Agenda packet — Paramount City Council, August 12, 2025 (part 2 of 4)

HOME ARP Grant Agreement
Title II of the Cranston-Gonzalez National Affordable Housing Act Assistance Listings #14.239 – HOME Investment Partnerships Program U.S. Department of Housing and Urban Development
Office of Community Planning and Development

1. Grantee Name (must match name associated with 3b.) and Address

2. Grant Number (Federal Award Identification Number (FAIN) M21MP060558
City of Paramount City
16400 Colorado Avenue
Paramount, CA 90723-5012
3a Tax Identification Number
956005780
3b. Unique Entity Identifier (formerly DUNS)
NL6BDNFT6JE6

4. Appropriation Number
861/50205

5. Budget Period Start and End Date
FY 2021 – 09/30/2030

6. Previous Obligation (Enter “0” for initial FY allocation) $1,087,336.00 a. Formula Funds $1,087,336.00

7. Current Transaction (+ or -) $1,264.00
a. Administrative and Planning Funds Available on Federal Award Date $ b. Balance of Administrative and Planning Funds $
c. Balance of Formula Funds $1,264.00

8. Revised Obligation $1,088,600.00
a. Formula Funds $1,088,600.00

9. Special Conditions (check applicable box)
Not applicable Attached

10. Federal Award Date (HUD Official’s Signature Date)
(mm/dd/yyyy) 9 / 20 / 2021

11. Indirect Cost Rate*
Administering Agency/Dept. Indirect Cost Rate Direct Cost Base

12. Period of Performance
Date in Box #10 - 09/30/2030
%
%
%
%
* If funding assistance will be used for payment of indirect costs pursuant to 2 CFR 200, Subpart E-Cost Principles, provide the name of the department/agency, its indirect cost rate (including if the de minimis rate is charged per 2 § CFR 200.414), and the direct cost base to which the rate will be applied. Do not include cost rates for subrecipients.

The HOME-ARP Grant Agreement (the “Agreement”) between the Department of Housing and Urban Development (HUD) and the Grantee is made pursuant to the authority of the HOME Investment Partnerships Act (42 U.S.C. 12701 et seq.) and Section 3205 of the American Rescue Plan (P.L. 117-2) (ARP). HUD regulations at 24 CFR part 92 (as may be amended from time to time), the CPD Notice entitled “Requirements for the Use of Funds in the HOME-American Rescue Plan Program” (HOME-ARP Implementation Notice) (as is now in effect and as may be amended from time to time),, the Grantee’s HOME-ARP allocation plan (as of the date of HUD’s approval, and as amended from time to time), and this HOME-ARP Grant Agreement, form HUD-40093a, including any special conditions (in accordance with 2 CFR 200.208), constitute part of this Agreement. HUD’s payment of funds under this Agreement is subject to the Grantee’s compliance with HUD’s electronic funds transfer and information reporting procedures issued pursuant to 24 CFR 92.502 and the HOME-ARP Implementation Notice (both as are now in effect and as may be amended from time to time). To the extent authorized by HUD regulations at 24 CFR part 92, HUD may, by its execution of an amendment, deobligate funds previously awarded to the Grantee without the Grantee’s execution of the amendment or other consent.

The Grantee agrees that funds invested in HOME-ARP activities under the HOME-ARP Implementation Notice are repayable in accordance with the requirements of the HOMEARP Implementation Notice as it may be amended from time to time. The Grantee agrees to assume all of the responsibility for environmental review, decision making, and actions, as specified and required in regulation at 24 CFR 92.352 and 24 CFR Part 58, as well as the HOME-ARP Implementation Notice.

The Grantee must comply with the applicable requirements at 2 CFR part 200, as amended, that are incorporated by the program regulations and the HOME-ARP Implementation Notice, as may be amended from time to time. Where any previous or future amendments to 2 CFR part 200 replace or renumber sections of part 200 that are cited specifically in the program regulations or HOME-ARP Implementation Notice, activities carried out under the grant after the effective date of the 2 CFR part 200 amendments will be governed by the 2 CFR part 200 requirements, as replaced or renumbered by the part 200 amendments.

The Grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Universal Numbering System and System for Award Management (SAM) requirements in Appendix I to 2 CFR part 200, and the Federal Funding Accountability and Transparency Act (FFATA) in Appendix A to 2 CFR part 170.

The Period of Performance for the funding assistance shall begin on the date specified in item 12 and shall end on September 30th of the 6 th fiscal year after the expiration of
the period of availability for obligation. Funds remaining in the grantee’s Treasury account after the end of the budget period will be cancelled and thereafter not available for obligation or expenditure for any purpose. Per 31 U.S.C. 1552, the Grantee shall not incur any obligations to be paid with such assistance after the end of the Budget Period.

The Grantee must comply with the requirements of the Build America, Buy America (BABA) Act, 41 U.S.C. 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee’s infrastructure project. Pursuant to HUD’s Notice, “Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 FR 17001) 2023-05698.pdf (govinfo.gov), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.

13. For the U.S. Department of HUD (Name and Title of Authorized Official)

14. Signature 15. Date
/ /

16. For the Grantee (Name and Title of Authorized Official)

17. Signature 18. Date
/ /

19. Check one:

Initial Agreement Amendment # 1

20. Funding Information: HOME ARP
Source of Funds Appropriation Code PAS Code Amount
2021 861/50205 HMX $1,264.00
Docusign Envelope ID: F44F283F-F4B7-4967-93D0-7F0653E1CE2D Ester Dela Acting CPD Director 5/29/2025
Digitally signed by
John Moreno
Date: 2025.07.31
16:08:23 -07'00'
To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: August 12, 2025
SUBJECT: AMENDMENT NO. 2 TO THE ENGINEERING SERVICES AGREEMENT WITH HAZEN AND SAWYER FOR WELL 16 SUPPORT

BACKGROUND
In November 2023, the City retained the services of engineering firm, Hazen and Sawyer, to provide professional engineering services related to water quality and treatment, system hydraulics, hydrogeology, well design, and operations related to Well 16. This firm has technical experts that extend into construction and start-up phases of well and treatment plant projects.

DISCUSSION
Staff has worked extensively with Hazen and Sawyer to complete the sampling as required by the State Division of Drinking Water (DDW) and finalize the permitting application for Well 16 to be fully operational. Once fully operational, the City can then revert back to having almost 100% groundwater as its water source, thereby reducing operating costs given the reduced reliance on imported water. Amendment No. 2 is an extension to the term agreement as we await final permitting and to cover any additional final activities related to the Well 16 startup.

FISCAL IMPACT
Additional funding for this Amendment No. 2 in the amount of $11,160 was included in the Fiscal Year 2025-26 Budget utilizing Admin Water Funds.

Fund Division Account Service Description Amount
Water Fund
(511)
Admin (5111) 511-5111-5156 Water on-call
engineering
$ 1,160
Water Fund
(511)
Admin (5111) 511-5111-5156 Water Permitting
Engineering Services
$ 10,000
Agenda Report August 12, 2025
AMENDMENT NO. 2 – HAZEN AND SAWYER (WELL 16 SUPPORT) 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 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 Amendment No. 2 to the engineering services agreement with Hazen and Sawyer for Well 16 support; and authorize the Mayor or her designee to execute the amendment.
-1-

SECOND AMENDMENT TO THE SERVICE AGREEMENT WITH HAZEN AND SAWYER FOR

ENGINEERING SERVICES

THIS SECOND AMENDMENT TO AGREEMENT FOR ENGINEERING SERVICES (“AMENDMENT”) is made and entered into this 12
th day of August, 2025 between the City of
Paramount, a municipal corporation in Los Angeles County, California, (hereinafter "CITY") and Hazen and Sawyer, with its primary office located at 7700 Irvine Center Drive, Suite 200, Irvine, CA 92618 (hereinafter "CONTRACTOR") (collectively, "the Parties"), and amends that certain agreement between CONTRACTOR and CITY approved by the City Council on November 15, 2023 (“AGREEMENT”).

RECITALS
WHEREAS, CITY and CONTRACTOR entered into an Agreement on November 15, 2023, whereby CONTRACTOR would provide engineering services related to Well 16 for CITY; and
WHEREAS, CITY and CONTRACTOR approved the First Amendment to that Agreement on May 13, 2023 to amend the scope of services, modify compensation, and term of said Agreement.

WHEREAS, CITY and CONTRACTOR now each desire to modify the term of said Agreement

NOW, THEREFORE, BE IT AMENDED BY AND BETWEEN THE PARTIES AS FOLLOWS:

1. Section 5. TERM is hereby amended to provide that the term of this AGREEMENT shall expire on December 31, 2025.

2. Section 2. COMPENSATION
Is hereby amended so that the CITY agrees to pay the CONTRACTOR an additional $11,160 in full compensation for all additional services performed as outlined in Exhibit “C”. Services and compensation as outlined in “Exhibit A” shall remain the same. Invoices for payment shall be submitted on a monthly basis and shall be approved by the Director of Public Works or her designee. CITY agrees to reimburse CONTRACTOR for approved expenses in an amount not to exceed $125,450.

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.

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.

Section 3. All other terms and conditions of the Agreement shall remain the same.

IN WITNESS HEREOF, the CITY and CONTRACTOR have executed this SECOND AMENDMENT to the AGREEMENT as of the date first herein above set forth.

CITY OF PARAMOUNT HAZEN AND SAWYER
By: By:

Peggy Lemons, City Mayor Cindy Miller, Vice President
ATTEST:

By:

Heidi Luce, City Clerk
APPROVED AS TO FORM:

By:

Nicholas R. Ghirelli, City Attorney
Fee Schedule - Amendment 2
City of Paramount
Consulting Assistance for Startup and Closeout for the City's Well 16 Treatment Plant Project Project
Manager
Startup
Manager
Principal /
Tech.

Advisor
Mechanical Electrical I&C Water
Quality Mgr
Water
Quality

MH SM CM/NB SC JY AM SB MV
$250 $300 $310 $300 $300 $265 $300 $240
TMH Total
Task 6A2 - Project Management
a. Scheduling, Coordination, and Planning Activities 8 8 $2,400 b. Facility Startup 8 8 $2,400
c. Closeout Activities/Permitting Support 8 4 4 8 24 $6,360 8 20 4 0 0 0 0 8 40 $11,160
GRAND TOTALS 8 20 4 0 0 0 0 8 40 $11,160
TASK 6 TOTALS
Hazen and Sawyer
"Exhibit C"
Hazen and Sawyer
Paramount Well 16 Rate Sheet
2025

EMPLOYEE TITLE CATEGORY RATE
Cindy Miller Principal in Charge Vice President $310
Mary Hambel Project Manager Associate $250
Steve Malloy Startup Manager Senior Associate II $300
Nicole Blute Technical Advisor Vice President $310
Steve Conner Mechanical Senior Associate II $300
Alex Rahimian-Pour Process Senior Associate II $300
Jack Yao Electrical Senior Associate II $300
Alan Mlakar InstrumentaƟon & Controls Associate $265
Stephanie Bustos Water Quality Manager Senior Associate I $300 Michelle Vokaty Water Quality Senior Principal ScienƟst $240 Megan WaƩ Assistant Engineer Assistant Engineer II $160 To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: August 12, 2025
SUBJECT: LICENSE AGREEMENT WITH LOS ANGELES DEPARTMENT OF

WATER AND POWER FOR THE WEST SANTA ANA BRANCH BIKEWAY
TRAIL PROJECT – PHASE II

BACKGROUND
For a number of years, the City has been pursuing funding to construct the West Santa Ana Branch (WSAB) Bikeway Class I bicycle and pedestrian trail along the railroad rightof-way that runs diagonally across the City. The project has been planned in phases, allowing the City to request funding from different sources and negotiate the various lease agreements in order to complete the approximate 2.3-mile trail that connects users from the Los Angeles River to the San Gabriel River through the cities of Paramount and Bellflower. Phase II Section 1 of this WSAB trail is currently under construction, which traverses though the northern side of Paramount Park. Another section of this bikeway trail will traverse through property owned by the Los Angeles Department of Water and Power (LADWP), in which case the City will need to enter into a license agreement with LADWP for construction and use of the property.

DISCUSSION
Phase I from Lakewood Boulevard to Somerset Boulevard has already been constructed.

The other three phases are as follows: Phase II will run from Somerset Boulevard to Rosecrans Avenue; Phase III will be from Rosecrans Avenue to Garfield Avenue; and Phase IV will be from Garfield Avenue to the Los Angeles River. Construction is currently underway for Phase II along the north side of Paramount Park.

Phase II of the bikeway trail requires a license agreement with the City of Los Angeles Department of Water and Power (LADWP) as they are the owners of the property on which we will be building the majority of the bikeway trail. For the past few years, City staff has been engaging regularly with LADWP staff to obtain these necessary approvals, coordinate site access and anticipated construction of the WASB trail on the LADWP right-of-way. In September 2024, LADWP provided the City with a Letter of NonObjection, which allowed construction to commence in the areas located at Paramount Park. Staff continued to meet regularly to secure the necessary approvals to continue the work eastbound for this segment that runs through Somerset Blvd.

Agenda Report August 12, 2025
LICENSE AGREEMENT WITH LADWP Page 2
LADWP has agreed to a two-year license agreement, which includes a license fee in the amount of $119,480, based on current appraisals. After the two years, there will be an annual fee of $47,300 plus annual Consumer Price Index (CPI) adjustments. This twoyear agreement is temporary in nature but allows the City to continue with WASB Phase II construction. We will continue to work closely with LADWP on the long-term license agreement, which is anticipated to take several more months to complete, as it requires approval by the LADWP Board. A draft copy of the two-year license agreement is attached for reference, subject to final review and approval by legal counsel (LADWP and City of Paramount).

FISCAL IMPACT
An appropriation of $119,500 from Measure M (Fund 234) is needed to fund the LADWP license fee associated with the West Santa Ana Branch (WSAB) project (Project No. 9932), as shown in the table below. This cost was not included in the FY 2025-26 Adopted Budget. However, the proposed appropriation remains within available funding levels for the fund.

Staff recommends appropriating Measure M funds to cover the license fee for the current fiscal year. Ongoing funding for this recurring expense will be incorporated into future budgets as part of the City’s long-term financial planning for annual license obligations.

Fund Division Account Service Description Request
Amount
Measure M Capital Imp. 234-9932-7101 WSAB Bikeway Phase 2 – LADWP License Fee
$119,500

RECOMMENDED ACTION
1) Appropriate $119,500 from Measure M funds for this expense; and 2) Authorize the City Manager to execute the license agreement with the Los Angeles Department of Water and Power related to the West Santa Ana Branch Bikeway Trail project in a form approved by the City Attorney.

FILE NO. P-100034
AGREEMENT TYPE: LICENSE AGREEMENT

GRANTED BY THE CITY OF LOS ANGELES DEPARTMENT OF

WATER AND POWER
TO

CITY OF PARAMOUNT
LADWP File No. P-100034 i Rev 11/2022

TABLE OF CONTENTS
ARTICLE 1 – TERMS AND CONDITIONS ......................................................................3 100. Licensed Area and Temporary Construction Area...........................................3 100.1 Licensed Area...............................................................................................3 100.2 Temporary Construction Area.......................................................................3 101. Permitted Use ..................................................................................................3 102. LADWP Superior Rights and Acknowledgements ...........................................3 102.1 Acknowledgement of Title.............................................................................3 102.2 License Only .................................................................................................3 102.3 Acknowledgement of Existing Easements and Licenses..............................3 103. Term.................................................................................................................4 103.1 Term and Commencement- Licensed Area..................................................4 103.2 Term and Commencement -Temporary Construction Area..........................4 104. License Fee......................................................................................................4 104.1 License Fee .................................................................................................4 104.1.1 License Fee- Licensed Area...................................................................4 104.1.2 License Fee-Temporary Construction Area ...........................................4 Licensee agrees to pay to LADWP the sum of Twenty-Four Thousand Eight Hundred Eighty ($24,880) dollars for the one-year (1) year term of this License Agreement for the Temporary Construction Area...................................................5 104.2 Payment Date and Address..........................................................................5 104.3 Conditions of Prorated License Fee..............................................................5 104.4 Intentionally Omitted .....................................................................................5 105. Other Fees .......................................................................................................5 105.1 Late Fee and Charges ..................................................................................5 105.2 Returned Check Fee.....................................................................................5 106. Deposits ...........................................................................................................6 106.1 Security Deposit............................................................................................6 106.2 Intentionally Omitted .....................................................................................6 107. Holdover...........................................................................................................6 108. Notices .............................................................................................................7 108.1 Notice Address..............................................................................................7 LADWP File No. P-100034 ii Rev 11/2022
108.2 Notice of Mailing Address Changes..............................................................7 109. Termination ......................................................................................................9 109.1 Intentionally left blank. ..................................................................................9 110. Restoration Requirements ...............................................................................9 110.1 Condition of Property at the Time of Surrender. ...........................................9 110.2 Satisfactory Restoration Requirements. .......................................................9 110.3 License Fee During Restoration .................................................................10 110.4 Balance of Deposit......................................................................................10 111. Licensee’s Responsibility ...............................................................................10 111.1 Material Costs, Labor Fees and Liens ........................................................10 111.1.1 Reasonable Precautions ......................................................................11 111.2 Personnel Training......................................................................................11 111.3 Clean up Cost and Expenses .....................................................................11 111.4 Signage.......................................................................................................12 111.5 Changes or Additions to Equipment or Improvements to Licensed Area and Temporary Construction Area..................................................................................13 ARTICLE 2 – STANDARD PROVISIONS......................................................................13 200. Assignment and Sublicensing........................................................................13 201. Indemnification ...............................................................................................13 202. Insurance Requirements ................................................................................14 202.1 Additional Insured Status Required ............................................................14 202.2 Separation of Insured’s Interest and Cross Liability Required....................15 202.3 Primary and Non-Contributory Insurance Required....................................15 202.4 Proof of Insurance for Renewal or Extension Required..............................15 202.4.1 Submissions of Acceptable Proof of Insurance and Notice of Cancellation ..........................................................................................................15 202.5 Claims-Made Insurance Conditions............................................................16 202.6 Failure to Maintain and Provide Proof as Cause for Termination ...............16 202.7 Subcontractor Compliance..........................................................................16 202.8 Specific Requirements................................................................................16 203. Possessory Interest........................................................................................17 204. No Relocation.................................................................................................17 205. Prevailing Wages ...........................................................................................17 LADWP File No. P-100034 iii Rev 11/2022
205.1 California Labor Code.................................................................................17 205.2 Davis-Bacon Act .........................................................................................17 205.3 Pre-Construction Orientation ......................................................................17 205.4 Licensee Enforcement of Applicable Laws .................................................18 205.5 Inclusion of Provisions in All Bid Specifications..........................................18 205.6 Labor Code Compliance Indemnity.............................................................18 206. Los Angeles City Charter Requirements and Los Angeles City OrdinanceRelated Provisions ......................................................................................................19 206.1 Ordinances, Statutes, Permits, and Regulations ........................................19 206.2 No Discrimination........................................................................................19 206.3 Affirmative Action Program .........................................................................19 206.4 Child Support Assignment Orders ..............................................................19 206.5 Equal Benefits Provisions ...........................................................................19 206.6 Equal Employment Practices......................................................................20 206.7 Slavery Disclosure Ordinance.....................................................................20 206.8 Limitations on Campaign Contributions and Fundraising ...........................20 206.8.1 Notice Regarding Los Angeles Campaign Contribution and Fundraising Restrictions ...........................................................................................................21 206.8.2 Licensee Compliance with Requirements ............................................21 206.9 Tax Registration Certificate.........................................................................21 206.10 Business Tax Registration Certificates....................................................22 206.11 Service Contract Worker Retention Ordinance .......................................22 206.12 Living Wage Ordinance ...........................................................................23 206.12.1 Minimum Initial Wage...........................................................................23 206.12.2 Sick Leave, Vacation or Personal Necessity........................................23 206.13 Los Angeles Administrative Code............................................................23 206.14 Contractor Responsibility Ordinance of the Los Angeles Administrative Code 23
206.14.1 Compliance with Federal State, and Local Laws and Regulations. .....24 206.14.2 Notification of Investigation by Governmental Agency.........................24 206.14.3 Notification of Violation of Federal State, and Local Laws and Regulations...........................................................................................................24 206.14.4 Pledge of Compliance ..........................................................................25 LADWP File No. P-100034 iv Rev 11/2022
206.14.5 Compliance with Contractor Responsibility Ordinance ........................25 207. Other Governmental Requirements ...............................................................25 207.1 Compliance with Low Impact Development (LID) Ordinances....................25 207.2 Utility Services Fees ...................................................................................26 207.3 Zoning Demands and Variances.................................................................26 208. Estoppel Certificate ........................................................................................26 209. Miscellaneous ................................................................................................27 209.1 Los Angeles Municipal Code Section 121 ..................................................27 209.2 License Agreement Will Not Be Recorded..................................................27 209.3 Counterparts ...............................................................................................27 209.4 No Third-Party Beneficiary..........................................................................27 209.5 License Governed by the State of California Law.......................................27 209.6 No Waiver ...................................................................................................27 209.7 Construction of License Agreement............................................................28 ARTICLE 3 – POWER SYSTEMS .................................................................................28 300. Maintenance...................................................................................................28 300.1 Maintenance and Repair.............................................................................28 301. Transmission Line Right-of-Way ....................................................................28 301.1 High-Voltage Electric Lines.........................................................................28 301.2 Equipment Under LADWP TLRW...............................................................30 301.3 Transmission Tower Restrictions................................................................30 301.4 Damage to Transmission Infrastructure......................................................30 301.5 Protective Barriers ......................................................................................30 301.6 Emergency De-Energization.......................................................................30 301.6.1 Licensee Cooperation ..........................................................................31 302. Operations......................................................................................................31 302.1 Hazardous Activity ......................................................................................31 302.2 Acknowledgement.......................................................................................31 303. Construction ...................................................................................................32 303.1 Required Permits ........................................................................................32 303.2 Improvements and Construction.................................................................32 303.3 Improvements Without Consent..................................................................32 LADWP File No. P-100034 v Rev 11/2022
303.4 Ground Elevations ......................................................................................32 303.5 Intentionally left blank. ................................................................................33 303.6 Qualified Electrical Workers........................................................................33 303.7 Grading or Excavation ................................................................................33 303.8 Grading, Paving, or Construction Work ......................................................33 304. Standard Conditions for Construction ............................................................33 305. Electric and Magnetic Fields ..........................................................................34 305.1 Acknowledgement of Information Package ................................................34 305.2 Understanding EMF – Electric Magnetic Fields..........................................34 305.3 Additional Information .................................................................................34 305.4 Distribution of Information...........................................................................34 306. Access............................................................................................................34 306.1 Intentionally left blank. ................................................................................34 306.2 Emergency Access .....................................................................................34 306.3 Patrol Road.................................................................................................35 306.4 Occasional Water Spotting .........................................................................35 307. Required Maintenance, By Licensee, of the Licensed Area and Temporary Construction Area, Landscaping, Parkways, Between Fences, and Public Street .....35 308. Restrictions ....................................................................................................35 308.1 Storage .......................................................................................................35 308.2 Reserved Rights .........................................................................................35 308.3 Cross Fencing.............................................................................................35 308.4 Other Restrictions .......................................................................................36 308.5 No Animals..................................................................................................36 309. General Guidelines for All Secondary Land Use Programs ...........................36 310. Other Requirements.......................................................................................36 310.1 Additional Requirements.............................................................................36 310.1.1 Future LADWP Facilities Improvements ..............................................36 310.1.2 Improvements.......................................................................................36 310.1.3 No Grading and No Structures.............................................................37 310.1.4 Tower Footing ......................................................................................37 310.1.5 Equipment Height.................................................................................37 310.1.6 Hi-Lift Vehicles .....................................................................................37 LADWP File No. P-100034 vi Rev 11/2022
310.1.7 Ground Cover.......................................................................................37 310.1.8 Irrigation System ..................................................................................37 310.1.9 No LADWP Liability for Operation and Maintenance Activities ............37 Tower Clearance..................................................................................38 310.1.10 38
310.1.11 Vehicle and/or truck repair, refueling, washing, and change of oil, are prohibited within the TLRW...................................................................................38 310.1.12 Standard Conditions for Construction Enclosed Conditions ................38 310.1.13 Underground Service Alert (DigAlert)...................................................38 EXHIBIT A-1...................................................................................................................41 EXHIBIT A-2...................................................................................................................41 EXHIBIT B......................................................................................................................43 Exhibit C......................................................................................................................43 EXHIBIT D......................................................................................................................45 EXHIBIT E ......................................................................................................................49 EXHIBIT F ......................................................................................................................53 EXHIBIT G......................................................................................................................57

LICENSE AGREEMENT
LADWP File No. P-100034 3 of 66 Rev 11/2022
The CITY OF LOS ANGELES (City), a municipal corporation and entity, acting by and through its DEPARTMENT OF WATER AND POWER (LADWP) and the City of Paramount (Licensee), whose address is 16400 Colorado Avenue Paramount, California 90723, hereby enter into this License Agreement to grant Licensee the nonexclusive right to use certain real property which is owned by the City of Los Angeles, and under the control and jurisdiction of LADWP, for the purpose of the construction, maintenance, and operation a Bikeway and Pedestrian Trail within and along a portion of LADWP’s Haynes Generating Station to Firestone Junction, Transmission Line Rightof-Way No. 1B, City of Paramount, County of Los Angeles, State of California, as shown on the drawings marked Exhibit A-1 (the “Licensed Area”) and Exhibit A-2 (the “Temporary Construction Area”), attached hereto and made a part hereof.

ARTICLE 1 – TERMS AND CONDITIONS
The grant of the License Agreement is given upon and subject to the following terms and conditions:
100. Licensed Area and Temporary Construction Area
100.1 Licensed Area
The Licensed Area is over portions of LADWP’s properties owned in fee, generally described as Los Angeles County Assessor Parcel Nos. 6241-001-270 and 271; 6268-005-270 and 271 as shown on the drawing marked Exhibit A-1, which is attached hereto and made a part hereof. The gross Licensed Area consists of approximately 58,266 sq. ft.
100.2 Temporary Construction Area
The Temporary Construction Area is over portions of LADWP’s properties owned in fee, generally described as Los Angeles County Assessor Parcel Nos. 6241-001-270 and 271; 6268-005-270 and 271 as shown on the drawing marked Exhibit A-2. The gross Temporary Construction Area consists of approximately 31,134 sq. ft.

LADWP finds that: (1) the Licensed Area and Temporary Construction Area are not presently needed for LADWP purposes; and (2) the grant of the License Agreement will not interfere with LADWP purposes. 101. Permitted Use
The Licensed Area shall be used for the following purpose of and in accordance with the development drawing marked Exhibit B (“Development Drawing”) which LADWP File No. P-100034 3 of 66 Rev 11/2022
is attached hereto and made a part hereof: for the construction, maintenance and operation of Licensee’s Bikeway and Pedestrian Trail.

The Temporary Construction Area shall be used for the following purpose and in accordance with the development drawing marked Exhibit B (“Development Drawing”) which is attached hereto and made a part hereof: for construction and construction lay down area of Licensee’s Bikeway and Pedestrian Trail.

The above described Licensed Area and Temporary Construction Area are to be used only for the purposes specified herein. This License Agreement shall be exercised so as not to interfere with any construction, maintenance, use, operation, presence, repair, replacement, relocation, reconstruction or removal of LADWP electric transmission, distribution or communication lines, pipelines, or other conduits as needed by LADWP.
300. LADWP Superior Rights and Acknowledgements
The right and permission of Licensee is subordinate to the prior and paramount right of LADWP to use said real property for the public purposes to which it now is and may, at the option of LADWP, be devoted. Licensee undertakes and agrees to use said Licensed Area and Temporary Construction Area and to exercise this License Agreement jointly with LADWP, and will at all times exercise the permission herein given in such manner as will not interfere with the full use and enjoyment of the Licensed Area and Temporary Construction Area by LADWP. The right and permission given herein shall not imply or confer any greater right or permission than LADWP has or can hereby lawfully give. LADWP makes no representation or warranty that the Licensed Area is suitable for the proposed use or can be used for Licensee’s intended purposes. 300.1 Acknowledgement of Title
Licensee hereby acknowledges title in the City of Los Angeles, a municipal corporation, and LADWP in the Licensed Area and Temporary Construction Area, and agrees never to assail or resist the same, and further agrees that Licensee's use and occupancy of the Licensed Area shall be referable solely to the permission herein given. 300.2 License Only
Licensee hereby acknowledges that this License Agreement is a license only for the Licensed Area and Temporary Construction Area and does not constitute a lease, invitation and/or obligation to lease, or any present or future interest in real property.
300.3 Acknowledgement of Existing Easements and Licenses LADWP File No. P-100034 4 of 66 Rev 11/2022
The License Agreement is subject to any and all easements and licenses currently encumbering the Licensed Area and Temporary Construction Area. Any and all approvals required by any existing easement and license holders which encumber the Licensed Area and Temporary Construction Area shall be obtained by Licensee. LADWP is under no obligation to obtain the cooperation of the existing easement and license holders.
301. Term
301.1 Term and Commencement- Licensed Area
The term of this License Agreement for the Licensed Area shall commence upon Board of Water and Power Commissioners’ approval and by City Council as needed or approval by Board of Water and Power Commissioners’ authorized designee and full execution of the License Agreement (“Commencement Date”) and shall terminate two (2) years thereafter, unless sooner terminated in accordance with this License Agreement.
301.2 Term and Commencement -Temporary Construction Area The term of this License Agreement for the Temporary Construction Area shall commence upon the Commencement Date and shall terminate one (1) year thereafter, unless sooner terminated in accordance with this License Agreement.
302. License Fee
302.1 License Fee
Licensee agrees to pay to LADWP the total sum of Seventy-Two Thousand One Hundred Eighty ($72,180) dollars for the first year of this License Agreement upon the Commencement Date.
302.1.1 License Fee- Licensed Area
Licensee agrees to pay to LADWP the sum of Forty-Seven
Thousand Three Hundred ($47,300) dollars for each year of the two (2) year term of this License Agreement for the Licensed Area.
302.1.2 License Fee-Temporary Construction Area
LADWP File No. P-100034 5 of 66 Rev 11/2022
Licensee agrees to pay to LADWP the sum of Twenty-Four
Thousand Eight Hundred Eighty ($24,880) dollars for the one-year (1) year term of this License Agreement for the Temporary Construction Area.
104.2 Payment Date and Address
All licensee fee payments shall be made yearly, payable in advance by the 1st day of ____________, each year of said term. Payment shall reference LADWP File P- 100034, and sent to the following address:

City of Los Angeles, Department of Water and Power
Attn: Real Estate Services (LADWP File No. P-100034)
221 N. Figueroa Street, Suite 1600
Los Angeles, CA. 90012
104.3 Conditions of Prorated License Fee
Upon expiration or termination of this License Agreement, the license fees shall be prorated from the date said Licensed Area is restored in a clean and orderly condition as determined by LADWP in accordance with this License Agreement, including, without limitation, Section 110 of this License Agreement.
104.4 Intentionally Omitted
105. Other Fees
302.2 Late Fee and Charges
If Licensee fails to pay the license fee in full within ten (10) calendar days after it is due, Licensee is in default and LADWP may terminate this License Agreement; provided, however, that LADWP may not terminate this License Agreement until it has given Licensee written notice of non-receipt of said license fee payment and ten (10) calendar days thereafter to make such license fee payment. Licensee shall pay LADWP a late charge of ten percent (10%) of the amount due, plus interest on all overdue license fee amounts at a rate of ten percent (10%) per annum. By this provision, LADWP does not waive the right to insist on payment of the license fee in full on the day it is due. 302.3 Returned Check Fee
If any check offered by Licensee in payment of license fees or any other amount due under this License Agreement is returned for any LADWP File No. P-100034 6 of 66 Rev 11/2022
reason other than that caused solely by LADWP, Licensee shall pay to LADWP a check-return processing charge in the amount of Fifty Dollars ($50).
303. Deposits
303.1 Security Deposit
Licensee shall post a security deposit in the amount of Ninety-Four Thousand Six Hundred ($94,600) dollars to assure compliance with the terms and conditions of the License Agreement, including, without limitation, with the restoration of the Licensed Area and Temporary Construction Area in accordance with Section 110 of this License Agreement. Security deposit shall be in the form of a cashier’s check or a letter of credit. No interest shall accrue on this deposit in favor of Licensee.

Licensee acknowledges that upon expiration or termination of the License Agreement for any reason, the posted security deposit, either in full or a portion thereof, may be applied to cure any outstanding balance and/or items related to the performance of the terms and conditions of the License Agreement including, but not limited to, damage to LADWP facilities or restoration of the Licensed Area and Temporary Construction Area in accordance with this License Agreement, including, without limitation, Section 110 of this License Agreement.
303.2 Intentionally Omitted
304. Holdover
In the event Licensee remains in possession of all or any part of the Licensed Area after the expiration or other termination of this License Agreement, whether with the apparent consent of LADWP or without the consent of LADWP, such occupancy shall be considered to be on “holdover” for month to month occupancy only, and not a renewal of this License Agreement nor an extension for any further term, and license fees and other monetary sums due hereunder shall be payable in the amount of One Hundred Twenty Five percent (125%) of the license fee payable for the last month of the two (2) year term and shall increase by Five percent (5 %) annually thereafter. Such month-to-month occupancy shall be subject to every other provision contained herein and such occupancy shall continue unless terminated by LADWP or Licensee giving the other at least thirty (30) calendar days prior written notice of the intention to terminate this License Agreement. The foregoing provisions of this Section are in addition to and do not affect the right of re-entry or any right of LADWP hereunder or as otherwise provided by law, and in no way shall such provision LADWP File No. P-100034 7 of 66 Rev 11/2022
affect any right which LADWP may have to recover damages from Licensee for loss or liability incurred by LADWP resulting from such failure or refusal of Licensee to surrender the Licensed Area. Nothing contained in this Section shall be construed as consent by LADWP to any holding over by Licensee and LADWP expressly reserves the right to require Licensee to surrender possession of the Licensed Area to LADWP as provided in this License Agreement upon the expiration or other termination of this License Agreement. In all other respects, the occupancy shall be governed by the provisions of this License Agreement. 305. Notices
All notices from one party to the other given pursuant to the terms of this License Agreement under the laws of the State of California, including but not limited to notice under the provisions of Section 1161 of the California Code of Civil Procedure, shall be in writing and shall be deemed to have been fully given when deposited in the United States mail, certified or registered, overnight, postage prepaid, or by traceable courier service and addressed to Licensee or LADWP at the addresses respectively specified below. Licensee hereby agrees that service of notice in accordance with the terms of this License Agreement shall be in lieu of the methods of service specified in Section 1161 of the California Code of Civil Procedure. The provisions of subdivision (a) of Section 1013 of the California Code of Civil Procedure, extending the time within which a right may be exercised, or an act may be done, shall not apply to a notice given pursuant to this License Agreement.
305.1 Notice Address.

Notice to LADWP:

Los Angeles Department of Water and Power
Attention: Real Estate Services (LADWP File No: P-100034) 221 N. Figueroa Street, Suite 1600
Los Angeles, CA 90012
(213) 367-0564
Notice to Licensee:

City of Paramount.

Attention: Adriana Figueroa
16400 Colorado Avenue
Paramount, CA 90723
(562) 220-2100
305.2 Notice of Mailing Address Changes.

Licensee shall notify LADWP of any changes in Licensee’s mailing address and daytime telephone number within ten (10) calendar days of changes.

LADWP File No. P-100034 9 of 66 Rev 11/2022
306. Termination
Regardless of the manner or duration of use or occupancy of said Licensed Area and Temporary Construction Area by Licensee, and regardless of the permanent character of any works or structures constructed or installed therein or thereon by Licensee, this License Agreement, or a portion thereof, may be terminated at any time without cause for any reason or no reason at all at the option of LADWP by giving thirty (30) calendar days’ written notice of termination.

This License Agreement may be revoked and terminated by LADWP in the event of any failure or refusal on the part of Licensee to comply or perform any of the terms or conditions herein. Notice of revocation shall be given in accordance with Section 108. Failure by LADWP to revoke this License Agreement for noncompliance of the terms or conditions by Licensee shall not constitute a waiver of the terms or conditions.
306.1 Intentionally left blank.
307. Restoration Requirements
307.1 Condition of Property at the Time of Surrender.

Upon the expiration or termination of this License Agreement, Licensee shall surrender the Licensed Area and Temporary Construction Area in a neat and clean condition. Licensee shall complete restoration of the Licensed Area and Temporary Construction Area to its original condition or better prior to termination of this License Agreement.

Restoration of the Licensed Area and Temporary Construction Area shall include, but not be limited to, removal of all of Licensee’s equipment, vehicles, trailers, containers, signs, litter, and debris.

Licensee shall remove all improvements unless otherwise instructed in writing by LADWP. Licensee shall call LADWP’s Real Estate Services at (213) 367-0564 to arrange a site inspection of Licensee’s improvements on the Licensed Area and Temporary Construction Area in order to determine which improvements, if any, will be allowed to remain. All improvements allowed to remain shall become the property of LADWP. This obligation shall survive the expiration or termination of this License Agreement.
307.2 Satisfactory Restoration Requirements.

Upon expiration or termination of this License Agreement, LADWP will conduct an inspection of the Licensed Area and Temporary Construction Area to determine if restoration has been completed by Licensee. If upon inspection LADWP determines that restoration has been completed, LADWP will notify Licensee in writing. If LADWP LADWP File No. P-100034 10 of 66 Rev 11/2022
determines that restoration has not been completed upon expiration or termination of this License Agreement, LADWP may restore said Licensed Area and Temporary Construction Area entirely at the risk and expense of Licensee. The cost for said restoration by LADWP shall be deducted from Licensee’s deposits. If Licensee’s security deposit are insufficient to cover the restoration costs, LADWP will bill Licensee, and Licensee shall promptly pay LADWP for the restoration costs in excess of Licensee’s deposits.
110.3 License Fee During Restoration
Licensee agrees and understands that Licensee shall be responsible for, and obligated to pay, the license fee until such time that Licensee receives notice from LADWP, in writing, that restoration has been completed to LADWP’s satisfaction in accordance with Subsection 110.2 of this License Agreement.
110.4 Balance of Deposit
If LADWP determines that Licensee has satisfactorily completed restoration of the Licensed Area and Temporary Construction Area and all obligations under the terms of this License Agreement, LADWP will return the remaining balance of Licensee’s deposits.
111. Licensee’s Responsibility
307.3 Material Costs, Labor Fees and Liens
Licensee shall pay for all materials placed upon, joined, or affixed to said Licensed Area and Temporary Construction Area by or at the instance of Licensee, shall pay in full all persons who perform labor upon said Licensed Area and Temporary Construction Area at the instance of Licensee, and shall not cause or permit any liens of any kind or nature to be levied against said Licensed Area and Temporary Construction Area for any work completed or materials furnished thereon at the instance or request of Licensee. Licensee shall provide LADWP notice in writing of any liens levied against the Licensed Area and Temporary Construction Area. Licensee shall have fifteen (15) calendar days to cause the removal of any such liens and if such liens are not removed, LADWP may pay any amount owed and cause their removal. LADWP shall bill Licensee for the amount paid out by LADWP in removing such liens. Licensee shall have fifteen (15) calendar days to repay the funds expended by LADWP necessary to remove such lien. Failure to comply with the requirements of this Section shall be considered a default and LADWP shall have the right but not the obligation to terminate this License Agreement. The LADWP File No. P-100034 11 of 66 Rev 11/2022
exercise by LADWP of its right to terminate under this Section shall not be construed as a waiver of any of its right to any other remedy or lawful action to recover funds paid by LADWP.
111.1.1 Reasonable Precautions
Licensee is hereby notified that facilities of LADWP, other licensees or authorized users of LADWP may exist on the Licensed Area and Temporary Construction Area. Licensee shall take reasonable precautions and actions to avoid
infringement, interference, or damage to all such
installations. LADWP and any of its licensees will take reasonable precautions and actions to avoid infringement, interference, or damage to Licensee's equipment and/or
improvements.
111.2 Personnel Training
Licensee shall be responsible for the training of its personnel under all applicable laws including, but not limited to, training with regard to the operation of equipment, and the handling and disposal of hazardous materials and wastes in connection with the permission herein given. 111.3 Clean up Cost and Expenses
During and upon the expiration or termination of this License Agreement for whatever reason, Licensee shall be responsible, to the extent caused by or introduced onto the Licensed Area and Temporary Construction Area as a result of the use of the Licensed Area and Temporary Construction Area by Licensee and its invitees and members of the public that enter to use the bike path and pedestrian trail for all cleanup costs and expenses including, but not limited to, any fines, penalties, judgments, litigation costs, and attorneys’ fees incurred as a result of any and all discharge, leakage, spillage, emission of material which is, or becomes, defined as any pollutant, contaminant, hazardous waste or hazardous substance, under all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, or imposing liability or standards of conduct concerning any hazardous substance on, under, or about the Licensed Area and Temporary Construction Area, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [42 U.S.C. §§9601 et seq.]; the Resource Conservation and Recovery Act of 1976 [42 U.S.C. §§6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act [33 LADWP File No. P-100034 12 of 66 Rev 11/2022
U.S.C. §§1251 et seq.]; the Toxic Substances Control Act [15 U.S.C. §§2601 et seq.]; the Hazardous Materials Transportation Act [49 U.S.C. §§5101 et seq.]; the Federal Insecticide, Fungicide, Rodenticide Act [7 U.S.C. §§136 et seq.]; the Superfund Amendments and Reauthorization Act [42 U.S.C. §§9601 et seq.]; the Clean Air Act [42 U.S.C. §§7401 et seq.]; the Safe Drinking Water Act [42 U.S.C. §§300f et seq.]; the Solid Waste Disposal Act [42 U.S.C. §§6901 et seq.]; the Surface Mining Control and Reclamation Act [30 U.S.C. §§1201 et seq.]; the Emergency Planning and Community Right to Know Act [42 U.S.C. §§11001 et seq.]; the Occupational Safety and Health Act [29 U.S.C. §§651 et seq.]; the California Underground Storage of Hazardous Substances Act [H&SC §§25280 et seq.]; the CarpenterPresley-Tanner Hazardous Substances Account Act [H&SC §§25300 et seq.]; the California Hazardous Waste Control Act [H&SC §§25100 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H&SC §§25249.5 et seq.]; and the Porter-Cologne Water Quality Control Act [Wat.C. §§13000 et seq.] together with any amendments of, or regulations promulgated under the statutes cited above, and any other federal, state, or local law, statute, ordinance, or regulation now in effect or later enacted that pertains to hazardous substances on, under, or about the Licensed Area and Temporary Construction Area, including ambient air, soil, soil vapor, groundwater, surface water, or land use. Said cleanup shall be accomplished to the satisfaction of LADWP and any governmental body having jurisdiction there over. 111.4 Signage
Licensee shall not allow any signs, placards, or advertising matter (other than the usual and ordinary business signs of Licensee) to be placed or maintained on, or attached to, said Licensed Area and Temporary Construction Area or any part thereof, without the written consent of LADWP; and such business signs shall be placed, maintained, and attached in such a manner as LADWP shall prescribe and shall comply with all government codes or restrictions. Licensee must post and maintain on site the required signage, which shall include but not be limited to the following information, at a designated location approved by LADWP:
(a) Licensee’s 24-hour contact information
(b) Licensee’s 24-hour phone number
(c) LADWP File Number: P- 100034
LADWP File No. P-100034 13 of 66 Rev 11/2022
111.5 Changes or Additions to Equipment or Improvements to Licensed Area and Temporary Construction Area
Licensee shall not place any equipment or improvements within the Licensed Area and Temporary Construction Area except for those approved in writing by LADWP and depicted in Exhibit B “Development Drawing”, of this License Agreement. Licensee shall submit detailed drawings and obtain the prior written approval of LADWP for changes or additions to said equipment or improvements prior to the construction of such changes or additions. “As Built” drawings showing all of the changes and additions shall be submitted to LADWP’s Real Estate Services within sixty (60) days of completion. LADWP shall sign and date the drawings, which will then become a part of this License Agreement. Unapproved equipment or improvements found on the Licensed Area and Temporary Construction Area will be considered a breach of this License Agreement and subject to corrective actions.

ARTICLE 2 – STANDARD PROVISIONS
200. Assignment and Sublicensing
Licensee shall not assign, sublicense, or permit the use of the Licensed Area and Temporary Construction Area or any improvements located thereon, by any persons or entities other than Licensee and its employees, or otherwise transfer (voluntarily, involuntarily, or by operation of law) all or any part of its interest in this License Agreement, the Licensed Area and Temporary Construction Area or any improvements located thereon without the prior written consent of LADWP’s Director of Real Estate, which may be withheld, conditioned, or delayed at its sole discretion. Acceptance of license fees and/or Insurance Certificates will not constitute a waiver of the required consent of any Assignment. 201. Indemnification
Licensee has inspected the Licensed Area and Temporary Construction Area, knows the condition thereof, and on behalf of itself and its successors, assigns, and sublicensees undertakes and agrees to indemnify and hold harmless the City of Los Angeles, LADWP, the Board of Water and Power Commissioners of the City of Los Angeles, and all of its officers, agents, successors in interest, insurers, assigns and/or employees (individually and collectively, “LADWP Indemnitees”), and at the option of LADWP, defend by counsel satisfactory to LADWP, LADWP Indemnitees from and against any and all liens and claims of liens, suits, causes of action, claims, administrative proceedings, charges, damages (including but not limited to indirect, consequential, and incidental), demands, judgments, civil fines, penalties, including but not limited to costs, expenses, and legal liability for environmental investigations, monitoring, containment, abatement, removal, repair, cleanup, restoration, remediation, penalties and fines arising from the violation of any local, regional, state, or LADWP File No. P-100034 14 of 66 Rev 11/2022
federal law, or regulation, disbursements, and other environmental response costs or losses of any kind or nature whatsoever that are incurred by or asserted against the LADWP Indemnitees, for death, bodily injury or personal injury to any person, including but not limited to Licensee’s employees, customers, invitees and agents, or persons who enter onto the Licensed Area, and Temporary Construction Area, or damage or destruction or loss of use of any Licensed Area, and Temporary Construction Area of either party hereto, or third persons in any manner arising by reason of, incidental to, or connected in any manner to: 1) this License Agreement; 2) the Licensed Area , and Temporary Construction Area; 3) the acts or omissions of Licensee or its officers, employees, contractors, agents, or invitees; or 4) the release or spill of any legally designated hazardous material or waste, resulting from or incident to the presence upon or performance of activities by Licensee or its officers, agents, employees , contractors or sublicensees with respect to any area/Licensed Area, and Temporary Construction Area covered under this agreement, regardless of any negligence on the part of the LADWP Indemnitees; except for the sole negligence or willful misconduct of LADWP. This indemnity shall apply whether occurring during the term of this License Agreement and any time thereafter, and shall be in addition to any other rights or remedies which the LADWP Indemnitees have under law or under this License Agreement.

Licensee shall neither hold LADWP liable for nor seek indemnity from LADWP for any damage to Licensee's equipment and/or improvements due to future construction or reconstruction by LADWP within the Licensed Area and Temporary Construction Area. LADWP shall notify Licensee of any pending construction by LADWP to enable Licensee to protect its equipment and/or improvements.
308. Insurance Requirements
Licensee shall procure at its own expense, and keep in effect at all times during the term of this License Agreement, the types and amounts of insurance specified on the attached Exhibit D “Contract Insurance Requirements” page. 308.1 Additional Insured Status Required
The insurance shall also by scheduled endorsement(s) attached to such policies, include, the City, LADWP, its Board of Commissioners and City Council, and each of its officers, employees and agents, their successors and assigns, as Additional Insureds against the area of risk described herein as respects Licensee's acts, errors, or omissions in its performance of this License Agreement, hereunder or other related functions performed by or on behalf of Licensee. Such insurance shall not limit or qualify the liabilities and obligations of Licensee assumed under this License Agreement.

LADWP File No. P-100034 15 of 66 Rev 11/2022
308.2 Separation of Insured’s Interest and Cross Liability Required Each specified insurance policy, as applicable, shall contain a Separation of Interest and Cross Liability clause and shall apply separately to each insured against whom a claim is made or suit is brought and a Contractual Liability Endorsement which shall also apply to liability assumed by the insured under this License Agreement with LADWP.
308.3 Primary and Non-Contributory Insurance Required
All such insurance shall be Primary and Noncontributing with any other insurance held by LADWP where liability arises out of or results from the acts, errors, or omissions of Licensee, its agents, employees, officers, assigns, or any person or entity acting for or on behalf of Licensee. Any insurance carried by LADWP which may be applicable shall be deemed to be excess insurance and Licensee’s insurance is primary for all purposes despite any conflicting provision in Licensee’s policies to the contrary.
202.4 Proof of Insurance for Renewal or Extension Required Licensee shall provide evidence of the required insurance no more than ten (10) days after the expiration date of any of the policies required on the attached Exhibit C “Contract Insurance Requirements” page showing that the insurance coverage has been renewed or extended and shall be filed with LADWP.
202.4.1 Submissions of Acceptable Proof of Insurance and Notice of Cancellation
Licensee shall provide proof to LADWP’s Risk Manager of all specified insurance and related requirements using either an Acord certificate of insurance along with any required
scheduled endorsements, or using LADWP’s own
endorsement form(s) or using other written evidence of
insurance (i.e. self-insurance) in a form acceptable to the Risk Manager. The documents evidencing all specified
coverages shall be filed with LADWP prior to Licensee or its contractor beginning operations hereunder. Said proof shall contain at a minimum, the applicable policy number, the inclusive dates of policy coverages, the date the specified endorsement for the Department of Water and Power was
attached to a specific policy, and the insurance carrier's name. It shall provide that such insurance shall not be subject to cancellation, material reduction in a required LADWP File No. P-100034 16 of 66 Rev 11/2022
coverage or non-renewal (other than for non-payment)
except after written notice to LADWP’s Risk Management
Section at least thirty (30) calendar days prior to the effective date thereof. The notification shall be sent by first class or electronic mail to:

The Risk Management Section
Los Angeles Department of Water and Power
Post Office Box 51111, JFB Room 465
Los Angeles, California 90051-0100
Email: [email protected]
The proof of insurance shall be uploaded to LADWP’s
Insurance Compliance System, which can be accessed
through the LADWP Risk Management website:
(http://www.ladwp.com/riskmanagement)
If assistance is required, the Licensee may review the
instructions on the website or contact risk management at:

Email: [email protected]
202.5 Claims-Made Insurance Conditions
Should any portion of the required insurance be on a "Claims Made" policy, Licensee, following completion of work and at the policy expiration date, shall provide evidence that the “Claims Made" policy has been renewed or replaced with a retroactive effective date to the policy in place at the inception of the contract and with the same limits, terms and conditions of the expiring policy.
202.6 Failure to Maintain and Provide Proof as Cause for Termination After prior notices have been provided, any failure by Licensee to maintain and provide acceptable evidence of the required insurance for the required period of coverage shall constitute a breach of contract, upon which LADWP may immediately terminate or suspend this License Agreement.
202.7 Subcontractor Compliance
Licensee shall be responsible for all sublicensee’s and contractors' and subcontractors’ compliance with the insurance requirements with limits applicable to the scope of work/services being performed. 202.8 Specific Requirements
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See Exhibit C, “Contract Insurance Requirements,” attached hereto and made a part hereof.
203. Possessory Interest
Licensee, by executing this License Agreement and accepting the benefits hereof, understands that a property right pursuant to applicable ordinances and codes under tax law, may be created known as "possessory interest" and may be subject to property taxation. Licensee will be responsible for payment of any property taxes upon such right. Licensee herewith acknowledges that notice required by Revenue and Taxation Code, Section 107.6 has been provided. For information about a specific Possessory Interest assessment, please contact the County Assessor’s Office.
204. No Relocation
Licensee acknowledges that Licensee is not entitled to relocation assistance or any other benefits under the Uniform Relocation Assistance Act or any other provisions of law upon the expiration or termination of this License Agreement. 309. Prevailing Wages
309.1 California Labor Code
To the extent applicable Licensee shall pay or cause to be paid to all workers employed in connection with the construction of the improvements, not less than the prevailing rates of wages, as provided in the statutes applicable to City public work contracts, including without limitation Sections 1770-1780 of the California Labor Code. 309.2 Davis-Bacon Act
If federal funds were at any time used in the acquisition of this land or will be used in connection with the construction of any improvements, Licensee shall comply with or cause its general contractor and all subcontractors to comply with the requirements of the Davis-Bacon Act (40 U.S.C. 276 et seq.). The Davis-Bacon Act requires the payment of wages to all laborers and mechanics at a rate not less than the minimum wage specified by the Secretary of Labor in periodic wage rate determinations as described in the Federal Labor Standards Provisions (HUD-4010). In the event both State Prevailing wages and Davis-Bacon Act wages will be required, all works shall be paid at the higher of the two wages.
309.3 Pre-Construction Orientation
Prior to the commencement of construction, and as soon as practicable in accordance with the applicable schedule, Licensee shall LADWP File No. P-100034 18 of 66 Rev 11/2022
contact the City to schedule a pre-construction orientation meeting with Licensee and with the general contractor to explain such matters as the specific rates of wages to be paid to workers in connection with the construction of the improvements, pre-construction conference requirements, record keeping and reporting requirements necessary for the evaluation of Licensee’s compliance with this Section. 309.4 Licensee Enforcement of Applicable Laws
Licensee shall monitor and enforce any applicable prevailing wage requirements imposed on its contractors and subcontractors, including withholding payments to those contractors or subcontractors who violate these requirements. In the event that Licensee fails to monitor or enforce these requirements against any contractor or subcontractor, Licensee shall be liable for the full amount of any underpayment of wages, plus costs and attorney’s fees, as if Licensee was the actual employer, and LADWP, the City or the State Department of Industrial Relations may withhold monies owed to Licensee, may impose penalties on Licensee in the amounts specified herein, may take action directly against the contractor or subcontractor as permitted by law, and/or may declare Licensee in default of this License Agreement and thereafter pursue any of the remedies available under this License Agreement.
205.5 Inclusion of Provisions in All Bid Specifications Licensee agrees to include, or cause to be included, the above provisions in all bid specifications for work covered under this License Agreement.
205.6 Labor Code Compliance Indemnity
Licensee shall indemnify, hold harmless and defend (with counsel reasonably acceptable to LADWP) the City and LADWP against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Licensee, its sublicensee, contractor and subcontractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq. and implementing regulation or comply with the other applicable provisions of Labor Code Sections 1720 et seq. and implementing regulations of the Department of Industrial Relations in connection with construction of the improvements or any other work undertaken or in connection with the Licensed Area and Temporary Construction Area.

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206. Los Angeles City Charter Requirements and Los Angeles City OrdinanceRelated Provisions 309.5 Ordinances, Statutes, Permits, and Regulations
All work completed, pursuant to the terms of this License Agreement, shall be completed in accordance with the terms and conditions specified in ordinances, statutes, permits, and regulations governing such instances; and the provisions of such ordinances, statutes, permits, and regulations are, by reference, made a part hereof as though incorporated verbatim herein.
309.6 No Discrimination
Licensee agrees and obligates itself in performing this License Agreement not to discriminate against any employee or applicant for employment because of his/her race, religion, national origin, ancestry, sex, sexual orientation, age, physical handicap, marital status, domestic partner status, or medical condition.
206.3 Affirmative Action Program
Licensee agrees to comply with Section 10.8.4 of Los Angeles Administrative Code ("Affirmative Action Program"). By way of specification but not limitation, pursuant to Sections 10.8.4.E and

10.8.4.F of said Code, the failure of Licensee to comply with the Affirmative Action Program may be deemed a material breach of this License Agreement.
206.4 Child Support Assignment Orders
This License Agreement is subject to Section 10.10, Article 1, Chapter 1, Division 10, as amended, of the Los Angeles Administrative Code related to Child Support Assignment Orders. Said ordinance is incorporated by reference as though fully set forth herein. Failure to comply with this ordinance shall constitute a default of this License Agreement subjecting this License Agreement to termination where such failure shall continue for more than ninety (90) days after such notice of such failure to Licensee by LADWP or City.
206.5 Equal Benefits Provisions
This License Agreement is subject to Section 10.8.2.1, Article 1, Chapter 1, Division 10 of the Los Angeles Administrative Code (“Equal Benefits Provisions”) related to equal benefits to employees. Licensee agrees to comply with the provisions of Section 10.8.2.1. By way of LADWP File No. P-100034 20 of 66 Rev 11/2022
specification but not limitation, pursuant to Section 10.8.2.1(c) and

10.8.2.1(f) of the Los Angeles Administrative Code, the failure of Licensee to comply with the Equal Benefits Provisions of this License Agreement may be deemed to be a material breach of this License Agreement. No such finding shall be made or penalties assessed except upon a full and fair hearing after notice and an opportunity to be heard has been given to Licensee. Upon a finding duly made that Licensee has failed to comply with the Equal Benefits Provisions of this License Agreement, this License Agreement may be forthwith terminated.
206.6 Equal Employment Practices
This License Agreement is a contract with or on behalf of the City of Los Angeles for which the consideration is $1,000.00 or more.

Accordingly, during the performance of this License Agreement, Licensee further agrees to comply with Section 10.8.3 of the Los Angeles Administrative Code (“Equal Employment Practices”). By way of specification but not limitation, pursuant to Sections 10.8.3(E) and

10.8.3(F) of the Los Angeles Administrative Code, the failure of Licensee to comply with the Equal Employment Practices provisions of this License Agreement may be deemed to be a material breach of this License Agreement. No such finding shall be made or penalties assessed except upon a full and fair hearing after notice and an opportunity to be heard have been given to Licensee. Upon a finding duly made that Licensee has failed to comply with the Equal Employment Practices provisions of this License Agreement, this License Agreement may be forthwith terminated.
206.7 Slavery Disclosure Ordinance
This License Agreement is subject to the applicable provisions of the Slavery Disclosure Ordinance (“SDO”) (Section 10.41, et seq., of the Los Angeles Administrative Code). Unless otherwise exempt in accordance with the provision of this ordinance, Licensee certifies that it has complied with the applicable provisions of the ordinance. Under the provisions of Section 10.41.2(b) of the Los Angeles Administrative Code, LADWP has the authority, under appropriate circumstances, to terminate this License Agreement and otherwise pursue legal remedies that may be available to LADWP if LADWP determines that Licensee failed to fully and accurately complete the SDO affidavit or otherwise violated any provisions of the SDO.
206.8 Limitations on Campaign Contributions and Fundraising LADWP File No. P-100034 21 of 66 Rev 11/2022
Licensee, subcontractor, and their principals (if any) are obligated to fully comply with City of Los Angeles Charter Section 470(c) (12) and related ordinances, regarding limitations on campaign contributions and fundraising for certain elected City officials or candidates for elected City office if this License Agreement is valued at $100,000 or more and requires approval of a City elected official. Additionally, Licensee is required to provide and update certain information to the City as specified by law. Any Licensee subject to Charter Section 470(c) (12), shall include the following notice in any contract with a subcontractor expected to pay at least $100,000 in consideration under this License Agreement:
206.8.1 Notice Regarding Los Angeles Campaign Contribution and Fundraising Restrictions
Pursuant to City Charter Section 470(c) (12), Licensee, its principals and subcontractors are prohibited from making campaign contributions and fundraising for certain elected City officials or candidates for elected City office for twelve (12) months after this License Agreement is signed.

Licensee is required to provide to LADWP the names,
addresses and contact information of its principals and subcontractors, and shall update that information if it changes during the twelve (12) month time period.

Licensee’s principals and sub-contractor’s information
included must be provided to LADWP within five (5)
business days. Failure to comply may result in termination of this License Agreement or any other available legal
remedies including fines. Information about the restrictions may be found at the City Ethics Commission’s website at http://ethics.lacity.org or by calling (213) 978-1960.
206.8.2 Licensee Compliance with Requirements
Licensee, subcontractors, and their principals shall comply with these requirements and limitations. Violation of this provision shall entitle the City to terminate this License Agreement and pursue any and all legal remedies that may be available.
206.9 Tax Registration Certificate
This Section is applicable where Licensee engaged in business within the City of Los Angeles and Licensee is required to obtain a Tax Registration Certificate (“TRC”) pursuant to one or more of the following articles (collectively “Tax Ordinances”) of Chapter II of the LADWP File No. P-100034 22 of 66 Rev 11/2022
Los Angeles Municipal Code: Article 1 (Business Tax Ordinance) [Section 21.00, et seq.], Article 1.3 (Commercial Tenant’s Occupancy Tax) [Section 21.3.1, et seq.], Article 1.7 (Transient Occupancy Tax) [Section 21.7.1, et seq.], Article 1.11 (Payroll Expense Tax) [Section

21.11.1, et seq.], or Article 1.15 (Parking Occupancy Tax) [Section

21.15.1, et seq.]. Prior to the execution of this License Agreement or the effective date of any extension of the term or renewal of this License Agreement, Licensee shall provide to LADWP proof satisfactory to LADWP’s Director of Real Estate that Licensee has the required TRCs and that Licensee is not then currently delinquent in any tax payment required under the Tax Ordinances. LADWP may terminate this License Agreement if LADWP determines that Licensee failed to have the required TRCs or was delinquent in any tax payments required under the Tax Ordinances at the time of entering into, extending the term of, or renewing this License Agreement.

LADWP may also terminate this License Agreement at any time during the term of this License Agreement if Licensee fails to maintain required TRCs or becomes delinquent in tax payments required under the Tax Ordinances and Licensee fails to cure such deficiencies within the thirty (30) day period.
206.10 Business Tax Registration Certificates
Licensee shall obtain and keep in full force and effect during the term of this License Agreement all Business Tax Registration Certificates (BTRC) required by the City of Los Angeles Business Tax Ordinance, Article 1, Chapter II, Section 21.00 of the Los Angeles Municipal Code.

For additional information regarding applicability of the City Business Tax Registration, visit the Office of Finance website at https://finance.lacity.org/.
206.11 Service Contract Worker Retention Ordinance
This License Agreement is subject to the Service Contract Worker Retention Ordinance ("SCWRO") (Section 10.36, et seq., of the Los Angeles Administrative Code). The SCWRO requires that, unless specific exemptions apply, all employers (as defined) under contracts that are primarily for the furnishing of services to or for the City of Los Angeles and that involve an expenditure or receipt in excess of $25,000 and a contract term of at least three (3) months shall provide retention by a successor contractor for a ninety-day (90-day) transition period of the employees who have been employed for the preceding twelve (12) months or more by the terminated contractor or subcontractor, if any, as provided for in the SCWRO. Under the provisions of Section 10.36.3(c) of the Los Angeles Administrative Code, LADWP has the authority, under appropriate circumstances, to LADWP File No. P-100034 23 of 66 Rev 11/2022
terminate this License Agreement and otherwise pursue legal remedies that may be available if LADWP determines that the subject contractor violated the provisions of the SCWRO.
206.12 Living Wage Ordinance
This License Agreement is subject to the applicable provisions of the Living Wage Ordinance (LWO); Section 10.37 et seq. of the Los Angeles Administrative Code, as amended. The LWO requires that, unless specific exemptions apply, all employers (as defined) under contracts primarily for the furnishing of services to or for the City and that involves an expenditure or receipt in excess of $25,000 and a contract term of at least three (3) months; Licensee or certain recipients of City financial assistance, generally, shall provide the following:
206.12.1 Minimum Initial Wage
Payment of a minimum initial wage rate to employees as
defined in the LWO.
206.12.2 Sick Leave, Vacation or Personal Necessity
Provision of compensated days off annually for sick leave, vacation or personal necessity at the employee’s request, and additional days annually of uncompensated time off for sick leave as prescribed in the LWO.
206.13 Los Angeles Administrative Code
Under the provisions of Section 10.37.6(c) of the Los Angeles Administrative Code, the City shall have the authority, under appropriate circumstances, to terminate this contract and otherwise pursue legal remedies that may be available if the City determines that Licensee or financial assistance recipient violated the provisions of the referenced Code Sections. For additional information, please contact the Office of the City Administrative Officer at (213) 473-7500. 206.14 Contractor Responsibility Ordinance of the Los Angeles Administrative Code
This License Agreement is subject to the Contractor Responsibility Ordinance (“CRO”) (Section 10.40, et seq., of the Los Angeles Administrative Code “LAAC”) and the rules and regulations promulgated pursuant thereto as they may be updated. The CRO requires that, unless specific exemptions apply as specified in LAAC

10.40.4(a), Licensee or Licensees or licensees of LADWP property LADWP File No. P-100034 24 of 66 Rev 11/2022
who render services on the Licensed Area and Temporary
Construction Area are covered by the CRO if any of the following applies: (1) the services are rendered on premises at least a portion of which are visited by substantial numbers of the public on a frequent basis, (2) any of the services could feasibly be performed by LADWP or its employees if the awarding authority had the requisite financial and staffing resources, or (3) designated administrative agency of LADWP has determined in writing that coverage would further the proprietary interests of LADWP. Licensee or Licensees or licensees of LADWP property who are not exempt pursuant to LAAC 10.40.4 (a) or (b), unless subject to the CRO solely due to an amendment to an existing license, are required to have completed a questionnaire (“Questionnaire”) signed under penalty of perjury designed to assist LADWP in determination that the licensee is one that has the necessary quality, fitness and capacity to perform the work set forth in the contract. All Licensees of LADWP property who are covered by the CRO, including those subject to the CRO due to an amendment, are required to complete the following Pledge of Compliance (“POC”):
206.14.1 Compliance with Federal State, and Local Laws and Regulations.

Licensee shall comply with all applicable federal state, and local laws and regulations in the performance of the contract, including but not limited to laws regarding health and safety, labor and employment, wage and hour, and licensing laws which affect employees.
206.14.2 Notification of Investigation by Governmental Agency.

Licensee shall notify the awarding authority within thirty (30) calendar days after receiving notification that any
government agency has initiated an investigation that may result in a finding that the Licensee did not comply with Subsection 206.14.1 above in the performance of the
License Agreement;
206.14.3 Notification of Violation of Federal State, and Local Laws and Regulations
Licensee shall notify the awarding authority within thirty (30) calendar days of all findings by a government agency or court of competent jurisdiction that the Licensee has violated Subsection 206.14.1 above in the performance of the
License Agreement;
LADWP File No. P-100034 25 of 66 Rev 11/2022
206.14.4 Pledge of Compliance
Licensee shall ensure within thirty (30) days (or such shorter time as may be required by the awarding authority) that subcontractors working on the Licensed Area and
Temporary Construction Area submit a POC to the awarding authority signed under penalty of perjury; and ensure that subcontractors working on the Licensed Area and
Temporary Construction Area abide by the requirements of the POC and the requirement to notify the awarding authority within thirty (30) calendar days that any government agency or court of competent jurisdiction has initiated an
investigation or has found that the subcontractor has violated Subsection (206.14.1) above in the performance of the
License Agreement.
206.14.5 Compliance with Contractor Responsibility Ordinance Licensee shall ensure that their subcontractors meet the criteria for responsibility set forth in the CRO and any rules and regulations promulgated thereto. Licensee may not use any subcontractor that has been determined or found to be a non-responsible contractor by LADWP. The listing of nonresponsible contractors may be obtained from the City’s Bureau of Contract Administration. Subject to approval by the awarding authority, Licensee may substitute a nonresponsible subcontractor with another subcontractor with no change in the consideration for this License Agreement.

Licensee shall submit to LADWP a Pledge of Compliance for each subcontractor listed by Licensee in its Questionnaire, as performing work on this License Agreement within thirty (30) calendar days of execution of this License Agreement, unless the Department of General Services requires in its discretion the submission of a Pledge of Compliance within a shorter time period. The signature of Licensee on this
License Agreement shall constitute a declaration under
penalty of perjury that Licensee shall comply with the POC. 207. Other Governmental Requirements
309.7 Compliance with Low Impact Development (LID) Ordinances All developments or redevelopments within the Licensed Area and Temporary Construction Area are required to comply with the City of Los Angeles’ Ordinance No. 183833 (City’s LID Ordinance) or, when applicable, the County of Los Angeles’ Code Title 12, Chapter 48 LADWP File No. P-100034 26 of 66 Rev 11/2022
(County’s LID Code). Licensee is responsible for the purchasing, installation, and maintenance of any required devices under the City’s LID Ordinance or the County’s LID Code for the duration of the License Agreement. Licensee is also responsible for the removal of any installed devices prior to the surrender of the Licensed Area and Temporary Construction Area. At Licensee’s expense, Licensee shall be responsible for obtaining all required permits and environmental reviews required by federal, state, local, and municipal laws, rules, orders, regulations, statues, ordinances, codes, decrees, or requirements of any government regulating authority.

Detailed drawings of the proposed development or redevelopment, if applicable, must be submitted to LADWP’s Wastewater Quality and Compliance Group for review and approval in writing within ninety (90) calendar days prior to the start of any construction.

Plans to be submitted as follows:

Los Angeles Department of Water and Power
Attention: Wastewater Quality and Compliance Group
(LADWP File No: P-100034)
221 N. Figueroa Street, Suite 1600
Los Angeles, CA 90012
207.2 Utility Services Fees
Licensee shall pay for all costs, fees, or charges for the application, installation, maintenance, use, or removal of any utilities or services required in the exercise of the permission herein given. Licensee shall not use any existing utility system prior to the transfer of financial responsibility to Licensee with the appropriate utility company supplying existing service.
207.3 Zoning Demands and Variances
Licensee shall not use LADWP's property to satisfy any zoning demands, zoning variances, open space or parking requirements, and any other governmentally imposed conditions for building plans and permits.
208. Estoppel Certificate
Licensee hereby acknowledges and agrees that LADWP shall at no time during the term of this License Agreement be responsible for or be required to provide an Estoppel Certificate of any kind for any reason. LADWP does not make any representation or any rights other than those expressly granted herein.

LADWP File No. P-100034 27 of 66 Rev 11/2022
209. Miscellaneous
309.8 Los Angeles Municipal Code Section 121
During the term of this License Agreement, Licensee shall comply with Los Angeles Municipal Code Section 121, relating to water conservation as to the Licensed Area and Temporary Construction Area.
309.9 License Agreement Will Not Be Recorded
Licensee agrees that this License Agreement will not be recorded. 309.10 Counterparts
This License Agreement may be executed in two or more counterparts, and by the parties in separate counterparts, each of which when executed shall be each of which will be deemed an original, but all of which taken together will be one and the same instrument. The parties further agree that facsimile signatures or signatures scanned into .pdf (or signatures in another electronic format designated by either party) and sent by e-mail shall be deemed original signatures. 209.4 No Third-Party Beneficiary
The parties do not intend to create rights in or grant remedies to any third party as a beneficiary of this License or of any duty, covenant, obligation, or undertaking established under this License. 209.5 License Governed by the State of California Law
This License Agreement shall be interpreted, governed by, and construed under the laws of the State of California and venue shall lie in the County of Los Angeles.
209.6 No Waiver
Any waiver at any time by either party of its rights with respect to a default under this License Agreement, or with respect to any other matter arising in connection with this License Agreement, shall not be deemed a waiver with respect to any subsequent default or other matter arising in connection therewith. Any delay in assessing or enforcing any right, shall not be deemed to be a waiver of such right, provided that all applicable contractual and statutory periods of limitation shall apply.

LADWP File No. P-100034 28 of 66 Rev 11/2022
209.7 Construction of License Agreement
The section headings and captions of this License Agreement are, and the arrangement of this instrument is, for the sole convenience of the parties to this License Agreement. The section headings, captions, and arrangement of this instrument do not in any way affect, limit amplify, or modify the terms and provisions of this License Agreement. The singular shall include the plural, and vice versa. Unless otherwise indicated, all references to sections are references to sections in this Agreement. All Exhibits referred to in this License Agreement are attached to it and incorporated by this reference, as though fully set forth herein. For the purposes of this License Agreement, (a) the term including means including without limitation, and (b) when a time period is specified in this License Agreement for the performance of an act or the occurrence of an event, days shall mean calendar days, unless otherwise specified herein.

ARTICLE 3 – POWER SYSTEMS
300. Maintenance
300.1 Maintenance and Repair
Licensee shall be responsible for the maintenance of Licensed Area, and Temporary Construction Area and shall keep the area in a neat and clean condition within the LADWP Transmission Line Rights-ofWay (TLRW). Licensee will assume responsibility for the maintenance of the project improvements, and for all the risks and liabilities associated with the construction and installation of Licensee’s facilities in accordance with terms and conditions of this License Agreements and Exhibit D (“Standard Conditions for Construction”). LADWP will not be liable for any damage to the facilities during LADWP’s operation and maintenance activities. Licensee must obtain any and all permits and environmental clearances required for such maintenance and repair.
301. Transmission Line Right-of-Way
301.1 High-Voltage Electric Lines
The LADWP TLRW contains high-voltage electric lines; therefore, Licensee shall utilize only such equipment, material, and construction techniques that are permitted under applicable safety ordinances, and statutes, including the following: California Code of Regulations, Title 8, Industrial Relations Chapter 4, Division of Industrial Safety, Subchapter 5. Electrical Safety Orders, California Public Utilities Commission, General Order No. 95, Rules for Overhead Electric Line LADWP File No. P-100034 30 of 66 Rev 11/2022
Construction and General Order No. 128, Rules for Construction of Underground Lines.
301.2 Equipment Under LADWP TLRW
No equipment shall be allowed to setup directly below the LADWP TLRW, without the written approval of LADWP and in accordance with Exhibit D, Standard Conditions for Construction. Licensee shall provide LADWP’s Transmission Construction and Business Group a list of all equipment to be used for construction operations at least fourteen (14) calendar days prior the start of construction. Contact LADWP’s Transmission Construction and Business Group at (818) 771-5014 or (818) 771-5076.
301.3 Transmission Tower Restrictions
Licensee, its employees, agents, and contractors shall not at any time, physically access, climb upon, build or attach on, or in any way modify LADWP’s transmission tower.
301.4 Damage to Transmission Infrastructure
In the event of damage to any transmission line tower, line or other facility, LADWP must be notified immediately. LADWP personnel will conduct an assessment and appropriate measures to find out the extent of the damage. Licensee agrees to reimburse LADWP for the cost to repair the facilities. Five Thousand Dollars ($5,000) is the minimum charge for a minor damage occurrence on a transmission line tower. The overall cost for each incident includes expenses for Real Estate, Transmission Construction and Maintenance, Transmission Engineering, Right-of-Way Engineering, Structural Engineering, LADWP Shops, equipment usage, customized materials, and procurement processing, and typically exceeds the minimum charge. LADWP reserves the right to increase the minimum charge, depending on the extent of tower damage.
301.5 Protective Barriers
LADWP may require protective barriers to be installed to protect transmission line towers and monitoring wells. Acceptable barriers, include but are not limited to, removable bollards and k-rails. Protective barriers and their layout shall be submitted to LADWP for review and approval in writing prior to their installation.
301.6 Emergency De-Energization
LADWP File No. P-100034 31 of 66 Rev 11/2022
Licensee agrees and acknowledges that in the event of an emergency or otherwise catastrophic event, as determined at LADWP’s sole discretion, LADWP may be required to immediately de-energize any or all of its improvements and/or equipment, as needed located within the LADWP TLRW, in order for LADWP to make critical repairs to its infrastructure. LADWP shall not be responsible, and Licensee shall hold LADWP harmless, for any damage to the Licensee’s
improvements or equipment resulting from LADWP’s above-mentioned repairs.
301.6.1 Licensee Cooperation
When required for emergency restoration work or normal
maintenance operation on the transmission system,
Licensee shall be required to cooperate promptly and
diligently with LADWP including LADWP’s effort to move
vehicles, materials, and or equipment out of specific areas required to perform routine or emergency work or
operations. Under emergency conditions, LADWP reserves
all rights at any time to move or tow vehicles, materials, and or equipment out of specific areas for any transmission operation or maintenance purposes at the sole cost and
expense of Licensee.
310. Operations
310.1 Hazardous Activity
If LADWP determines at any time that Licensee's activities are hazardous or detrimental to the LADWP TLRW, LADWP shall have the right to immediately terminate said activities, and, if necessary, to terminate the License Agreement.
310.2 Acknowledgement
Licensee shall acknowledge that the LADWP TLRW are integral components of the transmission line system, which provides electric power to the City of Los Angeles and other local communities. Their use is under the jurisdiction of the North American Electric Reliability Corporation (NERC), an organization of the Federal Energy Regulatory Commission (FERC). Safety and protection of critical facilities are the primary factors used to evaluate secondary land use proposals. The LADWP TLRW serves as a platform for access, construction, facility expansion and emergency operations. Therefore, the proposed use LADWP File No. P-100034 32 of 66 Rev 11/2022
may, from time to time, be subject to temporary disruption caused by such operations.
311. Construction
311.1 Required Permits
At Licensee's expense, Licensee shall be responsible for obtaining all required permits (e.g. conditional use permits, environmental permits or other entitlement), environmental clearances and environmental review necessary to develop and use this Licensed Area and Temporary Construction Area. No structures, improvements or construction activities of any kind whatsoever will be allowed within the LADWP TLRW until such time that Licensee has obtained all required permits and has provided copies of these to LADWP’s Air and Wastewater Group in writing, if applicable, in accordance with this Subsection 303.1 of the License Agreement. Licensee shall submit all environmental applications and regulatory agency correspondences to LADWP. Should the Licensee determine that a certain permit is not applicable or necessary, the Licensee must submit a written justification to LADWP. In addition, the Licensee is also responsible for complying with all applicable air and wastewater regulatory requirements before, during, and after construction.
303.2 Improvements and Construction
No improvements or construction activities of any kind whatsoever will be allowed within the LADWP TLRW, except as marked on the final plans, marked as Exhibit B, Development Drawing, stamped “Reviewed and Accepted by Power System Right-of-Way Engineering on March 27, 2023”, or as authorized in the field by LADWP Power System personnel in writing. Licensee shall notify the LADWP's Transmission Construction and Maintenance Business Group at (818) 771-5014, or (818) 771-5076, no later than fourteen (14) days prior to the start of any grading, paving, or construction work. 303.3 Improvements Without Consent
No structures, improvements or construction activities of any kind whatsoever will be allowed within the LADWP TLRW without prior written approval of LADWP.
303.4 Ground Elevations
All ground elevations are to remain unchanged from existing conditions after construction associated with Licensee’s proposed project is LADWP File No. P-100034 33 of 66 Rev 11/2022
completed. Cut and fill slopes inside the LADWP TLRW steeper than two (2) horizontal to one (1) vertical require retaining structures or geotechnical report approval. Note: Grading activity resulting in a vertical clearance between the ground and the transmission line conductor elevation less than thirty-five (35) feet or as noted in the State of California, Public Utility Commission, General Order 95 within the LADWP transmission line right of way is unacceptable. Ground cover for all below ground utilities shall not be less than four (4) feet. 303.5 Intentionally left blank.
303.6 Qualified Electrical Workers
California Code of Regulations, Title 8, Section 2700 defines “qualified electrical workers” as “a qualified person who by reason of a minimum of two (2) years of training and experience with high-voltage circuits and equipment and who has demonstrated by performance familiarity with the work to be performed and the hazards involved.” At all times during installation and/or maintenance of any improvement authorized within the LADWP TLRW, Licensee shall have at least one (1) qualified electrical worker on site to observe and ensure the said work complies with California Occupational Safety and Health Administration (OSHA) safety protocols.
303.7 Grading or Excavation
No grading, vegetation removal, soil removal or excavation shall be conducted within the LADWP TLRW without prior written approval of LADWP.
303.8 Grading, Paving, or Construction Work
No grading, paving or construction activities shall take place within the Licensed Area and Temporary Construction Area without the prior written approval of LADWP in accordance with Exhibit D, Standard Conditions for Construction. Any approved work must be done in such a manner that fugitive dust generation is minimized and storm water runoff or run on does not cause pollutants to enter or runoff LADWP property. During construction, Licensee must post a prominently displayed “shock or hazard warning” sign. These types of activities will need to be reviewed by LADWP ’s Wastewater Group prior to the start of any site work.
304. Standard Conditions for Construction
The Standard Conditions for Construction, as shown on Exhibit D, attached hereto and made a part hereof, are incorporated as terms of this License LADWP File No. P-100034 34 of 66 Rev 11/2022
Agreement and unless otherwise specified herein, Licensee shall comply with the Standard Conditions for Construction
305. Electric and Magnetic Fields
311.2 Acknowledgement of Information Package
Licensee hereby acknowledges receipt of an information package consisting of:
311.3 Understanding EMF – Electric Magnetic Fields
Exhibit E, attached hereto and made a part hereof.
311.4 Additional Information
Additional Information pertaining to EMF can be obtained via the Internet at: http://www.ladwp.com/emf.
305.4 Distribution of Information
Licensee undertakes and agrees to distribute all the information in said package to all personnel working under Licensee's direction and control.
306. Access
311.5 Intentionally left blank.
311.6 Emergency Access
LADWP may access the facilities at any time without prior notice for emergencies, routine maintenance, and site inspection purposes, and upon 30 days’ notice for capital projects and construction purposes.

Rent will not be abated for disruption of business or loss of use due to routine maintenance functions. LADWP shall not be liable for any damage to the irrigation system plants, trees, containers, and/or other facilities placed on the LADWP TLRW due to LADWP’s operation and maintenance, whether routine or emergency. A suitable access to the LADWP TLRW through LADWP approved gates with the ability to have multiple interlocking bail-type padlocks must be provided to permit entrance of LADWP vehicles. Licensee shall contact the Transmission, Construction and Maintenance Group at (818) 771-5076 or (818) 771- 5014 to coordinate the installation of an LADWP padlock on the gates.

Licensee shall not block access to any LADWP facilities so as to prevent access by LADWP.

LADWP File No. P-100034 35 of 66 Rev 11/2022
311.7 Patrol Road
A permanent, unobstructed, 20-foot patrol road, accessible at all times by LADWP maintenance personnel, shall be provided and maintained.

A wider patrol road width will be required on curved segments. The patrol road must remain open and unobstructed, excluded from any watering, and kept as dry as possible at all times. The patrol road shall be located in the center of the LADWP TLRW unless specified elsewhere by the Agreement.
311.8 Occasional Water Spotting
Vehicles parked within the LADWP TLRW may be subject to water spotting from occasional transmission line insulator washing operations. Licensee is responsible for notifying vehicle owners in the vicinity.
312. Required Maintenance, By Licensee, of the Licensed Area and Temporary Construction Area, Landscaping, Parkways, Between Fences, and Public Street
Exhibit F, attached hereto and made a part hereof.
313. Restrictions
313.1 Storage
There shall be no storage, maintenance, or overnight parking of motor vehicles or residential use of the LADWP TLRW. LADWP reserves the right to tow vehicles at the sole costs and expense of Licensee.

Storage of bulky items (as determined by LADWP in its sole discretion) is not allowed, unless otherwise approved by LADWP in writing. 313.2 Reserved Rights
LADWP reserves the right to license/lease/permit other uses within the LADWP TLRW which would not conflict with the proposed secondary land use, or conflict with Licensee’s use of the LADWP TLRW. 313.3 Cross Fencing
Cross-fencing will generally not be permitted except at natural boundaries, roadways, and existing railroad crossings. At those locations, gates adequate to allow access by LADWP vehicles will normally be required. All improvements, including fencing, on LADWP transmission line rights-of-way are subject to the written approval of LADWP File No. P-100034 36 of 66 Rev 11/2022
LADWP. Requests for cross-fencing and other exceptions will be reviewed on a case-by-case basis. If additional fencing is approved, it shall be installed at Licensee’s expense. Such fencing shall become the property of LADWP should the Agreement be terminated. If LADWP requires the fence to be removed, it will be done at Licensee's expense.
313.4 Other Restrictions
No vehicles, trailers, or campers shall be inhabited while parked on the LADWP TLRW.
313.5 No Animals
No animals are allowed on the LADWP TLRW, unless approved by LADWP in writing.
314. General Guidelines for All Secondary Land Use Programs Exhibit G, attached hereto and made a part hereof.
315. Other Requirements
315.1 Additional Requirements
315.1.1 Future LADWP Facilities Improvements
Licensee agrees and acknowledges that LADWP may make
improvements to the LADWP Facilities at some future date, including, but not limited to: increasing the line voltage, adding multiple conductors to a single circuit, adding a second circuit to the existing towers/poles, and/or otherwise increasing the capacity in any manner as allowed within the Licensed Area and Temporary Construction Area. If
LADWP’s present or future use of its facilities is the sole and exclusive cause necessitating relocation and/or removal of the Licensee’s improvements authorized under this
agreement, such relocation and/or removal shall be
completed at no cost to LADWP.
315.1.2 Improvements
No improvements or construction activities of any kind
whatsoever will be allowed within LADWP TLRW without the prior written approval of the LADWP.

LADWP File No. P-100034 37 of 66 Rev 11/2022
315.1.3 No Grading and No Structures
No grading or structures shall be constructed within the LADWP TLRW without prior written approval of the LADWP. 315.1.4 Tower Footing
No grading is allowed below the top of tower footing within the TLRW, located in the immediate vicinity of the towers. 310.1.5 Equipment Height
No equipment over 14-feet high shall be used under the
LADWP TLRW without the written permission of LADWP.
310.1.6 Hi-Lift Vehicles
It is our recommendation that no “hi-lift” vehicles shall be used under the transmission lines. It is City of Paramount’s responsibility to comply with all applicable standards and safety regulations while working near or under high voltage overhead transmission lines. Structures close to High
Voltage Lines are prone to induced voltages from the
energized lines. This induced voltage may cause nuisance shocks. It is City of Paramount’s responsibility to mitigate induced voltages. All structures shall be properly grounded. 310.1.7 Ground Cover
Ground cover for all below ground utilities shall not be less than four (4) feet.
310.1.8 Irrigation System
The installation and maintenance of any irrigation system shall be at no expense to the LADWP.
310.1.9 No LADWP Liability for Operation and Maintenance Activities
The LADWP shall not be liable for any damage to the
irrigation system, and plants, or other facilities placed on the TLRW because of LADWP's operation and maintenance.

LADWP File No. P-100034 38 of 66 Rev 11/2022
310.1.10 Tower Clearance
An area at least 50 feet around the base of each tower must remain open and unobstructed for necessary maintenance, including periodic washing of insulators by high pressure water spray.
310.1.11 Vehicle and/or truck repair, refueling, washing, and change of oil, are prohibited within the TLRW.
310.1.12 Standard Conditions for Construction Enclosed Conditions Enclosed Conditions Nos. 1 to 7, 9, 11A, 12 to 17A, 18 to 23B, and 25 of the Standard Conditions for Construction shall apply, as shown on Exhibit D.
310.1.13 Underground Service Alert (DigAlert)
If any excavations are required, utility agencies within the proposed excavation sites shall be notified of impending work. City of Paramount shall be responsible for coordinating the relocation of utilities, if any, within the project boundaries.

Before commencing any excavations, contact Underground
Service Alert (a.k.a. DigAlert).

LADWP File No. P-100034 39 of 66 Rev 11/2022
Date_______________ ‘
APPROVED: DEPARTMENT OF WATER AND POWER OF

THE CITY OF LOS ANGELES
JANISSE QUIÑONES
General Manager and Chief Engineer
By:

DAVID M. HANSON ADRIANA RUBALCAVA
Senior Assistant General Manager Director of Real Estate Power System
LADWP
LADWP File No. P-100034 40 of 66 Rev 11/2022
Date______________________

CITY OF PARAMOUNT

JOHN MORENO
City Manager

LICENSEE
LADWP File No. P-100034 41 of 66 Rev 11/2022
EXHIBIT A-1
Licensed Area
EXHIBIT A-2
Temporary Construction Area
LADWP File No. P-100034 43 of 66 Rev 11/2022

EXHIBIT B
Development Drawing
Stamped plans are 80 pages
Exhibit C
Insurance Requirements
(Checklist provided by Risk)
LADWP File No. P-100034 45 of 66 Rev 11/2022

EXHIBIT D
Standard Conditions for Construction

1. Energized transmission lines can produce electrical effects including, but not limited to, induced voltages and currents in persons and objects. Licensee hereby acknowledges a duty to conduct activities in such manner that will not expose persons to injury or property to damage from such effects.

2. The Los Angeles Department of Water and Power (LADWP) personnel shall have access to the LADWP Transmission Line Rights-of-Way (TLRW) at all times.

3. Unauthorized parking of vehicles or equipment shall not be allowed on the TLRW at any time.

4. Unauthorized storage of equipment or material shall not be allowed on the TLRW at any time.

5. Fueling of vehicles or equipment shall not be allowed on the TLRW at any time.

6. Patrol roads and/or the ground surfaces of the TLRW shall be restored by the Licensee to original conditions, or better.

7. All trash, debris, waste, and excess earth shall be removed from the TLRW upon completion of the project, or the LADWP may do so at the sole risk and expense of the Licensee.

8. All cut and fill slopes within the TLRW shall contain adequate berms, benches, and interceptor terraces. Revegetation measures shall also be provided for dust and erosion control protection of the TLRW.

9. All paving, driveways, bridges, crossings, and substructures located within the TLRW be designed to withstand the American Association of State Highway and Transportation Officials’ vehicular loading H20-44 or HL-93. The design shall also comply with applicable design standards.

10. The location of underground pipelines and conduits shall be marked at all points where they cross the boundaries of the TLRW and at all locations where they change direction within the TLRW. The markings shall be visible and identifiable metal post markers for underground pipelines. Utility markers flush with surface may be used on pavement.

LADWP File No. P-100034 46 of 66 Rev 11/2022
11A. General Grounding Condition
All aboveground metal structures including, but not limited to, pipes, drainage devices, fences, and bridge structures located within or adjoining the TLRW shall be properly grounded, and shall be insulated from any fencing or other conductive materials located outside of the TLRW. For safety of personnel and equipment, all equipment and structures shall be grounded in accordance with State of California Code of Regulations, Title 8, Section 2941, and National Electric Code, Article 250.
11B. Grounding Condition for Cellular Facilities on Towers All aboveground metal structures including, but not limited to, pipes, drainage devices, fences, and bridge structures located within or adjoining the TLRW shall be properly grounded, and shall be insulated from any fencing or other conductive materials located outside of the TLRW. For safety of personnel and equipment, all equipment and structures shall be grounded in accordance with American National Standards Institute of Electrical and Electronics Engineers Standard 487-latest edition, IEEE Guide for Safety in AC Substation Grounding.

12. Licensee shall neither hold the LADWP liable for nor seek indemnity from the LADWP for any damage to the Licensee's project due to future construction or reconstruction by the LADWP within the TLRW.

13. Fires and burning of materials is not allowed on the TLRW.

14. Licensee shall control dust by dust-abatement procedures approved by the LADWP, such as the application of a dust palliative or water.

15. The TLRW contains high-voltage electrical conductors; therefore, the Licensee shall utilize only such equipment, material, and construction techniques that are permitted under applicable safety ordinances and statutes, including the following: State of California Code of Regulations, Title 8, Industrial Relations, Chapter 4, Division of Industrial Safety, Subchapter 5, Electrical Safety Orders; and California Public Utilities Commission, General Order No. 95, Rules for Overhead Electric Line Construction.

16. Licensee is hereby notified that grounding wires may be buried in the TLRW; therefore, the Licensee shall notify the LADWP's Transmission Construction and Maintenance Business Group at (818) 771-5014, or (818) 771-5076, at least Fourteen (14) days prior to the start of any construction activities in the TLRW. 17A. Vehicle Parking
An area within 50 feet around the base of each tower must remain open and unobstructed for maintenance and emergencies, including periodic washing of LADWP File No. P-100034 47 of 66 Rev 11/2022
insulators by high-pressure water spray. Clearances of 100 feet may be required under circumstances where access is limited.
17B. Trucking Operations and Storage Operations
An area within 50 feet around the base of each tower must remain open and unobstructed for maintenance and emergencies, including periodic washing of insulators by high-pressure water spray. Clearances of 100 feet may be required under circumstances where access is limited.
17C. Permanent Structures
An area within 100 feet on all sides of each tower shall remain open and unobstructed for maintenance and emergencies, including periodic washing of insulators by high-pressure water spray.

18. Detailed plans for any grading, paving, and construction work within the TLRW shall be submitted for approval to the Real Estate Services, 221 N. Figueroa St., Suite 1600, Los Angeles, California 90012, no later than 45 days prior to the start of any grading, paving, or construction work. Notwithstanding any other notices given by Licensee required herein, Licensee shall notify the LADWP's Transmission Construction and Maintenance Business Group at (818) 771-5014, or (818) 771-5076, no earlier than 14 days and no later than two days prior to the start of any grading, paving, or construction work.

19. "As-Built " drawings showing all plans and profiles of the Licensee's project shall be furnished to the Real Estate Services, 221 N. Figueroa St., Suite 1600, Los Angeles, California 90012, within sixty (60) days after completion of Licensee's project.

20. In the event that construction within the TLRW is determined upon inspection by the LADWP to be unsafe or hazardous to the LADWP facilities, the LADWP may assign a line patrol mechanic at the Licensee's expense.

21. If the LADWP determines at any time during construction that the Licensee's efforts are hazardous or detrimental to the LADWP facilities, the LADWP shall have the right to immediately terminate said construction. 22A. All concentrated surface water which is draining away from the permitted activity shall be directed to an approved storm drain system where accessible, or otherwise restored to sheet flow before being released within or from the TLRW. 22B. Drainage from the paved portions of the TLRW shall not enter the unpaved area under the towers. Drainage diversions such as curbs shall be used on three sides of each tower. The open side of each tower shall be the lowest elevation LADWP File No. P-100034 48 of 66 Rev 11/2022
side to allow storm water which falls under the tower to drain. The area under the towers shall be manually graded to sheet flow out from under the towers. 22C. Ponding or flooding conditions within the TLRW shall not be allowed, especially around the transmission towers. All drainage shall flow off of the TLRW. 22D. Licensee shall comply with all applicable environmental federal, state, local, and municipal laws, rules, order, regulations, statues, ordinances, codes, decrees, or requirements of any government regulating authority for construction activities. 23A. Fills, including backfills, shall be in horizontal, uniform layers not to exceed six inches in thickness before compaction, then compacted to 90 percent relative compaction in accordance with the American Society for Testing and Materials D1557.
23B. The top two inches to six inches of the concrete footings of the towers shall remain exposed and not covered over by any fill from grading operations. 23C. Licensee shall provide the LADWP with one copy each of the compaction report and a Certificate of Compacted Fill, for clean fill compaction within the LADWP's TLRW in accordance with the American Society for Testing and Materials D1557, approved by a geotechnical engineer licensed in the State of California.

24. A surety bond in the amount to be determined by the LADWP shall be supplied by the Licensee to assure restoration of the LADWP's TLRW and facilities, and compliance with all conditions herein.

25. The Licensee shall obtain and pay for all permits and licenses required for performance of the work and shall comply with all laws, ordinances, rules, orders, or regulations including, but not limited to, those of any agencies, departments, districts, or commissions of the State, County, or City having jurisdiction thereover.

26. The term "construction", as used herein, refers only to that construction incidental to the maintenance or repair of the existing (requested facility) and shall not be construed to mean permission to construct any additional (requested facility).

27. Signs shall not exceed four feet wide by eight feet long, shall not exceed a height of 12 feet, shall be constructed of noncombustible materials, and shall be installed manually at, and parallel with, the TLRW boundary.

28. Remote-controlled gates, or lock boxes containing the device or key for opening the remote-controlled gates, shall be capable of being interlocked with an LADWP padlock to allow access to the TLRW by the LADWP. Licensee shall contact LADWP's Transmission Construction and Maintenance Business Group LADWP File No. P-100034 49 of 66 Rev 11/2022
at (818) 771-5014, or (818) 771-5076, to coordinate the installation of an LADWP padlock.

29. Licensee's cathodic protection system, if any, shall have a design that does not cause corrosion to LADWP facilities. A detailed design of the Licensee's cathodic protection system shall be submitted for approval to the Real Estate Services, 221 N. Figueroa St., Suite 1600, Los Angeles, California 90012, no later than 45 days prior to the start of construction or installation of the cathodic protection system. 30A. Licensee shall install K-rails at a distance of ten feet from each side of the tower base for protection of towers. A distance of five feet from the tower base may be acceptable in locations where the patrol roads would be obstructed. 30B. Licensee shall install removable pipe bollards, spaced four feet apart, and at a distance of ten feet from each side of the tower base for protection of towers. A distance of five feet from the tower base may be acceptable in locations where the patrol roads would be obstructed.
31A Licensee shall provide and maintain a minimum 20-foot wide transition ramp for the patrol roads from the pavement to the ground surface. The ramp shall not exceed a slope of ten percent.
31B. Licensee shall provide and maintain a minimum 20-foot wide driveway and gate at all locations where the (road/street) crosses the LADWP's patrol roads. The designed gates must be capable of being interlocked with an LADWP padlock to allow access to the TLRW by the LADWP.

32. Licensee shall post a sign on the entrance gate to the TLRW, or in a visible location inside the entrance gate, identifying the contact person's name and telephone number for the prompt moving of (vehicles/trucks/trailers/containers) at times of LADWP maintenance or emergency activities, or any other event that (vehicles/trucks/trailers/containers) must be moved. In emergency conditions, the LADWP reserves all rights at any time to move or tow (vehicles/trucks/trailers/ containers) out of specific areas for any transmission operation or maintenance purposes.

EXHIBIT E
Understanding EMF
Electric and Magnetic Fields
LADWP Position Statement on EMF can be found at the
following link: LADWP Position Statement on Electric & Magnetic Fields (EMF)
During recent years, questions have been raised about the possible health effects of 60-hertz (power frequency) electric and magnetic fields (EMF), which are found wherever you have LADWP File No. P-100034 51 of 66 Rev 11/2022
electricity. This document contains easy-to-read information that will help you understand the EMF issue, plus practical tips you can use if you want to reduce your exposure at home and at work.

Can EMF Harm Your Health?
Electric and magnetic fields (EMF) are present wherever electricity flows - around appliances, power lines, in offices, schools, and homes. Many researchers believe that if there is a risk of adverse health effects from EMF, it is probably low but warrants further investigation. Most, but not all, childhood studies have reported a weak association between estimates, but not direct measures, of residential magnetic field exposure and certain types of childhood cancer.

Worker studies have shown mixed results. Laboratory experiments have shown that magnetic fields can cause changes in living cells. It is not clear whether these changes suggest any risk to human health.

Given the uncertainty of the issue, the medical and scientific communities have been unable to determine that EMF causes health effects or to establish any standard or level of exposure that is known to be either safe or harmful.

The Two Types of Fields
60-HERTZ

MAGNETIC FIELDS
60-HERTZ

ELECTRIC FIELDS
Can pass through most objects. Can be blocked or partially shielded.

Get weaker with distance. Get weaker with distance.

Are created by the current - or flow of
electricity - through a wire, such as when
an appliance is turned on.

Are produced by the voltage - or electrical
"pressure" - in a wire, such as when an
appliance is plugged in (but not turned on).

Magnetic Field Measurements
Magnetic Fields in the Home
Measurements are in milligauss (mG)
Home Appliances at 1.2" away 12" away 39" away
Microwave Oven 750 to 4,000 mG 40 to 80 mG 3 to 8 mG
Clothes Washer 8 to 400 mG 2 to 30 mG 0.1 to 2 mG
Electric Range 60 to 2,000 mG 4 to 40 mG 0.1 to 1 mG
LADWP File No. P-100034 52 of 66 Rev 11/2022
Fluorescent Lamp 400 to 4,000 mG 5 to 20 mG 0.1 to 0.3 mG Hair Dryer 60 to 20,000 mG 1 to 70 mG 0.1 to 3 mG
Television 25 to 500 mG 0.4 to 20 mG 0.1 to 2 mG
Source: Adapted from Gauger 1985
Magnetic Fields Outside
(Maximum range in California utilities will vary.)
Distribution Lines 1 to 80 milligauss under the line
Transmission Lines 1 to 300 milligauss edge of right-ofway Research Is Ongoing
A number of research studies are now under way to determine if magnetic fields do pose any health risk and, if so, what aspect of the fields might be harmful. For example, at this time, no one knows whether the length of time in a field, the field strength, going "in and out" of a field, or combinations of these with other factors might be relevant.

What Is Being Done About EMF in California?
As a result of a 1993 decision by the California Public Utilities Commission, an EMF research and information program has been established. The purpose of the program is to perform research and policy analysis, and provide education and technical assistance to benefit Californians.

What You Can Do?
Studies of EMF have not shown that people need to change the way they use electric appliances or equipment. However, if you feel reducing your exposure would be beneficial, you can increase your distance from electric appliances and/or limit the amount of time you use appliances at home or at work.

For instance:
• You can place telephone answering machines and electric clocks away from the head of your bed.
• You can increase your distance from appliances such as televisions, computer monitors and microwave ovens.
• You can also reduce your EMF exposure by limiting the time you spend using personal appliances such as hair dryers, electric razors, heating pads and electric LADWP File No. P-100034 53 of 66 Rev 11/2022
blankets.
• You can limit the time you spend using electric cooking appliances. • You can locate sources of EMF in your work environment and spend break time in lower- field areas.

It is not known whether such actions will have any impact on your health.

To summarize:
• EMF exists wherever there is electricity: in homes, in workplaces, and near power lines. Electric fields exist whenever equipment is plugged in, but magnetic fields exist only when equipment is turned on. Both types of fields get weaker with distance from their source.
• Until more is known, your best strategy is to stay informed and, if you think it is necessary, to limit your exposure. You may be able to reduce your exposure by identifying EMF sources, changing the way you use electric appliances, and increasing your distance from EMF sources.

For More Information Contact Us:
• Call: LADWP EMF Inquiry Line - (213) 842-0221
• Email: [email protected]
• Mail:

Los Angeles Department of Water and Power
EMF and Education
111 North Hope Street, Room 1044
Los Angeles, CA 90012
• Website: https://www.ladwp.com/emf
Links to other related sites:
• EMF Rapid Program
http://www.niehs.nih.gov/health/topics/agents/emf/
• The BioElectro Magnetic Society
http://www.bioelectromagnetics.org/index.php
• National Cancer Institute
https://www.cancer.gov/about-cancer/causes-revention/risk/radiation/electromagnetic-fieldsfact-sheet • World Health Organization
https://www.who.int/peh-emf/publications/facts/fs322/en/ • Center for Disease Control
https://www.cdc.gov/niosh/docs/96-129/

EXHIBIT F
LADWP File No. P-100034 55 of 66 Rev 11/2022
Required Maintenance, By Licensee, of the Licensed Area, Landscaping, Parkways, Between Fences, and Public Street
1) WORK
a) Licensee shall be responsible for maintenance of the entire transmission line rights-of-way within the limits of the Agreement in a neat, clean, and weed-free condition, including landscaping, parkways, between fences, and public streets.
b) Landscape maintenance to include, but not limited to turf, shrub, tree, curb, walkway, draining devices and gutter maintenance. 2) TURF CARE
a) MOWING: Turf shall be mowed twice a month within a rotary or reel type mower. Height of cut shall be ¾” of an inch. When mowing, a grass catcher must be used.
b) EDGING/TRIMMING: The edge of the grass shall be trimmed to a near and uniform line. Trim around all obstacles (sprinkler heads, valve box, backflow prevention device, etc.) to the same height and frequency as the rest of the lawn.
3) SHRUBS
a) PRUNING: All shrubs shall be pruned to a height of no more than 4 feet and no less than 3 feet. Remove all clippings the same day as pruning. b) TRIMMING: Restrict growth of shrubbery to area behind curbs, and walkways, and keep within planter beds, away from wall and fences by 3 feet.
c) REPLACEMENT: All damage, diseased, (untreatable) or dead shrubs due to licensee’s negligence will be replaced at the Licensee’s expense. 4) TREE MAINTENANCE OF EXISTING TREES
a) Maintain a 9-foot clearance for branches overhanging walks and 14-foot clearance for branches overhanging beyond curb line, into the paved section of streets, where applicable. Maximum height of trees shall be no more than 15 feet.
b) Remove all dead, broken diseased, insect infested branches, and stubs of any tree throughout the transmission line rights-of-way. c) Shorten the length of limbs which extend beyond the natural perimeter of an otherwise symmetrical form.

LADWP File No. P-100034 56 of 66 Rev 11/2022
d) Remove weight off limbs that are likely to cause breakage. Remove cross limbs, water sprouts, and suckers.
e) All vines growing on trees shall be removed without injury to the trees. f) Final pruning cuts shall be made outside of the branch bark ridge without leaving a stub. They shall be made in a manner to favor the earliest covering of the wood by callus growth. This requires that the wound be as small as practicable, and that the cambium tissues at the edge of the cut be alive and healthy.
g) Trimming of the trees should also provide adequate clearance for any obstructed traffic control signs and signals, street light standard, mast-arm, globe, signs, yard lights, windows, entry ways, and private property. h) Tree maintenance of all existing protected trees, as defined by the State County, or City having jurisdiction, thereover, shall be performed by or under the direction of an Arborist certified with the International Society of Arboriculture.
5) WEED CONTROL
a) Control weed and noxious grass growth in turf and shrub beds, and curb gutter expansion joints and walkway expansion joints and cracks. b) Weeds shall be removed from all planted, areas, curbs, gutter, and walkway areas within a 10-day period from the time that they are first visible.
c) The removal method can incorporate hand removal and/or cultivation 6) IRRIGATION
a) Irrigation (including hand watering), as required to maintain adequate growth and appearance, shall be in accordance with a schedule most conducive to plant growth.
b) Consideration must be given to the soil conditions, seasonal temperatures, wind conditions, and humidity, minimizing runoff and the relationship of conditions which affect day and night watering. This may include daytime watering during freezing weather to prevent icy conditions and manual operation of the irrigation system during periods of windy or inclement weather and/or hand watering with portable sprinklers.
7) TRASH, GATES & FENCES, TRIMMING
LADWP File No. P-100034 57 of 66 Rev 11/2022
a) Remove all litter, trash and debris from the turf, curb, fences, gates, entry ways, and walkway, especially the area from the curb to the fence. This includes the public sidewalk, parkways, and greenbelt.
b) Gates and fences should be maintained in their original condition, unless directed otherwise in writing by LADWP.
c) All shrubbery, plants, vines, etc. should be trimmed, maintained, and kept in a neat, clean, and orderly manner.
8) LIMITS AND RESTRICTIONS
a) No new vegetation planting within 50-feet from the corners of a transmission tower, measured at ground level.
b) Approved vegetation shall not be allowed to grow in excess of 15-feet in height.

EXHIBIT G

GENERAL GUIDELINES FOR ALL SECONDARY LAND USE PROGRAMS
(Transmission Line Rights-of-Way)

1. User acknowledges and recognizes that power transmission line rights-of-way are integral component of the transmission line system which provide electric power to the City of Los Angeles and other local communities. Their use is regulated under the jurisdiction of the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Council (NERC). Safety and protection of critical facilities are the primary factors used to evaluate secondary land use proposals. The transmission line rights-of way serve as platforms for access, construction, operation, maintenance, facility expansion and emergency operations. Therefore, the User’s possessory rights may from time to time be subject to temporary or permanent disruption caused by such operations or rules/regulations issued by FERC/NERC.

2. To comply with NERC Standard FAC-003-4, LADWP’s Transmission Vegetation Management Program (as last revised) defines parameters restricting where trees are allowed on transmission line rights-of-way. Existing trees may be removed by LADWP. User shall not plant trees within the transmission line rights-of-way.

Unauthorized trees planted by User shall be removed upon demand by LADWP and at the expense of the User.

3. Agreement term of all secondary land uses shall be five years or less, unless otherwise stated on the Agreement.

LADWP File No. P-100034 58 of 66 Rev 11/2022

4. LADWP reserves the right to license/lease/permit other uses within the transmission line right-of-way which would not conflict with the proposed secondary land use, or conflict with User’s use of the transmission line right-of-way.

5. Upon initial application, the User shall provide, if required, a preliminary design of proposed improvements for LADWP review. Prior to construction or occupancy, User shall provide a detailed layout plan for review and approval of LADWP. The layout plan will include, but not be limited to, location of towers, transmission line rights-ofway boundaries, paved area(s), location of a required patrol road, distances between the towers and the conductor drip lines, landscaping areas, a drainage plan, all above-ground metal structures including but not limited to, pipes, fencing, lighting supports, and a lighting scheme, if required.

6. The granting of an Agreement for secondary land use will apply to transmission line rights-of-way that are rated up to 500 kV. Induction forces emanating from transmission lines may cause inconvenience and discomfort associated with static discharges. User must post a prominently displayed “shock or hazard warning” sign.

Some secondary land uses may not be allowed under transmission line rights-of-way that are rated 345 kV and above. See specific secondary land use guidelines for allowable uses.

7. The area governed by any Agreement cannot segment the transmission line rightsof-way in such a manner that the remaining area is rendered useless for other secondary land use
activities. LADWP may require the User to license/lease the entire segment of the transmission line right-of-way. Furthermore, the area selected must not create a security problem for LADWP.

8. Use of the transmission line rights-of-way may be subject to existing easements or Agreements. Real Estate will provide general information regarding the existing uses and associated improvements. User shall be responsible for the identification and protection of the existing facilities during construction of approved improvements.

User shall provide reasonable access to any other Users or easement holders.

9. The Agreement will require a surety bond provided by the User in an amount to be determined by LADWP. Such bond will be sufficient enough to assure restoration of LADWP's property to its pre-licensed/leased condition and shall comply with all stipulated terms and conditions of the Agreement.

10. The latest Risk Management insurance requirements, liability conditions, and indemnification shall apply.

11. At User’s expense, User shall be responsible for obtaining all conditional use permits, all environmental documents such as California Environmental Quality Act documents, if applicable, all environmental permits, and use the licensed area for LADWP File No. P-100034 59 of 66 Rev 11/2022
secondary land use activities only. Furthermore, User shall comply with all current and future applicable laws, ordinances, rules, orders, or regulations including, but not limited to, those of any agencies, departments, districts, or commissions of the State, County, or City having jurisdiction thereover.

12. All Federal, State, local permits, and related governmental requirements to develop the licensed area (building permits, conditional use permits, environmental impact reports, public hearing, USA underground service alert, etc.) will be the responsibility of the User.

13. User shall be required to comply with all applicable City, County, State, and Federal Storm Water Permit and Standard Urban Storm Water Mitigation requirements.

14. User will be required to comply with existing regulations, but not limited to Federal, State and local laws, regulations, permits and requirements, regarding the use and disposal of pollutants, contaminants and hazardous wastes or substances on the licensed/leased/permitted area. User will be responsible for clean-up of any spills, leakage or discharges of such substances on the licensed/leased/permitted area.

15. The transmission line right-of-way may contain low-voltage and high-voltage electrical conductors and above and below ground structures; therefore, the User shall utilize only such equipment, material, and construction techniques that are permitted under applicable safety ordinances and statutes including, but not limited to the following: State of California Code of Regulations, Title 8, Industrial Relations, Chapter 4, Division of Industrial Safety, Subchapter 5, Electrical Safety Orders; NEC, and California Public Utilities Commission, General Order No. 95, Rules for Overhead Electric Line Construction, and General Order 128, Rules for Underground Electric Line Construction.

16. Because of overhead electrical conductors, User shall use only such equipment as is consistent with the terms of safety ordinances or statutes, and generally accepted safety practices.

17. All above ground metal structures including, but not limited to, pipes, drainage devices, fences, bridge structures, and lighting supports located within or adjoining the transmission line rights-of-way shall be properly grounded, in accordance with the California Code of Regulations, Title 8, Section 2941, and/or National Electrical Code (NEC), Article 250, and local applicable codes.

18. Overhead telephone and power cables shall be permitted only at the edge of the transmission line rights-of-way. Communications and electric power crossings of LADWP's transmission line rights-of-way shall be underground and must be approved by LADWP's Transmission Construction and Maintenance Group prior to installation.

LADWP File No. P-100034 60 of 66 Rev 11/2022

19. Unless written authorization from LADWP is obtained, no above-ground temporary or permanent structures are allowed in the transmission line rights-of-way.

20. All grading, storm drains, structural, and developmental drawings (site plans) must be approved by LADWP prior to any development/improvement.

21. LADWP may access the facilities at any time with no notice for an emergency purpose, for routine maintenance, site inspection, and with up to 180 days’ notice for capital projects and construction purposes. Rent will not be abated for disruption of business or loss of use due to routine maintenance functions. Rent may be abated on a pro-rata basis for loss of use during emergency conditions or construction at the sole discretion of LADWP.

22. When required for emergency restoration work or normal maintenance operation on the transmission system, User shall be required to cooperate promptly and diligently with LADWP's effort to move vehicles, materials, and or equipment out of specific areas required to perform routine or emergency work or operations. Under emergency conditions, LADWP reserves all rights at any time to move or tow vehicles, materials, and or equipment out of specific areas for any transmission operation or maintenance purposes at the expense of User.

23. Cross fencing will generally not be permitted except at natural boundaries, roadways, and existing railroad crossings. At those locations, gates adequate to allow access by LADWP vehicles will normally be required. All improvements, including fencing, on LADWP transmission line rights-of-way are subject to the written approval of LADWP. Requests for cross fencing and other exceptions will be reviewed on a case-by-case basis. If additional fencing is approved, it shall be installed at the User’s expense. Such fencing shall become the property of LADWP should the Agreement be terminated. If LADWP requires the fence to be removed, it will be done at User's expense.

24. A suitable access to the transmission line rights-of-way through 20-foot-wide gates with the ability to have multiple interlocking bail-type padlocks must be provided to permit entrance of LADWP vehicles. User shall contact the Right of Way Group at (213) 367-2972 to coordinate the installation of a LADWP padlock on the gates.

25. A permanent, unobstructed 20-foot patrol road, accessible at all times by LADWP maintenance personnel shall be provided and maintained. A wider patrol road width will be required on curved segments. The patrol road must remain open and unobstructed, excluded from any watering, and kept as dry as possible at all times.

The patrol road shall be located in the center of the transmission line right-of-way unless specified elsewhere by the Agreement.

26. The designated patrol road must be designed to withstand a combined weight of 40,000 pounds in accordance with the American Association of State Highway and LADWP File No. P-100034 61 of 66 Rev 11/2022
Transportation Officials H20-44 wheel loadings. There must also be a sufficient turning radius at all patrol road junctures to allow large LADWP maintenance vehicles to maneuver. The minimum turning radius on all patrol roads and intersections is 80 feet. Areas outside of the designated patrol roads may be designed to a lesser standard if User holds LADWP harmless for any damages incurred as a result of LADWP operations.

27. No ponding shall be allowed within the transmission line rights-of-way. Grading shall be designed so as to eliminate all ponding conditions within the transmission line rights-of-way.

28. An area at least 50 feet around the base of each tower, measured from the outermost surfaces of the footings, must remain open and unobstructed for necessary maintenance, including periodic washing of insulators by high-pressure water spray. Clearances of 100 feet may be required under circumstances where access is limited.

29. In the vicinity of the towers (not within patrol roads), decomposed granite or other nonorganic materials, which vehicles can drive on and intended to discourage pedestrian traffic from being in the area, may be required.

30. Protective barriers may be required to protect towers. Acceptable barriers include, but are not limited to, curbs, removable bollards, and k-rails.

31. No benches, boulders, ornamental structures are allowed in the transmission line rights-of-way.

32. No improvements of any kind may be installed in the transmission line rights-of-way without the written permission of LADWP.

33. No vehicles may be inhabited while parked on the transmission line rights-of-way.

34. No unleashed animals (six-foot leash maximum) are allowed underneath the transmission line rights-of-way. Further, no animals shall be utilized for security measures or be housed on the transmission line rights-of-way, unless otherwise approved by LADWP in writing.

35. Storage of hazardous waste and flammable materials is not permitted within the transmission line rights-of-way area.

36. User shall be responsible for maintenance of the entire transmission line rights-ofway within the limits of the Agreement in a neat, clean, and weed-free condition, including landscaping and parkways between fences and public streets.

LADWP File No. P-100034 62 of 66 Rev 11/2022

37. User shall be required to post a sign on site containing the contact person and a telephone number in the event that vehicles must be moved.

38. Vehicles parked under the transmission line rights-of-way may be subject to water spotting from occasional transmission line insulator washing operations. User must post a prominently displayed sign stating, “This area may be subject to water spotting at any time from transmission line insulator washing operations”.

39. Vehicles carrying any flammable, explosive, or corrosive loads, including hazardous materials or hazardous wastes, or "placarded loads" (defined as those which are required by law or regulation to carry signs defining its contents for public safety) shall not be allowed within the transmission line rights-of-way area at any time.

40. User shall take all reasonable measures to minimize disturbances to neighboring businesses or residences, including but not limited to control of dust from their activities and noise, and shall be responsible for resolving any complaints/disputes from adjacent property owners or the public to the satisfaction of LADWP.

41. Temporary advertising banners/signage, if allowed, may only be attached to the transmission line right-of-way fencing. The banners/signage may not be larger in size than the fencing, must be of flame-retardant material, must be mounted with grommets and metal fasteners every 24 inches around the perimeter, and must meet any local advertising ordinances. Free standing signs shall be subject to the written approval of LADWP.

42. Any lighting proposals shall be submitted to and approved by LADWP’s Transmission Construction and Maintenance Division prior to installation.

LADWP File No. P-100034 63 of 66 Rev 11/2022
To: Honorable City Council
From: John Moreno, City Manager
By: Yecenia Guillen, Community Services
Director
Date: August 12, 2025
SUBJECT: IMMIGRATION HUMANITARIAN SERVICES PROGRAM
On June 24, 2025, during the FY 2025-2026 budget approval process, the City Council approved $100,000 in funds for the Immigration Humanitarian Services Program. This program is aimed at assisting Paramount families directly affected by immigration enforcement, by providing them with essential household items, utility assistance, and groceries.

In this effort, two local non-profit entities were identified to lead and implement the program. The two groups identified were Mujeres Unidas Sirviendo Activamente (MUSA) and the Paramount Care Foundation (PCF). The groups began serving the community during the week of June 29th. Tonight, MUSA and PCF will provide a status report on their efforts in serving the community and present an update on the Immigration Humanitarian Services Program via an oral report.

To: Honorable City Council
From: John Moreno, City Manager
By: Lana Dich, Finance Director
Date: August 12, 2025
SUBJECT: APPROVING PRELIMINARY OFFICIAL STATEMENT IN CONNECTION

WITH THE ISSUANCE AND SALE BY THE PARAMOUNT PUBLIC

FINANCING AUTHORITY OF ITS LOCAL MEASURE M

TRANSPORTATION SALES TAX REVENUE BONDS, AND THE

PREPARATION OF AN OFFICIAL STATEMENT AND AUTHORIZING

THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES

AND RELATED ACTIONS

BACKGROUND
The Los Angeles County Metropolitan Transportation Authority (“LACMTA”) imposes a sales tax in the County of Los Angeles (the “County”), including the City, approved by the voters in the County pursuant to Measure M at an election held on November 8, 2016 (“Measure M”). A portion of the Measure M sales tax revenues are allocated and paid by LACMTA to the County and cities located within the County, including the City of Paramount (the “City”), for the purpose of funding transportation projects that are eligible for funding from Measure M.

The Measure M sales tax is currently 0.5 percent of the gross receipts of the sale.

Measure M also imposes a complementary tax upon the storage, use or other consumption in the County at a rate of 0.5 percent of the sales price of the property whose storage, use or other consumption is subject to the tax, increasing to 1 percent on July 1, 2039.

With the assistance of the Paramount Public Financing Authority (the “Authority”), the City desires to finance all or a portion of the costs of the design, acquisition, installation, and construction of street and roadway improvements, located in various sites in the City, that are eligible for funding from Measure M sales tax revenues (collectively, the “Projects”).

On May 27, 2025, and June 12, 2025, respectively, the City Council and the Authority’s Board of Directors authorized the issuance by the Authority of its Local Measure M Transportation Sales Tax Revenue Bonds (the “Bonds”), in an amount not to exceed $10,500,000, to finance the Projects.

Agenda Report August 12, 2025
RESOLUTION NO. 25:028 Page 2
To proceed with the issuance and sale of the Bonds, staff recommends that the following resolutions be adopted:

1. City Council Resolution No. 25:028, entitled “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PARAMOUNT APPROVING A PRELIMINARY

OFFICIAL STATEMENT IN CONNECTION WITH THE ISSUANCE BY THE

PARAMOUNT PUBLIC FINANCING AUTHORITY OF ITS LOCAL MEASURE M

TRANSPORTATION SALES TAX REVENUE BONDS, AUTHORIZING THE

EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE

AND THE PREPARATION OF AN OFFICIAL STATEMENT AND AUTHORIZING

THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS”; and

2. Board of Directors Resolution No. PPFA-004-25, entitled “A RESOLUTION OF

THE BOARD OF DIRECTORS OF THE PARAMOUNT PUBLIC FINANCING

AUTHORITY APPROVING A PRELIMINARY OFFICIAL STATEMENT IN

CONNECTION WITH THE ISSUANCE BY THE AUTHORITY OF ITS LOCAL

MEASURE M TRANSPORTATION SALES TAX REVENUE BONDS, AND THE

PREPARATION OF AN OFFICIAL STATEMENT AND AUTHORIZING THE

EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND
RELATED ACTIONS”.

DISCUSSION
The last and final approval by the City Council and the Board required for the issuance of the Bonds relates to the Preliminary Official Statement and related documents.

Approval of Documents
The resolutions before the Council and the Board provide for the approval of the Preliminary Official Statement and the other documents described below.

Preliminary Official Statement.

With the assistance of the financing team, City staff have prepared a form of Preliminary Official Statement (the “POS”) to be used in connection with the offering and sale of the Bonds. The POS will be distributed to prospective purchasers of the Bonds. The form of POS is attached.

The distribution of the POS by the City and the Authority is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the POS to include all facts that would be material to an investor in the Bonds.

Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Bonds. If the City Council and the Board of Directors conclude that the POS includes all facts that would be material to an investor in the Bonds, they must adopt a Agenda Report August 12, 2025
RESOLUTION NO. 25:028 Page 3
resolution that authorizes staff to execute a certificate to the effect that the POS has been “deemed final.”
The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the compliance by the City and the Authority with the federal securities laws, has issued guidance as to the duties of the City Council and the Board of Directors with respect to their approval of the POS. If a member of the City Council or the Board of Directors has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the Bonds, whether relating to their repayment, taxexempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the POS. The SEC has indicated that the steps that a member could take include becoming familiar with the POS and questioning staff and consultants about the disclosure of such facts.

The City Council, as the governing body of the City, and the Board of Directors, as the governing body of the Authority, have an obligation to ensure that the POS includes all information that would be material to a prospective investor’s decision whether to purchase the Bonds. While the City’s disclosure counsel, municipal advisor, and the underwriter of the Bonds have participated in preparing the documents, the City and the Authority are ultimately responsible for ensuring that the POS is accurate, contains no misleading information, and does not omit any information necessary to make the POS not misleading to investors.

The proposed resolutions authorize any one of the Mayor/Chair, City Manager/Executive Director, Finance Director/Treasurer, and City Clerk/Secretary of the City and the Authority, respectively and each of their authorized designees (the “Authorized Officers”) to certify to the underwriter of the Bonds that the POS has been “deemed final” for purposes of Rule 15c2-12 (“Rule 15c2-12”) promulgated by the SEC under the 1934 Act.

The proposed resolutions further authorize preparation and delivery of a final Official Statement and any update or supplement thereto (the “Official Statement”), and its use in connection with the offering and sale of the Bonds. Any one of the Authorized Officers is also authorized and directed to execute and deliver the final Official Statement, and any amendment or supplement thereto, for and in the name and on behalf of the City and the Authority.

Continuing Disclosure Certificate.

Issuers are obligated to comply with certain continuing disclosure requirements pursuant to undertakings entered into in connection with the issuance of their bonds. These undertakings obligate issuers to provide annual reports that contain financial information (including audited financial statements, when available) and operating data and specific event notices to the Electronic Municipal Market Access system of the Municipal Agenda Report August 12, 2025
RESOLUTION NO. 25:028 Page 4
Securities Rulemaking Board. This continuing disclosure obligation arises under Rule 15c2-12. The form of Continuing Disclosure Certificate is included with the POS as an appendix.

To assist the underwriter of the Bonds to comply with Rule 15c2-12, the City will deliver a Continuing Disclosure Certificate at the time the Bonds are issued. The Continuing Disclosure Certificate will be delivered by the City for the benefit of owners of the Bonds and to assist the underwriter of the Bonds in complying with Rule 15c2-12. This document describes various annual and certain event reporting and disclosure obligations of the City, as required by federal securities laws.

Disclosure Policies and Procedures.

With the assistance of disclosure counsel, Staff have prepared the Disclosure Policies and Procedures attached. The Disclosure Policies and Procedures are intended to assist the City and the Authority to comply with their obligations under federal securities laws with respect to initial disclosure and continuing disclosure undertaking.

Next Steps
If the City Council and Board of Directors adopt the proposed resolutions, the financing team will assist City Staff to seek credit ratings and bond insurance/debt service reserve policies for the Bonds. It is presently anticipated that the Bonds will be sold and delivered in September 2025.

FISCAL IMPACT
Pursuant to Section 5852.1 of the Government Code, good faith estimates must be disclosed at a public meeting before the authorization of the Bonds. The required good faith estimates for the Bonds were provided by the Authority’s Municipal Advisor, Kosmont Financial Services, in consultation with Raymond James & Associates, Inc., the Underwriter of the Bonds, and are attached as Exhibit A to the proposed resolutions. The table below summarizes those estimates and includes additional information.

Principal Amount: $9,360,000
Final Maturity: May 1, 2055
True interest cost: 4.7174%
Finance charge: $394,003
Amount of proceeds to be received: $9,313,000
Average annual debt service: $597,215
Total debt service payment amount: $17,916,437
*These are good faith estimates only and are based on market rates as of August 7, 2025.

Actual results will likely differ based on market conditions as of the actual sale date and other factors. However, for the financing to proceed, the not-to-exceed parameters described in the previous section must be met.

Agenda Report August 12, 2025
RESOLUTION NO. 25:028 Page 5

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
Adopt Resolution No. 25:028, entitled “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PARAMOUNT APPROVING A PRELIMINARY OFFICIAL STATEMENT

IN CONNECTION WITH THE ISSUANCE BY THE PARAMOUNT PUBLIC FINANCING

AUTHORITY OF ITS LOCAL MEASURE M TRANSPORTATION SALES TAX REVENUE

BONDS, AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING

DISCLOSURE CERTIFICATE AND THE PREPARATION OF AN OFFICIAL

STATEMENT AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.”

CITY OF PARAMOUNT

LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 25:028

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT

APPROVING A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION

WITH THE ISSUANCE BY THE PARAMOUNT PUBLIC FINANCING

AUTHORITY OF ITS LOCAL MEASURE M TRANSPORTATION SALES

TAX REVENUE BONDS, AUTHORIZING THE EXECUTION AND

DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE AND THE

PREPARATION OF AN OFFICIAL STATEMENT AND AUTHORIZING THE

EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND

RELATED ACTIONS
WHEREAS, the City of Paramount, California (the “City”) is a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California;
WHEREAS, the Paramount Public Financing Authority (the “Authority”) is a joint exercise of powers entity duly organized and existing pursuant to the laws of the State of California and that certain Joint Exercise of Powers Agreement, dated as of July 16, 1991 (the “Joint Powers Agreement”), between the City and the Paramount Redevelopment Agency (the “Former Agency”);
WHEREAS, the Former Agency, as of February 1, 2012, has been dissolved and the Successor Agency for the Paramount Redevelopment Agency has become the successor agency of the Former Agency pursuant to Part 1.85 of Division 24 of the California Health and Safety Code and per California Health and Safety Code Section 34178(b)(3), the Joint Powers Agreement remains in effect; WHEREAS, pursuant to the Joint Powers Agreement and Section 6588(h) of the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code, the Authority has the legal authority to issue revenue bonds to assist the City in financing projects and programs consisting of certain public improvements or working capital or liability and other insurance needs whenever the City determines that there are significant public benefits from so doing; WHEREAS, on July 23, 2016, the Los Angeles County Metropolitan Transportation Authority (“LACMTA”), adopted Ordinance No. 16-01, known as the Los Angeles County Traffic Improvement Plan (as amended, the “Measure M Ordinance”), imposing a transactions and use tax for transportation purposes subject to approval by the electors of the County of Los Angeles, California (the “County”); WHEREAS, the Measure M Ordinance was submitted to the electors of the County in the form of Measure M and was approved by greater than a two-thirds vote at an election held on November 8, 2016;
RESOLUTION NO. 25:028

Page 2 ends

WHEREAS, the Measure M Ordinance, as so approved, imposes a tax, beginning July 1, 2017, upon the sale of tangible personal property at retail at a rate of 0.5 percent of the gross receipts of the sale and a complementary tax upon the storage, use or other consumption in the County at a rate of 0.5 percent of the sales price of the property whose storage, use or other consumption is subject to the tax, with the rate increasing to 1 percent on July 1, 2039;
WHEREAS, a portion of the Measure M Sales Tax revenues (as more fully defined in the Trust Agreement, the “Measure M Revenues”) are allocated and paid by LACMTA to the County and cities located within the County (the “Local Agencies”), including the City, for the purpose of funding transportation projects eligible to be funded with Measure M Revenues pursuant to the Measure M Ordinance and the guidelines prepared by LACMTA and disseminated to the Local Agencies, approved by the LACMTA Board on June 22, 2017, as amended (the “Measure M Guidelines”), relating to the administration and use of the Measure M Sales Tax and the Measure M Revenues (the “Measure M Projects”);
WHEREAS, under the Measure M Ordinance, the City is entitled to receive Measure M Revenues in an amount determined pursuant to the Measure M Ordinance and the Measure M Guidelines; and
WHEREAS, the City and the Authority desire to finance all or a portion of the costs of the design, acquisition, installation, and construction of various street and roadway improvements, located in various sites in the City, that are eligible for funding from Measure M Revenues and therefore constitute Measure M Projects (collectively, the “Projects”), and the City has determined that the financing of the Projects is necessary and proper for, and of the common benefit of, the City; WHEREAS, the City Council of the City (the “City Council”), pursuant to Resolution No. 25:017, adopted on May 27, 2025 (the “Approving Resolution”), authorized the preparation, sale and issuance of the Local Measure M Transportation Sales Tax Revenue Bonds, in one or more series or subseries, on a federally tax-exempt or taxable basis (the “Bonds”), for the purpose of financing the Projects; WHEREAS, the City Council now desires to approve and cooperate with the Authority for the sale of the Bonds;
WHEREAS, Raymond James & Associates, Inc. (the “Underwriter”), previously presented the Authority and the City with a proposal to purchase the Bonds in the form of a Bond Purchase Agreement to be executed by and among the Authority, the City and the Underwriter;
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Bonds, the Underwriter must have reasonably determined that an obligated person has undertaken in a written agreement or contract for the benefit of the holders of the Bonds to provide RESOLUTION NO. 25:028

Page 3 ends

disclosure of certain financial information and certain material events on an ongoing basis;
WHEREAS, to cause such requirement to be satisfied, the City desires to enter into a Continuing Disclosure Certificate (such Continuing Disclosure Certificate, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Continuing Disclosure Certificate”);
WHEREAS, a Preliminary Official Statement to be used in connection with the offering and sale of the Bonds has been prepared (such Preliminary Official Statement in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Preliminary Official Statement”);
WHEREAS, the City Council has been presented with a form of the Preliminary Official Statement and the Continuing Disclosure Certificate, and the City Council has examined each document and desires to approve, authorize and direct the execution of such documents and authorize the sale of the Bonds;
WHEREAS, the City Council finds it desirable to adopt and maintain disclosure policies and procedures to assist the City to comply with its obligations under federal securities laws with respect to the City’s initial disclosure and continuing disclosure undertakings; and
WHEREAS, the City Council has been presented with a proposed form of disclosure policies and procedures (the “Disclosure Policies and Procedures”), and the City Council has examined the Disclosure Policies and Procedures and desires to approve them;

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 issuance and sale of the Bonds, on the terms and conditions set forth in, and subject to the limitations specified in, the Trust Agreement, was previously approved by this City Council in the Approving Resolution, and the City Council hereby confirms said approval.

RESOLUTION NO. 25:028

Page 4 ends

SECTION 3. The Preliminary Official Statement, on file with the City Clerk, with such changes, insertions and omissions therein as may be approved by the Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved.

Any one of the Mayor, the City Manager, the Finance Director, and the City Clerk, and each of their authorized designees (the “Authorized Officers”) are each hereby authorized and directed, for and on behalf of the City, to certify to the Underwriter that the Preliminary Official Statement has been “deemed final” for purposes of Rule 15c2-12.

SECTION 4. The preparation and delivery of a final Official Statement and any update or supplement thereto (the “Official Statement”), and its use in connection with the offering and sale of the Bonds, is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be approved by the Authorized Officer, such approval to be conclusively evidenced by the execution and delivery of the Official Statement by such Authorized Officer. Any one of the Authorized Officers is hereby authorized and directed to execute and deliver the final Official Statement, and any amendment or supplement thereto, for and in the name and on behalf of the Authority.

SECTION 5. The Continuing Disclosure Certificate, on file with the City Clerk, is hereby approved. Any one of the Authorized Officers is hereby authorized and directed, for and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution and delivery of the Continuing Disclosure Certificate by such Authorized Officer.

SECTION 6. The Disclosure Policies and Procedures, on file with the City Clerk, are hereby approved.

SECTION 7. The Authorized Officers are, and each of them hereby is, authorized and directed to execute necessary documents and certificates and do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. Each Authorized Officer and the City Clerk, acting alone, is hereby authorized and directed to attest the signature of an Authorized Officer as may be required in connection with the execution and delivery of the documents referenced in and otherwise authorized by this Resolution.

SECTION 8. All actions heretofore taken by the officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified.

RESOLUTION NO. 25:028

Page 5 ends

SECTION 9. The City Council hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

SECTION 10. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED by the City Council of the City of Paramount at a meeting held on this 12th day of August 2025.

Peggy Lemons, Mayor
ATTEST:

Heidi Luce, City Clerk
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Agenda Draft
PRELIMINARY OFFICIAL STATEMENT DATED _____________, 2025 NEW ISSUE—BOOK-ENTRY ONLY INSURED BONDS RATING: [____]
UNDERLYING: S&P: [____]
See the caption “RATINGS.”
In the opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, under existing law and subject to certain qualifications described herein, the interest on the Bonds is excludable from gross income for federal income tax purposes. In addition, interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, interest on the Bonds may affect the federal alternative minimum tax applicable to certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS.” $[PAR]*

PARAMOUNT PUBLIC FINANCING AUTHORITY
LOCAL MEASURE M TRANSPORTATION SALES TAX REVENUE BONDS, SERIES 2025 Dated: Date of Delivery Due: May 1, as shown on inside cover THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE BONDS. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.

The Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025 (the “Bonds”), are being issued pursuant to the provisions of a Trust Agreement, dated as of [September] 1, 2025 (the “Trust Agreement”), by and among the Paramount Public Financing Authority (the “Authority”), the City of Paramount (the “City”) and UMB Bank, National Association, as trustee (the “Trustee”).

The proceeds from the sale of the Bonds will be used: (i) to finance the design, acquisition, installation, and construction of certain street and roadway improvement projects located in the City (collectively, the “Projects”) and/or certain Additional Projects as defined herein; (ii) to purchase a municipal bond insurance policy for the Bonds; (iii) to purchase a debt service reserve policy to satisfy the reserve requirement for the Bonds; and (iv) to pay the incidental costs and expenses incurred in connection with issuance of the Bonds. The Authority will sell the Projects to the City pursuant to an Installment Sale Agreement, dated as of [September] 1, 2025 (the “2025 Installment Sale Agreement”), by and between the Authority and the City.

The City is required under the 2025 Installment Sale Agreement to make installment sale payments (the “Installment Sale Payments”) to the Authority, which Installment Sale Payments are payable from a first lien on all Measure M Receipts, which generally consist of certain amounts received by the City from a 0.5% retail transactions and use tax that is collected in the County of Los Angeles, California (the “County”) under the Measure M Ordinance (defined herein). The Measure M Ordinance imposes a tax, beginning July 1, 2017, upon the sale of tangible personal property at retail at a rate of 0.5% of the gross receipts of the sale and a complementary tax upon the storage, use or other consumption in the County at a rate of 0.5% of the sales price of the property whose storage, use or other consumption is subject to the tax.

The tax imposed pursuant to the Measure M Ordinance will increase to 1.0% on July 1, 2039. The Measure M Receipts are the only sources of payment of the Installment Sale Payments. Neither the general fund of the City nor any other moneys of the City are available to pay or secure the Installment Sale Payments or the Bonds. The obligation of the City to pay the Installment Sale Payments is not subject to abatement.

The Bonds will be issued in fully registered form without coupons and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds.

Individual purchases of Bonds may be made in book-entry form only, in the principal amount of $5,000 or integral multiples thereof for each maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. See the caption “THE BONDS—BookEntry Only System.” Payments of principal and interest on the Bonds will be made by the Trustee to DTC, which will in turn remit such principal and interest to its participants for subsequent dispersal to Beneficial Owners of the Bonds as described herein. Interest on the Bonds is payable on each May 1 and November 1, commencing November 1, 2025, until the maturity or the earlier redemption thereof. Principal on the Bonds will be paid on each May 1, commencing May 1, 2026, upon surrender of such Bond at the principal corporate office of the Trustee upon maturity or the earlier prepayment thereof.

The scheduled payment of principal of and interest on the Bonds maturing on May 1 of the years 20[__] through 20[__], inclusive (collectively, the “Insured Bonds”), when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Insured Bonds by [Insurer].
[[INSURER] LOGO]
The Bonds are subject to optional, mandatory and mandatory sinking fund prepayment prior to their stated principal payment dates as described herein.

ALL OBLIGATIONS OF THE AUTHORITY UNDER THE TRUST AGREEMENT AND THE BONDS ARE SPECIAL

OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM INSTALLMENT SALE PAYMENTS AND THE OTHER ASSETS PLEDGED UNDER THE TRUST AGREEMENT. THE OBLIGATION OF THE CITY TO MAKE INSTALLMENT SALE PAYMENTS UNDER THE 2025 INSTALLMENT SALE AGREEMENT IS A SPECIAL OBLIGATION OF THE CITY PAYABLE SOLELY FROM

MEASURE M RECEIPTS, DOES NOT CONSTITUTE A DEBT OF THE CITY, THE AUTHORITY, THE STATE OF CALIFORNIA (THE “STATE”) OR ANY POLITICAL SUBDIVISION OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR

STATUTORY DEBT LIMITATION OR RESTRICTION AND DOES NOT CONSTITUTE AN OBLIGATION FOR WHICH THE CITY,

THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF * Preliminary; subject to change.

TAXATION OR FOR WHICH THE CITY, THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. THE AUTHORITY HAS NO TAXING POWER. ____________________________________
MATURITY SCHEDULE – See Inside Front Cover Page
___________________________________
The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to the approval of legality by Anzel Galvan LLP, San Francisco, California, Bond Counsel to the City. Certain legal matters will be passed upon for the Authority by Anzel Galvan LLP, San Francisco, California, as Disclosure Counsel, for the City by Richards Watson Gershon, PC, Los Angeles, California, its City Attorney, for the Underwriter by Best Best & Krieger LLP, Los Angeles, California, as Underwriter’s Counsel, and for the Trustee by its counsel. It is anticipated that the Bonds in book-entry form will be available for delivery through the facilities of DTC, on or about [____], 2025. [RAYMOND JAMES LOGO]
Dated: __________, 2025

MATURITY SCHEDULE
$[PAR]*

PARAMOUNT PUBLIC FINANCING AUTHORITY
LOCAL MEASURE M TRANSPORTATION SALES TAX REVENUE BONDS, SERIES 2025 (Base CUSIP† ____)
Maturity Date
(May 1)
Principal
Amount Interest Rate Yield Price CUSIP†
% %
$_____________ ______% Term Bonds due May 1, 20__ Yield: ______% Price: ______ C CUSIP† __ $_____________ ______% Term Bonds due May 1, 20__ Yield: ______% Price: ______ C CUSIP† __ * Preliminary; subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2025 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the Authority, the City, the Underwriter or their agents or counsel assume any responsibility for the accuracy of such numbers.

I Insured Bonds.

C Priced to optional redemption date of May 1, 20__, at par.

CITY OF PARAMOUNT
City Council
Peggy Lemons, Mayor
Brenda Olmos, Vice Mayor
Isabel Aguayo, Council Member
Annette C. Delgadillo, Council Member
Vilma Cuellar Stallings, Council Member

PARAMOUNT PUBLIC FINANCING AUTHORITY
Board of Directors
Brenda Olmos, Chair
Annette C. Delgadillo, Vice Chair
Isabel Aguayo, Director
Peggy Lemons, Director
Vilma Cuellar Stallings, Director

CITY/AUTHORITY STAFF
John Moreno, City Manager
Grissel Chavez, Assistant City Manager
Lana Dich, Finance Director
Adriana Figueroa, Public Works Director
Michelle Tse, Assistant Director of Public Works
Heidi Luce, City Clerk

PROFESSIONAL SERVICES
City Attorney
Richards Watson Gershon, PC
Los Angeles, California
Bond Counsel and Disclosure Counsel
Anzel Galvan LLP
San Francisco, California
Municipal Advisor
Kosmont Financial Services, LLC
Manhattan Beach, California
Trustee
UMB Bank, National Association
[Costa Mesa, California]
No dealer, broker, salesperson, or other person has been authorized by the City, the Authority, or Raymond James & Associates, Inc. (the “Underwriter”), to give any information or to make any representations other than those contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing.

This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there be any sale of the Bonds, by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation, or sale.

This Official Statement is not to be construed to be a contract with the purchasers of the Bonds.

Statements contained in this Official Statement that involve estimates, forecasts, or matters of opinion, whether or not expressly described as such herein, are intended solely as such and are not to be construed as representations of fact.

The information set forth in this Official Statement has been obtained from the City, the Authority, and other sources that are believed to be reliable, but it is not guaranteed as to accuracy or completeness and it is not to be construed as a representation by the City or the Authority. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the City or the Authority since the date of this Official Statement. The City maintains an Internet website. However, the information contained on or within such website is not incorporated in this Official Statement by such reference.

The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS

HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.

THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND

DEALER BANKS AND BANKS ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN

THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. _____ (the “Insurer” or “[Insurer Abbrev.]”) makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, the Insurer has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the Insurer, supplied by the Insurer and presented under the heading “BOND INSURANCE” and APPENDIX H—“FORM OF MUNICIPAL BOND INSURANCE POLICY.”
i

TABLE OF CONTENTS
Page
INTRODUCTION .................................................................................................................................1 Authorization......................................................................................................................................1 Description of the Bonds....................................................................................................................1 Use of Bond Proceeds ........................................................................................................................1 Payment of Principal and Interest ......................................................................................................2 Redemption of Bonds.........................................................................................................................2 Security and Sources of Payment for the Bonds................................................................................2 Bond Insurance...................................................................................................................................4 Reserve Account.................................................................................................................................4 Special, Limited Obligation of the City .............................................................................................4 Continuing Disclosure........................................................................................................................5 Forward-Looking Statements.............................................................................................................5 ESTIMATED SOURCES AND USES OF BOND PROCEEDS..........................................................5 THE BONDS .........................................................................................................................................6 Authorization and Registration of Bonds...........................................................................................6 Payment of Bonds ..............................................................................................................................6 Redemption of Bonds.........................................................................................................................6 Selection of Bonds..............................................................................................................................7 Purchase in Lieu of Redemption ........................................................................................................8 Notice of Redemption or Purchase.....................................................................................................8 Partial Redemption or Purchase of the Bonds....................................................................................9 Effect of Redemption .........................................................................................................................9 Book-Entry Only System ...................................................................................................................9 Debt Service .....................................................................................................................................10 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS...................................................10 General .............................................................................................................................................10 Installment Sale Payments................................................................................................................11 Measure M Receipts.........................................................................................................................12 Measure M Receipts Fund................................................................................................................12 Revenue Fund...................................................................................................................................14 Deposit of Other Available Revenues..............................................................................................17 Additional Contracts.........................................................................................................................17 BOND INSURANCE ..........................................................................................................................17 [To come from Insurer]........................................................................................................................17 THE AUTHORITY..............................................................................................................................17 LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY....................18 THE CITY, THE COUNTY, AND THE PROJECTS.........................................................................19 The City............................................................................................................................................19 The County of Los Angeles..............................................................................................................20 The Projects......................................................................................................................................20 STATE SALES TAX...........................................................................................................................20 ii
MEASURE M REVENUES ................................................................................................................21 The Measure M Sales Tax................................................................................................................21 Measure M Revenues.......................................................................................................................21 MAXIMUM ANNUAL DEBT SERVICE COVERAGE ...................................................................26 RISK FACTORS..................................................................................................................................26 Installment Sale Payments Constitute Limited Obligations.............................................................26 Passive Revenue Source...................................................................................................................26 Impact of Changes in Population on City Share of Measure M Revenues......................................27 Effect of Internet Commerce............................................................................................................27 Allocation of Measure M Receipts to the City.................................................................................28 Eligibility of the Projects..................................................................................................................28 Non-Compliance with LACMTA Guidelines..................................................................................29 Additional Contracts.........................................................................................................................30 Potential Senior Lien on Measure M Revenues...............................................................................30 Limitations on Remedies; Bankruptcy.............................................................................................30 Constitutional Limitations on Appropriations..................................................................................31 State Legislature or Electorate May Change Items Subject to Measure M Sales Tax.....................31 Increases in Sales Tax Rate May Cause Declines in Measure M Revenues....................................31 No Liability of Authority to Owners................................................................................................32 Economic, Political, Social and Environmental Conditions ............................................................32 Geologic, Topographic and Climatic Conditions Affecting the City and County ...........................32 Cyber Security..................................................................................................................................36 No Validation Proceeding Undertaken.............................................................................................37 IRS Audit of Tax-Exempt Bond Issues............................................................................................38 Loss of Tax Exemption ....................................................................................................................38 Federal Funding Risks......................................................................................................................38 Secondary Market.............................................................................................................................38 Bond Insurance.................................................................................................................................39

CONSTITUTIONAL PROVISIONS AFFECTING CITY REVENUES AND
APPROPRIATIONS............................................................................................................................39 Article XIIIB of the California Constitution – Limitations on Appropriations ...............................39 Articles XIIIC and XIIID of the California Constitution – The Right to Vote on Taxes ................40 Future Initiatives...............................................................................................................................42 TAX MATTERS..................................................................................................................................42 RATINGS ............................................................................................................................................44 CONTINUING DISCLOSURE...........................................................................................................44 MUNICIPAL ADVISOR.....................................................................................................................45 UNDERWRITING...............................................................................................................................45 NO LITIGATION................................................................................................................................46 The Authority ...................................................................................................................................46 The City............................................................................................................................................46 CERTAIN LEGAL MATTERS...........................................................................................................46 AUDITED FINANCIAL STATEMENTS AND MEASURE M COMPLIANCE REPORTS ..........47 Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024.......................47 iii
Annual LACMTA Compliance Audits for Fiscal Year Ended June 30, 2023.................................47 MISCELLANEOUS ............................................................................................................................47 APPENDIX ASUMMARY OF PRINCIPAL LEGAL DOCUMENTS.................................... A-1

APPENDIX BTHE CITY OF PARAMOUNT AND THE COUNTY OF LOS
ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION................B-1 APPENDIX CPROPOSED FORM OF BOND COUNSEL OPINION .....................................C-1 APPENDIX DFORM OF CONTINUING DISCLOSURE CERTIFICATE............................. D-1

APPENDIX E CITY OF PARAMOUNT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024..........................E-1

APPENDIX F ANNUAL MEASURE M COMPLIANCE REPORTS FOR THE YEAR ENDED JUNE 30, 2023 ......................................................................................F-1 APPENDIX GBOOK ENTRY PROVISIONS .......................................................................... G-1 APPENDIX HFORM OF MUNICIPAL BOND INSURANCE POLICY ................................ H-1 1 OFFICIAL STATEMENT
$[PAR]*

PARAMOUNT PUBLIC FINANCING AUTHORITY

LOCAL MEASURE M TRANSPORTATION
SALES TAX REVENUE BONDS, SERIES 2025

INTRODUCTION
This Official Statement, which includes the front cover page, the inside front cover page, the table of contents and the appendices (the “Official Statement”), provides certain information concerning the issuance of the Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025 (the “Bonds”), in an aggregate principal amount of $[PAR].* Descriptions and summaries of various documents set forth in this Official Statement do not purport to be comprehensive or definitive, and reference is made to each such document for complete details of all of the terms and conditions therein. All statements in this Official Statement are qualified in their entirety by reference to the applicable documents.

This Introduction is subject in all respects to the more complete information contained elsewhere in this Official Statement, and the offering of the Bonds to potential investors is made only by means of the entire Official Statement. Capitalized terms used and not otherwise defined herein have the meanings ascribed to them in Appendix A.

Authorization
The Bonds are being issued by the Paramount Public Financing Authority (“Authority”) pursuant to: (i) a Trust Agreement, dated as of [September] 1, 2025 (the “Trust Agreement”), by and among the Authority, UMB Bank, National Association, as trustee, (the “Trustee”) and the City of Paramount, California (the “City”); (ii) resolutions adopted by the City Council of the City on May 27, 2025 and [August 12], 2025; and (iii) resolutions adopted by the governing board of the Authority on June 10, 2025 and [August 12], 2025 (such resolutions collectively, the “Resolutions”). See the captions “THE BONDS—Authorization and Registration of Bonds” and Appendix A.

Description of the Bonds
The Bonds will be dated the date of their initial delivery and will mature on the dates and in the principal amounts set forth on the inside front cover page of this Official Statement. The Bonds will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. See the captions “THE BONDS,” “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and “THE CITY, THE COUNTY, AND THE PROJECTS.”
Use of Bond Proceeds
The proceeds of the Bonds will be used: (i) to finance the design, acquisition, installation, and construction of certain street and roadway improvement projects located in the City (collectively, the * Preliminary; subject to change.
2 “Projects”) and/or certain Additional Projects as defined herein; (ii) to purchase a municipal bond insurance policy with respect to the Insured Bonds (as defined herein); (iii) to purchase a debt service reserve policy to satisfy the reserve requirement for the Bonds; and (iv) to pay the costs and expenses incurred in connection with the issuance of the Bonds. See the captions “ESTIMATED SOURCES AND USES OF BOND PROCEEDS,” “THE CITY, THE COUNTY, AND THE PROJECTS,” and “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.”
Payment of Principal and Interest
Interest on the Bonds is payable each May 1 and November 1, commencing November 1, 2025 (each, an “Interest Payment Date”), and is payable by check mailed on the date that such interest is due to the Owner at such Owner’s address as it appears on the registration books maintained by the Trustee. Principal on the Bonds is payable on May 1 of each year, commencing May 1, 2026 (each, a “Bond Payment Date”), through the facilities of DTC upon the maturity or earlier redemption thereof.

See the caption “THE BONDS.”
Redemption of Bonds
The Bonds are subject to redemption prior to maturity under certain circumstances. See the caption “THE BONDS—Redemption of Bonds.”
Security and Sources of Payment for the Bonds
The Bonds are being issued under the Trust Agreement and are payable from Revenues pledged thereunder. The Revenues consist primarily of (i) Installment Sale Payments (the “Installment Sale Payments”) to be made by the City to the Authority pursuant to an Installment Sale Agreement, dated as of [September] 1, 2025 (the “2025 Installment Sale Agreement”), by and between the Authority and the City, and (ii) other payments paid by the City and received by the Authority pursuant to the 2025 Installment Sale Agreement and all interest or other income from any investment of any money in any fund or account (other than the Rebate Fund) pursuant to the Trust Agreement (collectively, the “Revenues”). The Installment Sale Payments to be made by the City to the Authority constitute the purchase price for the Projects (defined under the caption “THE CITY, THE COUNTY, AND THE PROJECTS—The Projects”). The Authority will sell the Projects to the City pursuant to the 2025 Installment Sale Agreement.

Under the 2025 Installment Sale Agreement, the Installment Sale Payments are payable from and secured by a first lien on all Measure M Receipts (as defined herein). Measure M Receipts generally consist of the portion received by the City (herein defined as the Measure M Local Return) of a retail transactions and use tax on the gross receipts of retailers from the sale of tangible personal property sold in the County of Los Angeles (the “County”) and a use tax at the same rate upon the storage, use, or other consumption in the County of one-half of 0.5% for transportation purposes, known as the “Measure M Sales Tax.” The Measure M Sales Tax is levied by the Los Angeles County Metropolitan Transportation Authority (“LACMTA”) pursuant to Ordinance No. 16, the “The Los Angeles County Traffic Improvement Plan,” approved by LACMTA on July 23, 2016, including the Expenditure Plan attached thereto (as supplemented and amended, the “Measure M Ordinance”). The California Department of Tax and Fee Administration (“CDTFA”) administers the collection of the Measure M Sales Tax.
3 At an election held on November 8, 2016, more than two-thirds of the electors of the County voting on the issue approved the Measure M Sales Tax. Collection of the Measure M Sales Tax commenced on July 1, 2017, and is not limited in duration. The Measure M Sales Tax will increase to

1.0% on July 1, 2039, upon the expiration of a 0.5% sales tax imposed by LACMTA, beginning in 2009 pursuant to Ordinance No. 08-01 of LACMTA, known as the “Proposition R Sales Tax.” See “MEASURE M REVENUES.”
The Measure M Ordinance specifies that 17% of the Measure M Sales Tax, which includes a 1% Administration supplement (the “Measure M Local Return”), shall be allocated to incorporated cities within the County, including the City and to the County for the unincorporated areas each on a per capita basis. Pursuant to the Measure M Ordinance the Measure M Local Return will increase to 20% of the Measure M Sales Tax on July 1, 2039.

The Measure M Receipts will only be available to pay Installment Sale Payments to the extent such Installment Sale Payments are attributable to a project that is eligible for Measure M funding pursuant to the Measure M Ordinance, including the Expenditure Plan (the “Expenditure Plan”) attached thereto (each a “Measure M Project”). The City believes that the Projects constitute Measure M Projects.

The Expenditure Plan was originally approved by the voters as part of the Measure M Ordinance and may be amended from time to time by the LACMTA. See the captions “THE CITY, THE COUNTY, AND THE PROJECTS—The Projects” and “—Additional Projects Eligible for Measure M Receipts.” While the City currently expects to spend proceeds of the Bonds on the Projects, the City could choose to spend proceeds of the Bonds on any eligible Measure M Project.

LACMTA was established in 1993 and serves as the administrator of the Measure M Ordinance and the Expenditure Plan. The collection of the Measure M Sales Tax administered by the CDTFA.

The CDTFA then allocates the Measure M Sales Tax to LACMTA. Measure M Revenues as defined in the 2025 Installment Sale Agreement generally consist of said revenues. Only the portion of the Measure M Revenues that are allocated by LACMTA to the City (i.e. the City’s share of the Measure M Local Return) may be applied to make Installment Sale Payments.

In addition, under the Measure M Ordinance LACMTA is authorized to issue limited tax bonds and incur other obligations (collectively “LACMTA Measure M Bonds”) from time to time, payable from and secured by all or any portion of the Measure M Sales Tax collected by the CDTFA, less any refunds and any fees imposed by the CDTFA for the administration of the Measure M Ordinance, to finance any program or project in the Expenditure Plan. The maximum bonded indebtedness may not exceed the total amount of Measure M Sales Tax, less said refunds and fees. According to LACMTA, State law prevents LACMTA from borrowing against the Measure M Local Return and its debt policy does not permit LACMTA to issue LACMTA Measure M Bonds payable from the Measure M Local Return. In the event of a change in law, if LACMTA were to issue or incur LACMTA Measure Bonds secured by a pledge of and lien on all or a portion of Measure M Revenues (including the Measure M Local Return), the allocation of Measure M Revenues to the City would be subordinate to said pledge and lien. “RISK FACTORS – Potential Senior Lien on Measure M Revenues.” Installment Sale Payments are payable by the City to the Authority in an amount that is sufficient to pay, when due, the annual principal of and interest on the Bonds. See the captions “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” and “RISK FACTORS.” The Measure M Receipts are the only source of payment of the Installment Sale Payments. Neither the 4 general fund of the City nor any other moneys of the City or the Authority are available to pay or secure the Installment Sale Payments.

Additional Contracts. The City may enter into additional Contracts secured by Measure M Revenues on a parity with the 2025 Installment Sale Agreement, subject to certain conditions described under the caption “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS—Additional Contracts.”
Bond Insurance
Concurrently with the issuance of the Bonds, [Insurer] (the “Insurer” or “[Insurer Abbrev.]”) will issue its Municipal Bond Insurance Policy (the “Policy”) for the Bonds maturing on May 1 of the years 20__ through 20__, inclusive (collectively, the “Insured Bonds”). The Policy guarantees the scheduled payment of principal of and interest on the Insured Bonds when due as set forth in the form of the Policy included as APPENDIX H to this Official Statement. See “BOND INSURANCE” and APPENDIX H—“FORM OF MUNICIPAL BOND INSURANCE POLICY.”
Reserve Account
A Reserve Account for the Bonds is established pursuant to the Trust Agreement in an amount equal to the initial Reserve Account Requirement of $___________, which will be satisfied by the delivery of the Reserve Policy by the Insurer concurrently with the delivery of the Bonds. See the caption “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS—Revenue Fund— Reserve Account.” The City is not required to fund a reserve in connection with the incurrence of Additional Contracts in the future. See the caption “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS—Additional Contracts.”
Special, Limited Obligation of the City

ALL OBLIGATIONS OF THE AUTHORITY UNDER THE TRUST AGREEMENT AND

THE BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM

INSTALLMENT SALE PAYMENTS AND THE OTHER ASSETS PLEDGED UNDER THE TRUST AGREEMENT.

THE OBLIGATION OF THE CITY TO MAKE INSTALLMENT SALE PAYMENTS UNDER THE 2025 INSTALLMENT SALE AGREEMENT IS A SPECIAL OBLIGATION OF THE

CITY PAYABLE SOLELY FROM MEASURE M RECEIPTS, DOES NOT CONSTITUTE A DEBT

OF THE CITY, THE COUNTY, THE AUTHORITY, THE STATE OF CALIFORNIA (THE “STATE”) OR ANY POLITICAL SUBDIVISION OF THE STATE WITHIN THE MEANING OF

ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION AND

DOES NOT CONSTITUTE AN OBLIGATION FOR WHICH THE CITY, THE COUNTY, THE

STATE OR ANY POLITICAL SUBDIVISION OF THE STATE IS OBLIGATED TO LEVY OR

PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY, THE COUNTY, THE STATE

OR ANY POLITICAL SUBDIVISION OF THE STATE HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. THE AUTHORITY HAS NO TAXING POWER.
5 Continuing Disclosure
In connection with the issuance of the Bonds, the City will covenant in a continuing disclosure certificate (the “Continuing Disclosure Certificate”) executed for the benefit of Owners to provide certain financial information and operating data and notices of certain events. See the caption “CONTINUING DISCLOSURE” and Appendix D.

Forward-Looking Statements
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “intend,” “expect,” “propose,” “estimate,” “project,” “budget,” “anticipate” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements that are described in this Official Statement to be materially different from any future results, performance or achievements that are expressed or implied by such forward-looking statements. No updates or revisions to these forward-looking statements will be issued if or when the expectations, events, conditions, or circumstances on which such statements are based change. The forward-looking statements in this Official Statement are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such forward-looking statements.

READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON SUCH

FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF.

ESTIMATED SOURCES AND USES OF BOND PROCEEDS
The following table details the estimated sources and uses of Bond proceeds.

Estimated Sources
Principal Amount of Bonds $
Plus: Net Original Issue Premium
Less: Underwriter’s Discount
Total Sources $
Estimated Uses
Costs of Issuance (1) $
Deposit to the Acquisition Fund (2)
Total Uses $
(1) Includes fees and expenses of Bond Counsel, Disclosure Counsel, the Trustee, the Municipal Advisor, the rating agency, premiums for the Policy and Reserve Policy, costs of printing and other miscellaneous costs. (2) Amounts in the Acquisition Fund are anticipated to be applied to the acquisition and construction of the Projects. See the caption “THE CITY, THE COUNTY, AND THE PROJECTS.”
6 THE BONDS
Authorization and Registration of Bonds
The Bonds are being issued by the Authority pursuant to the Trust Agreement and the Resolutions. The Bonds will be dated the date of their initial delivery and will mature on the dates and in the principal amounts set forth on the inside front cover page of this Official Statement. The Bonds will be initially registered in the name of Cede & Co., as nominee for DTC, which will act as securities depository for the Bonds. See the captions “THE BONDS—Book-Entry Only System” and Appendix A.

Payment of Bonds
The Bonds will be issued in fully registered form without coupons and, when delivered, will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository for the Bonds. Individual purchases of Bonds may be made in book-entry form only, in the principal amount of $5,000 or integral multiples thereof for each maturity. Purchasers will not receive bonds representing their interest in the Bonds purchased. Payments of principal and interest on the Bonds will be made by the Trustee to DTC, which will in turn remit such principal and interest to its participants for subsequent dispersal to Beneficial Owners of the Bonds as described in this Official Statement. Interest on the Bonds will be payable from the Interest Payment Date next preceding the date of authentication thereof unless (i) a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event interest thereon shall be payable from such Interest Payment Date, (ii) a Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Closing Date, or (iii) interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has previously been paid or duly provided for. Interest will be paid in lawful money of the United States on each Interest Payment Date. Interest will be paid by check of the Trustee mailed by first-class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date. Notwithstanding the foregoing, interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date will, if and to the extent that amounts subsequently become available therefor, be paid on a payment date established by the Trustee to the Person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a special record date to be established by the Trustee for the payment of such defaulted interest, notice of which will be given to such Owner not less than ten days prior to such special record date. As used herein, “Record Date” means the 15th day of the month next preceding each Interest Payment Date, whether or not such day is a Business Day.

Redemption of Bonds*
Optional Redemption. The Bonds maturing on or after May 1, 20[__] will be subject to optional redemption prior to maturity, at the option of the Authority upon direction of the City, on or after May 1, 20[__], in whole or in part (by lot within any maturity), on any date, at a Redemption Price equal to the principal amount to be redeemed, plus accrued interest to the date fixed for redemption, without premium. The City will provide notice to the Authority and the Trustee at least * Preliminary; subject to change.
7 forty-five (45) days prior to the redemption date (or such lesser period of time acceptable to the Trustee in its sole discretion) specifying the principal amount and amounts within a maturity to be redeemed.

Mandatory Redemption. The Bonds will be subject to mandatory redemption prior to maturity, in whole or in part (by lot among Bonds with the same maturity in any manner which the Trustee in its sole discretion will deem appropriate), on any date, from amounts received upon the acceleration of the Installment Sale Payments, at a Redemption Price equal to the principal amount to be redeemed, plus accrued interest to the date fixed for redemption, without premium. The Bonds may be accelerated upon the occurrence of one or more Events of Default under the 2025 Installment Sale Agreement. See APPENDIX A—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” for a description of such Events of Default.

Mandatory Sinking Fund Redemption. The Bonds maturing on May 1, 20__, are subject to mandatory redemption on May 1 of each year commencing May 1, 20__, in part, from mandatory sinking fund payments, on each May 1 specified below, at a Redemption Price equal to the principal amount of the Bonds to be redeemed, without premium, plus accrued interest thereon to the date of redemption, in the aggregate respective principal amounts in the respective years as follows:

Mandatory Redemption
Date (May 1)
Principal
Amount
20__
20__
20__
20__
20__*
___________
*
Maturity date
If some but not all of the Bonds maturing on May 1, 20__ are redeemed as described in the subcaptions “– Optional Redemption” and “Mandatory Redemption” above, the principal amount of Bonds maturing on May 1, 20__ to be redeemed pursuant sinking fund payments on any subsequent May 1 shall be reduced, by $5,000 or an integral multiple thereof, as designated by the City in a Certificate of the City filed with the Trustee; provided, however, that the aggregate amount of such reductions shall not exceed the aggregate amount of Bonds maturing on May 1, 20__ redeemed pursuant to the optional redemption or mandatory redemption provisions of the Trust Agreement described in the subcaptions “– Optional Redemption” and “Mandatory Redemption” above.

Selection of Bonds
Whenever provision is made in the Trust Agreement for the redemption or purchase of less than all of the Bonds or any given portion thereof, the Trustee will, subject to the following sentence, select the Bonds to be redeemed or purchased, from all Bonds and Bonds within a maturity subject to redemption or purchase or such given portion thereof equal to a multiple of $5,000 or any integral multiple thereof not previously called for redemption or purchase. Upon notice of any redemption pursuant to the Trust Agreement or receipt of moneys resulting in a redemption pursuant to the Trust Agreement, the Trustee will request the Cash Flow Consultant to prepare a Cash Flow Report identifying the principal amount and maturities of the Bonds to be redeemed. The Trustee will 8 promptly notify the Authority in writing of any redemption or purchase of Bonds and of the Bonds or portions thereof so selected for redemption or purchase.

Purchase in Lieu of Redemption
In lieu of redemption of any Bonds, amounts on deposit in the Revenue Fund or in any sinking account therein may also be used and withdrawn by the Trustee at any time, upon the Request of the Authority, upon direction of the City, for the purchase of such Bonds at public or private sale as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as the Authority, upon direction of the City, may in its discretion determine, but not in excess of the principal amount thereof plus accrued interest to the purchase date.

The principal amount of any Bonds so purchased by the Trustee in any twelve-month period ending 60 days prior to any principal payment date in any year will be credited towards and will reduce the principal amount of such Term Bonds, if any, required to be redeemed on such principal payment date in such year.

Notice of Redemption or Purchase
Notice of redemption or purchase will be mailed by first-class mail by the Trustee, upon direction of the City, not less than 20 nor more than 60 days prior to the redemption or purchase date, to (i) the respective Owners of any Bonds designated for redemption or purchase at their addresses appearing on the registration books of the Trustee, and (ii) if the Bonds are no longer held by the Depository, to the Securities Depositories and the Municipal Securities Rulemaking Board through its Electronic Municipal Marketplace Access (“EMMA”) System. Notice of redemption or purchase will be given by Electronic Means, certified, registered, or overnight mail to the Securities Depositories and the Municipal Securities Rulemaking Board through its EMMA System. Each notice of redemption or purchase will state the date of such notice, the date of initial delivery of the Bonds, the redemption or purchase date, the Redemption Price or Bond Purchase Price, the place or places of redemption or purchase (including the name and appropriate address or addresses of the Trustee), the CUSIP number (if any) of the Bonds of each maturity date or dates, and, if less than all of the Bonds of any such maturity date, the distinctive certificate numbers of the Bonds with such maturity date, to be redeemed or purchased and, in the case of Bonds to be redeemed or purchased in part only, the respective portions of the principal amount thereof to be redeemed or purchased. Each such notice will also state that on said date there will become due and payable on each of said Bonds the Redemption Price or Bond Purchase Price represented thereby or of said specified portion of the principal amount thereof in the case of a Bond to be redeemed or purchased in part only, together with interest accrued with respect thereto to the redemption or purchase date, and that from and after such redemption or purchase date, interest thereon will cease to accrue, and will require that such Bonds be then surrendered at the address or addresses of the Trustee specified in the redemption or purchase notice.

If any of the Bonds are redeemed pursuant to an advance refunding, notice of such advance refunding and redemption or purchase shall be given in the same manner as above provided, and also within the same time period with respect to the actual redemption or purchase date.

Notice of redemption or purchase of Bonds will be given by the Trustee, upon direction of the City, at the expense of the Authority. Conditional notice of optional redemption may be given at the direction of the Authority and shall be given if funds sufficient to redeem the Bonds are not then on deposit with the Trustee. If at the time of mailing of notice, funds are not then on deposit with the Trustee, such notice will state that it is conditional upon the deposit of the funds not later than the 9 opening of business on the date of redemption or purchase of the Bonds, and such notice will be of no effect unless such moneys are so deposited.

Failure by the Trustee to give notice pursuant to the Trust Agreement to the Municipal Securities Rulemaking Board through its EMMA System or Securities Depositories will not affect the sufficiency of the proceedings for redemption or purchase. Failure by the Trustee to mail notice of redemption or purchase pursuant to the Trust Agreement to any one or more of the respective Owners of any Bonds designated for redemption or purchase will not affect the sufficiency of the proceedings for redemption or purchase with respect to the Owner or Owners to whom such notice was mailed.

Partial Redemption or Purchase of the Bonds
Upon surrender of any Bond to be redeemed or purchased in part only, the Authority will execute and the Trustee will authenticate and deliver to Owner thereof, at the expense of the Authority, a new Bond or Bonds with the same maturity in Authorized Denominations in an aggregate principal amount equal to the unredeemed portion of the Bonds surrendered.

Effect of Redemption
Notice of redemption having been duly given as aforesaid, and moneys for payment of the Redemption Price of, together with interest accrued to the redemption date with respect to, the Bonds (or portions thereof) so called for redemption being held by the Trustee, on the redemption date designated in such notice, the Bonds (or portions thereof) so called for redemption will become due and payable at the Redemption Price specified in such notice and interest accrued thereon to the redemption date, interest on the Bonds so called for redemption will cease to accrue, said Bonds (or portions thereof) will cease to be entitled to any benefit or security under the Trust Agreement, and the Owners of said Bonds will have no rights in respect thereof except to receive payment of said Redemption Price and accrued interest.

All Bonds redeemed pursuant to the provisions of the Trust Agreement will be cancelled upon surrender thereof by the Trustee. All Bonds purchased pursuant to the Trust Agreement will be registered in the name of the Authority and delivered to, or as directed in writing by, the Authority.

Book-Entry Only System
DTC will act as securities depository for the Bonds. The Bonds will be issued as fullyregistered bonds registered in the name of Cede & Co. (DTC’s partnership nominee). One fullyregistered Bond will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See APPENDIX G—“BOOK ENTRY PROVISIONS.”
The Authority, the City and the Trustee cannot and do not give any assurances that DTC, DTC Participants or others will distribute payments of principal of or interest on the Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement or the Trust Agreement. The Authority, the City and the Trustee are not responsible or liable for the failure of DTC or any DTC Participant to make any payment or give any notice to a Beneficial Owner with respect to the Bonds or an error or delay relating thereto. 10 Debt Service
The table below presents the annual debt service with respect to the Bonds, assuming that there are no optional redemptions or mandatory redemption upon acceleration of the 2025 Installment Sale Agreement, for the year ending on May 1 in the years shown below:

Debt Service Schedule
Date
(May 1) Principal Interest Total
Source: Underwriter.

SECURITY AND SOURCES OF PAYMENT FOR THE BONDS
General
The Bonds are payable from and secured by a pledge of and lien on the Revenues and a security interest in all right, title and interest of any other amounts held by the Trustee in any fund or account established in the Trust Agreement (other than amounts on deposit in the Acquisition Fund and the Rebate Fund). Revenues, as defined in the Trust Agreement, means all Installment Sale Payments and other payments paid by the City and received by the Authority pursuant to the Agreement and all 11 interest or other income from any investment of any money in any fund or account (other than the Rebate Fund) pursuant to the Trust Agreement. See APPENDIX A—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” herein. The Authority will assign to the Trustee, for the benefit of the Owners, all of the Authority’s right, title and interest in and to the 2025 Installment Sale Agreement (excepting its right to indemnification thereunder), including the right to receive Installment Sale Payments from the City.

The Bonds are limited obligations of the Authority payable solely from and secured by a pledge of Revenues and certain funds and accounts held under the Trust Agreement. The Authority has no taxing power.

Installment Sale Payments
Pursuant to the 2025 Installment Sale Agreement, the City is required to pay the Authority or the Trustee, as appropriate, the Purchase Price (defined in the 2025 Installment Sale Agreement) for the Projects, without offset or deduction of any kind, by paying (i) the principal installments of the 2025 Installment Sale Payments, which principal installments shall be due annually each on its payment date, (ii) the interest installments of the 2025 Installment Sale Payments, which interest installments shall be due semiannually on each 2025 Installment Sale Payment Date and (iii) the Administration Fee which shall be due semiannually on each 2025 Installment Sale Payment Date.

Each 2025 Installment Sale Payment and the Administration Fee shall be payable on and shall be required to be deposited with the Trustee on or before the fifteenth day of the calendar month immediately preceding May 1 and November 1 of each year, commencing November 1, 2025.

The obligation of the City to pay the Purchase Price by paying the 2025 Installment Sale Payments and the Administration Fee is, subject to the 2025 Installment Sale Agreement, absolute and unconditional, and until such time as the 2025 Installment Sale Payments shall have been paid in full (or provision for the payment thereof shall have been made pursuant to the 2025 Installment Sale Agreement), the City will not discontinue or suspend any 2025 Installment Sale Payments or Administration Fee required to be paid by it when due, whether or not the Project or any part thereof is complete, or its use is suspended, interfered with, reduced, curtailed or terminated in whole or in part, and such payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party to any agreement for any cause whatsoever. See the captions “—Measure M Receipts” and “—Measure M Receipts Fund.” The Trust Agreement provides that the Installment Sale Payments received by the Trustee will be deposited in the Revenue Fund maintained by the Trustee under the Trust Agreement and applied to pay the principal and interest on the Bonds. See “—Revenue Fund” below.

The obligation of the City to make Installment Sale Payments under the 2025 Installment Sale Agreement is a special obligation of the City payable solely from Measure M Receipts, does not constitute a debt of the City, the Authority, the State or any political subdivision of the State within the meaning of any constitutional or statutory debt limitation or restriction and does not constitute an obligation for which the City, the State or any political subdivision of the State is obligated to levy or pledge any form of taxation or for which the City, the State or any political subdivision of the State has levied or pledged any form of taxation. The Authority has no taxing power.

The City covenants and agrees in the 2025 Installment Sale Agreement to apply Measure M Revenues as received on a monthly basis to the payment of Installment Sale Payments prior to any 12 other expenditure of such funds, subject to the release for expenditure as provided in the 2025 Installment Sale Agreement and only in an amount not exceeding the Measure M Receipts.

Measure M Receipts
The term “Measure M Ordinance” is defined in the 2025 Installment Sale Agreement to mean Ordinance No. 16-01, the “Los Angeles County Traffic Improvement Plan,” approved by LACMTA on June 23, 2016 and approved by at least two-thirds of electors voting on such proposition in the November 8, 2016 election. The Measure M Ordinance includes the Expenditure Plan and Subregional Maps. The Expenditure Plan describes the Measure M Projects eligible for funding using Measure M Revenues by subregional planning areas within the County. The subregional planning areas are delineated in the Subregional Maps. The Measure M Ordinance, the Expenditure Plan and the Subregional Maps attached there to, may be amended from time to time by approval of two-thirds of the LACMTA board of directors, following a noticed public hearing.

The term “Measure M Revenues” is defined in the 2025 Installment Sale Agreement to mean revenues of LACMTA pursuant to the Measure M Ordinance derived from a retail transactions and use tax imposed in the County of Los Angeles pursuant to Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code of the State of California and Division 12 (commencing with Section 130000) of the Public Utilities Code of the State of California, as now in effect and as it may from time to time hereafter be amended or supplemented.

The term “Measure M Receipts” is defined in the 2025 Installment Sale Agreement to mean Measure M Revenues allocated by LACMTA to the City as the City’s share of local program funding pursuant to Section 7 of the Measure M Ordinance. See the caption “MEASURE M REVENUES— Measure M Revenues—Collection and Allocation of Measure M Revenues” for a discussion of the process under which Measure M Revenues are distributed by the CDTFA to the County AuditorController on behalf of LACMTA, and then by the County Auditor-Controller on behalf of LACMTA to the City and other local jurisdictions.

The Measure M Receipts will only be available to pay Installment Sale Payments to the extent such Installment Sale Payments are attributable to a Measure M Project. The term “Measure M Project” is defined in the 2025 Installment Sale Agreement as a transportation project for which Measure M Receipts may be expended pursuant to the Measure M Ordinance as originally adopted or amended, including the related Administration Fee. The City believes that all of the Projects constitute Measure M Projects. By letter dated [_____, 2025], LACMTA approved the Projects for funding with Measure M Receipts. See the captions “THE CITY, THE COUNTY, AND THE PROJECTS—The Projects.”
Measure M Receipts Fund
The City has established in accordance with the Measure M Ordinance, the “Measure M Special Revenue Fund” (referred to as the “Measure M Receipts Fund”), as its separate transportation improvement account as required by the Measure M Ordinance, which fund the City agrees and covenants in the 2025 Installment Sale Agreement to maintain in accordance with the Measure M Ordinance and the 2025 Installment Sale Agreement so long as any Installment Sale Payments remain unpaid, and all money on deposit therein shall be applied and used only as provided in the 2025 Installment Sale Agreement including, without limitation, to pay the purchase price for the Projects by paying the Installment Sale Payments and the Administration Fee. The City agrees and covenants in 13 the 2025 Installment Sale Agreement that all Measure M Revenues received by it shall be deposited when and as received in the Measure M Receipts Fund and held therein in trust and applied in accordance with the 2025 Installment Sale Agreement for the benefit of the Trustee (as assignee of the rights of the Authority under the 2025 Installment Sale Agreement) and the Bond Owners, and for the benefit of the owners of any Contracts.

Measure M Receipts on deposit in the Measure M Receipts Fund will be transferred by the City to the Trustee as Installment Sale Payments and related deposits at the following times in the following order of priority, and all moneys in each of such funds shall be held in trust and shall be applied, used and withdrawn only for the purposes authorized in the 2025 Installment Sale Agreement and the Trust Agreement:
(a) Interest and Principal Account Deposits. On or before the 15th day preceding each Interest Payment Date, the City will, from the Measure M Receipts in the Measure M Receipts Fund, transfer to the Trustee for deposit in the Interest Account within the Revenue Fund established under the Trust Agreement, a sum equal to the interest becoming due and payable under the 2025 Installment Sale Agreement on the next succeeding Interest Payment Date, except that no such deposit need be made if the Trustee then holds money in the Interest Account equal to the amount of interest becoming due and payable thereunder on the next succeeding Interest Payment Date; and on or before the 15th day preceding each Interest Payment Date, the City will, from the Measure M Receipts in the Measure M Receipts Fund, transfer to the Trustee for deposit in the Principal Account within the Revenue Fund established under the Trust Agreement, a sum equal to the principal becoming due and payable under the 2025 Installment Sale Agreement on the next succeeding Interest Payment Date, except that no such deposit need be made if the Trustee then holds money in the Principal Account equal to the amount of Principal becoming due and payable under the 2025 Installment Sale Agreement on the next succeeding Interest Payment Date; and all money on deposit in the Interest Account and the Principal Account will be used to make and satisfy the Installment Sale Payments due on each date and such payments will be deposited by the Trustee to the Interest Account or the Principal Account, as the case may be, as defined in, created under and in accordance with the terms of, the Trust Agreement. The City covenants in the 2025 Installment Sale Agreement not to request LACMTA to issue obligations on its behalf payable from Measure M Revenues as provided in the Measure M Ordinance. The City will also, from the moneys in the Measure M Receipts Fund, transfer to the applicable trustee for deposit in the applicable payment fund, without preference or priority, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, any other Debt Service in accordance with the provisions of the Contract, bond, resolution or indenture relating thereto. (b) Reserve Account Deposit. On or before the 15th day of each month, the City will, from remaining moneys in the Measure M Receipts Fund, thereafter, without preference or priority, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, transfer to (a) the Trustee for deposit in the Reserve Account that sum, if any, necessary to restore the Reserve Account to an amount equal to the Reserve Account Requirement, all in accordance with and subject to the terms and conditions of the Trust Agreement, and (b) the applicable trustee for deposit to reserve funds or accounts established in connection with Contracts an amount that is equal to the amount required to be deposited therein.
(c) Administration Account Deposit. On or before the 15th day preceding each Interest Payment Date, the City will, from the remaining Measure M Receipts on deposit in the Measure M Receipts Fund, transfer to the Trustee for deposit in the Administration Account a sum equal to the Administration Fee, as determined in a Request of the City to be provided to the Trustee, becoming 14 due and payable under the 2025 Installment Sale Agreement on the next Interest Payment Date, and all money on deposit in the Administration Account will be used to pay the Administration Fee due on such Interest Payment Date, in accordance with the terms of the Trust Agreement.

At any time that Measure M Receipts remain in the Measure M Receipts Fund after providing (or otherwise reserving) for (i) all deposits required by subsections (a) for that bond year, (b), and (c) above, (ii) debt service on any Contracts for that bond year, and except as may be provided to the contrary in any Contracts, and (iii) amounts then owed to the Insurer in connection with any draw on the Reserve Policy, and so long as the City is not in default hereunder or thereunder, then any amount remaining on deposit in the Measure M Receipts Fund shall be released from the pledge and lien hereunder and shall be applied by the City in accordance with the Measure M Ordinance.

Revenue Fund
Pledge of Revenues; Assignment to Trustee. Subject only to the provisions of the Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth therein, the Authority in the Trust Agreement pledges and grants a lien on the Revenues and a security interest in all right, title and interest of any other amounts held by the Trustee in any fund or account established under the Trust Agreement (other than amounts on deposit in the Acquisition Fund and the Rebate Fund) whether then or thereafter arising as security for the payment of the principal of, premium, if any, and interest on the Bonds in accordance with their terms, the provisions of the Trust Agreement and the Act. Such pledge and grant constitutes a first lien on such assets and is valid and binding from the date of the Trust Agreement for the benefit of the Owners of the Bonds and successors thereto. Under the Trust Agreement, the Authority transfers, conveys and assigns to the Trustee, for the benefit of the Owners, all of the Authority’s right, title and interest in and to the 2025 Installment Sale Agreement (excepting its right to indemnification thereunder), including the right to receive Installment Sale Payments from the City. The Trustee is entitled to and will receive all of the Revenues, and any Revenues collected or received by the Authority will be deemed to be held, and to have been collected or received, by the Authority as agent of the Trustee and will forthwith be paid by the Authority to the Trustee.

Revenue Fund. In order to carry out and effectuate the pledge, lien, and security interest described in the Trust Agreement, Authority agrees and covenants in the Trust Agreement that all Revenues, when and as received, will be received by the Authority in trust under the Trust Agreement for the benefit of the Owners and will be deposited when and as received by the Authority in the “Revenue Fund” which fund the Trustee will establish and maintain in trust in the name of the Trustee as a separate fund so long as any Bonds are Outstanding under the Trust Agreement. All Revenues will be held in trust in the Revenue Fund. All Revenues, whether received by the Authority in trust or deposited with the Trustee as provided in the Trust Agreement, will nevertheless be allocated, applied, and disbursed solely for the purposes and uses set forth in the Trust Agreement, and will be accounted for separately and apart from all other accounts, funds, money or other resources of the Authority, and the Authority will have no beneficial right or interest in any of the Revenues except only as provided in the Trust Agreement.

The following funds and accounts will be established within the Revenue Fund: (i) the Interest Account; (ii) the Principal Account; (iii) the Reserve Account; (iv) the Administration Account; and (v) the Surplus Account. All money in each of such funds and accounts will be held in trust by the Trustee and will be applied, used and withdrawn only for the purposes authorized in the Trust Agreement.
15 Pursuant to the Trust Agreement, all money in the Revenue Fund will be set aside by the Trustee in the following respective special accounts within the Revenue Fund in the following order of priority:

Interest Account. On or before the Business Day immediately preceding each Interest Payment Date, the Trustee will transfer from amounts on deposit in the Revenue Fund to the Interest Account that amount of money which is equal to the amount of interest becoming due and payable with respect to the Bonds on the next succeeding Interest Payment Date. No such deposit need be made if the amount contained in the Interest Account is at least equal to the aggregate amount of interest becoming due and payable on the Bonds on such Interest Payment Date. All money in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it will become due and payable (including accrued interest on any Bonds purchased or redeemed prior to the payment dates thereof).

Principal Account. On or before the Business Day immediately preceding each May 1 on which principal of the Bonds is due and payable, the Trustee will transfer from amounts on deposit in the Revenue Fund to the Principal Account an amount of money equal to the amount of principal becoming due and payable on the Bonds on the next succeeding principal payment date. No such deposit need be made if the amount contained in the Principal Account is at least equal to the aggregate amount of principal becoming due and payable on the Bonds on such principal payment date. All money in the Principal Account will be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds as it will become due and payable, whether on their respective principal payment or redemption dates, except that any money in any sinking fund account will be used and withdrawn by the Trustee only to purchase or to redeem or to pay Term Bonds for which such sinking fund account was created.

Reserve Account. The Trustee will transfer from amounts deposited in the Revenue Fund to the Reserve Account that amount of money (or other authorized deposit of security) which will be required to maintain the Reserve Account in the full amount of the Reserve Account Requirement.

The Trust Agreement defines “Reserve Account Requirement” to mean, as of any date of calculation, an amount equal to the least of (i) 10% of the initial stated principal amount (within the meaning of Section 148 of the Code) of the Bonds; (ii) 125% of the average annual Debt Service (as defined in the 2025 Installment Sale Agreement), on the Bonds, or (iii) the Maximum Annual Debt Service (as defined in the 2025 Installment Sale Agreement). See Appendix A. No deposit need be made in the Reserve Account so long as there will be on deposit therein a sum equal to the Reserve Account Requirement. All money in the Reserve Account (including all amounts which may be obtained from any insurance policy on deposit in the Reserve Account) will be used and withdrawn by the Trustee solely for the purpose of replenishing the Interest Account or the Principal Account, in that order, in the event of any deficiency at any time in either of such accounts, but solely for the purpose of paying the interest or principal payable in connection with the 2025 Installment Sale Agreement, except that any cash amounts in the Reserve Account in excess of the amount required to be on deposit therein will be withdrawn from the Reserve Account on each Interest Payment Date and deposited in the Interest Account.

In lieu of making a Reserve Account Requirement deposit or in replacement of moneys then on deposit in the Reserve Account (which will be transferred by the Trustee to the City upon delivery of an insurance policy satisfying the requirements stated below), the City may also deliver to the Trustee an insurance policy (a “Qualified Reserve Instrument”) securing an amount, together with moneys or Permitted Investments on deposit in the Reserve Account, no less than the Reserve Account 16 Requirement, issued by an insurance company licensed to issue insurance policies guaranteeing the timely payment of the principal of and interest on the Bonds and whose unsecured debt obligations (or for which obligations secured by such insurance company’s insurance policies) are rated in one of the two highest rating categories (without respect to any modifier) of the Rating Agency. Notwithstanding anything to the contrary set forth in the Trust Agreement, amounts on deposit in the Reserve Account will be applied solely to the payment of debt service due on the Bonds.

If and to the extent that the Reserve Account has been funded with a combination of cash (or Permitted Investments) and a Qualified Reserve Instrument, then all such cash (or Permitted Investments) will be completely used before any demand is made on such Qualified Reserve Instrument, and replenishment of the Qualified Reserve Instrument will be made prior to any replenishment of any cash (or Permitted Investments). If the Reserve Account is funded, in whole or in part, with more than one Qualified Reserve Instrument, then any draws made against such Qualified Reserve Instrument will be made pro rata. The prior written consent of the Insurer will be a condition precedent to the deposit of any credit instrument provided in lieu of a cash deposit into the Reserve Account, if any. Amounts on deposit in the Reserve Account will be applied solely to the payment of debt service due on the Bonds.

The Reserve Account Requirement for the Bonds will be satisfied by the delivery of the Reserve Policy by the Insurer on the Closing Date with respect to the Bonds with a stated policy amount equal to the Reserve Account Requirement. Neither the City nor the Authority will have any obligation to replace the Reserve Policy or other Qualified Reserve Instrument or to fund the Reserve Account with cash if, at any time that the Bonds are Outstanding, any rating assigned to the Insurer is downgraded, suspended or withdrawn or amounts are not available under the Reserve Policy or other Qualified Reserve Instrument, other than in connection with a draw on the Reserve Policy or other Qualified Reserve Instrument. See the caption “BOND INSURANCE.” Administration Account. On or before the Business Day immediately preceding each May 1 on which principal of the Bonds is due and payable, the Trustee will transfer from amounts deposited in the Revenue Fund, and deposit into the Administration Account, an amount equal to the Administration Fee. All money in the Administration Account will be used and withdrawn by the Trustee solely for the purpose of paying the fees of the Trustee and, upon the written direction of the City, the fees of the Rebate Analyst and any other similar fee payable in connection with the administration of the 2025 Installment Sale Agreement and the Trust Agreement, payable by the City, in accordance with the 2025 Installment Sale Agreement. Upon the Request of the City provided to the Trustee on or after any Interest Payment Date, any cash amounts in the Administration Account in excess of the amount required to be on deposit therein will be withdrawn from the Administration Account and deposited in the Interest Account.

The term “Administration Fee” is defined in the Trust Agreement to mean an amount equal to the sum of the Trustee’s fees, the Rebate Analyst Fee and any other similar fee payable in connection with the administration of the 2025 Installment Sale Agreement and the Trust Agreement, payable by the City, in accordance with the 2025 Installment Sale Agreement, on the 15th day of the month preceding each May 1 on which principal of the Bonds is due and payable.

Surplus Account. On the Business Day immediately following each Interest Payment Date, the Trustee will deposit in the Surplus Account all money remaining in the Revenue Fund after the deposits, required by the Trust Agreement, have been made. On June 30 of each year, beginning on June 30, 2026, the Trustee will disburse the money in the Surplus Account to the City to the extent the 17 deposit of moneys, together with investment earnings thereon, if any, exceeded the deposits required by the Trust Agreement.

Deposit of Other Available Revenues
The City may satisfy its obligation to deposit Installment Sale Payments with the Trustee by depositing Other Available Revenues with the Trustee and, if and when so deposited, such Other Available Revenues will be irrevocably pledged to the payment of Installment Sale Payments. Unless and until deposited with the Trustee, such Other Available Revenues are not pledged to the payment of Installment Sale Payments.

The term “Other Available Revenues” is defined in the 2025 Installment Sale Agreement to mean revenues, other than Measure M Receipts, legally available to the City to make Installment Sale Payments, if any.

Additional Contracts
So long as the City is not in default under the 2025 Installment Sale Agreement, the City may at any time execute any Contract or amend any Contract, the Installment Sale Payments under and pursuant to which, as the case may be, are payable from, and secured by a pledge and lien on, the Measure M Receipts on a parity with the payment by the City of the Installment Sale Payments as provided in the 2025 Installment Sale Agreement; provided, that the lesser of (i) audited Measure M Receipts for the Fiscal Year next preceding the date of the adoption by the City Council of the City of the resolution authorizing the execution of such Contract and (ii) LACMTA’s estimates of the City’s share of Measure M Revenues for the current Fiscal Year, shall have produced a sum equal to at least 150% of the Maximum Annual Debt Service on all Contracts outstanding after the execution of such amendment or Contract as calculated in writing by the City and a third-party financial consultant to the City. Notwithstanding the foregoing provisions, there shall be no limitations on the ability of the City to execute any Contract at any time to refund any outstanding Contract where such refunding results in a reduction in annual payment on such Contract.

As used herein, “Contracts” means the Installment Sale Agreement and all other installment sale contracts, capital leases or similar obligations of the City authorized and executed by the City under and pursuant to applicable law, the interest and principal and prepayment premium, if any, payments under and pursuant to which are payable from Measure M Receipts on a parity with the payment of the Installment Sale Payments.

BOND INSURANCE
[To come from Insurer]

THE AUTHORITY
The Authority was formed pursuant to the provisions of Articles 1 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code and a Joint Exercise of Powers Agreement, dated as of July 16, 1991, by and between the City and the Paramount Redevelopment Agency (the “Former Agency”). The Former Agency, as of February 1, 2012, has been dissolved and the Successor Agency for the Paramount Redevelopment Agency has become the successor agency of the Former 18 Agency pursuant to Part 1.85 of Division 24 of the California Health and Safety Code. Per California Health and Safety Code Section 34178(b)(3), the Joint Powers Agreement remains in effect.

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY LACMTA was established in 1993 pursuant to the provisions of Section 130050.2 et seq. of the California Public Utilities Code. LACMTA is the consolidated successor entity to both the Southern California Rapid Transit District (the “District”) and the Los Angeles County Transportation Commission (the “Commission”). As the consolidated successor entity, LACMTA succeeded to all powers, duties, rights, obligations, liabilities, indebtedness, bonded or otherwise, immunities and exemptions of the District and the Commission, including the Commission’s responsibility for planning, engineering and constructing a countywide rail transit system.

LACMTA is governed by a 14-member Board of Directors (the “LACMTA Board”). The LACMTA Board is composed of the five members of the County of Los Angeles Board of Supervisors, the Mayor of the City of Los Angeles, two public members, and one member of the City Council of the City of Los Angeles appointed by the Mayor of the City of Los Angeles, four members who are either a mayor or a member of a city council of a city in the County (other than the City of Los Angeles) and who have been appointed by the Los Angeles County City Selection Committee, and a nonvoting member appointed by the Governor.

The LACMTA Board exclusively exercises and discharges the following powers and responsibilities: (i) establishment of overall goals and objectives; (ii) adoption of the aggregate budget for all of its organizational units; (iii) designation of additional municipal bus operators under criteria enumerated in the California Public Utilities Code; (iv) approval of all final rail corridor selections; (v) final approval of labor contracts covering employees of LACMTA and its organizational units; (vi) establishment of LACMTA’s organizational structure; (vii) conducting hearings and setting fares for the operating organizational units; (viii) approval of transportation zones; (ix) approval of any debt instrument with a maturity date exceeding the end of the fiscal year in which it is issued; (x) approval of benefit assessment districts and assessment rates; and (xi) approval of contracts for construction and transit equipment acquisition which exceed $5,000,000 and making findings in connection with certain procurement decisions.

LACMTA is authorized, subject to approval by the electorate of the County, to adopt a retail transactions and use tax ordinance, with the revenues of such tax to be used for transit purposes.

LACMTA adopted the Measure M Ordinance pursuant to said authority. The Measure M Ordinance was approved by the voters in the County on November 8, 2016.

LACMTA HAS NOT ENTERED INTO ANY CONTRACTUAL COMMITMENT WITH

THE CITY, THE AUTHORITY, THE TRUSTEE OR THE OWNERS OF THE BONDS TO

PROVIDE ANY INFORMATION, INCLUDING INFORMATION REGARDING LACMTA OR

MEASURE M TO THE CITY, THE AUTHORITY, THE TRUSTEE OR THE OWNERS OF THE BONDS. LACMTA HAS NOT REVIEWED THIS OFFICIAL STATEMENT AND HAS NOT

MADE REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR

COMPLETENESS OF THE INFORMATION CONTAINED OR INCORPORATED HEREIN, INCLUDING INFORMATION WITH REGARD TO LACMTA OR MEASURE M. LACMTA IS

NOT CONTRACTUALLY OBLIGATED, AND HAS NOT UNDERTAKEN, TO UPDATE SUCH

INFORMATION FOR THE BENEFIT OF THE CITY, THE AUTHORITY, OR THE OWNERS OF THE BONDS UNDER RULE 15c2-12.
19 THE CITY, THE COUNTY, AND THE PROJECTS
The City
The City encompasses approximately 5 square miles and is located approximately 15 miles southeast of downtown Los Angeles. The area in which the City is situated was first settled in the early 1800s as part of a Spanish land grant. Known in the 1930s as the communities of Hynes and Clearwater, the area was a nationally prominent center of the dairy and hay industries. HynesClearwater joined together under the common name of Paramount in 1948, grew steadily, and in 1957 incorporated as a city. As of January 1, 2025, the City had an estimated population of approximately 53,400.

The City operates as a general law city under the council-manager form of municipal government. The City Council consists of five residents, elected at large. Each year, the elected Council Members elect one member to serve as Mayor and another member to serve as Vice Mayor. Each member of the City Council serves a four-year term of office.

The City provides municipal services through a combination of in-house staff and contracts for services that supplement staff, such as Los Angeles County Sheriff’s Department for its law enforcement services, the Los Angeles County Fire Department for its fire services, the Southeast Area Animal Control Authority for its animal control services, and HdL Companies for its business licensing services. The City provides a broad range of municipal services and employs approximately 160 fulltime and part-time employees.

The following table presents estimated population statistics for the City, the County and the State for the ten most recent calendar years available.

CITY OF PARATMOUNT, COUNTY OF LOS ANGELES AND

STATE OF CALIFORNIA
POPULATION STATISTICS(1)
Year City of Paramount
County of
Los Angeles State of California
2016 54,453 10,087,542 39,036,749
2017 54,252 10,107,312 39,273,915
2018 54,062 10,107,841 39,429,439
2019 53,780 10,067,476 39,503,656
2020 53,397 10,029,036 39,535,623
2021 53,255 9,966,353 39,369,530
2022 52,728 9,870,212 39,179,680
2023 52,502 9,834,286 39,228,444
2024 52,415 9,848,643 39,420,663
2025 52,371 9,876,811 39,529,101
(1) Estimated as of January 1 with 2020 Census Benchmark.

Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2010-2020 and 2021-2025, with 2020 Census Benchmark. Sacramento, California, May 2025. 20 Certain economic and other demographic information regarding the City is included in Appendix B. See APPENDIX B – “THE CITY OF PARAMOUNT AND THE COUNTY OF LOS ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION.” See also the caption “MEASURE M REVENUES,” for discussions of the portions of Measure M Revenues that have historically been allocated to the City by LACMTA.

The County of Los Angeles
The County is located in the southern coastal portion of the State and covers 4,083 square miles. The County was established under an act of the State Legislature on February 18, 1850. It is the most populous county in the nation and, in terms of population, is larger than 40 states. The County is the most populous county in the United States with a total estimated population of 9,876,811, as of January 1, 2025. It is estimated that over one million people live in the unincorporated areas of the County. .

The economy of the County is diversified and includes manufacturing, technology, world trade, financial services, motion picture and television production, agriculture and tourism.

For demographic information regarding City and the County, see APPENDIX B – “THE CITY

OF PARAMOUNT AND THE COUNTY OF LOS ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION.”
The Projects
The net proceeds of the proceeds of the Bonds will be used by the City to pay for the design, acquisition, installation, and construction of certain street and roadway improvement projects located in the City (collectively, the “Projects”). The Projects are median related improvements, which include landscaping, irrigation, and construction of new hardscape. The estimated cost is approximately $10 million.

The City believes that each of the Projects constitutes a Measure M Project, the costs of which may be paid by Measure M Receipts. By letter dated [_____, 20__], LACMTA approved the Projects for funding with Measure M Receipts.

STATE SALES TAX
In general, the State sales tax (“State Sales Tax”) applies to the gross receipts of retailers from the sale of tangible personal property. The State use tax is imposed on the storage, use, or other consumption in the State of property purchased from a retailer for such storage, use, or other consumption. Because the use tax does not apply to cases where the sale of the property is subject to the sales tax, the application of the use tax generally is to purchases made outside of the State for use within the State. The current State Sales Tax rate is 7.25%.

Many categories of transactions are exempt from the State Sales Tax. The most important of these exemptions are sales of food products for home consumption, prescription medicine, edible livestock and their feed, seed and fertilizer used in raising food for human consumption, and gas, electricity, and water when delivered to consumers through mains, lines and pipes. In addition, Occasional Sales (i.e., sales of property not held or used by a seller in the course of activities for which he or she is required to hold a seller’s permit) are generally exempt from the State Sales Tax; however, 21 the Occasional Sales exemption does not apply to the sale of an entire business and other sales of machinery and equipment used in a business. Sales of property to be used outside the County that are shipped to a point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer, or by delivery by the retailer to a carrier for shipment to a consignee, at such point, are exempt from the State Sales Tax.

MEASURE M REVENUES
The Measure M Sales Tax
The Measure M Sales Tax is imposed in the County for transportation purposes and administered by LACMTA. It is in addition to the State Sales Tax. Pursuant to the Measure M Ordinance, the Measure M Sales Tax is generally imposed upon the same transactions and items that are subject to the State Sales Tax, with generally the same exceptions.

The Measure M Sales Tax is also in addition to: (i) Measure R Sales Tax, (ii) a 0.5% sales tax imposed by the Commission, predecessor to LACMTA, beginning in 1990 and currently imposed by LACMTA pursuant to Ordinance No. 49 of the Commission, known as the “Proposition C Sales Tax;” (iii) a 0.5% sales tax imposed by the Commission beginning in 1980 and currently imposed by LACMTA pursuant to Ordinance No. 16 of the Commission, known as the “Proposition A Sales Tax;” and (iv) sales taxes that apply only within certain cities within the County. The Measure R Sales Tax will terminate on July 1, 2039, and the Measure M Sales Tax will increase to a 1.0% sales tax.

Action by the State Legislature or by voter initiative could change the transactions and items upon which the State Sales Tax and the Measure M Sales Tax are imposed. Such changes or amendments could have either an adverse or beneficial effect on Measure M Revenues. Neither the Authority nor the City is currently aware of any proposed legislative change that would have a material adverse effect on Measure M Revenues.

For information related to LACMTA, see the caption “LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY.”
Measure M Revenues
Collection. Collection of the Measure M Sales Tax began on July 1, 2017, and is administered by the CDTFA, which imposes a charge for administration. The charge is based on the actual costs incurred by CDTFA in connection with the administration of the collection of the Measure M Sales Tax.

CDTFA distributes Measure M Revenues on a monthly basis*, based on CDTFA’s estimate of the Measure M Revenues received two months prior, with a quarterly reconciliation payment (or deduction) made in November, February, May, and August of each year. For example, in September, CDTFA distributes the estimated amount generated in the prior July; in October, CDTFA distributes the estimated amount generated in the prior August, and in November, CDTFA distributes the * While State law currently requires CDTFA to distribute payments at least twice each quarter, CDTFA’s historic and current practice is to transmit payments to local jurisdictions on a monthly basis. 22 estimated amount generated in the prior September, adjusted to account for actual prior under- or overpayments for the preceding quarter.

Allocation. In accordance with the Measure M Ordinance, LACMTA is required to allocate the proceeds of the Measure M Sales Tax as follows:

Uses
Percentage of
Allocation (2)
Metro Rail Operations (including Metro Rail State of Good Repair) 5% Transit Operations (Metro and Municipal Providers) 20
ADA Paratransit for Disabled; Metro discounts for seniors and students 2 Transit Construction (includes system connectivity projects – airports, Union Station, and Countywide BRT) 35
Metro State of Good Repair 2
Highway Construction (includes system connectivity projects – ports, highway congestion, good movement) 17
Metro Active Transportation Program (bicycle, pedestrian, complete streets) 2
Regional Rail 1
Measure M Local Return (1) 17
Total 100%
(1) Includes a 1% charge for administration.
(2) Does not sum due to inclusion of 1% Administration to supplement Measure M Local Return. See Footnote (1) above.

The Measure M Ordinance specifies that 17% of the Measure M Sales Tax, which includes a 1% charge for administration (previously defined as the “Measure M Local Return”), be allocated to incorporated cities within the County, including the City, and to the County for the unincorporated areas each on a per capita basis. The Measure M Local Return will increase to 20% on July 1, 2039.

Under the Measure M Ordinance, the Measure M Local Return is permitted to be used for following purposes: streets and roads improvements; a comprehensive, integrated transportation network with infrastructure and design that allows safe and convenient travel along and across streets for all users, including pedestrians, users and operators of public transit, bicyclists, persons with disabilities, seniors, children, motorists, users of green modes, and movers of commercial goods, and commonly referred to as “Complete Streets;” urban transportation rights-of-way integrated with stormwater treatment techniques that use natural processes and landscaping and quantitatively demonstrate that they capture and treat stormwater runoff from their tributary watershed through infiltration or other means and are included within respective Enhanced Watershed Management Plans, and commonly referred to as “Green Streets;” storm drains; traffic control measures; active transportation; public transit services and capital, transit oriented community investments; transit marketing; congestion management program (planning, engineering and/or study); transportation administration; or as matching funds for other federal, state or local sources used to fund transportation projects.

As previously described, under the Measure M Ordinance LACMTA is authorized to issue limited tax bonds and incur other obligations (previously defined collectively as “LACMTA Measure M Bonds”) from time to time, payable from and secured by all or any portion of the Measure M Sales 23 Tax collected by the CDTFA, less any refunds and any fees imposed by the CDTFA for the administration of the Measure M Ordinance, to finance any program or project in the Expenditure Plan.

The maximum bonded indebtedness may not exceed the total amount of Measure M Sales Tax, less said refunds and fees. According to LACMTA, State law prevents LACMTA from borrowing against the Measure M Local Return and its debt policy does not permit LACMTA to issue LACMTA Measure M Bonds payable from the Measure M Local Return. In the event of a change in law, if LACMTA were to issue or incur LACMTA Measure B Bonds secured by a pledge of and lien on all or a portion of Measure M Revenues (including the Measure M Local Return), the allocation of Measure M Revenues to the City would be subordinate to said pledge and lien. “RISK FACTORS – Potential Senior Lien on Measure M Revenues.”
To the City’s knowledge, LACMTA has not issued any LACMTA Measure M Bonds. In the event LACMTA were to issue LACMTA Measure M Bonds in the future, it is likely that CDTFA, after deducting the costs of administering the Measure M Sales Tax, would agree to remit all Measure M Sales Tax revenues to a trustee for LACMTA Measure M Bonds. It is the City’s expectation that such trustee would thereafter disburse the Measure M Local Return to LACMTA.

Currently, apportionments of the Measure M Local Return are being made to approximately 88 cities and the County for the unincorporated areas. The Measure M Local Return allocations to the Jurisdictions are based on the population shares from the projected populations as derived from annual estimates made by the California State Department of Finance. The projected populations are revised annually in the formula allocation procedure established by the LACMTA Board.

Changes in population in the City and other Jurisdictions could have a material impact on the allocation of Measure M Revenues to the City. For example, significant decreases in the number of people residing in the City, or significant increases in the populations of other Jurisdictions could cause the City’s share of Measure M Local Return to decrease, and such decrease could have a material adverse impact on the City’s ability to pay Installment Sale Payments and the Authority’s ability to pay debt service on the Bonds when due. See the caption “RISK FACTORS—Impact of Changes in Population on City Share of Measure M Revenues.” Also see APPENDIX B—“THE CITY OF

PARAMOUNT AND THE COUNTY OF LOS ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION—Population.

Before a local jurisdiction can receive any allocations of the Measure M Local Return, such jurisdiction must sign an assurances and understanding agreement with LACMTA. Measure M Local Return funds are then automatically allocated monthly on a per capita basis to such Jurisdiction. In addition, to continue receiving Measure M Local Return funds, the governing body of each local jurisdiction must annually adopt a resolution approving such Jurisdiction’s five-year plan regarding the expenditure of its Measure M Local Return and demonstrate its compliance with the permitted uses of its Measure M Local Return pursuant to an annual audit. See “RISK FACTORS – Non-Compliance with LACMTA Guidelines.”
The City has entered into an assurances and understanding agreement with LACMTA and most recently adopted its five-year Capital Improvement Project (CIP) plan regarding the expenditure of its Measure M Local Return on November 12, 2024, and then later amended during the adopted Fiscal Year 2025-2026 Annual Municipal Operating Budget, and Salary Schedule for City Employees. To date, the annual audits of the City’s Measure M Local Return have not identified instances of noncompliance as noted in the Independent Auditor’s Report from the examination of Measure M as of June 30, 2024, conducted by Simpson & Simpson, CPAs. 24 Historical Measure M Revenues. The following table summarizes LACMTA’s actual, estimated and budgeted Measure M Revenues for the fiscal years shown.

TABLE 1

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

MEASURE M REVENUES
($ in thousands)
Fiscal
Year
Measure M
Revenues (1)
Percentage
Change
2020-21 $ 911,235 11.0
2021-22 1,089,933 19.6
2022-23 1,106,177 1.5
2023-24 1,091,069 (1.4)
2024-25 (1) 1,156,000 6.0
2025-26 (2)
(1) Estimated; subject to change.
(2) Budgeted.

Source: LACMTA Audited Financial Statements for fiscal years 2019-20 through 2023-24; LACMTA Fiscal year 2026 Proposed Budget for fiscal year 2024-25 estimated revenues.

The information shown in the table above was derived from publicly available sources; this information was not prepared for purposes of disclosure to investors and has been included in this Official Statement without the approval or permission of LACMTA, solely for the convenience of the reader. Neither the City nor the Authority provide assurance that the information set forth in the following table is accurate. LACMTA maintains a website and periodically provides information regarding actual and estimated Measure M Revenues and allocations of Measure M Revenues to the local jurisdictions, including the City. Such website is not incorporated in this Official Statement.

Historical Measure M Receipts. The following tables present the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances relating to the City’s Measure M Fund for the fiscal years shown.
25 TABLE 2

CITY OF PARAMOUNT

MEASURE M FUND BALANCE SHEET
At June 30 of the fiscal years shown
2019-20 2020-21 2021-22 2022-23 2023-24
Unaudited
2024-25 (1)
Assets
Cash and Investments $704,702 $879,072 $989,556 $1,355,496 $2,072,749 $2,061,421 Accounts receivable -- -- -- -- 77,315 --
Interest receivable 1,825 611 1,671 8,578 13,170 --
Total Assets $706,527 $879,683 $991,227 $1,364,074 $2,163,234 $2,061,421 Liabilities
Accounts payable $4,172 $7,830 $42,354 $8,362 $121,578 $54,610 Retentions payable -- -- -- 1,504 5,372 30,926
Total Liabilities $4,172 $7,830 $42,354 $9,866 $126,950 $85,536 Fund Balances
Restricted $702,355 $871,853 $948,873 $1,354,208 $2,036,284 $2,036,284 Total Fund Balance $702,355 $871,853 $948,743 $1,354,208 $2,036,284 $2,036,284 Total Liabilities and Fund Balance $706,527 $879,683 $991,227 $1,364,074 $2,163,234 $2,061,421 (1) Unaudited; subject to change.

Source: City of Paramount Annual Comprehensive Financial Reports for fiscal years shown.

TABLE 3

CITY OF PARAMOUNT

MEASURE M FUND STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (2)
Revenues
Measure M (1) $758,685 $788,142 $985,817 $1,020,762 $977,212 $962,582 Interest and use of property 5,502 3,754 3,529 21,525 76,608 58,539 Total Revenues $764,187 $791,896 $989,346 $1,042,287 $1,053,820 $1,021,121 Expenditures
General Government $38,217 $41,493 $53,362 $57,108 $34,340 $47,586 Public Works -- 23,343 18,487 19,596 24,209 27,403
Capital Outlay 379,649 557,562 840,477 560,248 313,195 859,912 Total Expenditures $417,866 $622,398 $912,236 $636,952 $371,744 $934,901 Excess (Deficiency) of Revenues
Over Expenditures
$346,321 $169,498 $77,020 $405,355 $371,744 $86,220
Net Changes in Fund Balances $346,321 $169,498 $77,020 $405,355 $682,076 $86,220 Fund Balances – Beginning of
Year
356,034 702,355 871,853 948,873 1,354,208 2,036,284
Fund Balances - End of Year $702,355 $871,853 $948,873 $1,354,208 $2,036,284 $2,122,504 (1) Estimated; subject to change.

Source: City of Paramount Annual Comprehensive Financial Reports for fiscal years shown. 26 The City is unable to predict whether annual Measure M Receipts will increase or decrease or what portion, if any, of such Measure M Receipts it will receive. For a summary of historical taxable retail sales within the City and the County, see APPENDIX B – “THE CITY OF PARAMOUNT AND THE COUNTY OF LOS ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION.”

MAXIMUM ANNUAL DEBT SERVICE COVERAGE
The following table sets forth the maximum annual debt service coverage with respect to the Bonds. The maximum annual debt service coverage assuming that Measure M Receipts of the City remain unchanged from the amounts thereof for the fiscal year ended on June 30, 2025, as presented in this Official Statement on an unaudited basis. See the caption “MEASURE M REVENUES.” TABLE 4

CITY OF PARAMOUNT

MAXIMUM ANNUAL DEBT SERVICE COVERAGE
Projected
Measure M Receipts(1)
Maximum Annual Installment
Sale Payments
Debt Service
Coverage
$1,156,000 $[____] [__]x
(1) Based upon unaudited actual Measure M Receipts allocated to the City in fiscal year 2024-25.

Source: Measure M Revenues provided by City of Paramount; Maximum Annual Installment Sale Payments provided by Underwriter.

RISK FACTORS
The following information should be considered by prospective investors in evaluating the Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations may be relevant to making an investment decision with respect to the Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks.

Installment Sale Payments Constitute Limited Obligations The obligation of the City to make Installment Sale Payments under the 2025 Installment Sale Agreement is a special obligation of the City, payable solely from the Measure M Receipts, does not constitute a debt of the City, the Authority, LACMTA, the County, the State or any political subdivision of the State within the meaning of any constitutional or statutory debt limitation or restriction, and does not constitute an obligation for which the City, the State or any political subdivision of the State is obligated to levy or pledge any form of taxation or for which the City, the State, or any political subdivision of the State has levied or pledged any form of taxation. The Authority has no taxing power.

Passive Revenue Source
The payment of principal and interest on the Bonds is secured solely by a pledge of Installment Sale Payments, which in turn are secured by a pledge by the City of the Measure M Receipts, and certain funds and accounts held by the Trustee under the Trust Agreement. The City does not have any control over the amount of Measure M Receipts to be received by the City because: (i) Measure M Revenues constitute revenues of LACMTA derived from a retail transactions and use tax imposed 27 in the County pursuant to the Measure M Ordinance, the number of transactions and revenues generated under which tax the City has no ability to control; and (ii) the City does not have any control over the collection or distribution procedures related to any State taxes or local retail transactions and use taxes, including Measure M.

Although the City believes the projections in this Official Statement to be reasonable, there can be no assurance that Measure M Receipts will be available in the amounts estimated in this Official Statement. A decrease in Measure M Revenues could materially and adversely affect the amount and/or availability of Measure M Receipts. The amount of Measure M Revenues generated is affected by the population in the County, economic conditions in the County, the State, and the Country, and other factors. The amount of Measure M Revenues allocated to the City is additionally affected by the population of the City relative to the other local jurisdictions and unincorporated areas in the County, and other factors. In addition, the City must continuously meet certain requirements set forth in the Measure M Ordinance in order to be eligible to receive Measure M Receipts from LACMTA and apply the Measure M Receipts to pay the Installment Sale Payments. Such requirements include the annual adoption by the City of a resolution approving the City’s Five-Year Capital Improvement Plan and compliance by the City with a maintenance of effort requirement. See the caption “– Non-Compliance with LACMTA Guidelines” below. Notwithstanding that the City’s Measure M Receipts may vary from year to year, the City believes that the City will continue to receive sufficient Measure M Receipts to pay the Installment Sale Payments when due. See the caption “MAXIMUM ANNUAL DEBT SERVICE COVERAGE.”
Impact of Changes in Population on City Share of Measure M Revenues The percentage of the Measure M Local Return allocated to each local jurisdiction, including the City, is adjusted each year based on the population estimates generated by the California Department of Finance and the United States Census. See the caption “MEASURE M REVENUES— Measure M Revenues — Allocation.” Also see APPENDIX B—“THE CITY OF PARAMOUNT AND THE COUNTY OF LOS ANGELES ECONOMIC AND DEMOGRAPHIC INFORMATION— Population.” Significant decreases in the number of people residing in the City relative to the rest of the County, or significant increases in the number of people residing in other portions of the County relative to the population of the City could have a material adverse impact on the amount of Measure M Revenues allocated to the City and the Measure M Receipts available to pay Installment Sale Payments.

Notwithstanding that the City’s share of Measure M Revenues will vary from year to year and that the City’s share of Measure M Revenues is impacted by the City’s relative share of the population in the County, the City believes that the City will continue to receive sufficient Measure M Receipts to pay the Installment Sale Payments when due. See the caption “MAXIMUM ANNUAL DEBT SERVICE COVERAGE.”
Effect of Internet Commerce
The use of the internet to conduct electronic commerce may affect the levels of Measure M Revenues. Internet sales of physical products by businesses located in the State, and internet sales of physical products delivered to the State by businesses located outside of the State, are generally subject to the retail transactions and use tax imposed by Measure M. However, some of these transactions may avoid taxation either through error or deliberate nonreporting and this potentially reduces the 28 amount of Measure M Revenues. As internet sales increase, the City could experience a reduction of Measure M Receipts.

In June 2018, the United States Supreme Court published its decision in South Dakota v.

Wayfair (the “Wayfair Decision”), in which the Supreme Court held that sales to a customer in a particular state alone are sufficient to create a nexus for purposes of determining whether a seller is required to collect sales taxes of the applicable state. Prior to the Wayfair Decision, courts had interpreted the dormant Commerce Clause of the United States Constitution to require that a company have physical nexus in a state in order for the seller to be liable for the collection of that state’s sales tax. Physical nexus is defined as having either property or payroll in the state, including a resident employee working from home or inventory stored in that state.

The State has issued guidance in response to the Wayfair Decision. Under such guidance, retailers located outside of the State are required to register with the CDTFA, collect the California use tax and any local use tax (such as the Measure M Sales Tax), and pay the tax to the CDTFA based on the amount of their sales into California, even if they do not have a physical presence in the state.

Retailers subject to these requirements must collect and pay to CDTFA the use tax component of the Measure M Sales Tax with respect to any taxable retail sales to customers located in the County. The collection requirements apply to retailers if during the preceding or current calendar year certain sales thresholds are met. The collection requirements started to apply to taxable sales of tangible personal property to California consumers on and after April 1, 2019, and were not retroactive. Additionally, the State’s passage of Assembly Bill 147, signed by the Governor on April 25, 2019, provides the implementation rules for the Wayfair Decision in California.

Allocation of Measure M Receipts to the City
To the City’s knowledge, LACMTA has not issued any LACMTA Measure M Bonds. In the event LACMTA were to issue LACMTA Measure M Bonds in the future, it is likely that CDTFA, after deducting the costs of administering the Measure M Sales Tax, would agree to remit all Measure M Sales Tax revenues to a trustee for LACMTA Measure M Bonds. It is the City’s expectation that such trustee would thereafter disburse the Measure M Local Return to LACMTA. According to LACMTA, State law prevents LACMTA from borrowing against the Measure M Local Return and its debt policy does not permit LACMTA to issue LACMTA Measure M Bonds payable from the Measure M Local Return. In the event of a change in law, if LACMTA were to issue or incur LACMTA Measure M Bonds secured by a pledge of and lien on all or a portion of Measure M Revenues (including the Measure M Local Return), the allocation of Measure M Revenues to the City would be subordinate to said pledge and lien.

There can be no assurance that changes in the foregoing procedures or other actions undertaken or not undertaken by CDTFA, the trustee for any LACMTA Measure M Bonds or by LACMTA will not adversely affect the City’s receipt of Measure M Receipts.

Eligibility of the Projects
The projects to be constructed by the City must be designated by LACMTA as qualified projects for purposes of the local streets and roads program established under the Measure M Ordinance. Only such Measure M Projects are eligible to be financed from Measure M Receipts.

Although the City believes that the Projects constitute Measure M Projects eligible to be funded with proceeds of the Bonds, there can be no assurance as to the continuing eligibility of such projects. See 29 the captions “MEASURE M REVENUES— Measure M Revenues— Allocation” and “THE CITY, THE COUNTY, AND THE PROJECTS—The Projects.”
Non-Compliance with LACMTA Guidelines
In connection with the Measure M Ordinance, on June 22, 2017, LACMTA approved guidelines relating to the administration and use of the Measure M Sales Tax (the “Measure M Guidelines”). The Measure M Guidelines include a number of provisions that must be complied with by the City to ensure continued eligibility to receive Measure M Sales Tax distributions. Failure to follow these provisions could result in the suspension of distributions of Measure M Sales Tax, the return of such tax to LACMTA or the requirement of the City to replenish its “Measure M Local Return” account with available funds other than Measure M Sales Tax. LACMTA performs annual audits to monitor compliance with the provisions of the Measure M Guidelines. In the event the City were to fail to comply with the Measure M Guidelines, its ability to make Installment Sale Payments could be materially adversely affected which, in turn, could materially adversely affect the Authority’s ability to pay the principal of and interest on the Bonds on a timely basis.

Under the Measure M Guidelines, the City is required to expend Measure M Sales Tax moneys only on those transportation purposes identified in the Measure M Guidelines. If the City is found to have expended funds without LACMTA’s approval, the City will be required to reimburse its Measure M Sales Tax account for the amount of the unapproved expenditures. If LACMTA determines that Measure M Sales Tax was expended on projects that do not meet the Guidelines’ definition of transportation purposes, then the City will be required to reimburse its Measure M Sales Tax fund in an amount equal to the non-qualifying expenditures plus interest, and could also face a suspension of disbursements of Measure M Sales Tax for a period of three years.

In addition, the failure of the City to properly verify that all Measure M Sales Tax-related revenue, including Measure M Sales Tax allocations to the City, project-generated revenues and interest income, was properly credited to its Measure M Sales Tax fund could result in the suspension of Measure M Sales Tax disbursements until the City has demonstrated to LACMTA that all such Measure M Sales Tax allocable to the City has been credited to the City’s Measure M Sales Tax fund.

If the City fails to properly credit its Measure M Sales Tax related revenue to its Measure M Sales Tax fund, LACMTA could suspend the distribution of Measure M Sales Tax until the City has demonstrated compliance with the Measure M Guidelines.

The Measure M Guidelines also require the local agencies, including the City, to maintain their individual local commitment of funds for transportation projects and services that was expended prior to the receipt of the Measure M Sales Tax (the “MOE”). If the local agency fails to maintain the MOE, then such local agency will be required to reimburse its account with available funds other than Measure M Sales Tax moneys.

The City is required to expend Measure M Sales Tax within five years of the last day of the fiscal year in which such funds were originally allocated or received (subject to certain exceptions). If the City fails to expend the Measure M Sales Tax allocated to the City, the City is required to return the lapsed Measure M Sales Tax, interest income and other earned income on such lapsed amount, to LACMTA for reallocation to the other local agencies based on population. In certain circumstances, the City, with the approval of LACMTA, may be able to obtain additional time beyond the five-year term limit to expend its allocation of Measure M Sales Tax. 30 The Measure M Guidelines additionally require that the City annually submit an expenditure plan and an expenditure report to LACMTA to remain legally eligible to receive Measure M Sales Tax.

If the City fails to submit these items to LACMTA, the City may be determined to be legally ineligible to receive Measure M Sales Tax.

The Measure M Guidelines also gives LACMTA the right to suspend or revoke allocation to local agencies that are found to be in gross violation of the Measure M Guidelines, or repeatedly committing violations, or refusing to take corrective measures. During the duration of any suspension of Measure M Sales Tax disbursements or revocation of Measure M Sales Tax allocation, the City would not receive Measure M Receipts.

To date, the City has complied with all applicable guidelines relating to the receipt and expenditure of Measure M Receipts, including the Measure M Guidelines.

Additional Contracts
Subject to certain restrictions, the City is permitted to enter into other Contracts that constitute additional charges against the Measure M Receipts without the consent of Owners of the Bonds. See the caption “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS—Additional Contracts.” To the extent that other Contracts are executed by the City, the funds available to pay the Installment Sale Payments may be decreased. In addition, there is no limitation on the ability of the City to execute any Contract at any time to refund any outstanding Contract.

Potential Senior Lien on Measure M Revenues
Under the Measure M Ordinance LACMTA is authorized to issue LACMTA Measure M Bonds from time to time, payable from and secured by all or any portion of the Measure M Sales Tax collected by the CDTFA, less any refunds and any fees imposed by the CDTFA for the administration of the Measure M Ordinance, to finance any program or project in the Expenditure Plan. The maximum bonded indebtedness may not exceed the total amount of Measure M Sales Tax, less said refunds and fees. According to LACMTA, State law prevents LACMTA from borrowing against the Measure M Local Return and its debt policy does not permit LACMTA to issue LACMTA Measure M Bonds payable from the Measure M Local Return. In the event of a change in law, if LACMTA were to issue or incur LACMTA Measure M Bonds secured by a pledge of and lien on all or a portion of Measure M Revenues (including the Measure M Local Return), the allocation of Measure M Revenues to the City would be subordinate to said pledge and lien.

Limitations on Remedies; Bankruptcy
The rights of the Owners of the Bonds are subject to the limitations on legal remedies against municipalities in the State, including a limitation on enforcement of judgments against funds needed to serve the public welfare and interest. Additionally, enforceability of the rights and remedies of the Owners of the Bonds, and enforcement of the City’s obligations under the 2025 Installment Sale Agreement, may become subject to the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or later in effect, equity principles that may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of 31 serving a significant and legitimate public purpose and the limitations on remedies against cities in the State.

Bankruptcy proceedings under Chapter 9 of the Bankruptcy Code (Title 11, United States Code), which governs the bankruptcy proceedings for public agencies such as the City and LACMTA, or the exercise of powers by the federal or State government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation, or modification of their rights.

Bond Counsel has limited its opinion as to the validity and enforceability of the 2025 Installment Sale Agreement and the Trust Agreement to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium, or other similar laws affecting generally the enforcement of creditor’s rights, by equitable principles and by the exercise of judicial discretion. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation, or modification of the rights of the Owners.

Constitutional Limitations on Appropriations
State law imposes various taxing, revenue and appropriations limitations on public agencies such as the City. See the caption “CONSTITUTIONAL PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS” for a discussion of these limitations.

State Legislature or Electorate May Change Items Subject to Measure M Sales Tax With limited exceptions, the Measure M Sales Tax will be imposed upon the same transactions and items that are subject to the sales and use tax levied statewide by the State. In the past, the State Legislature and the State electorate have made changes to the transactions and items that are subject to the State’s general sales tax and, therefore, to the Measure M Sales Tax. In 1991, the State Legislature enacted legislation that expanded the transactions and items that are subject to the general statewide sales tax to include fuel for aviation and shipping, bottled water, rental equipment and newspapers and magazines. In 1992, the State electorate approved an initiative that eliminated candy, gum, bottled water and confectionery items as items that are subject to the State’s general sales tax. The State Legislature or the voters within the State, through the initiative process, could change or limit the transactions and items upon which the statewide sales tax and the Measure M Sales Tax are imposed.

Any such change or limitation could have an adverse impact on the Measure M Revenues collected and, correspondingly, the Measure M Receipts allocated by LACMTA to the City. For a further description of the Measure M Sales Tax, see the caption “MEASURE M REVENUES.” Increases in Sales Tax Rate May Cause Declines in Measure M Revenues The 0.5% Measure M Sales Tax imposed in the County for transportation purposes and administered by LACMTA is in addition to the sales or use tax levied statewide by the State. The current statewide tax rate is 7.25%. In 2020, voters in the City approved an additional 0.75% sales and use tax. Voters in the County have approved an additional 2.50% sales and use tax. The current total sales and use tax rate in the City is 10.50%. Future increases, if any, in the State Sales Tax or the additional sales tax levied in the County and/or the City could have an adverse effect on consumer spending decisions and consumption, resulting in a reduction of Measure M Revenues. 32 No Liability of Authority to Owners
Subject to any provisions in the Trust Agreement to the contrary, the Authority has no obligation or liability to the Owners of the Bonds with respect to the payment when due of the Installment Sale Payments by the City or with respect to the performance by the City of other agreements and covenants required to be performed by the City under the 2025 Installment Sale Agreement or the Trust Agreement, or with respect to the performance by the Trustee of any of the Trustee’s rights or obligations under the Trust Agreement.

Economic, Political, Social and Environmental Conditions The collection of Measure M Revenues depends on the level of taxable sales transactions within the County, which, in turn, depends on the level of general economic activity in the County and the State generally. Prospective investors are encouraged to evaluate current and prospective economic, political, social and environmental conditions as part of an informed investment decision.

Changes in economic, political, social or environmental conditions on a local, State, federal or international level may adversely affect investment risk generally. Such conditional changes may include (but are not limited to) the reduction or elimination of previously available State or federal revenues, fluctuations in business production, consumer prices or financial markets, unemployment rates, technological advancements, shortages or surpluses in natural resources or energy supplies, changes in law, social unrest, fluctuations in the crime rate, political conflict, acts of war or terrorism, environmental damage and natural disasters. See the caption “—Geologic, Topographic and Climatic Conditions Affecting the City and County.”
Geologic, Topographic and Climatic Conditions Affecting the City and County The occurrence of any natural disaster in or near the boundaries of the City or County, including, without limitation, fire, earthquake, landslide, high winds, drought or flood, could have an adverse material impact on the economy within the City or County, as applicable, and the generation of sales and use taxes that constitute Measure M Revenues. Portions of the City and County may be at risk of damage or destruction from floods or wildfires or may be subject to unpredictable seismic activity. Destruction of a significant number of structures in the City by a natural disaster such as earthquake, fire, or flood, could have a material impact on the population of the City. See the captions “MEASURE M REVENUES—Measure M Revenues—Allocation” and “RISK FACTORS—Impact of Changes in Population on City Share of Measure M Revenues.” Building codes require that some of these factors be taken into account, to a limited extent, in the design of improvements, including public and private improvements in the City and the County.

Some of these factors may also be taken into account, to a limited extent, in the design of other infrastructure and public improvements neither designed nor subject to design approval by the City.

Design criteria in any of these circumstances are established upon the basis of a variety of considerations and may change, leaving previously-designed improvements unaffected by more stringent subsequently established criteria. In general, design criteria reflect a balance at the time of protection and the future costs of lack of protection, based in part upon a present perception of the probability that the condition will occur and the seriousness of the condition should it occur.

Conditions may occur and may result in damage to improvements of varying seriousness, such that the damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these 33 circumstances, the value of public and private improvements within the City and the County, may well depreciate or disappear, notwithstanding the establishment of design criteria for any such condition.

Significant declines in the value of properties in the County could have an adverse impact on the overall economy in the County, and therefore have a material adverse impact on future Measure M Revenues.

Seismic Risks. Generally, seismic activity occurs on a regular basis in the State. Periodically, the magnitude of a single seismic event can cause significant ground shaking and potential damage to property located at or near the center of such seismic activity. The County is located in a seismically active area of southern California. Significant ground shaking as a result of a local or regional earthquake is likely to occur during the term of the Bonds. Due to the presence of groundwater and loose to medium dense silty sand, the site is considered to be susceptible to liquefaction in the event of a strong earthquake.

According to the City’s Hazard Mitigation Plan dated April 2023 (the “HMP”), the City does not have any seismic faults within its boundaries but is still in the vicinity of several known active and potentially active earthquake faults, including the San Andreas Fault, the Newport-Inglewood Fault, the Whittier-Elsinore Fault and the Palos Verdes Fault. The proximity of these faults makes the City and the County subject to the hazards associated with ground shaking, surface rupture, and soil instability, such as damage resulting from collapsed buildings, damaged roads and bridges, fires, flooding, hazardous material spills and possible failures of pipelines and waterways. In the case of surface rupture, properties along the rupture could be red-tagged and may not be rebuilt. If an earthquake were to substantially damage or destroy taxable property within the City or the County, the assessed valuation of such property would be reduced.

Under the HMP, tsunami risk was deemed not to be applicable due to the City’s lack of proximity to the ocean.

Both the City and the County have a program requiring the retrofitting of certain property to meet higher standards of earthquake safety. Implementation of this program is ongoing and will continue for some years. The 1994 earthquake in Los Angeles County, which was centered in Northridge and was felt in the County and the area comprising the City, but did not result in any deaths, injuries, or significant property damage in the City.

Flood Risks. According to the Safety Element of the City’s General Plan, portions of the City are prone to occasional urban flooding, known as ponding, due to debris accumulation on storm drains and aged drainage systems. Low-lying areas of the City such as the All-American Park and the western boundary of the City are particularly susceptible to flooding during heavy rains. Despite its dry conditions, the City experiences periodic winter storms and thunderstorms that can result in flash floods. Under storm conditions, the region’s stream systems pose a potential threat.

Climate change is expected to only cause a slight increase or decrease in average annual rainfall, however the intensity of individual rainfall events is anticipated to increase. The prospect of more intense rainfall events increases the likelihood that these storms will overwhelm stormwater systems built to historic rainfall averages, making localized flooding more likely.

Flood zones are identified by FEMA. FEMA designates land located in a low– to moderaterisk flood zone (i.e., not in a floodplain) and has less than a 1% chance of flooding each year as being within a Non-Special Flood Hazard Area (a “NSFHA”). The City is located in an area designated by FEMA as subject to low to moderate flood risk. FEMA has issued a Flood Insurance Rate Map (FIRM) 34 that indicates the majority of the City is located in 100-year flood plains, indicating a 0.01 annual probability of a flooding event. The City can make no representation that future maps will not be revised to include the City within an area deemed subject to flooding.

The City has long had a high degree of flood protection due to the construction of dams along the San Gabriel and Rio Hondo Rivers and the channelization of the Los Angeles River in the 1950s.

The City has never been impacted by a dam failure, however there are two dams that could potentially cause flooding in the event of a dam failure: the Whittier Narrows Dam on the San Gabriel River at the southern edge of the San Fernando Valley, and the Hansen Dam located on the northern edge of the San Fernando Valley. In particular, the U.S. Army Corps of Engineers has determined that the 60- year-old Whittier Narrows Dam is structurally unsafe and poses a potentially catastrophic risk to the communities along the San Gabriel River floodplain, including the City, which is geographically located in the flood inundation area should a dam failure occur.

The City on occasion experiences rain events that cause localized flooding, fallen trees and damage to City infrastructure, residential and business properties, parks and recreational facilities, road and highway infrastructure and critical utility facilities. In early 1995, heavy winter rains caused local flooding events in Los Angeles County near the City.

Fire Risks. Fire hazard severity is a function of fuel conditions, historic climate, and topography. According to the HMP, wildfire risk has not been deemed not to be applicable to the City due to a lack of open “wild areas”. The City consists of urban terrain with minimal open space, and therefore urban fires, discussed below, are the expected type of fire. Notwithstanding the foregoing, wildfires are a major environmental hazard in the State, affecting areas of the City and County to varying degrees. In January 2025, multiple wildfires occurred in Los Angeles County, including the Palisades fire in the City of Los Angeles, and the Eaton fire in the City of Altadena. These fires started in wildland areas; exacerbated by severe windstorms, the fires moved quickly through large, denselypopulated urban areas and, in the case of the Palisades fire, reached and destroyed hundreds of structures along the coast. These fires destroyed more than 16,000 structures and resulted in at least 29 confirmed fatalities. None of these fires occurred within the boundaries of the City. The Governor has previously signed a number of measures into law intended to address a variety of issues related to mitigating the risk of wildfires, including forest management, mutual aid for fire departments, emergency alerts and other safety mandates, and it is expected that he will continue to do so. It is also expected that a variety of financial relief measures for affected communities and individuals will be considered. The City cannot predict and makes no representations regarding the extent to which recent events may impact City facilities, construction schedules, the costs of building materials and contractors, the costs and availability of casualty and homeowner’s insurance, or the assessed value of taxable property within the City, if at all.

The City has not been directly affected by a recent or current California wildfire, however there can be no assurances that wildfires will not affect the properties in the City. The California State Fire Marshal is mandated to classify lands within State Responsibility Areas into Fire Hazard Severity Zones (FHSZ). The City is located outside of designated State Responsibility Areas. Designations are based on the factors that influence fire likelihood and fire behavior. Many factors are considered such as fire history, existing and potential fuel (natural vegetation), predicted flame length, blowing embers, terrain, and typical fire weather for the area. Areas outside of designated State Responsibility Areas (including the area in and around the City) are designated Local Responsibility Areas. Local government, the City and the Los Angeles County Fire Department have the responsibility to provide fire protection in this Local Responsibility Area and may provide structural and supplemental wildland 35 fire protection in State Responsibility Areas. The City has maintained a contract with the Los Angeles County Fire department since incorporation. The Department currently operates one state (Station 31) on Somerset Boulevard in the City.

Population density or the number of structures in a particular region are not currently used to determine the fire hazard severity for a particular region. Areas throughout the County have been designated as having a “Very High Severity Hazard,” “High Hazard,” or “Moderate Hazard.” The fact that an area is in a Moderate Hazard designation does not mean it cannot experience a damaging fire; it means only that the probability is reduced, generally because the number of days a year that the area has “fire weather” is less.

The combination of abundant natural areas and densely populated urban areas has created several challenges and hazards in Los Angeles County in the past. Fires included the 2018 Pico Rivera Apartment Fire, the 2018 Wildfire Season, the 2017 Canyon Fire II, and the 2017-18 Thomas Fire.

Urban fires are primarily those associated with structures and activities in and around them.

Because the City consists of urban terrain with minimal open space, the expected type of fire is an urban fire. Additionally, the existence of several petroleum and hazardous materials facilities within the City contribute to the fire threat. Further, the Santa Ana winds typically occur during the fire season.

These winds blow hot, dry air from the southern California deserts to the coasts, fueling regional wildfires and making fires much more difficult to contain. Urban fires often consume buildings with the potential to spread to adjoining buildings.

When wildfires scorch thousands of acres in Southern California, they destroy all vegetation on mountains and hillsides. As a result, when heavy rain falls in the winter, there is nothing to stop the rain from penetrating directly into the soil. In addition, waxy compounds in plants and soil that are released during fires create a natural barrier in the soil that prevents rainwater from seeping deep into the ground. The result is erosion, mudslides, and excess water running off the hillsides often causing flash flooding as described below.

Drought Conditions. Water shortfalls resulting from the driest conditions in recorded State history caused a State-wide drought State of Emergency for California in 2014 and the imposition by State regulators of reductions in water usage through 2017 when the State-wide drought ended in almost all California counties.

During fiscal years 2020-21, 2021-22, and 2022-23, much of the State experienced Severe or Extreme Drought, pursuant to the U.S. Drought Monitor Classification Scheme. Beginning in April 2021, Governor Newsom signed several executive orders relating to the drought, including declaring states of emergency due to drought in the State. On January 4, 2022, State Water Board adopted emergency use regulations prohibiting certain wasteful water practices such as watering ornamental landscapes during rain and using potable water to clean hard surfaces and driveways. In June 2022, additional emergency water conservation regulations took effect limiting watering of ornamental grasses in certain locations followed by additional water use regulations in December prohibiting wasteful water use practices.

On March 24, 2023, as a result of rain and snowfall in the State, Governor Newsom rolled back many of the water use restrictions in his previous drought-related executive orders but left in place certain measures aimed at wasteful water uses as well as preserving ground water supplies. 36 Currently, according to the U.S. Drought Monitor, almost all of the State is experiencing drought. The City cannot predict if or when water usage restrictions might be imposed again or what impact such restrictions, if imposed, might have on economic activity, assessed valuations and the local economy in the City.

Climate Change. The State has historically been susceptible to wildfires and hydrologic variability. As greenhouse gas emissions continue to accumulate in the atmosphere, climate change is expected to intensify, increasing the frequency, severity and timing of extreme weather events such as coastal storm surges, drought, wildfires, floods, heat waves, and rising sea levels. The future fiscal impact of climate change on the City, its finances, and the economy in the City and the County is difficult to predict, but it could be significant and it could have a material adverse effect on the City’s finances by requiring greater expenditures to counteract the effects of climate change and a material adverse effect on the economy in the City and the County by causing more severe and frequent storm events, wildfires, and other natural disasters.

The City recognizes the importance of addressing climate change and its potential impacts on the community. The City has demonstrated this commitment through a variety of projects, plans, policies, and initiatives aimed at reducing greenhouse gas emissions, adapting to climate change, and promoting sustainability. Among key initiatives and policy statements, the City has adopted a Climate Action Plan (2021) designed to reduce greenhouse gas emissions. This proactive approach helps to mitigate potential financial risks associated with climate change.

The Climate Action Plan provides a comprehensive framework for reducing greenhouse gas emissions. Local reduction measures in the Climate Action Plan are organized into eight major categories, including: (1) Energy efficiency and conservation, (2) Renewable energy, (3) Sustainable Transportation, (4) land use and community design, (5) water and wastewater systems, (6) waste reduction and recycling, (7) Green infrastructure, parks, urban forestry and agriculture, and (8) green business and industry. Through locally-implemented measures, the City anticipates a reduction of 45,128 metric tons of carbon dioxide generated within the City annually commencing in 2030.

Cyber Security
The City, like other public and private entities, relies on a large and complex technology environment to conduct its operations, and consequently faces the threat of cybersecurity incidents.

Such incidents can result from unintentional events, or from deliberate attacks by unauthorized entities or individuals attempting to gain access to the City’s information technology systems to misappropriate assets or information or to cause operational disruption and damage. The City and its departments face cyber threats from time to time, including but not limited to hacking, viruses, malware, phishing, distributed denial-of-service, and other attacks on computers, networks, and systems.

No assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City. The City has not experienced any material cybersecurity incidents to date but acknowledges the potential for future incidents that could impact operations or result in financial or legal implications.

The City currently purchases cyber insurance coverage.

The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation CDTFA and the Trustee. No assurance can 37 be given that the other entities will not be affected by cyber threats and attacks in a manner that may affect the Owners of the Bonds.

No Validation Proceeding Undertaken
California Code of Civil Procedure Section 860 authorizes public agencies to institute a process, otherwise known as a “validation proceeding,” for purposes of determining the validity of a resolution or any action taken pursuant thereto. Code of Civil Procedure Section 860 authorizes a public agency to institute validation proceedings in cases where another statute authorizes its use.

Relevant to the Bonds, the Trust Agreement, and the 2025 Installment Sale Agreement, Government Code Section 53511 authorizes a local agency to “bring an action to determine the validity of its bonds, warrants, contracts, obligations or evidences of indebtedness.” Pursuant to Code of Civil Procedure Section 870, a final favorable judgment issued in a validation proceeding shall, notwithstanding any other provision of law, be forever binding and conclusive, as to all matters therein adjudicated or which could have been adjudicated, against all persons: “The judgment shall permanently enjoin the institution by any person of any action or proceeding raising any issue as to which the judgment is binding and conclusive.”
The City believes that it’s execution and delivery of the 2025 Installment Sale Agreement is legally valid and authorized, and not prohibited by Section 18 of Article XVI of the California Constitution (commonly referred to as the “California constitutional debt limit”), because the proceeds of the Bonds are restricted for use solely on Measure M Projects and the Installment Sale Payments are payable solely from the Measure M Receipts; accordingly the 2025 Installment Sale Agreement falls within the judicially-created “special fund” exception to the California constitutional debt limit.

The Authority and the City have not undertaken or endeavored to undertake any validation proceeding in connection with the issuance of the Bonds or the execution and delivery of the Trust Agreement and the 2025 Installment Sale Agreement. The Authority, the City, and Bond Counsel have relied on the provisions of Code of Civil Procedure Section 860, et seq., in particular Sections 860, 863, 864, and 869, which provide that any action challenging the Bonds, the Trust Agreement, the 2025 Installment Sale Agreement, or related matters must be brought within 60 days following the adoption by the Authority and City of the Resolutions. The City and the Authority adopted the Resolutions on May 27, 2025 and June 10, 2025, respectively; accordingly, the challenge period described in Code of Civil Procedure Section 860, et seq., expired with respect to the Bonds, the Trust Agreement, the 2025 Installment Sale Agreement, and related matters on August 9, 2025.

Notwithstanding the statute of limitations provided by Code of Civil Procedure Section 860 with respect to the Bonds, the Trust Agreement, the 2025 Installment Sale Agreement, and related matters, it is possible that challenges to Measure M, the Measure M Sales Tax, collection procedures, or other matters, or changes to the law, could have a material adverse impact on the collection and allocation to the City of Measure M Revenues. However, any court or legislative action or initiative measure affecting the levy, collection, or allocation of Measure M Revenues to the City for the timely payment of Installment Sale Payments could be subject to legal protections regarding unconstitutional impairment of contracts and unconstitutional taking without just compensation. The City believes these constitutional provisions could provide some protection against adverse consequences of such actions upon the City and the availability of Measure M Receipts for the payment of the Installment Sale Payments (and accordingly, the Bonds). However, the City provides no assurance that a court or legislative action or initiative measure affecting the levy, collection, or allocation of Measure M Revenues to the City will not result in an outcome that may have a material adverse effect on the City’s 38 ability to timely pay Installment Sale Payments and the Authority’s ability to timely pay debt service on the Bonds.

IRS Audit of Tax-Exempt Bond Issues
The Internal Revenue Service has a program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the Internal Revenue Service. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar municipal obligations).

Loss of Tax Exemption
As discussed under the caption “TAX MATTERS,” certain acts or omissions of the Authority or the City in violation of its covenants in the Trust Agreement and the 2025 Installment Sale Agreement could result in the interest on the Bonds being includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Bonds. Should such an event of taxability occur, the Bonds would not be subject to a special redemption or an increase in interest rates and would remain outstanding.

In addition, subsequent to the issuance of the Bonds there might be federal, state or local statutory changes (or judicial or regulatory changes to or interpretations of federal, state or local law) that affect the federal, state or local tax treatment of the Bonds, including the imposition of additional federal income or state taxes on owners of tax-exempt state or local obligations, such as the Bonds.

These changes could adversely affect the market value or liquidity of the Bonds. No assurance can be given that subsequent to the issuance of the Bonds statutory changes will not be introduced or enacted or judicial or regulatory interpretations will not occur having the effects described above. Before purchasing any of the Bonds, all potential purchasers should consult their tax advisors regarding possible statutory changes or judicial or regulatory changes or interpretations, and their collateral tax consequences relating to the Bonds.

Federal Funding Risks
Federal policies on the federal debt ceiling, taxes, foreign trade and tariffs, immigration, climate change, clean energy, and other topics can shift dramatically from one administration to another. From time to time, such changes can result in dramatic shifts in the level of federal funding for various policy priorities, leading to unpredictability in near-term and future federal funding. The City can provide no certain assurances with respect to continued grant funding or other direct payments to the City and County in support of governmental services, whether previously made directly or by pass-through to the State.

Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that the Bonds can be sold for any particular price. Occasionally, because of general market conditions, adverse history or economic prospects connected with a particular issue, secondary marketing practices are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price.
39 Bond Insurance
In the event of default of the payment of the scheduled principal of or interest on the Insured Bonds when all or some becomes due, the Trustee on behalf of any owner of the Insured Bonds will have a claim under the Policy for such payments. The Insurer may direct and must consent to any remedies with respect to the Insured Bonds and the Insurer’s consent may be required in connection with amendments to any applicable documents relating to the Bonds. See APPENDIX A— “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.”
The Insurer is expected to insure [all][a majority] of the Bonds and will therefore have the ability to direct the actions of the Trustee give consents and waivers and take other actions without regard to the views of the Owners of the Bonds. As a result, Owners of the Bonds may be limited in the rights and remedies they are able to exercise in the event of a default by the City under the Installment Sale Agreement. The Insurer may have different business and other interests than the Owners of the Bonds.

The long-term ratings on the Insured Bonds are dependent in part on the financial strength of the Insurer and its claims paying ability. The Insurer’s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the Insurer and the ratings on the Insured Bonds will not be subject to downgrade and such event could adversely affect the market price of the Insured Bonds or the marketability (liquidity) for the Insured Bonds. See the caption “RATINGS” herein.

The obligations of the Insurer are unsecured contractual obligations and in an event of default by the Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies.

None of the Authority, the City, or the Underwriter has made independent investigation into the claims paying ability of the Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the City to make Installment Sale Payments when due under the Installment Sale Agreement and the claims paying ability of the Insurer, particularly over the life of the investment. See “BOND INSURANCE” herein for further information regarding the Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the Insurer.

CONSTITUTIONAL PROVISIONS AFFECTING

CITY REVENUES AND APPROPRIATIONS
Article XIIIB of the California Constitution – Limitations on Appropriations On November 6, 1979, State voters approved Proposition 4, the so-called Gann Initiative, which added Article XIIIB to the State Constitution (“Article XIIIB”). In June 1990, Article XIIIB was amended by the voters through their approval of Proposition 111. Article XIIIB limits the annual appropriations of the State and of any city, county, school district, authority or other political subdivision of the State to the level of appropriations for the prior fiscal year, as adjusted annually for changes in the cost of living, population and cost of services rendered by the governmental entity. The “base year” for establishing such appropriation limit is State fiscal year 1978-79 and the limit is to be adjusted annually to reflect changes in population and consumer prices. Adjustments in the 40 appropriations limit of an entity may also be made if: (i) the financial responsibility for a service is transferred to another public entity or to a private entity; (ii) the financial source for the provision of services is transferred from taxes to other revenues; or (iii) the voters of the entity approve a change in the limit for a period of time not to exceed four years.

Appropriations of an entity of local government that are subject to Article XIIIB include generally any authorization to expend during the fiscal year the proceeds of taxes levied by the State or other entity of local government, exclusive of certain State subventions, refunds of taxes, benefit payments from retirement, unemployment insurance and disability insurance funds. Appropriations that are subject to limitation pursuant to Article XIIIB do not include debt service on indebtedness existing or legally authorized as of January 1, 1979 or on bonded indebtedness thereafter approved according to law by a vote of the electors of the issuing entity voting in an election for such purpose, appropriations required to comply with mandates of courts or the federal government, appropriations for qualified capital outlay projects and appropriations by the State of revenues derived from any increase in gasoline taxes and motor vehicle weight fees above January 1, 1990, levels. “Proceeds of taxes” include, but are not limited to, all tax revenues and the proceeds to any entity of government from: (i) regulatory licenses, user charges, and user fees to the extent such proceeds exceed the cost of providing the service or regulation; (ii) the investment of tax revenues; and (iii) certain State subventions received by local governments. Article XIIIB includes a requirement that if an entity’s revenues in any year exceed the amount permitted to be spent, the excess must be returned by revising tax rates or fee schedules over the subsequent two fiscal years.

Article XIIIB allows voters to approve a temporary waiver of a government’s Article XIIIB limit. Such a waiver is often referred to as a “Gann limit waiver.” The length of any such waiver is limited to four years. The Gann limit waiver does not provide any additional revenues to a local government or allow a local government to finance additional services.

Installment Sale Payments are subject to the Article XIIIB appropriations limitations. The City reports that it has never made appropriations that exceeded the limitation on appropriations under Article XIIIB. The impact of the appropriations limit on the financial needs of the City in the future is unknown.

Articles XIIIC and XIIID of the California Constitution – The Right to Vote on Taxes On November 5, 1996, State voters approved Proposition 218, entitled the “Right to Vote on Taxes Act” (“Proposition 218”). Proposition 218 added Article XIIIC (“Article XIIIC”) and Article XIIID (“Article XIIID”) to the State Constitution, which Articles contain a number of provisions affecting the ability of local governments to levy and collect both existing and future taxes, assessments, fees and charges. The interpretation and application of certain provisions of Proposition 218 will ultimately be determined by the courts with respect to some of the matters discussed below.

It is not possible at this time to predict with certainty the future impact of such interpretations. The provisions of Proposition 218, as so interpreted and applied, may affect the ability of the City to meet certain obligations.

Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes require a majority vote and taxes for specific purposes, even if deposited in a general fund, require a two-thirds vote. Article XIIIC further provides that any general purpose tax that is imposed, extended or increased without voter approval after December 31, 1994, may continue to be imposed only if approved by a majority vote in an 41 election, which must be held within two years of November 5, 1996. The City reports that it has not imposed, extended or increased any such taxes that are currently in effect without voter approval.

Article XIIIC also expressly extends the initiative power to give voters the power to reduce or repeal local taxes, assessments, fees and charges, regardless of the date that such taxes, assessments, fees and charges were imposed. Article XIIIC expands the initiative power to include reducing or repealing assessments, fees and charges, which had previously been considered administrative rather than legislative matters and therefore beyond the initiative power. This extension of the initiative power is not limited by the terms of Article XIIIC to fees imposed after November 6, 1996, and absent other legal authority could result in the retroactive reduction in any existing taxes, assessments, fees, or charges. No assurance can be given that the voters within the jurisdiction of the City will not, in the future, approve initiatives that reduce, repeal or prohibit the future imposition or increase of, local taxes, assessments, fees or charges that currently comprise a substantial part of the City’s general fund.

The terms “local tax,” “assessments,” “fees” and “charges” are not defined in Article XIIIC, and it is unclear whether these terms are intended to have the same meanings for purposes of Article XIIIC as for Article XIIID described below. If not, the scope of the initiative power under Article XIIIC potentially could include any general fund local tax, assessment, or fee that is not received from or imposed by the federal or State government or derived from investment income. The City does not believe that it currently levies any property related “fees” or “charges” that it considers to be subject to challenge under Article XIIIC.

The voter approval requirements of Proposition 218 reduce the flexibility of a local government to raise revenues for its general fund, and no assurance can be given that the City will be able to impose, extend, or increase taxes in the future to meet increased expenditure needs.

Article XIIID also added several new provisions relating to how local governments may levy and maintain “assessments” for municipal services and programs. These provisions include, among other things: (i) a prohibition against assessments that exceed the reasonable cost of the proportional special benefit conferred on a parcel; (ii) a requirement that the assessment must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred; and (iii) a majority protest procedure that involves the mailing of a notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party. The term “Assessment” in Article XIIID is defined to mean any levy or charge upon real property for a special benefit conferred upon the real property and applies to landscape and maintenance assessments for open space areas, street medians, streetlights, and parks.

In addition, Article XIIID added several provisions affecting “fees” and “charges,” defined for purposes of Article XIIID to mean “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by a local government upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service.” All new and existing property related fees and charges must conform to requirements prohibiting, among other things, fees and charges that: (i) generate revenues exceeding the funds required to provide the property related service; (ii) are used for any purpose other than those for which the fees and charges are imposed; (iii) are for a service not actually used by, or immediately available to, the owner of the property in question; or (iv) are used for general governmental services, including police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Depending on the interpretation of what constitutes a “property related fee” under Article XIIID, there could be future restrictions on the ability of the City to charge its respective enterprise funds for various services provided. Further, before any property related fee or charge may 42 be imposed or increased, written notice must be given to the record owner of each parcel of land affected by such fee or charge. The City must then hold a hearing upon the proposed imposition or increase and, if written protests against the proposal are presented by a majority of the owners of the identified parcels, the City may not impose or increase the fee or charge.

The City does not believe that the provisions of Article XIIIC or Article XIIID will directly impact the Measure M Receipts available to the City to make its Installment Sale Payments required pursuant to the 2025 Installment Sale Agreement.

Future Initiatives
Article XIIIB, Article XIIIC and Article XIIID were each adopted as measures that qualified for the ballot pursuant to the State’s Constitutional initiative process. From time to time other initiative measures could be adopted that affect the ability of the City to increase or apply revenues and to make or increase appropriations or the ability of LACMTA to levy, collect or allocate the Measure M Revenues, all of which could adversely impact the amount of Measure M Revenues received by the City.

TAX MATTERS
General
In the opinion of Anzel Galvan LLP, San Francisco, California, Bond Counsel, under existing law and subject to certain qualifications described below, interest on the Bonds is excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Tax Code”). Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. The proposed form of opinion of Bond Counsel with respect to the Bonds to be delivered on the date of issuance of the Bonds is set forth in Appendix C.

The Tax Code contains a number of requirements that apply to the Bonds, and the Authority and the City have made certain representations and have covenanted to comply with each such requirement. Bond Counsel’s opinion assumes the accuracy of the representations made by the Authority and the City and is subject to the condition that the Authority and the City comply with the above-referenced covenants. If the Authority or the City fail to comply with such covenants or if the Authority or the City’s representations are inaccurate or incomplete, interest on the Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.

Except as expressly stated herein, Bond Counsel expresses no opinion regarding any tax consequences related to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on, the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds. 43 Original Issue Premium and Discount
If the initial offering price to the public at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes. If the initial offering price to the public at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income to the extent properly allocable to each owner thereof subject to the limitations described in the limitation described herein. The original issue discount accrues over the term to maturity of the Bonds on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity.

Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under the federal alternative minimum tax.

Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bonds (said term being the shorter of the Bond's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bonds for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bonds on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to federal income tax consequences of owning such Bonds.

Post Issuance Matters
The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service (“IRS”) or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the Authority or the City, or about the effect of future changes in the Tax Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS.

Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the Authority, the City or the Owners regarding the tax-exempt status of the Bonds in the event of an audit examination by the IRS.

Under current procedures, parties other than the Authority and the City and their appointed counsel, including the Owners, would have little, if any, right to participate in the audit examination process. 44 Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the Authority or the City legitimately disagree, may not be practicable. Any action of the IRS, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for, or the marketability of, the Bonds, and may cause the Authority, the City or the Owners to incur significant expense.

Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the Bonds.

Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

RATINGS
S&P Global Ratings, a division of Standard & Poor’s Financial Services LLC (“S&P”) is expected to assign the rating of “___” to the Insured Bonds based upon the delivery of the Policy by the Insurer at the time of issuance of the Bonds. See “BOND INSURANCE” herein.

In addition, S&P is expected to assign the Bonds the rating of “___,” independent of the delivery of the Policy.

There is no assurance that any credit rating given to the Bonds will be maintained for any period of time or that a rating may not be lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant. Any downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. The rating reflects only the views of S&P, and an explanation of the significance of such rating may be obtained from S&P. Generally, rating agencies base their ratings on information and materials furnished to them (which may include information and material from the City that is not included in this Official Statement) and on investigations, studies and assumptions by the rating agencies.

In providing a rating on the Bonds, S&P may have performed independent calculations of coverage ratios using its own internal formulas and methodology, which may not reflect the provisions of the Trust Agreement or the 2025 Installment Sale Agreement. Neither the City nor the Authority makes any representations as to any such calculations, and such calculations should not be construed as a representation by the City or the Authority as to past or future compliance with any financial covenants, the availability of particular revenues for the payment of debt service or for any other purpose.

CONTINUING DISCLOSURE
The City will covenant in its continuing disclosure certificate (the “Continuing Disclosure Certificate”) for the benefit of the holders and beneficial owners of the Bonds to provide, or cause the Dissemination Agent to provide, to the Municipal Securities Rulemaking Board through its EMMA System, certain financial information and other operating data on an annual basis no later than nine months after the end of the City’s Fiscal Year (currently March 31 based on the City’s Fiscal Year end of June 30), commencing with the annual report for the Fiscal Year ended June 30, 2025 due no later 45 than March 31, 2026, and to provide notice of certain enumerated events as required by Securities and Exchange Commission Rule 15c2-12(b)(5) under the Securities Exchange Act of 1934, as amended (the “Rule”). The specific nature of the information to be contained in the annual report or the notices of enumerated events is summarized under the caption APPENDIX D—“FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriter in complying with the Rule.

Although the City has covenanted in the Continuing Disclosure Certificate to provide notice of rating changes with respect to the Bonds, information relating to rating changes may be publicly available from the rating agencies prior to such information being provided to the City and prior to the date by which the City is obligated to file a notice of rating change. Owners of the Bonds are directed to the rating agencies and official media outlets for the most current rating information with respect to the Bonds.

Within the last five years, the City has not failed to comply with its continuing disclosure undertakings under the Rule, except: (i) the annual reports for Fiscal Years 2020-21, 2021-22 and 2022-23 filed on EMMA did not include certain operating information relating to the City’s net pension liability; and (ii) the City did not file a notice of the incurrence of a material financial obligation in connection with its execution and delivery of an equipment lease/purchase agreement entered into in December 2023. [The City has made corrective filings on EMMA to address such non-compliance.] [City to confirm]
Except as set forth in the previous paragraph, the City and its affiliated entities have not failed to comply in all material respects with their respective prior continuing disclosure undertakings in the last five years. The City has engaged [____], [____], California, as dissemination agent (in such capacity, the “Dissemination Agent”) and has adopted disclosure policies and procedures to ensure compliance with its continuing disclosure undertakings in the future. [Confirm]

MUNICIPAL ADVISOR
The City has retained Kosmont Financial Services, LLC, Manhattan Beach, California, as municipal advisor (in such capacity, the “Municipal Advisor”) in connection with the issuance and sale of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement.

The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities. Compensation for the Municipal Advisor’s services with respect to the Bondsis entirely contingent upon the sale and delivery of the Bonds.

UNDERWRITING
The Bonds will be purchased by Raymond James & Associates, Inc. (the “Underwriter”) pursuant to a Bond Purchase Agreement, dated the date of this Official Statement (the “Purchase Contract”), by and among the Authority, the City and the Underwriter. Under the Purchase Contract, the Underwriter has agreed to purchase all, but not less than all, of the Bonds for an aggregate purchase price of $__________ (being the principal amount of the Bonds, less Underwriter’s discount of $__________, plus a net original issue premium of $__________). The Purchase Contract provides 46 that the Underwriter will purchase all of the Bonds if any are purchased, the obligation to make such a purchase being subject to certain terms and conditions set forth in the Purchase Contract, the approval of certain legal matters by counsel and certain other conditions.

The initial public offering prices stated on the inside cover page of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices.

NO LITIGATION
The Authority
Concurrently with the delivery of the Bonds, the Authority will certify that, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending of which the Authority has received service of process or, to the knowledge of the Authority, threatened against the Authority seeking to restrain or enjoin the issuance or sale of the Bonds, or in any way contesting or affecting any proceedings of the Authority taken concerning the sale thereof, the pledge or application of any moneys or security provided for the payment of the Bonds, the validity or enforceability of the documents executed by the Authority in connection with the Bonds, the completeness or accuracy of this Official Statement, or the existence or powers of the Authority relating to the sale of the Bonds.

The City
Concurrently with the delivery of the Bonds, the City will certify that, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending of which the City has received service of process or, to the knowledge of the City, threatened against the City, seeking to restrain or enjoin the execution and delivery or issuance of the Bonds, the Trust Agreement or the 2025 Installment Sale Agreement, or in any way contesting or affecting the validity of the foregoing or any proceeding of the City taken with respect to any of the foregoing or that will materially affect the ability of the City to pay its Installment Sale Payments when due. [Various claims and suits are filed against the City in the normal course of business. Although the outcome of pending matters is not presently determinable in the opinion of legal counsel, the resolutions of these matters will not have a material adverse effect on the financial condition of the City.] [City/RWG to confirm]

CERTAIN LEGAL MATTERS
The validity and enforceability of the 2025 Installment Sale Agreement and the Trust Agreement and certain other legal matters are subject to the approving opinion of Anzel Galvan LLP, Bond Counsel to the Authority. A complete copy of the proposed form of Bond Counsel opinion is set forth in Appendix C. Anzel Galvan LLP is not passing upon and undertakes no responsibility for the accuracy, completeness or fairness of the information contained in the Official Statement.

Certain legal matters will be passed upon for the Authority and the City by Anzel Galvan LLP, San Francisco, California, as Disclosure Counsel, for the City by Richards Watson Gershon, PC, Los Angeles, California, its City Attorney, for the Underwriter by Best Best & Krieger LLP, Los Angeles, California, as Underwriter’s Counsel and for the Trustee by its counsel. Bond Counsel, Disclosure 47 Counsel and Underwriter’s Counsel will receive compensation for their legal services provided in connection with the Bonds contingent upon the sale and delivery of the Bonds. From time to time, Anzel Galvan LLP represents the Underwriter on matters unrelated to the Bonds.

AUDITED FINANCIAL STATEMENTS AND MEASURE M COMPLIANCE REPORTS Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024.

The City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2024, is included as Appendix E and contains the audited financial statements of the City, which have been audited by The Pun Group, LLP (the “Auditor”), together with the Auditor’s report thereon dated December 27, 2024. Such audited financial statements have been included herein in reliance upon the report of the Auditor. The City’s financial statements are public documents and are included within this Official Statement without the prior approval of the Auditor. Accordingly, the Auditor has not performed any post-audit review of the financial condition of the City and also has not performed any procedures relating to this Official Statement. The Auditor has not undertaken to update the audited financial statements of the City or its report, or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to its report dated December 27, 2024. See APPENDIX E—“CITY OF PARAMOUNT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.” Annual LACMTA Compliance Audits for Fiscal Year Ended June 30, 2023 LACMTA engages an auditing firm on an annual basis to conduct certain agreed-upon procedures to confirm the status of compliance by each local jurisdiction (including the City) with the requirements set forth in the Measure M Ordinance (the “Compliance Reports”). For the Fiscal Year ended June 30, 2023, the agreed-upon procedures were performed by and the Compliance Reports were prepared and delivered by Simpson & Simpson, LLP (“the Compliance Auditor”). The Compliance Reports for the Fiscal Year ended June 30, 2023 and the letter of the Compliance Auditor dated October 27, 2023 (“Agreed-Upon Procedures Letter”) stating the results of the agreed-upon procedures are included as Appendix F. The City anticipates that LACMTA and its auditor will provide compliance reports for Fiscal Year 2023-24 in or around October 2025.

The Compliance Reports and the Agreed-Upon Procedures Letter have been included herein in reliance upon the report of the Compliance Auditor. The Compliance Reports and the Agreed-Upon Procedures Letter are public documents and are included within this Official Statement without the prior approval of the Compliance Auditor or LACMTA. Accordingly, the Compliance Auditor has not performed any review of the City’s compliance with the Measure M Ordinance subsequent to the date of the Agreed-Upon Procedures Letter and also has not performed any procedures relating to this Official Statement. The Compliance Auditor has not undertaken to update the Compliance Reports or the Agreed-Upon Procedures Letter, and no opinion is expressed by the Compliance Auditor with respect to any event subsequent to its letter dated October 27, 2023. See APPENDIX F—“ANNUAL MEASURE M COMPLIANCE REPORTS FOR THE YEAR ENDED JUNE 30, 2023.”

MISCELLANEOUS
The purpose of this Official Statement is to supply information to prospective buyers of the Bonds. References are made herein to certain documents and reports which are brief summaries 48 thereof which do not purport to be complete or definitive and reference is made to such documents and reports for full and complete statements of the contents thereof. Copies of the Trust Agreement, the 2025 Installment Sale Agreement, and other documents are available, upon request, and upon payment to the City of a charge for copying, mailing and handling, from the City Clerk at the City of Paramount, 16400 Colorado Avenue, Paramount, California 90723.

Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority or the City and the purchasers or Owners of any of the Bonds.

This Official Statement and its distribution have been duly authorized and approved by Authority and the City.

PARAMOUNT PUBLIC FINANCING

AUTHORITY
By:

Executive Director

CITY OF PARAMOUNT
By:

City Manager
A-1

APPENDIX A

SUMMARY OF PRINCIPAL LEGAL DOCUMENTS
The following is a summary of certain provisions of the 2025 Installment Sale Agreement and the Trust Agreement which are not described elsewhere in the Official Statement. This summary does not purport to be comprehensive and reference should be made to the 2025 Installment Sale Agreement and the Trust Agreement for a full and complete statement of their provisions. All capitalized terms not defined in the body of the Official Statement have the meaning set forth in the 2025 Installment Sale Agreement and the Trust Agreement.
[TO COME FROM BOND COUNSEL]
B-1

APPENDIX B

THE CITY OF PARAMOUNT AND THE COUNTY OF LOS ANGELES

ECONOMIC, DEMOGRAPHIC, AND FINANCIAL INFORMATION
The economic and demographic information below is provided as general background.

Although it has been collected from sources that the City considers to be reliable, the City has made no independent verification of the information provided by non-City sources and the City takes no responsibility for the completeness or accuracy thereof. The current state of the economy of the City, the County, the State and the United States of America may not be reflected in the data discussed below, because more up-to-date information is not publicly available.

General
The City of Paramount (the “City”) is located in the County of Los Angeles (the “County”), approximately 15 miles southeast of downtown Los Angeles and encompasses approximately 5 square miles. The area in which the City is situated was first settled in the early 1800s as part of a Spanish land grant. Known in the 1930s as the communities of Hynes and Clearwater, the area was a nationally prominent center of the dairy and hay industries. Hynes-Clearwater joined together under the common name of Paramount in 1948, grew steadily, and in 1957 incorporated as a city. As of January 1, 2025, the City had an estimated population of approximately 53,400.

The County is located in the southern coastal portion of the State of California (the “State”) and covers 4,083 square miles. The County was established under an act of the State Legislature on February 18, 1850. It is the most populous county in the nation and, in terms of population, is larger than 40 states. The economy of the County is diversified and includes manufacturing, technology, world trade, financial services, motion picture and television production, agriculture and tourism.

B-2
Population
The following table presents estimated population statistics for the City, the County and the State for the ten most recent calendar years available.

CITY OF PARATMOUNT, COUNTY OF LOS ANGELES AND

STATE OF CALIFORNIA
POPULATION STATISTICS (1)
Year City of Paramount
County of
Los Angeles State of California
2016 54,453 10,087,542 39,036,749
2017 54,252 10,107,312 39,273,915
2018 54,062 10,107,841 39,429,439
2019 53,780 10,067,476 39,503,656
2020 53,397 10,029,036 39,535,623
2021 53,255 9,966,353 39,369,530
2022 52,728 9,870,212 39,179,680
2023 52,502 9,834,286 39,228,444
2024 52,415 9,848,643 39,420,663
2025 52,371 9,876,811 39,529,101
(1) Estimated as of January 1 with 2020 Census Benchmark.

B-3
Employment
The following table summarizes the labor force, employment and unemployment figures for the years 2019 through 2023 for the City, the County, the State and the nation as a whole.

CITY OF PARATMOUNT, COUNTY OF LOS ANGELES,

STATE OF CALIFORNIA AND UNITED STATES

ESTIMATED AVERAGE ANNUAL EMPLOYMENT AND

UNEMPLOYMENT OF RESIDENT LABOR FORCE
Labor Force Employment Unemployment
Unemployment
Rate
2020
City of Paramount 26,000 22,700 3,300 12.6%
County of Los Angeles 4,972,600 4,363,200 609,400 12.3% State of California 18,956,600 17,039,800 1,916,800 10.1% United States 160,742,000 147,795,000 12,947,000 8.1%
2021
City of Paramount 26,200 23,700 2,500 9.7%
County of Los Angeles 4,999,700 4,551,600 448,100 9.0%
State of California 18,954,600 17,564,900 1,389,700 7.3% United States 161,204,000 152,581,000 8,623,000 5.3%
2022
City of Paramount 25,900 48,700 1,200 5.0%
County of Los Angeles 5,021,800 4,771,700 250,100 5.0%
State of California 19,218,300 18,393,900 824,400 4.3%
United States 164,287,000 158,291,000 5,996,000 3.6%
2023
City of Paramount 25,900 24,700 1,200 4.6%
County of Los Angeles 5,055,300 4,799,000 256,200 5.1%
State of California 19,471,000 18,551,800 919,200 4.7%
United States 167,116,000 161,037,000 6,080,000 3.6%
2024
City of Paramount 26,300 24,700 1,600 5.9%
County of Los Angeles 5,109,800 4,812,600 297,200 5.8%
State of California 19,644,100 18,600,900 1,043,100 5.3% United States 168,106,00 161,346,000 6,761,000 4.0%
Note: Data is not seasonally adjusted.
(1) Annual averages, unless otherwise specified.
(2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.

Source: California Employment Development Department, Labor Market Information Division for City, State and County; United States Department of Labor, Bureau of Labor Statistics for the U.S.

B-4
The following table represents the Annual Average Labor Force and Industry Employment for the County of Los Angeles for the years 2020 through 2024.

COUNTY OF LOS ANGELES

INDUSTRY EMPLOYMENT & LABOR FORCE ANNUAL AVERAGES
2020 2021 2022 2023 2024
Civilian Labor Force 4,972,600 4,999,700 5,021,800 5,055,300 5,109,800 Civilian Employment 4,363,200 4,551,600 4,771,700 4,799,000 4,812,600 Civilian Unemployment 609,400 448,100 250,100 256,200 297,200 Civilian Unemployment Rate 12.3% 9.0% 5.0% 5.1% 5.8%
Total Farm 4,400 4,600 4,800 4,700 4,800
Total Nonfarm 4,168,100 4,305,100 4,532,100 4,549,100 4,589,900 Total Private 3,597,900 3,744,800 3,962,100 3,966,900 3,998,800 Goods Producing 463,700 463,800 474,700 471,300 463,300 Mining, Logging and Construction 148,300 150,700 153,000 152,900 152,500 Manufacturing 315,400 313,100 321,700 318,400 310,800
Service Providing 3,704,400 3,841,300 4,057,400 4,077,700 4,126,600 Private Service Providing 3,134,100 3,281,100 3,487,400 3,495,500 3,535,500 Trade, Transportation, and Utilities 784,600 814,000 833,500 822,900 814,000 Wholesale Trade 201,100 202,600 204,400 200,200 195,300 Retail Trade 375,700 396,100 405,500 404,900 400,100
Transportation, Warehousing, and
Utilities 207,900 215,200 223,600 217,900 218,600
Information 191,100 208,800 234,900 193,100 189,800
Financial Activities 213,200 213,200 215,700 210,900 208,700 Professional and Business Services 601,000 630,800 666,900 656,800 657,800 Private Education and Health
Services 821,700 844,400 871,100 920,300 969,400
Leisure and Hospitality 393,700 434,200 512,400 534,100 537,400 Other Services 128,800 135,700 153,000 157,400 158,400
Government 570,200 560,200 570,000 582,200 591,100
Total, All Industries 4,172,500 4,309,700 4,536,900 4,553,700 4,594,700 Note: Does not include proprietors, self-employed, unpaid volunteers or family workers, domestic workers in households and persons involved in labor-management trade disputes. Employment reported by place of work. Items may not add to total due to independent rounding. The “Total, All Industries” data is not directly comparable to the employment data found in this Appendix A.

Source: State of California, Employment Development Department, Los Angeles-Long Beach-Glendale Metropolitan Division Industry Employment & Labor Force - by Annual Average, March 2024 Benchmark.

B-5
Principal Employers in the City
The following table provides a listing of the ten largest employers based on number of employees in the City as of June 30, 2024.

CITY OF PARAMOUNT

TEN LARGEST EMPLOYERS
AS OF JUNE 30, 2024
Rank Employer
Number of
Employees
Percent of Total
Employment

1. Paramount Unified School District 2,050 17.9%

2. Kindred Hospital / Promise Hospital 445 3.9

3. Wal-Mart Store # 2110 364 3.2

4. Ralphs Grocery #403 362 3.2

5. Weber Metals 342 3.0

6. City of Paramount 356 3.1

7. Carlton Forge Works 244 2.1

8. The Home Depot #1037 207 1.8

9. Affinity Healthcare Center 203 1.8

10. Mediland Corp 165 1.4
Total 4,738 41.4%
Source: City of Paramount Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024.

Largest Industries in the County
The following table shows the largest industries located in the County as of June 30, 2024.

COUNTY OF LOS ANGELES

LARGEST INDUSTRIES
Rank Industry Employees
Percent of
Total

1. Educational & Health Services 947,400 20.62%

2. Trade, Transportation and Utilities 823,100 17.92

3. Professional & Business Services 639,500 13.92

4. Government 600,600 13.07

5. Leisure & Hospitality 550,200 11.98

6. Manufacturing 315,900 6.88

7. Financial Activities 211,200 4.60

8. Information 185,500 4.04

9. Other Services 161,700 3.52

10. Construction 152,000 3.31
Ten largest industries 4,587,100 99.86%
All other industries 6,700 0.14
Total 4,593,800 100.00 %
Source: County of Los Angeles Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024.

B-6
Personal Income
Personal income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors’ income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance.

The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients. The following tables summarize personal income for the City for the ten most recent calendar years available.

CITY OF PARATMOUNT

PERSONAL INCOME
Year Personal Income
Percent
Change
2015 $ 776,609 N/A
2016 830,147 6.9%
2017 849,607 2.3
2018 913,372 7.5
2019 952,036 4.2
2020 985,228 3.5
2021 1,068,985 8.5
2022 1,135,758 6.2
2023 1,239,595 9.1
Source: City of Paramount.

B-7
The following table summarizes per capita personal income for the City, the County, the State and the United States for the years 2014 through 2023. This measure of income is calculated as the personal income of the residents of the area divided by the resident population of the area.

CITY OF PARAMOUNT, COUNTY OF LOS ANGELES,

STATE OF CALIFORNIA AND THE UNITED STATES
PER CAPITA PERSONAL INCOME (1)
Year
City of
Paramount
County of
Los Angeles California United States
2014 $14,316 $50,047 $50,617 $46,289
2015 13,769 53,061 53,816 48,062
2016 14,844 54,742 55,862 48,974
2017 15,171 56,627 58,214 51,006
2018 16,458 58,994 60,984 53,311
2019 17,165 62,591 64,219 55,567
2020 17,848 67,904 70,098 59,144
2021 20,370 73,343 76,882 64,450
2022 21,766 74,378 76,941 66,096
2023 23,768 78,302 81,255 69,418
(1) All dollar estimates are in thousands of current dollars (not adjusted for inflation).

Source: City of Paramount for City; U.S. Department of Commerce, Bureau of Economic Analysis for County of Los Angeles, State of California (last updated February 20, 2025), and United States (last updated March 28, 2025).

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Retail Sales
Commercial activity is an important contributor to the City’s economy. The following table shows taxable sales within the City for the five most recent calendar years available.

CITY OF PARAMOUNT
TAXABLE TRANSACTIONS BY TYPE OF BUSINESS (1)
Business Type 2020 2021 2022 2023 2024
Retail and Food Services
Motor Vehicle and Parts Dealers $15,924 $20,237 $21,181 $20,473 $19,320 Home Furnishings and Appliance
Stores 3,827 5,913 4,838 5,543 7,122
Building Material and Garden
Equipment and Supplies Dealers 106,139 118,984 121,904 132,281 133,488 Food and Beverage Stores 47,109 53,451 60,495 56,959 55,308 Gasoline Stations 49,684 85,543 116,338 110,669 104,002 Clothing and Clothing Accessories
Stores 18,200 27,131 27,679 29,822 28,803
General Merchandise Stores 71,409 74,097 74,456 70,926 63,292 Food Services and Drinking Places 71,309 83,270 92,576 97,997 96,886 Other Retail Group 23,991 31,124 36,057 36,346 32,552
Total Retail and Food Services $407,594 $499,750 $555,524 $561,014 $540,772 All Other Outlets 267,050 328,626 426,560 471,481 376,751 Total All Outlets $674,644 $828,376 $982,084 $1,032,495 $917,523 (1) Presented in thousands of dollars.

Note: Numbers may not sum due to rounding.

Source: California Department of Tax and Fee Administration.

The table below present taxable sales for County for the five most recent calendar years available.

COUNTY OF LOS ANGELES

TAXABLE SALES
Year Permits
Taxable
Transactions (1)
2020 352,037 $157,737,984
2021 325,896 192,524,203
2022 330,667 213,716,609
2023 320,347 208,502,835
2024 322,528 205,810,069
(1) Presented in thousands of dollars.

Note: Numbers may not sum due to rounding.

Source: California Department of Tax and Fee Administration.

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Retail sales and commercial activity are an important contributor to the County’s economy.

The table below present taxable transactions for the five most recent calendar years available.

COUNTY OF LOS ANGELES
TAXABLE TRANSACTIONS BY TYPE OF BUSINESS (1)
Business Type 2020 2021 2022 2023 2024
Retail and Food Services
Motor Vehicle and Parts Dealers $18,534,326 $23,563,565 $25,275,154 $23,452,327 $22,342,073 Home Furnishings and
Appliance Stores 6,608,482 8,191,431 7,731,033 6,977,305 6,828,450 Building Material and Garden
Equipment and Supplies Dealers 9,556,946 10,456,967 11,019,289 10,678,778 10,598,631 Food and Beverage Stores 7,650,294 7,870,932 8,267,219 8,344,482 8,470,793 Gasoline Stations 8,132,307 12,411,546 16,168,371 14,257,027 13,272,921 Clothing and Clothing
Accessories Stores 9,498,705 13,981,731 14,430,221 14,020,074 14,129,936 General Merchandise Stores 12,263,784 14,456,029 15,079,135 14,523,909 14,407,505 Food Services and Drinking
Places 17,006,158 23,626,065 28,099,665 29,529,326 30,112,124 Other Retail Group 24,164,972 24,442,108 24,552,535 24,380,861 23,658,601 Total Retail and Food Services $113,415,974 $139,000,373 $150,622,624 $146,164,088 $143,821,035 All Other Outlets 44,322,010 53,523,830 63,093,986 62,338,747 61,989,033 Total All Outlets $157,737,984 $192,524,203 $213,716,609 $208,502,835 $205,810,069 (1) Presented in thousands of dollars.

Note: Numbers may not sum due to rounding.

Source: California Department of Tax and Fee Administration.

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APPENDIX C

PROPOSED FORM OF BOND COUNSEL OPINION
Upon issuance of Bonds, Anzel Galvan LLP, Bond Counsel, proposes to render its final approving opinions with respect to the Bonds in substantially the following forms:
[Closing Date]
Paramount Public Financing Authority
Paramount, California
Re: $______ Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025
Ladies and Gentlemen:

We have acted as bond counsel to the Paramount Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of $______ Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025 (the “Bonds”), pursuant to the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the California Government Code, and pursuant to a Trust Agreement, dated as of September 1, 2025 (the “Trust Agreement”), by and among the Authority, the City of Paramount, California (the “City”) and UMB Bank, National Association, as Trustee. The Bonds will be payable from and secured by installment sale payments to be made by the City pursuant to the Installment Sale Agreement, dated as of September 1, 2025 (the “Installment Sale Agreement”), by and between the City and the Authority.

Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Trust Agreement or, if not defined in the Trust Agreement, in the Installment Sale Agreement.

In our capacity as bond counsel, we have examined such law and such certified proceedings, certifications, opinions and other documents as we have deemed necessary to render this opinion. In rendering this opinion, we have relied upon certain representations of fact and certifications made by the Authority, the City and others. We have not undertaken to verify through independent investigation the accuracy of the representations and certifications relied upon by us. Regarding certain questions of law material to our opinion, we have assumed the correctness of certain legal conclusions contained in the written opinions of the City Attorney as general counsel to the Authority, without undertaking to verify the same by independent investigation.

We have assumed the genuineness of all documents and signatures presented to us, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions referred to in the preceding paragraph of this opinion. Furthermore, we have assumed compliance with all covenants and agreements contained in the Bonds, the Trust Agreement and the Installment Sale Agreement.

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Based upon our examination of the foregoing, and in reliance thereon, we are of the opinion, under existing law, that:

1. The Bonds constitute the valid and binding limited obligations of the Authority.

2. The Trust Agreement has been duly executed and delivered by, and constitutes the valid and binding agreement of, the Authority and the City. The Trust Agreement creates a valid pledge, to secure the payment of the principal of and interest on the Bonds, of the Revenues and the other assets pledged therefor under the Trust Agreement, subject to the provisions of the Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth in the Trust Agreement.

3. The Installment Sale Agreement has been duly executed and delivered by, and constitutes the valid and binding agreement of, the Authority and the City.

4. The obligation of the City to pay the 2025 Installment Sale Payments, and other payments required to be made by it under the Installment Sale Agreement is a special obligation of the City payable, in the manner provided in the Installment Sale Agreement, solely from Measure M Receipts and other funds provided for in the Installment Sale Agreement lawfully available therefor.

5. Interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, interest on the Bonds is taken into account in determining annual adjusted financial statement income for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in the preceding sentence is subject to the condition that the Authority and the City must comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the date hereof in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The Authority and the City have covenanted to comply with all applicable requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to the date hereof.

6. Interest on the Bonds is exempt from personal income taxation imposed by the State of California.

Except as expressly stated in paragraphs 5 and 6, we express no opinion regarding any tax consequences related to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on, the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds.

Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. The rights of the owners of the Bonds and the enforceability of the Bonds, the Trust Agreement and the Installment Sale Agreement are limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws affecting creditors’ rights, by the application of equitable principles, whether considered at law or in equity, and the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against public agencies in the State of California and laws relating to conflicts of interest.

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We express no opinion as to any provision in the Bonds, the Trust Agreement or the Installment Sale Agreement with respect to the indemnification, contribution, liquidated damages, penalty (including any remedy deemed to constitute a penalty), right of set-off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non-exclusivity of remedies, waiver or severability provisions contained therein, nor are we expressing any opinion with respect to the state or quality of title to or interest in any assets described in or as subject to the lien of the Trust Agreement and the Installment Sale Agreement or the accuracy or sufficiency of the description contained therein of, or the remedies available to enforce liens on any assets thereunder.

We also express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and expressly disclaim any duty to advise the owners of the Bonds with respect to matters contained in the Official Statement or other offering material.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result and are not binding on the Internal Revenue Service or any court; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations, opinions, and covenants referenced above. Our engagement with respect to this matter has terminated as of the date hereof.

Respectfully submitted,
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APPENDIX D

FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the City of Paramount (the “City”) in connection with the issuance by the City of $_______ Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025, (the “Bonds”). The Bonds are being issued pursuant to the Trust Agreement, dated as of [September] 1, 2025 (the “Trust Agreement”), by and among the Paramount Public Financing Authority (the “Authority”), UMB Bank, National Association, as trustee (the “Trustee”), and the City, in order to provide funds to finance the acquisition, construction and improvement of certain transportation improvements within the jurisdiction of the City. The City covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Holders of the Bonds and to assist the Participating Underwriter in complying with SEC Rule 15c2-12(b)(5).

Section 2. Definitions. In addition to the definitions set forth in the Trust Agreement and in the 2025 Installment Sale Agreement, dated as of [September] 1, 2025 (the “2025 Installment Sale Agreement”), by and between the Authority and the City, which apply to any capitalized terms used in this Disclosure Certificate, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” shall mean March 31 of each year.
“Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.
“Dissemination Agent” shall mean [___________], or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Holders” shall mean, while the Bonds are registered in the name of The Depository Trust Company, any applicable participant in its depository system, or the Owner of any Bond for Federal income tax purposes.
“Listed Events” shall mean any of the events listed in Section 5(a) or 5(b) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future.

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“Official Statement” means the Official Statement dated ___________, 2025, relating to the Bonds.
“Participating Underwriter” shall mean Raymond James & Associates, Inc., the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” shall mean Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time.
“SEC” shall mean the Securities and Exchange Commission.

Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, no later than each Annual Report Date, commencing March 31, 2026, with the report for Fiscal Year 2024-25, provide to the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate. The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.
(b) Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. If the City is unable to provide to MSRB an Annual Report by the date required in subsection (a), the City will send a notice to the MSRB in substantially the form attached as Exhibit A.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports. Each Annual Report shall contain or incorporate by reference the following:
(a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the D-3
Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) The following information with respect to the City and the Bonds for the fiscal year to which the Annual Report relates, which information may be provided by its inclusion in the audited financial statements of the City for such fiscal year described in subsection (a) above:
(i) Description of any debt issued or incurred by the City payable from or secured by a pledge of Measure M Receipts (as defined in the Official Statement) in the most recently completed fiscal year only (including details as to date, amount, term, rating, insurance). (ii) The total amount of Measure M Revenues generated during the most recently completed fiscal year only, in the form of Table 1 (Los Angeles County Metropolitan Transportation Authority Measure M Revenues) in the Official Statement or any similar table prepared by LACMTA to report annual Measure M Revenues. The City shall have no obligation to prepare an update to this table unless the information is provided in the annual audited financial statements of the Measure M Fund maintained by the County Auditor-Controller for LACMTA. (iii) An update to Table 2 (City of Paramount Measure M Fund Balance Sheet) in the Official Statement for the most recently completed fiscal year only. (iv) An update to Table 3 (City of Measure M Fund Statement of Revenues, Expenditures and Changes in Fund Balances) in the Official Statement for the most recently completed fiscal year only.
(v) The coverage ratio provided by Measure M Revenues with respect to maximum annual Installment Sale Payments and the maximum annual installment sale payments or debt service payments under any Additional Contracts for the most recently completed fiscal year only, in the form of Table 4 (Maximum Annual Debt Service Coverage) in the Official Statement.

The City is not required to prepare projections or estimates of Measure M Revenues or Measure M Receipts in connection with preparation of the Annual Report. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The City shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.

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(4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds.
(7) Modifications to rights of holders of the Bonds, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the Bonds, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or the Authority.
(13) The consummation of a merger, consolidation, or acquisition involving the City or the Authority, or the sale of all or substantially all of the assets of the City or the Authority (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.
(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect Bond holders, if material. (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties.
(b) Upon the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)15 of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent D-5
that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Upon the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City or the Authority, as applicable, in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City or the Authority, as applicable, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City or the Authority, as applicable. (e) For purposes of the events identified in paragraphs (a)(15) and (a)(16) above, the term “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

Section 6. Termination of Reporting Obligation. The City’s obligation under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).

Section 7. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Certificate.

Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Trust Agreement for amendments to the Trust Agreement with D-6
the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

The City acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule 10b-5, promulgated under the Securities and Exchange Act of 1934, may apply to the City, and that under some circumstances compliance with this Disclosure Certificate, without additional disclosures or other such action, may not fully discharge all duties and obligations of the City under such laws.

Section 10. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, the sole legal remedy of any Holder or Beneficial Owner of the Bonds or the Participating Underwriter shall be an action to compel performance. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Trust Agreement.

No Bondholder or Beneficial Owner may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time.

Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and D-7
agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and Holders from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 13. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

Dated: CITY OF PARAMOUNT
By:

City Manager
Acknowledged as to Duties as Dissemination Agent:
[___________]
By:_______________________________________
Authorized Officer
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EXHIBIT A

NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Obligor: City of Paramount
Name of Bonds: Paramount Public Financing Authority Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025
Date of Execution and Delivery:

NOTICE IS HEREBY GIVEN that the City of Paramount, California (the “City”) has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Certificate, dated ____________, 2025. The City anticipates that the Annual Report will be filed by __________________.

Dated:

CITY OF PARAMOUNT
By:

Authorized Signatory
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APPENDIX E

CITY OF PARAMOUNT

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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APPENDIX F

ANNUAL MEASURE M COMPLIANCE REPORTS
FOR THE YEAR ENDED JUNE 30, 2024
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APPENDIX G

BOOK ENTRY PROVISIONS
The following description of DTC, the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.

Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Neither the issuer of the Bonds (the “Issuer”) nor the trustee, fiscal agent or paying agent appointed with respect to the Bonds (the “Agent”) take any responsibility for the information contained in this Appendix.

No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the bonds (the “Bonds”). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade G-2
settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.

Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. The information contained on this Internet site is not incorporated herein by reference.

3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

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6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered.

10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC.

11. The information in this Section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.

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APPENDIX H

FORM OF MUNICIPAL BOND INSURANCE POLICY

CITY OF PARAMOUNT,

CALIFORNIA

DISCLOSURE POLICIES AND PROCEDURES
Article I
General
Section 1.01 Purpose. These Disclosure Policies and Procedures (the “Disclosure Procedures”) of the City of Paramount, California (as further defined below, the “City”) are dated as of August 12, 2025, and are intended to ensure that the City’s Disclosure Documents (the “Disclosure Documents”), as listed on Exhibit A to these Disclosure Procedures are accurate and comply with all applicable federal and state securities laws.

Section 1.02 Definition of City. For purposes of these Disclosure Procedures, the “City” shall mean the City of Paramount, California, and those independent agencies, joint power authorities (including the Paramount Public Financing Authority), special districts, component units, or other entities created by the City Council or by State law for which the City Council serves as the governing or legislative body, or for which at least one City officer serves as a member of the governing or legislative body in his or her official capacity and the City has agreed to provide initial or continuing disclosure in connection with the issuance of securities.

Article II
Key Participants and Responsibilities
Section 2.01. Disclosure Working Group.
(A) Composition. By adoption of these Disclosure Procedures, the City hereby establishes a disclosure working group (the “Disclosure Working Group”). The members of the Disclosure Working Group shall be the following:
i. City Manager;
ii. Assistant City Manager
iii. Finance Director; and
iv. City Attorney;
(B) Responsibilities. The Disclosure Working Group shall consult with the Financing Group (as defined in Section 2.04) or other interested parties as the Finance Director or any other member of the Disclosure Working Group determines is advisable related to disclosure issues and practices. The Disclosure Working Group shall meet as often as necessary to fulfill its obligations, but not less than once per calendar year. Members of the Disclosure Working Group may participate in meetings by telephone or video conference.

The Disclosure Working Group is an internal working group of City staff and not a decision-making or advisory body subject to the provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.).
2 The Disclosure Working Group is responsible for:
i. Reviewing and approving all preliminary and final official statements, private placement memoranda and remarketing memoranda relating to the City’s securities, together with any supplements, for which a continuing disclosure undertaking is required (each, an “Official Statement”) as further described in Article III, before such documents are released; ii. Reviewing and approving the City’s Financial Statements (as defined and further described in section 4.02 below);
iii. Reviewing and approving any other Disclosure Documents before such documents are released;
iv. Reviewing annually the City’s status and compliance with continuing disclosure undertakings including filings of Disclosure Documents and compliance with these Disclosure Procedures and the annual report as described in Article IV below;
v. Reviewing any other items referred to the Disclosure Working Group; and vi. Evaluating the effectiveness of these Disclosure Procedures and approving changes to these Disclosure Procedures.
(C) Determination of Disclosure Document Status. Whether or not a particular document or other communication is a Disclosure Document shall be determined by the Disclosure Working Group. At its initial meeting, the Disclosure Working Group shall establish a list of the City’s recurring Disclosure Documents, which list shall be added to Exhibit A to these Disclosure Procedures to the extent such documents are not already contained therein. The Disclosure Working Group shall continue to update Exhibit A to these Disclosure Procedures when appropriate.
(D) Review and Approval. Following receipt of a Disclosure Document from a disclosure coordinator selected by the Financing Director (the “Disclosure Coordinator”) or the Financing Group (as defined in Section 2.03 below), the Disclosure Working Group shall evaluate the Disclosure Document for accuracy and compliance with federal and state securities laws, and shall, if appropriate, ask questions of the Disclosure Coordinator. The Disclosure Working Group may send the Disclosure Document back to the Financing Group for revisions.

The Disclosure Coordinator shall consult with the City’s disclosure counsel to the extent the Disclosure Coordinator considers appropriate to perform their responsibilities.

Section 2.02. Disclosure Coordinator.
(A) Appointment. The Finance Director, in consultation with the other members of the Disclosure Working Group, shall select and appoint the Disclosure Coordinator. 3 (B) Responsibilities. The Disclosure Coordinator is responsible for:
i. Serving as a “point person” for personnel to communicate issues or information that should be or may need to be included in any Disclosure Document;
ii. Monitoring compliance by the City with these Disclosure Procedures, including timely dissemination of the annual report and Listed Event filings;
iii. Recommending changes to these Disclosure Procedures to the Disclosure Working Group as necessary or appropriate;
iv. Communicating with third parties, including coordination with outside consultants assisting the City, in the preparation and dissemination of Disclosure Documents to make sure that assigned tasks have been completed on a timely basis and making sure that the filings are made on a timely basis and are accurate;
v. In anticipation of preparing Disclosure Documents, soliciting “material” information (as defined for purposes of federal securities law) from City departments;
vi. Maintaining records documenting the City’s compliance with these Disclosure Procedures;
vii. Determining when Disclosure Documents are final and ready for review by the Disclosure Working Group to the extent required by these Disclosure Procedures; and
viii. Ensuring compliance with training procedures as described below.

The Disclosure Coordinator may file the following documents with the Municipal Securities Rulemaking Board (the “MSRB”) without prior review and approval of the Disclosure Working Group: those Disclosure Documents that (i) the City is contractually obligated to file with the MSRB as a result of the occurrence of a Listed Event (as defined in Section 3.03) or as a result of the timely failure to file the required annual report and (ii) contain no discretionary content. (C) Training. Separate training sessions shall be conducted for City Council members on a periodic basis. Such trainings may be conducted by the California Debt and Investment Advisory Commission, the City’s disclosure counsel or other appropriate party. Such training sessions shall include education on the City’s disclosure obligations under applicable federal and state securities laws and the disclosure responsibilities and potential liabilities of members of City staff and members of the City Council. Such training sessions may be conducted using a recorded presentation or written documentation. Each City Council member must participate in a disclosure training session as part of his or her new member orientation.
4 Section 2.03. Financing Group.

General. The Finance Director shall identify a Financing Group (the “Financing Group”) for each financing (the composition of which may differ for each financing), which shall include, at a minimum, the following individuals:
i. City Attorney (or a deputy City Attorney designated by the City Attorney);
ii. Finance Director;
iii. The City’s outside bond counsel and disclosure counsel; iv. The City’s financial advisor (if any);
v. The City’s underwriter (if any); and
vi. Such other members of the Disclosure Working Group as the Finance Director determines to be appropriate.

It is the City’s policy to establish continuing working relationships with professional advisors with expertise in the area of public finance and federal securities laws applicable to the issuance of securities by the City.

Article III
Review and Approval of Official Statements
Section 3.01. Responsibilities of Financing Group. The Financing Group shall prepare the Official Statement and transmit the Official Statement to the Disclosure Working Group.

More specifically:
(i) The Financing Group shall be responsible for soliciting “material” information (as defined for purposes of federal securities law) from City departments. The Financing Group shall identify persons assigned to assist with the review or preparation of an Official Statement (“Contributors”) who (a) should prepare portions of the Official Statement, (b) may have information necessary to prepare portions of the Official Statement or (c) should review portions of the Official Statement.
(ii) The Finance Director shall contact the individuals and departments identified as Contributors as soon as possible to provide adequate time for them to perform their assigned tasks. At the time a Contributor is first contacted, he or she shall be informed by the Finance Director of the applicable requirements of federal securities law, including the standard established by Rule 10b-5, promulgated by the Securities and Exchange Commission.
(iii) The Financing Group shall transmit the Official Statement to the Disclosure Working Group, using the cover letter attached to these Disclosure Procedures as Exhibit D to these Disclosure Procedures. In so doing, the Financing Group shall 5 (a) confirm that the Official Statement accurately states all material information relating to the City and that all information relating to the City has been critically reviewed by an appropriate person, (b) confirm that all information in the Official Statement other than the information described in the previous clause (a) will be addressed by a closing certificate or opinion by an appropriate person, (c) report any significant disclosure issues and concerns to the Disclosure Working Group and (d) confirm that the Official Statement is in substantially final form and is in a form ready to be “deemed final” by the City Council pursuant to Rule 15c2-12, promulgated by the Securities and Exchange Commission.
(iv) The Financing Group shall have at least one all-hands meeting (which may be in person, by telephone or via video conferencing) to review the Official Statement before transmitting it to the Disclosure Working Group.

Section 3.02. Responsibilities of Contributors. A Contributor shall assist in reviewing and preparing the Official Statement using his or her knowledge of the City and, if appropriate, by discussing the Official Statement with other members of the Contributor’s department, all for the purpose of ensuring the accuracy of the relevant portions of the Official Statement. The Financing Group shall identify all Contributors that participated in preparing the Official Statement in the cover letter it uses to transmit the Official Statement to the Disclosure Working Group (see Exhibit D to these Disclosure Procedures).

Section 3.03. Responsibilities of City Attorney. The City Attorney (or a designee) shall review the Official Statement and shall draft for the Official Statement descriptions of (i) any material current, pending or threatened litigation, (ii) any material settlements or court orders and (iii) any other legal issues that are material information for purposes of the Official Statement.

Section 3.04. Responsibilities of Finance Director. The Finance Director shall review the Official Statement, identify any material difference in presentation of financial information from the Financial Statements and ensure there are no misstatements or omissions of material information in any sections that contain descriptions of information prepared by the Finance Director (or the Finance Director’s staff) or of relevance to the finances of the City.

In addition, the Finance Director shall determine whether the City’s then-available Financial Statements are appropriate to be included in the Official Statement and whether to seek the consent of the City’s auditor to including the Financial Statements in the Official Statement.

Section 3.05. Review by Disclosure Working Group. Following receipt of the Official Statement from the Financing Group, the Disclosure Working Group shall critically evaluate the Official Statement for accuracy and compliance with federal and state securities laws, and shall, if appropriate, ask questions of the Financing Group and of any Contributor or other person who reviewed or drafted any section of the Official Statement. The Disclosure Working Group may send Official Statements back to the Financing Group for revisions and may instruct the Financing Group to solicit contributions from additional Contributors
Section 3.06. Approval by Disclosure Working Group. Upon approval of the Official Statement by the Disclosure Working Group, the Disclosure Working Group shall attach to the Official Statement a cover sheet in the form of Exhibit C to these Disclosure Procedures. Each Official 6 Statement and the attached cover sheet shall be retained in the files of the City Clerk for 5 years (or such longer period of time as may be required by state law).

Section 3.07. Submission of Official Statements to City Council for Approval. As part of the docketing process, the City Manager shall submit all Official Statements to the City Council for approval using a staff report that is similar in form and substance to the template attached as Exhibit E to these Disclosure Procedures. The approval of an Official Statement by the City Council shall be docketed as a new business matter and shall not be approved as a consent item. The City Council shall undertake such review as deemed necessary by the City Council, following consultation with the Disclosure Coordinator, to fulfill the City Council’s responsibilities under applicable federal and state securities laws. In this regard, the Disclosure Coordinator shall consult with the City’s disclosure counsel to the extent the Disclosure Coordinator considers appropriate.

Article IV
Continuing Disclosure Filings
Section 4.01. Overview. Under the continuing disclosure undertakings the City has entered into in connection with its debt offerings, the City is required each year to file annual reports with the MSRB’s Electronic Municipal Market Access (“EMMA”) system in accordance with such undertakings. Such annual reports are required to include certain updated financial and operating information, and the City’s audited financial statements. The City is also required under its continuing disclosure undertakings to file notices of certain events with EMMA.

Section 4.02. Financial Statements. The Finance Director shall submit draft audited financial statements (“Financial Statements”) meaning the City’s Annual Comprehensive Financial Report (the “ACFR”) or if the City does not prepare an ACFR, the City’s audited financial statements, as they are available, to the Disclosure Working Group with a cover sheet in the form of Exhibit F to these Disclosure Procedures. The Disclosure Working Group shall review the draft audited Financial Statements according to these Disclosure Procedures and, when reviewed and approved for disclosure, shall transmit the draft audited Financial Statements to the City Council with a cover sheet in the form of Exhibit C to these Disclosure Procedures. If the City does not have audited Financial Statements available, the Finance Director shall instead submit the City’s unaudited financial statements.

Section 4.03. Annual Reports. The Disclosure Coordinator shall ensure that the preparation of the City’s annual reports shall commence as required under each specific continuing disclosure undertaking. Before any report is submitted to EMMA, the Disclosure Coordinator shall confer with the Disclosure Working Group as needed regarding the content and accuracy of any such annual report.

Section 4.04. Disclosure of Listed Events. Pursuant to Rule 15c2-12(b)(5)(i)(C), the City is obligated to disclose to the MSRB notice of certain specified events with respect to the City’s securities (a “Listed Event”). Each member of the Disclosure Working Group shall notify the other members of the Disclosure Working Group if he or she becomes aware of any of the Listed Events listed in the City’s continuing disclosure undertakings. The Disclosure Working Group may meet to discuss the event and to determine, in consultation with disclosure counsel to the extent determined by the Disclosure Coordinator, whether a filing is required or is otherwise desirable. If such a filing is deemed necessary, the Disclosure Coordinator shall cause a notice of the Listed Event (a “Listed Event Notice”) that complies with Rule 15c2-12 to be prepared, and the Disclosure Coordinator shall file the Listed Event Notice as required by Rule 15c2-12.
7 Article V
Public Statements Regarding Financial Information
Section 5.01. Financial Information. Whenever the City makes statements or releases information relating to its finances to the public that are reasonably expected to reach investors and the trading markets (including, without limitation, all Listed Event Notices, statements in the audited Financial Statements, and other financial reports and statements of the City), the City is obligated to ensure that such statements and information are complete, true, and accurate in all material respects.

Article VI
Miscellaneous
Section 6.01. Documents to be Retained. The Disclosure Coordinator shall be responsible for retaining records demonstrating compliance with these Disclosure Procedures. The Disclosure Coordinator shall retain an electronic or paper file (“Transaction File”) for each continuing disclosure annual report that the City completes. Each Transaction File shall include final versions of Disclosure Documents accompanied by the cover sheet attached as Exhibit C to these Disclosure Procedures; written confirmations, certifications, letters and legal opinions described herein; copies of these Disclosure Procedures and a list of individuals to whom they have been distributed and the dates of such distributions; and a written record of the dates of meetings of the Disclosure Working Group. The Transaction File shall be maintained in a central depository for a period of five years from the later of the date of delivery of the securities referenced in the Disclosure Document, or the date the Disclosure Document is published, posted, or otherwise made publicly available, as applicable.

Section 6.02. Education and Training. The Disclosure Coordinator shall ensure that the Disclosure Working Group, all Contributors, and the City Council are properly trained to understand and perform their responsibilities.

The Disclosure Coordinator shall arrange for at least annual disclosure training sessions conducted by the California Debt and Investment Advisory Commission, the City’s disclosure counsel or other appropriate party. Such training sessions shall include education on these Disclosure Procedures, the City’s disclosure obligations under applicable federal and state securities laws and the disclosure responsibilities and potential liabilities of members of City staff and members of the City Council. Such training sessions may be conducted using a recorded presentation or written documentation.

Section 6.03. City’s Website. The Disclosure Coordinator may, in consultation with the City’s disclosure counsel and City Attorney, determine that the City shall maintain an investor information section of the City’s website. If so determined, Disclosure Documents that are material to the City’s securities, and no other information, shall be posted to the investor information section of the City’s website following review and approval as set forth in this Section 6.03. The investor information of the City’s website shall include the following statement:
“The only information on this Web site that is posted with the intention of reaching the investing public, including bondholders, rating analysts, investment advisors, or any other members of the investment community, is located on the investor information web pages. Other than the specific information presented in the investor information web pages, no other information on the City’s website is intended to be the basis of or should be relied upon in making an investment decision. Because each security issued 8 by the City or its related entities may involve different sources of payment and security, you should refer for additional information to the official statement and continuing disclosure filings for the particular security. The information posted in the investor information web pages speaks only as of its date.”
Section 6.04. Amendments. Any provision of these Disclosure Procedures may be waived or amended at any time by written confirmation of the members of the Disclosure Working Group.

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EXHIBIT A

DISCLOSURE DOCUMENTS

1. Preliminary and final official statements, private placement memoranda and remarketing memoranda relating to the City’s securities, together with any supplements.

2. Financial Statements.

3. Filings made by the City with the MSRB, whether made pursuant to a continuing disclosure undertaking to which the City is a party or otherwise.

4. Press releases and other information distributed by the City for public dissemination to the extent that such releases are reasonably expected, in the determination of the Disclosure Working Group, to reach investors and the trading markets for municipal securities.

5. Rating agency presentations.

6. Postings on the investor information section of the City’s website.

7. Such portions of the City’s published adopted annual budget as the Disclosure Working Group determines to be appropriate, which shall at a minimum include the executive summary.

8. Any other communications that are reasonably expected, in the determination of the Disclosure Working Group, to reach investors and the trading markets for municipal securities.

B-1

EXHIBIT B

LISTED EVENTS
The Disclosure Coordinator should review this list at least once each week to determine whether any event has occurred that may require a filing with EMMA. (a) The City (as previously defined in these Disclosure Policies) shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the applicable security (hereinafter referred to as the “Bonds”):
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds.
(7) Modifications to rights of holders of the Bonds, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the Bonds, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City. (13) The consummation of a merger, consolidation, or acquisition involving the City, or the sale of all or substantially all of the assets of the City (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect Bond holders, if material.

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(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties.
(b) Upon the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)15 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Upon the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. (d) Any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
(e) For purposes of the events identified in paragraphs (a)(15) and (a)(16) above, the term “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

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EXHIBIT C

COVER SHEET DOCUMENTING

APPROVAL OF DISCLOSURE DOCUMENT

BY DISCLOSURE WORKING GROUP
Date:
[Option #1] The attached Disclosure Document has been reviewed and approved by the Disclosure Working Group pursuant to the City’s Disclosure Policies and Procedures.

City Manager
Assistant City Manager
Finance Director
City Attorney
Note: The approval of only the Disclosure Coordinator is required for Disclosure Documents that (i) the City is contractually obligated to file with the MSRB as a result of the occurrence of a Listed Event or as a result of the failure to file the required annual report on a timely basis or (ii) contain no discretionary content.
[Option #2] The attached Disclosure Document has been reviewed and approved by the Disclosure Coordinator pursuant to the City’s Disclosure Policies and Procedures.

Disclosure Coordinator
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EXHIBIT D

FORM OF COVER LETTER FOR

TRANSMITTAL OF OFFICIAL

STATEMENT BY FINANCING GROUP

TO DISCLOSURE WORKING GROUP
Disclosure Working Group:

With respect to the attached [Official Statement/Offering Memorandum/Remarketing Memorandum]:
(i) the Financing Group has performed its responsibilities set forth in subsection iii. of Section

3.01 of the Disclosure Policies and Procedures;
(ii) the members of the Financing Group and the Contributors to the [Official Statement/Offering Memorandum/Remarketing Memorandum] are listed below; (iii) the [Official Statement/Offering Memorandum/Remarketing Memorandum] accurately reports all material information relating to the City, and all information relating to the City has been critically reviewed by an appropriate person; and
(iv) all information in the [Official Statement/Offering Memorandum/Remarketing Memorandum], other than the information described in the previous clause (iii) will be addressed by an appropriate person in a closing certificate or opinion and (iv) [Option #1: in our judgment, the [Official Statement/Offering Memorandum/Remarketing Memorandum] is in substantially final form and ready for review by the Disclosure Working Group] [Option #2: the following are significant disclosure issues or concerns identified by the Financing Group].

Finance Director
Members of Financing Group:
[to come]
Contributors:
[to come]
E-1

EXHIBIT E

FORM OF STAFF REPORT TRANSMITTING

OFFICIAL STATEMENT BY CITY MANAGER TO CITY COUNCIL
To: Members of the City Council
From: City Manager
Date: __________________
This Staff Report relates to the proposed issuance of ______ (the “Obligations”) by the City.

The City Council is asked to approve issuance of the Obligations and all related documents. The nearfinal versions of these documents are attached.

With the assistance of the financing team, City staff have prepared a form of Preliminary Official Statement to be used in connection with the offering and sale of the Obligations. The POS will be distributed to prospective purchasers of the Obligations.

The attached Preliminary Official Statement has been reviewed and approved for transmittal to the City Council by the City’s Disclosure Working Group. The distribution of the Preliminary Official Statement by the City is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts that would be material to an investor in the Obligations. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Obligations. If the City Council concludes that the Preliminary Official Statement includes all facts that would be material to an investor in the Obligations, it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary Official Statement has been “deemed final.” The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the City’s compliance with the federal securities laws, has issued guidance as to the duties of the City Council with respect to its approval of the Preliminary Official Statement. If a member of the City Council has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the Obligations, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the Preliminary Official Statement. The SEC has indicated that the steps that a member of the City Council could take include becoming familiar with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such facts.

Section 1. Purpose of Financing.

Section 2. Documents for Approval; Security for the Obligations.

Section 3. Risks Relating to Repayment and Tax-Exempt Status of the Obligations.

Section 4. Requested Approvals.

F-1

EXHIBIT F

FORM OF COVER LETTER FOR

TRANSMITTAL OF FINANCIAL STATEMENTS

TO DISCLOSURE WORKING GROUP
Disclosure Working Group:

I attach the City’s financial statements as of June 30, ____, along with an opinion of our independent auditor. I believe the financial statements present fairly, in all material respects, the financial position of the City as of June 30, ____ in accordance with accounting principles generally accepted in the United States of America and applicable laws and regulations of the State of California.

In addition, the financial statements include a [Management Discussion and Analysis section] and certain supplementary schedules that I conclude are true and accurate. These Financial Statements are ready for review by the Disclosure Working Group pursuant to Section 4.02 of the Disclosure Procedures.

Finance Director
To: Honorable City Council
From: John Moreno, City Manager
By: Grissel Chavez, Assistant City Manager
Andres Gonzalez, Management Analyst
Date: August 12, 2025
SUBJECT: AGREEMENT WITH END POINT WIRELESS FOR A CITYWIDE

SECURITY SYSTEM AND SECOND AMENDMENT TO AGREEMENT

WITH INFINITY TECHNOLOGIES FOR PROJECT MANAGEMENT AND

IMPLEMENTATION

BACKGROUND
Due to its aging condition, the existing security system at our City facilities is inefficient, and not fully functional. The current setup lacks integration between its various components, resulting in significant challenges in monitoring and ensuring the security of City properties. This inefficiency necessitates an upgrade to a more reliable and advanced system.

Additionally, over the last year, the City has experienced several incidents of theft and vandalism of City property, especially around City Hall and the Pond. Valuable artwork has been stolen and/or vandalized, with the most recent theft occurring at the City Hall Veteran Memorial just before the Memorial Day holiday. At the Pond alone, there were three separate theft/vandalism incidents involving the same art pieces. Although a new security system does not guarantee the prevention of future theft/vandalism incidents, staff believe implementing the proposed new system will greatly serve as a deterrent.

For several months, staff from Administrative Services, Public Safety, Community Services, and Public Works Departments along with the IT team, have been researching, meeting, and participating in live system demonstrations with various vendors to explore different security systems options. Based on these evaluations, staff recommends the Verkada Security System which is a state-of-the-art cloud-based security system with live camera monitoring and transmission of verbal warnings/commands..

DISCUSSION
Proposed Security System
The Verkada Security System (Verkada) offers comprehensive security solutions, including advanced security cameras, an efficient alarm system, and integrated access controls that are accessed under one single platform. The Verkada System includes a live monitoring feature whereby every camera will be monitored during specified Agenda Report August 12, 2025
AGREEMENT WITH END POINT WIRELESS PAGE 2
timeframes as designated by the City. Through this live real time monitoring, any camera that shows activity of any breach/attempt of entry, vandalism, damage, etc., will result in a Verkada agent contacting the Sheriff’s station to request a law enforcement response.

Additionally, a sound horn will be placed at each site to allow the monitors to voice verbal warnings and commands to possible intruders. To ensure proper functionality, Verkada’s product requires the City to obtain software and cellular data licenses, which must be renewed every 5 years. The City is also required to pay for cellular service through the local Internet Service Provider to ensure the cameras are connected to the internet.

Benefits and Features of the Verkada System:

1. Cloud-Based Management: Verkada provides centralized cloud-based management (for a one-year storage period), allowing for real-time monitoring and management from any location. This feature significantly enhances the responsiveness and flexibility of our security operations. The cloud-based storage system ensures that footage is securely stored and easily accessible, while builtin redundancy features safeguard data from loss in case of power outages or hardware malfunctions.

2. High-Definition Cameras: Verkada cameras offer high-definition video quality, ensuring clear and detailed footage that is crucial for effective surveillance and incident analysis. The pole-mounted electronic security cameras come equipped with advanced features designed to maximize public safety and deter criminal activity. These devices include high-definition video recording with night vision capabilities, ensuring clear footage 24/7. They are equipped with motion sensors that trigger real-time alerts, enabling city staff and the Sheriff’s Department to monitor suspicious activities as they happen at any time, from any web-enabled device. The cameras utilize artificial intelligence (AI) for smart detection, allowing them to differentiate between human activity, vehicles, and animals, reducing false alarms. Each camera is also equipped with license plate recognition (LPR) technology, which helps law enforcement track and identify vehicles involved in illegal activities.

3. Integrated Alarm System: The alarm feature within Verkada is seamlessly integrated with the cameras and access controls, providing a unified security solution that enhances the overall effectiveness of our security measures.

4. Access Control: Verkada includes sophisticated access control options, allowing for the secure and efficient management of entry points across all City facilities.

5. AI and Analytics: Verkada’s AI-powered analytics enable advanced features such as motion detection, facial recognition, and people counting, which improve the overall security and operational efficiency.

6. Scalability: Verkada is highly scalable, making it easy to expand and integrate additional security components as needed in the future.

Agenda Report August 12, 2025
AGREEMENT WITH END POINT WIRELESS PAGE 3

7. Ease of Use: The intuitive user interface simplifies the management of security operations, reducing the need for extensive training and ensuring quick adoption by staff.

End-Point Wireless, Inc - Authorized Verkada Installer
End-Point Wireless, Inc. is a provider of electronic security system technology and authorized reseller/ installer of Verkada security systems. They have installed Verkada security systems for the cities of Glendale, Compton, Eastvale, and other security systems for Dana Point and San Juan Capistrano. They have also installed Verkada product /systems for numerous private sector companies. Staff contacted the cities and private companies to conduct reference checks and found that their work and performance has been satisfactory.

If approved, EPW would install the new security system for Phase 1 as further defined below.

Project Phases:
• Phase 1: Cost of $463,114 (see below breakdown). This phase will focus on installing the core components of the Verkada system, including cameras, alarms, and access controls (City Hall only) at the below City facilities.

Facilities and cost for Phase 1 Include:

City Hall ($223,791) The Pond ($36,013)
Village Skate Park ($74,836) Well site # 16 ($64,398)
Dills Park – new parking lot ($64,076)
Total Cost Breakdown:

Hardware - $217,798 Verkada Licensing – 5 years - $100,621 Materials and Labor - $121,877 Sales Tax - $22,817
• Phase 2 - 3: Estimated to be completed over the next 3 years depending on funding availability. These latter phases will encompass the expansion of the system (cameras, alarms, and access controls) to the below listed additional facilities and the integration of any remaining security components. City Council approval of future phases will be requested at each fiscal year as funding becomes available.

Phase 2-3 Facilities Include:

Public Works Yard Progress Park
Mariposa Center Paramount Park
Pool and Gym Spane Park
Agenda Report August 12, 2025
AGREEMENT WITH END POINT WIRELESS PAGE 4
City Yard Well sites
Clearwater Building Dills Park
Infinity Technologies - Implementation Support:

If Phase 1 is approved, staff will collaborate with the City’s IT consultant (Infinity Technologies) to manage the implementation and support of the new security system.

This partnership will ensure that the project is executed efficiently and in compliance with all relevant standards and requirements. Infinity's scope of work for a one-time security camera project implementation and coordination fee will not exceed $30,000. Thereafter, the City will pay an annual cost of $13,200 for support/management of the citywide security camera system. City Council approval of the attached Second Amendment to the Infinity agreement is necessary to support the new security camera project.

The proposed Second Amendment also includes the following changes:
• Extension of Term: The agreement is extended by one year, to August 1, 2026. • Increase of the monthly compensation for citywide IT support services by 3.2%, to $31,367 ($376,404 annually), based on the Los Angeles CPI-U (All Urban Consumers, Los Angeles–Long Beach–Anaheim metropolitan area) reflecting the 12-month increase through June 2025. This CPI adjustment reflects an annual increase of $11,676 in FY 2025-26.

Infinity Technologies will continue to provide high-level IT support, including project management for the new security camera system initiative, ensuring seamless integration with existing infrastructure.

Procurement: The purchase, installation, and monitoring of the new Verkada security system meets the Paramount Municipal Code purchasing requirements.

Under Section 3.12.070 of the Paramount Municipal Code, the City's purchasing policy allows for exemption from bidding as follows:

3.12.070. Exemption from bidding upon determination of Purchasing Officer or City Council.

The bidding requirements set forth in Sections 3.12.050 and 3.12.060 may be waived, at the discretion of the Purchasing Officer, when any of the following is applicable:

D. Supplies or equipment are procured through a cooperative purchasing program with Federal, State, County or other public agencies.

Verkada was awarded a contract under the California Multiple Award Schedules program (CMAS No. 3-23-01-1017) by the California Department of General Services for the purchase, warranty and installation of cloud-based video surveillance systems for the term of January 9, 2023 to December 31, 2025. Public Contract Code Section 10298 allows any city, county, district or other local governmental body to contract with suppliers Agenda Report August 12, 2025
AGREEMENT WITH END POINT WIRELESS PAGE 5
awarded CMAS contracts without further competitive bidding. EPW’s pricing for the proposed security and monitoring system is based on the current CMAS contract pricing structure. Because Verkada holds a cooperative purchasing contract under the California Multiple Award Schedules (CMAS), this allows the City to utilize this competitively bid contract through a piggyback procurement process. Verkada sells their products exclusively through a national dealer network and EPW is an authorized Verkada dealer. The City as a public agency will be able to utilize Verkada’s cooperative agreement through CMAS, to purchase directly from Verkada’s authorized dealer, EPW.

Upgrading to the Verkada security system will significantly enhance the security and operational efficiency of City facilities. The proposed solution provides a robust, integrated, and state-of-the-art security infrastructure. Approval of this agreement will help to better ensure the safety and security of our employees and patrons using our facilities and amenities. With Council approval, EPW would complete the installation of Phase 1 by Winter 2026.

FISCAL IMPACT
This Capital Improvement Project (CIP) was not included in the FY 2025-26 budget, and therefore, a budget adjustment in the amount of $533,470 is necessary to complete the project (Phase 1).

Proposed Funding Plan
Staff recommends the following sources to cover the $533,470:

Water Fund - $65,000 to cover the camera project and associated costs at Well 16.

General Fund (3M PFAS Settlement)- $468,470 to cover security camera project at City facilities and parks. The City expects to receive a total of $500,000 from the 3M PFAS Settlement payment by end of this summer. The City already received the first of the settlement payments in June 2025, for $203,000.

This FY 2025-26 CIP budget amendment of $533,470 will cover the following:
$486,270 - includes $463,114 for the purchase and installation of phase 1 of the new security camera project and $23,156 for a 5% project contingency. $4,000 - annual cellular service through the local internet service provider for the camera infrastructure.
$43,200 - includes the one-time fee of $30,000 for the new security camera project implementation through the IT contract and an annual fee of $13,200 for the new security camera system management/support services.

Agenda Report August 12, 2025
AGREEMENT WITH END POINT WIRELESS PAGE 6
Future Financial Considerations:

Verkada Licensing and Internet service fees - Estimated $185,000 over five years covering license fees for the alarm, camera and horn speakers; monthly internet service provider fees; and annual IT support/security system management.

IT Services Contract Adjustment - Staff will request a mid-year adjustment of $11,676 to support the anticipated annual increase in the Citywide IT support services contract.

Funding Source FY 2025-26
Proposed
Appropriation
FY 2025-26
Proposed
Revenue ADJ*
Net ADJ
112-General Fund $ 468,470 $ 533,470 $ -
511-Water Fund 65,000 - 65,000
110-1414-5151 - IT 11,676 11,676
TOTAL $ 545,146 $ 533,470 $ 76,676
[*] – recognize PFAS settlement payment as revenue in FY 2025-26. Funding will be used for security camera project.

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
1) Approve a budget adjustment to fund the security camera project phase 1 in the amount of $533,470 by allocating $65,000 from Water fund and $468,470 from General Fund; and
2) Approve the draft agreement with End Point Wireless for the installation of Verkada Security Systems for the replacement of the existing security cameras, alarm system, and access controls for phase 1 facilities for a cost of $463,114; authorize the City Manager or his designee to approve a 5% contingency; and authorize the City Manager to make final non-monetary changes to the agreement necessary to meet City Attorney approval; and
3) Approve the Second Amendment to the Agreement with Infinity Technologies, extending the term to August 1, 2026, and increasing the compensation and scope of work as designated; and
4) Approve the draft End User Agreement with Verkada; and authorize the City Manager to make final non-monetary changes to the agreement necessary to meet City Attorney approval.

Created by:

Elias Bettencourt
End-Point Wireless
Created for:

Grissel Chavez
City of Paramount
Grissel Chavez
City of Paramount
Security Project
16400 Colorado Blvd. Paramount, CA 90723
Dear Grissel,
End-Point Wireless is pleased to have the opportunity to provide this proposal to City of Paramount as requested. The following proposal addresses system requirements as identified in our most recent survey of various sites.

At End-Point Wireless, we are dedicated to providing you with an integrated security solution with high-quality equipment and exemplary service.

If you have any questions or require additional information, please feel free to contact us.

Sincerely,
Elias Bettencourt Sr.

End-Point Wireless
[email protected]
951-756-6900
Your Custom Security Plan
At End-Point Wireless, we are dedicated to providing cutting-edge low voltage solutions tailored to meet the unique needs of businesses across Southern California. With a passion for technology and a commitment to excellence, we specialize in delivering top-notch low voltage services that ensure safety, efficiency, communication, and convenience for our clients.

Our Approach
We take pride in being a part of the Southern California community. Our commitment goes beyond business – we actively contribute to the local community by supporting initiatives and projects that promote growth, education, and sustainability.

As a medium size company, we're able to adapt to an ever-changing environment that smaller mom-and-pop and larger national security companies can't stay on top of. We invest in continued training and education, so our team can stay on the cutting edge of all technologies.

Your Custom Security Plan
City Hall 16400 Colorado Blvd. Paramount, CA 90723 - Scope of Work:

End-Point Wireless (EPW) is to replace a camera system consisting of nineteen (19) cameras, three (3) horn speakers and (3) Multi sensors. The camera locations are as noted on the attached site map. EPW will provide CAT6 cables for all cameras. EPW will provide one (1) switch in IDF cabinet.

EPW is to replace an access control system consisting of three (3) controllers and ten (10) readers. The locations of the readers are as noted in the attached site map. EPW is to use existing cables to all readers. EPW is to install controller and power supply in server room.

End-Point Wireless (EPW) is to install a horn speaker system consisting of three (3) horn speaker. EPW will provide CAT6 cables for the horn.

EPW is to replace an intrusion system consisting of one (1) one control panel, one (1) keypad, three (3) door contacts and four (4) motion detectors. The locations of the intrusion devices are as noted in the attached site map. EPW is to activate alarm license for this site.

Exclusions:

If there are any issues with the use of the existing wiring, EPW will notify the customer and issue a change order accordingly.

If there are any issues with the use of the existing door electrified hardware, EPW will notify the customer and issue a change order accordingly.

Attachments:
• Site Map
• Quote
24/7 Alarm Monitoring Services - Verkada Alarms
Solution Overview
EPW will implement Verkada's cloud-managed alarm system across the City's designated facilities. The service includes 24/7 professional monitoring by Verkada-authorized agents who receive alarm events, verify via live video, notify designated contacts, and dispatch emergency services when necessary.

Monitoring Centers & Certifications
Services are delivered from UL 827-listed, TMA Five-Diamond-certified monitoring centers staffed 24/7/365.

Licensed Monitoring Tiers
Each site holds one Verkada Advanced Alarm license which includes camera-based triggers with live video verification. Alarm triggered from events such as intrusion sensor activation, access control breaches, and camera analytics (e.g., motion/person detection) can all raise alarms.

Response Flows
Three options per site: (1) Notification Only, (2) Standard (call before dispatch), (3) Immediate Dispatch. Live talk-down and siren activation supported with appropriate BZ11 Horn Speaker.

Video Verification & False Alarm Reduction
Advanced licenses allow agents encrypted access to video for real-time verification, minimizing false alarms.

Customer Obligations
City is responsible for correct arming/disarming, maintaining an up-to-date contact list, and managing alarm frequency.

Data Security & Privacy
All video and data are encrypted in transit and at rest. Agent access is limited and logged.

System Health & Support
EPW and City staff can monitor system health via Verkada Command. Hardware includes up to a 10-year warranty.

Service-Level Commitment
Monitoring agents respond to alarms within an average of 30 seconds.

Limitation of Liability
EPW's liability is limited to 60 months of licensing fees. Not responsible for disarmed alarms, misconfigurations, or external outages.

Product List Price Sales
Price Quantity Discount(Percentage) Total Price
Verkada 5-Year Camera License $899.00 $899.00 21.00 20.00% $15,103.20 Verkada 5-Year CH52 Multisensor Camera License $2,699.00 $2,699.00 4.00 20.00% $8,636.80 Verkada 5-Year AC Door License $999.00 $999.00 10.00 20.00% $7,992.00 Verkada 5-Year Cellular Backup License for ACC-CEL-LTE-2 (New Alarms, US only), Capacity Increase $1,349.00 $1,349.00 1.00 20.00% $1,079.20 Verkada 5-Year Standard Alarm License $7,500.00 $7,500.00 1.00 20.00% $6,000.00 Verkada 5-Year VX52 Viewing Station License $1,999.00 $1,999.00 1.00 20.00% $1,599.20 Verkada 5-Year Horn Speaker License, Capacity Increase $899.00 $899.00 4.00 20.00% $2,876.80 Verkada VX52 Viewing Station $499.00 $499.00 1.00 20.00% $399.20 Verkada CH52-E Outdoor Multisensor Camera, 8TB, 365 Days Max $12,699.00 $12,699.00 4.00 20.00% $40,636.80 Verkada CD52 Indoor Dome Camera, 2TB, 365 Days Max $3,699.00 $3,699.00 13.00 20.00% $38,469.60 Verkada CD52-E Outdoor Dome Camera, 2TB, 365 Days Max $3,899.00 $3,899.00 7.00 20.00% $21,834.40 Verkada - BZ11 Horn Speaker $799.00 $799.00 4.00 20.00% $2,556.80 Verkada ACC-MNT-CORNER-1: Corner Mount $199.00 $199.00 5.00 20.00% $796.00 Verkada - Pendant Cap Mount $69.00 $69.00 5.00 20.00% $276.00 Verkada PoE++ (802.3bt-2018) Injector, GigE $149.00 $149.00 3.00 20.00% $357.60 Verkada AC42 4–Door Controller $1,799.00 $1,799.00 3.00 20.00% $4,317.60 Verkada AD34 Multi-format Card Reader $349.00 $349.00 10.00 20.00% $2,792.00 Verkada Prox Cards, 100 Pack $599.00 $599.00 5.00 20.00% $2,396.00 Verkada BR12 Wired Surface Mount Door Contact, 5P $99.00 $99.00 3.00 20.00% $237.60 Verkada ACC-MNT-XLARM-1: Large Arm Mount $159.00 $159.00 5.00 20.00% $636.00 Verkada BR11-HW Wired Motion Sensor $99.00 $99.00 4.00 20.00% $316.80 ACC-VBX-200WH $199.00 $199.00 1.00 20.00% $159.20
Verkada 4AH Backup Battery $129.00 $129.00 3.00 20.00% $309.60 Verkada BP52 32-Zone Alarm Panel, North America Type B Plug (New Alarms) $899.00 $899.00 1.00 20.00% $719.20
Verkada ACC-MNT-CORNER-1: Corner Mount $199.00 $239.00 1.00 20.00% $191.20 BK22 Touchscreen Alarm Keypad (New Alarms) $399.00 $399.00 1.00 20.00% $319.20 Cellular Backup Communicator for BP52 Alarm Panel (New Alarms) $349.00 $349.00 1.00 20.00% $279.20 TRENDnet 26-Port Gigabit PoE+ Switch $630.00 $630.00 1.00 0.00% $630.00 ADI PRO CAT6 Riser Cable, 23/4 Solid BC, Unshielded, UTP, CMR/FT4, 1000' (304.8m) Reel in Box, White $198.99 $196.00 8.50 0.00% $1,666.00 3/4 in. x 10 ft. Electric Metallic Tube (EMT) Conduit $16.00 $16.00 10.00 0.00% $160.00 Skyjack 32ft Scissor Lift $930.00 $930.00 1.00 $930.00
EMT Miscellaneous $100.00 $100.00 1.50 $150.00
Camera Labor Installation $154.00 $154.00 180.00 $27,720.00 Access Control Labor $154.00 $154.00 78.00 $12,012.00
Grand Total $223,790.38
Tax $12,305.18
Total Price $211,485.20
Alarm Labor $154.00 $154.00 45.00 $6,930.00

End-Point Wireless
30141 Antelope Road
Menifee, California 92584
(800) 276-0415

STANDARD COMMERCIAL SECURITY AGREEMENT
Date: 2024-07/14/25
SUBSCRIBER: City of Paramount
AUTHORIZED CONTACT: Grissel Chavez
Contact email: [email protected]
Address: 16400 Colorado Blvd. Paramount, CA 90723

1. END-POINT WIRELESS (hereinafter referred to as “End-Point Wireless”) agrees to sell, install and program, at Subscriber's premises, and Subscriber agrees to buy, an electronic security system consisting of the equipment and services described in the attached Schedule of Equipment and Services. As well as any and all services performed by or on behalf of END-POINT WIRELESS shall comply with all applicable local, State and federal laws, statutes, regulations and orders.

2. All recurring charges are detailed in the quote section of this document and are to be billed monthly. Subscriber agrees to pay End-Point Wireless via automatic scheduled payments the following sum listed per month for the term of this agreement: $0.00 All recurring charges are detailed in the quote section of this document and billed yearly. Subscriber agrees to pay END-POINT WIRELESS the following sum listed per 5th year for the term of this agreement: $43,287.20

3. TERM OF AGREEMENT: Unless sooner terminated as provided herein, the term of this agreement shall be for a period of 60 month(s) and shall automatically renew month to month thereafter under the same terms and conditions for up to twelve (12) additional one month periods, unless either party gives written notice to the other by certified mail, return receipt requested, of their intention not to renew the agreement at least 30 days prior to the expiration of any term. END-POINT WIRELESS may invoice Subscriber in advance monthly, quarterly, or annually at END-POINT’s option. Notwithstanding the foregoing, Subscriber may terminate this agreement at any time with or without cause or penalty by providing END-POINT WIRELESS not less than sixty (60) days’ prior, written notice. Any prepaid but unearned fees shall be promptly refunded to Subscriber.

4. CENTRAL OFFICE MONITORING SERVICES: (a) Upon receipt of a signal from Subscriber’s alarm system, END-POINT WIRELESS or its designee central office shall make every reasonable effort to notify Subscriber and the appropriate municipal police or fire department depending upon the type of signal received (“Monitoring Services” sometimes herein). Not all signals will require notification to the authorities and subscribers may obtain a written response policy from END-POINT WIRELESS. No response shall be required for supervisory, loss of communication pathway, trouble or low battery signals. Subscriber acknowledges that signals transmitted from Subscriber's premises directly to municipal police or fire departments are not monitored by personnel of END-POINT WIRELESS or END-POINT WIRELESS's designee central office and END-POINT WIRELESS does not assume any responsibility for the manner in which such signals are monitored or the response, if any, to such signals. Subscriber acknowledges that signals which are transmitted over telephone lines, wire, air waves, internet, VOIP, radio or cellular, or other modes of communication pass through communication networks wholly beyond the control of END-POINT WIRELESS and are not maintained by END-POINT WIRELESS except END-POINT WIRELESS may own the radio network, and END-POINT WIRELESS shall not be responsible for any failure which prevents transmission signals from reaching the central office monitoring center or damages arising therefrom, or for data corruption, theft or viruses to Subscriber’s computers if connected to the alarm communication equipment. Subscriber agrees to furnish END-POINT WIRELESS with a written Call List of names and telephone numbers of those persons Subscriber wishes to receive notification of alarm signals.

Unless otherwise provided in the Call List END-POINT WIRELESS will make a reasonable effort to contact the first person reached or notified on the list either via telephone call, text or email message.

All changes and revisions shall be supplied to END-POINT WIRELESS in writing. Subscriber authorizes END-POINT WIRELESS to access the control panel to input or delete data and programming. If the equipment contains video or listening devices permitting central office to monitor video or sound then upon receipt of an alarm signal central office shall monitor video or sound for so long as central office in its sole discretion deems appropriate to confirm an alarm condition. If Subscriber requests END-POINT WIRELESS to remotely activate or deactivate the system, change combinations, openings or closings, or re-program system functions, Subscriber shall pay ENDPOINT WIRELESS $125.00 for each such service. END-POINT WIRELESS may, upon not less than three (3) business days’ prior written notice, prior notice, suspend or terminate its services, in central office’s sole discretion, in event of Subscriber’s default in performance of this agreement or in event central office facility or communication network is nonoperational or the Subscriber’s alarm system transmits more than 10 signals within a 24-hour period without legitimate cause, such transmissions shall be deemed excessive. Central office is authorized to record and maintain audio and video transmissions, data and communications, and shall be the exclusive owner of such property. All Subscriber information and data made accessible to, or stored or handled by END-POINT WIRELESS (“Subscriber Data”),shall be maintained confidentially by END-POINT WIRELESS. (b) Without limiting END-POINT WIRELESS’s obligation of confidentiality as further described herein, END-POINT WIRELESS shall be responsible for establishing and maintaining a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with or are substantially similar to the security controls identified in the current version of NIST SP800-53, and that is designed to: (a) ensure the security and confidentiality of Subscriber Data; (b) protect against any anticipated threats or hazards to the security or integrity of Subscriber Data; (c) protect against unauthorized disclosure, access to, or use of Subscriber Data; (d) ensure the proper disposal of Subscriber Data; and, (e) ensure that all employees, agents, and subcontractors of END-POINT WIRELESS, if any, comply with all of the foregoing. All Subscriber Data, whether in motion, in use, or at rest, shall be encrypted from end to end. In no case shall the safeguards of END-POINT WIRELESS’s data privacy and information security program used to protect Subscriber Data be less stringent than the safeguards used by END-POINT WIRELESS for its own data.
(c) END-POINT WIRELESS is provided a limited license to access Subscriber Data for the sole and exclusive purpose of providing the Services, including a license to collect, process, store, generate, and display Subscriber Data only to the extent necessary in the providing of the Services. ENDPOINT WIRELESS shall: (a) keep and maintain Subscriber Data in strict confidence, using such degree of care as is appropriate and consistent with its obligations as further described in this Agreement and applicable law to avoid unauthorized access, use, disclosure, or loss; (b) use and disclose Subscriber Data solely and exclusively for the purpose of providing the Services in accordance with this Agreement and applicable law; (c) allow access to Subscriber Data only to those employees of END- POINT WIRELESS who are directly involved with and responsible for providing the Services; and, (d) not use, sell, rent, transfer, distribute, or otherwise disclose or make available Subscriber Data for END-POINT WIRELESS’s own purposes or for the benefit of anyone other than Subscriber without Subscriber’s prior written consent. END-POINT WIRELESS may not utilize aggregated data derived from Subscriber Data unless it has been made “anonymous” using technology that irreversibly alters data in such a way that the data subject can no longer be identified directly or indirectly, either by the data controller alone or in collaboration with any other party, and such data is thereby rendered “anonymized data”, as generally described in ISO 25237:2017, Sections 3.2 and 3.3.

5. SERVICE: Service includes all parts and labor, and END-POINT WIRELESS shall service upon Subscriber's request the security system installed in Subscriber's premises between the hours of 9 a.m. and 5 p.m. Monday through Friday, within reasonable time after receiving notice from Subscriber that service is required, exclusive of Saturdays, Sundays and legal holidays. All repairs, replacement or alteration to the security system made by reason of alteration to Subscriber’s premises, or caused by unauthorized intrusion, lightning or electrical surge, or caused by any means other than normal usage, wear and tear, shall be made at the cost of the Subscriber. Batteries, electrical surges, lightning damage, software upgrades and repairs, communication devices no longer supported by communication pathways, obsolete components and components exceeding manufacturer's useful life are not included in service and will be repaired or replaced at Subscriber's expense payable at time of service. No apparatus or device shall be attached to or connected with the security system as originally installed without End-Point's written consent. All END-POINT WIRELESS installation services are governed by the provisions of Exhibit “A” attached hereto and incorporated by reference herein.

6. SUBSCRIBER REMOTE ACCESS: If Remote Access is included in the Schedule of Equipment and Services to be installed and services provided by END-POINT WIRELESS, the equipment will transmit data via Subscriber's high speed Internet, cellular or radio communication service from remote pendant supplied by END-POINT WIRELESS or Subscriber's Internet or wireless connection device which is compatible with END-POINT's remote services. END-POINT WIRELESS will grant access to a server permitting Subscriber to monitor the security system, access the system to arm, disarm and bypass zones on the system, view the remote video camera(s) and control other remote automation devices that may be installed. The remote services server is provided either by ENDPOINT WIRELESS or a third party. END-POINT WIRELESS shall install the camera(s) in a permissible legal location in Subscriber's premises to permit Subscriber viewing. END-POINT WIRELESS shall have no responsibility for failure of data transmission, corruption or unauthorized access and shall not monitor or view the camera data. Electronic data may not be encrypted and wireless components of the alarm system may not meet Advanced Encryption Standard specifications for encryption of electronic data established by the US National Institute of Standards and Technology and END-POINT WIRELESS shall have no liability for access to the alarm system by others. All END-POINT WIRELESS installation services are governed by the provisions of Exhibit “A” attached hereto and incorporated by reference herein.

7. WIRELESS AND INTERNET ACCESS CAPABILITIES: Subscriber is responsible for supplying high speed Internet access and or wireless services at Subscriber's premises. END-POINT WIRELESS does not provide Internet service, maintain Internet connection, wireless access or communication pathways, computer, smart phone, electric current connection or supply, or in all cases the remote video server. In consideration of Subscriber making its monthly payments for remote access to the system END-POINT WIRELESS will authorize Subscriber access. END-POINT WIRELESS is not responsible for Subscriber's access to the Internet or any interruption of service or down time of remote access caused by loss of Internet service, radio or cellular or any other mode of communication used by Subscriber to access the system. Subscriber acknowledges that Subscriber's security system can be compromised if the codes or devices used for access are lost or accessed by others and END-POINT WIRELESS.

8. ACCESS CONTROL SYSTEM OPERATION AND LIMITATIONS: If selected as a service to be provided and included in the Schedule of Equipment and Services, Access Control equipment shall be connected to a computer supplied by the Subscriber and connected to Subscriber’s computer network. If data storage or backup is selected, service END-POINT WIRELESS or its designee shall store and /or backup data received from Subscriber’s system for a period of one year and shall make such data available for download by Subscriber at no cost during such period. Thereafter, all such data shall be permanently deleted. END-POINT WIRELESS shall have no liability for data corruption or inability to retrieve data even if caused by END-POINT WIRELESS's negligence.

Subscriber’s data shall be maintained confidential as required in Section 4(c), and shall be retrieved and released only to Subscriber or upon Subscriber's authorization or by legal process. Internet access is not provided by END-POINT WIRELESS and END-POINT WIRELESS has no responsibility for such access or IP address service. END-POINT WIRELESS shall have no liability for unauthorized access to the system through the Internet or other communication networks or data corruption or loss for any reason whatsoever. All END-POINT WIRELESS installation services are governed by the provisions of Exhibit “A” attached hereto and incorporated by reference herein.

9. (a) ACCESS CONTROL ADMINISTRATION: If selected as a service to be provided END-POINT WIRELESS will maintain the data base for the operation of the Access Control System. Subscriber will advise END-POINT WIRELESS of all changes in personnel and or changes access levels of authorization and restrictions, providing Access card serial numbers or biometric data and such information that Subscriber deems necessary to identify personnel. All communication by a subscriber to END-POINT WIRELESS regarding personnel access must be in writing via email or fax to addresses designated by END-POINT WIRELESS. END POINT WIRELESS shall have remote internet access to the Subscriber's designated access control computer to program and make database updates to the system. Subscriber is responsible for maintaining its computer and computer network and Internet access
(b) VIDEO SYSTEM OPERATION AND LIMITATIONS: If selected as a service to be provided and included in the Schedule of Equipment and Services. Video equipment is attached to a digital recorder computer and Subscriber shall not use the computer for any other purpose. Subscriber shall be permitted to access and make changes to the system’s operation on site and over the internet. If data storage is a selected service, END-POINT WIRELESS shall store data received from Subscriber's system for one year. and shall make such data available for download by Subscriber at no cost during such period. Thereafter, all such data shall be permanently deleted. END-POINT WIRELESS shall have no liability for data corruption or inability to retrieve data unless caused by END-POINT WIRELESS’s negligence or willful misconduct. Subscriber’s data shall be maintained confidential as required in Section 4(c) and shall be retrieved and released only to Subscriber or upon Subscriber’s authorization or by legal process. Telephone or internet access is not provided by END-POINT WIRELESS and END-POINT WIRELESS has no responsibility for such access or IP address service If system has remote access END-POINT WIRELESS is not responsible for the security or privacy of any wireless network system or router, and it is the Subscriber’s responsibility to secure access to the system with pass codes and lockouts. END-POINT WIRELESS shall have no liability for unauthorized access to the system through the internet or other communication networks or data corruption or loss for any reason whatsoever (unless gross negligence or willful misconduct by EPW). All END-POINT WIRELESS installation services are governed by the provisions of Exhibit “A” attached hereto and incorporated by reference herein.

10. STREAMING VIDEO DATA / CCTV / EXCESSIVE DATA USAGE: If selected as a service to be provided and included in the Schedule of Equipment, upon receipt of a video signal the video system is designed to activate in the central station and record video data reception, upon which, ENDPOINT WIRELESS or its designee central office, shall make every reasonable effort to notify Subscriber by email, text, or voice message and the appropriate municipal police or fire department.

Subscriber acknowledges that signals transmitted from Subscriber's premises directly to municipal police or fire departments or Subscriber's internal security stations are not monitored by personnel of END-POINT WIRELESS or END-POINT WIRELESS designee central office and END-POINT WIRELESS does not assume any responsibility for the manner in which such signals are monitored or the response, if any, to such signals. Subscriber acknowledges that signals which are transmitted through the internet, over telephone lines, wire, air waves, cellular, radio, internet, VOIP, or other modes of communication pass through communication networks wholly beyond the control of ENDPOINT WIRELESS may own the radio network, and END-POINT WIRELESS shall not be responsible for any failure which prevents transmission signals from reaching the central office monitoring center or damages arising therefrom, or for data corruption, theft or viruses to Subscriber’s computers if connected to the alarm communication equipment. Subscriber agrees to furnish END-POINT WIRELESS with a written list of names and telephone numbers of those persons Subscriber wishes to receive notification of signals. All changes and revisions shall be supplied to END-POINT WIRELESS in writing. Subscriber authorizes END-POINT WIRELESS to access the supervisory panel to input or delete data and programming. If Subscriber requests END-POINT WIRELESS to remotely activate or deactivate the system, change combinations, openings or closings, or re-program system functions, Subscriber shall pay END-POINT WIRELESS $75.00 for each such service. END-POINT WIRELESS may, upon not less than three (3) business days prior written notice, suspend or terminate its services, in central station’s sole discretion, in event of Subscriber’s default in performance of this agreement or in event central station facility or communication network is nonoperational or Subscriber’s alarm system transmitting more than 10 false alarm signals within a 24-hour period. Central station is authorized to record and maintain audio and video transmissions, data and communications, and shall be the exclusive owner of such property. END-POINT WIRELESS shall have no liability for excessive data usage expense incurred by Subscriber attributable to the equipment or services provided herein. All Subscriber information and data shall be maintained confidentially by END-POINT WIRELESS as required in Section 4(c).

11. GUARD RESPONSE: If guard response is specified as a service to be provided, upon receipt of an alarm signal, END-POINT WIRELESS or its subcontractor shall as soon as may be practical send one or more of its guards to the Subscriber's premises. Unless guard determines that the alarm is a false alarm and that no situation requiring police or fire department services exist, the guard shall notify the central station or police or fire department directly that an emergency situation exists and wait up to 15 minutes for the municipal police or fire department personnel or Subscriber to arrive at the premises and if permitted by the police shall assist in making a search of the premises to determine the cause of the alarm condition. If provided with keys to the premises the guard shall endeavor to secure the premises and repair the security equipment. However, Subscriber acknowledges that the guard is not required to enter the premises or to render any service to the security equipment and shall not be required to remain stationed at Subscriber's premises for more than 15 minutes after initial arrival. Subscriber authorizes the guard to take such action the guard deems necessary to secure the premises and reset the alarm, though Subscriber acknowledges that the guard may not be able to or may not have sufficient time to secure the premises or reset the alarm and put same in working order. If Subscriber requests END-POINT WIRELESS to station its guard at the premises for more than 30 minutes, and END-POINT WIRELESS has sufficient personnel to provide such service, and END-POINT WIRELESS makes no such representation that its personnel will be available, then Subscriber agrees to pay END-POINT WIRELESS $65.00 per half hour plus tax for such service. Subscriber agrees to confirm the request to END-POINT WIRELESS to provide extended guard service by email, text or recorded conversation to ENDPOINT WIRELESS at the time request is made and END-POINT WIRELESS is authorized to ignore any request not confirmed within 15 minutes.

12. LIMITED WARRANTY ON SALE: In the event that any part of the security system becomes defective, or in the event that any repairs are required, END-POINT WIRELESS agrees to make all repairs and replacement of parts without costs to the Subscriber for a period of three hundred and sixty five (365) days from the date of installation. END-POINT WIRELESS reserves the option to either replace or repair the alarm equipment, and reserves the right to substitute materials of equal quality at time of replacement, or to use reconditioned parts in fulfillment of this warranty. This warranty does not include batteries, electrical surges, lightning damage, software upgrades and repairs, communication devices that are no longer supported by communication pathways, obsolete components and components exceeding manufacturer’s useful life. END-POINT WIRELESS is not the manufacturer of the equipment and other than END-POINT WIRELESS’s limited warranty Subscriber agrees to look exclusively to the manufacturer of the equipment for repairs under its warranty coverage if any. Except as set forth in this agreement, END-POINT WIRELESS makes no express warranties as to any matter whatsoever, including, without limitation, the condition of the equipment, its merchantability, or its fitness for any particular purpose. END-POINT WIRELESS does not represent nor warrant that the security system may not be compromised or circumvented, or that the system will prevent any loss by burglary, hold-up, or otherwise; or that the system will in all cases provide the protection for which it is installed. END-POINT WIRELESS expressly disclaims any implied warranties, including implied warranties of merchantability or fitness for a particular purpose.

The warranty does not cover any damage to material or equipment caused by accident, misuse, attempted or unauthorized repair service, modification, or improper installation by anyone other than END-POINT WIRELESS. Except as otherwise provided herein, END POINT WIRELESS shall not be liable for consequential damages. Subscriber acknowledges that any affirmation of fact or promise made by END-POINT WIRELESS shall not be deemed to create an express warranty unless included in this agreement in writing; that Subscriber is not relying on END-POINT WIRELESS's skill or judgment in selecting or furnishing a system suitable for any particular purpose and that there are no warranties which extend beyond those on the face of this agreement, and that END-POINT WIRELESS has offered additional and more sophisticated equipment for an additional charge which Subscriber has declined. Except as otherwise provided herein with respect to END-POINT WIRELESS’ installation activities causing bodily injury, death or property damage. Subscriber's exclusive remedy for END-POINT WIRELESS's breach of this agreement or negligence to any degree under this agreement is to require END-POINT WIRELESS to repair or replace, at ENDPOINT WIRELESS’s option, any equipment which is non-operational. This Limited Warranty is independent of and in addition to service contracted under paragraph 2 of this agreement. This Limited Warranty gives Subscriber specific legal rights and Subscriber may also have other rights which vary from state to state. If required by law, END-POINT WIRELESS will procure all permits required by local law and will provide certificate of worker’s compensation prior to starting work. All END-POINT WIRELESS installation services are governed by the provisions of Exhibit “A” attached hereto and incorporated by reference herein.

13. GENERAL PROVISIONS DELAY IN DELIVERY / INSTALLATION / RISK OF LOSS OF MATERIAL: END-POINT WIRELESS shall not be liable for any damage or loss sustained by Subscriber as a result of delay in delivery and/or installation of equipment, equipment failure, or for interruption of service due to electric failure, strikes, walk-outs, war, acts of God, or other causes, beyond the reasonable control of END-POINT WIRELESS. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence. In the event the work is delayed through no fault of END-POINT WIRELESS, END-POINT WIRELESS shall have such additional time for performance as may be reasonably necessary under the circumstances.

Subscriber assumes all risk of loss of material once delivered to the job site, Subscriber assumes all risk of loss of equipment while under Subscriber’s possession or control.

14. TESTING OF SECURITY SYSTEM: Prior to Subscriber accepting the system as complete, it is the responsibility of END-POINT WIRELESS to test and demonstrate that the Security System is functioning properly, and to correct any apparent defects without cost to Subscriber. After Subscriber accepts the system in writing as complete, it shall be deemed to be in Subscriber’s sole possession and control. Thereafter, Subscriber shall and to notify END-POINT WIRELESS if it is in need of repair. Except for warranty service, service if provided after Subscriber acceptance, is pursuant to paragraph 2.

15. CARE AND SERVICE OF SECURITY SYSTEM: Subscriber agrees not to tamper with, remove or otherwise interfere with the Security System which shall remain in the same location as installed.

All repairs, replacement or alteration to the security system made by reason of alteration to Subscriber's premises, or caused by unauthorized intrusion, lightning or electrical surge, or caused by any means other than normal usage, wear and tear, shall be made at the cost of the Subscriber.

Batteries, electrical surges, lightning damage, software upgrades and repairs, communication devices that are no longer supported by communication pathways, obsolete components and components exceeding manufacturer's useful life, are not included in warranty or service under paragraph 2 and will be repaired or replaced at Subscriber’s expense at the following cost schedule of $115 per hour. While this agreement remains in effect, no apparatus or device shall be attached to or connect with the security system as originally installed without END-POINT WIRELESS's written consent.

16. ALTERATION OF PREMISES FOR INSTALLATION: END-POINT WIRELESS is authorized to make preparations such as drilling holes, driving nails, making attachments or doing any other thing necessary in END-POINT WIRELESS's sole discretion for the installation and service of the security system, and END-POINT WIRELESS shall not be responsible for any condition created thereby as a result of such installation, service, or removal of the security system, and Subscriber represents that the owner of the premises, if different from Subscriber, has granted full permission to make such alterations.

17. EXCULPATORY CLAUSE: THE PROVISIONS OF THIS SECTION DO NOT APPLY TO AND

DO NOT AFFECT LIABILITY OF END-POINT WIRELESS FOR CLAIMS AND LIABILITIES ARISING OUT OF ITS INSTALLATION ACTIVITIES. THOSE CLAIMS AND LIABILITIES ARE GOVERNED BY THE PROVISIONS OF EXHIBIT “A” HERETO.

END-POINT WIRELESS and Subscriber agree that END-POINT WIRELESS is not an insurer and no insurance coverage is offered herein. The security equipment and END-POINT WIRELESS’s services are designed to reduce certain risks of loss, though END-POINT WIRELESS does not guarantee that no loss will occur. END-POINT WIRELESS is not assuming liability, and, therefore, shall not be liable to Subscriber for any loss, data corruption or inability to retrieve data, personal injury or property damage sustained by Subscriber as a result of intrusion, burglary, theft, hold-up, fire, equipment failure, smoke, or any other cause whatsoever, regardless of whether or not such loss or damage was caused by or contributed to by END-POINT WIRELESS's negligent performance to any degree in furtherance of this agreement, any extra contractual or legal duty, strict products liability, or negligent failure to perform any" obligation pursuant to this agreement or any other legal duty. In the event of any loss or injury to any person or property. Subscriber agrees to look exclusively to Subscriber’s insurer to recover damages. Subscriber releases END-POINT WIRELESS from any claims for contribution, indemnity or subrogation.

18. INSURANCE: In the event of any loss or injury to any person or property related to the Monitoring Services, Subscriber agrees to look exclusively to Subscriber’s insurer to recover damages. Subscriber shall self-insure or obtain insurance to cover any loss the Monitoring Services are intended to detect to one hundred percent of the insurable value, and Subscriber and all those claiming rights under Subscriber waive all rights against END-POINT WIRELESS and its subcontractors for loss or damages caused by burglary, theft, water, smoke, fire or other perils intended to be detected by the Monitoring Services or covered by insurance to be obtained by Subscriber, except such rights as they may have to the proceeds of insurance, and not including loss or damages resulting from the willful misconduct of END-POINT WIRELESS or any of its employees, subcontractors, or agents. Insurance requirements covering installation services by END-POINT WIRELESS are set forth in Exhibit “A” hereto.

19. LIMITATION OF LIABILITY: Subscriber agrees that should there arise any liability on the part of END-POINT WIRELESS as a result of END-POINT WIRELESS's negligent performance to any degree or negligent failure to perform any of END-POINT WIRELESS’s obligations pursuant to this agreement or any other legal duty, equipment failure, or strict products liability, that END-POINT WIRELESS’s liability shall be limited to the sum of $250 00 or 5% of the sales price or 6 times the aggregate of monthly payments for services being provided at time of loss, whichever is greater. If Subscriber wishes to increase END-POINT WIRELESS's amount of limitation of liability, Subscriber may, as a matter of right, at any time, by entering into a supplemental agreement, obtain a higher limit by paying an annual payment consonant with END-POINT WIRELESS's increased liability. This shall not be construed as insurance coverage. NOTWITHSTANDING THE FOREGOING, THE

PROVISIONS OF THIS SECTION DO NOT APPLY TO AND DO NOT AFFECT LIABILITY OF

END-POINT WIRELESS FOR CLAIMS AND LIABILITIES ARISING OUT OF ITS INSTALLATION ACTIVITIES. THOSE CLAIMS AND LIABILITIES ARE GOVERNED BY THE PROVISIONS OF EXHIBIT “A” HERETO.

20. LEGAL ACTION: The parties agree that due to the nature of the services to be provided by ENDPOINT WIRELESS, the monthly or other periodic payments to be made by the Subscriber for the term of this agreement form an integral part of END-POINT WIRELESS's anticipated profits; that in the event of Subscriber's default it would be difficult if not impossible to fix END-POINT WIRELESS's actual damages. Therefore, in the event Subscriber defaults in the payment or any charges to be paid to END-POINT WIRELESS, interest on such overdue payments shall accrue at the rate of ten percent per year. In the event any proper invoice remains unpaid after sixty (60) days, END-POINT WIRELESS shall be permitted to terminate all of its services, including but not limited to terminating monitoring service, under this agreement and to remotely re-program or delete any programming. The prevailing party in any legal action arising out of this agreement shall be entitled to recover reasonable attorneys’ fees and costs.

The parties agree that they may bring claims against the other only in their individual capacity and not as a class action plaintiff or class action member in any purported class or representative proceeding. Service of process or papers in any legal proceeding or arbitration between the parties may be made by certified or registered mail with proof of delivery delivered by the U.S. Postal Service addressed to the party's address in this agreement or another address provided by the party in writing to the party making service. Subscriber submits to the jurisdiction and laws of California and agrees that any litigation or arbitration between the parties must be commenced and maintained in the County of Los Angeles. The parties waive trial by jury in any action between them unless prohibited by law. Any action by Subscriber against END-POINT WIRELESS must be commenced within one year of the accrual of the cause of action or shall be barred.

21. END-POINT'S RIGHT TO SUBCONTRACT SPECIAL SERVICES: Subscriber agrees that ENDPOINT WIRELESS is authorized and permitted to subcontract any services to be provided by ENDPOINT WIRELESS to third parties who may be independent of END-POINT WIRELESS, and, except for a breach of this agreement, END-POINT WIRELESS shall not be liable for any loss or damage sustained by Subscriber by reason of fire, theft, burglary or any other cause whatsoever caused by the negligence of third parties, except as provided in Exhibit “A” hereto. Notwithstanding the foregoing, END-POINT WIRELESS shall remain primarily liable for the performance of this agreement. Subscriber appoints END-POINT WIRELESS to act as Subscriber’s agent with respect to such third parties, except that END-POINT WIRELESS shall not obligate Subscriber to make any payments to such third parties. Subscriber acknowledges that this agreement, and particularly those paragraphs relating to END-POINT WIRELESS's disclaimer of warranties, exemption from liability, even for its negligence, limitation of liability and indemnification, inure to the benefit of and are applicable to any assignees, subcontractors, manufacturers, vendors and central offices of ENDPOINT WIRELESS.

22. NON-SOLICITATION: Subscriber agrees that it will not solicit for employment for itself, or any other entity, or employ, in any capacity, any employee of END-POINT WIRELESS assigned by ENDPOINT WIRELESS to perform any service for or on behalf of Subscriber for a period of two years after END-POINT WIRELESS has completed providing service to Subscriber. In the event of Subscriber's violation of this provision shall be a material breach of this agreement.,

23. FALSE ALARMS / PERMIT FEES: Subscriber is responsible for all alarm permits and fees, agrees to file for and maintain any permits required by applicable law and indemnify or reimburse END-POINT WIRELESS for any fines relating to permits or false alarms imposed on END-POINT WIRELESS as a result of this agreement. END-POINT WIRELESS shall have no liability for permit fees, false alarms, false alarm fines, police or fire response, any damage to personal or real property or personal injury caused by police or fire department response to alarm, whether false alarm or otherwise, or the refusal of the police or fire department to respond. In the event of termination of police or fire response by the municipal police or fire department, this agreement shall nevertheless remain in full force and Subscriber shall remain liable for al payments provided for herein. Should END-POINT WIRELESS be required by existing or hereafter enacted law to perform any service or furnish any material not specifically covered by the terms of this agreement, Subscriber and ENDPOINT WIRELESS will use good faith efforts to agree on an adjustment of recurring fees otherwise payable hereunder.

24. CREDIT INVESTIGATION: Subscriber and any guarantor authorize END-POINT WIRELESS to conduct credit investigations from time to time to determine Subscriber’s and guarantor’s credit worthiness.

25. FULL AGREEMENT / SEVERABILITY: This agreement, including Exhibit "A" herto, along with the Schedule of Equipment and Services constitutes the full understanding of the parties and may not be amended, modified or canceled, except in writing signed by both parties. Subscriber acknowledges and represents that Subscriber has not relied on any representation, assertion, guarantee, warranty, collateral agreement or other assurance, except those set forth in this Agreement. Subscriber hereby waives all rights and remedies, at law or in equity, arising, or which may arise, as the result of Subscriber’s reliance on such representation, assertion, guarantee, warranty, collateral agreement or other assurance. To the extent this agreement is inconsistent with any other document, agreement, purchase order or understanding between the parties, the terms of this agreement shall govern. Should any provision of this agreement be deemed void, the remaining parts shall not be affected.

PROPOSITION 65 WARNING: Equipment and packaging may contain components containing chemicals known to The State of California to cause cancer, birth defects or other reproductive harm.

Payment Schedule For Project Grand Total:

Deposit (Due On Day of Signing): $179,032.30
Final Payment (Due Upon Completion): $44,758.07
Purchase Order Required:

PO Number(If no. enter "N/A"):

AP Contact Name:

Phone - Direct:

Email:

Title:

SUBSCRIBER ACKNOWLEDGES RECEIVING A FULLY EXECUTED COPY OF THIS AGREEMENT AND SCHEDULE OF EQUIPMENT AND SERVICES AT TIME OF EXECUTION.

Grissel Chavez
05 / 19 / 2025
EXHIBIT “A”

INSTALLATION TERMS AND CONDITIONS

1. The provisions of this Exhibit “A” shall govern the provision of any and all installation services performed by or on behalf of END-POINT WIRELESS and shall govern in the event of any conflict or inconsistency with any other provision of this agreement. For purposes of this agreement, “Installation Services” shall mean and include the physical installation, whether by END-POINT WIRELESS or any person or entity acting on behalf of END-POINT WIRELESS, on property owned or controlled by Subscriber, including any required configuration and/or programming, of cameras, wires, sensors, and any and all other equipment and related components provided by Verkada, Inc., pursuant to CMAS #3-23-01-1017, or by any third party that is identified in the Schedule of Equipment and Services referenced in Section 1 of this agreement.

2. END-POINT WIRELESS, to the fullest extent permitted by law, agrees to indemnify, defend, and hold Subscriber, its elected officials, officers, employees, agents, and volunteers (“Indemnitees”) harmless with respect to any and all claims and liabilities, including reasonable attorneys’ fees, costs, and expenses incidental thereto, which may be suffered or incurred by, accrued against, charged to, or recoverable from any Indemnitee, by reason of any claim or legal action alleging:
(i) bodily injury or death to any person, and/or property damage, arising out of the performance of Installation Services by END-POINT WIRELESS, or any of its employees, subcontractors, or agents; and/or (ii) infringement or misappropriating any United States or foreign patent, copyright, trade secret, trademark, or other proprietary right in connection with provision of the Monitoring Services.

In the event that END-POINT WIRELESS is enjoined from providing the Monitoring Services and such injunction is not dissolved within thirty (30) calendar days, or in the event that Subscriber is adjudged, in any final order of a court of competent jurisdiction from which no appeal is taken, to have Infringed upon or misappropriated any patent, copyright, trade secret, trademark, or other proprietary right in the access or use of the Services, then END-POINT WIRELESS shall, at its expense: (a) obtain for Subscriber the right to continue using the Monitoring Services; (b) replace or modify the Monitoring Services so that they do not infringe upon or misappropriate such proprietary right and is free to be used by Subscriber; or, (c) in the event that END-POINT WIRELESS is unable or determines, in its reasonable judgment, that it is commercially unreasonable to do either of the aforementioned, END-POINT WIRELESS shall reimburse to Subscriber any prepaid fees.

3. Unless otherwise approved in writing by Subscriber’s risk manager, END-POINT WIRELESS shall, at its own expense, procure and maintain in full force and effect during the term of this agreement, policies of insurance, of the types and in the minimum amounts as follows, with responsible insurance carriers having an A. M. Best rating of not less than A:VII and duly admitted and qualified in California, covering the Installation Services of END-POINT WIRELESS, pursuant to this agreement: commercial general liability and auto liability ($1,000,000 per occurrence and/or accident, $2,000,000 aggregate); workers’ compensation (statutory limits) and employers’ liability ($500,000 per accident).The Indemnitees shall be named as additional insureds on the CGL and auto liability policies; all policies shall be endorsed to waive the right of subrogation and END-POINT WIRELESS waives all rights of subrogation. Copies of insurance certificates and original endorsements evidencing all required insurance shall be provided to Subscriber prior to commencement of Installation Services.

4. California Labor Code compliance. Pursuant to Labor Code Sec. 1720(a), the Installation Services Constitute “public works”. Therefore, in the performance of Installation Services, END-POINT WIRELESS shall comply with all Labor Code requirements set forth in Exhibit “A-1” attached hereto.

CMAS #3-23-01-1017
EXHIBIT _A-1

CALIFORNIA LABOR CODE COMPLIANCE
1 . END-POINT WIRELESS (“Contractor”) acknowledges that the Installation Services required by this contract are subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”), and agrees to be bound by all the provisions thereof as though set forth in full herein.
2 . This is a public work and requires the payment of prevailing wages for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor pursuant to Section 1771 of the Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this contract from the Director of the Department of Industrial Relations. These rates are on file with the City Clerk or may be obtained at http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm .

Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to the City, as a penalty, not more than $200.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of this Agreement.

3. In accordance with Labor Code Sections 1725.5 and 1771.1, and except for projects involving construction, alteration, demolition, installation, or repair work of $25,000 or less, or maintenance work of $15,000 or less, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract unless currently registered and qualified to perform public work pursuant to Section 1725.5 [with limited exceptions for bid purposes, only, pursuant to Labor Code Section 1771.1(a)].

4. Pursuant to Labor Code Section 1776, Contractor shall maintain and make available an accurate record showing the name of each worker and hours worked each day and each week by each worker employed by Contractor performing services covered by this Agreement.

Contractor and its subcontractors shall furnish electronic certified payroll records to the Labor Commissioner in accordance with Labor Code Section 1771.4. The project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. The Contractor shall post job site notices, as prescribed by regulation.

5. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. The Contractor shall be responsible for compliance with these Sections for all apprenticeable occupations. Before commencing Work on this Project, the Contractor shall provide the City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) Days after concluding Work, Contractor and each of its Subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Contract.

6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.

7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing the Agreement to which this Exhibit is attached, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract."

EXHIBIT C

INSURANCE
Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section, or as may otherwise be permitted or required in writing by the City’s risk manager.

Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.

Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.

Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

Commercial Automobile Liability Insurance: Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than 1,000,000 combined single limit for each accident. The City of Paramount, its elected or appointed officers, officials, employees and volunteers shall be named as additional insureds on such policy.

Cyber Liability: Vendor shall maintain comprehensive cyber liability insurance with limits of $1,000,000 per occurrence/loss and $2,000,000 general aggregate. If the coverage is maintained on a claims-made basis, the Vendor shall maintain such coverage for an additional three (3) years following termination of the contract.

For Commercial General Liability and Commercial Automobile Liability (CGL Coverage): The City will be named as an additional insured, under the commercial general liability (“CGL”) liability insurance policy coverage, for all liability arising out of the operations by or on behalf of the named insured, and this CGL liability policy protects the additional insured, its officers, agents and employees against liability for personal and bodily injuries, deaths or property damage or destruction arising in any respect, directly or indirectly, in the performance of the contract.

Each such CGL policy shall be endorsed with the following language: The City of Paramount, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (a) activities performed by or on behalf of the Named Insured, including the insured's general supervision of the Named Insured, (b) products and completed operations of the Named Insured, or (c) premises owned, leased or used by the Named Insured.

This CGL policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it.

The inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.

The Additional Insured coverage under the Consultant’s policy shall be primary and non-contributory and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13.

Deductibles and Self-Insured Retentions: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Waiver of Subrogation. All policies of Commercial General Liability, Commercial Automobile Liability, and Worker’s Compensation shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss.

Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, and agents to the extent of such coverage.

Evidence of Insurance. The Consultant shall deliver redacted copies of the required policies or original certificates of insurance and redacted or specimen endorsements issued by their insurer. The Consultant and its insurer are solely responsible for ensuring that the required insurance complies with this Agreement and provides adequate coverage for all services performed. The Consultant shall procure insurance policies that meet the stated standards.

At least fifteen (15) days before any policy expires, or within a reasonable time after policy renewal, the Consultant shall provide evidence of renewal or replacement coverage. If any policy is canceled or reduced, the Consultant must file evidence of reinstatement or replacement coverage within ten (10) days of receipt of written notice of the change.

The City may request copies of insurance policies and endorsements for informational purposes only, without assuming any obligation to verify compliance or adequacy.

WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations: (ONE OF THE

PARAGRAPHS BELOW MUST BE CHECKED)
□ I have and will maintain a certificate of consent from the California Labor Commission to selfinsure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this Agreement. □ I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:

Carrier: Gilbert Cohen Insurance Agency, Inc.

Policy Number : A09519629
□ I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of Paramount and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION COVERAGE IS UNLAWFUL,

AND SHALL SUBJECT AN EMPLOYER TO CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.

By: _________________________________ Dated: ______________, 20_____ 2025-08-05
Created by:

Elias Bettencourt
End-Point Wireless
Created for:

Grissel Chavez
City of Paramount
Grissel Chavez
City of Paramount
Security Project
15001 Paramount Blvd.#C, Paramount, CA 90723
Dear Grissel,
End-Point Wireless is pleased to have the opportunity to provide this proposal to City of Paramount as requested. The following proposal addresses system requirements as identified in our most recent survey of various sites.

At End-Point Wireless, we are dedicated to providing you with an integrated security solution with high-quality equipment and exemplary service.

If you have any questions or require additional information, please feel free to contact us.

Sincerely,
Elias Bettencourt Sr.

End-Point Wireless
[email protected]
951-756-6900
Your Custom Security Plan
Paramount Pond 15001 Paramount Blvd.#C, Paramount, CA 90723 - Scope of Work:

Procurement and labor of two (2) cameras, (2) one cellular gateway, two (2) 5 year Verkada camera license, and (2) one cellular gateway license.

End-Point Wireless (EPW) is to install a horn speaker system consisting of one (1) horn speaker. EPW will provide CAT6 cables for the horn.

Exclusions:

Attachments:
• Quote
• Site Map
24/7 Alarm Monitoring Services - Verkada Alarms
Solution Overview
EPW will implement Verkada's cloud-managed alarm system across the City's designated facilities. The service includes 24/7 professional monitoring by Verkada-authorized agents who receive alarm events, verify via live video, notify designated contacts, and dispatch emergency services when necessary.

Monitoring Centers & Certifications
Services are delivered from UL 827-listed, TMA Five-Diamond-certified monitoring centers staffed 24/7/365.

Video Verification & False Alarm Reduction
Advanced licenses allow agents encrypted access to video for real-time verification, minimizing false alarms.

Customer Obligations
City is responsible for correct arming/disarming, maintaining an up-to-date contact list, and managing alarm frequency.

Data Security & Privacy
All video and data are encrypted in transit and at rest. Agent access is limited and logged.

System Health & Support
EPW and City staff can monitor system health via Verkada Command. Hardware includes up to a 10-year warranty.

Service-Level Commitment
Monitoring agents respond to alarms within an average of 30 seconds.

Limitation of Liability
EPW's liability is limited to 60 months of licensing fees. Not responsible for disarmed alarms, misconfigurations, or external outages.

Grand Total $36,012.33
Tax $1,600.35
Total Price $34,411.98
Product List Price Sales Price Quantity Discount (Percentage) Total Price Verkada 5-Year Standard Alarm License $7,500.00 $7,500.00 1.00 20.00% $6,000.00 Verkada 5-Year Horn Speaker License, Capacity Increase $899.00 $899.00 1.00 20.00% $719.20 5-Year Four-Camera Multisensor License, Capacity Increase $2,699.00 $2,699.00 1.00 20.00% $2,159.20 Verkada 5-Year Camera License $899.00 $899.00 1.00 20.00% $719.20 Verkada 5-Year Cellular Gateway License $1,349.00 $1,349.00 2.00 20.00% $2,158.40 Verkada - BZ11 Horn Speaker $799.00 $799.00 1.00 20.00% $639.20 Verkada CB52-E Outdoor Bullet Camera, 2TB, 365 Days Max $3,899.00 $3,899.00 1.00 20.00% $3,119.20 Verkada CH52-E Outdoor Multisensor Camera, 8TB, 365 Days Max $12,699.00 $12,699.00 1.00 20.00% $10,159.20 Verkada GC31 Cellular Gateway, Outdoor $1,299.00 $1,299.00 2.00 20.00% $2,078.40 Verkada - Pendant Cap Mount $69.00 $69.00 1.00 20.00% $55.20 Verkada ACC-MNT-XLARM-1: Large Arm Mount $159.00 $192.00 1.00 20.00% $153.60 Verkada Square Junction Box Mount $89.00 $89.00 1.00 20.00% $71.20 Verkada - Pole Mount $209.00 $209.00 2.00 20.00% $334.40 19ft Scissor Lift Rental $1,271.58 $1,271.58 1.00 $1,271.58 Camera Labor Installation $154.00 $154.00 31.00 $4,774.00

End-Point Wireless
30141 Antelope Road
Menifee, California 92584
(800) 276-0415

STANDARD COMMERCIAL SECURITY AGREEMENT
Date: 2024-07/14/25
SUBSCRIBER: City of Paramount
AUTHORIZED CONTACT: Grissel Chavez
Contact email: [email protected]
Address:15001 Paramount Blvd.#C, Paramount, CA 90723

Subscriber assumes all risk of loss of material once delivered to the job site, Subscriber assumes all risk of loss of equipment while under Subscriber’s possession or control.

15. CARE AND SERVICE OF SECURITY SYSTEM: Subscriber agrees not to tamper with, remove or otherwise interfere with the Security System which shall remain in the same location as installed.

17. EXCULPATORY CLAUSE: THE PROVISIONS OF THIS SECTION DO NOT APPLY TO AND

PROVISIONS OF THIS SECTION DO NOT APPLY TO AND DO NOT AFFECT LIABILITY OF

END-POINT WIRELESS FOR CLAIMS AND LIABILITIES ARISING OUT OF ITS INSTALLATION ACTIVITIES. THOSE CLAIMS AND LIABILITIES ARE GOVERNED BY THE PROVISIONS OF EXHIBIT “A” HERETO.

24. CREDIT INVESTIGATION: Subscriber and any guarantor authorize END-POINT WIRELESS to conduct credit investigations from time to time to determine Subscriber’s and guarantor’s credit worthiness.

PROPOSITION 65 WARNING: Equipment and packaging may contain components containing chemicals known to The State of California to cause cancer, birth defects or other reproductive harm.

Payment Schedule For Project Grand Total:

Deposit (Due On Day of Signing): $26,947.14
Final Payment (Due Upon Completion): $6,736.78
Purchase Order Required:

PO Number(If no. enter "N/A"):

AP Contact Name:

Phone - Direct:

Email:

Title:

SUBSCRIBER ACKNOWLEDGES RECEIVING A FULLY EXECUTED COPY OF THIS AGREEMENT AND SCHEDULE OF EQUIPMENT AND SERVICES AT TIME OF EXECUTION.

Grissel Chavez
05 / 19 / 2025
EXHIBIT “A”

INSTALLATION TERMS AND CONDITIONS

EXHIBIT _A-1

EXHIBIT C

Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, and agents to the extent of such coverage.

The City may request copies of insurance policies and endorsements for informational purposes only, without assuming any obligation to verify compliance or adequacy.

WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations: (ONE OF THE

Carrier: Gilbert Cohen Insurance Agency, Inc.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION COVERAGE IS UNLAWFUL,

By: _________________________________ Dated: ______________, 20_____ 2025-08-05 Created by:

Elias Bettencourt
End-Point Wireless
Created for:

Grissel Chavez
City of Paramount
Grissel Chavez
City of Paramount
Security Project
7718 Somerset Blvd Paramount, CA 90723
Dear Grissel,
End-Point Wireless is pleased to have the opportunity to provide this proposal to City of Paramount as requested. The following proposal addresses system requirements as identified in our most recent survey of various sites.

At End-Point Wireless, we are dedicated to providing you with an integrated security solution with high-quality equipment and exemplary service.

If you have any questions or require additional information, please feel free to contact us.

Sincerely,
Elias Bettencourt Sr.

End-Point Wireless
[email protected]
951-756-6900
Your Custom Security Plan
Village Park 7718 Somerset Blvd - Scope of Work:

End-Point Wireless (EPW) is to replace a camera system consisting of three (3) cameras. The camera locations are as noted on the attached site map. EPW will provide CAT6 cables for all cameras. EPW will provide four (4) switches in IDF cabinet.

End-Point Wireless (EPW) is to replace an access control system consisting of 1 (1) door reader. The location of the readers are as noted in the attached site map.

End-Point Wireless (EPW) is to install a cellular gateway. The location of the gateway is as noted in the attached site map.

Paramount City CouncilAugust 12, 2025

Paramount City Council
August 12, 2025