Monterey Park City Council
September 3, 2025

City Council of Monterey Park
The City Council Acting on Behalf of the Successor Agency of the Former Redevelopment Agency, the Housing Authority, the Monterey Park Financing Authority and the Monterey Park Geologic Hazard Abatement District Agenda

Regular Meeting
Monterey Park City Hall Council Chambers
320 West Newmark Avenue, Monterey Park, CA 91754

Wednesday, September 3, 2025
6:30 PM
Mission Statement
The mission of the City of Monterey Park is to provide excellent service, foster growth and opportunity, and create a joyous and collaborative environment.

Land Acknowledgment
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respect to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

General Information
Documents related to an Agenda item are available to the public in the City Clerk’s Office located at 320 West Newmark Avenue, Monterey Park, CA 91754, during normal business hours and at www.montereypark.ca.gov/agendas.

The public may watch the meeting live on the city’s cable channel MPKTV (AT&T U-verse, channel 99 or Charter Communications, channel 182) or by visiting the city’s website at http://www.montereypark.ca.gov/133/City-Council-Meeting-Videos. Per the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call City Hall at (626) 307-1359 for reasonable accommodation at least 24 hours before a meeting. Council Chambers are wheelchair accessible.

Public Participation
You may speak up to 5 minutes on an/each Agenda item. You may combine up to 2 minutes of time with another person’s speaking. No person may speak more than a total of 10 minutes. The Mayor and City Council may change the amount of time allowed for speakers. Written Communication will be accepted up to 24 hours before the meeting by completing an online form at www.montereypark.ca.gov/writtencomm.

While all comments are welcome, the Brown Act does not allow the City Council to take action on any item not on the agenda. The Council may briefly respond to comments after Public Communications is

closed. Persons may, in addition to any other matter within the City Council's subject-matter jurisdiction, comment on Agenda Items at this time. If you provide public comment on a specific Agenda item at this time, however, you cannot later provide comments at the time the Agenda Item is considered.

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1. Call to Order
Mayor

2. Flag Salute
The Monterey Park Fire Explorers

3. Roll Call
Henry Lo, Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang

4. Agenda Revisions and Additions

5. Public Communications

6. Staff Communications

6.A. Library

6.B. Recreation & Community Services

6.C. Public Works

6.D. City Manager's Office

7. Presentation

8. Old Business

9. Consent Calendar
All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

9.A. Approval of Minutes

It is recommended that the City Council consider:

1. Approving the minutes from the special meeting of August 6, 2025 and the regular meeting of August 6, 2025; and

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

9.B. Monthly Investment Report

It is recommended that the City Council consider:

1. Receiving and filing the monthly investment report; and

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

9.C. 2024-2025 Annual Investment Report

It is recommended that the City Council consider:

1. Receiving and filing the 2024-25 Annual Investment Report;

2. Adopting a resolution authorizing the Treasurer to implement the City’s Investment Policy for FY 2025-26; and

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

9.D. Adopting a Resolution updating the City’s reimbursement policies in accordance with AB 1234, to include an additional pre-approved conference for Elected Officials

It is recommended that the City Council consider:

1. Adopting a Resolution updating the City’s reimbursement policies in accordance with

AB 1234, to include an additional pre-approved conference for Elected Officials; and

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

9.E. Resolution Approving Salary Rates and Benefits for City of Monterey Park Executive Management Employees and At-Will Mid-Management Employees

It is recommended that the City Council consider:

1. Adopting a Resolution approving salary rates and benefits for Executive Management Employees and At-will Mid-Management Employees; and

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

9.F. Police Department Body Worn Camera and Digital Evidence Storage Agreement with Axon Enterprise, Inc.

It is recommended that the City Council consider:

1. Authorizing the City Manager to execute an agreement with Axon Enterprises Inc., in a form approved by the City Attorney, to purchase and implement the Axon Body- Worn and In-Dash Camera System, in the amount of $842,000.23; and

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

9.G. Authorize the City Manager to Amend Agreement 1868-A with Fiesta Taxi Cooperative, Inc. to provide Dial-A-Ride Supplemental Service

It is recommended that the City Council consider:

1. Authorizing the City Manager to amend agreement 1868-A for a three-year term with an option to extend for an additional two years in the amount not to exceed $225,000 total, in a form approved by the City Attorney, with Fiesta Taxi Cooperative, Inc. to provide Dial-A-Ride Supplement Service.

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

9.H. Receive and File a Summary of The Windstorm and Firestorm Local Emergency

It is recommended that the City Council consider:

1. Receiving and Filing this staff report summarizing the status of windstorm and firestorm local emergency; and

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

CEQA (California Environmental Quality Act):

The City reviewed the environmental impacts of the extension under 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), and 15378 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, and activities that do not constitute a “project” as defined, respectively. This activity reflects administrative changes and policy making. Accordingly, this activity is exempt from further review.

9.I. Authorize Letters Requesting Support and Funding for Barnes Park Pool Replacement Project to be sent to Elected Representatives

It is recommended that the City Council consider:

1. Authorizing the City Manager to send letters to Elected Representatives for support and funding for the Barnes Park Pool Replacement Project; and

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

9.J. Hispanic Heritage Heritage Month Resolution (As Requested by Council Member Sanchez)

It is recommended that the City Council consider:

1. Approving the attached resolution; and,

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

10. Public Hearing

10.A. Public hearing to consider adopting zoning regulations for the Saturn Park Innovation/Technology Zone (ZCA 25-04)

It is recommended that the City Council consider:

1. Opening the public hearing and taking testimonial and documentary evidence;

2. After closing the public hearing and considering the submitted evidence, introducing and waiving first reading of Ordinance No. _____ amending the Monterey Park Municipal Code ("MPMC") regulating certain land uses in the Saturn Park Innovation/Technology Zone; and

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

CEQA (California Environmental Quality Act):

The City reviewed the environmental impacts of the proposed Ordinance 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 § 15168(c)(2) states that if a project is proposed which has been the subject of a prior certified EIR, and “[i]f the [City] finds that pursuant to Section 15162, no new effects could occur or new mitigation measures would be required, the agency can approve the activity as being within the scope of the project covered by the … EIR, and no new environmental document would be required.” • On December 5, 2019, the City Council adopted Resolution No. 12124 certifying the

Monterey Park Focused General Plan Update Final Environmental Impact Report (the “FEIR”) (State Clearing House (SCH) No. 2001-01-1074). • The amendments proposed by this Ordinance are within the scope of the FEIR, and the circumstances, impacts, and mitigation requirements identified in the FEIR remain applicable to the proposed Project.
• This Ordinance will not facilitate the creation of any development beyond that anticipated and accounted for by the FEIR, does not contemplate any changes which will require major revisions to FEIR, and there are no substantial changes with respect to the circumstances under which FEIR was undertaken. • There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time FEIR was approved.
• Approval of this Ordinance will not result in any new or increased environmental effects, and no new mitigation measures are required.
• Pursuant to CEQA Guidelines § 15168(c)(2), no new environmental documentation is required.

11. New Business

12. City Communications (City Council) / Future Agenda Items

13. Closed Session (if Required; City Attorney to Announce)

14. Adjournment

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.A.

To: The Honorable Mayor and City Council
From: Maychelle Yee , City Clerk
Subject: Approval of Minutes

Recommendation:

It is recommended that the City Council consider:

1. Approving the minutes from the special meeting of August 6, 2025 and the regular meeting of August 6, 2025; and

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

Executive Summary:

The minutes are a record of the official actions taken at the City Council meeting.

Background:

It is recommended that the City Council consider approving the minutes from the special meeting of August 6, 2025 and the regular meeting of August 6, 2025.

Strategic Plan Goal:

N/A

Fiscal Impact:

N/A

Attachments:

1. Draft Minutes

Staff Report
September 3, 2025
ATTACHMENT 1
Draft Minutes

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Mission Statement
The mission of the City of Monterey Park is to provide excellent service, foster growth and opportunity, and create a joyous and collaborative environment.

Minutes
Monterey Park City Council
Financing Authority (MPFA)
Housing Authority (MPHA)
Geologic Hazard Abatement District (GHAD)
Successor Agency (SA)
Special Meeting
August 6, 2025
The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Special Meeting of the Council in Room 266, Second Floor of City Hall, located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, August 6, 2025 at 5:30 p.m.

1. Call to Order
Mayor Ngo called the meeting to order at 5:31 p.m.

2. Roll Call
City Manager Alvarez called the roll:

Council Members Present: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
Council Members Absent: None.

Also present:

City Attorney Karl Berger
Assistant City Manager Diana Garcia
Director of Human Resources and Risk Management Christine Tomikawa Director of Finance Martha Garcia
Director of Public Works Shawn Igoe

Virtually present: None.

3. Public Communications
None.

4. Closed Session
The City Council adjourned to Closed Session at 5:31 p.m.

4.A. Conference with Labor Negotiators (Government Code § 54957.6)

City Negotiators: City Attorney, City Manager, Daphne Anneet, and Director Christine Tomikawa
Employee Organization: Confidential Employees' Association, Firefighters' Association, Mid-Management Association, Police Captains' Association, Police Officers' Association, Police Officers' Mid-Management Association, Professional Chief Officers' Association, and Service Employees' International Union, Local 721.

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August 6, 2025

4.B. Conference with Legal Counsel, Initiation of Litigation (Government Code § 54956.9(d)(4)). Number of Potential Cases: One.

4.C. Conference with Property Negotiators (Government Code §54956.8):

Property: 580 Monterey Pass Rd. (APN 5261-001-052); 582 Monterey Pass Rd. (APN 5261-001-053)
City Negotiators: Inez Alvarez, City Manager; Karl H. Berger, City Attorney; Diana Garcia, Assistant City Manager; Martha Garcia, Director of Finance Negotiating Party: 3M Property Investment Co.

Under Negotiation: Purchase price, and terms of payment

5. Adjournment
The City Council reconvened and adjourned from Closed Session with all Council Members present at 6:12 p.m.

There being no further business for consideration, the meeting was adjourned at 6:12 p.m.

Action Taken: No reportable action taken in Closed Session.

__________________
Maychelle Yee
City Clerk

Approved on MM DD, 2025, at the Regular City Council Meeting

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Mission Statement
The mission of the City of Monterey Park is to provide excellent service, foster growth and opportunity, and create a joyous and collaborative environment.

Minutes
Monterey Park City Council
Financing Authority (MPFA)
Housing Authority (MPHA)
Geologic Hazard Abatement District (GHAD)
Successor Agency (SA)
Regular Meeting
August 6, 2025
The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Regular Meeting of the Council in the Council Chamber, located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, August 6, 2025, at 6:30 p.m.

1. Call to Order
Mayor Ngo called the meeting to order at 6:37 p.m.

2. Flag Salute
The Monterey Park Fire Explorers led the flag salute.

3. Roll Call
City Clerk Maychelle Yee called the roll:

Council Members Present: Henry Lo, Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Y
ang
Council Members Absent: None.

Also present:

City Treasurer Amy Lee
City Manager Inez Alvarez
City Attorney Karl Berger
Assistant City Manager Diana Garcia
Director of Finance Martha Garcia
Director of Human Resources and Risk Management Christine Tomikawa Director of Public Works Shawn Igoe
Director of Recreation and Community Services Robert Aguirre.

Police Chief Scott Wiese
Acting City Librarian LV Frazier
Fire Battalion Chief Ryan Weddle
Finance Manager Laura Borjon
Planning Manager Beth Chow
Recreation and Community Services Manager Christina Alatorre Public Works Manager Xochitl Tipan
Assistant Deputy City Clerk Helena Cho
Recreation Leader Deanna Ramirez Zhu
V
irtually present: None.

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August 6, 2025

4. Agenda Additions, Deletions, Changes and Adoptions
City Manager Alvarez requested to move Agenda Item No. 7.B. to be heard before Public Communications.

5. Public Communications
This item was heard after Agenda Item No. 7.A.
• 24 Hours discussed the recent incident that occurred at the Los Angeles Sheriff's Department, and expressed his opinion on immigration and Hilda Solis, member of the Los Angeles Board of Supervisors. He submitted a written communication to t
he City Clerk's office referencing the Supreme Court Case Brandenburg v. Ohio of 1969.
• Hilda De Leon spoke about the printing fees issued by the Monterey Park Bruggemeyer Library, elaborated on low-income residents potentially losing their food stamps and medical services, and expressed concern regarding the recent events initiated by the United States Immigration and Customs Enforcements. • Maychelle Yee, speaking as a resident, commented on the residents' request t o
m
ove Agenda Item No. 9.J. and 10.B. to be heard at the beginning of the meeting.

She shared her opinion on the City Council's operations and reiterated their obligation to listen to the residents' needs.
• Robert Ogawa Monroe commented on his experience in the Aerobics Water Class provided by the City and articulated his concerns about the closure of the Barnes Park pool and the alleged lack of transparency in supporting the needs of t he
t
axpayers in Monterey Park.
• Dave Jones honored the AYSO Boys team with their win as National Champions and voiced his appreciation to the City for providing their parks as training fields for the AYSO teams.
• Teresa congratulated the AYSO Boys team on their achievement and vocalized her
opinion about the recent comment made by Maychelle Yee. She reiterated the r
esident's need for advocacy and transparency for the residents of the City. • Vivian Hu conveyed her support to have Agenda Item No. 10.B. to be heard after Public Communications. She spoke about the City Council's duty to listen to t he
c
oncerns of the community and wished for a better mailing distribution process for the Proposition 218 ballot.

6. Staff Communications
After Public Communications, Council Member Wong requested Agenda Item No. 6; Staff Communications be heard at the end of the meeting. By Consensus, the City Council agreed to move Staff Communications to be heard after Agenda Item 10. Public Hearing.

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August 6, 2025

6.A. Library
None.

6.B. Recreation & Community Services
None.

6.C. Public Works
None.

6.D. Police Department
None.

Prior to City Council Communications, City Manager Alvarez reported the upcoming Community Clean-up event on August 8, 2025, the Bulky Item Pick-up and Community E- Waste Drop Off event at the Langley Center from 8 a.m. to 12 p.m. and announced the new Spirit Bus routes that began on August 1, 2025.

Director of Recreation and Community Services Director Aguirre reminded the community of the Dive-in Movie Night event at the George Elder pool where they will be featuring the movie Finding Nemo.

Staff Communications was moved to the August 20, 2025 Regular City Council Meeting.

7. Presentation

7.A. Chinatown Service Center - MPK Hope Resiliency Center Updates This item was heard after Agenda Item No. 7.B.

Andrea Tseng, Director of Older Adult Services at the Chinatown Service Center and representative of the Monterey Park Hope Resiliency Center, provided an update on the center's highlights for the year. She elaborated on the services they provide to the community and outlined their program's impact summary and funding challenges.

Peter Ng, Chief Executive Officer of the Chinatown Service Center, spoke about the center's continuous efforts to support the needs of residents in Monterey Park.

7.B. AYSO Alhambra-Monterey Park Region 60 U16 Boys Team - National Games Champions
This item was heard after Agenda Additions, Deletions, Changes and Adoptions.

David Ono, coach of the American Youth Soccer Organization (AYSO), Region 60, Under 16 Boys team, recognized the team for winning the 2025 AYSO National Game Championship, the first national title received by Region 60. He shared words of gratitude to his team and their accomplishments this season.

Mayor Ngo and the City Council provided words of appreciation and presented the team with certificates for their achievement.

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August 6, 2025

8. Old Business
None.

9. Consent Calendar
All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

Action Taken: City Manager Alvarez reported an amendment to the recommendations on Agenda No. 9.L., to reject all bids received from Street Sweeping Services Proposal No. 2025-M02; authorize the City Manager to negotiate and execute a month-to-month contract in a form approved by the City Attorney and at a future meeting, staff will return with an update and a plan forward. Mayor Ngo reported a potential Conflict of Interest for Agenda Item No. 9.D. as he is a member of the Board of Directors for Chinatown Service Center, recused himself and did not participate in the item. The City Council approved Agenda Item Nos. 9.A., 9.B., 9.C., 9.D., 9.E., 9.F., 9.G., 9.H., 9.I., 9.K. and 9.M. except for Agenda Item Nos. 9.J. and 9.L. which were pulled for discussion, separate motion, reading resolutions and ordinances by the title only and waiving further reading thereof.

Motion: Moved by Council Member Wong and seconded by Council Member Lo, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: Vinh Ngo for Agenda Item No. 9.D.

9.A. Minutes
The minutes are a record of the official actions taken at the City Council meeting.

Recommendation:

It is recommended that the City Council consider:

1. Approving the minutes from the special meetings of June 4, 2025, June 18, 2025, June 25, 2025, and July 2, 2025 and the regular meetings of June 4, 2025, June 18, 2025, and July 2, 2025; and

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

Action Taken: The City Council approved the recommendation, on Consent Calendar.

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August 6, 2025

9.B. Monthly Investment Report
As of June 30, 2025, invested funds for the City of Monterey Park total $98,029,648.63.

Recommendation:

It is recommended that the City Council consider:

1. Receiving and filing the monthly investment report; and

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

Action Taken: The City Council received and filed the staff report, on Consent Calendar.

9.C. Identifying a tax rate for collecting voter authorized property taxes for employee retirement benefits based on the assessed property valuation established by the County Assessor’s Office
The City of Monterey Park’s retirement costs are funded in part by a special voter- approved property tax. Each year the City is required to establish a tax rate to generate the retirement property tax based on the assessed valuation established by the County Assessor’s Office.

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution identifying the tax rate and amount of tax revenue required to fulfill the voters’ intent in funding the City’s retirement system; and

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

Action Taken: The City Council adopted Resolution No. 2025-R64, on Consent Calendar.

Resolution No. 2025-R64
A resolution identifying the amount of tax revenue required to fulfill the voters’ intent in funding the City’s Retirement System during Fiscal Year 2025-2026 and authorizing the levy of appropriate taxes.

9.D. Authorize a sub-recipient grant from the U.S. Department of Housing and Urban Development and authorize an agreement with Chinatown Service Center for environmental review
The City was approached by Chinatown Service Center, a California non-profit corporation, (“CSC”) to serve as the responsible entity and conduct an environmental review regarding CSC acquisition of a two-story office building located at 365 East Garvey Avenue, Monterey Park, CA 91754 (“Subject Property”). CSC was recently awarded a federal grant (Grant No. B-24-CP-CA-0141) from the U.S. Department of Housing and Urban Development (“HUD”) to support this property acquisition and future redevelopment efforts (the “Grant”).

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August 6, 2025
As part of the Grant, CSC, as grantee, must coordinate an environmental review pursuant to the National Environmental Protection Act (“NEPA”). CSC requested that the City conduct its environmental review and represented that it will designate the City as a sub-recipient on the Grant, and reimburse the City all of its costs and expenses in analyzing and preparing the environmental report.

The Director of Finance and Public Works Director will coordinate with CSC to ensure that the environmental review complies with applicable law and that the City’s costs and expenses are timely reimbursed, including designating the City as a sub- recipient of the Grant.

A contract will be established between the City and CSC to facilitate this review process and confirm all regulatory requirements are met.

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the City Manager to execute all appropriate and necessary documents to receive sub-recipient grant funding U.S. Department of Housing and Urban Development (“HUD”) related to Grant No. B-24-CP-CA-0141;

2. Authorizing the City Manager to execute a contract, in a form approved by the City Attorney, with Chinatown Service Center for review, analysis, and preparation of environmental report; and

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

Action Taken: Mayor Ngo declared a potential Conflict of Interest on Agenda Item No. 9.D. as he is a member of the Board of Directors for Chinatown Service Center, recused himself and did not participate in the item. The City Council approved the recommendations, on Consent Calendar.

9.E. UCLA Center for Pre-Hospital Care - Authorization to Execute Agreement The University of California, Los Angeles ("UCLA") has been providing Continuing Education and Quality Improvement services to the Fire Department Paramedic and Emergency Medical Technicians since 2007. The current agreement expired June 30, 2025, and requires Council consideration for renewal.

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the City Manager to execute an agreement with the Regents of the University of California ("UCLA"), in a form approved by the City Attorney, in an amount not to exceed $251,100; and

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

Action Taken: The City Council approved the recommendation, on Consent Calendar.

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August 6, 2025

9.F. Adoption of an Ordinance amending Monterey Park Municipal Code Chapter

3.100 (Public Works Contracts) and Subsection C of MPMC § 3.90.050 (Signature Authority) to add sections governing contracting to abate public nuisances and finding such actions to be exempt from further environmental review under California Environmental Quality Act Guidelines §§ 15273, 15301, and 15302
Amendments are proposed to MPMC Chapter 3.100 and MPMC § 3.090.050 to facilitate abatement of nuisance properties in the City. If adopted, the amendments will enable the City Manager, or designee, to award contracts up to $100,000 to repair, rehabilitate, demolish, or take other remedial action on nuisance structures, which can pose serious dangers to public health, safety, and welfare.

At its regular July 16, 2025 meeting, the City Council waived first reading and introduced the proposed Ordinance attached to this report. The associated staff report is attached for reference. Staff recommends that the City Council waive further reading and adopt the Ordinance, which would become effective 30 days after adoption.

Recommendation:

It is recommended that the City Council consider:

1. Waiving the second reading, including by title, and adopting the proposed Ordinance; and

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

Action Taken: The City Council adopted Ordinance No. 2267, on Consent Calendar.

Ordinance No. 2267
An Ordinance amending Chapter 3.100 of the Monterey Park Municipal Code (public works contracts) and MPMC § 3.90.050 (signature authority) to add sections governing contracting to abate public nuisances

9.G. Consideration and possible action to adopt a Resolution approving successor Memorandum of Understanding between the City of Monterey Park and the Monterey Park Police Officers' Mid-Management Association for the term of July 1, 2025 to June 30, 2028.

The City of Monterey Park's ("City") representatives met with MPPOMMA representatives to meet and confer in good faith to negotiate the terms and conditions of successor MOU. The parties reached agreement to be approved by the City Council for a term effective July 1, 2025 to June 30, 2028.

Public Speakers:
• 24 Hours provided his opinion about the Monterey Park Police Department, emphasizing the Police Officer's duty to not obstruct justice within the community.

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August 6, 2025
• Hilda De Leon expressed support for providing fair wages to law enforcement and wished for the Monterey Park Police Department to show more vocal support towards the immigrant community.

Recommendation:

It is recommended that the City Council consider:

1. Adopting Resolution approving successor Memorandum of Understanding ("MOU") between the City of Monterey Park and the Monterey Park Police Officers' Mid-Management Association ("MPPOMMA"); and

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

Action Taken: The City Council approved and adopted Resolution No. 2025-R65, on Consent Calendar.

Resolution No. 2025-R65
A resolution approving the Memorandum of Understanding for contract years 2025- 2028 between the City of Monterey Park and the Monterey Park Police Officers’ Mid- Management Association.

9.H. Resolution approving the Memorandum of Understanding between the City and the Monterey Park Mid-Management & Confidential Association for the term of July 1, 2025 to June 30, 2028
The City of Monterey Park representatives ("City") and MPMMCA representatives met and conferred in good faith to negotiate the terms and conditions of a new MOU.

The parties reached agreement to be approved by the City Council for a term effective July 1, 2025 to June 30, 2028. MPMMCA is a new consolidated employee organization following the merger between the Monterey Park Mid-Management Association and Monterey Park Confidential Association. The City did not object to the request to consolidate.

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution approving successor Memorandum of Understanding ("MOU") between the City of Monterey Park and the Monterey Park Mid- Management & Confidential Association ("MPMMCA"); and

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

Discussion: The City Clerk’s office provided the public and City Council with a copy of the Memorandum of Understanding between The City of Monterey Park, California and the Monterey Park Mid-Management and Confidential Association on August 5, 2025.

Action Taken: The City Council adopted Resolution No. 2025-R66, on Consent Calendar.

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August 6, 2025
Resolution No. 2025-R66
A resolution approving the Memorandum of Understanding for contract years 2025- 2028 between the City of Monterey Park and the Monterey Park Mid-Management and Confidential Association

9.I. Resolution approving successor Memorandum of Understanding between the City and the Monterey Park Service Employees' International Union ("SEIU"), Local 721 for the term of July 1, 2025 to June 30, 2028 The City of Monterey Park's ("City") representatives met with SEIU representatives to meet and confer in good faith to negotiate the terms and conditions of a successor MOU. The parties reached agreement to be approved by the City Council for a term effective July 1, 2025 to June 30, 2028.

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution approving successor Memorandum of Understanding ("MOU") between the City of Monterey Park and the Monterey Park Service Employees' International Union, Local 721 ("SEIU"); and

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

Action Taken: The City Council adopted Resolution No. 2025-R67, on Consent Calendar.

Resolution No. 2025-R67
A resolution approving the Memorandum of Understanding for contract years 2025- 2028 between the City of Monterey Park and the Monterey Park Service Employees’ International Union, Local 721

9.J. Consideration and possible action to adopt a resolution approving the City of Monterey Park, Parks System Master Plan
Since January of 2024, the Recreation & Community Services Director has been working in collaboration with City Fabric to develop a comprehensive Parks System Master Plan. This strategic plan is designed to support Monterey Park’s elected officials, staff, and stakeholders in making informed decisions to enhance and sustain the City’s parks, facilities, programs, and projects over the next ten years. Serving as a guiding framework, the plan offers direction and insight for future planning and funding opportunities while not binding the City to specific projects or commitments. It establishes a foundation to align community goals with available resources and long- term priorities.

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution approving the City of Monterey Park, Parks System Master Plan; and

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

xx-xx
August 6, 2025
Public Speakers:
• Peter Lin congratulated Director Aguirre and the Recreation and Community Services Department for the development of the Parks Systems Master Plan.

He referenced the previous meeting he attended, where he mentioned the idea of finding other sources of funding and presented a donation of lottery tickets to the City to use towards the redevelopment of the Barnes Park Pool.

• Michael Dasca, former swimmer for the Monterey Park Manta Rays (MPMR) and Mark Keppel Swim Team, shared his experience of using the pool during his youth and the lifelong values it taught him and his fellow swimmers. He requested to have the Barnes Park pool reinstated and fixed for public use.

• Dawn Rock expressed her appreciation to Director Aguirre and his dedication to collaborating with the community. She requested the opportunity to implement a Request for Proposal (RFP) for potential plans and development of an Olympic-sized pool and to research outside funding resources. She promoted the San Gabriel Valley Power Up Beacon (SGVPUB) and their commitment to work with the City to begin the process of applying for grants to help restore the Barnes Park pool.

• Christine Wong spoke about her experiences using the Barnes Park pool while raising her children and showed empathy towards the MPMR parents who travel to different cities for their children to practice. She requested to not have the pool be a part of the Park Systems Master Plan as the topic should be a separate priority.

• Cindy Yee was given seven minutes as Arlene Rodriguez yielded her time to her. Cindy commented on certain amenities no longer available to residents at designated parks and the Barnes Park pool being filled with dirt. She reiterated the idea that the Barnes Park pool should be a separate subject, not connected to the Parks Systems Master Plan and SGVPUB's commitment to work with the City to allocate outside funding to restore the pool.

• Vivian Hu questioned if the City Council would be addressing the questions asked by the residents throughout the meeting, as she believed it was important. She inquired about the reason for the pool being filled in with dirt and claimed the Elder Park pool will soon shut down due to the amount of maintenance it needs to remain functioning.

• Margaret Leung echoed Dawn Rock's support of SGVPUB and reiterated the importance of rebuilding the Barnes Park pool. She shared her appreciation of the Recreation and Community Services Department's dedication to collaborating with the community and elaborated on the significance of an RFP as the starting point for the development of a pool design.

xx-xx
August 6, 2025
Discussion: Director of Recreation and Community Services Aguirre, alongside Recreation and Community Services Manager Alatorre, introduced Director of Urban Planning and Design Alex Jung, virtually present from City Fabrick, to present the Parks Systems Master Plan. Alex presented a PowerPoint presentation on the results of the Parks Systems Master Plan, elaborating on the details and feedback provided by the community on ways to improve and expand park spaces, recreation programs, and community wellness.

Director of Recreation and Community Services Aguirre discussed the completed and upcoming projects for the 2025-2026 fiscal year.

Action Taken: The City Council adopted Resolution No. 2025-R68, as amended to provide an implementation plan that prioritizes the list of projects in the Parks Systems Master Plan, specifically prioritizing the Barnes Park pool and to include a complex design or a Request for Plan (RFP).

Motion: Moved by Mayor Pro Tem Yang and seconded by Council Member Wong, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2025-R68
A resolution adopting the City of Monterey Park's Park System Master Plan

9.K. Declaration of Surplus Property: Public Works City-Owned Equipment Pursuant to Rule 1196 of the South Coast Air Quality Management District (“SCAQMD”), the diesel powered 2017 Vactor sewer vacuum truck (“Vactor”) is no longer certified for use in the City’s fleet. The Director of Public Works (“Director”) recommends the adoption of a resolution declaring the Vactor surplus property and authorizing the disposal of the heavy-duty service vehicle through public auction.

Recommendation:

It is recommended that the City Council consider:

1. Adopting a resolution declaring the 2017 Vactor as surplus property and authorizing the City Manager, or designee, to dispose of such property by sale, donation, or other means; and

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

Action Taken: The City Council adopted Resolution No. 2025-R69, on Consent Calendar.

xx-xx
August 6, 2025
Resolution No. 2025-R69
A resolution declaring personal property as surplus and authorizing the City Manager to dispose of such property by sale, donation, or other means

9.L. Street Sweeping Services Bid - Rejection of All Bids On May 12, 2025, the Public Works Director (“Director”) solicited bids for street sweeping services under Proposal No. 2025-M02. Four bids were received by the submittal deadline of June 2, 2025. Due to a significant increase in cost for the service, the Director recommends the rejection of all bids and approval of a Second Amendment to Agreement No.2057-A with Athens Services to extend street sweeping services on a month-to-month basis at a monthly rate of $90,225 beginning September 1, 2025, to explore cost effective options for the service.

Recommendation:

It is recommended that the City Council consider:

1. Rejecting all bids received from Street Sweeping Services Proposal No. 2025- M02;

2. Authorizing the City Manager to execute a Second Amendment with Arakelian Enterprises, Inc., DBA Athens Services, in a form approved by the City Attorney, for continued street sweeping services in a monthly amount of $90,225. The amendment extends the service on a month-to-month basis beginning September 1, 2025;

3. Appropriating $301,000 from Gas Tax Fund 242; and

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

Public Speakers:
• Hilda de Leon reflected on the recent comments made by the residents earlier during the meeting and questioned the reasoning for rejecting the bid. Hilda expressed concerns about the amount of time residents are given when submitting a public comment.

• 24 Hours provided his opinion on Athens, the services they provide, and requested transparency in the bid publication process for the community.

Discussion: During Agenda Item No. 9, Consent Calendar, City Manager Alvarez reported an amendment to the recommendations in Agenda Item No. 9.L. to reject all bids received from Street Sweeping Services Proposal No. 2025-M02; authorize the City Manager to negotiate and execute a month-to-month contract in a form approved by the City Attorney and at a future meeting, staff will return with an update and a plan forward.

xx-xx
August 6, 2025
Action Taken: The City Council approved the recommendations, as amended to reject all bids received from Street Sweeping Services Proposal No. 2025-M02; authorize the City Manager to negotiate and execute a month-to-month contract in a form approved by the City Attorney and at a future meeting, staff will return with an update and a plan forward.

Motion: Moved by Council Member Wong and seconded by Mayor Pro Tem Yang, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

9.M. A Resolution of the City Council of the City of Monterey Park, California, Declaring and Recognizing the Month of August 2025 as National Back-To- School Month
The attached resolution is being brought forth to the Council for consideration at the request of Council Member Sanchez.

Public Speakers:
• 24 Hours commented about the need for children to receive a fair education and shared his opinion about the Los Angeles Unified School District's (LAUSD) education system.

• Hilda De Leon shared an incident that occurred in the Pasadena School District regarding a former employee, shared his appreciation to City Clerk Yee, reiterated the need to provide more affordable library services to the community and expressed his support to have Alhambra Unified School District implement similar electronic use policies as LAUSD.

Recommendation:

It is recommended that the City Council consider:

1. Approving the attached resolution; and

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

Action Taken: The City Council adopted Resolution No. 2025-R70 on, Consent Calendar.

Resolution No. 2025-R70
A resolution of the City Council of the City of Monterey Park, California, declaring and recognizing the month of August 2025 as National Back-To-School Month

xx-xx
August 6, 2025

10. Public Hearing

10.A. Consideration of Costs Resulting from Abating Weed Nuisances and Authorizing Collection via Special Assessment (Public Hearing) This item was heard after Agenda Item No. 10.B.

On February 5, 2025, the City Council determined that weeds, brush, rubbish, refuse and dirt maintained on certain private properties in the City constitute a public nuisance. The Los Angeles County Department of Agriculture Commissioner/Weights and Measures ("County") is contracted to provide weed abatement services to the City. The County compiled its annual list of properties within the City which contain, or have the potential to contain weeds, brush or other flammable materials sufficient to be considered a fire hazard ("the Weed Abatement Declaration List"). Persons identified as owning property on the Weed Abatement Declaration List were provided sufficient notice to either protest their inclusion thereon, or voluntarily remove the nuisance conditions identified on their property.

The deadlines for voluntary compliance or protest have passed, and the County has abated the noncompliant properties on the Weed Abatement Declaration List.

The final step in the County's Weed Abatement process is for the Council to consider approving the County's costs related to abatement and directing that these costs be collected via special assessment.

Recommendation:

It is recommended that the City Council consider:

1. Opening the public hearing, receiving public comment, closing the public hearing;

2. Adopting the attached Resolution approving the Weed Abatement Clearance Charge List and authorizing collection of such costs through special assessment; and

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

Extension of Council Meeting

Action Taken: The City Council extended the Council Meeting to 12:00 a.m.

Motion: Moved by Council Member Lo and seconded by Council Member Wong, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong Noes: Council Members: None

Absent: Council Members: Elizabeth Yang
Abstain: Council Members: None
Recusal: Council Members: None

Action Taken: The City Council opened the public hearing at 11:25 p.m., received no registered speakers, closed the public hearing at 11:25 p.m. and adopted Resolution No. 2025-R71. Mayor Pro Tem Yang left the meeting at 11:04 p.m. and did not participate on the item.

xx-xx
August 6, 2025
Motion: Moved by Council Member Wong and seconded by Council Member Lo, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong Noes: Council Members: None

Absent: Council Members: Elizabeth Yang
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2025-R71
A resolution confirming the itemized Weed Abatement Charge List of weed abatement costs and directing the Los Angeles County Agricultural Commissioner to collect these costs through property tax billing

10.B. Consideration and Possible Action to Adopt Ordinance Establishing Refuse Rates
This item was heard after Agenda Item No. 9.L.

On May 30, 2025, Proposition 218 notices for proposed refuse franchise fee rates were mailed to each parcel number in the City of Monterey Park. The notices provided the date of July 16, 2025 as the public hearing date when the proposed refused franchise fee rates would be considered for adoption.

At the July 16, 2025 meeting, City Council approved the continuation of the public hearing to August 6, 2025 in order to provide more time for property owners to return protest ballots for the proposed rate increase. City Council also proposed phasing the rate increase, as described further below. It is recommended that the City Council consider:

Recommendation:

It is recommended that the City Council consider:

1. Opening the continued public hearing;

2. Receiving all written and verbal testimony regarding the proposed rate increases;

3. Determining whether there is a majority protest against the proposed rate increases;

4. If no majority protest exists, introducing and waiving the first reading of Ordinance No. _____ - Setting the amount of Refuse Rates and Charges (Attachment 1 to the staff report); and

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

Public Speakers:
• Stacy Sung conveyed her frustrations regarding the proposed franchise fee rates and the City Council's decision not to move up Agenda Item No. 10.B. up to be heard earlier during the meeting.

xx-xx
August 6, 2025
• Sandra Gonzalez shared her concerns about the Proposition 218 ballot and wished for more transparency when providing information to the community.

• Jenny, alongside Vivian for translation and Recreation Leader Ramirez Zhu for translation accuracy, asked questions relating to the franchise fee rates and the distribution of the Proposition 218 ballots.

• Maychelle Yee, speaking as a resident, talked about transparency and accountability, and reiterated the importance of listening to the needs of the residents.

• Dave Jones submitted a written communication to the record. He voiced his opposition to the proposed franchise fees, echoing the importance of transparency.

• Kailia Garfield read a written communication submitted by Dave Jones on his behalf. She read Dave's opposition to the proposed franchise fees, claiming the proposal is unlawful under the California Constitution.

• Silvia Poon articulated her opposition on Agenda Item No. 10.B. and shared her and other residents' experience of not receiving a ballot to vote against the proposed franchise fee rates.

• Alex provided his opinion on the franchise fee rates and the City's alleged mishandling of the Proposition 218 process.

• Peter Lin conveyed his opinion on the proposed franchise fee increase, claiming the reason for the increase is due to inflation.

Extension of Council Meeting

Action Taken: The City Council extended the Council Meeting to 11:30 p.m.

Motion: Moved by Council Member Lo and seconded by Council Member Wong, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong, Elizabeth Yang
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Discussion: Director of Public Works Igoe alongside Public Works Manager Tipan presented a PowerPoint presentation detailing the solid waste franchise fee rates.

The City Council ensued in a discussion regarding the proposed franchise fee rates and proposed the idea of phasing 50 percent of the fee in the first year to 100 percent the next year.

xx-xx
August 6, 2025
Action Taken: The City Council opened the continued public hearing at 10:17 p.m.; received all written and verbal testimony regarding the proposed rate increases; closed the public hearing at 11:03 p.m.; determined whether there is a majority protest against the proposed rate increases and introduced and waived the first reading of an Ordinance setting the amount of Refuse Rates and Charges, as amended to provide a 50 percent phase in starting September 1, 2025 and 100 percent starting September 1, 2026. Mayor Pro Tem Yang left the meeting at 11:04 p.m. and did not participate on the item.

Motion: Moved by Council Member Lo and seconded by Council Member Sanchez, motion by the following vote:

Ayes: Council Members: Henry Lo , Vinh Ngo, Jose Sanchez, Thomas Wong Noes: Council Members: None

Absent: Council Members: Elizabeth Yang
Abstain: Council Members: None
Recusal: Council Members: None

Ordinance 1st reading
An Ordinance setting the amount of refuse rates and charges pursuant to Health and Safety Code § 5471 and Monterey Park Municipal Code Chapter 6.08

11. New Business
None.

12. City Communications (City Council) / Future Agenda Items Council Member Wong requested staff to research ways to improve the Proposition 218 process to facilitate communication with the residents.

Council Member Lo spoke about his attendance at National Night Out and thanked the Law Enforcement Staff for their hard work and effort.

Mayor Ngo reported his attendance at the Hong Kong's Television Broadcast Limited (TVB) Mid-life Sing and Shine Competition, the Eagle Accommodation Ceremony for four Eagle Scouts and National Night Out.

13. Closed Session (if Required; City Attorney to Announce)

14. Adjournment
There being no further business for consideration, the meeting was adjourned at 11:32 p.m. in honor of longtime resident and Humanitarian Samuel Young Park.

__________________
Maychelle Yee
City Clerk

Approved on MM DD, 2025, at the Regular City Council Meeting

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.B.

To: The Honorable Mayor and City Council
From: Amy Lee, City Treasurer
Subject: Monthly Investment Report

Recommendation:

It is recommended that the City Council consider:

1. Receiving and filing the monthly investment report; and

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

Executive Summary:

As of July 31, 2025, invested funds for the City of Monterey Park total $98,609,055.81.

Background:

In accordance with the City’s Investment Policy, a monthly investment report is presented to the City Council showing the types of investments, dates and maturities, amounts of deposits, rates of interest, and the current market values for securities with maturity more than 12 months. The attached monthly investment report includes a portfolio summary from Chandler Asset Management.

Strategic Plan Goal:

N/A

Fiscal Impact:

N/A

Attachments:

1. Monthly Investment Report

ATTACHMENT 1
Monthly Investment Report

INVESTMENTS PORTFOLIO PROFILE:

TOTAL BALANCE AT 7/31/2025 98,609,055.81 $

INVESTMENT COMPOSITION
(1)LA COUNTY POOLED INVESTMENT FUND ON DEMAND 3.61% 26,549,663.73$ (2)LOCAL AGENCY INVESTMENT FUND ON DEMAND 4.258% 37,795,311.81$ (3)CHANDLER ASSET MANAGEMENT 4.66% 26,386,080.27$
Purchase Maturity Interest
(4)CERTIFICATES OF DEPOSIT Date Date Rate
1 UFIRST FEDERAL CREDIT UNION 02/24/23 08/25/25 4.85% 245,000 2 FLASTAR BANK NA 07/25/24 01/26/26 4.85% 245,000
3 CONNEX CU 08/06/24 08/06/25 4.95% 245,000
4 TRUSTONE FINANCIAL FCU 08/15/24 08/15/25 4.45% 245,000 5 PREFERRED BANK 09/03/24 09/03/25 4.41% 100,000
6 PREFERRED BANK 09/08/24 09/08/25 4.41% 150,000
7 FINANCIAL PARTNERS CREDIT UNION 09/13/24 09/12/25 4.35% 245,000 8 BARCLAYS BANK 09/18/24 09/18/25 4.30% 239,000
9 ROCKLAND FEDERAL CREDIT UNION 09/25/24 09/25/25 4.50% 245,000 10 KEYPOINT CREDIT UNION 10/30/24 10/30/25 4.35% 245,000 11 RIZE FED CREDIT UNION 12/13/24 12/14/26 4.25% 245,000 12 FIRST SEACOAST BANK 01/27/25 01/27/27 4.15% 247,000
13 GOLDMAN SACHES BANK 01/28/25 01/28/27 4.15% 244,000
14 FIRST BUSINESS BANK 01/30/25 01/29/27 4.15% 244,000
15 FIRST KY BANK 01/30/25 02/01/27 4.15% 249,000
16 AUSTIN TELCO FED CREDIT UNION 01/31/25 02/01/27 4.25% 249,000 17 SOUND CREDIT UNION 01/31/25 02/01/27 4.20% 249,000
18 MORGAN STANLEY BANK 02/12/25 02/12/27 4.30% 244,000
19 MORGAN STANLEY PRIVATE BANK 02/12/25 02/12/27 4.30% 244,000 20 OREGON COMMUNITY CREDIT UNION 02/24/25 02/24/27 4.30% 249,000 21 MERRICK BANK 02/28/25 02/26/27 4.30% 249,000
22 FIRST WESTERN TRUST BANK 03/06/25 03/06/26 4.25% 249,000 23 SOUTHERN STATES BANK 03/21/25 03/22/27 4.15% 249,000 24 CORPORATE AMERICA FAMILY CREDIT UNION03/27/25 03/27/26 4.25% 249,000 25 PARKWAY BANK & TRUST 03/27/25 03/27/26 4.20% 239,000 26 INSBANK 03/31/25 03/30/26 4.20% 249,000
27 TOYOTA FINANCIAL SAVINGS BANK 04/10/25 04/12/27 4.00% 245,000 28 UBS BANK 04/23/25 04/23/27 3.95% 249,000
29 AMERICAN EXPRESS NATIONAL BANK 04/30/25 04/30/27 4.05% 245,000 30 STATE BANK INDIA 05/05/25 05/05/27 4.10% 244,000
31 TRANSPORTATION ALLIANCE BANK 05/12/25 05/12/27 4.00% 249,000 32 FINWISE BANK 05/21/25 05/21/27 4.00% 249,000
33 CONNEXUS CREDIT UNION 07/23/25 07/23/27 4.10% 245,000 Total CDs (33) 4.278% 7,878,000.00$
OTHER INFORMATION:

BANK BALANCE: (1) $9,880,766.91
AVERAGE MATURITY DAYS 179
AVERAGE INTEREST RATE FOR THE MONTH 4.175%

THE CITY'S INVESTMENT HAS SUFFICIENT LIQUIDITY TO MEET THE CITY'S EXPENDITURE REQUIREMENTS FOR THE NEXT 180 DAYS. THE 180-DAY LIQUIDITY DISCLOSURE IS REQUIRED PER GOVERNMENT CODE 53646.

THERE HAVE BEEN NO VARIANCES TO THE INVESTMENT POLICY.
(1) Bank balance is maintained to cover outstanding warrants, payroll checks and on-going operating costs.

CITY OF MONTEREY PARK

INVESTMENT REPORT
JULY 31, 2025

City of Monterey Park | Account #11189 | As of July 31, 2025PORTFOLIO SUMMARYAccount Summary Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS(03/12/24)City of Monterey Park 0.03% 0.61% 3.09%Benchmark Return

1.82AAEnd Values as of 06/30/2025End Values as of 07/31/2025Market ValueAccrued InterestTotal Market Value 26,814,288.11 26,818,809.910.00 0.00Par26,551,386.13Book ValueCost Value36.62%8.90%Farm Credit System 6.82%2.15%

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.C.

To: The Honorable Mayor and City Council
From: Amy Lee, City Treasurer
Martha Garcia, Director of Finance
Subject: 2024-2025 Annual Investment Report

Recommendation:

It is recommended that the City Council consider:

1. Receiving and filing the 2024-25 Annual Investment Report;

2. Adopting a resolution authorizing the Treasurer to implement the City’s Investment Policy for FY 2025-26; and

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

Executive Summary:

The City's Investment Policy requires an annual investment report and a statement of investment policy to be submitted to the City Council for review annually. The attached annual report shows that all investment activities during 2024-25 were conducted according to the City’s Fiscal Year 2024-25 Investment Policy.

Background:

In Fiscal Year 2024-2025, the City Council adopted a revised Investment Policy that better aligned with California Government Code and industry best practices, allowed for broader diversification within the total portfolio, and earned the California Municipal Treasurers Association Investment Policy Certification.

The investment policy reflects the most recent California Government Code amendments pursuant to Senate Bills 998 and 1489. It also allows the Treasury Committee to diversify the portfolio while continuing to prioritize safety, liquidity and yield.

Investments
All investment activities during 2024-25 were made according to the FY 2024-2025 Policy.

During the year, funds were invested in the Local Agency Investment Fund (LAIF), the Los Angeles County Pooled Investment Fund (LACPIF), Chandler Asset Management and Certificates of Deposit.

LAIF was created by statute in 1977. It is a pooled investment program for local agencies and special districts to participate. LAIF is managed by the State and investment securities are purchased in accordance with the Government Code Sections 16430 and 16480.4. LAIF has 2,334 participants and $24.5 billion in its portfolio. As of June 30, 2025, the City has $37.4 million invested with LAIF.

LACPIF allows local agencies in the County of Los Angeles to deposit funds in the Los Angeles County Treasury Pool for the purpose of investment by the Treasurer and Tax Collector of the County. As of June 30, 2025, the City has $26.5 million invested with LACPIF.

Chandler Asset Management, the City’s investment manager, provides client-focused portfolio management focused on safety (principal preservation and risk management) and liquidity followed by a commensurate rate of return while adhering to a designated strategy in compliance with California Government Code Section 53601 and the City’s investment policy.

As of June 30, 2025, the City has $26.3 million invested with Chandler.

Certificates of Deposits (CD). Certificates of Deposit are timed deposits with banks or savings and loans. Federal Depository Insurance Corporation (FDIC) insures each depositor up to $250,000. The City invests CDs with California State or nationally chartered financial institutions. As of June 30, 2025, the City has 33 CDs with $7.9 million invested.

Investment Composition
The City invests idle cash from all operating funds on a pooled basis to maximize returns.

Earnings are allocated to each fund based on the average cash balance. The total investment balance for the City as of June 30, 2025 was $98,029,648.63.

Investment Balance
Timing of revenue collections, such as property tax, business licenses, and franchise tax, affects the monthly investment balance during the year. In 2024-25, monthly investment varied from $90 million to $98 million. The average balance was $93 million.

10-Year City Investment Summary
The chart below shows the City’s investment balance and yield during the past ten years. The City’s average investment yield for Fiscal Year 2024-25 has exceeded the past ten years at

4.54%.

Investment Performance
The Fiscal Year 2024-25 earned interest for the City totaled approximately $3.9 million and the average yield for 2024-25 was 4.54%. The City invested 38.15% of its funds into LAIF,

27.00% into LACPIF, 26.81% into Chandler Asset Management, and 8.04% into certificates of

deposit, which all can be effective mechanisms for obtaining liquidity, diversified portfolios, and competitive yields. The performance from the investment in the LAIF, County pooled funds, Chandler Asset Management, and Certificates of Deposit have provided the City higher investment earnings in 2024-25.

Conclusion
For the Fiscal Year 2025-2026, the Treasury Committee will continue to take a balanced approach consistent with the guidelines of safety, liquidity, and yield as established by the Council adopted Investment Policy. The ultimate goal is to enhance the economic status of the City while protecting its assets.

Strategic Plan Goal:

This staff reports falls under strategic plan goal number 2, "Maintain Stability of our City's Fiscal and Human Resources." This is accomplished by preserving principal, providing sufficient liquidity, and managing investment risks, while seeking a market-rate of return.

Fiscal Impact:

N/A

Attachments:

1. Draft Resolution

2. Investment Policy

Staff Report
September 3, 2025

ATTACHMENT 1
Draft Resolution

RESOLUTION NO. _______

A JOINT RESOLUTION OF THE CITY OF MONTEREY PARK; THE SUCCESSOR AGENCY TO THE MONTEREY PARK REDEVELOPMENT AGENCY; THE
MONTEREY PARK FINANCING AUTHORITY; THE MONTEREY PARK HOUSING AUTHORITY; AND THE GEOLOGIC HAZARD ABATEMENT DISTRICT ADOPTING

AN INVESTMENT POLICY AND AUTHORIZING THE TREASURER AND CITY MANAGER TO IMPLEMENT THE POLICY.

The City Council, acting on behalf of the City of Monterey Park, the Successor Agency to the Monterey Park Redevelopment Agency, the Monterey Park Financing Authority, the Monterey Park Housing Authority and the Geologic Hazard Abatement District (collectively, “City Council”) does resolve as follows:

SECTION 1: The City Council finds and declares as follows:

A. Government Code § 53646 allows the Treasurer or Finance Director to provide the City Council an investment policy for consideration;

B. Government Code § 53607 confirms the City Council’s authority to invest or reinvest funds and, if desirable, to delegate investment authority to the Treasury Committee to implement such authority, on an annual basis; and

C. The Treasurer and Finance Director proposed that the City Council consider the Investment Policy attached as Exhibit “A,” and incorporated by reference, for Fiscal Year 2025-26 (“Policy”).

SECTION 2: After due consideration, the City Council finds that the Policy conforms with applicable law and adopts it for use during Fiscal Year 2025-26 on behalf of the City of Monterey Park and the Successor Agency to the Monterey Park Redevelopment Agency, the Monterey Park Financing Authority, the Monterey Park Housing Authority and the Geologic Hazard Abatement District (collectively, “City”). The Treasurer and City Manager, upon approval by a majority of the Treasury Committee members, is authorized to implement the Policy for this time period on the City’s behalf.

SECTION 3: Supersession of previous investment policies does not affect any penalty, forfeiture, or liability incurred before, or precludes prosecution and imposition of penalties for any violation occurring before this Resolution’s effective date. Any such superseded part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.

SECTION 5: The City Manager, or designee, is authorized to implement this Resolution in accordance with applicable administrative policies and procedures that may be promulgated by the city manager.

SECTION 6: Electronic Signatures. Pursuant to Monterey Park Municipal Code §

3.95.020, this Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 7: This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution.

PASSED AND ADOPTED this 3rd day of September 2025

__________________________
Vinh Ngo, Mayor

ATTEST:

________________________________
Maychelle Yee, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

By:________________________________
Justin A. Tamayo
Assistant City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF MONTEREY PARK )

I, MAYCHELLE YEE, City Clerk of the City of Monterey Park, California, do hereby certify that the foregoing Resolution No. was duly regularly adopted by the City Council of the City of Monterey Park at a meeting held on the 3rd day of September 2025, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSTAIN: Councilmembers:

ABSENT: Councilmembers:

Dated this 3 rd day of September 2025

Maychelle Yee, City Clerk

Staff Report
September 3, 2025
ATTACHMENT 2
Investment Policy

City of Monterey Park

Investment Policy

September 2025

1 CITY OF MONTEREY PARK

INVESTMENT POLICY

ADOPTED September 3, 2025

CONTENTS
I. INTRODUCTION .................................................................................................................. 2 II. SCOPE ................................................................................................................................. 2 III. PRUDENCE .......................................................................................................................... 2 IV. OBJECTIVES ........................................................................................................................ 3 V. DELEGATION OF AUTHORITY .............................................................................................. 3 VI. ETHICS AND CONFLICTS OF INTEREST ................................................................................. 4 VII. INTERNAL CONTROLS ......................................................................................................... 4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ............... 5 IX. AUTHORIZED INVESTMENTS ............................................................................................... 6 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES....................................................... 11 XI. INVESTMENT POOLS/MUTUAL FUNDS ............................................................................... 11 XII. COLLATERALIZATION ....................................................................................................... 12 XIII. DELIVERY, SAFEKEEPING AND CUSTODY .......................................................................... 12 XIV. MAXIMUM MATURITY ...................................................................................................... 13 XV. RISK MANAGEMENT AND DIVERSIFICATION ..................................................................... 13 XVI. REVIEW OF INVESTMENT PORTFOLIO ................................................................................ 14 XVII. PERFORMANCE EVALUATION ............................................................................................ 14 XVIII. REPORTING ....................................................................................................................... 14 XIX. REVIEW OF INVESTMENT POLICY ...................................................................................... 15 GLOSSARY OF INVESTMENT TERMS ................................................................................................. 16

2 I. INTRODUCTION

The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Monterey Park’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This pol icy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City Council and is effective as of the 3rd day of September 2025, and replaces any previous versions.

II. S
COPE

This policy covers all funds and investment activities under the direct authority of the City, as set forth in Government Code Sections 53600, et seq., with the following exceptions:

• Proceeds of debt issuance must be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• Any other funds specifically exempted by the City Council.

P

OOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. P

RUDENCE

Pursuant to Government Code Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:

“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the

3 general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

The Treasurer, Directo r of Finance, and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence are relieved of personal liability for an individual security’s credit risk or market price changes provided that the Treasurer, Director of Finance, or other authorized persons acted in good faith for investment decisions.

Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

IV. O

BJECTIVES

The City’s overall investment program must be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return. Criteria for selecting investments and the order of priority are:
• SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns. • L
IQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. • RETURN ON INVESTMENTS. The City’s investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

V. D

ELEGATION OF AUTHORITY

Authority to manage the City’s investment program is derived from Government Code Sections 41006 and 53600, et seq.

The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is delegated to the Director of Finance. The Treasurer may, but it’s not required to, opine regarding the prudence of such management. Any such opinion should be in writing and directed to the City Council.

4 The Director of Finance will be responsible for all transactions undertaken and will establish a system of procedures (Investment Procedures Manual) and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures promulgated by a Treasury Committee may be established by the City Manager and must, at a minimum, consist of the Treasurer, City Manager and Director of Finance.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City's overall investme nt program must be designed and managed with a degree of professionalism that is worthy of the public trust. The City Council recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

VI. E

THICS AND CONFLICTS OF INTEREST

All participants in the investment process act as custodians of the public trust. Investment officials recognize that the investment portfolio is subject to public review and evaluation.

Consequently, employees and officials involved in the investment process must refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper executio n of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials must disclose any material interests in financial institutions with which they conduct business, and further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers must refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

VII. I

NTERNAL CONTROLS

The Director of Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure must be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuat ion of costs and benefits requires estimates and judgments by management.

5 Periodically, as deemed appropriate by the City Council, an independent analysis by an external auditor may be conducted to review internal controls, account activity and compliance with policies and procedures.

VIII. A

UTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS

To the extent practicable, the Director of Finance must endeavor to complete investment transactions using a competitive bid process whenever possible. The Treasury Committee will determine which financial institutions are authorized to provide investment services to the City. It is the City’s policy to purchase securities only from authorized institutions and firms.

The Director of Finance must ide maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry will determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Government Code Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker-dealer as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
• Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
• Nationally or state-chartered banks.
• Savings association or federal association (as defined in Section 5102 of the Financial Code).
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance with audited financials and a statement certifying that the institution has reviewed Government Code Sections 53600, et seq. and the City’s investment policy.

The Director of Finance will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by California law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with California law.

6 Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser identified by the City Council. Where possible, transactions with broker/dealers will be selected on a competitive basis and their bid or offering prices will be provided via trade ticket, a record of all the terms, conditions, and basic information of a trade agreement, by the investment advisor. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

IX. A

UTHORIZED INVESTMENTS

The City’s investments are governed by Government Code Sections 53600, et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased.

Any investment currently held at the time this policy is adopted which does not meet the new policy guidelines can be held until maturity and is exempt from this policy. At the time of the investment’s maturity or liquidation, such funds must be reinvested only as provided in this policy.

An appropriate risk level determined by the Government Code must be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio must be diversified by security type and issuer to avoid incurring unreasonabl e and avoidable risks regarding specific security types or individual issuers.

1. M
UNICIPAL SECURITIES include obligations of the City, the State of California and any local agency within the State of California, provided that:

a. The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). b. No more than 5% of the portfolio may be invested in any single issuer. c. No more than 30% of the portfolio may be in Municipal Securities. d. The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
a. The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b. No more than 5% of the portfolio may be invested in any single issuer. c. No more than 30% of the portfolio may be in Municipal Securities. d. The maximum maturity does not exceed five (5) years.

7 3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:

a. The maximum maturity does not exceed five (5) years.

4. FEDERAL AGENCIES or United States Government -Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agen cies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:

a. No more than 30% of the portfolio may be invested in any single Agency/GSE issuer.
b. The maximum maturity does not exceed five (5) years. c. The maximum percent of callable agency securities in the portfolio will be 20%.

5. B
ANKER’S ACCEPTANCES, provided that:
a. They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long -term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b. No more than 40% of the portfolio may be invested in Banker’s Acceptances. c. No more than 5% of the portfolio may be invested in any single issuer. d. The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:

a. S
ECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

b. SECURITIES issued by other entities:

(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
(ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (iii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.

8 • No more than 10% of the outstanding commercial paper of any single issuer. • No more than 25% of the portfolio may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. N
EGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state - chartered bank, a savings association or a federal association, a state or feder al credit union, or by a federally licensed or state -licensed branch of a foreign bank, provided that:

a. The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
b. Any amount above the FDIC insured limit must be issued by instit utions which have short-term debt obligations rated “A -1” or its equivalent or better by at least one NRSRO; or long -term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
c. No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
d. No more than 5% of the portfolio may be invested in any single issuer. e. The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:

a. The amount per institution is limited to the maximum covered under federal insurance.
b. No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
c. The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:

a. No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
b. The maximum maturity does not exceed five (5) years.

10. P
LACEMENT SERVICE DEPOSITS, provided that:
a. No more than 30% of the total portfolio may be invested in a combination of qualifying placement service deposits.
b. The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

9 c. Under a provision sunsetting on January 1, 2031, no more tha n 50% of the portfolio may be invested in deposits through placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
d. The maximum maturity does not exceed five (5) years.

11. C
OLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per Government Code Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under the Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:

a. Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian.
b. Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
c. The maximum maturity does not exceed one (1) year.

13. L

OCAL GOVERNMENT INVESTMENT POOLS (LGIPS)
a. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
(i) The City may invest up to the maximum amount permitted by LAIF. (ii) LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments.

b. S

HARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (JPA), provided that:
(i) The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
(ii) Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
(iii)The JPA has retained an investment advisor who is regis tered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

c. LOCAL GOVERNMENT INVESTMENT POOLS
(i) Other LGIPs permitted by the City (such as County Pool as defined by Government Code Section 27000.3).
(ii) There is no issuer limitation for Local Government Investment Pools.

10 14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:

a. The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
b. The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
c. No more than 30% of the total portfolio may be invested in MTNs. d. No more than 5% of the portfolio may be invested in any single issuer. e. The maximum maturity does not exceed five (5) years.

15. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES,

AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:

a. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
b. No more than 20% of the total portfolio may be invested in these securities. c. No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
d. The maximum maturity does not exceed five (5) years.

16. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:

a. MUTUAL FUNDS that invest in the securities and obligations as authorized under Government Code Section 53601 (a) to (k) and (m) to (q), inclusive, and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by Government Code Section 53601 and with assets under ma nagement in excess of $500 million.
• No more than 10% of the total portfolio may be invested in shares of any one mutual fund.

b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:

(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

11 (ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
• No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.

c. No more than 20% of the total portfolio may be invested in these securities.

17. S
UPRANATIONALS, provided that:
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
b. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
c. No more than 30% of the total portfolio may be invested in these securities. d. No more than 10% of the portfolio may be invested in any single issuer. e. The maximum maturity does not exceed five (5) years.

X. P

ROHIBITED INVESTMENT VEHICLES AND PRACTICES

• California law notwithstanding, any investments not specifically described in this policy are prohibited including, without limitation, futures and options. • In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero - or negative-interest accrual if held to maturity are permitted.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XI. I

NVESTMENT POOLS/MUTUAL FUNDS

The City must conduct a thorough investigation of any pool or mutual fund before making an investment, and on a continual basis thereafter. The Treasury Committee must develop a questionnaire which will answer the following general questions:

• A description of eligible investment securities, and a written statement of investment policy and objectives.

12 • A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

XII. C

OLLATERALIZATION

CERTIFICATES OF DEPOSIT (CDS). The City requires any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Treasurer’s Office which regulates banks in California to secure any uninsured portion of a Non- Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit must be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

C
OLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City requires any bank or financial institution to comply with the collateralization criteria defined in Government Code Section 53651.

R
EPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with the Government Code:

• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. • Financial institutions shall mark the value of the collate ral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City must receive monthly statements of collateral.

XIII. D

ELIVERY, SAFEKEEPING AND CUSTODY

DELIVERY-VS.-PAYMENT (DVP). All investment transactions must be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio must be held in safekeeping in the City’s name by a third-party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly

13 report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

XIV. M

AXIMUM MATURITY

To the extent possible, investments must be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution or minute order granted authority to make such an investment.

XV. R

ISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. • The City may elect to sell a security before its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions taken related to the downgrade by the investment adviser will be communicated to the Treasury Committee in a timely manner. • If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council by the Treasurer.

M

ITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

14 The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns before maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

XVI. R

EVIEW OF INVESTMENT PORTFOLIO

The Treasurer and Director of Finance must periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVII. P

ERFORMANCE EVALUATION

The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Tre asurer and Director of Finance must monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer and Director of Finance’s quarterly report. The Treasurer and Director of Finance shall select an appropriate, readily available index to use as a market benchmark.

XVIII. R

EPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Treasurer to the City Council in accordance with Government Code Section 53607.

QUARTERLY REPORTS
The Treasurer will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter.

These reports will disclose, at a minimum, the following information about the City’s portfolio:

1. An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of t he valuation, type of investment, issuer, maturity date and interest rate.

15 2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; LGIPs, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,
e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods;

5. A statement of comp liance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

A

NNUAL REPORTS
A comprehensive annual report will be presented to the City Council by the Treasurer. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XIX. R

EVIEW OF INVESTMENT POLICY

The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modificat ions or amendments must be presented by the Director of Finance to the City Council for its consideration and potential adoption.

16 GLOSSARY OF INVESTMENT TERMS

AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

A
SSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

B
ENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The indicated price at which a buyer is willing to purchase a security or commodity.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

C
OLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal

17 plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short -term securities, such as T -bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

D
IVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

F
EDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agenc y insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

F
EDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

F
IDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.

J
OINT POWERS AUTHORIT Y (JPA). An entity created by two or more public agencies that share a common goal in order to jointly exercise powers common to all members through a joint powers agreement or contract.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non -profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is

18 compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measu red from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100 -basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short -term debt instruments (T -bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

M
ORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

M
UNICIPAL SECURITIES. Securities issued by state and local ag encies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

N
ATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk.

The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

N
EGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state- licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

OFFER (ASK). An indicat ed price at which market participants are willing to sell a security. Also referred to as the “ask price”.

PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.

PLACEMENT SERVICE DEP OSITS. A private service that allows local ag encies to invest in FDIC - insured deposits with one or more banks, savings and loans, and credit unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

19 PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and ( 2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

PRUDENT INVESTOR (PRUDENT PERSON) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

S
AFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, mai ntaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

S
ECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3- 1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative -based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

S
UPRANATIONAL. A Supranational is a multi- national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

T
OTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasur y currently issues three - and six-month T-bills at regular weekly auctions. It also issues “cash

20 management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.D.

To: The Honorable Mayor and City Council
From: Diana Garcia, Assistant City Manager
Subject: Adopting a Resolution updating the City’s reimbursement policies in accordance with AB 1234, to include an additional pre-approved conference for Elected Officials

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution updating the City’s reimbursement policies in accordance with AB 1234, to include an additional pre-approved conference for Elected Officials; and

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

Executive Summary:

On May 21, Council adopted Resolution No. 2025-R47 which updated the City's reimbursement policies in accordance with government codes §§ 53232.2 and 53232.3 and expanded the list of pre-approved events that the Council may attend to include the California LGBTQ+ Leadership Summit. Per Council request, the resolution attached supersedes Resolution No. 2025-R47 and updates the list of pre-approved events to include the International LGBTQ+ Leaders Conference organized by the LGBTQ+ Victory Institute.

Background:

Assembly Bill 1234 (2005) (“AB 1234”) became effective January 1, 2006. AB 1234 required cities to adopt a written policy for reimbursement of “actual and necessary” expenses incurred by City Council members and members of bodies created by the City Council that are subject to the Brown Act. City Council requested that the policy be updated again to include one additional conference, the International LGBTQ+ Leaders Conference organized by the LGBTQ+ Victory Institute.

Strategic Plan Goal:

N/A

Fiscal Impact:

Costs associated with conferences will be included as part of each fiscal year's budget

process.

Attachments:

1. Draft Resolution

Staff Report
September 3, 2025

ATTACHMENT 1
Draft Resolution

RESOLUTION NO.

A RESOLUTION AMENDING THE CITY’S REIMBURSEMENT POLICIES IN ACCORDANCE WITH GOVERNMENT CODE §§ 53232.2 AND
53232.3.

BE IT RESOLVED by the Council of the City of Monterey Park as follows:

SECTION 1: The City Council finds and declares as follows:

A. Elected and appointed City Officials are responsible for promoting and protecting public health, safety, and welfare. Among other things, these duties may require City Officials to:

1. Discuss the City’s concerns with state and federal officials;

2. Participate in regional, state and national organizations that affect the City’s interests;

3. Attend educational seminars designed to improve City Officials’ skills and provide information;

4. Promote public service and morale;

5. Attend meetings, ceremonial events and other activities sponsored by constituents, neighborhood groups, business organizations and similar groups;

6. Promote economic development; and

7. Meet with constituents, business owners and others with an interest in the City.

B. It is in the public interest to reimburse City Officials’ expenses incurred in connection with these activities consistent with the provisions of this Resolution.

SECTION 2: Declaration of Policy. To the extent that any other resolution conflicts with this Resolution, it is superseded in its entirety. This Resolution is adopted in accordance with Government Code §§ 53232.2 and 53232.3 so that the City of Monterey Park may reimburse appropriate expenses incurred by elected and appointed City officials while on authorized travel or otherwise engaged in the conduct of City business. Absent City Council approval, and only in extraordinary circumstances, the City will not reimburse City Officials an amount greater than allowed by this Resolution for expenses incurred during the course of conducting City business.

Resolution No.

SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Resolution:

A. “City Officials” means members of the elected and appointed officials;

B. “Reimbursement” means all forms of payment for expenses incurred by City Officials in the course of their official duties whether paid directly by the City (including, without limitation, with a City-issued credit card) or advanced by City Officials with personal funds and later reimbursed from City funds.

SECTION 4: City Business – Authorized Activities:

A. Expenses incurred while engaging in the following City business activities are generally authorized expenses if all requirements of this Resolution are fulfilled:

1. Communicating with representatives of regional, state and national government on City adopted policy positions;

2. Attending educational seminars designed to improve City Officials’ skill and information levels. A list of recognized meetings is attached as Exhibit “A,” and incorporated by reference;

3. Participating in regional, state and national organizations whose activities affect the City’s interests;

4. Recognizing service to the City (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost);

5. Attending City events; and

6. Attending meetings with constituents, neighborhood groups, business organizations, and attending conferences for the City-approved purpose of attracting or retaining businesses to the City.

B. Expenditures incurred in connection with activities or events not listed in Paragraph A above require prior approval by the City Council.

SECTION 5 : Unauthorized Expenses: The City will not reimburse City Officials for expenses incurred outside the scope of the City Official’s duties including, for example and not limited, the following:

A. The personal portion of any trip. For example, if a City Official elects to travel to an event in advance or stay longer on personal business, the City need only

Resolution No.

reimburse the City Official for roundtrip travel costs and costs incurred during the event’s duration;

B. Political or charitable contributions or events;

C. Family expenses, including partner’s expenses when accompanying a City Official on City-related business, as well as children- or pet-related expenses;

D. Entertainment expenses, including theater, movies (either in- room or at the theater), sporting events (including gym, massage and/or golf related expenses), or ither cultural events;

E. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and

F. Personal losses incurred while on City business.

G. Expenses for which City Officials receive reimbursement from another agency are not reimbursable.

H. Any questions regarding the propriety of a particular type of expense should be resolved by the City Council before the expense is incurred.

SECTION 6: Transportation.

A. Generally. City Officials must use the most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements, using the most direct and time- efficient route. Government and group rates must be used when available.

B. Airfare. Airfares that are equal or less than those available through the Enhanced California Department of General Services (“DGS”) Statewide Travel Program Government Airfare Program offered through the California State Association of Counties ( https://www.counties.org/node/2079
) are presumed to be the most
economical and reasonable for purposes of reimbursement under this policy.

C. Automobile

1. Automobile mileage is reimbursed at Internal Revenue Service rates presently in effect (see www.irs.gov). These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable.

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2. Only travel for City business outside of Los Angeles County is authorized for reimbursement.

3. A City Official may leave from his/her home for City business. However, the City will not reimburse mileage that exceeds mileage from City Hall to the destination point,

D. Car Rental. Rental rates that are equal to or less than those available through the State of California’s Department of General Services website (https://www.dgs.ca.gov/OFAM/Travel/Resources/Page-Content/Resources-List- Folder/Car-Rental) are considered the most economical and reasonable for purposes of reimbursement under this policy.

E. Taxis/Shuttles. Taxis or shuttles fares may be reimbursed, including a 15 percent gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time-efficiency.

F. Airport Parking. Long-term parking must be used for travel exceeding 24-hours.

G. Other. Checked baggage handling fees as charged by the airline.

SECTION 7: Lodging

A. Lodging expenses will be reimbursed only at the single occupancy rate for rooms.

B. Lodging expenses will be reimbursed when travel on official City business reasonably requires an overnight stay.

C. Conferences/Meetings. If lodging is associated with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking.

D. Other lodging. Travelers must request government rates, when available. A listing of hotels offering government rates in different areas is available at https://www.dgs.ca.gov/OFAM/Travel/Resources/Page-Content/Resources-List-

Folder/Lodging. Lodging rates that are equal or less to government rates are presumed to be reasonable and hence reimbursable for purposes of this policy. In the event that government rates are not available at a given time or in a given area, lodging rates that do not exceed the IRS per diem rates for a given area are presumed reasonable and hence reimbursable.

SECTION 8: Meals and Incidental Expenses.

Resolution No.

A. For meals associated with City business within Los Angeles County, a City Official may claim a per diem in accordance with the meals and incidental expenses (M&IE) rates established by United States General Services Administration (GSA).

B. For meals associated with City business outside of Los Angeles County where an overnight stay is required, a City Official may claim a per diem in accordance with the meals and incidental expenses (M&IE) rates established by United States General Services Administration (GSA).

1. The time calculations for per diem starts when the City Official begins travel.

For each 24-hour period thereafter, the City Official can claim the full per diem amount.

2. Receipts are not required to claim per diem.

3. Any reimbursement claim for expenses that exceed the per diem rate may constitute additional income for tax purposes.

C. The City does not pay for alcohol/personal bar expenses.

SECTION 9: Telephone/Fax/Cellular. City Officials will be reimbursed for actual telephone and fax expenses incurred on City business. Telephone bills should identify which calls were made on City business. For cellular calls when the City Official has a particular number of minutes included in the City Official’s plan, the City Official can identify the percentage of calls made on public business.

SECTION 10: Cash Advance Policy

A. From time to time, it may be necessary for a City Official to request a cash advance to cover anticipated expenses while traveling or doing business on the City’s behalf. Such a request for an advance should be submitted to the City Manager fourteen (14) days before the need for the advance with the following information:

1. The purpose of the expenditure(s);

2. The benefits of such expenditure to the residents of the City;

3. The anticipated amount of the expenditure(s) (for example: hotel rates, meal costs, and transportation expenses); and

4. The date of the expenditure(s).

B. Any unused allowance must be returned to the City’s Finance Department within two business days of the City Official’s return, along with an expense report and

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receipts documenting how the advance was used in compliance with this Resolution.

SECTION 11: Credit Card Use Policy.

A. City does not issue credit cards to individual City Officials but does have a credit card for selected City expenses. City Officials may use the City’s credit card for such purposes as airline tickets and hotel reservations by following the same procedures for cash advances. Receipts documenting expenses incurred on the City credit card and compliance with this policy must be submitted within five business days of use.

B. City credit cards may not be used for personal expenses, even if the City Official subsequently reimburses the City.

SECTION 12: Expense Report Consent and Submission Deadline.

A. All cash advance expenditures, credit card expenses and expense reimbursement requests must be submitted on an expense report form provided by the City.

B. Expense reports must document that the expense in question met the requirements of this policy. For example, if a meeting is with a legislator, the City Official should explain whose meals were purchased, what issues were discussed and how those relate to the City’s adopted legislative positions and priorities.

C. City Officials must submit their expense reports within thirty (30) days after an expense is incurred, accompanied by receipts documenting each expense.

Restaurant receipts, in addition to any credit card receipts, are also part of the necessary documentation.

D. Inability to provide such documentation in a timely fashion may result in the expense being borne by the City Official.

E. All expenses are subject to verification that they comply with this policy.

SECTION 13: Reports to City Council. At the City Council meeting following an activity, each City Official must briefly report on meetings attended at City expense. If multiple City Officials attended, a joint report may be made.

SECTION 14: C ompliance With Laws. Some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the California Public Records Act.

SUBJECT 15: Violation of this Policy. Use of public resources or falsifying expense reports in violation of this Resolution may result in any or all of the following:

Resolution No.

A. Loss of reimbursement privileges;

B. A demand for restitution to the City;

C. The City’s reporting the expenses as income to the City Official to state and federal tax authorities;

D. Civil penalties of up to $1,000 per day and three times the value of the resources used; and

E. Prosecution for misuse of public resources.

SECTION 16: Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts were made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.

SECTION 17: Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.

SECTION 18: Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.

SECTION 19: Severability. If any part of this Resolution of 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 provisions or applications and, to this end, the provisions of this Resolution are severable.

SECTION 20: E
lectronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 21: Recordation. The Mayor, or pres iding 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.

Resolution No.

SECTION 22: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED AND ADOPTED this 3rd day of September 2025.

Vinh T. Ngo, Mayor

ATTEST:

Maychelle Yee, City Clerk
APPROVED AS TO FORM:

Karl H. Berger, City Attorney

State of California )
County of Los Angeles ) ss.

City of Monterey Park )

I, Maychelle Yee, City Clerk of the City of Monterey Park, California, do hereby certify that the foregoing Resolution No. 2025- was duly and regularly adopted by the City Council of the City of Monterey Park at a regular meeting held on the 3
rd day of September, 2025 by the following vote:

Ayes: Council Members:

Noes:

Absent:

Abstain:

Recusal:

Council Members:

Council Members:

Council Members:

Council Members:

Dated this 3
rd day of September, 2025.

Maychelle Yee, City Clerk
City of Montrey Park, California

Resolution No.

EXHIBIT A

Name of Conference

ï Any conference or travel approved in advance by the City Council. ï League of California Cities Annual Conference
ï Annual Meeting of the Employee Relations Inst. League of California Cities ï Annual League of California Cities Conference for Planning Commissioners ï Annual Legislative Conference League of California Cities ï National Conference of the International City/County Managers Association ï Mayors and Council Members Institute League of California Cities ï California Joint Powers Authority Annual Meeting
ï California LGBTQ+ Leadership Summit
ï International LGBTQ+ Leaders Conference organized by the LGBTQ+ Victory Institute
ï Annual Meeting of the California Chapter of the American Planning Association (APA)
ï National Conference of American Planning Association (APA) ï League of California Cities Mayors and Council Members Department ï Asian American Pacific Islanders Leadership Elected and Appointed Annual Conference
ï Independent Cities Association Summer Conference
ï Independent Cities Association Winter Conference
ï California Contract Cities Spring Conference
ï California Contract Cities Fall Conference
ï California Contract Cities Sacramento Conference
ï California JPIA Risk Management Conference
ï International Conference of Shopping Centers: National Conference ï International Conference of Shopping Centers: Southern California Conference ï Southern California Association of Governments: Annual Planning Session ï National Association of Latino Elected and Appointed Officials Annual Conference
ï National League of Cities: Annual Congressional City Conference ï National League of Cities: Annual Congress of Cities an Exposition ï U.S. Conference of Mayors Winter Meeting
ï U.S. Conference of Mayors Annual Meeting

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.E.

To: The Honorable Mayor and City Council
From: Christine Tomikawa, Human Resources/Risk Management Director Subject: Resolution Approving Salary Rates and Benefits for City of Monterey Park Executive Management Employees and At-Will Mid-Management Employees

Recommendation:

It is recommended that the City Council consider:

1. Adopting a Resolution approving salary rates and benefits for Executive Management Employees and At-will Mid-Management Employees; and

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

Executive Summary:

The City of Monterey Park representatives ("City") discussed the salary and benefits resolution with the unrepresented Executive Management employees and At-will Mid-Management employees. The unrepresented Executive Management employees and At-will Mid- Management employees have agreed to the salary and benefit items reflected in the resolution to be approved by the City Council.

Background:

In prior years, the Executive Management resolution consisted of director-level classifications.

This resolution incorporates the unrepresented At-will Mid-Management classifications for salary and benefits provided by the City. The City and the unrepresented management group have agreed to the following:
• Cost of living adjustment ("COLA") - Executive Management salary ranges will not be increased but Executive Management Team ("EMT") employees will receive a COLA as follows: 3.0% effective the first full pay period after July 1, 2025; 3.5% effective the first full pay period after July 1, 2026, and 3.0% effective the first full pay period after July 1, 2027. At-will Mid-Management ("MMA") salary ranges will be increased by the COLA listed above.
• Adding Separate Salary Range for the following classifications: Assistant City Manager, Fire Chief, and Police Chief. This range will be increased by 12.1% effective July 5, 2025.

• Adding At-will Mid-Management classifications - Administrative Manager, Assistant Water Utility Manager, Building Official, Finance Manager, Human Resources/Risk Management Manager, Information Technology Services Manager, Library Manager, Planning Manager, Public Works Manager, Recreation Manager, and Water Utility Manager.
• Health Insurance - Cafeteria plan increase effective the first pay date in December 2025 up to $2,100.00 per month; effective the first pay date in December 2026, increase up to $2,250.00 per month; effective the first pay date in December 2027, increase up to $2,400.00 per month. Increase in monthly opt-out of medical insurance to $600.00 per month.
• Salary Ranges - MMA classifications will change from a 10-step salary range to a minimum and maximum salary range.
• Longevity Pay - add longevity pay at the 5, 10 and 15 years of service marks and increasing longevity pay at 20 and 25 years. Modifying language to include years of full- time public service from other public agencies (in line with Mid-Management & Confidential Association). Police Chief longevity pay will increase to be in line with the Monterey Park Police Captains' Association.
• 457 Matching City Contribution - effective the first full pay period after approval of the resolution, MMA will increase up to $150.00 per pay period; effective the first full pay period after July 1, 2026, the contribution will increase up to $200.00 per pay period; and effective the first full pay period after July 1, 2027, the contribution will increase up to $250.00 per pay period. Effective the first full pay period after approval of the resolution, EMT will increase up to $300.00 per pay period; effective the first full pay period after July 1, 2026, the contribution will increase up to $350.00 per pay period; and effective the first full pay period after July 1, 2027, the contribution will increase up to $400.00 per pay period.
• Combining vacation and sick leave banks to Paid Time Off leave banks (in line with Mid-Management & Confidential Association).
• Resolution language modification.

Strategic Plan Goal:

This action supports the City Council's Strategic Plan Goal of maintaining the stability of the City's Human Resources by strengthening workforce recruitment and retention.

Fiscal Impact:

The estimated cost for the Resolution is $180,503 for Fiscal Year 2025-2026; $188,080 estimated amount for Fiscal Year 2026-2027; and $184,130 estimated amount for Fiscal Year 2027-2028. Resolution costs will be budgeted appropriately. This amount will be paid by various funds.

Attachments:

None

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.F.

To: The Honorable Mayor and City Council
From: Scott Wiese, Police Chief
Subject: Police Department Body Worn Camera and Digital Evidence Storage Agreement with Axon Enterprise, Inc.

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the City Manager to execute an agreement with Axon Enterprises Inc., in a form approved by the City Attorney, to purchase and implement the Axon Body-Worn and In-Dash Camera System, in the amount of $842,000.23; and

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

Executive Summary:

The Chief of Police (“Chief”) recommends entering into a five-year agreement with Axon Enterprise, Inc. (“Axon”) for the deployment of a comprehensive, next-generation digital video and evidence solution. The proposed system includes Axon Body 4 cameras, Axon Fleet 3 in- dash systems, and a cloud platform for managing digital evidence that is Criminal Justice Information System (“CJIS”) compliant.

The new system offers greater functionality, access to proprietary Axon software, improved integration with existing platforms, artificial intelligence (“AI”) powered digital evidence software, and secure digital evidence management, which provides the Police Department (“Department”) with greater support to meet increasing public safety demands. Pricing for this new system is secured from Sourcewell Cooperative Purchasing. (Attachment 1)

Background:

The Police Department entered into a five-year agreement with LenslocThe Department entered into a five-year agreement with Lenslock, Inc. on November 18, 2024, and discovered that the current system lacks several critical capabilities, including, without limitation:

Digital evidence storage is incompatible with the Los Angeles County District Attorney’s Office (“DA”) system preventing the Department from sharing direct digital evidence transfers with the DA’s office for case filings.

• No cloud-based evidence tools, such as auto-transcription, AI- smart detection automatically identifies objects, people, and events in video footage, enabling investigators to quickly locate key moments without sifting through hours of footage. • No integrated translation/transcriptions.
• No automated video redaction technology for digital evidence videos.

These limitations in the Lenslock system create operational inefficiencies and require more Department resources than necessary. As a result, the Department is seeking authorization to replace Lenslock’s system with the Axon system.

The Axon solution provides a cloud-based platform built for modern policing, which includes:
• Axon Body 4 cameras with HD video, live streaming, and voice-activated features. • Axon Fleet 3 in-car cameras with automated license plate recognition (“ALPR”). • Access to Evidence.com which is a CJIS-compliant digital evidence management system with unlimited cloud storage and is the only approved storage solution that is integrated directly with the DA.
• Integration with Computer Aid Dispatch /Report Management System (“CAD/RMS”) platforms.
• Automated Redaction Assistant – A secure, integrated video redaction solution purpose-built to streamline the processing of body-worn camera footage for Public Records Act (“PRA”) requests. The Redaction Assistant leverages Axon’s proprietary software to identify and redact sensitive information.
• AI-powered translation/transcription through the officer’s body-worn camera system, which can be opted into for additional cost.
• Automatic transcription of audio from body-worn cameras, producing an initial written incident narrative, typically within 5 minutes of the incident, at an additional cost. This creates an 82% reduction in time spent on reporting tasks, equating to about one hour saved daily per officer. This services has been approved authorized by the DA for field use. (Attachment 2).

These advanced AI tools are transforming the law enforcement landscape, including the way officers capture, manage, and utilize digital evidence. These tools enable officers to dedicate more time to public safety and community engagement by meaningfully reducing the time spent on routine administrative tasks.

Although some of the AI features require additional subscription costs, migrating to Axon’s technology platform strategically positions the Department to integrate a broader suite of tools and capabilities over time.

The Department will fully implement Axon’s basic body-worn camera system, in-dash camera system, and Evidence.com with the (proprietary) automated redaction assistant during the initial deployment phase, pending City Council approval. The Department projects the deployment of additional AI-enhanced services, including AI-powered translation and transcription, as well as AI-assisted report writing in FY 26/27.

Strategic Plan Goal:

The proposed agreement with Axon Enterprise, Inc. directly supports the City's 2025–26 Strategic Plan goal to Ensure Public Safety with a Modernized and Community-Oriented Approach.

Transitioning to Axon’s body-worn camera (“BWC”) system and its digital evidence management platform will enhance the Department’s technological capabilities. This upgrade will improve operational efficiency, increase public transparency, and ensure compliance with California-mandated requirements related to video redaction and public records access.

The implementation of the Axon platform will support the Department’s commitment to community trust by enabling timely and legally compliant responses to Public Records Act (“PRA”) requests, while maintaining the privacy and rights of those involved.

Fiscal Impact:

On February 19, 2025, the City Council approved a five-year agreement with Lenslock, Inc., totaling $755,446.75, with annual payments of $151,369.35. The Department intends to terminate the agreement before the start of the second year, resulting in an estimated remaining balance of $604,077.40.

A replacement five-year agreement is now proposed with Axon Enterprise, Inc., beginning November 2025, totaling $842,000.23, with equal annual payments of $168,400.05 for years 1- 4 and $168,400.03 for year 5.

The remaining balance from the Lenslock contract ($604,077.40) will be used to offset the cost of the Axon agreement. After applying the savings, the net annual increase is $17,030.70 per year, which will be covered by the Police Department’s general fund budget.

Funding Overview (FY 2025–26)
• Allocated for Body Worn Camera Program: $155,000.00
• Additional required funding of $17,030.70, with be covered with salary savings.

Attachments:

1. AXON BWC QUOTE FINAL

2. LADA Use of Artificial Intelligence for Report Writing

Axon Quote
ATTACHMENT 1
Staff Report,
September 3, 2025

Q-710500-45874KP
Issued: 08/05/2025
Quote Expiration: 08/31/2025
Estimated Contract Start Date: 10/01/2025
Account Number: 112712
Payment Terms: N30
Mode of Delivery: UPS-GND
Credit/Debit Amount: $0.00
Monterey Park Police Dept. - CA
320 W Newmark Ave
Monterey Park,
CA
91754-2818
USA
Monterey Park Police Dept. - CA
320 W Newmark Ave
Monterey Park
CA
91754-2818
USA
Email:

Kyle Panasewicz
Phone: +1 4803294734
Email: [email protected]
Fax: (480) 905-2071
Bob Hung
Phone: (626) 307-1253
Email: [email protected]
Fax: (626) 307-1441

Payment Summary
Date Subtotal Tax Total
Sep 2025 $164,443.78 $3,956.27 $168,400.05
Sep 2026 $164,443.78 $3,956.27 $168,400.05
Sep 2027 $164,443.78 $3,956.27 $168,400.05
Sep 2028 $164,443.78 $3,956.27 $168,400.05
Sep 2029 $164,443.78 $3,956.25 $168,400.03
Total $822,218.90 $19,781.33 $842,000.23

Quote Unbundled Price: $1,094,901.70
Quote List Price: $1,057,284.10
Quote Subtotal: $822,218.90
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
Fleet3B Fleet 3 Basic 25 60 $148.09 $166.82 $110.06 $165,090.00 $3,136.24 $168,226.24 BWCamTAP Body Worn Camera TAP Bundle 99 60 $43.48 $33.80 $33.80 $200,772.00 $16,585.19 $217,357.19 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 60 $73.05 $62.52 $11.18 $8,720.40 $0.00 $8,720.40 A la Carte Hardware
H00001 AB4 Camera Bundle 99 $899.00 $0.00 $0.00 $0.00 $0.00 H00002 AB4 Multi Bay Dock Bundle 13 $1,638.90 $43.90 $570.70 $59.90 $630.60 A la Carte Software
73478 AXON EVIDENCE - REDACTION ASSISTANT USER
LICENSE 99 60 $10.85 $10.85 $64,449.00 $0.00 $64,449.00 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 60 $10.85 $10.85 $64,449.00 $0.00 $64,449.00 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON
DEVICE) 99 60 $27.12 $27.12 $161,092.80 $0.00 $161,092.80 BasicLicense Basic License Bundle 99 60 $16.27 $16.25 $96,525.00 $0.00 $96,525.00 ProLicense Pro License Bundle 6 60 $48.82 $48.75 $17,550.00 $0.00 $17,550.00 A la Carte Services
79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO
TAGGING/PERFORMANCE 1 $3,000.00 $3,000.00 $3,000.00 $0.00 $3,000.00 85055 AXON BODY - PSO - FULL SERVICE 1 $40,000.00 $40,000.00 $40,000.00 $0.00 $40,000.00 Total $822,218.90 $19,781.33 $842,000.23
Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 99 1 09/01/2025
AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 3 1 09/01/2025
AB4 Camera Bundle 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 109 1 09/01/2025 AB4 Camera Bundle 100775 AXON BODY 4 - MAGNETIC DISCONNECT CABLE 109 1 09/01/2025 AB4 Camera Bundle 74020 AXON BODY - MOUNT - MAGNET FLEXIBLE RAPIDLOCK 109 1 09/01/2025 AB4 Multi Bay Dock Bundle 100206 AXON BODY 4 - 8 BAY DOCK 13 1 09/01/2025 AB4 Multi Bay Dock Bundle 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 13 1 09/01/2025 AB4 Multi Bay Dock Bundle 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 13 1 09/01/2025 Fleet 3 Basic 70112 AXON SIGNAL - VEHICLE 25 1 09/01/2025 Fleet 3 Basic 72036 AXON FLEET 3 - STANDARD 2 CAMERA KIT 25 1 09/01/2025 Body Worn Camera Multi-Bay Dock TAP Bundle 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 13 1 03/01/2028

Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date Body Worn Camera TAP Bundle 73309 AXON BODY - TAP REFRESH 1 - CAMERA 102 1 03/01/2028 Body Worn Camera Multi-Bay Dock TAP Bundle 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 13 1 09/01/2030 Body Worn Camera TAP Bundle 73310 AXON BODY - TAP REFRESH 2 - CAMERA 102 1 09/01/2030 Software
Bundle Item Description QTY Estimated Start Date Estimated End Date Basic License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 99 10/01/2025 09/30/2030 Basic License Bundle 73840 AXON EVIDENCE - ECOM LICENSE - BASIC 99 10/01/2025 09/30/2030 Fleet 3 Basic 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 25 10/01/2025 09/30/2030 Fleet 3 Basic 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 50 10/01/2025 09/30/2030 Pro License Bundle 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 18 10/01/2025 09/30/2030 Pro License Bundle 73746 AXON EVIDENCE - ECOM LICENSE - PRO 6 10/01/2025 09/30/2030 A la Carte 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 10/01/2025 09/30/2030 A la Carte 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 10/01/2025 09/30/2030 A la Carte 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 10/01/2025 09/30/2030 Services
Bundle Item Description QTY
Fleet 3 Basic 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 25 A la Carte 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 A la Carte 85055 AXON BODY - PSO - FULL SERVICE 1
Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date Body Worn Camera Multi-Bay Dock TAP Bundle 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 13 09/01/2026 09/30/2030 Body Worn Camera TAP Bundle 80464 AXON BODY - TAP WARRANTY - CAMERA 3 09/01/2026 09/30/2030 Body Worn Camera TAP Bundle 80464 AXON BODY - TAP WARRANTY - CAMERA 99 09/01/2026 09/30/2030 Fleet 3 Basic 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 25 09/01/2026 09/30/2030 Fleet 3 Basic 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 25 09/01/2026 09/30/2030

Shipping Locations
Location Number Street City State Zip Country
1 320 W Newmark Ave Monterey Park CA 91754-2818 USA
Payment Details
Sep 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 1 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 1 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 1 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 $32,218.56 $0.00 $32,218.56 Year 1 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $600.00 $0.00 $600.00 Year 1 85055 AXON BODY - PSO - FULL SERVICE 1 $8,000.00 $0.00 $8,000.00 Year 1 BasicLicense Basic License Bundle 99 $19,305.00 $0.00 $19,305.00 Year 1 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 $1,744.08 $0.00 $1,744.08 Year 1 BWCamTAP Body Worn Camera TAP Bundle 99 $40,154.40 $3,317.04 $43,471.44 Year 1 Fleet3B Fleet 3 Basic 25 $33,018.00 $627.25 $33,645.25 Year 1 H00001 AB4 Camera Bundle 99 $0.00 $0.00 $0.00
Year 1 H00002 AB4 Multi Bay Dock Bundle 13 $114.14 $11.98 $126.12 Year 1 ProLicense Pro License Bundle 6 $3,510.00 $0.00 $3,510.00 Total $164,443.78 $3,956.27 $168,400.05
Sep 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 2 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 2 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 $32,218.56 $0.00 $32,218.56 Year 2 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $600.00 $0.00 $600.00 Year 2 85055 AXON BODY - PSO - FULL SERVICE 1 $8,000.00 $0.00 $8,000.00 Year 2 BasicLicense Basic License Bundle 99 $19,305.00 $0.00 $19,305.00 Year 2 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 $1,744.08 $0.00 $1,744.08 Year 2 BWCamTAP Body Worn Camera TAP Bundle 99 $40,154.40 $3,317.04 $43,471.44 Year 2 Fleet3B Fleet 3 Basic 25 $33,018.00 $627.25 $33,645.25 Year 2 H00001 AB4 Camera Bundle 99 $0.00 $0.00 $0.00
Year 2 H00002 AB4 Multi Bay Dock Bundle 13 $114.14 $11.98 $126.12 Year 2 ProLicense Pro License Bundle 6 $3,510.00 $0.00 $3,510.00 Total $164,443.78 $3,956.27 $168,400.05
Sep 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 3 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 3 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 $32,218.56 $0.00 $32,218.56 Year 3 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $600.00 $0.00 $600.00 Year 3 85055 AXON BODY - PSO - FULL SERVICE 1 $8,000.00 $0.00 $8,000.00 Year 3 BasicLicense Basic License Bundle 99 $19,305.00 $0.00 $19,305.00 Year 3 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 $1,744.08 $0.00 $1,744.08

Sep 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 BWCamTAP Body Worn Camera TAP Bundle 99 $40,154.40 $3,317.04 $43,471.44 Year 3 Fleet3B Fleet 3 Basic 25 $33,018.00 $627.25 $33,645.25 Year 3 H00001 AB4 Camera Bundle 99 $0.00 $0.00 $0.00
Year 3 H00002 AB4 Multi Bay Dock Bundle 13 $114.14 $11.98 $126.12 Year 3 ProLicense Pro License Bundle 6 $3,510.00 $0.00 $3,510.00 Total $164,443.78 $3,956.27 $168,400.05
Sep 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 4 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 4 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 $32,218.56 $0.00 $32,218.56 Year 4 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $600.00 $0.00 $600.00 Year 4 85055 AXON BODY - PSO - FULL SERVICE 1 $8,000.00 $0.00 $8,000.00 Year 4 BasicLicense Basic License Bundle 99 $19,305.00 $0.00 $19,305.00 Year 4 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 $1,744.08 $0.00 $1,744.08 Year 4 BWCamTAP Body Worn Camera TAP Bundle 99 $40,154.40 $3,317.04 $43,471.44 Year 4 Fleet3B Fleet 3 Basic 25 $33,018.00 $627.25 $33,645.25 Year 4 H00001 AB4 Camera Bundle 99 $0.00 $0.00 $0.00
Year 4 H00002 AB4 Multi Bay Dock Bundle 13 $114.14 $11.98 $126.12 Year 4 ProLicense Pro License Bundle 6 $3,510.00 $0.00 $3,510.00 Total $164,443.78 $3,956.27 $168,400.05
Sep 2029
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 5 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 99 $12,889.80 $0.00 $12,889.80 Year 5 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 99 $32,218.56 $0.00 $32,218.56 Year 5 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $600.00 $0.00 $600.00 Year 5 85055 AXON BODY - PSO - FULL SERVICE 1 $8,000.00 $0.00 $8,000.00 Year 5 BasicLicense Basic License Bundle 99 $19,305.00 $0.00 $19,305.00 Year 5 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 13 $1,744.08 $0.00 $1,744.08 Year 5 BWCamTAP Body Worn Camera TAP Bundle 99 $40,154.40 $3,317.03 $43,471.43 Year 5 Fleet3B Fleet 3 Basic 25 $33,018.00 $627.24 $33,645.24 Year 5 H00001 AB4 Camera Bundle 99 $0.00 $0.00 $0.00
Year 5 H00002 AB4 Multi Bay Dock Bundle 13 $114.14 $11.98 $126.12 Year 5 ProLicense Pro License Bundle 6 $3,510.00 $0.00 $3,510.00 Total $164,443.78 $3,956.25 $168,400.03

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Contract Sourcewell #101223-AXN is incorporated by reference into the terms and conditions of this Agreement. In the event of conflict the terms of Axon's Master Services and Purchasing Agreement shall govern.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

\s1\ \d1\
Signature Date Signed
8/5/2025

1 FLEET STATEMENT OF WORK BETWEEN AXON ENTERPRISE AND AGENCY Introduction
This Statement of Work (“SOW”) has been made and entered into by and between Axon Enterprise, Inc. (“AXON”), and Monterey Park Police Dept. - CA the (“AGENCY”) for the purchase of the Axon Fleet in-car video solution (“FLEET”) and its supporting information, services and training. (AXON Technical Project Manager/The AXON installer)
Purpose and Intent
AGENCY states, and AXON understands and agrees, that Agency’s purpose and intent for entering into this SOW is for the AGENCY to obtain from AXON deliverables, which used solely in conjunction with AGENCY’s existing systems and equipment, which AGENCY specifically agrees to purchase or provide pursuant to the terms of this SOW.

This SOW contains the entire agreement between the parties. There are no promises, agreements, conditions, inducements, warranties or understandings, written or oral, expressed or implied, between the parties, other than as set forth or referenced in the SOW.

Acceptance
Upon completion of the services outlined in this SOW, AGENCY will be provided a professional services acceptance form (“Acceptance Form”). AGENCY will sign the Acceptance Form acknowledging that services have been completed in substantial conformance with this SOW and the Agreement. If AGENCY reasonably believes AXON did not complete the professional services in conformance with this SOW, AGENCY must notify AXON in writing of the specific reasons within seven (7) calendar days from delivery of the Acceptance Form. AXON will remedy the issues to conform with this SOW and re-present the Acceptance Form for signature. If AXON does not receive the signed Acceptance Form or written notification of the reasons for rejection within 7 calendar days of the delivery of the Acceptance Form, AGENCY will be deemed to have accepted the services in accordance to this SOW.

Force Majeure

2 Neither party hereto shall be liable for delays or failure to perform with respect to this SOW due to causes beyond the party’s reasonable control and not avoidable by diligence.

Schedule Change
Each party shall notify the other as soon as possible regarding any changes to agreed upon dates and times of Axon Fleet in-car Solution installation to be performed pursuant of this Statement of Work.

Axon Fleet Deliverables
Typically, within (30) days of receiving this fully executed SOW, an AXON Technical Project Manager will deliver to AGENCY’s primary point of contact via electronic media, controlled documentation, guides, instructions and videos followed by available dates for the initial project review and customer readiness validation. Unless otherwise agreed upon by AXON, AGENCY may print and reproduce said documents for use by its employees only.

Security Clearance and Access
Upon AGENCY’s request, AXON will provide the AGENCY a list of AXON employees, agents, installers or representatives which require access to the AGENCY’s facilities in order to perform Work pursuant of this Statement of Work. AXON will ensure that each employee, agent or representative has been informed or and consented to a criminal background investigation by AGENCY for the purposes of being allowed access to AGENCY‘s facilities. AGENCY is responsible for providing AXON with all required instructions and documentation accompanying the security background check’s requirements.

Training
AXON will provide training applicable to Axon Evidence, Cradlepoint NetCloud Manager and Axon Fleet application in a train-the-trainer style method unless otherwise agreed upon between the AGENCY and AXON.

Local Computer

3 AGNECY is responsible for providing a mobile data computer (MDC) with the same software, hardware, and configuration that AGENCY personnel will use with the AXON system being installed. AGENCY is responsible for making certain that any and all security settings (port openings, firewall settings, antivirus software, virtual private network, routing, etc.) are made prior to the installation, configuration and testing of the aforementioned deliverables.

Network
AGENCY is responsible for making certain that any and all network(s) route traffic to appropriate endpoints and AXON is not liable for network breach, data interception, or loss of data due to misconfigured firewall settings or virus infection, except to the extent that such virus or infection is caused, in whole or in part, by defects in the deliverables.

Cradlepoint Router
When applicable, AGENCY must provide AXON Installers with temporary administrative access to Cradlepoint’s NetCloud Manager to the extent necessary to perform Work pursuant of this Statement of Work.

Evidence.com
AGENCY must provide AXON Installers with temporary administrative access to Axon Evidence.com to the extent necessary to perform Work pursuant of this SOW.

Wireless Upload System
If purchased by the AGENCY, on such dates and times mutually agreed upon by the parties, AXON will install and configure into AGENCY’s existing network a wireless network infrastructure as identified in the AGENCY’s binding quote based on conditions of the sale.

VEHICLE INSTALLATION
Preparedness

4 On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer less weapons and items of evidence.

Vehicle(s) will be deemed ‘out of service’ to the extent necessary to perform Work pursuant of this SOW.

Existing Mobile Video Camera System Removal
On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer which will remove from said vehicles all components of the existing mobile video camera system unless otherwise agreed upon by the AGENCY.

Major components will be salvaged by the AXON Installer for auction by the AGENCY. Wires and cables are not considered expendable and will not be salvaged. Salvaged components will be placed in a designated area by the AGENCY within close proximity of the vehicle in an accessible work space.

Prior to removing the existing mobile video camera systems, it is both the responsibility of the AGENCY and the AXON Installer to test the vehicle’s systems’ operation to identify and operate, documenting any existing component or system failures and in detail, identify which components of the existing mobile video camera system will be removed by the AXON Installer.

In-Car Hardware/Software Delivery and Installation
On such dates and times mutually agreed upon by the parties, the AGENCY will deliver all vehicles to an AXON Installer, who will install and configure in each vehicle in accordance with the specifications detailed in the system’s installation manual and its relevant addendum(s). Applicable in-car hardware will be installed and configured as defined and validated by the AGENCY during the pre-deployment discovery process.

If a specified vehicle is unavailable on the date and time agreed upon by the parties, AGENCY will provide a similar vehicle for the installation process. Delays due to a vehicle, or substitute vehicle, not being available at agreed upon dates and times may results in additional fees to the AGENCY. If the AXON Installer determines that a vehicle is not properly prepared for installation (“Not Fleet Ready”), such as a battery not being properly charged or properly up-fit for in-service, field operations, the issue shall be reported immediately to the AGENCY for resolution and a date and time for the future installation shall be agreed upon by the parties.

5 Upon completion of installation and configuration, AXON will systematically test all installed and configured in-car hardware and software to ensure that ALL functions of the hardware and software are fully operational and that any deficiencies are corrected unless otherwise agreed upon by the AGENCY, installation, configuration, test and the correct of any deficiencies will be completed in each vehicle accepted for installation.

Prior to installing the Axon Fleet camera systems, it is both the responsibility of the AGENCY and the AXON Installer to test the vehicle’s existing systems’ operation to identify, document any existing component or vehicle systems’ failures. Prior to any vehicle up-fitting the AXON Installer will introduce the system’s components, basic functions, integrations and systems overview along with reference to AXON approved, AGENCY manuals, guides, portals and videos. It is both the responsibility of the AGENCY and the AXON Installer to agree on placement of each components, the antenna(s), integration recording trigger sources and customer preferred power, ground and ignition sources prior to permanent or temporary installation of an Axon Fleet camera solution in each vehicle type.

Agreed placement will be documented by the AXON Installer.

AXON welcomes up to 5 persons per system operation training session per day, and unless otherwise agreed upon by the AGENCY, the first vehicle will be used for an installation training demonstration. The second vehicle will be used for an assisted installation training demonstration. The installation training session is customary to any AXON Fleet installation service regardless of who performs the continued Axon Fleet system installations.

6 The customary training session does not ‘certify’ a non-AXON Installer, customer-employed Installer or customer 3rd party Installer, since the AXON Fleet products does not offer an Installer certification program. Any work performed by non-AXON Installer, customer-employed Installer or customer 3rd party Installer is not warrantied by AXON, and AXON is not liable for any damage to the vehicle and its existing systems and AXON Fleet hardware.

Staff Report
September 3, 2025

Attachment 2
Los Angeles County DA AI Memo

GENERAL OFFICE MEMORANDUM 25-033
TO: ALL DEPUTY DISTRICT ATTORNEYS
FROM: STEVEN I. KATZ
Chief Deputy District Attorney
SUBJECT: LAW ENFORCEMENT USE OF ARTIFICIAL INTELLIGENCE FOR

REPORT WRITING
DATE: FEBRUARY 28, 2025
The Los Angeles County District Attorney’s Office (LADA) has become aware that some law enforcement agencies are using artificial intelligence (AI) to assist in the drafting of police reports. This Memorandum provides an overview of how AI is being used to assist law enforcement in preparing investigation reports and its potential impact on cases handled by our Office.

BACKGROUND ON AI AND REPORT WRITING
AI tools, specifically those based on Large Language Models (LLMs), are being implemented to help law enforcement streamline the report writing process. An LLM is an advanced AI model that generates human-like text, making it useful for converting spoken language into well- structured narrative reports. While these tools have the potential to improve efficiency and accuracy, they also raise issues about which deputies should be aware.

AXON DRAFT ONE
Axon Draft One (Draft One) is an AI-assisted report drafting tool currently being used or piloted by several agencies that submit cases to the LADA. Draft One utilizes the audio portion of Axon body-worn camera (BWC) footage to create an initial transcript. Draft One does not utilize any visual images that are recorded by BWC. The transcript is then processed by an AI LLM to generate a draft of the police report narrative which is based solely on the audio portion of the officer’s BWC footage. Officers are required to review and edit this draft before it can be copied into the agency's official report writing system. Draft One does not save any copies of the AI- generated draft report.

There are indicators within the agency's Evidence.com system that show whether Draft One was used to assist in report writing. Agencies are required to include a disclaimer at the end of the report narrative that indicates that AI assistance was utilized. Further, an agency may limit the types of crimes/incidents where Draft One can be used. For example, a law enforcement agency may choose to limit the use of Draft One to generating reports for infraction or misdemeanor crimes, but not for arrests or felony offenses.

2 While the use of AI can make report writing more efficient, it requires careful oversight from law enforcement to ensure the accuracy, reliability, and completeness of the final reports.

Specifically, it is the responsibility of the officer using AI assistance in writing the report to review and ensure the accuracy of the report, including specifying whether any portion of the report was not a product of the officer’s own recollection. Supervising personnel at the law enforcement agency are responsible for ensuring that officers are properly reviewing the reports.

ONGOING COMMUNICATION AND COLLABORATION
LADA is actively engaged in communication with our law enforcement partners who are using or considering the use of AI tools for report writing. It has been emphasized to these agencies that it is the responsibility of the reporting officer to ensure the accuracy of all reports.

Furthermore, law enforcement agencies have been informed of LADA’s expectation that any officer testifying to an AI-assisted report must be able to clearly explain the workflow used in drafting the report, as well as the safeguards and practices implemented to verify its accuracy.

In collaboration with these agencies, LADA is working to develop countywide best practices for AI-assisted report writing. Additionally, LADA is engaging with Axon and other vendors to stay informed on advancements and to proactively address any concerns or developments related to AI technology. This ongoing collaboration ensures that LADA is well-prepared to effectively manage any issues arising from the use of AI-assisted reports.

If you have any questions or need further clarification, please contact Deputy District Attorney Mike Vela at [email protected], or Principal Information Systems Analyst Claudio Alejo at [email protected].
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City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.G.

To: The Honorable Mayor and City Council
From: Robert Aguirre, Director of Recreation & Community Services Memo Chavez, Recreation Supervisor
Subject: Authorize the City Manager to Amend Agreement 1868-A with Fiesta Taxi Cooperative, Inc. to provide Dial-A-Ride Supplemental Service

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the City Manager to amend agreement 1868-A for a three-year term with an option to extend for an additional two years in the amount not to exceed $225,000 total, in a form approved by the City Attorney, with Fiesta Taxi Cooperative, Inc. to provide Dial-A-Ride Supplement Service.

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

Executive Summary:

Dial-A-Taxi offers a low-cost supplemental transportation service for Dial-A-Ride members.

This service allows members to shop, dine and visit any location in the city or to adjacent communities for medical appointments within 5 miles, 24 hours a day, 7 days per week. These services are essential to the continued delivery of these specialized recreational programs, which serve diverse populations within the community. The Director of Recreation and Community Services (“Director”) recommends extending the current agreement by three years with an option to extend for an additional two years for an amount not to exceed $225,000.

Background:

The Recreation and Community Services Department utilizes Fiesta Taxi Cooperative, Inc. to complement the City’s Dial-A-Ride services, by providing additional transportation services to Monterey Park residents aged 55 years or older and/or those who have a signed form from a physician attesting to a disability. The services provide transportation within City limits, and to medical appointments in adjacent communities within five miles.

Dial-A-Ride is operated by City of Monterey Park employees. Services are available Monday through Friday, 8:30 a.m. to 4:00 p.m., with appointments made in advance. The program is free to qualifying residents.

Dial-A-Taxi is operated by Fiesta Taxi. Services are available 24 hours, 7 days a week, with a maximum of two trips per day (pickup/return) allowed. The cost for this service is $1 per trip.

Due to increased participation transportation needs have grown beyond the current contractual expenditure limit. To ensure continuity of service and avoid disruptions, the Director recommends City Council waive bidding pursuant to Resolution No. 2025-R3 and authorize the City Manager to amend the agreement, in a form approved by the City Attorney, by extending the term for three-years with an option for an additional two years, in the amount not to exceed $225,000 total. City staff will continue to evaluate transportation services throughout the term of the agreement.

Strategic Plan Goal:

This item supports the Strategic Plan Goal of Expanding Access to Community Resources and Services by providing an additional transportation option for seniors and individuals with disabilities.

Fiscal Impact:

The proposed amendment to the agreement with Fiesta Taxi Cooperative, Inc. will authorize expenditures allocated in the Department's annual budget with Prop A fund 238-6511.

Attachments:

None

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.H.

To: The Honorable Mayor and City Council
From: Shawn Igoe, Public Works Director
Subject: Receive and File a Summary of The Windstorm and Firestorm Local Emergency

Recommendation:

It is recommended that the City Council consider:

1. Receiving and Filing this staff report summarizing the status of windstorm and firestorm local emergency; and

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

CEQA (California Environmental Quality Act):

The City reviewed the environmental impacts of the extension under 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), and 15378 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, and activities that do not constitute a “project” as defined, respectively. This activity reflects administrative changes and policy making. Accordingly, this activity is exempt from further review.

Executive Summary:

N/A

Background:

On January 21, 2025, the City Council adopted Resolution No. 2025-R3 declaring a local emergency due to windstorm and firestorm events beginning on January 7, 2025, as reflected in the Governor’s Executive Order dated January 12, 2025.

At its January 21, 2025, meeting, the City Council authorized the City Manager to take necessary measures to protect public health, safety, and general welfare including urgency abatement and direct negotiation of contracts pursuant to Public Contract Code §§ 20168 and 22050 for the completion of capital improvement plan (“CIP”) projects. The conditions resulting for the need to declare a local emergency continue to exist. This includes, without limitation, the following:

• Recovery efforts to address the widespread structure destruction and damage from the windstorm and firestorm events are ongoing. This will continue to result in increased prices for construction products and contractor services. Additionally, recently implemented tariffs on construction material further increase prices for services and products. Expediting the City’s ability to secure contracts for capital improvement projects is in the public interest. Many of the approved public works projects are intended to improve vital infrastructure such as roads, water, stormwater, and wastewater facilities.

• The Governor’s Executive Order dated January 12, 2025, directs state agencies to streamline building approvals. This order is still in effect. It is in the public interest for the City to jumpstart that process to assist developers seeking to build within the City’s jurisdiction.

• Fire prevention is always critical. The current emergency, however, starkly emphasized the immediate need to exercise the City’s police powers to protect public health and safety. This, among other things, includes undergrounding power lines to the greatest extent practicable.

The City Attorney’s Office is working with SCE to move undergrounding forward as expeditiously as possible.

• The City expended public resources (personnel, equipment, gas, etc.) while assisting neighboring jurisdictions during this emergency. It is in the public interest for the City to seek reimbursement from federal and state agencies for these costs.

Since the adoption of Resolution 2025-R3 the City awarded the following public works contracts (note that the Pickleball Resurfacing contract is on tonight’s agenda for approval):

CIP
No.

Project City Council
Approval
Contractor Contract
Amount
96054 2024-25 Concrete
Improvement Project
2/19/2025 CT&T Concrete Paving,
Inc.
$230,957
96049 2024-25 Street Overlay at
Various Locations
2/19/2025 Onyx Paing Company,
Inc.
$4,146,240
95042 Underground Storage Tank
Removal & Replacement
2/19/2025 Tank Specialties, Inc.
dba Tank Specialists of
California
$98,200
96052 Garvey Capacity
Improvements Project
4/16/2025 Mark Thomas $1,348,896
95061 Sidewalk Assessment &
Repairs
4/16/2025 Nichols Consulting
Engineers, CHTD. dba
NCE

Southern California
Precision Concrete, Inc.
dba Precision Concrete
Cutting

$53,900

$150,000
95038 Bruggemeyer Library
Generator
4/16/2025 Pacific Power
Engineering
$281,300

Technology, Inc
99011 Emerson Ave Sewer
Improvements
5/7/2025 GRBCON Inc. $647,141
99024 Water Meter Replacements 06/18/2025 Ferguson Waterworks $9,062,978 96001 Garvey Ave. Sewer
Improvements
07/16/2025 GRBCON, Inc. $1,687,447
E0001 Council Chambers &
Restroom Remodeling
07/16/2025 BOA Architecture $139,000
95057 Barnes Park Gymnasium
Painting
08/20/2025 U.S National Corp. dba
Jimenez Painting
Company
$124,950
95059 Library Carpet Replacement 08/20/2025 Dura Flooring $365,954 95056 Elder Gym & Langley Office
Flooring
- JJJ Flooring, Inc $46,853

Strategic Plan Goal:

Resolution No. 2025-R3 meets the City’s goal to maintain, build and modernize infrastructure and facilities to support the current and future needs of our City and community.

Fiscal Impact:

The costs for awarded contracts are budgeted within the City’s FY 25-26 CIP.

Attachments:

None

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.I.

To: The Honorable Mayor and City Council
From: Robert Aguirre, Director of Recreation & Community Services Christina Alatorre, Recreation Manager
Subject: Authorize Letters Requesting Support and Funding for Barnes Park Pool Replacement Project to be sent to Elected Representatives

Recommendation:

It is recommended that the City Council consider:

1. Authorizing the City Manager to send letters to Elected Representatives for support and funding for the Barnes Park Pool Replacement Project; and

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

Executive Summary:

The Director of Recreation and Community Services (“Director”) requests that the City Council authorize the City Manager to send letters (Attachment 1) to Elected Representatives for support and funding for the Barnes Park Pool Replacement Project.

On August 5, 2025, the City Council adopted a resolution approving the Parks System Master Plan. This strategic plan is designed to support Monterey Park’s elected officials, staff, and stakeholders in making informed decisions to enhance and sustain the City’s parks, facilities, programs, and projects over the next ten years. The plan identifies Barnes Park pool as a priority project requiring substantial funding.

Background:

The Barnes Park Pool has remained closed since 2021 due to its deteriorating condition.

Previously, the pool provided the community with access to physical fitness through swimming activities, swimming education classes, training and competition facilities for swimming and water polo teams, recreational space for fun and relaxation during the warm months, and a positive environment for socializing. Due to the deteriorating condition of the pool, the City has taken measures to address safety concerns by back-filling the pool.

A Barnes Park Pool replacement project is currently estimated at over $16 million dollars.

Projects of this scale typically require multiple funding sources, such as grants, discretionary

and earmarked funds from elected officials, and local general fund allocations.

Strategic Plan Goal:

This action meets the City’s goal of maintaining, building, and modernizing infrastructure and facilities to support the current and future needs of our city and community. Additionally, it will expand access to community resources and services.

Fiscal Impact:

There is no fiscal impact associated with authorizing letters requesting support from Monterey Park Elected Representatives.

Attachments:

1. Draft Barnes Park Pool Support Letter

ATTACHMENT 1
Draft Barnes Park Pool Support Letter

CITY OF MONTEREY PARK

320 West Newmark Avenue  Monterey Park  California 91754-2896 www.montereypark.ca.gov

City Council
Henry Lo
Vinh Ngo
Jose Sanchez
Thomas Wong
Elizabeth Yang

City Clerk
Maychelle Yee

City Treasurer
Amy Lee
September 3, 2025

The Honorable

RE: Requesting Support and Funding for Barnes Park Pool Replacement Project

Dear ______

On behalf of the Monterey Park City Council, we write to request your support for grant applications and funding opportunities for the Barnes Park Pool replacement project. This vital project would serve thousands of your constituents, including families, youth, and seniors, while promoting health, wellness, and community connection.

The Barnes Park Pool previously served as a vital community asset, has been closed since 2021 due to its deteriorating condition. For over 70 years it provided the community with access to swimming lessons, water safety education, fitness and recreation, and facilities for competitive swimming and water polo teams. Its absence has left a significant gap in recreational and safety opportunities for the community.

The estimated cost of the project exceeds $16 million dollars. To make this project a reality, the City will need to leverage multiple funding sources including grants, local contributions, discretionary and earmarked funds through your office.

On August 5, 2025, the City Council adopted the Parks System Master Plan, which identified the Barnes Park Pool as a top priority project. Replacing this facility is critical to ensuring equitable access to recreation and safety programs for current and future generations.

With your support, we can restore this vital community resource. Thank you for your leadership and commitment to the residents of Monterey Park. We look forward to working with you to make this project a reality. Please feel free to contact us via email at [email protected] or by telephone at (626) 307-1465 with any questions.

Sincerely,

Vinh T. Ngo Elizabeth Yang Mayor Mayor Pro Tem

Henry Lo Jose Sanchez Thomas Wong
Councilmember Councilmember Councilmember

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 9.J.

To: The Honorable Mayor and City Council
From: Diana Garcia, Assistant City Manager
Subject: Hispanic Heritage Heritage Month Resolution (As Requested by Council Member Sanchez)

Recommendation:

It is recommended that the City Council consider:

1. Approving the attached resolution; and,

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

Executive Summary:

The attached resolution is being brought forth to the Council for consideration at the request of Council Member Sanchez.

Background:

N/A

Strategic Plan Goal:

N/A

Fiscal Impact:

There is no expected fiscal impact associated with adopting this resolution.

Attachments:

1. 2025 Hispanic Heritage Month Resolution

Staff Report
September 3, 2025

ATTACHMENT 1
Draft Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF

MONTEREY PARK, CALIFORNIA, DECLARING AND PROCLAIMING
SEPTEMBER 15 THROUGH OCTOBER 15, 2025

AS NATIONAL HISPANIC HERITAGE MONTH

BE IT RESOLVED by the Council of the City of Monterey Park as follows:

SECTION 1: The City Council finds as follows:

A. September 15, 2025, marks the beginning of National Hispanic Heritage Month and is a time to celebrate the Hispanic/Latino community’s history, cultures, and integral contributions to growing and strengthening our democracy.

B. Hispanic Heritage Week was initially observed in 1968 under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to a month-long celebration beginning on September 15 and ending on October 15.

C. This 30-day celebration spans two months to observe the significant victories for the Hispanic/Latino community including the independence of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua on Sept. 15; Mexico on Sept. 16; and Chile on Sept. 18. In addition, Día de la Raza is also observed on October 12.

D. Since 1988, the United States has celebrated Hispanic/Latino culture with the greater community to highlight the rich heritage, arts, histories, food, music, and traditions of Latin American nations while honoring and paying tribute to all for their contributions to our City and society.

E. Hispanics/Latinos account for 27.1% of the City of Monterey Park population (approximately 15,685 individuals). Hispanic/Latino Americans represent a vibrant and thriving part of our diverse community.

F. Hispanics/Latinos have profoundly and positively influenced the United States and Monterey Park through centuries-old traditions and customs that are embraced and valued in our City. Their histories and cultures stretch centuries, and the contributions of those who come to our community add new chapters to our City’s history.

G. The City of Monterey Park is committed to recognizing Hispanic/Latino culture and heritage as essential to its robust and inclusive community and will continue to advocate for Hispanics/Latinos as representation matters.

H. The Monterey Park City Council encourages all residents, organizations, businesses, and public entities to honor and recognize the contributions made and the significant presence of Hispanic and Latino Americans in the United States and celebrate their heritage and culture and hereby proclaims September 15 through October 15, 2024, as National Hispanic Heritage Month.

SECTION 2: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 3: 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 4: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED AND ADOPTED this 3rd day of September 2025.

________________________________
Vinh T. Ngo, Mayor

Attest:

__________________________
Maychelle Yee, City Clerk

City Council Staff Report

Date: September 3, 2025
Agenda Item Number: 10.A.

To: The Honorable Mayor and City Council
From: Timothy Hou, Director of Community Development
Eliana Munoz, Senior Planner
Subject: Public hearing to consider adopting zoning regulations for the Saturn Park Innovation/Technology Zone (ZCA 25-04)

Recommendation:

It is recommended that the City Council consider:

1. Opening the public hearing and taking testimonial and documentary evidence;

2. After closing the public hearing and considering the submitted evidence, introducing and waiving first reading of Ordinance No. _____ amending the Monterey Park Municipal Code ("MPMC") regulating certain land uses in the Saturn Park Innovation/Technology Zone; and

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

CEQA (California Environmental Quality Act):

The City reviewed the environmental impacts of the proposed Ordinance 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 § 15168(c)(2) states that if a project is proposed which has been the subject of a prior certified EIR, and “[i]f the [City] finds that pursuant to Section 15162, no new effects could occur or new mitigation measures would be required, the agency can approve the activity as being within the scope of the project covered by the … EIR, and no new environmental document would be required.”
• On December 5, 2019, the City Council adopted Resolution No. 12124 certifying the Monterey Park Focused General Plan Update Final Environmental Impact Report (the “FEIR”) (State Clearing House (SCH) No. 2001-01-1074).
• The amendments proposed by this Ordinance are within the scope of the FEIR, and the circumstances, impacts, and mitigation requirements identified in the FEIR remain applicable to the proposed Project.
• This Ordinance will not facilitate the creation of any development beyond that anticipated and accounted for by the FEIR, does not contemplate any changes which will require major revisions to FEIR, and there are no substantial changes with respect to the circumstances under which FEIR was undertaken.

• There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time FEIR was approved.
• Approval of this Ordinance will not result in any new or increased environmental effects, and no new mitigation measures are required.
• Pursuant to CEQA Guidelines § 15168(c)(2), no new environmental documentation is required.

Executive Summary:

Type of Action: Legislative
Decision-Making Body: Pursuant to MPMC § 2.56.020(c), the City Council is the City’s Planning Agency for this matter. In considering the recommended actions, the City Council acts in its discretionary legislative capacity (formulating rules that apply to all future cases). For the proposed ZCA, the City Council must make findings pursuant to MPMC § 21.38.050:
• That the proposed amendment is consistent with the goals, policies, and objectives of the General Plan;
• That the proposed amendment will not adversely affect surrounding properties; and • That the proposed amendment promotes public health, safety, and general welfare and serves the goals and purposes of the zoning regulations within the MPMC.

These findings are included in the attached Ordinance (Attachment 1). Accordingly, a Notice of Determination has been prepared for the proposed Ordinance (Attachment 2).

On October 2, 2024, the City Council considered the Saturn Park Advisory Review Committee’s (“SPARC”) recommendations regarding potential future land uses within the Saturn Park Innovation/Technology Zone (“SPITZ”) [1] and directed the City Manager and City Attorney to draft zoning regulations to expand allowable uses in the area. Updating the MPMC to include these additional land uses serves the public interest and implements Measure JJ (which ratified the General Plan’s Land Use and Urban Design Element), SPARC’s recommendations, and City Council direction. This Ordinance would implement the SPITZ.

[1] The SPITZ is codified in MPMC Chapter 21.14.

Background:

The principal land uses currently identified in the MPMC were added by Measure D (Ordinance No. 1933) as approved by voters on April 14, 1998. In 2020, however, voters enacted Measure JJ which adopted the Monterey Park Land Use and Urban Design Element (“LUE”). Measure JJ constitutes the 20-year voter approved vision for land use within the City.

Voters designated the SPITZ area as “Innovation/Technology.” Uses for this designation include research and development; light manufacturing; service commercial; professional offices; entertainment; breweries/wineries/distilleries; trade and technical schools; public utilities; and similar uses “per zoning regulations.” In Section 3(A) of Measure JJ, voters specifically delegated authority to the City Council to “implement [Measure JJ] including, without limitation, adopting all zoning regulations needed to effectuate [Measure JJ] by

ordinance.” Additionally, Section 4 of Ordinance No. 2198 provides that Measure JJ must be interpreted to be consistent with all applicable law; Section 6 of Ordinance No. 2198 provides that Measure JJ must be broadly construed to achieve the voter’s intent in approving Measure JJ.

The current land uses in the MPMC (added by Measure D in 1998) are inconsistent with Measure JJ. To create consistency, the City Council established the SPARC on May 22, 2024, to gather community input and develop recommendations for potential land uses in the SPITZ.

To the extent feasible, the draft Ordinance is crafted to balance existing – voter enacted – land use regulations with those needed to implement the voter directives in Measure JJ.

Accordingly, the recommended edits are narrowly construed to reduce the impact upon voter enacted, but now outdated, land use regulations. The redlining provided within Exhibit A to the Ordinance demonstrates the effort taken to help reconcile the voter directions from 1998 versus this century.

Since 2019, the City engaged in widespread public dialogue regarding the future of Saturn Park. This includes the appointment of the General Plan Advisory Committee (the “GPAC”) in February of 2019; the subsequent workshops to craft the Land Use and Urban Design Element (“LUE”) adopted by the City Council in 2020; voter approval of the LUE via Measure JJ in 2020; creation of the SPARC in May 2024; and direction provided by the City Council in October 2024. As to that direction, a copy of the October 2, 2024, staff report is attached for reference without attachments (Attachment 4); the full staff report (Item 2-A) – constituting more than 500 pages – may be reviewed here:

https://www.montereypark.ca.gov/DocumentCenter/View/18079/10-02-2024-Agenda-Item-No- 2A---Saturn-Park-Advisory-Review-Committee-SPARC-Outreach-and-Recommendation

A comment received during the SPARC process and various Council meetings is that the voter enacted zoning regulations from Measure D may not be amended by the City Council as recommended. The express authority delegated by voters to the City Council via Measure JJ is explained above. [1]

Additionally, however, California law – both existing and contemplated by the California Legislature [2] – may supersede voter enacted land use regulations. California legislation concerning matters of statewide importance supersedes and preempts local land use controls, including voter-enacted regulations. [3] Even if, therefore, the City Council took no action to implement the voters’ intent via Measure JJ, residential dwelling units might still be built within Saturn Park in accordance with California law. [4]

Proposed Principal Uses:

The proposed allowable uses listed below are based on one or more of the following sources:

SPARC’s October 2024 Outreach Report (Attachment 3), Measure JJ, or general MPMC clean-up efforts. Each proposed use includes a justification for its inclusion. In addition, the Community Development Director (“Director”) included specific provisions for certain uses to help mitigate any potential concerns or impacts.

Proposed Additional Principal Uses Reason for Inclusion Breweries/ wineries/ distilleries (subject to MPMC
§ 21.32.200)
Listed in the LUE
Entertainment establishment (not within 300 feet of
an “R” zone and measuring less than or equal to
5,000 sq. ft.)
Listed in the LUE
Light manufacturing Listed in the LUE
Live/ work units “Residential/Housing” mentioned in the SPARC Outreach Report
Mixed-Use Development Mentioned in the SPARC Outreach Report Research & development Listed in the LUE
Service commercial Listed in the LUE
Trade and technical schools (less than or equal to
5,000 sq. ft.)
Listed in the LUE

Proposed Definitions:

Some of the land uses required by Measure JJ are not currently defined in the MPMC. As a result, this Ordinance also adds new definitions for “breweries, wineries, distilleries,” and “service commercial.” In addition, while certain proposed uses are already defined in the MPMC, they require greater specificity for the SPITZ. These zone-specific definitions are proposed for “entertainment establishment,” “live/work”, and “research and development.” Finally, a definition is added to “service business” which is currently listed as an allowable use in the SPITZ but is not yet defined in the MPMC.

[1] This was explained both formally and informally (see e.g., Attachment 4; and Attachment 5). [2] See, e.g., AB 1532 (Haney, 2023) which, were it approved, would allow office conversion projects by right within all zones.

While this “Office to Housing Conversion Act” failed to advance within the Legislature, it demonstrates the Legislature’s intent to encourage more housing within local jurisdictions.
[3] See, e.g., Mission Springs Water Dist. v. Verjil (2013) 218 Cal.App.4th 892, 920 ("if the state Legislature has restricted the legislative power of a local governing body, that restriction applies equally to the local electorate’s power of initiative”). [4] See, e.g., affordable housing developments in commercial zones and mixed-income housing developments in commercial corridors (Gov’t Code §§ 65912.100 et seq., 65982.24).

Strategic Plan Goal:

The attached ordinance satisfies the 2025-26 Strategic Plan Goal to “Strengthen our local economy and enhance housing opportunities” by achieving the goals and programs set forth in the LUE, reducing barriers to encourage housing development, and supporting economic growth in the City. More importantly, however, it implements the voters’ directives in Measure JJ and identified by the SPARC.

Legal Notification:

The legal notice of this hearing was posted at City Hall, Monterey Park Bruggemeyer Library, and Langley Center and published in Monterey Park Press on August 14, 2025, with affidavits of posting on file. Additionally, 394 notices were mailed to affected property owners and property owners within a 500-ft radius of the Saturn Park Innovation/ Technology Zone.

Fiscal Impact:

There are no identifiable fiscal impacts associated with adopting the Ordinance itself (other than costs associated with codifying the Ordinance).

Attachments:

1. Draft Ordinance

2. Notice of Determination

3. SPARC's October 2024 Outreach Report (without exhibits)

4. October 2, 2024, City Council Staff Report (without attachments)

5. Attachment 18 of October 2, 2024, City Council Staff Report

Staff Report
September 3, 2025

ATTACHMENT 1
Draft Ordinance

ORDINANCE NO.

AN ORDINANCE IMPLEMENTING MEASURE JJ BY AMENDING THE
MONTEREY PARK MUNICIPAL CODE (“MPMC”) GOVERNING

PERMISSIBLE LAND USES IN THE SATURN PARK INNOVATION/
TECHNOLOGY ZONE.

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: The City Council finds and declares that:

A. This Ordinance is adopted pursuant to the voters’ directives in Ordinance No. 2198, as adopted November 3, 2020 via Measure JJ (the “LUE”).

B. In April 2024, the Planning Commission held two meetings to discuss conceptual land uses for Saturn Park as contemplated in the LUE.

Subsequently, on May 22, 2024, the City Council established the Saturn Park Advisory Review Commission (“SPARC”) to gather and incorporate community input in the development of new zoning regulations for Saturn Park.

C. The SPARC conducted four community workshops between July 29, 2024 and August 29, 2024 . A t the final meeting, the SPARC voted 8 -1 to recommend that the City Council expand allowable uses in Saturn Park with consideration for areas and parcels above and west of Saturn Street versus the south of Saturn Street without eliminating any existing permitted land uses.

D. On October 2, 2024, the City Council directed the City Manager and City Attorney to draft zoning regulations implementing Measure JJ by expanding allowable uses. Updating the Monterey Park Municipal Code (“MPMC”) to include additional land uses for Saturn Park is in the public interest, consistent with Measure JJ, SPARC’s recommendations, and City Council direction.

E. A review of the 2020 LUE, the Certified Housing Element (dated March 30, 2023), and MPMC Chapter 21.14 demonstrates that the current zoning regulations are inconsistent with the vision for Saturn Park as directed by voters. These regulations must be updated to align with the most recent voter directives in Measure JJ, the California Legislature’s directives (as reflected in the City’s Certified Housing Element), and California law.

F. Interpreting the City’s land use regulations lies solely with the City Council (Yamaha Corp. of Am. v. State Bd. of Equalization (1998) 19 Cal.4th 1 and State Farm Mutual Auto Ins. Co. v Quackenbush (1999) 77 Cal.App.4th 65).

Ordinance No.

G. The City may adopt and enforce all laws and regulations not in conflict with the general laws and the City holds all rights and powers established by California law.

H. Section 3(A) of Ordinance No. 2198 authorizes the City Council to implement the 2020 LUE by, among other things, adopting zoning regulations. Section 4 of Ordinance No. 2198 provides that Measure JJ must be interpreted to be consistent with all applicable law; Section 6 of Ordinance No. 2198 provides that Measure JJ must be broadly construed to achieve the voter’s intent in approving Measure JJ.

I. The Land Use Policy Map and Regulating Plan (Figures LU-3 and LU-4 to the 2020 LUE) renamed this area as “Saturn Park” with a designated land use of “Innovation/Technology.” Goal 25 of the 2020 LUE directs the City Council to revitalize Saturn Park as a destination business park for high- quality service industry, research and development, and emerging industry jobs. This directive is further refined via Policy Nos. 25.1 to 25.3.

J. The 2020 LUE also provides that the City Council should ensure flexible zoning regulations; support local businesses; maintain a proactive economic development program; and invest in commercial corridors (Policy Nos. 1.1 to 1.4).

K. The City’s Housing Element (“HE”) reflects the City’s desire to encourage construction of housing that is attainable for households of all income levels.

Among other things, the City Council determined that the City should take proactive actions to increase the availability of dwelling units on underutilized properties ( see, e.g., Section 5(C) of Resolution No. 2022- R90, adopted November 16, 2022).

L. This Ordinance is intended to clarify existing regulations and specifically implement the voter’s intent set forth in Measure JJ. Measure JJ’s Final Environmental Impact Report (“FEIR”) is identified at State Clearing House No. 2001-01-1074.

SECTION 2: Pursuant to MPMC § 21.38.050, the City Council finds as follows:

A. This Ordinance is consistent with the goals, policies, and objectives of the General Plan. Expanding the allowable uses within Saturn Park will host a variety of retail, service, and entertainment uses (Goal 1, Policy Nos. 1.1 to

1.4 of the LUE ). Modifying the allowable uses to include innovative industries will foster a dynamic mix of businesses, uses, and employment that sustain a strong local economy and contributes to a fiscally sustainable tax base (Goal 2, Policy Nos. 2.1 to 2.3 of the LUE ). Incorporating more contemporary uses will allow Saturn Park to be a destination business park

Ordinance No.

for high- quality service industries, research and development, and emerging industry jobs. Additionally, the integration of mixed-use residential uses will contribute to a distinct physical identity for Saturn Park (Goal 25, Policy Nos. 25.1 to 25.3 of the LUE ). Furthermore, permitting mixed- use development within Saturn Park is one way the City reduces governmental constraints on providing attainable housing to the greatest extent feasible (Goal 2, Policy 2.4 of the HE).

B. The proposed amendments will not adversely affect surrounding properties.

The LUE and HE are the City’s governing land use policy documents that guide the future development and reuse of property within the City. The LUE and HE were adopted by the City Council and the City’s vot ers after years of public comments and technical studies evaluating the impacts and long- range goals for the physical development of the community, both, in terms of land use and intensity. The proposed amendments implement the stated objectives and measures of the LUE and HE, which will ensure the cohesive and orderly development of land within the City, consistent with the City’s long-term goals. Accordingly, this Ordinance will not adversely affect surrounding properties.

C. The proposed amendments promote public health, safety, and general welfare and serves the goals and purposes of the MPMC. This Ordinance harmonizes the MPMC with the LUE by, without limitation, expanding allowable uses as contemplated in the LUE consistent with Measure JJ, SPARC’s recommendations, and City Council. Among other things, the amendments will foster a dynamic mix of businesses, uses, and employment that sustain a strong local economy and contributes to a fiscally sustainable tax base while reducing barriers to the development of housing to address the statewide housing shortage by allowing mixed- use development.

SECTION 3: MPMC Chapter 21.14, captioned “S -P – SATURN PARK INNOVATION/TECHNOLOGY ZONE,” is amended to read as set forth in attached Exhibit “A,” which is incorporated by reference.

SECTION 4: Environmental Review. The City reviewed the environmental impacts of the proposed Ordinance 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 § 15168(c)(2) states that if a project is proposed which has been the subject of a prior certified EIR, and “[i]f the [City] finds that pursuant to Section 15162, no new effects could occur or new mitigation measures would be required, the agency can approve the activity as being within the scope of the project covered by the … EIR, and no new environmental document would be required.” This activity will not result in any new environmental impact not already considered and the City Council finds as follows:

Ordinance No.

A. On December 5, 2019, the City Council adopted Resolution No. 12124 certifying the Monterey Park Focused General Plan Update Final Environmental Impact Report (the “FEIR”) (State Clearing House (SCH) No. 2001-01-1074) (Exhibit A), which is incorporated by reference and accessible on the City’s website.
1 B. The amendments proposed by this Ordinance are within the scope of the FEIR, and the circumstances, impacts, and mitigation requirements identified in the FEIR remain applicable to the proposed Project.

C. This Ordinance will not facilitate the creation of any development beyond that anticipated and accounted for by the F EIR, does not contemplate any changes which will require major revisions to FEIR , and there are no substantial changes with respect to the circumstances under which FEIR was undertaken.

D. There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time FEIR was approved.

E. Approval of this Ordinance will not result in any new or increased environmental effects, and no new mitigation measures are required.

F. Pursuant to CEQA Guidelines § 15168(c)(2), no new environmental documentation is required.

SECTION 5: Notice of Determination. The Director of Community Development, or designee, is directed to file a Notice of Determination in accordance with CEQA Guidelines § 15094, and any other applicable law.

SECTION 6: Preservation. This Ordinance does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, the effective date of this Ordinance. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.

SECTION 7: Validity of Previous Code Sections. If this entire Ordinance or its Application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the MPMC or other city ordinance by this Ordinance will be rendered void and cause such previous MPMC provision or other the city ordinance to remain in full force and effect for all purposes.

1 https://www.montereypark.ca.gov/DocumentCenter/View/16507/Reso-12124---attachments-included.

Ordinance No.

SECTION 8: Enforceability. Repeal of any provision of the MPMC does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.

SECTION 9: Reliance on Record. Each and every one of the findings and determinations in this Ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the matter. The determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.

SECTION 10: Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts were made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.

SECTION 11: Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance supersede all conflicting ordinances and that this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

SECTION 12: Severability. If any part of this Ordinance 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 provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 13: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Monterey Park ’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, and cause it to be published or posted in accordance with California law.

SECTION 14: Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

Ordinance No.

SECTION 15: Effective Date. This Ordinance will become effective 30 days after second reading and adoption.

PASSED AND ADOPTED this ____ day of _________, 2025.

____________________________
Vinh T. Ngo, Mayor

ATTEST:

________________________________
Maychelle Yee, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, City Attorney

By: ________________________________
Justin A. Tamayo, Assistant City Attorney

EXHIBIT A
MPMC CHAPTER 21.14
S-P—SATURN PARK INNOVATION/TECHNOLOGY ZONE

§ 21.14.010. Purpose.

In order to provide for the development of integrated professional, office , mixed-use, live/work, and limited retailcommercial areas that exhibit a diversity of business activity from both revenue and service quality standpoints, and which are compatible and responsive to abutting land uses, including residential developments, the following regulations shall be applicable to all properties classified in the S-P zone.

§ 21.14.020. Permitted Uses.

No person shall use, nor shall any property owner permit the use of any lot classified in any S -P zone for any use, other than the following as set out in Sections 21.14.040 and 21.14.050.

§ 21.14.030. Prohibited Uses.

All uses not permitted in this chapter shall beare prohibited.

§ 21.14.040. Principal Uses.

The principal uses shall be permitted as follows:

Administrative and professional offices;
Beauty salon or barber shop;
Bookstore;
Breweries/wineries/distilleries (subject to Section 21.32.200); Cellular phone, telephone and pager store;
Coffee shop;
Computer store, sales and service;
Confectionary shop;
Data processing facility;
Delicatessen;
Employment agency;
Entertainment (not within 300 feet of an “R” zone as measured from the nearest parcel line and measuring 5,000 sq. ft. or less);
Financial institutions' corporate offices, no retail banking; General research facility, not involving testing, manufacturing, fabrication or processing or sale of products, nor the use of a hazardous material that has a degree of hazard rating in health, flammability or reactivity of Class 4 as ranked by U.F.C. Standard 79-3 or succeeding standard; Gift shop;
Ice cream parlor;
Import and export offices;
Investment service offices, stock brokers;
Jewelry store, sales and service;
Legal offices;
Light manufacturing;
Live/work units;
Mailbox and service store;
Medical equipment and supplies, sales and service;
Mixed-Use Development;
Notary public;

Photocopying and blueprinting;
Public utility customer service office;
Real estate offices and title companies;
Research and development;
Restaurant, tearoom and café;
Service businesses;
Service commercial;
Stationery;
Studio, art, dance, martial arts, photography (measuring 5,000 sq. ft. or less); Tax consulting;
Tobacco store;
Trade and technical schools (measuring 5,000 sq. ft. or less); Travel agency;
Video sales and rentals.

§ 21.14.050. Conditional uses.

Conditional uses shall be uses specifically enumerated in Section 21.14.200.

§ 21.14.060. Standards of Development Generally.

All premises in the S-P zone shall comply with the following standards of development as set out in Sections 21.14.070 through 21.14.190.

§ 21.14.070. Lots.
(A) Lot Area. The minimum lot building on the S -P zone area of each lot shall be 5,000 square feet.
(1) Lot Width. The minimum width of each lot shall be 50 feet. (B) Lot Depth. The minimum depth of each lot shall be 100 feet.

§ 21.14.080. Yards.

The following minimum yards shall be required on all lots:
(A) Front Yard. No minimum front yard is required.
(B) Side and Rear Yards. Every lot shall have and maintain minimum side and rear yards as follows:
(1) When the side yard is adjacent to a street, the yard shall be at least 15 feet in depth. (C) When adjacent to an R-zone, the yard shall be no less than 50 feet, plus five feet in depth for each story above one story of building or each 10 foot increment above 15 feet in height of building on the S -P zoned lot. Where there is an opening, including, but not limited to, windows, pedestrian doors and roll-up doors, in any facing a yard adjacent to an R-zone, the yard shall be no less than 100 feet from any opening to minimum width of the R zoned lot.

The yard may be used for parking, excepting a minimum 15 foot wide area abutting the R zone which shall be landscaped and maintained in such a condition so as not to violate Section

4.30.050. The required landscaping shall also conform to the standards set forth in Section

21.14.140. When the S-P zoned lot is separated from an R zone by an alley, a rear yard setback of 40 feet shall be provided, as measured from the centerline of the alley. A minimum three- foot wide landscaped planter shall be installed and maintained along the alley, excepting at any vehicular access driveway.
(D) When adjacent to a commercially-zoned or M zoned lot, no yard is required.

§ 21.14.090. Building Height. [Reserved]
No building or structure in excess of 40 feet or three stories shall be located on any lot. Buildings or structures exceeding the height limits may be permitted upon approval of a conditional use permit.
§

§ 21.14.100. Floor Area Ratio (FAR).[Reserved]
The floor area ratio shall not exceed 0.5 when the lot is less than 10,000 square feet in area. When the lot is between 10,000 and 20,000 square feet in area, the floor area ratio shall not exceed 0.65.

When the lot is more than 20,000 square feet in area, the floor area ratio shall not exceed 0.8. The floor area ratio may be increased to a maximum of 1.0 for all lots, upon approval of a conditional use permit.

§ 21.14.110. Off-Street Parking and Loading.

Each S-P zoned lot shall have and maintain off-street parking and loading facilities as required by this title.

§ 21.14.120. Required Walls.

Except as otherwise provided in Section 21.08.080 the following standards shall apply:
(A) Where any part of the front yard or street side yard of an S-P zoned lot is used for parking or loading, a masonry wall compatible in color with the commercial building and/or sight - obscuring hedge a minimum of three feet in height shall be erected and maintained within a landscaped area a minimum of three feet in width adjacent to the sidewalk at the front or side yard property line as required by this title.
(B) When any S-P zoned lot has a common side or rear lot line with any R zoned property, a six- foot solid decorative masonry or concrete block wall compatible in color with the commercial building shall be constructed and maintained along all such common side or rear lot lines.

Where an easement exists, abutting the common property line, the said decorative wall may be constructed along the boundary of the easement on the commercial lot. A minimum three- foot wide landscaped planter with automatic irrigation system shall be placed adjacent to the wall, planted with trees, shrubs, ground cover and vines. Where a parking lot on the S-P zoned lot abuts a R zoned lot, the additional parking lot landscaping requirements of Section

21.22.270 shall apply.

§ 21.14.130. Trash Facilities.

Each S -P zoned lot shall be provided with facilities for the storage and collection of trash as follows:
(A) Any outdoor trash facility shall be enclosed by a minimum five-foot high solid masonry, brick or concrete wall except for the access way which shall be enclosed with solid decorative gates of the same height.
(B) Location and size shall be subject to approval by the planner. When any S -P zoned lot has a common property line with a R zoned lot, no trash facility shall be located within the required building setback.
(C) Open vehicular and pedestrian access to and from such trash facility shall be provided. No parking spaces shall block such access to the trash facility. (D) Trash facilities shall be maintained in a closed manner at all times to prohibit visibility from public rights-of-way or adjacent property.

Notwithstanding any other provision of this title, all existing uses, buildings and structures in the S-P zone which do not conform to this section shall provide a fully enclosed trash facility within six months of the effective date of the ordinance codified in this chapter unless providing such trash facility will eliminate any existing required off-street parking spaces.

§ 21.14.140. Buffering and Maintenance of Landscaping and Easements.

For S -P zoned lots with side or rear yards that are adjacent to an R zoned lot, the following buffering provisions shall be provided and maintained:
(A) Landscaping, irrigation and maintenance plans shall be required and the plans shall be subject to approval of the city planner under the provisions of Chapter 21.36. The plans shall incorporate, but not be limited to, 15 gallon minimum trees at time of planting, interspersed shrubs, ground cover, raised earthen berms and automatic sprinkler systems. The City may require the maintenance plan to include a bona fide service agreement with a City licensed landscaping service business. Maintaining an active service agreement on file with the City Planner shall be the responsibility of the owner of the subject property or authorized agent. (B) All landscaped areas and easements shall be maintained in good condition, weed and disease free, and in compliance with Chapter 9.54. Notwithstanding any other provision of this title, all S-P zoned lots that abut an R zone and do not have landscaping, irrigation and maintenance plans that have been approved by the city planner pursuant to requirements of Chapter 21.36 shall submit a landscaping, irrigation and maintenance plan for city planner approval within six months of the effective date of the ordinance codified in this chapter.

§ 21.14.130. Compressors, Air-Conditioning Units or Similar Mechanical Equipment.

Each S -P zoned lot which has compressors, air -conditioning units or similar mechanical equipment, located on the roof and outside of the exterior walls of any building or structure, shall comply with the following:
(A) All such equipment shall be installed with permanent sound proofing measures, including, but not limited to, enclosures, parapet and sound attenuating walls and screens. All such equipment shall comply with noise standards set forth in Chapter 9.53. The location, type and scope of soundproofing measures for such equipment shall be subject to the approval of the City Planner.
(B) All such equipment shall be maintained in a clean and proper condition to prevent collection of litter and filth, emissions of dust or fumes, vibration or electrical disturbances.

§ 21.14.160. Lighting.

All outdoor lighting shall be located and shielded so as to prevent the direct spillage of light or glare onto adjacent lots and streets.

§ 21.14.170. Exceptions.

Except as otherwise provided in this section, any use, building or structure which is in existence or for which a permit has been issued, as of the effective date of the ordinance codified in this chapter, and which conformed to all zoning regulations of the City then in effect at such time, shall not be rendered nonconforming within the meaning of Chapter 21.30 solel y by reason of the application of the development standards as set forth in this chapter; provided that any such existing use, building or structure shall comply with the provisions hereof upon a change in use, or upon use, building or structure expansion or reconstruction, in whole or in part.

§ 21.14.180. Site Development Plan Approval.

Prior toExcept as otherwise provided in this chapter, before the issuance ofbuilding official issues a building permit or business license for any use, building or structure to be located on any lot, as to which the provisions of this chapter apply, the provisions of ChapterChapter 21.36 regulations governing site development plans apply. In lieu of design review by the City Planner for site plans as contemplated by Chapter 21.36, the City Council may adopt a site plan for Mixed-Use or Live/work development projects by resolution.

21.36 with regard to site development plans shall be complied with.

§ 21.14.190. Limitations on Permitted Uses.

Every Unless otherwise provided in a City Council resolution for Mixed -Use or Live/work development projects, every use permitted in the S-P zone shall comply with the following:
(A) All uses shall be conducted totally within a completely enclosed building, except for those uses which are customarily conducted in the open, as determined pursuant to Section

21.02.090 or Chapter 21.32. Those uses conducted in the open shall be no closer than 100 feet to any R zoned lot, except for parking.
(B) No outdoor storage shall be allowed unless the same is enclosed by a view -obscuring fence or wall, provided that no stored material is visible above the fence or wall, that the fence or wall is approved by the City Planner and that such storage shall be limited to the accessory storage of items sold or utilized in the conduct of a permitted use on the premises. Where the S-P zoned lot is adjacent to a R zoned lot, no outdoor storage shall be permitted within 100 feet of a R zoned lot.
(C) No loading and unloading shall be permitted in any required side or rear yard. (D) Where the S-P zoned lot is adjacent to a R zoned lot, no deliveries of goods and commodities nor loading or unloading shall be conducted during the hours from 10:00 p.m. to 7:00 a.m. (E) There shall be no overnight parking of vehicles, except those vehicles used in conjunction with a permitted use.
(A)(F) Driveways may not exceed 30 feet in width or 60% of the lot frontage. (G) No use shall be permitted which produces or causes or emits any dust, gas, smoke, glare, noise, fumes, odors, electromagnetic emanations or vibrations which are or may be detrimental to the health, safety, welfare and peace of the City and its residents and businesses.

(F)(H) No use shall be permitted which uses or stores a hazardous material that has a degree of hazard rating in health, flammability or reactivity of Class 4 as ranked by U.F.C. Standard 79-3 or succeeding standard. A business materials usage and operations form shall be filed with the Public Works Department prior to the approval of a certificate of occupancy.

Notwithstanding any other provision of this title, all S-P zoned businesses that do not have a business materials usage and operations form on file shall submit a form within six months of the effective date of the ordinance codified in this chapter. (B)(I) No person shall, at any location within the S-P zone, create nor allow the creation of noise which causes the noise level to exceed the applicable noise standards set forth in Chapter 9.53. Where the S-P zoned lot is adjacent to an R zoned lot, the noise level at the property line of the R zoned lot shall not exceed the allowable noise level for residential properties.

§ 21.14.200. Conditional Uses.*

Use
Zone in which allowed
subject to Conditional Use
Permit
Auditorium, not within 300 feet of an R zone S-P
Buildings exceeding height limit S-P
Business college (office or medical, dental) S-P
Child care center, not within 300 feet of an R zone S-P Commercial office or service units which are shared by more than 1 independently owned business enterprise
S-P
Commercial developments of 5 or more units or with an area of more than 1 acre, and within 300 feet of a R-zone
S-P
Financial institution (retail banking) S-P
Floor area ratio not to exceed 1.0 S-P
Government or public facility, except those owned or operated by the City of Monterey Park
S-P
Gymnasium, reducing salon and health center S-P
Hotel S-P
Lot size over 1 acre S-P
Places of entertainment, except as otherwise provided in this title S-P

* Ordinance No. 1933 codified these conditional uses at MPMC § 21.70.030. That section was superseded by MPMC Chapter 21.32 which contains general regulations governing conditional use permits. All conditional uses for various zones are now codified within the MPMC for those zones (rather than being listed in one section).

§ 21.14.210. Definitions.

Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter:

“Breweries/Wineries/Distilleries” means (1) for a brewery, a small beer manufacturer (Type 23 license) producing less than 15,000 barrels; (2) for a winery (Type 02 License) , producing not more than 50,000 cases annually; and (3) for a distillery or a craft distiller (Type 74 license) producing not more than 100,000 gallons of distilled spirits per year. All uses may include on-site tasting rooms, tours, and retail sales of beverages and related merchandise.

“Entertainment” or “E ntertainment establishment” means the organized action of providing amusement or enjoyment to invited members of the public. Examples include, without limitation, presentations, readings, performances, or musical renditions. Such entertainment may be provided free of charge or for a fee.

“Data center” means a building, dedicated space within a building, or group of structures located on one or more acres of land used to house a large group of networked computer systems used for data storage and processing for off- site and on- site users, to be used for the remote storage, processing, or distribution of large amounts of data. Such facilities may also include air handlers, power generators, water cooling and storage facilities, utility substations, back- up batteries, fire suppression systems, enhanced security features, and other associated utility infrastructure to support operations. This definition does not apply to small er data processing facilities that are located on less than one acre of land and where such facilities are accessory or incidental to another primary use.

“Data processing facility ” means a building, dedicated space within a building, or group of buildings primarily used for the processing, storage, and management of electronic data on less than an acre of land. This type of facility typically involves activities such as data entry, storage, conversion, and analysis for on-site use.

“Director” means the City Manager or designee. Unless otherwise designated by the City Manager, the Community Development Director is the Director.

“Live/work” means a dwelling unit of which less than 50% of the gross square footage of the total building area is used for non-residential uses. Permitted non-residential live/work uses are restricted to permitted uses within the zone in which it is located. Live/Work uses must comply with the following:

1. Live/Work units must be internally accessible between the residential area and the non- residential area. The non-residential area must be directly accessible to a non-resident from the ground level via an entry/exit separated from a residential entry/exit;

2. The operator of the non-residential use must reside in the live/work dwelling unit. However, the non-residential use may have employees that do not reside within the dwelling unit;

3. Live/Work uses must observe similar operational and delivery hours and walk-in/client visits as other permitted uses within the zone in which it is located.

4. Outdoor storage is prohibited.

5. It is unlawful for Live/Work uses to store or generate hazardous materials or employ hazardous processes.

6. Live/Work impacts including, without limitation, noise, vibration, dust, odors, fumes, smoke, heat, electrical interference or other similar nuisance conditions cannot be perceived beyond the individual unit.

7. Live/Work activities cannot increase pedestrian or vehicle traffic beyond that ordinarily associated with the zone in which it is located nor can it reduce the number of required off- street parking spaces available for use.

8. Live/work units must provide two covered parking spaces in a garage for exclusive use of the residential use. Live/work units must also provide off-street parking based on the applicable parking standard for the non-residential use or the closest similar use as determined by the

Director of Community and Economic Development.

“Research & development (R&D)” means facilities primarily engaged in scientific, technological, or product research, testing, and limited prototyping in fields such as biotechnology, life sciences, clean technology, electronics, or related disciplines. R&D uses may include wet laboratories, where chemicals, biological materials, or other substances are handled in liquid or volatile form, requiring specialized ventilation or piped utilities, as well as dry laboratories, clean rooms, or computational environments. All activities must be conducted indoors, and operations must be designed and maintained to minimize noise, odors, vibration, hazardous emissions, or visual impacts where the site is adjacent to residential or other sensitive uses. Prototype manufacturing or assembly may be permitted only if it is clearly subordinate to the R&D function and does not involve mass production or heavy machinery. All R&D uses must comply with applicable local, state, and federal environmental and health regulations.

“Service Business” is a low-impact, customer-oriented use that provides personal, professional, or administrative services directly to the public. Activities are typically conducted on an appointment or walk-in basis and do not involve equipment repair, fabrication, or industrial processes. Examples include, without limitation, barber shops, beauty salons, investment services and stockbrokers, legal offices, notary publics, and small professional offices.

“Service Commercial” use provides trade-oriented, technical, or repair-based services to individuals or businesses, often involving equipment, tools, or specialized functions. These uses may generate more operational activity than Service Businesses and may include limited on-site sales incidental to the primary service. Examples include, without limitation, photocopying and blueprinting shop, IT or tech support centers, and small-scale service contractors, especially where located near residential zones.

§ 21.14.220. Data Centers - Development Agreement Required - Requirements.

Data centers are permitted only with a development agreement in accordance with Chapter 21.44 of this code.

Staff Report
September 3, 2025
ATTACHMENT 2
Notice of Determination

were not]

was
not]

2. _______________________________________
_________________________________________
_______________________________________
___________________________________________________________________________________ Print Form
Notice of Determination Appendix D
To: From:

Office of Planning and Research Public Agency: ___________________________ Address: ________________________________U.S. Mail:

P.O. Box 3044
Sacramento, CA 95812-304
4 Street Address:
1400 Tenth St., Rm 113
Sacramento, CA 95814
_______________________________________
Contact: _________________________________
Phone: __________________________________
County Clerk
Lead Agency (if different from above): County of: _________________________________ Address: __________________________________
Address: ________________________________
Contact: _________________________________
Phone: __________________________________
SUBJECT: Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code.

State Clearinghouse Number (if submitted to State Clearinghouse):______________________________ Project Title: _________________________________________________________________________ Project Applicant: _____________________________________________________________________ Project Location (include county):_________________________________________________________ Project Description:

This is to advise that the ____________________________________________ has approved the above ( Lead Agency or Respons
ible Agency)
described proj
ect on _______________ and has made the following determinations regarding the above (date)
described project.

1. The project [ will will not] have a significant effect on the environment.

2. An Environmental Impact Report was prepared for this proj ect pursuant to the provisions of CEQA.

A Negative Dec
laration was prepared for this project pursuant to the provisions of CEQA.

3. Mitigation measures [ were made a condition of the approval of the project.

4. A mitigati
on reporting or monitoring plan [ was was not] adopted for this project.

5. A statement of Overriding Considerations [ was adopted for this project.

6. Fin
dings [ were were not] made pursuant to the provisions of CEQA.

This is to certify that the final EIR with comments and responses and record of project approval, or the negative Declaration, is available to the General Public at:

Signature (Public Agency): _____________________________ Title: ____________________________ Date: _______________________________ Date R
eceived for filing at OPR: ____________________
Authority cited: Sections 21083, Public Resources Code.

Reference Section 21000-21174, Public Resources Code. Revised 2011

Staff Report
September 3, 2025
ATTACHMENT 3
SPARC's October 2024 Outreach Report
(without exhibits)

Staff Report
September 3, 2025

ATTACHMENT 4
October 2, 2024
City Council Staff Report
(without attachments)

City Council Staff Report
DAT
E: October 2, 2024
AGENDA ITEM NO:

T
O: The Honorable Mayor and City Council
FROM: Jessica Serrano, Director of Community Development SUBJECT: Saturn Park Advisory Review Committee (“SPARC”) Outreach and Recommendation
RECOMMENDATION:

It is recommended that the City Council consider:

1. Receiving and filing the SPARC Community Visioning Workshop Series – Outreach Report (Attachment 1);

2. Approving the minutes for the SPARC’s regular meeting of August 29, 2024 (Attachment 2);

3. Receiving the Saturn Park Advisory Review Committee’s (“SPARC’s”) recommendation to expand allowed uses within Saturn Park and directing staff regarding the land uses for Saturn Park as deemed appropriate; and

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

BOARD/COMMISSION REVIEW:

On April 9, 2024, the Planning Commission discussed future land uses at Saturn Park as contemplated by the Land Use and Urban Design Element (“LUE”) to the General Plan approved by voters through Measure JJ in 2020 (Ordinance No. 2198; Attachment 3).

Additional background regarding the adoption of the LUE is contained in the City Council Staff Report, dated June 17, 2020 (Attachment 4). During a subsequent Planning Commission meeting on April 15, 2024, the majority of the Planning Commission expressed support for expanded land uses within Saturn Park to implement the vision expressed in the LUE.

EXECUTIVE SUMMARY:

The SPARC was formed on May 22, 2024 by the City Council to solicit public input and develop a recommendation regarding potential future land uses as part of the implementation of the LUE. A four-part series of community workshops was held by the SPARC beginning on July 29, 2024 and ending on August 29, 2024. At the final meeting, the SPARC voted 8-1 to recommend that City Council expand allowed uses at Saturn Park and create two different zones for properties to the north vs. properties to the south of Saturn Street. The recommended action includes that City Council consider providing direction regarding any desirable “next steps” for implementing the LUE based upon the SPARC Community Visioning Workshop Series – Outreach Report (dated October 2024).

Old Business - 2A

Staff Report

October 2, 2024

BACKGROUND:

The area referred to as Saturn Park in the LUE is approximately 65 acres and is bordered by adjacent residential uses, La Loma Park, and La Loma Reservoir to the north, Potrero Grande Drive to the south, Orange Avenue to the east, and residential uses to the west.

The area is comprised of 19 lots with 12 different property owners. This area was historically a decomposed granite quarry, but in later years became a business park called McCaslin Business Park.

Saturn Park currently has voter enacted zoning regulations, Office Professional ( “O-P”) zone, that were enacted through Measure D (Ordinance No. 1933) on April 14, 1998. The voter approved O-P zone in Saturn Park poses challenges to businesses wishing to locate in that area due to the limited allowed uses. Additionally, Saturn Park has office buildings that are obsolete and remain unoccupied due to changes to the mode in which businesses operate in the post-Pandemic era. Currently, approximately 73% of the available building square footage is unoccupied.

On November 3, 2020, voters enacted Measure JJ which adopted the LUE. A full discussion regarding the LUE was provided to the City Council in 2019 and 2020. Copies of those staff reports (without attachments) are included with this Staff Report for context (Attachment 4).

Measure JJ constitutes the 20-year voter approved vision for development in the City .

Measure JJ designates Saturn Park as “Innovation/Technology” ( LUE – Figure LU -3:

Land Use Policy Map, Attachment 5). Uses for this designation include research and development; light manufacturing; service commercial; professional offices; entertainment; and breweries/wineries/distilleries; trade and technical schools; public utilities, and similar uses “per zoning regulations.” Prohibited uses include warehousing, freight terminals, vehicle storage, and heavy manufacturing. Section 3(A) of Measure JJ specifically authorizes the City Council to “implement [Measure JJ] including, without limitation, adopting all zoning regulations needed to effectuate [Measure JJ] by ordinance.”

The SPARC was formed by the City Council on May 22, 2024 to solicit public input and develop a recommendation regarding potential future land uses at Saturn Park as part of the implementation of the LUE . On July 17, 2024, the City Council authorized the City Manager to execute a task order and budget appropriation to retain Willdan Engineering to assist the City with conducting outreach activities and potentially amending the zoning code to govern Saturn Park land uses in accordance with Measure JJ.

On June 18, 2024, the City Council adopted Urgency Ordinance No. 2245 instituting a moratorium governing the acceptance , approval and issuance of new permits for development within Saturn Park for at least 45 days, which ended on August 2, 2024. The moratorium was extended by adopting Ordinance No. 2246 on July 17, 2024 for an additional 90 days until October 31, 2024.

Staff Report

October 2, 2024

The Urgency Ordinance allow ed time for the SPARC to receive public input regarding recommended land uses for Saturn Park and implementation of the LUE. Additional extensions of the Urgency Ordinance may be desirable if the City were to pursue changes to the existing zoning regulations.

As part of the SPARC’s outreach, a four-part workshop series was held with sessions on July 29, August 12, August 19 and August 29, 2024. The workshop series was led by Willdan Engineering representatives who were responsible for leading discussions, breakout groups, and voting exercises aimed at gathering community feedback. The outreach process and community input are summarized in the SPARC Community Visioning Workshop Series – Outreach Report contained in Attachment 1. Part of the recommended action is that City Council receive and file this report.

At the final meeting on August 29, 2024, the SPARC members received a recap of the community input received at the prior workshops and voted on a recommendation to City Council regarding potential future land uses at Saturn Park. With an 8-1 vote, the SPARC voted to:

Recommend that the Monterey Park City Council expand land uses for the Saturn Park area with consideration for areas and parcels above and west of Saturn Street versus the south of Saturn Street without eliminating any existing permitted land uses.

Since the SPARC is not scheduled to reconvene, the meeting minutes from August 29, 2024 are being presented to the City Council for consideration. The recommended action includes that City Council direct staff as deemed appropriate in regard to the land uses for Saturn Park.

2024-25 STRATEGIC PLAN GOAL:

Potential direction to staff to implement the SPARC’s recommendation to expand allowed uses at Saturn Park will advance the City Council’s Strategic Plan Goal to “Strengthen our local economy and enhance housing opportunities” by increasing options for potential future businesses at Saturn Park.

FISCAL IMPACT:

No fiscal impacts are anticipated.

Staff Report

October 2, 2024

Respectfully submitted and prepared
by:

Jessica Serrano
Director of Community
Development

Approved by:

Reviewed by:

Inez Alvarez
City Manager
Karl H. Berger
City Attorney

ATTACHMENTS:

1. SPARC Community Visioning Workshop Series – Outreach Report, dated October 2024

2. SPARC Meeting Minutes, dated August 29, 2024

3. Ordinance No. 2198, Enactment of LUE

4. City Council Staff Report, dated June 17, 2020

5. LUE – Figure LU-3: Land Use Policy Map

Staff Report
September 3, 2025

ATTACHMENT 5
Attachment 18 of October 2, 2024
City Council Staff Report

INEZ ALVAREZ • CITY MANAGER
320 W. NEWMARK AVE. MONTEREY PARK, CA 91754
Office (626) 307-1497
Email • [email protected]

This message is a public record and may be disclosed under the Public Records Act or other applicable law.

From: Alvarez, Inez
To: Yee, Maychelle
Subject: SPARC Meeting Inquiry - Measure JJ
Date: Monday, September 9, 2024 4:24:00 PM
Attachments: 06-18-2024 Agenda Item No. 5A - Urgency Ordinance Implementing Interim Development for Saturn Park.pdf 05-22-2024 Agenda Item No. 3C - Saturn Park Advisory Review Committee SPARC.pdf image002.png
M. Yee Text Message 9.9.24.pdf
Hi Maychelle,

Thank you for your text, which I have attached for reference. I am replying by email, so that I can also forward you previous staff reports related to the matter.

As explained in writing to the City Council, the Planning Commission, and the SPARC – Measure JJ is the Land Use Element to the General Plan. Measure JJ provides the overall land use designation for Saturn Park. It does not establish zoning regulations.

To answer your question, no, this provision does not authorize the City Council to amend Measure JJ. No such authorization exists, i.e., voter delegation of authority to the City Council to amend Measure JJ.

As shown in the presentation at the SPARC meeting, Section 3(A) of Measure JJ specifically delegates authority to the City Council to adopt zoning regulations that are consistent with Measure JJ. This was also discussed in the staff reports for the May 22, 2024 and June 18, 2024 City Council meetings which I’ve attached for your convenience and reference. It is also explained in the ordinance establishing a moratorium on development in the Saturn Park area. I have highlighted the relevant language – hope this helps.

There has been no discussion regarding amending Measure JJ. The only discussion has been how to implement Measure JJ via zoning regulations.

Thank you,