Agenda, first session — Lynwood City Council, July 16, 2024 (part 4 of 4)

464
Customer ID APN Site Address Delinquent
Amount
County
Collection
Cost
City
Administration
Cost
Professional
Consulting
Cost
Total
Estimated
Administration
Expenses*
Total
Estimated
Charge
075240 6194025015 11256 Louise Ave 183.66 0.25 25.00 4.00 29.25 212.91 080608 6194026010 11217 Wright Rd 555.37 0.25 25.00 4.00 29.25 584.62 067655 6194026020 11207 Wright Rd Apt 2 425.08 0.25 25.00 4.00 29.25 454.33 076529 6194027004 5317 Beechwood Ave 322.68 0.25 25.00 4.00 29.25 351.93 034106 6194027007 11172 Louise Ave 307.59 0.25 25.00 4.00 29.25 336.84 036313 6194027009 11160 Louise Ave 423.70 0.25 25.00 4.00 29.25 452.95 034012 6194027012 11155 Wright Rd 500.37 0.25 25.00 4.00 29.25 529.62 033917 6194027034 11137 Wright Rd 83.99 0.25 25.00 4.00 29.25 113.24 033732 6194028003 11100 Louise Ave 35.75 0.25 25.00 4.00 29.25 65.00 038402 6207009023 10235 State St Apt D 283.65 0.25 25.00 4.00 29.25 312.90 036662 6207010004 10231 Long Beach Blvd 431.98 0.25 25.00 4.00 29.25 461.23 038023 6208011003 3327 Tenaya Ave 854.05 0.25 25.00 4.00 29.25 883.30 038063 6208011006 3337 TENAYA AVE 95.06 0.25 25.00 4.00 29.25 124.31 042076 6208013003 3281 Seminole Ave 557.45 0.25 25.00 4.00 29.25 586.70 037872 6208013005 3289 Seminole Ave 426.78 0.25 25.00 4.00 29.25 456.03 037883 6208013006 3293 Seminole Ave 576.60 0.25 25.00 4.00 29.25 605.85 037913 6208013008 3303 Seminole Ave 296.08 0.25 25.00 4.00 29.25 325.33 037885 6208013017 3294 Tenaya Ave 258.70 0.25 25.00 4.00 29.25 287.95 038028 6208014003 3329 Seminole Ave 95.06 0.25 25.00 4.00 29.25 124.31 038113 6208014008 3349 Seminole Ave 245.23 0.25 25.00 4.00 29.25 274.48 038177 6208014012 3363 Seminole Ave 265.58 0.25 25.00 4.00 29.25 294.83 033404 6208014013 10419 Mariposa Ln 61.12 0.25 25.00 4.00 29.25 90.37 038016 6208014023 3326 Tenaya Ave 650.75 0.25 25.00 4.00 29.25 680.00 037916 6208016018 3304-06 Seminole Ave 611.20 0.25 25.00 4.00 29.25 640.45 038174 6208017008 3361 Martin Luther King Jr Blvd 426.50 0.25 25.00 4.00 29.25 455.75 040624 6208017011 10605 Mariposa Ln 167.31 0.25 25.00 4.00 29.25 196.56 038167 6208017012 3360 Tecumseh Ave 61.12 0.25 25.00 4.00 29.25 90.37 038152 6208017013 3356 Tecumseh Ave 61.17 0.25 25.00 4.00 29.25 90.42 038090 6208017017 3344 Tecumseh Ave 61.12 0.25 25.00 4.00 29.25 90.37 083570 6208017020 3334 Tecumseh Ave 61.17 0.25 25.00 4.00 29.25 90.42 080794 6208018043 3415 Martin Luther King Jr Blvd 252.26 0.25 25.00 4.00 29.25 281.51 041055 6218003077 4467 ABBOTT RD 93.60 0.25 25.00 4.00 29.25 122.85 073025 6218004061 4401 Abbott Rd 183.66 0.25 25.00 4.00 29.25 212.91 041040 6218009078 4367 Abbott Rd 654.32 0.25 25.00 4.00 29.25 683.57 066601 6218013035 4107 Abbott Rd 245.23 0.25 25.00 4.00 29.25 274.48 040353 6218013036 4103 Abbott Rd 338.53 0.25 25.00 4.00 29.25 367.78 040750 6218024001 4261 Abbott Rd 451.36 0.25 25.00 4.00 29.25 480.61 041212 6219024014 4667 Abbott Rd 657.00 0.25 25.00 4.00 29.25 686.25 041213 6219024015 4671 Abbott Rd 61.12 0.25 25.00 4.00 29.25 90.37

Page 32 of 33 ends

465
Customer ID APN Site Address Delinquent
Amount
County
Collection
Cost
City
Administration
Cost
Professional
Consulting
Cost
Total
Estimated
Administration
Expenses*
Total
Estimated
Charge
041235 6219030014 4713 Abbott Rd 470.83 0.25 25.00 4.00 29.25 500.08 041286 6220017015 4871 Abbott Rd 38.66 0.25 25.00 4.00 29.25 67.91 039074 6223009002 3709 Abbott Rd 246.41 0.25 25.00 4.00 29.25 275.66 039118 6223009004 3719 Abbott Rd 83.43 0.25 25.00 4.00 29.25 112.68 039152 6223009046 3727 Abbott Rd 419.50 0.25 25.00 4.00 29.25 448.75 039266 6223010020 3809 Abbott Rd 658.51 0.25 25.00 4.00 29.25 687.76 039245 6223010021 3801 Abbott Rd 164.94 0.25 25.00 4.00 29.25 194.19 041132 6223015018 3919 Abbott Rd 647.26 0.25 25.00 4.00 29.25 676.51 Totals: $355,443.73 $313.50 $31,350.00 $5,016.00 $36,679.50 $392,123.23 *Amount is subject to change.

Page 33 of 33 ends

466
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD OF ITS

INTENTION TO LEVY AND COLLECT REFUSE CHARGES AGAINST SINGLE FAMILY RESIDENTIAL PARCELS (UP TO THREE UNITS) IN FISCAL YEAR 2024-2025 ON THE

COUNTY TAX ROLL AND AUTHORIZI NG AND DIRECTING THE COUNTY

ASSESSOR TO INCLUDE DELINQUENT RESIDENTIAL REFUSE BILLS FROM WASTE RESOURCES, INC. (WRI) AS A SPECIAL ASSESSMENT TO BE COLLECTED

AT THE SAME TIME AND IN THE SAME MANNER AS COUNTY TAXES AND FIXING

THE TIME AND PLACE FOR HEARING PROTESTS AND OBJECTIONS AS AUGUST 6, 2024
WHEREAS, Section 38790.1 of the California Government Code authorizes cities to collect delinquent refuse bills via a spec ial assessment to be collected with county taxes;
WHEREAS, Health and Safety Code Section 5473 allows any entity, by a two- thirds vote of the members of the legislative body, to elec t to have refuse and garbage collection on property tax rolls;
WHEREAS, various cities and counties have placed delinquent refuse charges on the property tax roll as a mechanism of collection; and WHEREAS, Lynwood Municipal Code Section 9-1 supports this mechanism of collection for delinquent garbage and rubbish charges;
WHEREAS, the City of Lynwood has entered into agreements for the collection of refuse by private refuse fi rms pursuant to the provisions of City of Lynwood Municipal Code Section 9-1 (Health and Sanitation; Garbage and Refuse); WHEREAS, the City of Lynwood has entered into an agreement with Waste Resources, Inc. for the collection of refuse within the City of Lynwood pursuant to an exclusive franchise;
WHEREAS, the agreement with Waste Resources, Inc. places the responsibility of collecting accounts that are delinquent for over 60 days to the City of Lynwood; WHEREAS, the City Council of t he City of Lynwood desires to keep the refuse collection costs at a minimum within the City and requi re that all persons pay their fair share of these collection costs in order to keep fees as low as possible; and WHEREAS, the City Council of the City of Ly nwood has determined that the best method of achieving this goal is to establish permanent procedures whereby the City can place overdue charges of delinquent accounts on the property tax assessment rolls of single-family residential parcels (up to three units) so as to better ensure payment; and WHEREAS, the City Council of the City of Lynwood believes that these procedures are in the best interest of the City of Lynwood.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AS FOLLOWS:
467
Section 1. The Fees authorized pursuant to City of Lynwood Municipal Code Section 9-1, including those o wing prospectively as well as those that remain unpaid as of April 30 of any year, may be collected on the property tax roll pursuant to the provisions of Health & Safety Code Section 5473 et seq as those may be amended from time to time. a. Written Report: Annually, on or before June 15 of each year, the City or its Solid Waste Contractor shall cause a written report to be prepared and filed with the City Clerk. The report shall describe each parcel of real property in the City receiving services and the amount of the charge associated with such services for the next fiscal year.

In addition, for collection of delinquent accounts, the contractor shall cause a report of delinquent fees or charges to be prepared annually after April 30 of any year. The report may contain both prospective and delinquent charges.

b. Upon receipt of the initial report, t he City Council shall fix a time, date and place for a public hearing on the report and any objections or protests thereto, and shall cause written notice of such hearing to be ma iled to the landowners listed on the report not fewer than 15 calendar days prior to the date of the public hearing. Thereafter, annual notice regarding the report shall be made by publication pursuant to Health & Safety Code Section 5473.1 prior to the date set for the hearing, as that may be amended from time to time and pursuant to Govt. Code Section 6066.
c. The City Council hereby sets the pub lic hearing as August 6, 2024, at the hour of 6:00 p.m. or soon thereafter, in the Council Chamber of the City Hall Annex, 11350 Bullis Road, Lynwood, California.
d. At the hearing, the City Council s hall hear any objections or protests of landowners liable to be assessed for fees. At the conclusion of its public hearing, the City Council shall determine and approve, as an assessment against the property, all past due billings and penalties due to t he date of said hearing, together with the costs incurred in collecting the unpaid charges. If there is a majority protest of the total number of property owners notified, the report shall not be approved. Otherwise, the City Council may make such revisions or corrections to the report as it deems just; after which, by resolution, the report may be confirmed.
e. After the public hearing, without delaying the s ubmittal of the list of delinquent amounts per parcel to the County, property owners will be given an opportunity to pay delinquent charges prior to the placem ent of delinquent charges on property tax rolls.
f. A certified copy of t he confirmed report shall be filed with the County Auditor for amounts of the respective assessments against the respective parcels of land as they appear on the current assessment roll. The City Clerk shall file the report with the County Auditor before August 10th of each year, unless allowed otherwise by the County Auditor.

The City may delegate responsibilities for the report to the Contractor or to a contractor for the City except for the conduct of the public hearing.

468
Section 2. Special Assessment.
a. The fees set forth in the report as confirmed shall constitute special assessments against the respective parcels of land, and are a lien on the property for the amount of such delinquent fees plus administrative costs. The lien created attaches upon recordation, in the office of the County Recorder, of such certified copy of the resolution of confirmation. Cal. Gov. Code § 25831.
b. The assessment may be collected at t he same time and in the same manner as ordinary county ad valorem property taxes and shall be subject to the same penalties and the same procedure, including sale in case of delinquency, as provided for such taxes.
c. All laws applicable to the levy, co llection and enforcement of ad valorem property taxes shall be applicable to such asse ssments, except that, if any real property to which such fees or charges attach to has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of such taxes would become delinquent, then the lien which would otherwise be imposed shall not attach to such real property and the f ees or charges and interest shall be transferred to the unsecured roll for collection.
d. Each delinquent refuse bill shall be increased by an amount not to exceed the actual costs incurred by the County of Los Angeles and charged to the City of Lynwood for placing the delinquent refuse bills on the property tax roll via special assessment. e. The list of properties and the amount to be collected attached as Exhibit “A,” shall be forwarded to the County Assessor for posting on the tax bill as a special assessment. Exhibit “A” may be modified by the City Manager prior to placing the delinquent bills on the property tax roll where delinquent refuse charges are paid following the August 6, 2024 public hearing.

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.

469
PASSED, APPROVED and ADOPTED this 16th day of July, 2024.

_______________________________
José Luis Solache

ATTEST:

Mayor
__________________________ _________________________________ María Quiñonez 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

470

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, María Quiñonez, the undersi gned, City Clerk of the Cit y of Lynwood, do hereby certify that the foregoing re solution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held by the City Council of the City of Lynwood at a meeting held on 16th day of July, 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:

_________________________________

María Quiñonez
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, Maria Quiñonez, 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. 2024. on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this ___ day of ____, 2024.

_________________________________

María Quiñonez
City Clerk

471

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Julian Lee, Director of Public Works
SUBJECT:

AWARD OF CONTRACT TO DEARK E&C INC. FOR LYNWOOD PARK
TENNIS COURT RESURFACING PROJECT (CIP PROJECT NO.
4011.68.121)
Agenda Item # 8.4.

Recommendation:

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

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONTRACT TO DEARK E&C INC. FOR THE DESIGN-BUILD SERVICES OF THE LYNWOOD PARK TENNIS COURT RESURFACING PROJECT (4011.68.121);

AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND AUTHORIZING THE

CITY MANAGER TO APPROVE AGREEMENT AMENDMENTS RELATED TO THE PROJECT.”
Background:

As part of the City’s Fiscal Year (FY) 23-24 Capital Improvement Projects (CIP) Program, the City budgeted for Tennis Renovations as well as the installation of a storage facility at Lynwood Park. Staff evaluated the existing conditions of Lynwood Park and created a Request for Proposals (RFP) for the existing tennis courts and a new storage facility. On April 26, 2023, Staff received two proposals for the design-build of the Lynwood Park Tennis Courts and Storage Facility. The lowest proposal submitted had a construction bid estimate of $2,000,000 for the full renovations of the tennis court portion. With construction contingency, project management, construction inspection and other cost, the total construction cost was estimated to be approximately $2,400,000. The project budget for the storage facility and tennis courts during this time was $1,150,000 which was less than half the total construction cost.

City Council City Council Regular Meeting 472

On August 15, 2023, Staff recommended to City Council to reject all proposals due to insufficient funding. After discussion with the Recreation & Community Services Department, Staff determined to move forward with the repairs of the tennis courts as it is an urgent need.

The tennis courts are severely damaged and staff needs to repair the tennis courts before the existing conditions become worse. Staff has reassessed tennis courts project and came up with an engineer’s estimate of $600,000 for construction cost and $200,000 for soft cost. The funding for the tennis courts project and have increased the project funding to $800,000 as part of the City’s FY 25 budget.

On April 24, 2024, staff uploaded a Request for Proposal (RFP) to the city website (PlanetBids) for the Lynwood Park Tennis Court Resurfacing project. A mandatory site meeting was held on May 13, 2024 at 9:00 am.

Discussion and Analysis:

On May 27, 2024, the bid opening took place and Deark E&C Inc. was the only firm to submit a proposal for project in the amount of $675,900.

The work will include the following, but is not limited to: removal and replacement of existing concrete on tennis courts, installation of acrylic sport resurfacing bleachers, nets and posts and replacement of the board for the hand ball court.

Staff reviewed the proposal and feels content with the proposed scope of work and pricing. In addition, Staff has checked the contactor’s past experiences and has received positive feedback from the references of the past similar projects completed by the contactor.

Therefore, Staff recommends that the City Council award the contract to Deark E&C Inc. in the amount of $675,900. It is estimated that the project will take seventy (70) calendar days to complete the work set forth in the proposal. Staff will circulate the contract documents, set up a preconstruction meeting, and schedule the work to commence.

The table below shows the estimated construction cost:

Description
Amount
Construction Cost
$675,900
Contingency (15%)
$101,400
City Council City Council Regular Meeting 473
Construction Contract Agreement.pdf
DeArk Lynwood_Tennis Court - Proposal.pdf
07-16-24 Lynwood Park Tennis Courts Award (Resolution) - PWD.docx Project Management, Labor Compliance, and other cost (3.4%) $22,700
Total Estimated Construction Cost
$800,000

The project funding comes from a carried forward amount $300,000 of 2020 Lease Revenue Bond and new FY 25 appropriation amount of $500,000 from 2020 Lease Revenue Bond making the total project funding $800,000.

Fiscal Impact:

The Project has an adopted FY 25 Budget of $800,000 from 2020 Lease Revenue Bond funds. No additional appropriation is needed.

Coordinated With:

City Manager’s Office
Department of Recreation & Community Services
Department of Finance and Administration Services
ATTACHMENTS:

Description
City Council City Council Regular Meeting 474

CITY OF LYNWOOD CONSTRUCTION AGREEMENT

FOR CONSTRUCTION OF PROJECT NO. 4011.68.121 ENTITLED
“LYNWOOD PARK TENNIS COURT RESURFACING PROJECT (CIP
PROJECT NO. 4011.68.121)”

This agreement (the “Agreement”) is made and entered into on this _16th day of July, 2024_ by and between the City of Lynwood, a California Municipal Corporation ("City") and DeARK E&C Inc., a General Contractor ("Contractor"). City and Contractor are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.”

R E C I T A LS

City and Contractor, based upon the mutual promises contained herein, do hereby agree as follows:

I. CONTRACT DOCUMENTS

This Agreement consists of the following Contract Documents, the terms and conditions of which are expressly incorporated as component parts of this Agreement as if herein set out in full or attached hereto:

A. Notice Inviting Bids Dated ________
B. Instructions to Bidders.

C. Addenda.

D. Contractor’s Proposal and Workers’ Compensation Certificate dated November 1st, 2023, and all other Documents attached thereto, including but not limited to:

1. Bid Schedule(s)

2. List of Subcontractors

3. Anti-Trust Claim

4. Non-Collusion Affidavit

5. Bidder’s General Information

6. Bid Bond (Bid Security Form)

7. Bidder’s Insurance Statement
E. Payment Bond.

F. Performance Bond.

G. Certificates/Proof of Insurance and Endorsements.

H. Certified Copy of the Lynwood City Council Resolution, not required.

I. Notice of Award dated____________.

J. Notice to Proceed dated ______TBD________.

K The Plans (Contract Drawings).

L. Special Provisions
M. Standard Specifications for Public Works Construction, “Greenbook” latest Edition.

N. Appendices A through E of the Contract Documents.

O. Reference Specifications.

P Approved and Fully-Executed Change Orders.
475
Q. The Director of the Department of Industrial Relations’ Determination of Prevailing Wage Rates for Public Works for each craft or type of worker required to perform the Work under this Agreement.

476

II. CONTRACT PRICE

The City agrees to pay, and the Contractor agrees to accept as full payment for the Work outlined in the Contract Documents, the Contract Price of SIX HUNDRED SEVENTY-FIVE THOUSAND NINE HUNDRED DOLLARS ($675,900), subject to additions and deductions, if any, made in accordance with said Contract Documents. Progress payments shall not be made more often than once each thirty (30) days, nor shall progress payments paid be in excess of ninety percent (95%) of the Contract Price at time of completion. Final payment to Contractor will be processed thirty -five (35) days after the City has recorded the Notice of Completion. Contractor may, upon Contractor's written request, and approved by the City Council, at Contractor's expense, deposit substitute securities, as stated in Government Code Section 16430, and as authorized by Public Contract Code, Section 22300, in lieu of retention monies withheld to insure performance.

Payment of undisputed amounts due under this Agreement, including the final payment due hereunder, is contingent upon the Contractor furnishing to the City an unconditional release by the Contractor of all claims against the City arising by virtue of this Agreement related to those amounts. Disputed claims in stated amounts may be specifically excluded by Contractor from the operation of any release. No payment, final or otherwise, shall operate to release the Contractor or its sureties from obligations arising under this Agreement or the bonds and warranties furnished hereunder. No payment shall be construed as an acceptance of any of the Work or of defective or improper materials.

III. BONDS

Within ten (10) calendar days of receiving the Notice of Award and prior to Contractor’s commencement of the Work, Contractor shall furnish to City, using the forms set forth in the Bid Documents, a Labor and Materials Payment Bond in an amount equal to on e hundred percent (100%) of the Contract Price, and a Performance Bond in an amount equal to one hundred percent (100%) of the Contract Price, said bonds to be in conformance with the Contract Documents, including but not limited to, the General Specificat ions and Subsection 2.2.2 of the Special Provisions.

477
IV. INDEMNITY

Contractor shall defend (with counsel of City’s choosing), indemnify and hold the City, its respective elected and appointed boards, officials, officers, agents, employees, representatives and volunteers (individually and collectively referred to hereinaft er as “Indemnitees”) free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, to the extent arising out of or incident to any acts, omissions or willful misconduct of Contractor, its officials, officers, employees, agents, consultants and contractors arising out of or in connection with the perf ormance of the Work or this Agreement, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney fees and other related costs and expenses. Contractor shall defend, at Contractor’s own cost, expense and risk, with counsel of City’s choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against Indemnitees. To the extent of its liability, Contractor shall p ay and satisfy any judgment, award or decree that may be rendered against Indemnitees in any such suit, action or other legal proceeding.

Contractor shall reimburse Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by California Civil Code Section 2782.

This obligation to indemnify and defend Indemnitees as set forth herein shall survive the termination of this Agreement and is in addition to any rights which City may have under the law. This indemnity is effective without reference to the existence or applicability of any insurance coverages which may have been required under this Agreement or any additional insured endorsements which may extend to City.

V. INSURANCE

Without limiting Contractor’s indemnification of Indemnitees as set forth in Section IV of this Agreement, Contractor shall obtain, provide and maintain, at its own expense, the types and amounts of insurance described in Subsection 2.7.2 of the Special Provisions of the Contract Documents. Such insurance shall be in force prior to Contractor commencing any Work under this Agreement and shall remain in force for the duration of this Agreement and for any other such period as may be required herein. Contractor shall provide proof of the required insurance coverage and the endorsements specified in Subsection 2.7.2 of the Special Provisions within ten (10) calendar days of receipt of the Notice of Award.

VI. INELIGIBLE SUBCONTRACTORS

In accordance with the provisions of Section 6109 of the California Public Contract Code, Contractor agrees that it shall not perform any work under this Agreement with a subcontractor who is ineligible to perform work on a public works contract pursuant t o Sections 1777.1 and 1777.7 of the California Labor Code. Contractor further acknowledges that any contract on a public works project entered into between a contractor and debarred subcontractor is void as a matter of law, and a debarred subcontractor m ay not receive any public money for performing work as a subcontractor on a public works 478
contract. Any public money that is paid or may have been paid to a debarred subcontractor by a Contractor for work performed on this Project shall be returned to the City. The Contractor shall be responsible for the payment of wages to workers of a debar red subcontractor who have been allowed to work on the Project.

VII. COMMENCEMENT OF WORK AND LIQUIDATED DAMAGES

The Contractor shall commence the Work required by this Agreement within ten (10) calendar days of the date specified in the Notice to Proceed from the City, and shall complete all Work as specified in the Contract Documents within SEVENT Y (70) CALENDAR DAYS from the date in said Notice.

City and Contractor have discussed the provisions of Government Code Section 53069.85 and the damages that may be incurred by City if the Work is not completed within the time specified in this Agreement. The City and Contractor hereby represent that at the time of signing this Agreement, it is impracticable and extremely difficult to fix the actual damage which will be incurred by City if the Work is not completed within the number of working days allowed. Accordingly, City and Contractor agree that the sum of $500.00 per calendar day is a reasonable sum to assess as Liquidated Damages to City by reason of the failure of Contractor to complete the Work within the time specified.

VIII. CERTIFICATION UNDER LABOR CODE SECTION 1861

By signing this Agreement, Contractor makes the following certification required by Section 1861 of the California Labor Code:

“I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of any Work under this Agreement.”

IX. APPRENTICES
The Contractor acknowledges that, in accordance with Section 1777.5 of the State Labor Code, he/she will be held responsible for compliance with the provisions of this Section for all apprenticeable occupations.

X. SUBSTITUTION OF SUBCONTRACTORS

The Contractor hereby agrees to reimburse the City for costs incurred by the City in the substitution of subcontractors. Where a hearing is held pursuant to the provisions of Section 4100 et seq. of the Public Contract Code by the City or a duly appointed hearing officer, the Clerk of the City of Lynwood shall prepare and certify a statement of all costs incurred by the City for investigation and conduct of the hearing, including the costs of any hearing officer and shorthand reporter appointed.

The statement shall then be sent to the Contractor, who shall reimburse the City for such costs. If not paid separately, such reimbursement may be deducted from any money due and owing to the Contractor prior to the City’s acceptance of the Project. 479

XI. LICENSES

Contractor acknowledges and agrees that Contractor must have all appropriate contractor's licenses. Contractor further warrants and represents that he/she/they has/have the appropriate contractor's license to pursue the work hereunder. Contractor's failure to have or maintain all appropriate licenses during the entire term of this Agreement shall be cause for the immediate and summary termination of this Agreement by City. Contractor shall be liable for all City's costs incurred to complete the Work under this Agreement in the event of such termination.

XII. EMPLOYMENT DISCRIMINATION PROHIBITED

Pursuant to California Labor Code Section 1735 and other applicable provisions of law, the Contractor and its subcontractors shall not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, political affiliation or sexual orientation in the performance of Work under this Agreement. The Contractor will take affirmative action to insure that employees are treated during employment or training without regard to their of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, political affiliation or sexual orientation.

XIII. PREVAILING WAGES

The Contractor is aware of the requirements of Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Since the work covered by this Agreement involves an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total c ompensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws as set forth in the foregoing statutes and in the Special Provisions of the Contract Documents.

XIV. AUTHORITY TO EXECUTE

The person or persons executing this Agreement on behalf of Contractor warrants and represents he/she/they has/have the authority to execute this Agreement on behalf of his/her/their corporation, partnership, or business entity and warrants and represents that he/she/they has/have the authority to bind Contractor to the performance of its obligations hereunder.

480
XV. ASSIGNMENT; GOVERNING LAW

This Agreement may not be assigned by Contractor, in whole or in part, without the prior written consent of the City. This Agreement and any dispute arising hereunder shall be governed by the law of the state of California.

XVI. NOTICES

Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during Contractor’s regular business hours or by facsimile before or during Contractor’s regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses set forth below, or to such other addresses as the Parties may, from time to time, designate in writing pursuant to the provisions of this Section.

City Contractor
City of Lynwood _______________________________
Attn: City Engineer Attn: ___________________________ 11750 Alameda Street _______________________________
Lynwood, CA 90262 _______________________________
Fax No. (310) 635-0493 Fax No.________________________

XVII. ATTORNEYS FEES

Should either Party bring any action to protect or enforce its rights under this Agreement or the Contract Documents, the prevailing party in such action shall be entitled to recover, in addition to all other relief, its reasonable attorney’s fees and costs.

XVIII. WARRANTY

All Work shall be warranted by Contractor against defective workmanship and materials for a period of one (1) year form the date the Work is accepted as complete by the Lynwood City Council. The contractor shall replace or repair any such defective work i n a manner satisfactory to Engineer, following notice from Engineer specifying the work to be done and the time in which replacement or repair shall be completed. If Contractor fails to make such replacement or repair within the time specified in the noti ce, the City may perform the needed repairs and Contractor’s sureties shall be liable for the cost thereof.

XIX. ENTIRE AGREEMENT, WAIVER AND MODIFICATION

This Agreement contains the completely final, entire, and exclusive agreement between the Parties with respect to the subject matter hereof, and no waiver, alteration, or modification of any of the provisions hereof or rights to act hereunder shall be binding unless made in writing s igned by both Parties. Any attempted modification, amendment, or alteration in violation hereof shall be void.

481
IN WITNESS WHEREOF , each of the Parties hereto has caused the Agreement to be executed in its name on its behalf by a duly authorized officer as of this day and year first above written.

CITY OF LYNWOOD CONTRACTOR

____________________________

LEGAL NAME OF FIRM

By: _____________________________ By:__________________________ Jose Luis Solache Signature of Chairman of Board, Mayor President, or Vice President

Attest:
_____________________________
(Typed/Printed Name)

By: ____________________________ _____________________________ Maria Quiñónez (Title)
City Clerk
By:___________________________
Signature of Secretary, Assistant
Approved as to Form: Secretary, CFO, or Assistant Treasurer

By: ____________________________ ______________________________ Noel Tapia (Typed/Printed Name)
City Attorney
______________________________
(Title)

[NOTARY REQUIRED FOR SIGNATURE(S) OF CONTRACTOR]

482

1.4.2 CONTRACT PERFORMANCE BOND
(CALIFORNIA PUBLIC WORKS)

KNOW ALL MEN BY THESE PRESENTS:

THAT WHEREAS, the City of Lynwood (referred to hereinafter as "City") has entered into an Agreement dated July 16
th, 20 24 (referred to hereinafter as the “Agreement”) with DeARK E&C Inc. (hereinafter designated as “Contractor” or "Principal"), for construction of, LYNWOOD PARK TENNIS COURT RESURFACING PROJECT (CIP PROJECT NO. 4011.68.121) (hereafter referred to as the “Project”).

WHEREAS, the Work to be performed by the Contractor is more particularly set forth in the Agreement for the Project, the terms and conditions of which, including those set forth in the Contract Documents incorporated as component parts the of Agreement, are expressly incorporated herein by this reference; and

WHEREAS, the Contractor is required by the Agreement to perform the terms thereof and to provide a bond both for the performance and guaranty thereof.

NOW, THEREFORE, we, , the undersigned Contractor, as Principal, and , a corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto City in the penal sum of SIX HUNDRED SEVENTY-FIVE THOUSAND NINE HUNDRED DOLLARS ($675,900), lawful money of the United States, said sum being not less than 100 percent of the total amount payable by the City under the terms of the Agreement, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the undertakings, terms, covenants, conditions and agreements set forth in the Agreement and any alteration thereof made as therein provided, on his/her or its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill the one-year guarantee of all materials and workmanship; and indemnify and save harmless the City, its officers, officials, employees, authorized agents and volunteers, as stipulated in the Agreement, then this obli gation shall become null and void; otherwise it shall be and remain in full force and effect. In the event suit is brought on this bond, said Surety will pay to City a reasonable attorney's fee to be fixed by the Court. 483

As a condition precedent to the satisfactory completion of the Agreement, unless otherwise provided for in the Agreement, the above obligation shall hold good for a period of one (1) year after the acceptance of the Work by City, during which time if Contr actor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship.

The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.

Whenever Contractor shall be, and is declared by the City to be, in default under the Agreement, the Surety shall remedy the default pursuant to the Agreement, or shall promptly, at the City’s option:

(1) Take over and complete the Project in accordance with all terms and conditions in the Agreement; or

(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as Work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Agreement and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

(3) Permit the City to complete the Project in any manner consistent with California law and make available as Work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Agreement and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement, or to the Project or to the Work to be performed thereunder, or the Specifications accompanying the same, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement, or to the Project, or to the Work or to the Specifications. Said Suret y also hereby waives the provisions of sections 2819 and 2845 of the California Civil Code.
484

No final settlement between the City and the Contractor shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.

IN WITNESS WHEREOF, the above -bounden parties have executed this instrument this _____ day of _______________, ________, the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body.

PRINCIPAL:
(seal)
_______________________________

By ____________________________

SURETY:
(seal)
_______________________________

By ____________________________
Attorney-in-Fact

The rate of premium on this bond is ____ per thousand. The total amount of premium charged, $_______________. (These blanks must be filled in by corporate surety.)

IMPORTANT: Surety companies executing Bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the Work or Project is financed, in whole or in part, with federal grant or loan funds, must also appear on the Treasury Department's most current list (Circular 570 as amended). Notary acknowledgements for Principal and Surety signatures and Power of Attorney for Surety must be attached. THIS IS A REQUIRED FORM.

Any claims under this bond may be addressed to:

(Name and Address of Surety) (Name and Address of Agent/Representative in California if different)
__________________________________ ___________________________________________________ _________________________________ ___________________________________________________ (Telephone Number of Surety/Agent ___________________________________________________ Or Representative in California
485

STATE OF CALIFORNIA )
) ss.

COUNTY OF _______________ )

On this _____ day of _______________, in the year _____, before me, __________________________, a Notary Public in and for said state, personally appeared , known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument as the Attorney-in-Fact of the (Surety) and acknowledged to me that he/she subscribed the name of the
(Surety) thereto and his/her own name as Attorney-in-Fact.

_____________________________________
Signature of Notary Public in and for said State

(SEAL)

My commission expires on: _____________

NOTE: A copy of the power of attorney to local representatives of the bonding company must be attached hereto.

CERTIFICATE AS TO CORPORATE PRINCIPAL

I, _______________________________________, certify that I am the ________________________________ Secretary of the corporation named as Principal to the within bond; that _________________ _________________________ who signed the said bond on behalf of the principal was then ___________________________ of said corporation; that I know his/her signature, and his/her signature thereto is genuine; and that said bond was duly signed, sealed and attested for and in behalf of said Corporation by authority of its governing board.

_______________________________
Signature of Corporate Principal

486

1.4.3 CONTRACT PAYMENT BOND
(CALIFORNIA PUBLIC WORKS)

KNOW ALL MEN BY THESE PRESENTS:

THAT WHEREAS, the City of Lynwood, (referred to hereinafter as "City") has entered into an agreement dated July 16
th, 2024 (referred to hereinafter as the “Agreement”) with DeARK E&C Inc. (hereinafter designated as the "Contractor" or “Principal”), for LYNWOOD PARK TENNIS COURT RESURFACING PROJECT (CIP PROJECT NO. 4011.68.121).

WHEREAS, Contractor is required to furnish a bond in connection with the Agreement, and pursuant to Section 3247 of the California Civil Code.

SIX HUNDRED SEVENTY-FIVE THOUSAND NINE HUNDRED DOLLARS ($675,900), lawful money of the United States, said sum being not less than 100 percent of the total amount payable by City under the terms of the Agreement, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if said Contractor, his/her or its heirs, executors, administrators, successors or assigns, or subcontractors, shall fail to pay for any materials, provisions, provender or other supplies, items, implements or machinery used in, upon, for or about the performance of the Work required by the Agreement; or fails to pay (1) any of the persons named in Civil Code Section 3181, (2) amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Agreement, or (3) for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to the work and labor provided pursuant to the Agreement, said Surety will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In the event suit is brought upon this bond, said Surety will pay to City a reasonable attorney's fee to be fixed by the Court. In addition to the provisions hereinabove, it is agreed that this bond will inure to the benefit of any and all persons, companies and corporations entitled to serve stop notices under Section 3181 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or to the Work to be performed thereunder or the Specifications accompanying the same; shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the Work or to the Specifications. Said Surety also hereby waives the provisions of sections 2819 and 2845 of the California Civil Code.
487

No final settlement between the City and the Contractor hereunder shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.

IN WITNESS WHEREOF, the above-bounded parties have executed this instrument this _____ day of ____________, _____, the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body.

PRINCIPAL:
(seal)
_______________________________

By _____________________________

SURETY:
(seal)
_______________________________

By _____________________________
Attorney-in-Fact

Any claims under this bond may be addressed to:

(Name and Address of Surety) (Name and Address of Agent/Representative in California if different) ________________________________ ___________________________________________________________ ___________________________________ ___________________________________________________________________ __________________________________ _________________________________________________________________ (Telephone Number of Surety/Agent _________________________________________________________________ or Representative in California)

488

STATE OF CALIFORNIA )
) ss.

COUNTY OF _______________ )

_____________________________________
Signature of Notary Public in and for said State

(SEAL)

My commission expires on: _____________

NOTE: A copy of the power of attorney to local representatives of the bonding company must be attached hereto.

CERTIFICATE AS TO CORPORATE PRINCIPAL

_______________________________
Signature of Corporate Principal

(CORPORATE SEAL)
489

1.4.4 CERTIFICATES / PROOF OF INSURANCE

AND ENDORSEMENTS

The Contractor shall not commence any of the Work or begin any performance under the Agreement until he/she obtains, at his/her own and sole cost and expense, all required insurance as stipulated by the City. The required insurance shall be provided by the Contractor in conformance with the requirements of Subsection 2.7.2 of the Spec ial Provisions and may include the following:

• Workers' Compensation Insurance
• Commercial General Liability and Business Automobile Liability Insurance • Course of Construction or Builder’s Risk Insurance
• Flood Insurance

The insurance company or companies utilized by the Contractor shall be authorized and admitted to transact business in the State of California and to issue policies in the amounts required pursuant to the provisions of Subsection 2.7.2 of the Special Provisions. All insurance required shall be placed with insurers with a current A.M. Best's rating of no less than A:VII, and shall contain the endorsements specified in Subsection

2.7.2. Within ten (10) calendar days after receipt of the Notice of Award, Contractor shall furnish to the City for approval as to sufficiency and form, certificates of insurance and original endorsements evidencing the required coverage set forth in Subsection 2.7.2 of the Special Provisions. Endorsements and certificates are to be signed by a person authorized by the insurer to bind coverage on the insurer’s behalf. If the insurance called for is provided by more than one company, a separate certificate and the required endorsements shall be provided by each company.

City reserves the right to request complete, certified copies of all required insurance policies and endorsements at any time.

Failure to provide City with the required insurance coverage, proof of insurance and/or endorsements within ten (10) calendar days of receipt of the Notice of Award, may result in withdrawal of award and forfeiture of the Bidder's Bid Security.

490

ADDENDUM

By executing this Addendum, Contractor acknowledges and agrees that the work performed pursuant to the above referenced Agreement is subjected to all applicable provisions.

Payment of Minimum Compensation to Employees. Contractor shall be obligated to pay not less than the General Prevailing Wages Rate as required by applicable law.

A. Prevailing Wage Requirements. California Labor Code requires the payment of not less than the general prevailing rate of per diem wages and rates for holiday and overtime and adherence to all labor standards and regulations. The General Prevailing Wages Rates may be adjusted throughout the term of this Agreement.

Notwithstanding any other provision of this Agreement, Contractor shall not be entitled to any adjustment in compensation rates in the event there are adjustments to the General Prevailing Wages Rates.

B. Reports. Contractor shall not perform on site work on this contract until labor compliance documents are filed. Contractor agrees to cooperate with the City to fulfill its notifications requirement to the DIR, as required by DIR’s PWC-100 form or any other required form, and Contractor agrees to provide to the City the information required by the DIR, as generally set forth in Labor Code Section 1773.3. By signing this form, Contractor, and all of its subcontractors, represents that it has registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions under Labor Code section 1771.1(a)] and paid the annual fee due to the DIR, unless the Contractor meets an exception recognized by the DIR or by the law.

C. Furnishing of Electronic Certified Payroll Records to Labor Commissioner.

Contractor and subcontractor agree to furnish the required electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement), in the manner and under the time frame required by law.

D. Audit Rights. All records or documents required to be kept pursuant to this Agreement to verify compliance with the Wage Requirement shall be made available for audit at no cost to City, at any time during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such records or documents shall be provided to City for audit at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records or documents shall be available at CONTRACTOR’s address indicated for receipt of notices in this Contract.

491

E. Enforcement.

1. General. CONTRACTOR acknowledges it has read and understands that, pursuant to the terms and conditions of this Agreement, it is required to comply with the Wage Requirement and to submit certain documentation to the City establishing its compliance with such requirement. (“Documentation Provision.”) CONTRACTOR further acknowledges the City has determined that the Wage Requirement promotes each of the following (collectively “Goals”):
a. It protects public job opportunities and stimulates the City’s economy by reducing the incentive to recruit and pay a substandard wage to labor from distant, cheap-labor areas.
b. It benefits the public through the superior efficiency of well-paid employees.
c. It increases competition by promoting a more level playing field among contractors with regard to the wages paid to workers.

2. CONTRACTOS’s Breach of Prevailing Wage/Living Wage Provisions.

WITHOLDING OF PAYMENT: CONTRACTOR agrees that the
Documentation Provision is critical to the City’s ability to monitor CONTRACTOR’s compliance with the City’s public wage obligations.

CONTRACTORS further agrees its breach of the Documentation Provision or general public wage obligations results in the need for additional enforcement action to verify compliance with this Addendum. In light of the critical importance of the Documentation Provision, the City and CONTRACTOR agree that CONTRACTOR’s compliance with this Addendum is an express condition of City’s obligation to make each payment due to the CONTRACTOR pursuant to this Agreement. THE CITY IS NOT OBLIGATED

TO MAKE ANY PAYMENT DUE THE CONTRACTOR UNTIL

CONTRACTOR HAS PERFORMED ALL OF ITS OBLIGATIONS UNDER
THESE PROVISIONS. THIS PROVISION MEANS THAT CITY CAN

WITHOLD ALL OR PART OF A PAYMENT TO CONTRACTOR UNTIL ALL REQUIRED DOCUMENTATION IS SUBMITTED. Any payment by the City despite CONTRACTOR’s failure to fully perform its obligations under these provisions shall not be deemed to be a waiver of any other term or condition contained in this Agreement or a waiver of the right to withhold payment for any subsequent breach of this Documentation Provision or public wage obligations of the Contractor and the City.

492
City of Lynwood, CA
Court
Lynnwood Tennis
Design and Build Services for
Deark E&C Inc.
493

1335 W. Valencia Dr. Ste P , Fullerton, CA 92833
License: 1059536

Design and Build for Lynwood Park Tennis Courts.

Dear Andres De La Cruz,
The City of Lynwood is considering the renovation of existing tennis court surface due to extensive damage and concrete upheaval. Given the condition, we believe that repairing it might only offer a short-term solution, necessitating further repairs within 1-2 years. Thus, we are contemplating the construction of a new tennis court facility, and our proposal is crafted under this assumption.

Deark E&C Inc. is grateful for the chance to present a proposal for the design and build services of the Lynwood Park Tennis Courts. With seven years of experience specializing in park renovation and construction, we have a proven track record of delivering new tennis courts and revitalizing recreational areas, including playgrounds and splash pads. Our commitment to excellence has earned us a reputation for reliability and quality within the industry.

We are enthusiastic about the opportunity to collaborate with the City of Lynwood in creating modern tennis courts that cater to the needs of the community. Our team is proficient in every stage of park development, from initial site assessment and community engagement to concept design, budgeting, final construction documentation, and execution.

In our role as the Prime Design Consultant, we ensure a streamlined process with a single point of contact for the duration of the project. Leveraging our strong partnerships with local subconsultants, we guarantee comprehensive management of all project facets, including civil and electrical engineering. Our team's cohesive collaboration, honed over multiple projects, positions us to deliver outstanding results for the Lynwood Park Tennis Courts.

Enclosed, you will find detailed information about our team, past project accomplishments, and our approach to design. We are eager for the opportunity to develop tennis courts that will elevate Lynwood's recreational offerings and become a beloved community asset.

Sincerely,

494

PRICE PROPOSAL

LYNWOOD PARK TENNIS
COURT IMPROVEMENT_

CITY OF LYNWOOD, CA
MAY 24, 2024
DEARK E&C TO PROVIDE:
• Remove existing concrete on tennis court
• Install new 4” reinforced concrete for tennis court with 2” sand and plastic barrier • Sport Master acrylic sport surfacing
• 12-8’ wide bleachers and Nets & Posts
• Replace wood board for hand ball court
DEARK E&C DIR Number: 1000579126 | License Number: 1059536 PRICE:

Proposal total amount - $675,900 (50 working Days)
(Detail break down at appendix A)
DEARK E&C SCOPE BOUNDARY:

Project area
495
EXCLUSIONS:
• Permitting
• Construction fencing and site security
• Aggregate base under new concrete slab
• Drainage system
• Tennis court fencing
• Paving outside of tennis court
• 3rd party testing/inspections
• Any work not expressly described in Deark’s scope of work TERMS & CONDITIONS:

The following terms are expressly part of this proposal and any subsequent agreement between Client and Deark similarly shall incorporate these terms. In the event that no further contract is entered into, the terms set forth in the proposal shall constitute the entire agreement between the parties. Client, by incorporating this proposal or otherwise listing Deark, agrees to these terms and to not to seek any substitution on the grounds that Deark will not consent to altering these terms in a subsequent agreement.
• Acceptance of the work shall be commercially reasonable and expeditious • Failure to object to work within a reasonable time shall constitute deemed acceptance • Deark shall have approval rights as to any initial project schedule, and all subsequent schedule changes • Deark shall accept no risk of loss outside of its direct control • All discretion attributed to Client in any contract shall be subject to commercial reasonableness standard • Deark shall not indemnify Client for losses not proximately and solely caused by Deark • Deark must approve any material increases in scope in writing including agreeing to an equitable adjustment of contract price and time changes in scope in writing
• All modifications, waivers, alterations to be charged against Deark must be written and signed by Deark’s authorized representative
• No rights of setoff exist, including any purported back charges, and any request for setoff or back charge will be considered a modification that is only valid if in accepted in writing by Deark’s authorized representative prior to incurrence of any expense or liability
• Any increase in the price of raw materials anticipated to be used in Deark’s scope greater than ten percent (10%) occurring after execution of this proposal shall constitute a material changed condition necessitating an equitable adjustment to the contract price
• The price contained in this proposal is valid for thirty days and may be accepted by issuance of a notice to proceed or any similar instruction whereby Client indicates desire to commence project. The price is further conditioned upon Client’s delivery of all items outside Deark’s scope of work upon which Deark’s work may be predicated. • Standard Payment Terms – 20% upon mobilization, 40% upon 50% completion of scope of work, 35% upon 100% completion of scope of work, 5% within 30 days of completion of scope of work • Client shall pay invoices upon receipt. Interest on amounts unpaid after thirty days shall accrue at 1% interest of the cumulative outstanding balance per month (12% annual rate), compounded monthly. Client agrees that all work described in an invoice that is not objected to in a writing within five days of receipt of the invoice shall be deemed to be final and binding upon the Parties as to the amounts due, the adequacy of Deark’s performance, and the value of the services provided to Client. Any written objections shall specify the claimed defects sufficiently to allow Deark’s prompt and effective correction. • Deark shall have the right to cure any alleged default within a reasonable time • Client acknowledges that Deark is not party to any organized labor agreements. Client agrees that Deark will not be responsible or liable for any issues, injuries or damages, relating to labor peace, strikes, picketing or otherwise, regardless as to cause. Client agrees that delays related to labor issues shall constitute a contractual delay and entitle Deark to additional time to perform for the length of the delay, and compensation for any additional costs 496

incurred. These terms are material conditions to Deark’s willingness to provide a proposal to Client. • In the event that other entities affect the site conditions adversely or impede the progress of the work, the Client shall be responsible for any additional costs
• In the event the Client is responsible for rough grading or other site preparation, Client shall provide proof of correct grades / site preparation
prior to Deark mobilizing. In the event that the grades / elevations are incorrect, Client will be responsible for demobilization / remobilization costs, and any additional costs incurred. The schedule will be updated according to Deark ‘s prior professional commitments, and completion date shall be automatically extended to reflect Deark’s updated schedule.
• Any liability of Deark which relates to the sale, manufacture, delivery, resale, installation or use of any goods sold by or furnished by Deark, whether arising out of contract, negligence, strict tort, under any warranty or otherwise, shall be limited to Deark’s choice of the following: the repair of the goods; the replacement of the goods; the cancellation of the contract, return of the goods in question to Deark, and • Deark’s refund of the purchase price
• In no event shall Deark’s liability exceed the price of the specific goods upon which the liability is based • In addition, Deark shall not, under any circumstances, be responsible for special, consequential, or incidental damages such as, but not limited to, damage to or loss of other property; loss of profit, revenue or reputation; loss of capital; loss of purchased or replaced goods; or claims for delays, back charges, or loss of use • Deark reserves the right to makes any corrections as necessary to typographic errors • In the event of any action, suit, arbitration, or other proceeding of any nature is brought in connection with the payment terms related to these Terms and Conditions, any related agreement, or Deark’s provision of goods, services, products, or to recover any of Deark’s property (“Dispute”), the prevailing party shall be entitled to recover its reasonable attorney’s fees, expert-witness fees, other litigation costs and fees (e.g., deposition costs, trial preparation costs, etc.), and other costs and expenses of suit, judgment or award. Any Dispute including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Los Angeles, California, before one arbitrator. At the option of the first to commence an arbitration, the arbitration shall be administered either by the American Arbitration Association (AAA) pursuant to its Commercial Rules or by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from se eking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The arbitrator shall, in the Award, allocate costs, reasonable attorney’s fees, expert- witness fees, other litigation fees and expenses including the costs of arbitration to the prevailing party in accordance with the Attorney’s Fees provision. Judgment on any arbitration award may be entered by any court of competent jurisdiction.
• Deark shall, at its expense, procure and maintain insurance with carriers acceptable to Client, and in amounts set forth below. Deark shall provide certificates of insurance to Client upon request. The certificates of insurance shall provide that there will be no cancellation nor reduction of coverage without thirty (30) days prior written notice to Client. Required coverage amounts:
o Workers Compensation and Employers Liability insurance in the amount of $1,000,000; o Automobile Coverage for all Owned, Non-Owned and Hired vehicles in the amount of $1,000,000 per occurrence, $1,000,000 aggregate;
o Comprehensive General Liability or Commercial General Liability insurance covering all operations or job specific in the amount of $1,000,000 per occurrence, $2,000,000 aggregate; o Excess Liability/ Umbrella Insurance in the amount of $5,000,000;

• Deark offers a 12-Month Materials and Workmanship Warranty effective upon the date of substantial completion of the project or first use by Client
• These Terms and Conditions are necessarily incorporated by reference into any other related agreement; Client agrees that California law shall govern the relationship between the Client and Deark to the fullest extent of applicable law including enforcement of any part of these Terms and Conditions or any other related agreement between or among Client and Deark.
• Each Term and/or Condition herein is severable in the event one or more provisions are unenforceable for any reason

497

PROPOSAL

LYNWOOD PARK TENNIS COURT
RENOVATION_ CITY OF LYNWOOD, CA
PROPOSAL VALID FOR 30 DAYS FROM MAY 24, 2024

I AUTHORIZE THE PURCHASE OF THE PRODUCTS AND SERVICES FROM DEARK E&C

INCLUDED IN THIS PROPOSAL ACCORDING TO THE SPECIFIED TERMS AND CONDITIONS. THIS PROPOSAL SHALL BECOME THE BINDING AGREEMENT BETWEEN THE PARTIES.

CONTACT: CONTACT:

PHONE: PHONE:

EMAIL: EMAIL:

DEARK E&C REPRESENTATIVE: PURCHASE AUTHORIZED BY:

DATE: DATE:

Sean Lee
714-251-3777
[email protected]
5/24/2024
498

STANDARD TENNIS COURT DESIGN:

499

REFERENCES

PROJECTS

1. • Project Name: Foss Field Tennis Court Improvement on City of Perris • Project Description:
a. Remove (2) existing tennis courts and build (2) new tennis courts totaling approximately 15,000 sq ft. located at Foss Field Park
b. Total Contract Amount is $ 737,000
• Location: Foss Field Park on City of Perris
• Start Dates: May 2023
• End Dates: September 2023
• Owner: City of Perris

2. • Project Name: Mercado Park Water Re-Circulation Project on City of Perris • Project Description:
a. Installation of surge tank filtration system, rain diverter and uv sanitizer and landscape b. Total Contract Amount is $ 642,435
• Location: Mercado Park on City of Perris
• Start Dates: July 2023
• End Dates: February 2024
• Owner: City of Perris

3. • Project Name: Orange Blossom Trail Phase 3 on City of Redlands • Project Description:
a. Constructing approximately 1.3 miles of multi-use path b. Total Contract Amount is $ 782,396
• Location: Orange Blossom Trail between Alabama St and Tennessee St on City of Redlands • Start Dates: June 2022
• End Dates: February 2023
• Owner: City of Redlands

500

4. • Project Name: Whitaker Curb Appeal Project
• Project Description:
a. Installation of new school parking lots
b. Total Contract Amount is $ 1,012,000
• Location: Whitaker Elementary School on City of Buena Park • Start Dates: June 2022
• End Dates: March 2023
• Owner: Buena Park School District

5. • Project Name: Improvements to San Martin Park on City of Lakewood • Project Description:
a. Installation of new shelters, Tot Lot play equipment, landscape, irrigation.

Improvements of ADA parking
b. Total Contract Amount is $ 733,000.00
• Location: San Martin Park on City of Lakewood
• Start Dates: October 2021
• End Dates: August 2022
• Owner: City of Lakewood

6. • Project Name: Area 02 Craig Regional Park Manhole on City of Fullerton • Project Description:
a. Improvement of existing access to five OCSD manholes.

Access improvements include removing trees, existing asphalt, grading and installing a retaining wall, installing wooden fencing, and structural grass pavers. b. Total Contract Amount is $ 427,400.00
• Location: Craig Regional Park on City of City of Fullerton • Start Dates: September 2021
• End Dates: April 2022
• Owner: Orange County Sanitation District

501

APPENDIX - A
502

DEARK E&C, INC
1335 W. Valencia Dr. Ste P, Fullerton, CA 92833
Tel:714-519-3484
Construct Four New Tennis Courts at Lynwood Park
Attn: Andres De La Cruz
Date: 5/24/24
Ref:

Bellows is our quantity take off and total amount for this project.

Item Description Quantity Unit Cost
1 Construction of 4 EA New Tennis Courts at Lynwood Park Mobilization 1 LS $ 20,000.00
Demolition 1 LS $ 129,600.00
Earthwork and sub grading 1 LS $ 28,800.00
Installation of 4 inch concrete slab with #4 rebar with 1 LS $ 379,400.00 2 inch sand and 12mm vinyl vapor barrier
Installation of nets and poles 4 EA $ 10,000.00
Installation of bench 12 EA $ 9,600.00
Installation of flexipave on concrete surface 1 LS $ 72,000.00 Repair board 1 LS $ 25,000.00
Demobilization 1 LS $ 1,500.00
675,900.00$
Inclusions
‐ Provided all labor, materials, equipment
‐ Prevailing wage
Exclusions
‐ Inspection fees or scheduling, testing, permits or engineering other than inclusion listed ‐ Any hazard material if it has
‐ Any work for handball court
‐ Engineer cost
Owner Signature: __________________________________ Date:

Contractor Signature: __________________________________ Date:

Total Amount:
5/24/2024

PROPOSAL
Lic.: 1059536
503
1 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONTRACT TO DEARK E&C INC. FOR THE DESIGN-BUILD SERVICES OF THE LYNWOOD PARK TENNIS COURT RESURFACING PROJECT (4011.68.121);

AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND AUTHORIZING

THE CITY MANAGER TO APPROVE AGREEMENT AMENDMENTS RELATED TO THE

PROJECT
WHEREAS, on April 26, 2023, Staff received two proposals for the design-build of the Lynwood Park Tennis Courts and Storage Facility
WHEREAS, on August 15, 2023, the City Council rejected all submitted propoals as the total construction cost was estimated at $2,400,000 and the project budget was $1,150,000; and
WHEREAS, Staff determined that the tennis courts at Lynwood Park are extremely damaged and in urgent need of repairs; and
WHEREAS, on April 24, 2024, staff uploaded a request for proposal (RFP) for design-build services for the Lynwood Park tennis court resurfacing project; and WHEREAS, the city received one proposal from Deark E & C Inc. in the amount of $675,900.; and
WHEREAS, Staff reviewed the proposal and feel confident with the proposed scope of work and pricing; and
WHEREAS, it is estimated that the project will take seventy (70) calendar days to complete the work set forth in the proposal; and
WHEREAS, the work will include but is not limited to removal and replacement of existing concrete on tennis courts, installation of acrylic sport resurfacing bleachers, nets and posts and replacement of the board for the hand ball court; and WHEREAS, the total estimated project cost is $800,000; and WHEREAS, the project has a Fiscal Year (FY) 25 budget of $800,000 and no additional appropriation is needed.

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 said recitals fully into this resolution as substantive findings.
504
2 Section 2. The City Council of the City of Lynwood authorizes the Mayor to execute the agreement between the City of Lynwood and Deark E&C Inc. in a form approved by the City Attorney in the amount of $675,900.

Section 3. The City Council of the City of Lynwood authorizes the City Manager under LMC 6-3.15(d) to exceed the specific dollar amounts or percentage limitations under LMC 6-3.15(a) and authorizes the City Manager to approve consultant, vendor agreements, modifications, change orders, or agreement amendments related to the Project up to the available Project Budget.

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

Section 5. This resolution shall take effect immediately upon its adoption.

Section 6. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect.

Signatures on next page
505
3 PASSED, APPROVED and ADOPTED this 16th day of July 2024.

Jose Luis Solache
Mayor
ATTEST:

Maria Quinonez
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

Noel Tapia Ernie Hernandez
City Attorney City Manager
Julian Lee
Director of Public Works
506
4 STATE OF CALIFORNIA )
)

COUNTY OF LOS ANGELES )
I, 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 regular meeting held on the 16th day of July 2024, 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 16th day of July 2024.

Maria Quinonez, City Clerk
507

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Julian Lee, Director of Public Works
SUBJECT:

PROJECT ACCEPTANCE

FOR THE LARGE ADVANCED METERING
INFRASTRUCTURE REPLACEMENT PROJECT FY 2022-2023
(4011.68.093)
Agenda Item # 8.5.

Recommendation:

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

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ACCEPTING THE LARGE ADVANCED METERING INFRASTRUCTURE REPLACEMENT FY 2022-2023 PROJECT (CIP 4011.68.093) AS COMPLETE; AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND THE RELEASE OF THE 5% RETENTION 35 DAYS AFTER THE ACCEPTANCE.” Background:

On December 14, 2021, the City Council awarded a contract to Aqua-Metric Sales Corporation to supply an Advanced Metering Infrastructure (AMI) data collection system and large AMI smart meters. The AMI project, initiated in 2018 as part of street rehabilitation projects, is a multi-phased effort to replace positive displacement read meters, which lose accuracy with age. The Large Advanced Metering Infrastructure Project (Project) includes installing water meters, meter antenna units (MXUs), and meter pit lids and frames as required.

On February 13, 2023, the Notice Inviting Bids for the project was advertised on the City’s web site (PlanetBids). The Bid opening took place in the PlanetBids platform on Thursday, March 16, 2023, at 10:00 am (PST).

Discussion and Analysis:

City Council City Council Regular Meeting 508
On May 16, 2023, the City awarded the contract to the lowest responsible bidder, RE Chaffee Construction, Inc. in the amount of $180,475.00. The Notice to Proceed was issued for construction to begin on October 9, 2023.

Scope of Work
The Project consisted of the following work: installing approximately four (4) 6-inch, twenty-six (26) 4-inch, and twenty-seven (27) 3-inch water meters, MXUs, and meter pit lids and frames as required.

Approved Budget
:

The original contract amount with RE Chaffee Construction, Inc. was $180,475.00 During the construction phase, Staff made a couple of adjustments in the field to accommodate the discrepancies in the working conditions of the project. There was one (1) change order executed in the amount of $4,027.09 to replace an additional 4-inch meter found at the Rosa Parks Transit Center on Martin Luther King Jr. Blvd. The new contract amount including change orders was $184,502.09.

In addition, $18,000 was used for the construction management/construction inspection services by Transtech Engineers Inc. and $9,425 for labor compliance monitoring and provided by Avant Garde Inc. Staff’s time in project management was $18,000 and City supplied vaults cost for this project was $30,000. The total cost of this project was $259,927.09 which is within the Fiscal Year (FY) 23 approved budget.

The table below is the revised construction budget and approved budget funding details.

Description
Amount
Construction Contract Amount
$180,475.00
One (1) Change Order
$4,027.09
City Supplied Vaults
$30,000.00
Construction Inspection
$18,000.00
Project Management
$18,000.00
Labor Compliance
$9,425.00
Total Construction Cost
$259,927.09

Construction and Labor Compliance review was completed on June 25, 2024, and the Project City Council City Council Regular Meeting 509
Large_AMI_Change_Orders.pdf
07-16-24 Acceptance for Large AMI Meter Installation (Resolution) - PWD.docx is now ready for acceptance by the City Council. Once accepted, Staff can record the Notice of Completion at the County Recorder’s Office. Staff will then release the 5% retention 35 days after the project acceptance.

Fiscal Impact:

The Large Advanced Metering Infrastructure Replacement Project FY 2022-2023 has an approved FY23 Budget of $1,093,000 from LUA 2020-A Revenue Bonds. No additional appropriation was needed to complete the project.

Coordinated With:

City Manager’s Office
Department of Finance and Administration Services
ATTACHMENTS:

Description
City Council City Council Regular Meeting 510
CONTRACT CHANGE ORDERS DESCRIPTION Total
Amount
CCO 01
Additional 4” Meter found at the Transit Center on Martin Luther King Jr Blvd, not listed on NIB. Meter changed out $4,027.09 Total CCO
Orignial Contract Amount $ 180,475.00
Contract Amount with Change Orders $ 184,502.09

ATTACHMENT A
LARGE ADVANCED METERING INFRASTRUCTURE REPLACEMENT PROJECT FY 2022-2023 511
RESOLUTION NO. XXXX-XXX

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

CALIFORNIA, ACCEPTING THE LARGE ADVANCED METER
INFRASTRUCTURE REPLACEMENT FY 2022-2023 PROJECT (CIP NO. 4011.68.093) AS COMPLETE; AUTHORIZING THE FILING OF THE

NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY
RECORDER’S OFFICE AND THE RELEASE OF THE 5% RETENTION 35 DAYS AFTER ACCEPTANCE.

WHEREAS, on February 13, 2023, the Notice Inviting Bids (NIB) was advertised on the City’s web site (PlanetBids);
WHEREAS, the Bid opening took place in the PlanetBids platform on Thursday, March 16, 2023, at 10:00 am (PST);
WHEREAS, on May 16, 2023, the City awarded the contract to the lowest responsible bidder RE Chaffee, Inc. in the amount of $180,475.00; WHEREAS, the project scope of work consisted of installing water meters, meter antenna units (MXUs), and meter pit lids and frames as required; WHEREAS, the construction of the Project started on October 9, 2023; WHEREAS, there were one (1) change orders issued and executed in the amount of $4,027.09;
WHEREAS, the total Construction and Labor Compliance review was completed on June 25, 2024, and all work was completed in accordance with the project plans and specifications;
WHEREAS, the total construction cost including project management, construction management, inspection, and labor compliance was $259,927.09; WHEREAS, the City’s adopted Fiscal Year (FY) 2023 budget for this project is $1,093,000.00 from LUA 2017-A Revenue Bonds (CIP project no. 4011.68.093); and WHEREAS, no additional appropriation is needed.

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 that the above recitals are true and correct and incorporated them herein by this reference.

Section 2. That the City Council of the City of Lynwood accepts the Large Advanced Meter Infrastructure Replacement FY 2022-2023 Project, CIP No. 4011.68.093 512
as complete in accordance with the contract documents.

Section 3. The City Council authorizes the Director of Public Works or his designee to process the recordation and filing of the Notice of Completion with the Los Angeles County Recorder’s Office.

Section 4. The City Council authorizes the release of the 5% retention 35 days after acceptance.

Section 5. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.

Section 6. This Resolution shall take effect immediately upon its adoption.

Section 7. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.

Signatures on next page
513
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lynwood, California, this 16th day of July 2024. ________________________________
José Luis Solache, Mayor
ATTEST:
________________________________
Maria Quiñonez,
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
________________________________ ________________________________ Noel Tapia, Ernie Hernandez,
City Attorney City Manager
________________________________
Julian Lee,
Director of Public Works
514

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )
I, Maria Quiňonez, 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 16th day of July 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:

_______________________ Date: ______________________ Maria Quiňonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )
I, Maria Qui ňonez, 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. 2024.000 on file in my office and that said Resolution was adopted on the date and by the vote therein stated dated this 16th day of July 2024.
_______________________ Date: ______________________
Maria Quiňonez,
City Clerk
515

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Ernie Hernandez, City Manager
SUBJECT:

APPROVAL OF CO-SPONSORSHIP AND PARTICIPATION WITH THE
2024 PERIOD EMPOWERMENT PARTY
Agenda Item # 8.6.

Recommendation:

Staff recommends the City Council support and co-sponsor the August 7, 2024, Period Empowerment Party held in the City of Lynwood by Mastering Hope Inc.

Background:

The Period Empowerment Party is sponsored by the AboutMyPeriod group. This group of women teachers, non profit directors and collaborators in 2022. Their vision is to help end period poverty and spread free education about menstruation to youth and beyond. The Period Empowerment Party continues those efforts. There have been three previous events in South Gate, Azusa and Boyle Heights. Lynwood is proposed to be the fourth annual.

Discussion and Analysis:

Fiscal Impact:

Cosponsorship financial impacts would be in the form of waiver of facility fees and related expenses.

Coordinated With:

City Council City Council Regular Meeting 516

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manger
PREPARED BY:

Gabriel Linares P.E., Community Development Director
SUBJECT:

APPROVAL OF AMENDED AND RESTATED DEVELOPMENT
AGREEMENT NO. 2019-03 BETWEEN THE CITY OF LYNWOOD AND

LDC CAPITAL HOLDINGS AND HIGHLINE LA, LLC
Agenda Item # 9.1.

Recommendation:

Staff recommends that the City Council Approve the Amended and Restated Development Agreement DA No. 2019-03.

Background:

General Lynwood Cannabis License Approval history

After California voters approved Proposition 64, titled "The Adult Use of Marijuana Act", on November 8, 2016, a State-level statutory scheme was set in place legalizing, controlling, and regulating commercial cannabis activity related to nonmedicinal cannabis for use by adults twenty-one (21) years of age and older. On June 27, 2017, storefront retail sale of nonmedical cannabis for use by adults twenty-one (21) years was also established effectively providing for a comprehensive regulatory framework for licensing, control, and taxation of commercial cannabis activity related to medicinal and nonmedicinal use in California.

Soon after the approval of Proposition 64 on December 20, 2016, the City Council of the City of Lynwood adopted Ordinance No. 1688 and two subsequent amendments (Ordinance Nos. 1700 and 1707) licensing and regulating all forms of commercial cannabis activity, except the storefront retail sale of medicinal and nonmedicinal cannabis. Amendments were instituted by Ordinance No. 1565-A to align and make consistent the City of Lynwood cannabis rules and State law.

City Council City Council Regular Meeting 517

The City of Lynwood approved 20 non-retail operators and memorialized these approvals by City Council-approved Development Agreements. The subject operators are one (1) of the 20 approved locations.

The subject proposed changes to DA 2019-03 are consistent and in-compliance with State law and the above-referenced city ordinances.

Discussion and Analysis:

At the April 16, 2019 Lynwood Council Meeting, the City Council entered into a Development Agreement with NMC Organization, Inc. for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for the property located at 10810-44 Alameda. The Development Agreement No. 2019-03 reflects ownership as NMC Organization, Inc.

On May 17, 2021, the City of Lynwood amended Development Agreement DA No. 2019-03.

The City Manager under the authorization granted in Ordinance 1565-A section 4-.34.7:

Transfer or Change in Ownership or Location, approved the inclusion of a additional licensees with legal or equitable interest. NMC Organization, Inc. and Highline LA, LLC.

On April 25, 2023 LDC Capital Holdings, LLC applied for an administrative change in ownership under section 4-34.7; The request would transfer NMC Organization Inc. ownership to LDC Capital Holdings, LLC. The Application was approved administratively by the City Manager after all background checks and live scan procedures were vetted by community development staff. On July 31, 2023 the city manager issued the Transfer or change of ownership decision letter for development agreements no 2019-03. Resulting in new ownership operators of
LDC Capital Holdings, LLC
and
Highline LA, LLC,
as allowed and
permitted per ordinance No. 1565 Title 34 of Chapter 4 of the Lynwood Municipal Code.

After the Ownership changes were processed and approved, the operators Highline LA, LLC, and LDC Capital Holdings, LLC submitted a applications to (1) Permit additional cannabis uses permitted under 4-34.6 (F) " Additional Uses" at the existing facilities. The operators also submitted a request to allow the (2) Changes and alterations to the approved building layout. consistent with Ordinance 1565-A section 4-34.8: Changing, Altering, or modifying Location.

Ordinance 1565-A, section 4-34.8 (C) allows the City Council, City Manager or its designee approval rights for the types of changes, alterations, or modifications described upon the filling of an application by the licensee and payment of applicable fees.

Given the multiple alteration request from the applicants and the additional cannabis uses requested, the City Manager and staff determined that proposed increase in uses and proposed changes warrant a review by City Council and City Attorney to correctly update, document and amend Development agreement 2019-03.

City Council City Council Regular Meeting 518
The following table summarizes the present ownership, the Applicant’s ownership name changes, present and new cannabis use types (operations), a breakdown of use type by square footage, and the total square footage space of both cannabis operators under DA 2019-03:

Table 1
:

Current
Licensees/Cannabis
Use Types
Proposed
Licensees/Cannabis Use Types/
Business
Name:

Percentage of
Ownership
Use Types
Business
Name:

Percentage of
Ownership
Use Types
Sq.Ft. by Use
Type
Total Square
Footage
NMC
Organization,
Inc.
50%
Distribution
LDC Capital
Holdings, LLC
50%
Manufacturing
Distribution
Delivery- Non-
Store Front
Retail
2,072
817
463
4,800*
Highline LA,
LLC
50%
Cultivation
(mainly
Nursery)
Highline LA,
LLC
50%
Cultivation
Total
Canopy
Micro-
Business
Cultivation
[Canopy area]

Distribution
non-store front
Retail
10,951
(6,144)
3,545
[2,165]

220
200
14,496*

* Gros floor area

The above table represents the proposed changes as described below.

The change in ownership was processed replacing NMC Organization Inc with LDC Capital Holdings, LLC as new owners. Ownership change was processed and approved administratively on July 31, 2023.

LDC Capital Holdings is proposing to increase the allowable uses to the maximum of three.

The proposed uses include Manufacturing, Distribution and Non-store front retail distribution in lieu of the single use of Distribution.

Highline LA LLC is proposing to increase the allowable uses to the maximum of three. The proposed uses include Cultivation with a canopy area of 6,144 sqft, Non-store front retail distribution and a Micro Business with a canopy area of 3,545 sqft.

The business are proposing alterations to the existing floor plan area distribution as represented in
Exhibit A”, wherein the uses and square footage amounts are summarized in the above
Table 1
.

City Council City Council Regular Meeting 519
NMC - DA 2019 - Executed.pdf
NMC and Highline - DA 2019 - Executed.pdf
Ord 1565-A.pdf
LCD Capital Holdings Floor Plan and Elevation_Updated.pdf DA 2019-03 amendment Exhibit A.

4.16.2024.pdf
Resolution Amended and Resated Development Agreement (Highliine).docx If the Amended and Restated Development Agreement is approved by the City Council, the owners are required to submittal plans of the proposed improvements to the Community Development Department for plan review and permit issuance for the proposed layouts. After approvals from all pertinent agencies and proper entitlements are obtained, the applicant may submit for an update business license and update the certificate of occupancy which are necessary prior to operation.

Both Highline and LDC have paid the appropriate application fees. Highline paid $15,000 for the additional uses application, LDC Cap Holdings LLC paid $15,000 for additional uses application, $7,500 for ownership change and $300 for live scan. The total fees collected $37,800 for the proposed changes to the site. The new uses and updated floor plan is anticipated to generate additional revenue as estimated below:

Processing one time cannabis application fees $37,800.

Annual fee cultivation: $83,090
manufacturing fee min: $20,000, or 2% of gross receipts Distribution fee 1.5% and 2.5% of gross receipts
Cost recovery: 10,000
The minimum projected annual revenue of $113,090.00

At the May 7th Council meeting, the Council requested that this item be routed to the finance committee for review of the language recommendation to the Development agreement. Staff met with the Finance Committee and City Attorneys on May 29th, 2024. The meeting was productive and resulted in two amendments to the development agreement. The first amendment included language to clarify section f. "Living Wages." and the second amendment included language to provide performance measures within a time frame of the amendments. Owners were agreeable to proposed amendments.

Fiscal Impact:

A positive General Fund impact;
Processing one time cannabis application fees $37,800 and an annual minimum revenue of $113,090.00.

Coordinated With:

Finance Committee
City Attorney
ATTACHMENTS:

Description
City Council City Council Regular Meeting 520
Transfer_or_Change_of_Ownership_DM.pdf
Amended and Restated Development Agreement - LDC Capital Holdings and Highline

6.27.24.docx
City Council City Council Regular Meeting 521
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584
ORDINANCE NO. 1565- A

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA
AMENDING CERTAIN PROVISIONS OF TITLE 34 OF CHAPTER 4 OF

THE LYNWOOD MUNICIPAL CODE
WHEREAS, Ordinance No. 1688, " An Ordinance of the Lynwood City Council Adding Title 34 to Chapter 4 Licensing and Business Regulations of the Lynwood Municipal Code Relating to the Licensing and Regulation of Cannabis Cultivation and Manufacturing- Related Businesses in the City of Lynwood, and Consideration of the Planning Commission' s Recommendation to Amend the Zoning Code to Allow Cultivation/ Manufacturing Commercial Cannabis Activity in the Manufacturing Zone of the City", was adopted by the Lynwood City Council on December 20, 2016; and WHEREAS, it is the desire of the City of Lynwood City Council to amend certain provisions of Title 34 of Chapter 4 of the Municipal Code; and WHEREAS, it is the desire of the City of Lynwood City Council to abide by and be consistent with State law, as mandated by legislation concerning the use of medical and non- medical, adult use recreational marijuana, enacted from 1996 to the present.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES ORDAIN AS FOLLOWS:

Section 1. Municipal Code Amendment.

TITLE 34
4- 34. 1: Purpose
A. The purpose of this article is to regulate all Commercial Cannabis Activity in the City of Lynwood, as defined in Section 26001 of the California Business and Professions 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 article 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, Division 10 of the California Business and Professions Code, commencing with section 26000, other applicable provisions of State Law in the Health and Safety Code and elsewhere, and any and all regulations adopted by the Bureau of Cannabis Control as well as any state agency or department with jurisdiction over Cannabis. These laws and regulations shall govern all Commercial Cannabis Activity that occurs within the jurisdiction of the City.
1 585
4- 34. 2: Definitions
Terms not defined herein shall have the same meanings set forth in the Medical and Adult Use Cannabis Regulation and Safety Act (" MAUCRSA") and any regulations promulgated pursuant thereto. In addition, the following terms shall be defined as follows:

A. " Applicant" shall have the same meaning as in Section 26001( c) of the California Business and Professions Code.

B. " Cannabis" shall have the same meaning as in Section 26001( f) of the California Business and Professions Code.

C. " City" means the City of Lynwood, California.

D. " City Manager" shall mean the City Manager of the City or a duly authorized designee.

E. " Code" means the Lynwood Municipal Code.

F. " Commercial Cannabis" shall include medical as well as adult use cannabis.

G. " Commercial Cannabis Activity" shall have the same meaning as in Section 26001( k) of the California Business and Professions Code.

H. " Commercial Cannabis Business" means any Person engaged in Commercial Cannabis Activity.

I. " Cultivation Site" shall have the same meaning as in Section 26001( m) of the California Business and Professions Code.

J. " Delivery" shall havethe samemeaningas in section26001(p) of the Businessand Professions Code.

K. " Distribution" shall have the same meaning as in section 26001( r) of the Business and Professions Code.

L. " DistributionSite" shall mean any building, structure, premises, or location that is used to distribute Cannabis or Cannabis related products.

M. " Enclosed Locked Structure," means a structure that: ( 1) does not allow for the visibility of the interior from the outside; ( 2) is secured with a lock; ( 3) is surrounded by a wall; and (4) is roofed. Enclosed Locked Structures may include accessory buildings. All Enclosed Locked Structures shall comply with the City building code, City fire code, and all other applicable laws.
2 586
N. " Good Cause" for purposes of refusing or denying an initial license under this chapter, for revoking a Permit, or for refusing or denying a Permit renewal or reinstatement, means:

1. The Applicant has not obtained approval by the City Council of a development agreement setting forth the general terms for the operation of a business under this Chapter or a Licensee breaches the terms of an applicable development agreement;

2. The Applicant or Licensee has violated any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicable local rules and regulations, or any special terms or conditions placed upon its State License, Local License, or Permit;

3. The Licensed Premises have been operated in a manner that adversely affects the public health, safety or welfare or the safety of the immediate neighborhood in which the establishment is located;

4. The Applicant or Licensee has knowingly made false statements, misrepresentations or material omissions on an application form, renewal form, or any other document submitted to the City;

5. The Applicant or Licensee' s criminal history does not indicate that the Applicant or Licensee is of Good Moral Character; or the Applicant or Licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made; except that, if the State Licensing Authority has issued a Local License to the Applicant or Licensee, the City shall not consider any criminal history of the Applicant or Licensee that was disclosed to or discovered by the State Licensing Authority prior to the issuance of the License and is confirmed by the Applicant. For any criminal history that was not disclosed to or discovered by the State Licensing Authority prior to the issuance of the License, or that arose after the issuance of the License, the City shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the Applicant or Licensee, and shall evaluate the suitability of the Applicant or Licensee to be issued a Permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the City shall consider the factors as set forth in Section 26057( b)( 4) of the California Business and Professions Code;

6. The Applicant or Licensee is employing or allowing to volunteer any Person whose criminal history indicates that Person is not of Good Moral Character;

7. The Applicant or Licensee fails to allow inspection of the security recordings, activity logs, or business records of the Licensed Premises by City officials; or

8. An Owner of the Applicant or Licensee is a Physician providing Written Documentation to qualified patients for medical Cannabis.

9. The Applicant or Licensee has had a license application denied, or a license revoked or suspended by the State of California.
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0. " Good Moral Character" means having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law. In determining Good Moral Character, the following standards shall apply:

1. A judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual' s lack of Good Moral Character. Such judgment may be used as evidence in the determination, and when so used the individual shall be notified and shall be permitted to rebut the evidence by showing that at the current time he or she has the ability to, and is likely to serve the public in a fair, honest and open manner, that he or she is rehabilitated, or that the substance of the former offense is not substantially related to the occupation or profession for which he or she seeks to be licensed.

2. Notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance, is not considered substantially related, and shall not be the sole ground for denial of a Local License, except that any of the following convictions shall be deemed substantially related and may be the sole grounds for denying a Local License or Permit:
a. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance; or
b. A felony conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or c. A felony conviction for drug trafficking with enhancements pursuant to Section 11370. 4 or 11379. 8 of the California Health and Safety Code. d. Conviction for any controlled substance felony subsequent to issuance of a Permit shall be grounds for revocation of a Permit or denial of the renewal of a Permit.

P. " 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 the City Council, and any rules adopted pursuant thereto, except that no storefront dispensary, as specified in Section 25- 200- 1 of the Lynwood Municipal Code, and no Cannabis retail sales, other than Delivery, shall be permitted within the City.

Q. " Licensee" means a Person who holds a Cannabis Permit issued pursuant to this chapter for one Licensed Premises.
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R. " Limited Access Area" means a building, room or other area that is part of the Licensed Premises where medical or adult use Cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other medical or adult use Cannabis businesses, under control of the Licensee, with limited access to only authorized personnel.

S. " Local License" means a business license granted by the City, pursuant to Chapter 4 of this code.

T. " Manufacturing Site" shall mean any building, structure, premises, or location that is used to manufacture Cannabis or Cannabis related products.

U. " Medical Cannabis" shall have the same meaning as the term " medicinal cannabis," as defined in Section 26001( ai) of the California Business and Professions Code.

V. " Medical and Adult Use Cannabis Regulation and Safety Act" or " MAUCRSA" means Division 10 of the California Business and Professions Code, including any future amendments.

W. " Outdoors" means any location within the City that is not within an Enclosed Locked Structure.

X. " Owner" shall have the same meaning as in Section 26001( al) of the California Business and Professions Code.

Y. " Person" shall have the same meaning as in Section 26001( an) of the California Business and Professions Code.

Z. " Permit" means authorization to conduct Commercial Cannabis Activity pursuant to this chapter, State law, and upon the issuance of an occupancy permit and business license by the City.

AA. Physician" shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the State of California.

BB. State Law( s)" shall mean and include California Health and Safety Code Section 11362. 5 ( Compassionate Use Act of 1996); California Health and Safety Code Sections 11362. 7 to 11362. 83 ( Medical Marijuana Program Act); the California Attorney General' s Guidelines for the Security and Non- Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such guidelines may be revised from time to time by action of the Attorney General; MAUCRSA, and all other applicable laws and regulations of the state of California.

CC. State License" shall have the same meaning as in Section 26001( a), ( y), and ( ae) of the California Business and Professions Code. 5 589
DD. State Licensing Authority" shall meanthe Bureau of Cannabis Control within the Department of Consumer Affairs, the Department of Public Health, or any other state agency responsible for the issuance, renewal, or reinstatement of a License issued pursuant to Division 10 of the California Business and Professions Code or any state agency authorized to take disciplinary action against such License.

EE. Testing laboratory" shall have the same meaning as in Section 26001(at) of the California Business and Professional Code.

FF. Written Documentation" shall have the meaning as in Section 11362. 7(i) of the California Health and Safety Code.

GG. Youth Center" means any facility that is operated by a public agency or non- profit entity with the sole purpose of providing educational and/or recreational services to minors.
4- 34. 3: Relationship to other laws.

Except as otherwise specifically provided herein, this title incorporates the requirements and procedures set forth in Division 10 of the California Business and Professions Code, starting with section 26000, as such division may be amended in the future. In the event of any conflict between the provisions of this title and the provisions of Division 10 of the Business and Professions Code or any other applicable state law or the Lynwood Municipal Code, the more restrictive provision shall govern. 4- 34. 4: Permitted Use
A. Commercial Cannabis Businesses shall only be permitted to operate in the City following application, investigation, verification, approval and issuance of development agreement approved by the City Council and a business license issued by the City in accordance with the criteria and procedures set forth in Chapter 4 of this code and in compliance with the Lynwood Municipal Code. No land use entitlement, permit ( including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a Commercial Cannabis Business shall be granted or permitted unless it complies with the provisions of this chapter and the applicable building standards and the Lynwood Municipal Code. If there is a conflict between the requirements of another chapter and this chapter, the requirements of this Title 4- 34 shall prevail.

B. All Persons who are engaged in or who are attempting to engage in Commercial Cannabis Activity in any form shall do so only in strict compliance with the terms, conditions, limitations and restrictions of the MAUCRSA, the provisions of this Title 4- 34, and all other applicable state and local laws and regulations. 6 590
C. The City Manager is authorized to make policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of Applicants, the application procedures and the administration and procedures to be used and followed in the application and hearing process. 4- 34. 5: Development agreement.

Prior to operating in the City and as a condition of issuance of a Permit, the Applicant shall enter into a development agreement with the City setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed upon, approval of architectural plans ( including site plan, floor plan, and elevation, to conform with manufacturing uses under the Lynwood Municipal Code), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all Persons in the City. The development agreement shall have a term of ten years and shall be valid for those ten years as long as the Licensee complies with the terms and conditions set forth therein and the provisions of this chapter and Code, and all applicable State Laws. 4- 34. 6: Permitted zones — Distance and other conditions for approval.

Licensed Premises of any license classification type, as specified in Business and Professions Code section 26050 ( except Cannabis retail storefronts), and in this chapter, may be allowed, maintained, or operated in the City. If there is a conflict between the requirements of this chapter and any other chapter, the requirements of this chapter shall prevail.

A. Manufacturing Site.

I. No Manufacturing Site shall be located within six hundred feet of a school, day-care center, or Youth Center, in conformance with state law, or within fifty feet of a residential zone.

2. Subject to the distance and other requirements of this title and the Code, a Manufacturing Site may only be located on a property within the M Manufacturing) zone, and only after the application for and granting of a development agreement by the City Council and a business permit in accordance with this title. The proposed use will comply with the minimum requirements set forth in this title for distance separations between Manufacturing Sites and other specific land uses.

3. All manufacturing of commercial Cannabis shall occur in an Enclosed Locked Structure. All manufacturing of Cannabis Outdoors within the City is prohibited.

4. Manufacturing Sites shall not exceed the square footage authorized pursuant to the controlling development agreement.

5. From a public right- of- way, there should be no exterior evidence of the manufacture of commercial Cannabis of any type or kind, except for any signage authorized by this Code.
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6. All Manufacturing Sites shall comply with the City's lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

7. All windows on the Licensed Premises of the Manufacturing Site shall be appropriately secured and all commercial Cannabis securely stored.

8. A Manufacturing Site, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes.

9. If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in CFC Section 202, are to be used in the processing of commercial Cannabis, then the provisions of CFC Section 407 shall be applicable where hazardous materials subject to permits under CFC Section 50 ( Hazardous Materials) are located on the Licensed Premises or where required by the fire department official.

10. Storage, use and handling of compressed gases in compressed gas containers, cylinders, tanks and systems shall comply with CFC Chapter 53.

Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required.

Compressed gases classified as hazardous materials shall also comply with CFC Chapter 50 for general requirements and CFC Chapter 53 addressing specific hazards, including CFC Chapter 58 ( Flammable Gases), CFC Chapter 60 ( Highly Toxic and Toxic Materials), CFC Chapter 63 ( Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and CFC Chapter 64 ( Pyrophoric Materials). Prevention, control and mitigation of dangerous conditions related to storage, use, dispensing, mixing and handling of flammable and combustible liquids shall be in accordance with CFC Chapters 50 and 57.

11. Manufacturing Sites are a Group F- 1 ( Factory Industrial Moderate- Hazard) Occupancy under the Fire Code. All new construction is required to be fire sprinkled per the Fire Code. For Manufacturing Sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-I occupancy where one of the following conditions exists:
a. A Group F-1 fire area exceeds twelve thousand square feet. b. A Group F- 1 fire area is located more than three stories above grade plane. c. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty- four thousand square feet.

B. Cultivation Sites.

1. No Cultivation Site shall be located within six hundred feet of a school, day- care center, park, or Youth Center, in conformance with state law, or within fifty feet of a residential zone.

2. Subject to the distance and other requirements of this chapter and the Code, a Cultivation Site may only be located on a property within the M Manufacturing) zone, and only after the application for and granting of a 8 592
development agreement by the City Council and a business permit in accordance with this chapter. The proposed use will comply with the minimum requirements set forth in this chapter for distance separations between Manufacturing Sites and other specific land uses.

3. All cultivation of commercial Cannabis shall occur in an Enclosed Locked Structure. All cultivation of Cannabis Outdoors within the City is prohibited.

4. Cultivation Sites shall not exceed the square footage authorized pursuant to the Permit.

5. From a public right- of- way, there should be no exterior evidence of the cultivation of commercial Cannabis except for any signage authorized by this chapter.

6. All Cultivation Sites shall comply with the City' s lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

7. All windows on the Licensed Premises of the Cultivation Sites shall be appropriately secured and all commercial Cannabis securely stored.

8. Areas where commercial Cannabis is cultivated are wet locations, and the electrical system in such areas must comply with Title 11-8 of this code, Article 300. 6( D) of the National Electric Code, City and California building codes, fire codes, electrical codes and all other applicable laws.

9. Cultivation Sites are a Group F- 1 ( Factory Industrial Moderate- Hazard) Occupancy under the Fire Code. All new construction is required to be fire sprinkled per the Fire Code. For Cultivation Sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists:
a. A Group F-1 fire area exceeds twelve thousand square feet. b. A Group F-1 fire area is located more than three stories above grade plane. c. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty- four thousand square feet.

C. Distribution Sites.

1. No Distribution Site shall be located within six hundred feet of a school, day- care center, or Youth Center, in conformance with state law, or within fifty feet of a residential zone.

2. Subject to the distance and other requirements of this title and the Code, a Distribution Site may only be located on a property within the M Manufacturing) zone, and only after the application for and granting of a development agreement by the City Council and a business permit in accordance with this title. The proposed use will comply with the minimum requirements set forth in this title for distance separations between Manufacturing Sites and other specific land uses.

3. All storage, handling, and packaging of commercial Cannabis for distribution shall occur in an Enclosed Locked Structure. All storage, handling, and packaging of Cannabis Outdoors within the City is prohibited. 9 593

4. Distribution Sites shall not exceed the square footage authorized pursuant to the controlling development agreement.

5. From a public right- of- way, there should be no exterior evidence of the storage, handling, or packaging of commercial Cannabis of any type or kind, except for any signage authorized by this Code.

6. All Distribution Sites shall comply with the City's lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

7. All windows on the Licensed Premises of the Distribution Site shall be appropriately secured and all commercial Cannabis securely stored.

8. A Distribution Site, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes.

9. No Distribution company will carry or move Cannabis within the City without complying with State Law.

D. Testing Sites.
1, No Testing Site shall be located within six hundred feet of a school, day-care center, or Youth Center, in conformance with state law.

2. Subject to the distance and other requirements of this title and the Code, a Testing Site may be located on a property within the M ( Manufacturing) zone or within the C-3 Heavy Commercial zone ( which is limited to a maximum of one facility within the C- 3 zone), and only after the application for and granting of a development agreement by the City Council and a business permit in accordance with this title. The proposed use will comply with the minimum requirements set forth in this title for distance separations between Testing Sites and other specific land uses.

3. All storage, handling, and packaging of commercial Cannabis for Testing shall occur in an Enclosed Locked Structure. All storage, handling, and packaging of Cannabis Outdoors within the City is prohibited.

4. From a public right- of- way, there should be no exterior evidence of the storage, handling, or packaging of commercial Cannabis of any type or kind, except for any signage authorized by this Code.

5. All Testing Sites shall comply with the City's lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

6. All windows on the Licensed Premises of the Testing Site shall be appropriately secured and all commercial Cannabis securely stored.

7. A Testing Site, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes.

8. No Testing company will carry or move Cannabis within the City without complying with State Law.
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E. Delivery.

1. If it is permitted under state law, a Person may operate a Cannabis non- storefront Delivery service if the Person obtains a Permit from the City for such activity.

2. The activity must be conducted as a Cannabis Delivery- only service, consistent with state law and regulations, and it can only be conducted from a Licensed Premises in the City of Lynwood.

3. No in- person sales shall be permitted at any Licensed Premises, and no Licensed Premises shall be open to the public.

4. A Permit to conduct a Cannabis Delivery service will be subject to reasonable conditions, including but not limited to the types of vehicles that may be used for deliveries, the qualifications of drivers, and limits on the amount of Cannabis products that an individual may purchase.

5. This section creates no vested right to engage in any such activity or business.

6. This activity shall not be considered a dispensary.

7. This is intended as an exceptional measure, notwithstanding any other provision of the Lynwood Municipal Code, to ensure the City' s residents have safe and reliable access to Cannabis products.

8. No Cannabis Delivery Site shall be located within six hundred feet of a school, day- care center, or Youth Center, in conformance with state law, or within fifty feet of a residential zone.

9. Subject to the distance and other requirements of this title and the Code, a Cannabis Delivery Site may only be located on a property within the M Manufacturing) zone, and only after the application for and granting of a development agreement by the City Council and a business permit in accordance with this title. The proposed use will comply with the minimum requirements set forth in this title for distance separations between Manufacturing Sites and other specific land uses.

F. Additional Uses. In addition to a cultivation, manufacturing, or distribution Permit, a Commercial Cannabis Business Applicant may apply for another use as permitted by MAUCRSA, a development agreement approved by City Council, and any rules adopted pursuant thereto, as long as the requested use does not violate any provision in State Law, Ordinance No. 1632, Section 25- 200- 1, Chapter 25 Appendix A of the Lynwood Zoning Code, or the limitations in this Title 4- 34, except that no Person may have a testing Permit if that Person has any other kind of Permit.

G. Nonconforming Use. Any dispensary of medical or adult use Cannabis, or Cannabis retail storefronts established or operating in the City in violation of this title 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 Cannabis Permit. Further, any such unlawfully established Commercial Cannabis 11 595
Business shall constitute a public nuisance subject to abatement by the City, pursuant to Title 13 of Chapter 3.

H. Distances. All distances specified in this section shall be measured in the following manner:

1. For schools, day-care centers, parks, or Youth Centers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the Cannabis business is to be located without regard to intervening structures.

2. From residential zones, the distance shall be measured to the nearest point of the parcel or property in a residential zone to the closest property line of the lot on which the Cannabis business is to be located without regard to intervening structures.
4- 34. 7: Transfer or Change in Ownership or Location.

A. Transfer or Change of Ownership

1. Transfer by Owner of Minority Interest. Any Owner of a Commercial Cannabis Business may sell, transfer, pledge, assign, grant an option, or otherwise dispose (" Transfer") of his or her ownership interest in the Commercial Cannabis Business covered by any Permit issued under this chapter upon written notice to the City Manager so long as: ( i) after giving effect to such Transfer, the transferee of such interest and any affiliates of such transferee own less than twenty percent ( 20%) of such Commercial Cannabis Business Minority Interest"); ( ii) after giving effect to such Transfer, the transferee of such interest and any affiliates of such transferee do not participate in the direction, control, or management of the Licensee, subject to transferee having an approval right over major decisions; and ( iii) after giving effect to such Transfer, the Persons owning such Commercial Cannabis Business as of the then most recent Transfer approved by the City Manager or the City Council will continue to own more than fifty percent ( 50%) of such Commercial Cannabis Business and will continue to control the management and operation of the Licensee, subject to other Owners having an approval right over major decisions.

2. Transfer by Owner of Non- Minority Interest. Any Owner of a Commercial Cannabis Business may Transfer between twenty point zero one percent

20. 01%) and one hundred percent ( 100%) his or her ownership interest in the Commercial Cannabis Business covered by any Permit issued under this chapter by filing an application to Transfer the ownership and obtaining the approval of the City Manager to such Transfer.

3. Transfer by Licensee to a New Entity. A Licensee may Transfer his or her Commercial Cannabis Business Permit issued under this chapter to a Person not named in the required development agreement by filing an application to 12 596
Transfer the ownership and obtaining the approval of the City Manager to such Transfer.

4. Transfers under subsections ( b) and ( c) above shall be subject to the following procedure. An application for approval of a Transfer shall be submitted to the City Manager, who shall review it and all supporting documents for completeness. The City Manager, within 30 days of receipt of a complete application, shall either approve or deny the application. The City Manager' s decision shall be subject to appeal pursuant to section 4- 34. 15, below.

B. Persons permitted pursuant to the provisions of this chapter or those making application for such Permits, must demonstrate proof of lawful possession of the location.

Evidence of lawful possession consists of properly executed deeds, leases, or other written documents.

C. The location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. No Licensee is authorized to relocate to other areas or units within a building structure, and no Licensee shall add additional contiguous units or areas, thereby altering the initially approved premises, without filing an application to modify the location, including any applicable processing fee, and obtaining the approval of the City Manager.

D. Subletting Not Authorized. No Licensee is authorized to sublet any portion of any Licensed Premises for any purpose, unless all necessary forms and application to modify the existing location to accomplish any subletting have been approved by the City Manager.
4- 34. 8: Changing, Altering, or Modifying Location.

A. Application Required to Alter or Modify Licensed Premises. After issuance of a Permit, the Licensee shall not make any physical change, alteration, or modification of the Licensed Premises that materially or substantially alters the location, production estimates, or the usage of the location from the plans originally approved with the development agreement, without the prior written approval of the City Manager or his designee. The Licensee whose premises are to be materially or substantially changed is responsible for filing an application for approval on current forms provided by the City Manager.

B. What Constitutes a Material Change. Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following:

1. Any increase or decrease in the total physical size or capacity of the location;

2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other such means of public ingress and/ or egress, when such common entryway, doorway or passage alters or changes Limited Access Areas, such as the cultivation, harvesting, manufacturing, or sale of commercial Cannabis or Cannabis- infused product within the Licensed Premises; or
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3. The installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage to enhance cultivation activities.

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. 4- 34. 9: Grounds for Denial of Permit— Additional conditions imposed.

A. The City Managermay reject an applicationupon making any of the following findings:

1. The Applicant made one or more false or misleading statements or omissions on the registration application or during the application process;

2. The Applicant's business entity, if applicable, is not properly organized in strict compliance pursuant to the applicable law, rules and regulations;

3. The Applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter;

4. The Applicant's facility or its location is in violation of any building, zoning, health, safety, or other provision of this Code, or of any state or local law which substantially affects the public health, welfare, safety, or morals, or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a Permit would be contrary to the public health, welfare, safety, or morals;

5. The Applicant, or any of its officers, directors, Owners, managers, or employees is under twenty- one ( 21) years of age;

6. The Applicant, or any of its officers, directors, or Owners, or any Person who is managing or is otherwise responsible for the activities of the Licensed Premises, or any employee who participates in the cultivation, processing, manufacturing, Distribution, Delivery, or transporting of Cannabis or who participates in the daily operations of the commercial Cannabis facility, has been convicted of a violent felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude, or the illegal use, possession, transportation, Distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, with the exception of Medical Cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996; 14 598

7. The Applicant, or any of its officers, directors, Owners, or managers, is a Physician making patient recommendations for Medical Cannabis;

8. The Applicant, or any of its officers, directors, Owners, or managers has been sanctioned by the City, the state of California, or any county for unregistered Medical Cannabis activities or has had a registration revoked under this chapter in the previous three ( 3) years;

9. The Applicant did not pay to the City the required application and processing fees;

10. The Applicant has had a license application denied, or a license revoked or suspended by the State of California;

11. Good Cause exists to reject the application, as defined in this chapter; or

12. Applicant' s application does not reflect the purpose of this chapter, to promote the health, safety, morals, and general welfare of residents and businesses within the City.
4- 34. 10: Security.

A. General Security Requirements

1. Security cameras shall be installed and maintained in good working condition and used in an on-going manner with at least 240 continuous hours of digitally recorded documentation in a format approved by the City Manager. The cameras shall be in use 24 hours per day, 7 days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, manufacturing or cultivation areas, all doors and windows, and any other areas as determined by the City Manager.

2. The lease/ business space shall be alarmed with a reliable, commercial alarm system that is operated and monitored by a security company or alarm business that is operating in full compliance with Title 3-1 of this Code.

3. Entrance to any storage areas shall be locked at all times, and under the control of Licensee' s staff.

4. The business entrance( s) and all window areas shall be illuminated during evening hours. The Applicant shall comply with the City' s lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits as needed.

5. All windows on the Licensee' s building shall be appropriately secured and all product securely stored.

6. Each Licensee shall implement a system to track the cultivation and manufacturing of Cannabis in order to prevent the Licensee from diverting or transporting Cannabis to any location not authorized by State Laws and any local law or regulation.

7. All waste and disposal containers shall be locked at all times and stored in a secure area, and under the control of Licensee' s staff. 15 599
B. Security Alarm Systems — Minimum Requirements

1. Each Licensed Premises shall have a Security Alarm System, installed by a licensed alarm company, on all perimeter entry points and perimeter windows.

2. Each Licensed Premises must ensure that its location is continuously monitored. Licensed Premises may engage the services of an outside vendor to fulfill this requirement.

3. The Licensed Premises shall maintain up to date and current records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the licensed alarm company, and the name of any vendor monitoring the premises.

4. Upon request, each Licensed Premises shall make available to the City Manager or any state or local law enforcement agency, for a purpose authorized by this chapter or any state or local law enforcement purpose, all information related to security alarm systems, recordings, monitoring, and alarm activity.

C. Lock Standards — Minimum Requirement. At all points of ingress and egress, the Licensee shall ensure the use of commercial- grade, nonresidential door locks.

D. Video surveillance requirements:

1. Prior to exercising the privileges of a Permit under this chapter, an Applicant must install fully operational video surveillance and camera recording system.

The recording system must record in digital format and meet the requirements outlined in this Section.

2. All video surveillance records and recordings must be stored in a secure area that is only accessible to the management staff of Licensed Premises.

3. Video surveillance records and recordings must be made available upon request to the City Manager or any other state or local law enforcement agency for a purpose authorized by this chapter or for any other state or local law enforcement purpose.

4. Video surveillance records shall be held in confidence by all employees and representatives of the City Manager, except that the City Manager may provide such records and recordings to any other state or local law enforcement agency for a purpose authorized by this Chapter or for any other state or local law enforcement purpose.

5. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than one inch in height, stating " All Activities Monitored by Video Camera" or " These Premises Are Being Digitally Recorded" or otherwise advising all Persons entering the Licensed Premises that a video surveillance and camera recording system is in operation at the MCCC and recording all activity as provided in this Section.
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6. The Licensed Premises should use video surveillance equipment and a camera system that can be accessed remotely by local law enforcement and the City, as specified in each development agreement.

E. Video Surveillance Equipment

1. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this rule, video monitors, digital archiving devices, and a color printer capable of delivering still photos.

2. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the Licensed Premises of any prolonged surveillance interruption and/ or the complete failure of the surveillance system.

3. Licensed Premises are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas.

4. All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.

F. Placement of Cameras and Required Camera Coverage

1. Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Licensed Premises.

2. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points.

3. The system shall be capable of recording all pre- determined surveillance areas in any lighting conditions. If the Licensed Premises has a commercial Cannabis cultivation area, a rotating schedule of lighted conditions and zero- illumination can occur as long as ingress and egress points to those areas remain constantly illuminated for recording purposes.

4. Areas where commercial Cannabis is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height, which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.

5. Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur.

6. At least one camera must be dedicated to record the access points to the secured surveillance recording area.

7. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor Limited Access Areas. 17 601
G. Location and Maintenance of Surveillance Equipment

1. Surveillance recording equipment must be housed in a designated, locked and secured room or other enclosure with access limited to authorized employees, agents of the City Manager, state or local law enforcement agencies for a purpose authorized by this chapter or for any other state or local law enforcement purpose, and service personnel or contractors.

2. Licensed Premises must keep a current list of all authorized employees and service Personnel who have access to the surveillance system and/ or room on the Licensed Premises. Licensed Premises must keep a surveillance equipment maintenance activity log on the Licensed Premises to record all service activity including the identity of the individual(s) performing the service, the service date and time and the reason for service to the surveillance system.

3. Off-site monitoring and video recording storage of the Licensed Premises or an independent third-party is authorized as long as standards exercised at the remote location meets or exceeds all standards for on- site monitoring.

4. Each Licensed Premises located in a common or shared building must have a separate surveillance room/ area that is dedicated to that specific Licensed Premises. The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises. All minimum requirements for equipment and security standards as set forth in the section apply to the review station.

H. Video Recording and Retention Requirements

1. All camera views of all recorded areas must be continuously recorded 24 hours a day.

2. All surveillance recordings must be kept for a minimum of 30 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately captured video and guarantees that no alteration of the recorded image has taken place.

3. The surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded, of the Licensed Premises.

4. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture.

5. Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U. S. Naval Observatory at: http:// www. time. gov/ timezone. cgi? Mountain/ d/- 7/ java.

6. After the 30- day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings may not be destroyed if the Licensed Premises knows or should have known 18 602
of a pending criminal, civil, or administrative investigation or any other proceeding for which the recording may contain relevant information.

I. Other Records — All records applicable to the surveillance system and Cannabis tracking system shall be maintained on the Licensed Premises. At a minimum, Licensed Premises shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment.
4- 34. 11: Fees and charges
A. Prior to operating in the City, the operator of each Licensed Premises shall timely and fully pay all fees associated with the establishment of that business. The fees shall be as set forth in the schedule of fees and charges established by resolution of the City Council, including, but not limited to, the following:

1. Application fee of twenty- five thousand dollars ($ 25, 000. 00) for accepting an application; due and payable in full at the time an application is submitted; this fee shall cover legal fees incurred by the City to prepare a development agreement as well as staff time and costs to review, investigate, and evaluate the application.

2. Permit issuance fee of twenty thousand dollars ($ 20, 000. 00) for the cost to the City of preparing the necessary staff reports and hold the necessary hearings consistent with the development agreement statutes, City Council review and approval of the development agreement and the Permit, and preparation and issuance of the Permit as authorized by the City Council, due and payable in full at the time the City issues a Permit.

3. Amended application fee of seven thousand five hundred dollars ($ 7, 500. 00) for the cost to the City of reviewing amendments or changes to the application form previously filed on behalf of the Licensed Premises ( such as a change of ownership); due and payable in full at the time amendments or changes to any Permit form is submitted to the City.

4. Fee of fifteen thousand dollars ($ 15, 000. 00) for the cost to the City of reviewing an application for a change of location of a Licensed Premises, including the cost of staff time to review, investigate, and evaluate the application, inspect the existing premises and the proposed premises, and prepare staff reports, and to hold the necessary hearings before the Planning Commission and the City Council.

5. Fee of fifteen thousand dollars ($ 15, 000. 00) for the cost to the City of reviewing an application for a change of a Licensee for a Commercial Cannabis Business, including the cost of staff time to review, investigate, and evaluate the application.

6. Annual fee of $ 10.00 per square foot of cultivation area ( canopy).

7. The higher of the following: an annual fee of two percent ( 2. 0%) of gross income from manufacturing activities; or a sum that shall be set at twenty thousand dollars ($ 20,000) during the first year of operations and shall rise in 19 603
increments of twenty thousand dollars each succeeding year until it reaches the maximum of one hundred forty thousand dollars ($ 140, 000. 00).

8. Annual fee of one and one- half percent ( 1. 5%) of gross income from Distribution/ transportation of product for anyone other than Owner.

9. Annual fee of two and one- half percent ( 2. 5%) of gross income from Delivery activities.

10. Fee of eight one- hundredths of one percent ( 0. 08%) on all revenues from manufacturing, distribution, and delivery activities, payable to the City on a quarterly basis, to reimburse the City for the cost of the electronic revenue tracking and merchant verification system known as " Veritil", or any similar system that the City may approve.

11. The Cost Recovery Fee set forth in the applicable development agreement.

12. All standard fees and charges, including but not limited to plan review fees, permit fees, encroachment permit fees, and pass- through fees and charges from other agencies.
4- 34. 12: Revenue tracking software
Each Licensee will employ the electronic revenue tracking and merchant verification system known as " Veritil", or any similar system approved by the City for all point of donation/sales tracking from seed or inception to product distribution to other licensed commercial Cannabis facilities or Delivery to individual customers or otherwise in compliance with state and local law. Such approved system will track in real time all of Licensee' s sales transactions involving commercial Cannabis products and will have the capacity to produce historical transactional data in accordance with the City' s requirements.
4-34. 13: Limitations on City' s liability
A. To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to approving any Permit pursuant to this chapter or the operation of any commercial Cannabis facility approved pursuant to this chapter.

B. As a condition of approval of a Permit as provided in this title, the Applicant or its legal representative shall:

1. Execute an agreement indemnifying the City from any claims, damages, injuries, or liabilities of any kind associated with the registration or operation of the commercial Cannabis facility or the prosecution of the commercial Cannabis facility or its Owners, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or State Laws;

2. Maintain insurance in the amounts and of the types that are acceptable to the City Manager;

3. Name the City as an additional insured on all City required insurance policies;

4. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a Permit; and 20 604

5. Agree to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to the City's approval of a Permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.
4- 34. 14. Inspections
A. The City Manager, law enforcement, or their designees shall have the right to enter all Licensed Premises from time to time unannounced during the facility' s hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this chapter, to inspect and copy records required to be maintained under this chapter, or to inspect, view, and copy recordings made by security cameras, all without requirement for a search warrant, subpoena, or court order, and subject to appropriate fees as specified in the development agreement or in this Code.

B. Operation of a Licensed Premises in noncompliance with any conditions of approval or the provisions of this chapter shall constitute a violation of this Code and shall be enforced pursuant to the provisions of this Code.

C. The City Manager may summarily suspend or revoke a Permit, or disqualify an Applicant from the registration process, or elect not to renew a Permit if any of the following, singularly or in combination, occur:

1. The City Manager determines that the Cannabis Licensee has failed to comply with any requirement of this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the City Manager to deny the Permit under this chapter or elect not to renew or revoke the Permit under this chapter;

2. The Licensee or Applicant has conducted itself or is being conducted in a manner that creates or results in a public nuisance;

3. The Licensee ceases operations for more than 90 calendar days, including during change of ownership proceedings;

4. Ownership is changed without the new Owner( s) applying for and securing a new Permit under this chapter, consistent with section 4- 34- 7;

5. The Licensed Premises relocates to a different location or premises; and

6. The Licensee fails to allow inspection and/ or copying of the security recordings, the activity logs and records required under this chapter, or the premises by authorized City officials.

D. Abatement. The City shall initiate abatement proceedings as authorized by this Code if necessary to correct any violation of this chapter, Code, or State Laws.

E. Violation deemed misdemeanor— penalty. Any Person violating any of the provisions of this chapter or any applicable rule in this chapter or Code, shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by the maximum penalties provided for in Section 19 of the Penal Code. 21 605
4- 34. 15: Testing
A. Testing Rules and Regulations. The City Manager is authorized to formulate, adopt, and amend from time to time, rules and regulations regarding the safety and potency of commercial Cannabis distributed, dispensed, cultivated or manufactured at any Licensed Premises operating within the City. The purpose of such rules and regulations is to verify that any Cannabisin any LicensedPremisesis free of disallowedpesticides, fungicides, and microbiological organisms such as mold, bacteria, and fungus, and to verify the potency of such Cannabis.

B. Testing Centers. The City Manager is authorized on behalf of the City to contract with one or more independent testing laboratories to assist the City Manager in the formulation of the rules and regulations required under this Section and to perform periodic and random testing of Cannabis at each Licensed Premises operating in the City.

C. Samples on Demand. Each Licensee shall, upon request of the City Manager, submit a sufficient quantity of Cannabis to a recognized testing facility retained by the City Manager to perform laboratory or chemical analysis of the subject Cannabis. The testing facility shall maintain the testing results as part of its records. The City Manager will notify the Licensee of the results of the analysis.
4- 34. 16: Appeals
Any decision regarding or pertaining to the permit process set forth in this chapter, or any actiontaken by the City Managerpursuanthereto, may be appealedto the City Council. Such appeal shall be taken by filing with the City Clerk, within ten (10) days after notice of the action or decision complained of has been issued, a written statement setting forth the grounds for the appeal. The City Clerk shall transmit the written statement to the City Counciland at its next regularmeetingthe councilshall set a time and placefor a hearing on the appeal. Notice of the time and place of such hearing shall be mailed to the appellant. The decision of the City Council on such appeal shall be final and binding on all parties concerned.
4- 34. 17: Statewide Regulation.

This title, and the provisions herein, shall be read consistently with any statewide regulation of medical and/ or adult use Cannabis/ marijuana that is promulgated by the legislature or by voter approval in the future. In the event that any state law is passed pursuant to the decriminalization or legalization, for recreational use, of Cannabis, this ordinance shall govern the conduct of those businesses allowed to cultivate, manufacture, test, or distribute Cannabis under such law.
22 606
4- 34. 18: Interpretation.

The provisions of this title shall be read consistent with all the provisions of Federal and State Laws, this chapter, as well as this Code. At no time shall a Commercial Cannabis Business in compliance with state law and this Code be deemed to be an unlawful business.

Section 2. Environmental Review. The projects for which Development Agreements have been negotiated are Categorically Exempt from California Environmental Quality Act ( CEQA) requirements under provisions of CEQA Guidelines Section 15302 Replacement or Reconstruction". This exemption ( Class 2) consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. More specifically, Section 15302( b) applies to the replacement of commercial structures with a new commercial structure of substantially the same size, purpose, and capacity. In this case, the cannabis activities occur in areas zoned for manufacturing. The project sites are currently developed with manufacturing uses • authorized pursuant to the zoning code or are vacant. In addition, most of the sites also qualify for the In-Fill exception ( Class 32) pursuant to CEQA Guidelines Section 15332 " In- Fill Development Projects". This exemption applies to projects characterized as in- fill development meeting the conditions described in Section 15332.

Section 3. Severability. Should any provision of this chapter, or its application to any Person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on ' my other provision of this chapter or the application of this chapter to any other Person or circumstance and, to that end, the provisions hereof are severable.

Section 4. Effect of Enactment. Except as specifically provided herein, nothing contained in this Ordinance shall be deemed to modify or supersede any prior enactment of the City Council that addresses the same subject addressed herein.

Section 5. Effective Date. This Ordinance shall take effect thirty ( 30) days after its adoption.

Section 6. Adoption. The City Clerk shall certify to the adoption of this Ordinance and cause it to be published or posted according to law.

Signatures on the next page]
23 607
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lynwood, California, this
16th
day of April 2019.
r
J.,. e Luis Solache, Mayor
ATTEST:
4edAl
Maria Quinonez, ity Clerk
APPROVED AS TO FORM APPROVED ` T TO CONTENT
Noel Tapia, City Attorney Jose
or
eteotl, City Manager
24 608

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 16th
day of
April 2019, and passed by the following vote:

AYES: COUNCIL MEMBER CASANOVA, SANTANA, AND MAYOR SOLACHE NOES: COUNCIL MEMBER ALATORRE
ABSENT: NONE
ABSTAIN: NONE
i /
aria Quinonez, ity Clerk
25 609
610
PAGE: 1 of 1
PINT SIZE: 8.5'x11'
MODIFIED: 12/18/2023
APN: 6170-003-034
ADDRESS: 10810 S. ALAMEDA ST.

LYNWOOD, CA
PROPERTY OWNER: DAVID CAVARRA
CONTACT: JONATHAN MONSCHKE
PHONE: 208-720-2287
EMAIL: [email protected]
108TH STREET
10810
S
. ALAMEDA STREET

HIGHLINE LA PROPERTY ENTRANCE/EXIT
14' VEHICLE SECURITY GATE

HIGHLINE LA, LLC NURSERY

EXISTING PREMISES FOOTPRINT
9,118 FT²
SECURE

PARKING
NOT
part of
Scope
for DA

PREMISES PUBLIC SECURE

ENTRANCE/EXIT
14' VEHICLE SECURITY GATE
109TH STREET

PROPERTY BOUNDARY

PROPERTY BOUNDARY
10' FENCE MASONRY
44'
82'
43'
95'
94'
150'

OFFICE & WAREHOUSE
(NON-CANNABIS NOT A

PART OF HIGHLINE LA)
NOTES:

1. ALL SQUARE FOOTAGE & DIMENSIONS REPRESENT

EXTERIOR FOOTPRINT AREAS

2. HIGHLINE LA EXISTING PREMISES 9,118 FT²

3. HIGHLINE LA PROPOSED ADDITIONAL PREMISES AREA
3,618 FT²

4. HIGHLINE LA EXISTING OFFICE & WAREHOUSE

SUPPORTS ALL OPERATIONS (NON-CANNABIS NOT PART OF
DCC PREMISES) 3,608 FT²

5. ALL BARBED WIRE AT TOP OF PERIMETER FENCING TO BE
REMOVED OR REPLACED WITH APPROVED MATERIAL.

6. Any additional or subsequent changes/revisions required by the Department of Cannabis Control must also be re-submitted to the City of Lynwood Planning Division for review and approval N
33'-4 7/8"SCALE 100'

PROPOSED ADDITION

SECURITY FENCING

PREMISES SECURE

ENTRANCES/EXITS

DELIVERY/SHIPPING
SECURE

PARKING

HIGHLINE LA, LLC SITE PLAN - CITY OF LYNWOOD

EXISTING & PROPOSED

LDC CAPITAL HOLDINGS, LLC

OFFICE & WAREHOUSE
(NOT A PART OF HIGHLINE LA)

PROPOSED GATE

FOR ISOLATION OF

BUSINESSES
97'
94'
97'

EXISTING HIGHLINE LA
65'
20'
42'

NON-HIGHLINE STRUCTURES

PROPERTY BOUNDARY
25'
18'
21'
50'
33'
33'

HIGHLINE LA, LLC

MICROBUSINESS PROPOSED

PREMISES FOOTPRINT
3,618 FT²
33'
10' FENCE

CHAIN LINK
10' FENCE

CHAIN LINK
Highline LA, cultivation, Micro Business, Distribution non-store front retail Exhibit A
611
PAGE: 2 of 2
SCALE: 1"= 20'
PINT SIZE: 11'x17'
MODIFIED: 12/18/2023
APN: 6170-003-034
ADDRESS: 10810 S. ALAMEDA ST.

LYNWOOD, CA
PROPERTY OWNER: DAVID CAVARRA
CONTACT: JONATHAN MONSCHKE
PHONE: 208-720-2287
EMAIL: [email protected]

HIGHLINE LA, LLC

PREMISES PLAN CITY OF LYNWOOD

PROPOSED
CCL20-0003216

CULTIVATION

DRYING ROOM
AREA 195FT²
4'-4"
18'-0"
4'-4"
18'-0"
7'-0"24'-6"
95'-6"
UP
13'-0"
4'-0"
20'-9"
9'-0"
4'-0"
DN
5'-6" 16'-9"16'-10" 9'-0"8'-6"
4'-4"
18'-0"
4'-4"
18'-0"
4'-4"
18'-0"
4'-4"
18'-0"
5'-4"
30'-0"
4'-4"
30'-0"
4'-4"
30'-0"
4'-4"
30'-0"
25'-0"
36'-5"

PESTICIDE &

AGRICULTURAL

CHEMICAL

STORAGE

UPSTAIRS
OFFICE
200SF

BATHROOM
(UNISEX)
200FT²
13'-0"
6'-0"
11'-10"
13'-8"

FERTIGATION
ROOM 78FT²
18'-8"
35'-11"
17'-3" 14'-4"

DISTRIBUTION

SECURE STORAGE
AREA 220FT²

CULTIVATION

VEGETATION
AREA 416FT²
CANOPY 234FT²
(SINGLE LEVEL)

CULTIVATION
FLOWER
AREA 420FT²
CANOPY 234FT²
(SINGLE LEVEL)

CULTIVATION
FLOWER
AREA 621FT²
CANOPY 480FT²
(SINGLE LEVEL)

CULTIVATION
FLOWER
AREA 513FT²
CANOPY 320FT²
(SINGLE LEVEL)

SECOND FLOOR

NON-STOREFRONT RETAIL &

SHARED OFFICE AREA

SECURE ENTRY
(ALL MICRO BUSINESS TYPES)
108TH STREET

FENCED SECURE

PARKING AREA
77'-0"
36'-4"
3'-10"
3'-6"
CLONE ROOTING RACKS 4'X65' (4 LEVEL)
LIFT
EXIT

EXITEXIT

OFFICE AREA
(NURSERY)

SHIPPING AREA
(NURSERY)
21'-8"
DESK

CANNABIS
WASTE

TRASH WASTE
WATER
15'-1"
4'-0"
4'-0"
HB
UP
VEGETATION TEEN RACKS 4'X66' (3 LEVEL)
HB
57'-6"

ADA RAMP
14'

VEHICLE
GATE

SECURE CANNABIS

WASTE FOR PICKUP

PESTICIDE &

AGRICULTURAL

CHEMICAL

STORAGE

POTTING
AREA
HB

UP SORTING

STATION
(30"X60")
TRAY
CART

SORTING

STATION
(30"X60")

SORTING
AREA
PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS
9'-8"PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS

PLUGGING
AREA
CLONE
CARE
AREA
CLONE
CARE
AREA
2'-10"
3'-10"6'-6"3'-4"5'-6"
7'-3"

NURSERY TEEN

VEGETATION &

PROPAGATION AREA
CANOPY 1,024FT²
(3 LEVELS)
3'-1"
MOM 1 - NURSERY VEGETATION
(GENETIC STOCK)
AREA 3,404FT²
CANOPY 1,184FT² (2 LEVELS)

NURSERY CLONE

PROPAGATION AREA
CANOPY 520FT²
(4 LEVELS)
13'-0"
SECURE

ENTRANCE
1,000G RO STORAGE
14'-4"
5'-1"3'-0"
5'-9"
8'-0"
CLONE INVENTORY RACK 4'X58' (4 LEVEL)
3'-6"
VEGETATION MOTHER TABLES 4'X74' (2 LEVEL)
LIFTDN
3'-10"
EXIT2'-8"
DN
EXIT3'-2"
7'-0"

NURSERY VEGETATION ROOM

GENETIC STOCK
AREA 2,740FT²
CANOPY 1,024FT² (2 LEVELS)
VEGETATION MOTHER TABLES 4'X64' (2 LEVEL)
3'-6"4'-3"3'-6"3'-0"
77'-1"
37'-4"

NURSERY

MEZZANINE LEVEL
2ND FLOOR
10810 S. ALAMEDA STREET
22' VAN

FENCED SECURE

PARKING & STORAGE
AREA
NOTE: Staff and storage building is non-cannabis
and not part of DCC licensed premises.

NOTE: Any additional or subsequent
changes/revisions required by the Department of
Cannabis Control must also be re-submitted to the
City of Lynwood Planning Division for review and
approval
CLOSET 5'X3'
43'-0"
29'-0"
22'-0"

COVER STORAGE
AND PARKING42'X21'
LOCKER ROOM17'X10'
ADMIN OFFICE10'X12'

KITCHEN
BATHUNISEX 8X7'6"
CHANG 5'X6' STAFF BREAK AREA MULTI PURPOSE18'X34''
8x10'

STERILE

CHAMBER
6'-0"
7'-6"
10'-0"
8'-0"
12'-0"
5'-0"
17'-0"
10'-0"

METAL SIDING
WITH
VENTS

METAL SIDING

WITH VENTS

COMPOST
TRASH

RECYCLE
TRASH

SECURITY CAMERA

SYSTEM SERVER
(ALL LICENSES)

ADA BATH

W SHOWER
(UNISEX)6X8'
10' TALL VEHICLE GATE
& PRIVACY FENCE

FOR BUSINESSES SEPARATION

FERTIGATION
ADMIN
OFFICE10'X12'

SUPPLY WAREHOUSENON

CANNABIS
31'X43''
31'-0"

ELECTRICAL PANEL
EXIT
EXIT

NEIGHBORING TENANT

NOT PART OF HIGHLINE LA

DISTRIBUTION

SECURE RECORDS

NON-STOREFRONT
RETAIL

SECURE RECORDS
N

ELECTRICAL ROOM

NOT PART OF PREMISES
1' 5'
10'
SCALE
NURSERY SELLABLE CANOPY AREA: 1,012 FT²
CULTIVATION FLOWER CANOPY AREA: 944 FT²
TOTAL COMBINED CANOPY FOOTPEINT: 4,930 FT²
(Includes vegetation & nonsalable canopy)

NURSERY CLONE & TEEN
AREA 3,404FT²

HIGHLINE LA

ADMINISTRATION, STAFF & WAREHOUSE
(NON-CANNABIS AREA)

DIMENSIONS NURSERY (EXISTING)
1ST FLOOR AREA: 8,880 FT²
MEZZANINE 2ND FLOOR AREA 2 ,900 FT²
TOTAL EXISTING FLOOR AREA 11,700 FT²

DIMENSIONS MICROBUSINESS (PROPOSED)
DISTRIBUTION 220FT²
NON-STOREFRONT RETAIL (2ND) 200FT²
CULTIVATION 2,165 FT²
COMMON AREAS & WALLS 960 FT²
TOTAL PROPOSED FLOOR AREA 3,545 FT²
NEW TOTAL COMBINED CANNABIS 15,245 FT²

DIMENSIONS NON-CANNABIS AREAS
(EXISTING)
COVER PARKING AREA: 946 FT²
ADMIN OFFICE & STAFF AREA: 1,247 FT²
WAREHOUSE 1,333 FT²
TOTAL FLOOR AREA NON-CANNABIS 3,526 FT²
NOTE: All square footage numbers are for interior
areas and my differ from Premises Footprint show
on Site Plan.
612
NURSERY SELLABLE CANOPY AREA: 1,012 FT²
(Included Clones & Teens)
NURSERY TOTAL CANOPY FOOTPRINT 3,752 FT²
PAGE: 1 of 2
SCALE: 1"= 20'
PINT SIZE: 11'x17'
MODIFIED: 12/18/2023
APN: 6170-003-034
ADDRESS: 10810 S. ALAMEDA ST.

LYNWOOD, CA
PROPERTY OWNER: DAVID CAVARRA
CONTACT: JONATHAN MONSCHKE
PHONE: 208-720-2287
EMAIL: [email protected]

HIGHLINE LA, LLC

PREMISES PLAN CITY OF LYNWOOD

EXISTING
CCL20-0003216
7'-0"24'-6"
95'-6"
UP
13'-0"
4'-0"
20'-9"
9'-0"
4'-0"
DN
5'-6" 16'-9"16'-10" 9'-0"8'-6"
25'-0"
36'-5"
13'-0"
6'-0"
11'-10"
13'-8"
18'-8"
35'-11"

NEIGHBORING TENANT

NOT PART OF HIGHLINE LA
17'-3" 14'-4"

SECOND FLOOR
(AS BUILT )

SECURE ENTRY
(ALL MICRO BUSINESS TYPES)
108TH STREET

FENCED SECURE

PARKING AREA
77'-0"
36'-4"
92'-0"
3'-10"
3'-6"
CLONE ROOTING RACKS 4'X65' (4 LEVEL)
LIFT
EXIT

EXITEXIT

OFFICE AREA
(NURSERY)

SHIPPING AREA
(NURSERY)
21'-8"
DESK

CANNABIS
WASTE

TRASH WASTE
WATER
15'-1"
4'-0"
4'-0"
HB
UP
VEGETATION TEEN RACKS 4'X66' (3 LEVEL)
HB
57'-6"

ADA RAMP
14'

VEHICLE
GATE

SECURE CANNABIS

WASTE FOR PICKUP

PESTICIDE &

AGRICULTURAL

CHEMICAL

STORAGE

POTTING
AREA
HB

UP SORTING

STATION
(30"X60")
TRAY
CART

SORTING

STATION
(30"X60")

SORTING
AREA
PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS
9'-8"PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS

PLUGGING
AREA
CLONE
CARE
AREA
CLONE
CARE
AREA
2'-10"
3'-10"6'-6"3'-4"5'-6"
7'-3"
3'-1"
13'-0"
SECURE

ENTRANCE
1,000G RO STORAGE
14'-4"
5'-1"3'-0"
5'-9"
8'-0"
CLONE INVENTORY RACK 4'X58' (4 LEVEL)
3'-6"
VEGETATION MOTHER TABLES 4'X74' (2 LEVEL)
LIFTDN
3'-10"
EXIT2'-8"
DN
EXIT3'-2"
7'-0"
VEGETATION MOTHER TABLES 4'X64' (2 LEVEL)
3'-6"4'-3"3'-6"3'-0"
77'-1"
37'-4"

NURSERY
2ND FLOOR

MEZZANINE LEVEL
10810 S. ALAMEDA STREET
22' VAN

FENCED SECURE

PARKING & STORAGE
AREA
NOTE: Staff and storage building is non-cannabis
and not part of DCC licensed premises.

COVER STORAGE
AND PARKING43'X22'
LOCKER ROOM17'X10'
ADMIN OFFICE10'X12'

KITCHEN
BATHUNISEX 8X7'6"
CHANG 5'X6'
STAFF BREAK AREA MULTI PURPOSE18'X34''
8x10'

STERILE

CHAMBER
6'-0"
7'-6"
10'-0"
8'-0"
12'-0"
5'-0"
17'-0"
10'-0"

METAL SIDING
WITH
VENTS

METAL SIDING

WITH VENTS

COMPOST
TRASH

RECYCLE
TRASH

SECURITY CAMERA

SYSTEM SERVER
(ALL LICENSES)

ADA BATH

W SHOWER
(UNISEX)6X8'

ELECTRICAL
ROOM
10' TALL VEHICLE GATE
& PRIVACY FENCE

FOR BUSINESSES SEPARATION

FERTIGATION
ADMIN
OFFICE10'X12'
SUPPLY WAREHOUSENON-CANNABIS31'X43''
31'-0"

ELECTRICAL PANEL
EXIT
EXIT

DIMENSIONS NURSERY (EXISTING)
1ST FLOOR AREA: 8,880 FT²
2ND FLOOR MEZZANINE AREA 2 ,900 FT²
TOTAL NURSERY FLOOR AREA 11,700 FT²

DIMENSIONS NON-CANNABIS AREAS
(EXISTING)
COVER PARKING AREA: 946 FT²
ADMIN OFFICE & STAFF AREA: 1,247 FT²
WAREHOUSE: 1,333 FT²
TOTAL FLOOR AREA NON-CANNABIS 3,526 FT²
NOTE: All square footage numbers are for interior
areas and my differ from Premises Footprint show
on Site Plan.

AS-BUILT

BATHROOM

AS-BUILT

PROPOSED AREA OF EXPANSION
(AS-BUILT )

AS-BUILT
N
1'
5'
10'
SCALE

NURSERY TEEN

VEGETATION &

PROPAGATION AREA
CANOPY 1,024FT²
(3 LEVELS)
MOM 1 - NURSERY VEGETATION
(GENETIC STOCK)
AREA 3,404FT²
CANOPY 1,184FT² (2 LEVELS)

NURSERY CLONE

PROPAGATION AREA
CANOPY 520FT²
(4 LEVELS)

NURSERY VEGETATION ROOM

GENETIC STOCK
AREA 2,740FT²
CANOPY 1,024FT² (2 LEVELS)

NURSERY CLONE & TEEN
AREA 3,404FT²

HIGHLINE LA

ADMINISTRATION, STAFF & WAREHOUSE
(NON-CANNABIS AREA)
613
APN: 6170-003-034ADDRESS: 10810 S. ALAMEDA ST. LYNWOOD, CA PROPERTY OWNER: DAVID CAVIARCONTACT: JONATHAN MONSCHKEPHONE: 208-720-2287EMAIL: [email protected]

HIGHLINE LA, LLCCANNABIS MICROBUSINESSFLOOR PLANCITY OF LYNWOOD PROPOSED 4'-4"
18'-0"
32'-1"
95'-6"
UP
13'-0"
4'-0"
20'-9"
9'-0"
4'-0"
DN
5'-6"16'-9"16'-10"9'-0"8'-6"
14'-4"5'-4"30'-0"
4'-4"
25'-0"
36'-5"

PESTICIDE &AGRICULTURALCHEMICAL STORAGE

CANNABIS WASTE
TRASH

WASTEWATER

SECURE CANNABISWASTE FORPICKUP

3. NON-STOREFRONTRETAIL (PRIMARY)200SF²

4. BATHROOMUNISEX200FT²

4.SECUREENTRY

SECUREPARKING
13'-0"
6'-0"
ET
11'-10"
13'-8"

1. FERTIGATIONROOM 78FT²
17'-3"
18'-8"
35'-11"

NEIGHBORING TENANT
10810 S. ALAMEDA STREET

NEIGHBORINGHIGHLINE LA, LLC NURSERY

1. CULTIVATIONFLOWERAREA 513FT²CANOPY 320FT²(SINGLE LEVEL)

2. DISTRIBUTIONSECURE STORAGE 220FT²

1. CULTIVATIONDRYINGAREA 195FT²
SECOND FLOOR4. SHARED OFFICE AREA
6'
3'
6'3'
3'
3' 3'
3'3'
6'
3'
PROPOSED CANNABIS MICROBUSINESS ACTIVITIES:1. CULTIVATION2. DISTRIBUTION3. NON-STOREFRONT RETAIL4. COMMON TO ALL USE TYPESCAMERA LOCATIONS & NUMBERS

SECURECANNABISLOADINGUNLOADINGAREA
6'
C10
C11
C9
C2
C1
C12
C7C5C6
C3
C4
C#

DISTRIBUTIONSECURE RECORDSSTORAGE
24'-6"7'-0"

ELECTRICALPANEL

4. HALLWAYS & STAIRWELL

NON-STOREFRONT RETAILSECURE RECORDS
N
EXIT
EXIT
PAGE: 1 of 1SCALE: 1"= 10'PINT SIZE: 11'x17' MODIFIED: 12/18/20231'5'10'SCALE

ELECTRICAL ROOMNOT PART OF PREMISES
20'-4"

1. CULTIVATIONFLOWERAREA 621FT²CANOPY 480FT²(SINGLE LEVEL)4'-4" 18'-0"1. CULTIVATIONFLOWERAREA 420FT²CANOPY 234FT²(SINGLE LEVEL)

1. CULTIVATIONVEGITATIONAREA 416FT²CANOPY 234FT²(SINGLE LEVEL) FLOWER CANOPY AREA: 944 FT²TOTAL CANOPY AREA: 1,178 FT² NOTE: Any additional or subsequent changes/revisions required by the Department of Cannabis Control must also be re-submitted to the City of Lynwood Planning Division for review and approval NOTE: All square footage numbers are for interior areas and my differ from Premises Footprint show on Site Plan.

DIMENSIONS MICROBUSINESS (PROPOSED)DISTRIBUTION 220FT²NON-STOREFRONT RETAIL (2ND) 200FT² CULTIVATION 2,165 FT²COMMON AREAS & WALLS 960 FT²TOTAL PROPOSED FLOOR AREA 3,545 FT² C8
C11
614
12/21/23

LOCATION & TYPE USE INTERIOR AREA
FT² NOTES
MOM 1 VEG VEGETATING MOMS & WORK AREAS 3,404
MOM 2 VEG VEGETATING MOMS & WORK AREAS 2,740 2ND FLOOR CLONE & TEEN TEEN & CLONE VEG & SALE INVENTORY 3,404
OTHER OFFICE, BATHROOMS, HALLS, STAIRS ETC 1,403
NURSERY TOTALS 10,951 -
CULTIVATION VEGETATION & FLOWER 2,165
DISTRIBUTION SECURE STORAGE & RECORDS 220
OFFSITE RETAIL SECURE STORAGE & RECORDS 200
OTHER (SHARED) OFFICE, BATHROOMS, HALLS, STAIRS ETC 960 INCLUDES 2ND FLOOR MICRO TOTALS 3,545 -
NURSERY EXISTING NURSERY 10,951
MICRO BUSINESS PROPOSED MICROBUSINESS 3,545
NOTE:

COMBINED TOTALS TOTAL CANNABIS LICENSED SPACE 14,496 -
COVER PARKING 946
ADMIN OFFICE & STAFF 1,247
WAREHOUSE 1,333
NON-CANNABIS TOTALS 3,526 -

LOCATION & TYPE USE RACKS TOTAL
CANOPY FT²

SELLABLE
CANOPY FT² NOTES
MOM 1 VEG VEGETATING MOMS (Genetic Stock for cutting clones) 1,184 x 2 LEVELS 2,368 MOM 2 VEG VEGETATING MOMS (Genetic Stock for cutting clones) 1,024 x 2 LEVELS 2,048 CLONE VEG VEGETATING CLONES (Immature to be moved to sale racks) 520 x 3 LEVELS 1,560 - Lower 3 levels of rack Veg CLONE SALE CLONES TO BE SOLD TO CUSTOMERS 520 x 1 LEVELS 520 520 Top level of rack Sale TEEN VEG VEGETATING TEENS (Immature to be moved to sale racks) 492 x 2 LEVELS 984 - Lower 2 levels of rack Veg TEEN SALE TEENS TO BE SOLD TO CUSTOMERS 492 x 1 LEVELS 492 492 Top level of rack Sale NURSERY TOTALS 7,972 1,012
CULTIVATION VEG VEGETATING PLANTS (supports flower rooms) 235 No sellable product CULTIVATION FLOWER FLOWER PRODUCTION FOR SALE 944 944
MICRO TOTALS 1,179 944
NON-SELLABLE VEGETATING PLANTS NOT TO BE SOLD TO CUSTOMERS 6,960 REVENUE GENERATING CLONES, TEENS & FLOWER TO BE SOLD TO CUSTOMERS 1,956 1,956 COMBINED TOTALS 8,916 1,956

HIGHLINE LA NON-CANNABIS AREA (EXISTING)

SUMMARY OF CANOPY AREAS

HIGHLINE LA NURSERY CANOPY (EXISTING)

HIGHLINE LA MICRO BUSINESS CANOPY (PROPOSED)

NEW COMBINED LICENSED CANOPY AREA ( EXISTING & PROPOSED)

INTERIOR SPACE TOTALS MAY NOT MATCH SITE PLAN FOOTPRINT HIGHLINE LA, LLC FACILITY AREA BREAKDOWN 10810 S. ALAMEDA ST. CITY OF LYNWOOD

SUMMARY OF PREMISES AREAS

HIGHLINE LA NURSERY PREMISES (EXISTING)

HIGHLINE LA MICRO BUSINESS PREMISES (PROPOSED)

NEW COMBINED LICENSED PREMISES AREA ( EXISTING & PROPOSED) 615
51'-2"

EAST SECTIONAL FACING ALAMEDA STREET
32'-0"
13'-1"
17'-2"
OFFICE

BATHROOM
8'-4" 8'-6"

PROPOSED AREA TO BE

ADDED TO HIGHLINE LA

PREMISES
PAGE: 2 of 2
SCALE: 1"= 20'
PINT SIZE: 11'x17'
MODIFIED: 12/18/2023
APN: 6170-003-034
ADDRESS: 10810 S. ALAMEDA ST.

LYNWOOD, CA
PROPERTY OWNER: DAVID CAVARRA
CONTACT: JONATHAN MONSCHKE
PHONE: 208-720-2287
EMAIL: [email protected]

HIGHLINE LA, LLC

ELEVATIONS CITY OF LYNWOOD

EXISTING & PROPOSED
CCL20-0003216
UP
NOTE: Any additional or subsequent
changes/revisions required by the Department of
Cannabis Control must also be re-submitted to the
City of Lynwood Planning Division for review and
approval
NOTE: All barbed wire at top of fences to be
removed.
1' 5'
10'
SCALE
14'-2"
14'-2"
96'-10"

TO HIGHLINE LA EXISTING

PREMISES

DOUBLE INSULATED WALL

POST POST
POST
GRADE

CLONE RACKS
(4 LEVELS) CLONE & TEEN
PROPAGATION (X3 LEVELS)
MOM ROOM 1
NURSERY VEGETATION (X2 LEVELS)
10'-11"12'-0"
MOM ROOM 2
NURSERY VEGETATION (X2 LEVELS)
35'-4"40'-0"17'-10"

CULTIVATION ROOMS
VEGETATION & FLOWER (X1 LEVEL)
51'-2"

EAST ELEVATION FACING ALAMEDA STREET
148'-0"
18'-2"

PROPOSED AREA TO BE

ADDED TO HIGHLINE LA

PREMISES
15'-0"
96'-10"

TO HIGHLINE LA EXISTING

PREMISES

SIDEWALK GRADE
5'-6"
17'-1"

EMERGENCY EXIT EMERGENCY EXIT
51'-2"

WEST ELEVATION FACING ALLY
147'-4"
18'-2"

PROPOSED AREA TO BE

ADDED TO HIGHLINE LA

PREMISES
15'-0"
96'-10" TO HIGHLINE LA EXISTING

PREMISES

SIDEWALK GRADE
5'-6"
17'-1"

EMERGENCY EXIT ELECTRICAL ROOM

ADJOINING

STRUCTURE
AWNING

MICROBUSINESS

ENTRANCE

NURSERY STAFF

ENTRANCE NURSERY OFFICE

ENTRANCE

ROLL UP DOOR
ROOF

ROOF ACCESS
ELEVATION FACING 108TH STREET
94'-0"
15'-0"
100'-1" HIGHLINE LA EXISTING

PREMISES

SIDEWALK GRADE
17'-1"

HIGHLINE LA

ADA ENTRANCE
ROOF
ROOF

HIGHLINE LA

VEHICLE GATE
38'-1" SECURE PARKING
46'-9"EXISTING
(NON-CANNABIS)

STRUCTURE
10' MASONRY WALL
87'-0"

ADJOINING

STRUCTURE

ADJOINING

STRUCTURE

MASONRY

EXTERIOR

CORRUGATED METAL

EXTERIOR
616
PAGE: 2 of 2
SCALE: 1"= 20'
PINT SIZE: 11'x17'
MODIFIED: 12/21/2023
APN: 6170-003-034
ADDRESS: 10810 S. ALAMEDA ST.

LYNWOOD, CA
PROPERTY OWNER: DAVID CAVARRA
CONTACT: JONATHAN MONSCHKE
PHONE: 208-720-2287
EMAIL: [email protected]

HIGHLINE LA, LLC

CAMERA DIAGRAM

CITY OF LYNWOOD

PROPOSED
CCL20-0003216

CULTIVATION

PESTICIDE &

AGRICULTURAL

CHEMICAL

STORAGE

UPSTAIRS
OFFICE
200SF

BATHROOM
(UNISEX)
200FT²
13'-0"
6'-0"
11'-10"
13'-8"

FERTIGATION
ROOM 78FT²
18'-8"
35'-11"
17'-3" 14'-4"

DISTRIBUTION

SECURE STORAGE
AREA 220FT²

CULTIVATION

VEGETATION
AREA 416FT²

CULTIVATION
FLOWER
AREA 420FT²

CULTIVATION
FLOWER
AREA 621FT²

CULTIVATION
FLOWER
AREA 513FT²

SECOND FLOOR

NON-STOREFRONT RETAIL &

SHARED OFFICE AREA

SECURE ENTRY
(ALL MICRO BUSINESS TYPES)
108TH STREET

FENCED SECURE

PARKING AREA
77'-0"
36'-4"
3'-10"
3'-6"
CLONE ROOTING RACKS 4'X65' (4 LEVEL)
LIFT
EXIT

EXITEXIT

OFFICE AREA
(NURSERY)

SHIPPING AREA
(NURSERY)
21'-8"
DESK

CANNABIS
WASTE

TRASH WASTE
WATER
15'-1"
4'-0"
4'-0"
HB
UP
VEGETATION TEEN RACKS 4'X66' (3 LEVEL)
HB
57'-6"

ADA RAMP
14'

VEHICLE
GATE

SECURE CANNABIS

WASTE FOR PICKUP

PESTICIDE &

AGRICULTURAL

CHEMICAL

STORAGE

POTTING
AREA
HB

UP SORTING

STATION
(30"X60")
TRAY
CART

SORTING

STATION
(30"X60")

SORTING
AREA
PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS
9'-8"PLUG

STATION
(30"X60")
PLUG
TRAYS
CUTS

PLUGGING
AREA
CLONE
CARE
AREA
CLONE
CARE
AREA
2'-10"
3'-10"6'-6"3'-4"5'-6"
7'-3"

NURSERY CLONE & TEEN

VEGETATION & PROPAGATION
AREA 3,404FT²
3'-1"
MOM 1 - NURSERY VEGETATION
(GENETIC STOCK)
AREA 3,404FT²
13'-0"
SECURE

ENTRANCE
1,000G RO STORAGE
14'-4"
5'-1"3'-0"
5'-9"
8'-0"
CLONE INVENTORY RACK 4'X58' (4 LEVEL)
3'-6"
VEGETATION MOTHER TABLES 4'X74' (2 LEVEL)
LIFTDN
3'-10"
EXIT2'-8"
DN
EXIT3'-2"
7'-0"

NURSERY VEGETATION ROOM

GENETIC STOCK
AREA 2,740FT²
VEGETATION MOTHER TABLES 4'X64' (2 LEVEL)
3'-6"4'-3"3'-6"3'-0"
77'-1"
37'-4"

NURSERY

MEZZANINE LEVEL
2ND FLOOR
10810 S. ALAMEDA STREET
22' VAN

FENCED SECURE

PARKING & STORAGE
AREA
NOTE: Staff and storage building is non-cannabis
and not part of DCC licensed premises.

COVER STORAGE
AND PARKING42'X21'
LOCKER ROOM17'X10'
ADMIN OFFICE10'X12'

KITCHEN
BATHUNISEX 8X7'6"
CHANG 5'X6' STAFF BREAK AREA MULTI PURPOSE18'X34''
8x10'

STERILE

CHAMBER
6'-0"
7'-6"
10'-0"
8'-0"
12'-0"
5'-0"
17'-0"
10'-0"

METAL SIDING
WITH
VENTS

METAL SIDING

WITH VENTS

COMPOST
TRASH

RECYCLE
TRASH

SECURITY CAMERA

SYSTEM SERVER
(ALL LICENSES)

ADA BATH

W SHOWER
(UNISEX)6X8'
10' TALL VEHICLE GATE
& PRIVACY FENCE

FOR BUSINESSES SEPARATION

FERTIGATION
ADMIN
OFFICE10'X12'

SUPPLY WAREHOUSENON

CANNABIS
31'X43''
31'-0"

ELECTRICAL PANEL
EXIT
EXIT
CAMERAS LOCATIONS:

NURSERY (N1-4)(N7-19)
NURSERY EXTERIOR (E1-6)
MICRO BUSINESS (C1-12)
NON-CANNABIS (A1-8)

NEIGHBORING TENANT

NOT PART OF HIGHLINE LA

DISTRIBUTION

SECURE RECORDS

NON-STOREFRONT
RETAIL

SECURE RECORDS
N

ELECTRICAL ROOM

NOT PART OF PREMISES
1' 5'
10'
SCALE

HIGHLINE LA

ADMINISTRATION, STAFF & WAREHOUSE
(NON-CANNABIS AREA)
E2
E1
E3
E4
N1
N2
N3
N4
E6
E5
N7
N8
N9
N10
N11
N12
N14
N13
N15
N16
N17
N19
N18
A1
A2
A3
A4
A5
A6
A7
A8
C1
C2
C4
C3
C5
C6
C7
C8
C9
C10 C11
C12
617
LDC Capital Holdings, LLC - Manufacturing, Distribution, Non-store front Retail 618
1 RESOLUTION NO. 2024.XXX

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

CALIFORNIA, APPROVING AMENDED AND RESTATED
DEVELOPMENT AGGREMENT NO. 2019-03
WHEREAS, on April 16, 2019, the City Council entered into a development agreement with NMC Organization, Inc. for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for the property located at 10810-44 Alameda;
WHEREAS, on May 17, 2021, the City Manager under the
authorization granted in Ordinance 1565-A section 4-.34.7, entitled “Transfer or Change in Ownership or Location”, approved the inclusion of an additional licensee, Highline LA, LLC, with legal or equitable interest. This administrative approval resulted in NMC Organization, Inc. and Highline LA, LLC each owning a fifty percent (50%) ownership interest in Development Agreement No. 2019-03;
WHEREAS, on April 25, 2023, LDC Capital Holdings, LLC applied for an administrative approval for an ownership change with NMC Organization Inc which would transfer NMC Organization
Inc.’s ownership interest to LDC Capital Holdings, LLC; WHEREAS, on July 31, 2023, the City approved the request for a change of ownership administratively resulting in LDC Capital Holdings, LLC securing a fifty percent (50%) ownership interest in Development Agreement No. 2019-03;
WHEREAS, Licensees subsequently applied for an amendment to Development Agreement No. 2019-03 to allow for additional uses and to alter the floor plan increasing the square footage as seen in the attached exhibits and as noted in the amended development agreement 2019-03; 619
2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF

LYNWOOD, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE,
DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. That based upon staff presentations, reports, public testimony, and other matters presented to the City Council during its consideration of this matter, the foregoing recitals are true and correct and incorporated as substantive findings of this Resolution.

SECTION 2. That the City Council of the City of Lynwood approves Amended and Restated Development Agreement No. 2019-03 at 10810-44 Alameda Street in the City of Lynwood in a form approved by the City Attorney;
SECTION 3. Authorize the City Manager to execute the Amended and Restated Development Agreement for and on behalf of the City of Lynwood.

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

SECTION 5. The City Clerk shall certify to the adoption of this Resolution.

SECTION 6. This Resolution shall take full force and effect immediately upon adoption by the City Council.

PASSED, APPROVED, AND ADOPTED this 7th day of Mat 2024.

CITY OF LYNWOOD
___________________________
Jose Luis Solache, Mayor
620
3 ATTEST:
_______________________ ___________________________
Maria Quinonez, City Clerk Ernie Hernandez, City Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_______________________ ___________________________
Noel Tapia, City Attorney Gabriel Linares, Director of
Community Development
621
622
623
624
625
626
627
628

Page 1 of 31 ends

and Delivery Amended and Restated Development Agreement

COMMERCIAL CANNABIS

DEVELOPMENT AGREEMENT
Amended and Restated Development Agreement No. 2019-03
This Amended and Restated Development Agreement (Agreement”) is made by and between and among the City of Lynwood ("City") and LDC Capital Holdings, LLC (formerly known as NMC Organization, Inc.) and Highline LA, LLC shall be collectively referred to as “Licensees” herein), as required by Section 4-34-5 of the Lynwood Municipal code setting forth the terms and conditions under which Licensees shall operate a commercial cannabis cultivation, manufacturing, distribution and delivery facility (the "Project") pursuant to its Permits that are in addition to the requirements of Article 4-34 of the Lynwood Municipal code, including, but not limited to, public outreach and education, community service, payment of fees and other charges as set forth or referenced herein, and such other terms and conditions as will protect and promote the public health, safety, and welfare. The requirements set forth in Ordinance Nos. 1688 and 1565-A, Article 4-34 of the Lynwood Municipal Code, and the Administrative Regulations adopted by the City Council of the City of Lynwood are incorporated herein by reference. All subsequent references to "municipal code" mean the Lynwood Municipal Code.

RECITALS
WHEREAS, on April 16, 2019, the City Council entered into a development agreement with NMC Organization, Inc. for a commercial cannabis cultivation, manufacturing, distribution, and delivery facility for the property located at 10810-44 Alameda;
WHEREAS, on May 17, 2021, the City Manager under the authorization granted in Ordinance 1565-A section 4-.34.7, entitled “Transfer or Change in Ownership or Location”, approved the inclusion of an additional licensee, Highline LA, LLC, with legal or equitable interest. This administrative approval resulted in NMC Organization, Inc. and Highline LA, LLC each owning a fifty percent (50%) ownership interest in Development Agreement No. 2019-03;
WHEREAS, on April 25, 2023, LDC Capital Holdings, LLC applied for an administrative approval for an ownership change with NMC Organization Inc which would transfer NMC Organization Inc.’s ownership interest to LDC Capital Holdings, LLC;
WHEREAS, on July 31, 2023, the City approved the request for a change of ownership administratively resulting in LDC Capital Holdings, LLC securing a fifty percent (50%) ownership interest in Development Agreement No. 2019-03; WHEREAS, Licensees subsequently applied for an amendment to 629

Page 2 of 31 ends

and Delivery Amended and Restated Development Agreement Development Agreement No. 2019-03 to allow for additional uses and to alter the floor plan increasing the square footage;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the City and Licensees do hereby agree as follows:

1. Government Code and Municipal Code Required Elements a. Description of Property. Land situated in the City of Lynwood, County of Los Angeles, State of California, described as APN 6170-003-034, APN 6170-003- 035, APN 6170-003-036, and APN 6170-003-037, whose street address is 10810-44 Alameda Street in the City of Lynwood.
b. Licensees and Other Person with Legal or Equitable Interest.

Licensees: LDC Capital Holdings, LLC
220 Newport Center Drive, Unit 11
Newport Beach, CA 92660
Highline LA, LLC
10810-44 Alameda Street
Lynwood, California 90262
c. Permitted Uses. City has verified that the subject property may be used as a commercial cannabis facility as presently authorized under Article 4-34 of the municipal code, and for any other use as authorized under applicable provisions of the municipal code ("Permitted Use"). Although Chapter 25 does not specifically identify commercial cannabis facilities as permitted uses in any zoning district, such uses are similar to other listed uses, including, but not limited to, medical services - clinics, offices, laboratories; garden center/plant nursery; food and beverage manufacturing; and agricultural products processing; and, therefore, commercial cannabis facilities are allowed uses in the same zoning districts in which such similar uses are allowed under Chapter 25 of the municipal code. Licensees are permitted to operate the following uses respectively:

LDC Capital Holdings, LLC:

Manufacturing (2,072 sq. ft), Distribution (817 sq. ft.) and Non-store front Retail Distribution (463 sq. ft.), Building gross area (4,850 sqft) Highline LA, LLC
Cultivation (6,144 sq. ft.), Micro-Business (3,545 sq. ft.) and Non-store front Retail Distribution (220 sq. ft.), Building gross area (14,496 sqft) 630

Page 3 of 31 ends

and Delivery Amended and Restated Development Agreement d. Zoning. Licensees shall guarantee that all activities conducted under this Agreement and under the Permits shall comply with the City's municipal code, including the zoning ordinance and any and all development and construction requirements contained therein. Licensees shall not conduct any business under this Agreement or under the Permits without having obtained all necessary permits, licenses, and approvals from the City. e. Reservation or Dedication of Land for Public Purposes. Sufficient roadway, sidewalk, and utility easements shall be reserved or dedicated to City for such purposes.

2. Term
This Agreement shall start on the date, on which all parties have executed it, or 30 days after final approval by the City Council, whichever is sooner, and it shall remain in full force and effect until March 31, 2029, as long as such use is not abandoned or dormant for a period of more than six (6) months. If the City determines the use is abandoned or dormant for more than six months, the City may begin proceedings to terminate this Agreement pursuant to Article 15 of this Agreement. In addition, the Licensees must complete the previously mandated five (5) year Performance Review, no later than June 30, 2024.

Licensees may apply for an extension of the term by submitting an application no less than six months before the date of termination.

3. Licensees’ Site and FloorPlans
a. The Licensees’ site plan and floor plan for the facility will be submitted for approval and must be approved before any building permit is issued and before the Permits shall be valid. The parties agree and understand that due to the time required for the completion of necessary surveys including approvals from the Los Angeles County Fire Department and Building and Safety, the specific design may change in which case all revised site and floor plans shall be provided to the City at the earliest possible time. b. A preliminary landscape plan will be prepared and reviewed and approved by the Community Development Director as part of the design review process, to the extent required by the Lynwood Municipal Code. A final landscape plan shall be prepared and submitted in conjunction with building and site improvement plans prior to issuance of building permits for construction activities, to ensure final plans are in full compliance with the Lynwood Municipal Code. An exterior signage plan will be prepared and reviewed and approved by the Community Development Director in accordance with the procedures and requirements of Article 70 of Chapter 25 of the municipal code.
631

Page 4 of 31 ends

and Delivery Amended and Restated Development Agreement

4. Facility Operations
a. Standard Operating Procedures. Licensees are Corporations that will comply with all relevant California State laws and local ordinances, as may be amended from time to time and in accordance with Section 1(c) of this Agreement, with regard to commercial cannabis manufacturing, distribution, and delivery. See California's Compassionate Use Act (Proposition 215) as codified in Health and Safety Code §11362.5; Senate Bill 420, the Medical Marijuana Program Act (H&S Code §§11362.7 to 11362.83); the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use (2008 Attorney General Guidelines); and the newly enacted Medical Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") set forth in Business and Professions Code Section 26000, et seq., and Assembly Bill 133, which was enacted in September 2017.

During the term of its Permit and the term of this Agreement, Licensees shall lawfully operate in accordance with all state and local laws. Licensees will employ exemplary operating procedures to comply with state and local laws.

The Licensees’ facility will employ safety and security measures as set forth herein for the safety and security of its employees, as well as other individuals in its neighboring community.
b. Security Plan. The issuance of the Permits is conditional upon approval of the proposed security plan by the Los Angeles County Sheriff. The security plan shall include, at a minimum and as appropriate, provisions for video surveillance, perimeter fencing and security, protection of the building(s) from vehicle intrusion, cash handling procedures, product handling and storage procedures, and a professionally monitored alarm system. Equipment and systems used for video surveillance and building alarms will be approved by City.

Video surveillance shall include, at a minimum, all site and facility entrances and access points, all spaces accessible by the public, all secured areas of the facility with restricted access, all interior spaces and rooms where commercial cannabis products are handled and processed, shipping and receiving areas, cash storage areas, and other areas necessary to protect the safety of employees and the public and to ensure commercial cannabis products are received, handled, stored, packaged, shipped, and distributed in compliance with applicable state and local laws and regulations . The video surveillance system shall be web-based with direct access provided to the Los Angeles County Sheriff upon request.

The security system will also include sensors to detect entry and exit from all secure areas, panic buttons in appropriate locations, and a professionally monitored alarm system with glass breakage sensors and motion detectors. 632

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and Delivery Amended and Restated Development Agreement The Licensees will employ properly trained and licensed third-party security personnel to protect the welfare and safety of Licensees’ employees and to ensure public safety to the neighboring community. The Licensees shall use security personnel during hours of operation. Security personnel may be armed so long as proper licensing and insurance requirements are followed and met by the third-party operator providing such security services. c. Fire Department Approval. The Licensees may not operate any facility, and no permit, license, or other approval issued by City shall be valid unless and until the Los Angeles County Fire Department or City Fire Inspector has approved Licensees’ site plan, floor plan, safety plan, and any other plans that require its approval.
d. Possession of Firearms. Except for licensed security personnel approved by the Los Angeles County Sheriff, no person employed by the Licensees shall be in possession of any firearm while on the premises or location without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm. Every such person in possession of a firearm while on the premises or location must provide the City Manager and the Los Angeles County Sheriff, ten days before bringing the firearm onto the premises, with the following:
i. A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess suchfirearm; ii. A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency);
iii. A copy of his or her California driver's license or California identification card; and
iv. Any other information reasonably required by the Los Angeles County Sheriff to show that the individual is in compliance with the provisions of all laws regarding the possession and use of a firearm. e. Employees/Procedures for Inventory Control to Prevent Non-Medical Diversion of Commercial cannabis . Only authorized employees will be permitted to enter the Licensees’ facility. Each employee will have to meet a criminal background investigation conducted by the Los Angeles County Sheriff, which at minimum shall include a LiveScan criminal history check.

Employees may not be denied clearance for any conviction, which would no longer be a felony under California law at the time of the LiveScan criminal history check.
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and Delivery Amended and Restated Development Agreement The Licensees will prohibit the use of cannabis by its employees at its facility, in the immediate vicinity of its facility, and while driving in the course of employment.

Licensees will take all necessary and reasonable steps to prevent the distribution of any of its cannabis products to minors; prevent revenue from the sale or distribution of its cannabis and/or infused products from going to criminal enterprises, gangs and cartels; prevent the diversion of cannabis from California to any other state; prevent state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; prevent violence and the use of firearms in the manufacture and distribution of cannabis; discourage and educate against drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use; disavow growing cannabis on public lands that creates attendant public safety and environmental dangers posed by such illegal uses; and discourage and educate against cannabis possession or use on federal property.
f. Quality Control and Testing. Licensees will utilize quality control measures and testing to ensure only the highest quality of commercial cannabis and infused products will be produced. Licensees will inspect the product to insure its identity and quantity, and will have a testing lab approved by City, perform testing of random samples prior to distribution. Inspection and testing will be conducted by the approved testing lab off-site. Testing standards and procedures shall be in accordance with applicable state law and regulations.

All commercial cannabis products will undergo a quality assurance review prior to distribution to any other commercial cannabis business or delivery to individual customers in order to ascertain its quantity and content. Inventory procedures will be utilized for tracking and taxing purposes by the state.

Licensees will employ an efficient record-keeping system to make transparent its financing, testing, and adverse effect recording, as well as recall procedures. Licensees will employ an efficient record-keeping system that will reflect its financing, testing, and adverse effect recording and product recall procedures.
g. Packing of Commercial Cannabis and Infused Products. All Licensees’ commercial cannabis products will be packaged and labeled as required by Section 26071, et seq., of the California Business and Professions Code and applicable requirements and regulations issued by the State of California pursuant thereto. In addition to those packaging and labeling requirements, and packaging and labeling requirements set forth in Licensees’ Permit application, as amended or supplemented, all commercial cannabis products shall be packaged, when boxed for distribution, in an opaque childproof container which shall contain a label or be accompanied by a 634

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and Delivery Amended and Restated Development Agreement leaflet or inset that states, at a minimum:
i. The name, address and telephone number of the commercial cannabis dispensary facility or licensed distribution company to which the commercial cannabis product is distributed, sold, or transferred; ii. The amount of commercial cannabis in the container; and iii. The date the commercial cannabis was transferred to a commercial cannabis dispensary facility or licensed Distribution Company.

Licensees intend to produce infused products and will secure any approval from the County of Los Angeles Health Department required for manufacturing and handling such products. Licensees infused products will not be produced, manufactured, stored or packaged in private homes. All Licensees commercial cannabis infused products shall be individually wrapped at the original point of preparation.
h. Delivery. Licensees may sell and deliver manufactured cannabis products to individual customers, as long as such activity is consistent with and permitted under state law, and Licensees have a valid state license therefor.

As long as such products are sold and delivered to individual customers, and no in-person sales occur at the Licensees’ facility, such activity shall not constitute a dispensary under the municipal code. Nothing in this Section 4(h) shall be read to conflict with nor supersede the language in Section 1(c) of this Agreement.
i. Point of Sale Tracking System. Licensees will maintain an inventory control and reporting system that accurately documents the location of cannabis products from inception through distribution or delivery, including descriptions, weight, and quantity. The inventory control and reporting system shall comply with the track and trace program required by Section 26067, et seq., of the California Business and Professions Code and regulations issued thereunder.

Each Licensee will employ an electronic revenue tracking and merchant verification system known as "Veritil", which shall be approved by City, for all point of donation/sales tracking from seed or inception to product distribution to other licensed commercial cannabis facilities or delivery to individual customers or otherwise in compliance with state and local law in accordance with Section 1(c) of this Agreement. Such approved system will track in real time all Licensees’ commercial cannabis products, each edible, harvested flower, and/or manufactured concentrate, as well as gross sales (by weight and sale) and will have the capacity to produce historical transactional data in accordance with the City's requirements.
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and Delivery Amended and Restated Development Agreement j. Record Keeping. Licensees will maintain records for all cultivated or manufactured commercial cannabis and/or infused products. Licensees will comply with all records-keeping responsibilities that are set forth in Municipal Code Section 4-34-10, including complete and up-to-date records regarding the amount of commercial cannabis cultivated, produced, manufactured, harvested, stored, or packaged at Licensees’ facility.
k. Processing, Handling, Storing, and Distribution of Commercial Cannabis and Related Products. Commercial cannabis manufacturing, handling, storing, processing, and distribution shall be concealed from public view at all stages of growth and processing, and there shall be no exterior evidence of manufacturing, processing, or distribution occurring at the premises from a public right-of-way or from an adjacent parcel. Commercial cannabis manufacturing, handling, storing, processing, or distribution shall not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to use or storage of materials, processes, products, or wastes.

Licensees will store its commercial cannabis and/or commercial cannabis products in a locked safe room with T-card identification (or similar security system approved by the City Manager) access for management only. The safe room will be constructed of fire-rate walls with cameras installed to view all entries and exits from the safe room, as well as all other activities performed within Licensees’ facility. Licensees will not conduct outdoor operations except as related to lawful delivery and transportation of commercial cannabis and infused products. Licensees will not store commercial cannabis or related products in its delivery vehicle outside normal operating hours of the facility.

Commercial cannabis products will be sold or distributed only to licensed dispensaries or licensed distribution companies in California, or otherwise in compliance with state and local law in accordance with Section 1(c) of this Agreement. If Licensees have a delivery permit, Licensees may sell cannabis products that are properly packaged and labeled directly to individual customers. Excess or contaminated product will be securely stored on-site until it is properly disposed. Disposal may include composting, incineration, land-fill disposal through the local waste management hauler, or other disposal methodology in accordance with state and county health and safety codes and regulations.

I. Odor Control. All structures shall have ventilation and filtration systems installed that prevent commercial cannabis plant odors from exiting the interior of the structure. The ventilation and filtration system shall be approved by the Building Official and City Manager and installed prior to commencing manufacturing within the allowable structure. Facility air intake, 636

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and Delivery Amended and Restated Development Agreement exhaust, and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems will be utilized as necessary for effective odor control and management.
m. Description of Banking Plan. Licensees will seek to open a bank account under the name of Licensee or its associated management company to provide transparency for funds received, operational costs, including payroll, tax payments to the state and federal governments, among others. Should a bank account not be forthcoming, the Licensees will purchase and install safes to secure all daily funds received. Licensees will not accept personal checks.
n. Transportation Plan. Licensees will comply with all state and local law regarding transportation, including the rules governing delivery service.

Licensees will retain a list of names and cellular contact numbers for all employees engaged in transportation of commercial cannabis products and provide it to the applicable oversight authority, keeping the list current and up to date.

Licensees will keep complete and up-to-date records documenting each transfer of commercial cannabis to other lawful licensed entities, including the amount provided, the form or product category in which the commercial cannabis was provided, the date and time provided, the name of the employee making the transfer, the name and address of the other lawful licensed entities to whom delivery is made, and the amount of any related donation or other monetary transaction.

5. Community Relations, Employment. and Wages
a. Public Outreach and Education Program. The Licenseesshall create an effective public outreach to City of Lynwood's community, including but not limited to outreach and interface with public and private schools, youth organizations, religious organizations, health care providers, drug abuse treatment providers, and mental health and drug counseling providers.

The Licensees will coordinate and cooperate with City and other Licensees of commercial cannabis facilities located within City of Lynwood in the establishment and implementation of appropriate public outreach and education programs. The public outreach and education programs shall be approved by City.

The public outreach and education program shall provide a detailed description of the Licensees’ intentions with regard to public outreach and education, including but not limited to the following: what schools or programs Licensees will work with; what types of materials and information will be provided; how much time Licensees’ personnel expect to spend on 637

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and Delivery Amended and Restated Development Agreement these activities; and how much money Licensees expect to spend on an annual basis.
b. Comm unity Benefits Program. The Licensees will coordinate and cooperate with City and other Licensees of commercial cannabis facilities located within the City of Lynwood in the establishment, implementation, and funding of a community benefits program which could include such items as new community recreation facilities, expansion and/or improvement to existing facilities or other physical improvements that provide a benefit to the community, support of holiday and special community events , and support of local public service and special districts and organizations. This community benefits program may be implemented by a foundation or other association of commercial cannabis facility Licensees issued Permits by City.

City and the public will participate in the decision-making process for identifying and prioritizing community needs and benefits, and identifying appropriate projects to be funded by the entity implementing this community benefits program. All projects under the community benefits program must be approved by City. Licensees shall not be required to pay a separate fee for this Program.
c. Designation of Persons Respo nsible for Community Relations . At the time of this Agreement , Licensees’ Managing Agent/General Manager will be responsible for community inquiries and complaints and on-site during normal business hours.
d. Interface with Los Angeles County Sheriff . Licensees’ general manager(s) will interface with the Los Angeles County Sheriff to ensure its operation complies with state and local laws and regulations.
e. Local Recruitment, Hiring, and Training Programs. Licensees are committed to making a good-faith effort to recruit, hire, and train City residents for employment by Licensees. A good-faith effort means Licensees will take the following or similar actions to recruit and employ City residents: 1) Contact local recruitment sources to identify qualified individuals who are City residents, 2) Advertise for qualified City residents in trade papers and newspapers of general circulation in the area, and 3) Develop a written plan to recruit and employ City residents as a part of its workforce.

For any construction-related work valued at $25,000 or more to be undertaken by Licensees at the Premises and for which Licensees will solicit one or more bids from contractors, Licensees agree to solicit bids from one or more qualified Local Contractors, and, for each applicable trade, from one or more qualified Local Subcontractors, provided that Licensees are able to identify one or more qualified Local Contractors, and, for each applicable trade, one or more qualified Local Subcontractors. In evaluating a bid from a Local Contractor or a Local Subcontractor and comparing it to bids from 638

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and Delivery Amended and Restated Development Agreement non-Local Contractors or non-Local Subcontractors, Licensees shall grant such Local Contractors and Local Subcontractors a preference equal to five percent (5%) (i.e., solely for purposes of comparing a Local Contractor's or Local Subcontractor's bid to a non-Local Contractor's or non-Local Subcontractor's bid, the bid from the Local Contractor will be reduced by 5%, but the reduction does not affect the price Licensees would be required to pay the Local Contractor or Local Subcontractor if it is awarded the contract).

Whether a Local Contractor or Local Subcontractor is qualified for particular construction work is to be determined by Licensees in the exercise of Licensees’ judgment based on such Local Contractor's or Local Subcontractor's experience and references, in each case to the extent known or made available to Licensees. Nothing in this paragraph requires Licensees to award a contract to the lowest bidder or to a Local Contractor or a Local Subcontractor. However, if (i) Licensees obtain a bid from a Local Contractor or a Local Subcontractor, (ii) the local bidder is qualified for the job being bid, and (iii) its bid price (taking into account the 5% preference and all other factors used to evaluate bid prices) is lower than (or equal to) the bids from non-local bidders, then Licensees shall award the contract to the local bidder. As used herein, a "Local Contractor" or "Local Subcontractor" is a contractor or subcontractor, respectively, whose principal place of business is within the City or whose principal owner resides in the City.
f. Living Wages. Licensees agree to pay all employees of the Facility a Living Wage. A "Living Wage" is the higher of whatever Licensees currently pays its employees for similar work elsewhere in the State of California, or the following: 150% of the California State minimum wage, which as of January 1, 2024 is $23.64. Such wage shall increase on January 1 of each subsequent year at the same rate as the California State minimum wage increases, or according to the Consumer Price Index for Los Angeles County, for the quarter ending September 30 of the preceding year, whichever is higher.
g. Full-time Work. Licensees shall make its best efforts to fill every position with a full-time employee. However, at no time shall Licensees have a labor force that is composed of less than 75% full-time employees. Licensees agree to provide to its eligible employees leave benefits, health and wellness benefits and other employee benefits to the extent such benefits are required to be paid for by Licensees under applicable state and federal employment laws.

6. Indemnification of City from Liability
a. Pursuant to City's requirement, Licensees will indemnify City from any claims, damages, injuries, or liabilities of any kind associated with the registration or operation of Licensees’ commercial cannabis facility or the 639

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and Delivery Amended and Restated Development Agreement prosecution of Licensees’ facility or its Licensees, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or state laws.
b. Licensees agree to defend, at its sole expense, any action against City, its agents, officers, and employees related to the approval or issuance of the Permit and this Agreement.
c. Licensees agree to reimburse City for any court costs and attorney fees that City may be required to pay as a result of any legal challenge related to City's approval or issuance of Permits or this Agreement. City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the holder of the Permits or this Agreement.

7. Fees, Costs, and Future Taxes
a. Fees. Licensees agree to pay all permit fees and charges referenced in Section 4-34-11 of the municipal code, in the amounts adopted by the City Council by resolution, as well as any fees set forth in this Agreement. Permit application, processing, and renewal fees shall be due and payable at the time application is made.
b. Costs. Licensees agree to reimburse City for all additional costs of City resulting from the operation of a commercial cannabis facility authorized under Article 4-34 of the municipal code and the administrative regulations.

Reimbursement to City for such costs shall be due and payable upon demand.
c. Operating Fees. The Licensees agree to pay to City, to enable City to promote, protect, and enhance the healthy, safety, and welfare of the community and its residents and its quality of life, the fees contained in Ordinance No. 1565-2. Said fees including the following:
i. the higher of the following: an annual fee of two percent (2.0%) of gross receipts from manufacturing activities; or a sum that shall be set at twenty thousand dollars ($20,000) during the first year of operations and shall rise in increments of twenty thousand dollars each succeeding year until it reaches the maximum of one hundred forty thousand dollars ($140,000.00); whichever is greater; and ii. an annual fee of one and one-half percent (1.5%) of gross receipts from distribution/transportation of product for anyone other than Licensees.
iii. an annual fee of two and one-half percent (2.5%) of gross receipts 640

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and Delivery Amended and Restated Development Agreement from delivery activities.
iv. an annual fee of $10.00 per square foot of cultivation area (canopy). d. Licensees agree to compensate City for the increased demand on City services, infrastructure, and utilities; local traffic demands; and increased City review and oversight by the Los Angeles County Sheriff, the Planning Division, and the Code Enforcement Division of the operations of Licensees’ facility, as a portion of the assessed Cost Recovery Fee discussed in Article 8 below. The Licensees understand and agree the determination of the required per-square-foot fee will consider such factors as the size, design, layout, operation, and security plan for the facility; potential adverse effects on the community; and the allocation of City services and staff time to oversee the operation of the facility.
e. The Licensees understand and agree that the fees set forth above shall be paid in a manner and in accordance with a payment schedule agreed to by City and Licensees, in intervals of no more than three months. Payment shall be in equal installments paid quarterly commencing at the end of the first quarter after the effective date of the Permits which shall be no sooner than the date a certificate of occupancy is issued for the subject premises. f. If Licensees make any changes to the interior layout of the facility that increases the amount of space allocated to those uses to which the per- square foot fee applies, Licensees shall notify City of such changes at least fourteen (14) calendar days prior to making such changes, and the per- square-foot fee shall be modified accordingly. If Licensees fail to give City notice as required herein, Licensees shall be responsible for paying to City a per-square-foot fee based on any increase in the amount of space allocated to those uses to which the per square-foot fee applies retroactive to the date the Permit became effective.

8. Cost Recovery Fee
City shall assess to Licensees fees to recover City's reasonable processing and monitoring costs relating to Licensees’ business upon issuance of Licensee's Manufacturing, Distribution, and Delivery Permits, or any Additional Permits ("CRF"). The City shall submit sufficient information to Licensees of City's total number of hours required to process their Application or monitor their authorizations. CRFs are separate and apart from any fees set forth in Article

7. a. Process ing Fees. Processing fees for the Application are based upon the direct and indirect costs that City incurs in reviewing the Application. The processing fees for the Application shall be based only on costs that are necessary for processing the Application and implementing the Ordinance, 641

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and Delivery Amended and Restated Development Agreement including staff time, legal fees, and consultant fees. "Necessary for" means that but for the Application, the costs would not have been incurred. The processing fee shall not include costs for other City management objectives, unless they are necessary for processing the Application. b. Monitoring Fees . Monitoring fees for the Manufacturing, Distribution, and Delivery Permits are based upon the direct and indirect costs City incurs in confirming the use of the Property in accordance with the municipal code, the Ordinance, this Agreement, and the Application. The monitoring fees shall be based only on costs that are necessary for conducting these reviews. "Necessary for" means that but for the Manufacturing, Distribution, and Delivery Permits, or any Additional Permits, the costs would not have been incurred. The monitoring fee shall not include costs for other City management objectives, unless they are necessary for monitoring the Manufacturing, Distribution, and Delivery Permits, or any Additional Permits. c. Billing and Payment. City shall bill Licensees the CRF on the first day of each quarter (March, June, September, and December) with an invoice providing an hourly breakdown of hours expended by City and its representatives. Licensees shall pay the CRF invoice within sixty (60) days of the date the bill for the CRF is received by Licensees. Notwithstanding the foregoing, at no time shall the CRFs exceed Ten Thousand Dollars ($10,000) during a given year, except that the first year may be as high as twenty thousand dollars ($20,000) because of the costs required to set up the application process and review the applications.
d. Disputes. If Licensees disagree with the dollar amount provided by City on the CRF invoice, Licensees may submit a written request before the disputed fee is due for a substitution of alternative CRF invoice to the immediate supervisor of the City representative who determined the CRF invoice. The written request must include supporting documentation. After review of Licensees’ written request, Licensees and City shall work, in good faith to resolve Licensees’ written request. The dispute shall be decided in favor of Licensees if City does not respond to the written request within thirty (30) days of receipt.

9. Additional Licensees Obligations
a. Reporting of Gross Receipts from Operations
i. Quarterly Receipts. No later than 15 days after the last day of each subsequent quarter during the term hereof, Licensees shall deliver to City a report (the "Quarterly Report") showing (i) Gross Receipts from Operations for the immediate prior quarter received by Licensees, and a cumulative total of all amounts of Gross Receipts from Operations received by Licensees for the calendar year, (ii) a calculation of the 642

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and Delivery Amended and Restated Development Agreement quarterly payment due to City for the prior quarter, and (iii) a calculation of the cumulative total of all quarterly payments for the calendar year.
ii. Statement of Receipts. Licensees shall keep complete, accurate and appropriate books and records of all receipts from operations in accordance with generally accepted accounting principles. For purposes herein, "books and records" shall mean all bookkeeping or accounting documents Licensees utilize in managing its business operations relating to the Project. Such books and records, as well as all other relevant documents as City shall reasonably require, shall, upon reasonable written notice, be open for inspection by City, its auditors or other authorized representatives. If at any time during the term such books and records prove inadequate in the reasonable judgment of City to record the Gross Receipts from Operations as herein required, Licensees shall, upon the written request of City, procure and maintain such books and records as shall be of a character and form adequate for such purpose. City shall have the right to audit and examine such books, records and documents and other relevant items in the possession of Licensees, but only to the extent necessary for a proper determination of Gross Receipts from Operations, and all such books, records, documents and other items shall be held available for such audit and examination. Upon request by City, Licensees shall make all such books, records and documents available to City, and provide removable copies thereof, within thirty (30) of the date of City's request. The cost for any audit shall be shared equally by the Parties. Licensees shall preserve such books, records, documents, and other items in Lynwood for a period of not less than seven (7) years for the purpose of auditing or re-auditing these accounts upon reasonable notice; except that, if an audit is made within the seven-year period and Licensees claim that errors or omissions have occurred, the books and records shall be retained and made available until those matters are resolved. City shall keep strictly confidential all statements of revenue and other financial documents furnished by the Licensees and all other information concerning Licensees’ operation of the Premises obtained by City as a result of the inspection audit and examination privileges of City hereunder, except as otherwise required by law. If City receives a request for such information pursuant to the Public Records Act (California Government Code Section 6250, et seq.), City shall provide Licensees notice of any such request and shall refuse to disclose such information unless required to do so pursuant to the Public Records Act. Within seven (7) years after the receipt of any statement of receipts under this Agreement, City at any time shall be entitled to carry out an audit of such revenue either by City or agent to be designated by City. If it shall be determined as a result of such 643

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and Delivery Amended and Restated Development Agreement audit that there has been a deficiency in any payment due under this Agreement made on the basis of such statement, then such deficiency shall become immediately due and payable. If such statement of revenue for the relevant year shall be found to have understated receipts by more than two percent and City is entitled to any additional payment as a result of said understatement, then Licensees shall, in addition, pay all of City's reasonable costs and expenses connected with such audit, including the expense incurred in retaining such agent; otherwise City shall bear the cost and expense of such audit. iii. Copies of Tax Filings. Upon reasonable request, Licensees shall provide City with copies of any reports Licensees are required to provide to the County of Los Angeles or the State of California for sales, use, or other tax purposes. City will take reasonable precautions to maintain the confidentiality of those financial records. b. Applicability of Future Revenue Mechanisms. During the term of this Agreement, if City imposes an alternative revenue mechanism specifically related to cannabis operations (e.g., a cannabis tax), Licensees agree to pay to City the greater of the payment required under such alternative revenue mechanism or the payment required by this section. As used in this section, “alternative revenue mechanism" does not include taxes, fees, or assessments levied on or collected from both cannabis and non-cannabis operations. Payments required by revenue mechanisms that are not limited to cannabis operations shall be in addition to, and not in lieu of, payments under this section.

10.Insurance and Indemnity
a. Insurance. Licensees shall require all persons doing work on the Project, including its contractors and subcontractors (collectively, "Licensees" for purposes of this Article 10 only), to obtain and maintain insurance of the types and in the amounts described in this section and its subsections with carriers reasonably satisfactory to City.
b. General Liability Insurance. Licensees shall maintain commercial general liability insurance or equivalent form with a limit of not less than Two Million Dollars ($2,000,000) (or as otherwise approved, in writing, by City) per claim and Four Million Dollars ($4,000,000) each occurrence. Such insurance shall also:
i. Name City, its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives as "Additional Insureds" by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above - 644

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and Delivery Amended and Restated Development Agreement listed additional insured.
ii. Be primary with respect to any insurance of self -insurance programs covering City, its officials, employees, agents, and representatives.
iii. Contain standard separation of insured provisions. c. Automotive Liability Insurance. Licensees shall maintain business automobile liability insurance or equivalent form with a limit of not less than Two Million Dollars ($2,000,000) per claim and Four Million Dollars ($4,000,000) for each accident. Such insurance shall include coverage for owned, hired, and non-owned automobiles. Such insurance shall also:
i. Name City, its elected and appointed officials, boards, commissions, officers, agents, employees, and representatives as "Additional Insureds" by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitations on the scope of its protection afforded to the above - listed additional insureds.
ii. Be primary with respect to any insurance or self -insurance programs covering City, its officials, employees, agents, and representatives.
iii. Contain standard separation of insured provisions. d. Workers ' Compensation Insurance. Licensees shall take out and maintain during the term of this Agreement, workers' compensation insurance for all of Licensees’ employees employed at or on the Project, and in the event any of the work is subcontracted, Licensees shall require any general contractor or subcontractor similarly to provide workers' compensation insurance for such contractor's or subcontractor's employees, unless such employees are covered by the protection afforded by Licensees. In case any class of employee engaged in work on the Project is not protected under any workers' compensation law, Licensees shall provide and shall cause each contractor and subcontractor to provide adequate insurance for the protection of employees not otherwise protected. Licensees hereby indemnifies City for any damage resulting from failure of Licensees, its agents, employees, contractors, or subcontractors to take out or maintain such insurance.

Workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than One Million Dollars ($1,000,000) each accident shall bemaintained.
e. Other Insurance Requirements. Licensees shall do all thefollowing:
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and Delivery Amended and Restated Development Agreement i. Prior to taking any actions under this Agreement, furnish City with properly executed certificates of insurance that clearly evidenced all insurance required in this Article, including evidenced that such insurance will not be canceled, allowed to expire, or be materially reduced in coverage without thirty (30) days prior written notice to City.
ii. Provide to City, upon request, and within seven (7) calendar days of said request, certified copies of endorsements and policies, and properly executed certificates of insurance evidencing the insurance required herein.
iii. Replace or require the replacement of certificates, policies and endorsements for any insurance required herein expiring prior the termination of this Agreement.
iv. Maintain all insurance required herein from the Effective Date of this Agreement to the earlier of the expiration of the term or the mutual written termination of this Agreement.
v. Place all insurance required herein with insurers licensed to do business in California with a current Best's Key Rating Guide reasonably acceptable to City.
f. Indemnity. Licensees agree to indemnify, defend , and hold City , and its elected and appointed council , boards, commissions, officers, agents, employees, consultants, and representatives, harmless from any and all claims costs and liability for any personal injury or property damage which may arise as a result of any actions or negligent omissions by Licensees or Licensees’ contractors, subcontractors, agents, or employees in connection with the construction, improvement, or operation of the Project.

11. Termination
a. Recordation upon Termination. Upon termination of this Agreement, City may record a notice of such termination, but this Agreement shall be of no further force or effect except as otherwise set forth in thisAgreement whether or not said notice is recorded.
b. TerminationUpon Failure To Obtain State License. This Agreement shall terminate upon Licensees failure to obtain a State License to operate a Permitted Use at the Licensed Premises, and Licensees shall have no obligation to remit further fees beyond the quarter in which Licensees fail to obtain a State License. Any fees owed by Licensees shall be prorated to reflect the portion of the quarter during which Licensees were legally entitled 646

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and Delivery Amended and Restated Development Agreement to operate.
c. Effect of Termination on Licensee's Obligations. Termination of this Agreement shall eliminate any further obligation of Licensees to comply with this Agreement, or some portion thereof, if such termination relates to only part of the Site or Project. Termination of this Agreement, in whole or in part, shall not, however, eliminate the rights of Licensees to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.
d. Effect of Termination on City's Obligations. Termination of this Agreement shall eliminate any further obligation of City to comply with this Agreement, or some portion thereof. Termination of this Agreement shall not, however, eliminate the rights of City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.

12. Survival After Termination
The rights and obligations of the Parties set forth in Article 14, Article 21, Section 23(e), and Section 23(g), and any right or obligation of the Parties in this Agreement, which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.

13. Resources Efficiency
The design of the facility shall include significant water and energy conservation measures to minimize resource consumption to the extent feasible. The design shall incorporate solar, wind, high efficiency lighting, and water recycling systems and technology to the extent feasible. High efficiency LED lighting systems for the exterior lighting will be used. All water mixed with nutrients will be recycled. Storm water shall be collected and recycled to the extent feasible.

14. Standard Conditions for Construction
During any on-site construction activities related to development of the project site and any buildings thereon, or renovation or remodeling of existing buildings, Licensees and Landlord shall comply with all applicable terms and conditions of City's Standard Conditions for Construction. Beginning on the date a Certificate of Occupancy is issued for the Project, or when operations begin, whichever is earlier, the Project shall comply with the applicable parking standards established by the City for cannabis activities.

15.Defaults and Remedies
a. Default by Licensees. It is acknowledged by the parties that City would not 647

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and Delivery Amended and Restated Development Agreement have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure or delay by Licensees to perform any term or provision of this Agreement shall constitute a default. In the event of alleged default or breach of any terms or conditions of this Agreement, City shall give the other party not less than thirty (30) day notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured, and during any such thirty (30) day period, Licensees shall not be considered in default for purposes of termination or institution of legal proceedings. Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion
If Licensees fail to cure a default, or fails to commence such cure, following notice and expiration of the prescribed period in the preceding paragraph, City, at its option, may begin proceedings to terminate this Agreement after meeting all due process requirements or institute legal proceedings pursuant to this Agreement.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that City shall not be liable in monetary damages, unless expressly provided for this Agreement, to the Licensees, to any mortgagee or lender, or to any successors in interest of the Licensees or mortgagee or lender, or to any other person, and Licensees covenant on behalf of itself and all successors in interest to the Property or any portion thereof, not to sue for damages or claim any damages.
i. For any breach of this Agreement or for any cause of action which arises out of this Agreement; or
ii. For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this Agreement, including, without limitation, any impairment or restriction which Licensees characterizes as a regulatory taking or inverse condemnation; or
iii. Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

Nothing contained herein shall modify or abridge Licensees’ rights or remedies (including its rights for damages, if any) resulting from the exercise 648

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and Delivery Amended and Restated Development Agreement by City of its power of eminent domain. Nothing contained herein shall modify or abridge Licensees’ rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to City and its employees pursuant to the Government Liability Act and all other applicable statutes and decisional law.

Except as set forth in the preceding paragraph relating to eminent domain, Licensees’ remedies shall be limited to those set forth in this Section 14(a), Section 14(b), and Section 14(c).

Notwithstanding anything to the contrary contained herein, City covenants as provided in Civil Code Section 3300 not to sue for or claim any consequential damages or, in the event all or a portion of the Property is not developed, for lost profits or revenues, which would have accrued to City as a result of the development of the Property.
b. Specific Performance. The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other nonmonetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties for the following reasons:
i. Except as provided in Sections 14(a) and 14(e), money damages are unavailable against City as provided in Section 14(a) above. ii. Due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such
implementation, Licensees may be foreclosed from other choices it may have had to use the Property or portions thereof. Licensees have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate the Licensees for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis.
c. Release. Except for those remedies set forth in Sections 14(a), 14(b), and 14(c), Licensees, for itself, its successors and assignees, hereby releases City, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, based or asserted, pursuant to Article 1, Section 649

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and Delivery Amended and Restated Development Agreement 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon City because it entered into this Agreement or because of the terms of this Agreement.

Licensees acknowledge that it may have suffered, or may suffer, damages and other injuries that are unknown to it, or unknowable to it, at the time of its execution of this Agreement. Such fact notwithstanding, Licensees agree that the release provided in this Section 14(c) shall apply to such unknown or unknowable claims and damages. Without limiting the generality of the foregoing, Licensees acknowledge the provisions of California Civil Code Section 1542, which provide:
"A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with thedebtor." Licensees hereby waive, to the maximum legal extent, the provisions of California Civil Code Section 1542 and all other statutes and judicial decisions of similar effect.

Initials Initials
d. Termination of Agreement for Default of City. Licensees may terminate this Agreement only in the event of a default by City in the performance of a material term of this Agreement and only after providing written notice to City of default setting forth the nature of the default and the actions, if any, required by City to cure such default and, where the default can be cured, City has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. e. Attorneys ' Fees and Costs . In any action or proceeding between City and Licensees brought to interpret or enforce this Agreement, or which in any way arises out of the existence of this Agreement or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this Agreement, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court . The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 14(e) include those incurred during any appeal from 650

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and Delivery Amended and Restated Development Agreement an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding.

16. Effect of Licensees’ Default. No building permit shall be issued or building permit application accepted for any structure on the Property after Licensees are determined by City to be in default of the terms and conditions of this Agreement until such default thereafter is cured by Licensees or is waived by City. If City terminates this Agreement because of Licensees’ default, then City shall retain any and all benefits, including money or land received by City hereunder.

17. Third Party Litigation
a. General Plan Litigation. City has determined that thisAgreement is consistent with its General Plan. Licensees have reviewed the General Plan and concurs with City's determination.

City shall have no liability under this Agreement or otherwise for any failure of City to perform under this Agreement, or for the inability of the Licensees to develop the Property as contemplated by the Development Plan, which failure to perform or inability to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law, or that this Agreement or any of City's actions in adopting it were invalid, inadequate, or no in compliance with thelaw.
b. Hold Ha rmless Agreement. Licensees hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Licensees or Licensees’ contractors, subcontractors, agents, or employees' operations under this Agreement, whether such operations be by Licensees, or by any of Licensees’ contractors, subcontractors, agents, or employees operations under this Agreement, whether such operations be by Licensees, or by any of Licensees’ contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Licensees or any of Licensees’ contractors or subcontractors. Licensees agree to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations. c. Indemnification. Licensees shall defend, indemnify, and hold harmless City and its agents, officers, and employees against and from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense , settlement and reasonable 651

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and Delivery Amended and Restated Development Agreement attorneys' fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this Agreement and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; (iii) any claims based on or alleging inverse condemnation by any person or entity with an interest in the Property ; and (iv) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any third party (including a governmental entity or official) challenging the validity of any provision of this Agreement or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding.

Notwithstanding the above, City, at is sole option, may tender the complete defense of any third-party challenge as described herein. In the event City elects to contract with special counsel to provide for such a defense, City shall meet and confer with Licensees regarding the selection of counsel, and Licensees shall pay all costs related to retention of such counsel. d. Environmental Contamination. Licensees shall indemnify and hold City, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of Licensees, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting and acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Licensees, for any violation by Licensees of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Licensees shall defend, at its expense, including attorneys' fees, City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. City may in its discretion participate, at City's expense, in the defense of any such claim, action or proceeding.

The provisions of this Section 15(d) do not apply to environmental conditions that predate Licensees’ use or control of the Property or applicable portion; provided, however, that the foregoing limitation shall not operate to bar, limit or modify any of Licensees’ statutory or equitable obligations as a Licensee or seller of the Property.
e. City to Approve Counsel. With respect to Sections 15(a) through 15(d), City reserves the right to approve the attorney(s) which Licensees select, hire or otherwise engage to defend City hereunder, which approval shall not be unreasonably withheld.
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and Delivery Amended and Restated Development Agreement f. Accept Reasonable Good Faith Settlement. With respect to this Article 15, City shall not reject any reasonable good faith settlement. If City does reject a reasonable, good faith settlement that is acceptable to Licensees, Licensees may enter into a settlement of the action, as it relates to Licensees, and City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgment rendered in connection with such action. This Section 15(f) applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. Licensees and City expressly agree that this Section 15(f) does not apply to any settlement that requires an exercise of City's police powers, limits City's exercise of its police powers, or affects the conduct of City's municipal operations.
g. Survival. The provisions of Sections 15(a) through 15(f) inclusive, shall survive the termination or expiration of this Agreement.

18. California Environmental Quality Act
Licensees and the City are of the belief that the Project is exempt from the California Environmental Quality Act ("CEQA"), however the Licensees shall reimburse City for any and all costs incurred by City related to project review under CEQA as required, Public Resources Code, §§21000-21189.3, and the Guidelines for California Environmental Quality Act, California Code of Regulations, Title 14, §§15000-15387.

If requested by City, the Licensees shall conduct and pay for any required CEQA reviews and analyses. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15332 - In-Fill Development Projects. This exemption applies to projects characterized as in-fill development meeting the conditions described in Section 15332.

19. Rules, Regulations, and Official Policies
Except as otherwise provided in this Agreement, the rules, regulations, and official policies of City governing permitted uses of the land, governing density, and governing the design, improvements, and construction standards and specifications applicable to the development of the Project subject of this Agreement, shall be those rules, regulations, and official policies of City in force at the time of the execution of this Agreement. This Agreement does not prevent City, in subsequent actions applicable to the property, from applying new rules, regulations, and policies which do not conflict with those rules, regulations, and policies applicable to the property as set forth herein, nor does this Agreement prevent City from denying or conditionally approving any subsequent development project application based on such existing or new rules, regulations, or policies.

20. Permit Conditions of Approval
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and Delivery Amended and Restated Development Agreement Licensees shall comply with all conditions of approval of the Permit approved by City Council.

21. Periodic Reviews
This Agreement shall be subject to biannual review . Licensees shall demonstrate good faith compliance with the terms of thisAgreement. If, as a result of such biannual review, City finds and determines, based on substantial evidence, that during the year under review Licensees persistently and willfully breached its obligations under this Agreement the City may terminate or modify this Agreement. If, as a result of such biannual review, City finds and determines, based on substantial evidence, that Licensees (including its owners, employees, and consultants) has engaged in intentional or willfully negligent conduct that has resulted in a total loss of the property or in substantial damage to other properties in the immediate vicinity of the Licensed Premises, the City may require Licensees to pay for any and all damage caused to other properties, and/or may terminate or modify this Agreement. a. Biannual Review. City Council shall review this Agreement biannually, on or before the second anniversary of the Effective Date, in order to ascertain Licensees’ good faith compliance with thisAgreement. During the biannual review, Licensees shall be required to demonstrate good faith compliance with the terms of this Agreement, through submitting an annual monitoring report, records, or equivalent written materials to the Planning Division. The Planning Division may schedule a hearing on the periodic review of the Development Agreement on or following the second anniversary of the Effective Date, but the Licensees have no obligation to compel such hearing, and no implication will be made to Licensees’ detriment if a hearing is not in fact held. The Licensees shall document any request for an extension of the term due to delays beyond the control of Licensees (see Section 23(i), "Force Majeure"). Licensees shall submit an annual review and administration fee deposit not to exceed City's estimated internal and third party costs associated with the review and administration of this Agreement during the succeeding year, consistent with Section 23(j) ("Costs and Fees") below, as a portion of the assessed Cost Recovery Fee discussed in Article 8 of this Agreement. City shall provide the Licensees said estimate a reasonable time in advance of the annual review and administration fee deposit being due. b. Conditional Use Permit. For all intents and purposes, the Permits to be issued under this Agreement shall be treated as if it were a Conditional Use Permit issued to Licensees for the establishment and operation of its business. The operation of the business at all times shall be required to comply with the terms of this Agreement.
c. Special Review. City Council may order a special review of compliance with this Agreement when it has a reasonable belief that such a special review is warranted. The City Manager or his or her designee shall conduct such 654

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and Delivery Amended and Restated Development Agreement special review. During a special review, Licensees shall be required to demonstrate good faith compliance with the terms of this Agreement. The burden of proof on this issue shall be on Licensees.
d. Review Hearing. At the time and place set for the review hearing, Licensees shall be given an opportunity to be heard. If City Council finds, based upon substantial evidence, that Licensees have not complied in good faith with the terms or conditions of this Agreement, City Council may terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of City. The decision of City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.
e. Certificate of Agreement Compliance. If, after a periodic or special review, Licensees are found to be in compliance with this Agreement, and if Licensees requests it, City shall issue a Certificate of Agreement Compliance ("Certificate") to Licensees stating that after the most recent periodic or special review, and based upon the information known or made known to the City Manager and City Council, that (i) this Agreement remains in effect and (ii) Licensees are not in default.

City shall not be bound by a Certificate if a default existed at the time of the periodic or special review, but was concealed from or otherwise not known to the City Manager and City Council, regardless of whether the Certificate is relied upon by assignees or other transferees or Licensees. f. Failure to Conduct Review. City's failure to conduct a periodic review of this Agreement shall not constitute a breach of this Agreement. g. Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by the Licensees, as a portion of the assessed Cost Recovery Fee discussed in Article 8 of this Agreement.

22. Assignment by Licensees
a. Licensees shall not sell, transfer, assign or otherwise dispose of ("Transfer") all or any part of its rights or benefits under this Agreement without the prior written consent of City. Any such Transfer without the prior written consent of City shall be null and void. Any such Transfer shall be effective only if is accomplished in compliance with section 7 of Article 34 of Chapter 4 of the municipal code. The foregoing prohibition does not apply to the delegation or subcontracting of obligations and duties under this Agreement, but no such delegation or subcontract shall in any way limit the Licensees’ responsibility and liability for the performance of all obligations or duties of the Licensees under this Agreement.
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and Delivery Amended and Restated Development Agreement b. The Licensees may not relocate a Licensed Premises without applying for and receiving the City Council's approval, which shall be subject to the procedure set forth in the Development Agreement laws (Government Code section 65684, et seq.)

23. Operating Commercial Cannabis Facility
Any party to this Agreement, or successor in interest thereto, shall not operate a commercial cannabis facility authorized under the municipal code unless:
a. It is the holder of a valid Permit issued by City in accordance with the procedures and requirements of Article 4-34 of the municipal code; and b. At such time as the State of California requires commercial cannabis facilities and businesses to hold a valid license or permit issued by the State of California, it also holds such license or permit, unless, however, such permit or license is not required by the State of California for the type of commercial cannabis facility or business operation that is the subject of this Agreement.

24. Notice
Any notice or communication required hereunder between City and Licensees must be in writing, and may be given either personally, by facsimile (with original forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. If given by facsimile transmission, a notice or communication shall be deemed to have been given and received upon actual physical receipt of the entire document by the receiving Party's facsimile machine. Notices transmitted by facsimile after 5:00 p.m. on a normal business day or on a Saturday, Sunday, or holiday shall be deemed to have been given and received on the next normal business day. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of: (i) actual receipt by any of the addressees designated below as the party to w h o m notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at their addresses set forth below:
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and Delivery Amended and Restated Development Agreement If to City: City of Lynwood
City Manager’s Office
11330 Bullis Road
Lynwood, California 90262
Attention: City Manager
And Alvarez-Glasman & Colvin
13181 Crossroads Pkwy. North
Suite 400 - West Tower
City of Industry, California 91746
Attention: Noel Tapia, Esq.

If to Licensee: LDC Capital Holdings, LLC
220 Newport Center Drive, Unit 11
Newport Beach, California 90262
And Highline LA
10810 Alameda Street,
Lynwood CA\, 90262

25. Miscellaneous Provisions
a. Permit Conditions of Approval. Licensees shall comply with all conditions of approval of the Permit approved by the City Council. b. Amendment or Cancellation . This Agreement may be amended, or canceled in whole or in part, only by the written mutual consent of the parties to thisAgreement or their successors in interest, except that minor amendments that do not affect a substantive provision of this Agreement may be approved by the City Manager. The decision whether a proposed amendment is "minor" shall be in the exclusive discretion of the City Manager.
c. Waiver. Waiver by City of any one or more of the terms or conditions of this Agreement shall not be construed as waiver of any other term or condition under this Agreement.
d. Enforcement. Unless amended or canceled pursuant hereto , this Agreement shall be enforceable by any party hereto, or successor in interest thereto, notwithstanding any subsequent change in any applicable general or specific plan, zoning, subdivision or building regulation, or municipal code amendment adopted by City tha t conflicts with the terms of this Agreement.
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and Delivery Amended and Restated Development Agreement e. Severability. If any part of this Agreement is found to conflict with applicable state laws or regulations, such part shall be inoperative, null, and void insofar as it conflicts with said laws or regulatio ns, or modified or suspended as may be necessary to comply with such state laws or regulations, but the remainder of this Agreement shall continue to be in full force and effect.
f. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual, facsimile, or electronic signature. g. Jurisdiction and Arbitration. The law governing this Agreement shall be that of the State of California. Any suit brought by any party against any other party arising out of the performance of this Agreement shall be filed and maintained in the County of Los Angeles Superior Court. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of thisAgreement to arbitrate, shall be determined by binding arbitration in Los Angeles, California before one arbitrator. Said arbitrator shall be chosen by mutual agreement of the Parties. If the Parties cannot agree on an arbitrator within 30 days of the first notice by either Party of the need for arbitration, each Party shall name one arbitrator, then the two arbitrators shall choose the arbitrator who shall hear the case.
h. Disclaimer. Despite California's commercial cannabis laws and the terms and conditions of this Agreement, any Conditional Use Permit, or any Permit issued pertaining to Licensees or the property specified herein, California commercial cannabis cultivators, transporters, distributors, or possessors may still be subject to arrest by state or federal officers and prosecuted under state or federal law. The Federal Controlled Substances Act, 21 USC§ 801, prohibits the manufacture, distribution, and possession of cannabis without any exemptions for medical use.
i. Force Majeure. If delays are caused by unforeseen events beyond the control of Licensees, such delays will entitle Licensees to an extension of time as provided in this section. Such unforeseen events ("Force Majeure") shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party's control, or any default by City hereunder, which Force Majeure event substantially interferes with the development or construction of the Project. 658

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and Delivery Amended and Restated Development Agreement j. Costs and Fees. Licensees shall be responsible for all of the reasonable and fixed costs associated the Project, including but not limited to costs associated with City's review and processing of the Project, including but not limited to reviewing the Project's entitlements, including all environmental clearance documents, permits, licenses and all documents evidencing compliance with state and local law, and as such Licensees agree to reimburse City and pay any costs and fees associated with processing the Project, as detailed in this Agreement, as a portion of the assessed Cost Recovery Fee discussed in Article 8 of this Agreement.
k. Construct ive Notice and Acceptance. Every person who after the Effective Date and recording of this Agreement owns or acquires any right, title, or interest to any portion of the Site, is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed thisAgreement on the day and year first above written.

City of Lynwood LDC Capital Holdings, LLC
Ernie Hernandez Daniel Mackey
City Manager President
Date: Date:

Highline LA, LLC
APPROVED AS TO FORM:

Evan Bowen
Chief Executive Officer/Owner
Noel Tapia, City Attorney
Date:
659

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Harry Wong, Director of Finance & Administration
SUBJECT:

A RESOLUTION AMENDING THE REVISED ADOPTED FY2024-25
BUDGET
Agenda Item # 9.2.

Recommendation:

Staff recommends that the City Council adopt the proposed Resolution amending the Revised Adopted FY2024-25 Budget.

Background:

On June 26, 2024, the updated second year, or FY2024-25, of the approved biennial budget of FY2023-25 was presented and adopted by Council.

The City Council adopted the Revised
FY2024-25 Budget with a total general fund appropriation and transfers out of $54.2 million.

As part of the budget discussion related to the Revised FY2024-25 Budget the City Council discussed several projects/programs that are being brought forth for consideration of funding by amending the Revised FY2024-25. Staff is now presenting these additional items to Council for you to review and discuss, and deliberate whether any of the new items being considered will be funded.

Discussion and Analysis:

City Council City Council Regular Meeting 660
This evening, the Council will be deliberating whether or not any of the following items warrant funding, thus amending the Revised Adopted FY2024-25 budget:

Dog Park – 15,000-20,000 square feet total size with
separated areas for large and small dogs $ 70,000 Council Chamber Improvement – Working areas for
department heads $ 60,000 Neighborhood Watch Program (NWP) – Post pandemic
rebuild of the NWP $ 50,000 Neighborhood Cleanliness Program (NCP) – Provide roll offs for waste collection, tools and volunteer incentives $ 50,000 Park Safety Pilot Program – Funding for additional, after Hours, security personnel $ 40,000 Tree Planting – additional budget required $ 25,000 Bateman Hall Renovation – Commercial kitchen upgrade $ 600,000 - $1,000,000 Lynwood Park Restrooms – Renovation of indoor
and outdoor restrooms ($500K each x 4)
$ 500,000 - $2,000,000
Total proposed budget amendment

$1,395,000 - $3,295,000
Fiscal Impact:

If the City Council approves all the aforementioned items, the General Fund operating budget would need to be amended by a minimum of $1,395,000, of which $1,255,000 would be defined as one-time expenditures.

Coordinated With:

City Manager's Office
City Attorney
ATTACHMENTS:

City Council City Council Regular Meeting 661
Resolution Amending the Revised Adopted FY2024-25 Budget.pdf Description
City Council City Council Regular Meeting 662
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD A MENDING THE REVISED ADOPTED FISCAL YEAR (FY) 2024 -25 BUDGET

WHEREAS, the City Manager has submitted an amendment to the Revised Adopted Fiscal Year 2024-25 Budget; and

WHEREAS, the City Council has studied the proposed amendment, received public input thereon, and approved same.

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

Section 1. That the budget amendment to the Revised Adopted Fiscal Year 2024- 25 Budget in the amount as approved is incorporated herein by this reference and is hereby approved and adopted in accordance with whatever motion the City Council may make, deem appropriate and adopt.

Section 2. This resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 16th day of July, 2024.

_________________________
Jose Luis Solache
Mayor

ATTEST:

________________________ __________________________
Maria Quinonez Ernie Hernandez
City Clerk City Manager

663
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

________________________ __________________________ Noel Tapia Harry Wong
City Attorney Director of Finance & Administration

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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 16th day of July 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________ Date: _______________________
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. 2024.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 16th day of July 2024.

__________________________ Date: _________________________ Maria Quiňonez,
City Clerk

665

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Maria Quinonez, City Clerk
Nancy Blinzler, Office Assistant
SUBJECT:

NOVEMBER 5, 2024, GENERAL MUNICIPAL ELECTION – BALLOT

INITIATIVE
Agenda Item # 9.3.

Recommendation:

Staff recommends that the City Council approve and submit the attached Ordinance to the County Recorder-Registrar’s Office entitled: “ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD, CALIFORNIA ENACTING A FOR-PROFIT HOSPITAL GROSS RECEIPTS TAX,” and adopt the attached resolutions entitled:
(1) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,

CALLING AND GIVING NOTICE OF THE HOLDING OF A MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE SUBMISSION TO THE VOTERS OF A

QUESTION RELATING TO THE IMPOSITION OF A GENERAL TAX ON THE GROSS RECEIPTS OF FOR-PROFIT HOSPITALS OPERATING WITHIN THE CITY OF LYNWOOD; (2) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE; AND
(3) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA,

SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING A MEASURE FOR THE NOVEMBER 5, 2024, LYNWOOD MUNICIPAL ELECTION AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS.

City Council City Council Regular Meeting 666
Background:

On May 6, 2024, the City of Lynwood received a petition for a citizen’s initiative for a For-Profit Hospital Gross Receipts Tax Initiative. The petitions were circulated between February 15, 2024, and April 25, 2024.

On June 5, 2024, the Los Angeles County-Registrar Recorder/County Clerk’s Office confirmed that they had completed signature verification submitted on May 9, 2024. The City was informed that a total of 5,316 signatures were gathered by proponents and 3,875 signatures were found to be sufficient meeting the required number to place an initiative on the ballot in accordance with Elections Code Sec. 9215.

On Tuesday, November 5, 2024, a ballot measure enacting a for-profit hospital gross receipts tax (“Hospital Tax”) will be considered by voters. If approved by a majority of the electors, the ballot measure will impose a 3% general tax on the privilege of operating a for-profit hospital within the City.

The revenue from the Hospital Tax Proceeds shall be deposited into the City's general fund and may be used for general municipal purposes such as economic growth and development, community services, and recreational opportunities, all of which promote a healthy city.

The ballot language to be considered by voters will be as follows:

Enactment of Hospital Tax to Protect Public Safety and Vital City Services To protect, maintain and enhance vital public safety services, infrastructure needs including streets, utility maintenance, park and recreation services including programs for youth and seniors, and other essential services, shall the City of Lynwood impose a three percent (3%) privilege tax on the gross receipts of for-profit hospitals operating within the City of Lynwood? All funds to be deposited in Lynwood general fund.

Presented for your consideration are several resolutions which will have the effect of calling the election, requesting consolidation of such election with the County of Los Angeles and setting priorities for filing written arguments, rebuttals and directing the City Attorney to prepare an impartial analysis in preparation for the November 5, 2024, General Municipal Election.

Discussion and Analysis:

With approval and adoption of the items presented tonight, the City will submit the resolutions to the Los Angeles County-Registrar Recorder/County Clerk’s Office and ensure that arguments for and against the ballot measure and an impartial analysis of the initiative are submitted to the County- Registrar’s Office by Friday, August 16, 2024. The City Clerk will also ensure that rebuttal arguments are filed with the county elections official for inclusion in the Official Sample Ballot Booklet no later than Tuesday, August 27, 2024, at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments.

Fiscal Impact:

City Council City Council Regular Meeting 667
Resolution Requesting Election Consolidation_Ballot_Measure - FINAL.docx Resolution Setting Priorities for 11.5.24 Ballot Measure - FINAL.docx Resolution Calling for An Election_Ballot Measure_11.5.24 - FINAL.docx Ordinance_For-Profit Hospital Gross Receipts Tax.docx
The cost of consolidating our election with Los Angeles County is based on the estimate of the of March 2024 Primary Election of $116,758.08.

Coordinated With:

City Manager
City Attorney
ATTACHMENTS:

Description
City Council City Council Regular Meeting 668
1 RESOLUTION NO._____

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

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024,

WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE
WHEREAS, a Municipal Election is to be held on November 5, 2024, in the City of Lynwood, for the purpose of submitting to the voters the question relating to the imposition of a general privilege tax on the gross receipts of for-profit hospitals operating within the City of Lynwood; and
WHEREAS, it is desirable that the Municipal Election be consolidated with the Statewide General election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of Los Angeles canvass the returns of the Municipal Election and that the election be held in all respects as if there were only one election.

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

Section 1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a Municipal Election with the Statewide General election on Tuesday, November 5, 2024.

Section 2. That a measure is to appear on the ballot, which requires a majority vote, as follows:

Section 3. That the County election department is authorized to canvass the returns of the Municipal Election. Pursuant to Elections Code 10418 the election shall be regulated and done in accordance with the provisions of law regulating the statewide or special election and held in all respects as if there were only one election, and only one form of ballot shall be used.

Enactment of Hospital Tax to Protect Public Safety and Vital City Services
To protect, maintain and enhance vital public safety services, infrastructure needs including streets, utility maintenance, park and recreation services including programs for youth and seniors, and other essential services, shall the City of Lynwood impose a three percent (3%) privilege tax on the gross receipts of for-profit hospitals operating within the City of Lynwood? All funds to be deposited in Lynwood general fund.

YES
NO
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2 Section 4. That the Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.

Section 5. That the City of Lynwood recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

Section 6. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of Los Angeles.

Section 7. Notice of the election is hereby given. Additionally, the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Section 8. The City Clerk shall certify to the passage and adoption of this City Council Resolution and enter it into the book of original Resolutions.

Section 9. That this Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this _____ DAY OF JULY, 2024. ___________________________
Jose Luis Solache, Mayor
ATTEST:
__________________________
Maria Quiṅonez,
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ _____________________________ Noel Tapia, City Attorney Ernie Martinez, City Manager
670
RESOLUTION NO. ______

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

SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND REBUTTALS REGARDING A MEASURE FOR THE NOVEMBER 5, 2024, LYNWOOD MUNICIPAL

ELECTION AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL

ANALYSIS
WHEREAS, a Municipal Election is to be held in the City of Lynwood, California, on November 5, 2024, at which there will be submitted to the voters the following measure:

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Written arguments for or against shall not exceed 300 words regarding the City measure specified above, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California . The arguments may be changed or withdrawn, until and including the date fixed by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk.

Section 2. The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The Form of Statement to be Filed by Author(s) of Argument(s) shall accompany the argument(s), as required by Section 9600 of the Elections Code of the State of California.

Section 3. The City Council directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.

Enactment of Hospital Tax to Protect Public Safety and Vital City Services
To protect, maintain and enhance vital public safety services, infrastructure needs including streets, utility maintenance, park and recreation services including programs for youth and seniors, and other essential services, shall the City of Lynwood impose a three percent (3%) privilege tax on the gross receipts of for- profit hospitals operating within the City of Lynwood? All funds to be deposited in Lynwood general fund.

YES
NO
671
Section 4. The deadline to submit arguments to the City Clerk for or against the Measure pursuant to this Resolution is declared by the City Clerk to be Friday, August 16, 2024, at 5:00 p.m. Each argument shall not exceed three hundred (300) words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.

Section 5 . Rebuttal Arguments. When the City Clerk has selected the primary arguments for and against each of the City Measures which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of each Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding two hundred fifty (250) words. The rebuttal arguments shall be filed with the City Clerk not later than Thursday, August 26, 2024 at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.

Section 6. That this Resolution shall take effect immediately upon adoption.

Section 7. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

Section 8. Notice of the election is hereby given. Additionally, the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Section 9. The City Clerk shall certify to the passage and adoption of this City Council Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED THIS _____ DAY OF JULY, 2024.

___________________________
Jose Luis Solache, Mayor
ATTEST:
__________________________
Maria Quiṅonez, City Clerk
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APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ _____________________________ Noel Tapia, City Attorney Ernie Martinez, City Manager
673
1 RESOLUTION NO. _____

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

CALLING AND GIVING NOTICE OF THE HOLDING OF A MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE SUBMISSION TO THE

VOTERS OF A QUESTION RELATING TO THE IMPOSITION OF A GENERAL TAX

ON THE GROSS RECEIPTS OF FOR-PROFIT HOSPITALS OPERATING WITHIN THE

CITY OF LYNWOOD
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a Municipal Election shall be held on November 5, 2024; and WHEREAS, the City Council desires to submit to the voters at the election a question relating to the imposition of a general privilege tax on the gross receipts of for- profit hospitals (“Hospital Tax”) ballot initiative.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Lynwood, California, on Tuesday, November 5, 2024, a Municipal Election for the purpose of considering the imposition of a general privilege tax on the gross receipts of for-profit hospitals in the City of Lynwood.

Section 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the Municipal Election the following question approval of which requires a majority vote:

Section 3. That the proposed complete text of the Ordinance submitted to the voters is attached hereto as Attachment No. 1 and is approved by the City Council.

Section 4. That the ballots to be used at the election shall be in form and content as required by law.

Enactment of Hospital Tax to Protect Public Safety and Vital City Services
To protect, maintain and enhance vital public safety services, infrastructure needs including streets, utility maintenance, park and recreation services including programs for youth and seniors, and other essential services, shall the City of Lynwood impos e a three percent (3%) privilege tax on the gross receipts of for- profit hospitals operating within the City of Lynwood? All funds to be deposited in Lynwood general fund.

YES
NO
674
2 Section 5That the City Clerk is authorized, instructed and directed to coordinate with the County of Los Angeles Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Section 6. That the polls for the election shall be open at 7 a.m. of the day of the election and shall remain open continuously from that time until 8 p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.

Section 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding of municipal elections.

Section 8. That notice of the time and place of holding of election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 9. That the City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. The City Treasurer is hereby authorized and directed to appropriate the necessary funds to pay for the City's cost of placing the Measure on the election ballot.

Section 10. This Resolution shall take effect immediately upon adoption.

Section 11. That the City Clerk shall certify to the passage and adoption of this City Council Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED THIS ______ DAY OF JULY, 2024. . ___________________________
Jose Luis Solache
Mayor
ATTEST:
__________________________
Maria Quiṅonez
City Clerk
675
3 APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ _____________________________ Noel Tapia Ernie Martinez
City Attorney City Manager
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4 ATTACHMENT No. 1
PROPOSED ORDINANCE NO. ____

ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD, CALIFORNIA

ENACTING A FOR-PROFIT HOSPITAL GROSS RECEIPTS TAX
The People of the City of Lynwood hereby ordain as follows:

Section 1. Section 6-9, entitled FOR-PROFIT HOSPITAL GROSS RECEIPTS TAX, is hereby added to Chapter 6 of the Lynwood Municipal Code.
6-9.1 For-Profit Hospital Gross Receipts Tax.
a. Title.

This ordinance shall be known as the City of Lynwood For -Profit Hospital Gross Receipts Tax Ordinance. The City of Lynwood hereinafter shall be called "City." b. Effective date.

The Hospital Tax shall take effect on January 1 of the year following voter approval. It shall be assessed on an annual basis that year and thereafter. c. Purpose and intent.

This ordinance is adopted to achieve the following, among other purposes, and shall be interpreted in order to accomplish those purposes:

1. To impose a tax on the privilege of operating a for-profit hospital within the City. This general tax shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

2. This revenue measure imposes a general tax on the gross receipts of any for-profit general acute care hospital in the City. Hospitals play a central role in caring for the health of City residents and generate profits for their owners in doing so. The City provides support to hospitals by providing municipal services such as s treet repairs, utility maintenance, clean water, public safety, and other infrastructure. City residents and businesses also support hospitals financially, by paying bills or purchasing insurance, with individuals paying an increasing share of their bills through co -pays and deductibles. The City also supports health in other ways, such as 677
5 through senior services, recreational programs, and affordable housing. The revenue contributed from the Hospital Tax may be used to support municipal interests such as economic growth and development, community services, and recreational opportunities, all of which promote a healthy city.
d. Definitions.

For purposes of this section the following terms have the following meanings, which apply notwithstanding any other provision of this code:

3. "City" means the City of Lynwood, California.

4. "Gross Receipts" means the Hospital's annual net patient revenue as required to be reported to the California Department of Health Care Access and Information pursuant to California Health and Safety Code section 128735, subdivision (b).

5. "Hospital" means all hospitals as defined in California Health and Safety Code section 1250(a) that operate within the borders of the City, excluding any hospital owned by a nonprofit organization that is exempted from taxation by Chapter 4 of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code, or any law that succeeds these provisions.

6. "Hospital Tax" refers to the tax established pursuant to this Section.

7. "Tax Administrator" means the finance director for the City of Lynwood, the designee of the finance director, or the County Assessor or County Tax Collector.
d. Hospital Tax.

In addition to any other taxes imposed by the City, the County of Los Angeles, any local special districts, the State of California, and the federal government, the City hereby levies an annual tax on each Hospital subject to this section in an amount equivalent to three percent (3%) of the Hospital's Gross Receipts. An obligation to pay a license fee pursuant to any other provision of this Code does not relieve a Hospital from the obligation to pay the Hospital Tax, notwithstanding Section 4-7.2. e. General Tax.

The Hospital Tax is a general tax. Proceeds from the Hospital Tax shall be deposited into the City's general fund.
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6 f. Administration of Tax.

1. It shall be the duty of the Tax Administrator to collect, receive and direct all taxes imposed by this section, and to keep an accurate record thereof.

2. The Tax Administrator is charged with enforcing this section, and may prescribe, adopt, develop, and enforce rules and regulations relating to the administration and enforcement of this Division. A copy of such rules and regulations shall be on file in the Tax Administrator's office. g. Apportionment.

1. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, this chapter cannot be enforced without there being an apportionment of the Hospital's Gross Receipts according to the amount of business activity within the City or within the State of California, the Tax Administrator shall determine the appropriate formula for apportionment and shall determine the amount of Goss Receipts to be apportioned pursuant thereto, based on information provided by the Hospital.

2. It shall be the Hospital's obligation to request apportionment and to provide all information necessary for the Tax Administrator to determine the appropriate formula for apportionment and determine the amount of Gross Receipts to be apportioned, no later than thirty (30) days prior to the delinquency date established by the Tax Administrator, and if the Hospital does not so request in writing, it shall be conclusively deemed to have waived any apportionment for that year.

The application shall be accompanied by a statement of facts supporting the requested reduction. The Tax Administrator shall determine whether the amount of tax owed will be reduced, increased, or allowed to stand, based on the evidence presented by the Hospital and any other evidence the Tax Administrator may request or otherwise obtain.
679
7 6-9.2 Severability.

The provisions of this Ordinance are severable. If any provision, sentence, clause, section, or part of this Ordinance, or their application , is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

The Electors of the City of Lynwood hereby declare that they would have adopted this Ordinance had such invalid provision, sentence, clause, section, or part thereof not been included herein.

INTRODUCED on this ______ day of November, 2024, and passed to print and approved by the following called vote:

Members of the Council:

AYES:

NOES:

APPROVED by the following vote of the People of the City of Lynwood on November ___, 2024:

YES:

NO:

ADOPTED by Declaration of the vote at the November ____, 202 4 election by the City Council of the City of Lynwood on ________________ , 2024:

Members of the Council: AYES:

NOES:
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1 ORDINANCE NO. xxx

ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD, CALIFORNIA

ENACTING A FOR-PROFIT HOSPITAL GROSS RECEIPTS TAX
The People of the City of Lynwood hereby ordain as follows:

Section 1. Section 6-9, entitled FOR-PROFIT HOSPITAL GROSS RECEIPTS TAX, is hereby added to Chapter 6 of the Lynwood Municipal Code. 6-9.1 For-Profit Hospital Gross Receipts Tax.
a. Title.

This ordinance shall be known as the City of Lynwood For-Profit Hospital Gross Receipts Tax Ordinance. The City of Lynwood hereinafter shall be called "City." b. Effective date.

The Hospital Tax shall take effect on January 1 of the year following voter approval. It shall be assessed on an annual basis that ye ar and thereafter. c. Purpose and intent.

This ordinance is adopted to achieve the following, among other purposes, and shall be interpreted in order to accomplish those purposes:

2. This revenue measure imposes a general tax on the gross receipts of any for-profit general acute care hospital in the City. Hospitals play a central role in caring for the health of City residents and generate profits for their owners in doing so. The City provides support to hospitals by providing municipal services such as s treet repairs, utility maintenance, clean water, public safety, and other infrastructure. City residents and businesses also support hospitals financially, by paying bills or purchasing insurance, with individuals paying an increasing share of their bills through co-pays and deductibles. The City also supports health in other ways, such as through senior services, recreational programs, and affordable housing. The revenue contributed from the Hospital Tax may be used to support municipal interests such as economic growth and development, community services, and recreational opportunities, all of which promote a healthy city.
681
3 d. Definitions.

For purposes of this section the following terms have the following meanings, which apply notwithstanding any other provision of this code:

1. "City" means the City of Lynwood, California.

2. "Gross Receipts" means the Hospital's annual net patient revenue as required to be reported to the California Department of Health Care Access and Information pursuant to California Health and Safety Code section 128735, subdivision (b).

3. "Hospital" means all hospitals as defined in California Health and Safety Code section 1250(a) that operate within the borders of the City, excluding any hospital owned by a nonprofit organization that is exempted from taxation by Chapter 4 of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code, or any law that succeeds these provisions.

4. "Hospital Tax" refers to the tax established pursuant to this Section.

5. "Tax Administrator" means the finance director for the City of Lynwood, the designee of the finance director, or the County Assessor or County Tax Collector.
e. Hospital Tax.

The Hospital Tax is a general tax. Proceeds from the Hospital Tax shall be deposited into the City's general fund.
g. Administration of Tax.

1. It shall be the duty of the Tax Administrator to collect, receive and direct all taxes imposed by this section, and to keep an accurate record thereof.

2. The Tax Administrator is charged with enforcing this section, and may 682
4 prescribe, adopt, develop, and enforce rules and regulations relating to the administration and enforcement of this Division. A copy of such rules and regulations shall be on file in the Tax Administrator's office. h. Apportionment.

1. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, this chapter cannot be enforced without there being an apportionment of the Hospital's Gross Receipts according to the amount of business activity within the City or within the State of California, the Tax Administrator shall determine the appropriate formula for apportionment a nd shall determine the amount of Goss Receipts to be apportioned pursuant thereto, based on information provided by the Hospital.

2. It shall be the Hospital's obligation to request apportionment and to provide all information necessary for the Tax Administr ator to determine the appropriate formula for apportionment and determine the amount of Gross Receipts to be apportioned, no later than thirty (30) days prior to the delinquency date established by the Tax Administrator, and if the Hospital does not so request in writing, it shall be conclusively deemed to have waived any apportionment for that year.

3. If a Hospital believes that the amount of tax owed according to the Tax Administrator's apportionment formula is greater than the facts justify, the Hospital may apply in writing to request a modification. The application shall be accompanied by a statement of facts supporting the requested reduction. The Tax Administrator shall determine whether the amount of tax owed will be reduced, increased, or allowed to stand, based on the evidence presented by the Hospital and any other evidence the Tax Administrator may request or otherwise obtain.
6-9.2 Severability.

The provisions of this Ordinance are severable. If any provision, sentence, clause, section, or part of this Ordinance, or their application, is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

The Electors of the City of Lynwood hereby declare that they would have adopted this Ordinance had such invalid provision, sentence, clause, section, or part thereof not been included herein.
683

AGENDA STAFF REPORT

DATE:

July 16, 2024
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Ernie Hernandez, City Manager
PREPARED BY:

Patrick Matson, Director of Human Resources
SUBJECT:

A RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD

APPROVING AN EMPLOYMENT SERVICES AGREEMENT WITH JULIAN

LEE FOR THE POSITION OF INTERIM CITY MANAGER AND
SUBSEQUENT AMENDMENT TO THE CITY’S

CLASSIFICATION/COMPENSATION PLAN TO INCLUDE AN INTERIM

CITY MANAGER CLASSIFICATION AND SALARY, IN ACCORDANCE
WITH THE CITY’S PERSONNEL RULES AND REGULATIONS
Agenda Item # 9.4.

Recommendation:

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

RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD APPROVING AN

EMPLOYMENT SERVICES AGREEMENT WITH JULIAN LEE FOR THE POSITION OF INTERIM CITY MANAGER AND SUBSEQUENT AMENDMENT TO THE CITY’S

CLASSIFICATION/COMPENSATION PLAN TO INCLUDE AN INTERIM CITY MANAGER CLASSIFICATION AND SALARY, IN ACCORDANCE WITH THE CITY’S PERSONNEL RULES AND REGULATIONS”
Background:

Upon receiving direction from the City Council, staff negotiated the proposed employment agreement with current City Director of Public Works, Julian Lee, to become the City’s Interim City Manager effective July 16, 2024.

Discussion and Analysis:

Should the City Council approve the proposed employment agreement (Exhibit A), an amendment to the City’s Classification/Compensation plan, more specifically the City’s salary City Council City Council Regular Meeting 684
Resolution - Interim CM Agreement and Amended Salary Schedule.pdf Exhibit A - Proposed Employment Agreement Between City and Julian Lee for Interim CM Position.pdf
Exhibit B - Proposed Salary Schedule Effective July 16, 2024.pdf schedule (Exhibit B), will also be needed in order to reflect the Interim City Manager classification and agreed upon salary information.

Upon approval of the proposed resolution/employment agreement, staff will expedite the execution of the agreement between the City and Mr. Lee.

Staff recommends the City Council adopt the proposed resolution amending approving the employment agreement between the City and Mr. Lee to become the City’s Interim City Manager effective July 16, 2024, and to amend the City’s salary schedule to reflect the Interim City Manager position and subsequent salary information in accordance with the City’s Personnel Rules and Regulations.

Fiscal Impact:

The salary and benefits for this position are fully budgeted for FY 24-25. No additional allocation is required.

Coordinated With:

City Manager's Office
City Attorney's Office
ATTACHMENTS:

Description
City Council City Council Regular Meeting 685

RESOLUTION NO. [XX]

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

AN EMPLOYMENT SERVICES AGREEMENT WITH JULIAN LEE FOR THE POSITION OF INTERIM CITY MANAGER AND SUBSEQUENT AMENDMENT TO THE CITY’S

CLASSIFICATION/COMPENSATION PLAN TO INCLUDE AN INTERIM CITY MANAGER CLASSIFICATION AND SALARY , IN ACCORDANCE WITH THE CITY’S

PERSONNEL RULES AND REGULATIONS

WHEREAS, the City of Lynwood is a General Law City under California law and is governed by and elected City Council; and

WHEREAS, the Interim City Manager reports to, and is appointed by the City Council of the City of Lynwood; and

WHEREAS, the City Council has approved the hiring of Julian Lee as the Interim City Manager under an “at-will” employment agreement (Exhibit A) ; and

WHEREAS, the City Council of the City of Lynwood has adopted an Employee Classification and Position Plan and on occasion amends the plan as needed; and

WHEREAS, an ame ndment to the City ’s C lassification/Compensation Plan, specifically the City ’s Salary Sche dule, is needed to reflect the Interim City Manager classification and salary; and

WHEREAS, in order to amend the City’s Classification/Compensation Plan, the City Council must do so by way of resolution in accordance with Rule V, Sections 1 -2 of the City’s Personnel Rules and Regulations;

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

Section 1. The Mayor is authorized to execute the attached “at-will” Interim City Manager agreement (Exhibit A) on behalf of the City, subject to the City Attorney ’s approval of the form.

Section 2. The Interim City Manager is authoriz ed and directed to commence performance of the duties of the position on July 16, 2024.

Section 3. This resolution is to be given effect upon its adoption by the City Council of the City of Lynwood and execution of the same by the appropriate parties.

Section 4. The City’s Classification and Compensation Plan, more specifically the City ’s Salary Schedule, shall be amended to include the Interim City Manager classification and salary information (Exhibit B).

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PASSED, APPROVED and ADOPTED this 16th day of July, 2024

Jose Luis Solache
MAYOR

ATTEST:

Maria Quinonez

CITY CLERK

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

Noel Tapia Patrick Matson
CITY ATTORNEY DIR. OF HUMAN RESOURCES

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EXHIBIT A

THE CITY OF LYNWOOD

INTERIM CITY MANAGER AGREEMENT
This at -will INTERIM CITY MANAGER ("Agreement") is effective July 16, 2024 ("Effective Date"), by and between the CITY OF LYNWOOD, a general law city and municipal corporation ("City") and Julian Lee an individual ("Interim City Manager").

RECITALS

WHEREAS, the City Council of the City ("Council") now desires to employ Julian Lee in the at-will position of the Interim City Manager for the City; WHEREAS, Interim City Manager desires to perform and assume responsibility for the provisions of such professional services to the City;

WHEREAS, the parties wish to establish the terms and conditions of the Interim City Manager services to the City as described in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City and Interim City Manager hereby agree as follows:

AGREEMENT

1.0 EMPLOYMENT AND DUTIES

1.1 Duties. City hereby employs Julian Lee to serve as the City's Interim City Manager, to perform the functions and duties of an Interim City Manager as such duties are customarily performed by a person in such position, as specified in any position description for the Interim City Manager, and to perform such other legally permissible and proper duties and functions as the Interim City Manager shall, from time -to-time, direct or assign, including, but not limited to, the duties of the Interim City Manager of the City, unless said duties are reassigned by the Interim City Manager.

1.2 Work Schedule. The parties agree that the Interim City Manager shall engage in the hours of work that are necessary to fulfill the obligations of the position and must devote time in addition to the City's regular business hours to the business of the City. Interim City Manager acknowledges that City Hall is open Mondays through Thursdays from 7:00 a.m. to 6:00 p.m. and is closed on Fridays, such that the City's standard work week is four (4) 10-hour days.

Notwithstanding the foregoing, Interim City Manager will be permitted reasonable time off during the City's business hours upon proper approval and as permitted by accrued leave time, as is customary for exempt employees, so long as the time off does not interfere with the City's business. 688

1.3 Direction. The City shall retain full direction and control of the manner, means and methods by which the Interim City Manager performs the services for which he is employed hereunder and of the place or places at which such services shall be rendered.

1.4 Employment Status; At-Will Interim City Manager shall serve at the will and pleasure of the City Council and understands he is an "at -will" employee subject to summary dismissal without any right of notice or hearing, including any so- called Skelly hearing. The City Council may terminate the employment of the Interim City Manager at any time, with or without cause, as set forth in Section 3.2 below. The Parties acknowledge that, while the Interim City Manager is afforded the benefits described in Article 6.0, as those benefits are provided to other employees within the Lynwood Employees Management Bargaining Group ("LEMG") in accordance with the Comprehensive Memorandum of Understanding for Submission to the Lynwood City Council Regarding Lynwood Employees Management Bargaining Group ("MOU"), as may be amended from time to time, a copy of which is attached hereto as Exhibit "A," Interim City Manager is not an employee represented by any bargaining unit, and nothing in this Agreement or the City's policies or procedures, either now or in the future, is intended to change the at -will nature of this relationship.

1.5 City Documents. All data, studies, reports, and other documents prepared by the Interim City Manager while performing his duties during the term of this Agreement shall be furnished to and become the property of the City, without restriction or limitation on their use. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by or provided to the Interim City Manager in connection with the performance of this Agreement shall be held confidential by the Interim City Manager to the extent permitted by applicable law. Such materials shall not, without the prior written consent of the Council, be used by the Interim City Manager for any purposes other than the performance of his duties for the City. Nor shall such materials be disclosed to any person or entity not connected with the performance of services under this Agreement, except as required by law.

1.6 FLSA Exempt Status. Interim City Manager agrees that his position is that of an exempt employee for the purposes of the Fair Labor Standards Act.

2.0 COMPENSATION AND REIMBURSEMENT

2.1 Compensation. As compensation for the services to be rendered by Interim City Manager , City agrees to pay Interim City Manager a salary of $ 227,151 per year ("Salary") payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding. The Salary shall be adjusted for payroll taxes, workers' compensation, and other payroll -related liability costs. Interim City Manager understands and agrees that his compensation for the first pay period that he is working for the City shall be prorated consistent with all applicable laws, if he is commencing work in the middle of a pay period. Interim City Manager shall be eligible for a Salary increase one year from the Effective Date.

2.2 457 Payment Compensation. As additional compensation for the services to be rendered by Interim City Manager, City agrees to pay Interim City Manager in addition to his 689

salary above an annual payment equivalent to 5% of his annual salary (as stated in 2.1 Compensation above) payable in twenty-six (26) bi-weekly installments at the same time as other employees of the City are paid and subject to customary withholding. Interim City Manager understands and agrees that the provisions of this section shall be prorated consistent with all applicable laws, as he is commencing work in the middle of a pay period.

2.3 Annual Review. The City and the Interim City Manager agree to conduct a review concurrently with the annual performance evaluation set forth in Article

5.0, below. Interim City Manager shall receive any Cost of Living Adjustment ("COLA") consistent with or provided to other LEMG members under the MOU. In addition, a merit increase may be granted on the Interim City Manager 's one-year anniversary at the sole discretion of the City Council. Interim City Manager is also eligible for performance incentives that may be awarded in the sole discretion of the City Council.

2.4 Effectuating Salary Adjustment. City and Interim City Manager agree that any upward adjustment in the Salary paid to Interim City Manager shall be at the sole discretion of the City Council.

3.0 TERM

3.1 Commencement & Effective Date. Interim City Manager shall commence his services hereunder at 7:00 AM Pacific Time on July 16, 2024 which shall also be deemed the effective date of this Agreement.

3.2 Termination. The City may terminate this Agreement at any time with or without cause, for any reason whatsoever, without notice to the Interim City Manager .

Additionally, Interim City Manager may terminate this Agreement at any time with or without cause, with at least thirty (30) days' advance written notice prior to the effective last work day, unless a shorter period is acceptable to the City Council. Interim City Manager expressly agrees that any for cause termination of this Agreement initiated by the City shall not entitle Interim City Manager to any severance pay; whereas, without cause termination of this Agreement initiated by the City shall entitle Interim City Manager, upon the effective date of such termination, to severance pay as provided in Section 4.1 below, and all accrued but unpaid Salary and vested benefits through the date of termination., and all accrued but unpaid Salary and vested benefits through the date of termination.

3.3 Cooperation. After notice of termination, Interim City Manager shall cooperate with the City, as requested by the City, to effect a transition of Interim City Manager's responsibilities and to ensure that the City is aware of all matters being handled by Interim City Manager.

4.0 SEVERANCE

4.1 Severance Benefit

A. Interim City Manager is an at-will employee and serves at the will and pleasure of the City Council and may be terminated at any time without cause. 690

B. In the event that Interim City Manager is terminated by the City Council more than one-hundred-eighty (180) days after working for the City, for reasons other than physical or mental incapacity, or those reasons noted in subsection E., below, the City agrees to pay Interim City Manager severance pay equal to six (6) months salary (but not benefits) at the Interim City Manager's salary at the date of termination.

C. To be eligible for severance pay, as identified in Paragraphs Band C of this section, Interim City Manager shall fulfill all of his obligations under this Agreement and shall sign an acknowledgement and release of claims against the City. Such acknowledgement and release appears as Attachment "B'' to this Agreement.

D. All severance payments shall be paid within thirty (30) calendar days of Interim City Manager's last date of employment.

E. Notwithstanding subsections A, B and C, above, if Employee retires or is terminated due to personal dishonesty by Interim City Manager in performing Interim City Manager's duties, Interim City Manager's insubordination or failure to follow City policies, procedures, rules or regulations, actions by Interim City Manager that are detrimental to the reputation of the City, conflicts of interests or breach of fiduciary duties, acts of fraud or misrepresentation or any act of malfeasance, incapacity, dereliction of duty, gross negligence, addiction to a controlled substance or alcohol, which addiction impairs Interim City Manager's job performance, conviction of a crime involving moral turpitude or involving personal gain to him, any felony or a breach of this Agreement, City shall have no obligation t o pay any severance provided in this section.

4.2 Payment For Accrued Benefits. Except as provided for in Article 6.0, upon the termination of this Agreement and the services of the Interim City Manager there under, City shall pay to Interim City Manager the cash equivalent of leaves as permis sible according to the LEMG MOU.

4.3 Sole Rights. The severance rights provided in this Article 4.0 shall constitute the sole and only entitlement of Interim City Manager in the event of the termination, and Interim City Manager expressly waives any and all other rights except as provided herein.

Any and all severance rights are conditioned upon execution of standard "Agreement of Separation, Severance and General Release" attached hereto as Exhibit "B."

4.4 Gov. Code Section 53260(a) Provision. Any other term of this Agreement notwithstanding, the maximum severance that Interim City Manager may receive under this Agreement shall not exceed the limitations provided in Government Code Sections 53260-53264, or other applicable law.

5.0 PERFORMANCE EVALUATIONS

5.1 Purpose. The performance review and evaluation process set forth herein is intended to provide review and feedback to Interim City Manager so as to facilitate a more 691

effective management of City. Nothing herein shall be deemed to alter or change the at-will employment status of Interim City Manager , nor shall this Article 5.0 be construed as requiring "cause" to terminate this Agreement or the services of Interim City Manager there under.

5.2 Annual Evaluation. The City Council may review and evaluate th e performance of the Interim City Manager annually, within thirty (30) days after each anniversary date. In addition, Interim City Manager shall submit for City Council's consideration at those times established by the City Council, but at least annually Interim City Manager's proposed performance goals and objectives and incorporate the City Council's suggestions. Such review and evaluation shall be conducted concurrently with an annual review

5.3 Annual Performance Incentive. The City Council may provide an annual performance incentive of up to 100 vacation hours to be credited to the Interim City Manager’s accruals based on meeting performance goals and objectives. Such evaluation for the performance incentive shall be conducted concurrently with an annual review, and in accordance with the purpose noted in Section 5.1 above.

5.4 Council Election. Pursuant to provisions of Section 2-2.9(b) of the Lynwood Municipal Code. The Interim City Manager shall not be removed from office during or within a period of ninet y (90) days succeeding any general municipal election held in the City at which election a member of City Council is elected.

6.0 BENEFITS

6.1 Automobile Allowance. City shall provide an automobile allowance to Interim City Manager of $500.00 per month, payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding.

6.2 Electronic Media Allowance. The City shall provide or pay Interim City Manager’s cellular phone plan and equipment costs and provide an Electronic Media Allowance of three hundred and 00/100 Dollars ($300.00) per month. The Electronic Media Allowance shall be full compensation for the cost associated with the purchase and use of technology and program applications to be used for City -related business, and shall be paid to the Interim City Manager through payroll, with applicable taxes and other payroll -liability costs deducted. Interim City Manager understands that any applicable taxes are his responsibility to pay and not covered by the City.

6.3 Master's Degree Pay. In accordance with the MOU, as may be amended from time to time, the City shall provide Interim City Manager Master's Degree pay consistent with the pay paid to LEMG members ("Bachelor/Master's Degree Pay"), which as of the date of this Agreement is two hundred dollars and fifty Dollars ($250.00) per month.

The Master's Degree Pay shall be paid upon submitting proof of the degree, and shall be paid to the Interim City Manager through payroll, with applicable taxes and other payroll- liability costs deducted. Interim City Manager understands that any applicable taxes are his responsibility to pay and not covered by the City.

6.4 Medical, Dental, Vision and Life Insurance. City shall provide to the 692

Interim City Manager the same group medical, dental, vision, and life insurance plans and/or programs as are offered to LEMG members in accordance with the MOU. The City's contribution on behalf of the Interim City Manager toward any PERS health insurance plan shall be at the family premium rate for Kaiser coverage, as may be amended by the MOU. In addition, the City will pay the cost of dental plan premiums and vision plan premiums for the Interim City Manager and his eligible dependents according to the MOU. The City shall provide and pay for a life insurance policy to the Interim City Manager in the amount of fifty thousand and 00/100 Dollars ($50,000.00).

6.5 Vacation, Personal and Sick Leave. Interim City Manager shall accrue vacation, personal and sick leave hours in accordance with the current LEMG MOU.

Additionally, as further described in the LEMG MOU Cashout and/or Carryover provisions, vacation and personal leave may be converted into cash or carried over, up to the maximum allowable of hours as described in the LEMG MOU. Sick leave hours are not eligible for any cash out provisions, as stated in the MOU.

6.6 Holidays. In accordance with the MOU, Interim City Manager shall be entitled to the holidays and floating holidays noted in the LEMG MOU. The aforementioned holiday benefits shall be subject to adjustment as may be revised by the MOU.

6.7 Executive Leave. In accordance with the MOU, Interim City Manager shall accrue executive leave at the rate of ninety (90) hours per fiscal year. Additionally, as further described in the LEMG MOU Cashout and/or Carryover provisions, Executive leave hours may be converted into cash or carried over, up to the maximum allowable of hours as described in the LEMG MOU. The aforementioned leave benefits shall be subject to adjustment as may be revised by the MOU.

6.8 Additional Benefits. In addition to the benefits set forth in this Agreement, the Interim City Manager shall receive the benefits provided by the City to LEMG members under the MOU, excluding any License and Certificate Incentive Pay. To the extent benefits provided under this Agreement are similar to those provided to the LEMG members under the MOU, the Interim City Manager shall receive only those benefits provided under this Agreement, and not both.

7.0 PROFESSIONAL DEVELOPMENT

7.1 Membership. The City encourages Interim City Manager continued professional development and membership and shall provide payment of appropriate related costs for such activities, as approved by the Interim City Manager.

7.2 Out-of-Town Meetings & Seminars. The City agrees to reimburse the Interim City Manager the actual cost for registration, travel, lodging, meals, and other reasonable expenses incurred by the Interim City Manager while attending overnight out- of-town meetings or seminars related to his employment with the City, which are pre-approved by the City Council and in accordance with the City's policies for expense reimbursement. To be eligible to receive reimbursement for meals and lodging for out -of-town meetings or seminars, Interim City Manager must have budgeted funds available for same. 693

7.3 Local Meetings & Seminars . The City agrees to reimburse Interim City Manager the actual cost of registration, meals, and other reasonable expenses necessarily incurred while in attendance at local meetings or seminars related to his employment with the City in accordance with the City's policies for expense reimbursement.

7.4 Incidental Expenses. The City agrees to reimburse Interim City Manager the actual cost of those incidental expenses necessarily incurred by Interim City Manager while engaged in the business of the City upon the presentation of an appropriate receipt therefore in accordance with the City's policies for expense reimbursement.

7.5 Approval by City Council. To be eligible to receive reimbursement for the memberships, travel, and other expenses incurred pursuant to this Article 7.0, Interim City Manager must have budgeted funds available for the same.

8.0 INDEMNIFICATION

8.0 Indemnification. For the purposes of indemnification and defense of legal actions, Interim City Manager shall be considered an employee of the City and entitled to the same rights and subject to the same obligations as are provided for all other employees of the City as set forth in the California Government Code. Accordingly, City shall defend, hold harmless and indemnify Interim City Manager against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurri ng in the performance of Interim City Manager's services under this Agreement. This section shall not apply to any intentional tort or crime committed by Interim City Manager , to any action outside the course and scope of the services provided by Interim City Manager under this Agreement, or any other intentional or malicious conduct or gross negligence of Interim City Manager.

9.0 GENERAL PROVISIONS

9.1 Entire Agreement. This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or in writing, between the parties with respect to Interim City Manager 's employment by the City and contains all of the covenants and agreements between the parties with respect to such employment. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by either party, or anyone Assistant on behalf of either party, which are not embodied herein, and that no other agreement, statement or promises not contained in this Agreement shall be valid or binding upon either party.

9.2 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be personally served or shall be sufficiently given when served upon the other party as sent by United States Postal Service, postage prepaid and addressed as follows:

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Notices shall be deemed given as of the date of personal service or within two (2) days of the date of deposit in the course of transmission with the United States Postal Service.

9.3 Conflicts Prohibited. During the term of this Agreement, Interim City Manager shall not engage in any business or transaction or maintain a financial interest which conflicts, or reasonably might be expected to conflict, with the proper discharge of Interim City Manager duties under this Agreement. Interim City Manager shall comply with all requirements oflaw, including but not limited to, Sections 87100 et seq., Section 1090 and Section 1125 of the Government Code, and all other similar statutory and administrative rules.

9.4 Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

9.5 Partial Invalidity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

9.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, which are in full force and effect as of the date of execution.

9.7 Independent Legal Advice. The City and Interim City Manager represent and warrant to each other that each has received legal advice from independent and separate legal counsel with respect to the legal effect of this Agreement, and the City and Interim City Manager further represent and warrant that each has carefully reviewed this entire Agreement and that each and every term thereof is understood and that the terms of this Agreement are contractual and not a mere recital. This Agreement shall not be construed against the party or its representatives who drafted it or who drafted any portion thereof.

9.8 AB 1344. Assembly Bill 1344 was recently enacted as a means to provide greater transparency in local government and institute certain limitations on compensation paid to local government executives. AB 1344 also requires that contracts between a local agencies and its employees include provisions requiring an employee who is convicted of a crime involving an abuse To City:

City Council
City of
Lynwood
11330 Bullis Road
Lynwood, California
90262

To Interim City Manager:

At his home address on file with the
City

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of his office or position to provide reimbursement to the local agency (California Government Code §§ 53243 - 53243.4). These sections are set forth in full in Exhibit "B" attached hereto and incorporated herein.

Accordingly, the parties agree that it is their mutual intent to fully comply with the Government Code sections that are part of AB 1344 and all other applicable law as it exists as of the date of execution of this Agreement and as such laws may be amended from time to time thereafter.

Specifically, AB 1344 includes the following Government Code sections which are hereby incorporated by this Agreement:

§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position.

§53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position.

§53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position.

§53243.3. Reimbursement of non-contractual payments upon conviction or crime involving office or position.

§53243.4. Abuse of office or position defined.

Interim City Manager has reviewed, is familiar with, and agrees to comply fully with each of these provisions if any of these provisions are applicable to Interim City Manager, including that Interim City Manager agrees that any cash settlement or severance related to the termination that Interim City Manager may receive from the City shall be fully reimbursed to the local agency if Interim City Manager is convicted of a crime involving an abuse of his or her office or position.

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IN WITNESS WHEREOF, the City of Lynwood has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and Interim City Manager has signed and executed this Agreement, all in triplicate.

CITY OF LYNWOOD

________________________
Jose Luis Solache, Mayor

ATTEST:

______________________
Maria Quinonez, City Clerk

APPROVED AS TO FORM:

_________________________
Noel Tapia, City Attorney
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CITY OF LYNWOOD

CLASSIFICATION & COMPENSATION SCHEDULE
Biweekly and Monthly Salaries & MOU-Related Pay
Adopted on July 16, 2024 (Reso No. 2024.XXX); Effective July 16, 2024

ELECTED OFFICIALS

UNIT JOB TITLE CURRENT
E Councilmember 975.00
E City Clerk 1,000.00
E City Treasurer 1,000.00
CITY MANAGEMENT: At-Will Contract Employees

JOB TITLE
Ex/AW City Manager* DOQ
Ex/AW Interim City Manager Annual Salary 227,151.00
Monthly Salary 18,929.25
DEPARTMENT DIRECTOR: Executive Management At-Will Employees (Under Reso No. 2021.105)

JOB TITLE STEP A B C D E
Ex/AW Director of Community Development Annual Salary 169,888.62 178,383.06 187,302.22 196,667.33 206,500.71 Monthly Salary 14,157.39 14,865.26 15,608.52 16,388.95 17,208.39 Ex/AW Director of Finance Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34 Ex/AW Director of HR & Risk Management Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34 Ex/AW Director of Public Works Annual Salary 169,888.62 178,383.06 187,302.22 196,667.33 206,500.71 Monthly Salary 14,157.39 14,865.26 15,608.52 16,388.95 17,208.39 Ex/AW Director of Recreation & Community Services Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34

EXHIBIT B
699
Ex/AW Director of Technology Services Annual Salary 152,177.03 159,785.89 167,775.19 176,163.96 184,972.17 Monthly Salary 12,681.42 13,315.49 13,981.26 14,680.33 15,414.35 DEPARTMENT DIRECTORS: Executive Management At-Will Contract Employees (Pre-Date Reso No. 2021.105)

JOB TITLE STEP A B C D E
Ex/AW Director of Recreation & Community Services* DOQ
Ex/AW Director of Technology Services* DOQ

MANAGEMENT CIVIL SERVICE EMPLOYEES

UNIT JOB TITLE BAND STEP A B C D E
M. Accounting/Auditing Supervisor M-54 3,148.56 3,303.01 3,504.43 3,697.17 3,900.52 6,821.89 7,156.53 7,592.94 8,010.55 8,451.13 M. Accountant M-55 3,181.63 3,337.69 3,541.23 3,736.00 3,941.47 6,893.53 7,231.67 7,672.66 8,094.66 8,539.86 M. Administrative Analyst II M-50 2,886.00 3,030.30 3,181.82 3,340.91 3,507.95 6,253.01 6,565.66 6,893.94 7,238.64 7,600.57 M Administrative Analyst III M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.72 8,445.97 8,874.50 Exempt Assistant to the City Manager M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Billing & Collections Supervisor M-54 3,148.56 3,303.01 3,504.43 3,697.17 3,900.52 6,821.89 7,156.53 7,592.94 8,010.55 8,451.13 M Building Official M-70 4,988.01 5,241.15 5,503.23 5,778.12 6,066.11 10,807.35 11,355.83 11,923.66 12,519.27 13,143.23 M Associate Engineer M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Deputy Dir. of Admin. Services M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Deputy Dir. of Public Works M-71 5,950.57 6,129.08 6,312.95 6,502.34 6,697.41 12,892.89 13,279.67 13,678.06 14,088.41 14,511.06 M Deputy Dir. of Rec and Comm Services M-70 4,988.01 5,241.15 5,503.23 5,778.12 6,066.11 10,807.35 11,355.83 11,923.66 12,519.27 13,143.23 M Electrical Maintenance Supervisor M-45 2,568.31 2,696.40 2,832.03 2,976.12 3,124.92 5,564.68 5,842.20 6,136.06 6,448.27 6,770.65 700
M Deputy City Clerk M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M. Deputy City Treasurer M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M/Conf. Human Resources & Risk Analyst M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M Planning Associate M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Planning Manager M-69 4,737.03 5,009.41 5,297.45 5,602.06 5,924.17 10,263.56 10,853.72 11,477.81 12,137.79 12,835.71 M Principal Accountant M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Principal Planner M-67 4,411.43 4,542.84 4,773.69 5,012.81 5,315.16 9,558.09 9,842.82 10,342.98 10,861.10 11,516.18 M Public Safety Manager M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Public Works Operations Manager M-69 4,737.03 5,009.41 5,297.45 5,602.06 5,924.17 10,263.56 10,853.72 11,477.81 12,137.79 12,835.71 M Public Works Operations Supervisor M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Public Works Special Projects Mgr M-71 5,950.57 6,129.08 6,312.95 6,502.34 6,697.41 12,892.89 13,279.67 13,678.06 14,088.41 14,511.06 M Recreation Facility & Program Supervisor M-50 2,886.00 3,030.30 3,181.82 3,340.91 3,507.95 6,253.01 6,565.66 6,893.94 7,238.64 7,600.57 M Recreation Superintendent II M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M. Senior Accountant M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M/Conf. Senior Human Resources & Risk Analyst M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M/Conf. Senior Management Analyst M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Senior Planner M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 701
M Senior Project Manager M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Senior Public Works Manager M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M System Analyst M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Water Operations Supervisor M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 CIVIL SERVICE EMPLOYEES - Leads & General Staff - - - - -

UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Account Clerk G-31 1,835.31 1,927.17 2,023.77 2,124.13 2,230.21 3,976.50 4,175.52 4,384.83 4,602.29 4,832.12 G Accounting Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Administrative Assistant G-41 2,341.96 2,459.38 2,582.48 2,711.27 2,847.66 5,074.24 5,328.66 5,595.37 5,874.42 6,169.93 G Assistant Administrative Analyst G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Assistant to the City Clerk G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Assistant Engineer G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Building Inspector G-55 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 G Building Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Building Maintenance Worker G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Business License Officer G-36 2,072.99 2,176.23 2,285.12 2,399.71 2,520.00 4,491.48 4,715.17 4,951.10 5,199.38 5,459.99 G Business License Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Communications Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 702
G Custodian G-29 1,748.17 1,835.30 1,927.17 2,023.76 2,124.13 3,787.71 3,976.49 4,175.53 4,384.82 4,602.29 G Electrical Maintenance Worker G-42 2,391.21 2,528.70 2,674.10 2,827.86 2,990.47 5,180.95 5,478.85 5,793.89 6,127.04 6,479.34 G Executive Assistant to G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 Community Development 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Executive Assistant G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G/Conf. Human Resources & Risk Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G/Conf. Human Resources & Risk Specialist G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Garage/Fleet Coordinator G-34 1,974.38 2,073.10 2,176.75 2,285.59 2,399.88 4,277.83 4,491.72 4,716.30 4,952.11 5,199.74 G Information System Assistant G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Information System Technician G-41 2,341.96 2,459.38 2,582.48 2,711.27 2,847.66 5,074.24 5,328.66 5,595.37 5,874.42 6,169.93 G Laborer G-24 1,546.47 1,624.13 1,705.56 1,790.81 1,880.76 3,350.68 3,518.95 3,695.38 3,880.09 4,074.99 G Lead Custodian G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Lead Public Safety Officer G-54 2,869.14 3,012.22 3,163.75 3,324.72 3,490.95 6,216.46 6,526.48 6,854.78 7,203.56 7,563.72 G Maintenance Worker G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Media Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Office Assistant I G-12 1,153.45 1,211.22 1,271.84 1,335.28 1,402.53 2,499.14 2,624.31 2,755.64 2,893.10 3,038.81 G Office Assistant II G-24 1,546.47 1,624.13 1,705.56 1,790.81 1,880.76 3,350.68 3,518.95 3,695.38 3,880.09 4,074.99 G Park Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 703
G/Conf. Payroll Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Permit Technician G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Public Safety Officer G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Public Works Operations Coordinator G-34 1,974.38 2,073.10 2,176.75 2,285.59 2,399.88 4,277.83 4,491.72 4,716.30 4,952.11 5,199.74 G Public Works Inspector G-57 3,106.08 3,261.39 3,424.46 3,595.68 3,775.47 6,729.85 7,066.35 7,419.66 7,790.65 8,180.18 G Public Works Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Recreation Coordinator G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Recreation Specialist G-23 1,509.52 1,585.29 1,664.84 1,748.17 1,835.31 3,270.64 3,434.80 3,607.15 3,787.69 3,976.50 G Right -Of-Way Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Senior Accounting Technician G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Senior Administrative Assistant G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Sr. Building Inspector/Asst. Building Official G-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 G Senior Information Systems Technician G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Senior Lifeguard G-23 1,509.52 1,585.29 1,664.84 1,748.17 1,835.31 3,270.64 3,434.80 3,607.15 3,787.69 3,976.50 G Senior Street Maintenance Worker G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Street Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Street Maintenance Worker G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 704
G Water Compliance Specialist G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Water Quality Specialist G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Water Service/Wastewater Lead Worker G-58 3,235.21 3,388.32 3,550.44 3,722.69 3,900.55 7,009.62 7,341.35 7,692.62 8,065.82 8,451.20 G Water Service/Wastewater Worker I G-40 2,326.60 2,438.34 2,555.77 2,678.87 2,807.66 5,040.96 5,283.07 5,537.50 5,804.21 6,083.26 G Water Service/Wastewater Worker II G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Water Service/Wastewater Worker III G-47 2,790.89 2,930.07 3,077.46 3,234.05 3,395.74 6,046.92 6,348.49 6,667.83 7,007.10 7,357.44 HOURLY NON-CIVIL SERVICE - Part-Time, Temporary & Seasonal Staff

UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Information Systems Technician H-38A 29.31 30.49 31.73 33.04 34.39 G Public Safety Officer H-39 26.08 27.39 28.76 30.19 31.70 G Maintenance Worker H-43 21.24 22.30 23.42 24.59 25.82 G Senior Lifeguard H-8B 18.93 19.87 20.82 21.86 22.90 G Recreation Leader III H-13 18.93 20.82 22.90 N/A N/A G Office Assistant II H-36B 18.36 19.28 20.25 21.26 22.32 G Lifeguard H-8 17.24 18.10 18.96 19.91 20.86 G Recreation Leader II H-14 17.24 18.96 20.86 N/A N/A G Recreation Leader I H-6 16.88 18.57 20.43 N/A N/A G Laborer (PW) H-18 16.76 17.60 18.48 19.41 20.38 G Laborer (Recreation Facilites) H-15 16.76 17.60 18.48 19.41 20.38 G Administrative Intern H-43B 16.76 17.60 18.48 19.41 20.38

MONTHLY ELECTRONIC MEDIA ALLOWANCES
Department Directors $125.00
Division Managers $90.00
Field & Other Personnel $60.00
705

Lynwood City CouncilJuly 16, 2024

Lynwood City Council
July 16, 2024