morgan
very accommodative. But the Committee started changing i ts tone late last year and since then has been more active in trying to bring inflation down. A hiking cycle began in March and then the start of the drawdown of the balance sheet at the beginning of June. The FOMC has now hiked its target range 150 basis points (bp) over the course of just three meetings through June, including most recently a 75 bp hike. The FOMC has signaled that it will continue to hike over time, raising rates another 175 bp by the end of this year and then another 25 -50 bp next year. A 50 or 75 bp hike is expected in July and September, followed by a 25 bp cadence until that range is reached.

The move in long-term yields has even exceeded the 1994 experience The hawkish shift from the Fed since late last year has contributed to a signi ficant tightening in financial conditions, including dollar appreciation, a jump in mortgage rates and a drop in equity prices.

The hawkish shift from the Fed since late last year has contributed to a significant tightening in financial conditions, incl uding dollar appreciation, a jump in mortgage rates and a drop in equity prices.

In the second half of 2022, the developed market (DM) rates market, excluding the U.S., will likely face a tug of war between central banks that are starting the summer with a clear strong bias to deliver more aggressive policy rate normalization and a growth outlook that will start to feel the pressure of the global tightening. Inflation pressures are likely to ease towards the end of the year and lower yields are expected in 2H22 than current levels seen in Germany, the Antipodean and modestly in U.K., as the market will start to challenge the longevity of the hiking cycle in mid to late 2023 The Fed announced a 75 basis point hike to interest rates ; it is the largest since 19 94. Chairman Jerome Powell also signaled the Federal Open Market Committee’s intent to continue its aggressive path of monetary policy tightening in order to rein in inflation, after the U.S. consumer price index jumped by an annual 8.6% in May, the hottest inflation print since 1981.

City Council Regular Meeting - Page 51 of 664
Source – CNBC/JP Morgan
However, the closely watched Fed GDP tracker is indicating that a recession is on the horizon, and analysts expect the Fed’s sharp hiking cycle to further depress already slowing economic growth.

It is hard to overstate how pr ofitable the war in Ukraine and the resulting financial pain have been for oil executives. Companies already benefited from inflated gas prices in 2021 as the economy bounced back from the COVID-19 pandemic shutdowns —in fact, the top 25 companies made more than $205 billion in profits in 2021—but the recently announced first-quarter profits for 2022 are even more astounding.

The top five oil companies alone —Shell, ExxonMobil, BP, Chevron, and ConocoPhillips —brought in more than 200 percent more in profits than in the first quarter of 2021. That is a total of more than $35 billion in profits in just three months. In fact, these five companies’ first-quarter profits alone are equivalent to almost 28 percent of what Americans spent to fill up their gas tanks in the same time period.

Commission (FTC) to investigate price gouging, adopting a “use -it-or-lose-it” policy for drilling on public lands, and implementing a windfall profits tax—to help tackle high prices while reducing the United States’ reliance on volatile fossil energy markets and addressing ever-worsening climate change.

Oil executives should not be able to profit off everyone else’s financial pain as their companies earn record profits. Congress must provide some relief to consumers—and hold oil companies accountable.

Oil and gas corporations —and the trade groups they fund to lobby on their behalf —would have people believe that they need access to more places to drill, better market signals, and fewer regulations in order to make the investments needed to help lower prices. But the truth is that they are flush with the cash that could be used to make those very investments —a fact they are not even trying to hide. For example, the CEO of Shell is on record admitting to profiteering off Russia’s war in Ukraine.

Instead of using this cash to make the investments needed to help lower the price of oil or to fulfill their climate pledges, companies are giving most of it back to their already extremely wealthy shareholders in the form of stock buybacks or givin g it back to themselves in the form of executive bonuses. Last year, 28 of the top oil and gas CEOs raked in $394 million in compensation —a nearly $45 million increase since 2020.

Top 5 oil companies 1st quarter profit in 2022
Shell $9.1 billion
 Shell’s profits were 180 percent higher than in the first quarter of 2021.  Shell made $19.3 billion in total profits in 2021.
 Shell bought back$8.5 billion in stocks for wealthy shareholders.  Shell cut 5,000 jobs from its workforce in 2021.
 Shell’s CEO has not been shy about admitting that Russia’s war on Ukraine helped the company’s profits, saying on a recent shareholder call that “well, you know, can I also say that the performance we are seeing this quarter, of course, has been helped by the macro, and the macro has been impacted by the war in Ukraine.”

Exxon Mobile $8.8 billion

City Council Regular Meeting - Page 52 of 664
Source – CNBC/JP Morgan
 ExxonMobil’s profits were 220 percent higher than in the first quarter of 2021.  ExxonMobil made $23 billion in total profits in 2021.  ExxonMobil pledged to buy back $30 billion in stocks for wealthy shareholders through 2023.  ExxonMobil cut 9,000 jobs from its workforce in 2021 to “cut costs.”  Despite being one of the most profitable corporations in the United States, ExxonMobil paid an effective federal income tax rate of just more than 2 percent in 2021, and that is not for a lack of funds. ExxonMobil’s Chief Financial Officer Kathy Mikells underscored just how much the company expected to profit in the first quarter of 2022 and how that would benefit shareholders, saying in early March that “we expect to generate over $100 billion in excess cash flow beyond meeting our capital program and current dividend, and so I would say we have a very robust forward plan and we expect to have sustained excess cash flow and increasing shareholder distributions.”

Chevron $6.5 billion

 Chevron’s profits were 280 percent higher than in the first quarter of 2021.  Chevron made $15.6 billion in total profits in 2021.
 Chevron plans to buy back $10 billion in stocks for wealthy shareholders by the end of 2022.  Chevron cut its workforce by 5,000 jobs in 2021.
 Despite being one of the most profitable corporations in the United States, Chevron paid an effective federal income tax rate of less than 2 percent in 2021. Moreover, Chevron’s CEO has been upfront about the profits they are raking in saving amidst rising gas prices in January that “the last two quarters have been the best two quarters the company has ever seen.”

BP $6.2 billion

 BP’s profits were 140 percent higher than in the first quarter of 2021.  BP made $12.8 billion in total profits in 2021.
 BP expanded its stock buyback plan to $2.5 billion for wealthy shareholders in 2022.  BP cut its workforce by 2,000 jobs in 2021.
 BP executives attributed their record profits to “exceptional oil and gas trading” conditions — conditions that included Russia’s invasion of Ukraine and Americans suffering record -high gas prices.

ConocoPhillips $4.3

 ConocoPhillips’ profits were 380 percent higher than in the first quarter of 2021.  ConocoPhillips made $8 billion in total profits in 2021.  ConocoPhillips plans to buy back $10 billion in stocks for wealthy shareholders in 2022.  ConocoPhillips’ workforce numbers stayed essentially flat in 2021.  ConocoPhillips’ has tripled its lobbying expenditures to lock in oil and gas development for decades to come at its proposed Willow project in the Western Arctic. The proposed project threatens to erase the climate benefits of renewables on public lands and waters and would require the installation of artificial “chillers” to refreeze the Arctic’s melting permafrost in order to build the infrastructure needed to drill for oil. The company has also been under fire for a recent gas leak that “led to the temporary removal of 300 personnel and alarmed residents in the nearby village of Nuiqsut.”
City Council Regular Meeting - Page 53 of 664
Agenda Item # 10.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

George Cambero, Interim Utility Services Manager

SUBJECT:

APPROVAL

OF PAYMENT FOR SERVICES RENDERED TO OPERATIONAL
TECHNICAL SERVICES, INC. (OTS) WHICH PROVIDE TEMPORARY STAFF

AUGMENTATION FOR THE UTILITY DEPARTMENT FOR A NOT-TO-EXCEED AMOUNT OF $16,875
Recommendation:

Staff recommends that the City Council adopt the following resolution entitled: “A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING

PAYMENT FOR SERVICES RENDERED
TO OPERATIONAL TECHNICAL SERVICES, INC. (OTS) FOR PROVIDING TEMPORARY STAFF AUGMENTATION TO WATER DIVISION FOR A NOT-TO-EXCEED AMOUNT OF $16,875 .”

Background:

The City of Lynwood, California (City) is responsible for operation, maintenance and repair of the City’s water system and a sanitary sewer system. The City operates and maintains groundwater wells, the distribution system and supply source connection to MWD. The City has five active groundwater wells located throughout the City for groundwater production (Well Nos. 5,8,9,11 and 19). The City distributes its water to approximately 9,600 service customers through a 90 mile network of distribution water mains.

The City’s mission is to continue providing reliable, safe drinking water for the customers now and into

the

future,
at

reasonable

rates.

To meet the operational demands, the Utility Department was recently comprised of nine certified shift operators to meet all regulatory staffing requirements. Currently, there are six employees in the field. One has left for a new employment opportunity, one is on leave indefinitely, and one is on light duty an unable to serve in the field.

Additionally with sick leave, vacation days, etc. of minimum staff, this has left the department extremely understaffed for the work necessary to meet operations & maintenance responsibilities of the utility’s assets.

Discussion and Analysis:

An initial professional services agreement was fully executed by the City Manager for OTS to provide staffing for City Council Regular Meeting - Page 54 of 664
one staff member to help alleviate the necessary compliance tasks for a not-to-exceed amount of $24,000. The initial agreement covered work from November 22, 2021 to January 14, 2022, which was approximately eight (8) weeks of service.

Under the City Manager’s purchasing authority, OTS was paid $22,350.

The former Public Works Director approved to continue services to meet work demand and avoid disruption to services. OTS performed services for an additional six weeks, from January 24, 2022 to March 3, 2022. These additional services, estimated at $16,875, exceeded the City Manager’s purchasing authority. (Attachment A)

Staff recommends that the City Council approve the payment of outstanding invoices for services rendered for a not-to-exceed final payment of $16,875.

Fiscal Impact:

No additional appropriation is needed. There is sufficient funds under the FY22 Water Utility Division budget to pay for the $16,875 expenditure.

Coordinated With:

City Attorney
Finance Department
ATTACHMENTS:

Description
Attachment A
Resolution
City Council Regular Meeting - Page 55 of 664
Invoice
DATE INVOICE #
01/30/2022 2150

TERMS DUE DATE
Net 30 03/01/2022
AMOUNT DUE PO Number
$3,000.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Suite 100
Los Angeles, CA 90067
Please detach top portion and return with your payment..................................................................................................................................................................................................................................................................................

Date Ending Description Quantity Rate Amount
01/24/2022 Enriquez, Joel 8 $75.00 $600.00
01/24/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 01/25/2022 Enriquez, Joel 8 $75.00 $600.00
01/25/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 01/26/2022 Enriquez, Joel 8 $75.00 $600.00
01/26/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 01/27/2022 Enriquez, Joel 8 $75.00 $600.00
01/27/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 Subtotal $3,000.00
TOTAL $3,000.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 56 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 01/24/2022 - 01/30/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 01/24 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Tue 01/25 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Wed 01/26 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 01/27 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 01/28 0.00 0.00
Sat 01/29 0.00 0.00
Sun 01/30 0.00 0.00
Hours Summary
Regular 32.00
Overtime 8.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
You agree that you have entered the correct hours worked, and that all hours and expenses are accurate to the best of your knowledge.

Candidate Signature: Electronically Submitted by Enriquez, Joel on (01/29/2022 6:09 pm) at 47.145.196.203, 172.232.11.62 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (02/03/2022 12:36 pm) at 64.166.122.240, 184.50.26.191 City Council Regular Meeting - Page 57 of 664
Invoice
DATE INVOICE #
02/06/2022 2162

TERMS DUE DATE
Net 30 03/08/2022
AMOUNT DUE PO Number
$3,000.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Date Ending Description Quantity Rate Amount
01/31/2022 Enriquez, Joel 8 $75.00 $600.00
01/31/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/01/2022 Enriquez, Joel 8 $75.00 $600.00
02/01/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/02/2022 Enriquez, Joel 8 $75.00 $600.00
02/02/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/03/2022 Enriquez, Joel 8 $75.00 $600.00
02/03/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 Subtotal $3,000.00
TOTAL $3,000.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 58 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 01/31/2022 - 02/06/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 01/31 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Tue 02/01 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Wed 02/02 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 02/03 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 02/04 0.00 0.00
Sat 02/05 0.00 0.00
Sun 02/06 0.00 0.00
Hours Summary
Regular 32.00
Overtime 8.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
You agree that you have entered the correct hours worked, and that all hours and expenses are accurate to the best of your knowledge.

Candidate Signature: Electronically Submitted by Enriquez, Joel on (02/05/2022 4:39 pm) at 47.145.196.203, 104.112.235.140 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (02/08/2022 2:11 pm) at 47.156.24.236, 23.15.240.63 City Council Regular Meeting - Page 59 of 664
Invoice
DATE INVOICE #
02/13/2022 2181

TERMS DUE DATE
Net 30 03/15/2022
AMOUNT DUE PO Number
$3,000.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Date Ending Description Quantity Rate Amount
02/07/2022 Enriquez, Joel 8 $75.00 $600.00
02/07/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/08/2022 Enriquez, Joel 8 $75.00 $600.00
02/08/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/09/2022 Enriquez, Joel 8 $75.00 $600.00
02/09/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 02/10/2022 Enriquez, Joel 8 $75.00 $600.00
02/10/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $75.00 $150.00 Subtotal $3,000.00
TOTAL $3,000.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 60 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 02/07/2022 - 02/13/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 02/07 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Tue 02/08 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Wed 02/09 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 02/10 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 02/11 0.00 0.00
Sat 02/12 0.00 0.00
Sun 02/13 0.00 0.00
Hours Summary
Regular 32.00
Overtime 8.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
You agree that you have entered the correct hours worked, and that all hours and expenses are accurate to the best of your knowledge.

Candidate Signature: Electronically Submitted by Enriquez, Joel on (02/12/2022 6:14 pm) at 47.145.196.203, 172.232.11.94 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (02/14/2022 12:54 pm) at 64.166.122.240, 23.63.251.215 City Council Regular Meeting - Page 61 of 664
Invoice
DATE INVOICE #
03/06/2022 2254

TERMS DUE DATE
Net 30 04/05/2022
AMOUNT DUE PO Number
$3,198.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Date Ending Description Quantity Rate Amount
02/28/2022 Enriquez, Joel 8 $75.00 $600.00
02/28/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 03/01/2022 Enriquez, Joel 8 $75.00 $600.00
03/01/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 03/02/2022 Enriquez, Joel 8 $75.00 $600.00
03/02/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 03/03/2022 Enriquez, Joel 8 $75.00 $600.00
03/03/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 Subtotal $3,198.00
TOTAL $3,198.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 62 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 02/28/2022 - 03/06/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 02/28 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Tue 03/01 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Wed 03/02 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 03/03 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 03/04 0.00 0.00
Sat 03/05 0.00 0.00
Sun 03/06 0.00 0.00
Hours Summary
Regular 32.00
Overtime 8.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
You agree that you have entered the correct hours worked, and that all hours and expenses are accurate to the best of your knowledge.

Candidate Signature: Electronically Submitted by Enriquez, Joel on (03/05/2022 5:21 pm) at 47.145.196.203, 23.60.173.68 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (03/09/2022 5:57 pm) at 64.166.122.240, 23.63.251.215 City Council Regular Meeting - Page 63 of 664
Invoice
DATE INVOICE #
02/20/2022 2257

TERMS DUE DATE
Net 30 03/22/2022
AMOUNT DUE PO Number
$3,198.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Date Ending Description Quantity Rate Amount
02/14/2022 Enriquez, Joel 8 $75.00 $600.00
02/14/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 02/15/2022 Enriquez, Joel 8 $75.00 $600.00
02/15/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 02/16/2022 Enriquez, Joel 8 $75.00 $600.00
02/16/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 02/17/2022 Enriquez, Joel 8 $75.00 $600.00
02/17/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 Subtotal $3,198.00
TOTAL $3,198.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 64 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 02/14/2022 - 02/20/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 02/14 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Tue 02/15 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Wed 02/16 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 02/17 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 02/18 0.00 0.00
Sat 02/19 0.00 0.00
Sun 02/20 0.00 0.00
Hours Summary
Regular 32.00
Overtime 8.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
You agree that you have entered the correct hours worked, and that all hours and expenses are accurate to the best of your knowledge.

Candidate Signature: Electronically Submitted by Enriquez, Joel on (02/20/2022 10:05 am) at 174.246.197.120, 23.218.93.222 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (03/09/2022 5:57 pm) at 64.166.122.240, 23.63.251.215 City Council Regular Meeting - Page 65 of 664
Invoice
DATE INVOICE #
02/27/2022 2261

TERMS DUE DATE
Net 30 03/29/2022
AMOUNT DUE PO Number
$1,974.00

BILL TO
George Cambero
City of Lynwood
11750 S Alameda
Lynwood, California 90262

MAKE PAYABLE TO
Operational Technical Services
10250 Constellation Blvd.

Date Ending Description Quantity Rate Amount
02/22/2022 Enriquez, Joel 5 $75.00 $375.00
02/23/2022 Enriquez, Joel 8 $75.00 $600.00
02/23/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 02/24/2022 Enriquez, Joel 8 $75.00 $600.00
02/24/2022 Enriquez, Joel - Water Distribution Utility Worker (OT) 2 $99.75 $199.50 Subtotal $1,974.00
TOTAL $1,974.00Thank you for your business!

Page 1 of 1 ends

City Council Regular Meeting - Page 66 of 664
Candidate: Enriquez, Joel (Water Distribution Utility Worker) Company: City of Lynwood (Cambero, George)
Period: 02/21/2022 - 02/27/2022
Date
Daily
Hours
Total
Hours Type Notes
Mon 02/21 0.00 0.00
Tue 02/22 5.00 5.00 Normal
Wed 02/23 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Thu 02/24 10.00

5.00 Normal

0.50 1st Lunch

5.00 Normal
Fri 02/25 0.00 0.00
Sat 02/26 0.00 0.00
Sun 02/27 0.00 0.00
Hours Summary
Regular 21.00
Overtime 4.00
Doubletime 0.00
Expense Summary
Amount $0.00
Notes
Candidate Signature: Electronically Submitted by Operational Technical Services on (03/02/2022 12:33 pm) at 206.72.67.14, 23.60.173.55 By clicking OK, you agree that all hours reported are accurate, as well as any expenses associated with these timesheets.

Approval Signature: Electronically Approved by Cambero, George on (03/09/2022 5:57 pm) at 64.166.122.240, 23.63.251.215 City Council Regular Meeting - Page 67 of 664
1 RESOLUTION NO.__________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING

PAYMENT FOR SERVICES RENDERED TO OPERATIONAL TECHNICAL SERVICES, INC. (OTS) FOR PROVIDING TEMPORARY STAFF AUGMENTATION TO WATER DIVISION FOR A NOT-TO-EXCEED AMOUNT OF $16,875

WHEREAS, the City is responsible for operation, maintenance and repair of the City’s water system and a sanitary sewer system; and

WHEREAS, staff augmentation was needed for the Water Division to keep pace with the work demand; and

WHEREAS, Operational Technical Services Inc. (OTS) was engaged to provide field staffing support; and

WHEREAS, the City Manager was able to execute a service agreement not to exceed $25,000; and

WHEREAS, an additional six (6) weeks of services was provided as approved by the former Director of Public Works; and

WHEREAS, these services exceeded the City Manager’s purchasing authority ; and

WHEREAS, OTS rendered services necessary to keep pace with the work demand given the limited staffing in Water Division.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.

Section 2. That The City Council approve the payment to OTS in the amount not to exceed $16,875 for the services rendered to augment field staffing at Water Division.

Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 4. This Resolution shall take effect immediately upon its adoption.

City Council Regular Meeting - Page 68 of 664
2 PASSED, APPROVED and ADOPTED this 19th day July 2022.

________________________________
Jorge Casanova, Mayor

ATTEST:

__________________________ _________________________________ María Quiñónez Ernie Hernandez
City Clerk City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

__________________________ _________________________________ Noel Tapia Mir T. Fattahi
City Attorney Acting City Engineer

City Council Regular Meeting - Page 69 of 664
3 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City o f Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:

AYES:

NOES:

ABSENT:

_________________________________
City Clerk, City of Lynwood

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. __________ on file in my office and that said resolution was adopted on the date and by the vote therein stated.

Dated this __________ day of ________________, _____.

_________________________________
City Clerk, City of Lynwood

City Council Regular Meeting - Page 70 of 664
Agenda Item # 11.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Mir T. Fattahi, Acting City Engineer

Lorry Hempe, Public Works Special Projects Manager

SUBJECT:

CONTINUATION OF AN EMERGENCY ACTION PER PUBLIC CONTRACT CODE SECTION 22050 FOR THE EMERGENCY ACTION AT THE NATATORIUM Recommendation:

Staff recommends for the City Council to adopt the attached resolution entitled:
“A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LYNWOOD FINDING THAT THERE IS A NEED TO CONTINUE THE

EMERGENCY ACTION, BY WAY OF A FOUR-FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RESPECT TO THE EMERGENCY RENOVATIONS AND EMERGENCY REPAIRS AT THE NATATORIUM.”

Background:

The
City Council delegated to the City Manager the authority to order any action specified under California Public Contract Code Section 22050(a)(1) and pursuant to Section 22050(b). This delegation gave the City Manager the authority, in case of an emergency, to take any directly related and immediate action required by that emergency, and procure the necessary equipment, services and supplies for those purposes, without giving notice for bids to let contracts.

On April 5, 2022, the City Council found that an emergency existed at the Natatorium necessitating immediate actions.

Discussion and Analysis:

Findings of Emergency Actions

On April 5, 2022, the City Council found that
there is substantial evidence in the record demonstrating that the patio wall shows major signs of compromised structural deficiencies, the pool deck shows evidence of detaching and cracking throughout the surface of the pool deck, the electrical system requires replacement to prevent City Council Regular Meeting - Page 71 of 664
electrical shorts and possible fire, and the pool wall requires replacement to avoid collapse has created an created an emergency requiring immediate action to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts.

The conditions necessitating the emergency actions continue to exist. The emergency renovations and repairs have not been completed.

Four-fifths Vote Requirement to Continue the Action

Pursuant to Public Contract Code Section 22050(c)(1) at every regularly scheduled meeting after the initial review of the emergency action, a four-fifths vote of the City Council is needed to continue the action until the emergency action is terminated.

Fiscal Impact:

No additional appropriation is needed.

Coordinated With:

City Attorney
Finance & Administration
ATTACHMENTS:

Description
Resolution
City Council Regular Meeting - Page 72 of 664
1 RESOLUTION._____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD FINDING

THAT THERE IS A NEED TO CONTINUE THE EMERGENCY ACTION BY WAY OF A

FOUR-FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO THE PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RES PECT TO THE EMERGENCY

RENOVATIONS AND EMERGENCY REPAIRS AT THE NATATORIUM

WHEREAS, on March 1, 2022, the City Council by minute action approved the recommended repairs at the Natatorium, the City’s pool and the budget of $5,000,000 for these repairs ; and

WHEREAS, the patio wall shows major signs of compromised structural deficiencies, the pool deck shows evidence of detaching and cracking throughout the surface of the pool deck, the electrical system requires replacement to prevent electrical shorts and possible fire, and the pool wall requires replacement to avoid collapse; and

WHEREAS, based on the recommendation from the Acting City Engineer on the immediate repairs of the patio wall, pool deck floor, electrical and interior wall to the City Manag er, the City Manager approved the emergency action s waiving the informal competitive bidding requirements; and

WHEREAS, California Public Contract Code Section 22050 provides that in the case of an emergency, a city, pursuant to a 4/5 s vote of its governing body, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services and supplies for those purposes, without giving notice for bids to let contracts provided the public agency is able to make a finding, based on substantial evidence, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency; and

WHEREAS, California Public Contract Code Section 22050 provides that in the case of an emergency, a city, pursuant to a 4/5s vote of its governing body , a public agency may delegate to the City Manager the authority to order any action pursuant to California Public Contract Code Section 22050(a)(1) to address the emergency; and

WHEREAS, on April 5, 2022, the City Council found that there is substantial evidence in the record demonstrating that t he patio wall shows major signs of compromised structural deficiencies, the pool deck shows evidence of detaching and cracking throughout the surface of the pool deck, the electrical system requires replacement to prevent electrical shorts and possible fire, and the pool wall require s replacement to avoid collapse has created an created an emergency requiring immediate action to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and City Council Regular Meeting - Page 73 of 664
2 WHEREAS, the City Council delegated the authority to the City Manager o r his or her designee upon recommendation from the Director of Public Works and/or City Engineer the authority to order any action pursuant to the California Public Contract Code Section 22050 (a)(1) including the waiving of formal or informal competitive bidding requirements to tear down and replace the patio wall, to replace the pool deck, to upgrade the electrical system, and to replace the pool wall.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:

Section 2. That the City Council has reviewed the emergency action and finds that by way of a four-fifths vote of its members, finds that there is a need to continue the action pursuant to Public Contract Code Section 22050(c)(2).

Section 2. This Resolution shall take effect immediately upon its adoption.

Section 3. The City Clerk shall certify as to the adoption of this City Council Resolution.

PASSED, APPROVED and ADOPTED this 19TH day of July, 2022.

______________________________
Jorge Casanova
Mayor
ATTEST:

___________________________ ______________________________ María Quiñónez Ernie Hernandez
City Clerk City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

__________________________ ______________________________ Noel Tapia Mir T. Fattahi
City Attorney Acting City Engineer
City Council Regular Meeting - Page 74 of 664
3 STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resoluti on was passed and adopted by the City Cou ncil of the City of Lynwood at a regular meeting held on the 21st day of June 2022, and passed by the following votes:

AYES:

NOES:

ABSTAIN:

ABSENT:

________________________
Maria Quinonez, City Clerk

STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. ____________ on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 21st day of June 2022.

________________________
Maria Quinonez, City Clerk

City Council Regular Meeting - Page 75 of 664
Agenda Item # 12.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Mir
T. Fattahi, Acting City Engineer

George Cambero, Interim Utility Manager

Lorry Hempe, Public Works Special Projects Manager

SUBJECT:

CONTINUATION OF AN EMERGENCY ACTION PER PUBLIC CONTRACT CODE SECTION 22050 FOR THE EMERGENCY ACTION AT WELL NO. 19
Recommendation:

Staff recommends for the City Council to adopt the attached resolution entitled:
“A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LYNWOOD FINDING THAT THERE IS A NEED TO CONTINUE THE

EMERGENCY ACTION, BY WAY OF A FOUR-FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RESPECT TO THE EMERGENCY REHABILITATION ON WELL NO. 19.”

Background:

On April 5, 2022, the City Council found that an emergency existed at Well No. 19 necessitating immediate actions. At the same meeting, the City Council authorized the City Manager to begin emergency rehabilitation work which includes backfilling the well, brushing of the casing with Sterilene to remove bio-fouling, patching the seven (7) holes in the well casing, changing the pump from oil to water lubrication, and disinfecting the well and approved the additional optional work on the zone sampling while the well is offline.

Discussion and Analysis:

The approved emergency work at Well No. 19 has not yet been completed. There is a need to continue the City Council Regular Meeting - Page 76 of 664
emergency work.

Four-fifths Vote Requirement to Continue the Action

Fiscal Impact:

No additional appropriation is needed.

Coordinated With:

Finance Department
City Attorney’s Office
ATTACHMENTS:

Description
Resolution
City Council Regular Meeting - Page 77 of 664
1 RESOLUTION._____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD FINDING

THAT THERE IS A NEED TO CONTINUE THE EMERGENCY ACTION, BY WAY OF A

FOUR-FIFTHS VOTE OF ITS MEMBERS, PURSUANT TO PUBLIC CONTRACT CODE SECTION 22050(c)(1) WITH RESPECT TO THE EMERGENCY REHABILITATION ON WELL NO. 19

WHEREAS, Well No. 19 produces water at 2,054 acre feet per year; and

WHEREAS, Well No. 19 water production is almost half of the City’s entire water system; and

WHEREAS, staff has observed that Well No. 19 started producing an overwhelming amount of sand and silt during normal pumping and subsequent videos of the well exposed the holes in the well casing; and

WHEREAS, upon recommendation from the City’s Utility Services Manager and Acting City Engineer, immediate rehabilitation of Well No. 19 is needed to resolve water quality issues and to bring the well back into production; and

WHEREAS, it is cost-effective to conduct the option al zone sampling at a cost of $49,690 while the well is off-line; and

WHEREAS, California Public Contract Code Section 22050 provides that in the case of an emergency, a city, pursuant to a 4/5s v ote of its governing body , a public agency may delegate to the City Manager the authority to order any action pursuant to California Public Contract Code Section 22050(a)(1) to address the emergency; and

WHEREAS, on April 5, 2022 , the City Council found that there is substantial evidence in the record demonstrating that the production and presence of an overwhelming amount of sand and silt during normal pumping and subsequent videos of Wells No. 19 and the existence of holes in the well casing has created an emergency requiring immediate action to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and City Council Regular Meeting - Page 78 of 664
2 WHEREAS, the City Council delegated the authority to the City Manager or his or her designee upon recommendation from the Director of Public Works and/or City Engineer the authority to order any action pursuant to the California Public Contract Code Section 22050 (a)(1) including the waiving of formal competitive bidding requirements to engage a consultant to assess and expose Well No. 19 deficiencies as evidenced by the significant presence of sand and silt as well as holes to the well casing; and

WHEREAS, the City Council authorized the City Manager to begin emergency rehabilitation wo rk which includes backfilling the well, brushing of the casing with Sterilene to remove bio -fouling, patching the seven (7) holes in the well casing, changing the pump from oil to water lubrication, and disinfecting the well and approves the additional optional work on the zone sampling while the well is offline; and

WHEREAS, the approved emergency work at Well No. 19 has not yet been completed, thus requiring continuation of the emergency work.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:

Section 3. This Resolution shall take effect immediately upon its adoption.

Section 4. The City Clerk shall certify as to the adoption of this City Council Resolution.

PASSED, APPROVED and ADOPTED this 19th day of July, 2022.

______________________________
Jorge Casanova
Mayor
ATTEST:

___________________________ ______________________________ María Quiñónez Ernie Hernandez
City Council Regular Meeting - Page 79 of 664
3 City Clerk City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

__________________________ ______________________________ Noel Tapia Mir T. Fattahi
City Attorney Acting City Engineer
City Council Regular Meeting - Page 80 of 664
4 STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resol ution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on th e 21st day of June 2022, and passed by the following votes:

AYES:

NOES:

ABSTAIN:

ABSENT:

________________________
Maria Quinonez, City Clerk

STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

________________________
Maria Quinonez, City Clerk

City Council Regular Meeting - Page 81 of 664
Agenda Item # 13.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Noel Tapia, City Attorney

SUBJECT:

CONSIDERATION OF A RESOULTION PROCLAIMING A LOCAL EMERGENCY,

RATIFYING THE PROCLAMATION OF A STATE OF EMERGENCY BY GOVERNOR

NEWSOM, FINDING THAT THE PROCLAIMED STATE OF EMERGENCY

CONTINUES TO IMPACT THE ABILITY TO MEET SAFELY IN PERSON, AND

DECLARING THAT THE CITY COUNCIL AND CITY COMMISSIONS AND

COMMITTEES WILL COTINUE TO MEET REMOTELY IN ADHERENECE WITH AB 361 IN ORDER TO ENSURE THE HEALTH AND SAFETY OF THE PUBLIC Recommendation:

Background:

Beginning in March 2020, Governor Newsom issued a series of Executive Orders aimed at containing the novel coronavirus (COVID-19). Among these were several Executive Orders N-25-20, N-29-20, N-35-20 (collectively, the Brown Act Orders) that waived requirements in the Brown Act expressly or impliedly requiring the physical presence of city councilmembers, staff, or the public at local agency meetings.

Discussion and Analysis:

City Council Regular Meeting - Page 82 of 664
Beginning in March 2020, Governor Newsom issued a series of Executive Orders aimed at containing the novel coronavirus (COVID-19). Among these were several Executive Orders N-25-20, N-29-20, N-35-20 (collectively, the Brown Act Orders) that waived requirements in the Brown Act expressly or impliedly requiring the physical presence of city councilmembers, staff, or the public at local agency meetings. Specifically, the orders:

• Waived the requirement that local agencies provide notice of each teleconference location from which a member of the legislative body will be participating in a public meeting; • Waived the requirement that each teleconference location be accessible to the public; • Waived the requirement that members of the public be able to address the legislative body at each teleconference conference location;
• Waived the requirement that local agencies post agendas at all teleconference locations; and, • Waived the requirement that at least a quorum of the members of the local body participate from locations within the boundaries of the territory over which the local body exercises jurisdiction.

On June 11, 2021, the Governor issued Executive Order (EO) N-08-21 to begin winding down some of the prior measures that were adopted to respond to COVID-19. Notably, EO N-08-21 rescinds the Brown Act Orders, effective September 30, 2021.

On September 16, 2021, Governor Newsom signed Assembly Bill AB 361 (Rivas, 2021), which allows cities to continue to meet remotely during proclaimed states of emergency under modified Brown Act requirements that are similar, but not identical to the rules and procedures established by the Brown Act Orders. The pending expiration of the Brown Act Orders and the enactment of AB 361 created some ambiguity. To provide clarification, the Governor issued Executive Order N-15-21, explaining that cities may continue to hold meetings in accordance with the Brown Act Orders until September 30, or they may hold meetings in accordance with the requirements of AB 361.

Should the City Council wish to continue meeting remotely beyond September 30 pursuant to AB 361, the City Council would be required to adopt the attached resolution. If the City Council chooses to utilize the option for remote meetings under AB 361, it can continue using the remote meeting procedures it has been using throughout the COVID-19 pandemic, subject to certain requirements that must be considered as part of the initial determination to adopt remote meeting protocols. Once adopted, the initial authorizing resolution is effective for no more than thirty (30) days.

The City may extend the authorization for an additional thirty (30) days via another resolution that makes specific findings in support of continuing remote meetings. The City may continue to extend the authorization for additional thirty (30) day increments for the duration of the declared emergency, or until the City Council decides to return to in-person meetings, or otherwise complies with the regular remote meeting requirements of the Brown Act.

To implement remote meetings under AB 361, one of three criteria must be met at the time the City is holding a meeting during a proclaimed state of emergency by the Governor that includes area within the jurisdictional boundaries of the City:

• State or local officials have imposed or recommended measures to promote social distancing; or • For the purpose of determining, by majority vote, whether as a result of the state of emergency, meeting in person would present imminent risks to the health or safety of attendees; or • The City Council has previously determined, by majority vote, that, as a result of the state of emergency, meeting in person would present imminent risks to the health or safety of attendees.

If one of these three criteria are met, then the City can conduct meetings remotely via Government Code §§ 54953(e), et seq.

If the City Council makes the required findings and chooses to meet remotely, every 30 days the City Council will be required to make findings about whether the circumstances still apply. The City Council must find that it reconsidered the circumstances of the State of Emergency and that one of the following circumstances remains:

• The City Council finds that meeting in person would present imminent risks to the health or safety of attendees; or

• State or local officials have imposed or recommended measures to promote social distancing.

City Council Regular Meeting - Page 83 of 664

If the City Council makes the findings to continue having remote meetings, the City must meet the following requirements:

1. The City must give notice and post agendas as otherwise required by the Brown Act, including directions for how the public can access the meetings;

2. Provide members of the public access to the meeting and an opportunity to address the body directly;

3. Provide members of the public the opportunity to comment in real time;

4. Suspend further action on items in the meeting agenda in the event that there is a disruption in the ability of the meeting to be broadcast to members of the public or in the ability for members of the public to comment;

Fiscal Impact:

No fiscal impact is anticipated the proposed action.

Coordinated With:

ATTACHMENTS:

Description
Reso- Continue Remote Meetings
City Council Regular Meeting - Page 84 of 664
RESOLUTION NO. __________

A RESOLUTION OF THE CITY OF LYNWOOD PROCLAIMING A LOCAL

EMERGENCY, RATIFYING THE PROCLAMATION OF A STATE OF

EMERGENCY BY GOVERNOR NEWSOM, FINDING THAT THE PROCLAIMED

STATE OF EMERGENCY CONTINUES TO IMPACT THE ABILITY TO MEET

SAFELY IN PERSON, AND DECLARING THAT THE CITY COUNCIL AND CITY

COMMISSIONS AND COMMITTEES WILL CONTINUE TO MEET REMOTELY IN ADHERENCE WITH AB 361 IN ORDER TO ENSURE THE HEALTH AND SAFETY OF THE PUBLIC.

WHEREAS, all meetings of the City of Lynwood City Council as a legislative body are open and public, as required by the Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City Council as a legislative body conduct their business; and

WHEREAS, th e Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and

WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for a broader spread of COVID-19; and

WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended certain provisions of the Brown Act in order to allow local legislative bodies to conduct meetings electronically with out a physical meeting place; and

WHEREAS, on June 11, 2021, the Governor issued Executive Order N -08- 21, which extended the provision of N -29-20 concerning the Brown Act and the conduct of public meetings through September 30, 2021; and

WHEREAS, since t he issuance of Executive Order N -08-21, the Delta variant has emerged, causing a spike in COVID-19 cases throughout the state; and

WHEREAS, Governor Newsom’s proclaimed State of Emergency remains in effect, and State and local officials, including the Los Angeles County Department of Public Health, have imposed or recommended measures to promote social distancing; and

WHEREAS, on September 16, 2021, California Assembly Bill 361 was signed into law, as urgency legislation that goes in effect on October 1, 2021, amending Government Code Section 54953 of the Ralph M. Brown Act to allow City Council Regular Meeting - Page 85 of 664
2 legislative bodies to continue to meet remotely during a proclaimed state of emergency, provided certain conditions are met and certain findings are made; and

WHEREAS, the Cit y of Lynwood is committed to preserving and nurturing public access and participation in meetings of the Lynwood City Council; and

WHEREAS, the City Council desires to take the actions necessary to comply with AB 361 and to continue to hold its City Council, Commission and Committee meetings remotely.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:

Section 1. The City Council for the City of Lynwood finds and declares that the foregoing recitals are true and correct, and incorporates said recitals fully into this Resolution as substantive findings.

Section 2. The City Council hereby proclaims that a local emergency now exists throughout the City, and social distancing and condition caus ing imminent risk to attended has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to procla im a local emergency and ratify the proclamation of State of Emergency by the Governor of the State of California.

Section 3. That the City Council has reconsidered the circumstances of the State of Emergency and finds the following circumstances:

a. The factors triggering the State of Emergency continue to directly impact the ability of the members of the City Council and the City’s subordinate Commissions and Committees to meet safely in person; and

b. The State of California and the City of Lynwood continue to impose or recommend measures to promote social distancing.

Section 4. City Council and City Commission and Committee meetings will continue to be conducted remotely for the next 30 days in compliance with AB 361 and Government Code Section ( e)(2), in order to ensure the health and safety of the public while provides access to public meetings.

Section 5. This Resolution shall become effective immediately and shall be reconsidered by the City Council in 30 days or sooner to assess the State o f Emergency and determine whether to continue with the provisions set forth in Assembly Bill 361.

City Council Regular Meeting - Page 86 of 664
3 PASSED, APPROVED and ADOPTED this_____ day of ________, 2022.

_________________________
Jorge Casanova, Mayor
City of Lynwood

ATTEST:

________________________
Maria Quinonez, City Clerk

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

______________________ __________________________
Noel Tapia Ernie Hernandez,
City Attorney City Manager

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of said City at its regular meeting thereof held in the City Hall of the City on the _________day of____________, 2022 and passed by the following vote:

City Council Regular Meeting - Page 87 of 664
4 AYES:

NOES:

ABSTAIN:

ABSENT:

__________________________
City Clerk, City of Lynwood

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. _________ on file in my office and that said resolution was adopted on the date and by the vote therein stated.

Dated this ______ day of ________________, 2022.

__________________________
City Clerk, City of Lynwood
City Council Regular Meeting - Page 88 of 664
Agenda Item # 14.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

John Yonai, Interim Director of Community Development
Karen Figueredo, Planning Associate
Alfredo Perez, Planning Associate

SUBJECT:

CONSIDERATION OF ORDINANCE NO. ________ TO APPROVE A

DEVELOPMENT AGREEMENT (DA) BEETWEEN THE CITY OF LYNWOOD AND

BULLETIN DISPLAYS, LLC FOR THE DVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11104-11106 WRIGHT ROAD, LYNWOOD ASSESSOR’S PARCEL NUMBER 6194-029-006
Recommendation:

1. Conduct a public hearing, receive public testimony, and after discussion, vote upon the matter at hand; and

2. Staff recommends that the City Council introduce for a first reading, ready by title only, waive further reading, the attached Ordinance No. ___ entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LYNWOOD FOR APPROVAL OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF

LYNWOOD AND BULLETIN DISPLAYS, LLC FOR THE DEVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11104-11106 WRIGHT ROAD, LYNWOOD (ASSESSOR’S PARCEL NUMBER 6194-029-006)”

Background:

Bulletin Displays, LLC (herein referred to as the “Applicant”) has submitted a Site Plan Review application (SPR) to construct a new 80-foot tall, as measured from the apex of the adjoining freeway, back-to-back, digital billboard (herein referred to as the “billboard”) consisting of a total billboard sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboard sign face). The proposed 80 feet is measured from the apex of the adjoining freeway, to the top of the 14-foot sign face. Signage aesthetics will be further reviewed by staff and the matter may be returned to the Planning Commission if Bulletin Display, LLC’s proposed billboards at 11104-06 Wright Road and 11350 Wright Road are drastically different from the other. Staff is recommending that the billboards match the exterior design of the other similar to the color rendering portrayed for the 11104-11106 Wright Road location, with not extension of design beyond the top of the billboard

The subject billboard is proposed to be supported by a single supporting post immediately adjacent and west of City Council Regular Meeting - Page 89 of 664
the Interstate 710 Freeway corridor. The proposed billboard is proposed to be located at 11104 - 11106 Wright Road (APN 6194-029-006) and approximately 700 feet southeast of the Wright Road and Louise Avenue intersection.

The subject site is characterized as a rectangularly-shaped, non-sloping site that maintains one (1) industrial structure operating a welding shop. The site is zoned (M) Manufacturing with a General Plan’s Manufacturing land use designation.

The project corridor is located within the northeast area of the City and along the portion of the I-710 Freeway between E. Imperial Highway and Martin Luther King Jr. Boulevard. The City has two (2) designated freeway- oriented billboard corridors within the City: I-105 Freeway and I-710 Freeway. Off-site digital billboards are permitted within these corridors subject to Zoning Code development standards and the approval of a Development Agreement (DA) by the City Council.

As a part of Planning Commission’s review of the project, the Planning Commission considered and adopted
Mitigated Negative Declaration No. 2021-46
and Resolution No. 3444, and reviewed and recommended
that the project’s Development Agreement (DA) to the City Council will also be completed.

PROJECT

Pursuant to Lynwood Municipal Code Section 25-70-14 “Off-Site Outdoor Advertising Displays” of the Lynwood Municipal Code, proposed off-site outdoor advertisement billboards and DAs are subject to City Council decision. A DA (Attachment A) was prepared for the subject, new digital billboard located at 11104 - 11106 Wright Road (APN 6194-029-006) and immediately adjacent to and west of the I-710 Freeway as shown the below aerial map (Attachment D).

The project site is comprised of one (1) parcel with a lot area of approximately 12,723 square feet or 0.29 of an acre. The project site is located in Manufacturing (M) zone, wherein the Lynwood Municipal Code specifically and conditionally permit off-site outdoor advertising displays (billboards) by the process described in Section 25-70-

14. The new electronic billboard will consist of back-to-back displays and will be visible from both north and south bound I-710 Freeway lanes. The new billboard’s size, design, lighting, messages and timing of messages will be consistent with the parameters described in DA. The Applicant shall comply with State law regarding the limitation of light and glare or such other standards as adopted by the Federal Highway Beautification Act and the State's Outdoor Advertising Act. Standards include, but are not limited to, the 0.3 foot-candles limitation over ambient light levels ensuring additional flexibility in reducing such maximum light level standard given existing conditions, including the obligation to incorporate automatic diming capabilities. Each message on the new digital billboard displays shall be displayed for at least eight (8) seconds.

City Council Regular Meeting - Page 90 of 664
Standard City conditions of approval and site requirements are included as findings confirmed in the positive from section Lynwood Municipal Code 25-130-5.

Environmental Determination
Pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15063 of the California Environmental Quality Act (CEQA) guidelines, the project completed an Initial Study review and a Mitigated Negative Declaration (MND) was completed pursuant to Section 15064(f)(2) of CEQA guidelines. The impacts associated with a Mitigated Negative Declaration was prepared as the conclusions of the Initial Study determined that the project may not cause significant impacts on the environment without mitigation.

Discussion and Analysis:

Draft Development Agreement (DA)
State Law allows cities to enter into DAs with private parties. The DA is a legal, binding contract between a city and any person or entity having a legal or equitable interest in a property. The agreement must clearly outline conditions, terms, restrictions and requirements. Once a DA is approved by the City Council, the rules of development for that property cannot change even if the zoning code or other development codes are changed.

DAs are often used in large, complex project and/or in project that have a long lead-time, multiple phases, or long development period, in order to give the developer certainty in regards to the entitlements and other governmental actions.

Under the DA Statute (Government Code Sections 65864-65869.5), cities have a right to enter agreements with private parties to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development. A Development Agreement provides the developer with certain vested rights to develop the property in accordance with zoning laws and entitlements in effect on the date of the Development Agreement for a specified period of time. In this case three years. This provides the Developer with assurance that the City will not change the terms of development during construction of the project.

It also provides the City with assurance that the development will be completed in a timely manner. DAs are often used in large, complex projects and in projects that have a long lead-time, multiple phases, or a long development period, in order to give the developer certainty in regards to the entitlements and other governmental actions.

There may also be a “business deal” component to a DA, where a city may agree to undertake certain actions to help a project in return for other considerations from a developer, sometimes financial. Once a DA is approved by the City Council, the rules of development for that property cannot change even if the zoning code or other development codes are changed.

Approval Process
Although the City’s Municipal Code does not specify that a DA must first be approved by the Planning Commission, per State Law, the approval of a DA must be affected by both the Planning Commission and City Council actions. As such, the Planning Commission reviews and recommends the proposed terms of the DA followed by a public hearing by the City Council. Therefore, it is recommended that the City Council hear the matter and consider approving the DA after conducting the first reading of the ordinance and set a second reading for the proposed project DA at the following City Council meeting.

The most important parts of DAs are the financial and non-financial deal points that are agreed upon between the City and the Applicant. There are no established rules or policies when negotiating these deal points as each proposal is unique and should be considered on its own merits. The following provides a brief discussion of each of the major deal points:

1. Term - The Agreement shall continue in full force and effect for thirty years from the effective date; and this Agreement may be extended by mutual agreement between the parties at the end of the inital term.

operational.

In addition to the minimal annual fee payment, the City will receive the difference between 10% of net annual revenue and the minimal annual fee.

Therefore there is a potential, subject to advertising success, that the City will receive additional fees above the annual amounts noted above.

City Council Regular Meeting - Page 91 of 664

3. Public Benefits - The digital billboard is expected to generate the following public benefits: City’s Display Time on New Digital Billboard. To the extent that commercial advertising time on the Billboard is unsold and available, Applicant shall provide up to five percent (5%) of total advertising time, free of charge to City, for public service announcements of noncommercial city-sponsored civic events (“City Messages”). City will be responsible for appropriate artwork for the digital displays pursuant to art specifications as specified by Applicant from time-to- time.

4. Prohibited advertising - Developer shall not utilize any of the displays on the new digital billboard to advertise tobacco, marijuana, hashish, “gentlemen’s clubs,” or other related sexually explicit or overly sexually suggestive messages, or as may be prohibited by any City ordinance existing as of the Effective Date of the DA

Fiscal Impact:

The City shall annual receive in years 1 to 10 $75,000 or a total of $750,000, years 11 to 20 $100,000 or a total of
$1,000,000, and
years 21 to 30 $120,000 or a total of $1,200,000.

Over the 30 year term the City will generate approximately $2,950,000.

Coordinated With:

City Attorney’s Office
ATTACHMENTS:

Description
Attachment A - Ordinance
Attachment B - Location Map
Attachment C - Aerial Map
Attachment D - Development Agreement
City Council Regular Meeting - Page 92 of 664
1 ORDINANCE NO. ____________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

FOR THE APPROVAL OF THE DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF LYNWOOD AND BULLETIN DISPLAYS, LLC

FOR THE DEVELOPMENT OF A NEW BACK-TO-BACK DIGITAL
BILLBOARD AT 11104-11106 WRIGHT ROAD, LYNWOO D
(ASSESSOR’S PARCEL NUMBER 6194-031-007)

WHEREAS, the Applicant, Bulletin Displays, LLC and (“Applicant”) submitted a request to allow the installation and operation of a new, back -to-back digital billboard at 11104-11106 Wright Road, Lynwood, Assessor’s Parcel Number 6194-031-007 (“Subject Property”);

WHEREAS, On May 10, 2022, the City Planning Commission, by Resolution No. 3444 approved the proposed 80-foot tall, back-to-back, digital billboard (herein referred to as the “billboard”) consisting of a total billboard sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboar d sign face). The proposed 80 feet is m easured from the base of the sign to the top of the 14-foot sign face.

WHEREAS, the use of this newer electronic billboard technology allows for image change instantaneously, with no special effects, video, flashing, or movement, limiting distraction to drivers on Interstate 710 Freeway corridor;

WHEREAS, the Applicant has negotiated a Development Agreement (DA) and attached hereto as Exhibit “A”. An approved Development Agreement between the City and the Applicant, Bulletin Displays, LLC , will offer the City the ability to extract improvements or benefits for the city that are not possible by way of a site plan review;

WHEREAS, pursuant to the State CEQA Guidelines, a Mitigation Negative Declaration was published with State Clearing House and posted as required by state law from January 14, 2022 to February 15, 2022;

WHEREAS, On May 10, 2022, the City Planning Commission, by Resolution No 3444, approved an Initial Study review and a Mitigated Negative Declaration (MND) No. 2021-46 in compliancewith the State California Environmental Quality Act (CEQA) guidelines, California Code of regulations, Title 14, Chapter 3, sections: 15063 and . 15064(f)(2). The City Council adopts the findinds and CEQA approval of the Planning Commission as its CEQA determination for consideration of the Development Agreement;

WHEREAS, On May 10, 2022, the City Planning Commission adopted Resolution 3444 approving Site Plan Review No. 2021-46, Mitigated Negative Declaration No. 2021- 46, and Development Agreement;

WHEREAS, on May 10, 2022, the Planning Commission held a duly noticed and advertised public hearing to receive oral and written testimony related to the Development City Council Regular Meeting - Page 93 of 664
2 Agreement and suffiently considered all testimony presented to them in order to recommend approval of the DA to the City Council.

WHEREAS, the Planning Commission recommends the adoption the Bulletin Displays, LLC ’s billboard project’s Mitigated Negative Declaration No. 20 21-46 and Mitigation Monitoring Program; and

WHEREAS, in accordance with the Lynwood Municipal Code Section 25 -70-14, the Planning Commission will review and provide recommendation to City Council for Development Agreement approval consideration; and

WHEREAS, the Planning Commission, upon giving the required notice did, on the 10th day of May 2022, conduct a duly-advertised public hearing as prescribed by law to consider Site Plan Review No. 2021-46, Mitigated Negative Declaration No. 2021-46, and Development Agreement, at which time evidence, both oral and written, including a staff report were presented and received, and comments were heard from all interested parties appearing in the matter.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lynwood as follows:

SECTION 1. The City Council hereby finds and determines that The Development Agreement is consistent with the City General Plan and the “Manufacturing” general plan designation. The Findings of Approval associated with the Planning Commission Resolution No 3444, Site Plan Review No. 2021-46 and Mitigated Negative Declaration No. 2021-46, respectively, adopted by the Planning Commission on May 10, 2022 are adopted herein by reference as further support for approval of the Development Agreement.

SECTION 2. State Law allows cities to enter into a Development Agreements with private parties. The Development Agreement is a legal and biding contract between a city and any person or entity having a legal or equitable interest in a property . The agreement provides the developer with certain vested rights to develop the property in accordance with the zoning laws and entitlements in effect on the date of the Development Agreement for a specifi period of time. The DA will terminate in three (3) year s if the proejcts is not completed.

SECTION 3. The DA provides the Developer with assurance that the City will not change the terms of development during construction of the project. It also provides the City with assurance that the development will be completed in a timely manner.

SECTION 4. Once a Development Agreement is approved by the Lynwood City Council, the rules of development for that property cannot change even if the zoning code or other development codes are changed.

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3 SECTION 5 . Based on the above recitals, the staff report accompanying this Ordinance and public comments, the City Council of the City of Lynwood hereby finds the project to be consistent with the goals, policies, and objectives of the land use element, the land use plan of the City’s general plan and that the project will not adversely affect the surroundings properties.

SECTION 6. The City Council of the City of Lynwood hereby approves the Development Agreement to allow the proposed 80-foot tall, back-to-back, digital billboard (herein referred to as the “billboard”) consisting of a total billboard sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboard sign face). The proposed 80 feet is measured from the base of the sign to the top of the 14 -foot sign face . The subject billboard is proposed to be supported by a single supporting post subject to the conditions per Resolutions No .3444 (Site Plan Review No. 2021 -46 and Mitigated Negative Declaration No. 2021-46)

SECTION 7. If any section, subsection, clause or phrase of this Ordianance is for any reason, held to be unconstitutional, or otherwise invalid, such decision shall not affect the validity of the remaining sections of this Ordinance. The City Council hereby finds that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more other sections, subsctions, sentences, clauses or phrases be declared unconstitutional or invalid.

SECTION 8. This Ordinance shall take effect on the thirty-first (31st) day after its adoption.

Section 9. The City Clerk shall certify as to the adoption of this Ordinance and shall cause the Ordinance to be posted or publishes as required by law.

PASSED, APPROVED AND ADOPTED this 19th day of July, 2022.

________________________________
Jorge Casanova
Mayor

ATTEST:

_______________________________ ________________________________ Maria Quiñonez Ernie Hernandez
City Clerk City Manager

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4 APPROVED AS TO FORM:

_______________________________
Noel Tapia
City Attorney

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5 STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Ordinance was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the ___ day of ______ , and passed by the following votes:

AYES:

NOES:

ABSTAIN:

ABSENT:

_______________________________________
Maria Quiñonez, City Clerk

STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correctcopy of the Ordinance No. __________ on file in my office and that said Ordinance was adopted on the date and the vote therein stated. Date this____ day of _____.

_______________________________________
Maria Quiñonez, City Clerk

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ATTACHMENT B

LOCATION MAP

11104-06 Wright Road, Lynwood

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ATTACHMENT C

AERIAL MAP

Project Location: 11104-06 Wright Road

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1 Recording Requested by and
When Recorded Return to:

CITY OF LYNWOOD
11330 Bullis Road
Lynwood, CA. 90262
Attn: City Clerk
[Exempt From Recording Fee Per Gov. Code § 27383]
DEVELOPMENT AGREEMENT NO.

This Development Agreement (“Agreement”) is entered into this _______day __________ 2022, (“Effective Date”) by and between the CITY OF LYNWOOD, a California municipal corporation (“City”) and Bulletin Displays, LLC (“Developer”).

RECITALS
A. California Government Code Sections 65864, et seq., (“Development Agreement Law”) authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purposes of strengthening the public planning process, encouraging private participation and comprehensive planning and identifying the economic costs of such development.

B. Developer has a long -term leasehold interest (“ Site”) in a portion of the real property commonly known as 11104-11106 Wright Road, in the City of Lynwood, in the County of Los Angeles (Assessor’s Parcel Number 6194 -029-006) (the “Property”), as more specifically described in Exhibit “A”, which Property is approximately 0.2921 acres in size and is improved with a commercial building, along with parking, landscaping and related improvements.

Developer’s Site is located near the eastern boundary of the Property and is adjacent to and visible from the 710 Freeway, as depicted on each Site Plan attached as Exhibit “B”.

C. Developer seeks to install on the Site a 80 foot tall billboard (“Billboard”) , as measured from the apex of the adjacent 710 Freeway to the top of the display face, containing a double-sided L.E.D. display (“Digital Display”), each face measuring 14 feet x 48 feet from the base of the display as depicted on Exhibit “C”, pursuant to the terms of this Agreement. In this Agreement, the Billboard and each Digital Displa y are sometimes referred to collectively as “Billboard” and sometimes the “Digital Display” is referred to specifically.

D. In exchange for the City’s approval to install the Billboard and the Digital Display thereon, and in order to mitigate any impacts associated with the installation, Developer agrees to:

1. Pay to the City a development fee and provide other public benefits as set forth in Section 2.5 below, and
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2 2. Install an illuminated sign on the Billboard naming the City of Lynwood at no cost to City with the final design agreed to between the City and Developer; and

3. Agree not to advertise on the Digital Display any content contrary to the provisions of Section 2.7 below.

E. The Site is located in the City’s Manufacturing zone and has a General Plan designation of Industrial.

F. The Project, as defined below, requires a Site Plan approval, which Developer is pursuing through a duly-filed sign review approved by the City concurrently herewith.

G. Developer and City Agree that this Agreement should be approved and adopted to memorialize the expectations of City and Developer as more particularly described herein.

H. On May 10, 2022, the Planning Commission of the City, at a duly noticed hearing to consider the approval of this Agreement, adopted Resolution No. ____________ recommending approval of this Agreement to the City Council and find the Project, as defined below, categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15332 regarding Urban In-Fill Development Projects.

I. On _________, ____ 2022, the City Council of the City, at a duly noticed hearing to consider the approval of this Agreement, considered the proposal, heard testimony, and introduced Ordinance No. _______, subject to referral of consideration of the matter by the Planning Commission.

J. The City Council has found that this Agreement is in the best public interest of the City and its residents, that adopting this Agreement constitutes a present exercise of the City’s police power, and that this Agreement is consistent with the City’s General Plan. This Agreement and the proposed Project, as defined below, will achieve a number of City Objectives and public benefits.

K. On ________________, 2022, the City Council held the second reading of Ordinance No. _________, hereby approving this Agreement.

L. City finds and determines that all actions required of City precedent to approval of this Agreement by Ordinance No. _________of the City Council have been d uly and regularly taken.

COVENANTS
NOW, THEREFORE, in consideration of the above recitals (which are incorporated into this Agreement as if set forth in full herein) of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS

1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter City Council Regular Meeting - Page 101 of 664
3 capitalized, when used in the Agreement. In Addition to the terms defined in the Recitals above, the defined terms include the following:

1.1.1 “Agreement” means this Development Agreement and all attachments and exhibits hereto.

1.1.2 “Annual Net Revenue” means all income actually received by Developer in connection with the Billboard (net of any commissions paid by Developer to advertising agencies or brokers , not to exceed 16 -2/3%). For the purposes hereof, any income described in this definition will not include the value of any in-kind usage of the Billboard by the City pursuant to Section 2.6 or any other in-kind usage for political messages or for public service messages from nonprofit organizations or for nonpaying clients who are testing the sign or given bonuses.

1.1.3 “Billboard” and “Digital Display” shall have the meanings ascribed in the Recital above

1.1.4 “City” means the City of Lynwood, a California municipal corporation and a general law city.

1.1.5 “City Council” means the City Council of the City.

1.1.6 “Developer” means Bulletin Displays, LLC, duly existing and operating and its successors and assigns, as further described in Section 8.20.

1.1.7 “Development Approval” means the approved Project, based on the approval of the City Council, as further described at Recital G and Section 3.3 herein.

1.1.8 “Effective Date” means the date inserted into the preamble of this Agreement, which is 30 days following approval of this Agreement by ordinance of the City Council, provided the Agreement is signed by the Developer and the City.

1.1.9 “Final Permits” shall be when all approval s necessary to construct the Billboard and the Digital Displays have been obtained from all applicable governmental and quasi- governmental authorities, including but not limited to any and all permits and approvals required by: (i) the Lynwood Municipal Code; (ii) the California Department of Transportation (“Caltrans”) pursuant to the California Outdoor Advertising Act; (iii) applicable utilities affected by the construction; and (iv) CEQA and the State CEQA Guidelines.

1.1.10 “Land Use Regulations” mean s all ordinances, resolutions, codes, rules, regulations and official policies of City, including, but not limited to, the City’s General Plan and Municipal Code, which govern the development and use of the Site, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of the Billboard, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and spe cifications applicable to the Development of the Billboard at the Site which are in full force and effect as of the Effective City Council Regular Meeting - Page 102 of 664
4 Date of this Agreement. Land Use Regulations shall also include National Pollutant Discharge Elimination System (“NPDES”) regulations, to the extent applicable.

1.1.11 “Lease” means the agreement between Developer and the Property owner granting Developer the legal right to install, operate and maintain the Billboard and Digital Display at the Site.

1.1.12 “Operational” means , the date that all L.E.D. panels of the Digital Display are capable, legally and functionally, of displaying advertising or issuance of all governmental and Southern California Edison approvals, whichever is sooner.

1.1.13 “Project” means the installation , operation and maintenance of the Digital Display on the Billboard on the Site, all in accordance with the Development Approvals, and this Agreement.

1.1.14 “Site” shall have the meaning ascribed in Recital “B”, above.

1.1.15 “Subsequent Land Use Regulations” means any Land Use Regulations that take effect after the Effective Date of this Agreement which may govern the Project.

1.1.16 “Term” shall have the meaning provided in Section 2.4, unless earlier terminated as provided for in this Agreement.

1.2 Exhibits. The following documents are attached hereto and are by this reference made a part of this Agreement:

Exhibit “A” (Legal Description of Property)
Exhibit “B” (Site Plan)
Exhibit “C” (Digital Display and Billboard Elevations)
Exhibit “D” (Form for the Annual Statement of Annual Net Revenues)

2. GENERAL PROVISIONS.

2.1 Binding Effect of Agreement. From and following the Effective Date, actions by the City and Developer with respect to the Project, including actions by the City on application for subsequent Development Approvals affecting the Site, shall be subject to the terms and provisions of this Agreement; provided however, that nothing in this Agreement shall be deemed or construed to modify or amend the Lease, or any of the Developer’s obligations thereunder.

2.2 Interest in Site. City and Developer acknowledge and agree that Developer has a legal or equitable interest in the Site and is thus qualified to enter into and be a party to this Agreement under Development Agre ement Law. Additionally, prior to the execution of this Agreement, Developer has allowed City to view a redacted copy of the Lease, which demonstrate that Developer has a long -term leasehold interest in the Site, which interest shall be maintained during the Term of this Agreement, at the discretion the Developer. If Developer’s interest in the Lease is prematurely terminated, Developer may assign this Agreement as provided in Section 2.3, below. If Developer extends the Lease beyond the Term of this Agreement and this Agreement is City Council Regular Meeting - Page 103 of 664
5 not extended to the new Lease expiration date by the City, at the expiration of this Agreement, If Developer’s interest in the Lease terminates before the expiration of this Agreement and Developer is not able to Assign this Agree ment as provided in Section 2.3, Developer will remove the Billboard and Digital Display and sign a written cancellation of this Agreement, as provided in Section 4.1.

2.3 Assignment. Developer shall not assign or otherwise transfer this Agreement, or its interest in the Site to any other person, firm, or entity , without City’s written consent, which shall not be unreasonably withheld. An assignment of this Agreement shall be to a party that has demonstrated positive experience operating billboards similar to the Project, and who can provide evidence of adequate financial resources and expertise in securing advertisers for billboards similar to the Project. Developer shall notify City no later than ninety (90) days prior to any such proposed assignment a nd provide all documentation necessary for City to verify compliance with this requirement. Any transfer not meeting the requirements in this Section 2.3 shall be subject to the approval of the City Council. Any security posted by Developer may be substituted by the assignee or transferee. The prohibition against an assignment without reasonable City’s approval shall not be required for, or deemed to prevent , (i) the renting or subleasing or licensing of space for advertisements or displays consistent with the customary uses and practices for billboards and message boards or (ii) the assignment of this Agreement to any affiliate of Developer or joint venture in which Developer participates provided that Developer submits evidence satisfactory to City that t he principals who own and control Developer will maintain a majority controlling interest after consummation of such transaction and will have the ability to maintain a majority controlling interest throughout the Term, (iii) Developer, in any manner, at D eveloper’s sole discretion, from encumbering Sites or any portion thereof or the Development or any improvement on the Sites thereon by any mortgage, deed of trust or other security device securing financing with respect to the Sites. The City acknowledge s that the lenders providing such financing may require certain Agreement interpretations and modifications and the City agrees upon request, from time to time, to meet with Developer or Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, the City will not withhold its consent to any such requested interpretation or modification, provided the City determines such interpretation or modification is consistent with the intent and purposes of this Agreement. Upon reasonable approval by the City Attorney as to form, the City authorizes the City Manager to execute any Notices of Consent to Assignment on behalf of the City or similar financial documentation.

2.4 Term of Agreement. Unless this Agreement is earlier terminated as provided for herein, this Agreement shall continue in full force and effect for thirty (30) years after the date the Digital Display becomes Operational or the removal of the Digital Display, whichever is earlier (“Term”). The Parties may extend the Term or amend the terms of this Agreement by written amendment, subject to approval of the City Council. If the parties are unable to ag ree to extend the Term; then, within thirty (30) days after the expiration or termination of this Agreement, the parties shall execute a written cancellation of this Agreement, which shall be recorded with the County Recorder at the City's expense pursuant to Section 8.1 below

2.5 Public Benefits.

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6 2.5.1 Development Fees.
(a) Minimum Annual Guarantee (“MAG”). In addition to the one-time development fee required under Section 2.5.1(a), Developer shall pay City an annual MAG fee of $75,000.00 (the “ MAG Fee”) during the Term of this Agreement payable in equal monthly installments paid to the City on or before the fifteenth (15th) day of the first month following Digital Display becoming Operational and each month thereafter. The MAG shall be increased annually on the anniversary of the Digital Display becoming Operational by 2%. (b) Percentage Fee. To the extent that ten percent (10%) (the “Annual Revenue Share Percentage”) of the Annual Net Revenue exceeds the MAG (or the prorated MAG for the 1st and last year of the Term) as of March 31st of every year starting the year after the MAG Commencement Date, Developer shall make an additional payment to the City by March 31st of each year of the Term in the amount by which (i) the Annual Revenue Share Percentage multiplied by (ii) the Annual Net Revenue collected by Developer for the immediate preceding Term year exceeds the MAG amount paid by Tenant to the City pursuant to Section 2.5.1(b) for such Term year. In no eve nt shall the amount of the Development Fees due under Section 2.5.1 of this Agreement be less than the MAG.
(1) Reports. Developer shall furnish to City an annual statement of Annual Net Revenue for the Digital Display by March 31 st of each year of the Term. Such statement shall be in a form listed in Exhibit D. Each statement shall be signed and certified to be correct by a duly authorized officer of Developer or by the head of their accounting department.

Developer shall keep and ma ke available complete and materially accurate books of account, records, cash receipts and other pertinent data, in accordance with good accounting practices, showing the Annual Net Revenue, including without limitation, materially accurate records of every sale and other sales transaction made for any advertising display on the Digital Display and any commissions paid by Developer to an agency or broker. Such books of account, records, cash receipts, or other pertinent data shall be kept for a period of n o less than four (4) years after the end of each year. The receipt by City of any statement, or any payment of the Percentage Fee for any period, will not bind City as to the correctness of the statement or payment. (2) Inspection and Audit. City, a t its sole option, shall be entitled, at any time and from time to time during the Term and during normal business hours and with prior written notice to Developer, to inspect, examine, copy and audit Developer's books, records and cash receipts as related to Annual Net Revenue. Developer shall cooperate fully with City and City's agents in making the examination. City, at its option, will also be entitled once during each year of the Term and once after the Expiration Date or other termination of this Agreement, to cause an independent audit of such records to be performed by a certified public accountant designated by City, provided such accountant is not paid on a contingency fee basis.

The audit will be conducted during usual business hours at Develop er’s office located at 3127 E.

South Street, Suite B, Long Beach, CA 90805 , unless another location is mutually agreed upon.

If the audit shows that there is a deficiency in the payment of any Percentage Fee, then Developer shall promptly upon notice pay the deficiency to City which payment will not require any penalty or other late fee. City will pay the costs of the audit unless the audit shows that Developer understated Annual Net Revenue by more than three (3%) percent in which case Developer shall City Council Regular Meeting - Page 105 of 664
7 pay all reasonable out -of-pocket costs paid to third party consultants and incurred by City in connection with the audit.
(c) Late Charge; Default Interest.
(1) Late Charge. If Developer fails to pay any payments or fees required under this Agreement after the same is due and payable, such unpaid amount shall be subject to a late payment charge equal to five percent (5%) of the unpaid amount in each instance.

The late payment charge has been agreed upon by City and Developer, after negotiation, as a reasonable estimate of the additional administrative costs and detriment that City will incur as a result of any such failure by Developer, the actual costs thereof being extremely difficult—if not impossible—to determine. The late payment charge constitutes liquidated damages to compensate City for its damages resulting from such failure to pay, and Developer shall promptly pay such charge to City together with any unpaid interest.
(2) Default Interest. If any payments or fees are not paid following the due date, such unpaid amount will bear simple interest at the rate of 10% per year or the maximum permitted by law, whichever is lower (“Default Rate”) from the due date until paid.

However, interest will not be payable on late charges incurred by Developer, nor on any amounts on which late charges are paid by Developer to the extent this interest would cause the total interest to be in excess of that which an individual is lawfu lly permitted to charge. Payment of interest will not excuse or cure any default by Developer.
(3) Application of Payments . All payments received by City from Developer will be applied to the corresponding obligation owed by Developer to City. No designation by Developer, either in a separate writing, on a check or money order, or otherwise will modify this Agreement or have any force or effect.

2.5.2 Processing Fee. Developer has paid to City a one -time, nonrefundable processing fee ("Processing Fee") in the amount of Twenty Thousand Dollars ($20,000.00), which shall be used to pay City for the following: (1) City staff’s costs for the review and processing of this Development Agreement separate from the processing of such other b uilding and planning entitlements or CEQA review in connection with the Digital Display and (2) City’s costs associated with costs of the City’s legal counsel or any other of City consultants associated with the preparation, processing, and review of this Agreement. The Processing Fee shall be separate from all fees which are standard and uniformly applied to similar projects in the City, including, but not limited to, business license fees (due by Developer to City annually), one-time plan check fee and building permit fee and any other fees imposed by the City as may be applicable.

2.6 City Usage of Digital Display. To the extent that commercial advertising time on the Billboard is unsold and available, City shall have the right to use up to five percent (5%) of the total advertising time to promote civic and public purposes that serve the needs of the City and its residents, including but not limited to, City events and programs (such usage “City Usage”). City Usage shall be displayed (subject to the terms of this Agreement) during the operation of the Digital Display in increments, equally spread throughout each 24 -hour day on a space available basis as long as the City obtains 5% on an annual basis if they request it (any time not requested City Council Regular Meeting - Page 106 of 664
8 is lost at the end of each year and does not accumulate to the next year), and otherwise in the same manner as other commercial advertising displayed on the Digital Display. The City shall submit all proposed copy to Developer not less than five (5) business days prior to the date the copy is proposed to be displayed. All proposed City Advertising copy shall be prepared and submitted at the City’s sole cost, shall be in a format r eady for posting on the Digital Display per Developer’s posting specification sheet, and shall be subject to Developer’s standard advertising copy rejection and removal policies, which allow Developer to approve or disapprove copy and remove copy once posted or displayed. City represents and warrants that all copy, content and materials supplied by City to Developer for display under this Agreement: (i) are owned or duly licensed by City and do not infringe or misappropriate the rights of any other person o r entity; (ii) comply with all applicable federal, state, and local laws, rules and regulations and any industry codes or rules by which City and/or Developer may be bound and do not contain any obscene, libelous, slanderous or otherwise defamatory materials or refer in an offensive manner to the gender, race or ethnicity of any individual or group; (iii) are accurate and that all claims contained therein have been substantiated; and (iv) do not infringe upon any copyright, trademark or other intellectual property or privacy right of any third party. Any content provided by City shall be owned and belong exclusively to the City, and Developer shall not reproduce, sell, or give away any such content without the advance written consent of the City.

2.6.1 Emergency Notifications. Without any offset in the City Usage described above and at no cost to the City and as further consideration for the use and occupancy of Premises, Tenant shall make the Digital Display available to Caltrans and the California Highway Patrol on a space available basis for purposes of “Amber Alerts” and for emergency or disaster notifications by local, state, or federal agencies.

2.6.2 Jurisdictional Sign. In addition, Developer agrees to construct and install on the Billboard an illuminated jurisdictional sign naming the City of Lynwood at no cost to City with the final design agreed to between the City and Developer.

2.6.3 City Facility Authorized. Upon mutual agreement of Developer and the City’s Manager, the City or Developer may install telecommunication equipment (the “Equipment”) on the pole at a cost to be paid by the telecommunication company and if all Parties and the telecommunication enter into a indemnification, defense and hold harmless agreement regarding the Equipment acceptable to Developer and the City and the Developer approve of the modifications requested by the telecommunication company and enter into a lease with the telecommunication company. This clause is subject to the unilateral approval of De veloper’s landlord which can refuse for any reason, reasonable or not.

2.6.4 Fixed Facility Fee: Should City and Developer enter into a lease with a telecommunication company and Developer’s landlord for the installation of an antenna or wireless communication device for cellular, wi -fi or other service on the Billboard pole or structure (the “Device”), the City and Developer shall share equally the gross revenue collected as a result of the Device as additional revenue after the Developer’s landlord portion of the gross revenue is deducted. The party receiving the additional revenue from the telecommunication company shall have the right to review and audit the revenue received within 30 days upon request by the other party.

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9 2.7 Prohibited Use. Developer shall not utilize any of the Digital Displays to advertise or display messages that are:

2.7.2 promotes the sale of firearms, tobacco products, whether directly or indirectly;

2.7.3 promotes sexually oriented materials, adult businesses, entertain ment, products, conventions, events, or websites; and

2.7.4 promotes any product, service or activity illegal under federal, state, or local law.

3. DEVELOPMENT AND IMPLEMENTATION OF THE PROJECT.

3.1 Rights to Develop Billboard on the Site. Subject to and during the Term of this Agreement, Developer shall have the right to develop the Project on the Site in accordance with, and to the extent of, the Final Permits, the Land Use Regulations, and this Agreement, provided that nothing in this Agreement shall be deemed to modify or amend the Lease.

3.2 Effect of Agreement on Land use Regulations. The rules, regulations and official policies governing permitted uses of the Site, the density and intensity of such uses, the maximum height and size of proposed struc tures, and the design, improvement and construction standards and specifications applicable to the development of the Project shall be as set forth in the Land Use Regulations, as such term is defined in Section 1.1. 10, which are in full force and effect on the Effective Date.

3.3 Development Approvals. Developer shall, at its own expense and before commencement of demolition, construction or development of any structures or other work of improvement upon the Site, secure or cause to be secured all necessary Development Approvals, which shall include any and all permits and approvals which may be required by City or any other governmental agency or utility affected by such construction, development or work to be performed by Developer, including but not limited to, necessary building permits and all approvals required under the California Environmental Quality Act ("CEQA") if any, although the Project will be processed as categorically exempt from CEQA pursuant to Section 15332 regarding Urban In-Fill Development Projects. Not by way of limiting the foregoing, in developing and constructing the Project, Developer shall comply with all (1) development standards in City's Municipal Code applicable on the Effective Date, (2) NPDES requirements pertaining to the Project applicable on the Effective Date, (3) all applicable building codes applicable on the Effective Date, except as the Project may be permitted through approved variances and modifications, and (4) all Caltrans rules and regulations necessary to obtain an Outdoor Advertising Permit including a Relocation Agreement, if required. Developer shall pay all normal and customary fees and charges applicable to such permits, and any fees and charges hereafter imposed by City in connection with the Project which are standard and uniformly applied to similar projects in the City.

3.3.1 Relocation. The City shall cooperate and assist the off -site advertising sign Developer with complying with federal, state and local laws for any off -site advertising sign that was approved by a development agreement; including but not limited to assistance with a relocation per Bus. & Professions Code, Section 5412 for any of the off -site City Council Regular Meeting - Page 108 of 664
10 advertising sign locations that are in landscaped classified areas per state law. The Parties acknowledge that the Property located at 11350 Wright Road, in the City of Lynwood, in the County of Los Angeles (Assessor’s Parcel Number 6194 -031-007) is on a landscaped section of the Long Beach (710) Freeway and that Developer will need to pursue a relocation per Bus. & Professions Code, Section 5412. Therefore City desires to support and cooperate in the necessary relocation processes for permitting the construction and operation of billboards on the Property since the relocation allows the City to continued development in a planned manner for the general welfare and benefit of the public.

3.4 Timing of Project. Developer shall commence the Project within one-hundred forty (140 ) days after obtaining the Final Permits. “Commencement" of the Project is herein defined as the start of construction of the Billboard on the Site under the applicable Final Permits.

In the event Developer fails to commence such construction within one-hundred forty (140) days after obtaining the Final Permits, and after compliance with Section 5.3, either party hereto may terminate this Agreement by delivering written notice to the other party, and, in the event of such termination, neither party shall have any further obligation hereunder. However, if circumstances within the scope of Section 8.10 delay the commencement or completion of the Project, it would not constitute grounds for any termination rights found within this Agreement. In such case, the timeline to commence or complete the relevant task shall be extended in the manner set forth at Section 8.10. Notwithstanding the above, Developer shall, at al l times, comply with all other obligations set forth in this Agreement regarding construction of the Project on the Site. Developer shall also maintain and operate the Billboard at all times during the Term of this Agreement in compliance with the provisions set forth below:

3.4.1 Maintenance. Developer, for itself and its successors and assigns, hereby covenants and agrees to be responsible for the maintenance and repair of the Billboard, including but not limited to, the Digital Displays installed thereon, and all related on -Site improvements, easements, rights -of-way and, if applicable, at its sole cost and expense, including, without limitation, poles and lighting, in good repair, free of graffiti, rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, State, and local bodies and agencies having jurisdiction over t he Site.

Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal related to the Billboard; (ii) ongoing maintenance by the Developer of any access area to the Billboard to minimize dust caused by the Project; (iii) the adequate and complete removal or painting over of all graffiti within 48 hours of notice of such graffiti being affixed on the Billboard; and (iv) the repair, replacement and repainting of the structure and the Digital Displays as necessary to maintain such Billboard in good condition and repair.

3.4.2 Developer shall comply with the standards as adopted by the Outdoor Advertising Association of America, Inc. (OAAA), including but not limited to, the 0.3 foot - candles limitation over am bient light levels at 250 feet, and ensuring additional flexibility in reducing such maximum light level standard given the lighting environment, the obligation to have automatic diming capabilities, as well as providing the City’s Planning Manager or designee with a designated Developer employee’s phone number and/or email address for emergencies or complaints that will be monitored 24 hours a day/7 days per week.

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11 3.4.3 In the event ten percent (10%) or more of the digital sign face is not operating correctly or in the event of a malfunction, Developer shall immediately turn the entire display off, or show a one hundred percent (100%) black image on the display until corrected.

3.5 Changes and Amendments. Developer may determine that changes to the Development Approvals are appropriate and desirable. In the event Developer makes such a determination, Developer may apply in writing for an amendment to the Development Approvals to effectuate such change(s). The Parties acknowledge that City shall be permitted to use its inherent land use authority in deciding whether to approve or deny any such amendment request; provided, however, that in exercising the foregoing the City shall use reasonable discretion and shall not apply a standard different than that used in evaluating requests of other developers. Accordingly, under no circumstance shall City be obligated in any manner to approve any amendment to the Development Approvals. The City Manager shall be authorized to approve, without processing an amendment to this Agreement, any non-substantive amendment to the Development Approvals that does not: (i) adversely impact and/or diminish Developer’s or City’s rights as provided hereunder and (ii) affect and/or block the visibility of the Digital Display or accessibility to the Billboard or (iii) decreases the public benefits set forth herein. All other amendments shall require approval of the City Council.

Nothing herein shall cause Developer to be in default under this Agreement if it upgrades the Digital Display or the Billboard to incorporate newer technology or design; provided Developer shall secure all applicable ministerial permits to do so and such upgrade is consistent with the dimensions provided in this Agreement.

3.6 Reservation of Authority

3.6.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following Subsequent Land Use Regulations shall apply to the development of the Project:
(a) Processing fees and charges of every kind and nature imposed by Ci ty to cover the estimated actual costs to City of processing applications for amendments to the Development Approvals.
(b) Procedural regulations consistent with this Agreement relating to hearing bodies, petitions, applications, notices, findings, records, he arings, reports, recommendations, appeals and any other matter of procedure. Notwithstandi ng the foregoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice. (c) Changes adopted by the International Conference of Building Officials, or other similar body, as part of the then most current versions of the Uniform Building Code, Uniform Fire Code, Uniform Plumbing Code, Un iform Mechanical Code, or National Electrical Code, as adopted by City as Subsequent Land Use Regulations, if adopted prior to the issuance of a building permit related to an amendment to the Development Approval. Notwithstanding the foregoing, if such cha nge materially changes Developer's costs or otherwise materially impacts its performance hereunder, developer may terminate this Agreement upon ninety (90) days prior written notice.

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12 (d) Regulations that are not in conflict with the Development Approvals or this Agreement.
(e) Regulations that are in conflict with the Development Approvals or this Agreement, provided Developer has given written consent to the application of such regulations to the development of the Project.
(f) Applicable Federal, State, County, and multi-jurisdictional laws and regulations which the City is required to enforce against the Site or the development of the Project and that do not have an exception for existing signs or legal nonconforming uses.

3.6.2 Future Discretion of City. This Agreement shall not prevent City from denying or conditionally approving any application for a subsequent development approval on the basis of Subsequent Land Use Regulations.

3.6.3 Modification or Suspension by Federal, State, County, or Multi - Jurisdictional Law. In the event that applicable federal, State, County, or multi-jurisdictional laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, and there i s no exception for the legal nonconforming use, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such federal, State, County, or multi -jurisdictional laws or regulations, and this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce.

3.7 Regulations by Other Public Agencies. It is acknowledged by the parties that other public agencies not subject to control by City may possess authority to regulate aspects of the development of the Project as contemplated herein, and this Agreement does not limit the authority of such other public agencies. Developer acknowledges and represents that, in addition to the Land Use Regulations, Developer shall, at all times, comply with all applicable federal, State and local laws and regulations applicable to the Billboard and Site that do not have an exception for a legal nonconforming use. To the extent such other public agencies preclude development or maintenance of the Project and do not have an exception for a legal nonconforming use, Developer shall not be further obligated under this Agreement except as provided in Section 4.1. Notwithstanding the foregoing, if such action by another public agency materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice.

3.8 Public Improvements. Notwithstanding any provision herein to the contrary, City shall retain the right to condition any subsequent development approvals to require Developer to pay any required development fees, and/or to construct the required public infrastructure at such time as City shall determine.

3.9 Fees, Taxes Assessments. This Agreement shall not prohibit the application of customary fees, taxes, or assessments upon the Site.

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13 4. REMOVAL OF BILLBOARDS

4.1 Removal of Digital Display by Developer. If the Parties do not extend the Term of this Agreement pursuant to Section 2.4 above, or if Developer breaches this Agreement after notice and a right to cure as provided in Section 5.3, or if the Developer’s lease with the property owner otherwise terminates before the expiration of this Agreement or following the natural expiration of the Term or extensions thereof, Developer shall remove the Digital Display before lease termination and cancel this Agreement as provided in Section 2 .4. If Developer does not timely remove the Digital Display and other improvements as required by this Section, City may, but shall not be required to, remove or cause the removal of the Digital Display and related structures on the Premises at Developer' s expense and return the structures to the Developer or scrap them if Developer does not accept them . If Developer does not timely remove the Digital Display and other improvements as required by this Section and the City does not remove the sign, the City cannot operate the sign or allow anyone else to operate the sign. Developer shall reimburse City within thirty (30) days of receipt of an itemized accounting of the cost for such removal.

If the Lease terminates before the expiration of this Agreement, Developer will remove the Billboard concurrently with the Lease termination and cancel this Agreement as provided in Section 2.4. If Developer does not timely remove the Billboard and other improvements as required by this Section, City may, but shall not be required to, remove or cause the removal of the Billboard at Developer's expense and return the structures to the Developer or scrap them if Developer does not accept them . If Developer does not timely remove the Digital Display and other improvements as required by this Section and the City does not remove t he sign, the City cannot operate the sign or allow anyone else to operate the sign. Developer shall reimburse City within thirty (30) days of receipt of an itemized accounting of the cost for such removal.

4.2 City’s Right to Removal. Provided Developer is not in material breach hereof and subject to the notice and cure provisions in Section 5.3 herein, City will not have the right to: (i) remove the Digital Display, (ii) limit access to the Digital Display, or (iii) limit the visibility of the Digital Dis play, in any way, which is under their control. Should Developer breach this Agreement, City may only require removal of the Digital Display subject to Developer’s rights in Section 4.1.

5. REVIEW FOR COMPLIANCE.

5.1 Annual Review. The City may review this Agreement annually, at City's sole cost, to ascertain Developer’s good faith compliance with the terms of the Agreement ("Annual Review").

However, no failure on the part of City to conduct or complete an Annual Review as provided herein shall have any impact on the validity of this Agreement. Developer shall cooperate with City in the conduct of any Annual Review and timely provide the following information and documentation to City: (1) description of all complaints received regarding the Billboard that w ere unrelated to the content of any message displayed, (2) any updates to Developer's contact information, (3) status and amount of all payment obligations to the City required under this Agreement, (4) any easement or Lease changes that could in any way m aterially impact the City or Developer’s obligations under this Agreement, (5) any utility changes that could in any way materially impact the City or the City Council Regular Meeting - Page 112 of 664
14 obligations under this Agreement, and (6) any maintenance issues addressed or needing to be addressed that were raised by the City per the maintenance requirements herein.

5.2 City Rights of Access. Subject to City's execution of a permit to enter the Property, City’s officers, employees, agents and contractors, shall have the right, at their sole risk and expense, to enter the Site at all reasonable times and with as little interference as possible to the operation of the Billboard thereon, for the purpose of as suring compliance with this Agreement, conducting the annual review under this Section 5, as well as inspecting the construction, reconstruction, relocation, maintenance, repair and service of any public improvements or public facilities located on the Sit e, or to perform any rights of the City under Section 4.2 above. Any damage or injury to the Site or to the Billboard thereon resulting from such entry shall be promptly reported to the Developer to assess the proper repair procedure that the City shall so lely pay for, unless an emergency, where under the City can do a repair at the City’s sole expense and then report the damage and repair to the Developer . Notwithstanding the foregoing, or any other provision in this Agreement (including without limitation Section 4.2 above), City shall have no right to enter the Site unless and until City executes and delivers to Developer a permit to enter (except that this provision is not intended to interfere with the City's police powers to address any nuisance, dange rous condition, or other condition pursuant to the City's ordinances).

Notwithstanding anything to the contrary herein, in no event will City representatives ever climb up the pole of the Billboard during any inspection.

5.3 Procedure. Each party shall have a reasonable opportunity to assert matters, which it believes, have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non-Compliance" (“Notice”) specifying the grounds therefore and all facts demonstrating such non-compliance. The party receiving a Notice shall have thirty (30) days to cure or remedy the non -compliance identified in the Notice, or if such cure or remedy is not reasonably capable of being carried out to completion within such thirty (30) day period, to commence to cure or remedy the noncompliance and to diligently and in good faith prosecute such cure or remedy to completion. If the party receiving the Notice does not believe it is out of compliance, it may contest the Notice by responding in writing to said Notice within thirty (30) days after receipt of the Notice. If a response to the Notice has not been received in the offices of the party alleging the non -compliance within the prescribed time period, the Notice shall be conclusively presumed to be valid. If a Notice is contested, the parties shall, for a period of not less than fifteen (15) days after receipt of the response, seek to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event a cure or remedy is not timely effected or, if the Notice is contested and the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the fifteen (15) day period, the party alleging the non -compliance may thereupon pursue the remedies provided in Section 6. Neither party hereto shall be deemed in breach of this Agreement if the reason for non-compliance is due to a "force majeure" as defined in, and subject to the provisions of Section 8.10.

5.4 Certificate of Agreements Compliance. If, at the conclusion of an Annual Review or a Special Review, Developer is found to be in compliance with this Agreement, City shall, issue a Certificate of Agreement Compliance ("Certificate") to Developer stating that, after City Council Regular Meeting - Page 113 of 664
15 the most recent Annual Review or Special Review, and based upon the information known or made known to the City Manager and City Council: (1) this Agreement remains in effect and (2) Developer is in compliance. The Certificate, whether issued after an Annual Review or Special Review, shall be in recordable form and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer may record the Certificate with the County Recorder. Additionally, Developer may, at any time, request from the City a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Site.

6. DEFAULT AND REMEDIES

6.1 Termination of Agreement.

6.1.1 Termination of Agreement for Material Default of Developer. City, in its discretion, may terminate this Agreement for any material failure of Developer to perform any material duty or obligation of Developer hereunder or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default" or "breach") after complying with the notice and cure period set forth in Subsection 5.3. In the event of a termination by City under this Section

6.1.1, Developer acknowledges and agrees that City will retain all Fees paid to City and accrued up to the date of the termination. However, this Section 6.1.1 shall have no effect on Developer’s rights as set forth in section 4.1.

6.1.2 Material Default of City. Developer, in its discretion, may terminate or seek any other remedy it deems appropriate for any material failure of City to perform any material duty or obligation of City hereunder or to comply in good faith with the term of this Agreement; provided, however, Developer may seek such remedy pursuant to this Section only after following the procedure set forth in Section 5.3.

6.1.3 Rights and Duties Following Termination. After termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to ha ve been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement that occurred prior to said termination, (iii) Developer's obligation to remove the Digital Display pursuant to Section 4.1 or (iv) any continuing obligations to indemnify the other party.

7. INSURANCE, INDEMNIFICATION AND WAIVERS.

7.1 Insurance.

7.1.1 Types of Insurance.
(a) Liability Insurance. Beginning on the Effective Date hereof and until completion of the Term, Developer shall, at its sole cost and expense, keep or cause to be kept in force for the mutual benefit of City, as additional insured, and Developer, comprehensive broad form general liability insurance against claims and liabilities covered by the indemnification provisions of section 7.2. Developer has agreed to indemnify City hereunder to the extent of the City Council Regular Meeting - Page 114 of 664
16 liability insurance coverage with respect to its use, occupancy, disuse or c ondition of the Site, improvements or adjoining areas or ways, affected by such use of the Site or for property damage, providing protection of a least Two Million Dollars ($2,000,000) for bodily injury or death to any one person, at least Four Million Dollars ($4,000,000) for any one accident or occurrence, and at least One Million Dollars ($1,000,000) for property damage. Developer shall also furnish or cause to be furnished to City evidence that any contractors with whom Developer has contracted for the performance of any work for which Developer is responsible maintains the same coverage required of Developer.
(b) Worker’s Compensation. Developer shall also furnish (or cause to be furnished) to City evidence that Developer and any contractor with whom Developer has contracted for the performance of any work for which Developer is responsible hereunder maintains and carries worker's compensation insurance as required by law. (c) Insurance Policy Form, Sufficiency, Content and Insurer. All insurance required by express provisions hereof shall be carried only by responsible insurance companies qualified to do business by California with an AM Best Rating of no less than "A-". All such policies shall be non-assignable and shall contain language, to the extent obtainable, to the effect that (i) the insurer waives the right of subrogation against City and against City's agents and representatives except as provided in this section; (ii). Developer shall furnish City with certificates evidencing the insurance and City shall be named as an additional insured on all liability policies of insurance required to be procured by the terms of this Agreement.

7.2.1 Failure to Maintain Insurance and Proof of Compliance. Developer shall deliver to City, in the same manner required for notices, copies of certificates of all insurance policies required of each policy within the following time limits:
(a) For insurance required above, within seven (7) days after issuance of the Final Permits; and
(b) The City can request to see updated copies of the current certificates of all insurance policies required. The City reserves the right to obtain copies of the entire insurance policy, including endorsements.

If Developer fails or refuses to procure or maintain insurance as requir ed hereby or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, after complying with the requirements of Section 5.4, the City may view such failure or refusal as a default hereunder.

7.2 Indemnification

7.2.1 General. Developer shall indemnify City, and its respective officers, employees, and agents against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities (herein "claims or liabilities") that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the work, operations, or activities City Council Regular Meeting - Page 115 of 664
17 of Developer, its agents, employees, subcontractors, or invitees, hereunder, upon the Site . The City will promptly notify the permittee of any such claim, action, or proceeding against City and will cooperate fully in the defense. To this end:
(a) Developer will defend any action or actions filed in connection with any of said claims or liabilities covered by the indemnification provisions herein and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith, which attorneys will be the attorneys hired by the insurance company where insurance coverage applies. (b) Developer will promptly pay any judgment rendered against the City or its respective officers, agents, or employees for any such claims or liabilities arising out of or in connection with such work, operations, or activities of the Developer hereunder, and Developer agrees to save and hold the City and its respective officers, agents, and employees harmless therefrom.

7.2.2 Exceptions. The foregoing indemnity shall not in clude claims or liabilities arising from the sole negligence or willful misconduct of City, its officers, agents, or employees.

7.2.3 Additional Coverage. Without limiting the generality of the foregoing, Developer’s indemnity obligation shall include any liability arising by reason of:
(a) Any accident or other occurrence in or on the Site causing injury to any person or property whatsoever caused by Developer.
(b) Any failure of Developer to comply with performance of all of the provisions of this Agreement.
(c) Any harm, delays, injuries or other damages incurred by any party as a result of any subsurface conditions on the Site caused solely by Developer, including but not limited to, the presence of buried debris, hazardous materials, hydrocarbons, or an y form of soil contamination.

7.2.4 Loss and Damage. Except as set forth below, City shall not be liable for any damage to property of Developer or others located on the Site, nor for the loss of or damage to any property of Developer or others by theft or otherwise. Except as set forth below, City shall not be liable for any injury or damage to persons or property resulting from fire, explosion, steam, gas, electricity, water, rain, dampness or leaks from any part of the Site or from the pipes or plumbing, or from the street, or from any environmental or soil contamination or hazard, or from any other latent or patent defect in the soil, subsurface or physical condition of the Site, or by any other cause of whatsoever nature. The foregoing two (2) sentences shall not apply: (i) to the extent City or its agents, employees, subcontractors, invitees or representatives cause such injury or damage when accessing the Site, (ii) to the extent covered in any permit to enter executed by the City, or (iii) to negligent or willful acts or omissions of the City, its employees, officials, representatives or agents.

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18 7.2.5 Period of Indemnification. The obligations for indemnity under this Section

7.2 shall begin upon the Effective Date and shall survive termination of this Agreement, provided the actions or omissions subject to indemnification above shall have occurred prior to termination.

7.3 Waiver of Subrogation. Developer and City each agrees that it shall not make any claim against, or seek to recover from the other or its agents, servants, or employees, for any loss or damage to it or to any person or property relating to this Project, except as specifically provided hereunder which includes but is not limited to, a claim or liability arising from the sole negligence or willful misconduct of the City, its officers, agents, or employees.

8. MISCELLANEOUS PROVISIONS.

8.1 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk within 10 days of execution, as required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation, shall be similarly recorded.

8.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties with respect to the subject matter set forth herein, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representatio ns, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

8.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then that term, provision, covenant or condition shall be stricken and the remaining portion of this Agreement shall remain valid and enforceable if that stricken term, provision, covenant or condition is not material to the main purpose of this Agreement, which is to allow the Project to be permitted and operated and to provide a public benefit to the City; otherwise, this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld.

8.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California.

This Agreement shall be construed as a whole according to its fair language and common meaning, to achieve the objectives and purposes of the parties hereto. The rule of construction, to the effect that ambiguities are to be resolved against the drafting party or in favor of the non -drafting party, shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

8.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

8.6 Singular and Plural. As used herein, the singular of any word includes the plural.

8.7 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

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19 8.8 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.

8.9 No Third-Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the Parties, as well as their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.

8.10 Force Majeure. Notwithstanding anything to the contrary herein, neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other acts of God, fires, rains, winds, wars, terrorism, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government actions and regulations (other than those of the City), court actions (such as restraining orders or injunctions), or other causes beyond the party's reasonable control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years and further provided that if such delay is longer than six (6) months, Developer may terminate this Agreement upon written notice to City.

8.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or sub sequent performance of the covenants to be performed hereunder by the benefited party.

8.12 Counterparts. This Agreement may be executed by the parties in duplicate counterparts, which counterparts shall be construed together and shall have the same effect as if all of the parties had executed one and the same instrument.

8.13 Litigation. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Los Angeles, State of California, or such other appropriate court in said county. Service of process on City shall be made in accordance with California law. Se rvice of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. In the event of any action between City and Developer seeking enforcement of any of the terms and cond itions to this Agreement, the prevailing party in such action shall be awarded, in addition to such relief to which such party is entitled under this Agreement, its reasonable litigation costs and expenses, including without limitation its expert witness f ees and reasonable attorneys' fees.

8.14 Covenant Not To Sue. The parties to this Agreement, and each of them, agree that this Agreement and each term hereof is legal, valid, binding, and enforceable. The parties to this Agreement, and each of them, hereby covenant and agree that each of them will not commence, maintain, or prosecute any claim, demand, cause of action, suit, or other proceeding against any City Council Regular Meeting - Page 118 of 664
20 other party to this Agreement, in law or in equity, which is based on an allegation, or assert in any such action, that this Agreement or any term hereof is void, invalid, or unenforceable.

8.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the developme nt of the Project is a private activity, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property, on the one hand, and the holder of a legal or equitable interest in such property on the other hand. City agrees that by its approval of, and entering into, this Agreement, that it is not taking any action which would transform this private Project into a "public work" project, and that nothing herein shall be interpreted to convey upon Developer any benefit which would transform Developer's private project into a public work project, it being understood that this Agreement is entered into by City and Developer upon the exchange of consideration described in this Agreement, including the Recitals to this Agreement which are incorporated into this Agreement and made a part hereof, and that City is receiving by and through this Agreement the full measure of benefit in exchange for the burde ns placed on Developer by this Agreement.

8.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement.

Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement.

8.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by City of its power of eminent domain or Developer's right to seek and collect just compensation or any other remedy available to it.

8.18 Amendments in Writing/Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of development agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. Non -substantive amendments to the Development Approvals may be approved without amending this Agreement as provided in Section 3.5.

8.19 Corporate Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party, if not an individual, is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this City Council Regular Meeting - Page 119 of 664
21 Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound.

8.20 Notices. All notices under this Agreement shall be effective when delivered by United States Postal Service mail, registered or certified, postage prepaid return receipt requested; and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing by providing notice to the other party:

To City: City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
Attn: City Manager
With Copy to: Alvarez-Glasman & Colvin
13181 Crossroads Parkway North, Suite 400
City of Industry, CA 91746
Attn: Noel Tapia, City Attorney

To Developer Bulletin Display, LLC
Official Land Lease Notice
3127 E. South Street, Suite B
Long Beach, CA 90805
Attn: Mark A. Kudler

8.21 Nonliability of City Officials. No officer, official, member, employee, agent, or representatives of City shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative.

8.22 No Brokers. City and Developer represent and warrant to the oth er that neither has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorneys' fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder's fee in connection with this Agreement or arising out of agreements by the indemnifying party to pay any commission or finder's fee.

8.23 No Amendment of Lease. Nothing contained in this Agreement shall be deemed to amend or modify any of the terms or provisions of the Lease. Nothing contained in this Agreement shall constitute or be deemed to constitute a limit on any of Developer's obligations under the Lease.

8.24 Counterparts. This Agreement may be signed in any number of duplicate counterparts, each of which, when combined, shall constitute one and the same document.

(Signatures on Next Page)
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22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above.

“City”

CITY OF LYNWOOD

Date:______________ ____________________________________ Jorge Casanova , Mayor

ATTEST:

_______________________________
Maria Quinonez, City Clerk

APPROVED AS TO FORM

_______________________________
Noel Tapia, City Attorney

“Developer”

BULLETIN DISPLAYS, LLC

Date:______________ ____________________________________ Its: Mark A. Kudler

[Principle Signatures to be Notarized]

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23 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
(See Following Page)

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24 11104-06 Wright Rd. Lynwood, CA 90262; also known as Los Angeles County Assessor’s No. 6194-029-006

LEGAL

PARCEL 1,
The Southerly 80 feet of the Northerly 140 feet of the following described land:

That portion of Lot 4 o f the Downey and Hellman Tract, in the City of Lynwood, as per map recorded in Book 3, Page 31 of Miscellaneous Records, in the Ottice of the county Recorder of said County, together with that portion of the Rancho San Antonio, in said City, County and State, described as follows:

Beginning at a point in the westerly line of the Los Angeles County Flood Control District, right-of-way, as per deed recorded in Book 7077, Page 176 of Deeds, in said County Recorder’s office, distant thereon North 6° 55’ 46" East, 100.45 feet from the intersection thereof with the North line of the land described in the deed to Ebeneser Burr, recorded in Book 11698 Page 101 of Official Records in said County Recorder’s Officer; thence north 76° 47' 30” West, 106,13 feet to the true point or beginning; thence North 5° 21’ 07” West 81.00 feet to the b eginning of a curve, concave We sterly, having a radius of 2890,00 feet: thence Northerly along said curve, through an angle of 10° 13' 45", an arc distance of 515,96 feet to a point on the South line of Lot 4 of the Downe y and Hallman Tract, as per map recorded in Book 3, Page 31 of Miscellaneous Records, in said Office at the County Recorder, distant thereon south 83° 48' 03" East l71,01 feet from the intersection of said South line with the East line of Wright Road, 50,0o feet wid e, as shown on map of Tract No. 10634, recorded in Book 165, Pages 40 to 4 2, inclusive of Maps, records of said County; thence continuing Northerly along said curve to a line which bears North 74° 51' 26" East, from a point in the southerly line of said Lot 4, that is distant thereon South 83° 46’ 03” East 67.35 feet from the East line of said Wright Road thence South 74° 51’ 26” West 158,72 feet, more or less, to the East line of said Wright Road; thence along said East line, South 15° 08’ 34” East 313.73 feet, more or less, to an angle point therein; thence continuing along said East line, South 19° 08’ 58” West 231.74 feet, more or less, to a point that is distance thereon North 19° 08’ 58” East 131.00 feet from the most Northwesterly corner of the land described in said deed to Ebenezer Burr; thence south 76° 47' 30" East 265.62 feet, more or less, to the true point of beginning,

PARCEL 2:

An easement for building and party wall over the Nor therly six and one -halt inches of the following described land:

The Southerly 100 feet of the Northerly 240 feet of that portion of Lot 4 of the Downey and Hellman Tract, in the City of Lynwood, as per map recorded in book 3, Page 31 of Miscellaneous Records in the Office of the County Recorder of said County, together with that portion of the Rancho San Antonio, in the said City, County and State, descried as follows:

Beginning at a point in the Westerly line of the Los Angeles County Flood Control District, Right-of-Way, as per map recorded in B ook 7077, Page 176 of Deeds, in said county Recorder ’s Office, distant thereon North 6° 55’ 45" East, 100,45 feet from the intersection thereof with the North line of the land described in the Deed to Eben ezer Burr , re corded in Book 11 698, Page 101 o f Official Re cords, in said County Recorder’s Office; then North 76° 47’ 30" West, 106.13 feet to the true point c urve concave Westerly, having a radius of 2890,00 feet; thence Northerly along said curve though an angle of 10° 13' 45”, an arc distance of 515.96 feet to a point on the South line of Lot 4 of the Downey and Hellman Tract, as per map thereof recorded in Book 3, Page 31 of Miscellaneous Record s, in said office of th e Recorder, distant City Council Regular Meeting - Page 123 of 664
25 thereon South 83° 48’ 03” East 171.01 feet from the intersection of said South line with the East line of Wright Road, 50.00 feet wide, as shown on Map of Tract No. 10634, recorded in Book 165, Pages 40 to 42, inclusive of Maps, Records of said County; thence continuing Northerly along said curve to a line which bears North 74° 51’ 26" East from a point in the Southerly line of said Lot 4, that is distant thereon South 83° 48' 03" East 67,35 feet from the East line of said Wright Road; thence South 74° 51’ 26” West 158. 72 feet, more or less, to the East line of said Wright Road; thence along said East line, South 15° 08’ 34” East 313.73 feet, more or less, to an angle point therein; thence continuing along said East line, south 19 ° 08’ 58” West 231,24 feet, more or less, to a point that i s distant thereon North 19° 08’ 58” East 131.00 feet from the most Northwesterly corner of the land described in said Deed to Ebenezer Burr; thence south 76° 47’ 30" East 265.62 feet, more or less, to the true point of beginning.

That portion of the Rancho San Antonio, in said City, County and State, described as follows:

Commencing at a point in the Westerly line of the Los Angeles County Flood Control District, right of way, as per deed recorded in Book 7077, page 176 of Deeds, in said county Recorder's office, distant thereon N 6° 55' 46" E, 100.45 feet from the intersection thereof with the North line of the land described in the deed to Ebeneser Burr, recorded in Book 11698, page 101 of Official Records, in said County Recorder's office; thence N 76° 47' 30" W, 106.13 feet: thence N 5° 21' 07" W 81,00 feet to the beginning of a curve, concave Westerly, having a radius of 2890,00 feet; thence Northerly along said curve, through an angle of 10° 13’ 45", an arc distance of 515,96 feet to a point on the south line of Lot 4 of the Downey and Hellman Tract, as per map recorded in Book 3, Page 31 of Miscellaneous Records, in said office of the Recorder, distant thereon S 83° 48' 03” E 171,01 feet from the int ersection of said South line with the East line o! Wright Road, 50.00 feet wide, as shown on map of Tract No. 10634, recorded in Book 165, pages 40 to 42, inclusive of Maps, records of said county; thence continuing Northerly along said curve to a line which bears N 74° 51’ 26" E, from a point in the Southerly line of said Lot 4, that is distant thereon S 83° 48’ 03” E 67,35 feet from the East line of said Wright Road; thence Southerly along said curve having a radius of 2890,00 feet through an angle of 10° 13' 45", an arc distance of 60.01 feet to a lin e parallel with and distant Southerly 60,00 feet, measured at right angles from said line which bears N 74° 51' 26" E, and being the TRUE POINT OF BEGINNING of this description ; thence along said parallel line S 74 ° 51’ 26" W, 10.00 ; thence Southerly in a direct line to a poin t in a line parallel with said last mentioned parallel line and distant Southerly 80.00 feet measured at right angles therefrom, and being distant along said last mentioned parallel line S 74 ° 51’ 26” W, 17.07 feet from said curve having a radius of 2890.00 feet, thence along last mentioned parallel line N 74° 51’ 26" E, 17.07 feet to said curve; thence Northerly along said curve an arc distance of 80.00 feet to said TRUE POINT OF BEGINNING.

There shall be no abutter’s rights of access appurtenant to the abovedescribed real property in and to the adjacent State Freeway.

SUBJECT TO THE EXCEPTION THEREFROM, all oil, oil rights, minerals, mineral right s, natural gas, natural gas rights, and other hydrocarbons by whatso ever name known that may b e within or under the herein conveyed parcel of land and the rights thereto, together with certain other conditions, as excepted in deed (State Parcel 61657), to the state of California recorded May 28, 1971, in Book 05072, page 2 59 of official Records in said office.

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26 EXHIBIT B

SITE PLAN

(See Following Page)
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27 City Council Regular Meeting - Page 126 of 664
28 EXHIBIT C

ELEVATIONS

(See Following Page)
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29 City Council Regular Meeting - Page 128 of 664
30 EXHIBIT D

FORM FOR THE ANNUAL STATEMENT OF ANNUAL NET REVENUES

(See Following Page)

Form is an example and some descriptions can change
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31 City Council Regular Meeting - Page 130 of 664
Agenda Item # 15.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

John Yonai, Interim Director of Community Development

SUBJECT:

CONSIDERATION OF ORDINANCE NO._____ TO APPROVE A DEVELOPMENT

AGREEMENT (DA) BETWEEN THE CITY OF LYNWOOD AND BULLETIN

DISPLAYS, LLC FOR THE DEVELOPMENT OF A NEW, BACK-TO-BACKDIGITAL BILLBOARD AT 11350 WRIGHT ROAD, LYNWOOD ASSESSOR’S PARCEL NUMBER 6194-031-007
Recommendation:

1. Conduct a public hearing, receive public testimony, and after discussion, vote on the matter at hand; and

2. Staff recommends that the City Council introduce for first reading, ready by title only, waive further reading, the attached Ordinance No. ___ entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

FOR APPROVAL OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF LYNWOOD AND

BULLETIN DISPLAYS, LLC FOR THE DEVELOPMENT OF A NEW, BACK-TO-BACK DIGITAL BILLBOARD AT 11350 WRIGHT ROAD, LYNWOOD (ASSESSOR’S PARCEL NUMBER 6194-031-007)”

Background:

Bulletin Displays, LLC (herein referred to as the “Applicant”) has submitted a Site Plan Review application (SPR) to construct a new 75-foot tall, as measured from the apex of the adjoining freeway, V-structure, digital billboard (herein referred to as the “billboard”) consisting of a total billboard sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboard sign face). The proposed 75 feet is measured from the base of the sign to the top of the 14-foot sign face. The applicant is proposing a unique billboard artwork beyond the sign display. Signage aesthetics as described above will be further reviewed by staff and the matter may be returned to the Planning Commission if Bulletin Display, LLC’s proposed billboards at 11104-06 Wright Road and 11350 Wright Road are drastically different from the other. Staff is recommending that the billboards match the exterior design of the other similar to the color rendering portrayed for the 11104-11106 Wright Road location.

The project plans reflect a V-structure sign and the applicant is requesting to reserve the right to exercise an option to install either their proposed V-structure sign or a back-to-back design and sign display.

The subject billboard is proposed to be supported by a single supporting post immediately adjacent and west of the Interstate 710 Freeway corridor. The proposed billboard is proposed to be located at 11350 Wright Road (APN
6194-031-007
) and approximately 550 feet southwest of the Wright Road and Martin Luther King Jr.

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Boulevard intersection. A note for reference, a smaller parcel (APN 6194-031-014) with a varying width of 29 to 44 feet lies between the subject site and the I-710 Freeway (refer to image below) The subject site is also characterized as a generally rectangular-shaped, non-sloping site that maintains one (1) industrial structure operating a welding shop. The site is zoned (M) Manufacturing with a General Plan’s Manufacturing land use designation.

PROJECT
Pursuant to Lynwood Municipal Code Section 25-70-14 “Off-Site Outdoor Advertising Displays” of the Lynwood Municipal Code, proposed off-site outdoor advertisement billboards and DAs are subject to City Council decision. A DA (Attachment A) was prepared for the subject, new digital billboard located at 11350 Wright Road (APN 6194-031-007) and immediately adjacent to and west of the I-710 Freeway as shown the below aerial map (Attachment D).

The project site is comprised of one (1) parcel with a lot area of approximately 66,188 square feet or approximately 1.5 acres. The project site is located in Manufacturing (M) zone, wherein the Lynwood Municipal Code specifically and conditionally permit off-site outdoor advertising displays (billboards) by the process described in Section 25-70-14.

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The new electronic billboard will consist of V-structure (or “V” shaped) or flat double sided displays and will be visible from both north and south bound I-710 Freeway lanes. The new billboard’s size, design, lighting, messages and timing of messages will be consistent with the parameters described in DA. The Applicant shall comply with State law regarding the limitation of light and glare or such other standards as adopted by the Federal Highway Beautification Act and the State's Outdoor Advertising Act. Standards include, but are not limited to, the

0.3 foot-candles limitation over ambient light levels ensuring additional flexibility in reducing such maximum light level standard given existing conditions, including the obligation to incorporate automatic dimming capabilities.

Each message on the new digital billboard displays shall be displayed for at least eight (8) seconds.

Standard City conditions of approval and site requirements are included as findings confirmed in the positive from section Lynwood Municipal Code 25-130-5.

Environmental Determination
Pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15063 of the California Environmental Quality Act (CEQA) guidelines, the project completed an Initial Study review and a Mitigated Negative Declaration (MND) was completed pursuant to Section 15064(f)(2) of CEQA guidelines. The impacts associated with a Mitigated Negative Declaration was prepared as the conclusions of the Initial Study determined that the project may cause potentially significant impacts on the environment without mitigation.

Discussion and Analysis:

State Law allows cities to enter into DAs with private parties. The DA is a legal, binding contract between a City and any person or entity having a legal or equitable interest in a property. The agreement must clearly outline conditions, terms, restrictions and requirements. Once a DA is approved by the City Council, the rules of development for that property cannot change even if the zoning code or other development codes are changed.

1. Term - The Agreement shall continue in full force and effect for thirty (30) years from the effective date; and this Agreement may be extended by mutual agreement between the parties at the end of the initial term.

2. Fees - The potential impacts of the Development on the City and surrounding community are difficult to identify and calculate. As such, the Applicant and City agree that a minimal annual development fee of $75,000.00 be paid by Applicant to City in years 1 to 10, $100,000.00 to be paid by Applicant to City in years 11 to 20 and $120,000.00 to be paid by Applicant to City in years 21 to 30 will be paid to address and mitigate potential impacts. Applicant development fee shall become due and payable upon the Digital Display becoming operational. In addition to the minimal annual fee payment, the City will receive the difference between 10% of net annual revenue and the minimal annual fee. Therefore there is a potential, subject to advertising success, that the City will receive additional fees above the annual amounts noted above.

3. Public Benefits - The digital billboard is expected to generate the following public benefits: City’s Display Time on New Digital Billboard. To the extent that commercial advertising time on the Billboard is unsold and available, Applicant shall provide up to five percent (5%) of total advertising time, free of charge to City, for public service City Council Regular Meeting - Page 133 of 664
announcements of noncommercial city-sponsored civic events (“City Messages”). City will be responsible for appropriate artwork for the digital displays pursuant to art specifications as specified by Applicant from time-to- time.

Fiscal Impact:

The City shall annual receive in years 1 to 10 $75,000 or a total of $750,000, years 11 to 20 $100,000 or a total of
$1,000,000, and
years 21 to 30 $120,000 or a total of $1,200,000.

Over the 30 year term the City will generate approximately $2,950,000.

Coordinated With:

City Attorney’s Office
ATTACHMENTS:

Description
Attachment A - Ordinance
Attachment B - Location Map
Attachment C - Aerial Map
Attachment D - Development Agreement
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1 ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

FOR THE APPROVAL OF THE DEVELOPMENT AGREEMENT

BETWEEN THE CITY OF LYNWOOD AND BULLETIN DISPLAYS, LLC

FOR THE DEVELOPMENT OF A NEW BACK-TO-BACK DIGITAL
BILLBOARD AT 11350 WRIGHT ROAD, L YNWOOD (ASSESSOR’S
PARCEL NUMBER 6194-031-007)

WHEREAS, the Applicant, Bulletin Displays, LLC and (“Applicant”) submitted a request to allow the installation and operation of a new, back-to-back digital billboard at 11350 Wright Road, Lynwood, Assessor’s Parcel Number 6194-031-007 (“Subject Property”);

WHEREAS, On May 10, , 2022, the City Planning Commission, by Resolution No. 3445 approved the proposed billboard 80 foot tall (as measured from the base of the sign to the top of the 14 -foot sign face) , V-shaped, digital billboard consisting of a total sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboard sign face). The subject billboard is proposed to be supported by a single supporting post;

WHEREAS, the Applicant has negotiated a Development A greement (DA) and attached hereto as Exhibit “A”. An approved Development Agreement between the City and the Applicant, Bulletin Displays, LLC , will offer the City the ability to extract improvements or benefits for the city that are not possible by way of a site plan review;

WHEREAS, On May 10, 2022, the City Planning Commission, by Resolution No 3445, approved an Initial Study review and a Mitigated Negative Declaration (MND) No. 2021-45 in compliance with the State California Environmental Quality Act (CEQA) guidelines, California Code of regulations, Title 14, Chapter 3, sections: 15063 and . 15064(f)(2). The City Council adopts the findinds and CEQA approval of the Planning Commission as its CEQA determination for consideration of the Development Agreement;

WHEREAS, On May 10, 2022, the City Planning Commission adopted Resolution 3445 approving Site Plan Review No. 2021-45, Mitigated Negative Declaration No. 2021- 45, and Development Agreement;

WHEREAS, on May 10, 2022, the Planning Commission held a duly noticed and advertised public hearing to receive oral and written testimony related to the Development City Council Regular Meeting - Page 135 of 664
2 Agreement and suffiently considered all testimony presented to them in order to recommend approval of the DA to the City Council.

WHEREAS, the Planning Commission recommends the adoption the Bulletin Displays, LLC ’s billboard project’s Mitigated Negative Declaration No. 20 21-45 and Mitigation Monitoring Program; and

WHEREAS, the Planning Commission, upon giving the required notice did, on the 10th day of May 2022, conduct a duly-advertised public hearing as prescribed by law to consider Site Plan Review No. 2021-45, Mitigated Negative Declaration No. 2021-45, and Development Agreement, at which time evidence, both oral and written, including a staff report were presented and received, and comments were heard from all interested parties appearing in the matter.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lynwood as follows:

SECTION 1. The City Council hereby finds and determines that The Development Agreement is consistent with the City General Plan and the “Manufacturing” general plan designation. The Findings of Approval associated with the Planning Commission Resolution No 3445, Site Plan Review No. 2021 -45 and Mitigated Negative Declaration No. 2021-45, respectively, adopted by the Planning Commission on May 10, 2022 are adopted herein by reference as further support for approval of the Development Agreement.

SECTION 2. State Law allows cities to enter into a Development Agreements with private parties. The Development Agreement is a legal and biding contract between a city and any person or entity having a legal or equitable interest in a property . The agreement provides the developer with certain vested rights to develop the property in accordance with the zoning laws and entitlements in effect on the date of the Development Agreement for a specifi period of time. The DA will termin ate in three (3) yeard if the proejcts is not completed.

SECTION 4. Once a Development Agreement is approved by the L ynwood City Council, the rules of development for that property cannot change even if the zoning code or other development codes are changed.

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3 SECTION 5 . Based on the above recitals, the staff report accompanyi ng this Ordinance and public comments, the City Council of the City of Lynwood hereby finds the project to be consistent with the goals, policies, and objectives of the land use element, the land use plan of the City’s general plan and that the project will n ot adversely affect the surroundings properties.

SECTION 6. The City Council of the City of Lynwood hereby approves the Development Agreement to allow the proposed billboard 80 foot tall (as measured from the base of the sign to the top of the 14 -foot sign face), V -shaped, digital billboard consisting of a total sign area of 1,344 square feet (14’ x 48’ or 672 square feet per billboard sign face) . The subject billboard is proposed to be supported by a single supporting post subject to the conditions per Resolutions No.3445 (Site Plan Review No. 2021-45 and Mitigated Negative Declaration No. 2021-45)

SECTION 8. This Ordinance shall take effect on the thirty -first (31st) day after its adoption.

Section 9. The City Clerk shall certify as to the adoption of this Ordinance and shall cause the Ordinance to be posted or publishes as required by law.

PASSED, APPROVED AND ADOPTED this 19th day of July, 2022.

________________________________
Jorge Casanova
Mayor

ATTEST:

_______________________________ ________________________________ Maria Quiñonez Ernie Hernandez
City Clerk City Manager

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4 APPROVED AS TO FORM:

_______________________________
Noel Tapia
City Attorney

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5 STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

AYES:

NOES:

ABSTAIN:

ABSENT:

_______________________________________
Maria Quiñonez, City Clerk

STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )

_______________________________________
Maria Quiñonez, City Clerk

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ATTACHMENT B

LOCATION MAP

Project Location: 11350 Wright Road

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ATTACHMENT C

AERIAL MAP

Project Location: 11350 Wright Road

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1 Recording Requested by and
When Recorded Return to:

CITY OF LYNWOOD
11330 Bullis Road
Lynwood, CA. 90262
Attn: City Clerk
[Exempt From Recording Fee Per Gov. Code § 27383]
DEVELOPMENT AGREEMENT NO.

This Development Agreement (“Agreement”) is entered into this _____day of _________, 2022, (“Effective Date”) by and between the CITY OF LYNWOOD, a California municipal corporation (“City”) and Bulletin Displays, LLC (“Developer”).

B. Developer has a long -term leasehold interest (“ Site”) in a portion of the real property commonly known as 11350 Wright Road, in the City of Lynwood, in the County of Los Angeles (Assessor’s Parcel Number 6194 -031-007) (the “Property”), as more specifically described in Exhibit “A”, which Property is approximately 1.53 acres in size and is improved with a commercial building, along with parking, landscaping and related improvements. Developer’s Site is located near the eastern boundary of the Property and is adjacent to and visible from the 710 Freeway, as depicted on each Site Plan attached as Exhibit “B”.

C. Developer seeks to install on the Site a 75 foot tall billboard (“Billboard”) , as measured from the apex of the adjacent 710 Freeway to the top of the display face, containing a double-sided L.E.D. display (“Digital Display”), each face measuring 14 feet x 48 feet from the base of the display as depicted on Exhibit “C”, pursuant to the terms of this Agreement. In this Agreement, the Billboard and each Digital Display are somet imes referred to collectively as “Billboard” and sometimes the “Digital Display” is referred to specifically.

D. In exchange for the City’s approval to install the Billboard and the Digital Display thereon, and in order to mitigate any impacts associated with the installation, Developer agrees to:

1. Pay to the City a development fee and provide other public benefits as set forth in Section 2.5 below, and
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2 2. Install an illuminated sign on the Billboard naming the City of Lynwood at no cost to City with the final design agreed to between the City and Developer; and

3. Agree not to advertise on the Digital Display any content contrary to the provisions of Section 2.7 below.

E. The Site is located in the City’s Manufacturing zone and has a General Plan designation of Industrial.

F. The Project, as defined below, requires a Site Plan approval, which Developer is pursuing through a duly-filed sign review approved by the City concurrently herewith.

G. Developer and City Agree that this Agreement should be approved and adopted to memorialize the expectations of City and Developer as more particularly described herein.

K. On _____________, 2022, the City Council held the second reading of Ordinance No. __________, hereby approving this Agreement.

L. City finds and determines that all actions required of City precedent to approval of this Agreement by Ordinance No. _________of the City Council have been duly and regularly taken.

COVENANTS
NOW, THEREFORE, in consideration of the above recitals (which are incorporated into this Agreement as if set forth in full herein) of the mutual covenants hereinafter contained and for other good and valuable consideration, the r eceipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS

1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter City Council Regular Meeting - Page 143 of 664
3 capitalized, when used in the Agreement. In Addition to the terms defined in the Recitals above, the defined terms include the following:

1.1.1 “Agreement” means this Development Agreement and all attachments and exhibits hereto.

1.1.3 “Billboard” and “Digital Display” shall have the meanings ascribed in the Recital above

1.1.4 “City” means the City of Lynwood, a California municipal corporation and a general law city.

1.1.5 “City Council” means the City Council of the City.

1.1.6 “Developer” means Bulletin Displays, LLC, duly existing and operating and its successors and assigns, as further described in Section 8.20.

1.1.7 “Development Approval” means the approved Project, based on the approval of the City Council, as further described at Recital G and Section 3.3 herein.

1.1.9 “Final Permits” shall be when all approvals necessary to construct the Billboard and the Digital Displays have been obtained from all applicable governmental and quasi- governmental authorities, including but not limited to any and all permits and approvals required by: (i) the Lynwood Municipal Code; (ii) the California Department of Transportation (“Caltrans”) pursuant to the California Outdoor Advertising Act; (iii) applicable utilities affected by the construction; and (iv) CEQA and the State CEQA Guidelines.

1.1.10 “Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of City, including, but not limited to, the City’s General Plan and Municipal Code, which govern the development and use of the Site, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of the Billboard, the provisions for reservation or dedication of land for public purposes, and the design, impro vement and construction standards and specifications applicable to the Development of the Billboard at the Site which are in full force and effect as of the Effective City Council Regular Meeting - Page 144 of 664
4 Date of this Agreement. Land Use Regulations shall also include National Pollutant Discha rge Elimination System (“NPDES”) regulations, to the extent applicable.

1.1.11 “Lease” means the agreement between Developer and the Property owner granting Developer the legal right to install, operate and maintain the Billboard and Digital Display at the Site.

1.1.13 “Project” means the installation, operation and maintenance of the Digital Display on the Billboard on the Site, all in accordance with the Development Approvals, and this Agreement.

1.1.14 “Site” shall have the meaning ascribed in Recital “B”, above.

1.1.15 “Subsequent Land Use Regulations” means any Land Use Regulations that take effect after the Effective Date of this Agreement which may govern the Project.

1.1.16 “Term” shall have the meaning provided in Section 2.4, unless earlier terminated as provided for in this Agreement.

1.2 Exhibits. The following documents are attached hereto and are by this reference made a part of this Agreement:

2. GENERAL PROVISIONS.

2.2 Interest in Site. City and Developer acknowledge and agree that Developer has a legal or equitable interest in the Site and is thus qualified to enter into and be a party to this Agreement under Development Agreement Law. Additionally, prior to the execution of this Agreement, Developer has allowed City to view a redacted copy of the Lease, which demonstrate that Developer has a long -term leasehold interest in the Site, which interest shall be maintained during the Term of this Agreement, at the discretion the Developer. If Developer’s interest in the Lease is prematurely terminated, Developer may assign this Agreement as provided in Section 2.3, below. If Developer extends the Lease beyond the Term of this Agreement and this Agreement is City Council Regular Meeting - Page 145 of 664
5 not extended to the new Lease expiration date by the City, at the expiration of this Agreement, If Developer’s interest in the Lease terminates before the expiration of this Agreement and Developer is not able to Assign this Agreement as provided in Section 2.3, Developer will remove the Billboard and Digital Display and sign a written cancellation of this Agreement, as provided in Section 4.1.

2.3 Assignment. Developer shall not assign or otherwise transfer this Agreement, or its interest in the Site to any other person, firm, or entity , without City’s written consent, which shall not be unreasonably withheld. An assignment of this Agreement shall be to a party that has demonstrated positive experience operating billboards similar to the Project, and who can provide evidence of adequate financial resources and expertise in securing advertisers for billboards similar to the Project. Developer shall notify City no later than ninety (90) days prior to any such proposed assignment and provide all documentation necessary for City to verify compl iance with this requirement. Any transfer not meeting the requirements in this Section 2.3 shall be subject to the approval of the City Council. Any security posted by Developer may be substituted by the assignee or transferee. The prohibition against an assignment without reasonable City’s approval shall not be required for, or deemed to prevent , (i) the renting or subleasing or licensing of space for advertisements or displays consistent with the customary uses and practices for billboards and message boards or (ii) the assignment of this Agreement to any affiliate of Developer or joint venture in which Developer participates provided that Developer submits evidence satisfactory to City that the principals who own and control Developer will maintain a maj ority controlling interest after consummation of such transaction and will have the ability to maintain a majority controlling interest throughout the Term, (iii) Developer, in any manner, at Developer’s sole discretion, from encumbering Sites or any portion thereof or the Development or any improvement on the Sites thereon by any mortgage, deed of trust or other security device securing financing with respect to the Sites. The City acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and the City agrees upon request, from time to time, to meet with Developer or Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject t o compliance with applicable laws, the City will not withhold its consent to any such requested interpretation or modification, provided the City determines such interpretation or modification is consistent with the intent and purposes of this Agreement. Upon reasonable approval by the City Attorney as to form, the City authorizes the City Manager to execute any Notices of Consent to Assignment on behalf of the City or similar financial documentation.

2.4 Term of Agreement. Unless this Agreement is earlier terminated as provided for herein, this Agreement shall continue in full force and effect for thirty (30) years after the date the Digital Display becomes Operational or the removal of the Digital Display, whichever is earlier (“Term”). The Parties may extend the Term or amend the terms of this Agreement by written amendment, subject to approval of the City Council. If the parties are unable to agree to extend the Term; then, within thirty (30) days after the expiration or termination of this Agreement, the parties shall execute a written cancellation of this Agreement, which shall be recorded with the County Recorder at the City's expense pursuant to Section 8.1 below

2.5 Public Benefits.

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6 2.5.1 Development Fees.
(a) Minimum Annual Guarantee (“MAG”). In addition to the one-time development fee required under Section 2.5.1(a), Developer shall pay City an annual MAG fee of $75,000.00 (the “ MAG Fee”) during the Term of this Agreement payable in equal monthly installments paid to the City on or before the fifteenth (15th) day of the first month following Digital Display becoming Operational and each month thereafter. The MAG shall be increased annually on the anniversary of the Digital Display becoming Operational by 2% with an MAG Fee of $100,000 in year 10 plus annual increase and $120,000 in year 20 through year 30. (b) Percentage Fee. To the extent that ten percent (10%) (the “Annual Revenue Share Percentage”) of the Annual Net Revenue exceeds the MAG (or the prorated MAG for the 1st and last year of the Term) as of March 31st of every year starting the year after the MAG Commencement Date, Developer shall ma ke an additional payment to the City by March 31st of each year of the Term in the amount by which (i) the Annual Revenue Share Percentage multiplied by (ii) the Annual Net Revenue collected by Developer for the immediate preceding Term year exceeds the MAG amount paid by Tenant to the City pursuant to Section 2.5.1(b) for such Term year. In no event shall the amount of the Development Fees due under Section 2.5.1 of this Agreement be less than the MAG.
(1) Reports. Developer shall furnish to City an annual statement of Annual Net Revenue for the Digital Display by March 31 st of each year of the Term. Such statement shall be in a form listed in Exhibit D. Each statement shall be signed and certified to be correct by a duly authorized officer of Developer or by the head of their accounting department.

Developer shall keep and make available complete and materially accurate books of account, records, cash receipts and other pertinent data, in accordance with good accounting practices , showing the Annual Net Revenue, including without limitation, materially accurate records of every sale and other sales transaction made for any advertising display on the Digital Display and any commissions paid by Developer to an agency or broker. Such books of account, records, cash receipts, or other pertinent data shall be kept for a period of no less than four (4) years after the end of each year. The receipt by City of any statement, or any payment of the Percentage Fee for any period, will not bind City as to the correctness of the statement or payment. (2) Inspection and Audit. City, at its sole option, shall be entitled, at any time and from time to time during the Term and during normal business hours and with prior written notice to Developer, to in spect, examine, copy and audit Developer's books, records and cash receipts as related to Annual Net Revenue. Developer shall cooperate fully with City and City's agents in making the examination. City, at its option, will also be entitled once during ea ch year of the Term and once after the Expiration Date or other termination of this Agreement, to cause an independent audit of such records to be performed by a certified public accountant designated by City, provided such accountant is not paid on a cont ingency fee basis.

The audit will be conducted during usual business hours at Developer’s office located at 3127 E.

South Street, Suite B, Long Beach, CA 90805 , unless another location is mutually agreed upon.

If the audit shows that there is a deficiency in the payment of any Percentage Fee, then Developer shall promptly upon notice pay the deficiency to City which payment will not require any penalty or other late fee. City will pay the costs of the audit unless the audit shows that Developer City Council Regular Meeting - Page 147 of 664
7 understated Annual Net Revenue by more than three (3%) percent in which case Developer shall pay all reasonable out -of-pocket costs paid to third party consultants and incurred by City in connection with the audit.
(c) Late Charge; Default Interest.
(1) Late Charge. If Developer fails to pay any payments or fees required under this Agreement after the same is due and payable, such unpaid amount shall be subject to a late payment charge equal to five percent (5%) of the unpaid amount in each instance.

The late payment charge has been agreed upon by City and Developer, after negotiation, as a reasonable estimate of the additional administrative costs and detriment that City will incur as a result of any such failure by Developer, the actual costs thereof b eing extremely difficult—if not impossible—to determine. The late payment charge constitutes liquidated damages to compensate City for its damages resulting from such failure to pay, and Developer shall promptly pay such charge to City together with any unpaid interest.
(2) Default Interest. If any payments or fees are not paid following the due date, such unpaid amount will bear simple interest at the rate of 10% per year or the maximum permitted by law, whichever is lower (“Default Rate”) from the due date until paid.

However, interest will not be payable on late charges incurred by Developer, nor on any amounts on which late charges are paid by Developer to the extent this interest would cause the total interest to be in excess of that which an indiv idual is lawfully permitted to charge. Payment of interest will not excuse or cure any default by Developer.
(3) Application of Payments . All payments received by City from Developer will be applied to the corresponding obligation owed by Developer to Ci ty. No designation by Developer, either in a separate writing, on a check or money order, or otherwise will modify this Agreement or have any force or effect.

2.6 City Usage of Digital Display. To the extent that commercial advertising time on the Billboard is unsold and available, City shall have the right to use up to five percent (5%) of the total advertising time to promote civic and public purposes that serve the needs of the City and its residents, including but not limited to, City events and programs (such usage “City Usage”). City Usage shall be displayed (subject to the terms of this Agreement) during the operation of the Digital Display in increments, equally spread throughout each 24 -hour day on a space available City Council Regular Meeting - Page 148 of 664
8 basis as long as the City obtains 5% on an annual basis if they request it (any time not requested is lost at the end of each year and does not accumulate to the next year), and otherwise in the same manner as other commercial advertising displayed on the Digital Display. The City shall submit all proposed copy to Developer not less than five (5) business days prior to the date the copy is proposed to be displayed. All proposed City Advertising copy shall be prepared and submitted at the City’s sole cost, shall be in a format r eady for posting on the Digital Display per Developer’s posting specification sheet, and shall be subject to Developer’s standard advertising copy rejection and removal policies, which allow Developer to approve or disapprove copy and remove copy once posted or displayed. City represents and warrants that all copy, content and materials supplied by City to Developer for display under this Agreement: (i) are owned or duly licensed by City and do not infringe or misappropriate the rights of any other person o r entity; (ii) comply with all applicable federal, state, and local laws, rules and regulations and any industry codes or rules by which City and/or Developer may be bound and do not contain any obscene, libelous, slanderous or otherwise defamatory materials or refer in an offensive manner to the gender, race or ethnicity of any individual or group; (iii) are accurate and that all claims contained therein have been substantiated; and (iv) do not infringe upon any copyright, trademark or other intellectual property or privacy right of any third party. Any content provided by City shall be owned and belong exclusively to the City, and Developer shall not reproduce, sell, or give away any such content without the advance written consent of the City.

2.6.4 Fixed Facility Fee: Should City and Developer enter into a lease with a telecommunication company and Developer’s landlord for the installation of an antenna or wireless communication device for cellular, wi -fi or other service on the Billboard pole or structure (the “Device”), the City and Developer shall share equally the gross revenue collected as a result of the Device as additional revenue after the Developer’s landlord portion of the gross revenue is deducted . The party receiving the additional revenue from the telecommunication City Council Regular Meeting - Page 149 of 664
9 company shall have the right to review and audit the revenue received within 30 days upon request by the other party.

2.7 Prohibited Use. Developer shall not utilize any of the Digital Displays to advertise or display messages that are:

2.7.2 promotes the sale of firearms, tobacco products, whether directly or indirectly;

2.7.3 promotes sexually oriented materials, adult businesses, entertain ment, products, conventions, events, or websites; and

2.7.4 promotes any product, service or activity illegal under federal, state, or local law.

3. DEVELOPMENT AND IMPLEMENTATION OF THE PROJECT.

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10 3.3.1 Relocation. The City shall cooperate and assist the off -site advertising sign Developer with complying with federal, state and local laws for any off -site advertising sign that was approved by a development agreement; including but not limited to assistance with a relocation per Bus. & Professions Code, Section 5412 for any of the off -site advertising sign locations that are in landscaped classified areas per state law. The Parties acknowledge that the Property located at 11350 Wright Road, in the City of Lynwood, in the County of Los Angeles (Assessor’s Parcel Number 6194 -031-007) is on a landscaped section of the Long Beach (710) Freeway and that Developer will need to pursue a relocation per Bus. & Professions Code, Section 5412. Therefore City desires to support and cooperate in the necessary relocation processes for permitting the construction and operation of billboards on the Property since the relocation allows the City to continued development in a planned manner for the general welfare and benefit of the public.

3.4 Timing of Project. Developer shall commence the Project within one-hundred forty (140) days after obtaining the Final Permits. “Commencement" of the Project is herein defined as the start of construction of the Billboard on the Site under the applicable Final Permits.

In the event Developer fails to commence such construction within one-hundred forty (140) days after obtaining the Final Permits, and after compliance with Section 5.3, either party hereto may terminate this Agreement by delivering written notice to the other party, and, in the event of such termination, neither party shall have any further obligation hereunder. However, if circumstances within the scope of Section 8.10 delay the commencement or completion of the Project, it would not constitute grounds for any termination rights found within this Agreement. In such case, the timeline to commence or complete the relevant task shall be extended in the manner set forth at Section 8.10. Notwithstanding the above, Developer shall, at all t imes, comply with all other obligations set forth in this Agreement regarding construction of the Project on the Site. Developer shall also maintain and operate the Billboard at all times during the Term of this Agreement in compliance with the provisions set forth below:

3.4.1 Maintenance. Developer, for itself and its successors and assigns, hereby covenants and agrees to be responsible for the maintenance and repair of the Billboard, including but not limited to, the Digital Displays installed thereon, a nd all related on -Site improvements, easements, rights -of-way and, if applicable, at its sole cost and expense, including, without limitation, poles and lighting, in good repair, free of graffiti, rubbish, debris and other hazards to persons using the same , and in accordance with all applicable laws, rules, ordinances and regulations of all federal, State, and local bodies and agencies having jurisdiction over the Site.

Such maintenance and repair shall include, but not be limited to, the following: (i) swe eping and trash removal related to the Billboard; (ii) ongoing maintenance by the Developer of any access area to the Billboard to minimize dust caused by the Project; (iii) the adequate and complete removal or painting over of all graffiti within 48 hours of notice of such graffiti being affixed on the Billboard; and (iv) the repair, replacement and repainting of the structure and the Digital Displays as necessary to maintain such Billboard in good condition and repair.

3.4.2 Developer shall comply with the standards as adopted by the Outdoor Advertising Association of America, Inc. (OAAA), including but not limited to, the 0.3 foot - candles limitation over ambient light levels at 250 feet, and ensuring additional flexibility in reducing such maximum light level standard given the lighting environment, the obligation to have City Council Regular Meeting - Page 151 of 664
11 automatic diming capabilities, as well as providing the City’s Planning Manager or designee with a designated Developer employee’s phone number and/or email address for emergencies or complaints that will be monitored 24 hours a day/7 days per week.

3.4.3 In the event ten percent (10%) or more of the digital sign face is not operating correctly or in the event of a malfunction, Developer shall immediately turn the entire display off, or show a one hundred percent (100%) black image on the display until corrected.

3.6 Reservation of Authority

3.6.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following Subsequent Land Use Regulations shall apply to the development of the Project:
(a) Processing fees and charges of every kind and nature imposed by City to cover the estimated actual costs to City of processing applications for amendments to the Development Approvals.
(b) Procedural regulations consistent with this Agreement relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. Notwithstandi ng the for egoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice. (c) Changes adopted by the International Conference of Bui lding Officials, or other similar body, as part of the then most current versions of the Uniform Building Code, Uniform Fire Code, Uniform Plumbing Code, Uniform Mechanical Code, or National Electrical Code, as adopted by City as Subsequent Land Use Regula tions, if adopted prior to the issuance City Council Regular Meeting - Page 152 of 664
12 of a building permit related to an amendment to the Development Approval. Notwithstanding the foregoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, developer may terminate this Agreement upon ninety (90) days prior written notice.
(d) Regulations that are not in conflict with the Development Approvals or this Agreement.
(e) Regulations that are in conflict with the Development Approvals or this Agreement, provided Developer has given written consent to the application of such regulations to the development of the Project.
(f) Applicable Federal, State, County, and multi -jurisdictional laws and regulations which the City is required to enforce against the Site or the development of the Project and that do not have an exception for existing signs or legal nonconforming uses.

3.6.3 Modification or Suspension by Federal, State, County, or Multi - Jurisdictional Law. In the event that applicable federal, State, County, or multi-jurisdictional laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, and there is no exception for the legal nonconforming use, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such federal, State, County, or multi -jurisdictional laws or regulations, and this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and t o the extent such laws or regulations do not render such remaining provisions impractical to enforce.

3.7 Regulations by Other Public Agencies. It is acknowledged by the parties that other public agencies not subject to control by City may possess authori ty to regulate aspects of the development of the Project as contemplated herein, and this Agreement does not limit the authority of such other public agencies. Developer acknowledges and represents that, in addition to the Land Use Regulations, Developer shall, at all times, comply with all applicable federal, State and local laws and regulations applicable to the Billboard and Site that do not have an exception for a legal nonconforming use. To the extent such other public agencies preclude development or maintenance of the Project and do not have an exception for a legal nonconforming use, Developer shall not be further obligated under this Agreement except as provided in Section 4.1. Notwithstanding the foregoing, if such action by another public agency materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice.

3.8 Public Improvements. Notwithstanding any provision herein to the contrary, City shall retain the right to condition any subsequent development approvals to require Developer to City Council Regular Meeting - Page 153 of 664
13 pay any required development fees, and/or to construct the required public infrastructure at such time as City shall determine.

3.9 Fees, Taxes Assessments. This Agreement shall not prohibit the application of customary fees, taxes, or assessments upon the Site.

4. REMOVAL OF BILLBOARDS

4.1 Removal of Digital Display by Developer. If the Parties do not extend the Term of this Agreement pursuant to Section 2.4 above, or if Developer breaches this Agreement after notice and a right to cure as provided in Section 5.3, or if the Developer’s lease with the property owner otherwise terminates before the expiration of this Agreem ent or following the natural expiration of the Term or extensions thereof, Developer shall remove the Digital Display before lease termination and cancel this Agreement as provided in Section 2.4. If Developer does not timely remove the Digital Display and other improvements as required by this Section, City may, but shall not be required to, remove or cause the removal of the Digital Display and related structures on the Premises at Developer's expense and return the structures to the Developer or scrap them if Developer does not accept them . If Developer does not timely remove the Digital Display and other improvements as required by this Section and the City does not remove the sign, the City cannot operate the sign or allow anyone else to operate the sign. Developer shall reimburse City within thirty (30) days of receipt of an itemized accounting of the cost for such removal.

5. REVIEW FOR COMPLIANCE.

5.1 Annual Review. The City may review this Agreement annually, at City's sole cost, to ascertain Developer’s good faith compliance with the terms of the Agreement ("Annual Review").

However, no failure on the part of City to conduct or complete an Annual Review as provided herein shall have any impact on the validity of this Agreement. Developer shall cooperate with City in the conduct of any Annual Review and timely provide the following information and documentation to City Council Regular Meeting - Page 154 of 664
14 City: (1) description of all complaints received regarding the Billboard that w ere unrelated to the content of any message displayed, (2) any updates to Developer's contact information, (3) status and amount of all payment obligations to the City required under this Agreement, (4) any easement or Lease changes that could in any way m aterially impact the City or Developer’s obligations under this Agreement, (5) any utility changes that could in any way materially impact the City or the obligations under this Agreement, and (6) any maintenance issues addressed or needing to be addressed that were raised by the City per the maintenance requirements herein.

Notwithstanding anything to the contrary herein, in no event will City representatives ever climb up the pole of the Billboard during any inspection.

5.3 Procedure. Each party shall have a reasonable opportunity to assert matters, which it believes, have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non-Compliance" (“Notice”) specifying the grounds therefore and all facts demonstrating such non-compliance. The party receiving a Notice shall have thirty (30) days to cure or remedy the non -compliance identified in the Notice, or if such cure or remedy is not reasonably capable of being carried out to completion within such thirty (30) day period, to commence to cure or remedy the noncompliance and to diligently and in good faith prosecute such cure or remedy to completion. If the party receiving the Notice does not believe it is out of compliance, it may contest the Notice by responding in writing to said Notice within thirty (30) days after receipt of the Notice. If a response to the Notice has not been received in the offices of the party alleging the non -compliance within the prescribed time period, the Notice shall be conclusively presumed to be valid. If a Notice is contested, the parties shall, for a period of not less than fifteen (15) days after receipt of the response, seek to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event a cure or remedy is not timely effected or, if the Notice is contested and the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the fifteen (15) day period, the party alleging the non -compliance may thereupon pursue the remedies provided in Section 6. Neither party hereto shall be deemed in breach City Council Regular Meeting - Page 155 of 664
15 of this Agreement if the reason for non-compliance is due to a "force majeure" as defined in, and subject to the provisions of Section 8.10.

5.4 Certificate of Agreements Compliance. If, at the conclusion of an Annual Review or a Special Review, Developer is found to be in compliance with this Agreement, City shall, issue a Certificate of Agreement Compliance ("Certificate") to Developer stating that, after the most recent Annual Review or Special Review, and based upon the information known or made known to the City Manager and City Council: (1) this Agreement remains in effect and (2) Developer is in compliance. The Certificate, whether issued after an Annual Review or Special Review, shall be in recordable form and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer may record the Certificate with the County Recorder. Additionally, Developer may, at any time, request from the City a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Site.

6. DEFAULT AND REMEDIES

6.1 Termination of Agreement.

7. INSURANCE, INDEMNIFICATION AND WAIVERS.

7.1 Insurance.

7.1.1 Types of Insurance.

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16 (a) Liability Insurance. Beginning on the Effective Date hereof and until completion of the Term, Developer shall, at its sole cost and expense, keep or cause to be kept in force for the mutual benefit of City, as additional insured, and Developer, comprehensive broad form general liability insurance against claims and liabilities covered by the indemnification provisions of section 7.2. Developer has agreed to indemnify City hereunder to the extent of the liability insurance coverage with respect to its use, occupancy, disuse or condition of the Site, improvements or adjoining areas or ways, affected by such use of the Site or for property damage, providing protection of a least Two Million Dollars ($2,000,000) for bodily injury or death to any one person, at least Four Million Dollars ($4,000,000) for any one accident or occurrence, and at least One Million Dollars ($1,000,000) for property damage. Developer shall also furnish or cause to be furnished to City evidence that any contractors with whom Developer has contracted for the performance of any work for which Developer is responsible maintains the same coverage required of Developer.
(b) Worker’s Compensation. Developer shall also furnish (or cause to be furnished) to City evidence that Developer and any contractor with whom Developer has contracted for the performance of any work for which Developer is responsible hereunder maintains and carries worker's compensation insurance as required by law. (c) Insurance Policy Form, Sufficiency, Content and Insurer. All insurance required by express provisions hereof shall be carried only by responsible insurance companies qualified to do business by California with an AM Best Rating of no less than "A-". All such policies shall be non-assignable and shall contain language, to the extent obtainable, to the effect that (i) the insurer waives the right of subrogation against City and against City's agents and representatives except as provided in this section; (ii). Developer shall furnish City with certificates evidencing the insurance and City shall be named as an additional insured on all liability policies of insurance required to be procured by the terms of this Agreement.

7.2.1 Failure to Maintain Insurance and Proof of Compliance. Developer shall deliver to City, in the same manner required for notices, copies of certificates of all insurance policies required of each policy within the following time limits:
(a) For insurance required above, within seven (7) days after issuance of the Final Permits; and
(b) The City can request to see updated copies of the current certificates of all insurance policies required. The City reserves the r ight to obtain copies of the entire insurance policy, including endorsements.

If Developer fails or refuses to procure or maintain insurance as required hereby or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, after complying with the requirements of Section 5.4, the City may view such failure or refusal as a default hereunder.

7.2 Indemnification
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17 7.2.1 General. Developer shall indemnify City, and its respective officers, employees, and agents against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities (herein "claims or liabilities") that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the work, operations, or activities of Developer, its agents, employees, subcontractors, or invitees, hereunder, upon the Site . The City will promptly notify the permittee of any such claim, action, or proceeding against City and will cooperate fully in the defense. To this end:
(a) Developer will defend any action or actions filed in connection with any of said claims or liabilities covered by the indemnification provisions herein and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith, which attorneys will be the attorneys hired by the insurance company where insurance coverage applies. (b) Developer will promptly pay any judgment rendered against the City or its respective officers, agents, or employees for any such claims or liabilities arising out of or in connection with such work, operations, or activities of the Developer hereunder, and Developer agrees to save and hold the City and its respective officers, agents, and employees harmless therefrom.

7.2.2 Exceptions. The foregoing indemnity shall not include claims or liabilities arising from the sole negligence or willful misconduct of City, its officers, agents, or employees.

7.2.3 Additional Coverage. Without limiting the generality of the foregoing, Developer’s indemnity obligation shall include any liability arising by reason of:
(a) Any accident or other occurrence in or on the Site causing injury to any person or property whatsoever caused by Developer.
(b) Any failure of Developer to comply with performance of all of the provisions of this Agreement.
(c) Any harm, delays, injuries or other damages incurred by any party as a result of any subsurfac e conditions on the Site caused solely by Developer, including but not limited to, the presence of buried debris, hazardous materials, hydrocarbons, or any form of soil contamination.

7.2.4 Loss and Damage. Except as set forth below, City shall not be liable for any damage to property of Developer or others located on the Site, nor for the loss of or damage to any property of Developer or others by theft or otherwise. Except as set forth below, City shall not be liable for any injury or damage to persons o r property resulting from fire, explosion, steam, gas, electricity, water, rain, dampness or leaks from any part of the Site or from the pipes or plumbing, or from the street, or from any environmental or soil contamination or hazard, or from any other latent or patent defect in the soil, subsurface or physical condition of the Site, or by any other cause of whatsoever nature. The foregoing two (2) sentences shall not apply: (i) to the extent City or its agents, employees, subcontractors, invitees or representatives cause such injury or damage when City Council Regular Meeting - Page 158 of 664
18 accessing the Site, (ii) to the extent covered in any permit to enter executed by the City, or (iii) to negligent or willful acts or omissions of the City, its employees, officials, representatives or agents.

7.2.5 Period of Indemnification. The obligations for indemnity under this Section

7.2 shall begin upon the Effective Date and shall survive termination of this Agreement, provided the actions or omissions subject to indemnification above shall have occurred prior to termination.

8. MISCELLANEOUS PROVISIONS.

8.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties with respect to the subject matter set forth herein, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

8.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California.

8.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

8.6 Singular and Plural. As used herein, the singular of any word includes the plural.

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19 8.7 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

8.8 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.

8.10 Force Majeure. Notwithstanding anything to the contrary herein, neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is ca used by earthquakes, other acts of God, fires, rains, winds, wars, terrorism, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the party's employment force), government actions and regulations (other than those of the City), court actions (such as restraining orders or injunctions), or other causes beyond the party's reasonable control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the dur ation of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years and further provided that if such delay is longer than six (6) months, Developer may terminate this Agreement upon written notice to City.

8.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance of the covenants to be performed hereunder by the benefited party.

8.13 Litigation. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Lo s Angeles, State of California, or such other appropriate court in said county. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. In the event of any action between City and Developer seeking enforcement of any of the terms and conditions to this Agreement, the prevailing party in such action shall be awarded, in addition to suc h relief to which such party is entitled under this Agreement, its reasonable litigation costs and expenses, including without limitation its expert witness fees and reasonable attorneys' fees.

8.14 Covenant Not To Sue. The parties to this Agreement, and each of them, agree that this Agreement and each term hereof is legal, valid, binding, and enforceable. The parties to this City Council Regular Meeting - Page 160 of 664
20 Agreement, and each of them, hereby covenant and agree that each of them will not commence, maintain, or prosecute any claim, dema nd, cause of action, suit, or other proceeding against any other party to this Agreement, in law or in equity, which is based on an allegation, or assert in any such action, that this Agreement or any term hereof is void, invalid, or unenforceable.

8.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private activity, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property, on the one hand, and the holder of a legal or equitable interest in such property on the other hand. City agrees that by its approval of, and entering into, this Agreement, that it is not taking any action which would transform this private Project into a "public work" project, and that nothing herein shall be interpreted to convey upon Developer any benefit which would transform Developer's private project into a public work project, it being understood that this Agreement is entered into by City and Developer upon the exchange of consideration described in this Agreement, including the Recitals to this Agreement which are incorporated into this Agreement and made a part hereof, and that City is receiving by and through this Agreement the full measure of benefit in exchange for the burdens placed on Developer by this Agreement.

8.19 Corporate Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party, if not an individual, is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said City Council Regular Meeting - Page 161 of 664
21 party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound.

To Developer Bulletin Display, LLC
Official Land Lease Notice
3127 E. South Street, Suite B
Long Beach, CA 90805
Attn: Mark A. Kudler

8.22 No Brokers. City and Developer represent and warrant to the other that neither has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorneys' fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder's fee in connection with this Agreement or arising out of agreements by the indemnifying party to pay any commission or finder's fee.

8.24 Counterparts. This Agreement may be signed in any number of duplic ate counterparts, each of which, when combined, shall constitute one and the same document. (Signatures on Next Page)
City Council Regular Meeting - Page 162 of 664
22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above.

“City”

CITY OF LYNWOOD

Date:______________ ____________________________________ Jorge Casanova, Mayor

ATTEST:

_______________________________
Maria Quinonez, City Clerk

APPROVED AS TO FORM

_______________________________
Noel Tapia, City Attorney

“Developer”

BULLETIN DISPLAYS, LLC

Date:______________ ____________________________________ Its: Mark A. Kudler

[Principle Signatures to be Notarized]

City Council Regular Meeting - Page 163 of 664
23 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
(See Following Page)

City Council Regular Meeting - Page 164 of 664
24 11350 Wright Rd. Lynwood, CA 90262; also known as Los Angeles County Assessor’s No. 6194-031-007

LEGAL

THAT PORTION OF THE RANCHO SAN ANTONIO, BEING ALSO A PORTION OF THE C. H.

WATTS LAND, IN THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 5 PAGE(S) 351 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. , DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE EASTERLY LINE OF WRIGHT ROAD, WITH THE NORTHERLY LINE OF NORTON ROAD, "NOW CENTURY BOULEVARD"; THENCE A LONG SAID EASTERLY LINE, NORTH 20 ° 10' 25" EAST 295.02 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN DEED TO WILLIAM R. QUINNEY, ET AL., RECORDED JANUARY 14, 1948 AS INSTRUMENT NO, 456 IN BOOK 26197, PAGE 380, OFFICIAL RECORDS OF SAID COUNTY; SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 20 ° 10' 25" EAST 150 FEET TO THE NORTHWESTERLY CORNER OF SAID LAND OF

QUINNEY, THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LAND OF QUINNEY, A DISTANCE OF 443.56 FEET; THENCE SOUTHERLY IN A DIRECT LINE TO A POINT IN THE SOUTHERLY LINE OF SAID LAND OF QUINNEY, EASTERLY THEREIN, A DISTANCE OF 475.46 FEET FROM THE TRUE POINT OF BEGINNING; THENCE ALONG SAID SOUTHERLY LINE NORTH 80 ° 36' 35" WEST 475.46 FEET TO THE TRUE POINT OF BEGINNING.

EXCEPT AN UNDIVIDED ONE -HALF INTEREST IN ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, IN OR UNDER SAID LAND, LYING BELOW A DEPTH OF 500

FEET FROM THE SURFACE THEREOF, BUT WITHOUT THE RIGHT OF SURFACE ENTRY TO TAKE, MARKET MINE, EXPLORE OR DRILL FOR SAME AS RESERVED BY V.J. TOVATT, A MARRIED MAN AS TO AN UNDIVIDED 96.46 PER CENT INTEREST AND KAREN MARIE TOVATT, AN UNMARRIED WOMAN AS TO AN UNDIVIDED 3.54 PER CENT INTEREST IN DEED RECORDED MARCH 11, 1969 AS INSTRUMENT NO. 51, OFFICIAL RECORDS.

City Council Regular Meeting - Page 165 of 664
25 EXHIBIT B

SITE PLAN

(See Following Page)
City Council Regular Meeting - Page 166 of 664
26 City Council Regular Meeting - Page 167 of 664
27 EXHIBIT C

ELEVATIONS

(See Following Page)
City Council Regular Meeting - Page 168 of 664
28 City Council Regular Meeting - Page 169 of 664
29 EXHIBIT D

FORM FOR THE ANNUAL STATEMENT OF ANNUAL NET REVENUES

(See Following Page)

Form is an example and some descriptions can change

City Council Regular Meeting - Page 170 of 664
30 City Council Regular Meeting - Page 171 of 664
Agenda Item # 16.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Mir
T. Fattahi, Acting City Engineer

Lorry Hempe, Public Works Special Projects Manager

SUBJECT:

LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT, FY 2022-2023 Recommendation:

1. Set the assessment rate for the Landscape Maintenance Assessment District at the existing $1.90
per
front footage for residential and commercial properties; and

2. Adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING

LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR
FISCAL YEAR 2022-
2023
”.

Background:

On
June 21, 2022
, the City Council approved the Engineer’s Report for the Landscape Assessment District (District), and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates ). An annual hearing is required to re-establish the district. The notice of public hearing was advertised in Lynwood Press Wave on June 30, 2022
per Section 22553
of the California Streets and Highways Code.

Discussion and Analysis:

There is no proposed assessment rate increase; the assessment rate will remain the same at $1.90
per front footage for
both residentially zoned properties and for commercially zoned properties.

The Report indicates an assessment revenue
of
$1,071,214
for Fiscal Year
2022-2023
(FY22-23).

The estimated cost to operate the District in
FY22-23
is a total of
$2,890,986.

The estimated revenues including assessment revenue amount, tax redemption, interest and penalties are City Council Regular Meeting - Page 172 of 664
$1,097,732.

The District’s estimated ending fund balance for FY21-22 is a deficit in the amount of ($5,013,201 )
.

The
District is projected to end FY22-23 in deficit in the amount of ($6,806,455) in fund balance.

Fiscal Impact:

The Report includes a cost of
$2,890,986

for the District
for FY22-23
.

The estimated assessment amount, tax
redemption, interest and penalties are
$1,097,732.

The District is projected to end
FY22-23
in deficit in the
amount of (
$6,806,455
).

Future of the District

The District provides essential services such as maintenance of landscape areas including trees citywide. The cost to maintain the District continue to outpace the revenues collected through the levy. Assessment rates cannot be increased without a ballot protest process.

There is no proposed assessment rate increase; the assessment rate will remain the same at $1.90
per front
footage for both residentially zoned properties and for commercially zoned properties.

Coordinated With:

City Attorney’s Office
City Manager’s Office
Finance Department
ATTACHMENTS:

Description
Resolution-Ordering the Levy of Annual Assessments
for Landscape Maintenance District
Attachment A -Diagram
Attachment B- Resolution 2022_105 Intention to Levy
Attachment C-Resolution 2022_104 Adoption of Engineer's Report Attachment D- Engineer's Report
Attachment E - Public Hearing Notice
Attachment F - Preliminary Assessment
Roll (Part 1)
Attachment F - Preliminary Assessment
Roll (Part 2)
City Council Regular Meeting - Page 173 of 664
1 RESOLUTION NO. _________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING

THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LANDSCAPE MAINTENANCE ASSESSM ENT DISTRICT FOR FISCAL YEAR 2022- 2023

WHEREAS, on June 21, 2022, the City Council of the City of Lynwood adopt ed Resolution No. 2022-105 proposing the levy of the annual assessments for the Lynwood Landscape Maintenance Assessment District (the “District”) and directing the Engineer to prepare a report in connection therewith; and

WHEREAS, on June 21, 202 2, the Engineer submitted a report in relation to said District pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (Part 2 of Division 15 of the Streets and Highways Code of the State of California) (the ”Act”); and

WHEREAS, on June 21, 202 2, the City Council adopt ed Resolution No . 2021.104 approving the Engineer’s Report herein mentioned; and

WHEREAS, on June 21, 2022, the City Council adopt ed Resolution No. 20 22- 104 fixing the time and place for a hearing on the matter of said District; and

WHEREAS, evidence has been received as to the publication of notice of said hearing in the time, form and manner required by law.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. Each and all of the recitals set forth herein above are true and correct.

Section 2. Following notice duly given, the City Council has held a full and fair public hearing regarding its Resolution No. 2022-105, the Engineer’s report prepared in connection therewith, and the levy and collection of the proposed assessment against lots and parcels of land within the District for Fiscal Year 2022-2023 to pay for the costs and expenses for the improvements descri bed in Section 5 below pursuant to the terms and provisions of the Act. All interested persons were afforded the opportunity to hear and be heard. The City Council has considered all oral and written statements, protests and communications made or filed by interested persons.

Section 3. Based upon its review of the Engineer’s Report and other reports and information, the City Council hereby finds and determines that (i) the lands within the District will be benefited by the improvements described in Sectio n 5 below, (ii) the District includes all of the lands so benefited, and (iii) the net amount to be assessed upon the lands within the District for Fiscal Year 2022-2023 in accordance with the City Council Regular Meeting - Page 174 of 664
2 Engineer’s Report is apportioned by a formula and method which fairly distributes the net amount among all assessable lots and parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. All protests and objections to the levy and collection of the proposed assessme nt for the fiscal year commencing on July 1, 2022 and ending on June 30, 20 23 are hereby overruled by the City Council.

Section 4. The diagram and assessment in the Engineer’s Report, as modified, as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed.

Section 5. The City Council hereby orders the proposed improvements to be made as described in the Engineer’s Report, which improvements shall be performed pursuant to law, and which are briefly described as follows:

The installation, maintenance and servicing of existing and previously proposed landscaping and appurtenant facilities within parks and landscaped areas within public rights-of-way and City owned properties in the City of Lynwood. Such improv ements include the maintenance and operation of sidewalks, streets, and water, flood control and drainage systems, specifically the maintenance and operation of landscaping and appurtenant facilities in and along streets and sidewalks, the maintenance and operation of parks, including appurtenant facilities, which serve as natural retention and drainage systems as required by the area’s Master Storm Drain Plan, and the maintenance and operation of landscaped areas adjacent to and previously proposed water well sites; and the installation of previously proposed landscaping and appurtenant facilities within parks and landscaped areas within public rights -of-way and City-owned property in the City which have been paid or are to be paid from the proceeds of revenue bonds.

Section 6. The assessment is in compliance with provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act.

Section 7. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 5 above during Fiscal Year 2022- 2023.

Section 8. The County Auditor of Los Angeles County shall enter on the County Assessments Roll opposite each lot or parcel of land the amount of the assessment and such assessments shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County fo r collection, shall be paid to the City Treasurer.

Section 9. Public property owned by any public agency and in use in the performance of a public function and which is included within the District shall not be City Council Regular Meeting - Page 175 of 664
3 subject to assessments pursuant to the Act f or any of the costs and expenses of any of the improvements.

Section 10. The City Treasurer shall deposit all monies representing assessments collected by the County to the credit of a special fund for the District and such monies shall be expended only f or the improvements described in Section 5 above.

Section 11. The adoption of this Resolution constitutes the levy of an assessment for the Fiscal Year commencing July 1, 2022 and ending June 30, 2023.

Section 12. A certified copy of the diagram and ass essment shall be filed in the office of the City Engineer, with a duplicate copy on file in the office of the City Clerk and open for public inspection.

Section 13. The Lynwood Landsc ape Maintenance Assessment for Fiscal Y ear 2022-2023 shall be $1.9 0 per foot of front footage for residentially and commercially zoned properties.

Section 14. Any shortfall may be covered by the General Fund per City Council direction until such time as Council duly approves an increase.

Section 15. The City Clerk is hereb y authorized and directed to forthwith file a certified copy of said diagram and assessment with the County Auditor, together with a certified copy of this Resolution.

Section 16. This resolution shall take effect immediately upon its adoption.

Section 17. The City Clerk shall certify as to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 19th day of July, 2022.

_______________________________
Jorge Casanova
Mayor

City Council Regular Meeting - Page 176 of 664
4 ATTEST:

__________________________ _________________________________ María Quiñónez Ernie Hernandez
City Clerk City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

__________________________ _________________________________ Noel Tapia Mir T. Fattahi
City Attorney Acting City Engineer

City Council Regular Meeting - Page 177 of 664
5 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above an d foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:

AYES:

NOES:

ABSENT:

_________________________________
City Clerk, City of Lynwood

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

Dated this __________ day of ________________, _____.

____________________________________
City Clerk, City of Lynwood
City Council Regular Meeting - Page 178 of 664
HWYIMPERIALNOT TO SCALEHWYH U.S. Post U.S. Post
For information on lines and dimensions of each lot of parcel, refer to to Plan 2017-L and the Los Angeles County Assessor's Maps on filewith the City Engineer. All publicly owned properties are assessmentexempt from the District.LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICTBOUNDARY MAP 2017-LEXHIBITA

ATTACHMENT A
City Council Regular Meeting - Page 179 of 664
RESOLUTION NO. 2022. 105

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,

DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2022- 2023 WITHIN

THE LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT

DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 ( COMMENCING WITH STREETS AND HIGHWAYS CODE
SECTION 22500 ET SEQ.) AND FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS JULY 19, 2022
WHEREAS, the City Council has ordered and the Engineer has prepared and filed a report in writing containing all matters required by the City Council under Streets and Highways Code, Section 22565, et seq.; and
WHEREAS, said report has been presented to the City Council for consideration and has been received and approved.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. The City Council of the; City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.

Section 2. Pursuant to the Landscaping and Lighting Act of 1972, commencing with Streets and Highways Code Section 22500 et seq., the City Council of the City of Lynwood hereby declares its intention to order the levy and collection of assessments against the assessable lots and parcels of land within an existing assessment district designated " Lynwood Landscape Maintenance Assessment District (" District") for fiscal year 2021- 2022 to pay for the costs of those existing and previously proposed improvements described as:

The installation, maintenance, and servicing of existing and previously proposed landscaping and appurtenant facilities within parks and landscaped areas within public rights- of- way and City owned property in the City of Lynwood. Such improvements include the maintenance and operation of sidewalks, streets, and water, flood control and drainage systems, specifically the maintenance and operation of landscaping and appurtenant facilities in and along streets and sidewalks, the maintenance and operation of parks, including appurtenant facilities, which serve as natural retention and drainage systems as required by the area' s Master Storm Drain Plan, and the maintenance and operation of landscaped areas adjacent to and appurtenant to water well sites; and the installation of previously proposed landscaping and appurtenant facilities within parks and City Council Regular Meeting - Page 180 of 664
landscaped areas within public rights- of-way and City- owned property in the City which have been paid or are to be paid from the proceeds of revenue bonds." The boundaries of the District are conterminous with the boundaries of the City of Lynwood as shown on the map identified as Assessment District Map No. 2017- L on file in the office of the City Engineer.

Section 3. Reference is hereby made to the report of the Engineer approved by the City Council on June 21, 2022, by a resolution, and on file in the office of the City Clerk, describing the improvements made, the maintenance and servicing thereof, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.

Section 4. Notice is hereby given that on July 19, 2022, at the hour of 6:00 p.m. or soon thereafter, in the Council Chambers of City Hall Annex, 11350 Bullis Road, Lynwood, California, is the date, hour and place fixed for the hearing of protests and objections by the City Council to the levy and collection of the proposed assessments ( existing rates) against the lots and parcels of land within the District for fiscal year 2022- 2023.

Any and all persons having any protest or objection to the proposed improvements, the extent of the assessment district, or the levy and collection of the proposed assessments may appear before the City Council at said hearing and show cause why said improvements should not be carried out and the proposed assessment and diagram confirmed, all in accordance with this Resolution of Intent and the report of the City Engineer. Prior to the conclusion of the hearing, any interested person may file a written protest with the City Clerk, or, having previously filed a protest, may file a written withdrawal of protest. A written protest shall state all grounds of objection.

A protest by a property owner shall contain a description sufficient to identify the property owned by him. All interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider all oral statements and written protests or communications made or filed by an interested person.

Given the Covid- 19 Pandemic, this Public Hearing may be held telephonically or by video conferencing to protect the health and well-being of the meeting participants. To participate, please join via Zoom or by telephone: 1-669- 900- 9128 or 1-253- 215- 8782 Meeting ID: 835- 2029- 8238.

Information on the telephonic or video conferencing access to the City Council Meeting may change. To receive the most updated information on whether the Public Hearing is accessible telephonically or videoconferencing; and/ or changes on the phone numbers as well as access code and password, this information will 2 City Council Regular Meeting - Page 181 of 664
be included in the July 19, 2022 Agenda. Members of the public may access this Agenda online by visiting the City of Lynwood's website at www. lynwood. ca. us, clicking on " Agendas", selecting " Council Meeting Agenda Packet", and selecting AGENDA July 19, 2022- Regular Meeting" to obtain the dial- in number and correlating access code. Members of the public may also use the following link:
http:// lynwood. ca. us/ document- category/ agendas/ .

Section 5. The City Clerk is hereby directed to cause notice of the passage of this resolution to be given at the time and place in the form and manner provided by law.

Section 6. The proposed assessment ratefor fiscal year 2022- 2023 will remain the same and is $ 1. 90 per foot frontage for residential and commercial properties.

Section 7: Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 8. This Resolution shall take full force and effect immediately upon adoption by the City Council.

PASSED, APPROVED and ADOPTED this
21st
day of June, 2022.

6....._
11111441411111111Whirr
Jorge
Mayor
ATTEST:
7°'a.6_
l
Maria Quinonez sdpr Ernie H: .- z
City Clerk City Ma !”-
3 City Council Regular Meeting - Page 182 of 664
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

O. fl
Y
Noel Tapia Mir T ` attahi
City Attorney Acti g City Engineer
4 City Council Regular Meeting - Page 183 of 664

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 21st
day of June,
2022.

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO

TEM SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
r--
Maria Quinonez,
City Clerk

STATE OF CALIFORNIA

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

APPROVING THE ENGINEER' S REPORT PREPARED PURSUANT TO
CALIFORNIA STREETS AND HIGHWAYS CODE, SECTION 22565 ET
SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 21, 2022,

RELATING TO THE LYNWOOD LANDSCAPE ASSESSMENT DISTRICT
WHEREAS, the City Council, on June 21, 2022, adopted Resolution No. 2022. 104, ordering the Engineer to make and file with the City Clerk, a report in writing in accordance with the requirements of Streets and Highways Code, Section 22565 et. seq.; and WHEREAS, Willdan Financial Services ( as assessment engineer) has prepared and filed said report with the City Clerk and the City Clerk has presented said report to this City Council for consideration.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 2. The City Council has considered said report as filed and is hereby approved.

Section 3. Said report, including any plan and diagram, estimates of costs and expenses and assessments shall be placed on file in the office of the City Clerk and may be examined by any interested persons.

Section 4. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
1 City Council Regular Meeting - Page 185 of 664
PASSED, APPROVED and ADOPTED this
21st
day of June 2022.

Jorge asi, ova
Mayor
ATTEST:

Marfa Quinonez Ernie ernar dez
City Clerk City M na r
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
n
7/]Gv
Noel Tapia Mir . Fattahi
City Attorney Acti - _ ly Engineer
2 by
City Council Regular Meeting - Page 186 of 664

STATE OF CALIFORNIA

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM

SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
cam AL_
Maria Quinonez,
City Clerk

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2022. 104 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 21st
day of June, 2022.
r
11141
aria Quinonez,
City Clerk 411,
3 City Council Regular Meeting - Page 187 of 664
CityofLynwoodLandscapeMaintenanceAssessmentDistrict2022/2023ENGINEERSREPORT27368 Via IndustriaSuite 200Temecula, CA 92590T 951.587.3500|800.755.6864F 951.587.3510|888.326.6864Property Tax Information LineT. 866.807.6864www.willdan.com PublicHearing:July19,2022IntentMeeting:June21,2022
City Council Regular Meeting - Page 188 of 664
19thJuly
City Council Regular Meeting - Page 189 of 664
TABLE OF CONTENTS I. INTRODUCTION ...................................................................................................... 1 II. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT ............................................ 1 III. BOUNDARY MAP NO. 2017-L ................................................................................ 3 IV. PLANS AND SPECIFICATIONS ............................................................................. 3 V. ESTIMATE OF COSTS ............................................................................................ 4 VI. ASSESSMENT OF ESTIMATED COST ................................................................. 6 VII. ASSESSMENT ROLL ............................................................................................ 7 VIII. EXHIBIT A ............................................................................................................. 8 City Council Regular Meeting - Page 190 of 664
2022/2023 Landscape Maintenance Assessment District Page 1 of 8 Pursuant to the Landscaping and Lighting Act of 1972, it is required that an Engineer's Report be prepared and filed with the City Clerk, who in turn presents it to the City Council for its consideration.is required by the 1972 Act (being Division 15, Part 2, Streets and Highways Code of the State of California). The Report contemplates the levying of an assessment to provide funds necessary to construct, install, maintain and service sidewalks, streets, and water, flood control and drainage systems and appurtenant facilities within the Lynwood Landscape Maintenance Assessment District (the "District"). The assessment will be levied against those parcels of land within said District benefiting from the improvements, as required by law.Proper construction, installation, maintenance and servicing of median islands, retention basins, street trees and other landscaped facilities provide an esthetically pleasing environment, air purification and sound attenuation. Proper maintenance of such landscaping also provides for the efficient operations of streets, sidewalks, water, flood control and drainage systems throughout the City of Lynwood. It enhances the overall quality of life and desirability of an area, thereby enhancing the value of each and every parcel in the District.Since the street trees and medians are evenly distributed along the public streets and other landscaped facilities are evenly distributed throughout the District, all properties within the District are located within a single zone. The front footage of each benefited property is used as the base for distributing the overall costs in proportion to the estimated benefits to be received by each assessable parcel from the improvements.As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following:The installation or planting of landscaping.The installation or construction of statuary, fountains, and other ornamental structures and facilities.The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

City Council Regular Meeting - Page 191 of 664
2022/2023 Landscape Maintenance Assessment District Page 2 of 8 The maintenance or servicing, or both, of any of the foregoing.The acquisition of any existing improvement otherwise authorized pursuant to this section.Incidental expenses associated with the improvements including, but not limited to: The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; The costs of printing, advertising, and the publishing, posting and mailing of notices; Compensation payable to the County for collection of assessments; Compensation of any engineer or attorney employed to render services; Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.Costs associated with any elections held for the approval of a new or increased assessment.The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:Repair, removal, or replacement of all or any part of any improvement.Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.The removal of trimmings, rubbish, debris, and other solid waste.The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

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2022/2023 Landscape Maintenance Assessment District Page 3 of 8 A diagram of the District, showing the exterior boundaries of the District, is attached hereto as County Assessor's Maps for Fiscal Year (FY) 2022/2023 for a detailed description of the lines and dimensions of any lots or parcels within the District.The District was formed and assessments first levied in 1978 following the passage of Resolution No. 78-78 by the City Council. The plans and specifications for the improvements within the District are on file with the Director of Public Works/City Engineer and are incorporated herein by reference.Landscape Maintenance for FY 2022/2023 includes maintenance and servicing of the following improvements:PARKWAYS Maintenance and Servicing of Parkway sections located along:Hulme AvenueLilita StreetNorton AvenueSanta Fe AvenueAbbott RoadState StreetFlower StreetLos Flores StreetCentury BoulevardLyndora StreetAtlantic AvenueSTREET MEDIANS Mowing, edging, irrigation, trash pick-up and eradicating pests:State Street, 170,000 square feetImperial Highway, 37,740 square feet Atlantic Avenue, 94,472 square feet Hulme Avenue 2,160 square feet Lilita Avenue 1,620 square feet Carlin Avenue 1,530 square feet Los Flores Boulevard, 36,800 square feet Flower Street 36,800 square feet Bullis Road, 3,888 square feet Santa Fe Avenue, 3,000 square feet City Council Regular Meeting - Page 193 of 664
2022/2023 Landscape Maintenance Assessment District Page 4 of 8 WATER WELLS (Five locations, 10,750 square feet) Mowing, edging, weeding and irrigation. TREE TRIMMING Two-year cycle general tree trimming, and in-house light tree trimming and emergency response services.Maintenance and Servicing CostsTaking into consideration the current economic constraints and resulting current fiscal budgetary policies, a conservative projected estimate of the water, electrical energy, operation and maintenance costs with respect to the District (including incidental expenses) for the one-year period beginning July 1, 2022 and ending June 30, 2023, is as follows:Landscape MaintenanceDescriptionFY 2021/2022 Year End ProjectionFY 2022-2023 Proposed BudgetGrounds$1,978,294$2,190,917Trees739,839700,069Sub-Total Grounds and Trees$2,718,133$2,890,986Capital Improvement Projects (CIP)$0$0General Fund Contribution00Total Cost$2,718,133$2,890,986Breakdown (Grounds, Trees and CIP)A. Personnel$1,101,415$1,126,309B. Maintenance & Operations795,617997,339C. Tree Maintenance579,025523,250D. CIP00E. Accrued Liability242,076244,088Total Cost$2,718,133$2,890,986(1) Costs are to cover changes in salary schedule for all employees, reflect anticipated changes in benefit rate,Class A training and chipper training, gopher treatment, and equipment (mower & backhoe)Note: Totals may not sum due to rounding.Capital Improvement CostsIn the past, the public interest and safety required that Capital Improvement Projects be constructed on an expedited basis. The cost of such capital improvements exceeded the amount that could be conveniently raised in a single assessment. Pursuant to Section 22662 City Council Regular Meeting - Page 194 of 664
2022/2023 Landscape Maintenance Assessment District Page 5 of 8 (b) of the 1972 Act, the City entered into an agreement whereby the District received an advance of $2,467,850 from the City for deposit to the improvement fund. Such advance was to be repaid to the City through the levy and collection of annual assessments for these improvements over a period of twenty (20) years commencing with FY 1992/1993, and was proposed to continue until the loan was paid. With the 2003 bond refinancing, the annual installment was $238,450. Since FY 2015/2016 this installment no longer applies.Total Estimated CostsThe estimated balance from FY 2021/2022 plus the total amount to be assessed with respect to the District for FY 2022/2023, consisting of the maintenance and servicing costs, arriving at the estimate ending balance, is as follows:DescriptionFY 2022/2023Proposed AssessmentMaintenance and Servicing Costs($2,890,986.00)Annual Installment (Revenue Bonds)0.00 Total Cost($2,890,986.00)Estimated FY 21-22 Balance (Exhibit B)(5,013,200.61)Total Liability (Total Cost Less Balance)($7,904,186.61)Estimated Revenue & Amount to Be Assessed at No Change in Foot Frontage (FF) Rate1,091,421.89 Transfer-In Estimate0.00 Capital Improvement Projects (CIP)0.00 Other Revenue Estimate6,310.13 General Fund Contribution0.00 Estimated Balance at End of FY 2022/2023($6,806,454.59)Note: Totals may not sum due to rounding.

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2022/2023 Landscape Maintenance Assessment District Page 6 of 8 Estimated Fund BalancesStatusFiscal Year 2020/2021 ActualFiscal Year 2021/2022 Year End Projection(1)Fiscal Year 2022/2023 Budget EstimateBeginning Fund Balance($2,950,088)($3,392,800)($5,013,201)Landscape Assessment$1,051,340 $1,071,214 1,071,214 Interest & Penalties$6,310 $6,310 $6,310 Tax Redemption$20,208 $20,208 $20,208 Transfer-In$0 $0 $0 Landscape Maintenance Cost ($1,520,570)($2,718,133)($2,890,986)Capital Improvement Projects (CIP)$0 $0 $0 Debt Services$0 $0 $0 General Fund Contribution$0 $0 $0 Fund Balance($3,392,800)($5,013,201)($6,806,455)(1)FY 2021/2022 Year End Projection includes park maintenanceNote: Totals may not sum due to rounding.Capital Improvement Projects There are no scheduled Capital Improvement Projects for Fiscal Year 2022/2023.There are approximately 10,064 parcels of residential and commercial properties within the District with approximately 563,797 front footage (FF), excluding parcels of public property which are not assessed for the costs of improvements.No. of ParcelsTotal Front FootageRateEstimated Assessment Revenue10,064563,796.64$1.90 $1,071,213.88 Note: Totals may not sum due to rounding.Landscape District Fund Balance:If the District rates remain the same for FY 2022/2023, the estimated year-end balance, based on current staffing levels, will be at a deficit in the amount of $6,806,405.At this time, the City Council Regular Meeting - Page 196 of 664
2022/2023 Landscape Maintenance Assessment District Page 7 of 8 Alternatives To Fund The District:Assessments for the District have not been adjusted since FY 1998/1999, at which time the rates were decreased from $1.97 per front footage (FF) to $1.90 per FF for both residential and commercial property. To keep up with the maintenance needs of the District, there is a need to adjust assessments in the future to maintain adequate staffing and operations.Energy and maintenance costs have increased over the last 20 years and yet the assessment rates have remained the same. As such, the District no longer collects sufficient funds to adequately fund its operations. General Fund may no longer be able to afford to subsidize the District. As such, it is recommended that the City Council consider implementing a plan to increase the assessment rates. The Proposition 218 process would need to start this FY 2022/2023, so that fee adjustments can be considered for implementation starting in FY 2022/2023. To address the need for change, the City with Willdan Financial Services started the Proposition 218 process so fee adjustments can be considered for implementation.In Fiscal Year 2019, pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with rocedural being Government Code section 53750 et seq., the City Council of the City of Lynwood, County of Los Angeles, State of California, proposedestablished Landscape and Lighting Districts (Lynwood Landscape District and Lynwood Lighting District) by forming a new landscape maintenance district that includes all parcels in the City of Lynwood. These change proceedings are being made to better address proportional special benefits and rising improvement costs throughout the City.In compliance with the 1972 Act, copies of the County Assessor's Map and the County Tax Collector's tax rolls were used in this Report. The assessment roll, for each parcel of land therein, shows the legal description; the County Assessor's code numbers; the assessable front footage used in calculating the assessment against the parcels and the total net assessment levied against the parcels for FY 2022/2023. The assessment roll is on file in the Office of the City Engineer and is incorporated herein by reference.

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2022/2023 Landscape Maintenance Assessment District Page 8 of 8 City Council Regular Meeting - Page 198 of 664
HWYIMPERIALNOT TO SCALEHWYH U.S. Post U.S. Post
For information on lines and dimensions of each lot of parcel, refer to to Plan 2017-L and the Los Angeles County Assessor's Maps on filewith the City Engineer. All publicly owned properties are assessmentexempt from the District.LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICTBOUNDARY MAP 2017-LEXHIBITA

ATTACHMENT A
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!A000006057855!
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Agenda Item # 17.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Mir
T. Fattahi, Acting City Engineer

Lorry Hempe, Public Works Special Projects Manager

SUBJECT:

LYNWOOD LIGHTING MAINTENANCE ASSESSMENT DISTRICT, FY 2022-2023 Recommendation:

1. Set the assessment rates for the Lynwood Lighting Assessment District at the existing $1.62
per front
footage for residential properties and at the existing
$3.01
per front footage for commercial properties; and

2. Adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING

LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR
2022-2023
”.

Background:

On
June 21, 2022
, the City Council approved the Engineer’s Report for the Lighting Assessment District (District), and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. An annual hearing is required to re-establish the district. The notice of public hearing was advertised in Lynwood Press Wave on June 30, 2022
, per Section
22553 of the California Streets and Highways Code.

Discussion and Analysis:

There are no proposed assessment rate increases; the assessment rates will remain the same as in prior years at $1.62
per front footage for residentially zoned properties and $3.01
per front footage for commercially zoned
properties. The estimated cost to operate the District for FY22-23
is
$1,311,288
. The estimated assessment
amount, tax redemption, interest and penalties are
$1,052,617
. The District’s estimated ending fund balance for
FY20-21 is
$1,150,213.

The District’s estimated ending fund balance for FY21-22 is $1,038,403.

The District is
projected to end FY22-23 with $
805,644
in fund balance.

City Council Regular Meeting - Page 382 of 664

Fiscal Impact:

The Report includes a cost of
$1,311,288
for the District for FY22-23
.

The estimated assessment amount, tax
redemption, interest and penalties are
$1,052,617.

The District is projected to end FY22-23 with $
805,644
in fund
balance.

Future of the District

The District provides essential services such as citywide lighting. The proposed budget for Street Lighting Division was kept flat to keep on-going operations within incoming revenues. Although, the City is doing its part to implement projects to conserve energy and reduce costs, other cost related to labor and materials and other capital improvement needs will continue to increase and may outpace revenues in the future. Assessment rates cannot be increased without a ballot protest process.

There are no proposed assessment rate increases; the assessment rates will remain the same at $1.62 per front footage for residentially zoned properties and $3.01 per front footage for commercially zoned properties.

Coordinated With:

City Attorney’s Office
City Manager’s Office
Finance Department
ATTACHMENTS:

Description
Resolution-Ordering the Levy of Annual Assessments for the Lighting Assessment District Attachment A -Diagram
Attachment B-Resolution 2022.107 Intention
to Levy Assesment
Attachment C-Resolution 2022_106 Adoption of Engineer's Report Attachment E - Public Hearing Notice
Attachment D- Engineer's Report
Attachment F - Preliminary Assessment
Roll (Part 1)
Attachment F - Preliminary Assessment
Roll (Part 2)
Attachment F-Preliminary Assessment Roll (Part 3)
City Council Regular Meeting - Page 383 of 664
1 RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING

THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2022-2023

WHEREAS, on June 21, 2022, the City Council of t he City of L ynwood adopted Resolution No. 2022.107 proposing the levy of the annual assessments for the Lynwood Lighting Assessment District (the “District”) and directing the Engineer to prepare a report in connection therewith; and

WHEREAS, on June 21, 2022, the Engineer submitted a report in relation to said District pursuant to the provisions of the “Landscaping and Lighting Act of 1972” (Part 2 of Division 15 of the Streets and Highways Code of the S tate of California) (the “Act”); and

WHEREAS, on June 21, 2022, the City Council adopted Resolution No.2022.106 approving the Engineer’s Report herein mentioned; and

WHEREAS, on June 21, 2022, the City Council adopted Resolution No.2022.107 fixing the time and place for a hearing on the matter of said District; and

WHEREAS, evidence has been received as to the publication of notice of said hearing in the time, form and manner required by law.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. Each and all of the recitals set forth above are true and correct.

Section 2. Following notice duly given, the City Council has held a full and fair public hearing regarding its Resolution No. 2022.107, the Engineer’s Report prepared in connection therewith, and the levy and collection of the proposed assessment against lots and parcels of land within the District for Fiscal Year 2022-2023, to pay for the costs and expenses for the improvements described in Section 5 below pursuant to the te rms and provisions of the Act. All interested persons were afforded the opportunity to hear and be heard. The City Council has considered all oral and written statements, protests and communications made or filed by interested persons.

Section 3. Based upon its review of the Engineer’s Report and other reports and information, the City Council hereby finds and determines that (i) the lands within the District will be benefited by the improvements described in Section 5 below, (ii) the District includes al l of the lands so benefited, and (iii) the net amount to be assessed upon the lands within the District for Fiscal Year 2022-2023 in accordance with the City Council Regular Meeting - Page 384 of 664
2 Engineer’s Report is apportioned by a formula and method which fairly distributes the net amount among all assessable lots and parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

Section 4. The diagram and assessment in the Engineer’s Report, as presented to the City Council and on file in the of fice of the City Clerk are hereby confirmed as filed.

The installation or construction and maintenance and servicing of existing and previously proposed public lighting facilities and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or servicing thereof, including but not limited to, electric current, repair of street light standards and fixtures and incidental costs including labor, material and equipment. Such improvements constitute the maintenance and operation of sidewalks, and streets, spe cifically, the maintenance and operation of existing and previously proposed public lighting facilities located in and along sidewalks and streets, including street lights and traffic signals, and facilities which appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, including the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care and supervision necessary to properly operate and maintain public lighting facilities and traffi c signals located in and along public streets within the city; and the installation and construction of previously proposed public lighting facilities, and facilities which appurtenant thereto or which are necessary or convenient for the maintenance or ope ration thereof, which have been paid or are to be paid from the proceeds of revenue bonds.

Section 6. The assessment is in compliance with provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessmen t pursuant to the Act.

Section 7. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 5 above for the Fiscal Year 2022- 2023.

Section 8. The County Auditor of Los Angeles County shall enter on the County Assessments Roll opposite each lot or parcel of land the amount of the assessment and such assessments shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net a mount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer.

Section 9. Public property owned by any public agency and in use in the performance of a public function and which is include d within the District shall not be City Council Regular Meeting - Page 385 of 664
3 subject to assessments pursuant to the Act for any of the costs and expenses of any of the improvements.

Section 10. The City Treasurer shall deposit all monies representing assessments collected by the County to the cre dit of a special fund for the District and such monies shall be expended only for the improvements described in Section 5 above.

Section 11. The adoption of this Resolution constitutes the levy of an assessment for the fiscal year commencing July 1, 2022 and ending June 30, 2023.

Section 12. A certified copy of the diagram and assessment shall be filed in the office of the City Engineer, with a duplicate copy on file in the office of the City Clerk and open for public inspection.

Section 13. The Lynwood Lighting Assessment for Fiscal Year 2022-2023 shall be $1.62 and $3.01 per foot of front footage for residentially and commercially zoned properties, respectively.

Section 14. Any shortfall may be covered by the General Fund per City Council direction until such time as Council duly approves an increase.

Section 15. The City Clerk is hereby authorized and directed to forthwith file a certified copy of said diagram and assessment with the County Auditor, together with a certified copy of this Resolution.

Section 16. This resolution shall take effect immediately upon its adoption.

Section 17. The City Clerk shall certify as to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 19th day of July, 2022.

_________________________________
Jorge Casanova
Mayor
ATTEST:

__________________________ _________________________________ María Quiñónez Ernie Hernandez
City Clerk City Manager

City Council Regular Meeting - Page 386 of 664
4 APPROVED AS TO FORM: APPROVED AS TO CONTENT:

__________________________ _________________________________ Noel Tapia Mir T. Fattahi
City Attorney Acting City Engineer

City Council Regular Meeting - Page 387 of 664
5 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of _______________, ______, and passed by the following vote:

AYES:

NOES:

ABSENT:

_________________________________
City Clerk, City of Lynwood

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. __________ on file in my office and that said resolutio n was adopted on the date and by the vote therein stated.

Dated this __________ day of ________________, _____.

____________________________________
City Clerk, City of Lynwood

City Council Regular Meeting - Page 388 of 664
HWYIMPERIALNOT TO SCALEHWYH U.S. Post U.S. PostEXHIBIT A City Council Regular Meeting - Page 389 of 664
RESOLUTION NO. 2022. 107

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

DECLARING ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2022- 2023 WITHIN

THE LYNWOOD LIGHTING ASSESSMENT DISTRICT PURSUANT TO
THE LANDSCAPING AND LIGHTING ACT OF 1972 ( COMMENCING
WITH STREETS AND HIGHWAYS CODE SECTION 22500 ET SEQ.) AND

FIXING THE TIME AND PLACE FOR HEARING PROTESTS AND
OBJECTIONS AS JULY 19, 2022
WHEREAS, the City Council has ordered and the Engineer, Willdan Financial Servicesservingon behalfof theCityof LynwoodasAssessmentEngineer, hasprepared and filed a report in writing containing all matters required by Council under Streets and Highways Code, Section 22565, et seq.; and
WHEREAS, said report has been presented to the City Council for consideration and has been received and approved.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoingrecitalsaretrue and correct, and incorporatesthem hereinas findingsand as a substantive part of this Resolution.

Section 2. Pursuant to the Landscaping and LightingAct of 1972commencing with Streets and Highways Code Section 22500 et seq., the City Council of the City of Lynwood herebydeclaresits intentionto orderthe levyand collectionof assessmentsagainstthe assessable lots and parcels of land within an existing assessment district designated Lynwood Lighting Assessment District" ( the " District) for fiscal year 2022- 2023 to pay for the costs of those existing and previously proposed improvements described as:

The installation or construction and maintenance and servicing of existing and previously proposed public lighting facilities and facilities which are appurtenant thereto or which are necessaryor convenientfor the maintenanceorservicingthereof, includingbutnotlimited to, electric current, repair of street light standards and fixtures and incidental costs including labor, material and equipment. Such improvements constitute the maintenance and operation of sidewalks and streets, specifically, the maintenance and operation of existingand previouslyproposedpubliclightingfacilitieslocatedin and alongsidewalks and streets, including street lights and traffic signals, and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, including the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care, andsupervisionnecessaryto properlyoperateandmaintainpubliclighting 1 City Council Regular Meeting - Page 390 of 664
accessible telephonically or videoconferencing; and/or changes on the phone numbers as well as access code and password, this information will be included in the July 19, 2022Agenda. Membersof the publicmayaccessthis Agendaonlineby visitingthe City of Lynwood' s website at www. lynwood. ca. us, clicking on " Agendas", selecting " Council Meeting Agenda Packet", and selecting "AGENDAJuly 19, 2022-RegularMeeting" to obtain the dial-in number and correlating access code. Members of the public may also use the following link: http:// Ivnwood. ca. us/ document- category/ agendas/ .

Section 5.The CityClerkis herebydirectedto causenoticeof the passageof this resolution to be given at the time and place in the form and manner provided by law.

Section 6. The proposed assessments for fiscal year 2022- 2023 will remain the same and are $ 1. 62 per foot of frontage for residentially zoned properties and $ 3. 01 per foot of frontage for commercially zoned properties.

Section 7. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 8. This Resolution shall take full force and effect immediately upon adoption by the City Council.

PASSED, APPROVED and ADOPTED tic,- clay une, 2022.

Jorge' - i - -
Mayor
ATTEST:
e71-(__a/ ii; E. G9P6(.1,(67 -
Maria Quin6nez Ernie H_ nan• ez
City Clerk City Ma se
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

N rr p.

Noel Tapia i Mir T attahi
City Attorney Actinity Engineer
3 City Council Regular Meeting - Page 391 of 664

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do herebycertify that theforegoingResolutionwas passedandadoptedby the CityCouncilof the City of Lynwood at a meeting held on the 21stday of June, 2022.

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM

SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
1/4-6241: 4-)2,
u4ren___)
Maria Quinonez,
City Clerk

STATE OF CALIFORNIA

C-
16(_ dziZ; 42, 6 - ed- -
Maria Quinonez,
City Clerk
4 City Council Regular Meeting - Page 392 of 664
RESOLUTION NO. 2022. 106

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD

APPROVING THE ENGINEER' S REPORT PREPARED PURSUANT TO
CALIFORNIA STREETS AND HIGHWAYS CODE SECTION 22565 ET
SEQ., AS ORDERED BY THE CITY COUNCIL ON JUNE 21, 2022,

RELATING TO THE LYNWOOD LIGHTING ASSESSMENT DISTRICT
WHEREAS, the City Council, on June 21, 2022, adopted Resolution No. 2022.106 directingthe Engineerto prepare and file with the City Clerk, a report in writing in accordance with the requirements of Streets and Highways Code, Section 22565 et. seq.; and
WHEREAS, Willdan Financial Services, as Assessment Engineer on behalf of the Cityof Lynwood, haspreparedandfiled said reportwiththe CityClerkandthe CityClerk has presented said report to this City Council for consideration.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:

Section 1. The CityCouncilof the Cityof Lynwoodherebyfinds anddeclaresthat the foregoingrecitalsaretrue and correct, and incorporatesthem hereinasfindingsand as a substantive part of this Resolution.

Section 2. The City Council has considered said report as filed and is hereby approved.

Section 3. Said report, including any plan and diagram 2017- A, estimates of costs and expenses and assessments shall be placed on file in the office of the City Clerk and may be examined by any interested persons.

Section 4. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
1 City Council Regular Meeting - Page 393 of 664
PASSED, APPROVED and ADOPTED this
21St
day of June, 2022.

Jorge Ca a ova
Mayor
ATTEST:

C71(1-14Z; 421,t/40
9C,"
2 Maria Quinonez Ernie ern: ndez
City Clerk City anater
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

Noel Tapia Mir T fattahi
City Attorney Actin, ity Engineer
2 City Council Regular Meeting - Page 394 of 664

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certifythattheforegoingResolutionwaspassedandadoptedbytheCityCouncilof the City of Lynwood at a meeting held on the
21st
day of June, 2022.

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM

SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Maria Quinonez,
City Clerk

STATE OF CALIFORNIA

City of Lynwood

Lighting Assessment District

2022/2023 ENGINEER’S REPORT

27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500|800.755.6864
F 951.587.3510|888.326.6864

Property Tax Information Line
T. 866.807.6864

www.willdan.com
Public Hearing: July 19, 2022
Intent Meeting: June 21, 2022
City Council Regular Meeting - Page 398 of 664
City Council Regular Meeting - Page 399 of 664

TABLE OF CONTENTS

I. INTRODUCTION ...................................................................................................... 1 II. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT ............................................ 1 III. PLANS AND SPECIFICATIONS ............................................................................. 3 IV. BOUNDARY DIAGRAM .......................................................................................... 3 V. ESTIMATE OF COSTS ............................................................................................ 3 VI. ASSESSMENT OF ESTIMATED COST ................................................................. 7 VII. ASSESSMENT ROLL .............................................................................................. 8 VIII. EXHIBIT A ............................................................................................................... 9

City Council Regular Meeting - Page 400 of 664

2022/2023 Lighting Assessment District Page 1 of 9 I. INTRODUCTION
Pursuant to the Landscaping and Lighting Act of 197 2 (the “1972 Act”), it is required that an Engineer's Report be prepared and filed with the City Clerk, who in turn presents it to the City Council for its consideration.

This Engineer’s Report (“the Report”) is required b y the 1972 Act (Division 15, Part 2, Streets and Highways Code of the State of Californi a). The Report contemplates the levying of an assessment to provide funds necessary to construct, install, maintain and service public lighting facilities and appurtenant facilities within the Lynwood Lighting Assessment District (the "District"). The assessment will be levied against those parcels of land within said District benefiting from the improvements, as required by law.

Proper construction, installation, maintenance and servicing of the street lighting facilities within the District benefit all assessable properti es within the District by providing proper illumination for ingress and egress and safe traveling at night to and from such properties.

It also improves protection of such properties from crime and vandalism. The foregoing also enhances property values.

Since the lighting facilities are located along the public streets, the front footage of each benefited property along such streets is used as th e base for distributing the overall costs of the improvements in proportion to the estimated benefits to be received by each assessable parcel.

The different assessments for commercial and residential properties are based on different lumen and other design requirements along major arterial and residential streets.

II. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
 The installation or planting of landscaping.
 The installation or construction of statuary, foun tains, and other ornamental structures and facilities.
 The installation or construction of public lightin g facilities.  The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, g rading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.

City Council Regular Meeting - Page 401 of 664

2022/2023 Lighting Assessment District Page 2 of 9  The maintenance or servicing, or both, of any of t he foregoing.  The acquisition of any existing improvement otherw ise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
 The cost of preparation of the report, including p lans, specifications, estimates, diagram, and assessment;
 The costs of printing, advertising, and the publis hing, posting and mailing of notices;
 Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Any expenses incidental to the issuance of bonds o r notes pursuant to Section 22662.5.
 Costs associated with any elections held for the a pproval of a new or increased assessment.

The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenanc e, operation, and servicing of any improvement, including:
 Repair, removal, or replacement of all or any part of any improvement.  Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertil izing, or treating for disease or injury.
 The removal of trimmings, rubbish, debris, and oth er solid waste.  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

As generally defined by the Act, the improvements a nd the associated assessment for each Zone may include the following:

 The maintenance and operation of streets and sidew alks within the District, including the maintenance and servicing of street l ights, traffic signals, and City Council Regular Meeting - Page 402 of 664

2022/2023 Lighting Assessment District Page 3 of 9 appurtenant facilities located in and along public streets, roadways and rights- of-way in the City.

 “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of t he street lights, traffic signals and appurtenant facilities, including repair, removal or replacement of all or part of any street lights, traffic signals, or appurtenant facilities and the cleaning, sandblasting and painting of street light s, traffic signals, and appurtenant facilities to remove or cover graffiti.

 “Servicing” means the furnishing of electric curre nt or energy, gas or other illuminating agent for the street lights, traffic s ignals, and appurtenant facilities.

III. PLANS AND SPECIFICATIONS
The plans and specifications for the improvements w ithin the District are on file with the City Engineer and incorporated herein by reference. Plan No. 2017-A shows the approximate location, nature and extent of the street lighting system of the District.

Existing and previously proposed improvements for F iscal Year (FY) 2022/2023 include, but are not limited to, the following: electrical energy; repair and replacement of street light standards and fixtures; labor; materials; equipment ; miscellaneous improvements; overhead and incidental work and construction of capital improvement projects as required.

IV. BOUNDARY DIAGRAM
A diagram of the District, showing the exterior boundaries of the District, is attached hereto as Exhibit A and is incorporated herein by reference. Reference is made to the Los Angeles County Assessor's Maps for FY 2022/2023 for a detai led description of the lines and dimensions of any lots or parcels within the District.

V. ESTIMATE OF COSTS
Maintenance and Servicing Costs

Taking into consideration the current economic cons traints and resulting current fiscal budgetary policies, a conservative projected estima te of the maintenance and servicing costs with respect to the District (including incid ental expenses) for the one-year period beginning July 1, 2022 and ending June 30, 2023 is as follows:

City Council Regular Meeting - Page 403 of 664

2022/2023 Lighting Assessment District Page 4 of 9 Street Lighting

Description FY 2021/2022 Year
End Projection
FY 2022-2023
Proposed Budget
Street Lighting $991,401 $1,092,740
$991,401 $1,092,740

Capital Improvement Projects (CIP) $77,029 $0
Reserve 0 218,548
Debt Service 0 0
General Fund Contribution 0 0
Total Cost $1,068,430 $1,311,288

Breakdown (Street Lighting)
A. Personnel $269,459 $277,450
B. Maintenance & Operations 653,198 746,120
C. CIP 77,029 0
D. Debt Service 0 0
E. Reserves 0 218,548
F. Unfunded Accrued Liability 68,744 69,170
Total Cost $1,068,430 $1,311,288
Note: Totals may not foot due to rounding.

Capital Improvement Costs

In 1993, the City of Lynwood (“the City”) entered i nto an agreement with the District pursuant to Section 22662 (b) of the 1972 Act whereby the District received an advance of $2,560,703 from the City for deposit to the Capital Improvement Fund and agreed to repay the City through the levy and collection of annual assessments for those improvements over a period of twenty (20) years, commencing with FY 1992-1993 until the loan was paid.

With the 2003 bond refinancing, the annual installment was $295,350. Since FY 2015/2016 this installment no longer applies.

On December 10, 2019, the California Energy Commiss ion approved a Loan Agreement with the City of Lynwood to implement certain energy conservation measures including the conversion of City owned street lights and external lights at various facilities to LED. Debt Service payment will Start December 22, 2023 and terminate on December 22, 2036.

City Council Regular Meeting - Page 404 of 664

2022/2023 Lighting Assessment District Page 5 of 9 Total Estimated Costs

The estimated balance from FY 2021/2022, plus the t otal amount to be assessed against parcels within the District for FY 2022/2023, consi sting of the maintenance and servicing costs, arriving at the ending balance is as follows:

Description
FY 2022/2023
Proposed
Assessment

Street Lighting Costs ($1,092,740)
Annual Installment (Revenue Bonds) 0
Total Cost ($1,092,740)

Estimated FY 21-22 Balance (Exhibit B) 1,038,403

Total Liability (Total Cost Less Balance) ($54,337)

Estimated Revenue & Amount to Be Assessed at No
Change in Foot Frontage (FF) Rate 1,068,529

Transfer-In Estimate 0

Capital Improvement Projects (CIP) 0

Other Revenue Estimate 10,000

CEC Loan Reimbursement 0

Reserve (218,548)

Debt Service 0

General Fund Contribution 0

Estimated Balance at End of FY 2022/2023 $805,644
Note: Totals may not foot due to rounding.

City Council Regular Meeting - Page 405 of 664

2022/2023 Lighting Assessment District Page 6 of 9 Estimated Fund Balances

Status
Fiscal Year
2020/2021
Actual
Fiscal Year
2021/2022 Year
End Projection
Fiscal Year
2022/2023
Budget Estimate
Beginning Fund Balance $816,746 $942,940 $1,038,403
Lighting Assessment 1,018,275 1,042,617 1,042,617
Interest & Penalties 7,279 7,279 10,000
Miscellaneous 16,002 16,002 0
Tax Redemption 20,966 20,966 25,912
CEC Reimbursement 444,321 77,029 0
Transfer-In 0 0 0
Lighting Maintenance Cost (930,650) (991,401) (1,092,740) CIP (450,000) (77,029) 0
Debt Services 0 0 0
Reserve 0 0 (218,548)
General Fund Contribution 0 0 0
Fund Balance $942,940 $1,038,403 $805,644
Note: Totals may not foot due to rounding.

Capital Improvement Projects
Capital Improvement project is for LED Light Conver sion. In Fiscal Year 2019, the City entered into an agreement with Go Green for the con version of street lights to LED. This work was implemented in Fiscal Year 2020. The City received a loan from the State of California Energy Commission (CEC) in the amount o f $1,547,407 to pay for the conversion. The first loan payment to the CEC star ts on December 22, 2023. It is anticipated that the savings from the energy cost will pay the conversion.

There are no scheduled Capital Improvement Projects for Fiscal Year 2022/2023.

City Council Regular Meeting - Page 406 of 664

2022/2023 Lighting Assessment District Page 7 of 9 VI. ASSESSMENT OF ESTIMATED COST
There are approximately 10,064 parcels of property, with approximately 563,797 linear feet of front footage, within the District, excluding pa rcels of public property, which are not assessed for the cost of improvements.

Estimated Assessment Revenue:

Zone No. of
Parcels Feet Rate Amount
1 9,152 470,799.89 $1.62 $762,696
2 912 92,997.07 $3.01 279,921
Total 10,064 563,796.96 $1,042,617.23
Note: Totals may not foot due to rounding.

Street Lights:

Lumens
Number of
Southern
California
Edison Owned
Number of
City Owned Total
7,000 8 191 199
9,500 1,842 344 2,186
15,000 196 52 248
20,000 138 711 849
25,000 653 0 653
35,000 8 0 8
47,000 19 0 19
55,000 13 0 13
Total 2,877 1,298 4,175

1. Residential properties with 7,000 to 15,000 lumens/light.

2. Commercial properties with 20,000 to 55,000 lumens/light.

Lighting District Fund Balance:

If the District rates remain the same for FY 2022/2023, the estimated year-end balance will be $805,644 based on current staffing levels.

At this time, is it is recommended that the District rates remain the same for FY 2022/2023.

City Council Regular Meeting - Page 407 of 664

2022/2023 Lighting Assessment District Page 8 of 9 Alternatives To Fund The District:

Assessments for the District have not been adjusted since FY 1992/1993, at which time the rates were decreased from $1.74 FF to $1.62 FF for residential and from $3.24 per FF to $3.01 per FF for commercial.

At this time the District is projected to have a ba lance of $805,644 at the end of FY 2022/2023 based on current staffing levels.

The operations include energy costs, maintenance co sts; additional lighting needs as well lighting projects to comply with State mandated AB 32. These items will increase the Districts operational costs. In the near future th e City will need to consider increasing the assessment rates through the Proposition 218 process.

To address the need for change, the City with Willd an Financial Services started the Proposition 218 process so fee adjustments can be considered for implementation.

In Fiscal Year 2019, pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (the “1972 Act”), and in compliance w ith the substantive and procedural requirements of Article XIIID, section 4 of the Cal ifornia State Constitution (the “California Constitution”) and the Proposition 218 Omnibus Impl ementation Act (the “Omnibus Act”), being Government Code section 53750 et seq., the Ci ty Council of the City of Lynwood, County of Los Angeles, State of California, propose s to dissolve the City’s previously established Landscape and Lighting Districts (Lynwo od Landscape District and Lynwood Lighting District) by forming a new landscape maintenance district that includes all parcels in the City of Lynwood. These change proceedings a re being made to better address proportional special benefits and rising improvement costs throughout the City.

VII. ASSESSMENT ROLL
In compliance with the 1972 Act, copies of the County Assessor's Map and the County Tax Collector's tax rolls were used in this Report. The assessment roll, for each parcel of land therein, shows the legal description, the County Assessor's code numbers, the assessable front footage used in calculating the assessment ag ainst each individual parcel and the total net assessment levied against the parcel. All assessable parcels of land in said District were included in one of the two zones of benefit as set forth herein above. The assessment rolls are on file in the office of the City Clerk and are incorporated herein by reference. The Plans and Specifications are also on file in the Of fice of the City Engineer and are incorporated herein by reference.

City Council Regular Meeting - Page 408 of 664

2022/2023 Lighting Assessment District Page 9 of 9 VIII. EXHIBIT A
City Council Regular Meeting - Page 409 of 664

COMPTONWILLOWBROOK

PARAMOUNT

SOUTH GATE
WATTSABCDE 12345
12345
MARTIN LUTHER KING JR.

LONG BEACH BLVD.BLVD.

MARTIN LUTHER KING, JR.

IMPERIAL
HWY
IMPERIALHWY.

ABBOTT ROAD
ATLANTIC AVE.

I-105

FREEWAY
CENTURYST.STATEST.

AVE.

SANTA FESTATE
LONG BEACH BLVD.

BULLISROAD
BLVD.

MARTIN LUTHER KING, JR.

BLVD.

LONG BEACH BLVD.

FHCAEBGNOL WY

NOT TO SCALE
ST.STATE ST.STATE
LONG BEACH BLVD.TWEEDY BLVD.

IMPERIAL
HWY
ABCED
H
ABBOTT
ROAD

BULLISROAD
ATLANTIC AVE.

Office U.S. Post
Office U.S. Post IMPERIAL HWY.

WALNUT PARK

EASTRANCHODOMINGUEZ

SOUTH GATE
ST. FRANCISMEDICALCENTER

LYNWOODHIGH SCHOOL
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Agenda Item # 18.

AGENDA STAFF REPORT
DATE:

July 19, 2022

TO:

Honorable Mayor and Members of the City Council

APPROVED BY:

Ernie Hernandez, City Manager

PREPARED BY:

Ernie Hernandez, City Manager
Noel Tapia, City Attorney

SUBJECT:

CONSIDERATION OF AN ORDINANCE AMENDING SECTION 25-2001-1 OF CHAPTER 25 (ZONING) OF THE LYNWOOD MUNICIPAL CODE AND APPENDIX A TO CHAPTER 25 (USES BY ZONING DISTRICT); AND CONSIDERATION OF AN ORDINANCE ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO THE

LICENSING AND REGULATION OF CANNABIS RETAILERS AND
ACCOMPANYING AMENDMENTS TO SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS REGULATIONS OF THE LYNWOOD MUNICIPAL CODE; CONSIDERATION OF AN ORDINANCE ADDING SECTION 36 TO CHAPTER 4 OR

THE CITY CODE, ESTABLISHING A CANNABIS RETAILER BUSINESS LICENSE TAX; AND CONSIDERATION OF A RESOLUTION PLACING THE CANNABIS RETAILER BUSINESS LICENSE TAX ORDINANCE ON THE NOVEMBER 8, 2022 BALLOT.

Recommendation:

Staff respectfully recommends:

1.) CONDUCT a public hearing and receive public testimony regarding the Ordinance Amending Section 25- 2001-1 of Chapter 25 (Zoning) of the Lynwood Municipal Code and Appendix A to Chapter 25 (Uses by Zoning District); and

RELATING TO THE LICENSING AND REGULATION OF CANNABIS RETAILERS IN THE CITY OF LYNWOOD AND ACCOMPANYING AMENDMENTS TO SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS REGULATIONS OF THE LYNWOOD MUNICIPAL CODE; and City Council Regular Meeting - Page 574 of 664

4.) That the Lynwood City Council adopt the attached resolution entitled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, PLACING A BALLOT MEASURE ON THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF LYNWOOD AN ORDINANCE NO. ____ ENACTING A CANNABIS RETAILER BUSINESS LICENSE TAX; SETTING DEADLINES FOR FILING WRITTEN ARGUMENTS FOR AND AGAINST THE INITIATIVE MEASURE, AND REBUTTALS THEREOF; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND RELATED MATTERS TO SAID

MUNICIPAL
ELECTION.

5.) INTRODUCE for first reading, read by title only, and waive further reading, the attached Ordinance entitled “AN ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD ENACTING A CANNABIS RETAILER

BUSINESS LICENSE TAX ON THE RETAIL BUSINESS OF SELLING CANNABIS PRODUCTS TO

PROVIDE CITY GENERAL FUND SERVICES THAT RESIDENTS NEED AND WANT, INCLUDING BUT

NOT LIMITED TO SENIOR CITIZEN PROGRAMS, CITY BEAUTIFICATION EFFORTS, ENFORCEMENT

OF ILLEGAL CANNABIS OPERATIONS, PUBLIC SAFETY, HOUSING PROGRAMS, RECREATION

SERVICES, INFRASTRUCTURE, HOMELESS REDUCTION AND OTHER CITY EFFORTS

6.) That the Lynwood City Council select from amongst themselves two of its members to serve as cannabis ad hoc committee members.

Background:

In December 2016, the City adopted Chapter 4-34 allowing and establishing comprehensive regulations legalizing, controlling, and regulating commercial cannabis activities related to nonmedicinal cannabis for use by adults twenty-one (21) years of age and older, including the storefront retail sale of nonmedical cannabis for use by adults twenty-one (21) years of age and older in the City as permitted by Proposition 64 -the Adult Use of Marijuana Act (“AUMA”), which was overwhelmingly approved by California voters.

Although permitted under
AUMA, the City elected to prohibit retail store front sales of nonmedical cannabis and those commercial cannabis activities related to wholesale distribution, warehousing, and manufacturing of medical and nonmedical cannabis.

Discussion and Analysis:

During the 5 years since the City enacted Chapter 4-34, the commercial cannabis industry has developed and been tested in other cities throughout the State of California. City staff now requests that the City Council consider permitting limited retail cannabis sales in certain zoning districts in the City, subject to a strong and effective regulatory system with regard to the storefront retail sale of medicinal and nonmedicinal cannabis that protects the public health, safety, and environmental resources, provides a consistent regulatory pathway for the storefront retail sale of medicinal and nonmedicinal cannabis consistent with State regulations, fosters healthy, diverse, and economically viable the cannabis retailers that contribute to the local economy, and ensures that environmental, public health, safety and nuisance factors related to the storefront retail sale of medicinal and nonmedicinal cannabis.

In order to facilitate the approval and implementation of retail cannabis sales, City staff requests that the City Council consider approving the following items:

1. Amendment to the City’s Zoning Code;

2. Approve and adopt a Retail Cannabis License Ordinance; and

3. Approve a Resolution Placing a Measure on the November Ballot Asking Lynwood Voters to Consider Approving a Cannabis Retailer Business License Tax and Introduce an Ordinance Enacting a Cannabis Retailer Business License Tax on the Retail Business of Selling Cannabis Products

Zoning Code Amendment

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Staff is recommending to update and amend Chapter 25 of the Lynwood Municipal Code in an effort to generate additional revenues for critical police, fire and quality of life services. As discussed at the June 21, 2022, regular City Council meeting when adopting the updated second year budget of the biennial fiscal year 2021-22 and 2022-23 budget, several funds critical to the City’s ability to provide public services have large increases in financial liabilities. For example, over the last several fiscal years the landscape fund has grown to a deficit projected to be over $6 million dollars in fiscal year 2022-23. With limited opportunities to generate additional revenues, City staff is exploring all options to include reduction of services, cost efficiency analysis, and initiating new revenue opportunities such as the proposed update and amendment to Chapter 25 of the Lynwood Municipal Code.

Allowing limited retail cannabis sales will provide land uses that better meet the needs of the City by providing a more balanced and functional mix of land uses, plans for new patterns of land uses that better complement the overall character and existing uses, promotes land uses that capitalize on the opportunities and mitigates the negative impacts of the City’s adjacency to major transportation systems, better plans for a range of commercial sites that serve the needs of those living, working, and visiting Lynwood and help develop the Lynwood a viable commercial retail center for the area, and provides commercial merchandising and retailing establishments that serve the needs of the residents and businesses of Lynwood. Additionally, as previously stated, the new uses proposed under this Ordinance would expand the commercial revenue base in the City of Lynwood, which would provide additional funding for important public services. Based on these factors, which are outlined in more detail in the findings contained in the Resolution, the required findings under Section 25-115-4 of the Lynwood Municipal Code.

In furtherance of these goals, City staff requests that the City Council consider amending Chapter 25 (Zoning) to allow the storefront retail sale of medicinal and nonmedicinal cannabis within the following City zoning districts: C- 2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District), including any overlay zones, in particular any SPA (Specific Plan Area) covering the C-2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District), subject to the requirements of Chapter 4-35, which proposes establishing strong and comprehensive development standards and permitting requirements for storefront retail sales of medicinal and nonmedicinal cannabis.

On July 6, 2022, the Planning Commission voted to recommend to the City Council the approval of an Ordinance amending Section 25-2001-1 of Chapter 25 (Zoning) of the Lynwood Municipal Code and Appendix A to Chapter 25 (Uses by Zoning District).

Retail Cannabis Regulatory Permit Ordinance

Staff recommends the City Council consider the approval and adoption of an ordinance that would establish procedures for the application and award of retail cannabis business permits. The award process will include scoring based on criteria contained in the ordinance. Applicants will be scored on (1) the owner’s qualifications, (2) plans, renderings and location, (3) business and operations plan, (4) security plan, (5) safety plan, (6) neighborhood compatibility plan, (7) community benefits plan and (8) a labor and employment plan. The ordinance allows the City Council to award up to six retail cannabis business permits.

The ordinance also establishes operation requirements that regulate the operation of such businesses. These requirements include security measures, hours of operation, sign guidelines, odor control devices, background check requirements, minimum distance requirements form sensitive uses (defined as day care centers, public parks, schools, and youth centers), prohibition on loitering and other regulations designed to limit potential impacts on the community.

The ordinance includes a community benefits plan where applicants are scored on the strength of their community benefits plan. Applicants may pledge to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one (1) percent of projected gross receipts of the applicant to the following City sponsored programs/cause. The City may use these funds for such purposes as senior citizen programs, City beautification efforts, the enforcement of illegal cannabis operations, public safety, housing programs, recreation services, infrastructure, general fund, and/or any other proposed City efforts.

The ordinance also includes a procedure to revoke a permit if the City finds that a permit holder is operating in breach of the terms of the permit. Similarly, the ordinance also provides that permit holders are subject to fines and possible criminal prosecution if the City finds that the permit holder is operating in violation of the City’s City Council Regular Meeting - Page 576 of 664
Municipal Code.

Importantly, the ordinance provides that retail cannabis business permits shall not become valid, even if the Council awards the permits, unless and until City residents approve a cannabis retailer business license tax.

Measure Regarding Cannabis Retailer Business License Tax

As discussed above, on July 6, 2022, staff recommended to the Planning Commission that it recommend to the City Council that it update and amend Chapter 25 of the Lynwood Municipal Code in an effort to generate additional revenues for critical police, fire and quality of life services such as recreation and community services programs. Staff recognizes that the additional revenue stream created by retail cannabis sales will help address institutional budgetary concerns.

Essential to the City’s ability to take advantage of the revenue opportunities created by allowing limited retail cannabis sales is establishing an appropriate cannabis retailer business license tax. As previously stated, these revenues will help fund critical public services. Staff is recommending approval of a tax rate ranging from five to ten percent, but is recommending that initially a rate of five percent be applied as part of the initial application process. Staff recommends implementation of the five percent tax rate for the time being to be very competitive in the market and to help stimulate the local economy, restore lost revenue and to have the resources to continue providing core services to the public, such as public safety, public works and critical quality of life programs such as recreation and community services. Changes in the tax rate can be considered in the future when post pandemic economies return and/or the needs of the community change.

Proposition 218 as contained in the California Constitution requires the City to obtain majority voter approval of any business license tax increase or addition. To that end, staff recommends that the City Council adopt a resolution that will facilitate the placing of a measure asking the voters to consider the approval of a cannabis retailer business license tax on the November 8, 2022 election ballot.

As the second step in placing the cannabis retailer business license tax before the voters, the City Council should introduce for first reading,
read by title only, and waive further reading, the attached Ordinance establishing a cannabis retailer business license tax and directing that it be placed on the November 8, 2022 election ballot.

Environmental Determination

The adoption of the Ordinance Amending Section 25-2001-1 of Chapter 25 (Zoning) of the Lynwood Municipal Code and Appendix A to Chapter 25 (Uses by Zoning District) is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), which states the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. It may be seen with certainty that there is no possibility that the amendment of Chapter 25 (Zoning) and its Appendix A, which provides clarity, creates consistency of terms and definitions, amends the Zoning Code to reflect current commercial market trends may have a significant effect on the environment. Moreover, no specific project or use will be approved in any specific location in the City through the approval of this Ordinance.

The actions contemplated by the respective ordinances establishing a retail cannabis business license process and establishing a corresponding business license tax are exempt from the California Environmental Quality Act (“CEQA”) under Section 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State of California (“State”) Code of Regulations and the holding by the State Supreme Court in Tuolumne Jobs & Small Business Alliance v.

Superior Court (2014) 59 Cal.4th 1029.

Public Notice Process

Pursuant to California Government Code Section 65091, a public hearing notice has been published in at least one newspaper of general circulation within the local agency. As such, the notice was published in the Daily Journal Press Telegram on July 9, 2022. In addition, the notice was posted at three (3) public locations, which included inside City Hall, outside City Hall at the kiosk, and on the City’s website.

Fiscal Impact:

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Staff projects that at the five percent cannabis business license tax rate will generate an estimated $3 to $6 million in new general fund revenues.

Coordinated With:

City Manager
City Attorney
ATTACHMENTS:

Description
Resolution of the Planning Commission Recommending Zone Code Amendment Draft Ordinance Amending the Zoning Code
Ordinance Establishing a Retail Cannabis License Program Ordinance Enacting a Retail Cannabis License Tax
Resolution Placing Ballot Measure
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1 CITY OF LYNWOOD

LOS ANGELES COUNTY, CALIFORNIA

ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO

THE LICENSING AND REGULATION OF CANNABIS RETAILERS IN THE

CITY OF LYNWOOD AND ACCOMPANYING AMENDMENTS TO
SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE

WHEREAS, Section 7 of Article XI of the California Constitution authorizes the City of Lynwood (the “City”) to make and enforce within its jurisdictional limit ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its residents; and

WHEREAS, on November 8, 2016, California voters approved Proposition 64, titled “The Adult Use of Marijuana Act ” and enacted a State-level statutory scheme for legalizing, controlling, and regulating commercial c annabis activity related to nonmedicinal cannabis for use by adults twenty-one (21) years of age and older, including the storefront retail sale of nonmedical cannabis for use by adults twenty-one (21) years of age and older, and on June 27, 2017, the Medicinal and Adult Use Cannabis Regulation and Safety Act was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of commercial cannabis activity related to medicinal and nonmedicinal use in California; and

WHEREAS, on December 20, 2016, the City Council of the City of Lynwood (the “City Council”) adopted Ordinance No. 1688 adding Chapter 4-34 to the City of Lynwood Municipal Code (the “City Municipal Code”) and accepting Planning Commission recommendations, with Chapter 4 -34 of the City Municipal Code being subsequently amended by Ordinance No. 1700 (adopted by the City Council on September 19, 2017) and by Ordinance No. 1707 (adopted by the City Council on January 2, 2018), licensing and regulating all forms of commercial cannabis activity, except the storefront retail sale of medicinal and nonmedicinal cannabis; and

WHEREAS, Chapter 4 -34 of the City Municipal Code presently prohibit s the storefront retail sale of medicinal and nonmedicinal cannabis; and

WHEREAS, the City Council desires to establish a strong and effective regulatory system with regard to the storefront retail sale of medicinal and nonmedicinal cannabis that protects the public health, safety, and environmental resources, provides a consistent City Council Regular Meeting - Page 587 of 664

2 regulatory pathway for the storefront retail sale of medicinal and nonmedicinal cannabis consistent with State regulations, fosters healthy, diverse , and economically viable the cannabis retailers that contribute to the local economy, and ensures that environmental, public health, safety and nuisance factors related to the storefront retail sale of medicinal and nonmedicinal cannabis are adequately addressed; and

WHEREAS, in furtherance of these goals, the City Council desires to add Chapter 4-35 to the City Municipal Code and amend Chapter 4-34 of the City Municipal Code to establish development standards and permitting requirements to allow the storefront retail sale of medicinal and nonmedicinal cannabis within limited City zoning districts; and

WHEREAS, the City Council further desires to implement reasonable regulations that are intended to address the secondary negative impacts to the City and its resources, including, nuisance impacts and criminal impacts that may result from the operation of cannabis retailers in the City and to ensure that the effects such impacts may have on the health, safety, and welfare of businesses and residents within the City are mitigated to the greatest extent possible; and

WHEREAS, the City Council is aware that both community benefits and potential adverse impacts may result from the operation of cannabis retailers in the City, and , therefore, desires to: (1) help ensure that all such impa cts are adequately mitigated and offset by the potential community benefits those businesses can provide to the City and its residents and (2) to help provide sufficient code enforcement and law enforcement resources to address such adverse impacts and to ensure compliance with all applicable laws and regulations.

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

SECTION 1. This Ordinance shall be known and may be cited as “The Lynwood Cannabis Retail Sales Regulation and Public Safety Ordinance” (the “Ordinance”).

SECTION 2. Purpose and Intent. The purpose and intent of this Ordinance is to accommodate the needs of medically -ill persons in need of cannabis for medicinal purposes, as advised and recommended by their health care provider(s), and adults over the age of twenty -one (21), and to implement State of California (“State”) law, w hich includes, but is not limited to the provisions of the Medicinal & Adult -Use Cannabis Regulation & Safety Act (hereinafter, “MAUCRSA”), as may be amended and augmented under State law, while imposing regulations on the conduct of business and use of land to protect the City of Lynwood’s (the “City”) neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this Ordinance to regulate the retail sale of cannabis and cannabis products in a manner which is responsible, which protects the health, safety, and welfare of the residents of the City, and which enforces rules and regulations consistent with State law. In part to meet these objectives, a retail City Council Regular Meeting - Page 588 of 664

3 cannabis business permit shall be required to own or to operate a cannabis retailer within the City. Further, this Ordinance’s requirement for a cannabis retailer to possess a retail cannabis business permit is in addition to any other permits, licenses , and approvals which may be required to conduct business in the City, and is in addition to any permits, licenses, and approvals required under State or County of Los Angeles (“County”) law.

SECTION 3. Legal Authority. Pursuant to Section 7 of Article X I of the State Constitution, and the provisions of the MAUCRSA, as may be amended and augmented under State law and any subsequent State legislation regarding the same, the City is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits for cannabis retailers. Except as otherwise provided in this Ordinance, any standards, requirements, and regulations regarding hea lth and safety, security, and worker protections established by the State, or any of its departments or divisions, shall be the minimum standards applicable to the retail sale of cannabis and cannabis products in the City.

SECTION 4. Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended by adding Chapter 4-35 (Cannabis Retailers) to read as follows:

Chapter 4-35: CANNABIS RETAILERS

4-35.1: Cannabis retailers prohibited unless specifically authorized.

a. Except as specifically authorized by this Chapter 4-35, to the fullest extent permitted by State law, the City expressly prohibits any and all cannabis retailers within the City.

b. Nothing in this Chapter 4-35 shall be construed or interpreted to permit the commercial possession, furnishing, manufacture, cultivation, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp.

c. To the extent expressly authorized in this Chapter 4-35 of the City Municipal Code, cannabis retailers are permitted in the City, subject to the satisfaction of all requirements set forth in this Chapter 4-35, MAUCRSA, and all other applicable State and local laws, rules, and regulations.

4-35.2: Compliance with laws.

It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operating in a manner compliant with all applicable State and local laws and any regulations promulgated thereunder. Nothing in this Chapter 4-35 shall be construed as in conflict with State law.

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4 4-35.3: Definitions.

When used in this Chapter 4-35, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

“Applicant” means the person applying for the retail cannabis business permit under this Chapter 4-35 (not the owners or the managers of the applicant).

“Cannabis” has the same meaning as defined in Chapter 4-34 of the City Municipal Code.

“Cannabis Concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter 4-

35. A cannabis concentrate is not considered food, as defined by Section 109935 of the State Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code.

“Cannabis Product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

“Cannabis Retailer” or “ Retailer” or “ Dispensary” means a location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including a cannabis retailer establishment that delivers cannabis and cannabis products.

“Caregiver” or “Primary Caregiver” has the same meaning as that term is defined in Section 11362.7 of the State Health & Safety Code.

“City” means the City of Lynwood.

“City Attorney” means the City Attorney of the City of Lynwood or his or her designee(s).

“City Council” means the City Council of the City of Lynwood.

“City Manager” means the City Manager of the City of Lynwood or his or her designee(s).

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5 “Commercial Cannabis Activity” has the same meaning as defined in Chapter 4 -34 of the City Municipal Code

“Commercial Cannabis Business” has the same meaning as defined in Chapter 4 -34 of the City Municipal Code.

“County” means the County of Los Angeles.

“Customer” means a natural person twenty-one (21) years of age or over or a natural person eighteen (18) years of age that is a qualified patient or primary caregiver.

“Day Care Center” or “Childcare Facility” means a facility, other than a family day care home, serving infant, toddler, preschool, and school age children , licensed by the State Department of Social Services pursuant to Section 1596.951 of the State Health & Safety Code. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “Day Care Center” under this Chapter 4-35 shall override the definition of “ Day Care Center” in MAUCRSA at Section 26001 of the State Business & Professions Code.

“Delivery” has the same meaning as defined in Chapter 4-34 of the City Municipal Code.

“Edible Cannabis Product” means a cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the State Food & Agriculture Code. An edible cannabis product is not considered food, as defined by Section 109935 of the State Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code. An edible cannabis product shall not be deemed to be adulterated pursuant to Section 26131 of the State Business & Professions Code solely because it contains cannabis.

“Employee” means each natural person employed by a cannabis retailer who is a part- time, full-time, temporary, or permanent employee.

“Gross receipts ” means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits , and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever.

However, the following shall be excluded from gross receipts:

a. Cash discounts where allowed and taken on sales;

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6 b. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

c. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

d. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;

e. Cash value of sales, trades, or transactions between departments or units of the same business;

f. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and

g. Any proceeds resulting from a transfer or change of ownership or control in the business.

“Labor Peace Agreement” means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the City’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This Agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, t he cannabis retailer ’s employees. The Agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer ’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment.

“Licensing Authority” means a State agency responsible for the issuance, renewal, or reinstatement of State license, or a State agency authorized to take disciplinary action against a State licensee.

“Liquid Assets” means assets that can be readily converted into cash. “Liquid asset s” include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.

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7 “Manager” means a ny individual who will be participating in the direction, control, or management of an applicant or a permittee, including but not limited to, any (i) manager or managing member or other officer of a limited liability company applicant or permittee or (ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation applicant or permittee.

“Marijuana” means “cannabis” as that term is defined in this Chapter 4-35.

“MAUCRSA” means Division 10 (commencing with Section 26000) of the State Business and Professions Code and any regulations promulgated thereunder.

“Ordinance” means The Lynwood Cannabis Retail Sales Regulation and Public Safety Ordinance.

“Owner” means any of the following:

a. A person owning in the aggregate equity interests representing twenty (20) percent or more of the voting power of all outstanding equity in the applicant or a permittee;

b. The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or

c. A member of the board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an “owner” for the purpose of compliance with this Chapter 4-35, including the review and evaluation of any retail cannabis business permit application.

“Panic Button” means a n emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance.

“Patient” or “Qualified Patient” means a natural person who is entitled to the protections of Section 11362.5 of the State Health & Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 4-35 of Division 10 of the State Health & Safety Code.

“Permittee” means the holder of a valid, City-issued retail cannabis business permit.

“Person” means an individual/natural person, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

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8 “Person With An Identification Card ” shall have the meaning given to that term in Section 11362.7 of the State Health & Safety Code.

“Premises” means the designated structure or structures and land specified in the retail cannabis business permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where cannabis retail sales will be or is conducted.

The premises shall be a contiguous area and shall only be occupied by one permittee.

“Public Park” means an outdoor premises containing existing or proposed parks, including community parks, neighborhood parks, mini -parks, and urban parks that are currently or proposed to be owned or operated by the City or other governmental agency. “Public Park” shall not include any youth center.

“Retail Cannabis Business Permit ” means a regulatory permit/license issued by the City pursuant to this Chapter 4-35 to a cannabis retailer and is required before any cannabis retail sales may be conducted in the City and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this Chapter 4- 35 and any regulations adopted by the City governing cannabis retail sales.

“Retail Sale(s)” or “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.

“Sale” means any sale, exchange, or barter or other transaction for any consideration.

“School” means as evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the State Department of Education or a private school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home.

Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “school” under this Chapter 4-35 shall override the definition of “school” used in MAUCRSA or Section 11362.768 of the Health & Safety Code.

“State” means the State of California.

“State License” means a permit or license issued by the State, or one of its departments or divisions, under MAUCRSA and any subsequent State legislation regarding the same to engage in cannabis retail sales.

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9 “Topical Cannabis” means a cannabis product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the State Health & Safety Code.

“Youth Center” means any facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational services to minors. “Youth center” shall not include (a) any public park, (b) any private martial arts, yoga, ballet, music, or similar studio of this nature , or (c) any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authori ty delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “youth center” under this Chapter 4-35 shall override the definition of “youth center” in MAUCRSA at Section 26001 of the State Business & Professions Code.

4-35.4: Retail Cannabis Business Permit Required.

a. No person shall operate a cannabis retailer or engage in cannabis retail sales within the City unless such business or activity is currently in compliance with all applicable State and local laws, rules, and regulations and the cannabis retailer has all of the following:

1. A valid City business license to conduct such business or activity;

2. A valid retail cannabis business permit issued by the City pursuant to this Chapter 4-35 to conduct such business or activity;

3. A valid State license authorizing such business or activity in the City; and

4. A valid certificate of occupancy issued by the City’s Building & Safety Division to conduct the cannabis retail sales at the premises identified in the retail cannabis business permit.

4-35.5: Number of Authorized Cannabis Retailers Permitted.

a. The City Council may award up to six retail cannabis business permits within the City.

b. Nothing in this Chapter 4-35 creates a mandate that the City must authorize any specific number of retail ca nnabis businesses permits. The City reserves the discretion to determine that it is in the best interest of the City to not issue the full number of retail cannabis business permits authorized in this Section 4-35.5 or to reduce the number of retail cannabis business permits authorized in this Section 4-35.5. However, the City may not increase the number of retail cannabis business permits authorized in this Section 4-

35.5, except as required by (i) a judicial remedy or (ii) a vote of the people of the City.

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10 4-35.6: Location and Design Requirements for Cannabis Retailers.

Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business & Professions Code , cannabis retailers in the City shall be subject to the following location and design requirements:

a. Cannabis retailers shall be a permitted use subject to this Chapter 4-35 on property (1) located more than six-hundred-fifty (650) feet from any school or day care center, (2) located more than nine-hundred-fifty (950) feet from any public park or youth center, and (3) zoned: C-2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District), including any overlay zones, in particular any SPA (Specific Plan Area) covering the C-2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District)

b. The distances specified in this Section 4-35.06 shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures.

c. Each cannabis retailer shall:

1. Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;

2. Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and

3. Provide and maintain a neighborhood compatibility plan so the City Manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.

4-35.7: Cannabis Retailer Application Procedure.

a. The City Manager, pursuant to Section 4-35.22, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the number of retail cannabis business permits authorized in Section 4-35.5.

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11 b. The City Manager shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications thirty (30) days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers.

c. The City Manager shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:

1. Payment of a non-refundable application fee established by resolution of the City Council;

2. Sufficient evidence of the legal right to use the proposed property for the proposed use, to include ownership, a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The City shall only consider one applicant per County Assessor’s Identification Number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given County Assessor’s Identification Number , the City Manager shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;

3. Sufficient evidence to demonstrate that the proposed property complies with location and zoning requirements in Section 4-35.6;

4. Proof of funds showing that the Applicant has access and control of over $1,000,000.00 in liquid assets (which such liquid assets having been under possession for at least ninety (90) days prior to the date of the application submission under this Section), which may be shown via a binding legal agreement in the name of the Applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement so long as that demonstrates access and control of over $ 1,000,000.00 in liquid assets under possession for at least ninety (90) days prior to the date of the application submission under this Section . Applicants and Permittees shall not be required to show that the Applicant or Permittee has access and control of over $1,000,000.00 in liquid assets except on initial application pursuant to this Section 4-35.7, a change in location application pursuant to Section 4-35.13, or an ownership transfer application pursuant to Section 4-35.14;

5. A set of plans, including a site development plan, floor plan (s), building elevations (all four (4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

6. Colored interior and elevation renderings;
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12 7. A completed background check application and receipt for each owner and manager of the Applicant pursuant to Section 4-35.18(l); and

8. The following application components: (a) Qualifications of the Applicant’s owners and managers; (b) business and operations plan; (c) security plan; (d) safety plan; (e) neighborhood compatibility plan; (f) labor and employment plan ; and (g) community benefits plan.

The City Manager shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in this Subsection c, and applicants shall not have the right to supplement or amend their retail cannabis business permit applications once the City Manager has closed the window to submit an application.

d. The City Manager shall, as a ministerial duty review and score any complete applications pursuant to the following objective review criteria, according to the following quantitative evaluation scale that holds a total criteria value of 1,000 points:

1. Qualifications of the Applicant’s Owners and Managers – 200 points

The City Council finds that a proven track -record of (i) business operations provid ing services or operating in the City or (ii) cannabis retailer operations experience, wherever performed, that successfully generate tax revenue carries out the purpose and intent of the Ordinance and are, therefore, critical for an applicant to demonstrate the qualifications of the Applicant’s Owners and Managers. Accordingly, 100 of the 200 points awardable under this Subsection 1 shall only be awarded, as a ministerial duty, (i) if an owner or owners of the Applicant with an aggregate ownership interest of fifty-one (51) percent or more is currently at the time of application submission under this Section and since at least February 1, 202 0, the President, CEO, or limited liability company manager of a business that provides (or has provided ) services or operates (or has operated) in the City and that has generated at least $8,000,000.00 in annual gross receipts as demonstrated by the most recent tax payment receipts from, tax filings to, or tax returns filed by the business with a city, county, state, of the federal government or by a letter from a ce rtified public accountant attesting to the business ’s gross receipts or (ii) if an owner or owners of the Applicant with an aggregate ownership interest of fifty -one (51) percent, is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of fifty -one (51) percent of (or is an owner as a result of being the chief executive officer of a nonprofit entity of) a single licensed and lawfully operating commercial cannabis retailer operation (excluding any non-retailer microbusiness, cultivation, manufacturing, distribution, or other non -retailer commercial cannabis operation components) that has generated at least $5,000,000.00 in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this Section, as demonstrated by tax payment receipts City Council Regular Meeting - Page 598 of 664

13 from, tax filings to, or tax returns filed with a city, county, or state or by a letter from a certified public accountant attesting to the cannabis retailer’s gross receipts.

The remaining 100 of the 200 points awardable under this Subsection 1 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to 100 points – A d escription of the Applicant’s owner(s) and manager (s) qualifications detailing any experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted or special business or professional qualifications or licenses of the applicant’s owner (s) and manager(s) that would add to the quality of services that the cannabis retailer would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, waste management, real estate development, scientific, or healthcare or wellness fields.

2. Plans, renderings, and overall location – 150 points

The City Council finds that the further a cannabis retailer is located away from youth centers, the better a cannabis retailer will carry out the purpose and intent of the Ordinance (in particular the use of land to protect the City’s neighborhoods, residents, and businesses from negative impacts) and that the sensitive use buffer for youth centers contained in Section 4-35.6 is a minimum rather than an ideal distance to carry out the purpose and intent of the Ordinance. Accordingly, 75 of the 150 points awardable under this Subsection 2 shall only be awarded, as a ministerial duty, if an Applicant’s proposed cannabis retailer is located on property loca ted more than one -thousand five-hundred (1,500) feet from any youth centers identified and measured pursuant to Section 4-35.6 above and Section 14 of the Ordinance.

The remaining 75 of the 150 points awardable under this Subsection 2 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 10 points – A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations.

(b) Up to 10 points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in Chapter 25 of the City Municipal Code , including adequate parking . Information on existing conditions shall include:

1) Exterior photographs showing all sides of any existing structure(s);

2) Photographs of existing parking areas, landscaping, trash enclosure, and signage;
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14 3) Information on existing use on the site, including the addresses, uses, and square footages.

4) Photographs of the existing site if the site is vacant; and

5) Photographs of adjacent properties for context.

(c) Up to 15 points – A floor plan showing information on the existing layout and proposed layout of the building interior.

(d) Up to 20 points – Building elevations that provide information on existing conditions and proposed improvements.

(e) Up to 10 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.

(f) Up to 10 points – Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).

3. Business and operations plan – 100 points

The 75 points awardable under this Subsection 3. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 5 points – A written description of the total square footage of the facility with estimated square footage of proposed uses.

(b) Up to 10 points – A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.

(c) Up to 15 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.

(d) Up to 10 points – A description of the sources(s) of capital and use(s) of capital.

(e) Up to 10 points – Pro forma financial statements for at least three (3) years of operation.

(f) Up to 10 points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

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15 (g) Up to 15 points – A description of marketing procedures and tactics.

(h) Up to 5 points – A description of day -to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.

(i) Up to 5 poi nts – A description of hours of operation and opening procedures.

(j) Up to 5 points – A description of cash handling procedures.

(k) Up to 5 points – A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software.

(l) Up to 5 points – A description of transportation, loading and unloading, distribution, or delivery procedures.

4. Security plan – 100 points

The 100 points awardable under this Subsection 4. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 20 points – The security plan shall be prepared by a professional security consultant.

(b) Up to 10 points – A premises security diagram.

(c) Up to 50 points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this Chapter 4-35.

(d) Up to 10 points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

(e) Up to 10 points – A description of the services of on -site security guards to include the ( 1) number of security guards; ( 2) the hours security guards will be on -site; (3) locations where security will be positioned; and (4) security guard responsibilities.

5. Safety plan – 100 points

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16 The 100 points awardable under this Subsection 5. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 20 points – The safety plan shall be prepared by a professional fire prevention and suppression consultant.

(b) Up to 10 points – A premises safety diagram to include ( 1) a description/illustration of evacuation routes and ( 2) location of fire extinguishers and other fire suppression equipment.

(c) Up to 50 points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 4-35.

(d) Up to 10 points – Identify all gases, pesticides, and chemicals to be used and their storage locations.

(e) Up to 10 points – A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood compatibility plan – 150 points

The 75 points awardable under this Subsection 6. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 75 points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) describes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.

(b) Up to 25 points – A description of odor mitigation practices to include:
(1) identifying potential sources of odor; ( 2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and ( 3) all proposed staff odor training and system maintenance.

(c) Up to 25 points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the City Council Regular Meeting - Page 602 of 664

17 applicant’s security measures and methods of rendering waste unusable and unrecognizable.

(d) Up to 25 points – A description of efforts at
sustainability/environmental impact mitigation.

7. Community benefits plan – 100 points

The City Council finds that monetary donations to support City sponsored activities and programs carry out the purpose and intent of the Ordinance and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 80 of the 100 points awardable under this Subsection 7. shall only be awarded if the Applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one (1) percent of projected gross receipts of the applicant to the following City sponsored programs/causes : (a) senior citizen programs, (b) City beautification efforts, (c) fund for enforcement of illegal cannabis operations, (d) public safety, (e) housing pro grams, (f) recreation services, (g) infrastructure, (h) general fund, and/or (i) any other proposed City efforts. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining 20 of the 100 points awardable under this Subsection 7. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 10 points – A description of a social responsibility plan to include identification of a community liaison and plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or social services organizations.

(b) Up to 10 points – A description of a plan to de velop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

8. Labor and employment plan – 100 points

The 100 points awardable under this Subsection 8. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(a) Up to 5 points – An organizational chart of showing owners, managers, and employees.

(b) Up to 5 points – A description of the owner’s and manager’s roles in day-to-day operations and decisions.

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18 (c) Up to 5 points – A description of the number of employees, title/position, and their respective responsibilities

(d) Up to 15 points – A description of compensation to employees, opportunities for continuing education, and employee training.

(e) Up to 20 points – A description of whether the cannabis retailer is committed to offering employees a living wage.

(f) Up to 15 points – A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.

(g) Up to 5 points – A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.

(h) Up to 30 points – A description of a plan to have at least fifty (50) percent of employee positions filled, and hours worked by employees residing in the City.

e. Upon timely receipt of a retail cannabis business permit application, the City Manager shall conduct background checks in accordance with Section 4-35.18(l).

Following review and scoring of complete applications pursuant to objective review criteria under Subsection d., the City Manager shall, as a ministerial duty, rank all applicants according to their scores received from Subsection d, and schedule meetings with an ad hoc committee formed by the City Council to review and interview up to the top 12 ranked applicants. Following its review and interview of the selected applicants, the ad hoc committee, in conjunction with City staff, shall score and rank the applicants and recommend up to the top 8 applicants for the City Council’s consideration of an award of retail cannabis bus iness permits. Upon receipt of the ad hoc committee’s recommendations, the City Manager shall schedule the consideration of an award of retail cannabis business permits at a meeting of the City Council. The City Council shall consider the applicants in order of their rank as determined by the ad hoc committee. The selected applicants will be afforded the opportunity to make a 5 -minute public presentation to the City Council describing each of their retail cannabis business permit applications and addressing the objective review criteria and quantitative evaluation scale in Subsection d. Following the presentations made by the applicants described in this Subsection e., the City Council may issue retail cannabis business permits to applicants up to the number of retail cannabis business permit s authorized in Section 4-35.5, with the applicants selected for a retail cannabis business permit being issued at the sole discretion of the City Council. In so issuing retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in Section 4 -35.5 at its sole discretion, the City Council shall have the absolute discretion to (1) award retail City Council Regular Meeting - Page 604 of 664

19 cannabis business permits in accordance with the ranking order of applicants as determined by the ad hoc committee or in accordance with its own determination following the presentations made by the applicants to the City Council and (2) issue the retail cannabis business permits contingent on the City enacting a legally effective means for taxing cannabis retailers. However, the City Council shall not issue a retail cannabis business permit to any applicant with an owner or manager that:

1. Provided false or misleading information on the applicant’s retail cannabis business permit application;

2. Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in 26057(b)(4) of the State Business & Professions Code; or

3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immediately preceding the date the application was submitted.

f. Any decision of the City Manager or City Council under this Section 4-35.7 shall be a final administrative decision not subject to administrative appeal under any provisions of this Chapter 4-35 or any provisions of the City Municipal Code but, rather , subject to judicial review and remedies.

g. In the event that the City Council is ordered to increase the number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy, the City Manager shall, as a ministerial duty, reinstitute the application procedure under this Section 4-35.7, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. In the event that the number of active, operating retailers and issued retail cannabis business permits falls below the number of retail cannabis business permits for retailers authorized in Section 4-35.5, the City Council may, at its sole discretion, require the City Manager, as a ministerial duty, to reinstitute the application procedure under this Section 4-35.7, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this Section, a retailer shall be considered operating if (1) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to Section 4-35.13), the retailer commences lawful operations within twenty-four (24) months (subject to the City Manager providing extensions in his or her reasonable discretion if the permittee can demonstrate that the delay was due to situations beyond its control and/or that significant progress towards establishing the use has been made) or (2) following initial commencement of lawful operations, the retailer City Council Regular Meeting - Page 605 of 664

20 does not cease or abandon operations for one-hundred twenty (120) consecutive or cumulative days in any one (1) year period.

4-35.8: Limitations on the City’s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a retail cannabis business permit pursuant to this Chapter 4-35 or otherwise approving the operation of any cannabis retailer. As a condition to the approval of any retail cannabis business permit , the applicant shall be required to meet all of the following conditions before they can receive a retail cannabis business permit:

a. Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant ’s sole cost and expense), and hold the City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the City’s issuance of the retail cannabis business permit, the City’s decision to approve the operation of the cannabis retailer or activity, the process used by the City in making its decision, or the alleged violation of any federal, State, or local laws by the cannabis retailer or any of its officers, employees, or agents. This obligation shall commence immediately upon the City ’s selection of an applicant for a retail cannabis business permit.

b. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney.

c. Defend and indemnify the City for all costs and expenses, including but not limited to attorneys’ fees and court costs, that the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant ’s retail cannabis business permit or related to t he City’s approval of a cannabis retail sales. In such instance, the City shall have the right to choose the defense counsel to represent the City at the sole expense of the permittees. A permittee’s failure to pay the City its proportional share of costs within forty-five (45) days following the City providing the permittee notice of the City’s exercise of its indemnity rights herein shall be considered a material violation of this Chapter 4-35. This obligation shall commence immediately upon the City’s selection of an applicant for a retail cannabis business permit.

4-35.9: Retail Cannabis Business Permit Term.

a. Subject to this Section 4-35.9 and Section 4-35.10, the term of each retail cannabis business permit shall be indefinite, unless the permit is revoked by the City for any reason authorized by this Chapter 4-35.

b. Upon the one (1) year anniversary of the date of issuance for each retail cannabis business permits and each year thereafter, the City Manager shall conduct a performance City Council Regular Meeting - Page 606 of 664

21 review of the permittee to assess compliance with the requirements of this Chapter 4-35.

Within thirty (30) days of the conclusion of the annual performance review of the permittee, the City Manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty (60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be remedied within sixty (60) days, such noncompliance items shall not constitute a material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 4-35 subject to suspension or revocation under Section 4-35.10 if the permittee commences correction of such noncompliance items within sixty (60) days and thereafter diligently prosecutes correction of such noncompliance items to completion. The City Manager shall have the final discretion and authority to determine whether a permittee is working diligently to correct all noncompliance items in a timely manner.

c. The permittee shall pay a non-refundable fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the City to administer the program created under this Chapter 4-35.

4-35.10: Suspension and Revocation of Retail Cannabis Business Permits.

a. The City Manager may suspend or revoke a retail cannabis business permit at any time for any material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 4-35.

b. Suspension or revocation of a State license issued by the State or by any of its departments or divisions, corresponding to the retail cannabis business permit shall immediately result in the suspension of the associated retail cannabis business permit until the State, or its applicable department or division, reinstates the State license or otherwise lifts such suspension.

c. A permittee shall inform the City Manager or designee(s) of any suspension, revocation, or termination of a State license corresponding to its retail cannabis business permit within five (5) business days of the suspension, revocation, or termination of the State license.

4-35.11: Appeals Regarding Retail Cannabis Business Permits.

a. Within ten (10) calendar days after the date of a decision of the City Manager to revoke or suspend an issued retail cannabis business permit, deny a change in location application, or deny a change in ownership application, an aggrieved Party may appeal such action to the City Council by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. An appeal shall stay all proceedings in furtherance of the appealed action.

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22 b. At the time of filing, the appellant shall pay the designated, non-refundable appeal fee established by resolution of the City Council.

c. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the City.

d. The appeal shall be held within a reasonable time after filing the appeal, but in no event later than ninety (90) days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing.

e. At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.

f. At the conclusion of t he hearing, the City Council may affirm, reverse , or modify the decision appealed. The decision of the City Council shall be a final administrative decision, subject to judicial review and remedies.

4-35.12: Change in Location; Updated Application Information.

a. A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 4-35.22. The permittee shall pay a non-refundable application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in location applications. Upon submission of a change in location application by a permittee, the City Manager shall, as a ministerial duty, complete processing of such change in location application. If a change in location application is incomplete or the proposed changed location contained therein does not comply with location and zoning requirements in Section 4-35.6 and this Section, the City Manager shall, as a ministerial duty, deny the change in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in Section 4-35.6 and this Section , the City Manager shall, in his or her sole discre tion, approve or deny the change in location application. In the event the City Manager denies a change in location application, the permittee may appeal the City Manager’s denial to the City Council pursuant to Section 4-35.11.

b. In addition to the location and zoning requirements in Section 4-35.6, a permittee may not change the business location specified in a retail cannabis business permit to any property located one -thousand (1,000) feet or less from any cannabis retailer permitted under this Chapter 4-35. The distance specified in this Subsection b. shall be City Council Regular Meeting - Page 608 of 664

23 the horizontal distance measured in a straight line from the parcel line of the cannabis retailer permitted under this Chapter 4-35 to the closest parcel line of the lot on which the cannabis retailer is proposed to be located without regard to intervening structures.

c. An applicant or permittee shall notify the City Manager or designee(s) within fifteen (15) calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this Chapter 4-35, including any change in the cannabis retailer ownership or management.

4-35.13: Transfer of a Retail Cannabis Business Permit.

a. An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee(s) obtain an amendment to the permit from the City Manager stating that the transferee (s) is now an owner of the permittee. A permittee may change the ownership specified in a retail cannabis business permit upon submission of a change in ownership application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 4-35.22 within one-hundred eighty (180) days following the effective date of this Chapter 4-35. The permittee shall pay a non-refundable application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in ownership applications. Upon submission of a change in ownership application by a permittee, the City Manager shall, as a ministerial duty, complete processing of such change in ownership application . If a change in ownership application is incomplete or the proposed transferee(s) contained therein do not pass the background check(s) required under this Chapter 4-35, the City Manager shall, as a ministerial duty, deny the change in ownership application. If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is less than twenty-five and one-tenth (25.1) percent from the ownership percentages contained in the permittee’s original retail cannabis business permit application and the proposed transferee(s) contained therein pass the background check(s) required un der this Chapter 4-35, the City Manager shall, as a ministerial duty, approve the change in ownership application.

If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in owners hip of the permittee is twenty -five and one-tenth (25.1) percent or more and less than fifty (50) percent, the City Manager shall, in his or her sole discretion, approve or deny the change in ownership application.

In the event the City Manager denies a c hange in ownership application, the permittee may appeal the City Manager’s denial to the City Council pursuant to Section 4-35.11. If the cumulative ( i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is fifty (5 0) percent or more from the ownership percentages contained in the permittee’s original retail cannabis business permit application and the proposed transferee(s) contained therein pass the background check(s) required under this Chapter 4-35, the City Manager City Council Regular Meeting - Page 609 of 664

24 shall, as a ministerial duty, schedule a public hearing before the City Council within thirty (30) days of completed processing, and following the public hearing, the City Council shall, in its sole discretion, approve or deny the change in ownership application.

b. Notwithstanding Subsection (a), n o retail cannabis business permit may be transferred when the City Manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.

c. Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this Section 4-35.13 is hereby declared void, and such a n unpermitted transfer shall be deemed a ground for revocation of the permit.

4-35.14: Records and recordkeeping.

a. Each cannabis retailer shall maintain accurate books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities. On no less than an annual basis (at the time of performance review of a retail cannabis business permit issued pursuant to this Chapter 4-35), or at any time upon reasonable request of the City, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous 3-month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid. On an annual basis, each cannabis retailer shall submit to the City a financial audit of the business ’s operations conducted by an independent certified public accountant. The City may perform its own annual independent financial audit and char ge the retailer for such cost incurred by the City. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager.

b. Each cannabis retailer shall maintain a current register of the names and t he contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis retailer and, separately, the same contact information of all officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis retailer. The register required by this Subsection shall be provided to the City Manager upon a reasonable request.

c. Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and cannabis products for a period of no less than seven (7) years.

d. All cannabis retailers shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products.

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25 e. Subject to any applicable restrictions under the Health Insurance Portability & Accountability Act ( “HIPAA”) regulations, each cannabis retailer shall grant the City Manager access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than ten (10) business days after receipt of the City Manager’s request for such data, unless otherwise stipulated by the City Manager. The City Manager may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.

4-35.15: Security Measures.

a. A cannabis retailer shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis retailer. Except as may otherwise be determined by the City Manager, these security measures shall include, but are not limited to the following:

1. Preventing individuals from remaining on the premises of the cannabis retailer if they are not engaging in an act ivity directly related to the permitted operations of the cannabis retailer.

2. Establishing limited access areas accessible only to authorized cannabis retailer personnel.

3. All cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products shall be kept in a manner designed to prevent diversion, theft, and loss.

4. Installing twenty -four-hour security surveillance cameras of at least HD - quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis retailer , which are open and accessible to the public, all interior spaces where cannabis, cash or currency is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur.

The cannabis retailer shall be responsible for ensuring that the security surveillance camera's footage is remotely accessible by the City Manager, and that it is compatible with the City's software and hardware . Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the City Manager upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis retailer.

5. Sensors shall be installed to detect entry and exit from all secure areas.

6. Panic buttons shall be installed in all cannabis retailers.

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26 7. Having a professionally installed, maintained, and monitored alarm system.

8. Any bars installed on the windows or the doors of the cannabis retailer shall be installed only on the interior of the building.

9. The premises shal l be live monitored twenty-four (24) hours a day unless the cannabis retailer has an alternative security program authorized by the City Manager.

Security personnel must be licensed by the State Bureau of Security & Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, which shall not be unreasonably withheld.

10. Additional security measures may be added through the review of a retail cannabis business permit application.

b. Each cannabis retailer shall identify a designated security representative or liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues.

c. Each cannabis retailer (including as part of the retail cannabis business permit application process) shall have a storage and transportation plan and currency management plan, which describes in detail the procedures for safely and securely storing, disposing and transporting all cannabis, cannabis products, and any currency.

d. The cannabis retailer shall cooperate with the City whenever the City Manager makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter 4-35.

e. A cannabis retailer shall notify the City Manager within twenty-four (24) hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

2. Diversion, theft, loss, or any criminal activity involving the cannabis retailer or any agent or employee of the cannabis retailer.

3. The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.

4. Any other breach of security.

4-35.16: Restriction on Alcohol and Tobacco Sales.

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27 No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer.

4-35.17: Fees and charges.

a. No person may commence or continue any cannabis retail sales in the City without timely paying in full all fees and charges required for the operation of a cannabis retail sales. Fees and charges associated with the operation of such activity shall be established by resolution of the City Council which may be amended from time to time.

b. All cannabis retailers authorized to operate under this Chapter 4-35 shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State, and local law. Each cannabis retailer shall cooperate with City with respect to any reasonable request to audit the cannabis retailer’ books and records for the purpose of verifying compliance with this Section 4-35.20, including, but not limited to, a verification of the amount of taxes required to be paid during any period.

4-35.18: General operating requirements.

a. Cannabis retailers may operate only during the hours specified in the retail cannabis business permit issued by the City and must comply with State law at all times.

b. Cannabis shall not be consumed on the premises of any cannabis retailer.

c. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer.

No outdoor storage of cannabis or cannabis products is permitted at any time.

d. Each cannabis retailer shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. The cannabis retailer shall ensure that such information is compatible with the City’s record- keeping systems as well as the State Mandated Track and Trace requirements and systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be a pproved and authorized by the City Manager prior to being used by a permittee.

e. All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed facilities that maintain operations in full conformance with the State and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with State law.

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28 f. There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendations.

g. Each cannabis retailer shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

h. Signage and Notices.

1. In addition to the requirements otherwise set forth in this Section 4-35.18, business identification signage for a cannabis retailer shall conform to the requirements of the City Municipal Code, including, but not limited to, seeking the issuance of a City sign permit.

2. No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.

3. Each entrance to a cannabis retailer shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises, or in the areas adjacent to the premises, is prohibited.

4. The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis retailer , other than as lawful customers permitted under State law.

i. Other than as lawful customers permitted under State law in the case of retailers, individuals under the age of twenty-one (21) years shall not be allowed on the premises of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer.

It shall be unlawful and a violation of this Chapter 4-35 for any person to employ any person at a cannabis retailer who is not at least twenty-one (21) years of age.

j. Odor control devices and techniques shall be incorporated in all cannabis retailers to ensure that odors from cannabis are not detectable off -site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis retailer that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public , or within any other unit located inside the same building as the cannabis retailer.

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29 k. The original copy of the retail cannabis business permit issued by the City pursuant to this Chapter 4-35 and the City issued business license shall be posted inside the cannabis retailer in a location readily visible to the public.

l. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which authorizes City authorities to access State and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee , or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the City Manager for a backgroun d check. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a requirement or exclusion from employment, licensing , or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the City Manager, as required by this Chapter 4-35. A non-refundable fee for the cost of the background investigation , which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted.

m. The cannabis retailer shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises.

n. Within sixty (60) days of licensure, for a permittee with twenty (20) or more employees, the permittee shall attest to the City that the permittee has entered into a Labor Peace Agreement and will abide by the terms of the Agreement. The permittee shall submit a copy of the page of the Labor Peace A greement that contains the signatures of the labor repres entative and the applicant. For permittees with less than twenty (20) employees who have not yet entered into a Labor Peace A greement, the permittee shall provide a notarized statement indicating that the applicant will enter into and abide by the terms o f a Labor Peace Agreement within thirty ( 30) days after employing twenty (20) employees. If an attestation that the permittee is party to a Labor Peace Agreement, and a copy of the page of the Labor Peace Agreement that contains the signatures of the labor representative was submitted to the City by the permittee as part of the application process, that will meet this obligation.

o. Cannabis retailers shall implement a workforce plan that includes at least the following provisions:

1. Commitment for thirty (30) percent of employees to be local hires; this local hiring requirement is satisfied when a cannabis retailer shows that it has either hired or made a good faith effort to hire bona fide residents of the City or persons that may establish residency after initial employment with the permittee; City Council Regular Meeting - Page 615 of 664

30 2. Commitment to offer apprenticeships and/or compensation for continuing education in the field of cannabis retail sales; and

3. Paying a living wage to employees. “Living wage” means compensation equivalent to $20 per hour inclusive of benefits but excluding tips.

p. It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this Chapter 4-35 or City or State law. These rights include, but are not limited to (1) the right to file a complaint or inform any person about any party’s alleged noncompliance with this Chapter 4-35 or City or State law and (2) the right to inform any person of his or her potential rights under this this Chapter 4-35 or City or State law and to assist him or her in asserting such rights. Protections under this this Chapter 4-35 or City or State law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this this Chapter 4-35 or City or State law. Taking adverse action against an employee within ninety (90) days of the employee’s exercise of rights protected under this Chapter 4-35 or City or State law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.

4-35.19: Additional Operational Requirements in General.

The City Manager may, pursuant to Section 4-35.22, develop additional cannabis retailer operational requirements or regulations for the retail sale of cannabis and cannabis products in the City as are determined to be necessary to protect the public health, safety, and welfare.

4-35.20: Additional Operating Requirements.

a. Retailers and the operation thereof shall comply with State law at all times.

b. Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualified patient, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years.

c. Prior to dispensing cannabis or cannabis products to an adult -use customer, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years.

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31 d. All restroom facilities shall remain locked and under the control of managers onsite.

e. A retailer shall notify customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state as follows:

1. “The sale or diversion of cannabis or cannabis products without a license issued by the City of Lynwood is a violation of State law and the Lynwood Municipal Code.”

2. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest."

3. “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance."

4. “WARNING: The use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery.”

5. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis- derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm.”

4-35.21: Additional Operating Requirements For Delivery.

a. Delivery shall comply with State law at all times.

b. Security plans developed pursuant to this Chapter 4-35 shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.

c. A retailer shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of- sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the retailer and customer:

1. The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;

2. The identity of the customer receiving cannabis or cannabis products from the permittee;
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32 3. The type and quantity of cannabis or cannabis products dispensed and received;

4. The gross receipts charged by the permittee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received; and

5. The location or address where the sale or retail sale took place or closed.

d. A permittee shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid State driver’s license issued to the driver of any such vehicle on behalf of the retailer to the City Manager.

e. Individuals making deliveries of cannabis or cannabis products on behalf of the retailer shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the City requesting documentation.

f. During delivery, a copy of the permittee’s retail cannabis business permit and State license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the City requesting documentation.

g. A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is ( 1) insured at or above the legal requirement in the State; ( 2) capable of securing (locking) the cannabis or cannabis products during transportati on; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis deliver y or affiliated with a retailer.

h. A retailer shall facilitate deliveries with a technology platform owned by or licensed to the retailer that uses global positioning system technology to track, and database technology to record and store the following information:

1. The time that the individual conducting delivery on behalf of the retailer departed the licensed premises.

2. The time that the individual conducting delivery on behalf of the retailer completed delivery to the customer.

3. The time that the individual conducting delivery on behalf of the retailer returned to the licensed premises.

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33 4. The route the individual conducting delivery on behalf of the retailer traveled between departing and returning to the licensed premises to conduct delivery.

5. For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the retailer.

6. For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the retailer.

7. For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the retailer.

8. For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.

9. For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducting deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received.

i. The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years or (2) for cannabis or cannabis products to an adult -use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years.

j. Within one-hundred-eighty (180) days following the effective date of this Chapter, commercial cannabis businesses conducting delivery pursuant to Chapter 4-34 of the City Municipal Code shall comply with the requirements of this Section 4-35.21.

4-35.22: Promulgation of Regulations, Standards, and Other Legal Duties.

a. Consistently with stated requirements of this Chapter 4-35 (and in particular not to repeal or constructively repeal this Chapter 4-35), in addition to any regulations adopted under State law, the City Manager is authorized to establish any additional rules, regulations, and standards governing the issuance, denial , or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the City’s oversight, or City Council Regular Meeting - Page 619 of 664

34 concerning any oth er subject determined to be necessary to carry out the purposes of this Chapter 4-35.

b. Such regulations shall be published on the City’s website.

c. Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis retailers shall be required to comply with all State and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

4-35.23: Community Relations.

a. Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the City, located within one hundred and fifty (150) feet of the cannabis retailer. Such community relations contact shall respond to any complaints within forty-eight (48) hours of receipt of such complaints.

b. During the first year of operation pursuant to this Chapter 4-35, the owner (s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this Chapter 4-35 shall attend a quarterly meeting with the City Manager and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter 4-35. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the City Manager when and as requested by the City Manager.

c. Cannabis retailers to which a retail cannabis business permit is issued pursuant to this Chapter 4-35 shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.

4-35.24: Fees Deemed Debt To City.

The amount of any fee, cost , or charge imposed pursuant to this Chapter 4-35 shall be deemed a debt to the City that is recoverable via authorized processes as set forth in the City Municipal Code or available through any court of competent jurisdiction.

4-35.25: Permittee, owner, and property owner responsible for violations.

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35 a. Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for all violations of the laws of the State or of the regulations and/or the ordinances of the City occurring within the City or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur within the permittee, owner, or manager ’s presence.

b. No person may engage in any cannabis retail sales within the City unless the person is in compliance with the requirements of this Chapter 4-35.

c. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City; (2) that does not have a valid State license; (3) that does not have any other applicable approvals, including, but not limited to, a building permit and City business license; or (4) that is not currently in compliance with all applicable State and local laws and regulati ons pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City or (2) that does not have a valid State license.

4-35.26: Inspection and Enforcement.

a. The City Manager or designee(s) charged with enforcing the provisions of the City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any recordings and records required to be maintained pursuant to this Chapter 4-35 or under applicable provisions of State law.

b. It is unlawful for any person having responsibility over the operation of a cannabis retailer, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings, or other documents require d to be maintained by a cannabis retailer under this Chapter 4-35 or under State or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis retailer under this Chapter 4-35 or under State or local law.

c. The City Manager or designee(s) charged with enforcing the provisions of this Chapter 4-35 may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City shall be logged, recorded, and maintained in accordance with the City law enforcement standards for evidence.

4-35.27: Concurrent Regulation with the State.

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36 It is the stated intent of this Chapter 4-35 to regulate cannabis retail sales in the City concurrently with the State.

4-35.28: Violations Declared a Public Nuisance.

Each and every material violation of the provisions of this Chapter 4-35 is hereby deemed unlawful and a public nuisance subject to all remedies and enforcement measures authorized by the City Municipal Code.

4-35.29: Each Violation a Separate Offense.

Each and every violation of this Chapter 4-35 shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City Municipal Code. Additionally, as a nuisance per se, any material violation of this Chapter 4-35 shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this Chapter 4-35 being deemed null and void, disgorgement , and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The City may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager or designee(s), may take immediate action to temporarily suspend a retail cannabis business permit issued by the City, pending a public hearing before the City Council.

4-35.30: Criminal Penalties.

Each and every material violation of the provisions of this Chapter 4-35 may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed five thousand dollars ($5,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a material violation is committed or permitted to continue shall constitute a separate offense.

4-35.31: Remedies Cumulative and Not Exclusive.

The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law.

SECTION 5. Section 4 -34.1 (Purpose) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

a. The purpose of this Section is to regulate all commercial cannabis activity in the City of Lynwood, as defined in Section 26001 of the California Business and Professions City Council Regular Meeting - Page 622 of 664

37 Code, to the extent authorized by state law and in a manner designed to minimize negative impact on the City, and to promote the health, safety, morals, and general welfare of residents and businesses within the City.

b. This Section is further adopted, established, and amended pursuant to the specific authority granted to the City of Lynwood in Section 7 of Article XI of the California Constitution and Division 10 of the California Business and Professions Code, commencing with Section 26000. These regulations shall govern all commercial cannabis activity that occurs within the jurisdiction of the City.

SECTION 6. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

n. Licensed premises means the premises, consisting of a single or immediately adjoining parcel(s) as identified by valid street address and assessor parcel number, specified in an application for a permit under this chapter, which are owned or in possession of the applicant or licensee and within which the applicant or licensee is applying for authorization to cultivate, manufacture, distribute, test, or is applying for multiple permitted uses within the same premises, in accordance with the provisions of this Chapter, the MAUCRSA, any development agreement approved by City Council, and any rules adopted pursuant thereto, except that no storefront dispensary, as specified in section 25-200-1, shall be permitted within the city.

SECTION 7. Section 4-34.2 (Definitions) of Chap ter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

t. Commercial cannabis business means any person engaged in commercial cannabis activity but excludes cannabis retailers permitted and operating under Chapter 4-35 of the City Municipal Code.

SECTION 8. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

y. Permit means authorization to conduct commercial cannabis activity operate a commercial cannabis business pursuant to this Chapter, state law, and upon the issuance of an occupancy permit and business license by the City.

SECTION 9. Section 4-34.4 (Permitted Use) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

b. All persons who are engaged in operate or who are attempting to engage in commercial cannabis activity operate a commercial cannabis business in any form shall do so only in strict compliance with the terms, conditions, limitations and City Council Regular Meeting - Page 623 of 664

38 restrictions of the MAUCRSA, the provisions of this section, and all other applicable state and local laws and regulations.

SECTION 10. Section 4-34.6 (Permitted Zones – Distance and Other Conditions For Approval) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows

e. Nonconforming Use. Any commercial cannabis business, dispensary of medical or adult use cannabis, or storefront cannabis retailer established or operating in the city in violation of this section or the ban established by Ordinance No. 1632, Section 25-200-1, and Chapter 25 Appendix A of the Lynwood Zoning Code shall not be considered a lawful or permitted nonconforming use, and no such commercial cannabis business shall be eligible for issuance of a commercial cannabis business permit. Further, any such unlawfully established commercial cannabis business shall constitute a public nuisance subject to abatement by the city, pursuant to section 3-13.

SECTION 11. Section 4 -34.8 (Changing, Altering, Or Modifying Location ) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows

c. Application. The City Council or its designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the licensee, and payment of any applicable fee. The licensee must submit all information requested by the City Council or its designee including, but not limited to, documents that verify the following:

1. The licensee will continue to have exclusive possession of the premises, as changed, by ownership, lease, or rental agreement, and sole control of all production; and

2. The proposed change conforms to any and all City restrictions related to the time, manner, and place of regulation of the commercial cannabis activity commercial cannabis businesses.

SECTION 12. Sensitive Uses. The City Council finds that the definitions of the sensitive uses (day care center s, public parks, schools, and youth center s) under the amendment to Section 4-35.3 of the City Municipal Code in this Ordinance are subject to some degree of interpretation. However, the City Council also find s that certainty regarding the identification of sensitive uses (day care centers, public parks, schools, and youth centers) under the amendments to Sections 4-35.3 and 4-35.6 of the City Municipal Code in this Ordinance is required to carry out the purpose and intent of th is Ordinance so the that People, the City, and prospective applicant s can clearly identify where and City Council Regular Meeting - Page 624 of 664

39 where not lawful cannabis retailers under this Ordinance may be located. Accordingly and pursuant to the authority delegated by the State to the City Council under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business & Professions Code, the following sensitive uses ( day care centers, public parks, schoo ls, and youth centers) and only the following sensitive uses ( day care centers, public parks, schools, and youth centers ) located on the following County Assessor’s Identification Numbers and only the following County Assessor’s Identification Numbers shall be considered under the amendment to Section 4-35.6.a of the City Municipal Code in this Ordinance for the purpose of the initial establishment of cannabis retailers pursuant to the initial iteration of the cannabis retailer application procedure under the amendment to Section 4-35.7 of the City Municipal Code in this Ordinance (to include any review and scoring of any applications pursuant to the objective review criteria and quantitative evaluation scale under the amendment to Section 4-35.7.d of the City Municipal Code in this Ordinance).

Only following the initial iteration of the cannabis retailer application procedure and the initial issuance of retail cannabis business permit s under the amendment to Section 4-

35.7 of the City Municipal Code in this Ordinance, may the City Manager (his or her designee(s)) reinterpret the following list of sensitive uses (day care centers, public parks, schools, and youth centers ) and County Assessor’s Identification Numbers for the purpose of subsequent iterations of the cannabis retailer application procedure under the amendment to Section 4-35.7 of the City Municipal Code in this Ordinance and change in location applications under the amendment to Section 4-35.12 of the City Municipal Code in this Ordinance.

Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Abbott Preschool Day Care
Center 6186-042-900
Adolfo Medina Park Public Park
6169-014-905, 6169-016-
901, 6169-016-903, 6169-
016-907
B L Harvey School Day Care
Center 6191-011-012
Camphor Tree Park Public Park 6174-009-901
Carnation Park Public Park 6170-022-901
Cesar Chavez Middle School School
6191-018-900, 6191-018-
901, 6191-018-902, 6191-
018-903, 6191-018-904,
6191-018-907
Children's Institute / Imperial Courts Day Care
Center 6067-014-902
David's Heart Enrichment Center Day Care
Center 6177-007-001
Dr. Ralph Bunche Middle School School 6150-036-900
City Council Regular Meeting - Page 625 of 664

40 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Ella Fitzgerald CDC / Drew Child
Development Corporation
Day Care
Center 6150-036-021
Faith and Hope Park Public Park 6150-020-900
Fernwood Avenue Park Project Public Park 6169-002-908
Foster Elementary School School 6184-009-900
Foster State Preschool Day Care
Center 6184-009-900
Fred W. Hosler Middle School School 6173-022-900
Helen Keller Elementary School
6177-001-919, 6177-001-
902, 6177-001-903, 6177-
001-904, 6177-001-906,
6177-001-907, 6177-001-
901, 6177-001-918, 6177-
001-912, 6177-001-917,
6177-001-915, 6177-001-
914, 6177-001-911, 6177-
001-905, 6177-001-916,
6177-001-908, 6177-001-
909, 6177-001-910, 6177-
001-913, 6177-001-920
Helen Keller Preschool Day Care
Center
6177-001-919, 6177-001-
902, 6177-001-903, 6177-
001-904, 6177-001-906,
6177-001-907, 6177-001-
901, 6177-001-918, 6177-
001-912, 6177-001-917,
6177-001-915, 6177-001-
914, 6177-001-911, 6177-
001-905, 6177-001-916,
6177-001-908, 6177-001-
909, 6177-001-910, 6177-
001-913, 6177-001-920
Henning Youth Center Youth Center 6173-007-901, 6173-007- 902
Hollydale Regional Park Public Park
6234-011-275, 6234-011-
007, 6234-011-804, 6234-
014-274, 6234-013-902,
6234-014-800, 6234-014-
901, 6234-014-803, 6234-
014-277, 6234-014-275,
6234-016-900, 6234-016-
803, 6234-016-802, 6234-
City Council Regular Meeting - Page 626 of 664

41 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
016-801, 6234-016-800,
6234-019-270, 6234-019-
006, 6234-019-902, 6234-
019-801, 6234-019-800,
6234-019-802, 6234-019-
903, 6234-019-803, 6236-
009-900, 6236-009-810,
6236-009-807, 6236-009-
808
Imperial Courts Recreation Center Youth Center 6067-013-901 Janie P. Abbott Elementary School School 6186-042-900
Jordan High School School 6046-021-918, 6046-020-
901
Kinder Prep Preschool Center Day Care
Center 6171-016-013
King State Preschool Day Care
Center 6150-025-901
Lincoln Elementary School School 6170-022-900, 6170-022- 902
Lincoln Preschool Day Care
Center
6170-022-900, 6170-022-
902
Lindbergh Children's Center Day Care
Center
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
Lindbergh Elementary School School
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
Lindbergh Preschool Day Care
Center
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
Little Pillar Park Public Park 6170-014-901, 6170-014-
907
Los Amigos East Park Public Park 6168-012-906
Los Amigos West Park Public Park 6168-013-901, 6168-013- 902, 6168-012-905
Los Angeles Speech & Language
Therapy Center, Inc.

Day Care
Center 6173-015-041
Lucy Avalos Community Center Youth Center
6189-019-908, 6189-019-
923, 6189-019-916, 6189-
019-917, 6189-019-926
City Council Regular Meeting - Page 627 of 664

42 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Lugo Elementary School School
6193-002-901, 6193-002-
904, 6193-002-902, 6193-
002-909, 6193-002-906,
6193-002-907, 6193-002-
903, 6193-002-905, 6193-
002-908
Lugo Preschool Day Care
Center
6193-002-901, 6193-002-
904, 6193-002-902, 6193-
002-909, 6193-002-906,
6193-002-907, 6193-002-
903, 6193-002-905, 6193-
002-908
Lynwood Community Center Youth Center 6173-022-901
Lynwood High School School 6174-020-900, 6174-019-
900
Lynwood Natatorium Youth Center 6173-021-900
Madison Elementary School School 6206-027-901
Marco Antonio Firebaugh High
School School
6189-032-900, 6189-023-
900, 6189-023-901, 6189-
023-902, 6189-023-903,
6189-023-904, 6189-023-
914, 6189-023-905, 6189-
023-906, 6189-023-915,
6189-023-907, 6189-023-
908, 6189-023-909, 6189-
023-916, 6189-023-910,
6189-023-911, 6189-023-
917, 6189-023-912, 6189-
023-913, 6189-032-903,
6189-032-904, 6189-032-
901, 6189-032-902, 6189-
032-905, 6189-032-906,
6189-032-909, 6189-032-
907, 6189-032-908
Mark Twain Elementary School School 6174-025-900
Mark Twain Preschool Day Care
Center 6174-025-900
Martin Luther King Elementary
School School 6150-025-901
Mona Park Public Park 6150-025-900, 6150-025-
902
City Council Regular Meeting - Page 628 of 664

43 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Montara Avenue Elementary School School 6207-004-922, 6207-004- 923
Park Place Early Education Day Care
Center 6186-012-041
Pathway Independent Study School 6173-022-900
Ralph C. Dillis Park Public Park
6237-026-904, 6237-033-
914, 6237-033-904, 6237-
033-915, 6237-033-902,
6237-033-905, 6237-033-
911, 6237-033-913, 6237-
033-918, 6237-033-912,
6237-033-906, 6237-033-
907, 6237-033-916, 6237-
033-917, 6237-033-909,
6237-033-910, 6237-033-
901
Ricardo Lara Linear Park Public Park 6174-001-913
Ritter Elementary School School 6068-020-901
Roosevelt Elementary School School 6191-023-900, 6191-024- 900
Roosevelt Preschool Day Care
Center
6191-023-900, 6191-024-
900
Rosa Parks Elementary School
6174-019-905, 6174-019-
903, 6174-019-907, 6174-
019-904, 6174-019-906,
6174-019-908, 6174-019-
909, 6174-019-901, 6174-
019-902
Rosa Parks Preschool Day Care
Center
6174-019-905, 6174-019-
903, 6174-019-907, 6174-
019-904, 6174-019-906,
6174-019-908, 6174-019-
909, 6174-019-901, 6174-
019-902
Rose Park Public Park 6169-009-900
SAGA Child Development Learning
Academy
Day Care
Center 6173-030-012
San Miguel Catholic School School 6068-008-001, 6068-008- 031
Simon Rodia Continuation School School 6207-001-900, 6207-001- 901
City Council Regular Meeting - Page 629 of 664

44 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Soleil Academy Charter School School 6174-020-900, 6174-019- 900
South East High School & Middle
School School 6207-001-900, 6207-001-
901
St. Emydius School School
6191-015-027, 6191-015-
021, 6191-015-024, 6191-
015-023
St. Philip Neri School School
6186-014-018, 6186-014-
004, 6186-014-016, 6186-
024-031
Sunshine Day Care Center Day Care
Center 6168-016-014
Thurgood Marshall Elementary
School School 6191-018-907, 6191-018-
905, 6191-018-906
Thurgood Marshall Preschool Day Care
Center
6191-018-907, 6191-018-
905, 6191-018-906
Tiny Treasures Preschool Day Care
Center 6168-008-003
Veterans Memorial Garden Public Park 6187-002-900
Victoria Elementary School School 6209-009-900, 6209-009- 902, 6209-009-901
Vista High School School 6194-031-906
Volunteers of America, Abbott Head
Start
Day Care
Center 6186-042-900
Volunteers of America, Bright Stars
Head Start
Day Care
Center
6173-003-005, 6173-003-
018
Volunteers of America, Greater
Emmanuel Head Start
Day Care
Center 6173-017-025
Volunteers of America, Happy Days
Head Start
Day Care
Center 6186-008-030
Washington Elementary School School 6190-012-901, 6193-017- 901
Washington Preschool Day Care
Center
6190-012-901, 6193-017-
901
Weigand Avenue Elementary School School 6066-009-900
Weigand Elementary School Room 6 Day Care
Center 6066-009-900
Will Rogers Children's Center Day Care
Center 6194-016-925
Will Rogers Elementary School School 6194-016-925
City Council Regular Meeting - Page 630 of 664

45 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Will Rogers Preschool Day Care
Center 6194-016-925
Wilson Elementary School School 6175-008-900
Wilson Preschool Day Care
Center 6175-008-900
Wilson School Park Public Park 6175-006-900
Yvonne Burke-John D. Ham Park Public Park
6189-019-927, 6189-019-
929, 6189-019-928, 6189-
019-924, 6189-019-909,
6189-019-925, 6189-019-
921, 6189-019-911, 6189-
019-915, 6189-019-903,
6189-019-906, 6189-019-
907, 6189-019-904, 6189-
019-913, 6189-019-912,
6189-019-922, 6189-019-
918, 6189-019-910, 6189-
019-919, 6189-019-905,
6189-019-920, 6189-019-
914, 6186-036-912, 6186-
036-913, 6186-036-910,
6186-036-909, 6186-036-
905, 6186-036-906, 6186-
036-900, 6186-036-907,
6186-036-908, 6186-036-
902, 6186-036-901, 6186-
036-903

SECTION 13. Categorically Exempt from CEQA. The City Council find that the actions contemplated by th is Ordinance, including the issuance of retail cannabis business permits, are categorically exempt from the California Environmental Quality Act (“CEQA”) under Section 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code of Regulations. Further, the City Council finds that pursuant to Section 4-35.06 of Chapter 4-35 of the City Municipal Code as codified by this Ordinance, cannabis retailers are a use permitted in certain zoning districts within the City. As permitted in those zoning districts, cannabis retailers are similar to already existing permitted general uses in those zoning districts with the only difference being the type of product being delivered or sold.

SECTION 14. Severability. If any provision, section, paragraph, sentence, phrase, or word of th is Ordinance is rendered or declared invalid, illegal, or unconstitutional by any final action in a court of competent jurisdiction or by reason or any preemptive legislation, such unconstitutionality illegality or invalidity shall only affec t such provision, City Council Regular Meeting - Page 631 of 664

46 section, paragraph, sentence, phrase, or word and shall not affect or impair any remaining provisions, sections, paragraphs, sentences, phrases, or words, or the application of this Ordinance to any other person or circumstance, and to th at end, the provisions hereof are severable. It is hereby declared to be the intention of the City Council that that this Ordinance would have been adopted had such unconstitutional illegal or invalid provision, section, paragraph, sentence, phrase, or word not been included herein.

SECTION 15. Liberal Construction. This Ordinance is an exercise of the police power of the City Council to provide for safe and regulated access to cannabis and cannabis products, and shall be liberally construed to effectuate that purpose.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lynwood, California this ____ day of August 2022.

_______________________
Jorge Casanova, Mayor

ATTEST:

____________________________
Maria Quinonez, City Clerk

APPROVED AS TO FORM

____________________________
Noel Tapia, City Attorney

City Council Regular Meeting - Page 632 of 664

1 ORDINANCE NO. _________

AN OR DINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD

ENACTING A CANNABIS RETAILER BUSINESS LICENSE TAX ON THE

RETAIL BUSINESS OF SELLING CANNABIS PRODUCTS TO PROVIDE

CITY GENERAL FUND SERVICES THAT RESIDENTS NEED AND

WANT, INCLUDING B UT NOT LIMITED TO SENIOR CITIZEN

PROGRAMS, CITY BEAUTIFICATION EFFORTS, ENFORCEMENT OF

ILLEGAL CANNABIS OPERATIONS, PUBLIC SAFETY, HOUSING

PROGRAMS, RECREATION SERVICES , INFRASTR UCTURE,

HOMELSS REDUCTION AND OTHER CITY EFFORTS

WHEREAS, This measure shal l be known and may be cited as “The Lynwood Cannabis Taxation and Essential City Services Measure” (the “Measure”).

WHEREAS, The City does not currently have a structure in place to regulate and tax cannabis retailers.

WHEREAS, The City has a great need for additional funds to provide the level of general fund services that residents need and want , including but not limited to senior citizen programs, City beautification efforts, enforcement of illegal cannabis operations, public safety, housing programs, recreation services, infrastructure, homeless reduction and other City efforts.

WHEREAS, The People of th e City hereby intend to impose a general tax applicable to cannabis retailers for purposes that may include the funding of senior citizen programs, City beautification efforts, enforcement of illegal cannabis operations, public safety, housing programs, recreation services, infrastructure, homeless reduction and other City efforts.

NOW THEREFORE, THE PEOPLE OF THE CITY OF LYNWOOD DO ORDAIN AS FOLLOWS:

SECTION 1. Chapter 4-36 is hereby added to Chapter 4 of the Lynwood Municipal Code, regarding business licensing for revenue of the retail sales of cannabis products, to read as follows:

4.36 CANNABIS RETAILER TAX

4-36.1 Authority and Purpose.

a. The purpose of this Chapter is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the State Government Code, upon cannabis retailers that engage in business in the City. This Cannabis Retailer Tax is levied based City Council Regular Meeting - Page 633 of 664

2 upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.

b. The Can nabis Retai ler Tax i s a general tax enacted solely for general governmental purposes of the City and not for specific purposes. All of the proceed s from the tax imposed by this Chapter 4-36 shall be placed in the City’s general fund and be available for any lawful City expenditure.

c. To the extent that any other provision of the Lynwood Municipal Code is inconsistent with the provisions of this Chapter 4-36, the provisions of this Chapter 4-36 shall prevail.

4-36.2 Intent.

The intent of thi s Chapter 4-36 is to impose a general tax applicable to cannabis retailers for the purpose of funding any and all governmental purposes, including but not limited to senior citizen programs, City beautification efforts, enforcement of illegal cannabis operations, public safety, housing p rograms, recreation services , infrastructure, homeless reduction and other City efforts.

4-36.2 Definitions.

When used in this Chapter 4.36, the following words shall have the meanings ascribed to them as set fort h herei n. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common u sage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any su ccessor or amended version of the referenced statute or regulatory provision.

“Adult-Use Cannabis” or “Adult-Use Cannabis Product” means cannabis or cannabis products for individuals twenty -one (21) years of age and over without the need for a physician’s recommendation.

“Business” means all activities engaged in or caused to be engaged in within the City, including any comme rcial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to that employee’s employer.

“Cannabis” has the same meaning as defined in Chapter 4 -35 of the City Municipal Code.

“Cannabis Product” has the same meaning as defined in Chapter 4 -35 o f th e City Municipal Code.

City Council Regular Meeting - Page 634 of 664

3 “Cannabis Retailer Tax” or “Tax” means the tax due pursuant to this Chapter 4.36 for engaging in dispensing within in the City.

“City” means the City of Lynwood, State of California.

“City Council” means the City Council of the City of Lynwood.

“Commercial Cannabis Activity” has the same meaning as defined in Chapter 4-35 of the City Municipal Code.

“Code” means the City Municipal Code.

“Customer” has the same meaning as defined in Chapter 4 -35 of the City Municipal Code.

“Delivery” has the same meaning as defined in Chapter 4-35 o f t he City Munic ipal Code.

“Dispensary” or “Retailer” or “Cannabis Retailer” has the same meaning as defined in Chapter 4-35 of the City Municipal Code.

“Dispensing” or “ Retail Sale(s)” has the s ame meaning as defined in C hapter 4-35 of the City Municipal Code.

“Employee” has the same meaning as defined i n Chapter 4 -35 of the City Municipal Code.

“Engaged(s) In Business” means the commencing, conducting, operating, managing, or carrying on of a cannabis retailer and the e xercise of corporate or franchise powers, whether done as an owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside lo cation to engage in such ac tivities. A person sha ll be d eemed engaged in business if any of the following apply:

a. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;

b. Such person or person’s employee owns or leases real property within the City for business purposes;

c. Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;

d. Such person or person’s employee r egularly cond ucts so licitation of business within the City; or

City Council Regular Meeting - Page 635 of 664

4 e. Such person or person’s employee performs work or renders services in the City.

The foregoing specified activities shall not be a limitation on the meaning of “Engaged In Business”.

“Evidence of Doing Business ” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a governme nt a gency or to the publ ic that such person is engaged in a cannabis retailer in the City.

“Fiscal Year” means July 1 through June 30 of the following calendar year.

“Gross Receipts” has the same meaning as defined in Chapter 4 -35 of the City Municipal Code.

“Manager” has the same mean ing as defined i n Chapt er 4 -35 of the City Municipal Code.

“Marijuana” means “Cannabis” as that term is defined in this Chapter 4-36.

“MAUCRSA” has the same meaning as defined in Chapter 4 -35 of the City Municipal Code.

“Medicinal Cannabis” or “Medicinal Canna bis Product ” me ans cannabis or a cannabis product for use by a qualified patient.

“Owner” has the same meaning as defined in Chapter 4-35 of the City Municipal Code.

“Patient” or “Qualified Patient” has the same meaning as defi ned in Cha pter 4-35 of the City Municipal Code.

“Person” has the same meaning as defined in Chapter 4-35 of the City Municipal Code.

“Person With An Identification Card” has the same meaning as defined in Chapter 4 - 35 of the City Municipal Code.

“Sale” means any sale, exchange, or barter or other transaction for any consideration.

“State” means the State of California.

“Tax Administrator ” means the City Manager of the City of Lynwood or his /her designee(s).

4-36.4 Tax Imposed.

City Council Regular Meeting - Page 636 of 664

5 a. There is established and imposed upon eac h person who is e ngaged in business as a cannabis retailer an annual Can nabis Retailer Tax, at the rates set forth in this Chapter 4.36. Such Tax is payable regardless of whether the business is operating lawfully in the City or unlawfull y. The City’s ac ceptance of a Cann abis Retailer Tax payment , from a cannabis retailer oper ating illegally, shall not constitute the City’s approval or consent to such illegal operations.

b. Medicinal Retailers and Adult -use Retailers . Th e Cannabis Retail er Tax upon every person who engages in business as a retailer of medicinal cannabis, medicinal cannabis products, or adult-use cannabis or adult use cannabis products shall be at the following annual rates:

1. The tax rate upon the e ffective date of this Chapter 4-36 shall b e five percent o f the gross receipts derived from the retail sale of me dicinal cannabis or medicinal cannabis products or adult -use cannabis or adult -use cannabis products.

Such tax rate may increase or decrease b y Resolution adopted by the City Council but shall not exceed the maximum tax rate of ten (10) percent without voter approval.

4-36.5 Exemptions From The Tax.

This Chapter 4-36 shall not apply to personal use of cannabis that is specifically exempted from State licensing r equirements and t hat meets the defini tion of personal use or equivalent terminology under State law.

4-36.6 Reporting and Remittance of Tax.

The Cannabis Retailer Tax imposed by this Chapter 4-36 shall be imposed on a fiscal year basis and shall be due and payable in quarterly installments as follows:

a. The owner(s) or manager(s) of each can nabis retailer shall, on or before the last day of the month following the close of each fiscal year quarter, prepare and submit a tax statement on the form prescribed by the Tax Administrator and remit to the Tax Administrator the Tax due. The Tax due sh all be no less than the quarterly installment due, but the taxpayer may prepay any amount of Tax at any time.

b. Tax statements and payments for all outstanding Taxes owed the City are immediately due to the Tax Administrator upon cessation of a cannabis retailer for any reason.

4-36.7 Nonpayment of Tax; Penalties and Interest Established by Ordinance.

a. Any person who fails or refuses to pay any Cannabis Retailer Tax required to be paid pursuant t o this Chapter 4-36 on or before the due date shall pay penalties and interest as follows:

City Council Regular Meeting - Page 637 of 664

6 1. A penalty equal to ten percent (10%) of the amount of the Tax, in addition to the amount of the Tax, plus interest on the unpaid tax calculated from the due date of the Tax at the rate of one percent (1%) per month.

2. If the Tax remains unpaid for a period exceeding three (3) calendar months beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the Tax , plus interest at t he rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.

3. These penalty provisions shall not be construed to preclude or limit the enforcement of the penal provisions of this Chapter 4-36 or the Code.

b. Whenever a check or electronic payment is submitted in payment of a Cannabis Retailer Tax and the payment is subsequently returned unpaid by the bank, the taxpayer will be liable for the Tax amou nt due plus any fees, pe nalties, and interest as provided for in this Chapter 4-36, and any other amount allowed under State law.

4-36.8 Administration of the Tax.

a. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this Chapter 4-36.

b. For purposes of administ ration and enforcement of this Chapter 4-36 generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consis tent with the purpose, i ntent, and express terms of this Chapter 4-36 as he /she deems reasonably necessary to implement or clarify such provisions or aid in enforcement, including but not limited to:

1. Provide forms to all taxpayers for the reporting of the Tax;

2. Provide i nformation to any taxpayer concerni ng th e provisions of this Chapter 4-36;

3. Receive and record all taxes r emitted to the City as provided in this Chapter 4-36;

4. Maintain records of taxpayer reports and taxes collected purs uant to this Chapter 4-36;

5. Assess penalties and interest to taxpayers pursuant to this Chapter 4-36; and

6. Determine amounts owed a nd enforce collection pursuant to this Chapter 4-36.

4-36.9 Appeal Procedure.

City Council Regular Meeting - Page 638 of 664

7 Any taxpayer aggrieved by an y decision of the Tax Admi nistrator with respect to t he amount of tax, interest, penalties, and fees, if any, due under this Chapter 4-36 may appeal to the City Council by filing a notice of appeal with the City Clerk within forty -five (45) calendar days o f the serving or mailing o f the deter mination of Tax due. The City Clerk, or his or her designee, shall fix a time and place for hearing such app eal, and the City Clerk, or his /her designee, shall give notice in writing to such cannabis retailer at the last known place of addr ess. The findi ng o f the Ci ty Council shall be a f inal administrative decision, subject to judicial review and remedies, and shall be served upon the appellant in the manner prescribed by this Chapter 4-36 for service of notice of hearing. Any amount foun d to be due sha ll be immediately due and pay able upon the service of the notice.

4-36.10 Constitutionality and Legality.

This Tax is intended to be applied in a manner consistent with the United States and State Constitutions and State law. N one of the Tax provided f or by this Chapter 4-36 shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State, or a viol ation of any other provis ion of the State Constitution or St ate law. If a p erson believes that the Tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the Tax.

4-36.11 Apportionment.

If a cannabis retailer subject to the Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Retailer Tax so that the measure of the Ta x fairly reflects the pro portion of the taxed activi ty actually carried on i n the City. To the extent federal or State law require s that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment o n his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds reasonably useful or necessary.

4-36.12 Audit and Examination of Records and Equipment.

a. For the purpose of ascertaini ng the amount of Cannabis Retailer Tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location where commercial cannabis activity oc curs and to audit and exam ine all books and records (including, but not limited to bookkeeping records, State and federal income tax returns, and other records rela ting to the gross receipts of the business) of owners and managers of a cannabis retailer. In conducting such investi gation, the Tax Administrator sh all have t he power to inspe ct a ny e quipment, such a s computers or point of sale machines, that may contain such records.

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8 b. It shall be the duty of every person liable for the collection and paymen t to the City of any Tax i mposed by this Chapter 4-36 to keep and preserve, for a per iod of at least seven (7 ) years, all records as may be necessary to determine t he amount of such Tax as he or she may have been liable for the collection of and payment to the City, which records t he Tax Administrator shall have the right to inspect at all reasonable times.

4-36.13 Payment Of Tax Does Not Authorize Unlawful Conduct.

a. The payment of a Cannabis Retailer Tax required by this Chapter 4-36, and its acceptan ce by the City, shall not entitle any person to operate as a cannabis retailer unless the person has complied with all of the requirements of the Code, MAUCRSA, and all other applicable State laws.

b. No Tax paid under the provisions of this Chapter 4-36 shall be construed as auth orizing the conduct or continuan ce o f any illegal or unlawf ul b usiness, or any business in violation of any local or State law.

c. Nothing in this Chapter 4-36 shall be construed as in conflict with State or federal law.

d. It s hall be the responsibility of the owners and managers of a cannabis retailer to ensur e th at t he cannabis reta iler is, at all times, operating in a manner compliant with the protection of public health, safety, and community standards, including all applicable State and local laws and regulations, including any subsequently enacted State or local l aw or regulatory , licensing, or certification standards or requirements, and any specific, additional operating procedures or requirements, which may be imposed as conditions of approval of any State or City license or permit.

4-36.14 Other Licenses, Permits, Taxes, Fees, or Charges.

Nothing contained in this Chapter 4-36 shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any require ments for any permit or li cense required by, under or by virt ue o f any other provision o f th is C ode or any other ordinance or resolution of the City Council, nor be de emed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee, or other charge imposed, assessed or required by, under or by virtue of any other provision of t he Code or any other ord inance or resolution of the City Council. Any referenc es made or contained in any other provision of the Code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the lic enses, l icense taxes, fe es or charges, or schedule of license fees, provided for in other provisions of this Code.

4-36.15 Deficiency Determinations.

If the Tax Administrator is not reasonably satisfied that any statement file d as required under the pro visions of this Chapter 4-36 is correct, or that the amount of Tax is City Council Regular Meeting - Page 640 of 664

9 correctly computed, he or she may compute and determine the amount to be paid an d make a deficiency determ ination upon the basis of the facts contained in the statement or upon the b asis of any information in his or her possession or that may come into his or her p ossession within two (2) years of the date the Tax was originally d ue and payable. One or mo re deficiency determinations of the amount of tax due for a period or period s may be made. When a person di scontinues engaging in a business, a deficiency determination may be made at any time within two (2) years thereafter as t o any liability arising fr om engaging in such business whether or not a deficiency determination is issued prior to the date the Tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned i n the same manner as notices of assessment are given in this Chapter 4-36.

4-36.16 Failure To Report; Nonpayment; Fraud.

a. Under any o f the following circumstances, the Tax Administrator ma y make and give notice of an assessment of the amount of Tax ow ed by a person under this Chapter 4-36 at any time:

1. If the person has not filed a complete stateme nt required under th e provisions of this Chapter 4-36;

2. If the person has not paid the Tax due under the provisions of this Chapter 4-36;

3. If the p erson has not, after deman d by the Tax Administrator, filed a corrected statement, or furnished to the Tax Adminis trator adequate substant iation of the information contained in a statement alre ady filed, or paid any additional amount of tax due under the provisions of this Chapter 4-36; or

4. If the Tax Administrator determines that the n onpayment of any Cannabis Retailer Tax is due to fraud, a penalty of twenty-five percent (25%) of the amount of the Tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter 4-36 and any other penalties permitted by law.

b. The notice of assessment shall separately set forth the amount of any Tax known by the Tax Administra tor to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator’s knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this Chapter 4-36 and shall include the amount of any penalties or int erest accrued on each amount to the date of the notice of assessment.

4-36.17 Tax Assessment; Notice Requirements.

The no tice of assessment shall be served upon the person either (1) by personal delivery; (2) by overnight delivery by a nationally -recognized courier service, or b y a deposit of the notice via United States Postal Service Priority M ail Express (or a City Council Regular Meeting - Page 641 of 664

10 comparable service with another carrier or with the United States Postal Service, should Priority Mail Express no longer be provided) with proo f of delivery, postage pre paid thereon, addressed to the person at the address of the location of the business or to such ot her address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this Chapter 4-36; or (3) should the pe rson have no address registered with the Tax Administrator for such purpose, then to such person’s last kn own address. Fo r the purposes of this Chapter 6-9.17, a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by United States Postal Service Priority Mail Express shall be deemed to have occurred three (3) calendar days following deposit of the notice.

4-36.18 Tax Assessment; Hearing, Application, and Determination.

Within forty-five (45) calendar days after the date of service, the person may apply in writing to the Tax Administrator for a hea ring on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Tax assessed by the Tax Administrator shall be a final administrative de cision, su bject t o judicial review. Wi thin thirty (30) calenda r days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to b y the Tax Administrator and the person requesting the h earing.

Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than fifteen (15) calendar d ays prior to such hearing. A t such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be co nfirmed and fixed as the t ax due. After such hearing the Tax Administrator shall determi ne and rea ssess t he proper tax to be charged an d shall give wri tten notice to the person in the manner prescribed in t his Chapter 4-36 for giving notice of assessment.

4-36.19 Relief From The Tax; Disaster Relief.

a. If a cannabis retailer is unable to comply with any Tax requirement due to a di saster, the cannabis retailer may notify the Tax Administrator of this inab ility to comply and request relief from the tax r equirement. A reque st for relief must clearly indicate why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time.

b. To obtain relief, the cannabis retailer agrees to grant the Tax Administrator access to the location where the cannabis retailer has been impacted due to a disaster.

c. The Tax Admin istrator, in his or her reasonable discretion, may provide relief from the Cann abis Retailer Tax requirement for cannabis retail er whose operations have been impacted by a disaster if such tax liability does not excee d $100,000.00. If such Tax liability i s $100,001.00 or more, t han such relief shall only be approved by the City Council.

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11 d. Temporary relief from the Cannabis Retai ler Tax may be grant ed for a reasonable amount of time as determined by the Tax Administr ator or the City Council, as applicable in order to allow the cannabis retailer time to recover from the disaster.

e. The Tax Administrator or City Council, as applic able, may require th at certain conditions be followed in order for a cannabis retailer to receive temporary relief from the Cannabis Retailer Tax requirement.

f. For purposes of this Chapter 4-36.19, “disaster” means, including but not limited to, natu ral disasters (such as, but not limited to, fires, explosions, earthquakes, drought, tida l w aves, and flo ods); war, hostilities, inva sion, ac t of foreign ene mies, mobilization, requisition, or embargo; rebellion, revolution, insurrection, military or usurped power, or civil w ar; riot, commotion, strikes, go slows, lock outs, or disorder; a pandemic; or acts or threats of terrorism.

4-36.20 Conviction For Violation; Tax Not Waived.

Lynwood City CouncilJuly 19, 2022

Lynwood City Council
July 19, 2022