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Proposition 26 Proposition 26 (“Proposition 26”), which was approved by California voters on November 2, 2010, revises the California Constitution to expand the definition of “taxes.” Proposition 26 re-categorizes many State and local fees as taxes and specifies a requirement of two-thirds voter approval for taxes levied by local governments. Proposition 26 requires the State obtain the approval of two-thirds of both houses of the State Legislature for any proposed change in State statutes, which would result in any taxpayer paying a higher tax. Proposition 26 eliminates the previous practice whereby a tax increase coupled with a tax reduction that resulted in an overall neutral fiscal effect was subject only to a majority vote in the State Legislature. Furthermore, pursuant to Proposition 26, any increase in a fee above the amount needed to provide the specific service or benefit is deemed to be a tax and the approval thereof will require such two-thirds vote of approval to be effective. In addition, for State imposed fees and charges, any fee or charge adopted after January 1, 2010, with a majority vote of approval of the State Legislature which would have required a two-thirds vote of approval of the State Legislature if Proposition 26 were effective at the time of such adoption is repealed as of November 2011 absent the re-adoption by the requisite two-thirds vote. Proposition 26 amends Article XIII C of the State Constitution to state that a “tax” means a levy, charge or exaction of any kind imposed by a local government, except (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property or the purchase rental or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law; (6) a charge imposed as a condition of property development; or (7) assessments and property related fees imposed in accordance with the provisions of Proposition 218. Proposition 26 applies to any levy, charge or exaction imposed, increased, or extended by local government on or after November 3, 2010, unless exempted, as stated above. Accordingly, fees adopted prior to that date are not subject to the measure until they are increased or extended or if it is determined that an exemption applies. As of the date hereof, none of the City’s fees or charges has been challenged in a court of law in connection with the requirements of Proposition 26. If the local government specifies how the funds from a proposed local tax are to be used, the approval will be subject to a two-thirds voter requirement. If the local government does not specify how the funds from a proposed local tax are to be used, the approval will be subject to a fifty percent voter requirement. Proposed local government fees that are not subject to Proposition 26 generally are subject to the approval of a majority of the governing body. In general, proposed property charges will be subject to a majority vote of approval by the governing body although certain proposed property charges will also require approval by a majority of the affected property owners.
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Proposition 19 On November 3, 2020, State voters approved a constitutional amendment entitled Property Tax Transfers, Exemptions and Revenue for Wildfire Agencies and Counties Amendment (“Proposition 19”), which will: (i) expand special rules that give property tax savings to homeowners that are over the age of 55, severely disabled, or whose property has been impacted by a natural disaster or contamination, when they buy a different home; (ii) narrow existing special rules for inherited properties; and (iii) broaden the scope of legal entity ownership changes that trigger reassessment of properties. The City cannot make any assurance as to what effect the implementation of Proposition 19 will have on assessed valuation of real property in the City. Future Initiatives Articles XIIIA, XIIIB, XIIIC and XIIID, Propositions 1A, 22, 26 and 19 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, which may place further limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations which may affect the City’s revenues or its ability to expend its revenues. RISK FACTORS This section provides a general overview of certain risk factors which should be considered, in addition to the other matters set forth in this Official Statement, in evaluating an investment in the Series 2022A Bonds. This section is not meant to be a comprehensive or definitive discussion of the risks associated with an investment in the Series 2022A Bonds, and the order in which this information is presented does not necessarily reflect the relative importance of various risks. Potential investors in the Series 2022A Bonds are advised to consider the following factors, among others, and to review this entire Official Statement to obtain information essential to the making of an informed investment decision. Any one or more of the risk factors discussed below, among others, could lead to a decrease in the market value and/or in the marketability of the Series 2022A Bonds. There can be no assurance that other risk factors not discussed herein will not become material in the future. Bonds are Unsecured General Fund Obligations of the City The obligation of the City to make Base Rental Payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The Indenture does not create a pledge, lien or encumbrance upon the funds of the City. Pursuant to law, the Series 2022A Bonds are payable from any available funds of the City. The City covenants in the Lease Agreement to punctually pay the interest on and principal of every Bond in strict conformity with the terms thereof and of the Indenture. The City is liable and may become liable on other obligations payable from general revenues, some of which may have a priority over payments of the principal of, and interest on, the Series 2022A Bonds, or which the City, in its discretion, may determine to pay prior to the principal of, and interest on, the Series 2022A Bonds. A variety of national, state or regional factors, which are beyond the control of the City could reduce the City’s General Fund revenues or increase the City’s General Fund expenditures. If the amounts which the City is obligated to pay in a Fiscal Year exceed the City’s revenues for such year, the City may choose
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to make some payments rather than making other payments, including payments on the Series 2022A Bonds, based on the perceived needs of the City. The same result could occur if, because of California Constitutional limits on expenditures, the City is not permitted to appropriate and spend all of its available revenues or is required to expend available revenues to preserve the public health, safety and welfare. See “STATE CONSTITUTIONAL LIMITATIONS ON CITY REVENUES AND APPROPRIATIONS.” No Limitation on Incurring Additional Obligations The City has the capacity to enter into other obligations payable from the City’s General Fund without the consent of or prior notice to the Owners of the Series 2022A Bonds and has expressly reserved the right to issue or incur other obligations for any of its corporate purposes. To the extent that additional obligations are incurred by the City, the funds available to make payments of the principal of, and interest on, the Series 2022A Bonds may be decreased. In the event the City’s revenue sources are less than its total obligations, the City could choose to fund other activities before making payment of the principal of, and interest on, the Series 2022A Bonds. The same result could occur if State constitutional expenditure limitations were to prohibit the City from appropriating and spending all of its otherwise available revenues. Limitation on Remedies; Bankruptcy The enforceability of the rights and remedies of the Holders of the Series 2022A Bonds are subject to several limitations, including bankruptcy, moratorium, insolvency or other laws affecting creditor’s rights or remedies and is subject to general principles of equity (regardless of whether such enforceability is considered in equity or at law), to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against governmental entities in the State. In addition, the rights and remedies of the Owners may be limited by and are subject to the provisions of federal bankruptcy laws and to other laws or equitable principles that may affect the enforcement of creditors’ rights. The City is a governmental unit and therefore cannot be the subject of an involuntary case under the United States Bankruptcy Code (the “Bankruptcy Code”). However, the City is a municipality and therefore may seek voluntary protection from its creditors pursuant to Chapter 9 of the Bankruptcy Code for purposes of adjusting its debts. If the City is in bankruptcy, the parties (including the Trustee and the Owners) may be prohibited from taking any action to collect any amount from the City or to enforce any obligation of the City, unless the permission of the bankruptcy court is obtained. These restrictions may also prevent the Trustee from making payments to the holders of the Series 2022A Bonds from funds in the Trustee’s possession. The City may be able, without the consent and over the objection of the Trustee or the Owners, to alter the priority, interest rate, payment terms, maturity dates, payment sources, covenants, and other terms or provisions of the Indenture and the Series 2022A Bonds, if the bankruptcy court determines that the alterations are fair and equitable. There may be delays in payments on the Series 2022A Bonds while the court considers any of these issues. There may be other possible effects of a bankruptcy of the City that could result in delays or reductions in payments on the Series 2022A Bonds or result in losses to the Owners. Regardless of any specific adverse determinations in a City bankruptcy proceeding, the fact of a City bankruptcy proceeding could have an adverse effect on the liquidity and value of the Series 2022A Bonds.
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The opinion to be delivered by Bond Counsel concurrently with the execution and delivery of the Series 2022A Bonds will be subject to various limitations on remedies including those related to bankruptcy and the various other legal opinions to be delivered concurrently with the issuance of the Series 2022A Bonds will be similarly qualified. See APPENDIX D—FORM OF OPINION OF BOND COUNSEL. If the City fails to comply with its covenants under the Lease Agreement or fails to pay Base Rental Payments, there can be no assurance of the availability of remedies adequate to protect the interest of the Beneficial Owners of the Series 2022A Bonds. Cash Management The City has numerous internal or external means to manage its cash flow, including but not limited to interfund borrowing, intrafund borrowing and tax and revenue anticipation notes which may be employed to the extent the City Council is required to make budget adjustments to maintain a balanced budget. If the City does not take required actions and the budget remains out of balance, the cash requirements of the City may exceed available cash flow. The ability of the City to borrow on an interim basis to meet any cash shortfalls also may be limited if the budget remains out of balance for a sustained period. The City has the legal authority to issue “warrants” in place of cash to meet various types of expenditures or appropriations as an additional means to manage its cash flow. See “CITY FINANCIAL INFORMATION.” COVID-19 Pandemic The COVID-19 Pandemic has affected travel, commerce, investment values, and financial markets globally, and is widely expected to continue to affect economic output worldwide and within the City, the County, and the State. While federal and state governments (including California) have enacted legislation and taken executive actions seeking to mitigate the negative public health and economic impacts of the Pandemic, no assurances can be given that these interventions will have the intended effects, or that these interventions will continue in the future. The economic impacts on the City resulting from the COVID-19 Pandemic are discussed under “CITY FINANCIAL INFORMATION.” The ultimate impact of the COVID-19 Pandemic on the City’s operations and finances is unknown. The City has developed what it believes to be reasonable budgeted projections of the magnitude of these impacts on its revenues and on its expenditures, but the COVID-19 Pandemic is ongoing, and the City cannot predict how and when it will be resolved. Additional information about the State’s and the County’s current status can be found at the State’s website, www.covid19.ca.gov and at the County’s website www.publichealth.lacounty.gov for up-to-date information regarding COVID-19 restrictions in place in the State and in the County. Reference to the State’s and the County’s website is included in this Official Statement for general information only and information on such website is not included in this Official Statement by reference to such website. Concentration of Revenue Sources The City relies on, among other things, a 0.75% voter-approved sales tax known as Measure H. Together with the City’s portion of the State Sales Tax, the City’s combined General Fund sales tax revenues have represented approximately 37% of the City’s total General Fund revenues in recent years. An economic downturn or other reduction in commercial activity within the City resulting in lower sales tax collections could materially and adversely impact the City’s revenues and its ability to make principal payments on the Series 2022A Bonds when due. For additional discussion of sales and use taxes and of
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Measure H, see “CITY FINANCIAL INFORMATION –Primary Sources of General Fund Revenues and –Sales and Use Taxes.” Impact of Enterprise Operations on the City’s General Fund In prior years, City has made transfers from its General Fund to cover operating losses in the Golf Course Fund. The City cannot project whether the revenues in the Golf Course Fund will exceed expenditures for current and future years. If and to the extent such Golf Course Fund revenues do not exceed Golf Course Fund expenditures, additional transfers out from the City’s General Fund may be required. The City’s General Fund faces risks of unbudgeted expenditures if it becomes obligated to make debt service payments with respect to the HGI Bonds or the H2S Bonds or with respect to the Topgolf bonds if they are issued. The City does not anticipate needing to make transfers from its General Fund to pay debt service on the HGI Bonds or the H2S Bonds but changing economic circumstances could make such transfers necessary in the future if the net revenues from the Hilton Garden Inn are insufficient to pay debt service on the HGI Bonds or the net revenues from the Home2Suites are insufficient to pay debt service on the H2S Bonds. See “CITY FINANCIAL INFORMATION— Impact of Enterprise Operations on the City’s General Fund.” Natural Disasters General. From time to time, the City has been and could be subject to natural calamities, including, but not limited to, earthquake, flood or wildfire, that may adversely affect economic activity in the City, and which could have a negative impact on City finances. There can be no assurance that the occurrence of any natural calamity would not cause substantial damage to persons, property and structures in the City and could have a substantial negative effect on the City’s General Fund. Whitter Narrows Dam. The Army Corps of Engineers is beginning a $500-million repair project for the 62-year-old Whittier Narrows Dam (the “Dam”). The Dam, a 56-foot-tall earth dam, is located along the Rio Hondo and the San Gabriel Rivers and collects runoff from the uncontrolled drainage areas upstream along with releases into the San Gabriel River from the Santa Fe Dam. The reservoir portion of the Dam, with a capacity of 67,060 acre-feet, is surrounded by the cities of South El Monte (to the north), Industry (to the east), Pico Rivera (to the south), and Montebello (to the south). The Army Corps of Engineers has determined that the Dam no longer meets federal tolerable-risk guidelines and could fail in the event of a very large, very rare storm, like storms which occurred in California between December 1861 and January 1862. If such a storm were to occur, water could flow over the crest of the Dam or seepage could erode the sandy soil underneath it. These types of failures could have catastrophic effects on several Southern California communities including the City. In response to these potential dangers, the Army Corps of Engineers has classified the Dam’s repairs as the highest priority of any of the 13 “high risk” dams in the country. The construction of the repairs to the Dam started in 2021 and the repairs are expected to be completed in 2025. An extreme storm that results in a flood could significantly damage property within the City. The City cannot predict when flood or extreme storm events will occur, when or whether the repairs described above will be completed, whether other mitigation measures will be implemented, or whether FEMA or
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other funds will be available to the City in the event of a failure of the Dam. Significant flooding in the City because of the failure of the Dam could have materially adverse consequences for the City’s finances and operations, including the ability to make the payments due on the Series 2022A Bonds. Drought. The State is currently experiencing drought conditions. The Governor of the State has issued targeted emergency drought proclamations to nearly all counties across the State, including the County. The emergency drought proclamations allow for the set-aside of certain state regulatory requirements until the subsistence of drought conditions. The City and the County are presently experiencing drought conditions and are likely to continue to be affected by drought conditions in the future. Earthquake Risk. Any natural disaster or other physical calamity, including earthquake, may have the effect of damaging property in the City. The seismic safety element of the City’s General Plan lists ground shaking as the primary seismic risk to the City from a major earthquake along three faults located between 6 and 14 miles away from the City. A great earthquake along the San Andreas Fault, 33 miles from the City, would result in strong ground shaking. Risks of ground failure (such as liquefaction, landslides and rockfalls) are considered limited in the City. Ground displacement is not considered a significant risk because no active or potentially active faults are known to be present within the limits of the City. Climate Change/Adaptation/Mitigation Generally. Projections of the impacts of global climate change on the City are complex and depend on many factors that are outside the City’s control. The various scientific studies that forecast the amount and timing of adverse impacts of climate change are based on assumptions contained in such studies, but actual events may vary materially. Also, the understanding of climate change and its effects continues to evolve. Accordingly, the City is unable to forecast with certainty when and where the adverse impacts of climate change will occur or the extent of such impacts. While the impacts of climate change may be mitigated by the City’s future investment in adaptation strategies, the City can give no assurance about the net effects of those strategies and whether the City will be required to take additional adaptive mitigation measures. Endangered Species During recent years, there has been an increase in activity at both the State and federal level related to the potential classification of certain plant and animal species found in California as endangered species. An increase in the number of endangered species is expected to curtail development in certain areas of the State. At present, the City is not known to be inhabited by any plant or animal species currently classified as threatened or endangered under either the State or federal endangered species acts or which either the California Fish and Game Commission or the United States Fish and Wildlife Service has proposed for addition to these respective threatened or endangered species lists. Notwithstanding this fact, new species are periodically proposed to be added to the State and federal protected lists on a regular basis. Hazardous Substances One of the most serious risks in terms of the potential reduction in the value or use of a parcel of property is a claim about a hazardous substance. In general, the owners, lessors and/or lessees of a parcel of real property may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but California laws about hazardous substances are also stringent and similar in application. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether the owner (or operator) has contributed to or caused
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contamination with the hazardous substances. The effect, therefore, should property in the City be affected by a hazardous substance, is to reduce both marketability and the value of property by the costs of remedying the condition. While the City is not currently aware of any such condition, it is possible that such hazardous substance conditions do currently exist, and that the City has not been made aware of their existence. Potential Impact of State Financial Condition on the City During the 2008-09 recession, the State faced a structural deficit that resulted in substantial annual deficits and reductions in expenditures. Although the State has had a budget surplus in the more recent fiscal years, according to the State there remain several major risks and pressures that threaten the State’s financial condition, including the threat of recession, potential changes to federal fiscal policies and unfunded long-term liabilities of more than $200 billion related to pensions and other post-retirement benefits. These risks and financial pressures could result in future reductions or deferrals in amounts payable to the City. The State’s financial condition and budget policies affect local public agencies throughout California. To the extent that the State budget process results in reduced revenues to the City, the City will be required to adjust its budget. State budget policies can also impact conditions in the local economy and could have an adverse effect on the local economy and the City’s major revenue sources. No prediction can be made by the City as to whether the State will encounter budgetary problems in future fiscal years, and if it were to do so, it is not clear what measures would be taken by the State to balance its budget, as required by law. In addition, the City cannot predict the outcome of future State budget negotiations, the impact that such budgets will have on City finances and operations or what actions will be taken in the future by the Legislature and the Governor to deal with changing State revenues and expenditures. There can be no assurance that actions taken by the State to address its financial condition will not materially adversely affect the financial condition of the City. Current and future State budgets will be affected by national and State economic conditions and other factors over which the City has no control (see “STATE BUDGET INFORMATION”). The ability of the State to divert funds from the City has been limited by Proposition 1A and Proposition 22, which are discussed herein. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES, REVENUES AND APPROPRIATIONS.” Pension Benefit Liability Many factors influence the amount of the City’s pension benefit liabilities, including, without limitation, inflationary factors, changes in statutory provisions of CalPERS retirement system laws, changes in the level of benefits provided or in the contribution rates of the City, increases or decreases in the number of covered employees, changes in actuarial assumptions or methods (including but not limited to the assumed rate of return), mortality rates, and differences between actual and anticipated investment experience of CalPERS. Any of these factors could give rise to additional liability of the City to its pension plans because of which the City would be obligated to make additional payments to its pension plans to fully fund the City’s obligations to its pension plans. The City has issued Pension Obligations Bonds in May 2020 secured by revenue from the City’s Retirement Tax, a 1946 voter approved property tax override assessment. The City’s General Fund is responsible for any amounts due on the City’s Pension Obligation Bonds and any future liability to CalPERS not otherwise satisfied by the Retirement Tax. Additionally, any current and future retirement related expenses above and beyond the amount of available Retirement Tax will be borne directly by the City’s General Fund. For additional discussion, see “OTHER FINANCIAL INFORMATION – Employee Retirement Plans.”
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Risks Related to Cyber Security The City relies on computers and technology to conduct its operations. The City and its departments face cyber threats from time to time including, but not limited to, hacking, viruses, malware and other forms of technology attacks. The City owns and operates its own enterprise class data network serving the municipal city government and its operations. The City has retained information technology professionals to support, maintain and protect these operations locally in a purpose-built and physically secure environment. This network and its operations are governed by and in compliance with all applicable governmental regulations as well as the City’s own administrative regulations. Within the City’s operations and guidance is an active cyber-security program designed to protect from, and to quickly identify and mitigate, a multitude of complex security threats. While no network is completely immune from all possible compromise, the City exercises its due diligence in protecting the data it possesses and the systems it operates. To date, there have been no significant cyber-attacks on the City’s computers and technologies. While the City is routinely maintaining its technology systems and continuously implementing new information security controls, no assurances can be given that the City’s security and operational control measures will be successful in guarding against all cyber threats and attacks. The results of any attack on the City’s computer and technology could negatively impact the City’s operations, and the costs related to such attacks could be substantial. Secondary Market Risk There can be no assurance that there will be a secondary market for purchase or sale of the Series 2022A Bonds, and from time to time there may be no market for them, depending upon prevailing market conditions, the financial condition or market position of firms who may make the secondary market and the financial condition of the City. Changes in Law There can be no assurance that the electorate of the State will not at some future time adopt additional initiatives or that the Legislature will not enact legislation that will amend the laws or the Constitution of the State resulting in a reduction of the General Fund revenues of the City and consequently, having an adverse effect on the security for the Series 2022A Bonds. Risks Relating to the Municipal Bond Insurance Policy In the event of default of the payment of principal and interest with respect to the Series 2022A Bonds when all or some becomes due, any owner of the Series 2022A Bonds shall have a claim under the Municipal Bond Insurance Policy for such payments. The Municipal Bond Insurance Policy does not insure against redemption premium, if any. The payment of principal and interest in connection with mandatory sinking fund or optional redemption of the Series 2022A Bonds by the City which is recovered by the City from the Owner as a voidable preference under applicable bankruptcy law is covered by the Municipal Bond Insurance Policy, however, such payments will be made by the Municipal Bond Insurer at such time and in such amounts as would have been due absence such prepayment by the City unless the Municipal Bond Insurer chooses to pay such amounts at an earlier date. The Municipal Bond Insurer may direct and must consent to any remedies and the Municipal Bond Insurer’s consent may be required in connection with amendments to any applicable legal documents.
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In the event the Municipal Bond Insurer is unable to make payment of principal and interest as such payments become due under the Municipal Bond Insurance Policy, the Series 2022A Bonds are payable solely from the moneys received pursuant to the applicable legal documents. In the event the Municipal Bond Insurer becomes obligated to make payments with respect to the Series 2022A Bonds, no assurance is given that such event will not adversely affect the market price of the Series 2022A Bonds or the marketability (liquidity) for the Series 2022A Bonds. The long-term ratings on the Series 2022A Bonds are dependent in part on the financial strength of the Municipal Bond Insurer and its claim paying ability. The financial strength and claims paying ability of the Municipal Bond Insurer are predicated upon several factors which could change over time. No assurance is given that the long-term ratings of the Municipal Bond Insurer and of the ratings on the Series 2022A Bonds will not be subject to downgrade and such event could adversely affect the market price of the Series 2022A Bonds or the marketability (liquidity) for the Series 2022A Bonds. See “RATINGS.” The obligations of the Municipal Bond Insurer are general obligations of the Municipal Bond Insurer and in an event of default by the Municipal Bond Insurer, the remedies available may be limited by applicable bankruptcy law or other similar laws related to insolvency. Neither the City nor the Underwriter has made independent investigation into the claims paying ability of the Municipal Bond Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Municipal Bond Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the City to make the Lease Payments and the claims paying ability of the Municipal Bond Insurer, particularly over the life of the investment. TAX MATTERS In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Series 2022A Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), interest (and original issue discount) with respect to the Series 2022A Bonds might be taken into account in determining adjusted financial statement income for the purposes of computing the alternative minimum tax imposed on such corporations. In the further opinion of Bond Counsel, interest (and original issue discount) on the Series 2022A Bonds is exempt from State of California personal income tax. The difference between the issue price of a Series 2022A Bond (the first price at which a substantial amount of the Series 2022A Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to the Series 2022A Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to the Beneficial Owner of the Series 2022A Bond before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Beneficial Owner of a Series 2022A Bond will increase the Beneficial Owner’s basis in the applicable Series 2022A Bond. In the opinion of Bond Counsel, the
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amount of original issue discount that accrues to the Beneficial Owner of a Series 2022A Bond is excluded from the gross income of such Beneficial Owner for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the Beneficial Owner of a Series 2022A Bond is exempt from State of California personal income tax. Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Series 2022A Bonds is based upon certain representations of fact and certifications made by the Authority, the City and others and is subject to the condition that the Authority and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Series 2022A Bonds to assure that interest (and original issue discount) on the Series 2022A Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Series 2022A Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2022A Bonds. The Authority and the City will covenant to comply with all such requirements. The amount by which a Beneficial Owner’s original basis for determining loss on sale or exchange in the applicable Series 2022A Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the Beneficial Owner’s basis in the applicable Series 2022A Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a Beneficial Owner realizing a taxable gain when a Series 2022A Bond is sold by the Beneficial Owner for an amount equal to or less (under certain circumstances) than the original cost of the Series 2022A Bond to the Beneficial Owner. Purchasers of the Series 2022A Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium. Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture, the Lease Agreement and the Tax Certificate relating to the Series 2022A Bonds permit certain actions to be taken or to be omitted if a favorable opinion of a bond counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest (or original issue discount) on any Series 2022A Bond if any such action is taken or omitted based upon the advice of counsel other than Bond Counsel. Although Bond Counsel will render an opinion that interest (and original issue discount) on the Series 2022A Bonds is excluded from gross income for federal income tax purposes provided that the Authority and the City continue to comply with certain requirements of the Code, the ownership of the Series 2022A Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Series 2022A Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Series 2022A Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Series 2022A Bonds. The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the Series 2022A Bonds will be selected for audit by the IRS. It is also possible that the market value of the Series 2022A
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Bonds might be affected as a result of such an audit of the Series 2022A Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Series 2022A Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the Series 2022A Bonds or their market value. SUBSEQUENT TO THE ISSUANCE OF THE SERIES 2022A BONDS THERE MIGHT BE FEDERAL, STATE, OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR INTERPRETATIONS OF FEDERAL, STATE, OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE, OR LOCAL TAX TREATMENT OF THE SERIES 2022A BONDS INCLUDING THE IMPOSITION OF ADDITIONAL FEDERAL INCOME OR STATE TAXES BEING IMPOSED ON OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE SERIES 2022A BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE SERIES 2022A BONDS. NO ASSURANCE CAN BE GIVEN THAT SUBSEQUENT TO THE ISSUANCE OF THE SERIES 2022A BONDS STATUTORY CHANGES WILL NOT BE INTRODUCED OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF THE SERIES 2022A BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE SERIES 2022A BONDS. The form of Bond Counsel’s proposed opinion with respect to the Series 2022A Bonds is attached hereto in APPENDIX D—PROPOSED FORM OF BOND COUNSEL OPINION. CERTAIN LEGAL MATTERS The validity of the Series 2022A Bonds and certain other legal matters are subject to the approving opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX D—PROPOSED FORM OF BOND COUNSEL OPINION. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. Bond Counsel and Disclosure Counsel will receive compensation from the City contingent upon the sale and delivery of the Series 2022A Bonds. From time to time, Bond Counsel represents the Underwriter on matters unrelated to the Series 2022A Bonds. Quint & Thimmig LLP is acting as Disclosure Counsel for the City. Certain legal matters will be passed upon for the Underwriter by Nixon Peabody LLP, Los Angeles, California, for the Trustee by its counsel and for the Municipal Bond Insurer by its counsel. Counsel to the Underwriter will receive compensation contingent upon the issuance of the Series 2022A Bonds. ABSENCE OF LITIGATION To the best knowledge of the City and the Authority, there is no action, suit or proceeding pending or threatened either restraining or enjoining the execution or delivery of the Series 2022A Bonds, the Lease Agreement, the Site and Facility Lease or the Indenture, or in any way contesting or affecting the validity of the foregoing or any proceedings of the Authority or the City taken with respect to any of the foregoing.
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UNDERWRITING The Series 2022A Bonds are being purchased by Cabrera Capital Markets, LLC (the “Underwriter”). The Underwriter will purchase the Series 2022A Bonds from the Authority at an aggregate purchase price of $__________ (representing the principal amount of the Series 2022A Bonds, plus an original issue premium of $_________ and less an Underwriter’s discount of $__________). The purchase agreement relating to the Series 2022A Bonds provides that the Underwriter will purchase all of the Series 2022A Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in such purchase agreement, the approval of certain legal matters by counsel and certain other conditions. The initial offering prices that are stated on the inside front cover page of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Series 2022A Bonds to certain dealers (including dealers depositing Series 2022A Bonds into investment trusts), dealer banks, banks acting as agent and others at prices lower than said public offering prices. RATINGS S&P is expected to assign a rating of “AA” to the Series 2022A Bonds based upon the delivery of the Municipal Bond Insurance Policy by the Municipal Bond Insurer at the time of issuance of the Series 2022A Bonds. S&P has assigned the Series 2022A Bonds the rating of “A” without regard to the delivery of the Municipal Bond Insurance Policy. Such ratings reflect only the views of S&P and any desired explanation of the significance of such ratings should be obtained from S&P. Generally, a rating agency bases its ratings on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance such ratings will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of the rating may have an adverse effect on the market price of the Series 2022A Bonds. None of the Authority, the City or the Underwriter has undertaken any responsibility to bring to the attention of the owners of the Series 2022A Bonds a proposed change in or withdrawal of the ratings or to oppose any such proposed revision or withdrawal. MUNICIPAL ADVISOR Urban Futures, Inc., Tustin, California (the “Municipal Advisor”), served as municipal advisor to the Authority and the City with respect to the sale of the Series 2022A Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Series 2022A Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.
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CONTINUING DISCLOSURE The City has covenanted for the benefit of the Owners of the Series 2022A Bonds to provide annually certain financial information and operating data relating to the Series 2022A Bonds and the City (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. For a complete listing of items of information which will be provided in each Annual Report and further description of the City’s undertaking with respect to the Annual Report and certain enumerated events, see APPENDIX E—FORM OF CONTINUING DISCLOSURE CERTIFICATE. The Annual Report is to be provided by the City not later than nine months following the end of the City’s fiscal year (which presently ends on June 30), commencing with the report for the fiscal year ending June 30, 2022 and due March 31, 2023. The Annual Report will be filed by the City with the Municipal Securities Rulemaking Board. These covenants have been made in order to assist the Underwriter in complying with SEC Rule 15c2-12(b)(5). Within the last five years, there have been certain failures regarding filings relating to the City’s Successor Agency: With respect to the Successor Agency to the Community Redevelopment Agency of the City of Montebello Subordinate Tax Allocation Refunding Bonds, Series 2015A, (1) a table showing total tax revenues was omitted for 2016 to 2021 fiscal years, (2) a table showing subordinate pledged tax revenues was filed late as follows: (a) 2018 fiscal year, filed 1,031 days late and four CUSIP numbers were not tagged to the filing, (b) 2017 fiscal year, filed 666 days late and four CUSIP numbers were not tagged to the filing, and (c) 2016 fiscal year, filed 301 days late and four CUSIP numbers were not tagged to the filing. With respect to the Successor Agency to the Community Redevelopment Agency of the City of Montebello Subordinate Tax Allocation Refunding Bonds, Series 2015B, tables showing total tax revenues and subordinate pledged tax revenues were omitted for 2016 to 2018 fiscal years. With respect to the Community Redevelopment Agency of the City of Montebello 2002 Housing Tax Allocation Parity Bonds, for fiscal years 2016 to 2021, all-in debt service coverage provided in the annual reports was sufficient, but the all-in debt service coverage calculations used in annual reports were incorrect. With respect to the Community Redevelopment Agency of the City of Montebello Taxable Housing Tax Allocation Bonds, 1997 Series B, for fiscal years 2016 to 2018, all-in debt service coverage provided in the annual reports was sufficient, but the all-in debt service coverage calculations used in annual reports were incorrect. All required corrective filings have been made. Otherwise, within the last five years, the City has not failed to comply with continuing disclosure obligations related to any of the Authority’s , the City’s or the Successor Agency’s outstanding obligations pursuant to SEC Rule 15c2-12(b)(5). FINANCIAL STATEMENTS OF THE CITY Included as APPENDIX C—ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021, are the City’s audited financial statements for the Fiscal Year ended June 30, 2021, together with the report thereon dated January 26, 2022, of the
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Auditor. The Auditor has not undertaken to update the audited financial statements of the City or its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event after its report dated January 26, 2022. MISCELLANEOUS References are made herein to certain documents and reports which are brief summaries thereof which do not purport to be complete or definitive and reference is made to such documents and reports for full and complete statements of the contents thereof. Copies of the Indenture, the Lease Agreement, the Site and Facility Lease and other documents are available, upon request, and upon payment to the City of a charge for copying, mailing and handling, from the City Clerk at the City of Montebello, 1600 West Beverly Boulevard, Montebello, California 90640. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority or the City and the purchasers or Owners of any of the Series 2022A Bonds. The execution and delivery of this Official Statement have been duly authorized by the Authority and the City. MONTEBELLO PUBLIC FINANCING AUTHORITY By Executive Director CITY OF MONTEBELLO By City Manager
APPENDIX A GENERAL, ECONOMIC AND DEMOGRAPHIC INFORMATION RELATING TO THE CITY AND THE COUNTY The following information concerning the City of Montebello and Los Angeles County is included only for the purpose of supplying general information regarding the City and the County. The Series 2022A Bonds are not a debt of the County, the State or any of its political subdivisions, and none of the County, the State nor any of their political subdivisions, except for the City, are liable therefor. Although reasonable efforts have been made to include up-to-date information in this Appendix A, some of the information is not current due to delays in reporting of information by various sources. It should not be assumed that the trends indicated by the following data would continue beyond the specific periods reflected herein. Introduction The City of Montebello (the “City”) is situated in eastern Los Angeles County, California (the “County”). The City encompasses 8.2 square miles and is located 9 miles east of downtown Los Angeles. The City has access to three freeways: the San Gabriel River Freeway (State Highway 605) to the east, the Santa Ana Freeway (Interstate 5) to the south and the Pomona Freeway (State Highway 60) to the north. The City is a balanced community with light industry, residential areas, and commercial centers. It is bordered to the north by the cities of Los Angeles Park and Rosemead, to the east by the City of Pico Rivera, and to the west by the City of Commerce. Other surrounding cities include the cities of Bell Gardens, Whittier, South El Monte and Los Angeles. The City was incorporated as a general law city in 1920. The City operates under the Council-Manager member form of government. The five City Council members, including the Mayor, are elected to four-year terms on alternate slates every two years. The Mayor and the Mayor Pro Tem are selected by the City Council to serve two-year terms. The City Council appoints a City Manager. The population of the City was estimated to be 64,247 as of January 1, 2019. The County is in the Southern region of the State of California (the “State”). The County boarders 70 miles of coast on the Pacific Ocean and encompasses mountain ranges, valleys, forests, islands, lakes, rivers and desert. It is one of California’s original 27 counties and was established on February 18, 1850. It is one of the nation’s largest counties with 4,084 square miles and has the largest population of any county in the nation - nearly 10 million residents who account more than one quarter of California’s population. As a subdivision of the state, the County is charged with providing numerous services that affect the lives of all residents, including law enforcement, tax collection, public health protection, public social services, elections and flood control. The County is home to 88 incorporated cities and many unincorporated areas. In between the large desert portions of the County ― which make up around 40% of its land area ― and the heavily urbanized central and southern portions, sit the San Gabriel Mountains, containing the Angeles National Forest. The County is a charter county governed by a five-member elected Board of Supervisors. Each member serves alternating four-year terms and is elected by residents from their respective supervisorial districts to serve four-year terms. The other elected officials of the County are the Assessor, District Attorney and Sheriff. The County is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion—larger than the GDPs of Belgium, Norway, and Taiwan. The County serves as the central trade district for the western United States and the gateway to the Asian economies. The County is one of the most ethnically diverse counties in the U.S. The county seat, the City of Los Angeles, is also California’s most populous city and the nation’s second largest city with about 4 million people.
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Population The table below summarizes population of the City, the County, and the State for the last five years. CITY OF MONTEBELLO, LOS ANGELES COUNTY, and CALIFORNIA Population Year City of Montebello Los Angeles County State of California 2018 63,837 10,192,593 39,519,535 2019 63,558 10,163,139 39,605,361 2020 63,264 10,135,614 39,648,938 2021 62,180 9,931,338 39,303,157 2022 61,622 9,861,224 39,185,605 Source: California Department of Finance, E-4 Population Estimate for Cities, Counties, and the State, 2010-22, with 2010 Census Benchmark. Employment The following table summarizes historical employment and unemployment for the County, the State, and the United States: LOS ANGELES COUNTY, CALIFORNIA, and UNITED STATES Civilian Labor Force, Employment, and Unemployment (Annual Averages) Unemployment Year Area Labor Force Employment Unemployment Rate (1) 2017 Los Angeles County 5,123,900 4,883,600 240,300 4.7% California 19,312,000 18,393,100 918,900 4.8 United States 160,320,000 153,337,000 6,982,000 4.4 2018 Los Angeles County 5,136,300 4,896,500 239,800 4.7 California 19,398,200 18,582,800 815,400 4.2 United States 162,075,000 155,761,000 6,314,000 3.9 2019 Los Angeles County 5,121,600 4,894,300 227,300 4.4 California 19,411,600 18,627,400 784,200 4.0 United States 163,539,000 157,538,000 6,001,000 3.7 2020 Los Angeles County 4,921,500 9,291,700 629,800 12.8 California 18,821,200 16,913,100 1,908,100 10.1 United States 160,742,000 147,795,000 12,947,000 8.1 2021(2) Los Angeles County 4,994,100 4,548,900 445,200 8.9 California 18,923,200 17,541,900 1,381,200 7.3 United States 161,204,000 152,581,000 8,623,000 5.3 Source: California Employment Development Department, Monthly Labor Force Data for Counties, Annual Average 2010-21, and US Department of Labor. (1) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures available in this table. (2) Latest available full-year data.
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Major Employers in the City and Industries in the County The following table lists the top 10 employers within the City for the 2021 calendar year. CITY OF MONTEBELLO Top 10 Employers For the 2021 Calendar Year(1) % of Employer Employees Total Montebello Unified School District 1,264 4.51% Beverly Hospital 945 3.38 City of Montebello 431 1.54 JCPenny 215 .77 Bimbo Bakery 315 1.13 Macy’s 308 1.10 Rio Hondo Convalescent Hospital 202 .72 Monarch Litho Inc. 170 .61 Wilbur Curtis CO 160 .57 Kaiser Permanente Montebello 124 .44 Total Top 10 4,134 14.76 Source: City of Montebello 2020-21 Annual Comprehensive Financial Report. (1) Latest available full-year data. The table below sets forth the principal industries in the County in 2021. LOS ANGELES COUNTY 2021 PRINCIPAL INDUSTRIES Industry # of Employees % of Total Educational & Health Services 839,300 19.91% Trade, Transportation and Utilities 804,600 19.09 Professional & Business Services 598,800 14.21 Government g558,700 13.26 Leisure & Hospitality 438,300 10.40 Manufacturing 306,900 7.28 Financial Activities 209,300 4.97 Information 177,000 4.20 Construction 148,100 3.51 Other Services 127,100 3.02 Ten Largest Industries 4,208,100 99.85 All Other Industries 6,400 .15 Total 4,214,500 100.00 Source: Los Angeles County 2020-21 ACFR.
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Construction Activity The following table reflects the five-year history of building permit valuation for the City and the County: CITY OF MONTEBELLO Building Permits and Valuation (Dollars in Thousands) 2017 2018 2019 2020 2021(2) Permit Valuation: New Single-family $ 35 $ 251 $ 5,023 $ 1,020 $ 1,977 New Multi-family 5,044 5,956 3,400 420 340 Res. Alterations/Additions 3,738 4,952 5,758 1,810 1,046 Total Residential 9,682 11,159 14,182 3,250 3,364 Total Nonresidential 9,350 9,558 50,750 3,0899 3,185 Total All Building 19,033 20,718 64,932 6,340 6,550 New Dwelling Units: Single Family 1 3 33 6 28 Multiple Family 35 72 15 2 6 Total 36 75 48 8 34 LOS ANGELES COUNTY Building Permits and Valuation (Dollars in Thousands) 2017 2018 2019 2020 2021(2) Permit Valuation: New Single-family $ 2,352,614 $ 2,277,101 $ 1,967,219 $ 1,874,304 $ 2,085,629 New Multi-family 3,257,833 3,222,530 2,961,257 2,789,673 3,026,725 Res. Alterations/Additions 1,757,904 1,941,369 1,625,839 1,014,422 908,148 Total Residential 7,368,352 7,441,001 6,554,315 5,678,400 6,020,503 Total Nonresidential 6,037,502 6,694,097 6,589,601 3,513,049 1,863,348 Total All Building 13,405,855 14,135,098 13,143,917 9,191,449 7,883,851 New Dwelling Units: Single Family 5,456 6,070 5,738 6,198 7,327 Multiple Family 17,023 17,152 15,884 14,056 16,718 Total 22,479 23,222 21,626 20,254 23,045 Source: Construction Industry Research Board: “Building Permit Summary.” Note: Columns may not sum to totals due to independent rounding. (1) Latest available full year data. Household Effective Buying Income “Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, State and local), nontax payments (fines, fees, penalties, etc.) and personal
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contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.” The following table summarizes the median household effective buying income for the City, the County, the State and the nation for the past five years. CITY OF MONTEBELLO, LOS ANGELES COUNTY, STATE OF CALIFORNIA AND UNITED STATES Median Household Effective Buying Income 2017 2018 2019 2020 2021 City of Montebello $ 44,962 $ 46,113 $ 48,508 $ 52,012 $ 61,201 Los Angeles County 54,720 56,831 60,174 62,353 71,404 California 59,646 62,637 65,870 67,956 77,058 United States 50,735 52,841 55,303 56,790 64,448 Source: Nielsen, Inc.
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APPENDIX B SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS The following is a brief summary of the provisions of the Indenture, the Site and Facility Lease, the Lease Agreement and the Assignment Agreement. This summary is not intended to be definitive, and Owners of the Series 2022A Bonds should refer to the documents for the complete text thereof. Copies of the documents summarized herein are available from the City. [TO COME]
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APPENDIX C ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021
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APPENDIX D PROPOSED FORM OF BOND COUNSEL OPINION [Closing Date] Montebello Public Financing Authority Montebello, California Re: $__________* Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A Ladies and Gentlemen: We have acted as bond counsel to the Montebello Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of $______* Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A (the “Bonds”), pursuant to the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Bond Law”), and pursuant to an Indenture, dated as of September 1, 2014, as supplemented, as further supplemented by a Third Supplemental Indenture, dated as of October 1, 2022 (collectively, the “Indenture”), by and among the Authority, the City of Montebello (the “City”) and The Bank of New York Mellon Trust Company, N.A., as Trustee. The Bonds will be principally secured by lease payments to be made by the City pursuant to a Lease Agreement, dated as of September 1, 2014, as amended, as further amended by a Third Amendment to Lease Agreement, dated as of October 1, 2022 (collectively, the “Lease”), by and between the Authority and the City. We have examined the law and such certified proceedings and other documents, agreements, opinions and matters as we deem necessary to render this opinion. This opinion is based on current statutory and constitutional law and published court decisions as of the date hereof. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Indenture. As to questions of fact material to our opinion, we have relied upon representations of the Authority contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. We have assumed the genuineness of all documents and signatures presented to us, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions referred to in the preceding paragraphs of this opinion. Furthermore, we have assumed compliance with all covenants and agreements contained in the Indenture, the Lease and the Site and Facility Lease. We call attention to the fact that the rights and obligations under the Bonds, the Indenture, the Lease, the Site and Facility Lease, the Assignment Agreement and the Tax Certificate may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, by the application of equitable principles and the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against cities and public agencies in the State of California. Based upon the foregoing we are of the opinion, under existing law, as follows: 1. The Authority is a joint exercise of powers authority duly organized and validly existing under the laws of the State of California with the full power to enter into the Indenture and the Lease, to perform the agreements on its part contained therein and to issue the Bonds. * Preliminary, subject to change.
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2. The Indenture and the Lease have each been duly authorized, executed and delivered by the Authority and the Indenture and the Lease constitute the valid and binding obligations of the Authority enforceable against the Authority in accordance with their respective terms. The Indenture creates a valid pledge of the Base Rental Payments and other moneys pledged under the Indenture, subject to the provisions of the Indenture. 3. The Indenture and the Lease have each been duly authorized, executed and delivered by the City and the Indenture and the Lease constitute the valid and binding obligations of the City enforceable against the City in accordance with their respective terms. 4. The Bonds have been duly and validly authorized by the Authority and are legal, valid and binding limited obligations of the Authority, enforceable in accordance with their terms and the terms of the Indenture. The Bonds are limited obligations of the Authority payable solely from the Base Rental Payments and other moneys pledged under the Indenture as provided in the Indenture, but are not a debt of the City, the State of California or any other political subdivision thereof within the meaning of any constitutional or statutory limitation, and, neither the faith and credit nor the taxing power of the City, the State of California, or any of its political subdivisions is pledged for the payment thereof. The Authority has no taxing power. 5. Under existing statutes, regulations, rulings and judicial decisions, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), interest (and original issue discount) with respect to the Bonds might be taken into account in determining adjusted financial statement income for the purposes of computing the alternative minimum tax imposed on such corporations. 6. Interest (and original issue discount) on the Bonds is exempt from personal income taxes imposed in the State of California. 7. The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Bond Owner will increase the Bond Owner’s basis in the applicable Bond. Original issue discount that accrues to the Bond Owner is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals (as described in paragraph 5 above) and is exempt from State of California personal income tax. 8. The amount by which a Bond Owner’s original basis for determining loss on sale or exchange in the applicable Bond (generally the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium which must be amortized under Section 171 of the Code; such amortizable Bond premium reduces the Bond Owner’s basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner. The opinions expressed in paragraphs (5) and (7) above as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Bonds are subject to the condition that the Authority and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Authority and the City have covenanted to comply with all such requirements. Except as
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set forth in paragraphs (5), (6), (7) and (8) above, we express no opinion as to any tax consequences related to the Bonds. Certain requirements and procedures contained or referred to in the Indenture, the Lease and Tax Certificate may be changed, and certain actions may be taken, under the circumstances and subject to the terms and conditions set forth in the Indenture, the Lease and Tax Certificate, upon the advice or with the approving opinion of counsel nationally recognized in the area of tax-exempt obligations. We express no opinion as to the effect on the exclusion of interest on the Bonds from gross income for federal income tax purposes on and after the date on which any such change occurs or action is taken upon the advice or approval of counsel other than Stradling Yocca Carlson & Rauth, a Professional Corporation. Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. The opinions expressed herein are based upon an analysis of existing statutes, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities. We call attention to the fact that the foregoing opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether such actions or events are taken (or not taken) or do occur (or do not occur). Our engagement with respect to the Bonds terminates upon their issuance, and we disclaim any obligation to update the matters set forth herein. We express no opinion herein with respect to any indemnification, contribution, choice of law, choice of forum, penalty or waiver provisions contained in the Bonds, the Indenture, the Lease, the Site and Facility Lease or the Assignment Agreement; nor do we express any opinion with respect to the state or quality of title to any of the real or personal property described in the Indenture, the Lease or the Site and Facility Lease, or the accuracy or sufficiency of the description of any such property contained therein, or the remedies available to enforce liens on, any such property contained therein. We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, nor do we express any opinion with respect to the state or quality of title to any of the real or personal property. We expressly disclaim any duty to advise the Owners of the Bonds with respect to the matters contained in the Official Statement and any other offering material relating to the Bonds. Respectfully submitted,
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APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the “Disclosure Certificate”) is executed and delivered by the CITY OF MONTEBELLO, CALIFORNIA (the “City”) in connection with the execution and delivery by the Montebello Public Financing Authority (the “Authority”) of its $______* Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A (the “Series 2022A Bonds”). The Series 2022A Bonds are being executed and delivered pursuant to an Indenture, dated as of September 1, 2014, as supplemented, as further supplemented by a Third Supplemental Indenture, dated as of October 1, 2022, by and among the Authority, the City of Montebello (the “City”) and The Bank of New York Mellon Trust Company, N.A., as trustee (collectively, the “Indenture”). The Series 2022A Bonds are payable from the base rental payments to be made by the City under the Lease Agreement, dated as of September 1, 2014, as amended, as further amended by a Third Amendment to Lease Agreement, dated as of October 1, 2022 (collectively, the “Lease Agreement”), between the Authority, as lessor, and the City, as lessee. This Disclosure Certificate is being entered into by the City for the benefit of the Owners and Beneficial Owners of the Series 2022A Bonds and in order to assist the Underwriter in complying with the Rule (defined below). Section 1. Definitions. In addition to the definitions set forth above and in the Indenture which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 1, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means the date that is nine months after the end of the City’s fiscal year (currently March 31 based on the City’s fiscal year end of June 30). “Dissemination Agent” shall mean, initially, Urban Futures, Inc., or any successor Dissemination Agent designed in writing by the City and which has been filed with the then current Dissemination Agent a written acceptance of such designation. “Fiscal Year” means any twelve–month period beginning on July 1 in any year and extending to the next succeeding June 30, both dates inclusive, or any other twelve–month period selected and designated by the City as its official fiscal year period under a certificate of the City filed with the Trustee. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the City in connection with the issuance of the Series 2022A Bonds. “Participating Underwriter” means Cabrera Capital, Inc., the original underwriter of the Series 2022A Bonds. “Rule” means Rule 15c2–12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time. “Significant Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. * Preliminary, subject to change.
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Section 2. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Series 2022A Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2– 12(b)(5). Section 3. Provision of Annual Reports. (a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 31, 2023, with the report for fiscal year 2021-22 provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Significant Event under Section 5(b). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. (b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City in a timely manner shall provide (or cause the Dissemination Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall: (i) determine each year prior to the Annual Report Date the then–applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided. Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following: (a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
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(b) Unless otherwise provided in the audited financial statements filed on or prior to the annual filing deadline for Annual Reports provided for in Section 3 above, financial information and operating data with respect to the City for preceding fiscal year, as follows: (i) Table 1—General Fund Balance Sheet; (ii)Table 2A—Historical General Fund Revenues, Expenditures and Changes in Fund Balances; (iii) Table 4— Primary Sources of General Fund Revenues; (iv) Table 5—Assessed Valuations; (v) Table 6— Assessed Valuation and Parcels By Land Use; (vi) Table 7— Largest Local Secured Property Taxpayers; (vii) Table 8— Secured Tax Charge and Delinquency; and (viii) Amounts, if any, paid by the City from its General Fund with respect to the HGI Bonds, the H2S Bonds and, if and when issued, the Topgolf bonds. (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. (d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. (a) The City shall give, or cause to be given, notice of the occurrence of any of the following Significant Events with respect to the Series 2022A Bonds: (i) Principal and interest payment delinquencies; (ii) Non–payment related defaults, if material; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (vii) Modifications to rights of security holders, if material; (viii) Bond calls, if material, and tender offers; (ix) Defeasances; (x) Release, substitution, or sale of property securing repayment of the securities, if material; (xi) Rating changes;
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(xii) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person; (xiii) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (xiv) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (xv) The incurrence of a financial obligation of the City or other obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City or other obligated person, any of which affect security holders, if material; and (xvi) A default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City or other obligated person, any of which reflect financial difficulties. (b) The City shall or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Significant Event. Notwithstanding the foregoing, notice of Significant Events described in subsection (a)(viii) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Series 2022A Bonds under the Indenture. (c) The City acknowledges that the events described in subparagraphs (a)(ii), (a)(vii), (a)(viii) (if the event is a bond call), (a)(x), (a)(xiii), (a)(xiv) and (a) (xv) of this Section 5 contain the qualifier “if material.” The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that the City determines the event’s occurrence is material for purposes of U.S. federal securities law. The City intends that the words used in paragraphs (xv) and (xvi) and the definition of “financial obligation” to have the meanings ascribed thereto in the Rule. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(xii) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City or an obligated person in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City or an obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Series 2022A Bonds. If such termination occurs prior to the final maturity of the Series 2022A Bonds, the City shall give notice of such termination in the same manner as for a Significant Event under Section 5(b). Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.
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Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4, 5(a), 5(b) or 5(c), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Series 2022A Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Series 2022A Bonds, after considering any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Series 2022A Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Series 2022A Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. The Dissemination Agent shall not be obligated to enter into any amendment increasing or affecting its duties or obligations hereunder. A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Significant Event under Section 5(b). Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Significant Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Significant Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Significant Event. Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Series 2022A Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
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Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) Article VIII of the Indenture is hereby made applicable to this Disclosure Certificate as if this Disclosure Certificate were (solely for this purpose) contained in the Indenture. The Dissemination Agent shall be entitled to the protections and limitations from liability afforded to the Trustee thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Series 2022A Bond holders or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Series 2022A Bonds. (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Series 2022A Bonds and shall create no rights in any other person or entity. Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. Date: [Closing Date] CITY OF MONTEBELLO By Name Title ACKNOWLEDGED: URBAN FUTURES, INC., as Dissemination Agent By Authorized Officer
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EXHIBIT A NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Name of Obligor: City of Montebello Name of Issue: Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A Date of Issuance: [Closing Date] NOTICE IS HEREBY GIVEN that the Obligor has not provided an Annual Report with respect to the above-named Issue as required by the Continuing Disclosure Certificate, dated [Closing Date], furnished by the Obligor in connection with the Issue. The Obligor anticipates that the Annual Report will be filed by _________________. Date: ________________ URBAN FUTURES, INC., as Dissemination Agent By Authorized Officer
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APPENDIX F BOOK-ENTRY ONLY SYSTEM The information in this section concerning DTC and DTC’s book-entry only system has been obtained from sources that the Authority believes to be reliable, but the Authority takes no responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the Series 2022A Bonds, payment of principal, premium, if any, accreted value and interest on the Series 2022A Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Series 2022A Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. 1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Series 2022A Bonds (the “Securities”). The Securities will be issued as fully registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered Security certificate will be issued for each maturity of the Securities in the aggregate principal amount of such maturity and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue. 2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings highest rating: “AA+.” The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information set forth on such website is not incorporated herein by reference. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
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authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Securities within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Principal, redemption price and interest payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. If applicable, a Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to tender/remarketing agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to tender/remarketing agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to tender/remarketing agent’s DTC account. 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the Authority or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. The Authority may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
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APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY
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MUNICIPAL BOND
INSURANCE POLICY
ISSUER:
BONDS: $ in aggregate principal amount of
Policy No: -N
Effective Date:
Premium: $
ASSURED GUARANTY MUNICIPAL CORP. ("AGM"), for consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the "Trustee") or paying agent (the "Paying Agent") (as set forth in the documentation providing for the issuance of and securing the Bonds) for the Bonds, for the benefit of the Owners or, at the election of AGM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.
On the later of the day on which such principal and interest becomes Due for Payment or the Business Day next following the Business Day on which AGM shall have received Notice of Nonpayment, AGM will disburse to or for the benefit of each Owner of a Bond the face amount of principal of and interest on the Bond that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by AGM, in a form reasonably satisfactory to it, of (a) evidence of the Owner's right to receive payment of the principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner's rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in AGM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by AGM is incomplete, it shall be deemed not to have been received by AGM for purposes of the preceding sentence and AGM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, who may submit an amended Notice of Nonpayment. Upon disbursement in respect of a Bond, AGM shall become the owner of the Bond, any appurtenant coupon to the Bond or right to receipt of payment of principal of or interest on the Bond and shall be fully subrogated to the rights of the Owner, including the Owner's right to receive payments under the Bond, to the extent of any payment by AGM hereunder. Payment by AGM to the Trustee or Paying Agent for the benefit of the Owners shall, to the extent thereof, discharge the obligation of AGM under this Policy.
Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. "Business Day" means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer's Fiscal Agent are authorized or required by law or executive order to remain closed. "Due for Payment" means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity unless AGM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. "Nonpayment" means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. "Nonpayment" shall also include, in respect of a Bond, any payment of principal or interest that is Due for Payment made to an Owner by or on behalf of the Issuer which has been recovered from such Owner pursuant to the
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United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction. "Notice" means telephonic or telecopied notice, subsequently confirmed in a signed writing, or written notice by registered or certified mail, from an Owner, the Trustee or the Paying Agent to AGM which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount and (d) the date such claimed amount became Due for Payment. "Owner" means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that "Owner" shall not include the Issuer or any person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.
AGM may appoint a fiscal agent (the "Insurer's Fiscal Agent") for purposes of this Policy by giving written notice to the Trustee and the Paying Agent specifying the name and notice address of the Insurer's Fiscal Agent. From and after the date of receipt of such notice by the Trustee and the Paying Agent, (a) copies of all notices required to be delivered to AGM pursuant to this Policy shall be simultaneously delivered to the Insurer's Fiscal Agent and to AGM and shall not be deemed received until received by both and (b) all payments required to be made by AGM under this Policy may be made directly by AGM or by the Insurer's Fiscal Agent on behalf of AGM. The Insurer's Fiscal Agent is the agent of AGM only and the Insurer's Fiscal Agent shall in no event be liable to any Owner for any act of the Insurer's Fiscal Agent or any failure of AGM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.
To the fullest extent permitted by applicable law, AGM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to AGM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy.
This Policy sets forth in full the undertaking of AGM, and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, (a) any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity and (b) this Policy may not be canceled or revoked. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW.
In witness whereof, ASSURED GUARANTY MUNICIPAL CORP. has caused this Policy to be executed on its behalf by its Authorized Officer.
ASSURED GUARANTY MUNICIPAL CORP.
By
Authorized Officer
A subsidiary of Assured Guaranty Municipal Holdings Inc. 1633 Broadway, New York, N.Y. 10019
(212) 974-0100
Form 500NY (5/90)
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APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the “Disclosure Certificate”) is executed and delivered by the CITY OF MONTEBELLO, CALIFORNIA (the “City”) in connection with the execution and delivery by the Montebello Public Financing Authority (the “Authority”) of its $______* Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A (the “Series 2022A Bonds”). The Series 2022A Bonds are being executed and delivered pursuant to an Indenture, dated as of September 1, 2014, as supplemented, as further supplemented by a Third Supplemental Indenture, dated as of October 1, 2022, by and among the Authority, the City of Montebello (the “City”) and The Bank of New York Mellon Trust Company, N.A., as trustee (collectively, the “Indenture”). The Series 2022A Bonds are payable from the base rental payments to be made by the City under the Lease Agreement, dated as of September 1, 2014, as amended, as further amended by a Third Amendment to Lease Agreement, dated as of October 1, 2022 (collectively, the “Lease Agreement”), between the Authority, as lessor, and the City, as lessee. This Disclosure Certificate is being entered into by the City for the benefit of the Owners and Beneficial Owners of the Series 2022A Bonds and in order to assist the Underwriter in complying with the Rule (defined below). Section 1. Definitions. In addition to the definitions set forth above and in the Indenture which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 1, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means the date that is nine months after the end of the City’s fiscal year (currently March 31 based on the City’s fiscal year end of June 30). “Dissemination Agent” shall mean, initially, Urban Futures, Inc., or any successor Dissemination Agent designed in writing by the City and which has been filed with the then current Dissemination Agent a written acceptance of such designation. “Fiscal Year” means any twelve–month period beginning on July 1 in any year and extending to the next succeeding June 30, both dates inclusive, or any other twelve–month period selected and designated by the City as its official fiscal year period under a certificate of the City filed with the Trustee. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement executed by the City in connection with the issuance of the Series 2022A Bonds. “Participating Underwriter” means Cabrera Capital, Inc., the original underwriter of the Series 2022A Bonds. “Rule” means Rule 15c2–12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time. “Significant Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. * Preliminary, subject to change.
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Section 2. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Series 2022A Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2– 12(b)(5). Section 3. Provision of Annual Reports. (a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 31, 2023, with the report for fiscal year 2021-22 provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Significant Event under Section 5(b). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. (b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City in a timely manner shall provide (or cause the Dissemination Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall: (i) determine each year prior to the Annual Report Date the then–applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided. Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following: (a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
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(b) Unless otherwise provided in the audited financial statements filed on or prior to the annual filing deadline for Annual Reports provided for in Section 3 above, financial information and operating data with respect to the City for preceding fiscal year, as follows: (i) Table 1—General Fund Balance Sheet; (ii)Table 2A—Historical General Fund Revenues, Expenditures and Changes in Fund Balances; (iii) Table 4— Primary Sources of General Fund Revenues; (iv) Table 5—Assessed Valuations; (v) Table 6— Assessed Valuation and Parcels By Land Use; (vi) Table 7— Largest Local Secured Property Taxpayers; (vii) Table 8— Secured Tax Charge and Delinquency; and (viii) Amounts, if any, paid by the City from its General Fund with respect to the HGI Bonds, the H2S Bonds and, if and when issued, the Topgolf bonds. (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. (d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. (a) The City shall give, or cause to be given, notice of the occurrence of any of the following Significant Events with respect to the Series 2022A Bonds: (i) Principal and interest payment delinquencies; (ii) Non–payment related defaults, if material; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (vii) Modifications to rights of security holders, if material; (viii) Bond calls, if material, and tender offers; (ix) Defeasances; (x) Release, substitution, or sale of property securing repayment of the securities, if material; (xi) Rating changes;
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(xii) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person; (xiii) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (xiv) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (xv) The incurrence of a financial obligation of the City or other obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City or other obligated person, any of which affect security holders, if material; and (xvi) A default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City or other obligated person, any of which reflect financial difficulties. (b) The City shall or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Significant Event. Notwithstanding the foregoing, notice of Significant Events described in subsection (a)(viii) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Series 2022A Bonds under the Indenture. (c) The City acknowledges that the events described in subparagraphs (a)(ii), (a)(vii), (a)(viii) (if the event is a bond call), (a)(x), (a)(xiii), (a)(xiv) and (a) (xv) of this Section 5 contain the qualifier “if material.” The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that the City determines the event’s occurrence is material for purposes of U.S. federal securities law. The City intends that the words used in paragraphs (xv) and (xvi) and the definition of “financial obligation” to have the meanings ascribed thereto in the Rule. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(xii) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City or an obligated person in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City or an obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Series 2022A Bonds. If such termination occurs prior to the final maturity of the Series 2022A Bonds, the City shall give notice of such termination in the same manner as for a Significant Event under Section 5(b). Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.
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Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4, 5(a), 5(b) or 5(c), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Series 2022A Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Series 2022A Bonds, after considering any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Series 2022A Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Series 2022A Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. The Dissemination Agent shall not be obligated to enter into any amendment increasing or affecting its duties or obligations hereunder. A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Significant Event under Section 5(b). Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Significant Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Significant Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Significant Event. Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Series 2022A Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
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Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) Article VIII of the Indenture is hereby made applicable to this Disclosure Certificate as if this Disclosure Certificate were (solely for this purpose) contained in the Indenture. The Dissemination Agent shall be entitled to the protections and limitations from liability afforded to the Trustee thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Series 2022A Bond holders or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Series 2022A Bonds. (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Series 2022A Bonds and shall create no rights in any other person or entity. Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. Date: [Closing Date] CITY OF MONTEBELLO By Name Title ACKNOWLEDGED: URBAN FUTURES, INC., as Dissemination Agent By Authorized Officer
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EXHIBIT A NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Name of Obligor: City of Montebello Name of Issue: Montebello Public Financing Authority Lease Revenue Bonds, Series 2022A Date of Issuance: [Closing Date] NOTICE IS HEREBY GIVEN that the Obligor has not provided an Annual Report with respect to the above-named Issue as required by the Continuing Disclosure Certificate, dated [Closing Date], furnished by the Obligor in connection with the Issue. The Obligor anticipates that the Annual Report will be filed by _________________. Date: ________________ URBAN FUTURES, INC., as Dissemination Agent By Authorized Officer
VAN EV VANACCESSIBLEFUT. EVCLEAN AIR
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VANVAN
FUT.EVCLEAN AIRFUT.EVCLEAN AIR
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DO NOT POLLUTE DRAINS TO WATERWAYS
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DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLAST
DO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLAST
DO NOT POLLUTEDRAINS TOWATERWAYSDO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
FUT.EVCLEAN AIR
FUT.EVCLEAN AIR
CLEAN AIR
CLEAN AIR
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
CLEAN AIR
CLEAN AIR
CLEAN AIR
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NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
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NYLOPLAST DUCTILE IRON
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
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SD
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STL
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NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
NYLOPLASTDO NOT POLLUTEDRAINS TOWATERWAYS
DO NOT POLLUTE DRAINS TO WATERWAYS
NYLOPLAST DUCTILE IRON
WM
FEC
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airwall mountpowerwasher
golf cart storage items
grass seedstorage
flatwarestorageflatwarestorageflatwarestorage
golf rackgolf rack
golf rackgolf rack
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FUT. EVCLEAN AIR
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Project NumberDateDrawn By::: Revisions:
SHEETOF
All ideas, designs, and arrangements indicated on these drawingsare intended to be used in connection with this specific projectonly and shall not otherwise be used for any purpose whatsoeverwithout the written consent of SportFive. There shall be nochanges or deviations from these drawings or the accompanyingspecifications without the written consent of SportFive.
MONTEBELLO MUNICIPAL GOLF COURSE MONTEBELLO, CALIFORNIARENOVATION PROJECT 217
GOLFCOURSESITE PLAN
GOLFCOURSEDESIGNPLANS
FUTUREDEVELOPMENT
TOPGOLF
TOPGOLFPARKING
GOLFCLUBHOUSE
GOLFPARKING
EVENTLAWN
EXISTING LAKE
EXISTINGLAKEEXPANDEDLAKE
NEW ENTRY ROAD
VIA SAN CLEMENTE
EXISTINGHOME2 SUITESHOTEL
EXISTINGGOLF COURSEMAINTENANCE
EXISTINGQUIET CANNONEVENT FACILITYEXISTINGHILTONGARDEN INN
EXISTINGMONUMENT
VIA CAMPO
N. GARFIELD AVEPARKING
NORTH050100200300
MJA22 - 01
SPORTFIVE7077 E. Marilyn Road, Suite 140Scottsdale, Arizona 85254(480) 483-9500 RICK SMITH4400 NW 87th AveDoral, Florida 33178(305) 591-6487 SIX-HOLE & TEN-HOLE SHORT COURSEThe new six-hole golf course is designed for fun and players of allabilities. In addition to a relaxed, casual atmosphere, the new six-holecourse will help avid, more skilled golfers practice and improve their shortgame. There are six-holes that range from 50 yards to 90 yards in length.In the late afternoon when the regulation length Nine-Hole Course closes,the six-hole short course will convert to a ten-hole short course. Fouradditional short holes also ranging from 50-90 yards will be available forplay. A ten-hole short course will allow for a more substantial golfexperience and create an energy and vibrant atmosphere adjacent to thenew Golf Clubhouse. The ten-hole short course will be lighted for play tocontinue well into the night.This unique golf experience is inclusive for all, golfers of all abilities andnon-golfers. Being located near Topgolf, people on a wait-list for Topgolfmight be interested in playing this short course. We estimate the six-holecourse can be played in under 60 minutes, and the ten-hole course inunder 90 minutes. No cart paths on this course, a great walkableexperience to enjoy. For maximum playability and revenue the ten-holecourse will be overhead lighted and have on-course music.The location of the six-hole course works well with the Golf Clubhouse.We recommend considering a small “Starter” type patio / gathering areaadjacent to Hole 1 tee, providing golf operations control and a greatatmosphere for post round enjoyment.Small synthetic turf tees are designed into the golf course. Because ofthe amount of play, and short wedge shots on each hole. Real turf teeswill not grow and be a maintenance issue. Also, the synthetic tees “guide”people where to play from and will increase efficiency in time of play. Inaddition, the synthetic tees will be more consistent playing surface and bemore casual and less intimidating for the beginner or non-golfer.The new six-hole golf course consists of approximate 6.3 acres ofirrigated turf area. The existing lake is proposed to expand to 1.2 acres.The lake expansion will add to the golf experience, provide a challenge,be memorable and be an added value to the new Entry Drive experience.All areas of the course will be reshaped and include synthetic tees, newbunkers and new greens. New golf course drainage will be installed andconnected to the existing and new in ground storm drainage system. Allnew efficient irrigation system will be installed. All existing trees will becarefully reviewed and determined if appropriate to remain or be removedfor playability and better turf conditions. Additional trees will be installedas needed. All new turf will be planted consisting of Bermuda grass fortees, fairways and rough, and Bentgrass for all green surfaces.
NINE-HOLE GOLF COURSEThe new nine-hole golf course is designed for players of all abilities, withmultiple tees at various yardages. Bunker placement is dictated forchallenge of the avid, better golfer and not a beginner. Green sizes willbe larger for multiple pin options and best quality greens turf conditionspossible.The new routing of the golf course and sequence of golf holes wasdesigned for playability, enjoyment and safety. The golf course will beenjoyable and easy to walk. During the round, golfers will have the optionto return to the Golf Clubhouse after Hole #4. During the round, golferswill have access to the existing on-course restroom after Hole #4 andagain after Hole #7.Options of playing a four-hole loop (Holes 1, 2, 3, 4) is provided.Beginners to the game of golf or people on a wait-list for Topgolf might beinterested in playing a four hole loop.The new nine-hole golf course consists of approximate 54.6 acres ofirrigated turf area. Three existing lakes are to remain and incorporatedinto the new golf course. One of the existing lakes will be expanded as anentry feature adjacent to the new Entry Drive, as well as an integral partof the Short Course. One of the existing lakes will be used as a featureand in view from the new Golf Clubhouse, as well as an integral part ofthe Short Course.All areas of the course will be reshaped and include all new tees andbunkers. New golf course drainage will be installed and connected to theexisting and new in ground storm drainage system. All new efficientirrigation system will be installed. Golf cart paths will be continuous cartpaths. All existing trees will be carefully reviewed and determined ifappropriate to remain or be removed for playability and better turfconditions. Additional trees will be installed as needed. All new turf willbe planted consisting of Bermuda grass for tees, fairways and rough, andBentgrass for all green surfaces.
HoleParYards 1 3 90 2 3 80 3 3 70 4 3 80 5 3 50 6 3 70Total 18 440 SIX-HOLEShort CourseHoleParYards 1 3 90 2 3 80 3 3 70 4 3 80 5 3 50 6 3 70 7 3 60 8 3 90 9 3 80 10 3 90Total 30 760 TEN-HOLEShort Course
NINE-HOLE GOLF COURSEHolePar Yards BlackBlueWhiteRed 1 5 505495485450 2 4 430420410390 3 4 355345335310 4 4 390380370350 5 3 225215205180 6 4 430420410390 7 4 365355345320 8 4 350340330315 9 3 135125115100 Total 353,1853,0953,0052,805
SHORT COURSE
EXISTING LAKE
July 22, 2022
EXISTINGRESTROOM
IRRIGATIONPUMP STATION NINE-HOLEREGULATIONLENGTH GOLFCOURSE
SIX-HOLE&TEN-HOLESHORTCOURSE
ITEM # 14
CITY OF MONTEBELLO
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Michael Chee, Director of Public Affairs & Information Technology SUBJECT: APPROVAL OF MEMORANDUM OF UNDERSTANDING NO. 22-22
BETWEEN THE CITY OF MONTEBELLO AND THE MONTEBELLO
UNIFIED SCHOOL DISTRICT, APPROVING AN AGREEMENT TO
SHARE COMMUNICATION PLATFORMS
DATE: September 14, 2022
RECOMMENDATION(S):
RECOMMENDATION: It is recommended that the City Council:
1) Approve a Memorandum of Understanding to share communication platforms with Montebello Unified School District (MUSD), and
2) Authorize the City Manager to execute the agreement.
FISCAL IMPACT:
There is no fiscal impact associated with recommended actions.
BACKGROUND:
The City of Montebello and the Montebello Unified School District (MUSD) have long desired to share communications of significance and importance among residents, students, parents and employees of both organizations in order to more effectively and completely share information that impacts or affects both organizations. Approval of a Memorandum of Understanding (MOU) between the City and MUSD will allow for the sharing of information across both City and school district platforms, creating a platform
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
to more efficiently share important communication items.
City staff consulted and collaborated with MUSD leadership to develop the language contained in the attached MOU. The MOU has a term that will be effective upon ratification and run for two years through September 30, 2024, at which time efficacy can be reviewed for any necessary adjustments or improvements to shared communications.
ENVIRONMENTAL IMPACT:
N/A
ANALYSIS:
N/A
DISCUSSION:
N/A
SUMMARY:
Staff recommends that the City Council adopt the MOU in order to expand and enhance communication activities and efforts between the City and the MUSD.
ATTACHMENT(S):
1. Attachment A - MOU No. 22-22
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CITY OF MONTEBELLO
MEMORANDUM OF UNDERSTANDING NO. 22-22
WITH MONTEBELLO UNIFIED SCHOOL DISTRICT
This Memorandum of Understanding (MOU) is made and entered into as of the 14th day of September, 2022, by and between the City of Montebello, a California municipal corporation (City), and the Montebello Unified School District, a public school district in California that serves the City of Montebello (District), and is made with reference to the following:
RECITALS
WHEREAS, the City produces and issues various types and forms of public communications and notices to the general public and residents of Montebello; and WHEREAS, the District has a need or desires to partner with the city’s various communications vehicles for informing students and parents living in Montebello, and the residents of the City; and
WHEREAS, the City and the District desire to partner, share and leverage communication vehicles to improve information dissemination within the City, among residents and the constituents of the District; and
WHEREAS, this MOU will allow for the sharing of content and its distribution through the communication platforms and vehicles owned and leveraged by both the City and District agencies. The content to be shared between the agencies will be related to City and District activities and business; and WHEREAS, communications of mutual interest will be accomplished by distribution of information through specific communication methods. For example (but limited to), the following platforms:
Social Media
Digital Media (Website, Digital Ads)
Email
Broadcast
Print
Traditional Media (Press Release, Media Alert)
Each party is responsible for the creation of original content and the copy within. Each party is responsible for providing content and graphic designs compliant with each vehicle and shall inform the other of desired communication with appropriate lead time to accommodate such information.
NOW, THEREFORE, IT IS AGREED by and between the City and the Organization as follows:
1. Term. The term of this MOU shall commence on September 14, 2022, (“Effective Date”), and expire on December 31, 2023, or upon the earlier termination by mutual agreement of the City and District, whichever comes first (“Termination Date”).
MEMORANDUM OF UNDERSTANDING NO. 22-22
2. Duties and Rights of the City.
(a) The City shall permit the use of the City’s communications vehicles in accordance with the terms of this MOU and any other applicable federal, state, County, or City policies, regulations, ordinances, resolutions or policies in effect at the time of full execution of this MOU. (b) The City shall coordinate, manage and schedule messages as requested by the District.
(c) The City shall make reasonable efforts to accommodate message requests by the District; provided City message vehicles are available, operational and accessible during the dates and times requested. (d) The City reserves the right at its sole discretion to revoke, suspend, or limit the use of the Facility previously granted after providing reasonable notice to the Organization for any reason, including but not limited to breach of any covenant contained in this MOU by the Organization. The City is not liable for any costs or expense incurred by the Organization related to or arising from the City’s revocation, suspension or limitation of the use of the Facility.
3. Duties of the District. In consideration of the City’s grant of the use of its communications vehicles set forth in Section 2 above, the District agrees to the following:
(a) The District hereby acknowledges that the use of City’s communication vehicles is conditioned upon compliance with all applicable laws and regulations regarding their use, which include but are not limited to: (i) any COVID Protocols required by the County; and (ii) any COVID-19 related regulations or restrictions imposed by the federal government, the State of California, the County, or the City; and (iii) any provisions of this MOU. (b) The District acknowledges and agrees that it will be solely responsible for providing content and notifying or scheduling with the City Public Affairs staff with adequate lead time to accommodate timeliness of the message.
Nevertheless, lack of knowledge shall not excuse or waive any of the District’s obligations outlined in this MOU.
4. Indemnification. The District acknowledges and agrees that the City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers (“City Parties”) should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost (“Claims”) arising out of or in any way related to its obligations under this MOU.
MEMORANDUM OF UNDERSTANDING NO. 22-22
The obligations under this Section shall survive the expiration or early termination of this MOU.
5. Termination. The City and the District shall have the right to terminate this MOU with ten (10) days prior written notice to the other party.
6. Relationship. Nothing in this MOU shall be construed as creating a partnership, employment, joint venture, principal agent, or any other relationship between the City and the District.
7. Duration. This MOU is at-will and may be modified by mutual consent of authorized officials from. This MOU shall become effective upon signature by the authorized officials from the Montebello Unified School District and the City of Montebello and will remain in effect until modified or terminated by any one of the partners by mutual consent. In the absence of mutual agreement by the authorized officials from Montebello Unified School District and the City of Montebello this MOU shall end on 12/31/2023.
CITY:
Attn: Michael Chee
Director of Public Affairs
City of Montebello
1600 W. Beverly Blvd.
Montebello, California 90640
ORGANIZATION:
Attn: Kaivan Yuen, Asst. Superintendent
Montebello Unified School District
123 South Montebello Blvd.
Montebello, CA 90640
8. Warranty. The City and District affirm and acknowledge that each has received independent legal advice from its attorneys with respect to this MOU or been provided with an opportunity to receive independent legal advice. The Organization also affirms and acknowledges that it has carefully read through the provisions of the MOU and understands its contents, including the waivers and releases provided herein, and freely and voluntarily agrees to abide by and be bound by the terms of this MOU.
9. Governing Law and Venue. This MOU and all matters relating to it shall be governed by the laws of the State of California and any disputes or actions regarding this MOU shall be brought in a court of competent jurisdiction in the County of Los Angeles in the State of California.
10. Entire Agreement. All information contained in items 1 through 11 of this MOU constitute the entirety of this agreement. No other actions are considered part of this MOU.
MEMORANDUM OF UNDERSTANDING NO. 22-22
11. Amendments. Amendments to this MOU shall be effective and binding only if made in writing and executed by the City and the District. [Signatures on the following page]
MEMORANDUM OF UNDERSTANDING NO. 22-22
TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Memorandum of Understanding on the Effective Date set forth above.
(“CITY”) (“DISTRICT”)
CITY OF MONTEBELLO MONTEBELLO UNIFIED SCHOOL
DISTRICT
René Bobadilla, City Manager Kaivan Yuen, Asst. Superintendent Educational Services
ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
ITEM # 15
CITY OF MONTEBELLO
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Joseph Palombi, Director of Planning & Community Development SUBJECT: ADOPT RESOLUTION NO. 22-76 - DECLARATION OF EXEMPT SURPLUS LAND OF CITY-OWNED PROPERTY LOCATED AT 5055
PASSONS BOULEVARD (LOS ANGELES COUNTY ASSESSOR'S
PARCEL NO. 6377-007-270)
DATE: September 14, 2022
RECOMMENDATION(S):
RECOMMENDATION: It is recommended that the City Council:
1) Adopt Resolution No. 22-76 (Attachment A) to formally declare the property located at 5055 Passons Boulevard as exempt surplus land; and
2) Take such additional, related, action that may be desirable.
FISCAL IMPACT:
This particular action does not have a fiscal impact. However, the land does have value and subsequent discussions with the City of Pico Rivera will be held regarding the potential disposition of this surplus, city-owned property.
BACKGROUND:
The subject site is comprised of a total lot area of approximately 19,611 square feet and was developed in 1963 with an existing 1,186 square foot building. The site is utilized as a layover/terminal point or stop for certain bus routes operated by the Montebello Bus Lines. Additionally, Los Angeles Metro route 265 utilizes the location as a layover.
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
ENVIRONMENTAL IMPACT:
Pursuant to the California Environmental Quality Act ("CEQA"), this project is exempt from CEQA under the common sense rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. (14 CCR § 15061). Because it can be seen with certainty that there is no possibility that the declaration of exempt surplus land (the "Project") will have a significant effect on the environment, the Project is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3).
ANALYSIS:
The California Surplus Land Act (Government Code section 54220, et seq.), or “the SLA”, governs the sale, lease or other transfer of government-owned surplus lands and requires local agencies to prioritize opportunities for certain uses, including affordable housing development, for any land the entity may sell or lease. Effective January 1, 2020, Assembly Bill ("AB") No. 1486 and AB No. 1255 amended the SLA to require local agencies to formally declare publicly owned property which is not necessary for the local agency’s use as surplus land prior to disposition. The property may be declared either “surplus” or “exempt surplus” by the legislative body of the local agency, in a regular public meeting, as supported by written findings.
Under the SLA, surplus land must follow a statutory noticing and negotiation period with certain designated entities, including eligible low-income housing sponsors defined by the California Department of Housing and Community Development ("HCD"). However, certain exempt surplus land does not have to follow these procedural requirements of the SLA.
Exempt surplus land is defined to include surplus land that a local agency is transferring to another local, state or federal agency for the agency’s use (Gov. Code § 54221 (f)(1)(D). The City has no current plans to develop or make improvements on this property; the declaration as exempt surplus land and the adoption of the attached resolution will be the first step in allowing the disposition process to move forward in accordance with the SLA.
DISCUSSION:
The City of Pico Rivera has continued to express interest in purchasing the subject site as it meets its requirements for a proposed open space amenity. The City of Pico Rivera intends to develop the property as an open space for public use based on community- driven design concepts that improve equitable access to outdoor recreation opportunities for healthy living. The proposed Passons Active Depot (the "PAD") will include areas to walk and observe nature, outdoor exercise equipment or water fountains and restrooms.
The PAD will also act as a rest area or bicycle repair station for cyclists using the PAD from nearby trails, transit, and local businesses to encourage a sustainable regional transportation system environment and support healthy and equitable communities. The
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
City expects a growth in cyclists, park patrons, and local walkers in the vicinity of the PAD. Promoting alternative modes of transportation, the City also anticipates a less congested Passons Boulevard.
SUMMARY:
Staff recommends that the City Council consider adopting the proposed Resolution to formally declare the subject property as exempt surplus land pursuant to Gov. Code § 54221(f)(1)(D) and authorize the City Manager or designee to take the necessary actions to comply with the Surplus Land Act (Gov. Code §§ 54220, et seq.).
ATTACHMENT(S):
1. Attachment A - Resolution No. 22-76 (5055 Passons Blvd - Surplus Land Act Exemption)
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ATTACHMENT A
RESOLUTION NO. 22-76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA, DECLARING A CITY-OWNED PROPERTY LOCATED AT 5055 PASSONS BOULEVARD (ASSESSOR’S PARCEL NO. 6377-007-270) AS “EXEMPT SURPLUS LAND” PURSUANT TO GOVERNMENT CODE SECTION 54221(F)(1)(D)
WHEREAS, the City of Montebello, California (“City”) is the owner in fee simple of one parcel of real property located at 5055 Passons Boulevard, Pico Rivera, California (Assessor’s Parcel Number [“APN”] 6377-007-270) (the “Property”); and WHEREAS, the parcel is zoned R-M (Multi-Family Residential); and WHEREAS, effective January 1, 2020, significant amendments to the Surplus Land Act (“SLA”) Government Code Section 54220 et seq., went into effect providing the framework and state law requirements for disposal of surplus real property owned in fee by a public agency; and WHEREAS, under the SLA, land owned by the City must be declared either “Surplus Land” or “Exempt Surplus Land;” and
WHEREAS, for land declared Surplus Land, the City must give notice to various public agencies and affordable housing developers of the land’s availability before the City may dispose of the land;
WHEREAS, the SLA provides exemptions from the application of the SLA and its procedural requirements surplus land that is declared “Exempt Surplus Land,” which includes local agency land that is transferred to another local, state, or federal agency for the transferee agency’s use; and
WHEREAS, the City desires to sell the Property to another local agency, the City of Pico Rivera, which intends to use the Property for a public purpose; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, the City Council of the City of Montebello hereby finds, declares, and resolves as follows:
SECTION 1. The foregoing recitals are true and correct and are hereby incorporated as substantive findings of this Resolution.
SECTION 2. Based on the above Recitals, the staff report accompanying this Resolution, and such other written and testimonial evidence, the City Council of the City of Montebello hereby finds and declares the Property Exempt Surplus Land pursuant to California Government Code Section 54221(f)(1)(D). The Property is land owned by a local agency that upon approval by the City, is to be transferred to another local agency – the City of Pico Rivera to be used for a public purpose.
SECTION 3. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”).
The City Council finds that this Resolution is exempt under CEQA Guidelines Section 15312 – Class 12 (Surplus Government Property Sales) and pursuant to CEQA Guidelines Section
RESOLUTION NO. 22-76
15060(c)(3) because the Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
SECTION 4. The City Manager or his or her designee is authorized to submit the report of declared surplus land and exempt surplus land, in conformance with state law, and the City Clerk shall file a Notice of Exemption pursuant to CEQA Guidelines Section 15062.
SECTION 5. The City Manager or his or her designee is hereby authorized to take such actions that are reasonably necessary to comply with the SLA and effectuate the intent of this Resolution.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
SECTION 7. The Mayor and City Clerk are authorized to subscribe this Resolution where indicated below to evidence its approval by the City Council.
PASSED AND ADOPTED this 14th day of September, 2022 by the City Council. _______________________________
Kimberly A. Cobos-Cawthorne, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 22-76 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 14th day of September 2022 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
RESOLUTION NO. 22-76
The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
DATE: ________________ ____________________________ Christopher Jimenez, City Clerk
ITEM # 16
CITY OF MONTEBELLO
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Joseph Palombi, Director of Planning & Community Development SUBJECT: ADOPT RESOLUTION NO. 22-77 APPROVING SIGN LEASE AGREEMENT NO. 4026 FOR THE PROPOSED DIGITAL SIGN FOR THE PROPERTY LOCATED AT 315 N. GARFIELD AVENUE AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE SIGN LEASE
AGREEMENT
DATE: September 14, 2022
RECOMMENDATION(S):
RECOMMENDATION: It is recommended that the City Council:
1) Approve Sign Lease Agreement No. 4026 between The Archdiocese of Los Angeles Education and Welfare Corporation and Cantwell-Sacred Heart of Mary High School, and the City of Montebello for the property located at 315 N. Garfield Avenue; and 2) Authorize the City Manager to execute the Sign Lease Agreement for usage of a proposed digital sign at 315 N. Garfield Avenue; and
3) Take such additional, related, action that may be desirable.
FISCAL IMPACT:
Pursuant to the Sign Lease Agreement (“Lease”), the City of Montebello (as the “Lessee”) will pay The Archdiocese of Los Angeles Education and Welfare Corporation and Cantwell-Sacred Heart of Mary High School (collectively the “Lessor”) rent in the amount of one dollar ($1.00) per year for the right to use a digital sign for City announcements. This annual payment will commence on the date the sign becomes
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
operational and capable of displaying messages. All permitting and construction costs associated with the digital sign will be paid by the Lessor. Funding for the annual rent payment for usage of the digital sign totaling one dollar ($1.00) will be included in subsequent budgets.
BACKGROUND:
The City of Montebello has an opportunity to enter into the Lease with the Archdiocese of Los Angeles Education and Welfare Corporation and Cantwell-Sacred Heart of Mary High School for the right to use a proposed digital sign (Attachment B) at the property located at 315 N. Garfield Avenue, Montebello, CA 90640, identified as Los Angeles County Assessor’s Parcel No. 6343-028-008 (the “Property”). The Property is owned by the Archdiocese of Los Angeles Education and Welfare Corporation and located along a well-traveled corridor within the City. The City will periodically utilize the digital sign for City announcements, including emergency messaging, sponsored events, and advertising for events/programs (“City Ads”) that serve the needs of the City and its residents and businesses. Pursuant to the Lease, the City would be permitted to advertise up to 12 City events during the calendar year (January through December) with the ability to use up to five percent (5%) of the total advertising time for City Ads.
If the Lease is approved, the City’s ability to use the digital sign for future messaging would require the submittal of a proposed message copy including any graphics to Lessor not less than ten (10) business days prior to the date the message is proposed to be displayed. The City Ads must be in a format ready for posting on the sign in accordance with the Lease.
The Lease will enhance the City’s ability to provide information to the public as needed as well as provide a unique opportunity to utilize a key corridor for advertising City events, job recruitment efforts, etc. For example, the Lease will allow the City to use the digital sign to, among other things, advertise community meetings and events for citywide initiatives such as the General Plan Update. In addition, the sign could be used to advertise food distribution and public activities. The terms in this Lease are similar to terms included in other agreements between the City and other operators, with relatively no cost to the City.
ENVIRONMENTAL IMPACT:
The adoption of the proposed Resolution is not subject to the California Environmental Quality Act ("CEQA") because CEQA Guidelines Section 15060(c)(2) states that a project is not subject to CEQA review where the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment and is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which states that a project is exempt from CEQA “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The City’s participation in the Lease for public messaging opportunities at the Property will not result in a direct or reasonably foreseeable indirect physical change to the environment and there is no possibility that the Lease will have a significant effect on the environment
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
because the Property will continue to be used as a deemed approved educational institution with related amenities pursuant to Conditional Use Permit No. 13-62 (approved August 1962) and any future changes to the Property shall comply with CEQA at that time.
ANALYSIS:
N/A
DISCUSSION:
N/A
SUMMARY:
Staff recommends that the City Council adopt the proposed Resolution approving the Lease of the digital sign at the Property and authorizing the City Manager to execute the Lease, and any reasonably related documents, on behalf of the City to move forward with securing the City’s ability to use the property for public messaging and City Ads.
ATTACHMENT(S):
1. Attachment A - Resolution 22-77_CSHM_Signage Agreement
2. Attachment B - Sign Lease Agreement
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ATTACHMENT A
RESOLUTION NO. 22-77
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTEBELLO APPROVING THE SIGN LEASE AGREEMENT FOR
THE PROPERTY LOCATED AT 315 N. GARFIELD AVENUE
RECITALS
WHEREAS, the City of Montebello (the “City” or “Lessee”) intends to utilize a digital sign owned by the Archdiocese of Los Angeles Education and Welfare Corporation and Cantwell-Sacred Heart of Mary High School (collectively “Lessor”) for the periodic display of public messaging at 315 N. Garfield Avenue (Los Angeles County Assessor’s Parcel Number 6343-028-008) (the “Property”); and
WHEREAS, the Lessor is the owner of said proposed digital sign located at the Property; and
WHEREAS, the City desires to enter into the Sign Lease Agreement (the “Lease”) between Lessor and Lessee for a 10-year term to allow the City to display City related advertising and public messaging opportunities pursuant to the Lease; and WHEREAS, the City shall pay to Lessor annual rent in the amount of one dollar ($1.00) per year commencing on the date the digital sign becomes operational; and WHEREAS, the City desires to enter into the Lease for City advertising and public messaging opportunities pursuant to the Lease; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:
SECTION 1: The City Council hereby finds that the above recitals are true and correct and incorporate them herein as part of the findings.
SECTION 2: Based upon all information presented to the City Council during its consideration of this matter, the City Council hereby approves the Lease as long as there is no change to price or description of annual payment and messaging opportunities, which final agreement shall be approved as to form by the City Attorney’s office.
SECTION 3: The City Council further authorizes the City Manager to execute the Lease, and any ancillary documents reasonably necessary to finalize the Lease and effectuate the intent of this Resolution.
SECTION 4: The adoption of the proposed Resolution is not subject to the California Environmental Quality Act (CEQA) because CEQA Guidelines section 15060(c)(2) states that a project is not subject to CEQA review where the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment and is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which
RESOLUTION NO. 22-77
states that a project is exempt from CEQA “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The City’s participation in the Lease for public messaging opportunities at the Property will not result in a direct or reasonably foreseeable indirect physical change to the environment and there is no possibility that the Lease will have a significant effect on the environment because the Property will continue to be used as an approved educational institution with related amenities pursuant to Conditional Use Permit No. 13- 62 (approved in August 1962) and any future changes to the Property shall comply with CEQA at that time.
SECTION 5: That the City Clerk shall certify to the passage and adoption of this Resolution and that the same shall be in full force and effect.
APPROVED AND ADOPTED this 14th day of September 2022.
_______________________________
Kimberly A. Cobos-Cawthorne, Mayor
ATTEST:APPROVED AS TO FORM:
________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 22-77 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 14 th day of September 2022 and that said Resolution was adopted by the following vote, to-wit:
RESOLUTION NO. 22-77
AYES:
NOES:
ABSTAIN:
ABSENT:
The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
DATE:
Christopher Jimenez, City Clerk
ATTACHMENT B
CITY OF MONTEBELLO
SIGN LEASE AGREEMENT NO. 4026
WITH THE ARCHDIOCESE OF LOS ANGELES EDUCATION AND WELFARE
CORPORATION AND CANTWELL-SACRED HEART OF MARY HIGH SCHOOL This Sign Lease Agreement (“Lease”) is made and effective on _________ (“Effective Date”), by and between the Archdiocese of Los Angeles Education and Welfare Corporation and Cantwell-Sacred Heart of Mary High School (collectively “Lessor”) and the City of Montebello, a municipal corporation (referred to as either “Lessee” or “City”). The Lessor and Lessee are at times collectively referred to hereinafter as the “Parties” or individually as the “Party.” THEREFORE, in consideration of the mutual promises herein, contained and other good and valuable consideration, it is agreed by the Parties as follows:
1. SIGN. Lessor does hereby lease and demise to Lessee, for outdoor advertising purposes, a digital sign fronting the Lessor’s property located at 315 N. Garfield Ave., Montebello, California 90640 or Los Angeles County Assessor’s Parcel No. 6343-028-008 (the “Sign”) as legally described and depicted in Exhibit “A-1 and A-2” attached hereto and incorporated by this reference. The Sign shall remain the exclusive property of Lessor and Lessor shall have the right to remove the Sign at the expiration or earlier termination of this Lease. Lessor desires to lease the Sign to Lessee, and Lessee desires to lease the Sign from Lessor subject to the terms and upon the covenants, conditions, and provisions herein set forth.
2. TERM OF LEASE. The term of this Lease shall be ten (10) years commencing on the date the Sign becomes operational (the “Initial Term”). This Lease will renew automatically at the end of the Initial Term on a year- to-year basis, unless this lease is terminated pursuant to Paragraph 3.
3. TERMINATION OF LEASE. During the Initial Term, either Party may terminate this Lease if the other Party breaches the terms set forth herein. The non-breaching Party shall send written notice to the breaching Party specifying the breach. The breaching Party shall then have thirty (30) days to cure the specified breach. If the breaching Party fails to cure the specified breach within such period of time, the non-breaching Party may terminate this Lease. After the Initial Term, either Party terminate this Lease at any time upon giving thirty (30) days written notice of termination.
4. RENTAL. Lessee shall pay to Lessor annual rent in the amount of one dollar ($1.00) per year commencing on the Sign’s Operational Date. For purposes of this Section, the Operational Date shall mean the date that the Sign is legal and functionally capable of displaying advertising or messages.
5. LESSEE’S RIGHT TO USE SIGN. Lessor hereby grants Lessee a non-exclusive right to use the Sign for the advertisement of City announcements, sponsored events, and programs that serve the needs of the City and its residents and businesses (“City Ad”) . Lessee is permitted to advertise up to (12) City events per calendar year and the right to use up to five percent (5%) of the total advertising time for City Ads. The City Ad shall be displayed during the Sign’s operating hours spread out equally through the Sign’s operating hours for a period of two (2) weeks prior to the advertised City event in the same manner as other advertisements displayed on the Sign, but in no case shall the City Ad be displayed for less than eight (8) seconds at a time.
The City shall submit a proposed copy to Lessor not less than ten (10) business days prior to the date the copy is proposed to be displayed. All proposed City Ads shall be prepared by and submitted at the City’s sole cost and, shall be in a format ready for posting on the Sign. Lessor , in its sole discretion, shall have the right to reject, in writing to the Lessee no less than five (5) business days prior to the date the copy is proposed to be displayed, any proposed content that
LEASE AGREEMENT NO. 4026
would conflict with the teachings and values of the Catholic Church. Lessee represents and warrants that all copy, content, and materials supplied by City for display under this Lease: (i) are owned or duly licensed by Lessee and do not infringe or misappropriate the rights of any other person or entity; (ii) comply with all applicable federal, state, and local laws, rules and regulations and any industry codes or rules by which Lessee and/or Lessor may be bound and do not contain any obscene, libelous, slanderous or otherwise defamatory materials or refer in an offensive manner to the gender, race or ethnicity of any individual or group; (iii) are accurate and that all claims contained therein have been substantiated; and (iv) do not infringe upon any copyright, trademark or other intellectual property or privacy right of any third party.
6. ASSIGNMENTS AND SUBLEASES. Lessee may not assign or otherwise transfer this Lease or any interest herein, and this Lease is not assignable by operation of law without Lessor’s prior written consent. Lessor shall respond in writing within thirty (30) days of receipt of any request by Lessee for an assignment or sublease of this Lease.
7. UTILITIES. Lessor shall be responsible for electricity and other services and utilities in connection with the use and operation of the Sign during the Term of the Lease. Lessee shall have no responsibility for any utilities costs, fees, or assessments associated with the operation of the Sign whatsoever.
8. PROPERTY TAXES. Lessor shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the lease term.
9. MAINTENANCE AND REPAIR. Lessor shall be responsible for all the repair and maintenance of the Sign and related improvements on the premises at the sole cost of the Lessor.
Lessor does not guarantee that the Sign will be operational at all times. Lessor shall run City Ads so long as the Sign is operational.
10. MUTUAL INDEMNIFICATION. Each Party hereby agrees to indemnify, defend and hold the other Party, its officials, officers, employees, consultants, contractors, and agents (collectively, “Representatives”) harmless from and against any and all damages or other amounts payable to a third party claimant, as well as any reasonable attorneys’ fees and costs of litigation (collectively, “Damages”) arising out of or resulting from any claim, suit, proceeding or cause of action (each, a “Claim”) brought by a third party against a Party or its Representatives based on any act or omission by the indemnifying Party or its Representatives. .
11. ATTORNEYS FEES. In the event that any action is brought by either Party as against the other Party for the enforcement or declaration of any right or remedy in or under this Lease or for the breach of any covenant or condition of this Lease, the prevailing party will be entitled to recover, and the other party agrees to pay, all fees and costs to be fixed by the court including, but not limited to, attorneys’ fees.
12. NOTICE. Lessor and Lessee shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other Party.
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows:
If to Lessor: The Archdiocese of Los Angeles Education and Welfare Corporation 3424 Wilshire Boulevard
Los Angeles, CA 90010
Attn: Real Estate Department
With a copy to: Cantwell-Sacred Heart of Mary High School
LEASE AGREEMENT NO. 4026
315 N. Garfield Avenue
Montebello, CA 90640
Attn: School Principal
If to Lessee: City of Montebello
1600 W. Beverly Blvd.
Montebello, CA 90640
Attn: Director of Planning and Community Development
13. FINAL AGREEMENT. This Lease constitutes the entire agreement among the Parties and there are no conditions, representations, or agreements regarding the subject matter of this Lease, which are not expressed herein. This Lease supersedes any prior or contemporaneous agreements, representations, and negotiations.
14. MODIFICATIONS. Neither modification of this Lease nor any waiver of a provision hereof shall be of any force or effect unless the same is in writing and signed by the Parties hereto.
Lessor and Lessee agree to mutually consider reasonable requests for amendments to this Lease that may be made by either of them, provided such requests are consistent with this Lease and would not materially alter the basic terms included in this Lease.
15. TITLES AND HEADINGS . Titles and headings used in this Lease are for convenience of reference only and shall not be considered in interpreting the meaning of any provision of this lease.
16. SEVERABILITY. If any term, provision, condition or covenant of this Lease or its application to any Party or circumstance is held, to any extent, invalid or unenforceable, the remainder of this Lease, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, will not be affected and will be valid and enforceable to the fullest extent permitted by law.
17. GOVERNING LAW. This Lease shall be governed, construed and interpreted by, through and under the laws of the State of California.
[Signatures on the following page]
LEASE AGREEMENT NO. 4026
IN WITNESS WHEREOF, the Parties have executed this Lease as of the day and year first above written.
THE ARCH DIOCESE OF LOS ANGELES
EDUCATION AND WELFARE
CORPORATION, A CORPORATION SOLE,
ON BEHALF OF CANTWELL-SACRED
HEART OF MARY HIGH SCHOOL (“Lessor”)
By:______________________________
Sr. Mary Anncarla Costello SND
Its:___________________
Date:_____________________________
CITY OF MONTEBELLO , a municipal
corporation (“Lessee”)
By:_______________________________
René Bobadilla, City Manager
Date:_____________________________
ATTEST:
By:______________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
By:______________________________
Arnold M. Alvarez-Glasman
City Attorney
EXHIBITS:
A-1
A-2
Exhibit “A-1”
Exhibit “A-2”
ITEM # 17
CITY OF MONTEBELLO
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Michael Solorza, Director of Finance
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2452 UPDATING MONTEBELLO MUNICIPAL CODE CHAPTER 2.16 –
DIRECTOR OF FINANCE
DATE: September 14, 2022
RECOMMENDATION(S):
RECOMMENDATION: It is recommended that the City Council:
1) Waive Second Reading and adopt Ordinance No. 2452 Amending Montebello Municipal Code Chapter 2.16.020 – Director of Finance, Powers and Duties; and 2) Take such additional, related action(s) that may be desirable.
FISCAL IMPACT:
There is no fiscal impact to this action updating the City’s Municipal Code. The Department of Finance, through the City Manager provides regular budget, financial and treasury reports to the City Council and the public. The quantity and quality of these and other reports are sufficient to provide a clear and transparent picture of the City’s financial standing.
BACKGROUND:
N/A
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
ENVIRONMENTAL IMPACT:
N/A
ANALYSIS:
N/A
DISCUSSION:
The City’s Municipal Code contains a chapter which creates the office and describes the duties of the “Director of Finance.” As the head of the Finance Department, the Municipal Code (Chapter 2.16 et al) spells out various duties, responsibilities and reports which fall under the purview of the Director of Finance. (Chapter 2 of the Montebello Municipal Code , among other things, lays out the duties and responsibilities of the City Manager, City Council, code enforcement and various departments).
Recently, there have been changes and improvements to the language used to describe the duties of the Director of Finance, as evidenced by other municipalities’ similar code sections. Staff conducted research of more than a dozen other cities’ Director of Finance code sections. Large and small cities’ municipal codes were studied (e.g., Alhambra, Newport Beach, Irvine, Paramount, La Palma, etc.) to determine how this position was described and what specific tasks, duties and reports were assigned to it for each city.
Currently, Montebello’s Chapter 2.16 includes only a brief description of the types of reports to be prepared and submitted for City Manager and City Council review (Chapter
2.16.020(E)):
Submit to the city council through the city manager a monthly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the city; and, as of the end of each fiscal year, submit a complete financial statement and report;
The proposed ordinance amendment updates the types and scope of reports to better represent the actual reports currently being prepared for management and City Council review. Specifically, Chapter 2.16.020(E) would require monthly disbursement and payment reports (i.e., warrant register), monthly treasury reports, quarterly budget projections/reports, an annual financial statement (i.e., ACFR) that shows the exact financial condition at the close of the fiscal year, and other reports as requested by the City Manager (Attachment A).
Currently, the City Council receives a warrant register at each regular meeting (twice per month) which details disbursements/payments, and monthly and quarterly treasury reports as required by Government Code. In addition, quarterly budget reports are produced and presented at regular City Council meetings. Most importantly, the Finance Department produces an Annual Comprehensive Financial Report (ACFR) that fairly and accurately presents the City’s exact financial condition as of year-end (i.e., June 30). It
CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF SEPTEMBER 14, 2022
should be noted that – due to the nature of municipal finances – the exact financial condition of a public agency can only be determined at the close of the fiscal year, when the financial statements are audited and an ACFR is produced within six months of fiscal year end.
This Municipal Code Amendment will help clarify the types of reports produced by the Director of Finance to better reflect current practice – both locally in Montebello and reflecting what other cities in Los Angeles and Orange County prepare and produce. This item was continued from the August 24, 2022 City Council meeting.
SUMMARY:
That the City Council adopt an Ordinance amending Municipal Code Chapter 2.16 – Director of Finance to update the duties, responsibilities and reports produced to reflect current practice and best practice as determined by research into other cities’ municipal codes.
ATTACHMENT(S):
1. Attachment A - Ordinance No. 2452
NEXT STEPS:
N/A
ATTACHMENT A
ORDINANCE NO. 2452
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MONTEBELLO, CALIFORNIA, AMENDING SECTION
2.16.020 OF CHAPTER 2.16 TO TITLE 2 OF THE
MONTEBELLO MUNICIPAL CODE UPDATING THE DUTY
OF DIRECTOR OF FINANCE TO PREPARE CERTAIN
FINANCIAL REPORTS
RECITALS
WHEREAS, the City of Montebello is a general law city under California Government Code Section 34102; and
WHEREAS, Article XI, Section 7 of the California Constitution provides that the City of Montebello (“City”) may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, the Finance Department is responsible for a broad range of activities, including management of revenue operations of the City, as well as accounting for the City’s major revenue streams, such as sales tax and property tax; and WHEREAS, the Finance Department is responsible for the overall administration of the City’s Accounts Payable, Payroll, Accounts Receivable, Information Technology and Purchasing Divisions; and
WHEREAS, the duties of the Director of Finance include, but are not limited to, compiling the budget expense and income estimates for the City Manager, maintaining a general accounting system for the City government and each of its officers, departments and agencies, supervise the keeping of current inventories of all City property and to supervise and be responsible for the disbursement of all moneys and audit of all expenditures; and
WHEREAS, the Director of Finance also has a duty to prepare and present to the City Council through the City Manager certain financial reports; and WHEREAS, the City Council desires to amend the Montebello Municipal Code to establish a general schedule for, and to specify the types of, financial reports to be prepared by the Director of Finance and presented to the City Council through the City Manager.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council for the City of Montebello finds and declares the foregoing are true and correct, and incorporates said recitals fully into this Ordinance as substantive findings.
ORDINANCE NO. 2452
SECTION 2. Section 2.16.020 “Powers and Duties” of Chapter 2.16 “Director of Finance” is hereby amended to read as follows (deletions in strikethrough and additions in double underline)::
Chapter 2.16 – DIRECTOR OF FINANCE
2.16.010 Office Established
2.16.020 Powers and Duties
2.16.010 Office Established
There is created and established the office of director of finance, sometimes referred to in this code as "finance officer." The office of director of finance may be combined with any other office or position not inconsistent therewith.
2.16.020 Powers and Duties
The director of finance shall be the head of the finance department of the city, and shall have the power and shall be required to:
A. Have charge of the administration of the financial affairs of the city under the direction of the city manager;
B. Compile the budget expense and income estimates for the city manager; C. Maintain a general accounting system for the city government and each of its officers, departments and agencies;
D. Supervise and be responsible for the disbursement of all moneys and audit of all expenditures to insure that budget appropriations are not exceeded; audit all purchase orders before issuance; to insure that sufficient funds are appropriated and available; audit and approve before payment all bills, invoices, payrolls, demands or charges against the city government and with the advice of the city attorney, when necessary determine the regularity, legality and correctness of such claims, demands or charges; prepare and submit to the city council periodically a register of audited demands with his/her affidavit attached thereto as provided in Section 37202 of the Government Code; E. Submit to the city council through the city manager the following reports: a monthly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the city; and, as of the end of each fiscal year, submit a complete financial statement and report;
i. Monthly reports of disbursements and payments (i.e., warrant register) and required Treasury reports of the city; and ii. Quarterly budget projections; and
iii. One annual comprehensive financial statement and report of the exact financial condition of the city at the close of the fiscal year; and
ORDINANCE NO. 2452
iv. Such other financial reports as may be requested by the city manager or required by law.
F. Supervise the keeping of current inventories of all property of the city by all city departments, offices and agencies;
G. Perform all the financial and accounting duties heretofore imposed upon the city clerk, and the city clerk shall be relieved of such duties including all such duties imposed upon the city clerk by Section 40802 through 40805 of the Government Code of the state.
H. Perform such other duties as may be imposed upon him/her by law or by this code.
SECTION 4. If any part of this Ordinance, or its application to any individual, entity, or circumstance, is held to be invalid, the remainder of the Ordinance, including the application of provisions to other persons or circumstances, shall not be affected and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable.
SECTION 5. This Ordinance shall become effective thirty (30) days after adoption.
SECTION 6. The City Clerk shall certify to the adoption of this Ordinance causing it to be posted as required by law.
APPROVED AND ADOPTED 14th day of September 2022.
_______________________________
Kimberly A. Cobos-Cawthorne, Mayor
ATTEST:
________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
__________________________
Arnold M. Alvarez-Glasman, City Attorney
ORDINANCE NO. 2452
I HEREBY CERTIFY that the foregoing Ordinance was introduced at the regular meeting of the City Council on the 24th day of August 2022, and was adopted by the City Council of the City of Montebello at its meeting held on the 14 th day of September 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________
Christopher Jimenez, City Clerk
RESOLUTION NO. 22-75
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO
APPROVING AND ALLOWING CERTAIN CLAIMS AND DEMANDS
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:
SECTION 1. That the reference is hereby made to that certain Register of Audited Demand No.1537, consisting of 9 pages, and including:
Warrant No.
General: Checks No.597323 through; 597469
ACH No. 2660 through; 2761
On file in the office of the City Clerk, the same having been audited and approved by the Assistant Director of Finance as required by law.
SECTION 2. That the said City Council having examined each such demand does hereby approve and direct the payment of same, as set forth in said Register, except the following Warrant No.
______________________________
______________________________
______________________________
SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and that the same shall be in full force and effect.
APPROVED AND ADOPTED this 14th day of September 2022.
_______________________________
Kimberly A. Cobos-Cawthorne, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney
ITEM # 18
RESOLUTION NO. 22-75
Exhibit A – Warrant Register
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that th e foregoing Resolution No.22 -75 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meet ing of said Council held on the 14th day of September 2022 and that said Resolution was adopted by the following vote, to-wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
DATE: __
Christopher Jimenez, City Clerk
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME 4331 - General Account
2660 08/18/2022 $5,236.07 CDBG-CV 3163 BANK OF AMERICA
2661 08/18/2022 $3,803.85 CDBG-CV 3163 BANK OF AMERICA
2662 08/18/2022 $1,127.50 VEHICLE MAINTENANCE/EXPENSES 3163 BANK OF AMERICA 2663 08/18/2022 $447.64 SUPPLIES 3163 BANK OF AMERICA
2664 08/18/2022 $124.00 CONTRACT SERVICES 3163 BANK OF AMERICA 2665 08/18/2022 $7,910.15 SUPPLIES 3163 BANK OF AMERICA 2666 08/18/2022 $9,997.57 TRAVEL & MEETINGS 3163 BANK OF AMERICA 2667 08/18/2022 $689.89 SUPPLIES 3163 BANK OF AMERICA
2668 08/18/2022 $11.85 MAIL/ POSTAL EXPENSE 3163 BANK OF AMERICA 2669 08/18/2022 $1,174.46 VEHICLE MAINTENANCE/EXPENSES 3163 BANK OF AMERICA 2670 08/18/2022 $198.93 SUPPLIES 3163 BANK OF AMERICA
2671 08/18/2022 $3,147.75 SUPPLIES 3163 BANK OF AMERICA 2672 08/18/2022 $3,489.68 TRAINING 3163 BANK OF AMERICA 2673 08/18/2022 $382.85 SUPPLIES 3163 BANK OF AMERICA
2674 08/18/2022 $1,966.20 TRAVEL & MEETINGS 3163 BANK OF AMERICA 2675 08/18/2022 $1,313.24 SUPPLIES 3163 BANK OF AMERICA 2676 08/18/2022 $1,493.30 VEHICLE MAINTENANCE/EXPENSES 3163 BANK OF AMERICA 2677 08/18/2022 $8,117.45 TRAINING 3163 BANK OF AMERICA 2678 08/18/2022 $4,490.85 CONTRACT SERVICES 40670 ALL CITY MANAGEMENT SERVICES 2679 08/18/2022 $7,265.48 UNIFORM EXPENSE 20350 ALLSTAR FIRE EQUIPMENT INC 2680 08/18/2022 $6,357.10 SUPPLIES 2586 AMAZON CAPITAL SERVICES INC 2681 08/18/2022 $2,505.44 SUPPLIES 62880 AMERICAN MARKER 2682 08/18/2022 $40.00 CARPOOL INCENTIVE 289 ANDREA ANDRADE 2683 08/18/2022 $40.00 CARPOOL INCENTIVE 61470 ERIKA L ANDRADE 2684 08/18/2022 $3,169.48 CONTRACT SERVICES 3588 ANTHONYS PORTABLE RESTROOMS INC 2685 08/18/2022 $1,476.48 CONTRACT SERVICES 1237 AZTECA LANDSCAPE 2686 08/18/2022 $950.00 CONTRACT SERVICES 2102 JOHN P BEROKOFF 2687 08/18/2022 $405.37 SUPPLIES 10000 CLEAN SWEEP SUPPLY CO INC City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
2688 08/18/2022 $369.00 CONTRACT SERVICES 2889 COMLOCK SECURITY GROUP INC 2689 08/18/2022 $5,136.72 SUPPLIES 2624 CRAFCO INC
2690 08/18/2022 $12,990.96 VEHICLE MAINTENANCE/EXPENSES 3645 DEROTIC LLC 2691 08/18/2022 $834.98 CONTRACT SERVICES 2057 EVERNORTH BEHAVIORAL HEALTH 2692 08/18/2022 $40.00 CARPOOL INCENTIVE 2572 MARLENE GIL 2693 08/18/2022 $40.00 CARPOOL INCENTIVE 3123 NEIRA YESSIE GRANADOS 2694 08/18/2022 $40.00 CARPOOL INCENTIVE 3196 MICAH HERD 2695 08/18/2022 $40.00 CARPOOL INCENTIVE 4280 NADINE HERNANDEZ 2696 08/18/2022 $80.00 CARPOOL INCENTIVE 3585 LUPITA IBARRA 2697 08/18/2022 $14,303.84 CONTRACT SERVICES 3490 INTER-CON SECUIRTY SYSTEMS INC 2698 08/18/2022 $7,282.43 CONTRACT SERVICES 1612 JCL TRAFFIC SERVICES 2699 08/18/2022 $10,566.93 CONTRACT SERVICES 2152 JOHNSON CONTROLS INC 2700 08/18/2022 $40.00 CARPOOL INCENTIVE 3707 KEVORK KALAYCI 2701 08/18/2022 $869.00 CONTRACT SERVICES 3276 MARK ROBERT LOPEZ 2702 08/18/2022 $63.00 CONTRACT SERVICES 3574 MARIA GORYAN MAGDESYAN 2703 08/18/2022 $300.00 TRAINING 35650 MARC MARTY
2704 08/18/2022 $8,913.27 CONTRACT SERVICES 26880 SEBASTIAN WATERWORKS INC 2705 08/18/2022 $1,297.09 VEHICLE MAINTENANCE/EXPENSES 1385 MUNCIE RECLAMATION AND SUPPLY COMPANY 2706 08/18/2022 $30.00 CARPOOL INCENTIVE 2203 SAMANTHA NEVAREZ 2707 08/18/2022 $1,136.00 CONTRACT SERVICES 3028 ONWARD ENGINEERING 2708 08/18/2022 $40.00 CARPOOL INCENTIVE 59960 JO ANN PANOSIAN 2709 08/18/2022 $40.00 CARPOOL INCENTIVE 3089 NATALIE RAMIREZ 2710 08/18/2022 $40.00 CARPOOL INCENTIVE 3712 MATTHEW ROBERT RAMOS 2711 08/18/2022 $40.00 CARPOOL INCENTIVE 69960 NICOLE I SAUCEDO 2712 08/18/2022 $11,557.58 FUEL 1059 AMBER RESOURCES LLC 2713 08/18/2022 $40.00 CARPOOL INCENTIVE 2985 KEVIN SAYCOCIE 2714 08/18/2022 $40.00 CARPOOL INCENTIVE 3432 JOSEPHINE SERRANO 2715 08/18/2022 $40.00 CARPOOL INCENTIVE 24280 MARTIN SOLANO 2716 08/18/2022 $40.00 CARPOOL INCENTIVE 3001 MICHAEL SOLORZA 2717 08/18/2022 $179.05 SUPPLIES 31270 STARBOARD TACK SUPPLY INC
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
2718 08/18/2022 $40.00 CARPOOL INCENTIVE 3053 MICHAEL TELLES 2719 08/18/2022 $40.00 CARPOOL INCENTIVE 1091 JANELLE TORRES 2720 08/18/2022 $461.52 CONTRACT SERVICES 57140 UNDERGROUND SERVICE ALERT OF SOUTHERN CA 2721 08/18/2022 $4,988.11 SUPPLIES 3088 WAXIES ENTERPRISES LLC 2722 08/18/2022 $424.00 CONTRACT SERVICES 183 WECK LABORATORIES ENVIRONMENTAL SERVICES INC 2723 08/18/2022 $1,372.00 SUPPLIES 3163 BANK OF AMERICA 2724 08/18/2022 $3,501.40 SUPPLIES 3163 BANK OF AMERICA 2725 08/18/2022 $2,402.60 SUPPLIES 3163 BANK OF AMERICA 2726 08/18/2022 $1,822.82 SUPPLIES 3163 BANK OF AMERICA 2727 08/18/2022 $29.60 MAIL/ POSTAL EXPENSE 3163 BANK OF AMERICA 2728 08/18/2022 $4,787.91 SUPPLIES 3163 BANK OF AMERICA 2729 08/18/2022 $188.64 SUPPLIES 3163 BANK OF AMERICA
2730 08/18/2022 $1,906.20 TRAINING 3163 BANK OF AMERICA 2731 08/18/2022 $180.50 SUPPLIES 3163 BANK OF AMERICA
2732 08/18/2022 $576.00 MACHINERY & EQUIPMENTS 3163 BANK OF AMERICA 2733 08/18/2022 $972.34 TRAINING 3163 BANK OF AMERICA
2734 08/18/2022 $3,843.85 SUPPLIES 3163 BANK OF AMERICA 2735 08/18/2022 $1,191.79 TRAINING 3163 BANK OF AMERICA 2736 08/24/2022 $442,471.50 PERS GROUP INSURANCE PAYABLE 17 CAL PERS 2737 08/24/2022 $305,788.34 PENSION/RETIREMENT PAYABLE 17 CAL PERS 2738 08/24/2022 $97,019.00 RETIREMENT 17 CAL PERS
2739 08/25/2022 $4,252.62 ADVERTISING/PRINTING SERVICES 2689 ACRO PRINTING INC 2740 08/25/2022 $19,033.86 CONTRACT SERVICES 37720 ADVANCED APPLIED ENGINEERING INC 2741 08/25/2022 $2,962.50 CONTRACT SERVICES 38010 ADVANCED AVANT-GARDE CORPORATION 2742 08/25/2022 $28,568.86 IMPROVEMENTS OTHER THAN BUILDING 3411 AIM CONSULTING SERVICES 2743 08/25/2022 $571.10 UNIFORM EXPENSE 20350 ALLSTAR FIRE EQUIPMENT INC 2744 08/25/2022 $76,882.86 CONTRACT SERVICES 16120 ALVAREZ-GLASMAN & COLVIN 2745 08/25/2022 $1,703.39 SUPPLIES 2586 AMAZON CAPITAL SERVICES INC 2746 08/25/2022 $246.96 SUPPLIES 62880 AMERICAN MARKER
2747 08/25/2022 $20,496.11 CONTRACT SERVICES 3016 ANTARES GOLF LLC
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
2748 08/25/2022 $29,000.00 CONTRACT SERVICES 2102 JOHN P BEROKOFF 2749 08/25/2022 $428.65 SUPPLIES 10000 CLEAN SWEEP SUPPLY CO INC 2750 08/25/2022 $28,916.01 CONTRACT SERVICES 75950 FIESTA TAXI COOPERATIVE INC 2751 08/25/2022 $2,200.00 CONTRACT SERVICES 71920 TOYETTA L BEUKES 2752 08/25/2022 $151,265.63 CONTRACT SERVICES 1175 GRAPHIC ELECTRIC INC 2753 08/25/2022 $3,400.00 CONTRACT SERVICES 1612 JCL TRAFFIC SERVICES 2754 08/25/2022 $4,737.00 CONTRACT SERVICES 2892 KTU & A 2755 08/25/2022 $169.71 SUPPLIES 116 ADAM MITCHELL
2756 08/25/2022 $401.35 SUPPLIES 1120 BLUETRITON BRANDS INC 2757 08/25/2022 $20,000.00 CONTRACT SERVICES 61050 REDFLEX TRAFFIC SYSTEMS 2758 08/25/2022 $2,095.79 SUPPLIES 2594 THE SAUCE CREATIVE SERVICES CORP 2759 08/25/2022 $38,535.51 FUEL INVENTORY 1059 AMBER RESOURCES LLC 2760 08/25/2022 $3,245.00 CONTRACT SERVICES 217 TRACKIT LLC 2761 08/25/2022 $9,150.00 IMPROVEMENTS OTHER THAN BUILDING 3021 WEST & ASSOCIATES ENGINEERING INC ACH TOTAL $1,476,033.46
597323 08/17/2022 $283.00 TRAINING 3448 SAVAGE TRAINING GROUP LLC 597324 08/18/2022 $1,556.38 VEHICLE MAINTENANCE/EXPENSES 28020 ADVANCE ELECTRIC MOTORS CORP 597325 08/18/2022 $264.00 CONTRACT SERVICES 1287 ALTA LANGUAGE SERVICES INC 597326 08/18/2022 $310.42 UTILITY SERVICES 39550 AT&T
597327 08/18/2022 $4,041.43 UTILITY SERVICES 39550 AT&T 597328 08/18/2022 $303.95 CONTRACT SERVICES 27170 BEVERLY HOSPITAL 597329 08/18/2022 $400.00 DUES & SUBSCRIPTIONS 3309 CALIFORNIA CITY MANAGEMENT FOUNDATION 597330 08/18/2022 $5,800.00 ADVERTISING/PRINTING SERVICES 55 CALIFORNIA CONTRACT CITIES ASSOC 597331 08/18/2022 $98.29 UTILITY SERVICES 47580 CALIFORNIA WATER SERVICE COMPANY 597332 08/18/2022 $736.25 CONTRACT SERVICES 40850 MARIA E CASAS 597333 08/18/2022 $5,464.51 UTILITY SERVICES 55830 CHARTER COMMUNICATIONS 597334 08/18/2022 $703.30 CONTRACT SERVICES 36870 CINTAS CORPORATION NO 3 597335 08/18/2022 $1,555.90 SUPPLIES 2455 HASA, INC.
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
597336 08/18/2022 $250.00 GENERAL GOVERNMENT 3754 RAMIRO CORONA 597337 08/18/2022 $300.00 CONTRACT SERVICES 49400 US MOBILE WIRELESS 597338 08/18/2022 $71.77 SUPPLIES 3759 STEPHANIE DE LEON 597339 08/18/2022 $118.40 VEHICLE MAINTENANCE/EXPENSES 29160 FORD OF MONTEBELLO 597340 08/18/2022 $80.00 PARKS AND RECREATION 3757 MELISSA FRAUSTO 597341 08/18/2022 $305.35 SUPPLIES 3753 JOHN S FRIEDMAN 597342 08/18/2022 $1,863.22 MACHINERY & EQUIPMENTS 3350 GARVEY EQUIPMENT COMPANY 597343 08/18/2022 $70.00 POLICE RELATED FEES 3752 GILBERT GOMEZ 597344 08/18/2022 $130.00 CONTRACT SERVICES 3763 OSCAR GUTIERREZ 597345 08/18/2022 $250.00 GENERAL GOVERNMENT 3758 JOE D HERNANDEZ 597346 08/18/2022 $26.80 CONTRACT SERVICES 3386 JOHNATHAN HERNANDEZ 597347 08/18/2022 $10,000.00 ACCOUNTS RECEIVABLE 1340 HILLTOP SECURITIES INC 597348 08/18/2022 $4,724.54 CONTRACT SERVICES 48120 HINDERLITER DE LLAMAS & ASSOCIATES 597349 08/18/2022 $539.78 CONTRACT SERVICES 2012 ICE MACHINE SALES & SERVICE CO 597350 08/18/2022 $15,820.00 CONTRACT SERVICES 3235 ION SECURITY SYSTEMS 597351 08/18/2022 $30,800.00 CONTRACT SERVICES 3673 J LEE ENGINEERING INC 597352 08/18/2022 $70.00 PARKS AND RECREATION 3755 ROBERT LOPEZ 597353 08/18/2022 $1,144.19 CONTRACT SERVICES 37280 LOS ANGELES COUNTY SHERIFF'S DEPARTMENT 597354 08/18/2022 $9,572.50 DUE TO LA COUNTY 692 LOS ANGELES COUNTY SUPERIOR COURT 597355 08/18/2022 $250.00 GENERAL GOVERNMENT 3760 JOSE G MACIAS 597356 08/18/2022 $3,647.17 ACCOUNTS RECEIVABLE 13340 JULIO MARTINEZ 597357 08/18/2022 $70.00 PARKS AND RECREATION 3756 SANDY MEDRANO 597358 08/18/2022 $8,979.35 VEHICLE MAINTENANCE/EXPENSES 54300 SHAK ENTERPRISES INC 597359 08/18/2022 $192.51 SUPPLIES 1474 NATIONAL TRENCH SAFETY 597360 08/18/2022 $70.00 POLICE RELATED FEES 3761 SALOMON NAVARRO 597361 08/18/2022 $1,295.80 CONTRACT SERVICES 41180 MANUEL NUNEZ 597362 08/18/2022 $483.79 SUPPLIES 15620 OFFICE DEPOT INC 597363 08/18/2022 $20.77 UTILITY SERVICES 36610 CITY OF PICO RIVERA 597364 08/18/2022 $578.76 SUPPLIES 56260 PRUDENTIAL OVERALL SUPPLY 597365 08/18/2022 $4,992.90 CONTRACT SERVICES 18730 QUETEL AN OMNIGO COMPANY
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
597366 08/18/2022 $17,578.00 CONTRACT SERVICES 32210 SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS 597367 08/18/2022 $1,885.98 UTILITY SERVICES 14730 SAN GABRIEL VALLEY WATER CO 597368 08/18/2022 $400.00 CONTRACT SERVICES 61140 MICHAEL SAVEDRA 597369 08/18/2022 $5,710.46 PERMITS AND FEES 28240 SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 597370 08/18/2022 $10,441.54 UTILITY SERVICES 51430 SOUTH MONTEBELLO IRRIGATION DISTRICT 597371 08/18/2022 $86,005.80 UTILITY SERVICES 45630 SOUTHERN CALIFORNIA EDISON 597372 08/18/2022 $2,400.00 CONTRACT SERVICES 65 SPECIAL SERVICES GROUP LLC 597373 08/18/2022 $984.52 CONTRACT SERVICES 3397 STERICYCLE INC 597374 08/18/2022 $1,044.67 CONTRACT SERVICES 1963 SUEZ WTS SERVICES USA INC 597375 08/18/2022 $6,274.92 UTILITY SERVICES 72570 US TELEPACIFIC CORP 597376 08/18/2022 $1,500.00 DUES & SUBSCRIPTIONS 3212 UNITED PHOENIX FIREFIGHTERS ASSOCIATION FIRESTRONG 597377 08/18/2022 $47,115.36 CONTRACT SERVICES 3406 UNIVERSAL PROTECTION SERVICE LP 597378 08/18/2022 $7,217.44 COPIER REPAIR/SERVICES 2747 US BANK EQUIPMENT FINANCE 597379 08/18/2022 $1,960.00 CONTRACT SERVICES 2857 WOLVERINE FENCE COMPANY INC 597380 08/18/2022 $396.84 SUPPLIES 61850 X-IGENT PRINTING INC 597381 08/18/2022 $2,900.80 CONTRACT SERVICES 3662 YOUTH EVOLUTION ACTIVITIES 597382 08/18/2022 $47,014.80 CONTRACT SERVICES 3731 YUNEX, LLC 597383 08/18/2022 $106.60 UTILITY SERVICES 39550 AT&T
597384 08/18/2022 $203.82 UTILITY SERVICES 39550 AT&T
597385 08/25/2022 $16.54 SUPPLIES 3708 VERONICA LARA
597386 08/25/2022 $181.91 CONTRACT SERVICES 3533 AA TROPHY INC 597387 08/25/2022 $4,004.36 UTILITY SERVICES 1732 AT&T CORP 597388 08/25/2022 $7,902.80 AFLAC OTHER 55860 AFLAC
597389 08/25/2022 $7,902.80 AFLAC OTHER 55860 AFLAC
597390 08/25/2022 $7,902.80 AFLAC OTHER 55860 AFLAC
597391 08/25/2022 $200.00 TRAINING 3783 PAULINE AGUAYO
597392 08/25/2022 $150.00 FUEL 22520 HENRY AGUILAR JR
597393 08/25/2022 $55.00 GENERAL GOVERNMENT 3799 FRANCISCO ALVAREZ JR 597394 08/25/2022 $261.87 UTILITY SERVICES 39550 AT&T
597395 08/25/2022 $2,383.68 UTILITY SERVICES 38380 AT&T
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
597396 08/25/2022 $70.00 PARKS AND RECREATION 3793 PRISCILLA BOCANEGRA 597397 08/25/2022 $180.00 PARKS AND RECREATION 3794 ANTHONY CABRERA 597398 08/25/2022 $58.61 UTILITY SERVICES 47580 CALIFORNIA WATER SERVICE COMPANY 597399 08/25/2022 $3,975.51 VEHICLE MAINTENANCE/EXPENSES 45170 MONTEBELLO AUTO GROUP LLC 597400 08/25/2022 $1,842.09 SUPPLIES 2455 HASA, INC.
597401 08/25/2022 $80.00 PARKS AND RECREATION 3771 ANABEL CRUZ 597402 08/25/2022 $40.00 PARKS AND RECREATION 3777 TRINH DAO 597403 08/25/2022 $46,981.08 OTHER GROUP INSURANCE PAYABLE 4110 DELTA DENTAL OF CALIFORNIA 597404 08/25/2022 $56.00 PARKS AND RECREATION 3772 MILEN DER NIGOGHOSSIAN 597405 08/25/2022 $440.00 CONTRACT SERVICES 67140 DONNOE & ASSOCIATES INC 597406 08/25/2022 $3,969.00 CONTRACT SERVICES 3405 ELECTRIC CAR SALES AND SERVICES INC 597407 08/25/2022 $14,900.00 CONTRACT SERVICES 3403 ENGINEERED INSTALLATION SOLUTIONS LLC 597408 08/25/2022 $210.43 MAIL/ POSTAL EXPENSE 22400 FEDERAL EXPRESS CORPORATION 597409 08/25/2022 $3,435.45 VEHICLE MAINTENANCE/EXPENSES 29160 FORD OF MONTEBELLO 597410 08/25/2022 $4,261.78 UNIFORM EXPENSE 55650 GALLS LLC 597411 08/25/2022 $40.00 PARKS AND RECREATION 3800 LUPE GARNICA 597412 08/25/2022 $127.31 CONTRACT SERVICES 1650 GOLDEN STATE ELEVATOR SERVICE INC 597413 08/25/2022 $225.00 GENERAL GOVERNMENT 3768 EFRAIN GONZALEZ 597414 08/25/2022 $40.00 PARKS AND RECREATION 3798 GRACE GORLICK 597415 08/25/2022 $314.05 VEHICLE MAINTENANCE/EXPENSES 30190 IB AUTO PARTS INC 597416 08/25/2022 $250.00 GENERAL GOVERNMENT 3508 DAYANA ILLESCAS 597417 08/25/2022 $6,096.87 CONTRACT SERVICES 2539 JL GROUP LLC 597418 08/25/2022 $39,167.00 CONTRACT SERVICES 3044 KAIZER RANGWALA 597419 08/25/2022 $7,256.40 PERMITS AND FEES 40400 COPLOGIC INC 597420 08/25/2022 $70.00 PARKS AND RECREATION 3770 JUSTINE LOPEZ 597421 08/25/2022 $80.00 GENERAL GOVERNMENT 3792 MARIA LOPEZ 597422 08/25/2022 $320.00 PARKS AND RECREATION 2850 JOHN M MARTINEZ 597423 08/25/2022 $80.00 PARKS AND RECREATION 3796 ANGEL MENDOZA 597424 08/25/2022 $70.00 PARKS AND RECREATION 3795 ADRAN MILLAN 597425 08/25/2022 $2,431.96 VEHICLE MAINTENANCE/EXPENSES 54300 SHAK ENTERPRISES INC
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
597426 08/25/2022 $175.00 TRAINING 3778 LAWRENCE MOON
597427 08/25/2022 $60.00 PARKS AND RECREATION 3767 JORGE MORALES 597428 08/25/2022 $70.00 PARKS AND RECREATION 3775 ALEXANDRA MORENO 597429 08/25/2022 $41.88 CONTRACT SERVICES 2958 RACHEL YVONNE HOSKINS 597430 08/25/2022 $1,970.49 MACHINERY & EQUIPMENTS 450 MUNICIPAL EMERGENCY SERVICES INC 597431 08/25/2022 $40.00 PARKS AND RECREATION 3773 DIANA OBANDO 597432 08/25/2022 $40.00 PARKS AND RECREATION 3774 JENNIFER OLVERA 597433 08/25/2022 $250.00 GENERAL GOVERNMENT 3797 BRIANNA ORDAZ 597434 08/25/2022 $40.00 PARKS AND RECREATION 3776 ALMA PACHECO 597435 08/25/2022 $10,363.94 CDBG-CV 3526 PATH
597436 08/25/2022 $80.00 PARKS AND RECREATION 3766 RICHARD PEREZ 597437 08/25/2022 $250.00 GENERAL GOVERNMENT 3786 EDWARD PINUELAS 597438 08/25/2022 $177.69 CONTRACT SERVICES 51 PODS ENTERPRISES LLC 597439 08/25/2022 $80.00 PARKS AND RECREATION 3769 MARIELA PORON 597440 08/25/2022 $120.71 SUPPLIES 56260 PRUDENTIAL OVERALL SUPPLY 597441 08/25/2022 $2,337.49 SUPPLIES 503 QUADIENT INC
597442 08/25/2022 $1,029.00 CONTRACT SERVICES 3208 SANTA MONICA-UCLA MEDICAL CENTER 597443 08/25/2022 $200.00 TRAINING 51460 RIO HONDO COMMUNITY COLLEGE 597444 08/25/2022 $1,388.00 TRAINING 47640 RIVERSIDE COUNTY SHERIFFS DEPARTMENT 597445 08/25/2022 $70.00 PARKS AND RECREATION 3765 JACQUELINE ROCKWELL 597446 08/25/2022 $60.00 PARKS AND RECREATION 3789 HEIDI RODRIGUEZ 597447 08/25/2022 $8,705.00 CONTRACT SERVICES 3234 SCHOOL NUTRITION PLUS 597448 08/25/2022 $10.00 PARKS AND RECREATION 3791 HALEH SHIRVANIAN 597449 08/25/2022 $47,059.86 UTILITY SERVICES 45630 SOUTHERN CALIFORNIA EDISON 597450 08/25/2022 $6,375.90 UTILITY SERVICES 40520 SOUTHERN CALIFORNIA GAS CO 597451 08/25/2022 $1,492.50 PERMITS AND FEES 4160 SOUTHERN CALIFORNIA MUNICIPAL ATHLETIC FED 597452 08/25/2022 $957.51 CONTRACT SERVICES 1963 SUEZ WTS SERVICES USA INC 597453 08/25/2022 $465.00 CONTRACT SERVICES 1312 SWANK MOTION PICTURES INC 597454 08/25/2022 $20,000.00 CONTRACT SERVICES 3602 THE PUN GROUP LLP 597455 08/25/2022 $192.61 DUES & SUBSCRIPTIONS 41430 THOMSON REUTERS - WEST
EXHIBIT A
WARRANT DATE AMOUNT ACCOUNT DESCRIPTION VENDOR # VENDOR NAME City of Montebello
Register of Demands No. 1537
From Payment Date 08/12/22 - To Payment Date 08/29/22
597456 08/25/2022 $1,500.00 CONTRACT SERVICES 3522 ROSANNA TOS 597457 08/25/2022 $2,285.31 MACHINERY & EQUIPMENTS 3615 TRANSPORTATION MANAGEMENT & DESIGN INC 597458 08/25/2022 $28,250.00 CONTRACT SERVICES 3648 TRUELINE CONSTRUCTION & SURFACING INC 597459 08/25/2022 $250.00 GENERAL GOVERNMENT 2054 ESTHER TRUJILLO 597460 08/25/2022 $1,450.11 CONTRACT SERVICES 1823 SERGIO A FLORES 597461 08/25/2022 $32.85 UNIFORM EXPENSE 64140 TURNOUT MAINTENANCE COMPANY LLC 597462 08/25/2022 $14,639.19 MACHINERY & EQUIPMENTS 1188 TYLER TECHNOLOGIES INC 597463 08/25/2022 $653.44 SUPPLIES 131 UNITED SITE SERVICES INC 597464 08/25/2022 $400.00 CONTRACT SERVICES 3573 JOHN M VALDIVIA 597465 08/25/2022 $112.00 PARKS AND RECREATION 3764 GUILLERMO VALENZUELA 597466 08/25/2022 $1,381.80 OTHER GROUP INSURANCE PAYABLE 58990 VISION SERVICE PLAN 597467 08/25/2022 $1,584.00 MACHINERY & EQUIPMENTS 2000 VITAL MEDICAL SERVICES LLC 597468 08/25/2022 $70.00 PARKS AND RECREATION 3787 JASON WATKINS 597469 08/29/2022 $580.71 TRAVEL & MEETINGS 2441 DAVID TORRES Total $684,698.87
GRAND TOTAL $2,160,732.33
CITY OF MONTEBELLO
SPECIAL CITY COUNCIL MEETING
M I N U T E S
TUESDAY, MAY 3, 2022 AT 6:30 P.M.
CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD
MONTEBELLO, CALIFORNIA 90640
CALL TO ORDER – Mayor Cobos-Cawthorne called the meeting to order at 6:35 p.m.
ROLL CALL – Members present were Mayor Cobos-Cawthorne, Mayor Pro Tem Jimenez , Councilmember Torres, Councilmember Melendez, and Councilmember Peralta. City Clerk Jimenez and Treasurer Gutierrez were also present.
STAFF PRESENT – City Attorney Arnold Alvarez-Glasman, City Manager René Bobadilla, Assistant City Manager Arlene Salazar, Deputy City Clerk Alicia Fernandez, Assistant to Deputy City Clerk Kimberly Guillen.
PUBLIC COMMENTS ON CLOSED SESSION ITEMS ONLY
The City Clerk’s Office ha d four (4) members of the public wishing to address the City Council.
Speakers were provided three minutes to address the City Council and said speaker cards are on file at the City Clerk’s office.
CLOSED SESSION – 6:30 P.M.
Mayor Cobos-Cawthorne recessed the meeting into Closed Session at 6:51 p.m. to consider the following closed session items:
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
One matter
Mayor Cobos-Cawthorne reconvened the meeting at 7:00 p.m. During Closed Session the City Council received a briefing on Item No. 1, no action taken; nothing to report.
REGULAR SESSION – IMMEDIATELY FOLLOWING CLOSED SESSION
CORRECTIONS TO THE AGENDA – CITY MANAGER
PUBLIC COMMENTS ON AGENDA ITEMS ONLY
ITEM # 19
May 3, 2022: Special City Council Meeting Minutes Page 2 of 3
The City Clerk’s Office had six (6) members of the public wishing to address the City Council.
Speakers were provided three minutes to address the City Council and said speaker cards are on file at the City Clerk’s office.
The City Clerk’s Office acknowledged one (1) written public comments submitted to the City’s public comment email address. Said comments are on file at the City Clerk’s office.
REGULAR BUSINESS
2. PRESENTATION BY OUTS IDE COUNSEL AND DISC USSION REGARDING THE RESULTS OF THIRD PARTY INVESTIGATOR’S FINDINGS ON COUNCILMEMBER TORRES’ CONDUCT
Presentation was given by, Nancy P. Doumanian, Esq. Nancy Law Group/Doumanian & Associates, into the administrative investigation for City of Montebello of Council Member David Torres regarding his conduct. The presentation included an overview on the following: City Council members as elected officials and their behavior expectations; the #MeToo movement and how it has changed the work environment ; workplace etiquette in today’s society; how other citie s have handled Council Members who engage in harassing, hostile and retaliatory conduct towards city employees; potential liability to the City of Montebello; employers obligations under the law on hostile work environment and workplace harassment ; and Co uncilmember Torres’ investigation findings.
Ms. Doumanian also presented the scope of the investigation, methodology, strategy, scope of the allegations, and assessing witness credibility. She then proceeded to present the findings of the 17 witnesses wh o came forward to testify to Councilmember Torres’ conduct and presented Councilmember Torres responses to the investigators.
Councilmember Melendez stated that today is not a discussion of Councilmember Torres’ character, but a plea from staff to stop this behavior. He also noted that he was disappointed in the lack of respect shown during this presentation and the mockery that was going on.
Councilmember Peralta expressed her disappointment by the presentation and spoke in favor of Councilmember Torres and commended his work as a Councilmember.
Mayor Pro Tem Jimenez expressed her concern for the 17 employees that came forward regarding allegations by Councilmember Torres and commended staff for coming forward. Furthermore, she noted that the miscommu nication has creat ed a toxic work environment at City Hall.
Councilmember Torres stat ed that he was not given a chance to present evidence during his investigation and encouraged City to release his emails and text messages with staff to the public becau se all communication was within his duties as Councilmember. He also noted that it was never his intent to cause any concern or harm and apologized for his behavior, but also acknowledged that everything he’s done has been in his scope as a Councilmember.
May 3, 2022: Special City Council Meeting Minutes Page 3 of 3
Mayor Cobos-Cawthorne also noted that the 17 witness allegations are unsettling and mentioned the possibility of a potential class action lawsuit. The Mayor apologized to the employees and proceeded to open it up for recommendations from Council.
Mayor Pro Tem Jimenez asked for a 5 minute recess to make the right decision. Council recessed and the Mayor reconvened the meeting at 9:08 p.m.
Councilmember Melendez addressed Councilmember Torres’ previous comments and commended him on his apology , stating t hat this is a step towards a healing process.
Councilmember asked City Manager and City Attorney to craft something and bring it back in a month to assure that Councilmember Torres will continue to have his first amendment rights as a Councilmember but als o that there are procedures in place to remedy this situation and assure that employees are safe. Councilmember Melendez made a motion to have this come back in a month and have a deeper discussion at that time.
Councilmember Peralta expressed her concerns on why there aren’t procedures put into place internally with our HR department to serve our employees out of respect and their protection. She also noted that she would like the Fire Chief’s harassment claim against the Mayor to be addressed prior to any action taken tonight.
Mayor Pro Tem Jimenez seconded the motion made by Councilmember Melendez, asking that the City Council direct the City Manager and City Attorney to craft something and bring it back in a month to assure that Torres continue to have his First Amendment rights as a Councilmember but also that there are procedures in place to remedy this situation and assure that employees are safe.
During the June 22, 2022 Council Meeting, Councilmember Torres requested to amend the May 3, 2022 meeti ng minutes to make reference to the Municipal Code 2.04.05 , Section E, that he cited.
MOVED: Melendez SECONDED: Jimenez APPROVED: 3-2-0-0
AYES: Melendez, Jimenez, Cobos-Cawthorne
NOES: Peralta, Torres
ABSTAIN: None
ABSENT: None
ADJOURNMENT
Mayor Pro Tem Jimenez motioned to adjourn the meeting, seconded by Mayor Cobos- Cawthorne. Motion carried unanimously and the meeting was adjourned at 9:13 p.m.
THE MINUTES OF MAY 3, 2022 ARE HEREBY APPROVED AND ADOPTED ON THIS 14TH DAY OF SEPTEMBER 2022.
_____________________________________________
Alicia Fernandez, Senior Deputy City Clerk
CLOSED SESSION
SPEAKER CARDS
AGENDA ITEM
SPEAKER CARDS
AGENDA
COMMENTS
CITY OF MONTEBELLO
ADJOURNED REGULAR CITY COUNCIL MEETING
M I N U T E S
WEDNESDAY, JUNE 1, 2022 AT 5:00 P.M.
CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD
MONTEBELLO, CALIFORNIA
OPENING CEREMONIES
CALL TO ORDER – Mayor Cobos-Cawthorne called the meeting to order at 5:09 p.m.
ROLL CAL L – Members present were Mayor Cobos -Cawthorne, Mayor Pro Tem Jimenez, and Councilmember Torres . City Clerk Jimenez and Treasurer Gutierrez were also present.
Councilmember Peralta and Councilmember Melendez were absent.
STAFF PRESENT – Deputy City Attorney Christopher Cardinale , Director of Public Works James Enriquez, Deputy City Clerk Alicia Fernandez, Assistant to Dep uty City Clerk Kimberly Guillen, and Records Coordinator Angelina Padilla. City Manager René Bobadilla, Assistant City Manager Arlene Salazar, and City Attorney Arnold Glasman were absent.
Deputy City Attorney Christopher Cardinale stated that Staff was requesting to move Closed Session Item Nos. 1, 2, 3 and Regular Session Item No. 8 to the June 8, 2022, Regular City Council Meeting.
Councilmember Torres motioned and seconded by Mayor Pro Tem Jimenez ; motion approved unanimously.
PUBLIC COMMENTS FOR CLOSED SESSION ITEMS
None.
CLOSED SESSION – 5:00 P.M.
The following closed session items were moved to the June 8, 2022, Regular City Council Meeting:
1. THREAT TO PUBLIC SERVICES OR FACILITIES
Government Code Section 54957
Consultation with City Manager, Police Chief, City Attorney and other related City officials.
June 1, 2022: Adjourned City Council Meeting Minutes Page 2 of 6
2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
One matter related to SB 1383 compliance
3. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Negotiators: René Bobadilla, Nicholas Razo
Employee Groups: SMART-TD
REGULAR SESSION – NO LATER THAN 6:00 P.M.
CLOSED SESSION REPORT
None.
INVOCATION – City Clerk Christopher Jimenez
PLEDGE OF ALLEGIANCE – Frank Jurado Sr., Citizen of the Month
CORRECTIONS TO THE AGENDA – CITY MANAGER – Director James Enriquez noted that Item No. 8 will be pulled until the next meeting.
CEREMONIAL/PRESENTATIONS
4. RECOGNITION OF CITIZEN OF THE MONTH – MANNY FRANCO – Presented by Mayor Cobos- Cawthorne
5. RECOGNITION OF AND ADMINISTRATION OF OATH OF OFFICE FOR EDDIE FRANCO, PLANNING COMMISSIONER – Presented by Mayor Cobos-Cawthorne
6. RECOGNITION OF AND ADMINISTRATION OF OATH OF OFFICE FOR FRANK JURADO SR., PARKS AND RECREATION COMMISSIONER – Presented by Mayor Cobos-Cawthorne
7. RECOGNITION OF MONTEBELLO UNITED METHODIST CHURCH (117 YEARS) – Presented by Mayor Cobos-Cawthorne
8. CODE ENFORCEMENT UPDATE – Presentation was postponed to June 8, 2022.
9. PRELIMINARY BUDGET FOR FISCAL YEAR 22/23 – Presented by Director of Finance Michael Solorza. Council asked clarifying questions.
PUBLIC COMMENTS ON NON-AGENDA AND AGENDA ITEMS (30 MINUTES) The City Clerk ’s Office called ten (10) members of the public wishing to address the City Council.
Speakers were provided three minutes to address the City Council and said speaker cards are on file at the City Clerk’s office.
June 1, 2022: Adjourned City Council Meeting Minutes Page 3 of 6
The City Clerk’s Office acknowledged four (4) written public comments submitted to the City’s public comment email address. Said comments are on file at the City Clerk’s office.
STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST
Director of Recreation & Community Services David Sosnowski informed the Council that the Farmer’s Market Series was coming to a conclusion and further stated that yard sales would be allowed within the City on June 3, 4, and 5.
REGULAR BUSINESS
10. ADOPT RESOLUTION NO’ S. 22 -38 AND 22 -37 ADOPTING MEMORAND A OF
UNDERSTANDING BETWEEN THE C ITY AND THE MONTEBEL LO POLICE MANAGEMENT
ASSOCIATION (MPMA) A ND THE CITY AND THE MONTEBELLO POLICE OF FICERS
ASSOCIATION (MPOA)
RECOMMENDATION: It is recommended that the City Council:
1) Adopt Resolution 22 -38 adopting a tentatively agreed upon Comprehensive Memorandum of Understanding (MOU) between the City and the Montebello Police Management Association (MPMA); and
2) Adopt Resolution No. 22 -37 adopting a tentatively agreed upon Comprehensive Memorandum of Understanding between the Ci ty and the Montebello Police Officers Association (MPOA).
CONSENT CALENDAR
Councilmember Torres and Mayor Cobos -Cawthorne pulled Item No. 13 . Councilmember Torres pulled Item N o. 16. Mayor Pro Tem Jimenez motioned, seconded by Councilmember Torres that Item No’s. 11, 12, 14, and 15 be approved; motion approved unanimously.
11. ADOPT RESOLUTION NO. 22-39 APPROVING THE ENG INEER’S REPORT FOR T HE FY 2022 - 2023 ANNUAL NATASHA LANE LANDSCAPE ASSES SMENT DISTRICT NO. 2 005-1 AND
SETTING A DATE FOR THE PUBLIC HEARING
RECOMMENDATION: It is recommended that the City Council:
1) Adopt Resolution No. 22-39 (Attachment A) approving the Fiscal Year 2022-23 Engineer’s Report (Attachment B) for the Annual Natasha Lane Landscape Assessment District No. 2005-1 setting a date for a Public Hearing for the regular meeting scheduled on June 22, 2022 at 6:00 p.m.; and
2) Take such additional, related, action that may be desirable.
12. ADOPT RESOLUTION NO. 22-40 APPROVING THE ENG INEER’S REPORT FOR T HE FISCAL YEAR 2022 -23 ANNUAL NATASHA LANE SEWER AND STORM WATE R PUMP STATION ASSESSMENT DISTRICT NO. 2005-2 AND SETTING A DATE FOR THE PUBLIC HEARING
RECOMMENDATION: It is recommended that the City Council:
June 1, 2022: Adjourned City Council Meeting Minutes Page 4 of 6
1) Adopt Resolution No. 22-40 (Attachment A) approving the Fiscal Year 2022-23 Engineer’s Report (Attachment B) for the Annual Natasha Lane Sewer and Storm Drain Pump Assessment District No. 2005 -2 and setting a date for a Public Hearing for the regular meeting scheduled on June 22, 2022 at 6:00 pm; and
2) Take such additional, related, action that may be desirable.
13. AUTHORIZE THE NOTICE INVITING BIDS FOR HYRAP STREETS FISCAL YEAR 2022-23 PROJECT (CP NO. 897)
RECOMMENDATION: It is recommended that the City Council:
1) Approve the Plans, Specifications, and Estimate (PS&E) for the HYRAP Streets Fiscal Year 2022-23 Project (CP No. 897); and
2) Authorize the City Clerk to publish the Notice Inviting Bids (Attachment A); and 3) Approve the Notice of Exemption (Attachment B) for the subject project and authorize the City Clerk to file the Notice of Exemption with Los Angeles Registrar-Recorder; and 4) Take such additional, related, action that may be desirable.
Councilmember Torres asked if there was a comprehensive list of pending street improvement or projects. He also inquired about how streets are selected for renovation.
Director Enriquez provided clarification of the process.
Mayor Cobos -Cawthorne motio ned, seconded by Mayor Pro Tem Jimenez; motion approved unanimously.
14. APPROVAL OF WATER RIGHTS LICE NSE AND AGREEMENT NO . 3986 WITH SAN GABR IEL
VALLEY WATER COMPANY
RECOMMENDATION: It is recommended that the City Council:
1) Approve a Water Rights License and Agreement No. 3986 with San Gabriel Valley Water Company (SGVWC) for the lease of 386.50 acre -feet of the City of Montebello’s Fiscal Year 2021 -22 Allowed Pumping Allocation at a rate of $120 per acre -foot and total payment of $46,380; and
2) Authorize the City Manager to execute the Agreement on behalf of the City; and 3) Take such additional, related, action that may be desirable.
15. ADOPT RESOLUTION NO. 22-36 FOR FISCAL YEAR 2 022-23 CONFIRMATION OF A NNUAL
TAX RATE FOR VOTER APPROVED INDEBTEDNESS
RECOMMENDATION: It is recommended that the City Council:
June 1, 2022: Adjourned City Council Meeting Minutes Page 5 of 6
1) Review and adopt the attached Resolution establishing property tax override rates on voter approved indebtedness for retirement expenditures for the Fiscal Year 2022 -23; and
2) Direct staff to forward the Resolution to the Los Angeles County Auditor Controller within the required time limit; and
3) Direct staff to take whatever additional actions necessary to ensure collection of the property tax override; and
4) Take such additional, related, action that may be desirable.
16. PAYMENT OF BILLS: R ESOLUTION NO. 22 -35 APPROVING THE CIT Y WARRANT REGISTER OF DEMANDS DATED MAY 25, 2022
RECOMMENDATION: Adopt Resolution No. 22 -35 approving the Warrant Register dated May 25, 2022.
Councilmember Torres asked for clarification on the Warrant Demands, clarification was provided.
Councilmember Torres motioned, seconded by Mayor Pro Tem Jimenez; motion approved unanimously.
AB 1234 TRAVEL REPORTS
Mayor Cobos -Cawthorne provided a report on the Innovating Commerce Serving Communities Conference in Las Vegas. Mayor Pro Tem Jimenez and City Treasurer provided their experience at the conference.
COUNCIL ORALS
Council member announcements; requests for future agenda items; conference/meetings reports.
1. Mayor Pro Tem Jimenez
a. 2nd Annual Stride for Pride 5K Run Montebello Run in partnership with the City of Montebello, Saturday, June 25th
b. East Side Pride Festival in Downtown Montebello, June 25th c. Council Consensus to direct staff to raise a Pride Flag throughout Pride Month, as requested in 2021
Mayor Pro Tem Jimenez announced the 2 nd Annual Stride for Pride 5k and the Pride Festival. She requested Council consensus to raise a Pride Flag. Director Sosnowski informed the Council that the flag was raised.
2. Councilmember Torres
3. Councilmember Melendez
a. De Paul Center/Mercy Housing community outreach concerns
4. Councilmember Peralta
a. Pride Month Recognition and community festivities
b. Request for Pride Flag to be displayed
c. Request Council consensus to have LGBTQ friendly artwork/poetry from the community displayed at City Hall
d. Appointment of Henry Fimbres to the Personnel Advisory Commission
June 1, 2022: Adjourned City Council Meeting Minutes Page 6 of 6
e. Thank you to the SGVCOG’s Capital Projects and Construction Committee Members for approving the construction, operation, and maintenance agreement with Union Pacific Railroad and the City of Montebello for the Montebello Boulevard Grade Separation Project
f. Recognition and Congratulations to Boulevard Market for being named Business of the Year for Supervisor District 1 by the Los Angeles County Business Federation
5. Mayor Cobos-Cawthorne
ADJOURNMENT
Mayor Cobos -Cawthorne adjourned in the memory of John Velasco and Gil Espinosa .
Councilmember Torres motioned, seconded by Mayor Pro Tem Jimenez to adjourn the meeting at 7:47 p.m.
THE MINUTES OF JUNE 1, 2022 ARE HEREBY APPROVED AND ADOPTED ON THIS 14TH DAY OF SEPTEMBER 2022.
____________________________________________
Alicia Fernandez, Sr. Deputy City Clerk
SPEAKER CARDS
AGENDA & NON-AGENDA
COMMENTS
1 Angelina Padilla
From: Sean Valadez <[email protected]>
Sent: Monday, May 23, 2022 3:26 PM
To: comment, ccpublic
Subject: City of Montebello investments and development council meeting Follow Up Flag: Follow up
Flag Status: Flagged
Hello
I would like to ask during this public council meeting if the city would allow the edification of one or two digital billboard advertisements monuments next to the 5 freeway with one being inside the Rosewood park school lawn area at the very furthest corner.
We would like the revenue generated from this signage to benefit the Montebello school district.
We are a company seeking to start new development like this in the city.
Thank you
Sean Valadez
+13239972610
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1 Angelina Padilla
From: Jorge Martinez <[email protected]>
Sent: Monday, May 23, 2022 11:25 PM
To: comment, ccpublic
Subject: DePaul Center
Follow Up Flag: Follow up
Flag Status: Flagged
To the Montebello Planning Commission, and the Montebello City Council, and all other concerned parties.
I Jorge Martinez, declare that I am a resident of Montebello, and that I am concerned for the future of the DePaul Evangelization Center, located at 1105 Bluff Road in Montebello. The property is bordered on the east by Bluff Road, on the north by Frankel Avenue, on the west by Carob Way, and on the south by Date Street.
1. I believe the DePaul Evangelization Center should be ma intained, and preserved as is, with little or no changes.
2. I am firmly against the DePaul Evangelization Center bei ng re-zoned for high-density housing, or any housing. I am against any apartments, condominiums, duplexes or other multi-unit complexes, or single family homes being constructed on the site. Such projects will result in much more traffic in the area. Parking in the surrounding area is already completely congested. If any new housing is constructed on the site, traffic will be much more congested, parking will be impossible, and thus, there will be more unforseen issues in our already compacted neighborhoods.
3. The site of the DePaul Evangelization Center is a very rare, and welcomed open space in our neighborhood, or in any neighborhood. Aside from being open space, it is a place of much-needed peace and quiet.
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1 Angelina Padilla
From: Vanessa <[email protected]>
Sent: Wednesday, May 25, 2022 8:30 AM
To: comment, ccpublic
Subject: Question
Good morning,
What are you doing to prevent tragedies like the Robb Elementary shooting from happening in our schools?
Please please consider supporting strict gun laws!
Please please push for easy access to mental health services!
As a new mom and a preschool teacher I beg you!! Please do not let us live in fear!
Sincerely,
Vanessa Winn
Sent from my iPhone
‐‐‐
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CITY OF MONTEBELLO
REGULAR CITY COUNCIL MEETING
M I N U T E S
WEDNESDAY, JUNE 8, 2022 AT 5:00 P.M.
CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD
MONTEBELLO, CALIFORNIA
OPENING CEREMONIES
CALL TO ORDER – Mayor Cobos-Cawthorne called the meeting to order at 5:06 p.m.
ROLL CAL L – Members present were Mayor Cobos -Cawthorne, Councilmember Peralta, Councilmember Melendez, and Councilmember Torres; Mayor Pro Tem Jimenez arrived at 5:12 p.m.
City Clerk Jimenez and Treasurer Gutierrez were also present; City Treasurer arrived at 5:50 p.m.
STAFF PRESENT – City Attorney Arnold Alvarez -Glasman, City Manager René Bobadilla, Assistant City Manager Arlene Salazar, Depu ty City Clerk Alicia Fernandez, Assistant to Dep uty City Clerk Kimberly Guillen, and Records Coordinator Angelina Padilla.
PUBLIC COMMENTS FOR CLOSED SESSION ITEMS – None.
CLOSED SESSION – 5:30 P.M.
Mayor Cobos -Cawthorne recessed the meeting into Closed Session at 5:07 p.m. to consider the following closed session items:
1. THREAT TO PUBLIC SERVICES OR FACILITIES
Government Code Section 54957
Consultation with City Manager, Police Chief, City Attorney and other related City officials.
2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
One matter related to SB 1383 compliance
One matter of threatened litigation related to an employee issue Threat of litigation – One matter related to the CVRA
June 8, 2022: City Council Meeting Minutes Page 2 of 7
3. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Negotiators: René Bobadilla, Nicholas Razo
Employee Groups: SMART-TD
4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Government Code Section 54957
Title: City Manager René Bobadilla
City Attorney Alvarez-Glasman requested to add an additional matter to the agenda, under Item No. 2 (2.b), as a subsequent need matter pursuant to Government Code Section 54954.2(b)(2).
2.b. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
Threat of litigation – One matter
It was motioned by Councilmember Melendez, seconded by Councilmember Peralta, that the item be added; motion did not receive a 4/5 vote and failed.
MOVED: Melendez SECONDED: Peralta FAILED: 3-1-1-0
AYES: Melendez, Peralta, Cobos-Cawthorne
NOES: Torres,
ABSTAIN: None
ABSENT: Jimenez
REGULAR SESSION – 6:00 P.M.
CLOSED SESSION REPORT
Mayor Cobos-Cawthorne reconvened the meeting at 6:12 p.m. City Attorney Alvarez-Glasman noted that Mayor Pro Tem Jimenez joined at 5:12 p.m. Furthermore, he noted that during Closed Session it was attempted to place an add on Closed Session of Anticipated Litigation item which was motioned by Councilmember Melend ez, seconded by Councilmember Peralta; motion did not receive a 4/5 vote and failed. Upon the arrival of Mayor Pro Tem Jimenez, this add on Closed Session item was subsequently addressed which was motioned by Councilmember Melendez, seconded by Councilmember Peralta; approved unanimously.
City Attorney Alvarez-Glasman stated that Mayor Cobos-Cawthorne made a request pursuant to the City of Montebello Muni cipal Code that the use of electronic devices be restricted from the dais.
Mayor Cobos-Cawthorne, Councilmember Melendez, and Mayor Pro Tem Jimenez placed their cell phones in the basket. Furthermore, it was r equested that Councilmember Torres place his in the basket as well or turn it into the Sergeant of Arms; Councilmember Torres stated that he would not.
The same request was made to Councilmember P eralta and she stated that she felt comfortable with it being in her bag.
June 8, 2022: City Council Meeting Minutes Page 3 of 7
During Closed Session the City Council received a briefing on Item No. 1 and direction was provided but no final action was taken. On Item No. 2, related to SB 1383 Compliance, a briefing was provided to the City Council and direction was provided to come back for Open Session consideration at the next meeting. On Item No. 2, related to threatened litigation matter, the item was discussed but no action was taken and it direction was provided to conduct a follow up on the matter. On Item No. 2, related to the anticipated litigation add on matter, the City Council received a briefing and direction was provided, but no final action was taken and there was nothing to report. On Item No. 3, a briefing was provided to the City Council, direction was provided to the Agency’s Negotiator’s, and no final action was taken. Item No. 4 was not discussed and held over to the next meeting.
INVOCATION – Pastor Sebastian Petz, Montebello Christian
PLEDGE OF ALLEGIANCE – Al Cota, American Legion Member
CORRECTIONS TO THE AGENDA – CITY MANAGER – No corrections
CEREMONIAL/PRESENTATIONS
5. RECOGNITION OF LGBTQ PRIDE MONTH – Presented by Mayor Cobos-Cawthorne
6. RECOGNITION OF JUNETEENTH – FREEDOM DAY – Presented by Mayor Cobos-Cawthorne
7. RECOGNITION OF PTSD AWARENESS MONTH – Presented by Mayor Cobos-Cawthorne
8. RECOGNITION OF NATIONAL SCLERODERMA AWARENESS MONTH – Presented by Mayor Cobos-Cawthorne
PUBLIC COMMENTS ON NON-AGENDA AND AGENDA ITEMS (30 MINUTES) The City Clerk’s Office acknowledged six (6 ) members of the public wishing to address the City Council. Speakers were provided three minutes to address the City Council and said speaker cards are on file at the City Clerk’s office.
The City Clerk’s Office acknowledged one (1) written public comment submitted to the City’s public comment email address. Said comment is on file at the City Clerk’s office.
STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST
City Manager Bobadilla invited Deputy Director Angelica Palmeros to provide a briefing to the City Council on the City of Montebello Operation Stay Safe program and was available to answer any questions.
REGULAR BUSINESS
9. ADOPT RESOLUTION NO’ S. 22 -38 AND 22 -37 ADOPTING MEMORAND A OF
UNDERSTANDING BETWEE N THE CITY AND THE M ONTEBELLO POLICE MANAGEMENT
ASSOCIATION (MPMA) A ND THE CITY AND THE MONTEBELLO POLICE OF FICERS
ASSOCIATION (MPOA)
June 8, 2022: City Council Meeting Minutes Page 4 of 7
Director Razo presented a PowerPoint presentation to the City Council related to the MPMA and MPOA associations and was available to answer any questions.
Councilmember Torres asked clarifying questions, which were addressed by Director Razo.
Councilmember Melendez, Councilmember Peralta, Mayor Pro Tem Torres, and Mayor Cobos-Cawthorne commended Staff and the bargaining groups.
It was motioned by Mayor Pro Tem Jimenez, seconded by Councilmember Melendez that the City Council:
1) Adopt Resolution 22 -38 adopting a tentatively agreed upon Comprehensive Memorandum of Understanding (MOU) between the City and the Montebello Police Management Association (MPMA); and
2) Adopt Resolution No. 22 -37 adopting a tentatively agreed upon Comprehensive Memorandum of Understanding between the City and the Montebello Police Officers Association (MPOA).
Motion was approved unanimously.
10. ADOPTION OF FISCAL YEAR 2022-23 OPERATING AND CAPITAL BUDGET Director Solorza presented a PowerPoint presentation to the City Council discussing the budget review process and provided them with an overview on the following: general fund budget; all funds; staffing; supplemental budget requests ; general fund revenue ; sales tax detail; general fund expenditures; and the FY 2022 -23 budget for Transit, IT, Capital Improvement Program, Hilton Garden Inn, and Home2Suites and was available to answer any questions.
Councilmember Torres, Melendez, and Per alta commended Director Solorza, and asked clarifying questions which were addressed by Director Solorza. Mayor Pro Tem Jimenez and Mayor Cobos -Cawthorne expressed their support for this item. Mayor Cobos -Cawthorne commended staff on their grant writing efforts.
Mayor Pro Tem Jimenez motioned, seconded by Councilmember Melendez; that the City Council:
1) Adopt Resolution No. 22 -43 adopting the Fiscal Year 2022 -23 operating and capital budgets for all funds; and
2) Adopt Resolution No. 22-44 adopting the compensation plan, table of organization and job classifications for Fiscal Year 2022-23; and
3) Adopt Resolution No. 22 -45 establishing a Fiscal Year 2022 -23 appropriations limit per Government Code Section 7190 (Gann Limit); and
4) Adopt Resolution No. 22-46 for paying and reporting the value of employer paid member contributions as required by a recent CalPERS audit.
The motion was approved by the following vote.
June 8, 2022: City Council Meeting Minutes Page 5 of 7
MOVED: Jimenez SECONDED: Melendez APPROVED: 3-2-0-0
AYES: Melendez, Jimenez, Cobos-Cawthorne
NOES: Torres, Peralta
ABSTAIN: None
ABSENT: None
CONSENT CALENDAR
No items were pulled by the City Council for discussion. Councilmember Peralta motioned, seconded by Councilmember Melendez, that Item No’s. 11-18 be approved; motion was approved unanimously.
11. AWARD OF CONSTRUCTION CONT RACT FOR CP. #891 – ANNUAL CONCRETE REPA IR PROGRAM FISCAL YEAR 2021-22
RECOMMENDATION: It is recommended that the City Council:
1) Award a construction contract for the Annual Concrete Repair Program Fiscal Year 2021- 22 (C.P. # 891) in the amount of $1,208,926 to CJ Concrete Construction, Inc.; and 2) Authorize the Director of Public Works to review and approve change orders within a 15% contingency of the contract amount; and
3) Authorize the City Manager to execute t he Contract Agreement, on behalf of the City; and
4) Take such additional, related, action that may be desirable.
12. APPROVAL OF AMENDMEN T NO. 1 TO AGREEMENT NO. 3890 FOR GOLF CO URSE
MANAGEMENT SERVICES
RECOMMENDATION: It is recommended that the City Council:
1) Approve Amendment No. 1 to Agreement No. 3890 for Golf Course management services at the Montebello Golf Course with S&S Labarge Golf, Inc.; and 2) Authorize the City Manager to execute the Amendment on behalf of the City; and 3) Take such additional, related, action that may be desirable.
13. APPROVAL OF AGREEMENT NO. 3985 WITH NEW FLYER OF AMERICA, INC., TO PURCHASE
SEVEN, FORTY-FOOT, COMPRESSED NATURAL GAS (CNG) TRANSIT BUSES
RECOMMENDATION: It is recommended that the City Council:
1) Approve Agreement No. 3985 with New Flyer of America, Inc. (“New Flyer”), to purchase seven (7), forty-foot (40’) Compressed Natural Gas (CNG) transit buses; and 2) Authorize the City Manager and/or their designee to approve change orders for up to two (2) percent of the total agreement amount; and
3) Take such additional, related action that may be desirable.
June 8, 2022: City Council Meeting Minutes Page 6 of 7
14. APPROVAL OF THREE (3 ) PROFESSIONAL SERVI CE AGREEMENTS, NO.’S 3988, 3989 AND 3990, TO (I) FORD OF MONTEBELLO, (II) CHE VROLET OF MONTEBELLO , AND (III)
MONTEBELLO TIRE PROS , TO ESTABLISH AN AS -NEEDED VENDOR BENCH FOR THE
CITYWIDE FLEET VEHICLE MAINTENANCE AND REPAIR SERVICES REQUEST FOR PROPOSAL, NO. 22-4
RECOMMENDATION: It is recommended that the City Council:
1) Award three (3) Professional Services Agreements, No.’s 3988, 3989, and 3990, to (i) Ford of Montebello, Inc. (dba Ford of Montebello), (ii) Mont ebello Auto Group, LLC (dba Chevrolet of Montebello), and (iii) SHAK Enterprises, Inc. (dba Montebello Tire Pros), for a three-year (3-year) term with the option for renewal of up to two (2) additional one - year (1-year) terms, for an annual total not -to-exceed amount of $100,000 with each vendor , with the City of Montebello (City) to establish an as -needed vendor bench for the Citywide Fleet Vehicle Maintenance and Repair Services Request for Proposal, No. 22-4 (RFP No. 22-4); and
2) Authorize the City Manager, and/or his designee, to take action necessary to execute and finalize each proposed agreement (No.’s 3988-3990) on behalf of the City; and 3) Take such additional or alternative action that may be desirable.
15. APPROVAL OF PROVIDIN G RECRUITMENT INCENT IVES FOR QUALIFIED POLICE OFFICERS
AND POLICE DISPATCHERS
RECOMMENDATION: It is recommended that the City Council:
1) Approve a program to provide recruitment incentives for qualified Police Officers and Police Dispatchers and referral bonuses to current employees; and 2) Take such additional, and related, action that may be desirable.
16. APPROVAL TO SUBMIT A PPLICATION FOR THE U .S. DEPARTMENT OF JU STICE, OFFICE OF COMMUNITY ORIENTED P OLICING SERVICES (CO PS), FISCAL YEAR 202 2 COPS HIRING
PROGRAM (CHP)
RECOMMENDATION: It is recommended that the City Council:
1) Approve the submission of the grant application for the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS), Fiscal Year 2022 COPS Hiring Program (CHP); and
2) Take such additional, related, action that may be desirable.
17. PAYMENT OF BILLS: A DOPT RESOLUTION NO. 22-41 APPROVING THE CIT Y WARRANT REGISTER OF DEMANDS DATED JUNE 8, 2022
RECOMMENDATION: Adopt Resolution No. 22 -41 approving the Warrant Register dated June 8, 2022.
June 8, 2022: City Council Meeting Minutes Page 7 of 7
18. APPROVAL OF CITY COU NCIL MINUTES – SPECIAL MEETING APRI L 8, 2022; SPECIAL MEETING APRIL 9, 2022; APRIL 13, 2022; SPECIAL MEETING APRIL 23, 2022; APRIL 27, 2022.
RECOMMENDATION: Approve said minutes as written.
AB 1234 TRAVEL REPORTS
Members of the City Council will provide a brief report on meetings attended at the expense of the local agency as required by Government Code Section 53232.3(d).
COUNCIL ORALS
Council member announcements; requests for future agenda items; conference/meetings reports.
1. Councilmember Peralta
a. Recognition of Schurr High School AVID 2022 Scholarship Recipients b. Request Council consensus to have LGBTQ friendly artwork/poetry from the community displayed at City Hall
c. Requesting action to adopt and recognize June 3rd as National Gun Violence Awareness Day
d. Appointment of Henry Fimbres to the Personnel Advisory Commission e. Recognition and Congratulations to BLVD MRKT for being named Business of the Year for Supervisor District 1 by the Los Angeles County Business Federation
Councilmember Peralta requested consensus on items 1.b. and 1.c. Consensus was received on both item 1.b. and 1.c.
2. Councilmember Melendez
3. Councilmember Torres
4. Mayor Pro Tem Jimenez – added an oral and reminded the public about an upcoming 5k run and Father’s Day Brunch.
5. Mayor Cobos-Cawthorne
Mayor Cobos-Cawthorne recessed the meeting to continue Closed Session and discuss Item No. 4.
Mayor Cobos -Cawthorne reconvened the meeting at 9:11 p.m. City Attorney Alvarez -Glasman provided a briefing on Item No. 4 and made a statement for the record that the City Manager excused himself from the conversation; there was no action taken and nothing to report.
ADJOURNMENT
Councilmember Melendez motioned to adjourn the meeting, seconded by Mayor Pro Tem Jimenez.
Mayor Cobos-Cawthorne adjourned the meeting at 9:17 p.m.
THE MINUTES OF JUNE 8, 2022 ARE HEREBY APPROVED AND ADOPTED ON THIS 14TH DAY OF SEPTEMBER 2022.
_____________________________________________
Alicia Fernandez, Senior Deputy City Clerk
SPEAKER CARDS
AGENDA & NON-AGENDA
COMMENTS
1 Angelina Padilla
From: fiveznuff 4u <[email protected]>
Sent: Wednesday, June 8, 2022 11:48 AM
To: comment, ccpublic
Subject: Re: speaker card
Hello my name is Brandon Takeyama, I’m a resident of Montebello. My question is why I have been ignored and pushed off since august 20,2020. This is in regards to several emails to Director Enriquez, Mayor Cobos, Sal Melendez & Rene Bobadilla for paving the streets of Vail st & Ferguson drive. Mr. Enriquez had stated in several emails that it would be included in Fiscal Year 2020/21 Capital Improvement Program budget. All 4 individuals have been numerously emailed regarding these streets. That is so wrong as an elected official and including a Mayor to disregard a resident. They need to be reminded that they work for the people.
They are Civil servants for the Community of Montebello. These streets have been neglected and are in need of paving. If it was included in the budget for 20/2021 what happened? Where did the money go for those improvements? A resident on Ferguson drive was added to the email and he was ignored as well from all 4 individuals. Why are these individuals ignoring the fact? Is it because it’s mid south Montebello and not North Montebello? Remember Montebello should be accounted as one whole city not segregated. I need answers and a timeline when these streets are going to be done.
Thank you
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