Agenda packet — Montebello City Council, April 22, 2026 (part 1 of 3)

CITY OF MONTEBELLO

CITY COUNCIL

REGULAR MEETING

WEDNESDAY, APRIL 22, 2026 AT 6:00 PM

CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD

MONTEBELLO, CALIFORNIA

CITY COUNCIL
Georgina Tamayo, Mayor
Danielle Romero, Mayor Pro Tem
Scarlet Peralta, Councilmember
Ric Alonzo, Councilmember
Salvador Melendez, Councilmember

CITY MANAGER
Raul Alvarez

CITY TREASURER
David Matanga

CITY ATTORNEY
Arnold M. Alvarez-Glasman

CITY CLERK
Christopher Jimenez

DEPARTMENT HEADS
Assistant City Manager
Fire Chief
Police Chief
Director of City Clerk Services
Director of Finance
Director of Human Resources
Director of Planning/Community Development
Director of Public Works
Director of Recreation and Community Services
Director of Transportation
Angelica Palmeros
Fernando Pelaez
Luis Lopez
Kimberly Guillen
Michael Solorza
Ramon Figueroa
Joseph Palombi
Cesar Roldan
David Sosnowski
John Soria

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NOTICES
This City Council Meeting ("Council") will be held in person and will meet at City Hall – City Council Chambers, 1600 West Beverly Boulevard, Montebello, California. The meeting will be live streamed and can be watched on the City’s website and YouTube Channel via the following link: https://www.montebelloca.gov, and may also be viewed on Spectrum Public Access Channel 3 for all Spectrum cable subscribers.

AMERICANS WITH DISABILITIES ACT: In compliance with the Americans with Disabilities Act (ADA) any person with a disability who requires special accommodations in order to participate in a meeting should contact the Administration Office at (323) 887-1437 Monday-Thursday from 7:30 a.m.-5:30 p.m. Please call 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II 1203). If you require translation services, please contact the City Clerk’s office 72 hours before this meeting. Si necesita servicios de traducción, comuníquese con la Oficina del Secretario Municipal 72 horas antes de esta reunión. 如果您需要翻译服务，请在会议前 72 小时联系市书记员办公室.

RULES OF DECORUM:

Pursuant to Section 54957.95 of the Government Code, the presiding member of the legislative body conducting a meeting, or their designee, is authorized to remove, or cause the removal of, an individual for disrupting the meeting.

Any such removal will be preceded by a warning to the disruptive individual by the presiding member of the legislative body or their designee that the individual’s behavior is disrupting the meeting and that the individual’s failure to promptly cease their disruptive behavior may result in their removal.

PUBLIC COMMENTS:

In-Person: For those interested in participating during the Public Comment period(s) or public testimony period for Public Hearings of the City Council meetings, you may address the City Council in person only the day of the meeting.

Speakers will be required to fill out a speaker card provided at the door and submit it to City Clerk staff prior to each Public Comment announcement period. Staff will number and call each speaker card in the order received. Closed Session begins at 6:00 p.m. and Regular Session immediately thereafter; if there is no Closed Session, Regular Session will begin at 6:00 p.m.

AGENDA MATERIALS: The agenda and/or agenda packet are available for public inspection at City’s website at:

Agendas, Minutes, and Videos,

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IN CONSIDERATION OF OTHERS, PLEASE TURN OFF, OR MUTE, ALL CELL PHONES AND PAGERS

THANK YOU FOR YOUR COOPERATION

OPENING CEREMONIES

CALL TO ORDER - 6:00 P.M.

ROLL CALL

ANNOUNCEMENT OF CLOSED SESSION ITEMS

PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, the public may submit a speaker card to the City Clerk staff for Closed Session items, prior to the beginning of this statement. Speakers will be called in the order received. Please be aware that the maximum time allotted for members of the public to speak on Closed Session items shall not exceed three (3) minutes per person. State Law prohibits the City Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the Mayor and City Council.

CLOSED SESSION
The City Attorney shall provide a briefing on the item listed for Closed Session as follows:

1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Maria Chavez vs. City of Montebello
Los Angeles Superior Court Case No. 22STCV37075

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
Significant exposure to litigation in one matter

REGULAR SESSION - 7:00 P.M.

CLOSED SESSION REPORT

INVOCATION

PLEDGE OF ALLEGIANCE

CORRECTIONS TO THE AGENDA - CITY MANAGER

CEREMONIAL ITEMS/PRESENTATIONS

3. CITIZEN OF THE MONTH - LORENA PIZANA

4. CLEAN TASK FORCE UPDATE
PUBLIC COMMENTS ON NON-AGENDA ITEMS (30 MINUTES)
At this time, the public may submit speaker card(s) to the City Clerk staff, for both agenda and non-agenda items, prior to the beginning of this statement; Public Hearing items do not require a speaker card.

The City Council will address non-agenda items during this section and speakers will be called in the order received. Those persons not accommodated during this 30-minute period will have an opportunity to speak under “Public Comments – Continued”, after all scheduled matters have been considered. Public Hearing, Regular Business and/or Consent Calendar items will be addressed at the time that matter of business is heard, in the order received.

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Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker. State Law prohibits the City Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the Mayor and City Council.

STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST

PUBLIC HEARING

5. INTRODUCE AND WAIVE FIRST READING OF ORDINANCE NOS. 2487, 2488, 2489, AND 2490, AMENDING PROVISIONS OF TITLE 17 (ZONING) OF THE CITY OF MONTEBELLO MUNICIPAL CODE,

RELATED TO MIXED-USE DEVELOPMENT STANDARDS, OBJECTIVE DESIGN STANDARDS FOR

RESIDENTIAL AND MIXED-USE DEVELOPMENT, AND SITE PLAN REVIEW STANDARDS, AND

DEMONSTRATING COMPLIANCE WITH STATE HOUSING LAW TO ACHIEVE ADEQUATE SITES FOR THE CITY’S 6TH CYCLE RHNA; ADOPT RESOLUTION NO. 26-30 TERMINATING RFP NO. 23-4; AND

APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE COVENANTS AND AGREEMENTS

FOR THE PRESERVATION AND PROTECTION OF THE ARMENIAN GENOCIDE MARTYRS

MONUMENT AND THE MONTEBELLO SCOUT HOUSE

RECOMMENDATION: It is recommended that the City Council:

1. Introduce and waive first reading of Ordinance No. 2487, amending Chapter 17.22 titled Commercial Zones Generally of the Montebello Municipal Code (“MMC”) to establish new mixed-use development standards applicable to the C-1 (Neighborhood Commercial) and C-2 (General Commercial) zoning districts, along with related updates incorporating mixed-use development provisions into Chapter 17.22; and

2. Introduce and waive first reading of Ordinance No. 2488, amending Title 17 – Zoning of the MMC to establish Chapter 17.21 titled Objective Design Standards, to provide new objective design standards for residential and mixed-use development projects; and

3. Introduce and waive first reading of Ordinance No. 2489, amending Chapter 17.74 titled Site Plan Review of the MMC to update thresholds for when a site plan review is required, and remove provisions that allow the combination of multiple discretionary entitlement approvals under a single application; and

4. Introduce and waive first reading of Ordinance No. 2490, approving the rezoning of certain properties to ensure consistency with the land use designations established by the Montebello 2040 General Plan and the opportunity sites identified in the City’s 6th Cycle Housing Element (2021-2029) in accordance with State Housing Law; and

5. Adopt Resolution No. 26-30 terminating Request for Proposals (“RFP”) No. 23-4 for strategic master planning services for the Montebello Golf Course and directing community engagement for future actions; and

6. Find and determine that the proposed amendments to Title 17 of the MMC are within the scope of, and consistent with, the 2040 General Plan, for which the City Council certified a Final Environmental Impact Report (“Final EIR”) (State Clearinghouse No.2023050665), certified on April 10, 2024, in compliance with the California Environmental Quality Act (“CEQA”), and

7. Approve and authorize the City Manager to execute the Covenant and Agreement, in a form approved by the City Attorney, for the preservation and protection of the Armenian Genocide Martyrs Monument; and

8. Approve and authorize the City Manager to execute the Covenant and Agreement, in a form approved by the City Attorney, for the preservation and protection of the Montebello Scout House; and

9. Take such additional, related, action that may be desirable.

REGULAR BUSINESS - NONE

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine. Any items a member wishes to discuss, including any items the public submitted speaker cards for, should be designated at this time. All other items may be

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approved in a single motion. Such approval will also waive the reading of any Ordinance.

6. RECEIVE AND FILE THE FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)

RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR); and,

2. Take such additional, related action that may be desirable.

7. AUTHORIZE RECEIPT OF GRANT AWARD FROM CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (“CALRECYCLE”) FOR THE ILLEGAL DISPOSAL SITE ABATEMENT

GRANT PROGRAM

RECOMMENDATION: It is recommended that the City Council:

1. Approve the acceptance of $275,000 in grant funds awarded to the City of Montebello by the California Department of Resources Recycling and Recovery (CalRecycle) through the Illegal Disposal Site Abatement Grant Program; and

2. Authorize the City Manager, and the Director of Planning and Community Development, as designee, to execute any documents or agreements, and any amendments thereto, necessary for the City’s participation in the grant program; and

3. Amend the Fiscal Year 2025-26 budget by increasing appropriations by $275,000 in Account No. 271- 50-594-6040.10 (CalRecycle - Disposal Sites Abatement, Community Development, CalRecycle - Disposal Sites Abate [expenditures, Other Contract Services]) and $275,000 in Account No. 271-99- 4198.51 (CalRecycle-Disposal Sites Abate, Non-Departmental, Miscellaneous Grants, CalRecycle – Disposal Sites Abate [revenue]); and

4. Take such additional, related, action that may be desirable.

8. ACCEPTANCE OF THE LED SIGN PROJECT (CP 933) LOCATED AT CITY HALL – NOTICE OF

COMPLETION

RECOMMENDATION: It is recommended that the City Council:

1. Accept the City Hall LED Sign Project (CP 933) as completed by Monarka Development Corp. (DBA Express Sign & Neon); and

2. Approve the final contract amount with Monarka Development Corp. (DBA Express Sign & Neon) for the City Hall LED Sign Project in the amount of $97,845, including change orders;

3. Approve the Final Total Project Budget (Attachment A);

4. Authorize the City Clerk to execute, verify and file the Notice of Completion (Attachment B) with the Los Angeles County Registrar-Recorder;

5. Authorize the release of the retention payment of $4,892 due to Monarka Development Corp. (DBA Express Sign & Neon) following the mandatory waiting period from the date the Notice of Completion is recorded;

6. Take such additional, related action that may be desirable.

9. APPROVE SUBMISSION OF TWO APPLICATIONS TO THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE STATE ACTIVE TRANSPORTATION PROGRAM CYCLE 8

RECOMMENDATION: It is recommended that the City Council:

1. Authorize staff to submit two applications to the State Active Transportation Program Cycle 8 for the Via Campo at Findlay Avenue Corridor and Madison Avenue at Concourse Road Roundabout; and

2. Authorize the City Manager to sign and execute all applicable documents associated with the submittal process; and

3. Take such additional, related action that may be desirable.

10. APPROVE SUBMISSION OF AN APPLICATION TO THE UNITED STATES DEPARTMENT OF

TRANSPORTATION FOR THE SAFE STREETS AND ROADS FOR ALL PLANNING AND DEMONSTRATION

COMPREHENSIVE SAFETY ACTION PLAN GRANT PROGRAM

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RECOMMENDATION: It is recommended that the City Council:

1. Authorize staff to submit an application to the Safe Streets and Roads for All (SS4A) Planning and Demonstration Comprehensive Safety Action Plan grant program; and

2. Authorize the City Manager to sign and execute all applicable documents associated with the submittal process; and

3. Take such additional, related action that may be desirable.

11. APPROVE ALLOCATION OF FUNDING FOR SAN GABRIEL VALLEY WATER COMPANY TO COMPLETE

DESIGN WORK FOR A WATER MAIN AND FIRE HYDRANTS ALONG LINCOLN AVENUE BETWEEN SAN

GABRIEL BOULEVARD AND AVENIDA DE LA MERCED

RECOMMENDATION: It is recommended that the City Council:

1. Approve the allocation of $60,000 as a deposit for San Gabriel Valley Water Company (SGVWC) to commence engineering design work for a water main and fire hydrants along Lincoln Avenue between San Gabriel Boulevard and Avenida De La Merced; and

2. Amend the Fiscal Year 2025-26 adopted budget to increase appropriations by $60,000 in Account 100- 30-330-6040.80 (General Fund – Public Works – Engineering – Contract Services-Engineering Services); and

3. Authorize the City Manager to execute all pertinent documents and agreements associated with the design work; and

4. Take such additional, related action that may be desirable.

12. APPROVE ISSUING REQUEST FOR PROPOSALS (RFP) NO. 26-10 FOR CITYWIDE STRIPING

RECOMMENDATION: It is recommended that the City Council:

1. Authorize issuing Request for Proposals (RFP) No. 26-10 for citywide street striping, pavement marking, and roadway legend services; and

2. Take such additional, related action that may be desirable.

13. ADOPT RESOLUTION NO. 26-28 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2026- 27 ANNUAL LEVY OF ASSESSMENTS FOR THE NATASHA LANE SEWER AND STORM WATER PUMP STATION ASSESSMENT DISTRICT NO. 2005-2 AND SETTING A DATE FOR A PUBLIC HEARING

RECOMMENDATION: It is recommended that the City Council:

1. Adopt Resolution No. 26-28 (Attachment A) approving the Fiscal Year 2026-27 Engineer’s Report (Attachment B) for the Annual Natasha Lane Sewer and Storm Water Assessment District No. 2005-2, setting a date for the Public Hearing for the regular meeting scheduled for June 24, 2026 at 6:00 pm; and

2. Take such additional, related action that may be desirable.

14. ADOPT RESOLUTION NO. 26-27 APPROVING THE ENGINEER’S REPORT FOR THE FISCAL YEAR 2026- 27 ANNUAL NATASHA LANE LANDSCAPE ASSESSMENT DISTRICT NO. 2005-1 AND SETTING A DATE

FOR THE PUBLIC HEARING

RECOMMENDATION: It is recommended that the City Council:

1. Adopt Resolution No. 26-27 (Attachment A) approving the Fiscal Year 2026-27 Engineer’s Report (Attachment B) for the Annual Natasha Lane Landscape Assessment District No. 2005-1, setting a date for the Public Hearing for the regular meeting scheduled for June 24, 2026 at 6:00 p.m.; and

2. Take such additional, related action that may be desirable.

15. TREASURER'S REPORT FOR THE QUARTER ENDING MARCH 31, 2026

RECOMMENDATION: It is recommended that the City Council:

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1. Receive and File the Quarterly Treasurer's Reort for the quarter ending March 31, 2206 (Third Quarter of FIscal Year 2025-26); and

2. Take such additional, related action that may be desirable.

16. APPROVE AGREEMENT NO. 4495 WITH 1921 MARKETING SERVICES FOR TURNKEY BUS ADVERTISING

SERVICES

RECOMMENDATION: It is recommended that the City Council:

1. Approve Agreement No. 4495 with 1921 Marketing Services (1921 Marketing), to provide turnkey Bus Advertising Services, for a one-year term with the option for renewal of up to two (2), additional one-year (1-year) terms; and

2. Authorize the City Manager to execute and finalize Agreement No. 4495 with 1921 Marketing on behalf of the City of Montebello; and

3. Take such additional, related, action that may be desirable.

17. APPROVE AMENDMENT NO. 2 TO AGREEMENT NO. 4131 WITH A & FLEET PAINTING, INC., FOR DESIGN,

REMOVAL AND INSTALLATION OF DECALS SERVICES

RECOMMENDATION: It is recommended that the City Council:

1. Approve Amendment No. 2 to Agreement No. 4131 with A & A Fleet Painting Inc. (A & A Fleet), for a one-year (1-year) term, for design, removal and installation services on Montebello Bus Lines (MBL) fleet of transit buses, and increase the total not-to-exceed amount by an additional $430,500; and

2. Authorize the City Manager and/or his designee to approve change orders for up to fifteen percent (15%) or $64,575, of the amended agreement amount; and

3. Authorize the City Manager and/or his designee to execute Amendment No. 2 on behalf of the City of Montebello (City); and

4. Amend the Fiscal Year 2025-26 adopted operating budget to increase appropriations by $495,075 in Account No. 600-90-910-6040.10 (Transit Fund, Transit, Operations, Contract Services, Outside Contracts); and

5. Take such additional, related action that may be desirable.

18. APPROVAL OF MINUTES: APRIL 8, 2026, CITY COUNCIL MEETING

RECOMMENDATION: It is recommended that the City Council:

1. Approve said Minutes as is.

19. PAYMENT OF BILLS: ADOPT RESOLUTION NO. 26-29 APPROVING THE CITY WARRANT REGISTER OF DEMANDS DATED APRIL 22, 2026

RECOMMENDATION: It is recommended that the City Council:

1. Adopt Resolution No. 26-29 approving the Warrant Register dated April 22, 2026.

PUBLIC COMMENTS - CONTINUED

AB 1234 TRAVEL REPORTS
Members 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/AGENCY ORALS
Announcements and requests for future agenda items.
• Ric Alonzo, Councilmember

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• Danielle Romero, Mayor Pro Tem

• Scarlet Peralta, Councilmember

• Salvador Melendez, Councilmember

• Georgina Tamayo, Mayor

CLOSED SESSION - CONTINUED

ADJOURNMENT
The City of Montebello will adjourn to the next Regular Meeting on May 13, 2026, at 6:00 p.m., which can be live- streamed at https://www.montebelloca.gov (Click on Live Stream).

I, Kimberly Guillen, Director of City Clerk Services for the City of Montebello, hereby certify that a copy of this agenda has been posted on or before Sunday, April 19, 2026, no later than 6:00 p.m.

Kimberly Guillen, Director of City Clerk Services

EXHIBIT - CITY OF MONTEBELLO FORECASTED AGENDA
Please note, the attached exhibit is a draft version that is to be used for reference purposes only; agenda items, information, and dates are subject to change. The exhibit will be placed at the end of the Agenda Packet. • CITY OF MONTEBELLO FORECASTED AGENDA

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ITEM # 5

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Raul Alvarez, City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: INTRODUCE AND WAIVE FIRST READING OF ORDINANCE NOS. 2487, 2488, 2489, AND 2490, AMENDING PROVISIONS OF TITLE 17 (ZONING) OF THE CITY

OF MONTEBELLO MUNICIPAL CODE, RELATED TO MIXED-USE

DEVELOPMENT STANDARDS, OBJECTIVE DESIGN STANDARDS FOR

RESIDENTIAL AND MIXED-USE DEVELOPMENT, AND SITE PLAN REVIEW

STANDARDS, AND DEMONSTRATING COMPLIANCE WITH STATE HOUSING LAW TO ACHIEVE ADEQUATE SITES FOR THE CITY’S 6TH CYCLE RHNA; ADOPT RESOLUTION NO. 26-30 TERMINATING RFP NO. 23-4; AND APPROVE

AND AUTHORIZE THE CITY MANAGER TO EXECUTE COVENANTS AND

AGREEMENTS FOR THE PRESERVATION AND PROTECTION OF THE

ARMENIAN GENOCIDE MARTYRS MONUMENT AND THE MONTEBELLO

SCOUT HOUSE

DATE: April 22, 2026

RECOMMENDATIONS:

It is recommended that the City Council:

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8. Approve and authorize the City Manager to execute the Covenant and Agreement, in a form approved by the City Attorney, for the preservation and protection of the Montebello Scout House; and

9. Take such additional, related, action that may be desirable.

FISCAL IMPACT:

None of the recommended actions have a fiscal impact. No development is authorized or approved as a result of the actions contemplated herein.

BACKGROUND/DISCUSSION:

On June 22, 2022, the City Council adopted the City’s Housing Element (6th Cycle, 2021- 2029) and subsequently was certified by the California Department of Housing and Community Development (“HCD”) on July 11, 2022.

On April 10, 2024, the City Council adopted the Montebello 2040 General Plan and the Downtown Montebello Specific Plan and certified a Final Environmental Impact Report (“Final EIR”) for both documents. The Montebello 2040 General Plan Update establishes the City’s long-term vision, goals, and policies to guide future development throughout the City.

As part of an extensive community engagement conducted from October 2020 through February 2024, approximately 31 public outreach activities were held in connection with the 2040 General Plan, Bike Plan, and Downtown Specific Plan. These community engagement efforts included 12 meetings before the decision-making bodies, 19 public workshops/focus group meetings, and two (2) separate surveys. The Montebello 2040 General Plan reflects input received from the community, stakeholders, and all who participated in the process. Through this community-based and collaborative approach, the General Plan has been designed to represent the interests and feedback of the community and to guide Montebello forward with a vision that supports progressive

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growth while preserving and enhancing the City’s quality of life.

The proposed text code amendments are a matter of citywide importance and are necessary to preserve and protect the public peace, health, safety, and welfare. These amendments serve as a critical implementation tool for the City’s Sixth Cycle Housing Element and the Montebello 2040 General Plan by ensuring that adopted goals and policies are realized through corresponding regulatory updates. The amendments advance the City’s housing and land use commitments by establishing new zoning classifications consistent with the City’s mixed-use standards, codifying Objective Design Standards for residential and mixed-use developments, removing regulatory constraints, streamlining development review processes, and improving consistency with recent State housing legislation. To ensure full alignment with the goals, objectives, and policies of the General Plan and Housing Element, City staff is proposing amendments to the MMC as outlined below.

1. Chapter 17.22 - Commercial Zones Generally: Add Sections 17.22.220 through

17.22.240 to establish new mixed-use development standards applicable to the C-1 (Neighborhood Commercial) and C-2 (General Commercial) zoning districts, along with related updates incorporating mixed-use development provisions into Chapter 17.22.

2. “New” Chapter 17.21 – Objective Design Standards: Establish a new chapter within the MMC to provide objective design standards for residential and mixed- use development projects.

3. Chapter 17.74 – Site Plan Review: Update thresholds for when a site plan review is required, remove provisions that allow the combination of multiple discretionary entitlement approvals under a single application, and include an exception that would allow certain qualifying mixed-use or residential projects to be reviewed ministerially.

4. Adequate Sites to Accommodate the Regional Housing Needs Allocation (“RHNA”): Approve the text amendments to ensure general consistency with the land use designations established by the Montebello 2040 General Plan, specifically the opportunity sites identified in the City’s 6th Cycle Housing Element (2021-2029).

On October 17, 2025, the City received a Corrective Action Letter from the California Department of Housing and Community Development (“HCD”), Division of Housing Policy Development, regarding the City’s implementation of Program 6 (Adequate Sites to Accommodate the RHNA) and Program 11 (Objective Design Standards, Approvals By-Right, and Administrative Approvals), which require the rezoning of adequate sites to address the City’s RHNA shortfall.

On November 5, 2025, the City transmitted its formal response to HCD, acknowledging

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applicable statutory deadlines and outlining a framework to obtain a one-time, one-year extension from February 2025 to February 2026 to achieve compliance with State Housing Law, consistent with commitments adopted in 2022 and reaffirmed in 2024 through the City Council approval of the 6th Cycle Housing Element and the 2040 General Plan.

On February 10, 2026, the Planning Commission held a duly noticed public hearing to consider proposed amendments to the City’s Zoning Code (Title 17 of the Montebello Municipal Code), including revisions to the Zoning Map. Following its independent review and consideration of the staff report and all public testimony, the Planning Commission unanimously adopted Resolution No. 02-26, recommending that City Council adopt Ordinance Nos. 2487, 2488, 2489, 2490 amending various provisions of Title 17, and approve the City’s Zoning Map pursuant to City Council Resolution No. 26-09.

On February 25, 2026, the City Council unanimously adopted Resolution No. 26-09 approving the Zoning Map consistent with the General Plan and the 6 th Cycle Housing Element.

On April 7, 2026, the City received a subsequent letter from HCD, Division of Housing Policy Development, regarding the City’s failure to adopt the required 6th Cycle Housing Element rezonings to accommodate its RHNA and providing notice of a potential violation of State Housing Law (see Attachment I).

As part of the City's ongoing efforts to fulfill its obligations to provide adequate sites to accommodate its Regional Housing Needs Allocation (RHNA) pursuant to Program 6, and to implement Objective Design Standards pursuant to Program 11, the City Council is considering Ordinance Nos. 2487, 2488, 2489, and 2490.

In addition, to promote transparency in the review of any future development proposals on City-owned land, and consistent with City Council direction, City staff will implement a comprehensive community engagement process to ensure meaningful opportunities for public participation. Specifically, Resolution No. 26-30 would require that all future Request for Proposals (“RFP’s”), including those initiated by or in coordination with private operators, pertaining to the 118-acre golf course property incorporate a comprehensive community engagement program. This program shall include, but not be limited to, appropriate technical analyses, such as traffic analysis. At a minimum, the community engagement process shall include three (3) publicly noticed outreach meetings. In addition, written notification shall be provided to all property owners and occupants within a 1,000-foot radius of the exterior boundaries of the approximately 118- acre golf course property to ensure broad awareness and opportunity for input.

It is important to note that none of the actions under consideration in this staff report would approve a development project or allow any construction.

ENVIRONMENTAL:

The proposed amendments to Title 17 of the Montebello Municipal Code are consistent

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with the 2040 General Plan, for which a Final Environmental Impact Report (Final EIR) was approved by the City Council on April 10, 2024 (SCH No. 2023050665), in compliance with CEQA Guidelines. The Final EIR evaluated the environmental impacts of implementing the General Plan, Specific Plan, and related zoning updates, and includes adopted findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

The 2040 General Plan includes the City’s 6th Cycle Housing Element, which was previously adopted and certified by the California Department of Housing and Community Development and was also analyzed within the Final EIR. The proposed zoning text and map amendments are within the scope of the certified Final EIR and do not result in new or more severe impacts. No further environmental review is required pursuant to CEQA Guidelines Sections 15162 and 15168.

ANALYSIS:

Collectively, the proposed zoning text amendments are intended to update Title 17 (Zoning) of the MMC to improve the housing development review process, ensure consistency with the City’s General Plan and Housing Element, and maintain compliance with State housing law. These amendments are described in greater detail below.

MIXED- USE STANDARDS (Attachment A)
The Montebello 2040 General Plan encourages mixed-use development as a means to integrate residential, commercial, office, civic, and employment uses in order to reduce vehicle trips and support walkable neighborhoods. Mixed-use development promotes economic development by allowing residential units, commercial uses, and employment opportunities to be located in close proximity. These development patterns support housing opportunities, reduce vehicle miles traveled, and strengthen neighborhood character.

Consistent with the goals and objectives of the Montebello 2040 General Plan, the City Council seeks to establish a flexible zoning framework that allows for high-quality mixed- use development while ensuring compatibility with existing neighborhoods. The intent of the mixed-use regulations is to provide clear development standards, permitted uses, and review procedures to guide future development within the City.

This proposed text amendment would amend Chapter 17.22 (Commercial Zones Generally) of the Montebello Municipal Code to establish mixed-use development standards within the City’s C-1 and C-2 commercial zones. The ordinance allows for the integration of residential, commercial, office, civic, and compatible employment uses within a single development. It establishes clear and objective regulations related to permitted and conditionally permitted uses, development intensity, building height, setbacks, parking, open space, and design standards. The mixed-use framework supports both vertical and horizontal development patterns and encourages pedestrian- oriented projects located near transit routes and multimodal corridors. The ordinance also includes incentives for housing development by allowing ministerial review when projects meet established objective design standards.

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This ordinance implements the Montebello 2040 General Plan and advances the City’s long-term land use, housing, and economic development goals by encouraging infill and redevelopment of underutilized commercial properties, increasing housing opportunities near transit corridors, and supporting local businesses.

The proposed amendments to Chapter 17.22 are set forth in Attachment A, attached hereto and incorporated by reference, with new text shown in underline (example) and deleting the text shown in strikeout (example).

OBJECTIVE DESIGN STANDARDS (Attachment B)
The State of California has adopted a series of laws to address the ongoing housing crisis and better meet the housing needs of its residents. These laws require cities across California to review and update their residential development and design standards to support faster and more predictable permitting timelines, while still achieving reasonable and high-quality design outcomes. Cities must ensure their local regulations comply with State law and do not unnecessarily hinder the development of housing.

In November 2020, the Southern California Association of Governments (“SCAG”) Regional Council approved the 2020 Sustainable Communities Program (“SCP”) Housing and Sustainable Development (“HSD”) Call for Applications. Through this program, SCAG awarded a Regional Early Action Planning (“REAP”) grant to the City of Montebello to evaluate, document, and modernize its multi-unit and mixed-use development standards and permitting processes. This effort is intended to support a greater understanding of how objective development standards can help increase housing production in Los Angeles County and throughout California.

As part of the REAP program, SCAG retained a design and planning consulting firm to develop a custom zoning “toolkit” of objective development standards tailored to the City of Montebello. This toolkit is intended to assist the City in more efficiently adopting new standards into the zoning code and implementing State housing law requirements.

Objective standards are clear, measurable development criteria used by local agencies to regulate new projects. These standards provide certainty for both applicants and the public and are the sole basis on which a local agency may approve, deny, or condition certain housing projects under State law. Establishing objective standards is a key strategy for cities seeking to increase housing production while maintaining compatibility with community character.

The City’s commitment to objective standards is reflected in Programs 11 and 12 of the City’s 2021–2029 Housing Element. Program 11 calls for the establishment of clear, precise, and objective development standards based on the community’s vision, along with a streamlined approval process for projects that comply with those standards.

Program 12 further commits the City to simplifying and making the permitting and regulatory review process more predictable in order to reduce development costs and encourage new housing construction.

Consistent with these commitments, staff is proposing a text amendment to Title 17 of the MMC to add Chapter 17.21 – Objective Design Standards, which would establish

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objective design standards applicable to residential and mixed-use developments. The effort utilizes the guidance of the SCAG objective design standards toolkit and existing standards currently applied by the City, such as the Downtown Montebello Specific Plan requirements for floor area ratio, height, open space, building modulation, frontage, setbacks, and step backs.

For reference, the proposed Ordinance for Chapter 17.21 is set forth in Attachment B.

SITE PLAN REVIEW (Attachment C)
The primary objective of Chapter 17.74 - Site Plan Review (“SPR”) is to minimize or preclude potential adverse impacts to the public interest or on abutting properties and adjacent residential, commercial and industrial neighborhoods, resulting from the design or layout of a proposed development. City Staff is proposing several text amendments to Section 17.74.030 – When Required, including increasing the thresholds that trigger a site plan review, eliminating language that bundles discretionary entitlements per project, and adding exceptions for qualifying mixed-use and residential projects.

The SPR ordinance was last updated in 1990 and currently requires a site plan review for both commercial and industrial projects involving the construction of five thousand square feet or more of building area, as well as residential projects resulting in three or more dwelling units. The proposed zoning amendment to Section 17.74.030(A) revises the threshold for required site plan reviews in industrial and commercial zoning districts from 5,000 square feet of new construction to 25,000 square feet or more and revises the threshold for residential projects from three or more dwelling units to ten or more dwelling units.

These amendments are intended to better align the level of regulatory review with the scale, complexity, and potential impacts of development. Commercial and industrial projects under 25,000 square feet are generally limited in intensity and are less likely to generate substantial impacts related to traffic, infrastructure demand, environmental effects, or land use compatibility. As such, requiring site plan review for smaller projects may impose unnecessary regulatory burdens without providing a corresponding public benefit. Similarly, increasing the residential threshold from three to ten dwelling units reflects contemporary development patterns and planning objectives. Smaller residential projects such as duplexes, triplexes, and small multi-unit developments, typically have minimal impacts on surrounding neighborhoods and infrastructure and are often consistent with existing zoning standards. Requiring site plan review for projects with as few as three units can create barriers to modest infill development, housing diversity, and the efficient use of urban land. By raising the threshold to ten dwelling units, the City can focus discretionary review on larger residential projects that are more likely to affect neighborhood character, circulation, parking demand, and public services, while streamlining the approval process for smaller-scale housing projects that support local and regional housing goals.

Additionally, Section 17.74.030(A) currently states that a separate site plan review is not required for projects that require approval of a conditional use permit. Staff is proposing that this language be removed from the ordinance, thereby allowing each discretionary entitlement to be processed and approved independently. This change will enable Staff

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and decision-makers to make distinct findings for each entitlement, rather than combining multiple approvals under a single application.

Processing discretionary entitlements separately improves clarity, transparency, and consistency in project review. Each type of approval looks at different aspects of a project and has its own standards that must be met. Reviewing them independently allows staff and decision-makers to clearly explain how a project meets each set of requirements, rather than combining multiple approvals into a single decision. This change improves transparency for the public, helps ensure that all applicable standards are properly addressed, and strengthens the overall review process.

Lastly, staff is proposing to add Section 17.74.030(B) to include an exception in the site plan review standards that would allow certain qualifying mixed-use or residential projects to be reviewed ministerially, rather than through the discretionary site plan review process, when at least 20 percent of the residential units are reserved for low-income households.

This exception is intended to support the development of affordable housing by reducing review time and cost. State housing laws increasingly encourage or require streamlined, ministerial approval processes for housing projects that meet objective development standards and include affordable units. By allowing qualifying projects to proceed through ministerial review, the City is aligning its local regulations with state housing policies, reducing barriers to affordable housing development, and supporting regional and statewide housing production goals.

Projects eligible for this exception would still be required to comply with all applicable zoning, design, and development standards, ensuring compatibility with surrounding areas while advancing housing affordability and equity objectives.

The proposed amendments to Chapter 17.74 are set forth in Attachment C, attached hereto and incorporated by reference, with new text shown in underline (example) and deleting the text shown in strikeout (example).

ADEQUATE SITES TO ACCOMMODATE THE RHNA (Attachment D)
Prior to the adoption of the Montebello 2040 General Plan Update, the City’s General Plan was last updated in 1973, which was also the last time the City’s zoning designations were substantially revised.

In alignment with the proposed zoning text amendments, the City Council adopted Resolution No. 26-09 on February 25, 2026, approving the current Zoning Map. The proposed zoning amendments are based on the following criteria:

• To ensure consistency with the land use designations established by the Montebello 2040 General Plan and the opportunity sites identified in the City’s Housing Element; and

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• To correct parcels that are incorrectly zoned, thereby aligning zoning designations with surrounding land use patterns and current development standards.

Consistent with the proposed mixed-use development standards and objective design standards, the zoning amendments would allow mixed-use development within the C-1 (Neighborhood Commercial) and C-2 (General Commercial) zoning districts. These changes focus on the City’s primary commercial corridors, including Montebello Boulevard, Beverly Boulevard, Whittier Boulevard, Washington Boulevard, and Garfield Avenue.

A central objective of the Montebello 2040 General Plan is to preserve and stabilize established residential neighborhoods while directing growth toward key commercial corridors. The proposed amendments ensure consistency with the General Plan land use framework and the opportunity sites identified in the City’s Housing Element, in accordance with State Housing Law. For reference, the proposed ordinance to accommodate adequate sites for Montebello’s 6th Cycle RHNA is provided in Attachment D.

GENERAL PLAN CONSISTENCY
The proposed Zoning Code amendments are consistent with and meet the goals and policies of the City of Montebello 2040 General Plan. The General Plan emphasizes directing growth to established corridors and neighborhoods through compact, infill development and mixed-use land uses. Policies within “Our Prosperous Community” chapter (Policies P2.2, P2.6, P2.7) support corridor-focused development, urban infill, and compact development patterns while preserving and enhancing existing industrial areas to meet current and future needs. The proposed zoning updates align with these policies by allowing increased density and flexibility within designated corridors and neighborhood land use areas, while maintaining protection for existing sites.

Additionally, policies within “Our Well-Planned Community” chapter (Policies P3.3, P3.4, and P3.6) promote revitalization of established neighborhoods and corridors, encourage the development of diverse and walkable neighborhoods, and support the preservation and expansion of industrial districts.

Although approval of the proposed amendments will bring the majority of identified parcels into alignment with the City’s General Plan, with an emphasis on rezoning those sites identified in the City’s 6th Cycle Housing Element, the General Plan is not intended to function as a universal solution for every neighborhood. The General Plan does not function as a regulatory document; rather, it provides a vision with goals and policies. As implementation moves forward and additional site-specific and neighborhood-level conditions are evaluated, some parcels may remain inconsistent with the adopted designations. Staff will continue to evaluate those parcels on a case-by-case basis and may be considered for future General Plan designation amendments and/or rezoning to ensure the City’s land use policies remain responsive, context-sensitive, and consistent with long-term planning objectives.

Collectively, these policies support the proposed Text Code Amendments, that are consistent with and support the Montebello 2040 General Plan by advancing the City’s

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adopted goals, objectives, and future vision for growth and development. The proposed amendments all align with applicable land use objectives, ensuring that future development is compatible with the future goals of the City and maintain consistency with the General Plan’s framework.

The following General Plan goals and policies apply to the proposed Text Code Amendments within Title 17 of the Montebello Municipal Code:

General Plan “Our Prosperous Community” Element policy 2 (P2.2) “Promote corridor development.”

General Plan “Our Prosperous Community” Element policy 2 (P2.6) “Preserve and enhance industrial areas.”

General Plan “Our Prosperous Community” Element policy 2 (P2.7) “Encourage urban infill and compact development.”

General Plan “Our Well-Planned Community” Element policy 3 (P3.3) “Revitalize established neighborhoods and corridors”.

General Plan “Our Well-Planned Community” Element policy 3 (P3.4) “New development will create diverse and walkable neighborhood”.

General Plan “Our Well-Planned Community” Element policy 3 (P3.6) “Preserve and enhance the industrial district while retaining and expanding existing businesses”.

SUMMARY:

The proposed text amendments to the Zoning Code are consistent with the Montebello 2040 General Plan and the City’s Housing Element, as they implement policies that promote mixed-use development, establish objective design standards, and ensure consistency between zoning regulations and General Plan land use designations.

Staff recommends that the City Council introduce and waive first reading of Ordinance Nos. 2487, 2488, 2489, and 2490, amending provisions of Title 17 (Zoning) of the City of Montebello Municipal Code. The proposed Zoning Code amendments include the establishment of new mixed-use development standards, the adoption of objective design standards for residential and mixed-use developments, and revisions to the existing site plan review standards. Collectively, these amendments are intended to implement the goals, policies, and programs of the City’s General Plan and Housing Element in accordance with State Housing Law.

ATTACHMENT(S)

1. Attachment A - Ordinance 2487_Mixed-Use Development Standards

2. Attachment B -Ordinance 2488_ Objective Design Standards

3. Attachment C - Ordinance 2489_Site Plan Review Standards

4. Attachment D - Ordinance 2490- Sites to meet RHNA

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5. Attachment E - Executed Planning Commission Resolution No. 02-26

6. Attachment F - Resolution_ Terminating RFP 23-4

7. Attachment G_Covenant and Agreement_Armenian Genocide Martyrs Monument

8. Attachment H_Covenant and Agreement_Scout House Preservation

9. Attachment I_HCD Transmittals and City Response

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ATTACHMENT A

ORDINANCE NO. 2487

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA, AMENDING CHAPTER 17.22 COMMERCIAL ZONES

GENERALLY TO INCLUDE MIXED USE DEVELOPMENT STANDARDS

WHEREAS, the City of Montebello is a general law city organized and existing under the laws of the State of California; and

WHEREAS, Title 17 of the Montebello Municipal Code establishes zoning regulation to implement the City of Montebello General Plan; and

WHEREAS, the City of Montebello General Plan encourages compact, pedestrian oriented development that integrates residential, commercial, civic and employment uses; and

WHEREAS, mixed-use development promotes efficient land uses, economic vitality, housing opportunities, reduced vehicle trips, and enhanced community character; and

WHEREAS, the General Plan encourages mixed–use development to integrate residential, commercial, office, civic, and employment uses to reduce vehicle trips and support walkable neighborhoods; and

WHEREAS, mixed-use development promotes economic development by encouraging residential units with commercial uses and employment opportunities within close proximity to residential areas; and

WHEREAS, the mixed-use is intended to provide clear development standards, permitted uses, and review procedures to guide future development; and

WHEREAS, the City Council desires to provide a flexible zoning framework that allows for high quality development while ensuring compatibility with existing neighborhoods; and

WHEREAS, the City Council finds that establishing mixed-use standards is consistent with the goals and policies of the Montebello General Plan and the public health, safety, and welfare; and

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

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SECTION 1. RECITALS. The above recitals are true and correct and made a part of the findings in support of this Ordinance.

SECTION 2. FINDINGS. The City Council hereby finds that this Ordinance is consistent with the City’s General Plan ensuring compatibility between the different land uses operating within the designated mixed-use areas. The mixed-use standards are intended to implement goals and policies of the Montebello General Plan by providing opportunities for integrated residential, commercial, office, civic and compatible employment within the city while also promoting a pedestrian oriented environment, infill development, and the revitalization within downtown, corridors, and neighborhoods.

SECTION 3. Chapter 17.22 of the Montebello Municipal Code is hereby amended in its entirety to read as follows (new language is underlined, while removed language is stricken):

Chapter 17.22 COMMERCIAL ZONES GENERALLY

17.22.010 Scope.

The following regulations shall be applicable to all properties and uses on any commercial (C) zone. The mixed-use sections shall apply to the C-1 and C-2 zones as described in section 17.22.220.

17.22.020 Development standards—Lot area, width and depth.

Exhibit 17.22.020 Commercial Development Standards, not applicable to mixed- use or standalone residential development projects.

EXHIBIT 17.22.020

COMMERCIAL DEVELOPMENT STANDARDS
Minimum Lot Maximum Zone
Area Width Depth Building
Height
Floor
Area
Ratio
Lot
Coverage
C-R 5,000 sq.
ft.
50 ft. 100 ft. 35 ft.
where
common
lot line
with R-1
(25 ft. for
any
portion of
building
within 15
ft. of R-1
property)

0.5:1 60%

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C-1 5,000 sq.
ft.
50 ft. 100 ft. 35 ft.
where
common
lot line
with R-1
(25 ft. for
any
portion of
building
within 15
ft. of R-1
property)
1:1 Unlimited
except for
required
yard
areas
C-2 2,500 sq.
ft.
25 ft. 100 ft. 35 ft.
where
common
lot line
with R-1
(25 ft. for
any
portion of
building
within 15
ft. of R-1
property)
3:1 Unlimited
except for
required
yard
areas
C-M 7,500 sq.
ft.
25 ft. 100 ft. 35 ft.
where
common
lot line
with R-1
(25 ft. for
any
portion of
building
within 15
ft. of R-1
property)
2:1 Unlimited
except for
required
yard
areas

17.22.030 Off-street parking and loading.

In addition to the following regulations, each lot or parcel of land in the C zones shall have and maintain off-street parking as prescribed in Chapter 17.52 of this code, Off- Street Parking Regulations. Any use with a gross floor area over six thousand square feet which requires deliveries or shipments must provide off-street loading facilities in accordance with the following requirements:

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A. Required Spaces. Off-street loading spaces shall be provided on the same lot with every building or separate occupancy as follows:

Gross Floor Area (square feet) Required Spaces
6001 — 10,000 1
10,001 — 20,000 2
20,001 — 50,000 3
50,001 — 100,000 4
100,001 — 200,000 5
Each additional 100,000, or fraction
thereof
1 B. Size. Each off-street loading space shall be not less than twelve feet in width and thirty feet in length and fifteen feet in height. Uses requiring four or more spaces shall have one quarter (twenty-five percent) of the spaces with a minimum width of fourteen feet and a minimum length of sixty feet.

C. Location. Off-street loading facilities shall be located so that vehicles shall not extend on to public sidewalks or streets or required driveways in the course of loading or unloading goods.

17.22.040 Development standards—Trash areas.

Each lot or parcel shall be provided with facilities for the temporary storage and collection of trash, rubbish and garbage (hereafter "facilities") in accordance with all of the following:

A. Such facilities may be located within a building, or, if in the open, shall be enclosed by a masonry wall architecturally compatible with the main building and including a solid gate.

B. Where bulk-type trash containers are used, the same shall be fitted with rubber wheels for ease of movement.

C. All trash, rubbish and garbage receptacles and surrounding areas shall be regularly cleaned and maintained.

D. All containers shall be of substantial construction and provided with tight-fitting lids.

E. All trash storage areas shall be located for convenient vehicular access for pickup and disposal.

F. Trash areas in setbacks abutting residential zones are prohibited.

17.22.050 Development standards—Mechanical equipment, utilities or satellite dishes.

Each lot or parcel which has mechanical equipment or utilities or similar machinery located outside of the exterior walls of any building (except window-mounted devices), including roof-mounted equipment, shall:

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Created: 2025-11-26 12:53:49 [EST]

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A. Completely screen all such devices from view from any public right-of-way or adjacent residential uses by either view-obscuring landscaping, or architectural features compatible with the main structure(s);
B. Maintain all such devices to prevent collection of litter and to avoid unnecessary noise.

17.22.060 Development standards—Signs.

Signs shall be in compliance with Chapter 17.62 of this code.

17.22.070 Development standards—Storage.

Storage shall be limited to accessory storage of commodities sold at retail or utilized in the conduct of a permitted use which is located on the premises. Storage must be within a completely enclosed building, except that vehicles and equipment used in the operation of a permitted use may be stored outdoors on the premises in the C-M zone.

17.22.080 Development standards—Setbacks, buffering and screening.

A. Minimum setbacks are shown on Exhibit 17.22.080 (A), Setback Requirements for Commercial Zones.

B. Landscaping is required throughout all required setbacks which abut residential property and throughout all other setbacks and open areas which are visible from the public street right-of-way unless used for parking, access or loading.

C. A solid wall or decorative building facade must be constructed along all property lines abutting residential property. Such fences or walls must be a minimum of six feet in height. Any solid fence which is constructed within twenty feet of a street right-of-way may not exceed three feet in height.

D. All fences or walls shall be of materials and design architecturally compatible with the main building.

E. There shall be no height limit on fences or walls on commercial properties adjacent to residential properties except where the property is adjacent to a residentially- zoned front yard, the fence or wall shall be no more than three feet in height.

F. 1. If there is a common side or rear lot with residentially-zoned property, the commercially-zoned property must have a solid decorative (on both sides) wall. A wall shall be considered decorative if it incorporates architectural variation on its surface. That is, every six feet the materials or patterns of the wall shall vary.

2. In addition, the facade of such wall which faces the residential property shall be of a material as described in Section 17.10.130 (D).

EXHIBIT 17.22.080 (a)

SETBACK REQUIREMENTS FOR COMMERCIAL ZONES
From Lot Line Minimum Setback*

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Front 5 feet; 0 feet with a decorative facade.
10 feet if abutting an R-zone.
20 feet in C-R if side abuts an R-zone.

Side 5 feet (15 feet if abutting R-zone); or
0 feet if no windows or doors (and
decorative if abutting an R-zone).
5 feet minimum in first 20 feet back from
the street if abutting an R-zone and has a
decorative facade.
5 feet in C-R if abutting R-zone.

Side Facing Street 5 feet; or 0 feet if decorative facade; 10 feet if C-R or if reverse corner lot
abutting R-zone.

Rear 5 feet (15 feet if abutting R-zone); or
0 feet if no windows or doors (and
decorative if abutting R-zone).
5 feet minimum in first 20 feet back from
street if a reverse corner lot abutting an
R-zone and has a decorative facade.

* Note: The required yard setback shall be increased to twenty feet for any yard where the driveway enters.

17.22.090 Development standards—Landscaping.

A. Landscaping shall consist of a combination of trees, groundcover and shrubbery to adequately cover all designated landscaped areas when installed. Plant materials shall cover the designated planting areas from the outset.

1. Shrubs shall be not less than three feet in height when planted and cover not less than thirty percent of the landscaped area.

2. Trees shall be planted at a rate of one tree for each twenty linear feet of landscaped area (excluding parking lots). Trees shall be at least six feet in height from the ground to the lowest limb at the time of planting and shall attain a mature overall height of at least fifteen feet. Of each five required trees, one shall be at least fifteen feet in overall height when planted.

B. All landscaping shall be maintained in a neat, clean and healthful manner. To that end, each landscaped area shall be provided with a permanent, underground, automated irrigation system.

C. Nonliving material shall not be substituted for required landscaping, except that decorative rocks or stones may be substituted for groundcover where trees and shrubbery are sufficiently dense, (that is, cover at least seventy percent of the landscape area when planted).

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D. A landscape plan (including plans for a permanent underground automated irrigation system) shall be submitted with the site plan for all commercial development. All landscaping and trees shall be approved by the city planning division, and installed prior to the issuance of a certificate of occupancy.

E. 1. Where a parking lot is visible from a public street, and lies within fifty feet of that street right-of-way, a five-foot deep landscape strip shall be developed adjacent to the street right-of-way in front of the parking lot.

2. In addition, if more than ten automobile parking spaces exist on a C-zoned lot or parcel of land, trees shall be provided internally in the lot in the amount of one tree for each ten parking spaces. The trees shall be at least six feet in height from the ground to the lowest limb at the time of planting and shall attain an overall height at maturity of at least fifteen feet.

F. All landscaping provided in conjunction with the development of parking facilities serving commercially-zoned properties shall be surrounded by a continuous six-inch concrete curb.

17.22.100 Development standards—Building materials.

A. A building facade shall be considered decorative if it incorporates architectural variations on its surface. That is, for every six feet in height, an additional surface material or color shall be used.

B. Metal buildings are prohibited (except for emergency equipment and supply shelters).

C. Fence materials shall be wrought iron, slump stone, split-face rock, brick, stucco or a similar material as approved by the planning division. (Chain link fencing and nondecorative masonry walls are permitted except where visible from and parallel to public streets or along property lines that adjoin residential property).

D. Security gates or grills are prohibited on the exterior of windows, doors or other entry ways visible from the public right-of-way.

E. All exterior building materials are subject to review by the planning division.

17.22.105 Development standards—Color.

A. The purposes of this section are to establish exterior color standards for structures in the commercial zone to ensure that such structures (except those structures used solely for residential purposes) remain compatible and consistent with surrounding development and the desired character of the community, to promote a positive and attractive business environment in the city and to implement the goals and policies of the city's design guidelines. Providing for exterior color standards will create a sense of aesthetic harmony and encourage higher quality development, therefore improving the quality of life and overall image of the city. For purpose of this section, the term "structures" shall refer solely to the following: buildings, accessory buildings, and fences.

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B. Consistent with the city of Montebello's design guidelines for commercial development, the primary body color of the exterior of a structure in the commercial zone shall be painted or colored in earth tones and neutral colors. Examples of earth tone or neutral colors include off-whites, siennas, light greys, beiges, tans, browns or other similarly subdued tones, shades, or colors. When choosing exterior colors, consideration shall be given to the color of other structures nearby, with the objective being that the exterior colors of adjacent or surrounding structures complement one another.

C. While earth tones and neutral colors shall serve as the dominant overall primary body color of the exterior of a structure within the commercial zone, brighter colors may be used to accent other structural elements such as doors, window frames and other architectural features. Neon colored paint shall not be allowed on any structure. Such brighter colors and the placement of such brighter colors shall complement the primary body color of the structure as well as highlight decorative details, such as ornaments, trims, fascias, inlays, tile, ironworks, awnings and other architectural features of the structure.

D. These color standards shall apply to the color of new structures in the commercial zone as well as the re-painting and color of existing structures in the commercial zone. For purposes of this section, "existing structures" shall mean any structure (whether occupied or vacant) located in the commercial zone which is built and in existence prior to the effective date of this section of the zoning code.

E. Any property owner or designated representative of the owner of any existing structure in the commercial zone whose existing exterior color(s) do not comply with the color standards set forth herein at the time this section becomes effective shall have eighteen months from the effective date of this section to comply with the provisions herein. Moreover, if an existing structure in the commercial zone is re- painted after this section becomes effective and the color(s) used do not conform to these color standards, it shall be subject to code enforcement for compliance.

F. Exterior Colors—Existing Structures.

1. Permits shall be required to re-paint the exterior of any existing structure in the commercial zone, provided that no fee shall be charged by the city of Montebello for processing or obtaining the permit. In order to obtain the permit to re-paint the existing structure, the property owner or designated representative of the owner of any existing structure in the commercial zone shall submit the proposed exterior color plan to the city's planning division in order to determine if the color plan complies with the color standards set forth herein. For purpose of this section, the terms "exterior color plan," "color plan" or "color plans" shall all refer to any document or rendering describing or depicting the exterior colors to be used on the structure, including but not limited to, a color and materials board or exterior paint color samples. A good faith effort in achieving color compatibility and harmony with adjacent structures is required by all applicants. The planning division shall review and make a determination regarding the proposed color plan. If the color plan is approved by the planning division, a permit shall thereafter be issued to the property owner or designated representative of the

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owner of the existing structure. If the color plan is not approved by the planning division, the matter may be appealed to the design review board with no fee assessed upon the applicant for purpose of the appeal. As part of the appeal, the applicant may provide a written explanation describing why the proposed color plan is required or that no other alternative color scheme can be employed.

The design review board shall review appeals and approve, approve with conditions, or deny the proposed color plans. The decision of the design review board is final.

2. With respect to administrative projects other than re-painting of existing structures in the commercial zone, the exterior color plans shall be reviewed by the planning division for compliance with the color standards herein. Any property owner or designated agent of the owner of an existing structure in the commercial zone objecting to a determination or disapproval of the exterior color plans by the planning division may appeal the matter to the design review board.

No fee shall be assessed upon the applicant for purpose of the appeal. As part of the appeal, the applicant may provide a written explanation describing why the proposed color plan is required or that no other alternative color scheme can be employed. The design review board shall review appeals and approve, approve with conditions, or deny the proposed color plans of the existing structure in the commercial zone. The decision of the design review board shall be final.

3. With respect to discretionary projects (or projects requiring planning commission or city council review) involving existing structures in the commercial zone, the exterior color plans shall be reviewed by the design review board for compliance with the color standards herein. Any property owner or designated agent of the owner of an existing structure in the commercial zone objecting to a determination or disapproval of the exterior color plan by the design review board may appeal the matter to the city council and pay the requisite fee for the appeal.

As part of the appeal, the applicant may provide a written explanation describing why the proposed color plan is required or that no other alternative color scheme can be employed. The city council shall review appeals and approve, approve with conditions, or deny the proposed color plans of the existing structure in the commercial zone. The decision of the city council shall be final.

G. Exterior Colors—New Structures.

1. Exterior colors to be used on new structures in the commercial zone shall be reviewed either by the planning division or the design review board as part of its general review process for administrative or discretionary projects. Exterior color review shall be required upon request for any permit or other type of building or land use entitlement required by this code with respect to the construction or development of any new structure in the commercial zone. Proposed color plans shall be provided by the applicant as required by the planning division or the design review board. A good faith effort in achieving color compatibility and harmony with adjacent structures is required of all applicants.

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2. With respect to administrative projects, the planning division shall review the proposed color plans. Any applicant objecting to a determination or disapproval of the exterior color plans by the planning division may appeal the matter to design review board with no fee assessed upon the applicant for purpose of the appeal. For purpose of appeal, the applicant may provide a written explanation describing why the proposed color plan is required or that no other alternative color scheme can be employed. With respect to discretionary projects, the planning division shall present the exterior color plans to the design review board. The design review board shall review the proposed color plans and determine compliance with the color standards herein. In reviewing the proposed color plans, the design review board can approve, approve with conditions, or deny the proposed color plans. If the proposed color plans are not approved by the design review board, the applicant can modify the proposed color plans and resubmit them to the design review board, or appeal the matter to the city council within fourteen days of the design review board's action, or the next city council meeting, whichever is sooner. The decision of the city council regarding the appeal of the design review board's determination shall be final.

17.22.110 Development standards—Noise.

A. 1. Every use shall be so operated that the noise inherent and recurrently generated does not exceed the following levels at the lot line of the lot on which the use is located:

Adjacent Zone Maximum Noise Level: 7 a.m.
to 10 p.m.

Maximum Noise Level: 10
p.m. to 7 a.m.

Residential 65 dBA 60 dBA
Commercial 70 dBA 70 dBA
Industrial 75 dBA 75 dBA

2. Every use in the C-R and C-1 zones shall be so operated that the noise inherently and recurrently generated does not exceed sixty dBA between seven a.m. and nine p.m. and fifty-five dBA between ten p.m. and seven a.m. when adjacent to a residential zone.

B. It is unlawful for any person or any property to create any noise, or to allow the creation of any noise on property owned, leased, occupied or otherwise controlled by such person, which causes the noise level when measured on any other property, to exceed:

1. The noise standard for a cumulative period of more than thirty minutes in any hour; or

2. The noise standard plus five dBA for cumulative period of more than fifteen minutes in any hour; or

3. The noise standard plus ten dBA for a cumulative period of more than five minutes in any hour; or

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4. The noise standard plus fifteen dBA for a cumulative period of more than one minute in any hour; or

5. The noise standard plus twenty dBA for any period of time.

C. For the purpose hereof, the peak decibel reading for a noise with a fluctuating noise level (such as live or recorded music) shall be considered as noise level for the entire cumulative period of the noise. Likewise, the time between repetitive intermittent noises (such as banging, pounding, or hammering) shall be included in the cumulative period of the noise.

17.22.120 Limitations on permitted uses—Enclosure.

All uses, including storage, shall be in a completely enclosed building, except as otherwise permitted in this chapter.

17.22.130 Limitations on permitted uses—Sales uses.

All permitted sales shall be limited to retail sales only (C-1 and C-2 only).

17.22.140 Limitations on permitted uses—Storage of certain materials.

Materials which might cause fumes or dust, which constitute a fire hazard, or which are edible by or attractive to rodents or insects shall be stored only in closed containers.

17.22.150 Limitations on permitted uses—Outdoor sales areas.

Permitted outdoor sales areas shall be improved and maintained to comply with all of the regulations of Chapter 17.52 of this code for the improvement and maintenance of off-street parking areas. All permitted outdoor sales and/or display areas visible from the public right-of-way shall be separated from the public right-of-way by a minimum of a ten- foot wide landscape planter located adjacent to the street facing property lines. In addition a minimum of five percent of such lot area used for outdoor sales or display shall be landscaped in accordance with Section 17.22.090 of this code.

17.22.160 Limitations on permitted uses—Temporary uses.

Those temporary uses permitted pursuant to Appendix A, Index of Permitted Uses and to Chapter 12.16 of this code, temporary uses.

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17.22.170 Limitations on permitted uses—Conditional uses.

Those conditional uses permitted pursuant to Appendix A, Index of Permitted Uses. (See Chapter 17.70 of this code, Conditional Use Permits.)

17.22.180 Limitations on permitted uses—Civic center district.

All plans for buildings or structures, other than single-family residential units, proposed to be located upon properties included in the district, shall be submitted to the planning commission and city council for review and approval prior to the issuance of a building permit. (See Chapter 17.40 of this code.)

17.22.190 Limitations on permitted uses—Extended hours permits.

A. In the general commercial zone, restaurants may stay open between twelve a.m. and seven a.m. only with an extended hours permit. In the C-1 zone, take-out food establishments may stay open between nine p.m. and seven a.m. only with an extended hours permit.

B. An application for an extended hours permit must be made by the person intending to operate the restaurant in question. The application must be signed by the restaurant operator and must be filed with the city license collector using a standardized form containing the following information:

1. The address of the restaurant for which the application is being submitted;

2. The name and address of the owner(s), partners, officers or directors of the business;

3. The name and address of the applicant;

4. The intended hours of operation;

5. The name and address of any person in charge of the business during the hours between twelve a.m. and seven a.m.

C. 1. Upon receipt of an application for an extended hours permit, the license collector shall forward the application to the special services officer who will initiate a request for an investigation of the applicant, the business, and the neighborhood by the police department.

2. Within thirty days from receipt of the application, the special services officer will issue the permit if it can be found that:
a. The application is complete and in proper form and all information provided is accurate and true;
b. The proposed extended hours of operation will not create a public nuisance infringing on the peace and safety of nearby businesses and residents; c. That the extended hours of operation do not conflict with any state or local law, ordinance or existing permit.

2. If the special services officer cannot make one or more of the findings stated in subdivision 1 of this subsection, the permit request cannot be approved. In such case, the applicant may request a city council hearing on the application.

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Pending testimony at a public hearing before the city council, the council may issue the permit and may impose special conditions on the permit.

D. Extended hours permits are not transferable.

E. Extended hours permits must be renewed on an annual basis. An application form as described must be completed and submitted with the annual business license.

The license collector will forward the application to the special services officer to be reviewed for changes or problems which may have occurred during the previous year. Within thirty days, the special services officer will either issue the permit renewal or inform the applicant by certified mail that the permit has been denied.

F. At any time that it becomes apparent to the special services officer or to the chief of police that an existing permit is in violation of one or more findings stated herein, a hearing before the city council may be scheduled. Pending public testimony, the city council may revoke, suspend, or place special conditions on the permit in question.

In no case shall the city council revoke or place permanent special conditions on a permit without a public hearing. However, the city council may suspend or place temporary conditions on a permit at any time. Notice of such suspension must be given to the applicant by certified mail within five days after the city council action.

17.22.200 Limitations on permitted uses—Motels and hotels.

Motels and hotels are permitted in the C-2 and C-M zones, provided the following conditions are met:

A. All motel/hotel projects shall have a minimum of forty units; B. The site for a motel or hotel development must be at least three hundred feet away from residentially-zoned property;
C. A motel or hotel may not be rented for a single period less than twenty-four hours nor more than thirty days;
D. Each motel or hotel unit must be at least two hundred twenty-five square feet in size including the restroom and shall provide the following amenities: telephone, television, wall-to-wall carpeting;
E. Motel and hotel sites shall provide a ten-foot-wide landscape strip along all street frontages; and
F. All facades of motel and hotel buildings shall be decorative, using three or more different surface materials, textures and colors.

17.22.210 Issuance of building permits for lots abutting a narrow street.

No building permit shall be issued for the construction, reconstruction or relocation of any building or structure to be located on any lot in this zone, abutting upon a street having a lesser width than established by resolution of the city council unless the following requirements are complied with:

A. Dedication of Street Right-of-Way. When the building permit valuation is fifteen thousand dollars or more, the owner of such lot shall make a formal offer of dedication to the city for public street purposes, and all appurtenant uses, of a

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depth equal to one-half of the width of the street as described by resolution of the city council.

B. Setbacks. The required setback shall be maintained in this zone for all buildings, structures and improvements including off-street parking as measured from the right-of-way width established by resolution of the city council.

C. Off-Site Improvements. When the building permit valuation is seven thousand five hundred dollars, any building permit shall be subject to provide improvements for curb, gutter and sidewalk in compliance with Section

15.04.070.

17.22.220 Mixed- Use Development Standards – Purpose and Intent The purpose of this Chapter is to ensure compatibility between the different land uses operating within the designated mixed-use areas. The mixed-use standards are intended to implement goals and policies of the Montebello General Plan by providing opportunities for integrated residential, commercial, office, civic and compatible employment within the city while also promoting a pedestrian oriented environment. The requirements of this Chapter shall apply to establish regulations for mixed-use housing opportunities in the City of Montebello (the “City”).

A. Mixed-use development in the C-1 Zone is intended for predominantly residential areas in proximity to bus routes and multi-modal corridors. The C-1 Zone permits horizontal and vertical mixed- use appropriately scaled for adjacent neighborhoods.

B. Mixed-use development in the C-2 Zone is intended to accommodate the highest-intensity activity centers in proximity to bus routes and multimodal corridors. The C-2 Zone permits both horizontal and vertical mixed-use development at a scale appropriate for high-intensity uses that benefit from transit access and pedestrian activity.

17.22.230 Permitted uses in Mixed-Use Zone
A. Permitted uses.

In addition to Appendix A- INDEX OF PRIMARY USES, Table 17.22.230 lists the permitted uses and conditionally permitted land uses for the mixed- use developments in the C-1 and C-2 zoned lots indicating the type of approval required to comply with all provisions of this title.
a. Use not listed. When a use is not specifically listed in Table 17.22.230, the Planning and Community Development Director or his/her designees, shall have the authority to determine whether the proposed use is permitted based on the finding that the use is similar to, and no more detrimental than, those permitted in the zone, Uses not listed, or otherwise determined by the Planning and Community Development Director or his/her designee to be permitted, are prohibited.

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B. Permit requirements.
a. Permitted uses subject to compliance with all applicable provisions of the Montebello Municipal Code, and in compliance with the Mixed-Use Development Standards pursuant to Chapter 17.22 are shown as “P” uses in the tables. Uses shown as “P” will be subject to ministerial review based on the objective design standards in Chapter 17.22 of the Montebello Municipal Code. b. Uses allowed subject to the approval of a Conditional Use Permit in compliance with Montebello Municipal Code Chapter 17.70, and shown as “CUP” uses in the table.
c. Not allowed in a particular zone and shown as a “——” in the tables.

Table 17.22.230: Permitted uses for Mixed-use projects
C-1 C-2
1 Commerce, Manufacturing, Processing
Artisan/craft manufacturing, commercial kitchen
printing and publishing P P
Research and Development P P
Warehouse and Distribution —— ——
Personal storage facility —— ——
Makers Space P P
2 Retail
Supermarket, home improvement center P P
Neighborhood market, pharmacy P P
Restaurants P P
Retail businesses P P
Retail Pop-Ups P P
Restaurant with dancing, live entertainment, craft
brewery and winery (including retail sales), nightclub CUP CUP Medical Marijuana cultivation, manufacturing, sales,
delivery, and distribution —— ——
3 Services
Personal Services: Personal Services, such as barber
and beauty shops, dry cleaning pick-up stores, home
electronics and small appliance repair, nail shops -
manicure, pedicure, and tailors
P P
Personal Services (restricted): Banquet
facility/catering, accessory massage (licensed,
therapeutic, and in conjunction with primary
businesses such as day spa, beauty salon, barber
shop or similar uses) and tanning salons

CUP CUP
Professional Services: Includes professional offices for banks, commercial art and design, counseling
services, scientific and research organizations, media
P P

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post production and news services, urgent care clinic,
and medical clinic (doctor, dentist)
4 Accessory Commercial Uses
Drive-through facility —— ——
Incidental entertainment P P
Outdoor cafe (Dining) P P
Outdoor display CUP CUP
Outdoor storage —— CUP
5 Automobile related
Vehicle Sales and associated vehicle service and parts —— CUP Vehicle parts, maintenance, or repair, detailing,
painting, service stations —— ——
Drive-through establishments including car wash —— ——
6 Utility, Transportation
Mobility hub P P
Parking facility (public or commercial) P P
Utility Facilities and Infrastructure —— CUP
Wireless telecommunication facility CUP CUP
7 Residential Uses
Dwelling, single-family attached —— ——
Dwelling, multi-family P P
Live/work Unit P P
Transitional housing P P
Emergency shelter —— ——
Lodging: Hotel, B&B inn CUP CUP
8 Accessory Residential Uses
Accessory dwelling unit P P
Home occupation P P
9 Recreation, Education, Public Assembly
Museums, art galleries, and libraries P P
Athletic club/gymnasium, religious facility, and
recreational centers CUP CUP
Open Space P P
Studios for arts, dance, music, martial arts P P
Health/fitness facility CUP CUP
Community garden P P
School, public P P
School, private (trade schools, colleges) CUP CUP
Theater, cinema, performing arts, outdoor community
events CUP CUP
Art lounges or theaters with alcohol sales CUP CUP
Recreation, entertainment uses CUP CUP
Bowling alleys, billiards parlors, indoor
racquetball/pickleball courts. CUP CUP
Farmers market, certified P P
10 Other Uses

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Alcohol sales (on-and off-sale outlets) CUP CUP
Vending machine (regular and reverse) P P
Secondhand stores —— ——
Day care center — child CUP CUP

17.22.240 Development Standards- Mixed-Use Zone
Development Standards- Table 17.22.240 contains development standards applicable to the C-1 and C-2 zones. The standards are intended to assist property owners and project designers in understanding the city’s minimum requirement and expectations for high quality development. The following applies to the requirements of Table 17.22.240.

A . Minimum and Maximum Density. The minimum and maximum density standards are appliable to developments that include residential uses.

B. Intended use. Intended use is established the primary focus for development maximizing the land use intent.

C. Accessory Structures. Include parking structures, trash enclosures and similar supporting structures.

Refer to Table 17.22.240, Mixed-Use Zone Development Standards, for specification not shown here.

Table 17.22.240: Development Standards for Mixed - Use Zone Development Standards C-1 C-2
Density
Minimum 20 du/ac 25 du/ac
Maximum 40 du/ac 60 du/ac
Floor Area Ratio
Minimum 0.3 FAR 0.3 FAR
Maximum 2.00 FAR 3.0 FAR
Intended use
Use Type
Neighborhood with
residential horizontal or
vertical
Commercial/ retail with
vertical residential
development or residential
horizontal or vertical

Minimum 50% of square
footage in mixed-use
development to be
residential
Minimum 50% of square
footage in mixed-use
development to be
residential
Maximum Height
Main structure 50 feet 60 feet
Accessory Structures 25 feet, excluding parking structures Setbacks

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Front Minimum: 10 feet
Maximum: 20 feet
Minimum: 0 feet
Maximum: 5 feet
If abutting residential refer to setback requirement
Exhibit 17.22.080
Side Facing Street Minimum: 0 feet
Maximum: 5 feet
Minimum: 0 feet
Maximum: 5 feet
Rear Minimum: 10 feet
Maximum: 20 feet
Minimum: 10 feet
Maximum: 20 feet
If abutting residential refer to setback requirement
Exhibit 17.22.080
Side Minimum: 0 feet
Maximum: 5 feet
Minimum: 0 feet
Maximum: 5 feet
If abutting residential refer to setback requirement
Exhibit 17.22.080
Accessory Structures Front: 10 feet
Side/ Rear: 5 feet
Front: 10 feet
Side/ Rear: 0 feet
Open Space
Open space types include:

Side yard, Courtyard, back
yard, Roof deck
Minimum Area: 15% of total lot area
Minimum dimensions: 20 ft by 20 ft
Parking
Stand- Alone uses Off street parking shall conform to Exhibit 17.52.050 Residential Mixed- Use
Residential: 1 space per unit
Office/ Retail: 1 space per 300 gross s.f. of building area Live / Work: 1 space per unit; 1 per every 400 gross s.f.

Restaurants, Cafes, or similar: 1 space per 200 gross s.f A parking reduction based upon low parking demand
may be allowed upon the approval of a Low Demand
parking Reduction Agreement by the City.

Landscaping
Setback areas 100% landscaped (except walkways and driveways) D. Building setback requirement. Buildings utilizing the mixed- use standards in the C- 1 or C-2 zoned parcels shall provide a transition for height. Tall elements of the building shall increasingly step back after the second floor adjacent to single-family zones. Every 3 feet over 25 feet, the setback shall increase by three feet.

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E. Building frontage. New buildings are to be located in close proximity to the street for an improved relationship to the street and pedestrians.

F. Residential and mixed- use projects that provide a minimum of 20% affordable units may be subject to an administrative review plan approval in accordance with the City’s approved objective design standards.

SECTION 4 . (CEQA)

Pursuant to the provisions of the California Environmental Quality Act (“CEQA”), the proposed ordinance to establish mixed-use development standards to ensure consistency with the goals and policies established by the Montebello 2040 General Plan does not have the potential to degrade the quality of the environment or have a significant effect on the environment. The proposed text amendment is consistent with the 2040 General Plan, for which a Final Environmental Impact Report (Final EIR) was approved by the City Council on April 10, 2024 (SCH No. 2023050665), in compliance with CEQA Guidelines. The Final EIR evaluated the environmental impacts of implementing the General Plan, Specific Plan, and related zoning updates, and includes adopted findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

SECTION 5. SEVERABILITY

If any action, subsection, line, sentence, clause, phrase, or word of this Ordinance is for any reason held to be invalid or unconstitutional, either facially or as applied, by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, and each and every individual section, subsection, line, sentence, clause, phrase, or word without regard to any such decision.

SECTION 6. EFFECTIVE DATE

This Ordinance shall become effective thirty (30) days after approval by the City Council.

SECTION 7. PUBLICATION

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

PASSED, APPROVED, AND ADOPTED 25TH DAY OF MARCH 2026.

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_______________________________
Georgina Tamayo, Mayor

ATTEST:

_______________________________
Christopher Jimenez, City Clerk

APPROVED AS TO FORM:

_______________________________
Arnold M. Alvarez-Glasman, City Attorney

I HEREBY CERTIFY that the foregoing Ordinance was introduced at the regular meeting of the City Council on the 25th day of February, 2026, and was adopted by the City Council of the City of Montebello at its meeting held on the 25th day of March, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Christopher Jimenez, City Clerk

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ATTACHMENT B

ORDINANCE NO. 2488

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA, ADDING CHAPTER 17.21 - OBJECTIVE DESIGN STANDARDS TO TITLE 17 OF THE MONTEBELLO MUNICIPAL CODE FOR MULTI-UNIT

RESIDENTIAL AND MIXED-USE DEVELOPMENTS

WHEREAS, the City of Montebello is a general law city organized and existing under the laws of the State of California; and

WHEREAS, Title 17 of the Montebello Municipal Code establishes zoning regulation to implement the City of Montebello General Plan; and

WHEREAS, the City of Montebello General Plan encourages compact, pedestrian oriented development that integrates residential, commercial, civic and employment uses; and

WHEREAS, the State of California has enacted housing laws, including but not limited to the Housing Accountability Act, the Housing Act of 2019, and other related statutes, which require local governments to apply objective design standards to certain residential and mixed- use projects; and

WHEREAS, State law defines “objective standards” as standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion; and

WHEREAS, the adoption of objective design standards will facilitate the timely production of housing, reduce uncertainty for applicants and the public, and ensure compliance with applicable State housing laws; and

WHEREAS, the City Council desires to provide clarity, predictability, and transparency in the development review process by establishing objective standards applicable to residential and mixed-use projects; and

WHEREAS, the City Council finds that the objective design standards set forth in this Ordinance are consistent with the City’s General Plan, promote high-quality architectural and site design, and protect the public health, safety, and welfare; and

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WHEREAS, The City Council has reviewed the Objective Design Standard Ordinance and finds that its adoption is in the best interest of the City of Montebello and its residents; and

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

SECTION 1. RECITALS. The above recitals are true and correct and made a part of this Ordinance.

SECTION 3. Chapter 17.21 of the Montebello Municipal Code is hereby established to read as follows:

Sections:

Chapter 17.21.010

17.21.010 PURPOSE
A. Purpose
The purpose of these objective standards is to provide the public, design professionals and decision makers with objective criteria for mixed use and multifamily residential development in the City. The standards aim to comply with requirements in the Housing Accountability Act, including SB 330. SB 330 defines objective design standards as “standards that involve no personal or subjective judgement by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.”
B. Applicability

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The objective design standards apply to new construction multifamily and mixed-use developments with more than 2 housing units. The standards shall apply to new additions to existing conforming and non-conforming multi-unit residential and mixed-use developments. These standards also apply to commercial components of mixed-use developments. For development standards in the mixed-use zone, please reference Chapter 17.22 of the Montebello municipal code. In addition to the objective design standards, projects must also comply with applicable development standards in the Montebello Municipal Code.

17.21.020 Applicability
A. These standards apply to all multi-unit residential and mixed-use development in the City with more than 2 housing units, unless the property is within a specific plan, overlay and planned unit development that already implements design standards, in which case those standards shall prevail. The standards shall apply to commercial components of mixed-used developments.

B. These standards shall apply to new additions to existing conforming and nonconforming multi-unit residential and mixed-use developments where new floor area is added.

C. All new developments, alterations and expansions of multi-family residential and mixed-used projects shall be processed under the applicable entitlements applications and shall be subject to the findings applicable in such entitlements.

17.21.030 General Standards
The following are general standards that shall be applicable to new multi-unit residential and mixed-use development:

A. Parking

a. Access to parking:

I. No new parking shall be placed between a building and a street, except where allowed adjacent to a side street in the residential zone.

II. Parking, including parking garages, shall be accessed from the alley to secondary frontage street when possible. The opening of a parking lot or garage on the frontage shall not exceed two lanes in width. b. Tandem parking:

I. Up to 30 percent of the total required off-street parking spaces may be provided in tandem configuration. The maximum number of spaces

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permitted in tandem configuration refers to the total individual spaces, not the total number of tandem spaces.

II. Tandem shall be a maximum of two parking spaces in depth.

III. Vehicle movement necessary to move cars parked in a tandem configuration shall not take place on any public street.

IV. Tandem spaces shall be assigned to the same dwelling unit. c. Loading spaces:

I. A minimum of one off-street loading space shall be provided for every mixed-use building over 3000 sq.ft. in gross area.
d. Landscaping:

I. Surface parking areas shall be planted with shade trees at a minimum ratio of one tree for every four spaces in an orchard planting arrangement.

II. Parking areas adjacent to a street or sidewalk shall be screened with landscaping and a decorative wall between 36 and 48 inches in height. e. Lighting:

I. Outdoor lighting fixtures shall be limited to a maximum height of 15 feet or the height of the nearest building, whichever is less.

II. Lighting shall be energy-efficient and shielded or recessed. Each light fixture shall be directed downward and away from adjoining properties and public rights-of-way.
f. Parking shall have pedestrian walkway access to the entrance of building. g. All end parking stalls shall be abutting landscape planters. h. Parking areas, covered and uncovered, shall be screened from public streets frontages. Screening examples include building placement, landscaping or fencing. Landscaping for screening shall not be less than three feet.

B. Open Space

a. All projects containing a residential component shall include a common open space, no smaller than 15% of the lot area, open from the ground to the sky.

This area shall be open to all residents of a development. The open space shall be located on the first floor, or podium level (on top of parking garage or commercial establishments). It should not be located in the required front setback.
b. Projects complying with the common open space requirement shall not be required to provide private open space for each individual unit. c. Residential projects that do not comply with the common open space requirements shall provide for each residential unit a private open space in the

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form of a balcony, door yard or yard. Private open space shall have a minimum area of 40 square feet with a minimum width of 5 feet.
d. Common open space shall include a combination of paved surfaces and landscaped areas.
e. Common open space shall be used to mitigate heat by incorporating trees, shade structures and gazebos.
f. Common spaces shall encourage gathering by including amenities like playgrounds, outdoor dining areas, and barbeques.
g. All ground floors shall be accessed directly from the sidewalk either directly to each unit or commercial space through an appropriate frontage element, lobby, or open space, such as a court.

C. Materials and colors

a. Glossy and reflective colors and materials are prohibited. b. Multi-unit development consisting of more than five buildings shall provide a minimum of two distinct color schemes, with a single-color scheme dedicated to not less than forty percent of all residential buildings. c. Multi-unit development with ten or more buildings shall provide a minimum of three-color schemes, each color scheme not to exceed thirty percent of all units.
d. Contrasting colors shall be used for trim, windows, doors, and key architectural elements.
e. Affordable units and market rate units within the same development shall be constructed of the same materials and details making the units non- distinguishable from one another.

D. Landscaping and Outdoor Lighting Standards

a. Proposed developments shall incorporate site amenities such as linear planting beds or seat walls, street furniture, enhanced paving surfaces, public art, lighting etc., where appropriate. The features should be architecturally comparable with the style, color, and material of the principal building on the lot and those in the immediate area.
b. Plant species should be selected based on their sustainability for an urban environment, cleanliness, and ability to survive in a healthy state despite constrained growing conditions. Ease of maintenance should be considered. c. The majority of plant materials shall consist of drought tolerant and/or native plants with minimum water requirements.

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d. The use of canopy trees for shading and cooling is encouraged where appropriate, particularly in publicly accessible open spaces and plazas, to mitigate the urban heat island effect. Where canopy trees are used, site design should provide sufficient sized tree pits or planting beds and appropriate planting mediums to provide for healthy tree growth.
e. Decorative water features shall re-circulate water and, where available, shall use recycled water.
f. Site lighting should be shielded by permanently attached light fixtures so that light sources are not visible from a public right-of-way and to prevent off-site glare.

E. Walls and Fences

a. The style of walls shall be the same or similar to the architectural style of the project.
b. Both sides of all perimeter walls and fences shall be architecturally treated, except for trash enclosures. The interior of trash enclosures shall be painted with high durability paint.
c. Perimeter and property line walls shall consist of decorative concrete masonry unit (CMU) with a stucco finish, brick, or stone veneer, slump stone, or split face with pre-cast concrete, block, stone or brick trim cap. Interior walls, fences, and gates shall consist of wrought iron, wood, plastic/wood composites, brick and stone materials. Unfinished concrete mansard unit (CMU), chain link fences, barbed wire, razor wire, electric wire, and similar types are prohibited under all conditions.
d. The maximum height of walls and fences shall be 6 feet.

F. Utilities, mechanical equipment and trash enclosures

a. All utility equipment shall be located outside of any pedestrian path-of-travel walkway. All utility equipment shall be placed adjacent to alleyways, within parking areas, rear or side yard, or building “notch-outs” and screened from public view.
b. If ground mounted mechanical equipment cannot be placed at the rear side of a building away from the street frontage, it shall either be placed on the ground and screened with landscape or placed on the roof and screened with architectural materials such as roof or parapet consistent with the overall architectural style.

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c. All electrical equipment, electrical meters, and junction boxes shall be placed within a utility room. If the utility room is not reasonable, then all equipment has to be designed as an integral part of the building development. d. Trees and shrubs shall be placed a minimum of five feet away from the water meter, gas meter, or sewer laterals. Ten feet away from utility poles and minimum three feet away from fire hydrants.
e. Trash enclosures: Trash, recycling, organic waste, and green bins and dumpsters shall be housed in a covered refuse closure with a gate that screens trash.
f. Trash enclosures shall be finished with the same primary wall material and color as the nearest building within the development.
g. Trash enclosures shall have both a vehicular access gate with concrete apron, and a pedestrian entrance. Gates shall be opaque in color. h. Trash enclosures shall include interior dusk to dawn lighting for safety and security.

G. Entries

a. The main entrance, or entrances, shall be emphasized and oriented to the street or major plazas or open space. Secondary entries may be from parking areas, the rear of buildings or interior open spaces.
b. Building entrances shall connect to public streets, parking areas, and publicly accessible open spaces using pedestrian pathways or sidewalks. For larger sites with multiple buildings, building entrances shall be oriented to face internal open spaces, paseos and recreation amenities.
c. When residential and commercial uses are combined in the same structure, separate entrances shall be provided for each use.

H. Architectural style and Character

a. Buildings shall incorporate architectural elements of Mediterranean, Spanish Revival, Contemporary, or other style approved by the Planning and Community Development Director or his/her designee.
b. Architectural styles shall be applied consistently on all building elevations.

I. Building Massing and Articulation

a. Buildings of three stories in height or more shall be designed to differentiate a building’s base from the rest of the structure. These two areas shall correspond,

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for example, retail or lobbies. For buildings that are single use, the first floor shall be differentiated.
b. Differentiation shall be archived through color, texture/material change, variations in projections, or decorative details such as columns or arcades. c. Stairways shall be designed as a part of the overall architecture of the building, complementing the buildings’ mass and form. Exterior stairwells shall be solid, prefabricated metal stairs are prohibited.

J. Frontage Types
a. Front yard
I. Front yards may be visually continuous with adjacent yards with a common landscape, or enclosed by a low fence, wall or hedge. On sloping sites, front yards may be raised above the level of the adjacent sidewalk and supported by a low retaining wall at a property line with steps providing access between the sidewalk and the yard. Porches, stoops balconies, and bay windows may encroach into front yards.

II. Front yards and continuous planters between the curb and sidewalk along the primary and side streets shall be landscaped.

III. Paved areas shall be limited to walks and driveways.

IV. Fencing defining the front yard shall not exceed four feet as measured from the adjacent sidewalk.
b. Porch
I. Porches may be provided on buildings that are set back from the primary/ side street property lines and may encroach into the front yard and side street yard.

II. Porches may be enclosed with insect screens if recessed from the exterior wall plane and if visibility is maintained from the sidewalk.

III. Porches shall be designed according to the following requirements:

Dimensions Minimum Maximum
Depth (clear) 6 ft. -
Width (clear) 12 ft. -
Height: ceiling (clear) 8 ft. 12 ft.

Height: floor above
ground
12 in. 3 ft.

Height: fence or
hedge
- 3 ft.
c. Door yard

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I. A dooryard is an elevated or at grade garden or terrace that is located in the front yard setback and enclosed by a low wall near or at the property line.

II. For elevated dooryards, access shall be from stairs or ramp.

III. Walls or fences shall be consistent with the architectural style of the building in their design, material and finishes.

IV. Dooryards shall be designed according to the following dimensional requirements:

Dimensions Minimum Maximum
Depth (clear) 7 ft. -
Height above grade 0 ft. 3 ft.

Fence or railing may
extend to height
required by building
code.
- -

d. Stoop
I. A stoop shall be a stair or landing leading directly from the sidewalk to the building entrance. Stoops shall be the frontage types for ground floor housing that is near the street.

II. The exterior stairs may be perpendicular or parallel to the adjacent sidewalk. The landing may be covered or uncovered. Landscaping shall be placed on the side of the stoop.

III. Stoops shall be designed according to the following dimensional requirements:

Dimensions Minimum Maximum
Depth: Landing (clear) 4 ft. 10 ft.

Width (clear) 4 ft. 10 ft.

Height: floor above
grade
12 in. 3 ft.

Height: Fence or
hedge
- 3 ft.

e. Shopfront
I. Storefronts are large openings in a building façade that are enclosed with large transparent windows and doors that provide direct at grade

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access to ground floor commercial and retail uses. The architectural elements of shopfronts include large windows, doors with glass, transom windows, and a solid base.

II. Optional elements include awnings, canopies, signage, lighting and cornices.

III. Storefront glass shall be clear without reflective coating or dark tinting.

Lightly tinted glazed less than 15%, low emissivity, is acceptable.

IV. Shopfronts shall be designed according to the following dimensional requirements:

Dimensions Minimum Maximum
Height (clear) 10 ft. 16 ft.

Distance to bottom of
awning
8 ft. 10 ft.

Width of storefront
bays
10 ft. 15 ft.

Glass area % of
ground floor wall
70 90

f. Gallery
I. Galleries are facades with ground floor colonnades that support a cantilevered shed roof or deck that covers the sidewalk. Galleries contain ground floor storefronts, making them ideal for retail use. Railing on top of the gallery is only required if the gallery roof is accessible as a deck.

II. Along primary frontages, the gallery columns shall correspond to Shopfront openings. Galleries shall be a minimum if two bays wide.

III. Galleries shall be designed according to the following dimensional requirements.

Dimensions Minimum Maximum
Depth (clear) 10 ft. 16 ft.

Width (clear) 20 ft. 80 ft.

Width: single bay
(clear)
10 ft. 16 ft.

Height (clear) 12 ft. 16 ft.

Distance from face of
curb (clear)
2 ft. -

g. Arcade

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I. Arcades are facades with a ground floor colon made that supports the upper stories of the building, or for one-story buildings, the roof. Arcades contain ground-floor shopfronts, making it ideal for retail or restaurant use.

II. Along primary frontages, the Arcade shall correspond to shopfront openings. Arcades shall be a minimum of two bays wide.

III. Arcades shall be designed according to the following dimensions:

Dimensions Minimum Maximum
Depth (clear) 10 ft. 16 ft.

Width (clear) 20 ft. 80 ft.

Width: single bay
(clear)
10 ft. 16 ft.

Height (clear) 12 ft. 16 ft.

Distance from face of
the curb (clear)
2 ft. -

h. Balcony
I. A balcony is a platform enclosed by a wall on the outside of a building, with access from an upper-floor door.

II. Balcony design character, palettes of material, and approach to detailing shall be consistent and compatible with the building’s style.

III. Balconies of traditionally styled buildings shall have visible supports in the front of projecting beams or braces. Balcony railings on traditional buildings shall be made of wood, wrought iron, steel bar, or tube faithfully simulating true wrought iron.

IV. Balconies on modern styles buildings may simply project. Modern buildings may also use galvanized or painted steel, aluminum, and cable railing components. Vinyl substitutes shall be avoided. i. Bay window
I. A large window or series of windows projecting from the outer wall of a building and forming a recess within.

II. Bay windows shall be a maximum of ten feet wide and shall have a height that is equal to or greater than their width.

III. Bay windows shall be placed a minimum of two feet from any building corner and a minimum of three feet from any other window bay.

IV. Bay windows shall consist of at least 75% transparent fenestration.

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j. Awning
I. A cloth cover fastened to a building or structure and supported by a frame that is used to protect pedestrians from the sun or rain.

II. Awnings shall be a of simple shed form, made of code-compliant-fire- resistant canvas or materials of similar appearance. Materials that are shiny stiff and synthetic shall be avoided.

III. Each awning shall correspond to a storefront.

IV. Upper floor awnings may be provided. Each individual awning shall cover no more than one shopfront or window opening. Signage is not allowed on upper floor awnings.

V. Awnings shall be positioned so that signage is not obstructed.

VI. Awning colors and patterns shall be coordinated with the overall design of the building. As appropriate awnings colors may vary between adjacent buildings.

VII. Internally illuminated and backlit awnings and any associated light diffusers are prohibited.

k. Canopy
I. A flat, metal awning that extends perpendicularly from the building and parallel to the sidewalk. The canopy’s frame is connected to the wall and spanned by a variety of materials, including metal lattice, and metal slats.

II. Canopies shall be of a simple form, made of metal and/or glass III. Canopies shall be supported either from the below by metal brackets, or from above by rods, wires, or chains that affix to the wall.

IV. Canopies may extend across multiple storefronts.

V. Canopies shall be positioned so that signage is not obstructed.

VI. Canopies shall be coordinated with the overall design of the building, all canopies on a single building shall be consistent in their design, color and material.

K. Parklet

a. A parklet size shall include one or more street parking spaces. b. Parklets must be located at least one parking space away from an intersection or street corner.
c. Parklets are allowed on streets with a speed limit of 25 mph or less.

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d. Parklets must include a platform/deck that flushes with the sidewalk, unless the parklet is designed to be terraced. Parklets must end on sidewalks, and any furniture, heaters, and landscape may not spill into sidewalks. e. Stable and sturdy traffic barriers must be installed on all three sides open to roadway traffic. The barrier must have a minimum height of 36 inches and maximum height of 42 inches.
f. To allow for water flow, Parklets must provide a drainage channel that is a minimum of 3 inches tall and 2 feet wide, along the entire length of the parklet, adjacent to the curb.
g. Parklet design and construction will be subject to Public Works approval. The design must be flexible to allow for any roadway or utility maintenance. Public Works and Planning and Community Development have the right to close a parklet from use to perform maintenance work on adjacent infrastructure.

L. Pocket Park

a. The maximum size of a pocket park shall be 0.25 acres. b. Pocket parks shall prioritize the needs of surrounding neighborhoods. This may include adding seating, play or fitness equipment, open lawn space, dog run, community gardens, ecological/educational displays, and community bulletin boards.
c. Pocket parks may be designed to serve as stormwater retention and infiltration areas.

M. Solid Waste Standards
a. Location, access and design criteria: the location of all solid waste collection and/ or storage spaces shall meet the following criteria:

I. To the extent possible, collection/storage location shall be accessed from an alley. Where an alley is not present, collection/storage locations may be accessed from the street. Collection/ storage locations from corner lots shall be accessed from the side street.

II. The collection/ storage spaces shall be located to minimize visual noise, and odor impacts to adjacent building occupants both on the subject lot and an adjacent lot.

III. Outdoor trash enclosures or collection rooms with a structure shall not be located on the street-facing façade of the structure. Outdoor trash enclosures shall not be located between the building’s face and the street.

IV. The design of outdoor trash enclosures and exterior facing elements of collection/ storage area attached to, or within a building/ structure, shall

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complement the architectural features of the building or development they serve. The incorporation of landscaping around trash enclosure is encouraged as a part of a successful design. All outdoor trash enclosures shall include a solid roof to minimize or prevent spill or trash contaminants from entering the stormwater system.

V. The property owner or manager shall maintain both the interior spaces and surrounding exterior areas and keep them clean and free of graffiti, trash, residue, debris and leaks.

b. GHG Emissions Reductions Standards
i. Gas or propane shall not be allowed in residential development. ii. All residential development will provide outdoor electrical outlets to accommodate the use of electric landscape equipment.
iii. New development shall install at least one electric vehicle charging station on the specific project site, or through coordination with the City in other public parking areas within the City.

SECTION 4. ENFORCEMENT AND PENALTIES

1. The City shall enforce the provisions of this ordinance through its Planning and Community Development Department and Building and Safety Division.

Unauthorized development that causes significant harm to protected views may be subject to fines, penalties, or removal of the offending structures or obstructions.

2. The City may also issue notices of violation to property owners who fail to comply with view protection requirements.

3. The City shall provide a right to action for property owners who suffer losses (e.g., reduced property value) to either demand for the removal of the obstruction or monetary damages.

SECTION 5 . CEQA.

Pursuant to the provisions of the California Environmental Quality Act (“CEQA”), the proposed ordinance to adopt objective design standards to ensure consistency with the goals and policies established by the Montebello 2040 General Plan does not have the potential to degrade the quality of the environment or have a significant effect on the environment. The proposed text amendment is consistent with the 2040 General Plan, for which a Final Environmental Impact Report (Final EIR) was approved by the City Council on April 10, 2024 (SCH No.

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2023050665), in compliance with CEQA Guidelines. The Final EIR evaluated the environmental impacts of implementing the General Plan, Specific Plan, and related zoning updates, and includes adopted findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

SECTION 6. SEVERABILITY

SECTION 7. EFFECTIVE DATE

This Ordinance shall become effective thirty (30) days after approval by the City Council.

SECTION 8. PUBLICATION

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

PASSED, APPROVED, AND ADOPTED 25TH DAY OF MARCH 2026.

_______________________________
Georgina Tamayo, Mayor

ATTEST:

_______________________________
Christopher Jimenez, City Clerk

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APPROVED AS TO FORM:

_______________________________
Arnold M. Alvarez-Glasman, City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Christopher Jimenez, City Clerk

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ATTACHMENT C

ORDINANCE NO. 2489

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA, AMENDING CHAPTER 17.74 OF THE MONTEBELLO

MUNICIPAL CODE TO UPDATE THE SITE PLAN REVIEW STANDARDS

WHEREAS, the City of Montebello (“City”) is a general law city, incorporated under the laws of the State of California, with the power to make and enforce within its jurisdictional limits all local, police, sanitary, land use, and other ordinances and regulations not in conflict with general laws of the state; and

WHEREAS, the City currently regulates the Site Plan Review Standards under Chapter

17.74 of the Montebello Municipal Code (“MMC”). The primary objective of Chapter 17.74 - Site Plan Review (“SPR”) is to minimize or preclude potential adverse impacts to the public interest or on abutting properties and adjacent residential, commercial and industrial neighborhoods, resulting from the design or layout of a proposed development; and

WHEREAS, the City Council desires to amend Chapter 17.74 of the MMC in an effort to better align the level of regulatory review with the scale, complexity, and potential impacts of development, as well as to support and encourage the development of affordable housing; and

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY ORDAINS AS FOLLOWS:

SECTION 1. RECITALS. The above recitals are true and correct and hereby incorporated into this Ordinance.

SECTION 2. AMENDMENT. Chapter 17.74 of the Montebello Municipal Code is hereby amended to read as follows (new language is underlined, while removed language is stricken):

Chapter 17.74 SITE PLAN REVIEW

17.74.010 Purpose.

The purpose of the site plan review is to minimize or preclude potential adverse impacts to the public interest or on abutting properties and adjacent residential, commercial and industrial neighborhoods, resulting from the design or layout of a proposed development.

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17.74.020 Authority to approve development plan.

The planning commission shall have the authority, subject to the procedure and limitations set forth herein, to review and approve, approve with conditions or deny approval of a development plan through a site plan review process.

17.74.030 When required.

A. A site plan review is required for all residential projects resulting in three ten or more dwelling units and for all commercial and industrial projects involving the construction of five thousand 25,000 square feet or more of building area. A separate site plan review is not required for projects which require the approval of a conditional use permit.

B. Exceptions: Ministerial review of qualifying residential projects. Applications for residential or mixed-use projects with at least 20 percent of the residential units reserved for lower income households, may be exempt from discretionary review processes, as long as such plans do not require any zoning change, variance, or General Plan amendment.

17.74.040 Application—Form—Fee.

Submittal of corrected construction plans for a building permit plan check shall be considered an application for a site plan review. The application shall be accompanied by a filing fee in an amount established by resolution of the city council.

17.74.050 Application—Accompanying maps and data.

A. An application for a site plan review shall include construction plans and a plot plan of the subject property showing proposed buildings, and any adjacent existing buildings or improvements as well as finished grade and floor elevations for a distance of at least twenty feet beyond the boundaries of the proposed development.

B. In addition, an application shall include a location map showing the subject property as well as the surrounding areas along with a list of names and addresses of all surrounding property owners as set forth in Chapter 17.78 of this code, and any other data as may be required by the director of planning to adequately present the application to the planning commission. This resubmittal shall be considered application for a site plan review by the planning commission.

17.74.060 Application—Hearing.

The director of planning shall set the request for a site plan review for a public hearing before the planning commission in the manner specified in Chapter 17.78 of this code.

17.74.070 Application—Required findings.

Before any site plan review shall be granted, all of the following findings must be made:

A. That the proposed design for improvement complies with all requirements of the Montebello Municipal Code;
B. That the proposed design for improvement is consistent with the general plan; C. That the proposed design for improvement will not have any significant adverse impact on the surrounding properties or on the general public welfare.

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17.74.080 Development plan—Conditions of approval.

The commission may approve a development plan subject to a site plan review with such conditions as the commission finds are warranted by the circumstances involved. These conditions may include the dedication and development of streets adjoining the property and other improvements. All such conditions shall be binding upon the applicants, their successors and assigns; shall run with the land; shall limit and control the issuance and validity of a building permit and certificate of occupancy; and shall restrict and limit the construction and location of all structures within the development.

17.74.090 Application—Determination.

Within twenty days after completion of the public hearing, the planning commission shall announce its findings on the request unless the review period is extended with the consent of the applicant. The commission may approve, conditionally approve or deny a development plan subject to the site plan review process based on the evidence submitted and its own study and knowledge of the circumstances.

17.74.100 Development plan—Notice of decision.

Not later than seven days following the planning commission's action in approving or denying a development plan subject to the site plan review process, a notice shall be mailed to the applicant at the address shown on the application plans and to any other person requesting a copy. Such notice will state the planning commission's decision and all conditions of approval, if any, pursuant to that decision.

17.74.110 Development plan—Modification.

Any condition imposed upon the approval of a development plan subject to a site plan review may be modified or eliminated, or new conditions may be added; provided, that the granting body shall first conduct a public hearing in the same manner as required for the granting of the original application. No such modification shall be made unless the commission or council finds that such modification is necessary to protect the public interest and/or adjacent or abutting properties; or, in case of deletion of an existing condition, that such action is necessary to permit reasonable development of the site.

17.74.120 Appeal and effective date.

The provisions of Chapter 17.78 of this code, regarding appeal of the commission's action and the effective date of approval, shall apply.

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17.74.130 Expiration of development plan approval.

The approval of a development plan to the site plan review process shall expire when the building permit application for the development expires, unless otherwise specified by the planning commission.

17.74.140 Development plan—Denial—Refiling.

Where a development plan subject to the site plan review process is denied by the planning commission, or by the city council upon appeal of the decision of the planning commission, the application may be refiled within one year of such decision only if the basis for the denial as contained in the minutes of the planning commission or city council action is addressed by a revised plan. Any application may be refiled in the same form after one year of the planning commission or city council decision.

SECTION 3. CEQA. Pursuant to the provisions of the California Environmental Quality Act (“CEQA”), the proposed ordinance amending the City’s site plan review standards in Chapter

17.74 of the MMC would not have the potential to degrade the environment quality or result in significant environmental impacts. The proposed text amendment is consistent with the goals and policies of the Montebello 2040 General Plan, for which a Final Environmental Impact Report (Final EIR) was approved by the City Council on April 10, 2024 (SCH No. 2023050665), in compliance with CEQA Guidelines. The Final EIR evaluated the environmental effects of implementing the General Plan, Specific Plan, and related zoning updates, and includes adopted findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

SECTION 4. SEVERABILITY. If any action, subsection, line, sentence, clause, phrase, or word of this Ordinance is for any reason held to be invalid or unconstitutional, either facially or as applied, by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, and each and every individual section, subsection, line, sentence, clause, phrase, or word without regard to any such decision.

SECTION 5. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days after approval by the City Council.

SECTION 6. PUBLICATION. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be published or posted according to law.

PASSED, APPROVED, AND ADOPTED 25TH DAY OF MARCH 2026.

_______________________________
Georgina Tamayo, Mayor

ATTEST:

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_______________________________
Christopher Jimenez, City Clerk

APPROVED AS TO FORM:

_______________________________
Arnold M. Alvarez-Glasman, City Attorney

I HEREBY CERTIFY that the foregoing Ordinance was introduced at the regular meeting of the City Council on the 25th day of February 2026, and was adopted by the City Council of the City of Montebello at its meeting held on the 25th day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

_______________________________
Christopher Jimenez, City Clerk

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ATTACHMENT D

ORDINANCE NO. 2490

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO,

CALIFORNIA, TO REZONE IDENTIFIED PROPERTIES TO ENSURE

CONSISTENCY WITH THE LAND USE DESIGNATIONS ESTABLISHED BY THE 2040 GENERAL PLAN AND THE OPPORTUNITY SITES IDENTIFIED IN THE CITY’S HOUSING ELEMENT

WHEREAS, the City of Montebello (“City”) is authorized under Article XI, Section 7 of the California Constitution and California Government Code Section 65800 et seq. to regulate the use of land through zoning regulations is a general law city organized and existing under the laws of the State of California; and

WHEREAS, The City Council of the City of Montebello adopted the 2040 General Plan by on April 10, 2024, following public hearings and environmental review pursuant to the California Environmental Quality Act (“CEQA”); and

WHEREAS, the City of Montebello 2040 General Plan establishes updated land use designations, policies, and development standards intended to guide long-term growth, promote housing opportunities, support economic development, and ensure orderly and compatible land use patterns throughout the City; and

WHEREAS, California Government Code Section 65860 requires that zoning regulations be consistent with the adopted General Plan; and

WHEREAS, the City’s existing zoning map and zoning classifications for certain parcels are no longer consistent with the land use designations adopted in the Montebello 2040 General Plan; and

WHEREAS, the Montebello 2040 General Plan includes land use designations that accommodate residential, mixed-use, industrial, commercial, and public uses at densities and intensities sufficient to support the City’s long-term housing, employment, and infrastructure needs; and

WHEREAS, the rezoning is consistent with the City’s adopted Housing Element, and implements the Opportunity Sites identified therein; and

WHEREAS, the City’s 2021-2029 Housing Element, certified the California Department of Housing and Community Development (“HCD”), relies in part on zoning consistency and

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rezonings to ensure adequate capacity to accommodate the City’s assigned Regional Housing Needs Allocation (“RHNA”); and

WHEREAS, the rezoning of certain parcels is necessary to implement the policies and programs of the Montebello 2040 General Plan, including but not limited to housing production, affirmatively furthering fair housing, neighborhood compatibility, and transit-supportive development; and

WHEREAS, the parcels proposed for rezoning are identified in Exhibit A of this Ordinance and are being rezoned to zoning designations consistent with the corresponding Land Use Designation identified in the 2040 General Plan as well as the sites identified in the Housing Element; and

WHEREAS, The City Council finds that the rezoning of the parcels identified herein furthers the public interest, promotes the general welfare, and is consistent with the Montebello 2040 General Plan; and

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

SECTION 1. RECITALS. The above recitals are true and correct and made a part of the findings in support of this Ordinance.

SECTION 2. FINDINGS. The City Council hereby finds and determines that this Ordinance is consistent with the Montebello 2040 General Plan and serves to ensure consistency between the City’s zoning regulation and the 2040 General Plan Land Use Designations. The rezoning established by this Ordinance is consistent with the City’s adopted Housing Element and implements the Housing Overlay Opportunity Sites identified therein. The rezoning will implement goals and policies of the Montebello General Plan by providing opportunities for integrated residential, commercial, office, civic and compatible employment within the city while also promoting a pedestrian oriented environment, infill development, and revitalization within downtown, corridors, and neighborhoods.

SECTION 3. The proposed rezoning of certain properties to ensure consistency with the land use designations established by the Montebello 2040 General Plan and the opportunity sites identified in the City’s Housing Element is hereby established to read as follows:

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SECTION 4 . (CEQA.)

Pursuant to the provisions of the California Environmental Quality Act (“CEQA”), the proposed ordinance to rezone certain properties to ensure consistency with the land use designations established by the Montebello 2040 General Plan and the opportunity sites identified in the City’s Housing Element does not have the potential to degrade the quality of the environment or have a significant effect on the environment. The proposed rezoning amendment is consistent with the 2040 General Plan and Downtown Montebello Specific Plan, for which a Final Environmental Impact Report (Final EIR) was approved by the City Council on April 10, 2024 (SCH No. 2023050665), in compliance with CEQA Guidelines. The Final EIR evaluated the environmental impacts of implementing the General Plan, Specific Plan, and related zoning updates, and includes adopted findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

SECTION 5. SEVERABILITY

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SECTION 6. EFFECTIVE DATE

This Ordinance shall become effective thirty (30) days after approval by the City Council.

SECTION 7. PUBLICATION

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

PASSED, APPROVED, AND ADOPTED 25TH DAY OF MARCH 2026.

_______________________________
Georgina Tamayo, Mayor

ATTEST:

_______________________________
Christopher Jimenez, City Clerk

APPROVED AS TO FORM:

_______________________________
Arnold M. Alvarez-Glasman, City Attorney

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AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Christopher Jimenez, City Clerk

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ATTACHMENT E

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ATTACHMENT F

RESOLUTION NO. 26-30

A RESOLUTION OF THE CITY OF MONTEBELLO CITY COUNCIL
TERMINATING REQUEST FOR PROPOSALS NO. 23-4 FOR STRATEGIC

PLANNING SERVICES AND DIRECTING COMMUNITY ENGAGEMENT FOR FUTURE

ACTIONS

RECITALS

WHEREAS, the City of Montebello (“City”) issued Request for Proposals No. 23-4 (“RFP No. 23-4”) on December 23, 2022, to solicit proposals for strategic planning services for the Montebello Golf Course; and
WHEREAS, RFP No. 23-4 was publicly issued in accordance with applicable procurement procedures; and
WHEREAS, due to administrative and operational considerations, proposals submitted in response to RFP No. 23-4 were not reviewed by staff, evaluated, or scored for consideration by the City Council; and
WHEREAS, the City Council finds that it is in the best interest of the City to formally terminate RFP No. 23-4 and discontinue any further consideration of proposals submitted thereunder; and
WHEREAS, termination of RFP No. 23-4 does not obligate the City to award a contract and preserves the City’s discretion to reissue a solicitation for similar services at a future date, if deemed appropriate; and
WHEREAS, all future Request for Proposal’s (“RFP’s”) pertaining to the 118-acre golf course property shall adhere to a comprehensive community engagement process, which shall include, but not be limited to, appropriate analyses, including traffic analysis. The community engagement process shall require a minimum of three (3) public outreach meetings, with written notification provided to all property owners and occupants within a 1,000-foot radius of the exterior boundaries of the 118-acre golf course property.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:

SECTION 1: The above Recitals are true and correct and are hereby incorporated by this reference.

SECTION 2: The City Council hereby terminates Request for Proposals No. 23-4 in its entirety and directs that no further action be taken with respect to proposals submitted in response to said solicitation.

SECTION 3: The City Manager, or designee, is authorized to take all actions necessary to implement this Resolution, including providing written notice to all respondents.

SECTION 4: The City expressly reserves the right, in its sole discretion, to issue a new request for proposals or other solicitation for similar services at a future date.

SECTION 5: This Resolution shall become effective immediately upon its adoption.

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RESOLUTION NO. 26-30

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APPROVED AND ADOPTED THIS 22ND DAY OF APRIL 2026.

_______________________________
Georgina Tamayo, 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. 26-30 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 22nd day of April 2026 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

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1 Recording requested by and when recorded mail to:

City of Montebello
Planning and Community Development Department
1600 W. Beverly Boulevard
Montebello, CA 90640
Attn: Director of Planning

ATTACHMENT G

SPACE ABOVE THIS LINE FOR RECORDER’S USE

COVENANT AND AGREEMENT
Armenian Genocide Martyrs Monument Protection Covenant

This Covenant and Agreement (“Covenant”) is made this _____ day of ________, 2026, by and between the City of Montebello, a municipal corporation (“City”), as both property owner and covenanting party.

This Covenant shall run with the land and be binding upon all successors and assignees, and shall remain in full force and effect unless and until released by the Director of Planning and Community Development in accordance with the following recitals and terms set forth herein:

A. The City of Montebello is the owner of certain real property located within the City of Montebello, County of Los Angeles, State of California, identified as Los Angeles County Assessor’s Parcel Number 5267- 009-006 (“Property”).

B. The Armenian Genocide Martyrs Monument (the “Armenian Martyrs Monument”) is located on the Property and serves as a site of significant cultural, historical, and commemorative importance.

C. In 2025, the Armenian Martyrs Monument was formally acknowledged by the State of California as a historic site.

D. The City desires to ensure the continued protection and preservation of the Armenian Martyrs Monument from any adverse impacts associated with future development occurring on adjacent properties.

E. The City is willing to impose restrictions and obligations to ensure that any development on adjacent parcels does not impair the integrity, setting, or significance of the Armenian Martyrs Monument, consistent with applicable federal, state, and local laws, including but not limited to historic preservation laws.

F. This Covenant is intended to run with the land and bind the City and the Property unless terminated in accordance with the provisions herein.

NOW, THEREFORE, the City hereby covenants and agrees as follows:

1. Property Subject to Covenant
This Covenant applies to the real property located in the City of Montebello, County of Los Angeles, State of California, identified as Assessor’s Parcel Number 5267-009-006, as more particularly described in Exhibit A attached hereto and incorporated herein by this reference.

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2 2. Preservation of the Armenian Martyrs Monument
The Armenian Martyrs Monument on the Property shall be preserved and maintained in its existing location.

The City, and any successor, transferee, or assignee, shall not:

A. Remove or demolish the Armenian Martyrs Monument;
B. Relocate the Armenian Martyrs Monument; or
C. Alter or disturb the Armenian Martyrs Monument in any manner that would materially impair its historical, cultural, or commemorative significance.

3. Protection from Adjacent Development
The City shall ensure that any discretionary approvals, permits, or entitlements issued by the City for development on parcels adjacent to the Property are conditioned, to the extent permitted by law, to:

A. Avoid direct or indirect impacts to the Armenian Martyrs Monument; B. Preserve the Armenian Martyrs Monument’s physical integrity, and accessibility; C. Maintain the visual setting of the Armenian Martyrs Monument in a manner that preserves its prominence, visibility, and contextual relationship to the surrounding area.

D. Prevent vibration, grading, construction, or other activities that could damage or diminish the Armenian Martyrs Monument; and
E. Comply with all applicable federal, state, and local laws relating to historic resources, including but not limited to the California Environmental Quality Act (“CEQA”).

4. Consistency with Historic Preservation Laws
A. All actions affecting the Property or adjacent development shall be consistent with applicable historic preservation standards and requirements, including those imposed by the State of California in recognizing the Armenian Martyrs Monument as a historic site.

5. Covenant Runs with the Land
A. This Covenant shall run with the land and shall be binding upon the City and its successors, heirs, assigns, lessees, and any other parties acquiring an interest in the Property.

6. Enforcement
A. This Covenant may be enforced by the City or any successor public entity with jurisdiction over the Property through any available legal or equitable remedies, including injunctive relief.

7. Severability
A. In any provision of this Covenant is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

8. Recordation
A. This Covenant shall be recorded in the Official Records of the County of Los Angeles and shall become effective upon recordation.

10. Exhibit
A. Exhibit A – Aerial Map and Legal Description of the Property

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3 IN WITNESS WHEREOF, the City of Montebello has executed this Covenant as of the date first written above.

CITY OF MONTEBELLO
a municipal corporation

By: ___________________________
Name: Raul Alvarez
Title: City Manager

ATTEST:

By: ___________________________
City Clerk

APPROVED AS TO FORM:

By: ___________________________
City Attorney

NOTARY ACKNOWLEDGMENT
(A notary acknowledgment in the form required by California law shall be attached.)

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4 EXHIBIT A

AERIAL MAP AND LEGAL DESCRIPTION OF PROPERTY

TR=10034 Portion of Lots 342 And 343, and all of Lots C, 344 THRU 360 (Los Angeles County Assessor’s Parcel No. APN 5267-009-906)

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1 Recording requested by and when recorded mail to:

City of Montebello
Planning and Community Development Department
1600 W. Beverly Boulevard
Montebello, CA 90640
Attn: Director of Planning

ATTACHMENT H

SPACE ABOVE THIS LINE FOR RECORDER’S USE

COVENANT AND AGREEMENT
Scout House Preservation Covenant
This Covenant and Agreement (“Covenant”) is made this _____ day of ________, 2026, by and between the City of Montebello, a municipal corporation (“City”), as both property owner and covenanting party.

A. The City of Montebello is the owner of certain real property located within the City of Montebello, County of Los Angeles, State of California, commonly known as the Montebello Golf Course, and identified as Los Angeles County Assessor’s Parcel Number 5267-010-908 (“Property”).

B. An existing structure commonly known as the “Montebello Scout House” (“Scout House”) is located on the Property and has been used by Montebello Scout Troop 330 for community and youth-serving purposes.

C. The City desires to ensure the continued preservation and protection of the Scout House from removal, demolition, or disturbance in connection with any future development of the Property.

D. The City is willing to impose restrictions on the Property for the benefit of the public and to ensure long- term preservation of the Scout House, subject to the terms and conditions set forth herein.

E. This Covenant is intended to run with the land and bind the City and the Property unless terminated in accordance with the provisions herein.

NOW, THEREFORE, the City hereby covenants and agrees as follows:

1. Property Subject to Covenant
This Covenant applies to the existing Montebello Scout House located on real property located in the City of Montebello, County of Los Angeles, State of California, identified as Assessor’s Parcel Number 5267-010- 908, as more particularly described in Exhibit A attached hereto and incorporated herein by this reference.

2. Preservation of Scout House
The Scout House located on the Property shall be preserved in its current location. The City, and any successor, transferee, or assignee, shall not:

A. Remove the Scout House;
B. Demolish the Scout House; or

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2 C. Disturb, alter, or relocate the Scout House in any manner that would materially impair its continued use and function unless otherwise permitted pursuant to this Covenant.

3. Restriction on Future Development
Any future development, construction, grading, or site modification occurring on the Property shall be designed and carried out in a manner that:

A. Avoids any direct or indirect impact to the Scout House; B. Maintains reasonable access to and use of the Scout House; and C. Ensures the continued structural integrity and usability of the Scout House.

D. No grading, excavation, or construction activity shall occur within a reasonable buffer area surrounding the Scout House, unless it can be demonstrated to the satisfaction of the City that such activity will not result in damage or disturbance.

4. Maintenance Obligation
A. The City shall maintain the Scout House in a safe and functional condition consistent with its current use. This includes routine repairs, structural upkeep, and compliance with applicable building and safety requirements.

7. Automatic Termination or Transfer of Covenant
Notwithstanding any other provision of this Covenant, this Covenant shall automatically terminate for the benefit of Montebello Scout Troop 330 and be of no further force or effect upon the occurrence of any of the following:

A. Montebello Scout Troop 330 is dissolved;
B. Montebello Scout Troop 330 is disbanded; or
C. Montebello Scout Troop 330 permanently relocates from the Scout House.

However, in the event of any of the foregoing, all rights, protections, and interests established under this Covenant shall remain in effect and shall automatically revert to the Montebello Lions Club, provided that the Montebello Lions Club remains an active organization within the City of Montebello, in good standing and continues to utilize or maintain the Scout House consistent with the purposes of this Covenant.

If the Montebello Lions Club is dissolved, disbanded, ceases operations, or otherwise fails to maintain or utilize the property consistent with the purposes of this Covenant, then this Covenant shall automatically terminate in its entirety.

Upon the occurrence of any such event, the City may record a notice of termination of this Covenant.

8. Severability
A. If any provision of this Covenant is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9. Recordation

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3 A. This Covenant shall be recorded in the Official Records of the County of Los Angeles and shall become effective upon recordation.

10. Exhibit
A. Exhibit A – Aerial Map and Legal Description of the Property

IN WITNESS WHEREOF, the City of Montebello has executed this Covenant as of the date first written above.

CITY OF MONTEBELLO
a municipal corporation

By: ___________________________
Name: Raul Alvarez
Title: City Manager

ATTEST:

By: ___________________________
City Clerk

APPROVED AS TO FORM:

By: ___________________________
City Attorney

NOTARY ACKNOWLEDGMENT
(A notary acknowledgment in the form required by California law shall be attached.)

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4 EXHIBIT A

AERIAL MAP AND LEGAL DESCRIPTION OF PROPERTY
TR=10034 Portion of Lot A and All of Lots 378, 379, 380, 381, 382, 383, and 384 890 Via San Clemente, Montebello, California 90640
(Portion of Los Angeles County Assessor’s Parcel No. 5267-010-908)

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ATTACHMENT I

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CITY OF MONTEBELLO

PLANNING & COMMUNITY DEVELOPMENT

MONTEBELLO
November 5, 2025
VIA EMAIL AND U.S. MAIL
Melinda Coy, Housing Accountability Unit Chief
California Department of Housing and Community Development 2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
JOSEPH PALOMBI, Director
RE: Response to Corrective Action Letter - City of Montebello Housing Element Implementation (Programs 6 and 11)
Dear Ms. Coy:

This communication is intended to respond to the California Department of Housing and Community Development's (HCD) Corrective Action Letter dated October 17, 2025, regarding implementation of Housing Element Programs 6 (Adequate Sites to Accommodate the RHNA) and 11 (Objective Design Standards, Approvals By-Right, and Administrative Approvals).

The City of Montebello (City) acknowledges that the statutory deadline of February 12, 2025, for completing the rezoning actions outlined in these programs has not yet been fully met. However, significant progress has been made, and the work is actively underway. The delay in achieving full compliance is primarily due to the sequencing of major long-range planning efforts, as well as staffing and workload constraints.

Specifically, the City's Housing Element was approved by HCD in July 2022, separate and independent from the Comprehensive General Plan Update, which had not been revised in over 50 years and was subsequently adopted in April 2024 in conjunction with the Downtown Montebello Specific Plan. The City advanced its Housing Element early to maintain compliance with State Housing Law and eligibility for funding programs, while simultaneously dedicating extensive resources to the comprehensive General Plan update and accompanying Downtown Montebello Specific Plan. This sequencing was intentional to ensure that rezoning actions required under Programs 6 and 11 would be fully aligned with the new long-term policy framework considering that any potential inconsistencies between the City's Housing Element, the Downtown Montebello Specific Plan, and the comprehensive General Plan update could create confusion and have unintended consequences that might discourage housing development in the City.
1600 W Be\•erly Blvd, rvo:-'.ebello. Ci\ 90640 • (323) 827- �00 MontebelloCA.gov

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ITEM # 6

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Raul Alvarez, City Manager

BY: Michael Solorza, Director of Finance

SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2024-25 ANNUAL

COMPREHENSIVE FINANCIAL REPORT (ACFR)

DATE: April 22, 2026

RECOMMENDATIONS:

It is recommended that the City Council:

1. Receive and file the Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR); and,

2. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The action of receiving and filing the ACFR for the period ending June 30, 2025 does not have a fiscal impact.

BACKGROUND/DISCUSSION:

Each year the City produces an Annual Comprehensive Financial Report (ACFR) that presents audited financial results as of June 30 of the prior fiscal year. Staff is presenting the ACFR for the fiscal year ended June 30, 2025 (prior fiscal year). The City engages a third-party audit firm (PUN Group) to review all financial transactions, produce various statements, ensure compliance with Governmental Accounting Standards Board (GASB) statements, assist staff in compiling the ACFR document, review sample transactions and internal controls and provide an opinion on the accuracy and validity of the financial statements.

The ACFR is a document that tells “what happened” in the prior fiscal year, as opposed to a budget which is a plan for the upcoming fiscal year. There are statements, notes

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and financial schedules of required information that provide the reader a comprehensive view of revenues, expenses, assets, liabilities, cash and investments, debt, pension liabilities, and other financial data across the entire organization. There are also statistical tables which present a more complete (non-financial) picture of Montebello.

The Transmittal Letter (Attachment A) and Management Discussion and Analysis (MD&A) (Attachment B) provide extensive detail and discussion of the financial statements and are included in the final published ACFR document – which is available in its entirety on the City’s website. The extensive Notes section of the ACFR is also useful in providing a more complete explanation of the various financial aspects of the City, adding descriptions and explanations to the myriad schedules and tables.

This agenda report provides a summary of the document and does not replace a thorough review and understanding of the entire ACFR.

ENVIRONMENTAL:

N/A

ANALYSIS:

The ACFR presents information by type of fund, with the two most significant groupings of funds being Governmental Activities and Business-type Activities. Governmental Activities includes the General Fund as well as special funds: Gas Tax, Proposition A, Proposition C, Retirement Fund, and the various (non-Transit) Grant and Special Revenue Funds. Business-type Activities includes Transit, Golf Course, Hilton Garden Inn and Home2Suites.

Included in the financial statements for both Governmental and Business-type funds are not only revenue and expenditures, but liabilities related to bond debt, pension and retiree medical liabilities, assets such as land, buildings and equipment, and other useful information designed to give the reader a clear picture of the City’s overall financial condition. The following pages provide an overview of major items found in the complete ACFR document (which can be found on the City’s website).

Government-wide Overview
The government-wide financial statements provide both long-term and short-term information about the City's overall financial position. The statement of net position includes all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. The City’s net position is a useful measurement of its financial health. Net position can be tracked over time to assess whether the City’s financial health is improving or deteriorating.

The following are entity-wide financial highlights, covering both Governmental and Business-type activities:

• On June 30, 2025, the City’s total net position was approximately $54.728 million dollars, an increase of $4.839 million compared to the $49.890 million total net position

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as of June 30, 2024. The City’s unrestricted net position, at a negative $163.700 million, increased by $13.195 million dollars versus the prior fiscal year.

• Total revenues from all sources were $186.461 million while total expenses were $183.769 million (both excluding transfers). Of the total revenues, program revenues totaled $126.676 million while general revenues totaled $59.785 million, excluding transfers.

• The City’s General Fund operating expenses (including Capital Outlay and Debt Service) exceeded operating revenue by $12.333 million in Fiscal Year 2024-25. The General Fund fund balance totaled $24.499 million, reflecting a net decrease of $7.258 million (including the net impact of other financing sources and uses such as transfers and proceeds from the issuance of debt).

• The fund balance of the General Fund was large enough to allow for partial implementation of the City Council approved reserve policies, funding the Economic Uncertainties Commitment ($16.000 million).

• General Fund total revenues, including transfers in and proceeds from issuance of debt as of June 30, 2025 was $81.464 million. Excluding non-operating transfers in, General Fund operating revenue was $76.389 million.

• The General Fund operating expenditures as of June 30, 2025 were $88.722 million.

• The Transit enterprise fund ended Fiscal Year 2024-25 with a total net position of $55.787 million, a slight decrease of $.631 million from the prior fiscal year.

• The City’s Hilton Garden Inn ended the fiscal year with a net position of $1.546 million, an improvement of $0.179 million from FY 2024-25. The operating income (revenues exceeding expenses, surplus) was $0.279 million as of June 30, 2025.

• The Home2Suites ended the fiscal year with a net position of negative $2.037 million, a decrease of $2.433 million versus FY 2023-24. The operating income (revenues exceeding expenses, surplus) was $1.335 million as of June 30, 2025.

These Financial Highlights, as well as other points, are discussed in greater detail in the body of this discussion and analysis, as well as the Notes to the Financial Statements which can be found in the ACFR on the City's website. The following pages provide greater, in-depth detail on Government-wide financials, as well as Governmental and Business-type activities.

Business-Type Activities
The City operates the following business-type activities: Transit System (i.e., Montebello Bus Lines), Golf Course, Hilton Garden Inn and Home2Suites. The City’s Transit System is the largest business-type operation (as defined by operating expenses), followed by Home2Suites, the Hilton Garden Inn and the Golf Course. Business-type activities decreased the City’s net position after transfers by $3.393 million, primarily a result of

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expenses exceeding revenue (excluding transfers) by $2.575 million ($66.912 million vs. $64.337 million).

Total revenues for business-type activities were $64.337 million, compared to $67.916 million in the previous fiscal year, constituting a 5.56% decrease ($3.578 million). The overall change is due to a $3.458 million decrease in Capital Grants and Contributions and a $2.197 million decrease in Operating Grants and Contributions, partially offset by an increase of $1.894 million in Charges for Services.

Approximately 38.03% of revenue came from Charges for Services, which was generated from bus fares, special contracts, and revenue from hotel room fees, while the remaining

61.97% comes from State and Federal subsidies in the form primarily of Transit related grants and related revenue from Federal, State and local (i.e., Los Angeles County Metropolitan Transportation Authority) agencies.

Business-type Activities expenses increased $4.082 million (6.10%) in FY 2024-25 when compared to the prior fiscal year ( $66.912million versus $62.830 million).

• The Transit System reported operating revenues of $40.544 million, a $0.779 million decrease (1.92%) when compared to FY 2023-24. There was a decrease in Federal and State transit assistance ($1.148 million) and a total net decrease in Local Return Funds ($1.050 million) funding (i.e., Propositions A and C and Measures M and R). Operating expenses in FY 2024-25 were $38.870 million, a $0.225 million increase from the prior fiscal year. The majority of this increase ($2.815 million) was in Salaries and Benefits. Net position decreased slightly by $0.574 million, to $55.788 million.

• The Hilton Garden Inn reflected operating net income of $0.279 million, slightly less than the $0.812 million surplus in FY 2023-24. The net income (surplus) is attributable to the recovering economy and the return of leisure and business travelers, leading to a direct increase in total occupancy. Operating revenues were very little changed year over year at $6.685 million (vs. $6.546 million in FY 2023-24), and operating expenses were up slightly ($0.672 million to $6.406 million. Total change in net position was a positive $0.179 million, contributing to ab ending net position of $1.547 million as of June 30, 2025.

• The Montebello Home2Suites reflected operating net income of $1.335 million. Operating revenue was $13.417 million, an increase of $0.716 million vs. the prior fiscal year. As the economy recovers from the pandemic, a return to leisure and business travel has positively impacted the hotel’s operations. Operating expenses of $12.083 million increased $2.793 million vs. FY 2023-24. Total net position decreased by $2.433 million, when taking into account a transfer out of $2.157 million.

• The City’s Golf Course was closed for renovation from September 2022 through April 2024. The complete re-imagining of the Golf Course resulted in a new layout with two courses: a 9-hole and 6-hole (lighted) course. For FY 2024–25, the first full year of operations after the renovations, the net operating loss was $2.555 million. This was primarily due from final contractual expenses (net amount of $3.109 million) related to construction of the clubhouse, which was completed in October 2024.

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Governmental Activities
Governmental Activities include the General Fund, as well as myriad special funds that record activity related to road repair and maintenance (Gas Tax, SB1/RMRA, Proposition C, Measure M, etc.); assistance to low- and moderate-income households (CDBG, HOME), retirement expenses (Retirement Fund), debt service, public safety (Asset Forfeiture), and numerous public works, public safety and related grants.

• General Fund operating revenues (i.e., taxes, charges for services, licenses and permits, etc.) increased by $2.033 million (2.73%) from the prior year, which is primarily due to the overall increase in sales tax ($0.721 million), property tax ($0.134 million), Licenses and Permits ($2.181 million) and Charges for Services ($2.110 million), net of a decrease of $3.814 million in Intergovernmental revenue.

• The increase to Property Tax reflects continued improvement in overall assessed value in the City, as well as additions to total assessed value with completed residential construction in Metro Heights and other smaller developments within the City. The Metro Heights development is also partially responsible for increases to License and Permits and Charges for Services revenue (totaling $4.291 million) due to building permits and plan check fee revenue from this residential housing project.

• Other Revenue increased $1.079 million from one-time insurance reimbursement payments related to water damage at the Police Headquarters ($0.301 million), reimbursement from FEMA for a Federal Disaster Declaration from winter storms in 2022 ($0.116 million), and continued reimbursement from the National Opioid Settlement.

• General Fund expenditures increased year-over-year by $7.214 (8.85%). The largest year-over-year changes in operating expenses were Public Safety (increased by $5.896 million), General Government (decrease of $4.313 million), Capital Outlay (increase of $2.554 million) and Housing and Community Development (increase of $2.344 million).

• The majority of Capital Outlay expenses are related to the citywide solar project – $3.112 million of the $5.510 million total. While these expenses are tracked in a separate fund, the ACFR presents these as part of the Genera Fund for reporting purposes only.

• Expenses related to salaries, benefits (including special pays) and overtime in Police and Fire contributed to the year-over-year increase: $2.037 million in the Police Patrol Division and $1.649 million in the Fire Suppression Division.

• The increase in Housing and Community Development is primarily from the movement of Building Services from Public Works when comparing FY 2024-25 to FY 2023-24 ($2.212 million).

• The year-over-year decrease in General Government is from a drop in settlement- related expenses of $1.902 million and an increase of $2.161 million in administrative overhead charged as part of the City’s cost allocation plan –recorded as a credit to expenses for financial reporting purposes vs. recorded as revenue for budget presentation.

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• Non-operating transfers in (i.e., revenue) related to reimbursement from the Retirement Fund increased $0.863 million in FY 2024-25, with a one-time transfer in of $.100 million from the George Miller fund to reimburse for Fire Department related training expenses.

Credit Rating
As of the date of this ACFR, the City’s S&P issuer credit rating (ICR) improved from “A+” to “AA-”, with the underlying credit rating on the City’s outstanding lease revenue bonds improving to “A+” (from “A”), with a “stable” outlook. These latest ratings were updated when S&P Global Ratings conducted a scheduled credit rating review in October 2025.

The rating action reflects S&P Global Ratings view of the City’s strong General Fund performance over the past few years, driven by robust growth in both property tax and sales tax revenue, which is expected to continue. Operating surpluses during the past three years have also led to a recovery in available General Fund reserves, which are now in compliance with the City’s GASB 54 reserve policy. Additional details can be found in the October 1, 2025 S&P Global Ratings Report “Montebello, CA and Pension Obligation Bonds Upgraded to ‘AA-‘ on Strong Performance; Lease Revenue Bonds raised to ‘A+’. “

Economic and Organizational Impacts and Accomplishments The financial statements and commentary found in prior ACFR’s had been dominated by discussion of the impacts of the Coronavirus pandemic. For the results as of June 30, 2025, the economic and financial impacts of the pandemic have disappeared and there appears to be a return to “pre-pandemic” economic and financial activity – albeit tempered by continued lingering inflationary effects, which impact interest rates on home mortgages, vehicle financing, credit card debt, etc. In addition, immigration raids, tariffs, freezing of Federal funds for various activities, passage of a major tax bill, firings of hundreds of thousands of Federal employees, expiration of health insurance incentives, continued security strife in the Middle East, Ukraine, Venezuela and elsewhere, and overall chaos and uncertainty over much of the Federal Governments’ operations have impacted the economy – locally, regionally and nationally – and society at large.

Despite the litany of changes in the norms of Federal policy and operations – and the impacts these changes are having on communities – the local Montebello economy appears to be healthy, as evidenced by continued strong sales and transaction and use tax performance, as well as positive property tax revenue performance. Also, the City’s two hotels are performing well, seeing occupancy rates at or above levels last seen pre- pandemic (i.e., 2019).

For the second half of Fiscal Year 2024-25 the discussion surrounding the economy focused on tariffs, and the near-constant changes in amounts and to which countries and products the tariffs applied. The uncertainty which the blitz of tariff changes brought to the economy dominated talk about the impacts the ever-changing tariff policies will have on the average consumer – and what this could mean for the economy at large. Tariffs are a tax on the consumer, and while it appears many major businesses have not fully passed on the tariff impact to the consumer, the question lingers about how long that can

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last. At some point, businesses will be forced to pass along the increased costs associated with higher tariffs, which could result in even higher prices across a broad range of goods and services.

Because there is so much in the larger economy out of the City’s control, it is imperative that Montebello’s economic development activities promote projects that expand the City’s sales tax and property tax base. Looking ahead, there is much to be excited about in Montebello in these arenas, with several projects begun prior to FY 2024-25 that will contribute to the City’s long-term economic health and viability once completed in the near future. In 2026, the following businesses are expected to open operations in Montebello: Dutch Brothers Coffee, Round 1, Hobby Lobby, Yard House Brewery, and many more retail operations that will further strengthen the City’s sales tax base.

These bond proceeds have been used to completely reconstruct the existing golf course and build a new and modern clubhouse, creating a championship 9-hole course, a 6-hole “executive” course, and adding lights for the ability to play golf during evening hours.

Fiscal Year 2024-25 was the first full fiscal year of operations for the new Golf Course, and expenses related to the clubhouse construction are recorded in the Golf Course fund for this fiscal year. Staff are closely monitoring operations and adjusting green fees accordingly to match ongoing revenue with ongoing expenses.

Connected to the Golf Course Renovation Project is the Topgolf facility, constructed on 15 acres of the existing golf course property. Topgolf opened to the public in May, 2024. This project is funded with $55.4 million in lease revenue bonds issued in December 2022 (LRB Series 2022B). In a unique financing arrangement, the Public Financing Authority issued the bonds, with a sub-lease and guaranty tied to the issuance that requires Topgolf to pay the annual debt service (i.e., improvement rent). The completed Topgolf facility is a three-story entertainment and event center, featuring 102 hitting bays, a restaurant, meeting space and a pro shop. In addition to the commitment to pay annual debt service, Topgolf pays an annual lease for the use of City property ($1.150 million for the first five years, with increases every five years thereafter). In addition, the facility generates sales tax revenue, which helps boost overall General Fund revenue.

As noted in the preceding pages, the General Fund’s fund balance is $24.499 million as of June 30, 2025. The fiscal year ending June 30, 2025 again allowed for partial implementation of the reserve policies approved by the City Council in June 2020. One Commitment – Economic Uncertainties – has been reserved in fund balance ($16.000 million). The fund balance represents 32.07 % of General Fund operating revenue. Details on General Fund reserve classifications can be found in Note 13.

These are just a few highlights of the many projects underway in Montebello that are aimed at improving residents’ lives and helping to put the City on a long-term path to financial stability and sustainability. Some other projects that either began or were

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continued into FY 2024-25 are the following:

• Designation as a “Most Business Friendly City 2025” by the Los Angeles Economic Development Council
• Completion of a portion of the “Paving the Way” projects that improved residential street and road conditions
• Major repairs to the City’s aging sewer system, utilizing a portion of the City’s Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) allocation • Expansion of the Montebello Community Assistance Program (MCAP) aimed at helping the City’s unhoused population
• Update of the City’s General Plan, the first in over forty years, with adoption by the City Council in April, 2024
• Completion of a park and facilities needs assessment study and master plan • Completion of significant facility repair and upgrade projects, eliminating years of deferred maintenance on key City facilities
• Renovation of the City Park baseball field
• Creation of a Community Resource Center at Chet Holifield Park • Introduction of improved purchasing and procurement guidelines • Receiving the Government Finance Officers Association (GFOA) award for budget preparation for the sixth time in the history of the City • Approval to finance installation of solar panels at City facilities

Management and the City Council continue to be dedicated to improving Montebello’s long-term financial sustainability. Pursuing projects that are externally and internally focused – capital and infrastructure projects as well as organizational improvements – will strengthen Montebello’s abilities to weather changes in the economy as well as the “next pandemic,” in whatever form that may appear.

SUMMARY:

Staff recommends the City Council receive and file the ACFR for the Fiscal Year ending June 30, 2025.

ATTACHMENT(S)

1. ATTACHMENT A - Transmittal Letter FY 2024_25 FINAL

2. ATTACHMENT B - MD&A FINAL 06_30_2025

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Page 108 of 394 ends

City of Montebello
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025

5 The following section represents Management’s Discussion and Analysis (MD&A). It is intended to provide narrative overview and analysis on the City’s financial performan ce for the fiscal year ended June 30, 2025. Readers are encouraged to consider the information presented here in conjunction with the accompanying letter of transmittal and financial statements.

Overview of the Financial Statements

The City's basic financial statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial St atements. The Statistical section at the end of this report provides supplementary information in addition to the basic financial statements. Government-wide Financial Statements are prepared using accrual accounting method to demonstrate the City’s operational accountability, while the Fund Financial Statements are based on modified -accrual accounting method to demonstrate its budgetary accountability. Reconciliations of the Fund Financial Statemen ts to the Government-wide Financial Statements are provided to explain to readers the differences created by this integrated approach.

Government-wide Financial Statements

The Government-wide Financial Statements provide a broad overview of the City's finances, in a manner similar to a private-sector business. The statements present information a bout the functions of the City principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government (i.e., administration, finance, human resources, elected officials, etc.) public safety, public works, parks and recreation, and housing and community development. Business-type activities of the City include water, golf course, transportation and hotel operations. These statemen ts include all assets of the City as well as all liabilities (including long-term debt). Additionally, certain eliminations have occurred as prescribed by the statement in regard to inter-fund activity, payables, and receivables.

The Statement of Net Position and the Statement of Activiti es report information about the City as a whole and about its activities. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements can be found immediately following this discussion and analysis.

Fund Financial Statements

The Fund Financial Statements include statements for three categories of activities: Governmental Funds, Proprietary Funds and Fiduciary Funds. The gove rnmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.

A Fund is a grouping of related accounts that is used to main tain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses f und accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as Governmental Activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Page 109 of 394 ends

City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

6 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisi ons. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, a nd Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains various individual governmental funds. Information is pr esented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Stat ement of Revenues, Expenditures, and Changes in Fund Balances, for the General Fund, the Retirement Special Reve nue Fund, the Public Financing Authority Debt Service Fund, and the Housing Successor Special Revenue Fund, all of whic h are considered to be major funds. Data from other governmental funds are combined into a single, aggreg ated presentation. Individual fund data for each of these other governmental funds is provided in the form of combin ing statements elsewhere in this report. As a result of Assembly Bills 1X26 and 1484, Redevelopment Agency assets and liabilities are no longer a part of the governmental funds of the City and are now reported in the Fiduciary Fund section of the financial statements.

The City adopts an annual appropriated budget for all of its individual funds, including the major funds as listed above.

The basic financial statements include a budgetary co mparison statement for the General Fund. The budgetary comparison statement has been provided to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found immediately following the government-wide financial statements.

Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges external customers, or other units of the City. Proprietary funds provide the same type of information as shown in the government-wide statements, only in more detail. The City maintains the following two types of proprietary funds.

• Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City uses enterprise funds to account for the operations of the golf course, transit system, Hilton Garden Inn and Home2suites Hotels.

• Internal service funds are used to report activities that provide internal services for the City. The City uses an internal service fund to account for workers' compensation and general liability expenses, including insurance premiums. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Fiduciary Funds . Fiduciary funds are used to account for resour ces held for the benefit of parties outside the government. Fiduciary funds are not reflected in the govern ment-wide financial statements because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found immediately following the basic proprietary fund fi nancial statements and include the assets and liabilities of the Successor Agency Fiduciary Fund.

Notes to financial statements

The notes to financial statements provide additional informa tion that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statem ents. The notes to the basic financial statements can be found immediately preceding the Required Supplementary Information.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

7 Other information

The combining statements referred to earlier in connection with other governmental funds and internal service funds are presented for all other Special Revenue Funds, all othe r Debt Service Funds, all other Capital Projects Funds, and all Internal Service Funds. These combining fund statements and schedules of revenues, expenditures and changes in fund balance - budget and actual for individual funds – can be found immediately following the notes to financial statements.

Note: The numbers shown on the MD&A are either expressed in multiples of one thousan d or million dollars while percentages are rounded to the nearest tenth or whole number. Hence, there may be slight differences between numbers on the MD&A and the numbers on the Basic Financial Statements.

Financial Highlights

The following are entity-wide financial highlights, covering both Governmental and Business-type activities:

• On June 30, 2025, the City’s total net position was approximately $54.728 million dollars, an increase of $2.688 million compared to the $52.040 million total net position as of June 30, 2024. The City’s unrestricted net position, at a negative $163.700 million, increased by $13.195 million dollars versus the prior fiscal year.

• General Fund total revenues, including transfers in and proceeds from issuance of debt as of June 30, 2025 was $81.464 million. Excluding non-operating transfer s in, General Fund opera ting revenue was $76.389 million.

• The General Fund operating expenditures as of June 30, 2025 were $88.722 million.

• The Transit Enterprise Fund ended Fiscal Year 2024-25 with a total net position of $5 5.787 million, a slight decrease of $0.575 million from the prior fiscal year.

• The City’s Hilton Garden Inn Enterprise Fund ended the fiscal year with a net position of $1.546 million, an improvement of $0.179 million from FY 2024-25. Th e operating income (revenues exceeding expenses, surplus) was $0.279 million as of June 30, 2025.

• The Home2Suites Enterprise Fund ended the fiscal year with a net position of negative $2.037 million, a decrease of $2.433 million versus FY 2023-24. The operating income (revenues exceeding expenses, surplus) was $1.335 million as of June 30, 2025.

These Financial Highlights, as well as other points, are discu ssed in greater detail in the body of this discussion and analysis, as well as the Notes to the Financial Statements . The following pages provide greater, in-depth detail on Government-wide financials, as well as Governmental and Business-type activities.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

8 Government-wide Financial Analysis

The government-wide financial statements provide both long-term and short-term information about the City's overall financial position. This analysis addresses the financial statements of the City as a whole. The statement of net position includes all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. The City’s net position is a useful measurement of its financial health. Net position can be tracked over time to assess whether the City’s financial health is improving or deteriorating. However, readers will need to consider other nonfinancial factors, such as changes in the City’s property tax base, the condition of the City’s infrastructure, and the level of public safety services to assess the overall health of the City.

The table below is the “Statement of Net Position,” and provides net position information broken out by Governmental and Business-type activities, with totals and a comparison to amounts as of June 30, 2025:

2025 2024 2025 2024 2025 2024
Assets:

Current and other assets 191,706 $ 202,184 $ 41,840 $ 50,100 $ 233,546 $ 252,284 $ Capital assets 157,705 150,159 142,921 141,082 300,626 291,241 Total assets 349,411 352,343 184,761 191,182 534,172 543,525 Deferred outflows of resources 21,333 33,837 4,226 8,483 25,559 42,320 Liabilities:

Long-term liabilities 276,581 295,288 125,659 132,127 402,240 427,415 Other liabilities 11,377 15,057 10,737 11,309 22,114 26,366 Total liabilities 287,958 310,345 136,396 143,436 424,354 453,781 Deferred inflows of resources 79,442 80,787 1,207 1,390 80,649 82,177 Net Position:

Net investment in capital assets 84,327 77,702 73,859 59,066 158,186 136,768 Restricted 50,158 49,619 10,084 14,007 60,242 63,626 Unrestricted (131,141) (132,273) (32,559) (18,232) (163,700) (150,505) Total net position 3,344 $ (4,952) $ 51,384 $ 54,841 $ 54,728 $ 49,889 $ City of Montebello
Statement of Net Position
June 30
(in thousands)
G overnmental Activities Business-type Activities Total

As mentioned in the “Financial Highlights” section above , the City’s total net position was $54.728 million as of June 30, 2025, an increase of $2.688 million compared to the net position of $52.040 m illion in FY 2023-24. Total assets decreased by $9.353 million ($534.172 million from $543.525 million).

The City uses capital assets to provide services to residents and the community at large; consequently, these assets are not available for future spending. Although the City's investme nt in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabiliti es. Any remaining amount is restricted to spending agreements originated by law, contract, or other agreements with external parties.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

9 Highlights of the key elements impacting the City’s net position for the fiscal year ended June 30, 2025, are as follows:

• Governmental Activities total revenue (including tr ansfers) exceeded expenses by $6.085 million ($122.124 million in revenue vs. $116.857 million in expenses).

• Business-type Activities total expe nses exceeded revenues excluding transfers by $2.575 million ($66.912 million in expenses vs. $64.337 million in revenues).

• Total Citywide expenses before transfers were $183.769 million, a reduction of approximately $12.055 million compared to the preceding fi scal year; with $0.036 million decrease in P ublic Safety (i.e., Police and Fire), $2.174 million increase in Housing a nd Community Development, $2.560 million increase in Parks, Culture and Recreation and an additional $3.375 million in Hilton Garden Inn and Home2Suites operations (i.e., City- owned hotels).

• Total Citywide revenues as of June 30, 2025 (net of transfers) were $186.461 m illion, an increase of $8.713 million compared to June 30, 2024. Charges for Services increased $6. 509 million, Investment Earnings increased $0.462 million, Other Revenues increased $2. 189 million, with decr eases of $1.556 million in Capital Grants compared to FY 2023-24.

• Revenues are classified into program and general re venues. Total program revenues (Governmental and Business-type activities combined) were approximately $126.676 million, which are used to offset program expenses under each functional activity and are comprised of charges for services, operating and capital grants.

• Governmental Activities General revenues of approximately $57.540 million are used to offset the additional expenses net of program revenues and are comprised primar ily of taxes (i.e., property, sales, franchise, etc.), but also include investment income and transfers.

• The overall increase of 4.67% in total revenues ($8.713 million) for the City was primarily due to increases in Charges for Services ($6.509 million), Investment Earnings ($0.462 million), Other Revenues ($2.189 million) and Sales Tax ($0.721 million).

• The largest City-wide revenues came from several s ources: charges for services (e.g. business license fees, building permits, hotel charges and bus fares) at $48. 828 million, operating grants and contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Propositions A and C, and Measures R and M) at $71.858 million, sales taxes at $26.379 million and property taxes at $8.468 million.

• Revenue from charges for services increased by $6.509 million (13.33%), Other Revenues increased by $2.189 million (74.71%), sales tax increased by $0.721 milli on (2.73%) and Other Taxes increased 1.81% ($0.234 million).

• Total citywide expenses decreased by $12.055 million (6.56%), the net impact of increases in Parks, Culture, and Recreation ($1.033 million), Housing and Community Development ($3.702 million) and operations and both hotels: Hilton Garden Inn ($0.644 million) and Home2Suites ($2.731 million); with a reduction in Public Safety of $0.036 million and Public Works of $16.017 million.

• The cost of serving residents for the year (across Governmental and Business-type Activities) includes:
$59.653 million for public safety (police and fire); $24.021 million for public works; $40.544 million for transit (Montebello Bus Lines); $10.278 million in general gove rnment; $5.527 million for the Golf Course; and $7.454 million for parks, recreation and culture.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

10 The “Summary of Changes in Net Position” table below pr ovides additional detail on cha nges to revenues, expenses and net position for the years ending June 30, 2025, and 2024.

2025 2024 2025 2024 2025 2024
Revenues
Program revenues:

Charges for services 24,363 $ 19,748 $ 24,465 $ 22,571 $ 48,828 $ 42,319 $ Operating grants and contributions 37,847 35,260 34,011 36,208 71,858 71,468 Capital grants and contributions 2,374 472 3,616 7,074 5,990 7,546 General revenues:

Sales taxes 26,379 25,658 - - 26,379 25,658 Property taxes 8,468 8,704 - - 8,468 8,704 Other taxes 12,944 12,710 - - 12,944 12,710 Other revenues 2,930 741 - - 2,930 741 Investment earnings 6,819 6,539 2,245 2,063 9,064 8,602 Total revenues 122,124 109,832 64,337 67,916 186,461 177,748 Expe nse s
General government 10,278 15,474 - - 10,278 15,474 Public safety 59,656 59,689 - - 59,656 59,689 Public works 24,021 40,038 - - 24,021 40,038 Parks, culture, and recreation 5,927 4,894 - - 5,927 4,894 Housing and community development 7,430 3,728 - - 7,430 3,728
Transit - - 40,544 41,323 40,544 41,323 Golf course - - 5,527 4,041 5,527 4,041 Monte be l l o Hi l ton - - 6,607 5,963 6,607 5,963 Home2suites - - 14,234 11,503 14,234 11,503 Water - - - - - - Interest on long-term debt 8,848 8,470 - - 8,848 8,470 Unallocated infrastructure depreciation 701 701 - - 701 701 Total ex penses 116,861 132,994 66,912 62,830 183,773 195,824 Change in net position before transfers 5,263 (23,162) (2,575) 5,086 2,688 (18,076) Transfers 818 2,000 (818) (2,000) - - Chang e in net position after transfers 6,081 (21,162) (3,393) 3,086 2,688 (18,076) Net position - beginning of year, as restate d (2,737) 16,210 54,777 51,753 52,040 67,963 Net position - end of year 3,344$ (4,952) $ 51,384 $ 54,839 $ 54,728 $ 49,887 $ City of Montebello
Summary of Changes in Net Position
(in thousands)
Governmental Activities Business-type Activities Tota l

Governmental Activities

• As reflected in the Statement of Activities schedule above, Governmental activities increased the City's total net position (after transfers) by $6.085 million, and Business-type activities decreased the net position by $3.393 million, combining to increase total net position by $2.688 million ($54.728 million) vs.

June 30, 2024.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

11 Key factors of this change in governmental activities include the following:

Revenues:

The pie chart below shows the relative percentage each major category of revenue (program and general) comprises of the $121.431 million in total Governmental Activities revenue.

Charges for services

19.95%
Operating grants
and contributions

30.99%Capital grants and
contributions

1.94%
Sales taxes

21.60%
Property taxes

6.93%
Other taxes

10.60%
Other revenues

2.40%
Governmental Activities Revenue
FY 2024-25

• Total governmental activities revenues increased by $1 2.292 million (10.07%). Th is is mainly due to increases in these revenue categories: Charges for Services ($4.615 million), Operating Grants and Contributions ($2.587 million) and Capital Grants and Contributions ($1.902 million).

• Operating Grants and Contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Prop ositions A and C, and Measures R and M) represent

30.99% of Governmental Activities revenue.

• Sales tax revenues were the second largest portion of total governmental activities revenues (21.60%). Sales tax revenues increased by $0.721 million, to $26.379 million as of June 30, 2025.

• Charges for services were the third largest source of revenue for governmental activities (19.95%). Charges for services in governmental funds include licenses and pe rmits, fines and forfeitures, waste collection, etc.

Compared to the prior fiscal year , this program revenue increased by approximately $4. 615 million, or

18.94%.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

12 Expenses

The cost of providing all governmental activities in 2025 was $116.857 million, a decr ease in expenses of $16.133 million (13.81%) when compared to June 30, 2024. There were increases and decreases to different categories, causing the overall reduction. Housing and Comm unity Development increased the most ($3.702 million, 49.83%), followed by an increase in Parks, Culture and Recreation ($1.033 million, 17.43%); while Public Works decreased significantly by $16.017 million, and General Government decreased by $5.196 million. Public Safety remained relatively consistent, with a slight decrease of $0.036 million (0.06%).

General government

8.80%
Public safety

51.05%
Public works

20.56%
Parks, culture, and
recreation

5.07%
Housing and
community
development

6.36%
Interest on long-
term debt

7.57%
Governmental Activities Expenses
FY 2024-25

Program revenues of $64.584 million offset a portion of the $116.857 million in Governme ntal Activities expenses, with general revenues used to offset $57.540 million of governmental activities expenses considered “public benefit.” This portion of expenses is funded by general revenues – which are primarily derived from taxes (i.e., sales, property, transient occupancy, etc.).

 Public Safety accounted for 51.05% of Governmental Activities expenses ($59.653 million).

 Public Works activities of $24.021 million comprised 20.56% of Governmental Activities expenses.

Business-type Activities

The City operates the following business-type activities: Tr ansit System (i.e., Montebello Bus Lines), Golf Course, Hilton Garden Inn and Home2Suites. The City’s Transit System is the largest business-type operation (as defined by operating expenses), followed by Home2Suites, the Hilton Garden Inn and the Golf Course.

Business-type activities decreased the City’s net position after transfers by $3.393 million, primarily a result of expenses exceeding revenue (excluding transfers) by $2.575 million ($66.912 million vs. $64.337 million).

Total revenues for business-type activiti es were $64.337 million, compared to $67. 916 million in the previous fiscal year, constituting a 5.56% decrease ($3.578 million). The overall change is due to a $3.458 million decrease in Capital Grants and Contributions and a $2.197 million decrease in Oper ating Grants and Contributions, partially offset by an increase of $1.894 million in Charges for Services.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

13 The pie chart below shows the ratio that various program revenues comprise of the to tal amount of Business-type Activities revenue. Approximately 38.03% of revenue came from Charges for Services, which was generated from bus fares, special contracts, and revenue from hotel room fees, while the remaining 61.97% comes from State and Federal subsidies in the form primarily of Transit related grants and related revenue from Federa l, State and local (i.e., Los Angeles County Metropolitan Transportation Authority) agencies.

Charges for services

38.03%
Operating grants and
contributions

52.86%
Capital grants and
contributions

5.62%
Investment earnings

3.49%
Business-Type Revenue
FY 2024-25

Business-type Activities expenses increased $4.082 million (6.10%) in FY 2024-25 when compared to the prior fiscal year ($66.912 million versus $62.830 million). The pie chart below s hows the composition that each operation comprises of total Business-type expenses:

Transit

60.59%Golf course

8.26%
Montebello
Hilton

9.87%
Home2suites

21.27%
Business-Type Expenses
FY 2024-25

• The Transit System reported operating revenues of $40.544 million, a $0.779 million decrease (1.92%) when compared to FY 2023-24. There was a decrease a in Federal and State transit assistance ($1.148 million) and a total net decrease Local Return Funds ($1.050 m illion) funding (i.e., Propositions A and C and Measures M and R). Operating expenses in FY 2024-25 were $38.870 million, a $0.225 million increase from the prior fiscal year. The majority of this increase ($2.815 million) was in Salaries and Benefits. Net position decreases slightly by $0.574 million, to $55.788 million

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

14 • The Hilton Garden Inn reflected operating net income of $0.279 million slightly less than the $0.812 million surplus in FY 2023-24. The net income (surplus) is attributable to the recovering economy and the return of leisure and business travelers, leading to a direct incr ease in total occupancy. Operating revenues were very little changed year over year at $6.685 million (vs. $6 .546 million in FY 2023-24), and operating expenses were up slightly ($0.672 million to $6.406 million. Total change in net position was a positive $0.179 million, contribution to ending net position of $1.547 million as of June 30, 2025.

• The Montebello Home2Suites reflected operating net income of $1.335 million. Operating revenue was $13.417 million, an increase of $0.716 million vs. the prio r fiscal year. As the economy recovers from the pandemic, a return to leisure and business travel h as positively impacted the hotel’s operations. Operating expenses of $12.083 million increased $2.793 million vs. FY 2023-24. Total net position decreased by $2.433 million, when taking into account a transfer out of $2.157 million.

• The City’s Golf Course was closed for renovation from September 2022 through April 2024. The complete re-imagining of the Golf Course resulted in a new la yout with two courses: a 9-hole and 6-hole (lighted) course. For FY 2024-25, the first full year of opera tions after the renovations, the net operating loss was $2.555 million. This was primarily due from final contractual expenses (net amount of $3.109 million) related to construction of the clubhouse, which was completed in October 2024.

Governmental Funds Financial Analysis (Reporting the City’s most Significant Funds)

Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be u seful in assessing the City's financing requirements, in particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of June 30, 2025, the City's governmental funds (i.e ., major funds such as the General Fund, Retirement Fund, Local Return Funds, etc.) reported to tal combined ending fund balances of $109.580 million, a decrease of $1.999 million as compared with the prior fiscal year. All government al fund balances are either non-spendable, restricted, committed, assigned, or unassigned pursuant to GASB 54.

Non-spendable indicates they are fund balances tied to inventorie s, prepaid expenses and property held for sale. The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. These restrictions of fund balance are to indicate that portions of fund balance are not available fo r new spending, because they have already been committed to 1) finance Special Revenue Fund expenditures, 2) pay debt service, or 3) finance ongoing capital projects.

Amounts in the committed fund balance are constrained for specific pur poses that are internally imposed by the government through formal written action of the City Council. Amounts in the assigned fund balance classification are intended to be used by the government for specific purpo ses but do not meet the criteria to be classified as restricted or committed. The City has designated committed or assigned fund balances as of June 30, 2025 per the City Council approved General Fund reserve policies (see ne xt paragraph for further explanation). Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.

It should be noted that updated comprehensive reserve policies were originally a dopted by the City Council in June 2020 and have been presented for fo rmal adoption as part of the budget process every fiscal year since. These reserve policies created commitments and assignments in line with GASB 54, detailing specific uses for the commitments or assignments such as “E conomic Uncertainty” or “Capital Proj ects.” These new policies, and the assignment of portions of the General Fund’s fund balance, have been partially implemented as of June 30, 2025.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

15 A Commitment for Economic Uncertainties ($16.000 million) has been made. Should future fund balances grow, additional designations per the reserve policies will be made per the City Council adopted policy.

The General Fund is the City's main operating fund. It is used to account for revenues and expenditures necessary to perform basic government functions that are not accounted for through other special revenue and grant funds. These are the typical services residents see daily: police and fire service, street maintenance, community services programming, code enforcement, park maintenance, etc.

The table below presents a comparison of General Fund revenu es, expenditures, and fund balance. The General Fund saw a use of fund balance of $7.258 million – from $31.757 million to $24.499 million as of June 30, 2025. Fund Balance is 32.07% of Operating Revenues.

2025 2024 Amount %
Operating revenues 76,389 $ 74,028 $ 2,361 $ 3.09% Operating expenditures 88,722 88,459 263 0.30% Excess of revenues over (under) expenditures (12,333) (14,431) 2,098 -17.01% Net operating transfers 5,047 5,809 (762) -15.10% Proceeds from issuance of debt 28 11,911 (11,883) -42439.29% Surplus / (Deficit) (7,258) 3,289 (10,547) 145.32% Beginning fund balance 31,757 28,468 3,289 10.36% Ending fund balance 24,499 $ 31,757 $ (7,258) $ -29.63% City of Montebello
G eneral Fund
As of June 30
(in thousands)
Change

The key factors impacting major revenue and expenditure categories are highlighted below:

• General Fund operating revenues (i.e., taxes, charges for services, licenses and permits, etc.) increased by $2.033 million (2.73%) from the prior year, which is primarily due to the overall increase in sales tax ($0.721 million), property tax ($0.134 million), Licenses and Pe rmits ($2.181 million) and Charges for Services ($2.110 million), net of a decrease of $3.814 million in Intergovernmental revenue.

• The increase to Property Tax reflects continued improvement in overall assessed value in the City, as well as additions to total assessed value with completed residential construction in Metro Heights and other smaller developments within the City. The Metro Heights devel opment is also partially responsible for increases to License and Permits and Charges for Services revenue (totaling $4.291 million) due to building permits and plan check fee revenue from this residential housing project.

• Other Revenue increased $1.079 million from one-time insurance reimbursement payments related to water damage at the Police Headquarters ($0.301 million) , reimbursement from FEMA for a Federal Disaster Declaration from winters storms in 2022 ($0.116 mi llion), and continued reimbursement from the National Opioid Settlement.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

16 • General Fund expenditures increased year-over-year by $7.214 (8.85%). The largest year-over-year changes in operating expenses were Public Safety (increased by $5.896 million), General Government (decrease of $4.313 million), Capital Outlay (inc rease of $2.554 million) and Hous ing and Community Development (increase of $3.702 million).

• The majority of Capital Outlay expenses are related to the citywide solar proj ect – $3.112 million of the $5.510 million total.

• Expenses related to salaries, benefits (including special pays) and overtime in Police and Fire contributed to the year-over-year increase, $2.037 million in the Po lice Patrol Division and $1.649 million in the Fire Suppression Division.

• The increase in Housing and Community Development is primarily from the movement of Building Services from Public Works when comparing FY 2024-25 to FY 2023-24 ($2.212 million).

• The year-over-year decrease in General Government is from a drop in settlement related expenses of $1.902 million and an increase of $2.161 million in administra tive overhead charged as part of the City’s cost allocation plan –recorded as a credit to expenses for financial reporting purposes vs. recorded as revenue for budget presentation.

• Non-operating transfers in (i.e., revenue) related to reimbursement from the Retirement Fund increased $0.863 million in FY 2024- 25 (see paragraph which follows), with a one-time transfer in of $.100 million from the George Miller fund to reimburse for Fire Department related training expenses.

The table below provides detail of General Fund revenue by major category for FY 2024-25:

Variance with
2025 Final Budget
Original Final Actual Positive (Negative )
Revenues
Sales taxes 26,625 $ 26,625 $ 26,379 $ (246) $ Property taxes 17,060 17,060 17,508 448 Other taxes 660 660 606 (54) Franchise taxes 3,325 3,325 3,298 (27) Licenses and permits 7,163 7,163 9,725 2,562 Fines and forfeitures 3,145 3,145 2,884 (261) Investment income 520 520 1,609 1,089 Intergovernmental 15 15 1,042 1,027 Charges for services 9,252 9,252 11,209 1,957 Rents and Concessions - - 331 331 Other revenue 499 499 1,798 1,299 Total revenues 68,264$ 68,264 $ 76,389 $ 8,125 $ Budgeted Amounts
City of Montebello
General Fund
As of June 30

Retirement Fund is reserved for the payment of retiremen t expenses (both Normal Cost and Unfunded Accrued Liability) for all employees of the City. The Retirement Fund is financed by the retirement portion of the property tax revenue (i.e., property tax override) pursu ant to a 1946 voter approved initiative to provide for the retirement benefit costs of City employees. Property Tax is the single largest source of revenue for th is fund, $17.860 million for FY 2024-25. The City’s Retirement Fund increased its fund balance by $4.285 million as of June 30, 2025, to a total of $34.711 million.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

17 The largest expense is the $12.922 million in Transfers Out related to the reimbursement of General Fund pension costs and payment of debt service on the $15 3.4 million in Pension Obli gation Bonds issued in June 2020. The expenses related to pension costs (General Fund) and debt ser vice (Debt Service Fund) are recognized as non-Operating Expenses (i.e., Transfers Out). The $0.890 million expense in General Government is the annual lump-sum payment to PERS for the unfunded liability as determined by the annual actuarial report.

Transportation and Street Improvement Funds category is used to account for the activity of Los Angeles County Metropolitan Transportation Authority (Metro) Local Return Funds and State of California Gas Tax funds. This is a relatively new presentation of these funds which began with th e financial statements as of June 30, 2023, combining activity to better illustrate the revenue and expenses related to street and roads funds. During the year ended June 30, 2025, fund balance decre ased by $0.696 million. Total expenditure s were $8.506 million, an increase of $5.302 million from FY 2023-24, reflecting the resumption of capital project work in FY 2024-25.

Public Financing Authority Debt Service Fund is used to account for the accumulation of resources required for the payment of interest and principal on all revenue bonds issued by the Public Financing Authority. As of June 30, 2025, fund balance increased by $0.284 million – from $6.035 million to $6.320 million. This fund is designed to act as a conduit for payment of debt service: Debt Service expenses (principal and interest charges) generally equal Non- Operating Transfers In (revenue).

Capital Asset and Debt Administration

Capital Assets

The City's capital assets for its governmental and business- type activities as of June 30, 2025 amounted to $300.626 million, net of accumulated depreciation, an $8.616 million increase (2.87%) over the prior year. Capital assets include land, buildings, improvements, machiner y and equipment, park facilities, road s, highways, and bridges. The table below provides a year-over-year comparison of capital assets (net of depreciation), broken out by Governmental Activities and Business-type Activities:

2024 2024
2025 As Restated 2025 2024 2025 As Restated
Land 3,413 $ 3,413 $ 6,272 $ 6,272 $ 9,685 $ 9,685 $ Rights of way 14,392 14,392 - - 14,392 14,392 Construction in progress 31,635 30,303 7,550 46,891 39,185 77,194 Buildings and improvements 99,027 95,653 108,549 65,791 207,576 161,444 Machinery and equipment 9,559 8,040 20,319 22,128 29,878 30,168 Infrastructure (855) (1,641) - - (855) (1,641) Right-to-use subscription assets 534 768 231 - 765 768 157,705$ 150,928 $ 142,921 $ 141,082 $ 300,626 $ 292,010 $ Governmental Activities Business-type Activities Total
City of Montebello
Summary of Capital Assets, Net of Depreciation
As of June 30
(in thousands)

The capital asset classes include:

• Sewer system, including sewer pipes, pumping stations, manholes, and laterals; • Storm drain system, including storm drainpipes, flood control channels, and catch basins;

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

18 • Streets, including pavement, curb and gutter, sidewalks, medians, greenways, block walls and traffic signals; • Buildings, including building remodels , building lighting systems, building equipment, and building roofs; and
• Parks, including associated structures and infrastructure assets.

Long-Term Liabilities

At the end of Fiscal Year 2024-25, the City had total debt outstanding of $375.652 m illion, a decrease of $17.471 million compared to the prior year. This decrease is from reductions in outstanding amounts across revenue and pension bonds, as well as a decrease in claims payable of $2.891 million.

The outstanding debt includes $156.593 million of revenue bonds and $126.770 million of pension obligation bonds.

Capital lease obligations decreased to $1.084 million (from $1.427 million), an d Subscription liabilities increased to $0.272 million (from $0.043 million), reflec ting the implementation of GASB 96, Subscription-Based Information Technology Arrangements. Compensated absences decreased by $0.024 million, resulting in a total liability of $10.920 million. The City’s Other Postemployment Benefit Obligation (OPEB) liability – as determined by the updated GASB 75 actuarial valuation – decreased by $1.543 million to $28.437 million.

The table below provides an overview and comparison of the various types of long-term liabilities:

2024 2024
2025 As Restated 2025 2024 2025 As Restated
Revenue bonds, net 78,797 $ 82,177 $ 77,796 $ 80,692 $ 156,593 $ 162,869 $ Pension bonds, net 92,960 97,023 33,810 35,287 126,770 132,310 Claims payable 31,804 34,695 31,804 34,695 Notes payable 15,889 16,843 3,883 4,012 19,772 20,855 Capital lease obligation 661 888 423 539 1,084 1,427 Subscription liability 40 43 232 - 272 43 Compensated absences 8,532 9,136 2,388 1,808 10,920 10,944 Other postemployment
benefits obligation 24,832 26,180 3,605 3,800 28,437 29,980 Subtotal 253,515 266,985 122,137 126,138 375,652 393,123 Less current portion 25,196 19,098 6,431 5,556 31,627 24,654 Noncurrent portion 228,319$ 247,887 $ 115,706 $ 120,582 $ 344,025 $ 368,469 $ City of Montebello
Sum m ary of Long-term Debt
As of June 30
(in thousands)
Governmental Activities Business-type Activities Total

Additional information on the City's long-term debt can be found in Note 7 to the basic financial statements section of this report.

Credit Rating

As of the date of this ACFR, the City’s S&P issuer cr edit rating (ICR) improved from “A+” to “AA-”, with the underlying credit rating on the City’s outstanding lease revenue bonds improving to “A+” (from “A”), with a “stable” outlook. These latest ratings were updated when S&P Globa l Ratings conducted a scheduled credit rating review in October 2025.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

19 The rating action reflects S&P Global Ratings view of the City’s strong General Fund performance over the past few years, driven by robust growth in both property tax and sal es tax revenue, which is expected to continue. Operating surpluses during the past three years have also lead to a recovery in available General Fund reserves, which are now in compliance with the City’s GASB 54 reserve policy. Additional detail can be found in the October 1, 2025 S&P Global Ratings Report “Montebello, CA and Pension Obligation Bonds Upgraded to ‘AA-‘ on Strong Performance; Lease Revenue Bonds raised to ‘A+’. “

Organizational and Economic Overview

The financial statements and commentary found in prior ACFR’s had been dominated by discussion of the impacts of the Coronavirus pandemic. For the results as of June 30, 2025, the economic and financ ial impacts of the pandemic have disappeared and there appears to be a return to “pre-pandemic” economic and financial activity – albeit tempered by continued lingering inflationary effects, which impact interest rates on home mortgages, vehicle financing, credit card debt, etc. In addition, immigration raids, tariffs, freezing of Federal funds for various activities, passage of a major tax bill, firings of hundreds of thousa nds of Federal employees, expiration of health insurance incentives, continued security strife in the Middle East, Ukraine, Venezuela and elsewhere, and overall chaos and uncertainty over much of the Federal Governments’ operations have impacted the economy – locally, regionally and nationally – and society at large.

For the second half of Fiscal Year 2024-25 the discussion su rrounding the economy focused on tariffs, and the near- constant changes in amounts and to which countries and products the tariffs applied. The uncertainty which the blitz of tariff changes brought to the economy dominated talk a bout the impacts the ever-changing tariff policies will have on the average consumer – and what this could mean for th e economy at large. Tariffs are a tax on the consumer, and while it appears many major businesses have not fully passed on the tariff impact to the consumer, the question lingers about how long that can last. At some point, businesses will be forced to pass along the increased costs associated with higher tariffs, which could result in even higher prices across a broad range of goods and services.

Because there is so much in the larger economy out of the City’s control, it is imperative that Montebello’s economic development activities promote projects that expand the C ity’s sales tax and property tax base. Looking ahead, there is much to be excited about in Montebello in these aren as, with several projects begun prior to FY 2024-25 that will contribute to the City’s long-term ec onomic health and viability once complete d in the near future. In 2026, the following business are expected to open operations in M ontebello: Dutch Brothers Coffee, Round 1, Hobby Lobby, Yard House Brewery, and many more retail operations that will further strengthen the City’s sales tax base.

The issuance of $15.140 million in lease revenue bonds in September 2022 (LRB Series 2022A) has ushered in a new era for the City’s public golf course, with re-opening of the golf course occurring in April, 2024, followed by the clubhouse opening in October, 2024. These bond proceeds have been used to completely reconstruct the existing golf course and constructing a new and mode rn clubhouse, creating a championship 9-hole course, a 6-hole “executive” course, and adding lights for the ability to play golf during evening hours.

Fiscal Year 2024-25 was the first full fiscal year of operati ons for the new Golf Course, and expenses related to the clubhouse construction are recorded in the Golf Course fund for this fiscal year. Staff are closely monitoring operations and adjusting green fees accordingly to match ongoing revenue with ongoing expenses.

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City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

20 Connected to the Golf Course Renovation Project is the Top golf facility, constructed on 15 acres of the existing golf course property. Topgolf opened to the public in May, 2024. This project is funded with $55.4 million in lease revenue bonds issued in December 2022 (LRB Series 2022B). In a unique financing arrangement, the Public Financing Authority issued the bonds, with a sub-lease and guaranty tied to the issuance that requires Topgolf to pay the annual debt service (i.e., improvement rent). The completed Topgolf facility is a three-story entertainment and event center, featuring 102 hitting bays, a restaurant , meeting space and a pro shop. In a ddition to the commitment to pay annual debt service, Topgolf pays an annual lease for the use of City property ($1.150 million for the first five years, with increases every five years thereafter). In addition, the f acility generates sales tax reve nue, which helps boost overall General Fund revenue.

These are just a few highlights of the many projects underway in Montebello that are aimed at improving residents’ lives and helping to put the City on a long-term path to fi nancial stability and sustainability. Some other projects that either began or were continued into FY 2024-25 are the following:

 Designation as a “Most Business Friendly City 2025” by the Los Angeles Economic Development Council  Completion of a portion of the “Paving the Way” projects that improved residential street and road conditions  Major repairs to the City’s aging sewer system, utilizi ng a portion of the City’s Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) allocation
 Expansion of the Montebello Community Assistance Program (MCAP) aimed at helping the City’s unhoused population
 Update of the City’s General Plan, the first in over forty years, with adoption by the City Council in April, 2024  Completion of a park and facilities needs assessment study and master plan  Completion of significant facility repair and upgrade pr ojects, eliminating years of deferred maintenance on key City facilities
 Renovation of the City Park baseball field
 Creation of a Community Resource Center at Chet Holifield Park  Introduction of improved purchasing and procurement guidelines  Receiving the Government Finance Officers Association (GFOA) award for budget preparation for the sixth time in the history of the City
 Approval to finance installation of solar panels at City facilities

Management and the City Council con tinue to be dedicated to improving Montebello’s long-term financial sustainability. Pursuing projects that are externally and internally focused – capital and infrastructure projects as well as organizational improvements – will strengthen Montebello’s abilities to weather changes in the economy as well as the “next pandemic,” in whatever form that may appear.

Requests for Information

This financial report is designed to prov ide a general overview of the City's fina nces for all those with an interest in the government's finances. Questions concerning any of the in formation provided in this report can be answered by visiting the City’s website at www.montebelloca.gov.

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ITEM # 7

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Raul Alvarez, City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: AUTHORIZE RECEIPT OF GRANT AWARD FROM CALIFORNIA

DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY
(“CALRECYCLE”) FOR THE ILLEGAL DISPOSAL SITE ABATEMENT

GRANT PROGRAM

DATE: April 22, 2026

RECOMMENDATIONS:

It is recommended that the City Council:

3. Amend the Fiscal Year 2025-26 budget by increasing appropriations by $275,000 in Account No. 271-50-594-6040.10 (CalRecycle - Disposal Sites Abatement, Community Development, CalRecycle - Disposal Sites Abate [expenditures, Other Contract Services]) and $275,000 in Account No. 271-99-4198.51 (CalRecycle- Disposal Sites Abate, Non-Departmental, Miscellaneous Grants, CalRecycle – Disposal Sites Abate [revenue]); and

4. Take such additional, related, action that may be desirable.

FISCAL IMPACT:

The City of Montebello was awarded $275,000 through the CalRecycle Illegal Disposal Site Abatement Grant Program for the Fiscal Year 2025-26. There is no matching funds requirement for this grant. The grant operates on a reimbursement basis, meaning the City will incur upfront costs and submit documentation to CalRecycle for reimbursement in accordance with the grant agreement.

In accordance with the grant requirements, the funds are to be distributed to a specific

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CalRecycle Illegal Disposal Site Abatement Grant Account, which will reflect the following budget:

1. Clean-Up/Removal $178,750.00

2. Construction/Application $63,250.00

3. Disposal $24,750.00

4. Planning/Design/Development/Fabrication $8,250.00
TOTAL

$275,000.00

The grant funds will support the remediation of illegal dumping and solid waste disposal on multiple properties within the City. The recommended action requires amending the Fiscal Year 2025-26 budget by increasing appropriations by $275,000 in Account No. 271-50-594-6040.10 (CalRecycle - Disposal Sites Abatement, Community Development, CalRecycle - Disposal Sites Abate, Other Contract Services [expenditures]) and $275,000 in Account No. 271-99-4198.51 (CalRecycle-Disposal Sites Abate, Non-Departmental, Miscellaneous Grants, CalRecycle – Disposal Sites Abate [revenue]).

BACKGROUND/DISCUSSION:

The California Department of Resources Recycling and Recovery (CalRecycle) administers the Solid Waste Disposal and Codisposal Site Cleanup Grant Program, which provides financial assistance to local agencies to remediate illegal dumping and solid waste disposal sites where responsible parties cannot be identified or are unable or unwilling to perform cleanup activities.

Through this competitive statewide grant program, CalRecycle allocated $1,000,000 in Fiscal Year 2025-26 for Illegal Disposal Site Abatement Grants to support local agencies addressing illegal dumping that poses risks to public health, safety, and the environment.

The Planning and Community Development Department submitted an application requesting funding to support cleanup and remediation efforts at properties experiencing illegal dumping and nuisance conditions. CalRecycle approved the City’s request and awarded $275,000 in grant funding to support these efforts.

Staff received the Grant Award Notification from CalRecycle, dated March 6, 2026, approving the City grant application request for $275,000 (Attachment A). The grant performance period will begin upon issuance of a Notice to Proceed from CalRecycle and will extend through June 30, 2028, providing the city with approximately two (2) years to complete the project activities. The City of Montebello was one of three jurisdictions

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selected statewide for funding in this grant cycle, along with the City of Oakland and the City of Riverside.

The City’s project will focus on the remediation of eight (8) properties that have active Code Enforcement cases and have been determined to constitute public nuisances due to constant illegal dumping and associated environmental hazards. The project will be coordinated by the Planning and Community Development Department in collaboration with the City’s CLEAN Task Force, a collaborative effort involving Code Enforcement, Public Works, the Police Department, and the Fire Department’s MCAP (Montebello Community Assistance Program).

As part of the program, the City will remove illegally disposed waste, remediate the affected sites, and implement preventive measures to deter future dumping activities.

Preventive measures may include the installation of fencing, improved lighting, signage, and ongoing inspections by City staff. Additionally, because grant funds will be used to remediate private properties, the City will pursue cost recovery from responsible property owners through liens, special assessments, or other legal mechanisms consistent with the Montebello Municipal Code and the CalRecycle grant requirements. When liens are placed on properties for cleanup or remediation activities funded in whole or in part by the grant, the City will include CalRecycle as an additional party on such liens so that CalRecycle may recover its proportional share of the grant-funded cleanup costs in accordance with the terms and conditions of the grant agreement.

ENVIRONMENTAL:

The recommended actions are not subject to further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2), 15060(c)(3), and 15378 of the State CEQA Guidelines (Title 14, California Code of Regulations).

The proposed actions consist of the acceptance of grant funding from the California Department of Resources Recycling and Recovery (“CalRecycle”), authorization for City officials to execute associated agreements and amendments necessary to implement the grant program, and a corresponding budget amendment to appropriate and recognize grant funds. These actions are administrative and fiscal in nature and do not constitute a “project” as defined by CEQA because they do not involve any commitment to a specific physical improvement, construction activity, or other action that may result in a direct or reasonably foreseeable indirect physical change in the environment.

Additionally, even if the actions were deemed to constitute a project, they would be exempt from CEQA review pursuant to Section 15378(b)(4) of the State CEQA Guidelines, which exempts the creation of government funding mechanisms or other fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment. Future activities that may be undertaken using the grant funds, including any site-specific illegal disposal site abatement or remediation efforts, will be subject to separate environmental review, as required by CEQA, at the time such activities are proposed and sufficiently defined.

Accordingly, no further environmental review is required for the approval of the

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recommended actions.

ANALYSIS:

Illegal dumping, unsanitary conditions, and poorly maintained vacant properties create unsafe conditions, degrade neighborhood quality, and require significant City resources to address. The CalRecycle funding provides the City with financial assistance to remediate problem sites and implement preventative measures to reduce future illegal dumping.

Acceptance of this grant will support the City’s Code Enforcement and neighborhood improvement efforts while reducing the financial burden on the City’s general fund.

To ensure fiscal accountability and protect public resources, all costs incurred by the City in connection with abatement, remediation, and related enforcement activities will be fully documented and itemized. Such costs will be attributed to the respective subject properties and pursued for recovery from responsible property owners through all available legal mechanisms, including, but not limited to, the recordation of a lis pendens, special assessments, liens, or other appropriate cost recovery actions, as authorized by law, to secure full reimbursement to the City.

SUMMARY:

The City of Montebello has been awarded $275,000 from CalRecycle’s Illegal Disposal Site Abatement Grant Program to support the cleanup and remediation of illegal dumping sites within the City. The project will address eight (8) properties identified as public nuisances and will include cleanup activities and preventive measures to deter future dumping.

Staff recommends that the City Council approve the acceptance of this grant funding, amend the Fiscal Year 2025-26 budget by increasing appropriations by $275,000 in Account No. 271-50-594-6040.10 (CalRecycle - Disposal Sites Abatement, Community Development, CalRecycle - Disposal Sites Abate, Other Contract Services [expenditures]) and $275,000 in Account No. 271-99-4198.51 (CalRecycle-Disposal Sites Abate, Non-Departmental, Miscellaneous Grants, CalRecycle – Disposal Sites Abate [revenue]), and authorize the City Manager, and the Director of Planning and Community Development to execute the necessary agreements and budget amendments required to implement the program.

ATTACHMENT(S)

1. Attachment A - Grant Agreement

2. Attachment B – Resolution No. 26-26

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RESOLUTION NO. 26-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MONTEBELLO, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF

THE CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND
RECOVERY (“CALRECYCLE”) ILLEGAL DISPOSAL SITE
ABATEMENT GRANT PROGRAM AWARD FOR FISCAL YEAR 2025-26

AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A

CONTRACT RELATED TO THE GRANT AWARD ON BEHALF OF THE
CITY

RECITALS

WHEREAS, the City of Montebello (“City”) has been awarded a grant in the amount of $275,000 from the California Department of Resources Recycling and Recovery (“CalRecycle”) under the Illegal Disposal Site Abatement Grant Program (“Grant”) for Fiscal Year 2025-26; and

WHEREAS, this grant will support the City’s efforts in cleanup and remediation of illegal dumping and solid waste disposal sites that pose a risk to the public health, safety, and the environment; and

WHEREAS, on February 26, 2026, the California Department of Resources Recycling and Recovery (“CalRecycle”) announced the Fiscal Year 2025–26 Illegal Disposal Site Abatement Grant Program awards; and

WHEREAS, on March 6, 2026, the City of Montebello received official notification from CalRecycle that the City had been awarded $275,000 through the Illegal Disposal Site Abatement Grant Program to support the cleanup and remediation of illegal disposal sites within the City; and

WHEREAS, the City will use the grant funds to conduct cleanup and remediation activities, implement preventative measures, and pursue cost recovery from responsible property owners through all available legal mechanisms consistent with the Grant program requirements; and

WHEREAS, there is no matching funds requirement for this Grant, and the total approved project budget is $275,000, covering a two-year period beginning upon issuance of a Notice to Proceed from CalRecycle and extending through June 30, 2028, for the enforcement activities outlined in the Grant agreement; and WHEREAS, acceptance of the Grant requires adoption of a resolution by the City Council authorizing acceptance of the Grant; execution of an agreement with CalRecycle; allow the City to incur Grant-related expenses and receive reimbursements; and permit future amendments to any Grant Agreement without further City Council action ; and

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RESOLUTION NO. 26-26

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WHEREAS, the City of Montebello desires to participate in the Grant program and proceed with the project activities associated with the Grant.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:

SECTION 1. The City Council hereby formally accepts the Illegal Disposal Site Abatement Grant Program award in the amount of $275,000 for Fiscal Year 2025-26 from CalRecycle and authorizes the City to incur Grant-related expenses and receive reimbursements for such expenses pursuant to the Grant program guidelines. The City Council further authorizes an amendment to the Fiscal Year 2025-2026 budget by increasing appropriations by $275,000 in Account No. 271-50-594 (CalRecycle – Disposal Sites Abatement, Community Development, CalRecycle - Disposal Sites Abate [expenditures]) and $275,000 in Account No. 271-99-4198.51 (CalRecycle – Disposal Sites Abate, Non-Departmental, Miscellaneous Grants, CalRecycle – Disposal Sites Abate [revenue]).

SECTION 2. The City Council hereby authorizes the City Manager, and the Director of Planning and Community Development as designee, to negotiate and execute any necessary documents, including but not limited to the Memorandum of Understanding (MOU) and any other agreements or amendments thereto, required by CalRecycle for the City’s participation in the Grant program, in a form approved by the City Attorney’s Office.

SECTION 3. The City Manager and the Director of Planning and Community Development are further authorized to take all necessary actions to implement the grant- funded activities, including but not limited to the submission of expenditure reports for reimbursement purposes in accordance with the grant requirements.

SECTION 4. The City shall be subject to the terms and conditions specified by the California Department of Resources Recycling and Recovery (CalRecycle) as a part of a contractual agreement executed by the City Manager, and the Director of Planning and Community Development, as designee. Any and all activities funded, information provided, and timelines represented shall be enforceable through the fully executed contractual agreement. Pursuant to the terms of the Grant Agreement, the City hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved grant application. In accordance with the requirements of the CalRecycle Grant Program, when the City places liens on properties for cost recovery for cleanup or remediation activities funded through the grant, the City shall include CalRecycle on such liens so that CalRecycle may recover its proportional share of the grant-funded cleanup costs.

SECTION 5. The adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2), 15060(c)(3), and 15378 of the State CEQA Guidelines, (Title 14, California Code of Regulations). The proposed actions consist of the acceptance of grant funding from the California Department of Resources Recycling and Recovery (“CalRecycle”), authorization for City officials to execute associated agreements and amendments necessary to implement the grant program, and a corresponding budget amendment to appropriate and recognize

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RESOLUTION NO. 26-26

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grant funds. These actions are administrative and fiscal in nature and do not constitute a “project” as defined by CEQA because they do not involve any commitment to a specific physical improvement, construction activity, or other action that may result in a direct or reasonably foreseeable indirect physical change in the environment. Additionally, even if the actions were deemed to constitute a project, they would be exempt from CEQA review pursuant to Section 15378(b)(4) of the State CEQA Guidelines, which exempts the creation of government funding mechanisms or other fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment. Future activities that may be undertaken using the grant funds, including any site-specific illegal disposal site abatement or remediation efforts, will be subject to separate environmental review, as required by CEQA, at the time such activities are proposed and sufficiently defined. Accordingly, no further environmental review is required for the approval of the recommended actions.

SECTION 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the passage and adoption of this resolution.

PASSED, APPROVED, AND ADOPTED THIS 22nd DAY OF APRIL 2026.

_______________________________
Georgina Tamayo, Mayor

ATTEST: APPROVED AS TO FORM:

________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney

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RESOLUTION NO. 26-26

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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. 26-26 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 22 nd day of April 2026 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

DATE:

Christopher Jimenez, City Clerk

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ITEM # 8

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Raul Alvarez, City Manager

BY: Cesar Roldan, Director of Public Works

SUBJECT: ACCEPTANCE OF THE LED SIGN PROJECT (CP 933) LOCATED AT CITY HALL – NOTICE OF COMPLETION

DATE: April 22, 2026

RECOMMENDATIONS:

It is recommended that the City Council:

1. Accept the City Hall LED Sign Project (CP 933) as completed by Monarka Development Corp. (DBA Express Sign & Neon); and

2. Approve the final contract amount with Monarka Development Corp. (DBA Express Sign & Neon) for the City Hall LED Sign Project in the amount of $97,845, including change orders;

3. Approve the Final Total Project Budget (Attachment A);

4. Authorize the City Clerk to execute, verify and file the Notice of Completion (Attachment B) with the Los Angeles County Registrar-Recorder;

6. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The final project budget, as detailed in Attachment A, reflects the City Council’s previously approved contract amount of $100,000 — including a construction contingency of $7,140 for change orders — for the LED Sign Project at City Hall (CP 933). Additionally, Attachment A shows total expenses for the project totaling $97,845. The recommended actions do not require a budget amendment.

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BACKGROUND/DISCUSSION:

On January 14, 2026, the City Council approved an agreement for $92,860 with Monarka Development Corporation, (DBA Express Sign & Neon) for the LED Sign Project (CP 933) located at City Hall. Additionally, the City Council authorized the Director of Public Works to review and approve change orders up to $7,140, bringing the total not-to- exceed project budget to $100,000. This project was funded by the General Fund.

The LED sign at City Hall, originally installed approximately 20 years ago, was determined to be non-operational and was last used in 2019. Through this agreement, the contractor replaced the obsolete components with a modern system, restoring full functionality, enhancing visibility, and ensuring reliable communication capabilities moving forward. Staff has confirmed that the project was substantially complete as of April 22, 2026.

It is recommended that the City Council accept the project as satisfactory and complete pursuant to Civil Code Section 3093. Upon acceptance of the project, staff will file the “Notice of Completion” with the County Recorder’s Office for the project. Thirty-five (35) days after the recordation of the Notice of Completion by the County Recorder’s Office, the City will release all applicable bonds and release the retention if no stop notices are filed within the 35-day period.

ENVIRONMENTAL:

N/A

ANALYSIS:

N/A

SUMMARY:

Staff is recommending that the City Council accept the Project as completed, approve the final Project budget and expenditures (Attachment A), including change orders, authorize the City Clerk to execute, verify and file the Notice of Completion (Attachment B) with the Los Angeles County Registrar-Recorder and authorize the City Manager to release the retention payment due to Monarka Development Corp. following the mandatory waiting period from the date the Notice of Completion is recorded.

ATTACHMENT(S)

1. Attachment A - Final Total Project Budget (CP 933)

2. Attachment B - Notice of Completion

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Project Expenses Final Cost
Invoice #001 (Includes Change Order No. 1) 92,952.75$
Change Order No. 1 Total 4,985.00$
Retention Invoice 4,892.25$
Total Project Cost: 97,845.00$
Project Funding Budget Amount
Construction Contract Award Amount (Awarded at the January 14, 2026 City Council Meeting) 92,860.00$
Construction Contingency (Awarded at the January 14, 2026 City Council Meeting) 7,140.00$ Total Project Budget: 100,000$
Remaining Project Funds 2,155.00$
LED Sign City Hall (CP 933)
Final Total Project Budget

ATTACHMENT A

Page 138 of 394 ends

Montebello City CouncilApril 22, 2026

Montebello City Council
April 22, 2026