Agenda
City Council
May 28, 2024
Adjourned Meeting – Paramount Park Community Center - 5:00 p.m. 14400 Paramount Boulevard Paramount, CA 90723 (562) 220-2000 www.paramountcity.com
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CALL TO ORDER: Mayor Annette C. Delgadillo
PLEDGE OF ALLEGIANCE: Eddie Cruz, President
Paramount Unified School District Board of Education
ROLL CALL OF
COUNCILMEMBERS:
Councilmember Isabel Aguayo
Councilmember Brenda Olmos
Councilmember Vilma Cuellar Stallings
Vice Mayor Peggy Lemons
Mayor Annette C. Delgadillo
Agenda May 28, 2024
Adjourned Meeting City Council Page 2
PRESENTATIONS
1. VIDEO PROGRESS PARK PLAYGROUND GRAND OPENING
2. PRESENTATION PARAMOUNT EDUCATION PARTNERSHIP
• PEP Board of Directors
• PEP Scholarship Selection Committee
• PEP Donors
• Recognition of PEP Scholarship Recipients
3. RECOGNITION EDUCATION MONTH
• Valedictorian, Paramount High School, Class of 2024
• Salutatorian, Paramount High School, Class of 2024
• Co-Valedictorians, Odyssey STEM Academy, Class of 2024 • Gates Scholarship Recipients
• Dell Scholars Program Awardee
• Top 25 Paramount High School Academic Students, Class of 2024
• Top 5 Odyssey STEM Academy Academic, Class of 2024
• Top 2 Buena Vista High School Academic Students, Class of 2024
• Top 5 PUSD Student Volunteers, Class of 2024
• Top 5 Paramount High School Momentum Students, Class
of 2024
• PUSD Teachers of the Year
• PUSD Classified Employees and Staff of the Year
CITY COUNCIL PUBLIC COMMENT UPDATES
PUBLIC COMMENTS
CONSENT CALENDAR
All items under the Consent Calendar may be enacted by one motion. Any item may be removed from the Consent Calendar and acted upon separately by the City Council.
4. APPROVAL AUTHORIZATION TO PURCHASE PARK MONUMENT SIGNS (CITY PROJECT NO. 9450)
Recommended Action: Approve the purchase and installation of park monuments signs from Bravo Sign & Design, Inc., Anaheim, California, in the amount of $110,060.
Agenda May 28, 2024
Adjourned Meeting City Council Page 3
5. ORDINANCE
1186
APPROVING A REQUEST BY DR. EUGENE ALLEN TO REPEAL
ORDINANCE NO. 717/ZONE CHANGE NO. 147 AND ADOPT
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 FOR 8225
ALONDRA BOULEVARD IN THE PD-PS (PLANNED
DEVELOPMENT WITH PERFORMANCE STANDARDS) ZONE IN
THE CITY OF PARAMOUNT
Recommended Action: Read by title only, waive further reading, and adopt Ordinance No. 1186.
6. APPROVAL APPLICATIONS FOR PERMITS TO SELL FIREWORKS – 2024 Recommended Action: Approve the applications to sell fireworks submitted by the eight eligible community groups.
7. REPORT REVIEW OF CITY COUNCIL PERMIT FOR LIVE
ENTERTAINMENT (KARAOKE) (PANATARATT KATE
TIRATHANANON/CATE’S CORNER) - 8400 ALONDRA
BOULEVARD
Recommended Action: Receive and file the report with the stipulation that staff conduct an annual review of Panataratt Kate Tirathananon/Cate’s Corner restaurant Live Entertainment Permit.
NEW BUSINESS
8. APPROVAL AGREEMENT WITH THINK TOGETHER FOR AFTER SCHOOL EDUCATION AND SAFETY SERVICES AT FOUR (4) SUCCESS
THROUGH EDUCATION AND RECREATION (STAR) MIDDLE
SCHOOL SITES
Recommended Action: Approve the agreement with Think
Together in the amount of $632,287.91 for the operation of four STAR middle school sites and authorize the Mayor of her designee to execute the agreement.
9. APPROVAL MEMORANDUM OF UNDERSTANDING WITH PARAMOUNT
UNIFIED SCHOOL DISTRICT FOR ACADEMIC YEAR 2024-25
ELO-P AND ASES FUNDED AFTER SCHOOL PROGRAMS
Recommended Action: Approve the Memorandum of
Understanding between the City of Paramount and the Paramount Unified School District that identifies responsibilities of both agencies in operating the ELO-P and STAR programs.
10. RESOLUTION
24:015
APPROVING THE DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
PARAMOUNT AND HABITAT FOR HUMANITY OF GREATER
LOS ANGELES FOR THE DEVELOPMENT OF TWO
AFFORDABLE HOMES AT 16305 HUNSAKER AVENUE
Recommended Action: Read by title only and adopt Resolution No. 24:015.
Agenda May 28, 2024
Adjourned Meeting City Council Page 4
11. APPROVAL AMENDMENT NO. 2 TO AGREEMENT WITH ATHENS SERVICES
FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES
AND APPROVAL OF THE MODIFICATION OF FEES AND
CHARGES FOR PICK-UP AND HAULING OF REFUSE WITHIN
THE CITY OF PARAMOUNT
Recommended Action:
A) Approve Amendment No. 2 to the Amended and Restated
Agreement between the City of Paramount and Arakelian
Enterprises. CBA Athens Services for Integrated Solid Waste Management Services, subject to final approval by the City Attorney in connection with indemnification provisions.
B) Read by title only and adopt Resolution No. 24:013 approving the modification of fees and charges for pick-up and hauling of refuse within the City.
12. RESOLUTION
24:014
AMENDING RESOLUTION NO. 19:045 PERTAINING TO THE
FREQUENCY OF THE COMMUNITY-WIDE PARKING
COMMITTEE MEETINGS
Recommended Action: Read by title only and adopt Resolution No. 24:014
13. AWARD OF
CONTRACT
DILLS PARK RENOVATION – PARKING LOT (CITY PROJECT
NO. 9259)
Recommended Action: Award the contract for the Dills Park Renovation – Parking Lot project (City Project No. 9259) to Deark E&C, Inc., Fullerton, California, in the amount of $1,040,600.20, and authorize the Mayor or her designee to execute the agreement.
ENVIRONMENTAL SUSTAINABILITY - NEW BUSINESS
14. APPROVAL APPROPRIATION OF AN ADDITIONAL $50,000 FROM THE EPA FUND IN FISCAL YEAR 2023-2024 FOR CONTINUED AIR
MONITORING
Recommended Action: Approve the appropriation of an additional $50,000 from the EPA Fund for continued ambient air monitoring in Fiscal Year 2023-2024.
COMMENTS/COMMITTEE REPORTS
CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6(f)
Agency designated representatives: City Council
Unrepresented employee: City Manager
Terms and conditions of employment
Agenda May 28, 2024
Adjourned Meeting City Council Page 5
ADJOURNMENT
To a meeting on June 11 2024 at 6:00 PM in the Council Chamber at City Hall, 16400 Colorado Ave., Paramount, CA
Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s office at (562) 220-2225 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Note: Physical hard copies of agenda items are on file in the City Clerk’s office and are available for public inspection during normal business hours. Materials related to an item on this Agenda submitted after distribution of the agenda packet are also available for public inspection during normal business hours in the City Clerk’s office. The office of the City Clerk is located at City Hall, 16400 Colorado Avenue, Paramount.
To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: May 28, 2024
SUBJECT: PROGRESS PARK PLAYGROUND GRAND OPENING
A video highlighting the Progress Park Playground Grand Opening will be presented.
To: Honorable City Council
From: John Moreno, City Manager
By: David Johnson, Community Services
Director
Date: May 28, 2024
SUBJECT: PARAMOUNT EDUCATION PARTNERSHIP
In celebration of Education Month, the Paramount Education Partnership (PEP) Board of Directors, Scholarship Selection Committee, and Scholarship donors over $2,500 will be recognized for their contribution to this program. Additionally, the PEP Scholarship awardees will be recognized for their achievement.
• PEP Board of Directors
• PEP Scholarship Selection Committee
• PEP Donors
• Recognition of PEP Scholarship Recipients
To: Honorable City Council
From: John Moreno, City Manager
By: David Johnson, Community Services
Director
Date: May 28, 2024
SUBJECT: EDUCATION MONTH
In celebration of Education Month in the City of Paramount, the City Council will recognize Paramount Unified School District students, teachers, classified employees, and staff for their notable accomplishments during the 2023-24 school year. • Valedictorian, Paramount High School, Class of 2024
• Salutatorian, Paramount High School, Class of 2024
• Co-Valedictorians, Odyssey STEM Academy, Class of 2024 • Gates Scholarship Recipients
• Dell Scholars Program Awardee
• Top 25 Paramount High School Academic Students, Class of 2024 • Top 5 Odyssey STEM Academy Academic, Class of 2024
• Top 2 Buena Vista High School Academic Students, Class of 2024 • Top 5 PUSD Student Volunteers, Class of 2024
• Top 5 Paramount High School Momentum Students, Class of 2024 • PUSD Teachers of the Year
• PUSD Classified Employees and Staff of the Year
To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: May 28, 2024
SUBJECT: AUTHORIZATION TO PURCHASE PARK MONUMENT SIGNS (CITY PROJECT NO. 9450)
BACKGROUND
Over the past several years, the City has been upgrading its existing signage citywide to reflect the improvements to the City’s downtown area completed in 2017. As part of those improvements, new wayfinding signage, City entry monument signs, and facility monument signs were introduced. Included in the FY 2023-24 Capital Improvements Budget is a project to upgrade existing facility monument signage at Progress Park and Paramount Park. New wayfinding and facility monument signs are being introduced to match the existing City Hall and Clearwater signage. The proposal includes the demolition and removal of the old signs and the installation of the new ones.
DISCUSSION
Staff received a quote from Bravo Sign and Design, Inc. for the demolition of old signage, replacement, and installation of a new entry monument signage located at both Progress Park and Paramount Park. The attached photos show the style and locations for the proposed new signage. For Progress Park, this installation includes a new vertical wayfinding sign closest to the southerly vehicle entry point on Downey Avenue, and a secondary new monument sign at the southeast corner of Downey Avenue and Jefferson Street. Currently, there is an existing monument sign located south of the main entrance to Progress Park Plaza and that will be removed as part of the project. The upgrade at Paramount Park includes the removal of the existing sign, and installation of a new monument sign closest to the northerly vehicle entrance of the park on the berm next to the sidewalk. This sign will be double sided so that it can easily be viewed by drivers going north and southbound on Paramount Blvd.
According to the City’s adopted purchasing policy, purchases of equipment in excess of $25,000 require City Council approval. The fabrication and installation of the signs are a sole source product that must match the existing signage and, according to the City’s adopted purchasing policy, does not require competitive bidding.
Agenda Report May 28, 2024
AUTHORIZATION TO PURCHASE Page 2
Project Cost
Project: $ 110,060
Contingency (10%): $ 11,006
Total: $ 121,066
FISCAL IMPACT
Funding for this project was included in the Fiscal Year 2023-24 Capital Improvement Project Budget utilizing General Funds. The total project amount of $121,066 is below the already appropriated amount of $195,000. Therefore, there is no additional fiscal impact to the City.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 5: Attractive and WellMaintained Infrastructure - Develop and maintain City-owned infrastructure, parks, facilities, and amenities that enhance quality of life and the attractiveness of the community.
RECOMMENDED ACTION
Approve the purchase and installation of park monuments signs from Bravo Sign & Design, Inc., Anaheim, California, in the amount of $110,060.
SMALL & 14’ MONUMENT SIGNS
1 of 4
14’L MONUMENT ID SIGN
FRONT VIEW
SCALE: 1/2”=1’-0”
14'
5'-7 1/4"
PROGRESS PARK
15500 DOWNEY AVENUE
SMALL MONUMENT ID SIGN
FRONT VIEW
SCALE: 1/2”=1’-0”
PROGRESS
PARK
4 1/2”
APPROVED
APPROVED
w/ CORRECTIONS
REVISE & SUBMIT
COPYRIGHT 2021 BRAVO SIGN & DESIGN/ CDR FILE: PARAMOUNT PARK MONUMENTS - MOCK UP DATE REVISED:
PLEASE LOOK OVER CAREFULLY CHECKING ALL SPELLING, PUNCTUATION & GRAMMAR.
BRAVO CAN NOT BE RESPONSIBLE FOR ANY ERRORS AFTER FINAL APPROVAL REVISION:
REV 3
COMPANY:
CONTACT:
EMAIL:
PH/FAX:
DATE:
JOB #:
CITY OF PARAMOUNT
MARIO FLORES
[email protected]
562-220-2113
11-20-2023
N/A
The original design concept
represented in this drawing is
the property of Bravo Sign &
Design. Use, in whole or in
part, by anyone other than
Bravo, for any purpose not
directly related to design,
fabrication, and or installation
by Bravo shall be subjected to
a design fee and written
release at the discretion of
Bravo Sign & Design.
Y
OUR SIGNATURE REPRESENTS FINAL APPR
O
VAL
SIGNATURE:______________________________________ DATE:____________________________________________ DRAWN BY: IT
PAGE:
APPROVED
APPROVED
w/ CORRECTIONS
REVISE & SUBMIT
COPYRIGHT 2021 BRAVO SIGN & DESIGN/ CDR FILE: PARAMOUNT PARK MONUMENTS - MOCK UP DATE REVISED:
PLEASE LOOK OVER CAREFULLY CHECKING ALL SPELLING, PUNCTUATION & GRAMMAR.
BRAVO CAN NOT BE RESPONSIBLE FOR ANY ERRORS AFTER FINAL APPROVAL REVISION:
REV 3
COMPANY:
CONTACT:
EMAIL:
PH/FAX:
DATE:
JOB #:
CITY OF PARAMOUNT
MARIO FLORES
[email protected]
562-220-2113
11-20-2023
N/A
The original design concept
represented in this drawing is
the property of Bravo Sign &
Design. Use, in whole or in
part, by anyone other than
Bravo, for any purpose not
directly related to design,
fabrication, and or installation
by Bravo shall be subjected to
a design fee and written
release at the discretion of
Bravo Sign & Design.
Y
OUR SIGNATURE REPRESENTS FINAL APPR
O
VAL
SIGNATURE:______________________________________ DATE:____________________________________________ DRAWN BY: IT
PAGE:
PROGRESS PARK - 14’ S/F SIGN
2 of 4
14’L MONUMENT ID SIGN
FRONT VIEW
SCALE: 1/2”=1’-0”
PROGRESS PARK
15500 DOWNEY AVENUE
APPROVED
APPROVED
w/ CORRECTIONS
REVISE & SUBMIT
COPYRIGHT 2021 BRAVO SIGN & DESIGN/ CDR FILE: PARAMOUNT PARK MONUMENTS - MOCK UP DATE REVISED:
PLEASE LOOK OVER CAREFULLY CHECKING ALL SPELLING, PUNCTUATION & GRAMMAR.
BRAVO CAN NOT BE RESPONSIBLE FOR ANY ERRORS AFTER FINAL APPROVAL REVISION:
REV 3
COMPANY:
CONTACT:
EMAIL:
PH/FAX:
DATE:
JOB #:
CITY OF PARAMOUNT
MARIO FLORES
[email protected]
562-220-2113
11-20-2023
N/A
The original design concept
represented in this drawing is
the property of Bravo Sign &
Design. Use, in whole or in
part, by anyone other than
Bravo, for any purpose not
directly related to design,
fabrication, and or installation
by Bravo shall be subjected to
a design fee and written
release at the discretion of
Bravo Sign & Design.
Y
OUR SIGNATURE REPRESENTS FINAL APPR
O
VAL
SIGNATURE:______________________________________ DATE:____________________________________________ DRAWN BY: IT
PAGE:
PROGRESS PARK - SMALL S/F SIGN
3 of 4
SMALL MONUMENT ID SIGN
FRONT VIEW
SCALE: 1/2”=1’-0”
**NEED TO CONFIRM TEXT SCHEDULE**
PROGRESS
PARK
APPROVED
APPROVED
w/ CORRECTIONS
REVISE & SUBMIT
COPYRIGHT 2021 BRAVO SIGN & DESIGN/ CDR FILE: PARAMOUNT PARK MONUMENTS - MOCK UP DATE REVISED:
PLEASE LOOK OVER CAREFULLY CHECKING ALL SPELLING, PUNCTUATION & GRAMMAR.
BRAVO CAN NOT BE RESPONSIBLE FOR ANY ERRORS AFTER FINAL APPROVAL REVISION:
REV 3
COMPANY:
CONTACT:
EMAIL:
PH/FAX:
DATE:
JOB #:
CITY OF PARAMOUNT
MARIO FLORES
[email protected]
562-220-2113
11-20-2023
N/A
The original design concept
represented in this drawing is
the property of Bravo Sign &
Design. Use, in whole or in
part, by anyone other than
Bravo, for any purpose not
directly related to design,
fabrication, and or installation
by Bravo shall be subjected to
a design fee and written
release at the discretion of
Bravo Sign & Design.
Y
OUR SIGNATURE REPRESENTS FINAL APPR
O
VAL
SIGNATURE:______________________________________ DATE:____________________________________________ DRAWN BY: IT
PAGE:
PARAMOUNT PARK - 14’ D/F SIGN
4 of 4
14’L MONUMENT ID SIGN
FRONT VIEW
SCALE: 1/4”=1’-0”
PARAMOUNT PARK
14400 PARAMOUNT BLVD
BRAVO SIGN & DESIGN, INC.
520 S CENTRAL PARK AVE EAST
ANAHEIM, CA 92802
7142840500
[email protected]
Estimate
ADDRESS
CITY OF PARAMOUNT
16400 COLORADO AVE
PARAMOUNT, CA 90723-
5012
SHIP TO
CITY OF PARAMOUNT
16400 COLORADO AVE
PARAMOUNT, CA 90723-
5012
ESTIMATE # 240082
DATE 04/10/2024
JOB NAME
PARAMOUNT PARK MONUMENTS
DESCRIPTION QTY RATE AMOUNT
SMALL SIGN DEMO
Small sign demo and haul away existing sign at Progress Park .
1 4,500.00 4,500.00
S/F NON-ILLUMINATED SMALL PARK ID SIGN
Manufacture custom non-lit S/F alum. cabinet, w/(2) color paint, and saddle set up for mounting, WHITE vinyl copy, to read “PROGRESS PARK” .
1 5,000.00 5,000.00T
INSTALLATION OF SMALL PARK ID SIGN
To include: Digging, setting forms, posts and rebar, pouring new concrete footing, and mounting Small Park ID sign to posts embedded into concrete footing
.
1 5,000.00 5,000.00
LARGE SIGN DEMO
Large sign demo and haul away existing sign at Paramount Park .
1 6,000.00 6,000.00
14’ INTERNALLY LIT PARK MONUMENT SIGNS
14’ x 5’-7” x 2’ D/F internally lit park monument sign, alum. cabinet, painted (3) colors, w/precast concrete base, 1”THK and ¼”THK push thru acrylic copy. (1) S/F Sign to read “PROGRESS PARK / 15500 DOWNEY AVENUE” front and back
(1) D/F Sign to read “PARAMOUNT PARK / 14400 PARAMOUNT BLVD” .
2 29,500.00 59,000.00T
INSTALLATION OF 14’ PARK MONUMENT SIGNS
To include: Digging, setting forms, posts and rebar, pouring new concrete footing, and mounting 14’ Park Monument sign to posts embedded into concrete footing
.
2 12,000.00 24,000.00
EXCLUDED: traffic control, survey/staking, gravel, concrete mow strip, concrete paving, concrete cutting, waterproofing, electrical to location, added move-ons, anti-graffiti sealer, bonds, permits and fees .
1 0.00 0.00
TERMS 95/5
DIR # 1000006083
Lic # 641391 A, C61-D42
SUBTOTAL 103,500.00
TAX 6,560.00
TOTAL $110,060.00
Accepted By Accepted Date
To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: May 28, 2024
SUBJECT: APPROVING A REQUEST BY DR. EUGENE ALLEN TO REPEAL ORDINANCE NO. 717/ZONE CHANGE NO. 147 AND ADOPT
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 FOR 8225 ALONDRA
BOULEVARD IN THE PD-PS (PLANNED DEVELOPMENT WITH
PERFORMANCE STANDARDS) ZONE IN THE CITY OF PARAMOUNT
BACKGROUND
The City Council, at its regularly scheduled meeting on May 14, 2024, introduced Ordinance No. 1186 and placed it on the May 28, 2024, agenda for adoption.
ORDINANCE NO. 1186
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT APPROVING A REQUEST BY DR. EUGENE ALLEN TO
REPEAL ORDINANCE NO. 717/ZONE CHANGE NO. 147 AND ADOPT
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 FOR 8225 ALONDRA
BOULEVARD IN THE PD-PS (PLANNED DEVELOPMENT WITH
PERFORMANCE STANDARDS) ZONE IN THE CITY OF PARAMOUNT”
DISCUSSION
Subsequent to the introduction of Ordinance No. 1186, a typographical error was found in the original ordinance title which has been corrected on the title shown above. The zone change being approved by this ordinance is Zone Change. No. 248 not Zone Change No. 148 as shown on the title when the Ordinance was introduced. All information in the original agenda report referenced Zone Change No. 248 Ordinance No. 1186, as shown above, is presented for adoption at tonight’s meeting. The agenda report from the May 14, 2024, meeting is attached for reference.
FISCAL IMPACT
None.
Agenda Report May 28, 2024
ORDINANCE NO. 1186 Page 2
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit. 3: Economic Health - Support a healthy, sustainable economy reflecting community values.
RECOMMENDED ACTION
Read by title only, waive further reading, and adopt Ordinance No. 1186.
20. PUBLIC HEARING ORDINANCE NO. 1186/ZONE CHANGE NO. 248 8225 ALONDRA BOULEVARD
Recommended Action: Read by title only, waive further
reading, introduce Ordinance No. 1186, “Approving a request by Dr. Eugene Allen to repeal Ordinance No. 717/Zone
Change No. 147 and adopt Ordinance No. 1186/Zone Change No. 148 for 8225 Alondra Boulevard in the PD-PS (Planned Development with Performance Standards) zone in the City of Paramount,” and place it on the May 28, 2024 agenda for adoption.
To: Honorable City Council
From: John Moreno, City Manager
By: John Carver, Planning Director
John King, AICP, Assistant Planning
Director
Date: May 14, 2024
SUBJECT: ORDINANCE NO. 1186/ZONE CHANGE NO. 248
8225 ALONDRA BOULEVARD
BACKGROUND
Request
This item is a request by Dr. Eugene Allen to replace Ordinance No. 717/Zone Change No. 147 to allow an urgent care facility and activities and services for disabled youth at 8225 Alondra Boulevard in the PD-PS (Planned Development with Performance Standards) zone.
On May 1, 2024, the Planning Commission recommended that the City Council approve the zone change.
The Development Review Board is expected to review a related application, Development Review Application No. 24:005, in June 2024. Additionally, a conditional use permit (CUP) application from the applicant is forthcoming.
Zone changes are processed in compliance with State law and Chapter 17.52 of the Paramount Municipal Code. The Planning Commission decision is a recommendation to the City Council.
Since 2007, the applicant has operated a medical clinic in Paramount, first at 16415 Colorado Avenue #104 before relocating to 15745 Paramount Boulevard in 2016.
Ordinance No. 717/Zone Change No. 147
In 1987, the City Council adopted Ordinance No. 717, approving Zone Change No. 147.
This approval changed the zone from C-3 (General Commercial) to PD-PS (Planned Development with Performance Standards) at 8225 Alondra Boulevard. As stated in the zone change document, the intent of the uses in this PD-PS zone was to include retail commercial establishments (excluding uses involving the sale of food) and professional offices.
The existing PD-PS zone regulations are attached.
Agenda Report May 14, 2024
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 Page 2
Site Description
The subject property, located at the northwest corner of Alondra Boulevard and Virginia Avenue, is 25,540 square feet in area. A 13,530 square foot building, constructed in 1980, occupies the site. An interior design business owned by the current property owner is winding down. A bookkeeping business that operates from the building is expected to remain until Dr. Allen begins construction.
A residential neighborhood zoned R-2 (Medium Density Residential) is to the north, a legal nonconforming residence in the C-3 zone is to the west, a self-serve carwash is to the south, and an office building is to the east.
DISCUSSION
Project Description
The applicant is proposing to repurpose the existing building as a new urgent care medical office, along with various other community related uses for education, after-school classes, and tutoring.
Regarding the urgent care component, Dr. Allen’s office would total 2,194 square feet.
This area is comparable to the 2,000 square foot medical office that Dr. Allen currently occupies on Paramount Boulevard. The proposed urgent care would operate Monday through Friday between 9:00 a.m. and 8:00 p.m. and on Saturday and Sunday between 9:00 a.m. and 2:00 p.m.
Additional elements in the remainder of the building include children’s play areas, a music studio, a karate studio, and a large-scale sculpture. A proposed “Body and Mind” youth program would operate Monday through Saturday from 9:00 a.m. and 6:00 p.m. A proposed “Faith, Perseverance, Resiliency, and Success” youth program would operate Monday through Friday from 9:00 a.m. and 6:00 p.m. and on Saturday between 9:00 a.m. and 5:00 p.m.
The site currently provides 30 parking stalls, including 28 standard stalls and 2 Americans with Disabilities Act (ADA) stalls. An oversized parking space is provided for van parking.
As previously mentioned, the applicant will be required to obtain an approved conditional use permit from the Planning Commission prior to opening for business. All aspects of these proposed uses, including days and times of operation, will be evaluated and considered under the CUP application process.
Photos
Below is a view looking northwest at the subject site:
Agenda Report May 14, 2024
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 Page 3
Below is a view west at the east side of the subject site:
Below is a view north at the south side of the subject site:
Plans
The following is the site plan:
Agenda Report May 14, 2024
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 Page 4
Zone Change Description
The proposed zone change primarily adds the following as possible uses:
• Studios (dance and fitness, martial arts, recording, art, and music). • Children’s play areas associated with education and/or tutoring – with Conditional Use Permit.
• Medical, dental, and optometrist uses, including urgent care facilities – with Conditional Use Permit.
• Services and programs for persons who have one or more disabilities – with Conditional Use Permit.
• Youth activity programs – with Conditional Use Permit.
Other proposed changes include incorporating regulations that have been adopted for traditional commercial zones in recent years. Examples include drought tolerant landscaping requirements, the prohibition of window security bars and other specific window coverings, the prohibition of razor wire and barbed wire, and clarifying that housing is not a permitted use.
Agenda Report May 14, 2024
ORDINANCE NO. 1186/ZONE CHANGE NO. 248 Page 5
Environmental Assessment
Blodgett Baylosis Environmental Planning, an environmental planning firm, prepared an analysis in accordance with the California Environmental Quality Act (CEQA) and CEQA Guidelines. The zone change is exempt from the provisions of the California (b)(3) – general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment for other properties. The associated project is a Class 3 (new construction or conversion of small structures) Categorical Exemption pursuant to Article 19, Section 15303 of CEQA Guidelines.
Summary
As described by the environmental assessment, the proposed use would not result in any significant increased capacity, changes in operation, or increased employment. A satisfactory amount of parking spaces as determined through the conditional use permit process will be provided. Site access and circulation would not change. In addition, no significant new construction would occur other than that required for the proposed interior tenant improvements. At the completion of construction and once occupied, the proposed project would not significantly raise ground-borne noise levels (also to be included a condition of approval of the conditional use permit). The project would not be out of character with the General Plan, which the City Council most recently updated in 2007.
Furthermore, additional review and potential conditions of approval will be considered with Development Review Application No. 24:005 and the forthcoming conditional use permit application.
FISCAL IMPACT
None.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity, and guidelines; and provide the framework for policy decisionmaking. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcomes No. 1: Safe Community - Provide a safe place to live, work, and visit; and No. 3: Economic Health - Support a healthy, sustainable economy reflecting community values.
RECOMMENDED ACTION
Read by title only, waive further reading, introduce Ordinance No. 1186, “Approving a request by Dr. Eugene Allen to repeal Ordinance No. 717/Zone Change No. 147 and adopt Ordinance No. 1186/Zone Change No. 148 for 8225 Alondra Boulevard in the PDPS (Planned Development with Performance Standards) zone in the City of Paramount,” and place it on the May 28, 2024 agenda for adoption.
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1186
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT APPROVING A REQUEST BY DR. EUGENE ALLEN TO
REPEAL ORDINANCE NO. 717/ZONE CHANGE NO. 147 AND ADOPT
ORDINANCE NO. 1186/ZONE CHANGE NO. 148 FOR 8225 ALONDRA
BOULEVARD IN THE PD-PS (PLANNED DEVELOPMENT WITH
PERFORMANCE STANDARDS) ZONE IN THE CITY OF PARAMOUNT
THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Purpose and Findings. The City Council finds and declares as follows:
WHEREAS, California Constitution Article XI, Section 7, enables the City of Paramount (“the City”) to enact local planning and land use regulations; and WHEREAS, the authority to adopt and enforce zoning regulations, including the location and boundaries of the various zones shown and delineated on the Official Zoning Map of the City, is an exercise of the City’s police power to protect the public health, safety, and welfare; and
WHEREAS, the City desires to ensure that development occurs in a prudently effective manner, consistent with the goals and objectives of the General Plan as updated and adopted by the City Council on August 7, 2007 and reasonable land use planning principles; and
WHEREAS, the Planning Commission held a duly noticed public hearing on May 1, 2024 at which time it considered all evidence presented, both written and oral, and at the end of the hearing voted to adopt Resolution No. PC 24:016, recommending that the City Council adopt this Ordinance; and
WHEREAS, the City Council held a duly noticed public hearing on this Ordinance on May 14, 2024, at which time it considered all evidence presented, both written and oral.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES ORDAIN AS FOLLOWS:
SECTION 2. Ordinance No. 717/Zone Change No. 147 is hereby repealed and replaced as follows with:
ORDINANCE NO. 1186
Said zone change is subject to the following conditions:
Permitted Uses:
The broad intent of the uses in this PD-PS (Planned Development with Performance Standards) zone is to include retail-commercial establishments (except those uses involving the sale of food) and professional offices.
The following uses only are permitted in this PD-PS zone:
1. Apparel shops.
2. Appliance stores.
3. Banks, credit unions, savings and loan institutions, and financial services (excluding check cashing, payday loans, and auto title loans).
4. Barber shops, beauty shops, and nail salons.
5. Book and stationary stores.
6. Boutiques.
7. Dress shops.
8. Drug stores.
9. Dry cleaners.
10. Florist shops.
11. Furniture stores.
12. Hardware stores.
13. Insurance agencies.
14. Jewelry stores.
15. Locksmiths.
16. Printing establishments.
17. Real estate brokers and sales office.
18. Shoe stores and repair shops.
19. Studios (dance and fitness, martial arts, recording, art, and music).
ORDINANCE NO. 1186
20. Tailor services.
21. Textile fabrication when in conjunction with an existing retail use at the same location.
Subject to Conditional Use Permit:
The following uses may be permitted; provided that in each instance a conditional use permit is first obtained and continued in full force and effect as provided in Section 17.48.020 of the Paramount Municipal Code.
1. Children’s play areas associated with education and/or tutoring.
2. Medical, dental, and optometrist uses, including urgent care facilities.
3. Services and programs for persons who have one or more disabilities.
4. Youth activity programs.
Prohibited Uses:
The following uses shall be prohibited in this PD-PS zone:
1. Automotive repair or service of any kind whatsoever.
2. Bars or cocktail lounges, where no food is served.
3. Billiard parlors.
4. Bingo parlors.
5. Exterior display of merchandise of any kind other than as a Special Event Sale or Grand Opening.
6. Fraternal or social organizations.
7. Game arcades.
8. Housing. Any type of residence or caretaker unit is prohibited unless allowed by State law.
9. Laundries.
10. Places of worship.
ORDINANCE NO. 1186
11. Recreational vehicles. The outdoor parking or outdoor storage of any recreational vehicle shall not be allowed. Such recreational vehicles shall include, but are not limited to motorhomes, boats, travel trailers, and transport trailers.
12. Tire shops, sales or service.
13. Vocational schools.
14. Vehicle storage. Truck and/or van storage is prohibited at all times. All other vehicle storage is prohibited overnight.
15. Welding shops.
Performance Standards:
All uses shall be closely monitored to protect the integrity and privacy of the residential neighborhood adjacent to the PD-PS zone. To the extent possible, parking and vehicular traffic shall be directed away from the residential areas.
1. Electrical. Any electrical disturbances adversely affecting the operation of any equipment other than that of the creator of such disturbance is prohibited.
2. Exterior lighting. All exterior lighting shall be low-level and shall be directed away from all residentially zoned properties.
3. Exterior storage. No exterior storage of vehicles, materials, supplies, equipment, or machinery shall be permitted whether open or in tanks, bins, or other container devices.
4. Glare or heat. Any direct or reflected glare or heat which is perceptible at any point outside of any building is prohibited.
5. Hazardous materials. Hazardous materials are prohibited at the storage facility.
6. Loading and unloading. Hours of loading and unloading shall be prohibited between the hours of 6:00 p.m. and 8:00 a.m.
7. Modifications. Alterations or modifications to the exterior of the building, fences, railings, walls, or other improvements constructed on the property, or changes to the grade or drainage pattern of the property, are prohibited without the prior consent of the Planning Director.
ORDINANCE NO. 1186
8. Noise or vibrations. Any building equipment, such as air conditioning devices, must comply with the Paramount Noise Ordinance. Any noise or vibrations other than that related to temporary construction work which is discernable without instruments at any lot line of the site is prohibited.
9. Odor. The emission of odorous gases or matter in quantities such as to be perceptible at any lot line of the site is prohibited.
10. Parking. There shall be no parking of employee vehicles on Virginia Avenue north of the subject parcel.
11. Pole/antennae. Any wireless telecommunications equipment shall be reviewed and approved by the Development Review Board.
12. Radioactive materials. The use or handling of radioactive materials is prohibited.
13. Satellite dish. The installation of a satellite dish shall be on the rooftop or otherwise concealed from public view.
14. Storage enclosed. All property being stored at the storage facility must be kept entirely within enclosed buildings.
15. Storage restrictions. The storage or accumulation of trash, manure, and other offensive or noxious materials in a self-storage unit or any other location is specifically prohibited.
16. Uses indoors. All uses except parking shall be conducted within an entirely enclosed building.
17. Trash/recyclables. Trash, recyclables, organic waste, or other waste shall be disposed of in the designated trash enclosure.
18. Vehicle repair. The maintenance, repair, or dismantling of any vehicle within the PD-PS (Planned Development with Performance Standards) zone is prohibited.
Development Standards:
1. Design. All new buildings, building additions, or substantial exterior remodels constructed in this PD-PS zone shall conform to the adopted architectural guidelines of the Central Business District.
2. Development Review. All conditions of Development Review Application No. 24:005 are applicable unless superseded by relevant changes to the Paramount Municipal Code.
ORDINANCE NO. 1186
3. Driveways. The driveways shall not be widened.
4. Fences, etc. No fence or hedge exceeding 42 inches in height shall be erected or permitted in the front setback area on any lot. No chain link fences are permitted.
5. Landscaping/irrigation. Landscaping and irrigation shall comply with Chapter 17.96 (Water-Efficient Landscape Provisions) of the Paramount Municipal Code. All landscaped areas shall include a minimum six-inch curb along the perimeter.
6. Setbacks. Setbacks shall be as indicated on the submitted site plan.
7. Parking. Parking shall be provided in accordance with Article 3 (Loading Areas and Off-Street Parking) of Chapter 17.44 (General Provisions, Conditions, and Exceptions Regarding this Title) of the Paramount Municipal Code.
8. Exterior Security Doors, Gates, and Window Coverings. The installation of exterior security doors, gates, and window coverings, including, but not limited to, bars, grilles, grates, and overhead roll down doors, or any exterior mounted covering of any type, shall be prohibited.
9. Security wire. No barbed wire, concertina wire, razor wire or cut glass shall be used as a fence or part of a fence, wall or hedge along any property line or within any required side, rear, or front yard.
10. Signs. All signage on the exterior of the building shall comply with the sign standards established for the Central Business District. All signage shall be individual channel letters, and sign cans are prohibited.
11. Special Event Sales and Grand Openings. Special Event Sales and Grand Openings shall be as per Paramount Municipal Code regulations.
12. Tarps. The use of tarps is prohibited in front setbacks, side setbacks, rear yard areas, over driveways, and in parking and circulation areas.
Compliance with Chapter 17.72 (PD-PS, Planned Development with Performance Standards Zone) of the Paramount Municipal Code.
This zone change case shall comply with all conditions set forth in Chapter 17.72 (PD-PS, Planned Development with Performance Standards Zone) of the Paramount Municipal Code zone, Section 17.72.010 to 17.72.210, inclusive.
ORDINANCE NO. 1186
SECTION 3. California Environmental Quality Act (CEQA). The City Council hereby finds that this zone change is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.
SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase in this ordinance or the application thereof to any person or circumstance is for any reason held invalid, the validity of the remainder of the ordinance or the application of such provision to other persons or circumstances shall be adopted thereby. The City Council hereby declares it would have passed this ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases or the application thereof to any person or circumstance be held invalid.
SECTION 5. Effective Date. This Ordinance shall take effect thirty days after its adoption, shall be certified as to its adoption by the City Clerk, and shall be published as required by law, together with the names and members of the City Council voting for and against the Ordinance.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this __ day of ____ 2024.
____________________________________
Annette C. Delgadillo, Mayor
Attest:
________________________
Heidi Luce, City Clerk
https://paramountcity1957.sharepoint.com/sites/Planning/SharedDocuments/PLANNINGDIV/JOHNKING/reports2024/zc/zc248/ord1 186_zc248.docx
To: Honorable City Council
From: John Moreno, City Manager
By: John Carver, Planning Director
Johnnie Rightmer, Building and Safety
Manager
Date: May 28, 2024
SUBJECT: APPLICATIONS FOR PERMITS TO SELL FIREWORKS – 2024
BACKGROUND
The eight nonprofit organizations eligible to sell “safe and sane” fireworks within the City of Paramount submitted applications to operate fireworks stands prior to the April 1, 2024 deadline. The fireworks stand locations are the same as last year. As required, these locations are one-quarter mile distance from the next closest fireworks stand. Per the Paramount Municipal Code, the sale of fireworks will be restricted to the hours between noon and 10:00 p.m., June 28 through July 4, 2024.
Provided below is a list of the eight nonprofit groups and the proposed locations of their respective fireworks stands:
Organization/Primary Mailing Address Fireworks Stand Location Church of God of Prophecy
14743 Garfield Avenue
15101 Paramount Boulevard
Lindsay Lumber
Downey Avenue Foursquare Church (Lifegate)
13376 Downey Avenue
13376 Downey Avenue
Downey Avenue Foursquare
Church
Emmanuel Reformed Church
15941 Virginia Avenue
15717 Downey Avenue
Rite-Aid
First Assembly of God
16215 Orizaba Avenue
7922 Rosecrans Avenue
S/W corner of
Rosecrans/Paramount
Knights of Columbus
15339 Paramount Boulevard
16229-16289 Paramount
Boulevard
Town Center West (Northgate)
Agenda Report May 28, 2024
APPLICATIONS FOR FIREWORKS PERMITS – 2024 Page 2
2 5
6 Conditions of Approval
Upon City Council approval, each of the organizations must comply with the following conditions to open and operate fireworks stands:
1. Obtain the necessary approval and permits for a temporary fireworks stand from the Building and Safety Division of the Planning Department.
2. Comply with all applicable sections of Chapter 8.12 (Fireworks) of the Paramount Municipal Code.
3. Comply with the provisions of the State Fireworks Law, Rules, and Regulations of the State Fire Marshal.
FISCAL IMPACT
Fiscal impact is minimal as fireworks sales and permitting is an annual service to the community. Partial cost recovery is obtained through the business license and permitting process.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity, and guidelines; and provide the framework for policy decisionmaking. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit.
RECOMMENDED ACTION
Approve the applications to sell fireworks submitted by the eight eligible community groups.
Lions Club
P.O. Box 110
Paramount Elks Club #1804
8108 Alondra Boulevard
Praise Chapel Paramount (Reach Church)
8043 Madison Street
14501-51 Lakewood Boulevard
Walmart
8066 Alondra Boulevard
Paramount Elks Club
13120 Downey Avenue
Super A Foods
To: Honorable City Council
From: John Moreno, City Manager
By: Margarita Matson, Public Safety Director
Date: May 28, 2024
SUBJECT: REVIEW OF CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT (KARAOKE) (PANATARATT KATE TIRATHANANON/CATE’S
CORNER) - 8400 ALONDRA BOULEVARD
BACKGROUND
This item is an annual review of a Live Entertainment Permit for Panataratt Kate Tirathananon/Cate’s Corner, located at 8400 Alondra Boulevard. Cate’s Corner is licensed by the California Department of Alcoholic Beverage Control (ABC) for “Type-41” sales, which allow for the sale of beer and wine for onsite consumption between the hours of 11:00 a.m. to 9:00 p.m., Tuesday through Sunday.
At its September 6, 2022 meeting, the City Council adopted Resolution No. 22:044 approving a City Council permit for live entertainment (karaoke) in the following format (Attachment A):
• Self-service and hosted karaoke shall be permitted inside the establishment on Saturdays from 4:00 p.m. to 9:00 p.m. and Mondays from 2:00 p.m. to 9:00 p.m.
At its April 25, 2023 meeting, the city council was presented with a six-month review, with the stipulation that staff conduct an annual review of the Panataratt Kate Tirathananon/Cate’s Corner restaurant Live Entertainment Permit
DISCUSSION
Law Enforcement Activity
From March 8, 2023, to March 8, 2024, no law enforcement calls for service were generated for the location, and there were no reported incidents related to live entertainment. During the annual review period, Public Safety has not received any concerns or complaints regarding noise disturbances from the live entertainment performances.
Agenda Report May 28, 2024
REVIEW OF CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT Page 2 Analysis
On Thursday, May 9, 2024, Public Safety staff conducted a walk-through and verified that the establishment had an appropriate video surveillance system. Additionally, staff verified that the California Department of Alcoholic Beverage Control (ABC) Query System indicates that Panataratt Kate Tirathananon/Cate’s Corner restaurant has an active and valid license with no disciplinary actions found. The restaurant has complied with and adhered to all the conditions of approval.
FISCAL IMPACT
None.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit.
RECOMMENDED ACTION
Receive and file the report with the stipulation that staff conduct an annual review of Panataratt Kate Tirathananon/Cate’s Corner restaurant Live Entertainment Permit.
H:\COMDEV\GENERAL\WP\MOTIONS 2022\RESOLUTION NO PC 22000 8400 ALONDRA BLVD.DOC; 8/29/2022 5:00 PM SEPTEMBER 6, 2022
RESOLUTION NO. 22:044
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT
SETTING FORTH ITS FINDINGS OF FACT AND APPROVING A REQUEST BY PANATARATT KATE TIRATHANANON/CATE’S CORNER FOR A CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT (KARAOKE) AT 8400 ALONDRA BOULEVARD IN THE CITY OF PARAMOUNT”
MOTION IN ORDER:
READ BY TITLE ONLY AND ADOPT RESOLUTION NO. 22:044
MOTION:
MOVED BY: _________________
SECONDED BY: ______________
[ ] APPROVED
[ ] DENIED
ROLL CALL VOTE:
AYES: __________________
NOES: __________________
ABSENT: ________________
ABSTAIN:________________
To: Honorable City Council
From: John Moreno, City Manager
By: John Carver, Planning Director
Ivan Reyes, Associate Planner
Date: September 6, 2022
Subject: RESOLUTION NO. 22:044
CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT (KARAOKE)
(PANATARATT KATE TIRATHANANON/CATE’S CORNER)
BACKGROUND
This application is a request by Panataratt Kate Tirathananon/Cate’s Corner for a City Council Permit for live entertainment (karaoke) at 8400 Alondra Boulevard in the C-3 (General Commercial) zone. The property is located in the Plaza Gamino development at the southeast corner of Alondra Boulevard and Indiana Avenue. The one-acre site is developed with a 12,880 square foot multi-tenant building facing Alondra Boulevard.
The applicant originally began operating the business as Kate’s Ice Cream in 2018. In December 2021, the Planning Commission approved Conditional Use Permit No. 911 (see Attachment A) to operate a restaurant with beer and wine for onsite consumption. At that time, the business rebranded as Cate’s Corner, a sit-down restaurant specializing in burgers, sandwiches, and desserts from Thailand. The business is licensed by the California Department of Alcoholic Beverage Control (ABC) for “Type 41” sales of beer and wine for onsite consumption.
Chapter 5.28 of the Paramount Municipal Code states that a City Council Permit is required for live performances. With karaoke gaining local popularity in the 1990s, the City Council began requiring an approved City Council Permit for a business to feature karaoke as a form of live entertainment. The City Council may grant or deny a request for a City Council Permit based on the impact that the proposed use will have on the public health, safety, or welfare. The City Council may also impose conditions upon the granting of a City Council Permit to ensure that the use is not in conflict with surrounding land uses.
Request
The applicant is requesting a City Council Permit to allow karaoke on Saturdays from 4:00 p.m. to 9:00 p.m. and Mondays from 2:00 p.m. to 9:00 p.m. Karaoke will not be provided on the other days of the week. Karaoke offerings will consist of self-service and hosted formats.
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 2
Other Paramount establishments with active karaoke entertainment as approved by the City Council are summarized in the chart below:
BUSINESS ADDRESS DAYS/HOURS DATE APPROVED
Blvd Cocktails 8400 Alondra Blvd. Fridays and Sundays,
7:00 p.m. to 2:00 a.m. 7/7/2015
Casa Adelita
Restaurant 8063 Alondra Blvd. Thursday to Sunday, 7:00 p.m. to 10:00 p.m. 7/6/2010 Mariscos Mi Lindo
Sinaloa
7610 Rosecrans
Ave.
Saturdays and
Tuesdays, 6:00 p.m. to
11:00 p.m.
12/1/2015
Plans
Below is the existing site plan of the Plaza Gamino property at 8400 Alondra Boulevard.
The subject suite is shaded.
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 3
Below is the existing floor plan with the proposed karaoke area and equipment in the circled area.
Site Photos
Below are site photos from August 15, 2022. The first photo depicts the entrance to the tenant space, and the second photo depicts the inside of the tenant space.
Front of the tenant space Inside the tenant space
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 4
DISCUSSION
As required by the Municipal Code, the Public Safety Department and the Los Angeles County Sheriff’s Department have reviewed the application, and they have no objections to the issuance of this permit. During the course of the year while in business, Cate’s Corner has operated without serious incident. Security cameras, which have been installed, will be reviewed by the Public Safety Department. Other recommended conditions of approval will prevent music and singing from disturbing neighboring tenants or property owners. Loitering in the parking lot will be expressly prohibited, and all doors will be required to remain closed during the hours of operation except for the entering and exiting of customers and employees. A six-month City Council review is recommended as a condition to ensure the long-term compliance of the conditions of approval and safeguard the surrounding businesses and tenants.
FISCAL IMPACT
None.
VISION, MISSION, VALUES AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization; establish priorities, uniformity, and guidelines, and provide the framework for policy decisionmaking. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision of a city that is safe, healthy, and attractive. This item aligns with Strategic Outcome No. 1: Safe Community and No. 3: Economic Health.
RECOMMENDED ACTION
It is recommended that the City Council read by title only and adopt Resolution No. 22:044, approving a City Council Permit for karaoke at Cate’s Corner at 8400 Alondra Boulevard, subject to the following conditions:
1. This City Council Permit shall not be effective for any purposes until the business owners have filed at the office of the Planning Department their affidavit stating that they acknowledge and accept all conditions of approval for this permit. The affidavit shall be submitted by Friday, September 23, 2022.
2. One security guard in possession of a valid security guard registration from the California Bureau of Security and Investigative Services shall be onsite during karaoke hours of operation until the business is closed and until all patrons have vacated the premises. The guard shall be plainly identifiable by uniform and shall patrol the parking lot at least twice each hour as needed.
3. Self-service and hosted karaoke shall be permitted inside the establishment on Saturdays from 4:00 p.m. to 9:00 p.m. and Mondays from 2:00 p.m. to 9:00 p.m.
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 5
4. If the Planning Director or Public Safety Director determines that the operation of the business negatively impacts the public peace, health, safety, or general welfare, the City Council shall have the authority to review the City Council Permit, and may revoke, suspend, or modify the Permit in order to protect the public peace, health, safety, and general welfare.
5. No change or alteration to the approved entertainment format shall occur without prior written approval from the City of Paramount.
6. The maximum number of occupants shall be established by the Fire Marshall according to each specific entertainment use and floor plan. A maximum occupancy placard shall be posted in a conspicuous location on the premises.
This occupancy limitation shall not be violated.
7. It shall be unlawful for any person, who is intoxicated, or under the influence of any drug, to enter, be at, or remain upon the licensed premises as set forth in Section 25602(a) of the California Business and Professions Code.
8. The person designated to be responsible for the operation of the business shall not perform official police or investigative activities but shall immediately report every violation of law and every unusual occurrence to the Sheriff’s Station.
9. Karaoke provided shall not be audible beyond the area under control of the applicant. Karaoke shall not disturb the neighbors. No amplified sound equipment shall be installed on the exterior of the building.
10. During the hours of karaoke, the owner, the manager, or a designated responsible person 18 years of age or older shall be on the premises and shall be responsible for the operations during the hours of karaoke. This person shall possess on their person a valid driver license or identification card issued by the California Department of Motor Vehicles. This person shall also be able to communicate effectively with regulatory officials and have the ability to immediately contact the owner. The person will immediately introduce himself or herself to any regulatory officials.
11. The owners, managers, and persons designated to be responsible for the operation of the business shall cooperate fully with all City of Paramount officials, law enforcement personnel, and Code Enforcement Officers, and shall not obstruct or impede their entrance into the licensed premises while in the course of their official duties.
12. No alcohol shall be stored on the premises for specific customers.
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 6
13. No employee or agent shall be permitted to accept money or any other thing of value from a customer for the purpose of sitting or otherwise spending time with customers while on the premises, nor shall the licensee provide, permit, or make available persons who act as escorts, companions, or guests of and for the customers, either with or without compensation.
14. No employee or agent shall solicit or accept any alcoholic or non-alcoholic beverage from any customer while on the premises.
15. There shall be no selling of alcoholic beverages for future compensation.
16. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the licensee shall be immediately removed or painted over to match the predominant surface color.
17. No obstructions shall be attached, fastened, or connected to either the partitions or ceiling to separate the interior space of the licensed premises.
18. No self-service of alcoholic beverages shall be permitted.
19. No person under the age of 21 shall sell or deliver alcoholic beverages.
20. The entire premises are subject to inspection by the Sheriff’s Department and the City of Paramount Department of Public Safety at any time. Any locked or otherwise secured rooms shall be opened upon demand.
21. The approved floor plan shall not be changed without prior approval by the Planning Department and the Sheriff’s Department.
22. All required permits and licenses from all relevant regulating bodies shall be valid at all times. A copy of all licenses, permits, and conditions shall be posted and maintained in a place conspicuous and readable by all employees and customers of the business.
23. All doors shall be kept closed during the karaoke hours except for ingress and egress.
24. No outside loitering shall be allowed on the premises. A professionally fabricated sign indicating as such shall continue to be posted.
25. The business owner(s) and property owner(s) shall be responsible for maintaining free of litter the area adjacent to the premises over which they have control.
26. The applicant shall maintain all necessary approvals from the Department of Alcoholic Beverage Control (ABC).
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 7
27. A single jukebox may be maintained upon the premises; however, the music shall not be audible outside the premises.
28. In the ongoing business operations, the applicant shall comply with the Noise Ordinance (Chapter 9.12 of the Paramount Municipal Code) and make all feasible efforts to minimize noise.
29. Window sign area shall be limited to forty percent of each grouping of adjacent panes of glass.
30. Prior to beginning of operations of karaoke, the Public Safety Department shall review and approve the security camera locations and orientations, including comprehensive camera views of the establishment interior, exterior, and parking lot. The approved cameras or more technologically advanced versions of the approved cameras shall be maintained in perpetuity. In the event of an incident and upon request, the business owners shall allow unimpeded inspection of the security camera system to Sheriff’s Department and City of Paramount personnel.
31. All exterior signage requires review and approval by the Planning Department.
32. Human signs, sign walkers, and sign spinners are prohibited on the property and the public rights-of-way.
33. The outdoor trash receptacles shall be painted following separate Planning Department review and approval of the paint color.
34. Special events, including but not limited to events produced or administered by independent promoters, shall be reviewed in accordance with Special Event Permit regulations by the Planning Department. The applicant shall submit a Special Event Permit application at least two weeks in advance of a proposed event.
35. An active City of Paramount business license shall be maintained.
36. Revisions to an existing City Council Permit require separate review and approval by the City Council. City Council Permits expire upon sale or transfer of the business to a new business owner.
37. At all times while this City Council Permit for live entertainment is effective, the applicant shall comply with all requirements and conditions of approval of the California Department of Alcoholic Beverage Control (ABC) and Conditional Use Permit No. 911.
38. Failure to comply with any of the above conditions of approval and/or any applicable laws shall be cause for the modification, suspension, or revocation of this permit.
Agenda Report September 6, 2022
RESOLUTION NO. 22:044 Page 8
39. The City Council shall conduct a six-month review at the first City Council meeting six months after approved karaoke commence on the premises.
H:\ComDev\General\WP\IvanReyes\reports 2022\cc\live entertainment permit\Cates Corner\ccpermitrpt090622catescorner.docx
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 22:044
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT
SETTING FORTH ITS FINDINGS OF FACT AND APPROVING A
REQUEST BY PANATARATT KATE TIRATHANANON/CATE’S CORNER
FOR A CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT
(KARAOKE) AT 8400 ALONDRA BOULEVARD IN THE CITY OF
PARAMOUNT
WHEREAS, the City Council of the City of Paramount has considered a request by Panataratt Kate Tirathananon/Cate’s (“Applicant”) Corner for a City Council Permit for live entertainment (karaoke) at 8400 Alondra Boulevard in the City of Paramount as required under Section 5.28.020 of the Paramount Municipal Code (“Code”); and WHEREAS, Section 5.28.020(F) of the Code requires the City Council to make reasonable findings and determination that the Applicant and its employees having the management or supervision of Applicant's business are of good and moral character and reputation and that the proposed amusement or live entertainment operation under the permit will comport with the peace, health, safety, convenience, morals, and general welfare of the public; and
WHEREAS, Section 5.28.20(F) of the Code requires that any City Council Permit for live entertainment issued shall be for a term of one (1) year and subject to the requirements and conditions imposed by the City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:
SECTION 1. The above recitations are true and correct.
SECTION 2. The City Council finds that it has conducted all of the proceedings necessary, including hearings, and in compliance with State Law and the Code of the City of Paramount.
SECTION 3. The City Council reasonably finds that the evidence presented does justify the granting of this application to approve the City Council Permit for live entertainment, subject to those requirements and qualifications stated in Section 5.28.20 of the Paramount Municipal Code and the following conditions of approval:
1. This City Council Permit shall not be effective for any purposes until the business owners have filed at the office of the Planning Department their affidavit stating that they acknowledge and accept all conditions of approval for this permit. The affidavit shall be submitted by Friday, September 23, 2022.
RESOLUTION NO. 22:044
2. One security guard in possession of a valid security guard registration from the California Bureau of Security and Investigative Services shall be onsite during karaoke hours of operation until the business is closed and until all patrons have vacated the premises. The guard shall be plainly identifiable by uniform and shall patrol the parking lot at least twice each hour as needed.
3. Self-service and hosted karaoke shall be permitted inside the establishment on Saturdays from 4:00 p.m. to 9:00 p.m. and Mondays from 2:00 p.m. to 9:00 p.m.
4. If the Planning Director or Public Safety Director determines that the operation of the business negatively impacts the public peace, health, safety, or general welfare, the City Council shall have the authority to review the City Council Permit, and may revoke, suspend, or modify the Permit in order to protect the public peace, health, safety, and general welfare.
5. No change or alteration to the approved entertainment format shall occur without prior written approval from the City of Paramount.
6. The maximum number of occupants shall be established by the Fire Marshall according to each specific entertainment use and floor plan. A maximum occupancy placard shall be posted in a conspicuous location on the premises. This occupancy limitation shall not be violated.
7. It shall be unlawful for any person, who is intoxicated, or under the influence of any drug, to enter, be at, or remain upon the licensed premises as set forth in Section 25602(a) of the California Business and Professions Code.
8. The person designated to be responsible for the operation of the business shall not perform official police or investigative activities but shall immediately report every violation of law and every unusual occurrence to the Sheriff’s Station.
9. Karaoke provided shall not be audible beyond the area under control of the applicant. Karaoke shall not disturb the neighbors. No amplified sound equipment shall be installed on the exterior of the building.
10. During the hours of karaoke, the owner, the manager, or a designated responsible person 18 years of age or older shall be on the premises and shall be responsible for the operations during the hours of karaoke. This person shall possess on their person a valid driver license or identification card issued by the California Department of Motor Vehicles. This person shall also be able to communicate effectively with regulatory officials and have the ability to immediately contact the owner. The person will immediately introduce himself or herself to any regulatory officials.
RESOLUTION NO. 22:044
11. The owners, managers, and persons designated to be responsible for the operation of the business shall cooperate fully with all City of Paramount officials, law enforcement personnel, and Code Enforcement Officers, and shall not obstruct or impede their entrance into the licensed premises while in the course of their official duties.
12. No alcohol shall be stored on the premises for specific customers.
13. No employee or agent shall be permitted to accept money or any other thing of value from a customer for the purpose of sitting or otherwise spending time with customers while on the premises, nor shall the licensee provide, permit, or make available persons who act as escorts, companions, or guests of and for the customers, either with or without compensation.
14. No employee or agent shall solicit or accept any alcoholic or non-alcoholic beverage from any customer while on the premises.
15. There shall be no selling of alcoholic beverages for future compensation.
16. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the licensee shall be immediately removed or painted over to match the predominant surface color.
17. No obstructions shall be attached, fastened, or connected to either the partitions or ceiling to separate the interior space of the licensed premises.
18. No self-service of alcoholic beverages shall be permitted.
19. No person under the age of 21 shall sell or deliver alcoholic beverages.
20. The entire premises are subject to inspection by the Sheriff’s Department and the City of Paramount Department of Public Safety at any time. Any locked or otherwise secured rooms shall be opened upon demand.
21. The approved floor plan shall not be changed without prior approval by the Planning Department and the Sheriff’s Department.
22. All required permits and licenses from all relevant regulating bodies shall be valid at all times. A copy of all licenses, permits, and conditions shall be posted and maintained in a place conspicuous and readable by all employees and customers of the business.
23. All doors shall be kept closed during the karaoke hours except for ingress and egress.
24. No outside loitering shall be allowed on the premises. A professionally fabricated sign indicating as such shall continue to be posted.
RESOLUTION NO. 22:044
25. The business owner(s) and property owner(s) shall be responsible for maintaining free of litter the area adjacent to the premises over which they have control.
26. The applicant shall maintain all necessary approvals from the Department of Alcoholic Beverage Control (ABC).
27. A single jukebox may be maintained upon the premises; however, the music shall not be audible outside the premises.
28. In the ongoing business operations, the applicant shall comply with the Noise Ordinance (Chapter 9.12 of the Paramount Municipal Code) and make all feasible efforts to minimize noise.
29. Window sign area shall be limited to forty percent of each grouping of adjacent panes of glass.
30. Prior to beginning of operations of karaoke, the Public Safety Department shall review and approve the security camera locations and orientations, including comprehensive camera views of the establishment interior, exterior, and parking lot. The approved cameras or more technologically advanced versions of the approved cameras shall be maintained in perpetuity. In the event of an incident and upon request, the business owners shall allow unimpeded inspection of the security camera system to Sheriff’s Department and City of Paramount personnel.
31. All exterior signage requires review and approval by the Planning Department.
32. Human signs, sign walkers, and sign spinners are prohibited on the property and the public rights-of-way.
33. The outdoor trash receptacles shall be painted following separate Planning Department review and approval of the paint color.
34. Special events, including but not limited to events produced or administered by independent promoters, shall be reviewed in accordance with Special Event Permit regulations by the Planning Department. The applicant shall submit a Special Event Permit application at least two weeks in advance of a proposed event.
35. An active City of Paramount business license shall be maintained at all times.
36. Revisions to an existing City Council Permit require separate review and approval by the City Council. City Council Permits expire upon sale or transfer of the business to a new business owner.
RESOLUTION NO. 22:044
37. At all times while this City Council Permit for live entertainment is effective, the applicant shall comply with all requirements and conditions of approval of the California Department of Alcoholic Beverage Control (ABC) and Conditional Use Permit No. 911.
38. Failure to comply with any of the above conditions of approval and/or any applicable laws shall be cause for the modification, suspension, or revocation of this permit.
39. The City Council shall conduct a six-month review at the first City Council meeting six months after approved karaoke commence on the premises.
SECTION 4. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 6th day of September 2022.
Vilma Cuellar Stallings, Mayor
ATTEST:
Heidi Luce, City Clerk
h:\comdev\general\wp\ivanreyes\reports 2022\cc\live entertainment permit\cates corner\ccpermitres090622catescorner.docx
ATTACHMENT A
To: Honorable Planning Commission
From: John Carver, Planning Director
By: Ivan Reyes, Associate Planner
Date: December 16, 2021
Subject: CONDITIONAL USE PERMIT NO. 911
PANATARATT TIRATHANANON KATE/CATE’S CORNER
BACKGROUND
This application is a request by Panataratt Tirathananon Kate/Cate’s Corner for a Conditional Use Permit (CUP) to operate a restaurant with beer and wine for onsite consumption at 8400 Alondra Boulevard in the C-3 (General Commercial) zone. The property is located in the Plaza Gamino development at the southeast corner of Alondra Boulevard and Indiana Avenue. The one-acre site is developed with a 12,880 square foot multi-tenant building facing Alondra Boulevard.
DESCRIPTION
Kate’s Ice Cream has been operating since 2018 serving pastries, ice cream, and similar desserts. The existing business is now rebranding to Cate’s Corner as a sitdown restaurant specializing in burgers, sandwiches, and desserts from Thailand. The business operations are Tuesday through Sunday between the hours of 11:00 a.m. to 9:00 p.m. The restaurant will have four employees and 27 indoor customer seats. As part of this application, the applicant will be required to stop the sale of alcohol at 9:00 p.m. The existing restaurant located in the Plaza Gamino site provides 51 parking places. The applicant noted karaoke as a possible use during restaurant hours. As karaoke is considered live entertainment, an approved City Council Permit is required before karaoke can be permitted. During staff’s inspection of the premise, karaoke equipment was observed. The applicant must remove all karaoke and other amplification equipment before alcoholic beverage sales can be authorized. Upon City Council approval of live entertainment, the equipment can be restored.
ANALYSIS
The Los Angeles County Sheriff’s Department and Paramount Public Safety Department have reviewed the request to allow the sale of beer and wine for onsite consumption and found no concerns. The restaurant is surrounded by a variety of commercial uses and is facing a major boulevard, which is an appropriate location for restaurants serving alcohol. Onsite alcohol consumption is typically allowed in restaurants to enhance the food menu. As such and as part of the conditions, alcohol Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 2
will be consumed only with meals and will constitute less than 50 percent of the total receipts. Furthermore, the applicant is required to submit a security plan to the Public Safety Department for approval and is required to ensure that the security system remains operational in the future. The business has demonstrated a record of positive operations.
ABC REVIEW
The California Department of Alcoholic Beverage Control (ABC) has general guidelines, based on population, which are used to determine the number of alcohol licenses that should be located within a given census tract. ABC allows up to six licenses for onsite consumption of alcohol in the census tract (5539.02) where the property is located, and there are nine active licenses. If the Planning Commission approves this application with a determination that the proposed use would serve a public convenience without having a negative impact on public health and safety, ABC will issue a license. As mentioned above, Cate’s Corner restaurant is located in the Central Business District, which is an appropriate location for restaurants that sell alcohol for onsite consumption.
Additionally, ABC views restaurants licensed for onsite consumption of alcohol favorably, since alcohol constitutes less than 50 percent of the business receipts and cannot be taken off-site. ABC has strict operating criteria for restaurants that sell beer and wine, effectively minimizing negative impacts. ABC also conducts random monitoring of restaurants to ensure that the guidelines are being properly observed.
ENVIRONMENTAL ASSESSMENT
This project is exempt from the provisions of the California Environmental Quality Act (CEQA) as a Section 15301, Class 1 Categorical Exemption – minor alteration not involving substantial expansion.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization; establish priorities, uniformity and guidelines; and provide the framework for policy decisionmaking. The Strategic Outcomes were implemented to provide a pathway to achieving the Vision of a city that is safe, healthy, and attractive. This item aligns with Strategic Outcomes No. 1: Safe Community and No. 3: Economic Health.
RECOMMENDED ACTION
It is recommended that the Planning Commission read by title only, waive further reading, and adopt Resolution No. PC 21:023, approving Conditional Use Permit No. 911, subject to the following conditions:
Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 3
1. Except as set forth in conditions, development shall take place substantially as shown on the approved site plan. Any material deviation must be approved by the Planning Department before construction.
2. This Conditional Use Permit shall not be effective for any purposes until the applicant has first filed at the office of the Planning Commission a sworn affidavit acknowledging and accepting all conditions of this Conditional Use Permit. The affidavit shall be submitted by Monday, January 3, 2022. Failure to provide the City of Paramount with the requisite affidavit within the stated here in above shall render the Conditional Use Permit void.
3. This approval is valid for a period of one year from the date of final determination. If the use approved by this action is not established within such a period of time, this approval shall terminate and shall be null and void.
4. It is hereby declared to be the intent, that if any provision of this permit is violated or held to be invalid, or if any law, statute, or ordinance is violated, this Permit shall be subject to the revocation process at which time, the Permit may become terminated and the privileges granted hereunder shall lapse.
5. It is further declared and made a condition of this Conditional Use Permit that if any condition hereof is violated or if any law, statute or ordinance is violated, the exception shall be suspended and the privileges granted hereunder shall lapse, provided that the applicant has been given written notice to cease such violation and has failed to do so within thirty (30) days of receipt of said notification.
6. The applicant understands that an Unclassified Use Permit, Conditional Use Permit, and/or Variance granted under the Zoning Ordinance, or any section thereof, is granted and accepted by all parties with the express understanding that the Planning Commission may hold a public hearing, notice of time and place of which shall be given to the applicant, if one or more of the following conditions exists:
a) That the approval was obtained by fraud;
b) That the need for which such approval was granted has ceased to exist or has been suspended for one year or more;
c) That the Unclassified Use Permit, Conditional Use Permit, and/or Variance is being, or recently has been, exercised contrary to the terms or conditions of such approval or in violation of any statute, provision of the Code, ordinance, law or regulation;
d) That the need for which the approval was granted was so exercised as to be detrimental to the public health or safety or so as to constitute a nuisance (Section 17.48.070, Paramount Municipal Code).
Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 4
If after such hearing, the Planning Commission finds that any grounds modification, suspension, or revocation exist, the Planning Commission may modify, revoke, suspend, or revoke such Unclassified Use Permit, Conditional Use Permit, and/or Variance.
7. All applicable development fees are due prior to the issuance of building permits.
8. No exterior structural alteration or building color change, other than the colors or building treatments originally approved, shall be permitted without the prior approval of the Planning Department.
9. The installation of exterior window security bars, security door, and security gates is prohibited in accordance with Section 17.24.070(C) of the Paramount Municipal Code.
10. The applicant shall maintain sufficient quantities of matching exterior paint to remove graffiti, blemishes, and peeling paint.
11. Tarps are prohibited from use as carports, patio covers, shade covers, and covers for outdoor storage in all front and side setback areas, rear yard areas, and over driveways and in parking and circulation areas.
12. Future tenant improvements shall meet all requirements of the Building and Safety Department.
13. The applicant and all successor tenants shall obtain and maintain a current City of Paramount business license.
14. Signs, banners, and feather flags require separate review and approval by the Planning Department prior to fabrication and installation. Damage to the building exterior from wall signs that have been removed shall be repainted and repaired as needed.
15. Special events shall be reviewed in accordance with Special Event Permit regulations for possible approval by the Planning Department.
16. The outside premises shall be maintained in a clean manner at all times, and trash and debris shall be promptly removed from the yard areas, landscaped areas, and the surrounding property perimeter.
17. The hours of alcoholic beverage sales and consumption shall be limited to 11:00 a.m. to 9:00 p.m., Tuesday through Sunday.
18. The applicant shall obtain all necessary approvals and maintain a license in good standing from the Department of Alcoholic Beverage Control (ABC).
Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 5
19. The onsite sale of alcoholic beverages in connection with a public eating place, shall be restricted to the sale for consumption of alcohol beverages on the subject site only; and the use shall not sell alcoholic beverages for transport and/or for consumption outside or off the subject premise.
20. Food shall constitute the majority of the gross sales at the restaurant.
21. It shall be unlawful for any person, who is intoxicated, or under the influence of any drug, to enter, be at, or remain upon the licensed premises as set forth in Section 25602(a) of the Business and Professions Code.
22. The applicant shall not have, upon the subject premises, any alcoholic beverage(s) other than the alcoholic beverage(s) which the licensee is authorized to sell under the license, as set forth in Section 25607(a) of the California Business and Professions Code.
23. The applicant and/or any of his employees shall not sell, furnish, or give any alcoholic beverage to any person under 21 years of age, as set forth in Section 25658(a) of the California Business and Professions Code.
24. The person designated to be responsible for the operation of the business shall not perform official police or investigative activities but shall immediately report every violation of law and every unusual occurrence to the Los Angeles County Sheriff’s Department.
25. Solicitation of drinks is prohibited; that is, an employee of the licensed premises shall not solicit drinks from customers, as per Section 303 of the California Penal Code.
26. The approved floor plan shall not be changed without prior approval by the Planning Department and the Los Angeles County Sheriff’s Department.
27. All employees shall possess at the site a valid driver license or identification card issued by the California Department of Motor Vehicles. They shall present such identification upon demand by any regulatory official.
28. Smoking shall not be permitted within the premises in accordance with State of California regulations.
29. Hookah tobacco use is prohibited.
30. Applicant must remove all karaoke and other amplification equipment before alcoholic beverage sales can be authorized. Ongoing live entertainment, including but not limited to karaoke, musicians, and disc jockeys, require separate review and approval by the City Council.
Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 6
31. No pool or billiard tables shall be maintained on the premises.
32. A single jukebox may be maintained upon the premises; however, the music shall not be audible outside the premises.
33. All alcoholic beverages purchased on the subject site shall be consumed within the business establishment;
34. All stored alcoholic beverages shall be kept in a locked and secured area that is not accessible to patrons.
35. Security cameras shall be installed following City review and approval of a security camera plan. The approved cameras or more technologically advanced versions of the approved cameras shall be maintained in perpetuity.
Security camera recordings shall be maintained for at least 30 days and provided for law enforcement review upon request.
36. Seating is limited to 27 indoor customer seats.
37. A sufficient amount of lighting, as determined by the Planning Department and the Public Safety Department, shall illuminate the premises. New light fixtures as needed shall be reviewed and approved by the Planning Department for their decorative quality and location, and permits shall be obtained.
38. The applicant shall comply with all relevant labor laws and regulations of the Division of Labor Standards Enforcement of the California Department of Industrial Relations and the Division of Occupational Safety and Health (Cal/OSHA).
39. In the ongoing business operations, the applicant shall comply with all relevant federal, state, and local laws and regulations of all relevant government agencies, including but not limited to (1) the Los Angeles County Fire Department, (2) the Industrial Waste Unit of the Los Angeles County Department of Public Works (3) the South Coast Air Quality Management District, and (4) the California Department of Resources Recycling and Recovery (CalRecycle).
40. In the ongoing business operations, the applicant shall comply with the Noise Ordinance (Chapter 9.12 of the Paramount Municipal Code).
41. Window sign area shall be limited to forty percent of each grouping of adjacent panes of glass.
42. The applicant shall comply with Chapter 8.20 (Urban Stormwater Management) of the Paramount Municipal Code. The outside premises shall be maintained in a clean manner at all times, and trash and debris shall be promptly removed from the yard areas, landscaped areas, the parking lot, and the surrounding property Agenda Report December 16, 2021
CONDITIONAL USE PERMIT NO. 911 Page 7
perimeter. The parking lot shall be completely swept and maintained free of debris and litter on each day the restaurant is open for business to the public.
Areas adjacent to a parking lot, including, but not limited to, planters, loading and unloading areas, and surrounding public rights-of-way shall be maintained free of debris and litter by sweeping and other equally effective measures. Such debris and litter shall be collected and properly disposed of in compliance with all applicable local, State, and Federal regulations.
43. At least one bicycle rack shall be provided and maintained in good condition in perpetuity. The rack shall be inverted “U” racks or another rack type that allow for a bicycle frame and one wheel to be attached. The type, color, and precise location of the rack shall be reviewed and approved by the Planning Department prior to purchase or installation of the rack. The precise location shall be within the clear range of a security camera.
44. A two-inch layer of brown mulch shall be applied in the planters along Indiana Avenue.
45. The light pole along Indiana Avenue shall be painted and refurbished at the direction of the Planning Department.
46. The exterior wall on the west side of the suite shall be painted and refurbished as needed.
47. Graffiti on the window air conditioning equipment shall be removed.
48. An electronic copy (PDF format) of the plans shall be submitted to the Planning Department prior to permit issuance.
49. The applicant and the City of Paramount agree to the justification for a finding of Public Convenience or Necessity for a Type 41 Alcohol Beverage Control license to allow the sale of beer and wine for onsite consumption at the existing Cate’s Corner restaurant.
50. At the completion of the project, final approval from the Planning Division shall be obtained. All conditions of approval shall be met prior to final approval by the Planning Division.
H:\ComDev\General\WP\IvanReyes\reports 2021\cup\cup911\cup911rpt.docx To: Honorable City Council
From: John Moreno, City Manager
By: Yecenia Guillen, Assistant Community
Services Director
Date: May 28, 2024
SUBJECT: AGREEMENT WITH THINK TOGETHER FOR AFTER SCHOOL EDUCATION AND SAFETY SERVICES AT FOUR (4) SUCCESS
THROUGH EDUCATION AND RECREATION (STAR) MIDDLE SCHOOL
SITES
BACKGROUND
The STAR After School Program was established by the City of Paramount in 2007 with the goal to provide a fun, safe, and educational after school environment to support the academic and childcare needs of Paramount/PUSD families. Over the past 17 years, the City of Paramount has operated the after-school program in eleven (11) elementary school sites and four (4) middle school sites in the Paramount Unified School District (PUSD). The STAR Program is funded by the California Department of Education through After School Education and Safety (ASES) grant funds.
The City of Paramount has operated the STAR Program since 2007 through the Community Services Department and its full-time and part-time staff. The City is now transitioning from direct in-house operation of the STAR after school program to a qualified contracted operation of the program using a community-based organization (CBO). The contracted CBO will be required to coordinate with Paramount Unified School District’s after school Expanded Learning Opportunity Program (ELO-P).
The City’s move from direct operation to the contracted operation of the STAR after school program will occur in two phases. In school year 2024-25, the City will focus on transitioning our four middle school STAR sites to the contracted agency. In school year 2025-26, the City will transition the 11 elementary school sites to a contracted CBO.
While not required, the agency awarded the contract must prioritize the hiring and retention of current City of Paramount part-time employees from the applicable school sites. In addition to offering employment continuity, the City will make all reasonable efforts to provide these part-time employees with the opportunity to transfer to available positions within our existing Community Services divisions.
Agenda Report May 28, 2024
AGREEMENT WITH THINK TOGETHER FOR ASES PROGRAM Page 2
The STAR program currently operates at the following middle school sites serving students in grades 6-8: Alondra, Jackson, Paramount Park, and Zamboni. At the middle school level, the STAR program provides learning programs that focus on developing the academic, social, and physical needs and interest of students through hands-on engaging learning and experiences.
DISCUSSION
To identify qualified agencies and costs of service, a Request for Proposal (RFP) was published on February 8, 2024, and posted to the City website. Submittals were accepted up until 12:00 p.m. on March 14, 2024. The City received a total of eight (8) bids. Of the eight bids received, only four were qualified to provide the full spectrum of services and operation of the STAR after school sites. The qualified agencies that were reviewed are:
Elevo, Think Together, Woodcraft Rangers, and the Greater Long Beach YMCA. The identified cost of services ranged from $632,287.91 to $1,149,120 per year. The apparent low bid submitted by Think Together amounted to an annual cost of $632,287.91.
The Paramount Unified School District currently partners with Think Together to operate their after school Extended Learning Opportunities Program (ELO-P). Think Together is one of the largest after school providers in California and has extensive experience in operating after school programs at both the elementary and middle school level. PUSD staff have provided positive feedback regarding the performance of Think Together in operation of the District’s ELO-P at all elementary and middle school sites. Using the same agency will allow easier coordination with the two after school programs that are required to blend into one seamless program to support the after-school needs of the community.
If approved, Think Together would be contracted as the CBO to operate at the four (4) middle school STAR sites utilizing the City’s ASES grant funds and, as needed, supplemental ELO-P funds mutually agreed upon by the Paramount Unified School District and the City of Paramount. The terms of the agreement shall be for the full school year 2024-2025 (July 2024 to June 2025) with the additional one (1) year option to renew.
FISCAL IMPACT
The cost to operate the City of Paramount STAR after school program at four (4) Paramount Unified School District middle school sites will be funded by the City’s ASES allocation grant funds for the full 2024-2025 school year.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving Agenda Report May 28, 2024
AGREEMENT WITH THINK TOGETHER FOR ASES PROGRAM Page 3
the City’s Vision. This item aligns with Strategic Outcome No 2: Community Health - Provide diverse recreational and cultural amenities that support healthy lifestyles and a sense of community.
RECOMMENDED ACTION
Approve the agreement with Think Together in the amount of $632,287.91 for the operation of four STAR middle school sites and authorize the Mayor of her designee to execute the agreement.
SERVICE AGREEMENT BY AND BETWEEN THE
CITY OF PARAMOUNT
AND
THINK TOGETHER
FOR AFTER SCHOOL EDUCATION AND SAFETY (ASES) SERVICES
THIS AGREEMENT is made and entered into this 28th day of May 2024 by and between the CITY OF PARAMOUNT, hereinafter referred to as the “CITY,” and THINK TOGETHER, INC, hereinafter referred to as the “CONTRACTOR.”
I. RECITAL
A. PURPOSE. The purpose of this AGREEMENT is to allow the CITY to procure the services of a qualified contractor to provide After School Education and Safety (ASES) program services in connection with the CITY’S academic year after school program at four (4) middle school sites, and to have these contractor services based upon the terms and conditions hereinafter set forth.
II. TERMS AND CONDITIONS
A. MISSION. The CITY hereby retains the CONTRACTOR in the capacity as contractor and the CONTRACTOR hereby accepts such responsibility as described herein.
B. TERMS. This AGREEMENT shall commence as of 1st day of July, 2024 and shall remain in full force and effect for one (1) year with the ability to renew each year as mutually agreed or until such time either party gives written notice of termination in accordance with those provisions set forth in paragraph P. At the time of such extensions, this AGREEMENT shall be amended as to the changes, if any, in the terms, responsibilities and compensation as determined in writing between the CITY and CONTRACTOR.
C. SCOPE OF SERVICES. Under the supervision of the Director of Community Services or his designee, the CONTRACTOR shall provide all services as detailed in the CONTRACTOR’s proposal in response to the City of Paramount’s Request for Proposal – City of Paramount After School Education and Safety (ASES) Program attached as Exhibit “A”. In the event of any conflict between the provisions of this AGREEMENT and Exhibit “A,” the terms of this AGREEMENT shall prevail.
D. COMPENSATION. During the term of this AGREEMENT, the CITY shall compensate the CONTRACTOR for the services described as detailed in both Exhibit “A”.
Invoices for payment shall be submitted on a monthly basis and shall be approved by the Director of Community Services or designee for After School Education and Safety program services.
The CONTRACTOR shall submit an itemized invoice to the CITY according to work progress, setting forth the work performed and the rates charged in accordance with the contractor’s fee schedule.
City of Paramount
SERVICE AGREEMENT Page 2
All change orders, additions, deletions or adjustments to the CONTRACTOR’s specifications must be submitted in writing to the CITY for approval. The CITY is the sole authority regarding change orders and the CONTRACTOR shall not change, alter, or delete, in any manner, any portion of these specifications of the CITY.
E. EXPENSES. CONTRACTOR shall not be entitled to an expense account and shall not be required or permitted to incur expenses on behalf of the CITY in addition to the expenses required for completion of the scope of services described herein. The compensation described herein includes provision for all CONTRACTOR expenses required to complete the scope of services described herein.
F. INDEPENDENT CONTRACTOR.
(a) CONTRACTOR is and shall at all times remain as to the City a wholly independent CONTRACTOR. The personnel performing the services under this Agreement on behalf of CONTRACTOR shall at all times be under CONTRACTOR'S exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of CONTRACTOR or any of CONTRACTOR'S officers, employees, or agents, except as set forth in this Agreement. CONTRACTOR shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. CONTRACTOR shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner.
(b) Neither CONTRACTOR, nor any of CONTRACTOR’S officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. CONTRACTOR expressly waives any claim CONTRACTOR may have to any such rights. (c) City shall not be liable for compensation or indemnification to CONTRACTOR for injury or sickness arising out of performing services hereunder.
G. INDEMNIFICATION.
(a) All officers, agents, employees, sub-Contractors, their agents, officers and employees who are hired by or engaged by CONTRACTOR in the performance of this Agreement shall be deemed officers, agents and employees and subContractors of CONTRACTOR, and City shall not be liable or responsible to them for anything whatsoever.
(b) CONTRACTOR agrees to indemnify, hold harmless the City and all of its elected and appointed boards, commissions, officers employees and agents from all claims, damages, costs or expenses in law and in equity, including costs of suit and expenses for legal services, that may at any time arise or be claimed because of damage to property or injury to persons, including City, but only to City of Paramount
SERVICE AGREEMENT Page 3
the extent caused by the negligent act or omission on the part of CONTRACTOR or any of its agents, officers and employees and sub-Contractors in the performance of this Agreement.
(c) CONTRACTOR shall not be deemed to assume any liability for wrongful or negligent acts of City or its officers, agents, employees and sub-Contractors, and City shall defend and hold CONTRACTOR harmless against any such claims.
(d) CONTRACTOR agrees to defend, indemnify and hold harmless the City, its elected and appointed boards, commissions, officers, employees and agents from all claims, demands, liability fines and penalties made by CONTRACTOR’S employees from health, retirement or other benefits attributable to services performed pursuant to this Agreement.
H. SUCCESSOR AND ASSIGNMENT. The services as contained herein are to be rendered by the CONTRACTOR whose name is as appears first above written and said CONTRACTOR shall not assign nor transfer any interest in this AGREEMENT without the prior written consent of the CITY. Claims for money by CONTRACTOR from the CITY under this contract may be assigned to a bank, trust company, or financial institution without such approval. Written notice of any such assignment or transfer shall be furnished promptly to the CITY.
I. INSURANCE. Without limiting the CONTRACTOR’S indemnification of the CITY, the CONTRACTOR shall provide and maintain at this own expense during the term of this AGREEMENT for the following programs of insurance covering his operation hereunder. Each program of insurance, except professional liability insurance shall name the CITY as “Additionally Insured” and each policy shall contain a provision that such insurance will not be cancelled, nor any change whatsoever made in policies, except upon not less than thirty (30) days prior notice to the CITY, mailed by registered mail with postage prepaid. Such insurance shall be provided by the CONTRACTOR satisfactory to the CITY and evidence of such programs satisfactory to the CITY shall be delivered to the CITY on or before the effective date of this AGREEMENT.
General Liability. A program including, but not limited to, comprehensive general liability including automobile coverage with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall be primary to and not contributing with any other insurance maintained by the CITY. The issuer shall be an “admitted surety insurer” duly authorized to transact business under the laws of the State of California.
Acceptable insurance coverage shall be placed with carriers admitted to write insurance in California with a rating of A:VIII by A.M. Best & Co. Any deviation from this rule shall require specific approval in writing from the City.
Insurance shall name the City of Paramount, its officers, agents, and employees as additional insured by endorsement of the Contractor’s policy. A copy of the endorsement, showing policy limit, shall be provided to the City on or before signing this contract.
City of Paramount
SERVICE AGREEMENT Page 4
Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of this AGREEMENT upon which the CITY will immediately terminate this AGREEMENT.
Worker’s Compensation Coverage. State statutory limits, deductibles, self-insurance retention, or similar forms of coverage limitations or modifications must be declared to and approved by CITY.
Automobile Liability Insurance. In an amount not less than Five Hundred Thousand Dollars ($500,000) combined single limit per accident for bodily injury and property damage covering owned, non-owned and hired vehicles.
J. COMPLIANCE WITH LAWS. The parties agree to be bound by applicable federal, state and local laws, regulations and directives as they pertain to the performance of this AGREEMENT.
K. SEVERABILITY. In the event that any covenant, condition or other provisions herein contained is held to be invalid, void or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of the AGREEMENT and shall in no way affect, impair or invalidate any other covenant, condition or other provision contained herein. If such condition, covenant or other provision shall be deemed invalid due to its scope or breadth, such covenant, condition or other provision shall be deemed valid to the extent of the scope or breadth permitted by law.
L. INTERPRETATION. No provision of this AGREEMENT is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision, but this AGREEMENT is to be construed as if it were drafted by both parties hereto.
M. ENTIRE AGREEMENT. This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the retention of CONTRACTOR by the CITY and contains all the covenants and agreements between the parties with respect to such retention.
N. WAIVER. No breach of any provision hereof can be waived unless in writing.
Waiver of any one break of any provision shall not be deemed to be a waiver of any other breach of the same or any other provision hereof.
O. CONTRACT EVALUATION AND REVIEW. The ongoing assessment and monitoring of this AGREEMENT is the responsibility of the City Manager, or his designee.
P. TERMINATION OF AGREEMENT. This AGREEMENT may be terminated by either party by giving written notice at least thirty (30) days prior to the effective termination date in the written notice. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the CONTRACTOR under this AGREEMENT shall, at the option of the CITY, becomes its property and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. Notwithstanding the above, the CONTRACTOR shall not be relieved of City of Paramount
SERVICE AGREEMENT Page 5
liability to the CITY for damages sustained by the CITY by virtue of any breach of the AGREEMENT by the CONTRACTOR, and the CITY may withhold any payments to the CONTRACTOR for the purpose of set-off until such time as the exact amount of damages due the CITY from the CONTRACTOR is determined.
Q. CHANGES. The CITY or CONTRACTOR may request changes in the scope of the services of the CONTRACTOR to be performed hereunder. Such changes, including any increase or decrease in the amount of the CONTRACTOR’S compensation, which are mutually agreed upon by and between the CITY and the CONTRACTOR, shall be incorporated in written amendments to this AGREEMENT.
R. REPORTS AND INFORMATION. CONTRACTOR, at such times and in such forms as the CITY may require, shall furnish the CITY such periodic reports as it may request pertaining to work or services undertaken pursuant to this AGREEMENT, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this AGREEMENT.
S. RECORDS AND AUDITS. CONTRACTOR shall maintain accounts and records, including personnel, property and financial records, adequate to identify and account for all costs pertaining to this AGREEMENT, and such other records as may be deemed necessary by the CITY to assure proper accounting for all project funds, both federal and non-federal shares. These records will be made available for audit purposes to the CITY or any authorized representative, and will be retained for five (5) years after the expiration of this AGREEMENT unless permission to destroy them is granted by the CITY.
T. FINDINGS CONFIDENTIAL. All of the reports, information, data, etc., prepared or assembled by the CONTRACTOR under this AGREEMENT are confidential and the CONTRACTOR agrees that they shall not be made available to any individual or organization without the prior written approval of the CITY.
U. COPYRIGHT. No report, maps, or other documents produced in whole or in part under this AGREEMENT shall be the subject of an application for copyright by or on behalf of the CONTRACTOR.
V. PERSONNEL. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required in performing the services under this AGREEMENT. Such personnel shall not be employees of or have any contractual relationship with the CITY. All of the services required hereunder will be performed by CONTRACTOR or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under the state and local law to perform such services. None of the work or services subcontracted hereunder shall be specific by written contract or agreement and shall be subject to each provision of this AGREEMENT.
III. EQUAL EMPLOYMENT OPPORTUNITY
During the performance of this AGREEMENT, the CONTRACTOR agrees as follows:
City of Paramount
SERVICE AGREEMENT Page 6
A. EQUAL OPPORTUNITY.
(a) The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, creed, sex, color, or national origin. The CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, sex, color, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this non-discrimination clause.
(b) The CONTRACTOR will, in all solicitation or advertisements for employees placed by or on behalf of the CONTRACTOR, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, or national origin.
(c) The CONTRACTOR will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this AGREEMENT so that such provisions will be binding upon each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials.
(d) The CONTRACTOR will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(e) The CONTRACTOR will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the CITY and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (f) In the event of the CONTRACTOR’S non-compliance with the equal opportunity clauses of this AGREEMENT or with any of such rules, regulations, or orders, this AGREEMENT may be canceled, terminated, or suspended in whole or in part and the CONTRACTOR may be declared ineligible for further government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (g) The CONTRACTOR will include the provisions of paragraphs (1) through (6) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon City of Paramount
SERVICE AGREEMENT Page 7
each subcontractor or vendor. The CONTRACTOR will take such action with respect to any subcontract or purchase order as the CITY may direct as a means of enforcing such provisions, including sanctions for non-compliance; provided, however, that in the event the CONTRACTOR becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the CITY, the CONTRACTOR may request the United States to enter into such litigation to protect the interests of the United States.
B. CIVIL RIGHTS ACT OF 1964. Title VI of the Civil Rights Act of 1964, provides that no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of or, be subjected to discrimination under any program or activity receiving Federal financial assistance.
C. AGE AND DISABILITY. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975, or with respect to an otherwise qualified handicapped individual, as provided in Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, shall apply to this AGREEMENT.
IV. CONFLICT OF INTEREST
During the performance of this AGREEMENT, the CONTRACTOR agrees as follows:
A. INTEREST OF MEMBERS OF THE CITY. No member of the governing body of the CITY and no other employee, or agent of the CITY who exercises any functions of responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this AGREEMENT.
B. INTEREST OF CONTRACTOR. CONTRACTOR represents, warrants and agrees that he does not presently have, nor will he acquire during the term of this AGREEMENT, any interest, direct or indirect, by contract, employment or otherwise, or as a partner, joint venture or shareholder (other than as a shareholder holding a one-percent (1%) or less interest in publicly-traded companies) or affiliate with any business or business entity that has entered into any contract, subcontract, or arrangement with the CITY.
C. INTEREST OF OTHER LOCAL PUBLIC OFFICIALS. No member of the governing body of the locality and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this AGREEMENT; and the CONTRACTOR shall take appropriate steps to assure compliance.
V. NOTICES
Notices herein shall be presented in person or by certified or registered U.S. Mail, as follows:
City of Paramount
SERVICE AGREEMENT Page 8
To the CONTRACTOR: THINK TOGETHER, INC.
Founder & Chief Executive Officer
Randy Barth
2101 E. Forth Suite 200B
Santa Ana, CA 92705
To the CITY: City of Paramount
Director of Community Services
David Johnson
16400 Colorado Avenue
Paramount, CA 90723
IN WITNESS HEREOF, the CITY and CONTRACTOR have executed this AGREEMENT as of the date first herein above set forth.
CITY OF PARAMOUNT THINK TOGETHER, INC.
By: By:
John Moreno, City Manager Randy Barth
Founder/CEO
ATTEST:
By:
Heidi Luce, City Clerk
APPROVED AS TO FORM:
By:
John E. Cavanaugh, City Attorney
City of Paramount
SERVICE AGREEMENT Page 9
Exhibit A
To: Honorable City Council
From: John Moreno, City Manager
By: Yecenia Guillen, Assistant Community
Services Director
Date: May 28, 2024
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH PARAMOUNT UNIFIED SCHOOL DISTRICT FOR ACADEMIC YEAR 2024-25 ELO-P AND ASES
FUNDED AFTER SCHOOL PROGRAMS
BACKGROUND
The Paramount Unified School District (PUSD) has initiated the State-funded Expanded Learning Opportunities Program (ELO-P) this school year in partnership with the existing Success Through Academics and Recreation (STAR) After School Program. ELO-P provides funding for after school and summer school enrichment programs for students in transitional kindergarten through sixth grade. This program provides expanding learning programs that focus on developing the academic, social, and physical needs and interest of students through hands-on engaging learning and experiences. The STAR After School Program provides similar after school programming from kindergarten through 8th grade using State After School Education & Safety (ASES) funds.
DISCUSSION
The City and PUSD have entered a Memorandum of Understanding during previous academic school years for the ELO-P and STAR after school programs. Although funded by separate grants, such an agreement has been proven beneficial to both parties involved and students they support. The attached MOU identifies the responsibilities of both the City of Paramount and the Paramount Unified School District. The MOU assists in coordinating ELO-P and STAR programs so that they can function as a cohesive program to serve the after-school needs of eligible students. The MOU will be effective July 1, 2024, through June 30, 2025. The MOU will be reviewed by the Paramount Unified School Board at their June 11, 2024, Board of Education meeting.
FISCAL IMPACT
There is no fiscal impact associated with the approval of the Memorandum of Understanding between the City of Paramount and the Paramount Unified School District.
Agenda Report May 28, 2024
MOU WITH PUSD AND CITY FOR ELO-P AND STAR Page 2
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 2: Community Health - Provide diverse recreational and cultural amenities that support healthy lifestyles and a sense of community; and 6: Efficient, Effective, and Fiscally Responsible - Deliver an efficient and effective City government in a fiscally responsible, transparent and collaborative manner.
RECOMMENDED ACTION
Approve the Memorandum of Understanding between the City of Paramount and the Paramount Unified School District that identifies responsibilities of both agencies in operating the ELO-P and STAR programs.
July
Paramount Unified School District
Memorandum of Understanding For
Academic Year 2024-25 ELO-P and ASES
Funded After School Programs
This Memorandum of Understanding is entered into between the Paramount Unified School District and the City of Paramount.
About the Paramount Unified School District
Paramount Unified School District's mission is to ensure that its graduates will be prepared for success in both college and career by possessing the knowledge, skills, and certifications necessary to be successful in any post secondary environment. In alignment with this, Paramount Unified School District will offer an Expanded Learning Opportunities Program (ELO-P) for students in TK-6 (priority) and grades 7 and 8 in collaboration with the City of Paramount After School Education & Safety (ASES) funded STAR Afterschool Program which is open to all TK-8 students.
Although funded by separate grants, ELO-P and STAR will operate as one cohesive program and be offered free of charge to all eligible students. Both the District and City agree that both the ELO-P and STAR programs be ultimately integrated into a single program operated by an agreed upon Community Based Organization (CBO).
This partnership aims to support the following purposes:
1. Exceptional academic support programs to serve diverse learners in their growth and achievement of grade-level standards and beyond
2. Enriching arts programs that offer students the opportunity to create, perform, present, produce, respond to, and connect with the different arts disciplines (dance, music, theater, visual arts, media arts)
3. Fitness and athletic programs focused on promoting healthy life choices and developing the physical skills to participate and excel in a variety of sports with an emphasis on fair play and good sportsmanship
4. STEM programs that will help students become creators and innovators who can think critically, collaborate, and communicate effectively to generate and advocate for solutions to real world problems
5. A caring and supportive environment where student leadership, voice, and choice are valued and nurtured.
Partnership and Program Requirements
Paramount Unified School District agrees to provide the following for the duration of the 2024-25 school year on an in-kind basis:
1. Clean and safe school space and classroom facilities for student use at ten elementary, four middle, and one K-8 school sites.
2. Funding for additional staff and materials should enrollment exceed the staffto-student ratio of 1:20 (1st through 8th grade) or 1:10 (TK/K). Both PUSD and the City of Paramount must be in agreement on the need to serve a higher number of students prior to additional staff being hired.
3. Funding to support the City-provided Community Benefit Organization (CBO) contracted to operate the STAR Afterschool program at 4 middle school sites upon mutual agreement of ELO-P funding needed to supplement ASES funding to support the CBO.
4. Food services that will provide daily meals for students in the STAR program.
5. Custodial services.
6. Ongoing communication, collaboration, and professional development for STAR program leaders.
The City of Paramount agrees to provide the following services:
1. Coordinate and manage the (STAR) Program for up to 100 students per day at each of ten elementary, four middle, and one K-8 school sites.
2. Provide staffing (as hiring capacity allows) and materials for 180 days of programming in accordance with the District's instructional calendar. Staffing must meet the ELO-P grant's staff-to-student ratio requirement of 1:20 (1st through 8th grade) or 1:10 (TK/K).
3. Provide a contracted CBO to operate at 4 middle school STAR sites utilizing ASES funds and mutually agreed upon ELO-P funds.
4. Provide regularly updated enrollment and attendance data.
5. Support teachers and staff of community-based organizations that are hired by the District to provide enrichment opportunities to students.
6. Follow guidelines, terms, and conditions of the After School Education and Safety (ASES) grant and submit all required reports to the CDE.
Modification and Termination Agreement
This Memorandum of Understanding shall be effective July 1, 2024 through June 30, 2025. Should this Memorandum of Understanding require modifications during this period, they shall be added with mutual agreement by both parties. Either party may cancel this agreement at any time.
John Moreno Joshua L. Lightle, Ed.D.
City Manager Superintendent
City of Paramount Paramount Unified School District
Date Date
To: Honorable City Council
From: John Moreno, City Manager
By: John Carver, Planning Director
Sol Bejarano, Management Analyst
Date: May 28, 2024
SUBJECT: APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT BY
AND BETWEEN THE CITY OF PARAMOUNT AND HABITAT FOR
HUMANITY OF GREATER LOS ANGELES FOR THE DEVELOPMENT OF
TWO AFFORDABLE HOMES AT 16305 HUNSAKER AVENUE
BACKGROUND
This item is a request to approve a Disposition and Development Agreement (DDA) by and between the City and Habitat for Humanity of Greater Los Angeles, a California nonprofit benefit corporation, to develop the property at 16305 Hunsaker Avenue.
In 2019, the City acquired the 7,840 square foot property at 16305 Hunsaker Avenue with the Low-to-Moderate Income Housing Fund to redevelop the property with low-density affordable housing of high quality.
On November 14, 2023, the City Council adopted Ordinance No. 1176, approving Zone Change No. 246. This approval changed the official Zoning Map from R-2 (Medium Density Residential) to PD-PS (Planned Development with Performance Standards)/Single-Family Residential for the property at 16305 Hunsaker Avenue.
On December 12, 2023, Council approved the award of contract for demolition services to demolish two blighted structures on site, and the demolition was completed in February 2024.
Site Photos
As evidenced by the following site photos, the property has been in an extremely dilapidated condition for several years and has had a long history of numerous code violations over the years.
Below is a photo looking west at the front of the subject property, one photo looking south at the rear of the property, and a picture taken during the demolition process along with a picture of the property once the demolition was completed.
Agenda Report May 28, 2024
RESOLUTION NO. 24:015 Page 2
DISCUSSION
Staff are proposing to partner with Habitat for Humanity of Greater Los Angeles to develop the property with housing. As a California nonprofit organization, Habitat for Humanity works with families, local communities, volunteers, and partners from around the world so more people can live in affordable and safe homes.
The site is currently vacant and undeveloped. The development proposed at the site calls for the construction of two single-family homes on individual parcels, with both homes designated as affordable units.
Disposition of the Property is exempt from the standard Surplus Land Act (“SLA”) process pursuant to Government Code Sections 54221(f)(1)(B) and 54222.3. A public notice declaring 16305 Hunsaker Avenue as “exempt” from the Surplus Land Act was originally published in the local newspaper on April 18, 2024, allowing for more than the required 30-day public commenting period. Following comments from the Department of Housing and Community Development (HCD), the notice (Attachment A) was re-noticed and posted on the City’s website and emailed to all entities identified in subdivision (a) of Section 54222 of the Government Code on April 26, 2024.
The development of single-family homes on the property will be consistent with the goals, policies, objectives, standards, and guidelines set forth in the City’s adopted General Plan. The City’s contribution to the project will be through conveyance of the property to the developer. The site will be conveyed to Habitat for Humanity and developed with two single-family homes on individual parcels.
Agenda Report May 28, 2024
RESOLUTION NO. 24:015 Page 3
Doing so will allow for an affordable unit to benefit two qualifying households. Both lots will be accessed from the public street and have an easement for a shared driveway approach and driveway leading to each unit’s two-car garage.
At its June 5, 2024 meeting, the Planning Commission will consider a finding of conformity with the General Plan, pursuant to Government Code Section 6540.
Aerial Photo
Below is an aerial photograph indicating the location of the subject site.
Project
As seen in the following site plan, the project consists of subdividing the property into two parcels for the construction of two 2-story single-family homes that will share one common wall at the garages. Each home will have three bedrooms, two and one-half bathrooms, and a laundry closet. The street-facing property (Lot 1) will measure 3,360 square feet, and the home will contain 1,352 square feet of livable space with an attached 441 square foot two-car garage. The rear property (Lot 2) will measure 4,310 square feet, and the home will contain 1,368 square feet of livable space with an attached 441 square foot two-car garage. The parcels in this project will incorporate the appropriate setback requirements in proportion to the lot size, and the design will be reviewed administratively.
Agenda Report May 28, 2024
RESOLUTION NO. 24:015 Page 4
Site Plan
Below is the proposed site plan.
Analysis
As mentioned above, the proposed project involves constructing two 2-story single-family homes on individual lots that will be sold separately. The project will meet a market need for low-density residential development, will provide two affordable homes for low-to- Agenda Report May 28, 2024
RESOLUTION NO. 24:015 Page 5
moderate income households, and is not out of character with the General Plan. Finally, the project will integrate well with the surrounding neighborhood, which is comprised of single-family residential properties developed at varying densities.
Summary
The requested DDA will allow for the development and individual sale of two single-family residential parcels. The proposal will successfully integrate into the surrounding neighborhood. Approval of the proposed project will allow for a significant aesthetic improvement to the physical environment on Hunsaker Avenue. Additionally, the project will be similar to the Gold Key Development housing tract off of Atlantic Place, a highly successful residential project with smaller lots and building setbacks than a typical singlefamily residential development.
Environmental Assessment
In preparation for the new development, the City procured the services of a professional and technical engineering firm that conducted a Phase I Environmental Site Assessment (ESA) and in conclusion, no evidence of a Recognized Environmental Condition (REC), Controlled Recognized Environmental Condition (CREC) or Historical Recognized Environmental Condition (HREC) in connection with the Site was identified. The project is exempt from the provisions of the California Environmental Quality Act (CEQA) as a Class 32 Categorical Exemption – infill development projects in urban areas.
FISCAL IMPACT
None.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decisionmaking.
The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit and 3: Economic Health - Support a healthy, sustainable economy reflecting community values.
Agenda Report May 28, 2024
RESOLUTION NO. 24:015 Page 6
RECOMMENDED ACTION
Read by title only and adopt Resolution No. 24:015.
CITY OF PARAMOUNT
NOTICE OF EXEMPTION
SURPLUS LANDS ACT - 16305 HUNSAKER AVENUE
As required by Government Code Section 54221 (b)(4), the City of Paramount (“City”) is providing notification that the City intends to sell the exempt surplus land owned by the City located at 16305 Hunsaker Avenue, Paramount, CA 90723 (“Property”). The Property is 7,662 square feet (0.18 acre) in size and is a vacant land. Disposition of the Property is exempt from the standard Surplus Lands Act (“SLA”) process pursuant to Government Code Sections 54221(f)(1)(B) and 54222.3 because it is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. The subject property is not: (A) Within a coastal zone; (B) Adjacent to a historical unit of the State Parks System; (C) Listed on or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places; and not (D) Within the Lake Tahoe region as defined in Section 66905.
The City is required to publish this notice and provide a copy of it to the entities listed in Government Code Section 54222(a) at least thirty (30) days prior to the exemption taking effect. Therefore, you have thirty (30) days from the date of this notice to provide public comment on the Property.
In the event you or your agency are interested in submitting a public comment on the Property, you must notify the City in writing within thirty (30) days of the date of this notice.
NOTICE IS HEREBY GIVEN that the City has declared the property at 16305 Hunsaker Avenue “exempt” from the SLA and that a Development and Disposition Agreement by and between the City of Paramount and Habitat for Humanity of Greater Los Angeles will be presented to the City Council for approval on the following date:
TIME/PLACE Tuesday, May 28, 2024, at 5 p.m.
OF HEARING: Paramount City Hall - Council Chamber
16400 Colorado Avenue, Paramount CA 90723
Below is a summary of the details:
REQUEST: Declaring 16305 Hunsaker Avenue as “exempt” from the Surplus Lands Act.
LOCATION: Citywide.
PUBLIC The public commenting period will begin on April 18, 2024 – May 28, 2024 COMMENT:
ALL INTERESTED PERSONS are invited to participate in said Public Hearing to express their opinion about this matter.
Provide comments orally, in writing, or via email to [email protected]. Emails must be received by 4:45 p.m. on Tuesday, May 28, 2024. Additional options for public participation may be provided at the time the agenda is posted.
Any written correspondence regarding this matter should be delivered or mailed to the City Clerk, City Hall, 16400 Colorado Avenue, Paramount, California. For information, please contact Management Analyst Sol Bejarano at 562-220-2064 or [email protected].
Heidi Luce
City Clerk
DATE OF PUBLICATION: Thursday April 18, 2024
CITY OF PARAMOUNT
COUNTY OF LOS ANGELES, CALIFORNIA
RESOLUTION NO. 24:015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT, APPROVING THE DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF PARAMOUNT AND
HABITAT FOR HUMANITY OF GREATER LOS ANGELES FOR THE
DEVELOPMENT OF TWO AFFORDABLE HOMES AT 16305 HUNSAKER
AVENUE
WHEREAS, the Surplus Land Act (Government Code Section 54220 et seq.) requires that before a local agency takes action to dispose of (sell, lease, or transfer) land, it must declare the property to be either “surplus land” or “exempt surplus land;” and
WHEREAS, Government Section 54221 (B)(4) requires a local agency to identify the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect; and
WHEREAS, Disposition of the Property is exempt from the standard Surplus Land Act (“SLA”) process pursuant to Government Code Sections 54221(f)(1)(B) and 54222.3; and
WHEREAS, A public notice declaring 16305 Hunsaker Avenue as “exempt” from the Surplus Land Act was originally published in the local newspaper on April 18, 2024, allowing for more than the required 30-day public commenting period; and WHEREAS, following comments from the Department of Housing and Community Development (HCD), the notice was re-noticed and posted on the City’s website and emailed to all entities identified in subdivision (a) of Section 54222 of the Government Code on April 26, 2024.
WHEREAS, the DDA is contingent upon the Planning Commission making a finding of conformity with the General Plan at its June 5, 2024, meeting as pursuant to Government Section 6540; and
WHEREAS, all requirements of notice have been complied with pursuant to Health and Safety Code Section 33431; and
WHEREAS, the Disposition and Development agreement was brought before the City Council of the City of Paramount, on May 28, 2024, allowing for the development of the property legally described in Exhibit A, for development of two affordable homes.
RESOLUTION NO. 24:015
WHEREAS, Section 400(e) of the Surplus Land Act Guidelines, issued by the California Department of Housing and Community Development (“HCD”), requires a local agency that determines property is exempt from the Surplus Land Act to provide a copy of the resolution and written findings declaring the property exempt surplus land to HCD at least 30 days prior to disposition.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES RESOLVE, DETERMINE, AND ADJUDGE AS FOLLOWS:
SECTION 1: The above recitations are true and correct.
SECTION 2: The City Council hereby approves the disposition and development of property legally described in Exhibit A, attached hereto and made a part hereof.
SECTION 3: The City Council hereby approves the Disposition and Development Agreement attached hereto and made a part hereof in Exhibit B.
SECTION 4: The City Council hereby directs the City Manager to transmit the findings contained herein to the Department of Housing and Community Development.
SECTION 5: This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 28th day of May 2024.
______________________________
Annette C. Delgadillo, Mayor
ATTEST:
____________________________
Heidi Luce, City Clerk
RESOLUTION NO. 24:015
Legal Description
Exhibit “A”
Real property in the City of Paramount, County of Los Angeles, State of California, described as follows:
PARCEL 1: (APN: 7101-011-900)
THE SOUTHWESTERLY 65 FEET, MEASURED ON THE SOUTHEAST LINE OF LOT 55, DIVISION 116, REGION 54 OF OFFICIAL MAPS, IN THE CITY OF PARAMOUNT, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP IN BOOK 4, PAGES 5 AND 6 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
(END OF LEGAL DESCRIPTION)
C:\Users\sbejarano\OneDrive\Desktop\resHunsakerDDA.doc
RESOLUTION NO. 24:015
Disposition and Development
Agreement
Exhibit “B”
DISPOSITION AND DEVELOPMENT AGREEMENT
by and between the
CITY OF PARAMOUNT
and
HABITAT FOR HUMANITY OF
GREATER LOS ANGELES
Project:
16305 Hunsaker Avenue, Paramount, CA 90723
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Table of Contents
ARTICLE I SUBJECT OF AGREEMENT...............................................................................2 Section 1.0 Definitions............................................................................................................2 Section 1.1 Purpose of Agreement.........................................................................................7 Section 1.2 The Site ...............................................................................................................7 Section 1.3 Parties to the Agreement .....................................................................................7 A. The City ........................................................................................................7 B. The Developer ..............................................................................................7 Section 1.4 Prohibition Against Change in Ownership, Management and Control of Developer ............................................................................................................7 Section 1.5 Contract Documents ............................................................................................8 ARTICLE II THE SITE.............................................................................................................8 Section 2.1 Conveyance of the Site........................................................................................8 Section 2.2 Condition of Property ...........................................................................................8 Section 2.3 Right to Inspect....................................................................................................9 Section 2.4 Escrow...............................................................................................................10 Section 2.5 Conveyance of Title ...........................................................................................10 ARTICLE III DEVELOPMENT OF THE SITE.........................................................................10 Section 3.1 Development of the Site.....................................................................................10 Section 3.2 Basic Concept Drawings....................................................................................11 Section 3.3 Construction Drawings.......................................................................................11 Section 3.4 City Approval of Documents...............................................................................11 Section 3.5 Cost of Construction and Sale of the Property ...................................................11 Section 3.6 Construction Schedule.......................................................................................12 Section 3.7 Insurance Requirements....................................................................................12 Section 3.8 Developer’s Liability ...........................................................................................14 Section 3.9 Indemnity ...........................................................................................................14 Section 3.10 City and Other Governmental Agency Licenses and Permits .............................15 Section 3.11 Rights of Access ................................................................................................16 Section 3.12 Local, State and Federal Laws...........................................................................16 Section 3.13 Nondiscrimination During Construction ..............................................................16 Section 3.14 Taxes, Assessments, Encumbrances, and liens ...............................................16 Section 3.15 Prohibition Against Transfer of the Site, the Buildings oof Structures Therein and Assignment of Agreement..................................................................................16 Section 3.16 Deed of Trust Financing: Rights of Holders........................................................16 ii
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A. No Encumbrances Except Deeds of Trust for Development ........................16 B. Holder Not Obligated to Construct Improvements .......................................17 C. Notice of Default to Deed of Trust Holders: Right to Cure ...........................17 D. Failure of Holder to Complete Improvements ...............................................17 E. Right of the City to Cure Deed of Trust Default ...........................................18 F. Right of the City to Satisfy Other Liens on the Site After Title Passes .........18 Section 3.17 Certificate of Completion....................................................................................18 ARTICLE IV USE OF THE SITE ............................................................................................19 Section 4.1 Uses ..................................................................................................................19 A. Obligation to Refrain From Discriminating ....................................................19 B. Form of Nondiscrimination and Nonsegregation Clauses ...........................19 C. Effect and Duration of Covenants ..............................................................20 Section 4.2 Affordable Housing ............................................................................................21 A. Affordable Housing.......................................................................................21 B. Qualified Buyer Selection.............................................................................21 C. Income of Qualified Buyer of the Affordable Unit: Affordable Housing Cost..21 D. Sale to City of Paramount Residents............................................................22 E. For Sale Housing .........................................................................................22 ARTICLE V GENERAL PROVISIONS...................................................................................24 Section 5.1 Notices, Demands and Communications Between the Parties...........................24 Section 5.2 Conflicts of Interest ............................................................................................25 Section 5.3 Enforced Delay: Extension of Times of Performance .........................................25 Section 5.4 Non-liability of Officials and Employees of the City.............................................25 Section 5.5 Notices, Demands and Communications Between the Parties...........................25 ARTICLE VI DEFAULTS AND REMEDIES............................................................................25 Section 6.1 Defaults - General..............................................................................................25 Section 6.2 Legal Actions .....................................................................................................26 A. Institution of Legal Actions ...........................................................................26 B. Applicable Law.............................................................................................26 C. Acceptance of Service of Process................................................................26 Section 6.3 Rights and Remedies are Cumulative................................................................26 Section 6.4 Inaction Not a Waiver of Default.........................................................................26 Section 6.5 Damages ...........................................................................................................26 Section 6.6 Specific Performance.........................................................................................27 Section 6.7 Remedies and Rights Prior to the City Conveyance of the Site..........................27 A. Termination by the Developer ......................................................................27 iii
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B. Termination by the City ................................................................................28 C. Procedure for Termination............................................................................28 D. Consequences of Termination......................................................................28 Section 6.8 Reentry and Revesting of Title in the City After City Conveyance ......................29 Section 6.9 Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction................................................................................30 ARTICLE VII COVENANTS ....................................................................................................30 Section 7.1 Maintenance Covenants ....................................................................................30 ARTICLE VIII SPECIAL PROVISIONS.....................................................................................31 Section 8.1 Amendments to this Agreement.........................................................................31 Section 8.2 Entire Agreement, Waiver and General..............................................................31 Section 8.3 Effective Date of Agreement ..............................................................................31 1 DDA Hunsaker Property FINAL
EXHIBITS
EXHIBIT A Site Legal Description
EXHIBIT B Site Map
EXHIBIT C Schedule of Performance
EXHIBIT D Escrow Instructions
EXHIBIT E Budget and Scope of Development
EXHIBIT F Grant Deed
EXHIBIT G Declaration
EXHIBIT H Certificate of Completion
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DISPOSITION AND DEVELOPMENT AGREEMENT
This Agreement is entered by and between the City of Paramount, a California general municipal corporation (“City”) and Habitat for Humanity of Greater Los Angeles, a California nonprofit benefit corporation (“Developer”) as of May 28, 2024. In consideration of the mutual covenants and agreements contained herein, the City and Developer agree as follows:
ARTICLE I
SUBJECT OF AGREEMENT
Section 1.0. Definitions
As used in this Agreement, the following capitalized terms shall have the following meanings:
“Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled byor under common control with a partywhich,if the party is a partnership or limited liability company, shall include each of the constituent members or general partners, respectively, thereof. The term “control” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to the exercise, directly or indirectly, of not less than 50% of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person. “AffordabilityPeriod” means the period commencing upon the closingof escrow for the sale of the Affordable Unit to a Qualified Buyer and terminating no earlier than the forty fifth (45th) anniversary of the sale of the Affordable Unit to a Qualified Buyer. “Affordable Resale Price” means the sales price to be used when a Qualified Buyer sells an Affordable Unit to an Eligible Purchaser. “AffordableSalesPrice”means the salesprice of theAffordableUnit to a Qualified Buyer in an amount not to exceed the fair market value of the Unit. The sales price shall be paid by the down payment plus one or more mortgages secured by a deed of trust, provided that debt service on the mortgages plus property taxes and utilities shall not exceed an “affordable housing cost” for the appropriate income level pursuant to Health and Safety code Section 50052.5(b). “Affordable Unit Closing” means the closing of an escrow conveying title to the Affordable Unit to a Qualified Buyer at an Affordable Sales Price. “Affordable Unit” means the newly constructed residential unit in theProject which shall be available to, occupied by or held for sale exclusively to a Qualified Buyer at an Affordable Sales Price.
“Agreement” means this Disposition and Development Agreement, including all Exhibits, agreements entered into in the form of an Exhibit, and all other agreements entered into by and between the Parties in connection therewith, which are hereby incorporated herein, and includes all amendments and modifications thereto.
“Annual Financial Statements” means annual financial statements of Developer prepared in accordance with generally accepted accounting principles consistently 3 DDA Hunsaker Property FINAL
applied,as audited by a certified public accountant and certified by Developer’s President, Chief Financial Officer or Vice President, and including the opinion of the auditor, a balance sheet, income statement, statement of retained earnings, statement of cash flows, and footnotes.
“Attachments” means Attachments A through H to this Agreement, and any amendments or modifications thereto.
“Business Day(s)” means Monday through Friday, except for federal and state holidays.
“Certificate of Completion” means the document which evidences the Developer’s satisfactory completion of construction of the Project in accordance herewith, as reasonably determined by City, substantially in the form of Attachment H. “CEQA” means the California Environmental Quality Act, Public Resources Code Section 21000, et seq.
“Challenge” is defined in Section 6.7.
“Challenge Notice” is defined in Section 6.7.
“City Grant Deed” means a grant deed substantially in the form of Exhibit F conveying title to the Site from City to Developer.
“City Indemnitees” means the City, and its council members, officers, employees, representatives, consultants, contractors and agents. “City Manager” means the City Manager of the City or his/her designated representative.
“Closing” means the date upon which the City Grant Deed is recorded in the Official Records, all of the conditions precedent set forth in Section 2.5 hereof are satisfied and all additional documents received byEscrow tobe recorded in connection therewith are recorded in the Official Records.
“Conveyance” means the transfer of fee title to the Site to Developer via the City Grant Deed. The Conveyance shall occur upon Closing.
“County” means the County of Los Angeles, California.
“Declaration” means a Declaration of Conditions, Covenants and Restrictions (with Affordable Housing Covenants) substantially in the form of Exhibit G to be recorded against the Site at Closing.
“Developer” means Habitat for Humanity of Greater Los Angeles, a California nonprofit public benefit corporation, and any permitted successors and assigns. “Effective Date” means the date this Agreement is executed by City and Developer.
“EligiblePurchaser”means ahousehold purchasing anAffordableUnituponresale of the Affordable Unit by the Qualified Buyer or a subsequent Eligible Purchaser, which such household must (a) qualify as a Low Income Household or Moderate Income Household, as appropriate to the Affordable Unit, and (b) meet the other requirements set forth herein for buyers of an Affordable Unit, including, without limitation, the requirement that the buyer(s) agree to occupy 4 DDA Hunsaker Property FINAL
the Affordable Unit as their primary residence and restrict the sale of the Affordable Unit to Eligible Purchasers at an Affordable Resale Price for the remaining term of the Affordability Period. “Environmental Laws” means any and all present and future federal, state and local laws (whether under common law, statute, ordinance, rule, regulation or otherwise), court or administrative orders or decrees, requirements of permits issued with respect thereto, and other requirements of governmental authorities relating to the environmentorto anyHazardous Substance or Hazardous Substance Activity (including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. § 9601, et seq.), as heretofore or hereafter amended from time to time (“CERCLA”), and the applicable provisions of the Health and Safety Code and the Water Code, and any and all successor statutes and regulations, orders, decrees, guidelines, or pronouncements promulgated thereunder). “Governmental Regulations” means all local, state, and federal laws, ordinances rules, requirements, resolutions, policy statements and regulations (including, without limitation, those relating to land use, subdivision, zoning, environmental, labor relations, prevailing wage, notification of sale to employees, Hazardous Substance, occupational health and safety, water, earthquake hazard reduction and building and fire codes; and including all Environmental Laws) bearing on the demolition, alteration, replacement, repair, refurbishing, improvement, construction, maintenance, management, use, or operation of the Project. “Grant Deed” means a grant deed substantially in the form of Exhibit F hereto conveying marketable title to the Site to Developer.
“Habitat Subordinate Mortgage Assistance” means a subordinate mortgage loan secured by an Affordable Unit made by Habitat to a Qualified Buyer for the purchase of theAffordable Unit bearing a fixed interest rate and requiring no paymentsof principal or interest. The loan and any outstanding interest shall be assumable by an Eligible Purchaser. Unless assumed by an Eligible Purchaser, all outstanding principal and interest shall be due and payable upon the resale of the Affordable Unit. The loan shall be subject to such other terms and conditions as agreed to by the Parties.
“Hazardous Substance” means (i) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and liability Act, 42 U.S.C.
Section 9601, et seq.; the Resource Conservation and Recovery Act, 42. U.S.C. Section 6901 et seq.; (“RCRA”) the Toxic Substance Control Act, 15 U.S.C. Section 1251 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Sections 25100 et seq.; the California Hazardous Substance Account Act, Health and Safety Code Section 25330 et sew.; The California Safe Drinking Water and Toxic Health Environmental Act. Health and Safety Code Sections 25249.5 et seq.; California Health and Safety Code Sections 25280 et seq.; (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code Sections 25170.1 et seq.; California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Release Response Plans and Inventory); or the Porter-Cologne Water Quality Control Act, California Water Code Sections 13000 et seq., all as amended, (the above-cited California statutes are hereinafter collectively referred to as “the State Toxic Substance Law”) or any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating to , or imposing liability or standards of conduct concerning, any hazardous, toxic of dangerous waste or other material, as now or at any time hereafter in effect, (ii) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common 5 DDA Hunsaker Property FINAL
law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court, (iii) petroleum and its fractions or crude oil other than petroleum and petroleum products which are contained within regularly operated motor vehicles, and (iv) asbestos in any form.
“Hazardous Substance Activity” means any actual, proposed or threatened storage, holding, existence or suspected existence, release or suspected release, emission, discharge, generation, processing, abatement, removal, disposition, treatment, handling or transportation of any Hazardous Substance from, under, into, on, above, or across the Site or any other use of or operation on theSite that creates a risk of HazardousSubstance contamination of the Site.
“HCD” means the California Department of Housing and CommunityDevelopment or any successor entity.
“Household” means one or more persons occupying an Affordable Unit. “HUD” shall mean the United States Department of Housing and Urban Development.
“Improvements” shall mean and include any improvement of whatsoever character constructed on, around, under or over on the Site existing as of the date of Closing and any development, construction, demolition, remediation and grading done on the Site by Developer subsequent to Closing, as well as all buildings, structures, fixtures, foundations, excavation, parking, landscaping, underground installations, and other work, construction and improvement of whatsoever character undertaken or constructed on,around, underor overtheSitebyDeveloper. “Indemnified Parties” is defined in Section 2.2.
“Losses and Liabilities” means and includes all claims, causes of action, liabilities, losses, damages (including, without limitation, penalties, fines and monetary sanctions), injuries, expenses, charges, penalties or costs of whatsoever character, nature and kind, including reasonable attorney’s fees and costs incurred by the indemnified party with respect to counsel of its choice, whether to property or to person, whether by direct or derivative action, and whether known or unknown, suspected or unsuspected, latent or patent. “Low Income Household” means a Household whose gross annual income does not exceed the state income limits published by HCD for Los Angeles County for a “Low Income” household in compliance with Health and Safety Code Section 50079.5 and other applicable laws, as adjusted for actual household size. “Moderate Income Household” means a Household whose aggregate gross annual income does not exceed state income limits published by HCD for Los Angeles County for a “Moderate Income” household in compliance with Health and Safety Code Section 50093, as adjusted for actual household size.
“Official Records” means the official records of the Los Angeles CountyRecorder’s Office.
“Parties” means City and Developer; “Party” means City or Developer. “Permitted Exceptions” shall mean those encumbrances, liens, taxes, assessments, easements, rights of way, leases, covenants, agreements or other exceptions affecting title to the Site as of the date of recordation of the City Grant Deed which are not disapproved in writing by the Developer.
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“Permitted Mortgage” shall mean a conveyance of a security interest in the Site to secure a construction loan to finance the development of the Project, or any conveyance of a security interest in a Site to secure any refinancing to the extent it repays a Permitted Mortgage Loan, or the conveyance of title to the mortgagee or its assignee in connection with a foreclosure or a deed in lieu of foreclosure of such loan.
“Permitted Mortgage Loan” shall mean the obligations secured by a Permitted Mortgage.
“Permitted Transfer” shall mean assignment of all or any part of thisAgreement or any right therein, or the sale, agreement to sell, transfer, conveyance or assignment of the Site or any portion thereof or interest therein to any of the following:
a. The granting of easements, licenses or permits to facilitate the development of the Site; or
b. The encumbrance of the Site by a Permitted Mortgage; or c. The sale or lease to a buyer of anyAffordable Unit in accordancewith the terms of this Agreement.
“Project” means the acquisition of the Site by Developer, and improvement of the Site by constructing the Improvements such that upon completion, the Improvements will consist of (2) newly constructed single-family homes, and other improvements in accordance with this Agreement. Upon completion, at least one (1) single-family home in the Project shall provide housing to Qualified Buyers, and during the Affordability Period, the sale and occupancy of that Affordable Unit shall be restricted to Low Income Households and Moderate-Income Households.
“Qualified Buyer” means a Household (a) whose income does not exceed the income set forth herein for a LowIncome Household or Moderate Income Household, as designated herein; and (b) whose members meet the other requirements set forth herein for buyers of an Affordable Unit, including, without limitation, the requirement that the buyer(s) agree to occupy the Affordable Unit as their primary residence and restrict the sale of the Affordable Unit to Eligible Purchasers at an Affordable Resale Price for the Affordability Period. “Representatives” means the agents, employees, members, independent contractors, affiliates, principals, shareholders, officers, Executive Directors, council members, board members, committee members, and planning and other commissioners, partners, attorneys, accountants, representatives, and staff of the referenced entity and the predecessors, heirs, successors and assigns of all such persons.
“Schedule of Performance” means that certain Schedule of Performance attached hereto as Exhibit C, as may be amended from time to time. “Scope of Development” means that certain Scope of Development attached hereto as Exhibit E, as may be amended from time to time.
“Site” is defined in Section 1.1.
“Site Map” is defined in Section 1.1.
“Title Company” means any qualified title company approved in writing by the Parties.
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“Unit(s)” means one or both of the two (2) newly constructed adjoined single family residential units to be constructed on the Site by Developer in accordance herewith.
Section 1.1. Purpose of Agreement
The purpose of this agreement is to effectuate and provide for the development of certain property, hereafter described, located in the City of Paramount, County of Los Angeles, State of California. The real property to be developed pursuant to this Agreement (the “Site”) is described in the Legal Description (Exhibit A) and depicted on the “Site Map” (Exhibit B). This Agreement is entered into for the purpose of demolition of the Site containing two buildings, one measuring 1,342 square feet, and the second measuring 814 square feet, and to construct two (2) new units, one of which will be sold to a Low or Moderate Income Household as defined herein. The development of affordable housing on the Site pursuant to this Agreement is in the vital and best interest of the City, and will further public interest and the health, safety, and overall welfare of the City and its residents.
The City acquired the Site using the former Redevelopment Agency’s Low and Moderate Income Housing fund which can only be used for the provision of affordable housing.
Section 1.2. The Site
The Site consists of one (1) parcel of real property which is located within the City. The Site is described in the Legal Description (Exhibit A).
Section 1.3. Parties to the Agreement
A. The City.
The City is a general municipal corporation, exercising governmental functions and powers and organized and existing under the laws of the State of California. The principal office of the City is located at 16400 Colorado Avenue, Paramount, California 90723.
B. The Developer.
The Developer is Habitat for Humanity of Greater Los Angeles. a California nonprofit public benefit corporation. The principal office and mailing address of the Developer is 8739 Artesia Blvd, Bellflower, California 90706.
Section 1.4. Prohibition Against Change in Ownership, Management and Control of Developer
The qualification and identity of Developer is of particular concern to the City. It is because of its qualifications and identity that the City has entered into this Agreement with the Developer.
Therefore, no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under this Agreement except as expressly set forth herein.
The Developer shall not assign all or any of its rights or duties under this Agreement without the prior written approval of the City; provided however, the City shall not unreasonably withhold such approval.
All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Developer and the permitted successors in interest of the Developer. Whenever the term “Developer” is used herein, such term shall include any other lawfully approved successors in interest of Developer.
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Section 1.5. Contract Documents.
The Contract Documents which are made a part of this Agreement, by this reference, each of which is attached hereto and incorporated in full herein, are as follows:
Exhibit A Site Legal Description
Exhibit B Site Map
Exhibit C Schedule of Performance
Exhibit D Escrow Instructions
Exhibit E Budget and Scope of Development
Exhibit F Grant Deed
Exhibit G Declaration
Exhibit H Certificate of Completion
ARTICLE II
THE SITE
Section 2.1. Conveyance of the Site.
In accordance with and subject to all terms, covenants and conditions of the Agreement, the City agrees to transfer, and the Developer agrees to acquire and develop the Site.
Section 2.2. Condition of Property
Developer acknowledges that it is sophisticated and knowledgeable with regard to evaluating, buying, and selling real property in Southern California; and that it has had sufficient opportunity to enter upon the Site and direct City to make any and all tests and inspections as Developer deems necessary to satisfy itself as to the condition of the Site for the use set forth in this Agreement.
Prior to the conveyance of the Site to Developer, City shall cause the demolition of the two buildings currently located on the Site, one measuring 1,342 square feet, and the second measuring 814 square feet, and any other ancillary improvements on the Site. City shall relocate all occupants of the buildings on the Site prior to demolition. Such relocation and demolition shall be performed in accordance with all applicable Governmental Regulations, including, without limitation, those governing Hazardous Substances and any applicable state or federal relocation laws. City shall cause environmental testing to be performed on the Site in accordance with Section 2.3. The Site shall be conveyed to Developer as empty land, free of any improvements.
City shall convey the Site to the Developer subsequent to demolition of the existing buildings and improvements and upon completion of the environmental testing and any necessary remediation, in an “as is” condition. From and after the date of conveyance of the Site to Developer, Developer, by execution of this Agreement shall be deemed, as of the date of conveyance of the Site, or any portion thereof, to have agreed to indemnify, defend with counsel selected by City, protect and hold harmless the City, and its elected and appointed officers, employees, agents and assigns (“Indemnified Parties”) from and against all claims, actual 9 DDA Hunsaker Property FINAL
damages (including but not limited to special, consequential and punitive damages), injuries, litigation costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, costs and expenses (including but not limited to attorneys’ and expert witness fees and all other litigation costs) incurred in connection with defending the Indemnified Parties, at any time directly or indirectly arising from or attributable to the existence of, any and all repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan concerning any Hazardous Substance hereafter defined, on, under or about Site (hereafter collectively “Costs”) which arises during such period as Developer holds title to the Site regardless of whether or not such costs are as a result of governmental action. To the fullest extent permitted by law, the foregoing indemnification shall apply regardless of the fault, active or passive negligence, breach of warranty or contract of or by City. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107 (e) of the Comprehensive Environmental Response, Compensation and Liability Act, “CERCLA”, 42 U.S.C. Section 9607 (e), as amended from time to time and California Health and Safety Code Section 25364, as amended from time to time to insure, protect, hold harmless and indemnify City from any liability pursuant to such section. This Indemnity shall survive termination of the Agreement if such termination occurs following conveyance of the Site to Developer.
Nothing contained in this Agreement shall prevent the Developer, in the event that any toxic material is found in or upon the Site, from seeking damages from any prior owner thereof.
Section 2.3. Right to Inspect.
Prior to the conveyance of the Site, City shall, at its expense, conduct such tests on the surface and subsurface of the Site (“Assessment”), as Developer may deem appropriate to determine whether Hazardous Substances, as defined herein, exist in the Site. In order for Developer to determine which tests may be necessary or appropriate, City hereby grants to the Developer and its employees, contractors, and agents (collectively “Agents”) a temporary and conditional right to enter upon the Site for the sole limited purpose of making such determination.
City, if requested by Developer, within the time period set forth in Section 6.7 hereof, shall utilize its best efforts to expeditiously obtain for Developer, pursuant to applicable law, the right to enter upon the Site for the purpose of determining which tests are appropriate in order to determine whether Hazardous Material exists. The Developer shall bear the responsibility of determining whether or not to conduct such tests, and if the Developer elects to conduct such tests, the nature and extent thereof shall be as determined by Developer but performed by City at its expense. City shall hold Developer free and harmless from any claim, demand or judgement arising out of the conduct of the tests on the Site, including any such claims as may arise out of the issuance of any judicial right of entry or any negligence or intentional misconduct of the Indemnified Parties.
Section 2.4. Escrow.
The Parties hereto shall enter into an Escrow for the conveyance of the Site by the date set forth in the Schedule of Performance. The Escrow Agent shall be Stewart Title Company, or other Escrow Company, as mutually agreed upon by the Parties. The Escrow Instructions shall be substantially in the form of Exhibit D. The parties shall execute such supplements to the Escrow Instructions as necessary to effectuate and implement this Agreement.
Section 2.5. Conveyance of Title.
A. Subject to the provisions of this Agreement, City agrees to convey, by Grant Deed, marketable fee simple title to the Site to Developer, free and clear of all recorded and unrecorded 10 DDA Hunsaker Property FINAL
liens, encumbrances, assessments, easements, tenant rights, leases, and taxes, except as provided in subparagraph B of this section, 2.5, by the date set forth in the Schedule of Performance. In consideration of the Conveyance of the Site, Developer agrees to perform the obligations set forth in this Agreement, and City agrees to accept as the purchase price Developer’s payment of one hundred dollars ($100) and all Escrow and title costs associated with the Conveyance
B. City has obtained or will obtain Title Reports on the Site (“Reports”) from Stewart Title Company (“Title Company”) dated within 30 days of the Effective Date. City has, contemporaneously with execution of this Agreement, delivered to Developer copies of the Reports. Developer shall have twenty (20) business days after the effective date of this Agreement, as set forth in Section 8.3 of this Agreement, within which to disapprove the title to the Site as shown in the Reports. Developer shall be deemed to have approved the Report as to the Site, unless it delivers to City written notice of its disapproval within the 20-day period specified, Developer’s written notice of disapproval shall specify the specific items on the Reports which it disapproves. Developer’s right to object to such items shall be limited to those items, the existence of which would impede, impair or prohibit the redevelopment of the Site and/or sale of the Units as contemplated by this Agreement. In the event Developer disapproves the Reports, City, at its option, shall have a reasonable period of time following the date of deliver to City of Developer’s disapproval of the Reports, within which to agree to remove, and to remove, within reasonable time, any item shown on the Reports to which the Developer timely objected, as described in Developer’s notice of disapproval. In the event City elects not to agree to remove any such item, either Party shall have the right to terminate this Agreement pursuant to Section
6.7. C. City shall deliver an executed Grant Deed to Escrow by the date set forth in the Schedule of Performance. City shall direct Escrow to record the Grant Deed in the official records of the County of Los Angeles and convey title to the Site to Developer by the date set forth in the Schedule of Performance.
D. Escrow Agent shall, following recording of the Grant Deed (Exhibit F) to Developer, provide Developer with an owner’s title policy issued by Title Company showing title to the Site vested in Developer. Developer agrees to pay all premium charges for title insurance in excess of the charges for CLTA.
ARTICLE III
DEVELOPMENT OF THE SITE
Section 3.1. Development of the Site.
The Site shall be developed in a manner consistent with applicable law, including the Paramount Zoning Code, and the provisions of this Agreement.
City shall prepare the final tract map for the Site, and shall cause the recordation of the final tract map at its expense.
Developer shall bear all cost and responsibility for grading the Site; performance of all soils and geologic investigations and tests; site preparation (subsequent to demolition of the existing buildings and improvements); construction of improvements thereon; and construction of 11 DDA Hunsaker Property FINAL
all off-site improvements necessary or convenient to serve the Site, as described in the Budget and Scope of Development attached as Exhibit E.
Section 3.2. Basic Concept Drawings.
The Developer, prior to the execution of this Agreement, has prepared and submitted within their proposal for City approval, the Basic Concept Drawings and related documents (“Basic Concept Drawings”) for the development of the Site. By City’s execution of this Agreement, the Basic Concept Drawings shall be deemed approved. The Site shall be rehabilitated as established in the approved Basic Concept Drawings.
Section 3.3. Construction Drawings.
After obtaining City zoning approvals the Developer shall, within the time permitted by the Schedule of Performance, prepare and submit to the City for review and approval, construction drawings, specifications and related documents, (“Construction Drawings”) based upon the approved Basic Concept Drawings for the entire Site.
During the preparation of the Construction Drawings, the City and the Developer shall hold regular progress meetings to coordinate the preparation of, submission to, and review of Construction Drawings by City. The City and Developer and its approved agents shall communicate and consult informally as frequently as is necessary to ensure that the formal submittal of the Construction Drawings to the City can receive prompt and speedy consideration.
Section 3.4. City Approval of Documents.
The City shall approve or disapprove the Construction Drawings (“Documents”) referred to in Sections 3.3. of this Agreement within the times established in the Schedule of Performance.
Failure by the City to either approve or disapprove such Documents within the times set forth in the Schedule of Performance shall be deemed an approval, provided the Documents comply with the provisions of the Paramount Municipal Code, Paramount Zoning Code, and the provisions of this Agreement. Any disapproval shall state in writing the reasons for disapproval.
The Developer, upon receipt of a disapproval based upon powers reserved by the City hereunder, shall revise the portions of the Documents which are disapproved and resubmit to the City for approval, as soon as possible after the giving of notice of City disapproval.
If the Developer desires to make any change in the Documents after approval by the City, the Developer shall submit the proposed change to the City for its approval pursuant to this Section.
Section 3.5. Cost of Construction and Sale of the Property.
All costs of rehabilitating the Site, all site preparation, constructing all improvements on the Site, all off-site improvements necessary or convenient to service uses on the Site, and all costs of the sale of the Units shall be paid by Developer, except to such extent as the costs of sale of the Affordable Unit to Qualified Buyers are customarily paid by the Qualified Buyer.
Section 3.6. Construction Schedule.
After the conveyance of Site, the Developer shall promptly begin and thereafter diligently prosecute to completion, the construction of the improvements and the development of the site in accordance with the Schedule of Performance and the Scope of Development. 12 DDA Hunsaker Property FINAL
During the period of construction, the Developer shall submit to the City periodic written reports on the progress of the construction. The reports shall be in a form agreed upon by Developer and City.
Section 3.7. Insurance Requirements.
Developer shall not commence or continue to perform any work unless Developer has in full force and effect all insurance required hereunder with companies satisfactory to City. To be acceptable, insurers must be authorized to do business, and have an agent for service of process, in California, and have an "A" policyholder's rating and a financial rating of at least Class V, in accordance with the current Best's Ratings. All insurance policies shall be maintained until the work is accepted by City and provide for coverage of all causes of action or disputes arising out of acts in performance of the construction of the work herein, whether said causes or disputes are filed or brought to the attention of City before or after the termination of this contract.
Concurrent with execution of this Agreement, Developer shall provide certificate(s) of insurance and endorsements, satisfactory to City, or otherwise provide proof of insurance as approved by the City Attorney, certifying that Developer has and will maintain for the Agreement period, full worker’s compensation insurance coverage as required by State laws, for all persons who are or may be employed in carrying out the work.
Concurrent with execution of this Agreement, Developer shall provide to City certificate(s) of insurance and endorsements, satisfactory to City, or otherwise provide proof of insurance as approved by the City Attorney, certifying that Developer has general liability and commercial vehicle liability insurance coverage naming City, City Council members, City's engineer, and their consultants, officials, directors, officers, agents and employees, as additional insureds for both bodily injury and property damage of not less than that as follows:
General Liability
$2,000,000 Each Occurrence (Includes Bodily Injury and Property Damage) $1,000 Medical Expense
$1,000,000 Personal & Advertising Injury
$2,000,000 General Aggregate
$2,000,000 Products-Completed/Operations Aggregate
Automobile Liability
Combined Single Limit $1,000,000 each accident, $2,000,000 aggregate Workers Compensation Statutory
General liability and commercial vehicle liability insurance coverage shall include each of the following types of insurance as required by City to carry out this Agreement:
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A. General Liability
1. Comprehensive Form
2. Premises-Operations
3. Explosion and Collapse Hazard
4. Underground Hazard
5. Products/Operations Competed
6. Contractual Insurance
7. Broad Form Property Damage Including Completed Operations
8. Independent Contractors
9. Personal Injury
B. Vehicle Liability
1. Comprehensive Form, Including Loading and Unloading
2. Owned
3. Hired
4. Nonowned
C. FirePolicies
Developer shall maintain or cause to be maintained a policyor policies of insurance against loss or damage to theSite orthe Improvements and all propertyof an insurable nature located upon the Site, resulting from fire, lightning, vandalism, malicious mischief, riot and civil commotion, and such other perils ordinarily included in extended coverage fire insurance policies. Such insurance shall be maintained in an amount not less than 100% of the full insurable value of the Improvements.
Concurrent with execution of any agreements between Developer and any subcontractors retained by Developer to perform any work required of Developer hereunder, and in any event prior to Developer authorizing any subcontractors to perform any such work or to even conduct any preliminary activities in preparation for or in anticipation of such work, Developer shall collect certificates of insurance from all such subcontractors evidencing proof that all subcontractors have procured and will maintain all the insurance coverages required of Developer under this Agreement.
In addition to naming the City, City Council members, and their consultants, officials, directors, officers, agents and employees, as additional insureds, as set forth above, the certificates of insurance, including those provided by any subcontractor, provided either on forms required by the City or as otherwise approved by the City Attorney, shall bear the following endorsements: (1) each policy required herein must be endorsed to provide that the policy shall not be cancelled or non-renewed by or reduced in coverage or limits (except by paid claims) 14 DDA Hunsaker Property FINAL
unless the insurer has provided the City with thirty (30) days prior written notice of cancellation; (2) the carriers of all required insurance policies must waive all rights of subrogation against the City and its officers, employees, servants, volunteers, agents and independent contractors; and (3) except for worker’s compensation insurance, all insurance policies required to be provided by Developer must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.
Nothing contained in these insurance requirements shall limit the liability of Developer or Developer's sureties. Review and acceptance of insurance certificates shall not constitute any representation by City or its representatives that any required insurance has been issued.
Section 3.8 Developer's Liability
Developer shall, at Developer’s sole cost and expense, be solely and completely responsible for all matters affecting the design, prosecution, progress and completion of the work (both on and off the job site). Developer shall be responsible for observing all laws. Developer shall provide for public convenience and safety and safety of workers, including Developer’s workers and those of Developer’s subcontractors, suppliers and others contributing to the work.
Developer shall protect City property and property rights of others, including the location, maintenance and replacement of utilities, whether shown on the plans or not. Developer shall give prior notification to utility owners. Developer shall notify Underground Service Alert at 1-800- 422-4133 at least 48 hours prior to start of construction. Developer shall protect against, and prevent drainage from, storm runoff. Developer shall not interfere with easements, rights-of-way and encroachment permits. Nothing in this Agreement, the specifications, or other contract documents, or City's approval of the plans and specifications or inspection of the work is intended to include City's review, inspection, acknowledgment of or responsibility for any such matters.
City, City Council members, and their consultants and each of their officials, directors, officers, employees and agents shall have no responsibility or liability for the above.
The insurance obligations set forth in this Section shall remain in effect only until a final Certificate of Completion (Exhibit H) has been issued for the Site.
Section 3.9. Indemnity.
Notwithstanding the existence of the insurance coverage required pursuant to the provisions of Section 3.7. of this Agreement, and in addition to all other indemnity obligations of Developer hereunder, Developer shall indemnify and hold harmless the Indemnified Parties from and against all liability, claims, damages, losses, expenses and other costs, including costs of defense and attorneys' fees arising out of or resulting from or in connection with all matters affecting the design or construction of the work undertaken by Developer or its agents, both on and off the job site, and during and after completion, except to the extent caused by the negligence or intentional misconduct of an Indemnified Party or a buyer occupying a Unit. This, provided any of the above is: (1) attributable to bodily injury, sickness, disease or death, or to injury to or destruction of property (other than the work itself) including the loss of use resulting therefrom, and (2) caused in whole or in part by any act or omission of Developer, Developer’s engineer, any subcontractor, any supplier, anyone directly or indirectly employed by any of them or anyone for whose acts or omissions any of them may be liable. Said indemnification and agreement to hold harmless shall extend to injuries to persons and damages to or taking of property resulting from 15 DDA Hunsaker Property FINAL
all matters affecting the design or construction of said improvements or the diversion of waters or from all matters affecting the design or construction or maintenance of drainage systems, streets and other improvements. As to any and all claims against the Indemnified Parties by any employee of Developer, any contractor, any subcontractor, any supplier, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnity obligations hereunder shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Developer, subcontractor, supplier or other person under workers' compensation acts, disability benefit acts or other employee acts.
Developer shall also indemnify and hold harmless the Indemnified Parties from and against all losses, expenses, damages (including damages to the work itself), attorneys' fees and other costs, including costs of defense, which any of them may incur both during and after completion with respect to any latent deficiency in all matters affecting the design, specifications, surveying, planning, supervision, observation or construction of the improvements undertaken by Developer or its agents or any injury to a person or property, real or personal, as a result of any such latent portions of the work which City reasonably suspects may also be defective by reason of known defects in the work performed by Developer or Developer’s subcontractors, or suppliers or designed by their representatives.
Provisions of this paragraph shall remain in effect ten (10) years following acceptance of improvements by the City. Nothing contained herein shall limit City’s remedies pursuant to Code of Civil Procedure, Section 337.15.
Section 3.10. City and Other Governmental Agency Licenses and Permits.
Before commencement of the construction or the development of any buildings, structures or other work of improvement pursuant to this Agreement, the Developer shall, at its own expense, secure or cause to be secured any and all licenses, approvals, and permits which may be required by the City and any other governmental agency having jurisdiction as to such construction, development or work including, but not limited to, a parcel map for the Site. The City shall provide all proper assistance to the Developer in securing these licenses, approvals, and permits.
Section 3.11. Rights of Access.
For the purpose of assuring compliance with this Agreement, representatives of the City shall have the right of access to the Site, without charges or fees, during all normal construction hours during the period of construction for the purposes of insuring compliance with the provisions of this Agreement, and applicable laws. Such representatives of the City shall be those who are so identified in writing by the City Manager of the City.
Section 3.12. Local, State and Federal Laws.
The Developer shall carry out the provisions of this Agreement in conformity with all applicable local, state, and federal laws and regulations, including, but not limited to the Paramount Municipal Code, the Paramount Zoning Code, the 2022 Los Angeles County Residential Code, the 2022 California Building Code, the 2022 California Electrical Code, the 2022 California Mechanical Code, and the 2022 California Plumbing Code. 16 DDA Hunsaker Property FINAL
Section 3.13. Nondiscrimination During Construction.
The Developer, for itself and all successors and assigns, agrees that in the construction of the improvements provided for in this Agreement, the Developer shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry.
Section 3.14. Taxes, Assessments, Encumbrances and Liens.
The Developer shall pay when due all real estate taxes and assessments on the Site and levied subsequent to the conveyance of title to the Site and prior to the sale of the Affordable Unit to Qualified Buyers. Prior to issuance of a Certificate of Completion pursuant to this Agreement, the Developer shall not place or allow to be placed on the Site or any part thereof any mortgage, trust deed, encumbrance, or lien other than as expressly allowed by this Agreement. The Developer shall remove or have removed any levy or attachment made on any of the Site or any part thereof or assure the satisfaction thereof within a reasonable time but in any event prior to a sale thereunder. Nothing herein contained shall be deemed to prohibit the Developer from contesting the validity or amounts of any tax assessment, encumbrance, or lien, nor to limit the remedies available to the Developer in respect thereto.
Section 3.15. Prohibition Against Transfer of the Site, the Buildings or Structures Therein and Assignment of Agreement.
Prior to the issuance of a Certificate of Completion pursuant to this Agreement as to the Site, the Developer shall not, except as permitted by this Agreement, without prior approval of the City, make any total or partial sale, transfer, conveyance, assignment, or lease of the whole or any part of the Site or of the buildings or structures on the Site except as permitted by this Agreement. This prohibition shall not be deemed to prevent the granting of temporary or permanent easements or permits to facilitate the development of the Site.
Section 3.16. Deed of Trust Financing: Rights of Holders.
A. No Encumbrances Except Deeds of Trust for Development Notwithstanding any other provision of this Agreement, deeds of trust are permitted before completion of the improvements, but only for the purpose of securing loans of funds to be used for financing the construction of improvements on the Site, and any other purposes in connection with development under this Agreement. The Developer shall notify the City in advance of any mortgage, deed of trust or sale and leaseback financing, if the Developer proposes to enter into the same before completion of the construction of the improvements on the Site. City approval shall be required for any other financing.
B. Holder Not Obligated to Construct Improvements.
The holder of any deed of trust authorized by this Agreement shall not be obligated by the provisions of this Agreement to construct or complete the improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in the deed for the Site be construed so to obligate such holder.
Nothing in this Agreement shall be deemed to construe, permit, or authorize any such holder to devote the Site to any uses or to construct any improvements thereon, other than those uses or improvements provided for or authorized by this Agreement. 17 DDA Hunsaker Property FINAL
C. Notice of Default to Deed of Trust Holders; Right to Cure.
With respect to any deed of trust granted by Developer as provided herein, whenever the City shall deliver any notice or demand to Developer with respect to any breach or default by the Developer in completion of construction of the improvements, the City shall at the same time deliver to each holder of record of any mortgage or deed of trust authorized by this Agreement a copy of such notice or demand but only if City has been requested to do so in writing by Developer or beneficiary. Each such holder shall (insofar as the rights of the City are concerned) have the right, at its option, within ninety (90) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default and the cost thereof to the mortgage debt and the lien of its mortgage. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the improvements (beyond the extent necessary to conserve or protect the improvements already made) without first having expressly assumed the Developer obligations to the City by written agreement satisfactory to and with the City. The holder, in that event, must agree to complete, in the manner provided in this Agreement, the improvements to which the lien or title of such holder relates, and submit evidence satisfactory to the City that it has the qualifications and financial responsibility necessary to perform such obligations. Any such holder properly completing such improvement shall be entitled to, upon compliance with the requirements of Section 3.16 of this Agreement, to a Certificate of Completion (as therein defined).
D. Failure of Holder to Complete Improvements.
In any case where, six (6) months after default by the Developer in completion of construction of improvements under this Agreement, the holder of any deed of trust creating a lien or encumbrance upon the Site or any part thereof has not exercised the option to construct, or if it has exercised the option and has not proceeded diligently with construction, the City may purchase the mortgage or deed of trust by payment to the holder of the amount of the unpaid mortgage or deed of trust debt, including principle and interest and all other sums secured by the mortgage or deed of trust. If the ownership of the Site or any part thereof has vested in the holder, the City, if it so desires, shall be entitled to a conveyance from the holder to the City upon payment to the holder of an amount equal to the sum of the following:
1. The unpaid mortgage or deed of trust debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings);
2. All expenses with respect to foreclosure;
3. The net expense, if any (exclusive of general overhead), incurred by the holder as a direct result of the subsequent management of the Site or part thereof;
4. The costs of any improvements made by such holder; and
5. An amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by the City.
E. Right of the City to Cure Deed of Trust Default.
In the event of mortgage or deed of trust default or breach by the Developer prior to the completion of the construction of the improvements on the Site or any part thereof and the 18 DDA Hunsaker Property FINAL
holder of any mortgage or deed of trust has not exercised its option to construct, the City may cure the default. In such event, the City shall be entitled to reimbursement from the Developer of all costs and expenses incurred by the City in curing such default. The City shall also be entitled to record a lien upon the Site to the extent of such costs and disbursements. Any such lien shall be subject to the construction financing mortgage or deeds of trust.
F. Right of the City to Satisfy Other Liens on the Site After Tittle Passes.
After the conveyance of title and prior to the completion of construction, and after the Developer has had a reasonable time to challenge, cure or satisfy any liens or encumbrances on the Site, the City shall have the right to satisfy any such liens or encumbrances, provided however, that nothing in this Agreement shall require the Developer to pay or make provision for the payment of any tax, assessment, lien or charge, so long as the Developer in good faith shall contest the validity or amount thereof, and so long as such delay in payment shall not subject the Site to forfeiture or sale.
Section 3.17. Certificate of Completion.
A. Promptly after completion of all construction and development of the Site in the manner required by this Agreement to the written satisfaction of the City Planning Division and the Building and Safety Division, the City shall furnish the Developer with a Certificate of Completion substantially in the form of Exhibit H. The City shall not unreasonably withhold such Certificate of Completion. Such Certificate of Completion shall be a conclusive determination of satisfactory completion of the construction required by this Agreement upon the Site and the Certificate of Completion shall so state. After recordation of such Certificate of Completions, any party then owing or thereafter purchasing, leasing, or otherwise acquiring any interest therein shall not (because of such ownership, purchase, lease, or acquisition) incur any obligation pursuant to this Agreement, except for those provisions hereof which are designated as covenants running with the land.
B. A Certificate of Completion of construction for the entire improvement and development of the Site shall be in such form as to permit it to be recorded in the Recorder’s Office of Los Angeles County.
C. If the City refuses to or fails to furnish a Certificate of Completion for the Site after written request form the Developer, the City shall, within thirty (30) days of written request therefor, provide the Developer with a written statement of the reasons the City refused or failed to furnish a Certificate of Completion. The Statement shall also contain City’s opinion of the actions the Developer must take to obtain a Certificate of Completion. If the City shall have failed to provide such written statement within said thirty (30) day period, the Developer shall be deemed entitled to the Certificate of Completion.
D. Such Certificate of Completion shall not constitute evidence of compliance with or satisfactory of any obligation of the Developer to any holder of any deed of trust securing money loaned to finance the improvements, or any part thereof. Such Certificate of Completion is not a notice of completion as referred to in the California Civil Code, Section 3093. 19 DDA Hunsaker Property FINAL
ARTICLE IV
USE OF THE SITE
Section 4.1. Uses.
The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest that during construction and thereafter, the Developer, its successors and assignees shall devote the Site to the uses specified in the deed and this Agreement for the periods of time specified therein. The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest that the one (1) single-family residence Unit developed upon the Site shall be affordable to Low Income Households or Moderate Income Households and shall be restricted to remain continually affordable to such persons and families for a period of not less than forty-five (45) years (the “Affordable Unit”). Such restriction shall be contained in all grant deeds, promissory notes, or other instrument of conveyance of the subject Site.
A. Obligation to Refrain from Discrimination.
The Developer covenants by and for themselves, and any successors in interest, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Developer themselves or any such person claiming under or through them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of residents of the Units. The foregoing covenants shall run with the land.
B. Form of Nondiscrimination and Nonsegregation Clauses.
The Developer shall refrain from restricting the sale of the Units on the basis of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry of any person. All such deeds, leases or contract shall contain or be subject to substantially the following nondiscrimination or no segregation clauses:
1. In Deeds: “The grantee herein covenants by and for and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group or person on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee themselves, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”
2. In Leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and that this lease is made and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation of, any person or group or person on account of race, color, creed, religion, sex, marital status, disability, sexual 20 DDA Hunsaker Property FINAL
orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein leased.”
3. In Contracts: “There shall be no discrimination against or segregation of, any person or group or person on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land.”
C. Effect and Duration of Covenants.
Except as otherwise proved, the covenants contained in this Agreement and the deed shall run with the land. The covenants against discrimination shall remain in effect in perpetuity.
The covenants established in this Agreement and the deed shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City, and its successors and assigns.
The City is deemed the beneficiary in terms and provisions of this Agreements and of covenants running with the land, in its own rights and for the purpose of protecting the interests in the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. This Agreement and the covenants shall run in favor of the City without regard to whether the City has been, remains, or is an owner of any land or interest therein in the Site, any parcel or subparcel. The remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled.
Section 4.2. Affordable Housing.
A. Affordable Housing.
Commencing upon and throughout the Affordability Period, Developer covenants and agrees that the Affordable Unit shall be restricted to sale to and occupancy by Qualified Buyers or Eligible Purchasers in accordance with the provisions of the Declaration.
If there is no ratified sales contract with an eligible homebuyer for the housing within nine (9) months of the date of completion of the development, the housing may be rented to an eligible tenant.
B. Qualified Buyer Selection.
Developer covenants and agrees to select a Qualified Buyer in accordance with this Article IV and the Declaration. In addition, the Qualified Buyer selection criteria shall:
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a) Be consistent with the purpose of providing housing for Low-Income Households and Moderate Income Households;
b) Be reasonably related to program eligibility and the applicant’s ability to perform the obligations of the mortgage(s);
c) Provide for the selection of buyers in accordance with a written plan; d) Give prompt written notification to any rejected applicant of the grounds for rejection.
C. Income of Qualified Buyer of the Affordable Unit; Affordable Housing Cost Developer shall obtain a completed income computation and certification form from the prospective buyer(s) of the Affordable Unit, together with a copy of all back-up supporting information, in such form as may be reasonably determined by Developer. Developer shall not transfer title to the Affordable Unit to a prospective buyer(s) until the conditions set forth herein have been satisfied. Developer shall obtain a certification from the Household purchasing an Affordable Unit demonstrating that such Household is Low-Income Household or ModerateIncome Household, will occupy the Affordable Unit as its primary residence at all times and meets the eligibility requirements established for the Affordable Unit such that the Household qualifies as a Qualified Buyer. Developer shall prepare a computation demonstrating that the Affordable Unit will be sold to the prospective buyer(s) at an Affordable Sales Price. Developer shall verify the income certifications and computations by obtaining appropriate supporting documentation.
Developer shall obtain at least one of the following, as appropriate to the Household of the proposed buyer(s);
a) Two (2) paycheck stubs from the proposed purchaser’s two (2) most recent pay periods (and the same from any other member of the Household eighteen (18) years old or older);
b) A true copy of an income tax return from the proposed purchaser for the most recent tax year in which a return was filed (and the same from any other member of the Household eighteen (18) years old or older).; c) An income verification certification from the employer of the proposed purchaser and any other member of the Household eighteen (18) years old or older;
d) An alternate form of income verification if none of the above forms of verification is available.
D. Sale to City of Paramount Residents.
The Developers understands and agrees in the fulfillment of the provisions of this Agreement to make reasonable and practical efforts to provide a preference in the sale of the completed single-family residences to residents of the City of Paramount, to the extent permitted by law.
E. For Sale Housing.
Developer anticipates that it will obtain a combination of sweat equity, corporate sponsorship, construction financing, deferred developer fee, and/or public financing to finance the 22 DDA Hunsaker Property FINAL
construction for the improvements and development of Site. The Developer understands that the property is being developed for the purpose of providing affordable housing for an owner-occupied household. Pursuant to such purpose, upon the completion of construction of the Affordable Unit, and notwithstanding that the contract price for the sale of the Units shall be at the fair market value, the terms of the financing utilized in the sale of the Affordable Unit shall result in an Affordable Sales Price to the Qualified Buyer of each Affordable Unit consistent with applicable requirements of this Agreement, and all applicable Governmental Regulations at the time of sale of the Affordable Unit.
In connection with the sale of each Affordable Unit to a Low-Income Household or Moderate-Income Household, Developer may provide a Habitat Subordinate Mortgage. The purchase price of the Affordable Unit shall be financed by the Qualified Buyer with a combination of a conventional first priority loan from a third party commercial lender at a fixed rate of interest requiring level annual payments of principle and interest over thirty (30) years, a Habitat Subordinate Mortgage, and such other subordinate loans and grants as are available to assist the Qualified Buyer to purchase the Affordable Unit and pay escrow, title and other closing costs.
The Developer shall be entitled to retain all cash proceeds of the sales of the Affordable Unit and any other Units constructed on the Site.
1. Qualified Buyer Requirements: Subject to the requirements of all applicable Governmental Regulations, upon the sale of the Affordable Unit, any proposed Qualified Buyer must (i) qualify as a Low-Income Household or Moderate-Income Household; (ii) agree to occupy the Affordable Unit as his or her primary residence at all times during the Affordability Period; and (iii) agree to the resale and other restrictions set forth herein and in the Declaration. Such Declaration shall be substantially in the form of Exhibit G. The buyer shall be required to assume the affordability and other covenants set forth in said Declaration as a condition of the acquisition of the property. The proposed buyer must be legally residing in the United States and have appropriate documentation demonstrating such legal residence.
2. Initial Sale of Units: No later than one hundred eighty (180) days after completion of the development, Developer shall sell and transfer title to the Affordable Unit in the Project to a Low-Income Household or Moderate-Income Household at an Affordable Sales Price in accordance with the procedures set forth herein: provided, however, that if Developer has located a Low-Income Household or Moderate-Income Household that wishes to purchase and Affordable Unit from Developer, but said Low-Income House or Moderate Income Household has not yet satisfied all of Developer’s program requirements, or, despite reasonable efforts, has been unable to timely close its third party financing for the purchase of the Unit, Developer shall not be in default of this Section if (i) Developer has entered into a lease agreement with said Low Income Household or Moderate Income Household (an “Interim Lease”); (ii) the term of the Interim Lease is no longer than one (1) year; (iii) during the term of the Interim Lease Developer and the LowIncome Household or Moderate-Income Household are diligently proceeding with the satisfaction by the Low-Income Household or Moderate-Income Household of all of Developer’s program requirements and the Low-Income Household or Moderate-Income Household’s purchase of the Unit; and (iv) prior to, or concurrently with the expiration of the term of the Interim Lease, Developer and the Low-Income Household or ModerateIncome Household complete the sale and transfer of title of the Unit to the Low-Income 23 DDA Hunsaker Property FINAL
Household or Moderate-Income Household. The procedures for the subsequent sale of Units by the Qualified Buyers shall be as set forth in the Declaration.
3. Conditions of Transfer: Developer shall not transfer title to any Affordable Unit unless all of the applicable following conditions are satisfied: (a) a Certificate of Occupancy has been issued by theBuilding division of the City for the Unit; (b) if applicable, Developer has obtained all approvals required by the California Bureau of Real Estate, including the issuance of the public report; (c) if applicable, the Association has been established; (d) if applicable, Developer has prepared the Association CC&Rs, City has approved the Association CC&Rs, and theAssociation CC&Rs have been recorded against the Site; (f) Developer has determined that the proposed buyer of an Affordable Unit is a Qualified Buyer; (g) Developer has determined that the purchase price for the Affordable Unit is an Affordable Sales Price; and (h) all other conditions and approvals required for the transfer shall have been satisfied or obtained.
4. Marketing of Units: Not later than one hundred eighty (180) days after Conveyance, Developer shall prepare and submit to City for approval a marketing plan for the Project (the “Marketing Plan”). The Marketing Plan shall require Developer to market the Affordable Unit to Low-Income Households and Moderate-Income Households, and to establish a list of qualified Low-Income Households and Moderate-Income Households.
Should multiple buyers be equally eligible for the Affordable Unit, Developer shall offer the Unit on a first-qualified, first-served basis or a lottery system established by Developer and approved by City.
5. Determining Qualified Buyer Status: Developer shall not sell or otherwise transfer an Affordable Unit until such time as Developer has satisfied the conditions set forth in this Agreement, including the requirement that the proposed buyer of an Affordable Unit provide evidence that it is a Low-Income Household or Moderate-Income Household.
Developer shall be responsible in determining whether a proposed buyer is a Low-Income Household or Moderate-Income Household, Developer shall obtain the identity of the proposed buyers and adequate information evidencing the income of the proposed buyer Household and the buyer’s Household status as a Low-Income Household or ModerateIncome Household. Said information shall be obtained not less than thirty (30) days prior to the proposed transfer and shall include original or true copies of pay stubs, income tax records or other financial documents. Said information shall be sufficient for Developer to verify the household income and eligibility of the proposed buyer as a Low-Income Household or Moderate-Income Household, and to perform a calculation as to whether the Affordable Unit is available to such buyer at an Affordable Sales Price. The Developer shall request any additional information reasonably required to verify the proposed buyer’s Low-Income Household or Moderate-Income Household status. For each buyer Household whom the Developer has determined constitutes a Low-Income Household or Moderate-Income Household, Developer shall submit to City a complete Request for Verification of Proposed Buyer, in a form reasonably acceptable to City. If Developer is unable to verify a proposed buyer’s Household income as provided herein, then the buyer’s Household income shall be deemed to exceed the maximum allowable income limit for Low-Income Household or Moderate-Income Household status.
6. Delivery of Documents: Upon the transfer of title to an Affordable Unit to a Qualified Buyer, Developer shall provide City with a Certified copy of the recorded documents (including the documents evidencing the Habitat Subordinate Mortgage). 24 DDA Hunsaker Property FINAL
ARTICLE V
GENERAL PROVISIONS
Section 5.1. Notices, Demands and Communications Between the Parties.
Formal notices, demands and communications between the City and the Developer shall be deemed sufficient if given by personal service upon the party to be notified, or by the depositing the same in the custody of the United States Postal Service or its lawful successor, postage prepaid, by the registered mail, return receipt requested, to the principal offices of the City and the Developer addressed as follows:
CITY: City of Paramount
16400 Colorado Ave
Paramount CA, 90723
DEVELOPER: Habitat For Humanity
8739 Artesia Blvd
Bellflower CA 90706
Attn: President
Notices shall be deemed given pursuant to this section upon the day of personal service, or (2) consecutive calendar days following the deposit of the same in the custody of the United States Postal Service.
Section 5.2. Conflicts of Interest.
The Developer warrants that that it has not paid or given and will not pay or give any officer, employee, or agent of the City any money or other consideration for obtaining this Agreement.
Section 5.3. Enforced Delay; Extension of Times of Performance.
Performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where the party seeking the extension has acted diligently and delays or defaults are due to events beyond the reasonable control of the party, including but not limited to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; pandemics; quarantine restrictions; freight embargoes; intergalactic invasion; lack of transportation; governmental restrictions or litigation; unusually severe weather; acts or omissions of another party; or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause. Notice of such enforced delay shall be promptly given by the party claiming the benefit of such delay. 25 DDA Hunsaker Property FINAL
Section 5.4. Non-liability of Officials and Employees of the City.
No member, official or employee of the City shall be personally liable to the Developer, or any successor in interest, pursuant to the provisions of this Agreement, nor for any default or breach by the City.
Section 5.5. Inspection of Books and Records.
Each party has the right to inspect, at reasonable times, the books and records of the other pertaining to the Site as pertinent to the purpose of this Agreement.
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.1. Defaults – General.
Except as is expressly otherwise provided in this Agreement, failure or delay by either Party to perform any term or provision of this Agreement constitutes a default under this Agreement. A Party claiming a default (claimant) shall give written notice of such default to the other party, specifying the default complained of.
The claimant shall not terminate this Agreement pursuant to Section 6.7, institute proceedings against the other party nor be entitled to damages if the other party within thirty (30) days from the giving of such notice immediately, with due diligence, commences to cure, correct or remedy such failure or delay and completes such cure, correction or remedy within thirty (30) days from the date of the giving of such notice or if such notice or if such cure, correction or remedy by its nature cannot be effected within such thirty (30) day period, such cure, correction or remedy is diligently and continuously prosected until completion, and such completion shall occur within a reasonable period of time. Such cure, correction and remedy shall include payment of any costs, expenses (including attorney fees) or damages incurred by the non-defaulting party resulting from the default or during the period of default.
Section 6.2. Legal Actions.
A. Institution of Legal Actions.
Any legal action related to or arising out of this Agreement must be instituted in the Superior Court of Los Angeles, State of California, in an appropriate municipal court in that county, or, if federal jurisdiction exists, in the Federal District Court in the Central District of California. In the event that such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court’s judgment, shall be entitled to reasonably attorney fees and litigation expenses based upon relief granted.
B. Applicable Law.
The laws of the State of California shall govern the interpretation and enforcement of this Agreement.
26 DDA Hunsaker Property FINAL
C. Acceptance of Service of Process.
In the event that any legal action is commenced by the Developer against the City, service of process on the City shall be made by personal service upon the City Clerk or in such other manner as may be provided by law.
In the event that any legal action is commenced by the City against the Developer, service of process on the Developer shall be made by personal service.
Section 6.3. Rights and Remedies are Cumulative.
Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
Section 6.4. Inaction Not a Waiver of Default.
Any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
Section 6.5. Damages.
Except as otherwise expressly provided, if a default is not timely and fully cured by the defaulting party as provided in Section 6.1, the defaulting party shall be liable to the other party for any damages caused by such default, and the non-defaulting party may thereafter (but not before) commence an action for damages against the defaulting party with respect to such default.
Section 6.6. Specific Performance.
If a default under this Agreement is not fully cured by the defaulting party as provided in Section 6.1, the non-defaulting party at its option may thereafter (but not before) commence an action for specific performance of terms of this Agreement.
Section 6.7 Remedies and Rights Prior to the City Conveyance of the Site.
A. Termination by the Developer.
Prior to the conveyance of the Site to the Developer, the Developer may terminate this Agreement upon fifteen (15) days’ written notice, for any of the following reasons:
1. The City does not convey title and possession of Site in the manner and condition and by the date provided in this Agreement and Developer has performed its obligations hereunder; or
2. The City does not remove title exceptions as provided in Section 2.5; or
3. The City defaults in the performance of any material obligation, and such failures is not cured within the time required by this Agreement; or
4. If, for any reason City is unable to obtain an appropriate order or orders permitting the entry upon the Site, pursuant to Section 2.3 of this Agreement, for the purpose of Hazardous Substance Inspection within not to exceed six (6) consecutive calendar days following Developer’s request for such an order; provided that City shall not be obligated to seek an inspection order or orders 27 DDA Hunsaker Property FINAL
unless Developer makes a written request therefore, as established by Section
2.3 hereof; or
5. There is a land use lawsuit (“Challenge”) brought against the development of the Site in accordance with this Agreement, including a Challenge under state or federal environmental laws, and said Challenge either legally prevents Developer or City from performing its obligations under this Agreement, or, if successful, would prevent Developer from constructing the Improvements in substantially the form contemplated by this Agreement, then Developer may deliver a notice of such challenge (the “Challenge Notice”) to City requesting that such impediment to City’s or Developer’s performance of its obligations be eliminated on or before expiration of the “Minimum Period” provided below.
Developer and City shall cooperate with each other in seeking to diligently resolve the Challenge. During the pendency of the Challenge, the Developer shall not be obligated to proceed with construction of the Improvements or any other matters subject to a force majeure delay as a result of such Challenge, and all deadlines set forth in the Schedule of Performance with respect to such matters shall be extended during the period of such Challenge. If, prior to expiration of the Minimum Period, such Challenge is not eliminated or otherwise resolved in a manner which would permit Developer to construct the Improvements in substantially the form contemplated by this Agreement, then Developer may, at its option and upon written notice delivered to City not later than sixty (60) calendar days after the expiration of the Minimum Period, terminate this Agreement. The “Minimum Period” shall mean a period of time commencing upon delivery of the Challenge Notice and ending one hundred and eighty (180) calendar days from the date of City’s receipt of the Challenge Notice.
Developer shall not be entitled to seek or obtain damages, of any kind, against City for the occurrence of any of the circumstances described in subparagraphs 4 and 5 of subsection A of this Section, 6.7, the sole remedy of Developer therefore shall be the right to terminate this Agreement.
B. Termination by the City.
Prior to conveyance of the Site to Developer, the City may terminate this Agreement for any of the following reasons:
1. Prior to conveyance of the Site, the Developer assigns or attempts to assign this Agreement or any rights therein or in the Site in violation of this Agreement; or
2. The Developer does not submit certificates of insurance, Construction Drawings and related documents as required by this Agreement, in the manner and by the dates respectively provided in this Agreement therefore; or
3. The Developer does not take title to Site under tender of conveyance by the City pursuant to this Agreement.
City shall not be entitled to seek or obtain damages, of any kind, against Developer for the occurrence of any of the circumstances described above, the sole remedy of City therefore shall be the right to terminate this Agreement.
28 DDA Hunsaker Property FINAL
C. Procedure for Termination.
In order to terminate this Agreement prior to conveyance of the Site to Developer for any reason set forth in Paragraph A or B above, the party proposing to terminate shall deliver written notice of its intent to do at least fifteen (15) days prior to the proposed date of termination and stating the reasons for termination. The party proposing to terminate the Agreement may withdraw the proposed termination or extend the time for performance any time prior to the effective date of termination.
D. Consequences of Termination.
In the event of termination of this Agreement pursuant to this Section 6.7, the terminating party shall have all rights and recourse against the defaulting party, as are provided in this Agreement, an/or available pursuant to applicable law, subject to the express limitations on such rights and recourse, as set forth in this Agreement.
Section 6.8. Reentry and Revesting of Title in the City After City Conveyance.
A. The City shall have the additional right, at its option, to reenter and take possession of the Site, with all improvements thereon, and terminate and revest in the City the estate conveyed to the Developer if prior to the issuance of a Certificate of Completion relating to the entire Site, the Developer shall:
1. Fail to start the construction of the improvements as required by this Agreement for a period of ninety (90) days after date required for commencement of construction under this Agreement; or
2. Abandon or substantially suspend construction of the improvements required by this Agreement for a period of thirty (30) days after written notice thereof from the City; or
3. Transfer or suffer any involuntary transfer of the Site or any part thereof in violation of this Agreement; or
4. Commit any other material default pursuant to this Agreement.
B. Such right to reenter, terminate and revest shall not be exercised with respect to any portion of the Site as to which a Certificate of Completion has been issued for all improvements to constructed on such portion of the Site pursuant to this Agreement.
C. Such right to reenter, terminate and revest shall further be subject to and be limited by and shall not defeat, render invalid or limit:
1. Any mortgage or deed of trust permitted by this Agreement; or
2. Any rights or interests provided in this Agreement for the protection of the holders of such mortgages or deed of trust.
D. The Grant Deed shall contain appropriate reference and provision to give effect to the City’s rights as set forth in this Section, 6.8, under specified circumstances prior to recordation of the Certificate of Completion, to reenter and take possession of the Site, with all improvements thereon, and to terminate and revest in the City the estate conveyed to the Developer.
E. Upon the revesting in the City of title to the Site as provided in this Section, the City shall use its best efforts to resell the Site as soon as possible, and in such manner as the 29 DDA Hunsaker Property FINAL
City shall find feasible and consistent with the objectives of applicable law and the requirements of 24 CFR Part 92, to a qualified and responsible party or parties (as determined by the City) who agree to assume the obligation for making and completing the improvements, or such other improvements in their stead as shall be satisfactory to the City and in accordance with the uses specified for such Site. Upon such resale of the Site, the proceeds thereof shall be applied:
1. First, to reimburse the City, for all costs and expenses incurred by the City, including, but not limited to, any expenditures by the City in connection with the recapture, management and resale of the Site or part thereof (but less any income derived by the City from the Site or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Site or part thereof which the Developer has not paid (or, in the event the Site is exempt from taxation or assessment or such charges during the period of ownership thereof by the City, an amount, if paid, equal to such taxes, assessments, or charges as would have been payable if the Site were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Site or part thereof at the time of revesting of title thereto in the City, or to discharge or prevent from attaching or being made any subsequent defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Site, or part thereof; and any amounts otherwise owing the City, the Developer and its successor or transferee; and
2. Second, to pay the Developer, or its successor or transferee, the balance then remaining.
Section 6.9. Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction.
The City shall be deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land created hereby, for and in its own rights and for the purposes of protecting the interests of the City and its residents for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the City, without regard to whether the City has been, remains or is an owner of any land or interest in the Site or in the Project Area. The City shall have the right, if this Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled.
Section 6.10. Limitation on Liability
Notwithstanding the foregoing, neither Developer nor City shall in any event be entitled to, and each hereby waives and releases, any right to seek loss of profits or any special, incidental or consequential damages of any kind or nature from the other Party arising out of or in connection with this Agreement or the termination hereof, and in connection with such waiver each Party is familiar with and hereby waives the provision of Section 1542 of the California Civil Code which provides as follows:
30 DDA Hunsaker Property FINAL
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
ARTICLE VII
COVENANTS
Section 7.1. Maintenance Covenants.
After Closing and prior to the sale of the Units by Developer, the Developer shall be obligated to maintain the Site, and all improvements and landscaping situated thereon, in a clean and neat condition and in a continuous state of good repair; “state of good repair” shall mean and include approval for the continuous removal of any graffiti placed on the Site; if at any time, graffiti is placed on the Site, and is not removed within forty eight (48) hours after notice to Developer to so remove, the City may cause such removal work to be performed at the expense of Developer.
Developer shall be obligated to pay all of the City’s costs of such removal upon receipt of invoice thereof. In the event the Developer fails to maintain the Site as required by this Section 7.1, City shall notify Developer in writing of such failure and specify the work necessary to meet the maintenance obligation. In the event the work specified is not completed within ten (10) days of the date of said notice, City may enter the Site, complete the work, and bill Developer for the cost of said work, including overhead costs.
ARTICLE VIII
SPECIAL PROVISIONS
Section 8.1. Amendments to this Agreement.
The Developer and the City agree to mutually consider reasonable requests for amendments to this Agreement which may be made by lending institutions, or Developer’s or City’s counsel or financial consultants, provided the basic terms hereof are unaffected.
Section 8.2. Entire Agreement, Waivers and General.
A. This Agreement is executed in duplicate originals, each of which is deemed to be an original. This Agreement includes pages 1 through 32 and Exhibits A through H, which constitutes the entire understanding and agreement of the parties.
B. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof.
C. All amendments hereto must be in writing executed by the appropriate representatives of the City and the Developer.
D. In any circumstance where under this Agreement either party is required to approve or disapprove any matter, approval shall not be unreasonably withheld, conditioned or delayed.
31 DDA Hunsaker Property FINAL
E. Both parties are sophisticated buyers and sellers of real property and have participated in the drafting of this Agreement.
F. Prior to the Conveyance of the Site to the Developer, the City may terminate for its convenience this Agreement at any time by giving at least thirty (30) days’ notice in writing to the Developer. If the Agreement is terminated by the City, as provided herein, the City will reimburse for any actual expenses incurred in Developer’s performance hereunder, including all predevelopment costs incurred and those costs involved in terminating the Agreement and shutting down the work as of the date of notice, and, in addition, the Developer will be paid as a fee an amount which bears the same ratio to the total costs of development actually performed bear to the total costs of the Developer budgeted to develop the Units under this Agreement.
Section 8.3. Effective Date of Agreement.
This Agreement, when executed by the Developer and delivered to the City, must be authorized, executed and delivered by the City within forty-five (45) days after the date of signature by the Developer or this Agreement shall be void, except to the extent that the Developer shall consent in writing to further extensions of time for the authorization, execution and delivery of this Agreement. The effective date of this Agreement shall be the date when the Agreement has been signed by the City.
[SIGNATURES ON FOLLOWING PAGE]
32 DDA Hunsaker Property FINAL
IN WITNESS WHEREOF, the City and the Developer have caused this Agreement to be executed by their authorized representation.
CITY OF PARAMOUNT
________________________ By:________________________________________ Signature Date Isabel Aguayo
Mayor
ATTEST:
________________________
City Clerk
APPROVED AS TO FORM:
________________________
John E. Cavanaugh
City Attorney
DEVELOPER
HABITAT FOR HUMANITY OF GREATER LOS
ANGELES
____________________________ By: __________________________________ Signature Date Erin Rank, President and CEO
EXHIBIT A
DDA Hunsaker Property FINAL 1
EXHIBIT A
SITE LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Los Angeles, City of Paramount and described as follows:
The Southwesterly 65 feet, measured on the Southeast line of Lot 55, Division 116, Region 54 of Official Maps, in the City of Paramount, County of Los Angeles, State of California, as per Map in Book 4, Pages 5 and 6 of Maps, in the Office of the County Recorder of said County.
APN: 7101-011-900
(End of Legal Description)
EXHIBIT B
DDA Hunsaker Property FINAL 1
EXHIBIT B
SITE MAP
SUBJECT
PROPERTY
EXHIBIT C
DDA Hunsaker Property FINAL 1
EXHIBIT C
SCHEDULE OF PERFORMANCE
Action Date
1. Execution of Disposition and
Development Agreement. The City
Council shall hold a Public Hearing to
authorize execution of the DDA.
Within 15 days after approval, Developer signs
the DDA and delivers signed DDA to the City.
Within 45 days City delivers an executed Copy
of DDA to Developer.
2. Opening of Disposition Escrow. City
and the Developer shall open the
Disposition Escrow for the Site.
Within 30 days of execution of the DDA by
City.
3. Submission of Preliminary
Construction Drawings, Landscaping
and Grading Plans. Developer shall
prepare and submit to the City:
preliminary construction drawings for
the development of the Site in
conformance with the approved
Basic Concept Drawings, outline
specifications and landscaping and
grading plan for improvements on the
Site.
Within 30 days after execution of the DDA by
City.
4. Approval of Preliminary Construction
Drawings, Landscaping and Grading
Plan. City shall approve or
disapprove the preliminary
construction drawings, outline
specifications, and landscaping and
grading plan for the Site.
Within 30 days after receipt by the City.
5. Submission of Financing
Commitments. If necessary,
Developer shall submit to the City
evidence of equity capital and
mortgage financing.
Prior to the close of escrow.
6. Deposit of Deed. City shall deposit
Grant Deed to Site into escrow.
Prior to the close of escrow.
7. Close of Escrow. City shall convey
title to the Developer and the
Developer shall accept conveyance
of the Site subject the satisfaction of
Developer’s conditions by City.
Within 30 days after the completion of
demolition of the buildings on the Site.
EXHIBIT C
DDA Hunsaker Property FINAL 2
8. Commencement of Construction.
Developer shall commence
construction of the single-family
residences on the Site.
Within 45 days after Conveyance.
9. Completion of Construction.
Developer shall complete
construction of improvements on the
Site.
Within 365 days after commencement of
construction
10. Certificate of Completion. City shall
deliver to Developer a Certificate of
Completion.
Within 30 days after receipt of notification of
completion of construction.
11. Sale of Completed Affordable Unit at
an Affordable Sales Price to a
Qualified Buyer. Developer shall
complete sale of the Affordable Unit
to a Qualified Buyer at an Affordable
Sales Price.
Within 4 months of the issuance of a
Certificate of Completion.
EXHIBIT D
DDA Hunsaker Property FINAL 1
EXHIBIT D
Escrow Instructions
1. ESCROW.
City (“Seller”) and Developer (“Buyer”) agree to open an escrow in accordance with Section 2.4 of this Agreement. This Agreement constitutes the joint escrow instructions of Seller and Buyer, and Escrow Officer to whom these escrow instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time.
As soon as possible after opening escrow, Seller will execute the Grant Deed attached to this Agreement and deposit the executed deed with Escrow Officer on Buyer’s behalf.
Buyer and Seller agree to deposit with Escrow Officer any additional instruments or documents as may be necessary to complete this transaction.
Insurance policies for fire or casualty are not to be transferred, and Seller will cancel its own policies after close of escrow.
2. ESCROW OFFICER IS AUTHORIZED TO AND SHALL:
Record the Grant Deed in the official records of the County Recorded of Los Angeles County when conditions of this escrow have been fulfilled by Buyer and Seller.
3. CLOSE OF ESCROW.
The term “close of escrow”, if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder.
4. EXTENSION, AMENDMENT, SUPPLEMENT.
All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructions must be in writing.
5. CLOSING DATE OF ESCROW.
TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE WITHIN 30 DAYS OF THE ESCROW OPENING DATE, UNLESS EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES HERETO.
EXHIBIT D
DDA Hunsaker Property FINAL 2
EXHIBIT D
ESCROW INSTRUCTIONS (Continued)
6. TITLE POLICY
Concurrently with the close of escrow or promptly thereafter, Seller shall cause the issuance of an owner’s title policy to Buyer, in such form as is reasonable acceptable to Buyer.
7. COUNTERPARTS.
These instructions may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument.
8. ESCROW CHARGES.
Seller shall be responsible for the payment of all escrow charges and fees.
9. CLOSING STATEMENT
Seller instructs Escrow Officer to release a copy of the estimated Seller’s statement to Buyer prior to the close of escrow.
10. LOSS OR DAMAGE TO PROPERTY
Loss or damage to the real property by fire or other casualty, occurring prior to the recordation of the Grant Deed shall be at the risk of Seller. In the event that loss or damage to the real property, by fire or other casualty, occurs prior to the recordation of the Grant Deed, Buyer may elect to require that the Seller pay to Buyer the proceeds of an insurance which may become payable to Seller by reason thereof, or to permit such proceeds to be used for the restoration of the damage done, or to reduce the total price by an amount equal to the diminution in value of said Site by reason of such loss or damage or the amount of insurance payable to Seller, whichever is greater.
[signature page follows]
EXHIBIT D
DDA Hunsaker Property FINAL 3
SELLER
CITY OF PARAMOUNT
By: Exhibit – Do Not Sign
Isabel Aguayo
Mayor
BUYER
HABITAT FOR HUMANITY OF GREATER LOS
ANGELES, a California nonprofit public benefit
corporation
By: Exhibit – Do Not Sign
Erin Rank, President and CEO
Acknowledged and Agreed:
STEWART TITLE
By: Exhibit – Do Not Sign
Print Name:
Escrow Officer
EXHIBIT E
DDA Hunsaker Property FINAL 1
EXHIBIT E
BUDGET AND SCOPE OF DEVELOPMENT
I. GENERAL DESCRIPTION
The Site encompasses approximately 7,836 square feet of improved land. The Developer agrees to provide one unit of affordable housing to persons and families of lowincome or moderate-income by preparing the existing lot for construction and constructing two new adjoining Single-Family Dwellings with attached garages on the Site in accordance with plans approved by the City in accordance with this Agreement.
Developer must also comply with the City’s landscaping requirements, all conditions of approval and with all mitigation measures imposed as part of any environmental clearance process. All issues, conditions and requirements set forth in this Scope of Development shall be mutually agreed upon by the parties, pursuant to review and approval by the City.
The Developer shall be responsible for paying for any and all Site improvements as well as building and permit fees in existence at the time of the City’s approval of this Agreement.
II. DESIGN OBJECTIVES
Following is a statement of design objectives for development of the Site:
A. The creation and achievement of an attractive and pleasant environment addressing neighborhood needs to develop larger more attractive single-family homes and reducing overcrowding conditions in the surrounding land use and development in the community.
B. The provision of a pleasing, safe and well-maintained residential environment stimulating private investment in adjacent properties.
III. REHABILITATION OBJECTIVES
A. The provisions of an affordable single-family home to promote homeownership and pride of ownership in the neighborhood.
B. Provide affordable housing of a high quality to encourage private investment by adjacent property owners in the neighborhood.
IV. PUBLIC IMPROVEMENTS
C. Any required public improvement shall be performed in a manner consistent with quality development standards and in accordance with the requirements of the Paramount Public Works Department and all other regulatory agencies. 16305 Hunsaker Ave. Paramount, CA – Two new Single-Family Dwellings RECORDING REQUESTED BY:
CITY OF PARAMOUNT
WHEN RECORDED MAIL TO:
CITY OF PARAMOUNT – PLANNING DEPT.
16400 COLORADO AVENUE
PARAMOUNT, CA 90723
Exempt from recording fee pursuant to Government Code Section 27383
GRANT DEED
EXHIBIT F
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF PARAMOUNT, a municipal corporation of the State of California, herein called “Grantor”, acting to carry out the public purposes of that certain Disposition and Development Agreement dated as of May 28, 2024 (“the Agreement”), by and between the Grantor and HABITAT FOR HUMANITY OF GREATER LOS ANGELES, INC. a California nonprofit public benefit corporation, herein called “Grantee”, hereby grants to Grantee certain real property, hereinafter referred to as the “Property”, described in the document attached hereto labeled Exhibit 1 and incorporation herein by this reference. (1) Grantor exempts and reserves any existing street, proposed street, or portion of any street or proposed street lying outside the boundaries of the Property which might otherwise pass with a conveyance of the Property. (2) Grantor further exempts and reserves all oil, gas, hydrocarbon substances and minerals of every kind and character, together with the right to drill into, through, and to use and occupy all parts of the Site lying more than 500 feet below the surface thereof for any and all purposes incidental to the exploration of and production of oil, gas hydrocarbon substances or minerals from said Site or other lands, but without however, any rights to use either the surface of the Site or any portion thereof within 500 feet of the surface for any purpose or purposes whatsoever, to the extent reserved by the parties named in deeds, leases and other documents of record.
(3) Said Property is conveyed in accordance with and subject to the Disposition and Development Agreement (the “Agreement”) entered into by and between Grantor and Grantee on May 28, 2024, of which documents are public records on file in the offices of the City Clerk of the City of Paramount and the City Clerk of Grantor. (4) Grantee hereby covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Property that Grantee, shall develop, maintain, and use the Property only as specified in the applicable provisions of the Agreement, and this Grant Deed, whichever document is more restrictive.
Exhibit F Grant Deed FINAL
Exhibit F Grant Deed FINAL 2
(5) Prior to the recordation of a Certificate of Completion issued by Grantor for the improvements to be performed on the Property, as provided in Section 3.17 of the Agreement, Grantee shall not make any sale, transfer, conveyance or assignment of the Property or any part thereof or the buildings or structures thereon, and Grantee shall not place or suffer to be placed on the Property any lien or encumbrances other than as permitted under terms of the Agreement.
(6) Grantee covenants and agrees for itself, its successors, its assigns, and all persons claiming under or through them that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall Grantee itself, or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property. The foregoing covenants shall run with the land and shall remain in effect in perpetuity.
(7) All deeds, leases, or contracts pertaining to the sale, lease, sublease, rental, transfer, use, occupancy, tenure, or enjoyment of the Property, improvements thereon, or any part thereof. Shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(a) In deeds: “The Grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land.” (b) In leases: “The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, familial status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure, or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased.”
(c) In contracts: “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, sex, marital status, Exhibit F Grant Deed FINAL 3
disability, sexual orientation, familial status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the land.”
(8) Pursuant to Section 6.8 of the Agreement, Grantor has the right to reenter, repossess, terminate and revest in Grantor the estate granted to Grantee hereunder in the event of certain events or occurrences prior to the recordation of the Certificate of Completion pursuant to Section 3.17 of the Agreement. Reference is made to the Agreement for a complete description of the rights of Grantor and Grantee in this regard. (9) All conditions, covenants, and restrictions contained in this Grant Deed shall be covenants running with the land, and shall, in any event, and without regard to technical classification or designation, legal or otherwise, be, to the fullest extent permitted by law and equity, binding for the benefit and in favor of, and enforceable by Grantor, its successors and assigns, and the City of Paramount and its successors and assigns, against Grantee, its successors and assigns, to or of the Property conveyed herein or any portion thereof or any interest therein, and any party in possession occupancy of said Property or portion thereof.
(10) In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that Grantor shall be deemed a beneficiary of the agreements and covenants provided hereinabove both for and in its own right and also for the purposes of protecting the interest of the community. All covenants shall be in force and effect, without regard to whether Grantor is or remains an owner of any land or interest therein to which such covenants relate. Grantor shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions at law or suit in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant.
(11) No violation or breach of the covenant, conditions, restrictions, provisions, or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest permitted by paragraph 5 of this Grant Deed; provided, that such conditions, restrictions, limitation, and provisions shall be binding on any owner, whether such owner’s title was acquired by foreclosure, deed in lieu of foreclosure, trustee’s sale, or otherwise. (12) None of the terms, covenants, or conditions in the Agreement, or otherwise agreed upon in writing in other instructions between the parties to this Grant Deed with respect to obligations to be performed, kept, or observed by Grantee or Grantor in respect to said Property or any part thereof after this conveyance of said Property shall be deemed to be merged with this Grant Deed.
(13) The covenants contained in this Grant Deed shall be construed as covenants running with the land and not as conditions which might result in forfeiture of title.
Exhibit F Grant Deed FINAL
IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be executed on their behalf by their respective offices hereunto duly authorized this day of , 2024.
GRANTOR-CITY
CITY OF PARAMOUNT
a municipal corporation
By: Exhibit – Do Not Sign
Isabel Aguayo
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Counsel to Grantor
John E. Cavanaugh
City Attorney
GRANTEE-DEVELOPER
HABITAT FOR HUMANITY OF GREATER LOS
ANGELES, a California nonprofit public benefit
corporation
By: Exhibit – Do Not Sign
Erin Rank
President & CEO
Exhibit F Grant Deed FINAL EXHIBIT 1
EXHIBIT 1 TO GRANT DEED
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Los Angeles, City of Paramount and described as follows:
The Southwesterly 65 feet, measured on the Southeast line of Lot 55, Division 116, Region 54 of Official
Maps, in the City of Paramount, County of Los Angeles, State of California, as per Map in Book 4, Pages
5 and 6 of Maps, in the Office of the County Recorder of said County.
APN: 7101-011-900
(End of Legal Description)
Exhibit G - Declaration FINAL
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Paramount
16400 Colorado Avenue
Paramount, CA 90723
Attn.: City Manager
Exempt from recording fees pursuant
to Government Code Sec. 27383
Space above line for Recorder’s use only
DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS
(WITH AFFORDABLE HOUSING COVENANTS)
This DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS (this “Declaration”) is made as of __________, 2024 by and between HABITAT FOR HUMANITY OF GREATER LOS ANGELES, a California nonprofit public benefit corporation (“Developer”) and the CITY OF PARAMOUNT, a municipal corporation and charter city (“City”).
RECITALS
A. City and Developer have entered into that certain Disposition and Development Agreement dated as of March 26, 2023 (the “DDA”), which is incorporated herein by this reference, for the purpose of developing affordable housing. Concurrently herewith, and pursuant to the DDA, the City is conveying to Developer the real property located at 16305 Hunsaker Avenue, Paramount, California, described in the Legal Description attached as Exhibit A (the “Property”). The Property is currently improved with two buildings. Capitalized terms not defined herein shall have the meaning set forth in the DDA.
B. Developer has agreed to acquire ownership of the Property and construct two (2) homeownership units on the Property (each, a “Unit”), and to restrict the sale of one of the units in accordance with certain covenants, conditions and restrictions as set forth herein (the “Affordable Unit”). This Declaration is intended to ensure that Developer, its successors and assigns, and every successor in interest to the Affordable Unit or any part thereof on behalf of itself and its successors and assigns, shall occupy and sell the Affordable Unit in accordance with the terms and conditions of this Declaration.
C. The development and restriction of the sale of the Affordable Unit to a Qualified Buyer (the “Project”) pursuant to the terms and conditions of this Declaration are in accordance with the purpose of improving communities through affordable and safe housing and applicable provisions of state and local laws.
D. Capitalized terms shall have the meanings set forth in Section 11 of Article III.
Exhibit G - Declaration FINAL 2
AGREEMENT
NOW, THEREFORE, the parties hereto agree and covenant as follows:
ARTICLE I
NONDISCRIMINATION
Section 1. Nondiscrimination. Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Properties, or any part of it, nor shall the Developer or any person claiming under or through it, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property, including the Affordable Unit, or any portion thereof. The foregoing covenants shall run with the land.
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
Section 2. Nondiscrimination Clauses. Developer shall refrain from restricting the sale of the Affordable Unit on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code. All such deeds, leases, contracts or subcontracts shall contain or be subject to substantially the following nondiscrimination and nonsegregation clauses:
a. In deeds: “In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed.
The foregoing covenants shall run with the land.”
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section Exhibit G - Declaration FINAL 3
12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
b. In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
a. In contracts: “There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in connection with the performance of this contract nor shall the contracting party himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, contractors, subcontractors or vendees with respect to the premises.”
Notwithstanding the foregoing paragraph, with respect to familial status, the foregoing paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the foregoing paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the foregoing paragraph.
The covenants in this Article I shall run with the Property in perpetuity.
Exhibit G - Declaration FINAL 4
ARTICLE II
GENERAL DUTIES OF DEVELOPER
Section 1. Maintenance. Developer, or its successor in interest, shall maintain the Property and all of the improvements thereon in good condition and in accordance with the terms and conditions of the DDA and in conformity with all applicable Governmental Regulations, including, without limitation, the City of Paramount Municipal Code.
Section 2. No Nuisance. Developer shall not maintain, cause to be maintained, or allow to be maintained on or about the Property any public or private nuisance, including without limitation, the conduct of criminal activities set forth in the nuisance abatement provisions of the Uniform Controlled Substances Act (Health & Safety Code Sections 11570, et seq.) or the Street Terrorism Enforcement and Prevention Act (Penal Code Sections 186.22 et seq.) or any successor statute or law.
Section 3. Construction of the Project. Developer shall complete the construction of the Affordable Unit on the Property in a timely manner and in accordance with the DDA and all applicable laws, regulations and entitlements. No demolition or construction activities shall be undertaken on the Property without a validly issued building permit in accordance with the requirements of the City of Paramount Municipal Code.
Section 4. No Hazardous Materials Activity. Developer shall not engage in any Hazardous Substance Activity in violation of Environmental Laws and shall comply with all Governmental Regulations in connection with the development of the Affordable Units.
In addition, Developer shall take all necessary precautions to prevent the release into the environment of any Hazardous Substance which are located in, on or under the Property` in violation of Environmental Laws. Such precautions shall include compliance with all Governmental Regulations with respect to any Hazardous Substance. In addition, Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards with respect to the disclosure, storage, use, removal and disposal of Hazardous Substance. Notwithstanding the foregoing, this Declaration shall not prohibit the use of such products in quantities as are customarily used in the construction, maintenance, rehabilitation or management of residential developments or associated buildings and grounds, or used in residential activities in a manner typical of other comparable residential developments, or substances commonly ingested by a significant population living within the Project including without limitation alcohol, aspirin, tobacco and saccharine.
ARTICLE III
AFFORDABLE HOUSING OBLIGATIONS
Section 1. Affordable Unit. Developer acknowledges that the purpose of City’s transfer of the Property is to encourage affordable homeownership among Low and Moderate Income Households. Pursuant to such purpose, Developer covenants and agrees to construct on the Property and make available and sell, the Affordable Unit to a Qualified Buyer at an Affordable Sales Price consistent with applicable requirements of the DDA and this Declaration.
Exhibit G - Declaration FINAL 5
Section 2. Sale of Affordable Unit. Developer covenants and agrees to make available and sell the Affordable Units solely to a Qualified Buyer at an Affordable Sales Price.
Section 3. Maximum Sales Price. Developer covenants and agrees that the Affordable Unit shall be sold at an Affordable Sales Price; provided, however, that the maximum sales price for the Affordable Unit shall not exceed the fair market value of the unit.
Section 4. Selection of Buyers. Developer shall be responsible for the selection of a Qualified Buyer for the Affordable Unit constructed on the Property. Developer shall ensure that the Affordable Unit is sold in compliance with the income eligibility and other criteria set forth herein.
Section 5. Income of Buyer. Developer shall obtain an income computation and certification form completed by the prospective buyer of the Affordable Unit, together with a copy of all back-up supporting information, demonstrating that the Household qualifies as a Low Income Household or Moderate Income Household. Developer shall not transfer title to the Affordable Unit to the prospective buyer until Developer has confirmed that the Household qualifies as a Qualified Buyer. Developer shall perform a computation demonstrating that the Affordable Unit will be sold to the prospective buyer at an Affordable Sales Price with financing that results in an Affordable Housing Cost. Developer shall verify the income certifications and computations as provided by the proposed buyer.
Developer shall obtain at least one of the following, as appropriate to the Household of the proposed buyer(s);
a) Two (2) paycheck stubs from the proposed purchaser’s two (2) most recent pay periods (and the same from any other member of the Household eighteen (18) years old or older);
b) A true copy of an income tax return from the proposed purchaser for the most recent tax year in which a return was filed (and the same from any other member of the Household eighteen (18) years old or older).;
c) An income verification certification from the employer of the proposed purchaser and any other member of the Household eighteen (18) years old or older;
d) An alternate form of income verification if none of the above forms of verification is available.
Section 6. Term of Covenants. This Declaration shall be reconveyed and released as to the Affordable Unit upon the sale of such Affordable Unit to a Qualified Buyer. Upon such sale, Developer and each Qualified Buyer of an Affordable Unit shall enter into a declaration that requires that the resale of such Affordable Unit by the Qualified Buyer is restricted to resale exclusively to Eligible Purchasers at an Affordable Resale Price until such date as is forty-five (45) years from the date of the initial sale of the Affordable Unit to the Qualified Buyer by Developer (the “Habitat/Buyer Declaration”).
Exhibit G - Declaration FINAL 6
Section 7. Owner Occupancy. The Habitat/Buyer Declaration shall provide that each Affordable Unit is restricted to occupancy by the owners of the Affordable Unit. Developer covenants and agrees to disclose such restriction to Qualified Buyers of the Affordable Unit and obtain written acknowledgement of receipt of such disclosure.
Section 8. Disclosure Requirements. Prior to the execution of a purchase and sale agreement between Developer and any purchaser of an Affordable Unit, Developer shall disclose in writing to each Qualified Buyer the fact that the Property is burdened by the requirements stated in this Declaration, which will remain in effect for the term described herein.
Section 9. Resale Restriction. The Habitat/Buyer Declaration shall provide that the Affordable Unit may be sold by a Qualified Buyer or subsequent Eligible Purchaser during the Affordability Period only to an Eligible Purchaser at an Affordable Resale Price.
Section 10. Financing Resulting in an Affordable Housing Cost. Developer shall sell each Affordable Unit to a Qualified Buyer only with financing resulting in Affordable Housing Cost. For purposes hereof, financing resulting in an Affordable Housing Cost means that the Affordable Sales Price of the Affordable Unit will be paid with a down payment plus one or more mortgages secured by a deed of trust, provided that Affordable Monthly Housing Expenses shall not exceed Affordable Housing Cost. With respect to financing to be obtained by the initial Qualified Buyer, it is contemplated that the Qualified Buyer will obtain a first mortgage from a third party bank lender resulting in Affordable Monthly Housing Expenses not to exceed Affordable Housing Cost. Additionally, the Qualified Buyer may obtain CalHOME, HOP or WISH loans or similar grants or loans from programs available to the Qualified Buyer, if any. Any difference between the Affordable Sales Price of the Affordable Unit and the total of the down payment, first mortgage, and any grants or loans received will be paid with a loan from Developer secured by a subordinate position deed of trust requiring no periodic payments of principal or interest.
Section 11. Definitions. For purposes hereof:
“Affordability Period” means the period commencing upon the closing of escrow for the sale of the Affordable Unit by Developer to a Qualified Buyer and terminating no earlier than the forty fifth (45th) anniversary of the sale of the Affordable Unit to a Qualified Buyer. “Affordable Housing Cost” means, for Low Income Households, the monthly debt service payment on a third-party purchase money mortgage used to purchase an Affordable Unit, which will result in Affordable Monthly Housing Expenses that do not exceed an “affordable housing cost” for the appropriate income level as calculated pursuant to Health and Safety Code Section 50052.5(b). In addition, for any Lower Income Household that has a Gross Income that equals or exceeds seventy percent (70%) of the area median income adjusted for actual family size, the monthly debt service payment on a third party purchase money mortgage used to purchase an Affordable Unit shall result in Affordable Monthly Housing Expenses that do not exceed thirty percent (30%) of the monthly Gross Income of the Household. The term “adjusted for family size appropriate to the unit” shall have the meaning set forth in Health and Safety Code Section 50052.5(h) or its successor statute(s).
For Moderate Income Households, the monthly debt service payment on a third party purchase money mortgage used to purchase an Affordable Unit, which will result in Exhibit G - Declaration FINAL 7
Affordable Monthly Housing Expenses that do not exceed an “affordable housing cost” for the appropriate income level as calculated pursuant to the Health and Safety Code. “Affordable Monthly Housing Expenses” means aggregate monthly housing expenses that include all of the following associated with the Affordable Unit, estimated or known as of the date of the proposed purchase of the Affordable Unit: (i) principal and interest payments on a mortgage loan(s) including any loan insurance fees associated therewith (a first lien mortgage loan is required hereunder to bear a fixed rate of interest and require level payments throughout its thirty (30) year term); (ii) property taxes and assessments; (iii) fire and casualty insurance covering replacement value of property improvements; (iv) any homeowner association fees; (v) a reasonable utility allowance; and (vi) estimated property maintenance and repairs. “Affordable Resale Price” means the sales price to be used when a Qualified Buyer sells an Affordable Unit to an Eligible Purchaser and means a price equal to the total of (i) any second or third mortgage assistance procured or assumed by the buyer that does not require periodic payment of principal and interest, plus (ii) the amount of a first mortgage which results in an Affordable Housing Cost to the buyer, plus (iii) the amount of the down payment to be made by the buyer. The Affordable Resale Price may equal but shall not exceed the fair market value of the Affordable Unit.
“Affordable Sales Price” means the sales price of an Affordable Unit to a Qualified Buyer which may equal but shall not exceed the fair market value of the Unit. The Affordable Sales Price shall be paid by a down payment plus one or more mortgages secured by a deed of trust (including, without limitation, a purchase money first mortgage loan, any grants or subordinate loans received by the Qualified Buyer, and/or a subordinate loan from Developer), provided that principal and interest payments on the mortgages plus ownership costs shall not exceed an Affordable Housing Cost.
“Affordable Unit Closing” means the closing of an escrow conveying title to the Affordable Unit to a Qualified Buyer at an Affordable Sales Price. “Affordable Unit” means the newly constructed residential unit in the Project which shall be available to, occupied by or held for sale exclusively to a Qualified Buyer at an Affordable Sales Price.
“Eligible Purchaser” means a household purchasing an Affordable Unit upon resale of the Affordable Unit by the Qualified Buyer or a subsequent Eligible Purchaser, which such household must (a) qualify as a Low Income Household or Moderate Income Household, and (b) meet the other requirements set forth herein for buyers of an Affordable Unit, including, without limitation, the requirement that the buyer(s) agree to occupy the Affordable Unit as their primary residence and restrict the sale of the Affordable Unit to Eligible Purchasers at an Affordable Resale Price for the remaining term of the Affordability Period. “Gross Income” shall mean the total annual gross income of all members of a Household 18 and over, determined in accordance with Section 6914 of Title 25 of the California Code of Regulations.
“Household” means one or more persons purchasing or occupying an Affordable Unit.
Exhibit G - Declaration FINAL 8
“Low Income Household” means a Household whose annual Gross Income does not exceed the California state income limits for a “Low Income” Household (as defined in Health and Safety Code Section 50079.5 for Los Angeles County), adjusted for actual Household size, as published annually by HCD pursuant to Health and Safety Code Section 50093. “Moderate Income Household” means a Household whose aggregate gross annual income does not exceed state income limits published by HCD for Los Angeles County for a “Moderate Income” household in compliance with Health and Safety Code Section 50093, as adjusted for actual household size, as published annually by HCD pursuant to Health and Safety Code Section 50093.
“Qualified Buyer” means a Household (a) whose income does not exceed the income for a Low Income Household or Moderate Income Household when qualified in accordance with the terms of this Agreement, (b) whose members qualify as a First Time Homebuyer, (c) whose members have contributed at least one hundred twenty five (125) hours of “sweat equity” towards development of a Unit in the Project or another affordable housing project meeting the Developer’s Sweat Equity Policy, and (d) whose members meet the other requirements set forth herein for buyers of an Affordable Unit, including, without limitation, the requirement that the buyer(s) agree to occupy the Affordable Unit as their primary residence and restrict the sale of the Affordable Unit to Eligible Purchasers at an Affordable Resale Price for the Affordability Period.
Section 12. Owner Occupancy. Developer shall require each Qualified Buyer to agree that they will occupy the Affordable Unit as their primary residence during the Affordability Period. The Habitat/Buyer Declaration shall provide that Developer’s attempt to rent or actual rental of the Affordable Unit or any portion thereof for any purpose during the Affordability Period shall entitle Developer or City to exercise all available legal and equitable remedies under the Habitat/Buyer Declaration.
It is expressly understood, acknowledged, and covenanted by the Developer for itself, its successors and assigns, that the Affordable Unit or any part thereof shall only be used and maintained as an owner-occupied residential unit. Therefore, the Qualified Buyer and any Eligible Purchaser, its successor or its assigns, shall not rent, lease, or sublease the Affordable Unit (including any improvement or fixture thereto), or otherwise transfer or attempt to transfer a tenancy or leasehold interest in the Affordable Unit (including any improvement or fixture thereto) or any part thereof.
ARTICLE IV
ENFORCEMENT
Section 1. Remedies. Subject to the notice and cure rights of the Developer set forth in the DDA, in the event of default or breach of any of the terms or conditions of this Declaration by Developer, City may pursue the remedy thereof by any and all means of enforcement, both in equity and at law, as provided by the laws of the State of California, including, but not limited to, injunctive relief and/or specific performance.
By way of example and not limitation, if any default, breach or violation is not cured to the satisfaction of City within the applicable cure period, City may declare a default hereunder and may take any one or more of the following actions:
Exhibit G - Declaration FINAL 9
(a) Collect all rents and income in connection with the sale or lease of the Affordable Unit, if any, and use the same and the reserve funds for the construction, sale, operation and maintenance of the Affordable Unit. (b) Take possession of the Affordable Unit and bring any action necessary to enforce any rights of the City growing out of the construction or sale of the Affordable Unit, and construct and sell the Affordable Unit in accordance with the terms of this Declaration until such time as City, in its sole discretion, shall determine that the Developer is again in a position to resume construction and sale of the Affordable Unit in accordance with the terms of this Declaration.
(c) Apply to any court, state or federal, for specific performance of this Declaration or for the appointment of a receiver to take over and construct, operate and sell the Affordable Unit in accordance with the terms of this Declaration, or for such other relief as may be appropriate. It is agreed by the Developer that the injury to City arising from a default under any of the terms of this Declaration would be irreparable and that the amount of compensation which would provide adequate relief to City, in light of the purposes and requirements of the programs applicable to the Affordable Unit, would be impossible to ascertain. (d) Seek such other appropriate remedies as may be available under applicable law.
In the event that the breach or violation involves selling the Affordable Unit for a price in excess of an Affordable Sales Price or other charges in excess of those permitted under this Declaration, City may demand the return of such excess proceeds or other charges to the affected households.
The remedies of City hereunder and under the DDA are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by City of any one or more of its other remedies.
Section 2. Rights of City. As a party to this Declaration, City is entitled to the following rights:
a. City has the right, but not the obligation, to enforce all of the provisions of this Declaration.
b. Any amendment to the Declaration shall require the written consent of City.
c. This Declaration does not in any way infringe on the right or duties of the City of Paramount to enforce any of the provisions of its Municipal Code including, but not limited to, the abatement of dangerous buildings.
Section 3. Cumulative Remedies. The remedies herein provided for breach of the covenants contained in this Declaration shall be deemed cumulative, and none of such remedies shall be deemed exclusive.
Exhibit G - Declaration FINAL 10
Section 4. Failure to Enforce. The failure to enforce any of the covenants contained in this Declaration shall not constitute a waiver of the right to enforce the same thereafter.
Section 5. Third Party Beneficiary. This Declaration is made and entered into for the sole protection and benefit of the City and its respective successors and assigns, and Developer, and its permitted successors and assigns, and no other person or persons shall have any right of action hereon.
ARTICLE V
GENERAL PROVISIONS
Section 1. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in all force and effect.
Section 2. Construction. The provisions of this Declaration shall be liberally construed for the purpose of developing and maintaining the Affordable Unit and restricting the sale of the Affordable Unit in accordance with this Declaration and the DDA. The article and section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction.
Section 3. Amendments. This Declaration may be amended only by the written agreement of Developer and City.
Section 4. Notices. Any notice permitted or required to be delivered as provided herein from one party to another shall be in writing and may be delivered either personally, via messenger, or by certified or registered mail. If delivery is made by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of same has been deposited in the United States Mail, postage prepaid. Notices to Developer shall be sent to Habitat for Humanity, 8739 Artesia Blvd., Bellflower, CA 90706, Attn: President. Notices to City shall be sent to City of Paramount, 44933 N. Fern Avenue, Paramount, California 93534, Attention: City Manager. Such addresses may be changed from time to time by notice in writing, which shall be made by certified mail to the other party in accordance with this Section 4.
Section 5. Term of Declaration. This Declaration shall be reconveyed and released by City as to the Affordable Unit upon the sale of such Affordable Unit to a Qualified Buyer. [Signatures on Next Page]
Exhibit G - Declaration FINAL
IN WITNESS WHEREOF, City and Developer have executed this Declaration as of the date set forth above.
CITY OF PARAMOUNT
By: Exhibit – Do Not Sign
Signature Date Isabel Aguayo
Mayor
ATTEST:
________________________
City Clerk
APPROVED AS TO FORM:
________________________
John E. Cavanaugh
City Attorney
DEVELOPER
HABITAT FOR HUMANITY OF GREATER LOS
ANGELES
By: Exhibit – Do Not Sign
Signature Date Erin Rank, President and CEO
[SIGNATURE PAGE TO DECLARATION]
Exhibit G - Declaration FINAL EXHIBIT A
EXHIBIT A
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Los Angeles, City of Paramount and described as follows:
The Southwesterly 65 feet, measured on the Southeast line of Lot 55, Division 116, Region 54 of Official Maps, in the City of Paramount, County of Los Angeles, State of California, as per Map in Book 4, Pages 5 and 6 of Maps, in the Office of the County Recorder of said County.
APN: 7101-011-900
(End of Legal Description)
Exhibit G - Declaration FINAL
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary (Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
Exhibit G - Declaration FINAL
STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary (Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
Exhibit H Certificate of Completion FINAL
Exhibit H
RECORDED AT THE REQUEST
OF AND WHEN RECORDED
RETURN TO:
City of Paramount
16400 Colorado Avenue
Paramount, CA 90723
Attn: Planning Department
_____________________________________________________________________ SPACE ABOVE THIS LINE FOR
RECORDING USE
CERTIFICATE OF COMPLETION
WHEREAS, by a Disposition and Development Agreement (hereinafter referred to as the "Agreement") dated as of May 28, 2024, by and between the CITY OF PARAMOUNT (hereinafter referred to as "City"), and HABITAT FOR HUMANITY OF GREATER LOS ANGELES, a California nonprofit public benefit corporation, (hereinafter referred to as "Developer"), Developer has developed the real property (the "Site"), legally described on Attachment 1 hereto, according to the terms and conditions of said Agreement; and
WHEREAS, pursuant to Section 3.17 of the Agreement, promptly after completion of all construction work to be completed by Developer upon the Site, City shall furnish Developer with a Certificate of Completion upon written request therefore by Developer; and
WHEREAS, the issuance by City of the Certificate of Completion shall be conclusive evidence that Developer has complied with the terms of the Agreement pertaining to the development of the Site; and
WHEREAS, Developer has requested that City furnish Developer with the Certificate of Completion; and
WHEREAS, City has conclusively determined that the development of the Site has been satisfactorily completed as required by the Agreement.
NOW, THEREFORE:
1. As provided in the Agreement, City does hereby certify that development of the Site has been fully and satisfactorily performed and completed, and that such development is in full compliance with said Agreement.
Exhibit H Certificate of Completion FINAL 2
2. This Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance construction work on the Site, or any part thereof. Nothing contained herein shall modify in any way any other provision of said Agreement.
3. This Certificate of Completion is not a notice of completion as referred to in California Civil Code Section 3093.
IN WITNESS WHEREOF, City has executed this Certificate as of this day of , .
CITY OF PARAMOUNT
By: Exhibit – Do Not Sign
Isabel Aguayo, Mayor
Exhibit H Certificate of Completion FINAL ATTACHMENT 1
ATTACHMENT 1
SITE LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Los Angeles, City of Paramount and described as follows:
The Southwesterly 65 feet, measured on the Southeast line of Lot 55, Division 116, Region 54 of Official Maps, in the City of Paramount, County of Los Angeles, State of California, as per Map in Book 4, Pages 5 and 6 of Maps, in the Office of the County Recorder of said County.
APN: 7101-011-900
(End of Legal Description)
To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: May 28, 2024
SUBJECT: AMENDMENT NO. 2 TO AGREEMENT WITH ATHENS SERVICES FOR
INTEGRATED SOLID WASTE MANAGEMENT SERVICES AND
APPROVAL OF THE MODIFICATION OF FEES AND CHARGES FOR
PICK-UP AND HAULING OF REFUSE WITHIN THE CITY OF
PARAMOUNT
BACKGROUND
The City has utilized an exclusive franchise agreement for over 40 years with CalMet Services (CalMet), which included regularly scheduled collection and processing of trash, recyclables, organic waste, and household services such as bulky item pick-up. Over the years, the franchise agreement and services have evolved through various contract amendments, reinstated agreement and recently the contract assignment from CalMet to Athens Services (Athens) in 2022, given the recent acquisition of CalMet by Athens.
Under Senate Bill (SB) 1383, cities are required to implement programs that reduce the amount of organic waste (mostly food waste) that goes to landfills. In order to implement all of the requirements of SB 1383 and keep the City of Paramount compliant with this State law, Athens is requesting modifications to the existing refuse hauling agreement.
This request also includes rate adjustments due to the annual Consumer Price Index (CPI) and reflects costs associated with providing recycling and waste reduction programs to Paramount residents and businesses.
Attached to this report is an extensive amendment to the exclusive franchise agreement for refuse hauling that enhances the City’s recycling and waste reduction programs.
Additionally, attached is Resolution No. 24:013 approving the new rate schedule for residential and commercial refuse/recycling programs.
DISCUSSION
As required by SB 1383, jurisdictions are required to provide organic waste collection services to all customers. In 2022 through 2023, staff worked closely with Athens to roll out the residential portion of the State of California’s mandated organics waste recycling program. This State-mandated program inevitably resulted in an increase of costs for processing residential green waste, as the food waste is comingled with the residential Agenda Report May 28, 2024
REFUSE AGREEMENT AND FEES AND CHARGES Page 2
green waste. As part of this effort, staff worked with Athens to determine start-up costs for the final roll out of the residential program, which has since been incorporated into the residential rate for solid waste services. However, these rates only covered a portion of the disposal component and not all required SB 1383 programming, such as route audits and outreach education. Moreover, this effort did not include an automatic commercial food waste program. Processing the commercial food waste stream is very costly and will require many program components to successfully keep Paramount compliant with SB 1383. The proposed agreement amendment and accompanying rates reflect this challenge.
In order to implement all of the requirements of SB 1383, Athens is requesting modifications to the existing agreement that will also include rate adjustments due to the annual Consumer Price Index (CPI) and program costs. As part of the proposed rate adjustment for commercial accounts, rates will capture costs associated with a newly introduced bundled structure. This will facilitate the automatic roll out of an organics program for all commercial customers, including multi-family properties of five units or more. As mentioned above, the City’s solid waste franchise agreement with Athens authorizes annual rate increases. As proposed, the commercial rate adjustment will incorporate all costs related to CPI, as well as costs associated with recycling services, including organics.
Proposed Contract Modifications
As part of negotiations, the proposed amendment to the agreement with Athens Services will cover the following modifications:
• Roll-Out of Commercial Food Waste Program: As outlined by SB 1383, all residential and commercial properties are required to now follow a sort-separated collection service for the disposal of generated waste. At this time, most of SB 1383 related activities have already been rolled out for residential customers leaving commercial customers, including multi-family households (properties of five units or more), out of compliance with this State mandate. The addition of the automatic bundle rate will bring the commercial customers up to par with what has been outlined in SB 1383. • Street Sweeping: Under this agreement amendment, staff negotiated a provision that requires Athens to provide and manage street sweeping services at no additional cost.
• Bulky Item Collection for Multi-family Residences: Currently, residents in multi-family households (properties of five units or more) do not receive free bulky item collection service. As a result, the City negotiated the inclusion of one (1) free bulky item pickup of up to five items per collection, per year for each multi-family household.
Agenda Report May 28, 2024
REFUSE AGREEMENT AND FEES AND CHARGES Page 3
• Additional Collection Service of Street/Bus Stop Trash Cans: Also included is an additional day of collection service of City trash cans located on our major boulevards. The additional service day will assist with maintaining City streets free of trash and debris.
• Term of Contract: Another major change is to the term of the agreement, which will establish a “rolling contract”. This means that the contract will automatically renew itself for a period of fifteen (15) years. It is important to note that the amendment will include a clause that would allow the City to terminate the contract for cause (lack of performance, non-compliance with laws, etc.), which would instead trigger a shorter term, i.e. two (2) years. If approved, the new agreement expiration date will be April 9, 2039. However, given the “rolling contract” term, that date will continue to add a year annually.
• Rate Adjustment Effective Date: As currently structured, rate adjustments go into effect in April of every year. This proposed modification intends to align the rate adjustment effective date to July 1st of every year, which will coincide with our fiscal year.
Basis for Rate Increase
Consumer Price Index: The City’s agreement with Athens states that the CPI to be used in reference to the rate increase request is the Consumer Price Index for Trash and Garbage Collection, U.S. City average, as published by the United States Department of Labor Statistics, Bureau of Labor Statistics from September 2022 to September 2023.
During this period, there was an increase of 6.9% in the CPI. An increase in the CPI also suggests increases in the cost of operating a business.
Commercial Food Waste Recycling: Identical to the efforts tackled last year for residential food waste recycling, the State of California’s mandated organics waste recycling program is also applicable to commercial customers. As a result, this State-mandated program has inevitably caused an increase in the costs for processing green waste, as the food waste is comingled in the green waste containers. To continue the roll out of the State-mandated program, staff will be working closely with Athens to ensure that all commercial customers, including multi-family (five units or more) properties, are subscribed to the proper levels of service.
Mixed Waste Recycling: Prior to SB1383, commercial accounts could comply with the State mandated recycling requirements by comingling waste into a bin and having the hauling company separate the materials at a Materials Recovery Facility (MRF). SB1383 eliminated that option and now requires the source separation of materials at the commercial establishment. This means that, similar to residential accounts, all commercial accounts are required to have three containers: one container for trash, one for recycling, and one for organics.
Agenda Report May 28, 2024
REFUSE AGREEMENT AND FEES AND CHARGES Page 4
Proposed 2024 Residential Trash Collection Rates
For residential customers, Athens is requesting a $1.82 increase per month, to cover CPI adjustments as well as the full implementation of SB1383 requirements. Understanding the continued financial circumstances faced within our community after the COVID-19 pandemic, the City recommends continuing to use a portion of its Assembly Bill (AB) 939 funds (recycling funds) and recently received SB1383 grant funds, to partially fund the costs associated with maintaining the Residential Food Waste Recycling Program. This subsidy ($1.00) by the City would continue to minimize the impact on the residential rate in 2024. It should be noted that this year, the City successfully secured grant funding from CalRecycle via Senate Bill (SB) 1383, which will offset the majority of this cost.
The estimated cost of this subsidy to the City from July 1, 2024, through June 30, 2025, is $79,548. Of the total grant funding the City will receive via SB 1383, $75,000 has been approved towards the use of this subsidy for residential customers. As a result, it is anticipated that no more than $5,000 will be expended out of the City’s AB 939 account.
Attached is a chart demonstrating where Paramount’s residential trash rates stand in comparison to other cities in the region, and where it would stand if this rate increase were approved. It is important to note that some cities are currently in the process of updating their rates, as part of contract conditioned annual rate adjustments and full SB1383 implementation.
Proposed 2024 Commercial Trash Collection Rates
Commercial accounts (which include businesses, industrial, and multi-family properties of 5 units or more), generate nearly 74% of the City’s trash – approximately 32,664 tons disposed annually. For these accounts, rates differ depending on the bin size used by the customer and the frequency of collection requested per week. Similar to residential accounts, Athens is requesting a CPI increase and a restructuring of commercial trash services to include bundled rates in order to bring commercial accounts into compliance with SB 1383 mandates. These bundle rates will include the following default services, which can later be adjusted based on specific customer service level needs:
- One 3-yard bin (trash) – to be serviced once per week - One 1.5 yard bin (Recycling) – to be serviced once per week - One 95 gallon cart (Organics) – to be serviced once per week As part of the new bundled service structure for rates, monthly rates for service will capture the cost for trash, recycling, and organics collection as one fee. Attached is a chart demonstrating where Paramount’s commercial rates stand in comparison to other cities in the region, and where it would stand if this rate increase were approved. It is important to note that some cities are currently in the process of updating their rates, as part of contract conditioned annual rate adjustments and full SB1383 implementation.
Agenda Report May 28, 2024
REFUSE AGREEMENT AND FEES AND CHARGES Page 5
Resolution No. 24:013 approving the request for an increase in trash rates for residential and commercial accounts is attached. If approved, the residential rate increase would go into effect July 1, 2024, and the commercial rate would go into effect August 1, 2024.
Also attached is Amendment No 2 modifying the current contract term with Athens. The amendment also includes a provision for commercial rate adjustments for the following 7 years and is outlined below:
From July 1, 2025 to July 1, 2028
- CPI plus 1%; and
- Supplemental adjustment of 4.75% - combined maximum annual cap of 7% - Any adjustment exceeding the 7% cap will be automatically rolled over to the next year within the 4-year period.
From July 1, 2029 to July 1, 2031
- CPI plus 1%; and
- Rollover (if applicable) - combined maximum annual cap of 7% July 1, 2032
- CPI + 1%; and
- Rollover (if applicable) - subject to meet and confer
FISCAL IMPACT
There is no fiscal impact to the City.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 6: Efficient, Effective, and Fiscally Responsible - Deliver an efficient and effective City government in a fiscally responsible, transparent and collaborative manner.
RECOMMENDED ACTION
A) Approve Amendment No. 2 to the Amended and Restated Agreement between the City of Paramount and Arakelian Enterprises. CBA Athens Services for Integrated Solid Waste Management Services, subject to final approval by the City Attorney in connection with indemnification provisions.
B) Read by title only and adopt Resolution No. 24:013 approving the modification of fees and charges for pick-up and hauling of refuse within the City.
Survey of Residential Rates
NOTE: Some cities have not yet negotiated their 2024 rates. These cities will likely experience a rate increase in the upcoming months.
Residential Rates as of 3/13/2024
City Hauler Monthly
Rate
Santa Fe Springs CR&R, Serv-Wel & Republic $34.88
Lomita Athens $33.18
Lynwood Waste Resources $30.56
Pico Rivera NASA $30.53
Downey Athens $29.37
Bellflower CR&R $29.13
Whittier Athens & Republic $28.79
Lakewood EDCO $26.60
Artesia CR&R $26.29
Paramount (recommended) Athens $26.07
Norwalk Athens $25.81
Cerritos Athens $24.76
South Gate Universal Waste Systems $24.21
Paramount (current) Athens $24.25
Paramount (current with City Subsidy) Athens $23.25
Survey of Commercial Rates
3 Cubic Yard Bin Size 1x per Week Pick Up
Scenrio 1: Customer maintains current level of trash service City Hauler Monthly Rate
Santa Fe Springs CR&R, Serv-Wel &
Republic $670.44 - $810.61
Artesia CR&R $494.16
Lynwood Waste Resources $462.23
Bellflower CR&R $424.68
Norwalk Athens $417.38
Cerritos Athens $409.12
Downey Athens $384.00
Whittier Athens & Republic $364.19
Lomita Athens $337.00
Paramount (Includes Organic Recycling) Athens $333.83
Lakewood EDCO $307.90
South Gate Universal Waste
Systems $306.10
Pico Rivera NASA $294.12
Paramount (Does Not Include Organic Recycling) Athens $192.82 Paramount (Current) Athens $172.33
2 Cubic Yard Bin 1x per Week Pick Up
Scenario 2: Customer reduces level of trash service due to addition of recycling City Hauler Monthly Rate
Santa Fe Springs CR&R, Serv-Wel &
Republic $545.65 - $654.55
Artesia CR&R $397.27
Cerritos Athens $393.06
Lynwood Waste Resources $387.36
Downey Athens $343.52
Norwalk Athens $340.87
Bellflower CR&R $330.50
Lakewood EDCO $307.90
Lomita Athens $302.77
Whittier Athens & Republic $302.05
South Gate Universal Waste
Systems $286.10
Paramount (Includes Organic Recycling) Athens $268.19
Pico Rivera NASA $239.85
Paramount (Does Not Include Organic Recycling) Athens $192.82 Paramount (Current) Athens $172.33
Cost for commercial customers is based on the individual amount of generated waste
-1-
AMENDMENT NO. 2
TO AMENDED AND RESTATED AGREEMENT
BY AND BETWEEN
THE CITY OF PARAMOUNT
AND
ARAKELIAN ENTERPRISES, INC. DBA ATHENS SERVICES
FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES
This Amendment No. 2 (“Amendment”) is dated this ___ day of _______, 2024, by and between the City of Paramount (“City”) and Arakelian Enterprises, Inc. DBA Athens Services (“Contractor”). City and Contractor may hereinafter be individually referred to as “party” or Collectively “Parties.”
RECITALS
A. WHEREAS, the City and CalMet Services Inc. entered into that certain Agreement for Solid Waste Collection Services dated amended and restated January 15, 2013 and November 6, 2018, respectively, and thereafter amended by that certain Amendment No. 1, dated March 15, 2022 (“Agreement”). On March 30, 2022, the City Council consented to the assignment of the Agreement to Contractor
B. WHEREAS, Public Resources Code Section 40000 et seq., declares it is within the public interest to authorize and require local agencies to make adequate provision for solid waste handling within their jurisdictions;
C. WHEREAS, the Legislature enacted certain new laws pertaining or relating to solid waste handling with which City must comply, including Senate Bill No. 1383, creating the need for the City to improve efforts to divert solid waste from landfills, including recyclable materials and organic waste;
D. WHEREAS, the foregoing necessitates modified or additional services in order to bring City into compliance with applicable law and ensure integrated, Citywide waste management programs with the implementation of a Citywide organic waste Collection program; E. WHEREAS, the City Council has determined that it is in the best interest of the City for Contractor to implement the changes pertaining to the provision of services specified in this Amendment to meet the aims of the City’s compliance and environmental objectives; and NOW, THEREFORE, in consideration of the promises and covenants contained herein, the above recitals, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree to amend the Agreement as follows:
TERMS
1. Change from CalMet to Athens Services. All references to “CalMet” or “CalMet Services, Inc.” in the Agreement are hereby deleted in their entirety and replaced with “Arakelian Enterprises, Inc. dba Athens Services (“Athens”).”
-2-
2. Revised SB 1383 Definitions. Unless specified otherwise, the following terms in the Agreement in Article 1 of the Agreement are hereby amended to have the meanings specified in Title 13, Chapter 13.09 of the Paramount Municipal Code (Mandatory Organic Waste Disposal Reduction) (“SB 1383 Ordinance”): (i) the term “Commercial Premises” shall mean “Commercial business,” as defined in the SB 1383 Ordinance; (ii) the term “Green Waste Processing Facility” shall mean “Designated source separated organic waste facility,” as defined in the SB 1383 Ordinance; (iii) the term “Multi-Family Dwelling” shall mean “Multifamily residential dwelling,” as defined in the SB 1383 Ordinance; (iv) “Residential,” “Residential Premises,” and “Single Family Dwelling” shall mean “Single-family,” as defined in the SB 1383 Ordinance; (v) “Solid Waste” shall mean “Solid Waste,” as defined in the SB 1383 Ordinance; and (vi) “Source Separated” shall mean “Source separated,” as defined in the SB 1383 Ordinance. For the avoidance of doubt, Commercial includes Multi-Family Dwelling with five (5) or more units and Residential includes Multi-Family Dwelling with fewer than five (5) units.
3. Organic Waste Definition. A new Section 1.55 is hereby added to the Agreement as follows:
1.55 Organic Waste
Organic Waste means Solid wastes containing material originated from living organisms and their metabolic waste products, including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a). The term “Green Waste” shall mean “Organic Waste” when referenced in the Agreement except with respect to Section 1.27 (Definitions; Green Waste) and Section 2.9(c) (Limitations to Scope;
Gardner/Landscaper Green Waste).
4. Term of Agreement. Sections 2.4 and 2.5 of the Agreement are hereby deleted in their entirety and replaced with the following:
2.4 Term of Agreement
This Agreement shall be for a period of fifteen (15) years, commencing on July 1, 2024; provided, however that on the same date every year thereafter, automatic one-year extensions shall be applied to this Agreement (each an “Automatic Extension”) so that the Term of this Agreement shall thereafter remain at a constant fifteen (15) years (as may be extended, “Term”). Notwithstanding the foregoing, the unexcused failure or refusal of Contractor to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the -3-
procedures specified in Sections 11.1, 11.2, and 11.4, 11.5 and each subpart therein.
2.5 Wind-down of Term
No earlier than July 1, 2032 and no later than March 15, 2033, or anytime between each January 1 and March 15 thereafter, either Party may issue a written notice of intent to cancel the Automatic Extension (“Notice of Intent to Wind-Down”). The Notice of Intent to WindDown may be issued by either Party without cause. The terminating Party shall host a minimum of two (2) negotiation sessions with the non-terminating Party in the same calendar year that the Notice of Intent to Wind-Down (“Meet and Confer Period”) is issued. The purpose of the Meet and Confer Period shall be to provide sessions to discuss, in good faith, recission of the Notice of Intent to Wind-Down in exchange for an amendment(s) to the Agreement. The Parties may, but are not obligated to, meet more frequently than required herein, provided that no such conferences shall act to extend or delay the Meet and Confer Period unless expressly agreed to in writing by the Parties. No earlier than one (1) day after the second negotiations session of the Meet and Confer Period and no later than May 31 of that same year, if the terminating Party elects to cancel the Automatic Extension, the terminating Party must deliver written notice to the non-terminating Party that it has concluded efforts to meet and confer in good faith and the Automatic Extension is canceled (“Notice of Effective Wind-Down”). Upon Notice of Effective Wind-Down, the Agreement will remain in full force and effect for a 15-year fixed term beginning July 1 of the year after the Notice of Effective Wind-Down is issued to the non-terminating Party. Notwithstanding any provision in this Agreement to the contrary, the cancellation of the Automatic Extension shall not become effective if (i) the Parties mutually agree to approve and execute an amendment to this Agreement as provided herein; (ii) the terminating Party fails to hold the minimum number of negotiations sessions in any year of the Meet and Confer Period; or (iii) the terminating Party fails to issue its Notice of Effective Wind-Down within the time prescribed herein. .
City-Directed Changes. Section 2.10.1 of the Agreement is hereby deleted in its entirety and replaced with the following:
2.10.1 City-Directed Changes
City may direct Contractor to perform additional services (including new Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new -4-
requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase Diversion requirements during the term of this agreement and Contractor agrees to implement services to meet such diversion requirements. City and Contractor shall negotiate in good faith for an adjustment in its Contractor Compensation for providing such additional or modified services. Any rate adjustment shall be reviewed and approved by City Council. City and Contractor will not unreasonably withhold agreement to such compensation adjustment.
5. Ownership of Solid Waste. Section 2.11 of the Agreement is hereby deleted in its entirety and replaced with the following:
2.11 Ownership of Solid Waste
City and Contractor understand and agree that except as provided otherwise under applicable law, title to Solid Waste shall pass to Contractor at such time as the materials are set out for Collection.
Subject to Sections 4.7 and 4.8 of the Agreement, Contractor shall have the right to retain, Recycle, process, Dispose of, and otherwise use Solid Waste Collected pursuant to the terms hereof in any lawful fashion or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, Dispose of, or reuse the Solid Waste which it Collects.
6. Bulky Item Pickup. The second paragraph of Section 4.1.10 of the Agreement is hereby deleted in its entirety and replaces with the following:
Contractor shall provide one-time per week bulky item pickup service to all Residential customers, upon request, at no additional charge for up to five (5) items per service per week. Contractor shall also provide one bulky item service per year to each Multifamily Dwelling unit receiving Bin service, upon customer request, at no additional charge for up to five (5) items per service per year. Customers must not have a past due balance of 60 days or more to receive such free service.
Contractor may charge Bulky Item service fees at the rates specified in Exhibit 1 for any service not available without charge under this Agreement.
7. Bulky Item Diversion. Section 4.1.12 of the Agreement is hereby deleted in their entirety and replaced with the following:
4.1.12 Bulky Item Diversion
Bulky Items Collected by Contractor in accordance with Section
4.1.10 and 4.5.4 or otherwise collected under this Agreement may be processed for reused or recycled or otherwise diverted from Landfill, as determined by Contractor, provided that the City's annual report to -5-
CalRecycle shows a greater than 50% Diversion rate for all Solid Waste generated in the City. Contractor shall record by weight (in tons) the Solid Waste Collected and shall record the weights (in tons) of Solid Waste diverted, if any, from landfilling through recycling, reuse, or other means of diversion.
8. Refuse Service Determinations. A new Section 4.1.14 is hereby added to the Agreement as follows:
4.1.14 Refuse Service Levels
Notwithstanding any provision in this Agreement to the contrary, including Sections 4.1.2, 4.1.4, and 4.1.5, in the event of any Customer request to reduce Container size, quantity or collection frequency, Contractor must approve such change, and such determination may be disapproved by City.
9. Mixed Waste Processing. Section 4.2.3 of the Agreement is hereby deleted.
10. Minimum Recycling Diversion. Section 4.2.6 of the Agreement is hereby deleted in their entirety and replaced with the following:
4.2.6 Minimum Recycling Requirements
A During each calendar year during the term of this Agreement, Contractor shall implement programs designed to achieve a minimum diversion of fifty percent (50%) from disposal of all Solid Waste generated in the City. For purpose of determining whether Contractor has met the diversion standards hereunder, City and Contractor agree the diversion requirement rate will be calculated using the following CalRecycle formula: “Disposal Rate = City’s Pounds Per Person Per Day generated disposal divided by two times CalRecycle’s Target disposal rate for the City (Pounds Per Person Per Day). CalRecycle’s Diversion Rate = 1 - Disposal Rate.”
B. If City fails to comply with diversion standards specified in Section 4.2.6(A) due to Contractor’s failure to implement the diversion programs provided for in this Agreement, Contractor must submit a corrective action plan to assist City to comply with Public Resources Code section 41780 by March 15th following the year the diversion requirements were not met. Contractor’s corrective action plan is subject to approval by the City Manager, or its delegate. and to be approved, must constitute a good faith corrective action plan to allow City to comply with Public Resources Code section 41780.
Implementation of the corrective action plan will be at Contractor’s sole cost and expense. If Contractor fails to submit or implement a corrective action plan acceptable to the City, Contractor may be -6-
subject to liquidated damages per Section 11.3 for failure to satisfy diversion requirements.
C. If the State increases waste diversion requirements, City and Contractor shall negotiate in good faith a rate adjustment to recover the costs to provide the additional waste diversion services that may be required and, upon the approval of such rate adjustment free of legal challenge, the provisions of this Section will apply using the higher diversion rate.
D. Notwithstanding other provisions of this Agreement,
Contractor’s obligations in this Section 4.26 will not extend to any loss, cost, liability, fine, penalty, damage, action, suit, duty, obligation, requirement, nonperformance, or noncompliance relating to, arising or resulting from, acts or omissions (i) not within the control of Contractor, (ii) constituting the negligence, willful misconduct, material breach of this Agreement, or violation of law on the part of City, its officers or employees, or (iii) as limited by Public Resources Code Section 40059.1; provided, however, “Exemptions From Service” approved by City as outlined in Section 5.1.5 shall not relieve Contractor from its obligations under this Section 4.2.6.
11. Construction and Demolition Debris Diversion. Section 4.2.7 of the Agreement is hereby deleted in their entirety and replaced with the following:
4.2.7 Construction and Demolition Debris Diversion
Contractor shall process all Construction and Demolition (C&D) debris and shall divert a minimum of sixty-five percent (65%) of all C&D debris collected, or whatever is the current percentage required by CalRecycle, as measured on a calendar year basis. Any change in the percentage required by CalRecycle shall be subject to adjustment in accordance with Section 6.4.
12. Transformation. Section 4.2.8 is hereby deleted in its entirety.
13. Organic Waste Program. Sections 4.3, 4.3.1, 4.3.2 and 4.3.3 of the Agreement are hereby deleted in their entirety and replaced as set forth below. Attachment 2 to this Amendment is hereby added to the Agreement as Exhibit 3.
4.3 Organic Waste Program
Contractor will conduct Collection, transportation, and processing for Source Separated Organic Waste generated in the City. Such service shall be conducted in accordance with Contractor’s Organic Waste program specified in Exhibit 3, which is attached hereto and incorporated herein by reference as if fully set forth herein. -7-
4.3.1 SB 1383 Guarantee
Upon notice from City, Contractor shall be deemed in material breach, subject to at least thirty (30) days to cure, in the event CalRecycle determines that the requirements of SB 1383 have not been satisfied solely: (i) due to the failure of Contractor to meet its obligations under this Agreement; or, (ii) due to Contractor’s delay in providing information required under this Agreement that prevents City from submitting reports to CalRecycle in a timely manner (alternatively, a “Noncompliance Event”). Upon any Noncompliance Event, City shall be entitled to the reimbursement of all penalties and/or fines assessed by CalRecycle against City to the extent the penalties and/or fines arise from the Noncompliance Event. Such reimbursement from Contractor to City shall be paid to City within 30 days of City receiving notice from CalRecycle of the final and conclusive assessment of penalties and/or fines as a result of the Noncompliance Event. Further, for the avoidance of doubt, nothing contained herein is intended to modify the respective rights and obligations of the parties subject to Article 11. Notwithstanding the foregoing, Contractor’s obligations hereunder shall be limited by Public Resources Code Section 40059.1.
4.3.2 Bundled Service
Contractor shall determine the appropriate Container size, type, frequency, and quantity for each Customer. As a default, (i) Customers receiving Cart service will receive one 95-gallon Cart for Refuse, one 95-gallon Cart for Recyclable Materials, and one 95- gallon Cart for Organic Waste and (ii) Customers receiving Bin service will receive one 3-cubic yard Refuse Bin, one 1.5-cubic yard Recyclable Materials Bin and one 95-gallon Cart for Organic Waste.
Based on a waste assessment performed by Contractor, Contractor may adjust the applicable default service level to any one of the following Container types: (i) 65-gallon Cart; (ii) 1.5 to 2 cubic yard Bin; and (iii) roll-off Container with a capacity of 10 or more cubic yards. Organic Waste Collection will occur not less than once per week on the same day as Refuse Collection.
4.3.3 Acceptable Materials
Notwithstanding any provision in this Agreement to the contrary, the Recyclable Materials that are to be accepted for Collection by Contractor are set forth in Exhibit 3-A and the Organic Waste materials that are to be accepted for Collection by Contractor are set forth in Exhibit 3-B. City and Contractor agree that the list of acceptable Recyclable Materials and/or Organic Waste may be modified from time to time with the written approval of City. -8-
4.3.4 Commingling of Source-Separated Recyclable Materials and/or Organic Waste in Refuse Loads
Except as permitted by City, Contractor shall not empty a Container of properly set out and source-separated Recyclable Materials and/or Organic Waste into a Refuse load or directly haul such Recyclable Materials and/or Organic Waste to a landfill or other location at which the material will not be Diverted from landfilling.
4.3.5 Holiday Tree Collection Program
Contractor shall operate an annual holiday tree Collection program for three (3) weeks following December 25. During this period, all holiday trees placed out for Collection by Customers at Residential Premises shall be Collected by Contractor. After this period, trees will be Collected as Bulky Items. Trees up to seven (7) feet in length will be Collected and diverted without Customers needing to cut them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than seven (7) feet. Contractor will divert all holiday trees from landfilling, with the exception of trees that cannot be diverted due to flocking, tinsel, or ornaments.
14. City Sponsored Events. Section 4.5.2 shall be deleted in its entirety and replaced as provided below.
4.5.2 City Sponsored Events
Contractor shall provide Collection and Disposal/processing service for up to six (6) City-sponsored events per year, including Citywide Waste Events specified in Section 4.5.9 and one compost give-away event. This shall include providing Containers (Bins, Roll-off Boxes, clearly labeled Recycling Containers and cardboard waste boxes with liners) to Collect and dispose of, or process, all Refuse, Recyclable Materials, and Organic Waste. Further, upon reasonable request of City, Contractor will provide cardboard waste boxes (with liners) for use at community or City-staff events hosted at City Hall and similar City-owned facilities. Contractor shall provide these services at no additional cost to City or ratepayers.
15. Sidewalk and Bus Stop Container Service. Section 4.5.8 shall be deleted in its entirety and replaced as provided below.
4.5.8 Sidewalk and Bus Stop Container Services
Contractor will collect solid waste deposited in City-owned sidewalk and bus stop containers no more than three times per week for up to two hundred (200) total containers without charge, with additional container service subject to Contractor’s then-existing rates. The days -9-
for collection hereunder is subject to the approval of the City’s Public Works Director. Contractor shall transport and deliver the collected solid waste to the disposal facility, the materials recovery facility, or such other facility as is appropriate.
16. Citywide Waste Events. Section 4.5.9 shall be deleted in its entirety and replaced as provided below.
4.5.9 Citywide Waste Events
Contractor shall provide free services for two (2) annual City events for the collection of bulky items, electronic waste, and Organic Waste. The event will be a joint-coordination effort between the City and the Contractor. Contractor shall provide bins, pick-up and dropoff, and disposal of the waste.
17. Street Sweeping. Section 4.6.8 is hereby deleted in their entirety and replaced as provided below. All references to “Street Sweeping Fee” are also hereby deleted. Further, Exhibit 4 is incorporated into the Agreement as Attachment 3 to this Amendment.
4.6.8 Street Sweeping Services
Contractor will perform street sweeping services for the City as specified in Exhibit 4 of this Agreement, which is attached hereto and incorporated herein by reference as if fully set forth herein.
18. Transportation of Solid Waste. Section 4.7 of the Agreement is hereby deleted in their entirety and replaced with the following:
4.7 Transportation of Solid Waste
Collector shall Transport all Solid Waste to a fully permitted Facility.
Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and will cooperate with City in any audits or investigations of such quantities. Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth.
19. Facility Selection. Section 4.8 of the Agreement is hereby deleted in their entirety and replaced with the following:
4.8 Facility Section
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Unless otherwise directed by CalRecycle, Contractor has sole discretion to determine the Facilities utilized under this Agreement except in the event of emergencies of public health or safety.
Contractor is responsible for ensuring that each Facility it uses is properly permitted. Contractor agrees to transport all sourceseparated materials collected to Facilities capable of achieving high rates of recovery at or near those of other similarly situated local Facilities. Contractor shall maintain accurate records of the quantities of materials transported to Facilities and shall cooperate with the City in any audits or investigations of such quantities.
20. Delinquent Accounts. Section 5.1.3 of the Agreement shall be deleted in its entirety and replaced with the following:
5.1.3 Delinquent Accounts
Unless directed otherwise by the City Manager or their duly authorized representative, or except in the case of Residential Customers, if necessary to preserve public health and safety, Contractor may discontinue service to a Customer who is delinquent in paying for services rendered no earlier than sixty (60) days after the last day of the billing period or that date on which the billing for the service period is delivered to the Customer, whichever is later. For this purpose, delivery of the billing shall include the date such billing is deposited by Contractor into the U.S. Mail or delivered electronically. The Contractor shall notify the Customer and the Public Works Director or duly authorized representative in writing of its intent to discontinue service not less than ten (10) business days before such discontinuation shall occur. City further agrees to assist Contractor with placing and collecting qualifying delinquencies on the tax roll in accordance with the City of Paramount Municipal Code.
Contractor shall, by May 1st of each year or at such other time as City and Contractor shall agree upon, notify City in writing as to whether it will seek to have City place and collect qualifying delinquencies on the tax roll. Contractor shall be responsible for timely preparing, at no cost to City, all required information, reports, notices, and materials including without limitation, the report(s) required by the Paramount Municipal Code, the notices required by the Paramount Municipal Code, and paying for any publication costs. City agrees that it shall enforce an ordinance authorizing collection of eligible delinquent accounts on the tax roll, and to hold all hearings, timely published all notices, and to timely make all filings, required under the above sections, provided Contractor has timely provided the required information, reports, notices and materials to City. For the purposes of this section, a "qualifying delinquency" is a non-Residential Customer receiving Cart or Bin Service that is at least sixty (60) days in arrears and for which Contractor has provided at least one written -11-
notice delivered to the service recipient by mail or other reasonable means.
21. Exemptions from Service. Section 5.1.5 of the Agreement shall be deleted in its entirety and replaced with the following:
5.1.5 Exemptions from Service
Customers are required to accept service in accordance with Sections
13.09.020 and 13.09.030 of the Paramount Municipal Code. City may provide exemptions from some or all of the Organic Waste requirements specified under applicable law as follows: (i) upon application by a Customer, City may grant “de minimis waivers” as specified in Section 13.09.040(A) of the Paramount Municipal Code; (ii) upon application by a Customer, City may grant “physical space waivers” as specified in Section 13.09.040(B) of the Paramount Municipal Code. City’s Public Works Department in conjunction with the City’s Code Enforcement Division will be responsible for review and approval of exemptions hereunder.
22. Annual Rate Adjustments. Section 6.3 of the Agreement shall be deleted in its entirety and replaced with the following:
6.3 Schedule of Future Adjustments
Beginning July 1, 2025, and annually thereafter on each July 1, the rates provided in Exhibit 1 shall be adjusted annually as set forth herein. The annual adjustment shall be the sum of the percentage increase of the Consumer Price Index for Trash and Garbage Collection (CUUR0000SEHGO2) U.S. City Average (not seasonally adjusted) as may be amended or renamed and replaced from time to time by the United States Bureau of Labor Statistics (“Trash CPI”) for the 12-month period of January of the current year to January of the prior year, plus one (1%) (i.e., Trash CPI+1) (“Annual Rate Adjustment”). If the index is discontinued, an alternative index must be approved by the City Manager. Notwithstanding the foregoing, on or before March 1, 2025, and annually thereafter by each March 1, Contractor shall submit a written calculation of the Annual Rate Adjustment to the City Manager. No later than (30) days thereafter, the City Manager shall notify Contractor of City’s disagreement with Contractor’s calculations of Annual Rate Adjustment and/or related changes to Exhibit 1. Unless the City Manager disagrees with Contractor’s calculations within the time specified hereunder, the calculation shall be deemed approved. City may not unreasonably deny Contractor’s Annual Rate Adjustment provided that any such adjustment is calculated in conformance with this Section 6.3. If the event of a disagreement over the calculation of the Annual Rate -12-
Adjustment, City and Contractor will meet and confer within fifteen (15) days, or as may be extended by mutual agreement (email communication acceptable) to resolve any calculation dispute. If such dispute cannot be resolved by mutual agreement, any party may seek judicial relief. Government Code section 910 et seq. shall not apply.
6.3.1 Multifamily and Commercial Supplemental Adjustments In addition to the Annual Rate Adjustment, rates for Multifamily and Commercial as set forth in Exhibit 1 shall be subject to a multi-year supplemental adjustment, as specified in Table 1 below.
Notwithstanding the foregoing, in any of the “Rate Years” 2 through 8, if the calculation of the Annual Adjustment plus any supplemental or rollover adjustments specified in this Section 6.3.1 exceeds seven percent (7%), the total adjustment therefrom will equal seven percent (7%) (“Rate Cap”) for that Rate Year. Any adjustments in excess of seven percent (7%) that would have been applied but for the Rate Cap shall be carried forward and applied to the next rate year, or any subsequent years to which the rate adjustment (inclusive of any carried-forward balance) does not exceed the Rate Cap (“Rollover”).
For the avoidance of doubt, the Rate Cap does not apply in Rate Year 9 or thereafter. However, if the total adjustment in Rate Year 9 exceeds the seven percent (7%) due to any Rollover balance following Rate Year 8, the parties will meet and confer to determine a schedule to apply the balance to carry-over in Rate Year 9 and/or thereafter, and any such agreement will not be unreasonably withheld.
Table 1
Rate
Year
Year Adjustment
2 Effective July 1, 2025 4.75% + Annual Rate
Adjustment, subject to Rate Cap
3 Effective July 1, 2026 4.75% + Annual Rate
Adjustment + Rollover (if
applicable), subject to Rate Cap
4 Effective July 1, 2027 4.75% + Annual Rate
Adjustment + Rollover (if
applicable), subject to Rate Cap
5 Effective July 1, 2028 4.75% + Annual Rate
Adjustment + Rollover (if
applicable), subject to Rate Cap
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6 Effective July 1, 2029 Annual Rate Adjustment +
Rollover (if applicable), subject
to Rate Cap
7 Effective July 1, 2030 Annual Rate Adjustment +
Rollover (if applicable), subject
to Rate Cap
8 Effective July 1, 2031 Annual Rate Adjustment +
Rollover (if applicable), subject
to Rate Cap
9 Effective July 1, 2032
and thereafter
Annual Rate Adjustment +
Rollover (if applicable), subject
to meet and confer
23. Proposition 218 Hearings; Rate Invalidation Procedures. New Sections 6.5 and
6.6 are hereby added to the Agreement as follows:
6.5 Proposition 218 Hearings
At the City’s election, and without admitting the applicability of Proposition 218 to this Agreement, City may conduct the hearings with respect to the approval or adjustment of the rates specified in Exhibit 1 in accordance with Proposition 218, and if such hearings commence, the City Council shall agendize a vote to approve or continue such rates, including but not limited to, if necessary, the continuation of the Annual Rate Adjustment, in accordance with Government Code Section 53756 and Article XIII D, Section 6(a) of the California Constitution, as applicable.
6.6 Rate Invalidation Procedures
In the event that City is unable, by operation of applicable law or a valid majority protest pursuant to Proposition 218, to continue the Annual Rate Adjustment formula, or to approve or implement any other rate increase due to Contractor under this Agreement, in whole or in part, City must provide thirty (30) days written notice to Contractor identifying such prohibition or disallowance, with a written justification explaining why City is prohibited or disallowed from approving or implementing an adjustment of rates in whole or in part (“Invalidation Notice”). Upon Contractor’s receipt of an Invalidation Notice, Contractor will present an accounting of the amounts otherwise due to Contractor attributable to the invalidated rate(s). City and Contractor shall immediately meet and confer and agree to discuss a revised rate adjustment that may be acceptable; -14-
corresponding reductions in programs, services, or fees and payments otherwise due to City to compensate Contractor for the total amount due to Contractor that would have been recovered through the Annual Rate Adjustment formula or other rate adjustment but for denial or prohibition of the same; and/or City paying to keep identified services and programs that may be removed or reduced. If City and Contractor do not reach an agreement within ninety (90) days of Contractor’s receipt of the Invalidation Notice, or as extended by mutual agreement of the Parties (email communication acceptable), Contractor will immediately offset the total cost of the invalidated rate(s) from the fees otherwise due to City such as but not limited to franchise fees, or upon written notice to Contractor, City may pay the remaining amounts directly to Contractor from City funds. If Contractor offsets the amounts due, then Contractor shall provide monthly reports to the City Manager that provide the total amounts being offset and the related services. Such monies may be refunded to City upon mutual written agreement between the Parties. Further, Contractor may terminate the Agreement without cause or penalty at any time, provided that Contractor provides at least ninety (90) days’ prior written notice of termination and, during such period, cooperates with City to transition services to City or its designee. Contractor’s rights hereunder are in addition to any other rights of Contractor upon the invalidation of rates that would otherwise be due to Contractor.
24. Indemnification. Sections 9.1 and 9.2 shall be deleted in their entirety and replaces as provided below.
9.1 Indemnification
9.1.1. General Indemnification
Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants and agents (collectively, “City Indemnitees”) from and against all suits and causes of action, claims, losses, demands, and expenses, including but not limited to attorney’s fees, cost of litigation (to include actual litigation costs incurred by City, such as the cost of experts and consultants), and damage or liability of any nature whatsoever, (i) for death or injury to any person, including Contractor’s employees and agents or (ii) for damage or destruction of any City property, arising by reason and to the extent of the negligent acts, errors, omissions, or willful misconduct incident to the performance of this Agreement by Contractor. All consultants and attorneys engaged hereunder are subject to the approval of -15-
Contractor. This Section 9.1 shall survive for a period of five (5) years after expiration or termination of this Agreement.
9.1.2 Hazardous Substances Indemnification
Contractor shall indemnify, defend, protect, and hold harmless City Indemnitees from and against all claims, actual damages, injuries, costs, losses, liabilities, causes of action, interest, and expenses (including but not limited to reasonable attorney’s and expert’s fees) incurred by or against City to the extent resulting from any removal or response action undertaken pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. or the Carpenter-Presley-Tanner Hazardous Substance Account Act of 1981, Health & Safety Code § 25300 et seq. with respect to Solid Waste (exclusive of e-waste) collected, transported, and disposed of by Contractor at disposal facilities selected by Contractor. All consultants and attorneys engaged hereunder are subject to the approval of Contractor.
9.1.3 Survival
The provisions of this Section 9.1 shall survive for a period of five (5) years after expiration or termination of this Agreement.
9.2 Exception
Notwithstanding other provisions of this Agreement to the contrary, Contractor’s obligation to indemnify, hold harmless and defend City Indemnitees will not extend to any claims, actual damages, injuries, costs, losses, liabilities, causes of action, interest, and expenses (including but not limited to reasonable attorney’s and expert’s fees) to the extent arising or resulting from acts or omissions of third parties or constituting the negligence, willful misconduct, material breach of this Agreement, or violation of law on the part of City Indemnitees.
25. Liquidated Damages. Section 11.3 of the Agreement shall be deleted in its entirety and replaced as provided below. Attachment 3 to this Amendment is hereby added to the Agreement as Exhibit 5.
Contractor agrees to pay City liquidated damages as detailed in Exhibit 5 should Contractor fail to meet its responsibilities under this Agreement.
26. Compliance with Law. Section 12.2 of the Agreement shall be deleted in its entirety and replaced with the following:
In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws and -16-
regulations of the United States, the State of California, and any federal, state, regional or local administrative and regulatory agencies., now in force and as they may be enacted, issued or amended, provided that in event of a change in law, Section 6.4 shall apply.
27. Maximum Service Rates. Exhibit 1 of the Agreement is hereby deleted in its entirety and replaced with Attachment 1 to this Amendment, which is attached hereto and incorporated herein by reference as if fully set forth in the Agreement.
28. Effective Date. Except as otherwise specified in this Amendment, the Amendment shall be effective as of July 1, 2024, with the same force and effect as if the Amendment had been executed on that date.
29. Amendment Definitions. Unless specified otherwise, all capitalized terms in this Amendment hereby refer to those defined terms specified in SB 1383 Ordinance and 14 California Code of Regulations § 18982. Unless specified otherwise, in the event of a conflict between a definition in this Amendment and a definition in 14 California Code of Regulations § 18982, the definition in § 18982 shall control.
30. Due Execution. The person(s) executing this Amendment on behalf of a Party hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly authorized to execute and deliver this Amendment on behalf of said Party; (iii) by so executing this Amendment, such Party is formally bound to the provisions of this Amendment; and (iv) entering into this Amendment does not violate any provision of any other agreement to which said Party is bound.
31. Entire Amendment. This Amendment contains the entire agreement and understanding between the Parties with respect to the subject matter of this Amendment and supersedes any and all prior or contemporaneous oral and written representations, warranties, agreements, and understandings between the Parties concerning the subject matter of this Amendment.
32. Full Force and Effect. Other than as set forth in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect. In the event of any conflict between the Agreement and this Amendment, this Amendment shall apply.
33. Severability. If any term or provision of this Amendment or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and shall be enforceable in its amended form. In such event, the remainder of this Amendment, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and each term and provision of this Amendment shall be valid and be enforced to the fullest extent permitted by law.
34. Counterparts. This Amendment may be executed in counterparts, each of which shall be considered an original.
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[Signature page follows]
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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth below.
CITY OF PARAMOUNT ARAKELIAN ENTERPRISES, INC., a
California corporation
INSERT
Mayor
Ron Arakelian III
Executive Officer
Date Date
ATTEST:
________________________________
INSERT
City Clerk
_____________________________
Date
APPROVED AS TO FORM:
________________________________
INSERT
City Attorney
_____________________________
Date
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[AMENDMENT ATTACHMENT 1]
EXHIBIT 1
MAXIMUM SERVICE RATES
-20-
[AMENDMENT ATTACHMENT 2]
EXHIBIT 3
SB 1383 Program
1. Education and Outreach. Contractor shall provide, and City must approve, education and outreach activities, in English, Spanish, and all other languages required by law, and to create and disseminate educational materials to Customers in compliance with 14 CCR Section 18985.1. In accordance with the foregoing, Contractor will provide the education information required in 14 CCR Section 18985.1 by providing regularly scheduled notices, education materials, billing inserts, or other information disseminated to Customers. Contractor shall maintain records of its education and outreach activities and provide this information upon request to City. City has a shared responsibility to cooperate with Contractor with respect to the education and outreach activities and creation and dissemination of educational materials hereunder.
2. Reporting. Notwithstanding any provision in this Agreement to the contrary, Contractor shall prepare and maintain the records identified in 14 CCR Section 18995.2(f), arising from the Organic Waste Collection Services performed by Contractor and assist City in reporting such information. As part of its obligations with respect to the foregoing and under Section 8.3 of the Agreement, Contractor will provide an annual report of the following: (i) the tons of Organic Waste Collected by route, with map of routes; (ii) the total number of generators that receive each type of Organic Waste Collection service provided by Contractor; (iii) the number of Organic Waste Collection Containers distributed by size and Customer type; and (iv) annual totals of Organic Waste processed including Facility name and location. Contractor shall provide other records regarding customer noncompliance to City within thirty (30) business days of a request. Contractor shall provide City with business hours access to and any necessary training for use of a Contractor-hosted records systems in order to validate Contractor performance in accordance with the Organic Waste program specified in this Exhibit 3.
3. Provision of Recovered Organic Waste Products. Upon request of City, Contractor will meet and confer with City to discuss an amendment intended to establish a program that would be designed to assist the City in securing sufficient quantities of Compost and/or, if commercially available to Contractor, California-derived Renewable Natural Gas, to meet the City’s required annual per capita procurement of products produced in accordance with 14 CCR Section 18993.1.
4. Container Color and Labeling.
A. Container Color. Notwithstanding any provision in this Agreement to the contrary, all Containers provided by Contractor to Customers must comply with the color requirements specified in 14 CCR Section 18984.7 under the timelines and requirements of such section. Containers shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation, and the lids and bodies shall be uniform for each Container type, as follows: (i) Solid Waste Container bodies and/or lids shall be black or gray; (ii) Recyclable Materials Container bodies -21-
and/or lids shall be blue; and (iii) Organic Waste Container bodies and/or lids shall be green.
Hardware such as hinges and wheels on the Containers may be a different color than specified herein.
B. Container Labeling. Beginning on or around July 1, 2024, Contractor shall, in accordance with 14 CCR Section 18984.8, imprint or place a label on the body or lid of each new Container that has been provided by Contractor to a Customer that includes language or graphic images, or both, indicating the primary materials accepted and the primary materials prohibited in that Container. Imprints or labels shall clearly indicate items that are Prohibited Container Contaminants for each Container.
C. New or Replaced Containers. Except as expressly provided herein, nothing in this Agreement shall be construed as requiring Contractor to replace Containers in good working condition that comply with 14 CCR Section 18984.7 and 14 CCR Section 18984.8 as of April 1, 2023.
5. Route Reviews. Contractor shall on a quarterly basis, beginning on or around July 1, 2024, conduct Contractor route reviews for Prohibited Container Contaminants consistent with and as defined in 14 CCR Section 18984.5(b) in a manner deemed safe by Contractor. Containers may be randomly selected along hauler routes. Contractor shall develop a hauler review methodology in compliance with 14 CCR Section 18984.5(b) and submit it to City not more than annually upon the request of City.
6. Facilities Waste Evaluations. Contractor shall at least twice per year but no more than quarterly, beginning on or around July 1, 2024, conduct waste evaluations that meet the requirements of 14 CCR Section 17409.5.1 with respect to waste delivered to a Contractor-owned or -controlled facility or with respect to information otherwise accessible to Contractor that permits it to perform characterization studies. City maintains the right to observe, or hire a third party to observe, the waste evaluations.
7. Contamination Protocols. In order to prevent Prohibited Container Contaminants, or habitual contamination, Contractor shall implement the protocols, as specified herein. All contamination fees imposed by Contractor hereunder shall be in accordance with the approved rates and fees specified in Exhibit 1.
A. First and Second Events. Upon the first and second discoveries of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the contaminated waste if safe to do so, treat the waste as Garbage for handling and billing purposes, and affix a “Contamination Violation Notice” to any Container with contaminated waste. Contractor shall also report issuance of any such notices to City. The Contamination Violation Notice will contain instructions on the proper procedures for sorting waste. Contractor must also notify the Customer of the following: (i) for the third and subsequent discovery of Prohibited Container Contaminants, the Customer may be charged a contamination fee by the Contractor for each contaminated Container, and (ii) for the fifth and subsequent discoveries of Prohibited Container Contaminants, the Customer may be charged a contamination fee for each contaminated Container, and Contractor may increase the size of the Customer’s Container or require an additional Container(s). Contractor must also attempt to contact the Customer if it appears Customer does not -22-
have the appropriate level of service for proper Collection of Garbage, Recyclable Materials, and Organic Waste.
B. Third and Fourth Events. Upon the third and fourth discoveries of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the contaminated waste in the contaminated Container(s) if safe to do so, treat the waste as Garbage for handling and billing purposes, and affix a Contamination Violation Notice to the contaminated Container. Contractor may also elect to charge the then-maximum contamination fee for the discovery of Prohibited Container Contaminants. For any assessed contamination fee, Contractor must provide digital/visual documentation of Contractor’s discovery of Prohibited Container Contaminants to the Customer and City.
C. Five or More Events. Upon each of the fifth and any subsequent discoveries of Prohibited Container Contaminants within a given calendar year starting January 1, Contractor will Collect the contaminated waste in the contaminated Container(s) if safe to do so, treat the waste as Garbage for handling and billing purposes, and charge a contamination fee for each event. For any assessed contamination fee, Contractor must provide to the Customer and City digital/visual documentation of Contractor’s discovery of Prohibited Container Contaminants. Upon five (5) business days’ notice to City and the Customer, Contractor may (i) increase the size of the Customer’s Container, require additional Containers to accommodate excessive Prohibited Container Contaminants, or increase Collection frequency; (ii) impose a contamination fee equal to fees for a period of six (6) months or until the Customer has demonstrated Prohibited Container Contaminants are not in Containers for a period of three (3) consecutive months; and/or (iii) provide notice that Contractor has recommended that City commence any applicable code enforcement action against the Customer. City will consult with Contractor and consider, and pursue as applicable, appropriate legal remedies against offending Customers in order to secure discontinuance of the Prohibited Container Contaminants. All City costs of such action shall be recovered from the offending Customers.
D. Disputes. If a Customer disputes, in writing, an assessment of a contamination fee within 30 days of the assessment, Contractor will temporarily halt any such assessment and Contractor may request a ruling by the City Manager, or his or her designee, to resolve the dispute. A request by Contractor to the City Manager, or his or her designee, to render a decision on any such dispute must be filed within ten (10) business days of receipt of a Customer’s written dispute, and Contractor must include written documentation and digital/visual evidence of ongoing overall problems. Upon receipt of such documentation, the City Manager or his or her designee, will rule on the dispute within ten (10) business days, and decision of the City Manager, or his or her designee, will be final.
8. Edible Food Recovery.
A. Identification of Commercial Edible Food Generators. Beginning on or around July 1, 2024 and annually every July 1 thereafter, Contractor shall assist City in identifying Customers that meet the definition of Tier One or Tier Two Commercial Edible Food Generator and -23-
provide to City a list of such Customers, which shall include the following information: Customer name, service address, contact information, Tier One or Tier Two classification, and type of business.
B. Identification of Edible Food Recovery Organizations. To support City’s efforts to promote Edible Food Recovery programs, Contractor shall maintain, and update annually each January 1, a list of Food Recovery Organizations and Food Recovery Services and information about Edible Food Recovery on Contractor’s website, which is specific to City and shall provide a link to information about City’s Edible Food Recovery programs on Contractor’s website.
C. Maintain and Promote Listings. Contractor shall cooperate with and assist City with the distribution of information to Commercial Edible Food Generators regarding City’s Edible Food Recovery programs.
9. Waivers. The following waivers may apply: (i) in the event of a disaster, City may grant Contractor a waiver of some or all discarded materials Collection requirements under this Agreement and 14 CCR, Division 7, Chapter 12, Article 3 in the disaster-affected areas for the duration of the waiver, provided that such waiver has been approved by CalRecycle; (ii) Contractor may, but is not required to, separate or recover Organic Waste that City removes from homeless encampments and illegal disposal sites as part of an abatement activity to protect public health and safety; and (iii) Contractor may dispose of rather than process specific types of Organic Waste and/or Recyclable Materials that are subject to quarantine and meet the requirements described in 14 CCR Section 18984.13(d) for a period of time specified by City or until City provides notice that the quarantine has been removed and directs Contractor to transport the materials to facilities designated by Contractor for such material.
10. Organic Waste Ordinance; Enforcement. Contractor shall coordinate with City by providing notice to City of any and all persons refusing Organic Waste services. Contractor shall cooperate with City in implementing the SB 1383 Ordinance and shall provide support to the City in establishing the administrative record of Contractor’s outreach, education, site visits, and communications with any Customers that may ultimately be subject to City enforcement. City shall bear the responsibility for code enforcement actions such as notices of code violation and assessment of penalties per the SB 1383 Ordinance. Contractor shall not be liable for any claims, actions, obligations, demands, damages, liabilities, costs, or expenses for any damages or injuries caused by or arising from (i) the failure of Customers to accept Organic Waste services, including any waivers granted in accordance with this Exhibit, or (ii) the suspension or termination of services upon nonpayment in whole or in part by Customers, provided Contractor reports such instances of noncompliance or nonpayment to City for code enforcement. -24-
EXHIBIT 3-A
LIST OF ACCEPTABLE RECYCLABLE MATERIALS
PLASTICS
• Plastics number 1 as bottle or clamshell
• Plastics numbers 2, 4, 5, and 7
• Soda, juice, and water bottles
• Beverage and detergent jugs
METALS
• Aluminum foil and pie tins (clean)
• Scrap metal
• Steel cans, dishware, etc.
• Tin and aluminum cans
PAPER
• Paper (clean and dry, white and mixed color)
• Envelopes
• File folders (paper only)
• Junk mail and magazines
• Newspaper
• Paper grocery bags
• Telephone books
Acceptable (but may not be recycled):
• Cereal boxes (no plastic insert)
• Egg cartons (paper only and clean)
• Frozen food boxes
• Soup, milk, and juice cartons
CARDBOARD (or similar)
• Cardboard and corrugated boxes
GLASS
• Amber, green, and mixed-color glass
• Clear food glass jars
• Soda, tea, and liquor bottles
No window glass, porcelain, or non-food-related glass.
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EXHIBIT 3-B
LIST OF ACCEPTABLE ORGANIC WASTE MATERIALS
GREEN WASTE
• Flower and hedge trimmings
• Grass clippings
• Leaves and branches
• Weeds
• Lumber*
• Scrap wood*
• Plywood*
*Not painted or treated
FOOD SCRAPS
• Bread, rice, and pasta
• Cheese and dairy
• Coffee grounds and filters
• Fruits and vegetables
• Flowers and herbs
• Meat, bones, and poultry
• Seafood and soft shells
• Pet food (nonmedicated)
FOOD-SOILED PAPER*
• Food-stained paper
• Paper egg cartons
• Paper napkins
• kitchen paper towels
• Pizza boxes
• Plates
• To-go boxes (no coating)
• Wood and fiber-based utensils
*Must be 100% fiber-based. No materials with -
plastic, wax, or bioplastic coating, liner, or
laminate.
UNACCEPTED ITEMS
• All plastics
• Cacti, succulents, and yucca
• Compostable plastics (bioplastics)
• Coffee cups and pods
• Fats, oils, and grease
• Food stickers (please remove from items)
• Gloves
• Hard shells (clams, mussels, oysters)
• Medication
• Palm fronds
• Paper napkins with cleaning chemicals
• Paper towels with cleaning chemicals
• Parchment and wax paper
• Pet waste
• Rocks and soil
• Rubber bands and twist ties
• Tea bags
• Textiles
• Tissues and wet wipes
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[ATTACHMENT 3]
EXHIBIT 4
STREET SWEEPING
1. Routine Sweeping Services. Contractor shall provide street sweeping services as follows: on designated arterial (major), collector, commercial, residential, and industrial streets as indicated by Exhibit 4-A, or as modified upon mutual agreement of City and Contractor. Alleys, culde-sacs, street centerlines, street cross and slot gutters, municipal public facilities, and City park parking lots are also included as specified hereunder.
2. Frequency. Sweeping hours for streets shall be as designated by City, Monday through Friday, or as approved schedules deem necessary. All streets, with the exception of Paramount Boulevard, are scheduled for sweeping every week (an estimated total of 52 sweeps per year). Paramount Boulevard is scheduled for sweeping twice per week, or approximately 104 sweeps per year. All cross gutters are scheduled for sweeping once per week at the time the corresponding streets are swept. Exhibit 4-A illustrates the day and time of scheduled sweeping for all City streets.
Alleys are scheduled for sweeping once per week, Slot gutters (approximately 1,500 linear feet Citywide) and bridges (approximately 3,000 linear feet Citywide) are scheduled for sweeping once per month.
3. Additional Services. Contractor will provide street sweeping for at to forty (40) City-initiated events per year, without charge. City shall provide three (3) business days advanced written notice of any request for service hereunder except in the case of call-outs, in which case City shall provide advance written notice as soon as reasonably practicable. The intent of this provision is to ensure Contractor provides street sweeping services at parades, festivals, market nights, and similar community events and celebrations hosted by the City as well as call-outs not reimbursable by state or federal authorities.
4. Changes in Service. City may elect to increase or decrease the frequency or number of miles of street sweeping services, subject to negotiation in good faith between Contractor and City. City may also request additional services not specified in or greater than specified in Section 3 of this Exhibit, including special services for which City has or should have applied and received reimbursement from state or federal authorities, such as services for natural disasters, floods, earthquakes, or similar acts of god, and other emergencies. Such changed or new work shall be subject to the prior written approval of City and Contractor and an agreement between the parties for compensation for work performed, which shall not be unreasonably withheld, conditioned, or delayed.
5. Prevailing Wage. Notwithstanding any provision in the Agreement to the contrary, the provision of street sweeping services is not subject to payment of prevailing wages or related laws, regulations, or policies (“Prevailing Wage Law”). In the event, the Prevailing Wage Law applies to such services, retroactively or prospectively, Contractor shall be entitled to the compensation payable to Contractor for the provision of street sweeping services in accordance with the Prevailing Wage Law.
6. Schedule of Performance.
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a. Days. Routine street sweeping shall be conducted Monday through Friday unless otherwise approved by the Public Works Director. b. Hours. Standard operating hours for sweeping under this Exhibit are 4:00 a.m.-6:00 p.m. or as otherwise adjusted by City and the Contractor in accordance with Approved Sweeping Plan.
c. Holidays. All sweeping is to be completed according to the Approved Sweeping Plan, except on the holidays specified in Section 4.6.1.1 of the Agreement and Martin Luther King Day, President’s Day, Veteran’s Day, and Christmas Eve.
7. Disposal and Recycling of Materials. Contractor shall transport and dispose of all sweeping in accordance with all City, County, State, and Federal requirements. To the extent possible, Contractor shall divert or compost all street sweepings from landfills. Contractor shall report on a monthly basis the tonnage of sweepings Collected and the tonnage Disposed of at a composting or recycling center and the name and address of the Facility. Upon City’s request, Contractor shall also provide City with the pertinent information from the composting or recycling Facility certifying the percentage of material processed that is disposed at landfill and where is material sent after collection and processing at the facility.
8. Street Sweeping Equipment.
a. Operation. Street sweeper speed and broom pattern shall be in accordance with the manufacturer’s recommendations. Sweepers when driven shall have a maximum of the posted speed limit.
b. Standard Equipment. Contractor shall use such standard heavy street sweeping equipment as is necessary to clean the City streets of paper, dirt, rocks, leaves and debris. c. Maintenance. Contractor shall maintain all equipment. Equipment should be clean and in good mechanical condition, uniformly painted and numbered. d. Cleaning. Contractor shall have all sweepers return to the Contractor’s yard for washouts and hopper cleaning.
e. Inspections. Contractor’s equipment shall be subject to inspection by the Director of Public Works or designee and upon notification in writing to Contractor that any equipment does not comply with the standards herein, such equipment shall be removed from, service by the Contractor and not again so used until inspected and approved in writing by the Director of Public Works or designee.
f. Lighting. All vehicles shall be equipped with an operational rotating amber light when parked or used on public streets. Contractor shall use light warnings instead of loud sound signals except where required by law for the protection of personnel. g. Water for Dust Control. City shall provide sufficient water for use street sweeping operations to maintain a near dustless condition. Water for this use will be made available by the City at no cost to Contractor. Contractor is to coordinate with the Public Works Director in -28-
advance to identify the regular location(s) for water access. Access to water/hydrants without a meter is prohibited. If Contractor obtains water from a provider that is not the City, Contractor is responsible for obtaining and paying for the water except in such circumstances where the City no longer provides water to Contractor at no cost to Contractor, in which case the City will reimburse Contractor for the cost of procuring water from the City or a replacement provider, as applicable. h. CARB Requirements; Equipment Failure. All sweeping vehicles shall conform to applicable California Air Resources Board requirements. In cases of equipment failure which precludes the sweeping of scheduled streets during their posted time frames, Contractor shall make every reasonable effort to provide services during the scheduled time frames. Should the equipment be of such a duration that the regularly scheduled street sweeping of a posted street is not able to be swept during the designated time frames, Contractor shall sweep those neglected (not swept during the designated time frames) streets during the first available opportunity. i. Special Equipment. Contractor shall have all sweepers servicing City equipped with a GPS Navigation System which provides real-time GPS tracking of vehicles with a maximum update time of three (3) minutes; historical GPS data by vehicle for a minimum of sixty (60) days; speed monitoring of vehicle; and report capability on demand, to provide activity data, route, start/stop times and locations, idle time, speed record by day or route. j. Equipment Storage. Contractor shall be responsible for all costs associated with equipment storage. No material and equipment shall be stored where it will interfere with the free and safe passage of public or traffic. At the end of each day’s work and at all other times when sweeping operations are suspended for any reason, Contractor shall remove all equipment and other obstructions from the roadway and open it for use by traffic.
9. Parking Enforcement Officer – Coordination. City will use a “Parking Enforcement Officer” to cite vehicles for parking during street sweeping hours. Contractor shall coordinate their sweeping activities with the Parking Enforcement Officer, including route of travel.
All costs for coordination are the responsibility of Contractor, and no additional compensation will be allowed. City’s Parking Enforcement Officers will follow the chain of command in identifying deficiencies or missed areas.
10. Contractor/City Communication. Contractor shall establish and maintain an office and have an authorized supervisor as the point of contact for communications with City for street sweeping. Contractor’s office shall have a twenty-four (24) hour telephone service and a responsible person in charge seven (7) days a week to receive all requests for emergency service, which are forwarded by City. Contractor shall respond and provide emergency service within one (1) hour from the time a call is placed by the City. Requests for routine service or complaint issues shall be resolved expeditiously within the following twenty-four (24) hour period.
11. Damage. Contractor shall report without delay any damage to City equipment, City property or private property. The Contractor shall be liable for damages solely caused by his/her actions. Any repairs and associated cost resulting from Contractor caused damage shall be the responsibility of the Contractor.
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12. Hazardous Waste. Contractor shall not be required to remove any Hazardous Waste from the street surface. If, in the course of performing street sweeping services, any suspected Hazardous Waste is encountered, Contractor shall immediately report the location to the City, and any other responsible agency.
13. Weather Conditions. City’s designated representative reserves the right to be the sole judge if the weather is too inclement to sweep the streets. When adverse weather interrupts sweeping, Contractor shall adjust the work schedule so as to return to the normal weekly schedule the following week. City reserves the right to direct schedule changes made necessary due to inclement weather. In the event of a rainy day, the Contractor shall obtain approval from the City representative for the days sweeping.
14. Contractor Complaints and Deficiencies.
a. Complaints Received by the City. The City will notify the Contractor by telephone and/or in writing of each contract complaint reported. If there are any complaints or deficiencies on a given day, the City will prepare a report and submit it to the Contractor by 3:30 pm. on the next City work day. Inspection reports of unsatisfactory performance will include description of deficiency, location, and the curb line, miles (or fraction thereof), to be deducted from the day’s performance.
b. Complaints received by Contractor. Contractor shall submit to the City all complaints which are received on a daily basis.
c. Complaint Resolution. Contractor shall contact the office of the Director of Public Works within the same working day after receiving a complaint. If requested by the Director of Public Works or his/her authorized representative, the Contractor shall personally appear at the City to confer about any and all complaints. The Contractor shall promptly respond to all calls and act upon all reasonable requests and instructions.
d. Complaints Log. Contractor shall keep a log of all complaints and shall submit this log to the City on a monthly basis. The log shall contain information relative to the resolution of each complaint.
15. Contractor’s Employees.
a. Identification. Contractor’s employees shall be required to wear a clean uniform bearing the Contractor’s name. Employees who normally and regularly come into direct contact with the public shall bear some means of individual identification, such as a name tag or identification card.
b. Driver’s License. Employees driving the Contactor’s vehicle shall at all times possess and carry a valid State of California Driver's License for the appropriate type, size, weight, and use of the vehicle operated by the Contractor’s employee. c. Conduct. The Contractor’s employees, officers, and subcontractors shall not identify themselves as being employees of the City of Paramount. Employees shall conduct themselves in such a manner as to avoid embarrassment to the City of Paramount and shall be -30-
courteous to the public. If required and at its sole discretion, the City retains the right to require a particular operator be removed from working on this contract.
16. Level of Cleanliness. Contractor shall remove all debris from all streets every sweeping cycle except to the extent Contractor is obstructed or otherwise unable to reasonably remove debris. Contractor shall make as many passes as necessary to accomplish the task. This action will include removal of spills of concrete, rock gravel, accident debris, etc. items of large size, such as cardboard, palm fronds, large rocks, etc., shall be physically picked up and placed in the sweeper by the operator or other personnel, if possible. Contractor shall move excessively large items that can be physically picked up from the area to be swept into the parkway area and notify City.
17. Areas to be Cleaned.
a. City Streets. Arterial, industrial, residential, and commercial streets, including: cul-de-sacs shall be swept on the days and within the hours indicated in Exhibit 4-A. b. City Facilities. The following City facilities shall be swept at the frequency level indicated: (i) City Hall – once per week; (ii) Paramount Park/Community Center – once per week; Progress Park – once per week. Subject to Section 4 of this Exhibit, City may change from time to time the list of public facilities to be swept by adding to or deleting from the foregoing list. c. City Curbs. All curbs (including median curbs and curb returns), uncurbed pavement edges, painted (2-way) left tum lanes and flush concrete or paved medians shall be swept each time the associated street is swept. Sweeping shall consist of a minimum 8-foot wide span from each edge of the street. In no case shall there be any debris remaining on this area after sweeping is completed, provided the area is unobstructed.
18. Sweeping Practices. Contractor shall at all times use good sweeping practices of like street sweeping providers in similar jurisdictions and will be responsible to make adjustments to the equipment, as reasonably directed by City. Contractor must exercise due care so as to prevent spilling, scattering, or dropping of refuse throughout sweeping activity and shall immediately clean up such spillage, dropping, or scattering. Sweeping practices include, but are not limited to: (i) position gutter brooms at the proper angle to the gutter line, touching the curb; (ii) set main broom in level position to assure debris pick-up and pply appropriate broom pressure for sweeping conditions to obtain a minimum strike pattern of five (5) inches; (iii) adjust spray nozzles to keep dust, caused by sweeping, to a minimum; (iv) center dirt reflector and main drag shoes shall be properly maintained and adjusted, or any other device designed to direct debris or dirt into the path of the rear broom; (v) sweeping speed shall be adjusted to street conditions with a maximum speed of six (6) miles per hour and patterned concrete medians and crosswalks shall be swept at a maximum speed of three (3) miles per hour; (vi) operate sweepers as close to parked cars or other obstacles as safety allows; and (vii) use common sense and good judgement at all times.
19. Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this -31-
Agreement, and shall indemnify, defend, and hold harmless the city against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against City hereunder. -32-
EXHIBIT 4-A
STREET SWEEPING MAP AND SCHEDULES
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[ATTACHMENT 4]
EXHIBIT 5
LIQUIDATED DAMAGES
A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that the services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties further acknowledge that consistent, reliable Solid Waste handling service is of utmost importance to City and that City has considered and relied on Contractor's representations as to its quality of service commitment in entering this Agreement with it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City's right to treat such breaches as an event of default under Article 11 of this Agreement, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damages provisions at the time that the Agreement was made.
Contractor City
Initial Here Initial Here
Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below:
1. Collection Reliability
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a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceeds five (5) such failures per calendar year:
$100.00 per occurrence.
b) For each failure, which exceeds ten (10) such failures per calendar year, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3:
$100.00 per occurrence.
c) For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days:
$50.00 per occurrence.
2. Collection Quality
a) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences per calendar year:
$100.00 per container.
b) For each occurrence in violation of the City’s noise ordinance or of discourteous behavior which exceeds ten (10) per calendar year:
$150.00
c) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences per calendar year:
$250.00 per occurrence.
d) For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes which exceeds ten (10) such failures per calendar year:
$250.00 per occurrence.
3. Customer Responsiveness
a) For each failure to initially respond to a Customer complaint within one (1) business day, and for each additional day in which the complaint is not addressed, which exceeds five (5) per calendar year:
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$150.00 per day.
b) For each failure to process Customer complaints as required by Article 5, Section 5.2.2 of the Agreement, which exceeds five (5) per calendar year:
$150.00 per occurrence.
c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within forty-eight (48) hours (excepting holidays and weekends) of request from City or Customer:
$ 50.00 per day
d) For each failure to repair or replace a damaged or missing Container within two (2) business days of request from City or Customer:
$ 50.00 per day
e) For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor:
$100.00 per occurrence.
f) For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date:
$100.00 per occurrence.
g) For each day, for each Container, that delivery is delayed in accordance with Sections 4.1.6 and 4.1.7 (temporary Bin and Roll-Off Box services) that exceed ten (10) days per calendar year:
$50.00/day/Container
4. Diversion Efforts
a) For each calendar year in which Contractor fails to provide support to the City within thirty (30) days of year-end, documenting that it diverted at least the minimum tonnage required by Section 4.2.6.A under the Agreement:
$50 for each ton below tonnage level necessary to meet Diversion goal. b) For every Recycling or Organic Waste Cart Collected as Refuse without issuing a red tag per Section 4.2.4 of the Agreement:
$50 per Cart
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5. Timeliness of Submissions to City
Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be:
i) Monthly Reports:
$50 per day
ii) Annual Reports:
$100 per day
6. Accuracy of Billing
Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, or includes charges not identified on the City-approved rate schedule or otherwise approved in writing by the City, in excess of ten (10) invoices annually, and that are not accurately corrected in the next Billing run:
$25 per invoice, not to exceed $2,500 per Billing run
7. Cooperation with Service Provider Transition
a) For each day routing information requested by City Manager in accordance with Section 12.8 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service :
$1,000/day
b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.8:
$1,000/day
c) For delay in not meeting the requirements contained in Sections 4.11 and 12.8 in a timely manner, in addition to the daily liquidated damages for breach under 7(a) and 7(b) above, liquidated damages of:
$10,000
8. General Contract Adherence
For those penalties and items not specified in this Exhibit 5, for each day that Contractor fails to provide services required under the Agreement, or comply with -37-
terms of the Agreement, five (5) business days after receipt of written notification from City that such services are not being provided or terms are not being met:
$300.00/day.
9. SB 1383 Requirements
a. Use of Unauthorized Facilities. For each individual occurrence of delivering Solid Waste to a Facility other than permitted under Section 4.8 this Agreement. 1st violation - $50 per ton per offense
2nd violation - $100 per ton per offense
3rd and subsequent violations - $250 per ton per offense b. Failure to Perform Contamination Monitoring Requirements as specified in Exhibit 3, Section 5 (Route Reviews). For each failure to conduct contamination monitoring.
1st violation - $50 per route per occurrence or per waste evaluation per occurrence 2nd violation - $100 per hauler route per occurrence or per waste evaluation per occurrence
3rd and subsequent violations - $250 per route per occurrence or per waste evaluation per occurrence
c. Failure to Comply with Container Colors Requirements as Required by SB 1383. For each occurrence of Contractor's failure to comply with Container color requirements.
1st violation - $50 per container occurrence
2nd violation - $100 per container occurrence
3rd and subsequent violations - $250 per container occurrence d. Failure to Conduct Compliance Tasks. For each failure to conduct any compliance review specified in Exhibit 3, Section 6 (Facility Waste Evaluations) under this Agreement.
1st violation - $50 per occurrence
2nd violation - $100 per occurrence
3rd and subsequent violations - $250 per occurrence
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g. Failure to Issue Contamination Notices. For each failure of Contractor Collection personnel to issue contamination notices and contaminating processing fee notices and maintain documentation of issuance as required in Exhibit 3, Section 7 (Contamination Protocols).
1st violation - $50 per route per day
2nd violation - $100 per route per day
3rd and subsequent violations - $250 per route per day
City Manager may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints.
Prior to assessing liquidated damages, City Manager shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/non-performance.
Contractor may review (and make copies at its own expense) all information in the possession of City Manager relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/nonperformance. City Manager will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages.
The decision of City Manager shall be final.
C. Amount. City Manager may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement.
D. Timing of Payment. Contractor shall pay any undisputed liquidated damages assessed by City Manager within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11.2, or both.
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 24:013
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT APPROVING THE MODIFICATION OF FEES AND CHARGES FOR PICKUP AND HAULING OF REFUSE WITHIN THE CITY OF PARAMOUNT WHEREAS, the City of Paramount has entered into an Amended and Restated Agreement with Athens Services, Inc., dated May 14, 2024, for Integrated Solid Waste Management Services; and
WHEREAS, pursuant to the Municipal Code of the City of Paramount and said agreement, the City Council may, by resolution, approve the modification of fees and charges for said services; and
WHEREAS, the City of Paramount will partially fund the State mandated Residential Food Waste Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:
SECTION 1. The above recitations are true and correct.
SECTION 2. The City Council, after study and investigation, and pursuant to Article II, Division 3 of the Paramount Municipal Code and Article 6.1 of said agreement, does approve the fee schedule as shown in Exhibits 1a, 1b, 1c, 1d, and 1e for collection, removal, and disposal of garbage, recyclables, rubbish, and other refuse matter within the City.
A. Single Family Residences, including up to four residential dwellings, shall be charged $26.07 per month per dwelling unit.
B. Single Family Residences - Additional Cart Rates, additional refuse cart:
$8.31. Additional organic waste cart: $4.15. Additional recycling cart: $6.23.
C. Commercial/Multifamily/Industrial - Bins
All commercial/industrial and multifamily accounts shall be charged rates as set forth in the table below. The AB 939 fee for automated barrels is $0.90 per pick-up (one barrel).
RESOLUTION NO. 24:013