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and the accrued interest thereon, with interest on such overdue installments, at the rate or rates applicable to the remaining unpaid principal balance of the Series 2024 Installment Payments or such Contract or Bond if paid in accordance with their terms, and the reasonable expenses of the Authority, and any and all other defaults known to the Authority (other than in the payment of the entire principal amount of the unpaid Series 2024 Installment Payments and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Authority or provision deemed by the Authority to be adequate shall have been made therefor, then and in every such case the Authority, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or affect any subsequent default or impair or exhaust any right or power consequent thereon.
Section 8.02 Application of Funds Upon Acceleration. Upon the date of the declaration of acceleration as provided in Section 8.01, all Revenues thereafter received by the City shall be applied in the following order:
First, t
o the payment, without preference or priority, and in the event of any insufficiency of such Revenues ratably without any discrimination or preference, of the fees, costs and expenses of the Trustee and its assigns and thereafter to the Authority, as the case may be, in carrying out the provisions of this article, including reasonable compensation to their respective accountants and counsel;
Second, to the payment of the Operation and Maintenance Costs; and Third, to the payment, on a pro rata basis, of the entire principal amount of the unpaid Series 2024 Installment Payments and the unpaid principal amount of all Bonds and Contracts and the accrued interest thereon, with interest on the overdue installments at the rate or rates of interest applicable to the Series 2024 Installment Payments and such Bonds and Contracts if paid in accordance with their respective terms.
Section 8.03 O
ther Remedies of the Authority. The Authority shall have the right:
(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the City or any director, officer or employee thereof, and to compel the City or any such director, officer or employee to perform and carry out its or his or her duties under the laws of the State of California and the agreements and covenants required to be performed by it or him or her contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Authority; or
(c) by suit in equity upon the happening of an Event of Default to require t he City and its directors, officers and employees to account as the trustee of an express trust.
Notwithstanding anything contained herein, the Authority shall have no security interest in or mortgage on the 2024 Project, the Water System or other assets of the City and no default hereunder shall result in the loss of the 2024 Project, the Water System or other assets of the City.
Section 8.04 Non-Waiver. Nothing in this article or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the Series
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2024 Installment Payments to the Authority at the respective due dates or upon prepayment from the Net Revenues, the Revenue Fund, the Rate Stabilization Fund and the other funds herein pledged for such payment, or shall affect or impair the right of the Authority, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.
A waiver of any default or breach of duty or contract by the Authority shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Authority to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy that is conferred upon the Authority by the law s of the State of California or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Authority.
If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Authority, the City and the Authority shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.
Section 8.05 Remedies Not Exclusive . No remedy that is conferred upon or reserved to the Authority herein is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by the laws of the State of California or any other law.
Section 8.06 [Control by the Insurer Upon Default. Anything herein or in the Indenture to the contrary notwithstanding, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations under the Policy or the Reserve Surety Policy, upon the occurrence and continuance of a default or an Event of Default: (a) the Insurer shall be enti tled to control and direct the enforcement of all rights and remedies granted to the holders of the Insured Bonds or the Trustee for the benefit of the holders of the Insured Bonds hereunder; (b) no default or Event of Default may be waived without the Insurer’s written consent; and (c) the Insurer shall be deemed to be the sole owner of the Insured Bonds for all purposes hereunder, including, without limitations, for purposes of exercising remedies and approving amendments.]
ARTICLE IX
DISCHARGE OF OBLIGATIONS
Section 9.01 Discharge of Obligations. When:
(a) all or any portion of the Series 2024 Installment Payments shall have become due and payable in accordance herewith or a written notice of the City to prepay all or any portion of the Series 2024 Installment Payments shall have been filed with the Trustee; and (b) there shall have been deposited with the Trustee at or prior to the Series 2024 Installment Payment Date or dates specified for prepayment, in trust for the benefit of the Authority or its assigns and irrevocably appropriated and set aside to the payment of all or any portion of the Series 2024 Installment Payments, sufficient moneys or a combination of sufficient moneys and non- callable Permitted Investments that are described in clause (A) of the definition thereof, the principal
20 4853-3433-6104v8/022483-0008
of and interest on which Permitted Investments when due will provide (together with any cash) money that is sufficient in the opinion of an Independent Certified Public Accountant to pay all principal, prepayment premium, if any, and interest of such Series 2024 Installment Payments to their respective Series 2024 Installment Payment Dates, as the case may be; and (c) provision shall ha ve been made for paying all fees and expenses of the Trustee, then and in that event, the right, title and interest of the Authority herein and the obligations of the City hereunder shall, with respect to all or such portion of the Series 2024 Installment Payments as have been so provided for, thereupon cease, terminate, become void and be completely discharged and satisfied (except for the right of the Trustee and the obligation of the City to have such moneys and such Permitted Investments applied to the payment of such Series 2024 Installment Payments).
In such event, upon request of the City, the Trustee shall cause an accounting for such period or periods as may be requested by the City to be prepared and filed with the City and shall execute and deliver to the City all such instruments as may be necessary or desirable to evidence such total or partial discharge and satisfaction, as the case may be, and, in the event of a total discharge and satisfaction, the Trustee shall pay over to the City, after pay ment of all amounts due the Trustee pursuant to the Indenture, as an overpayment of Series 2024 Installment Payments , all such moneys or such Permitted Investments held by it pursuant hereto, other than such moneys and such Permitted Investments as are required for the payment or prepayment of the Series 2024 Installment Payments, which moneys and Permitted Investments shall continue to be held by the Trustee in trust for the payment of the Series 2024 Installment Payments and shall be applied by the Truste e to the payment of the Series 2024 Installment Payments of the City.
ARTICLE X
MISCELLANEOUS
Section 10.01 Liability Limited. Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than the Revenues, the Revenue Fund, the Rate Stabilization Fund and the other funds provided herein for the payment of amounts due hereunder or for the performance of any agreements or covenants that are required to be performed by it contained herein. The City may, however, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.
The obligation of the City to make the Series 2024 Installment Payments is a special obligation of the City payable from the Net Revenues and does not constitute a debt of the City or of the State of California or of any political subdivision thereof in contravention of any constitutional or statutory debt limitation or restriction.
Section 10.02 Benefits of Installment Purchase Agreement Limited to Parties . Nothing contained herein, expressed or implied, is intended to give to any person other than the City, the Insurer and the Authority any right, remedy or claim under or pursuant hereto, and any agreement or covenant that is required herein to be performed by or on behalf of the City or the Authority shall be for the sole and exclusive benefit of the other party. The Insurer is recognized as and shall be deemed to be a third party benefici ary hereof and may enforce the provisions hereof as if it were a party hereto.
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Section 10.03 Successor Is Deemed Included in all References to Predecessor .
Whenever either the City or the Authority is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the City or the Authority, and all agreements and covenants which are required hereby to be performed by or on behalf of the City or the Authority shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.
Section 10.04 Waiver of Personal Liability. No member, officer or employee of the City shall be individually or personally liable for the payment of the Series 2024 Installment Payments , but nothing contained herein shall relieve any member, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.
Section 10.05 Article and Section Headings, Gender and References. The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to incl ude all genders. All references herein to “Articles,” “Sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof and the words “hereby,” “herein,” “hereof,” “hereto,” “herewith” and other words of similar import refer to the Installment Purchase Agreement as a whole and not to any particular article, section, subdivision or clause hereof.
Section 10.06 Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the City or the Authority shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreement s and covenants or portions thereof and shall in no way affect the validity hereof. The City and the Authority hereby declare that they would have executed the Installment Purchase Agreement, and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.
Section 10.07 Assignment. The Installment Purchase Agreement and any rights hereunder may be assigned by the Authority, as a whole or in part, without the necessity of obtaining the prior consent of the City. In addition to the rights and remedies assigned by the Authority to the Trustee, to the extent that the Indenture and the Installment Purchase Agreement confer upon or give or grant to the Trustee any right, remedy or claim under or by reason of the Indenture or the Installment Purchase Agreement, the Trustee is hereby explicitly recognized as being a third party beneficiary hereunder and may enforce any such right, remedy or claim conferred given or granted.
Section 10.08 Net Contract. The Installment Purchase Agreement shall be deemed and construed to be a net contract, and the City shall pay absolutely net during the term hereof the Series 2024 Installment Payments and all other payments required hereunder, free of any deductions and without abatement, diminution or set-off whatsoever.
Section 10.09 California Law . THE INSTALLMENT PURCHASE AGREEMENT
SHALL BE CONSTRUED AND GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.
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Section 10.10 Notices. The City will provide the Insurer with all notices and other information that it is obligated to provide: (a) under the Continuing Disclosure Agreement related to the 2024 Bonds; and (b) to the holders of Insured Bonds or the Trustee under the Indenture and the Installment Purchase Agreement. All written notices to be given hereunder shall be given by mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time, namely:
If to the City: City of Monterey Park
320 West Newmark Avenue
Monterey Park, California 91745
Attention: City Manager
If to the Authority: Monterey Park Financing Authority
320 West Newmark Avenue
Monterey Park, California 91754
Attention: Executive Director
If to the Insurer: [To come]
If to the Trustee: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Corporate Trust
Reference: Monterey Park 2024 Water Revenue Bonds
Section 10.11 Effective Date. The Installment Purchase Agreement shall become effective upon its execution and del ivery, and shall terminate when the Purchase Price shall have been fully paid (or provision for the payment thereof shall have been made to the written satisfaction of the Authority).
Section 10.12 Execution in Counterparts . The Installment Purchase Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
Section 10.13 Indemnification of Authority . The City hereby agrees to indemnify and hold harmless the Authority and its assigns and its officers and directors if and to the extent permitted by law, from and against all claims, advances, damages and losses, including legal fees and expenses, arising out of or in connection with the acceptance or the performance of its duties hereunder and under the Indenture; provided that no indemnification will be made for willful misconduct, negligence or breach of an obligation hereunder or under the Indenture by the Authority.
Section 10.14 Amendments Permitted.
(a) This Installment Purchase Agreement and the ri ghts and obligations of the Authority and the City and of the Owners of the 2024 Bonds and of the Trustee may be modified or amended at any time by an amendment hereto which shall become binding upon the prior written consent of the Insurer, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations under the Policy or the Reserve Surety Policy, and the Owners of a majority in aggregate principal amount of the 2024 Bonds then Outstanding, exclusive of 2024
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Bonds disqualified as provided in Section 11.09 of the Indenture. No such modification or amendment may: (1) extend the fixed maturity of any 2024 Bonds, or reduce the amount of principal thereof or premium (if any) thereon, or extend the time of payment, or change the rate of interest or the method of computing the rate of interest thereon, or extend the time of payment of interest thereon, without the consent of the Owner of each 2024 Bond so affected; or (2) reduce the aforesaid percentage of 2024 Bonds the c onsent of the Owners of which is required to affect any such modification or amendment, or permit the creation of any lien on the Revenues and other assets pledged under the Installment Purchase Agreement prior to or on a parity with the lien created by the Installment Purchase Agreement except as permitted herein, or deprive the Owners of the 2024 Bonds of the lien created by the Indenture on such Revenues and other assets except as permitted herein, without the consent of the Owners of all of the 2024 Bonds then Outstanding. (b) This Installment Purchase Agreement and the rights and obligations of the Authority and the City and of the Owners of the 2024 Bonds may also be modified or amended at any time by an amendment hereto which shall become binding upon adoption, without the consent of the Owners of any 2024 Bonds or the Insurer, but only to the extent permitted by law and only for any one or more of the following purposes: (1) to add to the covenants and agreements of the City contained in the Installment Purchase Agreement other covenants and agreements thereafter to be observed, to pledge or assign additional security for the 2024 Bonds (or any portion thereof), or to surrender any right or power herein reserved to or conferred upon the City; (2) to make such provisions for the purpose of curing any ambiguity, inconsistency or omission, or of curing or correcting any defective provision, contained in the Installment Purchase Agreement, or in regard to matters or questions arising under the Installment Purc hase Agreement, as the City may deem necessary or desirable; and (3) to modify, amend or supplement the Installment Purchase Agreement in such manner as to cause interest on the 2024 Bonds to remain excludable from gross income under the Code. No amendment without consent of the Owners may modify any of the rights or obligations of the Trustee without the written consent thereto.
Section 10.15 [Consent of the Insurer in Addition to Bondholder Consent .
Notwithstanding anything to the contrary set forth herein or in the Indenture, whenever any provision hereof requires the consent of holders of Insured Bonds, the Insurer’s consent shall also be required so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder. In addition, any amendment, supplement, modification to, or waiver of, any provision hereof that adversely affects the rights or interests of the Insurer shall be subject to the prior written consent of the Insurer.
No contract shall be entered into or any action taken by which the rights of the Insurer or (so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder) security for or source of payment of the Insured Bonds may be impaired or prejudiced in any material respect except upon obtaining the prior written consent of the Insurer.] Section 10.16 [Insolvency. Any reorganization or liquidation plan with respect to the City must be acceptable to the Insurer, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder. So long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder, each owner of the Insured Bonds hereby appoints the Insurer as its agent and attorney -in-fact with respect to the Insured Bonds and agrees that the Insurer may at any time during the continuation of Insolvency Proceeding direct all matters relating to such Insolvency Proceeding, including without limitation: (a) all matters relating to any Claim; (b) the direction of any appeal of any order relating to any Claim; (c) the posting of any
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surety, supersedeas or performance bond pending any such appeal; and (d) the right to vote to accept or reject any plan of adjustment. In addition, each owner of the Insured Bonds delegates and assigns to the Insurer, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder, to the fullest extent permitted by law, the rights of each owner of the Insured Bonds with respect to the Insured Bonds in the conduct of any Insolvency Proceeding, including, without limitation, all rights of any party to an adversary proceeding or action with respect to any court order issued in connection with any such Insolvency Proceeding.] [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
S-1
4853-3433-6104v8/022483-0008
IN WITNESS WHEREOF, the parties hereto have executed and attested this Installment Purchase Agreement by their officers thereunto duly authorized as of the day and year first written above.
CITY OF MONTEREY PARK
B y:
Mayor
ATTEST:
City Clerk
MONTEREY PARK FINANCING AUTHORITY
By:
Chair
ATTEST:
Secretary
A-1
4853-3433-6104v8/022483-0008
EXHIBIT A
DESCRIPTION OF THE 2024 PROJECT
2024 Projects Estimated Cost
Water Meter Replacement $ 9,000,000
Russell St. Reservoir Rehabilitation 3,500,000
Russel Booster Station 2,500,000
Phase 4 North East Water Main Replacements 2,400,000
N Atlantic Water Main Upgrade Project 2,200,000
Program Logic Controller Upgrade 1,000,000
Total $ 20,600,000
B-1
4853-3433-6104v8/022483-0008
EXHIBIT B
PURCHASE PRICE
1. The principal amount of payments to be made by the City hereunder is $___________.
2. The Series 2024 Installment Payments of principal and interest are payable in the amounts and on the Series 2024 Installment Payment Dates as follows:
Series 2024
Installment Payment
Date (15th Day of the
Month Prior to)
Amount
Attributable to
Principal
Amount
Attributable to
Interest Total
C-1
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EXHIBIT C
FORM OF REQUISITION FROM ACQUISITION FUND
$___________
MONTEREY PARK FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
REQUISITION NO. __ FOR
DISBURSEMENT FROM ACQUISITION FUND
The undersigned hereby states and certifies:
(i) that the undersigned is the duly appointed, qualified and acting City Manager of the City of Monterey Park, a municipal corporation that is organized and existing under the general laws of the State of California (the “ City”), and as such, is familiar with the facts herein certified and is authorized to certify the same;
(ii) t hat, pursuant to Section 3.05 of that certain Installment Purchase Agreement, dated as of May 1, 2024 (the “IPA”), by and between the City and the Monterey Park Financing Authority, the undersigned hereby requests the Director of Finance of the City to disburse this date the following amounts from the Acquisition Fund established under the IPA to the payees designated on the attached Schedule 1;
(iii) that each obligation mentioned herein has been incurred by the City and is a proper charge against the Acquisition Fund;
(iv) t hat any approval required under the California Environmental Quality Act, as amended (Division 13 of the California Public Resources Code), prior to the expenditure of such amount for the purpose set forth on the attached Schedule 1 has been received and is final; and (v) that there has not been filed with or served upon t he City notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the payees named on the attached Schedule 1, which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by mere operation of law.
Dated: ___________, 20___
CI
TY OF MONTEREY PARK
By:
City Manager
C-2
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SCHEDULE 1
ACQUISITION FUND DISBURSEMENTS
Item
Number Payee Name and Address Purpose of Obligation Amount
D-1
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EXHIBIT D
FORM OF SUBSTITUTION STATEMENT
U.S. Bank Trust Company, National Association
633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Corporate Trust
Reference: Monterey Park 2024 Water Revenue Bonds
The undersigned ______ of the City of Monterey Park (the “ Ci ty”) hereby states pursuant to
Section 3.02 of the Installment Purc hase Agreement, dated as of May 1 , 2024 (the “IPA”), by and between the City and the Monterey Park Financing Authority, that each component of the 2024 Project (as such term is defined in the IPA) described in the first column of Schedule 1 attached hereto, with an estimated cost set forth in the second column of Schedule 1, will be replaced by the corresponding improvement described in the third column of Schedule 1 with an estimated cost set forth in the fourth column of Schedule 1.
Dated: _________ __, 20__
______
D-2
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SCHEDULE 1
Components of
2024 Project to
be Replaced
Cost of Each
Component of
2024 Project
to be Replaced
Improvements
to be
Substituted
Cost of Each
Improvement
to be
Substituted
Staff Report
April 17, 2024
ATTACHMENT 4
Bond Purchase Agreement
$______
MONTEREY PARK FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
BOND PURCHASE AGREEMENT
_______, 2024
Monterey Park Financing Authority
320 West Newmark Ave.
Monterey Park, CA 91754
City of Monterey Park
320 West Newmark Ave.
Monterey Park, CA 91754
Ladies and Gentlemen:
Samuel A. Ramirez & Co., Inc. (the “Underwriter”) hereby offers to enter into this Bond Purchase Agreement (the “Purchase Agreement”) with you, the Monterey Park Financing Authority (the “Authority”) and the City of Monterey Park (the “City”), for the purchase by the Underwriter and the delivery by the Authority of the above-referenced Bonds (the “Bonds”). The proceeds of the Bonds will be used to: (i) finance certain capital improvements to the City’s municipal water system; (ii) fund a debt service reserve fund for the Bonds; and (iii) pay costs incurred in connection with the issuance of the Bonds. This offer is subject to your acceptance prior to 11:59 p.m., California time, on the date hereof and if not so accepted will be subject to withdrawal by the Underwriter upon written notice delivered to the Authority and the City at any time prior to the acceptance thereof by the Authority and the City. Upon such acceptance, this Purchase Agreement shall be in full force and effect in accordance with its terms and shall be binding upon you and the Underwriter. All terms not defined herein shall have the meanings set forth in the Indenture and the Installment Purchase Agreement (each defined below).
The Authority and the City acknowledge and agree that: (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm’s-length commercial transaction among the City, the Authority and the Underwriter in which the Underwriter is acting solely as a principal and not as an agent of the Authority or the City and the Underwriter is not acting as a municipal advisor, financial advisor or fiduciary to the Authority or the City; (ii) the Underwriter has not assumed any advisory or fiduciary responsibility to the Authority or the City with respect to the transaction contemplated by this Purchase Agreement and the discussions, undertakings or procedures leading thereto (irrespective of whether the Underwriter, or any affiliate of the Underwriter has provided other services or is currently providing other services to the Authority or the City on other matters); (iii) the only obligations the Underwriter has to the Authority and the City with respect to the transaction contemplated by this Purchase Agreement are expressly set forth in this Purchase Agreement; (iv) the Underwriter has financial and other interests that differ from those of the Authority and the City; and (v) the Authority and the City have consulted their own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent the Authority and the
2 City have deemed appropriate. The Authority acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (the “MSRB”).
1. Upon the terms and conditions and upon the basis of the representations herein set forth, the Underwriter hereby agrees to purchase from the Authority for offering to the public, and the Authority hereby agrees to sell and deliver to the Underwriter, all (but not less than all) of the $______ aggregate principal amount of the Bonds to be dated the Closing Date, at a price of $______, being the principal amount of the Bonds, plus original issue premium of $_______, less an Underwriter’s discount of $_______.
The Bonds shall mature in the amounts and on the dates, and bear interest at the rates, set forth in Exhibit A hereto. The Bonds shall be as described in and shall be secured under and pursuant to an Indenture of Trust, dated as of April 1, 2024 (the “Indenture”), between the Authority and U.S.
Bank Trust Company, National Association , as trustee (the “ Trustee”), substantially in the form previously submitted to the Underwriter with only such changes therein as shall be mutually agreed upon by the Authority, the City, the Trustee and the Underwriter.
The obligation of the Authority to pay the principal of and interest on the Bonds is a special obligation of the Authority, payable solely from Revenues (as defined in the Indenture), and certain other amounts held under the Indenture. Revenues consist primarily of Series 2024 Installment Payments (referred to herein as “ Installment Payments ”) made by the City to the Authority pursuant to the Installment Purchase Agreement (as defined below). The principal of and interest on the Bonds are not required to be paid from any other funds of the Authority, including any proceeds of any taxes, and the Bonds do not constitute a debt or pledge of the faith and credit of the Authority or the State of California (the “ State”) or any political subdivision thereof in contravention of any constitutional or statutory debt limitation or restriction.
The obligation of the City to make Installment Payments under the Installment Purchase Agreement is a special obligation of the City payable solely from and secured by a pledge of Net Revenues of the City’s municipal water system (the “Water System”).
The Authority and the City hereby ratify the use by the Underwriter of the Preliminary Official Statement, dated _______, 2024 relating to the Bonds (together with the cover page and all appendices thereto, and any supplements thereof, the “ Preliminary Official Statement”), and authorize the Underwriter to use and distribute the Preliminary Official Statement, the Official Statement (as de fined below), the Indenture, the Installment Purchase Agreement, dated as of April 1, 2024, between the Authority and the City (the “ Installment Purchase Agreement ”), the Continuing Disclosure Certificate as required by Securities and Exchange Commission Rule 15c2 -12 (“Rule 15c2-12 ”), dated the Closing Date relating to the Bonds (the “ Continuing Disclosure Certificate”), and substantially in the form attached as an appendix to the Official Statement, executed by the City and the dissemination agent named therein and this Purchase Agreement, and all information contained therein, and all other documents, certificates and statements furnished by the Authority and the City to the Underwriter in connection with the offer and sale of the Bonds by the Underwriter. The Authority and the City have heretofore “deemed final” the Preliminary Official Statement within the meaning of Rule 15c2-12.
The City will undertake pursuant to the Continuing Disclosure Certificate to provide certain annual financial and operating information and notices of the occurrence of certain events. A
3 description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. This undertak ing will be entered into in order to assist the Underwriter in complying with Rule 15c2-12.
2. The Underwriter agrees to offer all the Bonds to the public initially at the prices (or yields) set forth on the inside cover page of the Official Statement of the Authority pertaining to the Bonds, dated ______, 2024 (together with all appendices thereto, and with such changes therein and supplements thereto and as are consented to in writing by the Underwriter, and with the Preliminary Official Statement, are herein called the “ Official Statement”). Subsequent to the initial public offering of the Bonds, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds subject to Section 5 hereof. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices. The Underwriter agrees that prior to the time the final Official Statement relating to the Bonds is available, the Underwriter will send to any potential purchaser of the Bonds, upon the request of such potential purchaser, a copy of the most recent Preliminary Official Statement. Such Preliminary Official Statement shall be sent by first class mail or electronic distribution (or other equally prompt means) not later than the first business day following the date upon which each such request is received.
3. The Authority shall also deliver a sufficient number of copies of the Official Statement to enable the Underwriter to distribu te a single copy of each Official Statement to any potential customer of the Underwriter requesting an Official Statement during the time period beginning when the Official Statement becomes available and ending on the End Date (defined below). The Authority shall deliver these copies to the Underwriter no later than the earlier of (i) seven (7) business days after the execution of this Purchase Agreement or (ii) one (1) business day prior to the Closing Date in order to permit the Underwriter to comply with Rule 15c2- 12, and the applicable rules of the MSRB, with respect to distribution of the Official Statement. The Authority and City shall prepare the Official Statement, including any amendments thereto, in word-searchable PDF format as described in the MSRB’s Rule G -32 and shall provide the electronic copy of the word-searchable PDF format of the Official Statement to the Underwriter no later than one (1) business day prior to the Closing Date to enable the Underwriter to comply with MSRB Rule G -32.
The Underwriter shall inform the City in writing of the End Date, and covenants to file the Official Statement with the MSRB on a timely basis.
The Official Statement, as of its date, as of the Closing Date (as defined herein) and as of the date of any update, amendment or supplement thereto as required hereby subsequent to the Closing, up to and including the date which is twenty -five (25) days following the end (the “ End Date”) of the Underwriting Period (as hereinafter defined), will be correct and complete in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
If, after the date of this Purchase Agreement and until the earlier of (i) ninety (90) days after the end of the “underwriting period” (as defined in Rule 15c2-12) (the “ Underwriting Period”), or (ii) twenty-five (25) days following the end of the Underwriting Period if t he Official Statement is available to any person from the MSRB as contemplated by Rule 15c2-12(b)(4), any event shall occur or circumstance shall exist of which the Authority or the City have knowledge that would cause the Official Statement to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which
4 they were made, not misleading, the Authority or the City, as the case may be, shall notify the Underwriter (and for the purpose of this Section provide the Underwriter with such information as it may from time to time reasonably request), and, if in the opinion of the City, the Authority or the Underwriter such event or circumstance requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority and the City will, at their expense, supplement or amend the Official Statement in a form and manner jointly approved by the City, the Authority and the Underwriter and furnish to the Underwriter a reasonable number of copies of such supplement or amendment provided that the Underwriter agrees that it will promptly notify the Authority and the City of the end of the Underwriting Period.
4. At 8:30 a.m., Pacific Time, on ________, 2024, or at such other time or date as shall be agreed upon by the Underwriter, Authority and the City (such time and date being herein referred to as the “ Closing Date”), the Authority will deliver to the Underwriter, at a location or locations to be designated by the Underwriter, the Bonds in book-entry form (all Bonds having had the CUSIP numbers assigned to them thereon), duly executed by an authorized officer of the Trustee as provided in the Indenture, and the other documents herein mentioned; and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 of this Purchase Agreement in immediately available funds (such delivery and payment being herein referred to as the “Closing”).
Upon initial issuance, the ownership of such Bonds shall be registered in the registration books kept by the Trustee in the name of Cede & Co., as the nominee of The Depository Trust Company.
It is anticipated that CUSIP numbers will be printed on the Bonds, but neither the failure to provide such numbers nor any error with respect thereto shall constitute a cause for failure or refusal by the Underwriter to accept delivery of the Bonds in accordance with the terms of this Purchase Agreement.
5. A. The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel (as defined herein), to accurately reflect, as applicab le, the sales price or prices or the initial offering price or prices to the public of the Bonds.
B. Except as otherwise set forth in Exhibit A attached hereto, the Authority will treat the first price at which 10% of each maturity of the Bonds (the “ 10% test”) is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Authority or Bond Counsel. For purposes of this Section, if Bonds mature on the same
5 date but have different interest rates, each separate CUSIP number within that ma turity will be treated as a separate maturity of the Bonds.
C. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “ initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. Exhibit A also sets forth, as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in t he next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “ hold-the-offering-price rule”). So long as the hold -the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
a. the close of the fifth (5th) business day after the sale date; or b. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the Authority promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
D. The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker -dealer is a sale to the public.
6 (ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third -party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such third -party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it , whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.
E. The Authority acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the-offering-price rule, if applicable to the Bonds, as set forth in the third- party distribution agreement and the related pricing wires. The Authority further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling gr oup, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds.
F. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
a. “public” means any person other than an underwriter or a related party;
b. “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the public);
c. a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50%
7 common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of a nother), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
d. “sale date” means the date of execution of this Purchase Agreement by all parties.
6. The Underwriter represents to and agrees with the Authority and the City that, as of the date hereof and as of the Closing Date:
(i) The Underwriter is duly authorized to execute this Purchase Agreement and to take any action under this Purchase Agreement required to be taken by it; (ii) The Underwriter is in compliance with MSRB Rule G-37 with respect to the Authority and the City, and is not prohibited thereby from acting as the underwriter with respect to securities of the Authority and the City; and (iii) The Underwriter has, and has had, no financial advisory relationship, as that term is defined in California Government Code Section 53590 (c) or MSRB Rule G -32, with the City or the Authority with respect to the Bonds, and no investment firm controlling, controlled by or under common control with such Underwriter have or has ha d any such financial advisory relationship; and
7. The Authority represents, warrants and covenants to the Underwriter that:
(a) The Authority is a joint exercise of powers authority duly organized and validly existing pursuant to the laws of the State of California and has all necessary power and authority to enter into and perform its duties under the Indenture, the Installment Purchase Agreement and this Purchase Agreement (collectively, the “ Authority Documents”) and, when executed and delivered by the respective parties thereto, the Authority Documents will constitute the legal, valid and binding obligations of the Authority in accordance with their respective terms.
(b) Neither the execution and delivery of the Authority Documents, or the approval of the Preliminary Official Statement or the approval and execution of the Official Statement, and compliance with the provisions on the Authority’s part contained therein, nor the consummation of any other of the transactions herein and therein contemplated, nor the fulfillment of the terms hereof and thereof, conflicts with or constitutes a breach of or default under nor contravenes any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrum ent to which the Authority is a party or is otherwise subject, nor does any such execution, delivery, adoption or compliance result in a security interest in or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents.
8 (c) Except as may be required under blue sky or other sec urities laws of any state, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the Authority required for the execution and delivery of the Bonds or the cons ummation by the Authority of the other transactions contemplated by the Preliminary Official Statement, the Official Statement and this Purchase Agreement. (d) To the best of the knowledge of the Authority, there is, and on the Closing there will be, no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the Authority to restrain or enjoin the delivery of any of the Bonds, or the payments to be made pursuant to the Indenture, or in any way contesting or affecting the validity of the Authority Documents or of the Authority to enter into the Authority Documents or contesting the powers of the Authority to perform its obligations under any of the foregoing or in any way contesting the powers of the Authority in connection with any action contemplated by this Purchase Agreement, or in any way questioning or challenging the tax status of interest on the Bonds.
(e) As of its date and as of the date hereof, the information relating to the Authority and the Bonds contained in the Preliminary Official Statement was and is true and correct in all material respects and such information did not and does not contain any untrue or misleading statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (f) As of the date thereof and at all times subsequent thereto up to and including the End Date, the information relating to the Authority contained in the Official Statement will be complete and will not contain any untrue or misleading statement of a material fact or omit to state any material fact (unless an event occurs of the nature described in Section 7(j) be low) necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of its date and as of the date hereof, the information relating to the Authority and the Bonds contained in the Official Statem ent is true and correct in all material respects and such information does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances unde r which they were made, not misleading.
(g) The Authority agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the Authority will not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject or to qualify to do business as a foreign a gency in any jurisdiction where it is not so qualified.
(h) By official action of the Authority prior to or concurrently with the execution hereof, the Authority has duly approved the distribution of the Preliminary Official Statement and the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations on its part contained in the Authority Documents and the consummation by it of all other transactions contemplated by the Preliminary Official Statement, the Official Statement and this Purchase Agreement.
(i) The Authority is not in breach of or default under any applicable law or administrative regulation of the State of California or the United States or any applicable judgment or
9 decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a def ault or an event of default under any such instrument.
(j) The Authority is not in default, nor has been in default at any time, as to the payment of principal or interest with respect to an obligation issued by the Authority or with respect to an obligation guaranteed by the Authority as guarantor. (k) If between the date of this Purchase Agreement and the End Date an event occurs, of which the Authority has knowledge, which might or would cause the information relating to the Authority or the Authority ’s functions, duties and responsibilities contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading, the Authority will notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment t o the Official Statement, the Authority will cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred will be paid for by the Authority.
(l) If the information relating to the Authority, its functions, duties and responsibilities contained in the Official Statement is amended or supplemented pursuant to the immediately preceding subsection, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subsection) at all times subsequent thereto up to and including the End Date, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading.
(m) No consent, approval, authorization or other action by a governmental or regulatory authority that has not been obtained is or will be required of the Authority for the delivery and sale of the Bonds or the consummation of the other transactions contemplated by this Purchase Agreement, the Preliminary Official Statement and the Official Statement, except as may be required under the state securities or blue sky laws in connection with the sale of the Bonds by the Underwriter.
(n) At or prior to the Closing, the Authority will deliver all opinions, Bonds, letters and other instruments and documents reasonably required by the Underwriter and this Purchase Agreement.
(o) Any certificate of the Authority delivered to the Underwriter shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein. (p) Other than as described in the Preliminary Official Statement and the Official Statement, as of the time of acceptance hereof and as of the Closing the Authority does not and will not have outstanding any indebtedness which is secured by a l ien on the Installment Payments superior to or on a parity with the lien of the Bonds thereon.
10 (q) Between the date of this Purchase Agreement and the date of Closing, the Authority will not, without the prior written consent of the Underwriter, and except as disclosed in the Preliminary Official Statement and the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent. (r) The Authority is not presently and as a result of the execution of the Authority Documents and the sale of the Bonds will not be in violation of any debt limitation, appropriation limitation or any other provision of the California Constitution or statutes or any additional debt or similar provision of any bond, note, contract or other evidence of indebtedness to which the Authority is a party or to which the Authority is bound. (s) The Authority will not knowingly take or omit to take any action, which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner other than as provided in the Authority Documents, unless otherwise required by law.
8. The City represents, warrants and covenants to the Underwriter that:
(a) The City is a municipal corporation and charter city duly organized under the laws of the State of California, and has all necessary power and authority to enter into and perform its duties under the Installment Purchase Agreement, the Continuing Disclosure Certificate , and this Purchase Agreement (collectively, the “ City Documents”) and, when executed and delivered by the respective parties thereto, the City Documents will constitute the legal, valid and binding obligations of the City in accordance with their respective terms.
(b) Neither the execution and delivery of the City Documents, or the approval of the Preliminary Official Statement or the approval and execution of the Official Statement, and compliance with the provisions on the City’s part contained therein, nor the consummation of any other of the transactions herein and therein contemplated, nor the fulfillment of the terms hereof and thereof, conflicts with or constitutes a breach of or default under nor contravenes any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, nor does any such execution, delivery, adoption or compliance result in a security interest in or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgme nt, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the City Documents. (c) Except as may be required under blue sky or other securities laws of any state, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the City required for the execution and delivery of the Bonds or the consummation by the City of the other transactions contemplated by the Preliminary Official Statement, the Official Statement and this Purchase Agreement. (d) To the best of the knowledge of the City, there is, and on the Closing there will be, no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the City to restrain or enjoin the delivery of any of the Bonds, or the payments to be made pursuant to the Installment Purchase Agreement and Indenture, or in any way contesting or affecting the va lidity of the City Documents or of the City to approve or enter into the City Documents, or in any way questioning or challenging the tax status of interest on the Bonds.
11 (e) As of its date and as of the date hereof, the information relating to the City, the Bonds and the Water System contained in the Preliminary Official Statement was and is true and correct in all material respects and such information did not and does not contain any untrue or misleading statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading
(f) As of the date thereof and at all times subsequent thereto up to and including the End Date, the information relating to the City, the Bonds and the Water System contained in the Official Statement will be complete and will not contain any untrue or misleading statement of a material fact or omit to state any material fact (unless an event occurs of the nature described in Section 8(j) below) necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of its date and as of the date hereof, the information relating to the City, the Bonds and the Water System contained in the Official Statement is true and correct in all material respects and such information does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (g) The City agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the City will not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject or to qualify to do business as a foreign agency in any jurisdiction where it is not so qualified.
(h) By official action of the City prior to or concurrently with the execution hereof, the City has duly approved the distribution of the Preliminary Official Statement and the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in the City Documents and the consummation by it of all other transactions contemplated by the Preliminary Official Statement, the Official Statement and this Purchase Agreement.
(i) The City is not in breach of or default under any applicable law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, in denture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument.
(j) The City is not in default, nor has been in default at any time, as to the payment of principal or interest with respect to an obligation issued by the City or with respect to an obligation guaranteed by the City as guarantor.
(k) If between the date of this Purchase Agreement and the End Date an event occurs, of which the City has knowledge, which might or would cause the information relating to the City, the Water System or the City’s functions, duties and responsibilities contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the ligh t of the circumstances under which it was presented, not misleading, the City will
12 notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred will be paid for by the City.
(l) If the information relating to the Water System , the City, its functions, duties and responsibilities contained in the Official Statement is amended or supplemented pursuant to the immediately preceding subsection, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subsection) at all times subsequent thereto up to and including the End Date, the portions of the Official Statement so supplemented or amended (including any financial and statistica l data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading.
(m) The City covenants that it will comply with all tax covenants relating to it in the City Documents and the Tax Certificate of the City. (n) The written information supplied by the City to the Underwriter with respect to the financial information relating to the Water System is true, correct and complete in all material respects for the purposes for which it was supplied.
(o) No consent, approval, authorization or other action by a governmental or regulatory agency that has not been obtained is or will be required of the City for the delivery and sale of the Bonds or the consummation of the other transactions contemplated by this Purchase Agreement, the Preliminary Official Statement and the Official Statement, except for such licenses, certificates, approvals, variances or permits which may be necessary for the construction or operation of the Water System which the City has applied for (or will apply for in the ordinary course of business) and expects to receive, and except as may be required under the state securities or blue sky laws in connection with the sale of the Bonds by the Underwriter. (p) The City will not take or omit to take any action which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner contrary to that provided in the Indenture and as described in the Preliminary Official Statement and Official Statement, unless otherwise required by law.
(q) At or prior to the Closing, t he City will deliver all opinions, certificates, letters and other instruments and documents reasonably required by the Underwriter and this Purchase Agreement.
(r) Any certificate of the City delivered to the Underwriter shall be deemed a representation and warranty by the City to the Underwriter as to the statements made therein. (s) Other than as described in the Preliminary Official Statement and the Official Statement, as of the time of acceptance hereof and as of the Closing, the City does not and will not have outstanding any indebtedness which is secured by a lien on the Net Revenues superior to or on a parity with the lien thereon established under the Indenture.
13 (t) Between the date of this Purchase Agreement and the date of Closing, the City will not, without the prior written consent of the Underwriter, and except as dis closed in the Preliminary Official Statement and the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent payable from the Net Revenues.
(u) The City is not presently and as a result of the execution of the City Documents and the sale of the Bonds will not be in violation of any debt limitation, appropriation limitation or any other provision of the California Constitution or statutes or any additional debt or similar provision of any bond, note, contract or other evidence of indebtedness to which the City is a party or to which the City is bound.
(v) Based on a review of its previous undertakings, the City has not, in the last five years, failed to comply in any material respect with its obligations under any continuing disclosure undertaking entered into pursuant to Rule 15c2-12 except as disclosed in the Preliminary Official Statement and the Official Statement. The City will undertake, pursuant to the Continuing Disclosure Certificate to provide annual reports and notices of certain events in accordance with the requirements of Rule 15c2-12.
9. The Underwriter has entered into this Purchase Agreement in reliance upon the representations, warranties and agreements of the Authority and the City contained herein, and the opinions of Bond Counsel, Counsel to the Trustee, City Attorney to the City and Counse l to the Authority required hereby. The Underwriter’s obligations under this Purchase Agreement are and shall be subject to the following further conditions:
(a) At the time of Closing, this Purchase Agreement, the Indenture, the Installment Purchase Agreement, and the Continuing Disclosure Certificate (collectively the “ Legal Documents”), all as described in the Preliminary Official Statement and the Official Statement, shall be in full force and effect as valid and binding agreements between or among the various parties thereto, and the Legal Documents and the Official Statement shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter, and there shall be in full force and effect such resolutions as, in the opinion of Stradling Yocca Carlson & Rauth LLP (“Bond Counsel”), shall be necessary in connection with the transactions contemplated hereby. (b) At or prior to the Closing, the Underwriter shall receive the following documents, in each case satisfactory in form and substance to them:
(1) The unqualified approving opinion of Bond Counsel, dated the date of Closing, addressed to the Authority , the City , the Trustee and the Underwriter (or a reliance letter to the Trustee and the Underwriter), in substantially the form attached as Appendix C to the Official Statement.
(2) A supplemental opinion of Bond Counsel, dated as of the date of Closing addressed to the Underwriter, in form and substance to the effect that:
(a) The statements and information contained in the Official Statement on the cover page relating to tax exemption, the description of the Bonds and security for the Bonds, and statements under the captions “INTRODUCTION,” “THE BONDS,” “SECURITY FOR THE BONDS,” “TAX MATTERS ” and
14 APPENDICES B, C and E to the extent they purport to summarize information concerning the Bonds and certain provisions of the Legal Documents and the opinion of such counsel, present a fair and accurate summary of such information and such provisions;
(b) The Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Indenture is exempt from qualification as an Indenture pursuant to the Indenture Act of 1939, as amended; and (c) The Purchase Agreement has been duly authorized, executed and delivered by the Authority and the City, and, assuming due authorization, execution and delivery by the other parties thereto, constitutes legal, valid and binding agreement of the Authority and the City enforceable against each in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and equitable remedies if equitable remedies are sought, and except no opinion need be expressed as to the enforceability of the indemnification, waiver, choice of law or contributions provisions contained in the Purchase Agreement. (3) A letter from Stradling Yocca Carlson & Rauth,
LLP, Disclosure Counsel, dated the date of Closing and addressed to the Authority , the City and the Underwriter, to the effect that, based upon the information made available to them in the course of their participation in the preparation of the Preliminary Official Statement and the Official Statement and without passing on and without assuming any responsibility for the accuracy, completeness and fairness of the statements in the Preliminary Official Statement and the Official Statement, and having made no independent investigation or verification thereof, no facts have come to their attention that lead them to believe that the Preliminary Official Statement as of its date and as of the date of this Purchase Agreement and the Official Statement, as of its date and as of the date of Closing, (except for any CUSIP data, financial or statistical data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion, any appendices thereto (excluding Appendix E - “FORM OF CONTINUING DISCLOSURE CERTIFICATE”), or any information about DTC and its book-entry only system ), as to which no opinion or view need be expressed) contained or contains any untrue statement of a material fact or omitted or omits to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(4) An opinion of Burke, Williams & Sorensen, LL P, as c ounsel to the Authority, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, addressed to the City and the Underwriter, to the effect that:
(i) the Authority is a joint powers authority duly organized and validly existing under the laws of the State of California;
15 (ii) the preparation and distribution of the Preliminary Official Statement and Official Statement and the Authority Documents have been duly approved by the Authority;
(iii) the resolution of the Authority approving the Preliminary Official Statement and approving and authorizing the execution and delivery of the Official Statement and the Authority Documents has been duly adopted at a regular meeting of the governing body of the Authority which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and such resolution has not been amended or modified and is in full force and effect; (iv) to the best knowledge of such firm, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, threatened against or affecting the Authority , which would adversely impact the Authority ’s ability to complete the transactions described in and contemplated by the Preliminary Official Statement and the Official Statement, to restrai n or enjoin the payments under, or in any way contesting or affecting the validity of the Authority Documents, or the transactions described and defined in the Preliminary Official Statement and the Official Statement wherein an unfavorable decision, ruling or finding would adversely affect the validity and enforceability of the Authority Documents;
(v) the execution and delivery of the Authority Documents and the approval of the Preliminary Official Statement and the Official Statement, and compliance with the provisions thereof and hereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the Authority a breach of or default under any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Authority is subject;
(vi) the Authority Documents and the Official Statement have been duly authorized, executed and delivered by the Authority, and, assuming due authorization, execution and delivery by the other parties thereto, the Authority Documents constitute legal, valid and binding agreements of the Authority enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against publi c agencies in the State of California;
(vii) no authorization, approval, consent, or other order of the State of California or any other governmental authority or agency within the State of California is required for the valid authorization, execution and delivery of the Authority Documents and the approval of the Preliminary Official Statement and the Official Statement.
16 (5) An opinion of Burke, Williams & Sorensen, LLP, as City Attorney to the City, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, addressed to the Authority and the Underwriter, to the effect that:
(i) the City is a municipal corporation and charter c ity created in accordance with the laws of the State of California;
(ii) the preparation and distribution of the Preliminary Official Statement and the Official Statement and the City Documents have been duly approved by the City;
(iii) the resolutions of the City approving the Preliminary Official Statement and approving and authorizing the execution and delivery of the Official Statement and the City Documents ha ve been duly adopted at meetings of the governing body of the City which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and such resolutions have not been amended or modified and are in full force and effect;
(iv) to the best knowledge of such firm, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, threatened against or affecting the City, which would adversely impact the City’s ability to complete the transactions described in and contemplated by the Official Statement, to res train or enjoin the payments under, or in any way contesting or affecting the validity of the City Documents, or the transactions described and defined in the Official Statement wherein an unfavorable decision, ruling or finding would adversely affect the validity and enforceability of the City Documents; (v) the execution and delivery of the City Documents and the approval of the Preliminary Official Statement and the Official Statement, and compliance with the provisions thereof and hereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the City is subject;
(vi) the City Documents and the Official Statement have been duly authorized, executed and delivered by the City, and, assuming due authorization, execution and delivery by the other parties thereto, the City Documents constitute legal, valid and binding agreements of the City enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against public agencies in the State of California;
17 (vii) no authorization, approval, consent, or other order of the State of California or any other governmental authority or agency within the State of California is required for the valid authorization, execution and delivery of the City Documents and the approval of the Preliminary Official Statement and the Official Statement;
(viii) the City’s charges and fees with respect to the Water System were duly approved and adopted by the City and are valid and enforceable at the current levels levied by the City.
(6) The opinion of counsel to the Trustee, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, and addressed to the Authority, the City and the Underwriter, to the effect that:
(i) the Trustee is a national banking association duly organized and validly existing under the laws of the United States; (ii) the Trustee has duly authorized the execution and delivery of the Indenture;
(iii) the Indenture has been duly entered into and delivered by the Trustee and assuming due, valid and binding authorization, execution and delivery by th e other parties thereto, constitutes the legal, valid and binding obligation of the Trustee enforceable against the Trustee in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other simi lar laws affecting the enforcement of creditors’ rights generally, or by general principles of equity; (iv) the Trustee has duly authenticated and delivered the Bonds in its capacity as trustee under the Indenture;
(v) acceptance by the Trustee of the duties and obligations under the Indenture and compliance with provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation to which the Trustee is subject; and
(vi) all approvals, consents and orders of any governmental authority or agency having jurisdiction in the matter which would constitute a condition precedent to the performance by the Trustee of its duties and obligations under the Indenture have been obtained and are in full force and effect.
(7) An opinion dated the date of the Closing and addressed to the Underwriter, of Kutak Rock LLP, counsel to the Underwriter (“ Underwriter’s Counsel”), in such form as may be acceptable to the Underwriter. (8) A certificate, dated the date of Closing, signed by a duly authorized official of the Authority satisfactory in form and substance to the Underwriter and Bond Counsel, (a) confirming as of such date the representations and warranties of
18 the Authority contained in this Purchase Agreement; (b) certifying that the Authori ty has complied with all agreements, covenants and conditions to be complied with by the Authority at or prior to the Closing under the Authority Documents; and (c) certifying that to the best of such official’s knowledge, no event affecting the Authority has occurred since the date of the Official Statement which either makes untrue or incorrect in any material respect as of the Closing the statements or information contained in the Official Statement or is not reflected in the Official Statement but shou ld be reflected therein in order to make the statements and information therein not misleading in any material respect. (9) A certificate or certificates, dated the date of Closing, signed by a duly authorized official of the City satisfactory in form and subs tance to the Underwriter and Bond Counsel, (a) confirming as of such date the representations and warranties of the City contained in this Purchase Agreement; (b) certifying that the City has complied with all agreements, covenants and conditions to be com plied with by the City at or prior to the Closing under the City Documents; and (c) certifying that to the best of such official’s knowledge, no event affecting the City has occurred since the date of the Official Statement which either makes untrue or incorrect in any material respect as of the Closing the statements or information contained in the Official Statement or is not reflected in the Official Statement but should be reflected therein in order to make the statements and information therein not misleading in any material respect.
(10) A certificate, dated the date of the Preliminary Official Statement, signed by a duly authorized official of the Authority deeming the Preliminary Official Statement “final” for purposes of Rule 15c2-12.
(11) A certificate, dated the date of the Preliminary Official Statement, signed by a duly authorized official of the City deeming the Preliminary Official Statement “final” for purposes of Rule 15c2-12.
(12) An executed or certified copy of each of the Legal Documents. (13) One counterpart original or copy certified by a duly authorized officer of the City of a complete transcript of all proceedings of the City relating to the approval of the City Documents and the authorization, issuance, sale and delivery of the Bonds, together with a certificate dated as of the date of Closing of a duly authorized officer of the City to the effect that each included resolution is a true, correct and complete copy of the one duly adopted by the Board of Directors of the City and that none have been amended, modified or rescinded since adoption (except as reflected in said transcript or as may have been agreed to in writing by the Underwriter) and is in full force and effect as of the date of Closing. (14) One counterpart original or copy certified by a duly authorized officer of the Authority of a complete transcript of all proceedings of the Authority relating to the approval of the Authority Documents and the authorization, issuance, sale and delivery of the Bonds, together with a certificate dated as of the date of Closing of a duly authorized officer of the Authority to the effect that each included resolution is a true, correct and complete copy of the one duly adopted by the Board of Directors
19 of the Authority and that none have been amended, modified or rescinded since adoption (except as reflected in said transcript or as may have been agreed to in writing by the Underwriter) and is in full force and effect as of the date of Closing. (15) An executed copy of the Official Statement.
(16) A certified copy of the general resolution of the Trustee authorizing the execution and delivery of certain documents by certain officers of the Trustee, which resolution authorizes the execution and delivery of documents such as the Bonds and the Indenture.
(17) A certificate of the City with respect to the Water System evidencing that the insurance required by the Installment Purchase Agreement has been procured and is in full force and effect.
(18) A Tax Certificate of the Authority and the City in form and substance acceptable to Bond Counsel.
(19) A certificate of the Trustee, dated the Closing Date to the effect that:
(i) the Trustee is duly organized and existing as a national banking association in good standing under the laws of the United States, having the full power and authority to acce pt and perform its duties under the Indenture;
(ii) subject to the provisions of the Indenture, the Trustee will apply the proceeds from the Bonds to the purposes specified in the Indenture; (iii) the Trustee has duly authorized and executed the Indenture ; and
(iv) the Trustee has duly authenticated and delivered the Bonds in its capacity as trustee under the Indenture.
(20) Evidence that the Bonds have been given the rating set forth in the Official Statement and that such rating continues in effect as of the date of Closing. (21) A certificate and/or legal opinion as required by each of the respective legal documents for the Parity Obligations regarding the Bonds issued as parity bonds.
(22) Evidence that a federal tax information form 8038-G has been prepared for filing with respect to the Bonds.
(23) A copy of the Notice of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the California Government Code.
(24) Such additional legal opinions, certificates, proceedings, instruments and other documents as Bond Counsel, the Underwriter and Underwriter’s Counsel
20 may reasonably request to evidence compliance with legal requirements, the truth and accuracy, as of the time of Closing, of the representations contained herein and in t he Official Statement and the due performance or satisfaction by the Trustee and the Authority at or prior to such time of all agreements then to be performed and all conditions then to be satisfied.
(c) All matters relating to this Purchase Agreement, the Bonds and the sale thereof, the Legal Documents and the consummation of the transactions contemplated by this Purchase Agreement shall have been approved by the Underwriter, such approval not to be unreasonably withheld.
If the conditions to the Underwriter’s obligations contained in this Purchase Agreement are not satisfied or if the Underwriter’s obligations shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and none of the Underwriter, the City nor the Authority shall have any further obligation hereunder.
10. The Underwriter shall have the right to terminate this Purchase Agreement, without liability therefore, by written notification to the Authority and the City if at any time at or prior to the Closing:
(i) Legislation shall be enacted by or introduced in the Congress of the United States or recommended to the Congress for passage by the President of the United States, or the Treasury Department of the United States or the Internal Revenue Service or favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the United States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, temporary or proposed), press release, statement or other form of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to alter, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds, or the interest on the Bonds as described in the Official Statement, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal income tax consequences of any of the transactions contemplated herein; or (ii) Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary, or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering, or sale of obligations of the general character of the Bonds, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities law as amended and then in effect; or (iii) A general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for
21 trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the Securities and Exchange Commission or any other governmental authority having jurisdiction, the establishment of material restrictions (not in force as of the date hereof) upon trading securities generally b y any governmental authority or any national securities exchange, or any material increase of restrictions now in force (including, with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter); or (iv) A general banking moratorium shall have been established by federal, New York or California authorities; or
(v) A decision by a court of the United States shall be rendered, or a stop order, release, regulation or no-action letter by or on behalf of the SEC or any othe r governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Bonds, including the underlying obligations as contemplated by this Purchase Agreement or by the Offici al Statement, or any document relating to the issuance, offering or sale of the Bonds, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act of 1933, as amended, the Exchange Act of 1934, as amended and the Trust Indenture Act of 1939, as amended; or
(vi) Establishment of any new restrictions in securities materially affecting the free market for securities of the same nature as the Bonds (including the imposition of any limitations on interest rates) or the charge to the net capital requirements of the Underwriter established by the New York Stock Exchange, the Securities and Exchange Commission, any other Federal or state agency or the Congress of the United States, or by Executive Order; or
(vii) A material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or (viii) Any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Authority or the City, its property, income or securities (or interest thereon), or the ability of the City to execute the Installment Purchase Agreement or the Authority to issue the Bonds and pledge the Revenues as contemplated by the Indenture and the Official Statement; or (ix) There shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or
(x) There shall have occurred any materially adverse change in the affairs or financial position, results of operations or condition, financial or otherwise, of the Authority or the City, other than changes in the ordinary course of business or activity or in the normal operation of the Authority or the City, except as described in the Preliminary Official Statement and the Official Statement; or
22 (xi) Any event shall occur or facts are discovered which causes any statement contained in the Official Statement to be materially misleading or results in a failure of the Official Statement to state a material fact necessary in order to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading, provided, however, the Underwriter shall not terminate this Purchase Agreement if prior to the Closing and prior to the distribution of the Official Statement to any public investor the Authority, the City and the Underwriter agree to and shall have amended or supplemented the Official Statement so that the Official Statement as so amended or supplemented will not contain an untrue statement of a material f act or omit to state a material fact necessary in order to make the statements made in the light of the circumstances in which they were made, not misleading, and, in the sole judgment of the Underwriter, such amendment or supplement would not have a material adverse effect on the marketability or market price of the Bonds on the terms and conditions contemplated by this Purchase Agreement or the ability of the Underwriter to enforce contracts with investors for the sale of Bonds; or
(xii) An event described in Section 7(j) or 8(j) hereof shall have occurred which, in the reasonable professional judgment of the Underwriter, requires the preparation and publication of a supplement or amendment to the Official Statement; or (xiii) The marketability of the Bonds or the market price thereof, in the opinion of the Underwriter, has been materially and adversely affected by disruptive events, occurrences or conditions in the securities or debt markets; or (xiv) The suspension by the SEC of the trading in the outstanding bonds of the Authority or the City; or
(xv) Other material disruptive events, occurrences or conditions in the securities or debt markets; or
(xvi) Any rating of the Bonds or other obligations of the Authority or the City by a national rating agency shall have been withdrawn, su spended or downgraded or placed on negative outlook or negative watch.
11. Performance by the Authority and the City of their respective obligations under this Purchase Agreement is conditioned upon (i) performance by the Underwriter of its obligations hereunder, and (ii) receipt by the Underwriter of all opinions and certificates to be delivered at Closing by persons and entities other than the Authority or the City.
12. After the Closing and until the End Date (a) neither the Authority nor the City will adopt any amendment of or supplement to the Official Statement to which the Underwriter shall object in writing or which shall be disapproved by the Underwriter, and (b) if any event relating to or affecting the Bonds, the Authority or the City shall occur as a result of which it is necessary, in the opinion of the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to an initial purchaser of the Bonds, and the Authority will forthwith prepare and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact necessary in
23 order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to an initial purchaser of the Bonds, not misleading. The costs of preparing any necessary amendment or supplement to the Official Statement to be utilized until the End Date shall be borne by the Authority and any costs incurred thereafter incident to amending or supplementing the Official Statement shall be borne by the Underwriter. For the purposes of this Section, the Authority will furnish such information with respect to itself as the Underwriter may from time to time request.
13. The Underwriter shall be under no obligation to pay, and the City or Authority shall pay or cause to be paid out of the proceeds of the Bonds, all expenses incident to the performance of the Authority ’s and City’s obligations hereunder, including but not limited to: the cost of photocopying and delivering the Bonds to the Underwriter; the cost of preparing, printing (and/or word processing and reproducing), distributing and delivering the City Documents and the Authority Documents, and the cost of printing, distributing and delivering the P reliminary Official Statement and the Official Statement in such reasonable quantities as requested by the Underwriter; and the fees and disbursements of Bond Counsel, Disclosure Counsel, the Municipal Advisor, any accountants, financial advisors or other engineers or experts or consultants the Authority or the City have retained in connection with the Bonds and expenses (included in the expense component of the Underwriter’s spread) incurred on behalf of the Authority or City officers or employees which are incidental to implementing this Purchase Agreement, including, but not limited to, meals, transportation, and lodging of those officers or employees. (a) Whether or not the Bonds are delivered to the Underwriter as set forth herein, neither the Authority nor the City shall be under any obligation to pay, and the Authority and City shall not pay, any expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in subsection (a) of this section), including any advertising expenses and the fees of the California Debt and Investment Advisory Commission, the cost of preparation of any “blue sky” or legal investment memoranda , the fees of Digital Assurance Certification, L.L.C. for a continuing disclosure undertaking compliance review and the fees and disbursements of Underwriter’s Counsel.
The Authority and the City acknowledge
that some or all of the expenses to be paid by the Underwriter may be included as part of the expense component of the underwriting discount or may be reimbursed to the Underwriter as out -of-pocket expenses.
14. Any notice or other communication to be given to the Underwriter may be given by delivering the same to Samuel A. Ramirez & Co., Inc., 633 West Fifth Street, Suite 2693, Los Angeles, California 90071 ; Attention: Public Finance. Any notice or other communication to be given to the Authority or the City may be given by delivering the same to addresses initially provided herein, Attention: Executive Director with respect to the Authority and Attention: City Manager with respect to the City. The approval of the Underwriter when required hereunder or the determination of satisfaction as to any document referred to herein shall be in writing signed by the Underwriter and delivered to you.
15. This Purchase Agreement is made solely for the benefit of the Authority, the City and the Underwriter (including the successors or assigns thereof) and no other person shall acquire or have any right hereunder or by virtue hereof.
24 16. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which such counterparts shall together constitute but one and the same instrument.
17. The representations and warranties of the Authority and the City set forth in or made pursuant to this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or stateme nts as to the results of such investigations) concerning such representations and warranties of the Authority and the City and regardless of delivery of and payment for the Bonds.
18. The primary role of the Underwriter, as underwriter, is to purchase the Bonds for resale to investors in an arms -length commercial transaction among the City, the Authority and the Underwriter. The Underwriter, as underwriter, has financial and other interests that differ from those of the Authority and the City.
19. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Authority, the City and the Underwriter, and shall be valid and enforceable as of the time of such acceptance.
20. This Purchase Agreement shall be governed by the laws of the State of California.
This Purchase Agreement shall not be assigned by either party hereto.
21. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds by the Authority and the City and represents the entire agreement of the parties as to the subject matter herein. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
S-1
22. Any provision of this Purchase Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Purchase Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
SAMUEL A. RAMIREZ & CO., INC.
By:
Authorized Officer
The foregoing is hereby agreed to and accepted as of the date first above written:
M
ONTEREY PARK FINANCING
AUTHORITY
By:
Authorized Officer
Time of Execution: _____________ p.m. California time
CITY OF MONTEREY PARK
By:
Authorized Officer
Time of Execution: _____________ p.m. California time
[EXECUTION PAGE OF BOND PURCHASE AGREEMENT – MONTEREY
PARK FINANCING AUTHORITY WATER REVENUE BONDS, SERIES 2024]
Exhibit A
EXHIBIT A
$_______
MONTEREY PARK FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
Maturity
(F
ebruary 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Subject to
Hold-The-
Offering-
Price Rule
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
20__(T)
20__(T)
20__(T)
_________________
(T) Term Bond.
(C) Priced to optional call at [par] on February 1, 20__. * At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement.
Exhibit B
EXHIBIT B
$______
MONTEREY PARK FINANCING AUTHORITY
WATER REVENUE BONDS, SERIES 2024
FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Samuel A. Ramirez & Co., Inc. (“Ramirez ”), hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations (the “Bonds”) based upon the information available to it.
1. Sale of the 10% Maturities. As of the date of this certificate, for each Maturity of the 10% Maturities, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.
2. Initial Offering Price of the Undersold Maturities.
Ramirez offered the Undersold Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this Certificate as Schedule B.
As set forth in the Bond Purchase Agreement, Ramirez has agreed in writing that, for each Maturity of the Undersold Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Offering Period for such Maturity, nor would it permit a related party to do so. Pursuant to such agreement, Ramirez has neither offered nor sold any Maturity of the Undersold Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Offering Period.
3. Defined Terms.
(a) 10% Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “10% Maturities.”
(b) Issuer means Monterey Park Financing Authority.
(c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(d) Offering Period means, with respect to an Undersold Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which Ramirez has sold a Substantial Amount of such Undersold Maturity to the Public at a price that is no higher than the Initial Offering Price for such Undersold Maturity. (e) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.
Exhibit B
The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (f) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is _______, 2024. (g) Substantial Amount means ten percent.
(h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a w ritten contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (i) Undersold Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “Undersold Maturities.”
The Issuer may rely on the statements made herein in connection with making the representations set forth in the Tax Certificate to which this Issue Price Certificate is attached and in its efforts to comply with the conditions imposed by the Internal Revenue Code of 1986, as amended (the “Code”). Stradling Yocca Carlson & Rauth LLP may also rely on this Issue Price Certificate for purposes of its opinion regarding the treatment of interest on the Bonds as excludable from gross income for federal income tax purposes. Except as expressly set forth above, the certifications set forth herein may not be relied upon or used by any third party or for any other purpose.
Notwithstanding anything set forth herein, Ramirez is not engaged in the practice of law.
Accordingly, Ramirez makes no representation as to the legal sufficiency of the factual matt ers set forth herein.
SAMUEL A. RAMIREZ & CO., INC.
By:____________________________________
Name:_________________________________
Dated: ______, 2024
SCHEDULE A
SALE PRICES OF THE ACTUALLY SOLD MATURITIES AND
INITIAL OFFERING PRICES OF THE OFFERED MATURITIES
(To Be Attached)
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
(To Be Attached)
Staff Report
April 17, 2024
ATTACHMENT 5
Authority Resolution
Stradling Yocca Carlson & Rauth
Draft of March 30, 2024
4885-8977-1368v3/022483-0008
RESOLUTION NO. MPFA-____
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MONTEREY PARK
FINANCING AUTHORITY APPROVING THE SALE OF ITS WATER REVENUE BONDS, SERIES 2024, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $ 22,000,000 AND APPROVING THE EXECUTION AND DELIVERY
OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH AND CERTAIN
OTHER MATTERS
WHEREAS, the Monterey Park Financing Authority (the “ Authority”), a public entity that is duly organized and existing under a joint exercise of powers agreement and under the Constitution and laws of the State of California (the “State”), has the powers, among others, to issue bonds and to finance water facilities on behalf of its members pursuant to Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State, including but not limited to Article 4 thereof, known as the “Marks -Roos Local Bond Pooling Act of 1985,” Government Code Section 6584 et seq. (the “Act”);
WHEREAS, the City of Monterey Park (the “City”), a municipal corporation that is duly organized and existing under the general laws of the State, and a member of the Authority, desires to finance the acquisition and construction of certain existing improvements, betterments, renovations and expansions of facilities within its water system (collectively, the “2024 Project”); WHEREAS, the Board of Directors of the Authority (the “Board”) has determined that it is desirable to issue its Water Revenue Bonds, Series 2024 (the “Bonds”) in an aggregate principal amount not to exceed $22,000,000 to assist the City in financing the 2024 Project; WHEREAS, the Bonds are to be secured by installment payments to be made by the City pursuant to an Installment Purchase Agreement (the “Installment Purchase Agreement”), by and between the City and the Authority, which installment payments will be payable from net revenues of the City’s water system;
WHEREAS, the Board has determined that it is in the best interest of the Authority to enter into the Installment Purchase Agreement with the City, and to approve certain other documents; WHEREAS, the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), desire to enter into an Indenture of Trust (the “Indenture”), to provide for the issuance and security of the Bonds;
WHEREAS, pursuant to the Indenture, the Authority will assign to the Trustee the installment payments payable under the Installment Purchase Agreement; and WHEREAS, the Authority desires to execute and deliver a bond purchase agreement (the “Purchase Contract”) with the City and Samuel A. Ramirez & Co., Inc., as underwriter of the Bonds (the “Underwriter”), with respect to the Bonds;
WHEREAS, in order to effect a public sale of the Bonds to the Underwriter, the Authority is required under federal securities laws and regulations to prepare a preliminary official statement (the “Preliminary Official Statement”) disclosing material information about the Bonds, the City, the 2024 Project and the City’s water system; and
4885-8977-1368v3/022483-0008
WHEREAS, the Authority wishes to approve the Preliminary Official Statement for the Bonds, which has been prepared by the City and the Authority with the assistance of Stradling Yocca Carlson & Rauth LLP as disclosure counsel (“Disclosure Counsel”).
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Monterey Park Financing Authority as follows:
Section 1: R ecitals. The Board hereby specifically finds and declares that each of the statements, findings and determinations of the Authority that are set forth in the above recitals and in the preambles of the documents that are approved herein are true and correct and that: (a) the financing of the 2024 Project will result in significant public benefits to the citizens of the City of the type that is described in Section 6586 of the Act, in that having the Authority assist the City with respect to the financing of the 2024 Project through the issuance of the Bonds and related transactions will result in demonstrable savings in effective interest rate to the City and more efficient delivery of local agency services to residential and commercial development; and (b) the 2024 Project includes facilities for the production, storage, transmission or treatment of water within the meaning of Section 6586.5(c) of the Act.
The Board hereby authorizes the preparation, sale and delivery of the Bonds in accordance w
ith the terms and provisions of the Indenture in an aggregate principal amount (not in excess of $22,000,000) that is deter mined by the Executive Director (which shall be the City Manager of the City) or the Treasurer (which shall be the Director of Finance of the City), together with other available funds, as being necessary: (a) to finance the 2024 Project; (b) to pay the costs of issuing the Bonds; and (c) to establish a reserve fund for the Bonds.
Section 2: F orm of Bonds. The form of the Bonds, as set forth in the form of the Indenture (as the Indenture may be modified pursuant hereto), is hereby approved; and the Chair or the Executive Director of the Authority and the Secretary of the Authority are hereby authorized and directed to execute the Bonds by manual or facsimile signature in the name and on behalf of the Authority. The Authorized Authority Representatives (defined below) are authorized to change the name and series designation of the Bonds as appropriate to reflect the year of issuance and the use of the proceeds of the Bonds.
Section 3: In
stallment Purchase Agreement. The Installmen t Purchase Agreement is hereby approved in substantially the form on file with the Secretary and, upon execution as authorized below, made a part hereof as though set forth in full herein. The Chair, Vice Chair, Executive Director, Treasurer or Secretary of the Authority (each, an “Authorized Authority Representative”) or the designee thereof is hereby authorized and directed to execute and deliver such Installment Purchase Agreement with such changes, insertions and omissions as may be recommended by General Counsel or Stradling Yocca Carlson & Rauth LLP as bond counsel (“Bond Counsel”) and approved by the officer executing the same, said execution being conclusive evidence of such approval.
Section 4: I nde
nture. The Indenture is hereby approved in substantially the form on file with the Secretary and, upon execution as authorized below, made a part hereof as though set forth in full herein. Each Authorized Authority Representative or the designee thereof is hereby authorized and directed to execute and deliver such Indenture with such changes, insertions and omissions as may be recommended by General Counsel or Bond Counsel and approved by the officer executing the same, said execution being conclusive evidence of such approval.
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Section 5: Purchase Contract . The Purchase Contract is hereby approved in substantially the form on file with the Secretary and, upon execution as authorized below, made a part hereof as though set forth in full herein. Each Authorized Authority Representative or the designee thereof is hereby authorized and directed to execute and deliver such Purchase Contract with such changes, insertions and omissions as may be recommended by General Counsel or Bond Counsel and approved by the officer executing the same, said execution b eing conclusive evidence of such approval; provided, however, that in no event shall the aggregate principal amount of the Bonds exceed $22,000,000, nor shall the underwriting discount for the Bonds (excluding any net original issue discount) exceed 1.15% of the aggregate principal amount of the Bonds, nor shall the all-in true interest cost of the Bonds exceed 4.75%.
Section 6: Pr
eliminary Official Statement. The preparation and distribution of the Preliminary Official Statement in substantially the form on file with the Secretary is hereby approved.
Each Authorized Authority Representative is hereby authorized: (i) to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the “Rule”) deeming the Preliminary Official Statement substantially final under the Rule, except for the omission of information as permitted by the Rule; and (ii) to execute, approve and deliver the final Official Statement substantially in the form of the Preliminary Official Statement with such changes, insertions and omissions as the officer or officers executing said document may require or approve, subject to advice from the General Counsel or Disclosure Counsel, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is directed to deliver copies of the final Official Statement to all actual initial purchasers of the Bonds.
Section 7: P roc
eeds. The proceeds of the Bonds shall be deposited as provided in the Indenture and the Installment Purchase Agreement to finance the 2024 Project.
Section 8: T rus tee. The appointment of U.S. Bank Trust Company, National Association, as Trustee under and pursuant to the Indenture, with the powers and duties of said office as set forth therein, is hereby approved.
Section 9: Bond Ins
urance. The Board hereby authorizes the Executive Director or her designee: (i) to solicit bids on a municipal bond insurance policy and/or reserve surety; (ii) to negotiate the terms of such policy or policies; (iii) to finalize, if appropriate, the form of such policy or policies with a municipal bond insurer; and (iv) if it is determined that the policy or policies will result in net debt service savings on the Bonds, to pay the insurance premium of such policy or policies from t he proceeds of the issuance and sale of the Bonds.
Section 10: Ot
her Acts. The Authorized Authority Representatives or any other proper officer of the Authority, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Indenture, the Installment Purchase Agreement, the Purchase Contract, bond insurance, a reserve surety and this Resolution, including any reimbursement agreement or other agreement related to bond insurance or a reserve surety. In the event that the Chair and Vice Chair of the Board are unavailable to sign any of the agreements described herein, any other member of the Board may sign such agreement.
Section 11: G
ood Faith Estimates. The good faith estimates of costs related to the Bonds which are required by Section 5852.1 of the California Government Code are disclosed in Exhibit A hereto and are available to the public at the meeting at which this Resolution is approved.
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Section 12: Definitions. Unless otherwise defined herein, all terms that are used herein and not otherwise defined shall have the meanings given to such terms in the Indenture unless the context otherwise clearly requires.
Section 13: Ef fective Date. This Resolution shall take effect from and after the date of its passage and adoption.
Section 14: C ertification. The Secretary shall certify to the passage and adoption hereof.
ADOPTED by the Authority and signed by the Chair and attested by the Secretary this 17th day of April, 2024.
Thomas Wong, Chair
Attest:
Maychelle Yee, Secretary
I, Maychelle Yee, Secretary of the Monterey Park Financing Authority, do hereby certify that the foregoing Resolution No. MPFA -____ was duly and regularly adopted by the Board of the Monterey Park Financing Authority at a meeting held on the 17th day of April, 2024, by the following vote:
Ayes: Council Members:
Nays: Council Members:
Absent: Council Members:
Abstain: Council Members:
Dated this ___ day of April, 2024.
Maychelle Yee, Secretary
Monterey Park Financing Authority
4885-8977-1368v3/022483-0008
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the Authority by Urban Futures, Inc. (the Authority’s “Municipal Advisor”) in consultation with Samuel A. Ramirez & Co., Inc., the Underwriter of the Bonds.
Principal Amount. The Municipal Advisor has informed the Authority that, based on the Authority’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $19,385,000 (the “Estimated Principal Amount”), which excludes approximately $1,880,593 of net premium estimated to be generated based on current market conditions, which together total $21,265,593. Net premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for the bonds is higher than the face value of such bonds.
True Interest Cost of the Bonds. T h
e Municipal Advisor has informed the Authority that,
assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.28%.
Finance C harg
e of the Bonds. The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is approximately $665,593.
Amount of Proceeds to be Received. The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $20,600,000.
Total Payment Amount. The
Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City w ill make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds, calculated to the final maturity of the Bonds, is approximately $37,342,649.
The foregoing estimates constitute good faith estimates only. The actual principal amount of t
he Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the Estimated Principal Amount; (c) the actual amortization of the Bonds being different than the
4885-8977-1368v3/022483-0008
amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the Authority’s financing plan, delays in the financing, additional legal work or a combination of such factors and additional finance charges, if any, attributable thereto. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the Authority based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the Authority.
Staff Report
April 17, 2024
ATTACHMENT 6
City Resolution
Stradling Yocca Carlson & Rauth
Draft of March 30, 2024
4890-4301-8344v3/022483-0008
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEREY PARK
APPROVING THE EXECUTION AND DELIVERY OF AN INSTALLMENT
PURCHASE AGREEMENT FOR THE PURPOSE OF CAUSING THE ISSUANCE OF NOT TO EXCEED $ 22,000,000 AGGREGATE PRINCIPAL AMOUNT OF WATER REVENUE BONDS, SERIES 2024, AND APPROVING THE
EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION
THEREWITH AND CERTAIN OTHER MATTERS
WHEREAS, the City Council (the “City Council”) of the City of Monterey Park (the “City”), a municipal corporation that is duly organized and existing under the general laws of the State of California (the “State”), wishes to finance the acquisition and construction of certain improvements, betterments, renovations and expansions of facilities within its water system (collectively, the “ 2024 Project”);
WHEREAS, the City is a member of the Monterey Park Financing Authority (the “Authority”), a public entity that is duly organized and existing under a joint exercise of powers agreement and under the Constitution and laws of the State;
WHEREAS, the Authority has agreed to issue its Water Revenue Bonds, Series 2024 (the “Bonds”) to assist the City in financing the 2024 Project; WHEREAS, the Bonds are to be secured by installment payments to be made by the City pursuant to the Installment Purchase Agreement, which installment payments will be payable from net revenues of the City’s water system to the extent set forth in the Installment Purchase Agreement; WHEREAS, the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), will enter into an Indenture of Trust (the “Indenture”), to provide for the issuance and security of the Bonds;
WHEREAS, the City desires to execute a Continuing Disclosure Certificate, to be dated the closing date of the Bonds (the “Continuing Disclosure Certificate ”), in order to provide updates of certain information relating to the City and its water system while the Bonds are outstanding; WHEREAS, the City desires to execute and deliver a bond purchase agreement (the “Purchase Contract”) with the Authority and Samuel A. Ramirez & Co., Inc., as underwriter of the Bonds (the “Underwriter”), with respect to the Bonds;
WHEREAS, in order to effect a public sale of the Bonds to the Underwriter, the City is required under federal securities laws and regulations to prepare a preliminary official statement (the “Preliminary Official Statement”) disclosing material information about the Bonds, the City and the City’s water system; and
WHEREAS, the City wishes to approve the Preliminary Official Statement for the Bonds, which has been prepared by the City and the Authority with the assistance of Stradling Yocca Carlson & Rauth LLP as disclosure counsel (“Disclosure Counsel”).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Monterey Park as follows:
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Section 1: Recitals. The City Council hereby specifically finds and declares that each of the statements, findings and determinations of the City Council that are set forth in the above recitals and in the preambles of the documents that are approved herein are true and correct and that: (a) the financing of the 2024 Project will result in significant public benefits to the citizens of the City of the type that is described in Section 6586 of the Marks-Roos Local Bond Pooling Act of 1985 (the “Act”), in that having the Authority assist the City with respect to the financing of the 2024 Project through the issuance of the Bonds and related tra nsactions will result in demonstrable savings in effective interest rate to the City and m ore efficient delivery of local agency services to residential and commercial development; and (b) the 2024 Project include s facilities for the production, storage, transmission or treatment of water within the meaning of Section 6586.5(c) of the Act.
Section 2: In stallment Purchase Agreement. The Installment Purchase Agreement is hereby approved in substantially the form on file with the City Clerk and, upon execution as authorized below, made a part hereof as though set forth in full herein. The Mayor, the Mayor Pro Tem, the City Manager, the Director of Public Works and the Director of Finance (each, a “Designated Officer”) or the designee thereof are hereby authorized and directed to execute and deliver such Installment Purchase Agreement with such changes, insertions and omissions as may be recommended by the City Attorney or the law firm of Stradling Yocca Carlson & Rauth LLP (“Bond Counsel”), and approved by the officer executing the same, said execution being conclusive evidence of such approval.
Section 3: Cont i
nuing Disclosure Certificate. The Continuing Disclosure Certificate is hereby approved in substantially the form on file with the City Clerk and, upon execution as authorized below, made a part hereof as though set forth in full herein. Each Designated Officer or the designee thereof is hereby authorized and directed to execute and deliver such Continuing Disclosure Certificate with such changes, insertions and omissions as may be recommended by the City Attorney or Disclosure Counsel and approved by the officer executing the same, said execution being conclusive evidence of such approval.
Section 4: P urc
hase Contract. The Purchase Contract is hereby approved in substantially the form on file with the City Clerk and, upon execution as authorized below, made a part hereof as though set forth in full herein. Each Designated Officer or the designee thereof is hereby authorized and directed to execute and deliver such Purchase Contract with such changes, insertions and omissions as may be recommended by the City Attorney or Bond Counsel and approved by the officer executing the same, said execution being conclusive evidence of such approval; provided, however, that in no event shall the aggregate principal amount of the Bonds exceed $22,000,000, nor shall the underwriting discount for the Bonds (excluding any net original issue discount) exceed 1.15% of the aggregate principal amount of the Bonds, nor shall the true interest cost of the Bonds exceed 4.75%.
Section 5: Pr
eliminary Official Statement. The preparation and distribution of the Preliminary Official Statement in substantially the form on file with the City Clerk is hereby approved.
Each Designated Officer is hereby authorized: (i) to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the “Rule”) deeming the Preliminary Official Statement substantially final under the Rule, except for the omission of information as permitted by the Rule; and (ii) to execute, approve and deliver the final Official Statement in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as the officer or officers executing said document may require or approve, subject to advice from the City Attorney or Disclosure Counsel, such approval to be conclusively evidenced by the execution and delivery thereof.
The Underwriter is directed to deliver copies of the final Official Statement to all actual initial purchasers of the Bonds.
3 4890-4301-8344v3/022483-0008
Section 6: Proceeds . The proceeds of the Bonds shall be deposited as provided in the Indenture and the Installment Purchase Agreement to finance the 2024 Project.
Section 7: T rus tee. The appointment of U.S. Bank Trust Company, National Association as Trustee under and pursuant to the Indenture, with the powers and duties of said office as set forth therein, is hereby approved.
Section 8: Bond Ins urance. The City Council hereby authorizes the City Manager or her designee: (i) to solicit bids on a municipal bond insurance policy and/or reserve surety; (ii) to negotiate the terms of such policy or policies; (iii) to finalize, if appropriate, the form of such policy or policies with a municipal bond insurer; and (iv) if it is determined that the policy or policies will result in net savings for the City, to pay the insurance premium of such policy or policies from the proceeds of the issuance and sale of the Bonds.
Section 9: Oth
er Acts. The Designated Officers or any other proper officer of the City, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Indenture, the Installment Purchase Agreement, the Purchase Contract, the Continuing Disclosure Certificate , bond insurance, a reserve surety and this Resolution, including any reimbursement agreement or other agreement related to bond insurance or a reserve surety. In the event that the Mayor or the Mayor Pro Tem of the City are unavailable to sign any of the agreements described herein, any other member of the City Council may sign such agreement and, in the event that the City Clerk is unavailable or unable to attest or to deliver any of the above -referenced documents, any deputy clerk may validly execute and deliver such document.
Section 10: G
ood Faith Estimates. The good faith estimates of costs related to the Bonds which are required by Section 5852.1 of the California Government Code are disclosed in Exhibit A hereto and are available to the public at the meeting at which this Resolution is approved.
Section 11: D
efinitions. Unless otherwise defined herein, all terms used herein and not otherwise defined shall have the meanings given such terms in the Indenture unless the context otherwise clearly requires.
Section 12: E f
fective Date. This Resolution shall take effect from and after the date of its passage and adoption.
Section 13: C ertification. The City Clerk shall certify to the passage and adoption hereof.
ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 17th day of April, 2024.
Thomas Wong
Mayor of the City of Monterey Park
Attest:
4 4890-4301-8344v3/022483-0008
Maychelle Yee
City Clerk of the City of Monterey Park
I, Maychelle Yee, City Clerk of the City of Monterey Park, California, hereby certify that the foregoing Resolution No. ____ was duly and regularly adopted by the City Council of the City of Monterey Park at a meeting held on the 17th day of April, 2024, by the following vote, to wit:
Ayes: Council Members:
Nays: Council Members:
Absent: Council Members:
Abstain: Council Members:
Dated this ___ day of April, 2024.
Maychelle Yee
City Clerk of the City of Monterey Park
A-1
4890-4301-8344v3/022483-0008
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the City by Urban Futures , Inc. (the City’s “Municipal Advisor”) in consultation with Samuel A.
Ramirez & Co., Inc., the Underwriter of the Bonds.
Principal Amount. The Municipal Advisor has informed the Authority that, based on the Authority’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $19,385,000 (the “Estimated Principal Amount”), which excludes approximately $1,880,593 of net premium estimated to be generated based on current market conditions, which together total $21,265,593. Net premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for the bonds is higher than the face value of such bonds.
True Interest Cost of the Bonds. T h
e Municipal Advisor has informed the Authority that,
assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.28%.
Finance Charge of the Bonds. T he Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is approximately $665,593.
Amount of Proceeds to be Received. The
Municipal Advisor has informed the Authority that,
assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $20,600,000.
Total Payment Amount. The
Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds, calculated to the final maturity of the Bonds, is approximately $37,342,649.
The foregoing estimates constitute good faith estimates only. The actual principal amount of t
he Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the Estimated Principal Amount; (c) the actual amortization of the Bonds being different than the
A-2
4890-4301-8344v3/022483-0008
amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the City’s financing plan, delays in the financing, additional legal work or a combination of such factors and additional finance charges, if any, attributable thereto. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof.
Market interest rates are affected by economic and other factors beyond the control of the City.
DATE: April 17, 2024
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Jessica Serrano, Director of Community Development SUBJECT: Adoption of the Monterey Park Sustainability Plan RECOMMENDATION:
It is recommended that the City Council consider:
1. Adopting Resolution No. to adopt the Monterey Park Sustainability Plan (the “Plan”); and
2. Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
The City reviewed the environmental impacts of the proposed Resolution pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”). CEQA Guidelines §§ 15060(c)(2), 15061(b)(3), 15378, and 15308 exempt activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, activities where there is possibility that it may have a significant effect on the environment, activities that do not constitute a “project” as defined, and actions to protect the environment, respectively. Thi s activity is for general policies and procedure -making intended to promote environmental sustainability and protect the environment. Any subsequent construction or development will be evaluated separately under the CEQA Guidelines. Accordingly, this Resol ution is exempt from further review.
EXECUTIVE SUMMARY:
The Plan outlines a comprehensive strategy aimed at fostering environmental stewardship and resilience within our community, aligning with California’s goals to combat climate change. The Plan suggests actions for individuals to enhance their sustainable practices while identifying strategic policies for City implementation. Through a collaborative effort between stakeholders and City officials, the Plan announces the City’s commitment to mitigating emissions and advancing towards a greener future.
Through the collaborative efforts of the Green Team which included a CivicSpark1 fellow retained to lead this effort and various City employees/officials, the City prepared a draft Resolution and the Plan (contained in Attachments 1 and 2) for City Council 1 CivicSpark website (2024): http:www.civicspark.civicwell.org.
City Council Staff Report
Old Business - 2B
Staff Report
April 17, 2024
consideration. A draft of the Plan was made available for public review between February 8 through 29, 2024. Public outreach was conducted during this period to solicit input and comments. The Implementation Program, contained in Attachment 3, is included as informational only and will guide the City’s implementation actions should the Plan be adopted.
BACKGROUND:
Timeline and Green Team
The City Council identified climate change mitigation and adaptation as Strategic Planning goals in 2022 and 2023. Taking direction from City Council, the City launched a “Going Green” campaign in 2022 to engage and mobilize the community to address climate change and develop a Plan to help Monterey Park become more sustainable.
Below is a timeline of the various actions that have transpired as part of the Going Green campaign:
2022 2023 2024
September-
October
November -
February
March April-
August
September-
November
December-
April
Create
Green
Team
Develop
Outreach
Campaign
Launch
Community
Outreach
Campaign &
Sustainability
Survey
Present
Outreach
Results to
City
Council
GHG
Inventory
Development
of
Policies/Plan
Department
Revisions &
Approval
Joint
ENV/PC
Meeting
Public
Review
Period
Adoption
Outreach
Community engagement and outreach was at the core of the work that went into the development of the Plan. A total of eight workshops were held throughout the City to inform the community about the City’s sustainability efforts and to obtain input on priorities and initiatives for the City. Additional outreach included a survey which generated 543 responses. The Going Green campaign was promoted at City Council meetings, Planning Commission meetings, Environmental Commission meetings, Farmer’s Market, Star Parties, Monster Mash, Holiday Snow Village, Lunar New Year, Cherry Blossom Festival, and events at the Langley Center. The City utilized various media outlets to promote the Going Green campaign translated into various languages, including Cascades, City’s social media accounts, news releases, email blasts, and flyers at public bulletins at City Hall, Bruggemeyer Library, and Langley Center.
Staff Report
April 17, 2024
A draft of the Plan was made available for public review between February 8 through 29, 2024. Targeted outreach was conducted during this period to solicit input and comments received were incorporated into the Plan.
Framework and Technical Work
The Sustainability Plan was developed based on the Local Governments for Sustainability (ICLEI) pathways including low emission, nature -based, equitable, resilient, and circular development. The pathways provide a framework for designing integrated solutions that balance the patterns of human activity and the built and natural environments as depicted in the image below:
Each pathway presents high-level strategies and recommended policies to support those pathways as follows:
Staff Report
April 17, 2024
Technical support for the Plan is demonstrated in a greenhouse gas (GHG) emissions inventory used to develop strategies, policies and actions aimed at addressing the largest sources of emissions within the City. This GHG emissions inventory is a technical appendix within the Plan.
Implementation Program
Maintained in a separate document, the Implementation Program was developed to provide specific actionable items that will result in measurable reductions in GHG emissions during implementation. Information included in the Implementation Program includes lead departments, cost ra nge estimates, and timeframes for each action. This document is intended to guide implementation of the Plan and is a working document that may change as action items are completed, added or modified to track GHG emission reductions.
Implementation of the Plan may require additional resources such as technical support, funding for capital improvements, program development, increased staffing, and regulatory compliance.
2023-2024 STRATEGIC PLAN GOAL:
The development and adoption of the Monterey Park Sustai nability Plan meets the City Council’s sustainability strategic plan goal because this Plan promotes sustainable practices while mitigating and adapting to climate change impacts.
FISCAL IMPACT:
The adoption of the Monterey Park Sustainability Plan does n ot incur immediate fiscal costs. Future implementation of programs requiring funding will be budgeted in the appropriate fiscal year.
Staff Report
April 17, 2024
Respectfully submitted by: Prepared by:
Jessica Serrano
Director of Community
Development
Olivia Williams
CivicSpark Fellow
Reviewed by:
Martha Garcia
Director of Finance
Approved by: Reviewed by:
Inez Alvarez
City Manager
Karl H. Berger
City Attorney
ATTACHMENTS:
1. Resolution, incorporating by reference the Monterey Park Sustainability Plan
2. Implementation Program
3. Notice of Exemption
Staff Report
April 17, 2024
ATTACHMENT 1
Resolution, Incorporating by Reference the
Monterey Park Sustainability Plan
RESOLUTION NO.
A RESOLUTION ADOPTING THE MONTEREY PARK SUSTAINABILITY
PLAN
BE IT RESOLVED by the Council of the City of Monterey Park as follows:
SECTION 1. The City Council finds as follows:
A. In 2022 and 2023, the City Council directed the City Manager to draft a plan to mitigate the effects of climate change within the City of Monterey Park.
B. Following extensive public outreach, a plan entitled “the Monterey Plan Sustainability Plan” (the “Plan”) was crafted to promote sustainable practices within the City to help adjust to, and mitigate, the effects of climate change. The Plan, dated April 17, 2024, is available at https://www.montereypark.ca.gov/DocumentCenter/View/16046/Sustainab ility-Plan-4-10-2024 and incorporated into this Resolution by reference as if fully set forth.
C. Among other things, the programs and actions within the Plan are intended to align with California’s goals to reduce greenhouse gas (GHG) emissions to 40% below 1990 levels by 2030 and carbon neutrality by 2045.
D. T he City Planner reviewed the Project’s environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the “CEQA Guidelines”).
E. This Resolution and its findings are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its March 26, 2024 meeting including the written staff report submitted by the City Planner.
SECTION 2. Environmental Assessment. The City reviewed the environmental impacts of the proposed Resolution pursuant to CEQA and the CEQA Guidelines. CEQA Guidelines §§ 15060(c)(2), 15061(b)(3), 15378, and 15308 exempt activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, activities where there is possibility that it may have a significant effect on the environment, activities that do not constitute a “project” as defined, and actions to protect the environment, respectively. This activity is for general policies and procedure- making intended to promote environmental sustainability and protect the environment.
Any subsequent construction or development will be evaluated separately under the CEQA Guidelines. Accordingly, this Resolution and the Plan are exempt from further
Resolution No.
review.
SECTION 3. Approval. The City Council adopts the Plan as dated March 26, 2024. The City Manager is authorized to promulgate administrative policies and procedures, in a form approved by the City Attorney, to implement the Plan. Any substantive changes to the Plan will require additional City Council consideration and approval.
SECTION 4. Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable.
SECTION 5. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5 and Monterey Park Municipal Code § 3.95.030. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. Recordation. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Monterey Park and the City Clerk, or her duly appointed deputy, may attest thereto.
SECTION 7. Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this ___ day of ______________, 2024.
________________________________
Thomas Wong, Mayor
Attest:
__________________________
Maychelle Yee, City Clerk
Approved as to Form:
__________________________
Karl H. Berger, City Attorney
SUSTAINABILITY PLAN
C I T Y O F M O N T E R E Y P A R K
April 2024
320 W Newmark Ave
Monterey Park, CA 91754
www.montereypark.ca.gov
Adopted _____
Resolution No. _________
Monterey Park City Council
Council Member Lo
Council Member Ngo
Council Member Sanchez
Council Member Wong
Council Member Yiu
City of Monterey Park Staff Green Team
Angela Loera
Beth Chow
Cristina Garcia
Izzy Flores
Jessica Serrano
Laura Borjon
Megan Cheung
Michael Le
Xochitl Tipan
CivicWell
Olivia Williams
Rincon Consultants
Hannah Mize
Nico Kent
Reema Shakra
District 4
District 5
District 3
District 1
District 2
Principal Management Analyst (Fire)
Senior Planner
Administrative Aide
Monterey Park Police Corporal
Director of Community Development
Financial Services Manager
Economic Development Senior Clerk Typist
Library Technician
Principal Management Analyst (Public Works)
CivicSpark Fellow
Sustainability Project Manager
Sustainability Planner & Climate Analyst
Climate Adaptation Program Manager
The City of Monterey Park would like to acknowledge those who supported and helped create the Monterey Park Sustainability Plan:
1 10
16 24
31 34
37 41
47 54
Purpose
The Monterey Park Sustainability Plan reflects the City's commitment to reducing greenhouse gas (GHG) emissions and addressing challenges associated with climate change as we strive to build sustainable practices that support future generations. The Sustainability Plan is an informative document that proposes a number of policies intended to influence the City’s decisions with the goal of reducing emissions in the near-term by engaging the community in climate action. The plan identifies current sustainable projects and programs while outlining policies that will help to achieve the most significant improvements in GHG reduction. Additionally, the plan provides resources for Monterey Park residents to take action at home that will reduce their own emissions and sustain our natural resources in their day-to-day life.
Implementation of this Plan will help the community to utilize strategies that support local economic development, improve quality of life, lower energy costs, and protect natural resources.
1
Monterey Park’s Commitment to Sustainability
Monterey Park was the first city in the San Gabriel Valley to create an Environmental Commission in 2005 to develop and implement policies and increase public awareness of environmental programs. On December 13, 2012, the City received the Green Leadership Award from the San Gabriel Valley Energy Wise Partnership (SGVEWP) as the first City in the San Gabriel Valley to adopt a full Climate Action Plan (CAP).¹ Monterey Park supported the strategies of the CAP by adopting the Healthy and Sustainable Community Elements of the City's General Plan in 2014. This Sustainability Plan builds upon these strategies by recommending specific policies and programs.
Monterey Park has been working on sustainable projects and programs since the early 2000s. Over the past two decades, the City has continued taking strides in sustainable action to benefit our environment, economy, and community members. Highlighted in Figure 1 are a few of the actions Monterey Park has taken to decrease emissions and implement sustainable practices. 2 2
Moving Towards the State’s Goals
The strategies, policies, and supporting actions in this plan were developed to further Monterey Park's efforts towards California’s ambitious emission reduction goals. California law seeks to reduce GHG emissions to 40% below 1990 levels by 2030 and carbon neutrality by 2045 as codified by AB 1279 (2022). This Plan will build upon existing work the City has been putting in for the past several decades to further reduce emissions and move towards the State’s goals. However, more work is needed to effectively reach both targets, and it is anticipated that the Plan will be reviewed and updated as new solutions become available. Future iterations of the Plan may outline additional ways to meet the 2030 and 2045 emission reduction targets as new technologies and solutions become available. Continued progress will require a community-wide commitment at all levels to work towards the goals established by the State and make the necessary adjustments identified through regularly monitored progress.
1. https://www.businesslife.com/articles.php?id=2402
2023
2020
Adopted a Water Conservation
ordinance
Upgraded parking enforcement
fleet to EV
Retrofitted streetlights with LED
bulbs
Added three full service CNG
buses to Spirit Bus fleet
Provided educational
environmental & recycling
programming to MPK schools
through EcoHero
Renovated Monterey Park
Demonstration Garden
Installed EV chargers at City Hall
Implemented industrial waste
program
2016
Retrofitted City facilities with LED
lightings & HVAC systems
Started community compost
giveaways with Athens
Installed compressed natural gas
(CNG) fuel station at City Yard
Replaced Water Admin City car
with EV
2014
2022
Resurfaced City streets with
recycled vehicle tires
Began instillation of solar panels
at Bruggemeyer Library and
Langley Senior Center
Participated in the SGVCOG Food
Recovery Program
Updated Density Zoning
Ordinance to include Green
Building Incentive
Citywide Sidewalk Improvement
Project to Improve Walkability
Began Tree Master Plan
Development
2019
2018
2017
2015
Adopted Healthy & Sustainable
Community Elements to the
General Plan
Retrofitted pumps at Barnes Park
& George Elder Park Pools
Established Going Green Program
Conducted Sustainability Survey
Hosted community workshops on
climate change & sustainability
2021
Figure 1. Monterey Park Sustainable Milestones: Highlighting Key Actions 2024: Looking Ahead
City Council will consider adoption
of a Sustainability Plan
3
Strategies
Aspirational statements regarding future achievements for key sectors.
Policies
Policies developed to achieve GHG reductions or
sustainable improvements.
Pathway Categorizes strategies and policies to ensure a holistic approach to climate change mitigation and adaptation.
Circular
Development
Resilient
Development
Equitable
Development
Nature-Based
Development
Low Emission
Development
Plan Organization
Figure 2. ICLEI Sustainable Development Pathway Framework Figure 3. Pathway, Strategy, and Policy Structure
The Monterey Park Sustainability Plan takes a
holistic and integrated approach by building on a
framework developed by Local Governments for
Sustainability (ICLEI). The framework defines five
pathways to guide integrated solutions that balance
the patterns of human life with the built and natural
environment. The following pathways organize the
strategies and policies that will allow sustainable
practices to be integrated into the Monterey Park
community.
Maintained in a separate document, the
Implementation Program includes specific
implementation measures and actions, to be led by
the City, which will contribute to the strategies and policies identified in the Sustainability Plan. The
Implementation Program also identifies the
responsible department/agency, potential funding
sources, additional resources such as model
programs or potential partners, and timeframe for
implementation.
4
Community Perception of Climate Change and Sustainability The City conducted outreach through the Going Green Campaign, which included a Sustainability Survey, booths at City events, and workshops that provided opportunities for community members to provide input on the Sustainability Plan. The Sustainability Survey was available in English, Spanish, and Chinese is both digital and physical formats. Over 540 community members responded to the survey and provided 194 written comments. The survey responses provided the following snapshot of the community's understanding of climate change, sustainability issues, and actions they can take in their daily lives.
While the majority of survey respondents agree or strongly agree that the City needs to take action to mitigate climate change and know how to take action at home, far fewer are knowledgeable of city, county, and state programs available to help them live sustainably. Even fewer respondents are familiar with the City's climate action efforts. This provides a strong case for the City to dedicate time and resources to outreach efforts, ensuring that all City residents have access to the knowledge and resources they need to improve their sustainable practices. The demand for learning opportunities around climate change mitigation and sustainability is very high throughout the community, as over 70% of survey respondents agree or strongly agree that they want more opportunities to learn about sustainable programs available to them.
This plan highlights several of the key programs Monterey Park residents can utilize to learn about sustainable practices and recommends programs the City may choose to implement to support municipal and community sustainability.
Figure 4. Sustainability Survey Results: Community Perception Community Engagement: Going Green
5
Decrease Waste?
Conserve Water?
Conserve Energy?
Improve Sustainable Transportation?
Which strategies should the community and City implement to...
Lawn Replacement Incentives
Drought Tolerant Landscaping
Green Infrastructure
Home Water Audits
Workshops
0 2 3 41
Public Transit Convenience
Add Pedestrian Pathways
Pedestrian Safety
EV Charging
EV School Transit
0 2 3 41
Renewable Energy in City Buildings
Affordable Rooftop Solar
Efficient New Buildings
Retrofit Incentives
Set GHG Target
0 2 3 41
Community Priorities
Survey respondents were asked to rank which strategies the community and City should implement to address various sustainability topics.
Figure 5. Sustainability Survey: Community Priorities
Improve Recycling Practices
Decrease Single Use Plastics
Divert Food Waste
Community Swap Events
0 2 3 41
*Rankings are weighted so that the answer choice with the largest average ranking is the most preferred choice. 6
Low-Emission
Nature-Based
Circular
Resilient
Equitable
Most Commonly Suggested Strategies Per Pathway
Recycling & Composting
Urban Greening
EVs & Alternative Transport
Incentives & Rebates
Community Workshops
Figure 6. Sustainability Survey: Written Comments Categorized by Development Pathway The written comments received through the
Sustainability Survey, at Going Green Workshops,
and through the Going Green Program email have
been categorized using the five sustainable
development pathways. This provides further insight
into how the community believes the City should
prioritize its sustainable efforts.
7
Community Workshops
In February of 2023, the City hosted a series of
community engagement workshops as part of the
Sustainability Plan development process. The
purpose of the workshops was to understand what
the greater Monterey Park community values most in
terms of climate change mitigation and sustainable
practices. The workshops provided an opportunity for
community members to learn about the Five
Sustainable Development Pathway Framework, ask
questions, and voice their opinions on what they
believe should be prioritized in the Sustainability
Plan. Additional workshops were held in November to
ensure a wide reach in the community.
Invitations for the community workshops were sent to
commissioners, board members, and community
leaders. The workshops were also publicized in
Cascades Newspaper, the City website, on social
media, and at City events. Workshops were held
online and in person at El Encanto, Langley Senior
Center, George Elder Park, Garvey Ranch Park, and
Robert Hill Lane Elementary School.
Figure 7. 2022-2024 Sustainability Plan Development Timeline Create Green
Team
Develop
Community
Outreach
Campaign
Launch
Community
Outreach
Campaign
Present
Community
Outreach results
to City Council
GHG Inventory
Development of
Policies/Plan
Department
Revisions &
Approval
Joint Commission
Meeting
Community
Workshop
Public Review
Period
Adoption
Implementation
20242022 2023
8
Circular
L1 L2 L3 N1 N2 N3 C1 C2 R1 R2 E1 E2 E3 E4
Low Emission Nature Based Circular Resilient Equitable
Number of Votes
0 5
10 15
20 25
Reduce VMT
Urban Greening
Reduce Landfilled Waste
Extreme Heat Resilience
Strong Community
Figure 8. Public Review Period: Strategy Prioritization During the Public Review Period from February 8 to February 29, 2024, community members actively engaged in prioritizing strategies across five sustainable development pathways. The graph illustrates the number of votes each strategy received within these pathways. Notably, strategies prioritized by the community are marked with a star in the plan, reflecting alignment with our collective vision for a greener, more resilient future.
Analysis of the data reveals key preferences: in the Low Emission pathway, Reducing VMT garnered significant support; Urban Greening emerged as the preferred strategy in Nature-based development; in Circular Development, reducing landfilled waste was favored; Extreme Heat Resilience stood out in the Resilient pathway; and Building a Strong Community led in Equitable Development. Urban Greening and Reducing Landfilled Waste tied as the most popular strategies overall, reflecting shared community values and priorities for sustainable development. This data underscores the importance of community involvement in shaping actionable plans for a more environmentally conscious and resilient society. 9 Community Identified Priority
Strategy
Pathway
Look for this symbol in chapters 3-7 to identify strategies that received the most community votes:
Plan Year Adopted
Monterey Park Climate Action Plan (CAP) 2012
Safety and Community Services Element 2014
Sustainable Community Element 2014
Healthy Community Element 2014
San Gabriel Valley Regional Bicycle Master Plan 2014
Land Use and Urban Design Element 2020
2020 Urban Water Management Plan (UWMP) 2021
Environmental Justice Element 2022
Climate Change Vulnerability Assessment 2022
Housing Element 2022
Local Hazard Mitigation Plan In Progress
City of Monterey Park Tree Master Plan In Progress
Relationship to Other Plans
The Monterey Park Sustainability Plan builds off of
the strategies and policies the City has adopted in
related City documents. The plan also identifies
current and completed actions the City has taken to
ensure the recommended policies will help build
toward a sustainable future (Appendix B). Using the
five development pathways framework allows the
City to address resilience and equity more directly
while identifying the best programs available to meet
the City's sustainability and emission reduction goals.
Look for this symbol and click to open related documents relevant to specific sections of the Sustainability Plan! Table 1. Related City Documents
10
What Is Climate Change?
Climate change refers to long-term alterations in temperature, precipitation, and other atmospheric conditions on Earth. It is primarily driven by human activities, such as the burning of fossil fuels and deforestation, which release greenhouse gases into the atmosphere. These gases trap heat, leading to a warming of the planet and resulting in a myriad of environmental impacts.
From rising sea levels and extreme weather events to shifts in ecosystems and disruptions in agricultural patterns, the consequences of climate change are far-reaching and pose significant challenges to the well-being of both the planet and its inhabitants. Understanding the complexities of climate change is crucial for devising effective strategies to mitigate its impact and foster global sustainability. This chapter delves into the various facets of climate change, exploring its causes, consequences, and potential solutions. 11
Less Gas = Less Heat Trapped In
The Atmosphere
More Gas = More Heat Trapped In
The Atmosphere
Natural Greenhouse Effect Human Enhanced Greenhouse Effect Solar Radiation
Solar Radiation
More Heat
Drought
Extreme Weather
Sea Level Rise
Stable Temps.
Reliable Rainfall
Temperate
Stable Sea Level
Greenhouse Gasses
Atmospheric
Reflected
Heat
Reflected
Heat
Absorbed Heat Absorbed Heat
The Greenhouse Effect
The greenhouse effect is a natural process that occurs when certain gases, such as carbon dioxide, water vapor, and methane in the Earth's atmosphere trap heat from the sun, which warms the planet's surface.
These gases act like the glass walls of a greenhouse, allowing sunlight to enter but trapping heat inside.
Without this natural process, the Earth would be too cold to support life as we know it. However, human activities, such as burning fossil fuels, have increased the concentration of these greenhouse gases in the atmosphere, leading to an enhanced greenhouse effect and contributing to global warming and climate change.
Figure 9. Natural and Human Enhanced Greenhouse Effect
12
Human-induced (anthropogenic) climate change is well-understood and widely accepted within the scientific community. Over 97 percent of climate scientists agree that the Earth is warming quickly, primarily due to human activities.² Consequently, GHG levels have surged to unprecedented heights, surpassing those of the past 400,000 years. In the last 150 years alone, carbon dioxide concentrations have risen from 280 parts per million to 400 parts per million.³ While natural processes traditionally govern many climate changes, the current escalation of GHGs in the atmosphere, driven by human activities, represents an unprecedented historical anomaly.
Global Warming vs Climate Change
Global warming refers specifically to the long-term trend of increasing average global temperatures. While the Earth has historically experienced many cycles of cooling and warming, the average global temperature has been rising since the Industrial Revolution at a faster rate than it has naturally occurred in the past.
Climate change, on the other hand, refers to broader changes in the Earth's climate system beyond just temperature, including changes in precipitation patterns, sea level rise, and the frequency and intensity of extreme weather events such as droughts, flooding, and winter storms.
Figure 10. Global Temperature Anomaly (°C compared to the 1951-1980 average) Source: NASA Earth Observatory, World of Change: Global Temperatures ⁴
2.https://climate.nasa.gov/scientific-consensus/
3.https://climate.nasa.gov/climate_resources/24/graphic-the-relentless-rise-of-carbon-dioxide
4.https://www.epa.gov/climatechange-science/causes-climate-change/ Figure 11. Comparative Scale of Climate Change and Global Warming 13
Climate Change in Monterey Park
The anticipated impacts of climate change that
Monterey Park may experience include:
Increased average maximum and minimum
temperature;
Increased extreme heat events;
Changing precipitation patterns;
Increased storm frequency and intensity;
Air quality impacts from increased regional
wildfire risks.
Figure 12. Projected Number of Extreme Heat
Days Per Year in Monterey Park
1961-1990
3 days
Mid Century
2035-2064
12 days
End Century
2070-2099
18 days
Projected changes in average number of extreme heat days per year (30 year average) when daily maximum temperature is above 99.9°F under a Medium Emissions (RCP 4.5) Scenario.
Source:
Cal-Adapt Extreme Heat Days & Warm Nights Tool
99.9°F
Social Vulnerability
It is probable that those that are most vulnerable will bear the greatest burden associated with the
potential impacts of a changing climate. Race,
ethnicity, gender identity, sexual orientation, age,
social class, physical ability, religious or ethical value systems, national origin, immigration status, or
linguistic ability do not make an individual inherently vulnerable. Vulnerabilities arise from systemic
deficiencies rather than a judgement of any
community member or neighborhood.
5. https://public.wmo.int/en/media/press-release/past-eight-years- confirmed-be-eight-warmest-record
Climate change causes fluctuations in temperature
and precipitation globally, which impact ecosystems
and communities worldwide. Scientists have
measured shrinking ice sheets, warming oceans,
increasing global temperatures, less snow cover, sea
level rise, and species extinction. Consequently,
climate change has the potential to result in flooding
of low-lying areas (due to sea level rise), reduction of fresh-water supply (due to rainfall and snowfall
changes), adverse changes to biological resources
and public health (due to increased temperature, less
productive habitats, and expansion of disease
vectors), as well as many other adverse
environmental consequences.
Globally, a warming trend is abundantly clear, as the
past eight years have been (as of 2023) the hottest
on record. The average global temperature in 2022
was about 1.15°C above the pre-industrial (1850-
1900) levels, making it the 8th consecutive year that
annual global temperatures exceeded 1°C above
pre-industrial levels. ⁵ Climate change is a global
phenomenon that has the potential to impact local
health, natural resources, infrastructure, emergency
response, tourism, and many other facets of society.
14
Wild fires
Less
snowpack
Extreme Weather
can damage
homes and make
places less safeExtreme
weather
Environmental
changes will cost
money and
impact jobs
More hot
days
Rising sea
levels
Increased
flooding
Poor air
quality
More
heavy
Rain
Increased risk
of infectious
disease
Drought, flooding,
and high
temperatures can
damage crops,
increasing food prices
Wildlife
habitat loss
Figure 13. What are the impacts of Climate Change?
Environmental Impact
Economic Impact
Health Impact
15
Mitigation AdaptationActions to reduce
emissions that cause
climate change
Actions to manage
the risks of climate
change impacts
Sustainable
Transportation
Renewable
Energy
Energy
Efficiency
Disaster
Management &
Business Continuity
Flood
Protection
Infrastructure
Upgrades
Water Conservation
Urban Greening
Education
Sustainability is an approach to development that
seeks to meet the needs of the present generation
without compromising the ability of future generations
to meet their own needs. It involves finding a balance
between economic growth, environmental protection,
and social equity. Sustainability recognizes the
interconnectedness of human society with the natural
environment and aims to ensure that resources are
used wisely, waste is minimized, and the well-being
of both present and future generations is prioritized.
Sustainable practices play a crucial role in mitigating and adapting to the impacts of climate change.
Mitigation refers to efforts aimed at reducing
greenhouse gas emissions, which are the primary
drivers of climate change. Sustainable practices can
help reduce emissions by promoting energy
efficiency, transitioning to renewable energy sources,
adopting cleaner technologies, and implementing
sustainable transportation and land use strategies. By
embracing sustainable practices, we can decrease
our reliance on fossil fuels, minimize carbon
footprints, and work towards a low-carbon economy.
What Is Sustainability?
Adaptation, on the other hand, involves taking
actions to adjust and prepare for the inevitable
impacts of climate change. Sustainable practices can
enhance resilience and enable communities and
ecosystems to cope with changing conditions. For
instance, sustainable agriculture practices can
improve soil health, conserve water resources, and
enhance food security in the face of changing
weather patterns. Sustainable urban planning can
incorporate green infrastructure, such as parks and
permeable surfaces, to manage stormwater and
reduce the risks of flooding.
Sustainable practices are not only essential for
climate change mitigation and adaptation but also for
achieving broader sustainability goals. They promote
resource conservation, reduce pollution, support
social equity, and foster economic development. By
integrating sustainable practices into our lifestyles,
industries, and governance systems, we can create a
more resilient and thriving future for ourselves and
future generations. Developing a sustainable future
requires a collective effort, involving individuals,
businesses, governments, and organizations working
together towards a shared vision of a sustainable and
climate-resilient world.
Figure 14. Climate Mitigation vs. Adaptation
16
What Is Low Emission Development?
The low emission development pathway is intended to curb climate change, create new economic opportunities and improve the health of people and natural systems. Programs under this pathway will help reduce greenhouse gas emissions, aim to achieve climate neutrality, and promote renewable energy by divesting from fossil fuels and using nature-based solutions.
Successful low emission development programs promote sustainable passenger mobility, giving priority to walking, cycling, public transit and shared mobility as part of people-centered solutions.
17
Animal
Respiration
Root Respiration
Dead Organisms and
Waste Products
Fossil Fuels
Photosynthesis
Sources and Sinks
"Sources" and "sinks" are terms commonly used in the context of greenhouse gas emissions and the carbon cycle to describe how carbon moves through the Earth's systems. Sources are places or processes that release GHGs into the atmosphere. Sources can be natural or human-induced. Human-induced sources include activities like burning fossil fuels (e.g., in cars, power plants), deforestation, and industrial processes.
Natural sources include things like the respiration of plants and animals and decomposition of dead organisms or waste products. Sinks are natural or artificial systems that remove and store carbon dioxide from the atmosphere. They act as a counterbalance to sources by reducing the concentration of CO₂ in the atmosphere. Natural sinks include forests, oceans, and soils, which absorb and store carbon. Artificial sinks might include carbon capture and storage technologies.
CO₂
Figure 15. Where Do Emissions Come From?
18
What is a GHG Emissions Inventory?
To minimize the impacts of climate change on the
residents of Monterey Park, our community must first
begin to understand where our GHG emissions are
coming from. By understanding the magnitude of each
source of emissions, the City and residents can
prioritize ways to make the greatest impact. A GHG
emissions inventory is essentially a systematic record
of all the GHG emissions produced within a specific
area. The following steps were utilized to create a
GHG Emissions Inventory for Monterey Park based on
data from 2021.
GHG Emissions Inventory
Figure 16. How Much Is A Metric Ton (MT) of CO₂?
1 Metric Ton of CO₂ 30 ft.
6 ft.
19 How Are GHG Emissions Inventories Calculated?
Identifying Sources and Sinks: The first step is to
identify the sources and sinks of greenhouse
gases within the City. Sources are places or
activities that emit GHGs, like cars on the road,
factories, or energy production. Sinks are areas
where GHGs are removed from the atmosphere,
like forests that absorb carbon dioxide.
1. Collecting Activity Data: Data is collected for each of these sectors. This data includes information on
how much fuel is burned, how much electricity is
consumed, and other activities that release or
remove GHGs. For example, data often includes
the number of cars on the road, the amount of
energy used in buildings, or the amount of waste
generated.
2. Applying Emissions Factors: Emissions factors
are like conversion rates. They tell us how much
carbon dioxide equivalence (CO₂e) is produced
for a given activity. For example, for every gallon
of gasoline burned in a car, there's a known
emissions factor that tells us how much CO₂e is
released. Emissions factors are used to calculate
the total GHG emissions for each sector. A
"Metric Ton CO₂e" stands for a metric ton of
carbon dioxide equivalent. It's a unit of
measurement used to express the global
warming potential (GWP) of various greenhouse
gases in terms of the amount of carbon dioxide
(CO₂) that would have an equivalent warming
effect on the Earth's climate. The reason for using
CO₂e is that different greenhouse gases have
different heat-trapping abilities and lifespans in
the atmosphere. Carbon dioxide is often used as
a reference point with a GWP (Global Warming
Potential) of 1, and other greenhouse gases are
compared to it. For example, methane (CH₄) has
a much higher GWP than carbon dioxide,
meaning it's much more effective at trapping heat
in the short term. So, if you emit one metric ton of
methane, it will have a much greater impact on
global warming than emitting one metric ton of
carbon dioxide. By expressing emissions in CO₂e,
it makes it easier to compare and aggregate
emissions from different greenhouse gases and
sources. It provides a standardized way to assess
the overall impact of a mixture of greenhouse
gases in terms of their CO₂ equivalent, allowing
policymakers, scientists, and organizations to
quantify and manage the total greenhouse gas
emissions in a consistent manner.
The full GHG emissions inventory methodology is
available in Appendix D.
3.
Figure 17. Monterey Park GHG Emissions by Sector in Metric Tons, 2021 Solid
Waste
5%
Off Road
Equipment
4%
Wastewater
2,026 MT CO₂
1% Water
8 MT CO₂
0.1%
On Road
Transportation
56%
Building
Electricity
17%
Building
Natural Gas
17%
Emissions in Monterey Park
Based on the findings of the GHG Emissions Inventory for the City of Monterey Park (Figure 16), the proposed strategies in the Low Emission Development Pathway primarily target the reduction of emissions from on-road transportation and building decarbonization. This approach aligns with the inventory data, which reveals that these two sectors are the largest contributors to greenhouse gas emissions in the City. By focusing on on-road transportation, which accounts for 56% of emissions, strategies might include promoting public transportation, electric vehicles, and biking, as well as improving traffic management. Simultaneously, tackling building decarbonization (building electricity and natural gas, which collectively account for 34% of emissions) could involve energy-efficient retrofits, transitioning to cleaner energy sources, and implementing more sustainable building practices. These strategies aim to address the key sources of emissions, making a meaningful impact on the City's overall carbon footprint and contributing to a more sustainable and environmentally responsible future.
20 Source: Rincon Consultants (Appendix C)
Strategy L1: Reduce Passenger Car Vehicle Miles Travelled (VMT) and Increase Active/Shared Transportation
One of the primary goals of this strategy is to
decrease the number of miles driven by passenger
cars. Since many vehicles are powered by fossil
fuels, this reduction helps to lower greenhouse gas
emissions, combat climate change, and contribute to
a more sustainable environment. Reducing VMT has
numerous benefits:
Air Quality and Public Health: By decreasing
VMT, there is a potential to reduce air pollution,
particularly in urban areas where traffic
congestion is common. Improved air quality leads
to better public health, with fewer cases of
respiratory illnesses and other pollution-related
health problems.
Traffic Congestion: A decrease in VMT can
alleviate traffic congestion, making daily
commutes and transportation more efficient. This
not only saves time for commuters but also
reduces fuel consumption and associated
emissions, making transportation more cost-
effective.
Reduction in Infrastructure Costs: A decrease in
VMT can potentially reduce the need for costly
road expansion projects and maintenance. This
can free up resources for other infrastructure
needs or public services.
Improved Quality of Life: Promoting active and
shared transportation can lead to more walkable
and bike-friendly communities. This enhances the
quality of life for residents by providing them with
safer, more pleasant urban environments.
Economic Benefits: Increased active and shared
transportation can stimulate the local economy. It
supports businesses located along pedestrian
and cyclist-friendly routes and can reduce
transportation costs for individuals and families.
Safety: Reducing VMT can lead to fewer
accidents and injuries on the road, making
transportation safer for everyone.
Urban Planning and Sustainability: This strategy
encourages a shift toward more sustainable
urban planning, with an emphasis on mixed land
use, accessible public transportation, and
pedestrian-friendly infrastructure.
Overall, the strategy to reduce passenger car VMT
and increase active/shared transportation is a
multifaceted approach that has far-reaching benefits
for the environment, public health, and urban
livability. It aligns with the goals of reducing carbon emissions, promoting sustainability, and improving
the overall well-being of communities.
Strategy L1 Policies
L1-1 Promote active transportation with investments in disadvantaged communities that improve connectivity and ease of walking or biking.
L1-2 Explore the implementation of public and shared transit programs to support increased public transit usage.
L1-3 Consider increasing mixed-use and residential densities in neighborhoods with access to transit or well-connected active transportation networks.
L1-4 Review parking standards in transit-rich and walkable neighborhoods to potentially reduce reliance on single-occupancy vehicles.
L1-5 Encourage City employees to explore alternative transportation options and teleworking opportunities to potentially reduce their commutes.
21 *Vehicle Miles Traveled (VMT) is a metric used to quantify the total distance traveled by all vehicles within a specific geographic area, typically measured over a specified period of time.
Community Identified Priority
22 Class 1
These e-bikes provide assistance up to 20 mph and
are equipped with pedal-assist functionality, meaning
the motor engages only when the rider pedals.
Class 2
These e-bikes are equipped with a throttle, allowing
riders to engage the motor without pedaling, and they
also assist up to 20 mph.
Figure 19. Types of Electric Bicycles
Class 3
Offering pedal-assist up to 28 mph, Class 3 e-bikes
are faster than Class 1 and 2, but may be subject to
different regulations, often requiring riders to wear
helmets and adhere to safety standards.
E-Bikes
Electric bicycles (e-bikes) are increasingly
recognized as an eco-friendly transportation option
due to several key advantages they offer over
traditional vehicles. One of the most significant
environmental benefits of e-bikes is their potential to reduce greenhouse gas emissions. By providing an
alternative to car trips, especially for short to
moderate distances, e-bikes help decrease the use
of fossil fuels and subsequently lower emissions of
CO₂ and other pollutants. This reduction in emissions
is particularly impactful in urban areas, where traffic congestion and vehicle emissions contribute
significantly to air pollution and public health
concerns.
Additionally, e-bikes are inherently more energy-
efficient than cars. While electric bikes require
electricity to charge their batteries, the amount of
energy consumed per mile traveled is substantially
lower compared to that of a typical car journey. This
increased efficiency translates to reduced overall
resource consumption and reliance on finite energy
sources.
Furthermore, the use of e-bikes encourages a shift
towards more sustainable transportation modes. By
making cycling more accessible and feasible for a
wider range of people, including those who may not
have considered cycling as a viable option due to
physical limitations or concerns about distance and
effort, e-bikes promote a culture of active
transportation. This shift away from reliance on cars
not only reduces pollution and carbon emissions but
also contributes to the development of greener, more
livable cities with improved air quality and reduced
traffic congestion.
Strategy L2 Policies
L2-1 Consider expanding electric vehicle infrastructure to encourage greater passenger ZEV adoption, with a focus on disadvantaged communities.
L2-2 Explore options to increase commercial ZEV adoption over time.
L2-3 Consider electrifying a significant portion of the City's on-road vehicle fleet and off-road equipment fleet in the coming years.
L2-4 Investigate the transition of a portion of off-road equipment to zero-emission alternatives, with a gradual approach toward full adoption.
Strategy L2: Increase the Adoption of
Zero Emission Vehicles (ZEVs and e-bikes)
Zero Emission Vehicles
Zero Emission Vehicles (ZEVs) are vehicles that
produce no tailpipe emissions of greenhouse gases
or other harmful pollutants during their operation.
ZEVs are designed to minimize their environmental
impact, and they are a key component of efforts to
reduce air pollution and combat climate change.
Battery Electric Vehicles (BEVs)
BEVs are powered solely by electricity stored in a
rechargeable battery. They produce zero tailpipe
emissions and are among the most common ZEVs on
the road.
Plug-In Hybrid Electric Vehicles (PHEVs)
PHEVs have both an electric motor and an internal
combustion engine. While they can run on electricity
for a certain distance, they also have a gasoline or
diesel engine for longer trips.
Figure 18. Types of ZEVs
23 Hydrogen Fuel Cell Vehicles (FCVs)
FCVs use hydrogen gas to generate electricity that
powers an electric motor. They emit only water vapor
and heat as byproducts, making them true zero-
emission vehicles.
ZEVs provide numerous benefits to the environment
and community:
ZEVs operate without producing any tailpipe
emissions, as they do not rely on internal
combustion engines. This means they release no
CO₂, nitrogen oxides, particulate matter, or other
harmful pollutants into the air.
Reduced Greenhouse Gas Emissions: ZEVs
significantly reduce greenhouse gas emissions,
especially when charged with electricity from
renewable sources like wind or solar power.
Energy Efficiency: ZEVs are more energy-efficient
than internal combustion engine vehicles,
converting a higher percentage of their fuel
source into vehicle movement, thus reducing
overall energy consumption and emissions.
Air Quality Improvement: ZEVs contribute to
better air quality in urban areas. Their operation
produces no harmful emissions like NOx, which
are linked to respiratory problems and smog
formation. This can lead to significant public
health benefits, especially in densely populated
regions.
ZEVs are an important tool in the efforts to reduce
emissions, combat climate change, and improve air
quality.
Strategy L3 Policies
L3-1 Explore the transition of a significant portion of City electricity consumption to renewable or carbon- free energy sources.
L3-2 Consider options for electrifying or decarbonizing new buildings.
L3-3 Investigate electrifying existing residential buildings and implementing energy efficiency improvements to reduce residential natural gas usage.
L3-4 Evaluate electrifying existing commercial buildings and implementing energy efficiency improvements to reduce commercial natural gas usage.
L3-5 Examine the possibility of increasing local renewable energy generation and storage to enhance resilience during power shutoffs and climate hazards.
L3-6 Consider electrifying or decarbonizing all municipal buildings and facilities.
Resilience: Building decarbonization can enhance
resilience during climate-related power shutoffs or
extreme weather events. By adopting renewable
energy sources and energy storage systems,
buildings become better equipped to maintain
essential functions during disruptions, which is
especially relevant for municipal facilities.
In summary, building decarbonization is a crucial
component of the broader strategy to reduce carbon
emissions from community and municipal building
energy. It helps lower emissions, improve energy
efficiency, set an example for the community, and
enhance resilience in the face of climate-related
challenges, contributing to a more sustainable and
environmentally responsible future.
Strategy L3: Decarbonize Community and Municipal Building Energy Building decarbonization is a strategy aimed at
reducing the carbon emissions associated with the
energy consumption of buildings. It involves
transitioning the energy sources and systems used in
buildings, such as residential and commercial
structures, to ones that produce fewer or no carbon
emissions. The primary goal is to minimize the
environmental impact of energy use in buildings, which
typically involves the burning of fossil fuels like natural gas for heating, cooling, and electricity generation.
Building decarbonization aligns with the broader goal
of reducing greenhouse gas emissions in the
community and municipal sectors. Here's how it fulfills the strategy:
Reducing Emissions: By electrifying or
decarbonizing buildings, the strategy aims to shift
away from carbon-intensive energy sources, such
as natural gas or oil, towards cleaner, renewable,
or low-carbon energy sources. This transition
significantly reduces carbon emissions associated
with heating, cooling, and powering buildings.
Energy Efficiency: Building decarbonization often
includes energy efficiency improvements. These
enhancements reduce the overall energy demand
of buildings, making them more sustainable and
cost-effective, while further decreasing greenhouse
gas emissions.
24
Replace your gas fueled
appliances with more efficient
and healthier electric appliances
like stoves and heaters
Turn off lights and power down
electronics when not in use, or
unplug them all together to
reduce idle energy use
Replace traditional
incandescent light bulbs
with compact fluorescent
light (CFL) or light
emitting diode (LED)
bulbs
Reduce water heater
temperature to 130 °F
Install solar panels on your home or business.
Visit the Monterey Park Sustainability Resource Center Webpage to find resources for free home energy efficiency reviews.
Consider using a rebate program to update your home with electric retrofits.
Lowering Emissions: What Can I Do Today?
On The Go
If you are in the market for a new car, consider
an EV.
Explore EV incentives and rebates available
through the California Air Resources Board or
United States Environmental Protection Agency.
Consider walking or riding your bike for short
local trips.
Download the Passio GO! app to easily track and
utilize the Spirit Bus system.
Pick a central location for attendees when you
are planning an event.
Use the GoMPK app to submit service requests
for issues that prevent safe walking, biking, and
public transportation use in Monterey Park.
Carpool whenever you can.
At Home
25
What Is Nature Based Development?
The nature based development pathway helps protect biodiversity and urban ecosystems, which are important elements of local economies and our communities. The programs under this pathway may help the City prioritize healthy local environments in which air, water, soil and all natural resources that sustain life are protected and nurtured. These programs could help integrate rainwater capture into City infrastructure or improve resident knowledge on how to keep rainwater in their gardens and out of the streets.
Nature-based development programs support urban greening by planting trees, protecting parks, and encouraging native landscaping. Using programs under this nature based pathway will support the well-being of our community members, both human and non-human.
26
1900s
1990s
2000s
2020s
Water
The City of Monterey Park Water System receives
water from one source - local groundwater. The water
is produced by 12 City-owned wells located in the Rio
Hondo, which is outside the city limits and in the Main San Gabriel groundwater basin.
On average, about 65% of the water used in
Monterey Park each year is supplied from local
rainfall; the other 35% is imported from northern
California and then percolated into the groundwater
aquifers. The water is imported by the San Gabriel
Valley Municipal Water District, a public agency.
The main San Gabriel groundwater basin is one of
the few natural underground reservoirs in the United
States. Rain and snowmelt flows down from the San
Gabriel Mountains through a series of dams and are
then diverted to "spreading basins."
Spreading basins are designated areas of land that
are very permeable, such as sand and gravel areas
where water can percolate into the ground. 100% of
the water served to residents and businesses in
Monterey Park comes from groundwater. Thus,
keeping our groundwater resource clean is vitally
important to all of us.
Drought
Droughts have always been a part of life in Southern
California. They are now occuring more frequently. A
comparison in droughts demonstrates this change: in
the last century, there were three droughts that put
the state in drought conditions roughly 15% of the
time. Since 2000 California already experienced
another four, putting the State in drought conditions
nearly 50% of the time (Figure 18). These current
droughts are also more extreme (in addition to more
frequent). The result is our water basin has less time
to recover in between them.
Drought Years Last Century
Drought Years This Century
Figure 20. Number of Southern California
Droughts per Century ⁶
6. https://www.thewatersthatconnectus.com/copy-of-challenges Figure 21. Monterey Park Water Supply
27
Strategy N1 Policies
N1-1 Consider reducing per capita water consumption, with the aim of achieving long-term reductions compared to the 2020 baseline.
N1-2 Explore options to gradually reduce municipal water consumption over time.
N1-3 Investigate strategies to enhance resilience to potential drought-induced water shortages or fluctuations in utility rate structures.
Landscaping practices are another integral aspect.
Encouraging drought-tolerant and native species for
landscaping can drastically cut down on irrigation
demands. Native plants are particularly well-suited to
local conditions and require less water and
maintenance. Additionally, adopting xeriscaping
principles can further reduce water consumption by
incorporating low-water plants and efficient irrigation systems. Rainwater harvesting is another valuable
technique for reducing reliance on municipal water
supplies. This collected rainwater can be used for
landscape irrigation, conserving the primary water
source.
Efforts may also include monitoring and reporting of
water usage data to residents, businesses, and local
authorities, creating awareness and motivating water-
saving behaviors. For long-term resilience, emergency
planning and infrastructure investment are crucial.
Developing contingency plans for drought conditions
and investing in water infrastructure to ensure a
dependable supply during dry periods is essential.
These comprehensive strategies will collectively work
towards conserving water resources and bolstering the
ability to withstand water scarcity events.
Strategy N1: Increase Water Conservation
Reducing water consumption and building resilience to
water shortages are critical goals in sustainable water management. Achieving these objectives involves a
multifaceted approach. To begin, promoting the use of
water-efficient technologies, such as low-flow fixtures and smart irrigation systems, is essential. These
actions can lead to significant reductions in both
residential and municipal water consumption.
Moreover, educational campaigns can raise public
awareness, offering valuable tips for responsible water use, such as fixing leaks and avoiding overwatering.
Western Redbud
Common Yarrow
Many native plants possess deep root systems that
enable them to reach water deep in the ground,
enhancing their ability to withstand periods of drought. 28
Temperature °F
Rural Suburban
Residential
Commercial City Urban
Residential
Park Suburban
Residential
Rural
Farmland
As the populations in California’s towns and cities continue to increase, the need for urban greening also increases. Adding nature back into the paved and developed environments in which we live, work and play helps to reduce a number of the issues that effect our quality of life. Trees, green roofs, and vegetation can help reduce urban heat island effects by shading building surfaces, deflecting radiation from the sun, and releasing moisture into the atmosphere. This leads to better energy efficiency and conservation , as
demonstrated by a decreased need for air conditioning. Green spaces also provide wildlife habitat, promote urban biodiversity, and improve air and water quality by reducing pollutants.
Heat Island Effect
Heat islands are urbanized areas that experience higher temperatures than outlying areas. Structures such as buildings, roads, and other infrastructure absorb and re-emit the Sun’s heat more than natural landscapes such as forests and water bodies. Urban areas, where these structures are highly concentrated and greenery is limited, become “islands” of higher temperatures relative to outlying areas. Daytime temperatures in urban areas are about 1–7°F higher than temperatures in outlying areas and nighttime temperatures are about 2-5°F higher. ⁷
Source: World Meteorological Organization (WMO) 2020 ⁷
Strategy N2 Policies
N2-1 Consider gradually increasing the number of trees in MPK, with an annual tree-planting initiatives.
N2-2 Explore options to enhance green infrastructure, with the aim of improving stormwater capacity during peak rain events, incorporating native plants and habitat restoration measures.
Strategy N2: Urban Greening
Figure 22. Heat Island Effect: Temperature Variation by Environment 29 7. https://community.wmo.int/en/activity-areas/urban/urban-heat-island Community Identified Priority
Benefits of Urban Green Spaces
Urban green spaces, such as parks, gardens, and
green rooftops, offer a multitude of benefits that
enhance the quality of life for residents in cities.
These green oases serve as vital respites in urban
environments, contributing to both physical and
mental well-being. One of the primary advantages is
the positive impact on mental health. Spending time
in natural environments within urban areas has been
linked to reduced stress levels, improved mood, and
enhanced cognitive function. The presence of
greenery provides a calming effect, helping
individuals to disconnect from the fast-paced urban
environment and find moments of tranquility.
Moreover, urban green spaces play a crucial role in
promoting physical health. They provide opportunities
for outdoor activities such as jogging, cycling, yoga,
and sports, encouraging people to engage in active
lifestyles. This not only fosters physical fitness but
also helps combat sedentary habits, which are often
associated with urban living. In terms of economic
benefits, well-maintained urban green spaces can
boost property values and attract businesses and
tourists. Access to green areas has been shown to
increase property desirability and attract potential
residents, ultimately contributing to a more vibrant
and attractive urban environment.
From an environmental perspective, green spaces
contribute to biodiversity and ecological balance
within cities. They act as habitats for various plant
and animal species, supporting local ecosystems and
enhancing the urban environment's resilience against
pollution and climate change. These areas also help
mitigate the urban heat island effect by absorbing
heat and reducing surface temperatures, thus
contributing to a more sustainable and comfortable
urban climate.
Additionally, urban green spaces foster social
interactions and community cohesion. They provide
places for gatherings, events, and recreational
activities, creating opportunities for people from
diverse backgrounds to come together and bond.
This sense of community and shared space can
strengthen neighborhood connections and contribute
to a greater sense of belonging and civic pride.
Urban green spaces offer a range of advantages that
extend beyond their aesthetic appeal. They enhance
mental and physical well-being, support biodiversity,
encourage community engagement, and even have
economic implications. As Monterey Park continues
to grow, investing in and preserving these green
havens becomes increasingly important for creating
sustainable, livable, and enjoyable urban landscapes.
Figure 23. The Benefits of Urban Greening
30
Strategy N3 Policies
N3-1 Foster positive opportunities for the Monterey Park community to engage with the natural world.
Strategy N3: Experiences in Nature
Experiencing nature is profoundly beneficial for both
human and environmental health, making it an
important strategy for fostering more sustainable
communities. From a human perspective, connecting
with nature provides numerous mental, physical, and
emotional advantages. Time spent in natural
environments can reduce stress, anxiety, and
depression, while boosting mood and overall well-
being. It encourages physical activity, which promotes
better health and fitness. Additionally, exposure to
nature enhances creativity and cognitive function,
contributing to a richer and more fulfilling life.
Furthermore, it fosters a sense of connection to the
environment, raising awareness about the need for its
protection and preservation.
In the context of environmental health, embracing and
preserving natural spaces within communities is
important. Green spaces like parks, forests, and
wetlands play a vital role in maintaining ecological
balance. They provide habitat for wildlife, support
biodiversity, and help mitigate the effects of climate
change. Natural areas serve as buffers against floods,
improve air and water quality, and reduce urban heat
islands. By incorporating these elements into
community planning and design, we not only enhance
environmental resilience but also contribute to the
overall sustainability of our communities. In essence,
the well-being of both humans and the environment
are deeply intertwined, and experiences in nature
serve as a bridge between the two, strengthening the
case for more sustainable and eco-conscious
communities.
31 8. https://parkserve.tpl.org/mapping/#/?CityID=0648914
Wash full loads of dishes and
clothes to maximize water
savings
Use old cups of water for plants
instead of dumping it in the sink
Install a low-flow aerator
to increase your faucet’s
efficiency
Explore rebates for low-flow
toilets and other water wise
appliances
Review Chapter 14.25 of the Monterey Park Municipal Code for details on water conservation regulations and for Monterey Park’s Water Efficient Landscape Ordinance.
Saving Water & Creating Green Space: What Can I Do Today? 32 Transform your land into a greenspace by
planting native tree and plant species or utilize
your space to grow your own food.
Use the GoMPK app to report dead or unhealthy
trees in your neighborhood.
Plant shade trees around your home or garden.
Use the Monterey Park Landscaping Guide to
choose water-wise plants that will thrive in our
City.
Fix any leaky faucets immediately to reduce
unwanted water waste.
Replace high-consuming lawns with low-water
and drought-tolerant vegetation, including
California Native plants, grasses, and water-wise
succulents.
Design a laundry grey water capture system for
your garden irrigation needs.
Avoid washing your car at home.
Install a rain barrel at home.
Replace hard surfaces such as concrete or
asphalt with permeable surfaces such as gravel
or pavers to capture rainwater and prevent
flooding.
Learn about water-wise gardening practices by
attending a LA County Smart Gardening
Workshop, frequently held at Garvey Ranch Park,
or visit the Monterey Park Demonstration Garden
for landscaping inspiration.
Chapter 6.31
What Is Circular Development?
The circular development pathway promotes sustainable waste management options and prioritizes local economies born out of circular development where resources are exchanged, not wasted. Programs under this pathway support economic development while taking into consideration the environmental and social costs of goods and services. These programs can also support sustainable strategies for local businesses. Programs under this pathway take into account not just the GHG emissions from direct sources such as fuel and electricity use, but also the GHG emissions associated with the complete life cycle of the products we use every day. The circular development pathway provides ways that each member of the Monterey Park community can reduce their impact on the world and improve their community at the same time. 33
Strategy C1 Policies
C1-1 Explore the procurement of recovered organic waste products for potential use in the City consistent with SB 1383 (2016).
C1-2 Promote the reduction of community waste generation by encouraging residents and businesses to participate in repair and reuse practices.
Strategy C1: Promote Reduce, Reuse, Repair, and Recovery Senate Bill 1383 (SB1383) is legislation aimed at
reducing short-lived climate pollutants, particularly
methane and hydrofluorocarbons, by implementing
regulations on organic waste disposal, promoting
composting, and establishing targets for methane
emissions reduction.
“Reduce, Reuse, Repair, and Recovery” embodies the
principles of a circular economy, offering numerous
environmental and economic benefits. These practices
reduce resource consumption, waste, and energy use,
as well as lower carbon emissions. They encourage a
shift away from disposable culture, fostering more
mindful and sustainable consumption. Moreover,
embracing "reduce reuse, repair, and recover"
practices stimulates economic growth by creating jobs
and local economic opportunities. These practices help
conserve raw materials, contribute to cultural shifts in favor of sustainable consumption, and effectively
address issues like electronic waste. Overall, these
practices promote resource efficiency, waste reduction, and a more sustainable, resilient future.
While many are familiar with the phrase "Reduce,
reuse, recycle," there are two more facets of waste
reduction worth learning about: Repair and Rot. These
additional strategies play a crucial role in promoting
sustainability and reducing the environmental impact of waste. Beyond the five "R's," the list continues to
expand: refuse, repaint, repurpose, refurbish, and
reclaim, to name a few. Each of these actions offers
unique ways to minimize waste, conserve resources,
and reduce our ecological footprint, contributing to a
more environmentally responsible and resource-
efficient lifestyle.
"Reduce" refers to the practice of minimizing
the generation of waste in the first place. It
involves using fewer resources, buying
products with less packaging, and being
mindful of consumption to reduce the overall
volume of waste produced.
"Reuse" involves using items or products
again in their current form without any
significant alteration. It aims to extend the
lifespan of items, reducing the need for new
production and consumption.
"Repair" focuses on fixing or restoring items
that are damaged or worn, rather than
discarding them. This extends the useful life of
products and reduces the amount of waste
sent to landfills.
"Rot" represents the practice of composting
organic waste, such as food scraps and yard
debris. Through decomposition, organic matter
is turned into nutrient-rich compost, diverting it
from landfills and enriching soil.
"Recycle" involves the process of collecting
and processing materials to be used as raw
materials in the production of new products.
Recycling reduces the demand for virgin
resources and minimizes the environmental
impact of manufacturing.
34
Reducing Waste: What Can I Do Today?
Visit Monterey Park Public Works Organics Recycling Webpage for the most up to date information on how to sort your food waste for recycling by your local waste collection company.
Learn how to compost by attending a LA County Smart Gardening Workshop, frequently held at Garvey Ranch Park.
Visit Monterey Park Public Works How to Recycle Webpage for the most up to date information on recycling in the City.
Start or join a "Buy Nothing" group online to donate unwanted items directly to individuals who need them.
Try to buy secondhand items first to save money and keep waste out of landfills.
When buying something new, buy high quality products that will last.
Explore methods of repairing clothing and items before replacing them.
Strategy C2: Reduce Landfilled Waste
Strategy C2 Policies
C2-1 Consider aligning with SB 1383 (2016) organics and recycling requirements, aiming to progressively reduce landfilled organic waste.
C2-2 Strive to meet or surpass the SB 1383 requirement of diverting edible food from the landfill to support food-insecure community members.
C2-3 Closely assess ways to reduce residential and commercial inorganic waste sent to landfills over time, with an aim to achieve gradual reductions.
Reducing landfilled waste is a crucial strategy for emissions reduction due to its significant impact on greenhouse gas emissions. When organic materials, such as food scraps and yard waste, end up in landfills, they decompose in an anaerobic environment, meaning without oxygen. During this process, they produce methane, a potent greenhouse gas that has a much greater heat-trapping capacity than carbon dioxide. By diverting organic waste away from landfills and into composting or anaerobic digestion systems, the release of methane is minimized.
All waste from non-biological origin (industrial
origin or any non-natural process).
35 Community Identified Priority
Organic Waste Inorganic Waste
All waste of biological origin (which was once
alive or part of a living thing).
What Is Resilient Development?
The resilient development pathway anticipates, prevents, absorbs, and recovers from shocks and stresses, especially those brought about by rapid environmental, technological, social and demographic change. Through this pathway, MPK will make resilience a core part of municipal strategies and prepare for new risks and impacts, taking into account the rights and needs of vulnerable sections of society. Programs under this pathway will continuously strengthen essential systems, alleviating the burden on people and the environment. Resilient development programs pursue a transparent and inclusive approach that will enhance trust in institutions and the processes that support them.
36
Annual Number of
Health Events
0-0.078
0.78-1.56
1.56-2.33
2.33-3.11
3.11-3.89
3.89-4.67
4.67-5.44
5.44-6.22
6.22-7
7+
2031-2050
2041-2060 2051-2070
2021-2040
Heat health events (HHEs), also known as heatwaves
or extreme heat events, refer to periods of unusually
high and prolonged temperatures that can have
significant impacts on human health, infrastructure,
and the environment. These events occur when
temperatures rise above normal levels for a given
region and persist for an extended period, often
several days or even weeks. Over the next century,
the frequency and intensity of heat health events are
projected to increase in Monterey Park. Impacts of
heat health events include:
Health Impacts: Prolonged exposure to high
temperatures can lead to various heat-related
illnesses, including heat exhaustion, heatstroke,
and dehydration. These conditions can range from
mild discomfort to life-threatening emergencies,
and they may require medical attention.
Vulnerable Populations: Certain groups of people
are more susceptible to the adverse effects of
extreme heat, including the elderly, infants,
pregnant women, individuals with chronic illnesses,
and those who lack access to air conditioning or
cool shelter. Social factors such as poverty and
isolation can exacerbate these vulnerabilities.
Impacts on Infrastructure: Extreme heat can
damage infrastructure, such as roads, railways,
and power grids, as well as reduce the efficiency of
public transportation systems. Additionally,
buildings not designed to withstand high
temperatures may experience structural damage
or require increased energy for cooling.
Economic Consequences: Heat health events can
lead to substantial economic losses, including
decreased labor productivity, increased healthcare
costs, and damage to crops. These financial
impacts can be especially burdensome for
communities that are already vulnerable.
Strategy R1: Extreme Heat Resilience
Strategy R1 Policies
R1-1 Educate the community about the dangers of heat exposure and identify financial and technical resources to reduce impacts of extreme heat on the community.
R1-2 Reduce exposure of the community to extreme heat through a combination of cooling centers, low- cost cooling resources, building weatherization, and increased energy resilience.
Heat Health Events
Figure 24. Projected Annual Heat Health Events in Monterey Park ⁹ 37 9. https://www.cal-heat.org/explore
Strategy R2: Climate Change Preparedness
Strategy R2 Policies
R2-1 Evaluate capacity to respond effectively to emergencies and prepare for unavoidable disasters.
R2-2 Evaluate the ability of the City and its residents to adapt to climate change impacts.
Strengthening the capacity to respond effectively to
emergencies and preparing for the unavoidable
disasters brought about by climate change is a central
component of climate change preparedness. As the
impacts of climate change continue to escalate,
leading to more frequent and severe weather events,
the need for robust emergency response and disaster
preparedness has become increasingly crucial. This
approach encompasses a multifaceted strategy.
First and foremost, early warning systems must be
established and improved to provide communities with
timely information about impending climate-related
threats, such as hurricanes, floods, and wildfires.
These warnings play a vital role in helping
communities prepare, evacuate, if necessary, and
reduce the risk of loss of life and property.
Equally important is the need to ensure that critical
infrastructure, including transportation networks, power grids, and water supply systems, is resilient to climate- related threats. This enhances the ability to withstand disruptions during and after disasters, allowing for
quicker recovery.
Engaging the community in emergency response
planning is another vital element. Involving residents in disaster preparedness initiatives, such as developing
evacuation plans, organizing neighborhood watch
programs, and fostering a sense of shared
responsibility, can significantly enhance overall
resilience.
Furthermore, the healthcare system and social
services must be adequately prepared for the
increased demands that climate-related emergencies
impose. Healthcare facilities need to be resilient, and communities should have access to necessary social
services and mental health support.
Sustainable natural resource management practices,
such as forest management to reduce wildfire risk, can
also help mitigate the severity of climate-related
disasters. Additionally, the development of
comprehensive disaster recovery plans, which include
access to financial resources and assistance
programs, ensures that communities can rebuild
effectively in the aftermath of a climate-related disaster.
Education plays a crucial role in this process, as
educating the public about climate resilience, disaster preparedness, and the risks associated with climate
change is essential. An informed and prepared
community is better equipped to respond to
emergencies effectively.
Finally, recognizing the global nature of climate
change, international cooperation is paramount.
Climate-related emergencies often transcend national
borders, making collaboration between nations vital.
Sharing resources, expertise, and collective efforts can significantly improve preparedness and response in the
face of climate-related disasters.
38
What Is Equitable Development?
Equitable and people-centered development builds more just, livable, and inclusive urban communities and addresses poverty. Through this pathway, Monterey Park will pursue processes that support inclusive development for all that safeguard the natural support systems for human life. Programs under this pathway will ensure that the natural and built environment in and around cities improves livability and safety, promotes human health, and mitigates disease.
These programs will pursue secure and safe access to food, water, energy and sanitation for all, and clean air and soil. They create and sustain human- centered, safe, socially, and culturally cohesive communities, where diversity and distinct identities are woven into the social fabric. 39
For this Plan, equity refers to the concept of fairness and justice in the distribution of resources,
opportunities, and benefits within a society. In the
context of a city, equity means ensuring that all
residents, regardless of their background or
circumstances, have access to the same
opportunities and benefits.
Equity vs Equality
Equality and equity are related concepts but differ in
their approach. Equality aims to treat everyone the
same way, providing equal resources or opportunities
to all individuals. In contrast, equity recognizes that not everyone starts from the same place and seeks
to address historical and systemic disparities. Equity
involves tailoring resources and support to meet the
unique needs of different groups, thereby striving for
equal outcomes.
Environmental Justice
Environmental justice is a concept within the broader
framework of equity that focuses specifically on the
fair treatment and distribution of environmental
benefits and burdens, particularly in the context of
communities that have historically been marginalized
or disadvantaged. In the context of equity,
environmental justice includes:
Fair Treatment: Environmental justice demands
that all individuals, regardless of their race,
ethnicity, income level, or socioeconomic status,
should have equal protection under
environmental laws and regulations. It advocates
for the fair distribution of environmental benefits,
such as access to clean air, water, and green
spaces, as well as the fair allocation of resources
for environmental protection.
What Is Equity?
Equitable Distribution of Environmental Burdens:
Environmental justice addresses the
disproportionate burden of pollution,
environmental hazards, and negative impacts of
climate change faced by certain communities,
often low-income and minority populations, calling
for the fair distribution of these burdens to prevent
any group from unfairly enduring higher pollution
levels or environmental risks.
Community Empowerment: Environmental justice
underscores involving affected communities in
decision-making processes regarding
environmental policies and projects, recognizing
their valuable insights into unique environmental
challenges and the need for their input in shaping
solutions.
Historical Context: Environmental justice
acknowledges historical injustices, such as
redlining, discriminatory zoning, and other
policies that systematically disadvantaged certain
communities, leading to the unequal distribution
of environmental benefits and burdens. It aims to
rectify these historical inequities by addressing
past and present environmental injustices.
In summary, environmental justice is a critical
component of equity, focusing specifically on
ensuring that all individuals and communities,
especially historically marginalized ones, have equal
access to a clean and healthy environment and are
not disproportionately burdened by environmental
hazards. It seeks to rectify past injustices and
promote fairness in environmental decision-making
and resource allocation.
40
Strategy E1: Foster Community Engagement
Strategy E1 Policies
E1-1 Conduct meaningful community engagement on implementation of sustainable development projects and foster community-led decision-making.
E1-2 Consider increasing access to technical, financial, and educational resources to facilitate community implementation of sustainable practices.
Strategy E2: Promote and Advance Equitable Spaces
Strategy E2 Policies
E2-1 Promote affordable housing opportunities that connect residents to community services and improve quality of life.
E2-2 Evaluate health outcomes by providing residents with equitable access to public spaces and health services.
E2-3 Encourage community garden programs at schools, non-profit organizations, and religious entities to increase urban access to local food and greenspaces.
Community engagement is essential for cities in their
efforts to mitigate climate change. As urban areas are
significant contributors to greenhouse gas emissions, it is crucial to involve local residents in these initiatives.
Engaging communities empowers individuals to
contribute their insights and innovative ideas, fostering customized solutions. Moreover, community
involvement can drive behavioral changes, promote
social cohesion, and enhance the city's overall
resilience.
Equitable spaces are integral to effective climate
mitigation efforts. Climate change disproportionately
impacts vulnerable and marginalized communities,
worsening existing inequalities. Failing to consider
equity in climate action can lead to further disparities in access to resources, health, and economic
opportunities. Equitable spaces emphasize fairness,
justice, and inclusivity, distributing the burden of
climate impacts and the benefits of mitigation policies more fairly.
Local knowledge and expertise can be harnessed to
develop effective climate strategies, while
accountability is increased when city officials work
closely with the community. Sustainable, long-term
change is more likely to be achieved with ongoing
support from engaged residents. Additionally,
community engagement can facilitate resource
mobilization, with volunteers, businesses, and
organizations contributing their time and resources to
climate projects, ensuring the City's sustainability
efforts are well-supported and effective.
They promote social justice by addressing the
disproportionate effects on disadvantaged groups,
ensuring inclusive decision-making, and fostering
public health outcomes. Additionally, equitable spaces
open doors to new economic opportunities in green
industries, enhance community resilience, and
contribute to long-term climate success. Moreover,
they set an example for global collaboration by
recognizing the interconnected nature of climate
challenges. In essence, prioritizing equity in climate
mitigation is essential for ensuring fairness, justice, and sustainability for all.
41
Strategy E3: Build a Strong, Connected Community
Strategy E4: Equitably Distribute Costs and Benefits of Climate Action
Strategy E4 Policies
E4-1 Consider investing in and prioritizing climate action implementation for historically underinvested communities.
Strategy E3 Policies
E3-1 Evaluate capacity for the City and community to implement climate action and better withstand climate shocks and stresses.
Strong community connections can play a pivotal role
in enhancing resilience to the growing challenges
posed by climate change. In a closely-knit community,
people are more likely to come together in times of
crisis, whether it's extreme weather events, flooding, or other climate-related emergencies. These connections
facilitate the sharing of information and resources,
ensuring a more coordinated response to these
challenges.
A connected community is more adept at implementing
sustainability initiatives, like reducing waste,
conserving energy, and promoting environmentally
friendly practices. By working together, residents can
collectively adopt strategies to mitigate climate change, such as reducing greenhouse gas emissions through
shared transportation options and energy-efficient
practices. These initiatives can help the community
become more resilient to the impacts of climate
change, making it better prepared to adapt and
recover from climate-related events.
Prioritizing climate action implementation in historically underinvested communities is an important step
toward equitably distributing the costs and benefits of climate action. These communities have often
experienced the greatest impact of environmental and
climate-related challenges, experiencing higher levels
of pollution, limited access to clean resources, and
heightened vulnerability to climate impacts. By
directing climate initiatives toward these areas, several key objectives are achieved. Firstly, it addresses
environmental injustices by ensuring that historically
marginalized communities gain access to cleaner air,
water, and a healthier environment.
Secondly, it enhances resilience to climate impacts,
safeguarding vulnerable populations from extreme
weather events and other risks. Additionally, investing in these communities stimulates economic
development, job creation, and poverty reduction,
thereby distributing the economic and social benefits of climate action more equitably. Community engagement
and participation in decision-making processes
empower residents and lead to more effective and
sustainable climate solutions. Lastly, it can positively impact public health and overall well-being, reducing
healthcare costs and improving residents' quality of life. 42 Community Identified Priority
How Will The Plan Be Used?
The City of Monterey Park developed the Sustainability Plan to be a visionary roadmap to both decrease GHG emissions and improve overall resilience to climate change. The timelines, anticipated costs, legislative environment, and benefits assumed in this plan will continue to evolve as new information and opportunities become available. Therefore, this Plan should be viewed as a strategic framework that will be reevaluated over time. This chapter describes the priority areas on which the City should focus during the first five years of the Plan implementation. While other actions will likely be implemented as opportunities arise, the City should focus its resources on these foundational actions. Together, these actions will help reduce GHG emissions, improve resilience, spark innovation and collaboration, and engage the community. 43
Implementation
The Sustainability Plan outlines a series of strategies and policies designed to reduce greenhouse gas
(GHG) emissions in alignment with the State’s goals.
Implementation is anticipated to occur between 2024
and 2045. However, a key purpose of this Plan is to
identify and prioritize key measures and actions to be
implemented in the near term (2024 – 2029) that are
most impactful at to reduce GHG emissions.
Given the extended implementation period, policies
may evolve as the City tracks progress, adapts to
new technologies and legislation, and identifies
funding opportunities for additional GHG emissions
reduction and climate adaptation initiatives.
Building on Past Success
Monterey Park’s 2012 Climate Action Plan (CAP) set
targets to achieve GHG emission reductions in line
with the 2020 State target (Assembly Bill 32). Since
that time, the State of California has exceeded AB 32
targets returning to 1990 emissions levels in 2016,
four years ahead of the AB 32 target. The City also
adopted a new Healthy and Sustainable Community
Element in the City’s General Plan, retrofitted City
facilities with solar panels and LED lighting, added
three full service Compressed Natural Gas (CNG)
buses to their public transit fleet, and adopted a water conservation ordinance. The Plan builds upon these
initiatives from the 2012 CAP and includes a broad
range of new initiatives that extend beyond climate
mitigation efforts, such as incorporating adaptation
and social equity strategies, increasing community
connectivity, and improving GHG emissions reduction
tracking mechanisms.
The Plan also fosters long-lasting and meaningful
partnerships between the City, local partners,
community leaders, and the larger community to
confront climate change. Implementation of the Plan
will help reduce GHG emissions, improve adaptation,
and spark innovation and collaboration, all while
engaging the community.
Looking Towards the Future
When implemented, strategies and policies outlined
in the Plan (see Chapters 3-7) will help the City make
substantial progress towards their GHG emission
reduction and climate equity goals. The Plan builds
on the foundation established in the 2012 CAP by
identifying a suite of impactful policies and
establishing a clear implementation plan which will
transform strategies into on-the-ground programs and
projects with real GHG reduction and climate
resilience impacts. The policies focus on deep
decarbonization within the built environment and
transportation sector, promoting and advancing
equitable development, and building adaptation to
climate change impacts like extreme heat. Notable
policies in the Plan include rapidly transitioning City electricity consumption to renewable or carbon-free
energy sources, greatly expanding electric vehicle
infrastructure, increasing the capacity of cooling
centers, installing backup power sources, and
creating educational programs/resources regarding
climate change.
44 Short- Term Mid- Term Long- Term
Now 3 Years 5 Years 10+ Years
Ongoing
Figure 25. Policy Implementation Phasing
Planning
The climate action planning process is a dynamic and
iterative cycle designed to address the challenges of
climate change. It involves six key steps: Identify,
Assess, Monitor, Control, Evaluate, and Learn &
Adapt.
Identify: In the initial phase, stakeholders identify
and analyze potential climate-related risks and
opportunities. This includes recognizing
greenhouse gas emissions sources, vulnerable
areas, and potential areas for mitigation and
adaptation measures. Stakeholders may include
government bodies, community representatives,
and experts in climate science and policy.
1. Figure 26. Climate Planning Process
greenhouse gas emissions sources, vulnerable
areas, and potential areas for mitigation and
adaptation measures. Stakeholders may include
government bodies, community representatives,
and experts in climate science and policy.
Assess: This step involves evaluating the current
state of greenhouse gas emissions, vulnerability
of communities, and the effectiveness of existing
policies. The assessment provides a foundation
for developing targeted strategies.
2. Monitor: Ongoing monitoring is crucial to track the
implementation of climate actions and assess
their effectiveness. This involves the regular
collection of data on greenhouse gas emissions,
climate-related impacts, and the progress of
implemented measures. Monitoring allows for
real-time adjustments and ensures that actions
are aligned with the overarching goals.
3. Control: With the information gathered through
monitoring, stakeholders implement control
measures to manage and mitigate climate-related
risks. This step involves the execution of planned
interventions, such as introducing renewable
energy initiatives, improving infrastructure
resilience, and implementing sustainable
practices.
4. Evaluate: Regular evaluations are conducted to
measure the success and efficiency of
implemented measures. This involves assessing
the impact on emissions reduction, community
resilience, and overall climate goals. Evaluation
results help stakeholders understand what works
well, what needs improvement, and where
adjustments are required.
5. Learn & Adapt: Learning from both successes
and challenges is integral to the climate action
planning process. Stakeholders use evaluation
findings to adapt strategies, improve policies, and
enhance resilience. This step ensures that the
planning process remains flexible and responsive
to changing climate conditions, emerging
technologies, and evolving community needs.
6. This cyclical approach promotes continuous
improvement, allowing communities to respond
effectively to the dynamic nature of climate change
and its associated challenges. Through each iteration
of the cycle, stakeholders refine their understanding
and response to climate issues, fostering a more
sustainable and adaptive community over time.
Identify
Assess
Monitor
Control
Evaluate
Learn & Adapt
45 Phasing
To achieve significant GHG emission reductions,
Monterey Park should begin implementing the
strategies and policies as soon as possible to make
real progress over the next decade. As depicted in
Figure 22, the Plan takes a phased approach to
implementation:
Phase 1: Policies which will be implemented in
the short-term, over the next three years (2024-
2027)
Phase 2: Policies which will be implemented in
the mid-term, over the next five years (2024-
2029)
Phase 3: Policies which will be implemented in
the long-term, over the next 10+ years (2024-
2034)
The City will create educational campaigns to
communicate Plan goals, progress, and incentives for
implementation.
Community Based Organizations
Monterey Park Residents & Community
Local and regional organizations will help institute
adoption and behavioral changes, and provide input to
the City on community priorities and needs.
External entities and local businesses will help to develop and build new services and update skills in the
marketplace to address new technologies and
communicate updates and benefits to the wider
community.
The broader community will adopt new technologies and
behaviors, utilize programs and incentives, and benefit from a cleaner environment. Monterey Park residents will also communicate benefits out to friends, family, and
colleagues, maximizing the “ripple effect.”
City of Monterey Park
Local Businesses, Utilities, Transit Providers
The Team
To successfully reduce GHG emissions and achieve
climate adaptation goals, everyone in the community
must be involved. The City can introduce new
services and technologies, from organic waste
diversion pathways and EV charging infrastructure to
implementing public transit programs and
coordinating environmental justice outreach, but
success depends on community adoption and
collaboration. Achieving meaningful progress towards
reducing our GHG emissions and furthering
adaptation practices starts with City leadership,
through policies, education, and investments that act
as catalysts for change throughout the broader
community.
Valued partners in the community, including San
Gabriel Valley Council of Governments (SGVCOG),
Southern California Edison, other local utilities, and
various community-based organizations, will provide
support for these policies with programs and
incentives. Partnerships can more effectively help
businesses and residents leverage programs and
incentives to work together to reduce environmental
impact, adapt quicker to climate change, and
decrease GHG emissions. As policies and programs
evolve, City staff will continue to engage the
community, provide progress updates, and create
ongoing opportunities to solicit community feedback.
46 Figure 27. Community Roles in Climate Action
City Leadership
Implementation and monitoring is central to the
success of any plan in achieving GHG reduction
targets and increasing adaptation to climate change.
Implementation planning involves identifying
responsible parties for implementation. Several
departments within the City of Monterey Park will play
a key role in the Plan’s implementation and
monitoring. Responsible parties are listed and
described below.
City Manager’s Office
The City Manager’s Office serves as the chief
executive officer of the City under the direction of the City Council. In this capacity, the City Manager’s
Office provides and oversees overall direction and
coordination of city operations, continual monitoring
and evaluation of services and programming to
ensure their relevance with community needs,
procurement of available grant funds to achieve
special projects, and new commercial and industrial
development.
Community Development
The Community Development Department is
comprised of the Building and Safety, Planning, and
Economic Development divisions. This Department
maintains the City's physical environment through the
effective and efficient use of the City's legislative
mandates, including maintaining the General Plan,
zoning, and building, which provide a solid
foundation for an excellent quality of life for the
community. Additionally, this Department is
responsible for encouraging business investment
opportunities and job creation, expanding the City's
tax base, supporting business attraction and retention
activities, and assisting business building efforts
through innovative and implementable approaches
that advance inclusion, diversity, and accessibility.
This Department will play a key role in developing
energy ordinances, efforts to update or adopt climate-
friendly building codes, efforts to equitably distribute costs and benefits of climate action in the
procurement of grants for GHG emissions reduction
projects and tracking and monitoring progress of the
Plan.
Police
The Police Department has the primary responsibility
of providing for the maintenance of social order within carefully prescribed ethical, legal, and constitutional restrictions. Its objective is the prevention of crime, detection and investigation of criminal conduct, and
the apprehension of violators. This department will
also play a key role in increasing the community’s
capacity to respond effectively to emergencies and
prepare for unavoidable disasters, and help to
enforce safety guidelines as part of active
transportation plans.
Human Resources
The Human Resources Department is responsible for
personnel matters affecting all city departments.
Human resources serves as an internal consultant
helping other city departments recruit and retain the
best possible workforce, onboarding and training new
employees, ensuring a fair and equitable system of
personnel management, and resolving employee
relations problems. This department will play a key
role in community engagement training for City staff,
understanding the liability of specific projects outlined in the Plan’s measures and actions and updating and
monitoring the City’s rideshare policy to encourage
increased active and public transit mode share.
Library
The Library Department provides informational,
educational, and recreational materials and resources
in a variety of formats to meet the needs of the
community. The Library Department also collects and
preserves historical documents, papers, photographs,
and other memorabilia. The Library also partners with
community based organizations to provide valuable
services to members of the Monterey Park
community including career resources, health
programing, and legal assistance. This
department will play a key role in helping provide
information for extreme heat and other climate
change education programs.
47
Fire
The Fire Department is responsible for providing
quality emergency, preventative, and risk reduction
activities to the community. Personnel are also
responsible for risk identification, public education,
safety education, code enforcement, increased
Community Emergency Response Teams (“CERT”)
training, and fire investigation activities. The Fire
Department is also responsible for developing the
Local Hazard Mitigation Plan. This department will
play a key role in working with Public Works to ensure
electrification strategies are safe and equitably
available and increasing the community’s capacity to
respond effectively to emergencies and prepare for
unavoidable disasters.
Conclusion
In conclusion, while effective city leadership plays a
pivotal role in steering the course toward
sustainability, the success of our Sustainability Plan
ultimately hinges on the active involvement and
commitment of our community. City leaders provide
the vision and framework, but it is through collective
community support and participation that we will
witness the tangible impact of emission reductions
and the widespread adoption of sustainable
practices. The synergy between leadership and
community engagement creates a powerful force for
positive change, fostering a resilient and
environmentally conscious city for generations to
come. Together, as stewards of our shared future, we
have the opportunity to build a sustainable legacy
that reflects the values and aspirations of our vibrant community.
Recreation and Community Services
The Recreation and Community Services Department
is responsible for the development, implementation,
coordination, and delivery of recreational and leisure
time activities. The programs are to promote the well-
being and enjoyment of life for the City’s residents
through the fulfillment of their recreational, cultural, social, and educational needs. This Department will
play a key role in community education and outreach,
and partnering with community-based organizations
and local utilities to ensure equitable transition to
clean energy and other low emission opportunities.
The Recreation and Community Services Department
will also play a key role in assessing the effectiveness of current City cooling centers in serving the needs of vulnerable populations.
Public Works
The Public Works Department is responsible for
providing and maintaining the City's infrastructure in a manner that ensures the health, safety, and welfare
of the City's residents and visitors. This includes the planning, design, construction, repair and
maintenance of City vehicles and equipment, and
operations of public land in parks, roadways,
sidewalks, public buildings, and sewer systems. This
department will play a key role in developing active
transportation infrastructure, nature-based solutions
to climate change (e.g., Tree Master Plan, green
stormwater infrastructure), and implementing
programs like the Urban Water Management Plan’s
water conservation program.
Finance
The Finance Department works to preserve a strong
financial condition by creating responsible financial
strategies, effectively managing the City's resources,
and providing analysis and recommendations that
ensure optimal economic outcomes. The Finance
Department also oversees and maintains the City’s
information systems and communication systems.
Additionally, the Housing Division of this Department
administers affordable housing. The Finance
Department will play a key role in identifying funding
and pathways for projects outlined in the Plan’s
measures and actions.
48
49 Technical Language In The Plan
In the spheres of scientific and technical discourse, the frequent utilization of acronyms and abbreviations is customary for conciseness and precision. This section serves as an essential reference, providing definitions for the shorthand expressions encountered throughout the Sustainability Plan chapters. Whether you are a seasoned professional or a newcomer, familiarizing yourself with this table will enhance your comprehension of key terms in fields such as environmental science, technology, and climate change discussions.
AB Assembly Bill
BAU Business as usual
CalRecycle California Department of Resource, Recycling, and Recover Caltrans California Department of Transportation
CAP Climate Action Plan
CARB California Air Resources Board
CEC California Energy Commission
CH₄ Methane
CIP Capital Improvement Project
CNG Compressed Natural Gas
CO₂ Carbon dioxide
CO₂e Carbon dioxide equivalent
DOT Department of Transportation
EO Executive Order
EV Electric Vehicle
GHG Greenhouse Gas
GWP Global Warming Potential
HFCs Hydrofluorocarbons
ICLEI International Council for Local Environmental Initiatives 50
IPCC United Nations Intergovernmental Panel on Climate Change kW Kilowatt
MT Metric Ton
MT CO₂e Metric tons of carbon dioxide equivalent
NASA National Aeronautics and Space Administration
N₂O Nitrous oxide
PFCs Perfluorocarbons
PV Photovoltaic
RCP Representative Concentration Pathway
RPS Renewable Portfolio Standard
RTP Regional Transportation Plan
SCAG Southern California Association of Governments
SB Senate Bill
SF₆ Sulfur hexafluoride
TOD Transit Oriented Development
US EPA United States Environmental Protection Agency
VMT Vehicle Miles Traveled
ZEV Zero Emission Vehicle
51
Term Definition
Active Transportation A means of transportation that is powered by human energy, for example walking or biking.
Adaptation Adjustment or preparation of natural or human systems to a new or changing environment which moderates harm or exploits beneficial opportunities.
Anthropogenic Made by people or resulting from human activities; usually used in the context of emissions that are produced as a result of human activities.
Atmosphere
The envelope of gases surrounding the Earth; the gases that make up the atmosphere primarily include nitrogen (78%) and oxygen (21%), as well as argon, helium, carbon dioxide, methane, and water vapor in trace amounts.
Backup Power Any device that provides instantaneous uninterruptible power, for example, a battery or generator.
CALGreen
An abbreviated reference to the California Green Building Standards code, which sets minimum requirements for sustainable practices for construction (residential and commercial) projects throughout the state. It is updated every three years in accordance with the building cycle.
CALGreen Tier 1 & 2
Requirements beyond the mandatory policies laid out by CALGreen: Tier 1 adds additional requirements to the mandatory sustainability requirements, and Tier 2 further increases those sustainability requirements
CalRecycle Agency that administers and provides oversight for all of California’s state- managed non-hazardous waste handling and recycling programs.
California Air
Resources Board
(CARB)
The lead agency for climate change programs that also oversees all air pollution control efforts in California to attain and maintain health-based air quality standards.
California Building
Standards
Commission (CBSC)
The Commission is charged with administering California’s building code adoption process, coordinating and managing the model code adoption process for state agencies, and reviewing and approving building standards adopted by state agencies, among other duties.
Carbon-free Energy Energy produced by a resource that generates no carbon emissions, for example, wind power.
Climate Action Plan A strategic roadmap outlining specific measures and policies to reduce greenhouse gas emissions and enhance resilience to climate change impacts.
Carbon-
neutrality/Net-Zero
Emissions
Balancing anthropomorphically generated emissions out by removing GHGs from the atmosphere in a process known as carbon sequestration. 52
Carbon
Sequestration
The long-term storage or capture of carbon dioxide and other forms of carbon from the atmosphere through biological, chemical, and physical processes.
Clean Power Alliance
(CPA)
A not-for-profit renewable energy provider across Los Angeles and Ventura Counties. The CPA is an administrator of the Community Choice Aggregation (CCA) program. A CCA program permits cities, counties, or other authorized entities like Community Choice Aggregators to purchase and or generate electricity for residents and businesses located within the boundaries of the jurisdiction.
Climate Hazard A potential occurrence of climate related physical events or trends that may cause damage and loss.
Climate The average of weather patterns over a long period of time (usually 30 or more years).
Climate Change A change in the average conditions — such as temperature and rainfall — in a region over a long period of time.
Compressed Natural
Gas (CNG)
CNG is primarily composed of methane and is stored under high pressure, making it suitable for use in vehicles and industrial processes as a sustainable and low-emission energy source.
Community Based
Organization (CBO)
A public or private nonprofit organization that is representative of the community or specific segments of a community, and provides educational or outreach services to the community.
Commercial Vehicle
A vehicle which is used or maintained for the transportation of persons for hire, compensation, or profit or designed, used, or maintained primarily for the transportation of property (for example, trucks and pickups).
Complete Streets
Are designed and operated to enable safe use and support mobility for all users.
Complete Streets approaches address a range of elements including sidewalks, bicycle lanes, bus lanes, public transportation stops, and median islands.
Decarbonization
Replacing technologies and services that run on fossil fuels (ex. natural gas) with ones that run on zero-carbon sources of energy (for example electricity from renewable energy like solar or wind power), ideally from renewable sources.
Disadvantaged
Communities
Areas which suffer disproportionately from a combination of economic, health, and environmental burdens (e.g., poverty, high unemployment, air and water pollution, presence of hazardous wastes, as well as higher rates of asthma and heart disease).
Emissions The release of a substance (usually a gas when referring to the subject of climate change) into the atmosphere.
Environmental
Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
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Electric Vehicle (EV) A vehicle that uses one or more electric motors or traction motors for propulsion.
Electrification
Replacing technologies or processes that use fossil fuels, like internal combustion engines and gas boilers, with electrically-powered equivalents, such as electric vehicles or heat pumps. These replacements are typically more efficient, reducing energy demand, and have a growing impact on emissions as electricity generation is decarbonized.
Energy Storage
Can provide frequency regulation to maintain balance between the network’s load and detected power generated, achieving more reliable power supplies. Batteries are an example of energy storage.
Fossil Fuel
A general term for fuel formed from decayed plants and animals that have been converted to crude oil, coal, natural gas, or heavy oils by exposure to heat and pressure in the Earth’s crust.
Greenhouse Gas
(GHG)
A gas that absorbs infrared radiation, traps heat in the atmosphere, and contributes to the greenhouse effect.
Global Warming
Potential (GWP)
Total contribution to global warming resulting from the emission of one unit of that gas relative to one unit of the reference gas, carbon dioxide, which is assigned a value of 1.
Greywater Greywater refers to water that has been used domestically, commercially, and industrially.
Global Warming
Potential (GWP)
A measure of how much heat a greenhouse gas traps in the atmosphere over a specific time period, relative to carbon dioxide
Local Governments
for Sustainability
(ICLEI)
A global network of more than 1,750 local and regional governments committed to sustainable urban development – emissions estimates were calculated using ICLEI’s best available methodologies.
Intergovernmental
Panel on Climate
Change (IPCC)
The United Nations body for assessing the science related to climate change.
Major Renovation 50% or more of the property area renovated Mitigation An action that will reduce or prevent greenhouse gas emissions, such as electrifying buildings that previously ran on natural gas.
Organic Material Natural or organic materials, for example food scraps and yard waste.
Photovoltaic (PV) Relates to the production of electric current at the junction of two substances exposed to light (e.g. solar energy).
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Renewable Energy Energy derived from natural sources that are replenished at a higher rate than they are consumed (ex. wind, biomass).
Resilience Ability to anticipate, prepare for, and respond to hazardous events, trends, or disturbances related to climate.
Sequestration The storage of carbon in plants or materials so that it cannot enter the atmosphere and cause additional warming.
Transportation
Demand
Management (TDM)
Transportation Demand Management focuses on how people make their transportation decisions, and facilitates greater usage of infrastructure for transit, ridesharing, walking, biking, and telework.
Transit Oriented
Development
A type of urban development that maximizes the amount of residential, business and leisure space within walking distance of public transport.
Vehicle Miles
Traveled (VMT)
The amount of total miles traveled by motor vehicle that are generated over a population over a given timeframe (Ex. 1 year).
Weather The state of the atmosphere over a short period of time (usually an hour or day), describing if it is hot or cold, wet or dry, calm or stormy, clear or cloudy, etc.
Xeriscaping
A landscaping approach that focuses on water conservation by using drought- resistant plants and efficient irrigation techniques to create environmentally sustainable and water-efficient gardens.
Zero-Emissions-
Vehicle A vehicle that never emits exhaust gas from the onboard source of power.
Zero Waste
The conservation of all resources by means of responsible production, consumption, reuse, and recovery of materials and packaging, without burning, and with no discharges to land, water, or air that threaten human health. 55
State Climate Action History
California is a leader in championing legislation aimed at reducing the California’s GHG emissions and adapting to a changing climate. California’s first legislation that addressed climate change was in 1988, when Assembly Bill 4420 directed the State to prepare a GHG inventory to study the impacts of climate change. Since then, California’s governors have issued several executive orders, and California’s legislature has adopted numerous laws to assess climate change, analyze and reduce GHG emissions, and identify and prepare for the impacts of climate change.
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Greenhouse Gas Emission Reduction
AB 32, the Global Warming Solutions Act- 2006
Assembly Bill 32 codified greenhouse gas reduction strategies, requiring California to reduce statewide GHG emissions to 1990 levels by 2020. The state achieved its 2020 GHG emissions reductions target of returning to 1990 levels in 2016, 4 years earlier than mandated by AB 32.
AB 802, the Building Energy Benchmarking Program - 2015 Requires building owners to benchmark their building’s energy usage and report it to the State of California. This is known as an “Energy Benchmark” . The State will then publish this data online so that owners can see how each building compares to its peers . The Building Energy Benchmarking Program requires owners of large commercial and multifamily buildings to report energy use to the California Energy Commission by June 1 annually.
SB 32, the Global Warming Solutions Act- 2016
Senate Bill 32 extended the strategies of AB 32 and set a 2030 strategy of reducing emissions 40 percent from 1990 levels
SB 375, the Sustainable Communities and Climate Protection Act-2008 Senate Bill 375 builds from AB 32 and aims to reduce GHG emissions by linking transportation funding to land use planning. It requires metropolitan planning organizations to create a sustainable communities strategy (SCS) for reducing urban sprawl in their regional transportation plans. Each SCS will demonstrate strategies the region will use to achieve the GHG emissions reduction target set by CARB for 2020 and 2035.
AB 1279, the California Climate Crisis Act- 2022
AB 1279 codified the statewide carbon neutrality, requiring California to reach carbon neutrality no later than 2045.
Renewable Energy Procurement
SB 350, the Clean Energy and Pollution Reduction Act-2015 Established clean energy, clean air, and greenhouse gas reduction strategies, including reducing GHG to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050.
SB 100, the 100 Percent Clean Energy Act- 2018
Established a landmark Measure requiring renewable energy and zero-carbon resources supply 100 percent of electric retail sales to end-use customers by 2 045.
Sustainable Transportation Planning
SB 1, the Road Repair and Accountability Act-2017
Transportation funding legislation that increases the state’s gasoline tax by $0.12 per gallon, raising over $5 billion per year for transportation projects including improvements in efficiency and emission reduction.
SB 375, the Sustainable Communities and Climate Protection Act-2008 Transportation planning legislation setting regional greenhouse gas emission reduction targets for passenger vehicles and requiring agencies to assess and mitigate the vehicle miles traveled (VMT) impacts of new developments.
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Community Air Protection
AB 617, Community Air Protection Program-2017
Air quality legislation that increases air monitoring requirements and penalties for polluters who exceed limitations in vulnerable communities.
Disadvantaged Community Benefits
SB 535, the Greenhouse Gas Reduction Fund -2012
Established initial requirements for minimum funding levels to “Disadvantaged Communities” (DACs). The legislation gives CalEPA the responsibility for identifying those communities, stating that CalEPA’s designation of disadvantaged communities must be based on “geographic, socioeconomic, public health, and environmental hazard criteria.”
AB 1550, the Climate Investments for California Communities Act -2016 Established applicable minimum funding levels from funds generated by AB 32 in the Greenhouse gas Reduction Fund:
At least 25 percent of funds must be allocated toward DACs At least 5 percent must be allocated toward projects within low-income communities or benefiting low-income households
At least 5 percent must be allocated toward projects within and benefiting low-income communities, or low- income households, that are outside of a CalEPA-defined DAC but within ½ mile of a disadvantaged community
Adaptation and Resiliency
AB1482, the California Climate Adaptation Strategy -2015 Requires the California Natural Resources Agency (CNRA), in coordination with the Strategic Growth Council, to oversee and coordinate state agency actions to adapt to climate change. The bill requires CNRA to update the state’s climate adaptation strategy (Safeguarding California), by July 1, 2017, and every three years thereafter.
SB246, the Integrated Climate Adaptation and Resiliency Program -2015 Established an Integrated Climate Adaptation and Resiliency Program for California as of January 1, 2017. The program coordinates regional and local efforts with state climate adaptation strategies to adapt to the impacts of climate change.
SB 379, Climate Adaptation Planning and General Plans-2015 Requires all cities and counties to address climate change adaptation and resilience, in the safety elements of their general plans, in their local hazard mitigation plans, or in stand-alone plans like the PCSP. The bill requires the climate adaptation and resilience review and update to include a set of goals, policies, and objectives based on a vulnerability assessment, as well as implementation strategies, including the conservation and implementation of natural infrastructure that may be used in adaptation projects., policies, and objectives based on a vulnerability assessment, as well as implementation strategies, including the conservation and implementation of natural infrastructure that may be used in adaptation projects. 58
AB2800, Infrastructure Planning -2016
Ensures that the planning and design of state infrastructure projects consider future climate change impacts including prolonged heat waves, extreme precipitation events, severe drought, increasing wildfires, and other potentially dangerous climate impacts on critical infrastructure.
SB1035, General Plan, Safety Element -2018
Requires the safety element to be revised to identify new information on fire hazards, flood hazards, and climate adaptation and resiliency strategies applicable to the city or county that was not available during the previous revision of the safety element.
SB30, Insurance: Climate Change -2018
Looks to innovative insurance and reinsurance businesses to provide opportunities for local communities and homeowners to reduce their risk to climate change impacts. The law focuses on finding incentives for investing in and insuring natural infrastructure to mitigate against climate risks.
SB852, Climate Resilience District -2022
Creates the Climate Resilience Districts Act which authorizes local agencies to create climate resilience districts to address climate change effects and impacts. The districts must be formed for the purpose of raising and allocating funding for and the operating expenses of projects designed and implemented to address climate change mitigation, adaptation, or resilience. The climate resilience districts are limited to funding projects that address sea level rise, extreme heat, extreme cold, and the risk of wildfire, drought, and the risk of flooding.
Energy Storage
AB2514, Energy Storage Targets-2010
Requires electric utilities to install minimum levels of grid-scale energy storage infrastructure.
Automobile Emission Standards
AB1493, California's Greenhouse Gas Vehicle Emission Standards -2002 Identifies climate change as a public health concern, that motor vehicles are a major source of the state’s greenhouse gas emissions, and that reducing these emissions will protect public health and the environment while stimulating the economy and enhancing job opportunities. Among other things, the bill directed the Air Resources Board (CARB) to adopt regulations that achieve the maximum feasible and cost effective reduction of greenhouse gas emissions from passenger vehicles, beginning with the 2009 model year.
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California Climate Registry
SB1771, Greenhouse Gas Emission Reductions-2000
Established the California Climate Registry, which cataloged early greenhouse gas emission reductions and set reduction goals and standards for measurement and verification, as a precursor to AB 32 as well as other states’ and international efforts.
Electric Vehicle Charging
AB1236, EVCS Permit Streamlining-2015
Requires local governments to develop streamlined ordinances for electric vehicle charging infrastructure.
Short-Lived Climate Pollutant Reduction
SB605, Short-Lived Climate Pollutant Reduction Strategy -2016 Directed CARB, in coordination with other State agencies and local air districts to develop a comprehensive short-lived climate pollutant (SLCP) reduction strategy for methane, fluorinated gases (HFCs), and black carbon.
SB1383, Mandatory Organics Recycling -2016
Statewide effort to reduce emissions of short-lived climate pollutants by reducing organic waste disposal to 50% by 2020 and 75% by 2025.
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Project Department Completion Year
Drafted code updates for Mixed Use Zones with Development Standards and Design Guidelines that reduce Vehicle Miles Traveled (VMT)
Community Development 2023
Completed Spirit Bus and Dial-A-Ride evaluation too identify potential barriers and opportunities for improvement Public Works 2023 Partnered with Metro to accept TAP fare and special fare types on Spirit Buses, including reduced fare during special events Public Works 2023 Implemented the Passio Go! App to provide real time
information on Spirit Bus Services to increase ridership and rider experience
Public Works 2023
Partnered with SoCal Edison to provide free seminars on electric induction cooking for small businesses Economic Development 2023 Updated the Density Bonus Ordinance to include a Green
Building Incentive that encourages building practices above standard requirements
Planning 2023
Adopted a Complete Streets Policy City Council 2022
Added three electric parking enforcement vehicles to become the first SGV agency to have an all-electric parking
enforcement fleet
Public Works 2021
Retrofit 3,248 streetlights with LED bulbs Public Works 2021 Adopted a Measure implementing Vehicle Miles Traveled for the purpose of analyzing transportation impacts under CEQA Public Works 2021 Added three CNG vehicles to the Spirit Bus fleet Public Works 2019 Replaced four city cars with hybrid vehicles for engineering, planning, management services, and fire Public Works 2018 Installed EVGO charger station at City Hall Public Works 2017 Low Emission Development
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Retrofit external and internal lighting and HVAC systems at City Siemens facility Public Works 2016
Replaced 32W lighting with 25W LED lamps at 13 City facilities through the Direct Install Program Public Works 2016
Installed public CNG fueling stated at City Yard Public Works 2015 Adopted the Monterey Park Bicycle Master Plan by reference as a component of the large San Gabriel Valley Regional Bicycle Master Plan
Public Works
Planning 2014
Installed solar panels at Langley Center, Bruggemeyer Library, and City Hall Public Works 2013
Adopted a Climate Action Plan City Council 2012
Adopted voluntary CALGreen Tier 1 policies to the building code Community Development 2011
Adopted the Downtown Monterey Park Mixed-Use and
Pedestrian Linkages Plan Public Works 2005
Project Department Completion Year
Drafted revised Safety Element and new Environmental
Justice Elements for City Council review and approval Community Development 2022 Formed the Environmental Commission to develop and
implement policies and increase public awareness of
environmental programs
Public Works 2005
Equitable Development
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Project Department Completion Year
Adopted a Water Conservation ordinance and implementation policies to address ongoing drought conditions Public Works 2020 Implemented Industrial Waste Program to prevent impacts of sewage overflows Public Works 2017
Renovated the Monterey Park Demonstration Garden to offer examples of smart irrigation methods and California Native landscaping
Public Works 2017
Replaced water meters with Automatic Meter Reading
systems to improve water usage reporting accuracy Public Works 2016 Implemented a tiered water rates structure to promote water conservation by customers
Recreation and
Community Services
Public Works
2014
Nature Based Development
Circular Development
Project Department Completion Year
Provided City Staff with high quality reusable water bottles to reduce single use plastics
HR and Risk
Management 2023
Updated Administrative Policy 20-02: Close the Loop/Buy Recycled to include SB 1383 Organics Recycling requirements City Managers 2022 Joined the SGVCOG Regional Food Recovery Program for
compliance with SB 1383 Public Works 2022
Utilized recycled tires for street resurfacing projects to divert passenger tires from the landfill Public Works 2020
Resilient Development
Action Responsibility Timeframe
Drafted revised Safety Element and new Environmental Justice Elements for City Council review and approval.
Community
Development 2022
Promoted Earthquake Brace & Bolt Supplemental Grants for Income-Eligible Homeowners
Building & Safety
Division 2022
Formed the Environmental Commission to develop and
implement policies and increase public awareness of
environmental programs
Environmental
Commission 2005
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Outreach for the Sustainability Plan included workshops and a Sustainability Survey which provides a detailed record of the community's perspective on climate change and priorities on specific climate actions. The survey functions as a pivotal resource for comprehending the perspectives, concerns, and aspirations of Monterey Park residents, establishing a data-driven foundation for the formulation of sustainable initiatives.
Table of Contents
Greenhouse Gas Inventory, Forecast, and Targets Report i Table of Contents
1 Introduction................................ ................................ ................................ ......................... 4 2 Background................................ ................................ ................................ .......................... 5
2.1 Legislative Context................................ ................................ ................................ ..... 5
2.2 Climate Science Context................................ ................................ ............................. 6 3 GHG Emissions Inventory - Community................................ ................................ .................. 7
3.1 Methodology................................ ................................ ................................ ............. 7
3.2 2021 Community GHG Emissions Inventory................................ ................................ . 8
3.2.1 Energy ................................ ................................ ................................ ....... 8
3.2.2 Transportation ................................ ................................ .......................... 14
3.2.3 Solid Waste ................................ ................................ ............................... 21
3.2.4 Water ................................ ................................ ................................ .......23
3.2.5 Wastewater ................................ ................................ .............................. 26
3.3 2021 Community GHG Emissions Inventory Results ................................ .................... 35 4 GHG Emissions Inventory - Municipal ................................ ................................ ................... 40
4.1 Methodology................................ ................................ ................................ ............ 40
4.2 2021 Municipal GHG Emissions Inventory ................................ ................................ .41
4.2.1 Buildings and Other Facilities................................ ................................ ......41
4.2.2 Streetlights and Traffic Signals ................................ ................................ ....43
4.2.3 Water Delivery Facilities................................ ................................ ............. 43
4.2.4 Vehicle Fleet ................................ ................................ ............................. 44
4.2.5 Transit Fleet ................................ ................................ .............................. 45
4.2.6 Solid Waste Facilities ................................ ................................ ................. 45
4.2.7 Wastewater Facilities................................ ................................ ................. 46
4.2.8 Employee Commute ................................ ................................ .................. 47 5 GHG Emissions Forecast................................ ................................ ................................ .......49
5.1 Business-as-usual Scenario GHG Emissions Forecast ................................ ................... 49
5.2 Legislative Adjusted Scenario GHG Emissions Forecast................................ ................ 52
5.2.1 Legislative Reduction Programs ................................ ................................ ..52
5.2.2 Legislative Adjusted Scenario Forecast Results ................................ ............ 56
5.2.3 Legislative GHG Emission Reduction Contribution................................ ........ 57 6 Provisional GHG Emissions Targets ................................ ................................ ....................... 58
6.1 1990 Level GHG Emissions Back-cast................................ ................................ .......... 58
6.2 GHG Emissions Reduction Target Setting................................ ................................ ....59
6.3 Meeting the Targets ................................ ................................ ................................ .61 Tables
Table 1 2021 Inventory GHGs and GWPs................................ ................................ ................. 6 Table 2 Emissions Parameters and Data Sources – Community Electricity Use BE.2.1 ................ 9 Table 3 Community Residential and Nonresidential Electricity Activity Data Adjustment .......... 10 Table 4 Community Residential and Nonresidential Electricity GHG Emissions Calculations ......10