Agenda
03.17.2026 AGENDA.PDF
Meeting Materials
03.17.2026 AGENDA PACKET.PDF
1. Documents:
2. Documents:
AGENDA
MEETINGS OF THE PUBLIC FINANCING AUTHORITY, WATER UTILITY AUTHORITY, HOUSING
SUCCESSOR, SUCCESSOR AGENCY, AND CITY COUNCIL
TUESDAY, MARCH 17, 2026
AT 6:00 P.M.
CITY HALL COUNCIL CHAMBERS
11710 TELEGRAPH ROAD
SANTA FE SPRINGS, CA 90670
CITY COUNCIL
Joe Angel Zamora, Mayor
Annette Rodriguez, Mayor Pro Tem
Juanita Martin, Councilmember
John M. Mora, Councilmember
William K. Rounds, Councilmember
CITY MANAGER
René Bobadilla, P.E.
CITY ATTORNEY
Rick Olivarez
CITY STAFF
Assistant City Manager Nicholas Razo
Interim Fire Chief Michael Kozicki
Police Chief Aviv Bar
Director of Community Development Cuong Nguyen
Director of Finance Julio Morales
Director of Parks and Recreation Gus Hernandez
Director of Police and Community Services Arlene Salazar Director of Public Works James Enriquez
City Clerk Maribel Garcia
March 17, 2026: City Council Meeting Page 2 of 6
NOTICES
This City Council Meeting (“Council”) will be held in person and will meet at City Hall – City Council Chambers, 11710 E. Telegraph Road, Santa Fe Springs, California. The meeting will be live streamed on the City’s YouTube Channel and can be accessed on the City’s website via the following link:
https://santafesprings.gov/city_council/city_council_meetings/index.php Americans with Disabilities Act: In compliance with the ADA, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office.
Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
SB 1439: Effective January 1, 2025, City Council Members are subject to SB 1439 and cannot participate in certain decisions for a year after accepting campaign contributions of more than $500 from an interested person. The Council Member would need to disclose the donation and abstain from voting.
Public Comments: The public is encouraged to address City Council on any matter listed on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council on the day of the meeting, please fill out a speaker card provided at the door and submit it to City Clerk staff. You may also submit comments in writing by sending them to the City Clerk's Office at [email protected]. All written comments received by 12:00 p.m. the day of the City Council Meeting will be distributed to the City Council and made a part of the official record of the meeting.
Written comments will not be read at the meeting, only the name of the person submitting the comment will be announced. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting.
Council Meeting Start Times: If there is a closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 5:00 p.m. and open session shall start at 6:00 p.m. If there is no closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 6:00 p.m.
Please Note: Staff reports and supplemental attachments are available for inspection online and at the office of the City Clerk in City Hall, during regular business hours 7:30 a.m. – 5:30 p.m., Monday – Thursday. Telephone: (562) 868-0511.
March 17, 2026: City Council Meeting Page 3 of 6
CALL TO ORDER
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS – NONE
CHANGES TO AGENDA
PUBLIC COMMENTS ON NON-AGENDA, & NON-PUBLIC HEARING AGENDA ITEMS At this time, the general public may address the City Council on both non-agenda and non-public hearing agenda items. Comments relating to public hearing items will be heard during the public hearing. Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker. State Law prohibits the City Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the City Council.
STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST
PUBLIC HEARING
1. PUBLIC HEARING FOR FIRST READING OF ORDINANCE NO. 1167 TO AMEND SECTIONS 155.123 (CONDITIONAL USES), 155.153 (CONDITIONAL USES), 155.175.2 (USES), 155.183 (CONDITIONAL USES), 155.213 (CONDITIONAL USES), 155.243 (CONDITIONAL USES), AND ADD SECTION 155.725 (CONDITIONAL USE PERMIT FOR TRUCK, TRAILER, CHASSIS OR CONTAINER STORAGE) WITHIN TITLE 15, CHAPTER 155, OF THE SANTA FE SPRINGS MUNICIPAL CODE AND
DETERMINATION THAT THE PROJECT IS EXEMPT FROM CEQA (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Open the Public Hearing; and
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3. Find and determine that the proposed Zoning Code Amendment is consistent with the goals, policies, and programs of the City’s General Plan; and
4. Find and determine that this Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and
5. Introduce by title only and waive further reading of Ordinance No. 1167: An Ordinance of the City of Santa Fe Springs Municipal Code relating to the temporary storage of trucks, chassis, and containers on already entitled properties through approval of a Conditional Use Permit; and
6. Take such additional, related action that may be desirable.
March 17, 2026: City Council Meeting Page 4 of 6
2. PUBLIC HEARING TO CONSIDER APPROVAL OF AN OPERATING COVENANT AGREEMENT WITH THE OLIVE BANQUET INC. AND THE OLIVE BANQUET SS, LLC (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Open the Public Hearing;
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3. Determine that the approval of the Operating Covenant Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and
4. Approve the Operating Covenant Agreement with The Olive Banquet Inc. and The Olive Banquet SS, LLC for the property located at 11900 Telegraph Road and authorize the City Manager to execute the Operating Covenant Agreement and supporting exhibits substantially in the form presented, with such minor modifications as approved by the City Attorney; and
5. Take such additional, related action that may be desirable.
OLD BUSINESS - NONE
REGULAR BUSINESS
3. FISCAL YEAR 2025-26 MID-YEAR BUDGET ADJUSTMENTS (FINANCE) It is recommended that the City Council:
1. Approve staff recommendation of an additional appropriation of $440,000 to the FY 2025-26 General Fund Budget for Public Works emergency repairs and Parks & Recreation one-time costs and special event costs;
2. Approve staff recommendation for personnel adjustments of $77,087 to promote Economic Development, expand Public Safety, and other service enhancements.
3. Approve and adopt the revised salary schedule in Attachment B.
4. APPOINTMENT OF AN ALTERNATE TO THE SOUTHEAST WATER COALITION (CITY CLERK) It is recommended that the City Council:
1. Appoint an alternate to the Southeast Water Coalition; and
2. Take such additional, related action that may be desirable.
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine. Any items a Councilmember wishes to discuss should be designated at this time. All other items may be approved in a single motion.
Such approval will also waive the reading of any Ordinance.
PUBLIC FINANCING AUTHORITY
5. MINUTES OF THE FEBRUARY 17, 2026 PUBLIC FINANCING AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Public Financing Authority:
1. Approve the minutes as submitted.
March 17, 2026: City Council Meeting Page 5 of 6
6. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED THROUGH THE CITY OF
SANTA FE SPRINGS PUBLIC FINANCING AUTHORITY (PFA) (FINANCE) It is recommended that the Public Financing Authority:
1. Receive and file the report.
WATER UTILITY AUTHORITY
7. MINUTES OF THE FEBRUARY 17, 2026 WATER UTILITY AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Water Utility Authority:
1. Approve the minutes as submitted.
8. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED THROUGH THE CITY OF
SANTA FE SPRINGS WATER UTILITY AUTHORITY (WUA) (FINANCE) It is recommended that the Water Utility Authority:
1. Receive and file the report.
HOUSING SUCCESSOR
9. MINUTES OF THE FEBRUARY 17, 2026 HOUSING SUCCESSOR MEETINGS (CITY CLERK) It is recommended that the Housing Successor:
1. Approve the minutes as submitted.
SUCCESSOR AGENCY
10. MINUTES OF THE FEBRUARY 17, 2026 HOUSING SUCCESSOR MEETINGS (CITY CLERK) It is recommended that the Successor Agency:
1. Approve the minutes as submitted.
11.APPROVAL OF NON-EXCLUSIVE LICENSE AGREEMENT WITH VEHICLE PARKING UNLIMITED,
LLC FOR USE OF MC&C IV FOR COMMERCIAL VEHICLE PARKING AND STORAGE (COMMUNITY DEVELOPMENT)
It is recommended that the Successor Agency:
1. Determine that the proposed non-exclusive license agreement with Vehicle Parking Unlimited, LLC (VPU) is exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines Section 15301 (Minor Alterations to Land); and
2. Adopt Resolution 10003, approving a month-to-month license agreement between the Successor Agency to the Community Development Commission/Redevelopment Agency of the City of Santa Fe Springs (Successor Agency) and VPU for the use of MC&C IV site located at 12381 Romandel Avenue; and
3. Take such additional, related, action that may be desirable.
CITY COUNCIL
12. MINUTES OF THE FEBRUARY 17, 2026 CITY COUNCIL MEETINGS (CITY CLERK) It is recommended that the City Council:
1. Approve the minutes as submitted.
March 17, 2026: City Council Meeting Page 6 of 6
13.APPROVE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SANTA FE SPRINGS AND UNIVERSAL WASTE SYSTEMS, INC., TO PROVIDE ILLEGAL DUMPING CLEAN UP AND
DISPOSAL SERVICES (POLICE AND COMMUNITY SERVICES)
It is recommended that the City Council:
1. Authorize the City Manager to enter into a Professional Services Agreement with Universal Waste System, Inc. in final form that is acceptable to the City Attorney to provide removal and disposal services of illegally dumped items throughout the City; and
2. Approve an agreement not-to-exceed $300,000 for expenditures related to services provided by the hauler; and
3. Take such additional, related, action that may be desirable.
14. 2025 HOUSING ELEMENT ANNUAL PROGRESS REPORT (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Find that the preparation, review, and submission of the 2025 Housing Element Annual Progress Report is not subject to the California Environmental Quality Act (CEQA), as the actions are not a project as defined by Section 15378(b)(2) of the Public Resources Code; and
2. Receive and file the 2025 Housing Element Annual Progress Report; and
3. Authorize staff to submit the 2025 Housing Element Annual Progress Report to the California Department of Housing and Community Development (HCD) and to the Governor’s Office of Planning and Research (OPR), and
4. Take such additional, related, action that may be desirable.
15. AWARD OF CONTRACTS – ON-CALL PROFESSIONAL ARCHITECTURAL CONSULTING SERVICES (RFQ NO. 26-1) (COMMUNITY DEVELOPMENT)
It is recommended that the City Council:
1. Adopt Resolution No. 10004 awarding Professional Services Agreements to Dahlin Group, dSantana Arquitectura, RACAIA, Inc., RJM Design Group, TAIT & Associates Inc., and Tate Snyder Kimsley Architects, Inc., and authorizing the City Manager, or designee, to enter into and execute the Professional Services Agreements with all six firms; and
2. Take such additional, related action that may be desirable.
APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS
COUNCIL COMMENTS
Councilmember announcements; requests for future agenda items; conference/meeting reports.
Members of the City Council will provide a brief report on meetings attended at the expense of the local agency as required by Government Code Section 53232.3(d).
ADJOURNMENT
I, Maribel Garcia, City Clerk for the City of Santa Fe Springs hereby certify that a copy of this agenda has been posted no less than 72 hours at the following locations; City’s website at www.santafesprings.gov; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road.
AGENDA
MEETINGS OF THE PUBLIC FINANCING AUTHORITY, WATER UTILITY AUTHORITY, HOUSING
SUCCESSOR, SUCCESSOR AGENCY, AND CITY COUNCIL
TUESDAY, MARCH 17, 2026
AT 6:00 P.M.
CITY HALL COUNCIL CHAMBERS
11710 TELEGRAPH ROAD
SANTA FE SPRINGS, CA 90670
CITY COUNCIL
Joe Angel Zamora, Mayor
Annette Rodriguez, Mayor Pro Tem
Juanita Martin, Councilmember
John M. Mora, Councilmember
William K. Rounds, Councilmember
CITY MANAGER
René Bobadilla, P.E.
CITY ATTORNEY
Rick Olivarez
CITY STAFF
Assistant City Manager Nicholas Razo
Interim Fire Chief Michael Kozicki
Police Chief Aviv Bar
Director of Community Development Cuong Nguyen
Director of Finance Julio Morales
Director of Parks and Recreation Gus Hernandez
Director of Police and Community Services Arlene Salazar Director of Public Works James Enriquez
City Clerk Maribel Garcia
March 17, 2026: City Council Meeting Page 2 of 6
NOTICES
This City Council Meeting (“Council”) will be held in person and will meet at City Hall – City Council Chambers, 11710 E. Telegraph Road, Santa Fe Springs, California. The meeting will be live streamed on the City’s YouTube Channel and can be accessed on the City’s website via the following link:
https://santafesprings.gov/city_council/city_council_meetings/index.php Americans with Disabilities Act: In compliance with the ADA, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office.
Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
SB 1439: Effective January 1, 2025, City Council Members are subject to SB 1439 and cannot participate in certain decisions for a year after accepting campaign contributions of more than $500 from an interested person. The Council Member would need to disclose the donation and abstain from voting.
Public Comments: The public is encouraged to address City Council on any matter listed on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council on the day of the meeting, please fill out a speaker card provided at the door and submit it to City Clerk staff. You may also submit comments in writing by sending them to the City Clerk's Office at [email protected]. All written comments received by 12:00 p.m. the day of the City Council Meeting will be distributed to the City Council and made a part of the official record of the meeting.
Written comments will not be read at the meeting, only the name of the person submitting the comment will be announced. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting.
Council Meeting Start Times: If there is a closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 5:00 p.m. and open session shall start at 6:00 p.m. If there is no closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 6:00 p.m.
Please Note: Staff reports and supplemental attachments are available for inspection online and at the office of the City Clerk in City Hall, during regular business hours 7:30 a.m. – 5:30 p.m., Monday – Thursday. Telephone: (562) 868-0511.
March 17, 2026: City Council Meeting Page 3 of 6
CALL TO ORDER
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS – NONE
CHANGES TO AGENDA
PUBLIC COMMENTS ON NON-AGENDA, & NON-PUBLIC HEARING AGENDA ITEMS At this time, the general public may address the City Council on both non-agenda and non-public hearing agenda items. Comments relating to public hearing items will be heard during the public hearing. Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker. State Law prohibits the City Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the City Council.
STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST
PUBLIC HEARING
1. PUBLIC HEARING FOR FIRST READING OF ORDINANCE NO. 1167 TO AMEND SECTIONS 155.123 (CONDITIONAL USES), 155.153 (CONDITIONAL USES), 155.175.2 (USES), 155.183 (CONDITIONAL USES), 155.213 (CONDITIONAL USES), 155.243 (CONDITIONAL USES), AND ADD SECTION 155.725 (CONDITIONAL USE PERMIT FOR TRUCK, TRAILER, CHASSIS OR CONTAINER STORAGE) WITHIN TITLE 15, CHAPTER 155, OF THE SANTA FE SPRINGS MUNICIPAL CODE AND
DETERMINATION THAT THE PROJECT IS EXEMPT FROM CEQA (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Open the Public Hearing; and
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3. Find and determine that the proposed Zoning Code Amendment is consistent with the goals, policies, and programs of the City’s General Plan; and
4. Find and determine that this Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and
5. Introduce by title only and waive further reading of Ordinance No. 1167: An Ordinance of the City of Santa Fe Springs Municipal Code relating to the temporary storage of trucks, chassis, and containers on already entitled properties through approval of a Conditional Use Permit; and
6. Take such additional, related action that may be desirable.
March 17, 2026: City Council Meeting Page 4 of 6
2. PUBLIC HEARING TO CONSIDER APPROVAL OF AN OPERATING COVENANT AGREEMENT WITH THE OLIVE BANQUET INC. AND THE OLIVE BANQUET SS, LLC (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Open the Public Hearing;
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3. Determine that the approval of the Operating Covenant Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and
4. Approve the Operating Covenant Agreement with The Olive Banquet Inc. and The Olive Banquet SS, LLC for the property located at 11900 Telegraph Road and authorize the City Manager to execute the Operating Covenant Agreement and supporting exhibits substantially in the form presented, with such minor modifications as approved by the City Attorney; and
5. Take such additional, related action that may be desirable.
OLD BUSINESS - NONE
REGULAR BUSINESS
3. FISCAL YEAR 2025-26 MID-YEAR BUDGET ADJUSTMENTS (FINANCE) It is recommended that the City Council:
1. Approve staff recommendation of an additional appropriation of $440,000 to the FY 2025-26 General Fund Budget for Public Works emergency repairs and Parks & Recreation one-time costs and special event costs;
2. Approve staff recommendation for personnel adjustments of $77,087 to promote Economic Development, expand Public Safety, and other service enhancements.
3. Approve and adopt the revised salary schedule in Attachment B.
4. APPOINTMENT OF AN ALTERNATE TO THE SOUTHEAST WATER COALITION (CITY CLERK) It is recommended that the City Council:
1. Appoint an alternate to the Southeast Water Coalition; and
2. Take such additional, related action that may be desirable.
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine. Any items a Councilmember wishes to discuss should be designated at this time. All other items may be approved in a single motion.
Such approval will also waive the reading of any Ordinance.
PUBLIC FINANCING AUTHORITY
5. MINUTES OF THE FEBRUARY 17, 2026 PUBLIC FINANCING AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Public Financing Authority:
1. Approve the minutes as submitted.
March 17, 2026: City Council Meeting Page 5 of 6
6. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED THROUGH THE CITY OF
SANTA FE SPRINGS PUBLIC FINANCING AUTHORITY (PFA) (FINANCE) It is recommended that the Public Financing Authority:
1. Receive and file the report.
WATER UTILITY AUTHORITY
7. MINUTES OF THE FEBRUARY 17, 2026 WATER UTILITY AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Water Utility Authority:
1. Approve the minutes as submitted.
8. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED THROUGH THE CITY OF
SANTA FE SPRINGS WATER UTILITY AUTHORITY (WUA) (FINANCE) It is recommended that the Water Utility Authority:
1. Receive and file the report.
HOUSING SUCCESSOR
9. MINUTES OF THE FEBRUARY 17, 2026 HOUSING SUCCESSOR MEETINGS (CITY CLERK) It is recommended that the Housing Successor:
1. Approve the minutes as submitted.
SUCCESSOR AGENCY
10. MINUTES OF THE FEBRUARY 17, 2026 HOUSING SUCCESSOR MEETINGS (CITY CLERK) It is recommended that the Successor Agency:
1. Approve the minutes as submitted.
11.APPROVAL OF NON-EXCLUSIVE LICENSE AGREEMENT WITH VEHICLE PARKING UNLIMITED,
LLC FOR USE OF MC&C IV FOR COMMERCIAL VEHICLE PARKING AND STORAGE (COMMUNITY DEVELOPMENT)
It is recommended that the Successor Agency:
1. Determine that the proposed non-exclusive license agreement with Vehicle Parking Unlimited, LLC (VPU) is exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines Section 15301 (Minor Alterations to Land); and
2. Adopt Resolution 10003, approving a month-to-month license agreement between the Successor Agency to the Community Development Commission/Redevelopment Agency of the City of Santa Fe Springs (Successor Agency) and VPU for the use of MC&C IV site located at 12381 Romandel Avenue; and
3. Take such additional, related, action that may be desirable.
CITY COUNCIL
12. MINUTES OF THE FEBRUARY 17, 2026 CITY COUNCIL MEETINGS (CITY CLERK) It is recommended that the City Council:
1. Approve the minutes as submitted.
March 17, 2026: City Council Meeting Page 6 of 6
13.APPROVE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SANTA FE SPRINGS AND UNIVERSAL WASTE SYSTEMS, INC., TO PROVIDE ILLEGAL DUMPING CLEAN UP AND
DISPOSAL SERVICES (POLICE AND COMMUNITY SERVICES)
It is recommended that the City Council:
1. Authorize the City Manager to enter into a Professional Services Agreement with Universal Waste System, Inc. in final form that is acceptable to the City Attorney to provide removal and disposal services of illegally dumped items throughout the City; and
2. Approve an agreement not-to-exceed $300,000 for expenditures related to services provided by the hauler; and
3. Take such additional, related, action that may be desirable.
14. 2025 HOUSING ELEMENT ANNUAL PROGRESS REPORT (COMMUNITY DEVELOPMENT) It is recommended that the City Council:
1. Find that the preparation, review, and submission of the 2025 Housing Element Annual Progress Report is not subject to the California Environmental Quality Act (CEQA), as the actions are not a project as defined by Section 15378(b)(2) of the Public Resources Code; and
2. Receive and file the 2025 Housing Element Annual Progress Report; and
3. Authorize staff to submit the 2025 Housing Element Annual Progress Report to the California Department of Housing and Community Development (HCD) and to the Governor’s Office of Planning and Research (OPR), and
4. Take such additional, related, action that may be desirable.
15. AWARD OF CONTRACTS – ON-CALL PROFESSIONAL ARCHITECTURAL CONSULTING SERVICES (RFQ NO. 26-1) (COMMUNITY DEVELOPMENT)
It is recommended that the City Council:
1. Adopt Resolution No. 10004 awarding Professional Services Agreements to Dahlin Group, dSantana Arquitectura, RACAIA, Inc., RJM Design Group, TAIT & Associates Inc., and Tate Snyder Kimsley Architects, Inc., and authorizing the City Manager, or designee, to enter into and execute the Professional Services Agreements with all six firms; and
2. Take such additional, related action that may be desirable.
APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS
COUNCIL COMMENTS
Councilmember announcements; requests for future agenda items; conference/meeting reports.
Members of the City Council will provide a brief report on meetings attended at the expense of the local agency as required by Government Code Section 53232.3(d).
ADJOURNMENT
I, Maribel Garcia, City Clerk for the City of Santa Fe Springs hereby certify that a copy of this agenda has been posted no less than 72 hours at the following locations; City’s website at www.santafesprings.gov; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road.
ITEM # 1
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Cuong Nguyen, Director of Community Development
SUBJECT: PUBLIC HEARING FOR FIRST READING OF ORDINANCE NO. 1167 TO AMEND SECTIONS 155.123 (CONDITIONAL USES), 155.153 (CONDITIONAL USES), 155.175.2 (USES), 155.183 (CONDITIONAL USES), 155.213 (CONDITIONAL USES), 155.243 (CONDITIONAL USES), AND ADD SECTION 155.725 (CONDITIONAL USE
PERMIT FOR TRUCK, TRAILER, CHASSIS OR CONTAINER STORAGE) WITHIN TITLE 15, CHAPTER 155, OF THE SANTA FE SPRINGS MUNICIPAL CODE AND
DETERMINATION THAT THE PROJECT IS EXEMPT FROM CEQA
DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the City Council:
1. Open the Public Hearing; and
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3. Find and determine that the proposed Zoning Code Amendment is consistent with the goals, policies, and programs of the City’s General Plan; and
4. Find and determine that this Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and
5. Introduce by title only and waive further reading of Ordinance No. 1167: An Ordinance of the City of Santa Fe Springs Municipal Code relating to the temporary storage of trucks, chassis, and containers on already entitled properties through approval of a Conditional Use Permit; and
6. Take such additional, related action that may be desirable.
FISCAL IMPACT
Adoption of the proposed Zoning Code Amendment will not have a direct fiscal impact. The amendment establishes a regulatory framework that may allow property owners to generate interim revenue from vacant entitled sites, thereby supporting property maintenance, remediation, and readiness for future development.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Ordinance No. 1167 – Temporary Storage of Trucks, Trailers, Chassis, and Containers
BACKGROUND
The City of Santa Fe Springs contains properties that have received zoning approvals, land use entitlements, or other discretionary approvals for future development but remain vacant for extended periods due to market conditions, financing, or the need to complete additional regulatory processes.
An extended vacancy can contribute to nuisance conditions, illegal dumping, and visual blight.
The proposed Zoning Code Amendment establishes a mechanism to allow regulated interim storage of trucks, trailers, chassis, and shipping containers on such properties through approval of a Conditional Use Permit (CUP). The City finds that, when properly screened and regulated, this type of interim use can be compatible with industrial and mixed-use areas while reducing adverse impacts associated with vacant lots and helping property owners support site upkeep and environmental remediation efforts.
The amendment would:
• Add Section 155.725 establishing a Conditional Use Permit process and operating standards for truck, trailer, chassis, and container storage.
• Allow this interim use in the C-1, C-4, M-1, M-2, ML, MU, MU-DT, and MU-TOD zones, subject to CUP approval.
• Require that the site be undeveloped and have received, or be concurrently receiving, development plan approval for future development.
• Prohibit washing, repair, or habitation of vehicles or containers on site. • Require perimeter fencing, controlled access, security measures, and compliance with all applicable regulations.
• Limit permits to an initial term not to exceed two years, with limited extension eligibility. • Establish application materials, operational standards, findings, and revocation provisions.
Corresponding amendments to Sections 155.123, 155.153, 155.175.2, 155.183, 155.213, and 155.243 incorporate this use into the City’s use tables and conditional use listings, referencing the new regulatory section (155.725).
PLANNING COMMISSION PUBLIC HEARING AND RECOMMENDATION
On February 18, 2026, the Planning Commission conducted a duly noticed public hearing to review and consider the proposed Zoning Code Amendment (ZCA) regarding the temporary storage of trucks, trailers, chassis, and containers. Following a thorough evaluation of written and oral reports and public discussions during the meeting, the Commissioners voted unanimously to adopt Resolution No. 314-2026. This resolution recommends that the City Council approve and adopt Ordinance No. 1167 to effectuate the proposed amendments to the text of the City’s Municipal Code, and determine that the proposed ZCA is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Ordinance No. 1167 – Temporary Storage of Trucks, Trailers, Chassis, and Containers
As part of the final review process, minor revisions have been incorporated into the proposed Zoning Code Amendment, including a clarifying amendment that ensures the subject site has been approved or will be approved for future development in accordance with the intent of the proposed ordinance.
Specific revisions have been incorporated into Section 155.725 (A)(1).
ANALYSIS
The proposed Zoning Code Amendment is consistent with the Santa Fe Springs 2040 General Plan, particularly the following Land Use policies:
• Policy LU-1.2 – Economic Diversity, by supporting continued economic activity and interim revenue-generating uses on entitled properties awaiting development. • Policy LU-3.4 – Repurpose Petroleum Production Lands, by helping property owners maintain and prepare sites transitioning from prior industrial uses. • Policy LU-4.7 – Adaptive Reuse and Redevelopment, by providing a temporary use option that reduces blight and supports timely redevelopment.
The CUP process ensures that each site is reviewed on a case-by-case basis, with the Planning Commission retaining discretion to impose conditions necessary to protect public health, safety, and welfare. The standards regarding screening, security, operational limits, and duration ensure the use remains temporary and does not conflict with long-term planning goals.
ENVIRONMENTAL
The Zoning Code Amendment is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), as the ordinance does not approve specific development or construction, and it can be seen with certainty that there is no possibility that adoption of the text amendment itself may have a significant effect on the environment. Any future project would be subject to separate environmental review, as applicable.
DISCUSSION
The proposed Zoning Code Amendment addresses vacant properties that have received, or are pursuing, development approvals but remain undeveloped due to market conditions, financing, environmental review, or construction timing. An extended vacancy can contribute to illegal dumping, nuisance activity, and visual blight.
The amendment establishes a regulated interim use allowing truck, trailer, chassis, and container storage on eligible sites through approval of a Conditional Use Permit (CUP). The intent is to provide a temporary and controlled use that activates vacant land, supports site maintenance and potential remediation efforts, and reduces nuisance conditions — without altering the City’s long-term land use vision.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Ordinance No. 1167 – Temporary Storage of Trucks, Trailers, Chassis, and Containers
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
The ordinance includes safeguards to ensure the use remains temporary and compatible, including time limits, operational restrictions, security requirements, case-by-case Planning Commission review, and clear revocation provisions. These standards ensure interim storage remains subordinate to future development and consistent with the City’s long-term planning goals.
PUBLIC NOTIFICATION
This matter was set for Public Hearing in accordance with the requirements of Sections 65090 and 65091 of the State Planning, Zoning, and Development Laws and the requirements of Sections 155.860 through 155.864 of the City’s Municipal Code.
The legal notice was posted at Santa Fe Springs City Hall, the City’s Town Center Kiosk, and the Santa Fe Springs Library on March 4, 2026, and published in a newspaper of general circulation (Los Cerritos Community News) on March 4, 2026, as required by the State Zoning and Development Laws. As of the date of this report, staff have not received any further inquiries regarding the Project.
SUMMARY/NEXT STEPS
Staff is recommending that the City Council approve and adopt Ordinance No. 1167 to effectuate the proposed amendments to the text of the City’s Municipal Code and determine that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3). Upon City Council approval of the first reading of Ordinance No. 1167, the Ordinance will be placed on the City Council meeting agenda of April 7, 2026, for a second reading. If adopted, the Ordinance will take effect on May 7, 2026.
ATTACHMENT(S):
A. Ordinance No. 1167
a. Exhibit A – Amendments to Sections 155.123 (Conditional Uses), 155.153 (Conditional Uses), 155.175.2 (Uses), 155.183 (Conditional Uses), 155.213 (Conditional Uses), 155.243 (Conditional Uses), And Add Section 155.725 (Conditional Use Permit For Truck, Trailer, Chassis Or Container Storage) Within Title 15, Chapter 155, Of The Santa Fe Springs Municipal Code
Exhibit A – Zone Code Amendments
Key:
Normal Text= Existing unmodified Code language
Strikethrough Text = Proposed language to be removed from existing Code Underline Text = Proposed language to be added to Code
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.725 CONDITIONAL USE PERMIT FOR TRUCK, TRAILER CHASSIS OR CONTAINER STORAGE is hereby added as follows:
§155.725 CONDITIONAL USE PERMIT FOR THE STORAGE OF TRUCKS, TRAILERS,
CHASSIS OR CONTAINERS
A Conditional Use Permit (CUP) may be obtained for the storage of trucks, trailers, chassis or containers, as defined in § 155.003, in the C-1, C-4, M-L, M-1, M-2, MU, MU-DT, and MU-TOD zones in accordance with the requirements of this section. (A) Required Site Characteristics
(1) The subject site shall have received a development plan approval and a development agreement has been entered into or shall have received a development plan approval concurrently with the approval of a development agreement for the future development of the subject site concurrently with the approval of a CUP pursuant to this Section. For the purposes of this Section, “development plan approval” shall mean a development plan approval pursuant to Section 155.735 et seq. or equivalent zoning approval to permit development of the subject site.
(2) The subject site, or a portion thereof, used for storage of trucks, trailers, chassis, or containers shall be undeveloped.
(B) Standard Conditions of Approval. In addition to any other conditions of approval set forth in the CUP, the following conditions shall apply to all permits granted pursuant to this section. Nothing in this section is intended to limit the City’s authority to conditionally approve an application for a CUP or renewal thereof to protect and promote the public welfare, health and safety. The Planning Commission shall have discretion to modify or amend these conditions on a case-by-case basis as may be necessary or appropriate under the circumstances:
(1) The permit shall be limited to a period of not more than two years, unless an extension is granted by the Planning Commission as set forth in this section.
(2) The development agreement shall be executed and entered into prior to the issuance of the first building permit. For purposes of this section, building permit shall mean demolition, grading, or building permit. (3) The use shall operate in such a manner as to not be detrimental to property or improvements in the surrounding area or to the public health, safety, or general welfare.
(4) The truck, trailer, chassis or container storage use shall fully comply with all applicable building, fire, and other state and local laws. (5) Washing or repairing of trucks, trailers, chassis or other containers is strictly prohibited at all times.
(6) Sleeping, living, or otherwise occupying any truck, trailer, chassis, or container while parked or stored on the subject site shall be strictly prohibited at all times.
(7) Trucks, trailers, chassis, and/or containers shall not be located within the required setback areas for the underlying zoning district. (8) Maximum Capacity. The total number of trucks, trailers, chassis or containers shall be determined on a case-by-case basis, based on site size.
(9) Security. The site shall be secured with controlled access gates and perimeter fencing. Gates shall remain closed when the site is not in operation.
(10) Perimeter fencing. A minimum six-foot fence shall be installed and maintained along all property lines of the subject site. (C) Application Filing, Fees and Process
(1) Application and Contents. Any person seeking a conditional use permit pursuant to this section, shall as part of their application, provide the following information:
a. Name of applicant.
b. Adress of subject site.
c. Description of all activities involved, including but not limited to, the number and type of truck, trailers, chassis, or container to be stored and any items that will be stored with them and hours in which the subject site will be utilized for the proposed use.
d. Duration of proposed activities.
e. A site plan accurately drawn to scale depicting vehicular access and queuing, fire lanes, perimeter fencing, and storage areas. Site plans must comply with all applicable stormwater run-off and NPDES requirements.
f. Approved zoning land use approvals or entitlements for the future development of subject site, including but not limited to a development plan approval, shall have been granted within the last 24 months or shall concurrently submitted with the request for truck, trailer, or container storage use pursuant to this section. g. A security or safety plan for the proposed use.
h. A site maintenance and operations plan for ongoing property cleaning, dust mitigation, and litter control.
(2) Filing Fee. By resolution, the City Council shall establish and from time to time adjust a schedule of fees for the issuance of a Conditional Use Permit pursuant to this section. Fees shall be calculated so as to recover the cost of administration and enforcement of this section, including but not limited to, issuing a Conditional Use Permit, and administering this Conditional Use Permit program.
(3) Findings. The approval of the Conditional Use Permit for the storage of trucks, trailers, chassis, or containers may be granted by the Planning Commission, only if all of the following findings can be made:
(a) The operation of the requested conditional use at the subject site would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare; (b) The subject site is adequate in size and shape to accommodate the temporary use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the lot; (c) The subject site is adequately served by the streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the temporary use would or could reasonably be expected to generate; and
(d) The use is consistent with all applicable provisions of the General Plan, any applicable specific plan, this Code and other City regulations; and
(e) Adequate temporary parking to accommodate vehicular traffic to be generated by the use would be available on-site.
(4) Decision.
(a) A letter setting forth the Planning Commissions action granting or denying the conditional use permit shall be mailed to the applicant pursuant to §155.719.
(5) Appeal of Decision
(a) An appeal of the decision made by the Planning Commission shall be made in writing and filed with the City Clerk.
(b) Said appeal must be received within 14 days from the date of the decision pursuant to §155.865. The filing of an appeal within the prescribed time limit shall have the effect of staying the effective date of the Commission’s action until such time as the City Council has acted on the appeal.
(c) Each appeal shall be considered de novo (new) and the City Council, as the hearing body, may reverse, modify or affirm the decision in regard to the entire project in whole or in part. In taking its action on an appeal, the City Council shall state the basis for its action. The City Council may approve (in full or in part), conditionally approve (in full or in part), and may modify , delete, or add such conditions as it deems necessary. The City Council may also refer the matter back to the Planning Commission for further action.
(D) Extension of Conditional Use Permit
(1) The holder of a conditional use permit pursuant to this Section may file an application with the Planning Commission Secretary to request a twelvemonth extension. The applicant shall submit the request for such extension at least 90 days but no more than 180 days prior to the expiration of the permit.
(2) The conditional use permit may be extended for no more than one twelvemonth period beyond the term of the original approval. (3) The Planning Commission may grant the extension if it finds:
(a) That there have been no changes in the conditions or circumstances of the subject site or operations that would have been grounds for denial of the original permit application; and
(b) That the applicant is in compliance with all permit terms and conditions, and all local, state, and federal laws.
(E) Abandonment and Violation
(1) A conditional use permit granted pursuant to this Section which is , or has been unused, abandoned or discontinued for a period of twelve months, shall become null and void. The abandonment or nonuse of the permit for a period of twelve consecutive months shall terminate said permit and any privileges granted thereunder shall become null and void. (2) Violation of any term or condition of the permit, or any local, state, or federal law, is cause for the permit to be revoked pursuant to section 155.811, et seq of this code.
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.123 CONDITIONAL USES is hereby amended to read as follows:
§155.123 CONDITIONAL USES.
(K) Truck, Trailer, Chassis, or Container Storage, subject to the regulation set forth in § 155.725.
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.153 CONDITIONAL USES is hereby amended to read as follows:
§155.153 CONDITIONAL USES.
(MM) Truck, Trailer, Chassis, or Container Storage, subject to the regulation set forth in § 155.725.
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.175.2 USES is hereby amended to include the following new line item in Table 1: Mixed-Use Allowed Uses and Permit Requirements as follows:
Truck, Trailer, Chassis or Container
Storage subject to the regulations set
forth in § 155.725
CUP CUP CUP Subject to
regulations in
§155.725
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.183 CONDITIONAL USES is hereby amended to read as follows:
§155.183 CONDITIONAL USES.
(J) Truck, Trailer, Chassis, or Container Storage, subject to the regulation set forth in § 155.725.
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.213 CONDITIONAL USES is hereby amended to read as follows:
§155.213 CONDITIONAL USES.
(Z) Truck, Trailer, Chassis, or Container Storage, subject to the regulation set forth in § 155.725.
Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.243 CONDITIONAL USES is hereby amended to include the following permitted use:
§155.243 CONDITIONAL USES.
(P) Truck, Trailer, Chassis, or Container Storage, subject to the regulation set forth in § 155.725.
ORDINANCE NO. 1167 1
ST
- READING: 03/17/2026
2 ND - READING: 04/07/2026
ORDINANCE NO. 1167
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS ADOPTING A ZONE TEXT AMENDMENT TO AMEND SECTIONS 155.123 (CONDITIONAL USES), 155.153 (CONDITIONAL USES), 155.175.2 (USES), 155.183 (CONDITIONAL USES), 155.213 (CONDITIONAL USES), 155.243 (CONDITIONAL USES), AND ADD SECTION 155.725 (CONDITIONAL USE PERMIT FOR TRUCK, TRAILER, CHASSIS OR CONTAINER STORAGE) WITHIN TITLE 15, CHAPTER 155,
OF THE SANTA FE SPRINGS MUNICIPAL CODE
WHEREAS, pursuant to California Constitution Article XI, Section 7, the City of Santa Fe Springs (the “City”), a general law city, has the authority to enact local planning and land use regulations to protect the public health, safety, and welfare of its residents through its police power; and
WHEREAS, the City’s General Plan and Zoning Code establish land use designations and development standards intended to promote orderly development, economic vitality, and compatible land uses throughout the City; and WHEREAS, certain properties within the City have received, or are in the process of receiving, zoning approvals, land use entitlements, or other discretionary approvals for future development; and
WHEREAS, such properties may remain vacant for extended periods of time prior to commencement of development due to financing, market conditions, and the need to complete required municipal processes and approvals; and WHEREAS, prolonged vacancy of entitled properties may contribute to blight, nuisance conditions, and illegal dumping; and
WHEREAS, the City finds that allowing regulated interim uses on vacant entitled properties may assist property owners in generating interim revenue while preparing for future development and also reduce the adverse impacts associated with vacant and unused lots in the City; and
WHEREAS, the City further finds that such interim revenue may support required environmental assessment, cleanup, and remediation efforts; and WHEREAS, the City has prepared a Zone Text Amendment to the City’s Zoning Ordinance, as codified in Title 15 (Land Use), Chapter 155 (Zoning) of the Santa Fe Springs Municipal Code, which amends Sections 155.172 (Uses), 155.213 (Conditional Uses), 155.243 (Conditional Uses), 155.183 (Conditional Uses), 155.123 (Conditional Uses), 155.153 (Conditional Uses) and adds Section 155.725 (Conditional Use Permit for Truck, Trailer Chassis or Container Storage); and
ORDINANCE NO. 1167 1
ST
- READING: 03/17/2026
2 ND - READING: 04/07/2026
WHEREAS, the City finds that the temporary storage of trucks, chassis, and shipping containers, when appropriately screened and regulated, can be compatible with surrounding uses and may reduce adverse impacts of vacant and unused lots; and WHEREAS, the purpose of the Ordinance is to allow for the temporary storage of trucks, chassis, and containers on already entitled properties through approval of a Conditional Use Permit, thereby allowing the City to evaluate site-specific conditions and impose operational and development standards; and
WHEREAS, on January 23, 2026, the City of Santa Fe Springs Department of Planning and Development published a legal notice in the Los Cerritos Community News, a local paper of general circulation, indicating the date and time of the public hearing for the Planning Commission. A public hearing notice was also posted in the Santa Fe Springs City Hall Window, the City’s Town Center kiosk, and Santa Fe Springs Library; and
WHEREAS, pursuant to Government Code Section 65854, the Planning Commission conducted a duly noticed public hearing on this matter on February 18, 2026, wherein the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents regarding proposed Ordinance 1167; and WHEREAS, at the close of the public hearing, the Planning Commission voted to recommend approval of the proposed ordinance by a 4-0 vote; and WHEREAS, on March 17, 2026, the City Council held a duly noticed public hearing regarding the proposed Ordinance, considered all public comments received before and during the public hearing, the presentation by City Staff, the relevant staff report inclusive of the Planning Commission’s recommendation, and all other pertinent documents regarding the proposed Ordinance; and
WHEREAS, the proposed Ordinance is consistent with the City’s General Plan, including Land Use Policy 1.2, in that it supports continued economic activity by allowing interim revenue-generating uses on entitled properties awaiting development; and WHEREAS, the Ordinance is further consistent with the City’s General Plan, including Land Use Policy 4.7, because it provides a temporary use option for underutilized or vacant properties, thereby promoting adaptive reuse and timely redevelopment; and
WHEREAS, the City Council desires to establish a clear regulatory framework that allows property owners with approved or pending land use entitlements to utilize vacant sites for the storage of trucks, trailer chassis, and/or containers, while preserving the City’s long-term planning goals and encouraging the timely development of the land.
ORDINANCE NO. 1167 1
ST
- READING: 03/17/2026
2 ND - READING: 04/07/2026
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
SANTA FE SPRINGS DOES HEREBY FIND, DETERMINE, AND ORDAIN AS FOLLOWS:
SECTION I. Findings:
1. The above recitals are true and correct and are a substantial part of this Ordinance.
2. That the facts in this matter are as stated in the staff report regarding the proposed amendments to the text of the City’s Zoning Ordinance.
3. The Exhibits attached to this Ordinance are each incorporated by reference and made a part of this Ordinance.
4. The proposed Ordinance is consistent with the following Santa Fe Springs General Plan Goals and Policies:
a. Policy LU-1.2: Economic Diversity. Support a diversified economy with a balance of small and large businesses across a broad range of industries that provide employment, commercial, and experiential opportunities. b. Policy LU-3.4: Repurpose Petroleum Production Lands. Encourage the remediation and development of properties transitioning from petroleum production.
c. Policy LU-4.7: Adaptive Reuse and Redevelopment. Collaborate with business owners and landowners with underinvested properties to support adaptive reuse and redevelopment.
5. The Ordinance meets the requirements as contained in State Planning and Zoning Law (Government Code § 65800 et seq.)
6. The Ordinance has been prepared and will be adopted in accordance with the requirements of the State Planning and Zoning Law
SECTION II. Amendments:
1. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.123 CONDITIONAL USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
2. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.153 CONDITIONAL USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
ORDINANCE NO. 1167 1
ST
- READING: 03/17/2026
2 ND - READING: 04/07/2026
3. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.725
CONDITIONAL USE PERMIT FOR TRUCK, TRAILER CHASSIS OR
CONTAINER STORAGE is hereby amended as provided in Exhibit “A” attached hereto and incorporated herein by reference.
4. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.175.2 USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
5. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.183 CONDITIONAL USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
6. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.213 CONDITIONAL USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
7. Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.243 CONDITIONAL USES is hereby amended as provided in Exhibit “A” attached hereto and incorporated by reference.
SECTION III. Environmental Findings and Determination:
This Ordinance is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3), under the “Common Sense” exemption, because the Ordinance does not approve any development or construction, and any future project would be subject to future CEQA reviews; therefore, no further action is required under CEQA.
SECTION IV. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this Ordinance, or any part thereof, is held invalid or unconstitutional, such decision shall not affect the validity of the remaining section or portions of this Ordinance or of Chapter 155, or any part thereof. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase in this Ordinance irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases may be declared invalid or unconstitutional.
Section V. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted in at least three (3) public places in the City, such posting to be completed not later than fifteen (15) days after passage thereof.
PASSED AND ADOPTED this 7
th day of April, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
ORDINANCE NO. 1167 1
ST
- READING: 03/17/2026
2 ND - READING: 04/07/2026
ABSENT:
Jose Angel Zamora, Mayor
ATTEST:
Maribel Garcia, City Clerk
Attachments:
a. Exhibit A – Amendments to Sections 155.123 (Conditional Uses), 155.153 (Conditional Uses), 155.175.2 (Uses), 155.183 (Conditional Uses), 155.213 (Conditional Uses), 155.243 (Conditional Uses), And Add Section 155.725 (Conditional Use Permit For Truck, Trailer, Chassis Or Container Storage) Within Title 15, Chapter 155, Of The Santa Fe Springs Municipal Code ITEM # 2
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Cuong Nguyen, Director of Community Development
SUBJECT: PUBLIC HEARING TO CONSIDER APPROVAL OF AN OPERATING COVENANT AGREEMENT WITH THE OLIVE BANQUET INC. AND THE OLIVE BANQUET SS, LLC DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the City Council:
1. Open the Public Hearing;
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing;
3. Determine that the approval of the Operating Covenant Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption);
4. Approve the Operating Covenant Agreement with The Olive Banquet Inc. and The Olive Banquet SS, LLC for the property located at 11900 Telegraph Road and authorize the City Manager to execute the Operating Covenant Agreement and supporting exhibits substantially in the form presented, with such minor modifications as approved by the City Attorney; and
5. Take such additional, related action that may be desirable.
FISCAL IMPACT
The Operating Covenant Agreement provides for a conditional grant in the amount of $3,100,000 to support the operation of The Olive RestoBar restaurant and banquet facility. The City’s interests associated with the grant and the operating covenants required under the agreement are secured by a Performance Deed of Trust recorded on title of the Property.
BACKGROUND
At the March 3, 2026 City Council meeting, the City Council opened the public hearing for the proposed Operating Covenant Agreement related to the establishment and operation of The Olive RestoBar, a restaurant and banquet facility to be located at 11900 Telegraph Road (the “Property”).
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Operating Covenant Agreement with The Olive Banquet Inc. and The Olive Banquet SS, LLC
Because several provisions of the agreement required additional refinement, the City Council continued the public hearing to a future meeting to allow staff and the operator additional time to finalize the agreement.
The project includes the operation of a full-service restaurant and a banquet hall event space intended to provide dining, entertainment, and event hosting opportunities within the community. The City’s participation is structured as a conditional grant designed to support the ongoing operation of the business, job creation and retention, and the continued use of the property for restaurant-related activities.
To secure the obligations contained in the Operating Covenant Agreement, the City and the restaurant operator will record a Performance Deed of Trust against the Property.
ANALYSIS
The City seeks to revitalize its downtown and has commenced the development of a Downtown Specific Plan. An anchor business in the vicinity of the downtown area could serve as a catalyst for broader downtown revitalization efforts. To support downtown revitalization and broader economic development efforts, the City has the opportunity to utilize Assembly Bill 562 (“AB 562”), which allows local jurisdictions to provide economic development subsidies in order to promote economic growth and the creation of new local job opportunities. AB 562 requires the City Council to hold a noticed public hearing and provide certain information on its website regarding the proposed economic development subsidy.
To assist in the economic development of the City’s future downtown by bringing an Olive RestoBar and banquet hall to the property located at 11900 Telegraph Road, the proposed Operating Covenant Agreement would provide The Olive Banquet Inc. and The Olive Banquet SS LLC with a conditional grant of Three Million One Hundred Thousand Dollars ($3,100,000) in exchange for compliance with certain operating covenants for a period of ten (10) years, including the continuous operation of the restaurant and banquet facility and creating and maintaining forty (40) full time equivalent jobs.
The Public Hearing Notice was published on the City’s website for a public hearing to be held on March 17, 2026. The Economic Development Subsidy / AB 562 Report to be published on the City’s website is attached as Attachment B.
ENVIRONMENTAL
Staff reviewed the proposed project in accordance with the California Environmental Quality Act (CEQA) guidelines and has been determined that the project is exempt pursuant to CEQA Regulation 15061(b)(3). The approval of the Operating Covenant Agreement does not approve any development or construction, and any future projects will be subject to review pursuant to CEQA. Any future development or construction on the Property would be subject to the City’s entitlement process and environmental review pursuant to CEQA as required by law. In addition, Section 15061(b)(3) includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Operating Covenant Agreement with The Olive Banquet Inc. and The Olive Banquet SS, LLC
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Therefore, no further action is required under CEQA.
DISCUSSION
The proposed restaurant and banquet facility will expand dining and event space options within the City and is expected to serve both residents and visitors. In addition, the project is anticipated to generate employment opportunities and increased economic activity that will contribute to the City’s ongoing economic development and downtown revitalization efforts, generating sales tax revenue and strengthening and diversifying its local dining and hospitality offerings.
The conditional structure of the City’s grant ensures that public funds are tied directly to the continued operation of the business and the fulfillment of the operating covenants established in the agreement. The City’s participation was an important factor in facilitating the project and helping ensure the long-term viability of a restaurant and banquet facility at this location, which supports the City’s broader economic development objectives of expanding dining, entertainment, and community gathering spaces.
SUMMARY/NEXT STEPS
It is recommended that the City Council:
• Open the public hearing and receive testimony on the consideration of an Operating Covenant Agreement between the City of Santa Fe Springs, The Olive Banquet Inc. and The Olive Banquet SS, LLC.
• Adopt the attached resolution making certain findings, approving the Operating Covenant Agreement, and authorizing the City Manager to execute the Operating Covenant Agreement, including minor modifications as appropriate, and any other pertinent documents necessary to effectuate and/or implement the Operating Covenant Agreement.
ATTACHMENT:
A. Resolution No. 10005
B. Economic Development Subsidy / AB 562 Report
C. Operating Covenant Agreement
D. Public Hearing Notice
APPROVED:
ITEM NO.:
RESOLUTION NO. 10005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS
APPROVING AN OPERATING COVENANT AGREEMENT WITH THE OLIVE BANQUET INC.
WHEREAS, the City of Santa Fe Springs (“City”) seeks revitalize its downtown and has commenced a process to adopt a downtown specific plan; WHEREAS, the City desires to facilitate the economic development of its downtown by providing strategic incentives that will lead to jobs, increased property tax revenue, financial investment, and increased community amenities; WHEREAS, The Olive Banquet SS LLC, a California limited liability company, intends to enter into a purchase agreement for the acquisition of that certain real property located at 11900 Telegraph Road within the City (the “Property”); WHEREAS, The Olive Banquet SS LLC and The Olive Banquet Inc., a California corporation (collectively “Restaurant Owner”), proposes to operate a restaurant and rentable banquet hall on the Property (the “Restaurant”); WHEREAS, the Property is located along the City’s primary thoroughfare and immediately adjacent to the area identified by the City for its future downtown; WHEREAS, the City desires to ensure that the area planned for its future downtown includes ample dining options and that residents have access to rentable event spaces in the City;
WHEREAS, the Restaurant is expected to generate significant economic benefits to the City, including but not limited to: (i) the creation and retention of permanent local jobs; (ii) increased sales tax revenues from on-site food, beverage, and event-related expenditures; (iii) increased property tax revenues and assessed valuation resulting from investment in and activation of the Property; (iv) indirect economic activity benefiting nearby businesses; and (v) enhancement of community amenities that support local quality of life and business attraction through the provision of dining and nightlife options for local residents;
WHEREAS, the City desires to facilitate the provision of economic benefits by the Restaurant by ensuring that the future Restaurant remains in business; WHEREAS, in order to ensure the retention of the Restaurant and the facilitation of jobs and other economic benefits by the Restaurant, the City and Restaurant Owner have agreed to enter into an Operating Covenant Agreement (the “Agreement”), attached hereto in substantial form as Exhibit “A,” whereby the Restaurant Owner commits to creating and maintaining forty (40) full time equivalent jobs in the City for a period of ten APPROVED:
ITEM NO.:
2 (10) years in exchange for a conditional grant by City of Three Million One Hundred Thousand Dollars ($3,100,000) to The Olive Banquet SS LLC (the “Grant”); WHEREAS, the City has caused the preparation of an economic analysis of the Agreement in accordance with Government Code Section 53083. A copy of the report (the “Economic Development Subsidy Report”) is attached hereto as Exhibit “B” and was made available to the public and posted on the City’s website prior to the March 17, 2026 public hearing;
WHEREAS, the Economic Development Summary Report describes all beneficiaries of the economic development subsidy under the Agreement, describes the start and end dates for the economic development subsidy under the Agreement, describes the economic development subsidy called for under the Agreement, including the estimated total amount of the expenditure of public funds as a result of the economic development subsidy, includes a statement of the public purposes for the economic development subsidy under the Agreement, contains an estimate of the projected tax revenue to the City as a result of the economic development subsidy, and contains an estimate of the number of jobs that will be retained and created by the economic development subsidy under the Agreement; and
WHEREAS, the Economic Development Summary Report concludes that, over the term of the Agreement, Restaurant Owner will receive a Three Million One Hundred Thousand Dollars ($3,100,000) total subsidy, that the City will receive approximately One Million Three Hundred Twenty-Seven Thousand Five Hundred Dollars ($1,327,500) in sales tax revenue, and that approximately forty (40) full-time jobs will be created and retained as a result of the Agreement; and
WHEREAS, prior to approval of the Agreement, the City made the required information available to the public in written form and on the City’s website, as required by Government Code Section 53083(a); and
WHEREAS, on March 17, 2026, the City Council held a duly noticed public hearing regarding the Agreement and the City’s obligations to pay the Grant as required by Government Code Section 53083(b); and
WHEREAS, the City Council has duly considered the terms of the proposed Agreement, the Summary Report, the value of the assistance provided by the City, the benefits to be derived from the Agreement, the report of City Staff, and other testimony provided at the March 17, 2026 public hearing.
NOW, THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED, AND ORDERED BY THE CITY OF SANTA FE SPRINGS:
SECTION 1. The City Council hereby makes the following findings:
APPROVED:
ITEM NO.:
3 A. The recitals set forth above are true and correct and are incorporated herein by reference.
B. The Restaurant Owner’s significant capital investment to obtain all necessary approvals for and commence operations of the Restaurant and to operate the Restaurant, the imposition of the operating covenants, and the City’s payment of the Grant constitute valid public purposes under Article XVI, Section 6 of the California Constitution as necessary for the economic enhancement of the City and contributing to the City’s general fund for the health, safety, and welfare of its residents.
C. The proposed Agreement is in the best interest of the City and its residents and is consistent with the public purposes outlined in applicable state and local laws. The Restaurant will generate tax revenues, retain and create significant employment opportunities, and serve as an anchor business to catalyze the City’s revitalization of its downtown, thereby providing other tangible and intangible benefits to the City.
D. The City’s payment of the Grant is intended to incentivize the Restaurant Owner to invest significantly in the Restaurant, to continue to operate the Restaurant for at least ten (10) years, to generate sales tax revenues, and to create local employment opportunities.
E. The benefits provided by the Restaurant over the ten (10) year period will result in substantially more benefits to the City than the cost of providing the Grant.
SECTION 2. City Council determines that this project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Section 15061(b)(3) (common sense exemption), and a Notice of Exemption has been prepared. The exemption applies only to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
SECTION 3. The Agreement between the City of Santa Fe Springs, The Olive Banquet Inc., and The Olive Banquet SS LLC, attached hereto as Exhibit “A,” is hereby approved.
SECTION 4. The City Manager is hereby authorized to execute the Agreement, and any other related attachments or documents as necessary to effectuate and implement the Agreement, including any minor modifications as appropriate and recommended by the City Attorney.
SECTION 5. The City Clerk shall certify the adoption of this Resolution.
APPROVED:
ITEM NO.:
4 APPROVED and ADOPTED this 17th day of March, 2026 by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Joe Angel Zamora, Mayor
ATTEST:
_________________________
Maribel Garcia, City Clerk
APPROVED:
ITEM NO.:
5 EXHIBIT A
OPERATING COVENANT AGREEMENT
APPROVED:
ITEM NO.:
6 EXHIBIT B
ECONOMIC DEVELOPMENT SUBSIDY REPORT
ECONOMIC DEVELOPMENT SUBSIDY / AB 562 REPORT
THE OLIVE BANQUET INC.
INTRODUCTION
This Economic Development Subsidy / AB 562 Report (“Report”) has been prepared and published pursuant to the requirements of Government Code Section 53083, which requires local agencies to provide specific information to the public and holding a duly noticed public hearing before approving certain economic development subsidies.
The City of Santa Fe Springs (“City”) desires to assist in the economic development of the City’s future downtown by bringing an Olive RestoBar and banquet hall (together, the “Restaurant”) operated by The Olive Banquet Inc. The development and operation of the Restaurant is expected to generate significant economic benefits to the City, including but not limited to, the creation and retention of permanent local jobs, increased sales tax revenues, increased property tax revenues, economic activity benefiting nearby businesses, and increased community amenities. The City has the ability to implement the provisions of AB 562, a statewide economic development passed by Governor Brown in late 2013 for the purpose of allowing local jurisdictions to induce economic development. The City, The Olive Banquet Inc., and The Olive Banquet SS LLC are proposing to enter into an agreement to allocate General Funds to provide financial assistance in the form of an economic development subsidy to The Olive Banquet Inc. and The Olive Banquet SS LLC as described in the Operating Covenant Agreement, as more particularly described in this Report and in the Operating Covenant Agreement. Pursuant to Section 53083 of the California Government Code the following information will be posted on the City’s website.
1. NAME AND ADDRESS OF THE ENTITY
The Olive Banquet Inc., a California corporation, located at 9288 Lubec Street, Downey, CA 90240 and The Olive Banquet SS LLC, a California limited liability company, located at 9288 Lubec Street, Downey, CA 90240 (collectively, “Restaurant Owner”).
2. THE START AND END DATES AND THE SCHEDULE FOR THE SUBSIDY The economic development subsidy will start when the Operative Covenant Agreement is approved by the City Council, the City receives three (3) originals of the Operative Covenant Agreement, one (1) original of the Notice of Agreement and Declaration of Covenants recorded against the property located at 11900 Telegraph Road in Santa Fe Springs (the “Property”), Restaurant Owner enters into an agreement to purchase the Property, and all conditions to the close of escrow on the Property are satisfied. The subsidy will end ten (10) years after Restaurant Owner receives all required governmental permissions and commences Restaurant operations on the Property, and is conditioned on Restaurant Owner’s assurance that the Restaurant will remain in business pursuant to the terms and conditions set forth in the Operating Covenant Agreement.
3. DESCRIPTION OF SUBSIDY INCLUDING THE ESTIMATED TOTAL AMOUNT
OF EXPENDITURE OF PUBLIC FUNDS OR REVENUE LOST BY THE LOCAL
AGENCY AS A RESULT OF THE SUBSIDY
The City would provide Restaurant Owner with assistance in consideration of certain covenants and restrictions detailed in the Operating Covenant Agreement. The subsidy will be in the form of a conditional grant of funds in the amount of Three Million One Hundred Thousand Dollars ($3,100,000.00) (the “Grant”) to assist The Olive Banquet Inc. for a period of ten (10) years in the creation and maintenance of forty (40) full-time equivalent jobs and a minimum investment by Restaurant Owner of Six Million Dollars ($6,000,000.00) into the City, which must be repaid in the event of default as detailed in the Operating Covenant Agreement.
4. STATEMENT OF PURPLIC PURPOSE FOR THE SUBSIDY
The Property is located on the City’s primary thoroughfare, immediately adjacent to the area identified by the City as its future downtown, for which the City has commenced the process of developing a Downtown Specific Plan. The City seeks an anchor project to serve as a catalyst for its broader efforts to revitalize its downtown. The subsidy is being provided to facilitate the economic development of the City’s future downtown by providing strategic incentives that will lead to permanent local jobs, increased sales tax revenues, increased property tax revenues and assessed valuation resulting from investment in and activation of the Property, economic activity benefitting nearby businesses, and enhancement of community amenities that support local quality of life and business attraction through the provision of dining and nightlife options for local residents.
5. PROJECTED TAX REVENUE TO THE LOCAL AGENCY AS A RESULT OF THE
SUBSIDY
During the life of the Operating Covenant Agreement, the City is projected to receive approximately One Million Three Hundred Twenty-Seven Thousand Five Hundred Dollars ($1,327,500) in sales tax revenue.
6. ESTIMATED NUMBER OF JOBS CREATED BY THE SUBSIDY, CATEGORIZED
BY FULL-TIME, PART-TIME, AND TEMPORARY POSITIONS
The Operating Covenant Agreement requires The Olive Banquet Inc. to create and maintain forty (40) full-time equivalent jobs for a period of ten (10) years. Thus, the City and Restaurant Owner have estimated that the Operating Covenant Agreement will create forty (40) full-time jobs in the City.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 1 CITY OF SANTA FE SPRINGS
OPERATING COVENANT AGREEMENT
THIS OPERATING COVENANT AGREEMENT (this “Agreement”) is dated as of [DATE], for reference purposes only and is entered into by and between CITY OF SANTA FE SPRINGS, a California municipal corporation (“City”) and THE OLIVE BANQUET SS LLC, a California Limited Liability Company (“Restaurant Operator”), and THE OLIVE BANQUET INC, a California corporation (“Banquet Operator” and collectively with Restaurant Operator, “Restaurant Owner”). City and Restaurant Owner are sometimes referred to in this Agreement, each individually, as a “Party,” or, collectively, as the “Parties.” City and Restaurant Owner enter into this Agreement with reference to the following recited facts (each a “Recital”):
RECITALS
A. Restaurant Operator intends to enter into an agreement to purchase that certain real property containing an approximately 12,420 square foot building on approximately 40,503 square feet / 0.93 acres of land located at 11900 Telegraph Road, within the City of Santa Fe Springs, County of Los Angeles, State of California, APNs 8009-026-012 and 8009-026-018 (the “Property”). The Property is legally described in Exhibit “A”, which is attached hereto and incorporated herein by this reference, and more particularly depicted on the site plan set forth in Exhibit “B”, which is attached hereto and incorporated herein by this reference (the “Site Plan”).
B. Restaurant Operator intends to enter into a Real Estate Purchase Agreement for the purchase of the Property for use as (i) The Olive RestoBar restaurant to be operated by Restaurant Operator, and (ii) a separate banquet hall to be operated as a rentable event space by Banquet Operator (together, the “Restaurant”).
C. So long as the Property is used as the Restaurant, the Property benefits from a nonexclusive parking easement which allows ingress and egress on the driveways of, and parking on, the parking areas of the adjacent site pursuant to that Declaration of Restrictions, Grant of Easements, and Maintenance Agreement dated as of June 3, 1988, recorded in the official records of the Recorder of the County of Los Angeles, California as Instrument Number 88-959006 (“Parking Easement”), which was recorded contemplating the purchase by the predecessor-ininterest of the owner of the Property of land constituting APN 8009-026-018 and associated lot line adjustment, and therefore is still binding and in effect.
D. The Property is located along the City’s primary thoroughfare and immediately adjacent to the area identified by the City for its future downtown, for which the City has commenced a process to adopt a specific plan (“Downtown Specific Plan”).
E. The City desires to facilitate the economic development of this corridor by providing strategic incentives that will lead to jobs, increased property tax revenue, financial investment and increased community amenities.
F. City desires to ensure that the area planned for its future downtown includes ample dining options and that residents have access to rentable event spaces in the City. The development and operation of the Restaurant is expected to generate significant economic benefits to the City, including but not limited to: (i) the creation and retention of permanent local jobs; (ii) increased sales tax revenues from on-site food, beverage, and event-related expenditures; (iii) increased Santa Fe Springs Operating Covenant Agreement No. 2026-001 2 property tax revenues and assessed valuation resulting from investment in and activation of the Property; (iv) indirect economic activity benefiting nearby businesses; and (v) enhancement of community amenities that support local quality of life and business attraction through the provision of dining and nightlife options for local residents. To support these goals, the City seeks to ensure the Restaurant remains in business and that Restaurant Owner is engaged in the creation and retention of new jobs in the City.
G. City desires to provide Restaurant Operator financial assistance in the form of a conditional grant of funds to assist Restaurant Owner with the costs of continuously operating and staffing the Restaurant, and maintaining job opportunities and, in consideration thereof, City desires assurance that the Restaurant will remain in business, all pursuant to the terms and conditions set forth in this Agreement.
H. City desires to provide such conditional grant of funds in an amount of Three Million One Hundred Thousand Dollars ($3,100,000) for the purposes of assisting Restaurant Owner over a period of ten (10) years, to (i) create and maintain forty (40) full time equivalent jobs in the City, and (ii) a minimum investment by Restaurant Owner of Six Million Dollars ($6,000,000) into the City through the project.
I. By its approval of this Agreement, the City Council of the City of Santa Fe Springs has found and determined that the operation of the Restaurant, the generation of new jobs, the anticipated increase in sales tax revenue, enhancement of property values and property tax base, and stimulation of surrounding commercial activity are vital and in the best interests of City and the health, safety, morals and welfare of its residents, including but not limited to supporting the City’s efforts to revitalize its downtown and to provide rentable event spaces for residents, and in accord with the public purposes and provisions of applicable federal, state and local laws and requirements, and that the imposition of certain operating covenants and use restrictions upon the Property for use as the Restaurant constitutes a valid public purpose.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS,
WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE, FOR OTHER GOOD
AND VALUABLE CONSIDERATION, AND THE MUTUAL PROMISES AND
COVENANTS OF THE PARTIES SET FORTH IN THIS AGREEMENT, THE PARTIES AGREE, AS FOLLOWS:
AGREEMENT
ARTICLE 1
DEFINITIONS
1.1 Defined Terms. In addition to the usage of certain words, terms or phrases that are defined elsewhere in this Agreement, the following words, terms and phrases are used in this Agreement, as follows:
(a) “Banquet Operator" means and refers to The Olive Banquet, Inc., a California Corporation which will operate the Banquet Hall portion of the Restaurant. (b) “CEQA” means and refers to the California Environmental Quality Act, (Public Resources Code § 21000, et seq.).
Santa Fe Springs Operating Covenant Agreement No. 2026-001 3 (c) “Certification” means and refers to that certification required by Restaurant Owner set forth in Section 3.3 of this Agreement. (d) “City” means and refers to the City of Santa Fe Springs. (e) “City Manager” means and refers to the City Manager of City or his or her designee or successor in function.
(f) “City Parties” means and refers to City, its legislative body, officers, officials, members, employees, attorneys, representatives, and agents. (g) “Claims” shall have the meaning ascribed to the term in Section 5.6(b). (h) “Close of Escrow” shall have the meaning ascribed to the term in Section
3.5(b).
(i) “Closing Date” shall have the meaning ascribed to the term in Section 3.5(b). (j) “Completion Date” means and refers to the date that Restaurant Owner has both: (i) received all required permissions from Governmental Agencies to lawfully operate the Restaurant on the Property which shall include without limitation all applicable State and local authorizations for the sale of alcoholic beverages, inclusive of beer, wine, and distilled spirits, for consumption on the Property for all Required Operations, inclusive of both restaurant and banquet hall operations; and (ii) Restaurant Owner commences operations on the Property. (k) “Compliance Month” means and refers to the number of months from and after the Completion Date for which there is no Event of Default by Restaurant Owner under this Agreement. For avoidance of doubt, “Compliance Month” does not include any partial months. (l) “Compliance Year” means and refers to a period of one year. The first Compliance Year commences on the Completion Date and ends on the first anniversary of the Completion Date. The second, third, fourth, fifth, sixth, seventh, eighth, ninth, and tenth Compliance Years follow thereafter.
(m) “Deed of Trust” shall have the meaning set forth in Section 3.6 and is attached hereto in substantial form as Exhibit “D.”
(n) “Discretionary Approvals” means an action which requires the exercise of judgment, deliberation or a decision on the part of the City and/or any City department, in the process of approval or disapproving a particular activity, as distinguished from ministerial actions and approvals which merely require the City and/or City staff to determine whether there has been compliance with the applicable statute, ordinance, or regulation, as the case may be. (o) “Earned Forgiveness Amount” means Nineteen Thousand Four Hundred Sixteen and 66/100 Dollars ($19,416.66) multiplied by the number of completed Compliance Months during which no Event of Default has occurred.
(p) “Effective Date” means and refers to the first date on which this Agreement has been approved by the City Council and City is in receipt of (i) three (3) originals of this Agreement executed by Restaurant Owner and City, (ii) one (1) original of the Notice of Agreement and Declaration of Covenants executed and acknowledged by Restaurant Owner and City and recorded Santa Fe Springs Operating Covenant Agreement No. 2026-001 4 against the Property, and (iii) Restaurant Owner has executed and entered into an agreement to purchase the Property.
(q) “Escrow” shall have the meaning ascribed to the term in Section 3.5. (r) “Escrow Holder” shall have the meaning ascribed to the term in Section 3.5. (s) “Event of Default” shall have the meaning ascribed to the term in Section 5.2. (r) “Full-Time Equivalent Employment Positions” means and refers to total annual hours worked (including credit for paid/unpaid vacation hours, sick leave, and holidays) in all counted employment positions at the Restaurant divided by average annual hours (2080 hours) worked in a full-time job.
(s) “Further Encumber” or “Further Encumbrances” shall have the meaning ascribed to the term in Section 3.6.
(t) “Governmental Agency” means and refers to any and all courts, boards, agencies, commissions, offices, or authorities of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or later in existence with jurisdiction over the Property or the Project.
(u) “Grant” shall mean that certain conditional grant by City of the Grant Amount to Restaurant Operator for the benefit of Restaurant Owner in accordance with the terms and conditions of this Agreement.
(v) “Grant Amount” means Three Million One Hundred Thousand Dollars ($3,100,000) that shall be paid by City to Restaurant Operator, for use by Restaurant Owner, pursuant to the terms and conditions of this Agreement.
(w) “Indemnified Party” shall have the meaning ascribed to the term in Section
5.6(a).
(x) “Mortgaged Property” shall have the meaning ascribed to the term in Section
3.6. (y) “New Jobs” means an aggregate number of not less than forty (40) new FullTime Equivalent Employment Positions at the Restaurant created within the time periods set forth in Section 3.2 and thereafter maintained through the tenth (10th) anniversary of the Completion Date.
Executive level positions, including, without limitation, Directors, Shareholders, Chief Executive Officer, Chief Financial Officer, President, Vice-President, Treasurer, and Corporate Secretary of Restaurant Owner or the like shall not be counted as New Jobs; except that job titles such as “Catering Director” or “Event Director” which are newly created at the Property shall be counted as New Jobs where these positions are not held by corporate shareholders. (z) “Notice of Agreement and Declaration of Covenants” means and refers to the Notice of Agreement and Declaration of Covenants attached to this Agreement as Exhibit “C” to be recorded against the Property to provide constructive notice of the existence and application of this Agreement and the covenants of Restaurant Owner regarding the Property. Full execution by the Santa Fe Springs Operating Covenant Agreement No. 2026-001 5 Parties and recordation of the Notice of Agreement and Declaration of Covenants shall be a condition to the effectiveness of this Agreement.
(aa) “Opening of Escrow” shall have the meaning ascribed in Section 3.5(a). (bb) “Operating Period” is comprised of ten (10) Compliance Years. (cc) “Party” means and refers, individually, to any of City or Restaurant Owner, as applicable.
(dd) “Parties” means and refers to City and Restaurant Owner. (ee) “Permitted Closures” shall have the meaning ascribed to that term in Section
4.1. (ff) “Permitted Operations” shall mean and refers to operations which may be caused to be conducted by Restaurant Owner on the Property and which the City consents to permit to occur on the Property.
(gg) “Pre-Operational Business Establishment Payment” means the portion of the Grant in the amount of Seven Hundred Seventy Thousand Dollars ($770,000) provided to Restaurant Operator to offset costs associated with business planning, job recruitment, and other start-up expenses incurred prior to commencement of Restaurant Operations, which amount is not subject to repayment except as expressly provided in this Agreement.
(hh) “Pro-Rated Reduced Repayment Amount” shall have the meaning ascribed in Section 5.3(a)(ii).
(ii) “Project” means the operation of the Restaurant on the Property. (jj) “Property” means and refers to that real property specifically described in Exhibit “A” to this Agreement and commonly known as 11900 Telegraph Road in Santa Fe Springs, California with APNs 800-026-012 and 8009-026-018.
(kk) “Record”, “recorded”, “recording” or “recordation” each mean and refer to recordation of the referenced document in the official records of the Recorder of the County of Los Angeles, California.
(ll) “Records” shall have the meaning ascribed to that term in Section 3.7. (mm) “Repayable Grant Amount” shall have the meaning ascribed in Section
3.4(a).
(nn) “Required Operations” means and refers to operations conducted or caused to be conducted by Restaurant Owner on the Property for the operation thereon of the Restaurant, which shall include without limitation the operation of The Olive RestoBar restaurant for lunch and dinner service and the availability of the banquet hall as rentable event. (oo) “Restaurant” shall have the meaning ascribed to that term in Recital B.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 6 (pp) “Restaurant Operator” means and refers to The Olive Banquet SS, LLC, a California limited liability company.
(qq) “Restaurant Owner” means and refers collectively to Banquet Operator and Restaurant Operator.
(rr) “Restaurant Owner Operating Covenant” shall mean the covenants of Restaurant Owner set forth in this Agreement, including but not limited to the covenants set forth in Articles 3 and 4 herein.
(ss) “Transfer” means and refers to any total or partial sale, assignment, conveyance, hypothecation, trust, power, or transfer in any other mode or form, in all or any portion of this Agreement, the Property, ownership or control of Restaurant Owner, or the Restaurant Owner Operating Covenant. Any and all Transfers shall comply with the terms and conditions in Section 6.3 of this Agreement.
(tt) “Unavoidable Delay” or “Force Majeure” means and refers to any delay or prevention or stoppage that is beyond the reasonable control of any Party including as an exhaustive list delays caused by strikes, fire or casualty, acts of God, acts of terrorism, inclement weather, inability to obtain labor or materials, labor disputes, utility or communication facility failure, inability to obtain permits or approvals from any Governmental Agency or governmental restrictions (excepting therefrom any reasonable time attributable to obtaining governmental permits or approvals from the City, or restrictions required of Restaurant Owner by City, that would generally apply to any individual or entity in the same or similar business as such Party for the Required Operations or otherwise for the use of the Property), civil disobedience or uprising, earthquakes, war, or fire or other casualty; but excluding (i) financial circumstances, including but not limited to Restaurant Owner's inability to obtain any necessary financing or funding for the operation of the Property for the Required Operations, and (ii) events that may be resolved by the payment of money.
ARTICLE 2
TERM/COMPLETION DATE/COMPLIANCE WITH LAWS
2.1 Term. This Agreement shall commence as of the Effective Date. If the Completion Date occurs on or before the third anniversary of the Effective Date, this Agreement shall expire upon the expiration of the Operating Period. Notwithstanding the foregoing, City acting by and through its City Manager may extend the date for up to two (2) additional sixty (60) calendar day periods, not to exceed one hundred twenty (120) days in the aggregate by which the Completion Date must occur, in the City Manager’s sole and absolute discretion.
(a) Notwithstanding the foregoing, Restaurant Owner has the right to the earlier termination of this Agreement by re-payment of the Pro-Rated Reduced Repayment Amount with concurrent written notice to the City after the Completion Date.
2.2 Receipt of Approvals from Governmental Agencies and Commencement of Operations. Restaurant Owner shall diligently and in good faith work, at its sole cost (and at no cost or expense to City), to timely accomplish the Completion Date, including but not limited to diligently proceeding to apply for and receive all necessary approvals, authorizations, permits, and other permissions from Governmental Agencies to lawfully operate the Restaurant on the Property, commence operations, and hire personnel to satisfy the obligations under Articles 3 and 4.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 7 2.3 City Right to Inspect. Designated Officers, employees, agents and representatives of City identified herein shall have the right of reasonable access to the Property with 24 hours’ prior notice to Restaurant Owner, without the payment of charges or fees, during normal business hours, during the period following the Effective Date prior to the Completion Date, to verify Restaurant Owner’s diligent pursuit of the Completion Date. Restaurant Owner shall make a representative available to accompany City representatives onto the Property upon reasonable advance notice from City (24 hours shall be reasonable). Restaurant Owner understands and agrees that any such City inspections are for the sole purpose of protecting City’s rights under this Agreement and not in its regulatory capacity, are made solely for City’s benefit, that City’s inspections may be superficial and general in nature, and are for the purposes of informing City of the progress towards the Completion Date in accordance with the terms and conditions of this Agreement, and that Restaurant Owner shall not be entitled to rely on any such inspection(s) as constituting necessary approvals, authorizations, permits, and other permissions from Governmental Agencies to lawfully commence operations of the Restaurant on the Property or inspections associated therewith. Restaurant Owner also agrees to immediately notify City in writing of any matters that will prevent the timely occurrence of the Completion Date as set forth in Sections 2.1 and 2.2. The City designates the following departments who shall have reasonable access to the Property pursuant to this section 2.3: City Manager’s Office, Community Development Department, and their designee(s). Restaurant Owner shall provide a written status report to City Community Development Department, Attn: Director of Community Development, regarding progress towards the Completion Date every six (6) months from the Effective Date until the occurrence of the Completion Date. The written status report shall describe the actions taken to pursue the Completion Date, pending actions and anticipated time of completion, and shall note any extraordinary events that may have delayed progress.
2.4 Compliance with Applicable Law. Restaurant Owner shall ensure the Restaurant operates in conformity with all applicable federal, state, and local laws and regulations, including, without limitation, all applicable labor and employment laws, procurement of required permits and approvals, all obligations with regard to the payment of prevailing wages (if otherwise required by law), sale and consumption of alcoholic beverages, environmental protection, tax, and hazardous materials. If Restaurant Owner’s failure to comply with applicable laws, ordinances, codes, or regulations results in a claim for damage or liability to City, Restaurant Owner shall be responsible for defending, indemnifying, and holding the City harmless as provided in this Agreement.
ARTICLE 3
CITY GRANT FOR JOB CREATION AND ESCROW INSTRUCTIONS
3.1 Conditional Grant. By and subject to the terms of this Agreement, the City agrees to make a conditional grant to Restaurant Operator for the benefit of Restaurant Owner, and Restaurant Owner agrees subject to the terms and conditions set forth in this Agreement, to accept the Grant Amount (the “Grant”). The Grant shall be secured, in part, by the Deed of Trust attached in substantial form hereto as Exhibit “D”, encumbering the Property and certain improvements thereon as legally defined therein. The Grant shall be conditional upon Restaurant Owner’s compliance with the obligations under this Agreement. In the event of the default of Restaurant Owner of their obligations hereunder, the City reserves the right to subject Restaurant Owner to the remedies set forth in Article 5 of this Agreement, including but not limited to foreclosure upon the Property under the Deed of Trust.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 8 3.2 New Jobs. Subject to the terms of this Agreement and in consideration of the payment of the Grant Amount as provided in this Agreement, Restaurant Owner hereby covenants and agrees to exercise commercially reasonable good faith efforts to create and, thereafter, maintain or cause to be created and thereafter maintained, forty (40) New Jobs at the Restaurant for a ten (10) year period commencing on the Completion Date and terminating on the tenth (10 th) anniversary of the Completion
Date (such period, the “Operating Period”).
3.3 Certification. Within forty-five (45) days following the anniversary of the Completion Date and each anniversary thereafter until the tenth (10 th) anniversary of the Completion Date or until
the re-payable grant amount has been re-paid by Restaurant Owner, Restaurant Owner shall file or cause to be filed a written certification (“Certification”), signed by Restaurant Operator’s chief financial officer and/or Banquet Operator’s Manager, for the respective Certifications of Restaurant Operator and Banquet Operator, with the City Manager, certifying the compliance of Restaurant Owner with the New Jobs creation and all the covenants set forth in Article 4, below. The certifications shall include without limitation:
(a) a suitably detailed written report relating to the employees of Restaurant Owner who are claimed by Restaurant Owner as holding New Jobs, including payroll accounting information which shall include the total number of hours worked by such persons, the total number of persons who were recruited, hired or released from employment for a New Job the prior year, the total number of other employees of Restaurant Owner employed at the Restaurant, and the gross payroll amount for all employees of the Restaurant for the prior year. Each such annual certification need not identify any employee by name, by specific job description nor by new hire date, and the payroll accounting information may aggregate the hours worked by all persons claimed by Restaurant Owner to hold New Jobs at the Restaurant;
(b) documentation of Restaurant’s current local and State authorizations for the sale and on-premises consumption of alcoholic beverages, which may include documentation that such authorizations were duly maintained during the preceding twelve (12) month period, and documentation of compliance with conditions of local or state alcohol licensure including but not limited to the On-Sale General Eating Place license issued by the State Department of Alcoholic Beverage Control and Conditional Use Permit issued by the City (in its regulatory capacity), as applicable.
3.4 Grant Payment. In consideration of the creation of New Jobs and the covenants set forth in Article 4, below, and subject to Restaurant Owner’s continued compliance under this Agreement, City agrees to pay Restaurant Operator the Grant Amount of Three Million One Hundred Thousand Dollars ($3,100,000) for the benefit of Restaurant Owner. No later than three (3) business days before the Closing Date, the City shall deposit into Escrow the sum of Three Million One Hundred Thousand Dollars ($3,100,000) in immediately available funds. (a) Pre-Operational Business Establishment Payment. To assist the Restaurant Owner in the planning and business establishment phase a Pre-Operation Business Establishment Payment in the amount of Seven Hundred Seventy Thousand Dollars ($770,000), which is encompassed as a portion of the Grant Payment set forth in Section 3.4, above, shall not be subject to the Restaurant Owner Operating Covenant set forth in Articles 3 and 4 of this Agreement, except that the Pre-Operation Business Establishment Payment shall be subject to the restrictions of Section 3.9.
The total amount subject to the terms of the Restaurant Owner Operating Covenant shall be Two Million Three-Hundred Thirty Thousand Dollars ($2,330,000) (“Repayable Grant Amount”).
Santa Fe Springs Operating Covenant Agreement No. 2026-001 9 3.5 Escrow Instructions. This Section 3.5 shall constitute the joint escrow instructions of City and Restaurant Owner to Escrow Holder for the conduct of the Escrow to complete the payment of the Grant Amount to Restaurant Operator as set forth in Section 3.4 hereto. City and Restaurant Owner shall execute such further escrow instructions, consistent with the provisions of this Agreement, as may be reasonably requested by Escrow Holder. In the event of any conflict between the provisions of this Agreement and any other escrow instructions requested by the Escrow Holder, the provisions of this Agreement shall control.
(a) Opening of Escrow. No later than two (2) business days after the execution of this Agreement by City and Restaurant Owner, City and Restaurant Operator shall open an escrow (the “Escrow”) with [ESCROW COMPANY] (the “Escrow Holder”) and shall deliver a fully executed copy of this Agreement to Escrow Holder. The deposit of (i) a fully executed copy of this Agreement with Escrow Holder, and (ii) any fees or charges required by Escrow Holder shall constitute the opening of Escrow (“Opening of Escrow”) and authorization to Escrow Holder to act in accordance with the terms of this Agreement. Escrow Holder shall promptly confirm in writing to each of the Parties the date of the Opening of Escrow.
(b) Close of Escrow. The Escrow shall close (the “Close of Escrow”) on [DATE] or another date mutually approved in writing by City and Restaurant Owner, which shall be no later than the date in which escrow is intended to close for the sale of the Property to Restaurant Operator (the “Closing Date”). Notwithstanding the foregoing, the Close of Escrow shall not occur unless the conditions to the Close of Escrow set forth in this Section 3.5(b) have been satisfied, unless mutually waived in writing by both Parties. Absent a written waiver by both Parties, the conditions to the Close of Escrow are as follows:
(i) All conditions to the Close of Escrow on the Property have been satisfied and Restaurant Operator and the owner of the Property are diligently proceeding to the Close of Escrow on the Property.
(ii) The Property is not subject to or encumbered in any manner except as set forth in Sections 3.6(a)-(c), and, if required by Sections 3.6(a)-(c), any lender, creditor, or lienholder with an interest in the Property have each duly executed and deposited into Escrow for recordation at the Close of Escrow a subordination agreement in a form satisfactory to the City subordinating such interests to the City’s Deed of Trust.
(iii) The Parties have completed all material obligations required by this Agreement to be completed prior to the Close of Escrow, and are otherwise not in material default of this Agreement.
(iv) Restaurant Owner has deposited the following documents and funds into Escrow:
(1) A fully executed agreement for Restaurant Owner’s purchase of the Property and any necessary documentation to demonstrate the satisfaction of all conditions to the Close of Escrow thereunder;
(2) Restaurant Owner’s Closing Statement, signed by Restaurant Owner;
Santa Fe Springs Operating Covenant Agreement No. 2026-001 10 (3) An executed Notice of Agreement and Declaration of Covenants attached hereto in substantial form as Exhibit “C”;
(4) An executed Deed of Trust, attached hereto in substantial form as Exhibit “D”.
(v) City has deposited the following documents and funds into Escrow:
(1) The Grant Amount, plus any additional funds required to be deposited into Escrow by City under the terms of this Agreement to close the Escrow, all in immediately available funds;
(2) An executed Notice of Agreement and Declaration of Covenants attached hereto in substantial form as Exhibit “C”;
(3) An executed Deed of Trust, attached hereto in substantial form as Exhibit “D”;
(4) The City’s Closing Statement, signed by City;
(5) Any additional document(s) as may reasonably be required by this Agreement or Escrow Holder.
(c) Closing Procedure. Upon Escrow Holder’s receipt of such written confirmation from both City and Restaurant Owner that their respective conditions to the Close of Escrow are either satisfied or waived, Escrow Holder shall give written notice thereof to both Parties and shall close the Escrow by doing all of the following:
(i) Recordation of Documents. File with the Office of the Recorder of the County (i) the Notice of Agreement and Declaration of Covenants; (ii) the executed Deed of Trust; (iii) if applicable, any subordination agreement(s) as set forth in Section 3.5(b)(ii); and (iv) any other documents to be recorded through Escrow upon the joint instructions of the Parties. All recorded documents shall provide that they are to be returned to Escrow Holder after recordation. (ii) Distribution of Recorded Documents. Distribute each recorded document to the Party or person designated for such distribution in the joint escrow instructions of the Parties.
(iii) Grant Amount. Deliver the Grant Amount to Restaurant Operator, less Restaurant Owner’s share of Escrow closing costs and any other charges to the account of Restaurant Owner.
(d) Escrow and Recording Costs. City and Restaurant Owner shall each pay onehalf (1/2) of the Escrow fees, recording costs, and such other costs as Escrow Holder may charge for the conduct of the Escrow. Escrow Holder shall notify City and Restaurant Owner of the costs to be borne by each of them at the Close of Escrow by delivering the Escrow Holder’s estimated closing/settlement statement to both City and Restaurant Owner at least four (4) business days prior to the Closing Date. If the Escrow fails to close due to Restaurant Owner’s material default under this Agreement and the Escrow is cancelled and this Agreement is terminated, Restaurant Owner shall pay all ordinary and reasonable Escrow and title order cancellation charges, in addition to any applicable penalties under this agreement. If the Escrow fails to close due to City’s material default under this Santa Fe Springs Operating Covenant Agreement No. 2026-001 11 Agreement and the Escrow is cancelled and this Agreement is terminated, City shall pay all ordinary and reasonable Escrow and title order cancellation charges, in addition to any applicable penalties under this agreement. If the Escrow fails to close for any reason other than the material default of either City or Restaurant Owner and the Escrow is cancelled and the Agreement is terminated, Restaurant Owner and City shall equally pay all ordinary and reasonable Escrow and title order cancellation charges.
3.6 Security. Restaurant Owner’s obligation to comply with this Agreement, including but not limited to the obligations set forth in Articles 3 and 4, shall be secured by the deed of trust (as amended, modified, supplemented, and replaced from time to time, collectively, the “Deed of Trust”), in the form of Exhibit “D,” attached hereto, recorded against Restaurant Operator’s fee interest in the Property and improvements thereon and creating a security interest therein and such other rights as are described therein (collectively, referred to therein as the “Mortgaged Property”). Except as set forth in Sections 3.6(a)-(c), the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust shall be subordinate only to such exceptions to title shown in the title report for the Mortgaged Property which are approved in writing by the City. As a material term of this Agreement, prior to or concurrent with Restaurant Owner’s execution of this Agreement, Restaurant Operator shall execute and deliver to Escrow the Deed of Trust. Upon expiration of the Operating Period or if the Restaurant Owner exercises an earlier termination after achievement of the Completion Date pursuant to Section 2.1(a), the City shall release its Deed of Trust on the Property. Upon expiration of the Operating Period, or Restaurant Owner’s voluntary re-payment of the Repayable Grant Amount remaining after credits for any Earned Forgiveness Amount prior to the expiration of the Operating Period, this Agreement shall terminate and be of no further force and effect, except for those obligations under this Agreement which expressly survive the expiration or earlier termination of this Agreement.
(a) Permission to Further Encumber Property. Notwithstanding the restrictions on Further Encumbrances contained in this Agreement and the Deed of Trust, City (i) acknowledges those exceptions to title shown in the title report for the Mortgaged Property which are approved in writing by the City; and (ii) acknowledges and agrees that Restaurant Operator may Further Encumber the Property in compliance with the requirements of Section 3.6(b), so long as the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust shall at all times remain senior to any such Further Encumbrances except as set forth in Section 3.6(c). (b) Restrictions on Further Encumbrances. Restaurant Owner shall not further encumber, pledge, mortgage, hypothecate, place any lien, charge, or claim upon, or otherwise give as security the Mortgaged Property or any interest therein (“Further Encumber” or “Further Encumbrances”), except as set forth in Section 3.6(c): (i) unless such Further Encumbrances are subordinated to the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust and all advances heretofore made or which hereafter be made pursuant to the Deed of Trust (including but not limited to all sums advanced for the purpose of protecting or further securing the lien of the Deed of Trust, curing defaults by Restaurant Owner under this Agreement, the Deed of Trust, or for any other purpose expressly permitted thereunder), which shall at all times remain prior to and superior to, and shall not be subordinated to, any such Further Encumbrances; and (ii) absent the prior execution and delivery of one or more subordination agreements, in form and substance satisfactory to the City, in favor of the City, to expressly subordinate the Further Encumbrances and the indebtedness evidenced by such Further Encumbrances to the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust and all terms, covenants, conditions thereof, including but not limited to the prior payment in full of the indebtedness evidenced thereby.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 12 (c) Permission for Senior Further Encumbrances During Construction.
Notwithstanding the foregoing, if Restaurant Operator obtains construction lending prior to achieving the Completion Date in pursuit of the Completion Date, City agrees to subordinate its security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust in accordance with the provisions of this Section 3.6(c): (i) such subordination shall be only for the duration of the construction, which shall in no circumstance be later than the achievement of the Completion Date as set forth in Section 2.1 of this Agreement; (ii) the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust shall remain in second lien and security interest status; (iii) the applicable construction lender, City, and Restaurant Operator enter into a subordination agreement, in form and substance satisfactory to the City, reflecting the provisions of this Section 3.6(c).
3.7 Records Inspection. Restaurant Owner shall keep and maintain all records as may reasonably be required by City to enable City to evaluate compliance by Restaurant Owner with the terms of this Agreement, and to substantiate any Certification of New Jobs provided to City, which records shall include the payroll records of Restaurant Owner which shall be prepared by a third party payroll company with verification of payments made pursuant to the payroll records. (“Records”).
City shall not, however, be entitled to receive employee personnel records pertaining to employee discipline, worker’s compensation claims, employee medical or mental health records, or any records pertaining to litigation or settlements with employees. Restaurant Owner shall allow City, its agents, and representatives, upon prior notice, at reasonable times, to inspect any such Records. Restaurant Owner acknowledges and agrees that City must have access to Restaurant Owner’s Records to verify that Restaurant Owner has employed a certain number of employees in connection with the use of the Grant Amount. The City’s access to review said employee payroll and personnel records is limited only for the purposes of reviewing the Certification of New Jobs provided to the City. The Records required to be maintained under this Agreement shall be retained for a period of five (5) years, provided, however, in the event any litigation, audit, negotiation, or other action involving the Records is commenced prior to the expiration of the five (5) year retention period, Restaurant Owner shall retain such Records until final resolution of judicial proceedings and passage of any applicable appeal periods. All of Restaurant Owner’s obligations under this Section 3.7 shall survive the expiration or termination of this Agreement.
(a) The City agrees that Records shall be treated with strict confidentiality. In the event that City is in possession of such Records, City agrees that such Records shall not be distributed or shared with any third parties or any person or entity not authorized by Restaurant Owner without a valid court order or compliance with legal privacy laws in accordance with the requirements of this Section 3.7. In the event that any third party attempts to compel the disclosure of Records through a subpoena or other legal process, including but not limited to a request pursuant to the California Public Records Act (Government Code Section 7920.000 et seq.), upon becoming aware of such effort, the City shall give written notice of such attempt to Restaurant Owner to allow for Restaurant Owner to file for a protective order or otherwise seek judicial intervention to maintain confidentiality.
3.8 Monitoring. Restaurant Owner shall reasonably cooperate with City and its representatives, and shall reasonably make available to City payroll and employee verification records reasonably requested by City for the purpose of assuring compliance with this Agreement.
City agrees that this Agreement does not create any partnership or business venture between Restaurant Owner and the City. City agrees that it will not unnecessarily request or demand access to the financial records of Restaurant Owner except the payroll records required as set forth in paragraph
3.7. Santa Fe Springs Operating Covenant Agreement No. 2026-001 13 3.9 Use of Grant Amount. Restaurant Owner shall not use the Grant Amount, inclusive of the Pre-Operational Business Establishment Payment, for costs of developing the Project, which includes all costs for construction, alteration, demolition, installation, and repair work, and all costs for pre-development and pre-construction associated therewith, including inspection and land surveying work of the commercial improvements, landscaping, parking, and other related appurtenances to be constructed on, under, about or around the Property for the uses authorized by this Agreement, if any.
ARTICLE 4
COVENANTS
4.1 Continuous Operations During Operating Period. Restaurant Owner shall continuously operate the Restaurant other than for closures which are necessitated (a) due to damage caused to the Restaurant by a casualty or a condemnation, (b) by events of Force Majeure, and/or (c) due to remodeling of the Restaurant; but in the case of (c) the Restaurant may be closed/non-operative for no more than ninety (90) days without the City’s prior written approval, which shall be granted in the City’s sole and absolute discretion (collectively, “Permitted Closures”). For the purposes of this Section 4.1, “continuously operate” shall mean that, throughout the entirety of the Operating Period:
(i) the restaurant portion of the Restaurant shall continuously be open for lunch and dinner service, during hours customary for a restaurant offering lunch and dinner service in Southern California throughout the entirety of the Operating Period which shall at minimum be comparable to the hours of The Olive RestoBar’s current location(s) in the City of Downey as of the date of execution of this Agreement; (ii) the banquet hall shall continuously be available for event rental.
4.2 Alcohol Beverage Authorization. During the entire Operating Period, Restaurant Owner shall obtain and maintain in good standing for respective Required Operations of Restaurant, inclusive of restaurant and banquet hall, all necessary local and State authorizations for the lawful sale and onsite consumption of alcoholic beverages, inclusive of beer, wine, and distilled spirits, on the Property, including but not limited to the On-Sale General Eating Place license issued by the State Department of Alcoholic Beverage Control and Conditional Use Permit issued by the City (in its regulatory capacity).
4.3 Use Restriction. During the entire Operating Period, the Property shall not be put to any use other than the conduct of Required Operations and any permitted uses ancillary thereto.
Notwithstanding the foregoing, City and Restaurant Owner acknowledge and agree this Agreement is not the grant of a land use or zoning approval and that Restaurant Owner shall comply with the City’s zoning requirements and obtain all necessary Government Agency approvals to cause the Completion Date and carry out the Required Operations during the Term of this Agreement.
4.4 Events. The Restaurant shall host a minimum of ten (10) events each year during the Operating Period.
4.5 Third Party Lawsuits. Restaurant Owner acknowledges that City is a “public entity” and/or a “public agency” as defined under applicable California law. Therefore, City must satisfy the requirements of certain California statutes relating to the actions of public entities, including, without limitation, the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000, et seq.); the California Public Records Act (“CPRA”) (Gov. Code § 7920.000, et seq.). Also, as a public entity, the City’s action in approving this Agreement may be subject to proceedings to invalidate this Agreement or mandamus. Restaurant Owner (i) assumes the risk of and (ii) waives and releases any Claims, whether known or unknown, suspected or unsuspected, for delays and damages that may result to Santa Fe Springs Operating Covenant Agreement No. 2026-001 14 Restaurant Owner from any third-party legal actions related to City’s approval of this Agreement or the pursuit of the activities contemplated by this Agreement, even in the event that an error, omission or abuse of discretion by City is determined to have occurred.
4.6 Future Uses, Zoning Approvals. Restaurant Owner has expressed a desire to potentially expand future operations on the Property to include the following or otherwise seek zoning approvals, entitlements, permits and/or variances for the following operations or other business ventures at the Property:
a) Live music indoors and outdoors between the hours of 7:00 am and 2:00 am. b) Business Hours for service to the public or for private events permissible from 7:00 am to 2:00 am for a period of 20 years from the date of Completion. c) Cigar Lounge
Notwithstanding the foregoing, the Parties acknowledge and agree that this Agreement does not: (1) amend the City’s General Plan; (2) grant height, intensity, waive or otherwise provide relief from those standards otherwise established in Title XV (Land Usage), Chapter 155 (Zoning) of the Santa Fe Springs Municipal Code (“Zoning Code”) including without limitation, parking requirements; (3) eliminate future Discretionary Actions to commence the Required Operations required under this Agreement; (4) amend the City’s Zoning Code; or otherwise waive the need to comply with environmental review pursuant to CEQA. Notwithstanding the foregoing, the Parties further acknowledge and agree the City shall work with Restaurant Owner diligently and in good faith to process any applications or other requirements of the requisite permitting and entitlement processes for Discretionary Approvals that may be required in connection with the Required Operations or expanded operations as described in this Section 4.6. The City’s obligation to work diligently and in good faith shall not be construed to require the City to approve any application, permit, entitlement, or Discretionary Approval, to exercise its discretion in any particular manner, or to take any action inconsistent with applicable law, including without limitation the City’s General Plan, the Santa Fe Springs Municipal Code (including the Zoning Code), or CEQA. Restaurant Owner agrees to timely submit complete applications and to diligently provide all plans, technical studies, reports, supporting documentation, and other information reasonably required by the City to process any such Discretionary Approvals. Restaurant Owner shall be responsible for all costs associated with the preparation, submittal, and processing of such applications, including but not limited to application fees, consultant costs, and the preparation of any environmental documentation required under CEQA.
ARTICLE 5
DEFAULTS, REMEDIES AND TERMINATION
5.1 Defaults - General.
(a) Subject to any extensions of time provided for in this Agreement or as otherwise provided in Section 5.3, below, failure or delay by any Party to perform any term or provision of this Agreement shall constitute an Event of Default under this Agreement; provided, however, that if a Party otherwise in default commences to cure, correct or remedy such default within thirty (30) calendar days after receipt of written notice from the non-defaulting Party specifying such default, and diligently and continuously prosecutes such cure, correction or remedy to completion, such Party shall not be deemed to be in default under this Agreement.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 15 (b) The non-defaulting Party shall give written notice of default to the Party in default, specifying the default complained of by the non-defaulting Party. (c) Any failure or delay by any Party in asserting any of their rights and/or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies of such Party nor shall it change the time of default. Delays by any Party in asserting any of their rights and/or remedies shall not deprive such Party of its right to institute and maintain any actions or proceedings that it may deem necessary to project, assert or enforce any such rights or remedies. (d) Notwithstanding the foregoing, this Agreement shall automatically terminate if the Completion Date has not occurred by the third anniversary following the Effective Date.
5.2 Events of Default. In addition to other acts or omissions that may legally or equitably constitute a default or breach of this Agreement, the occurrence of any of the following specific events shall constitute an “Event of Default” under this Agreement that is subject to the provisions of this Article 5:
(a) Any default by Restaurant Owner of any of the covenants, terms or conditions of this Agreement that is not cured to City’s reasonable satisfaction in accordance with the provision in Section 5.1(a), above.
(b) Restaurant Owner ceases conduct of the Required Operations during the Operating Period other than for Permitted Closures as set forth in Section 4.1 or due to Force Majeure or casualty.
(c) Restaurant Owner fails to timely accomplish the Completion Date in accordance with the schedule set forth in Sections 2.1 and 2.2, except that there is no default if the failure is due to Force Majeure or casualty.
(d) Restaurant Owner fails to pay or cause to be paid any sum of money becoming due to City pursuant to this Agreement and such failure is not cured within ten (10) business days after written notice.
(e) Except with the prior written consent of City as set forth in Section 3.6 or as set forth in Section 6.3, Restaurant Owner Transfers all or any portion of its interest in this Agreement or the Property, whether voluntarily, involuntarily or by operation of law, in violation of the terms and conditions of this Agreement.
(f) Any default by Restaurant Owner of any of the covenants, terms or conditions of the Restaurant Owner Operating Covenant that is not cured to the non-defaulting party’s reasonable satisfaction within thirty (30) calendar days following written notice of the default to the defaulting party by the non-defaulting party or the expiration of an applicable shorter cure period as set forth in the Restaurant Owner Operating Covenant.
(g) Restaurant Owner becomes insolvent or a receiver is appointed to conduct the affairs of Restaurant Owner (as applicable) under state or federal law.
5.3 Remedies.
(a) City Remedies. The occurrence of any Event of Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or Santa Fe Springs Operating Covenant Agreement No. 2026-001 16 automatically where specified, relieve the City of the obligation to pay the Grant Amount if not yet paid, and shall give the City the right to proceed with any and all remedies set forth in this Agreement and the Deed of Trust, including but not limited to:
(i) Foreclosure. The City shall have the right to foreclose upon the Property pursuant to the Deed of Trust, or otherwise realize upon any liens or security interests securing Restaurant Owner’s performance hereunder.
(ii) Repayment of Grant Amount. In an Event of Default by Restaurant Owner, City shall have the right to repayment of the Grant Amount as set forth in this Section 5.3(a)(ii), together with any funds expended pursuant to Section 5.3(a)(iv), which, upon notice to Restaurant Owner thereof, shall become immediately due and payable in full without presentment, demand, protest, or other notice of any kind, all of which are hereby waived by Restaurant Owner. In any Event of Default by Restaurant Owner, the City shall have the right to repayment of a portion of the Repayable Grant Amount calculated as follows: the Repayable Grant Amount less the Earned Forgiveness Amount (“Pro-Rated Reduced Repayment Amount”). By way of example, if Restaurant Owner defaults under this Agreement during the seventy-third (73rd) Compliance Month, Restaurant Owner shall be determined to have completed seventy-two (72) Compliance Months: The Earned Forgiveness Amount shall equal One Million Three Hundred Ninety Seven Thousand Nine Hundred and Ninety-Nine and 52/100 Dollars ($1,397,999.52) (72 x 19,416.66), and the Pro-Rated Reduced Payment Amount due to the City shall equal Nine Hundred Thirty-Two Thousand 48/100 Dollars ($932,000.48) ($2,330,000 [Repayable Grant Amount] - $1,397,999.52 [72 x Compliance Months x 19,416.66] = $932,000.484 [Pro-Rated Reduced Payment Amount]). Repayment of the Repayable Grant Amount shall be paid to the City within thirty (30) days of the City’s written demand in the event of default.
(iii) Specific Performance. The City shall have the right to suit, action or other proceeding at law or in equity to require Restaurant Owner to perform its obligations and covenants under this Agreement and the Deed of Trust, or to enjoin acts or things which may be unlawful or in violation of the provisions of this Agreement and the Deed of Trust. (iv) Right to Cure at Restaurant Owner’s Expense. The City shall have the right (but not the obligation) to cure any monetary default by Restaurant Owner of its obligations under this Agreement after providing Restaurant Owner 30 days’ written notice and a reasonable opportunity to cure said default pursuant to Section 5.1. Restaurant Owner agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Restaurant Owner upon demand therefor, together with interest thereon at a rate of the lesser of ten percent (10%), compounded annually, or the highest rate permitted by law, from the date of expenditure to the date of reimbursement.
(v) Termination of Agreement. The City shall have the right to terminate the Agreement, effective upon the date that the City issues written notice to Restaurant Owner. (b) Following City’s exercise of the remedies in Section 5.3(a)(i), (ii), and/or (iv) above, this Agreement shall terminate, except for provisions that expressively survive termination, and shall be of no further force and effect. In no event shall the Restaurant Owner be responsible for the repayment to City or any other party of any or all of the Grant upon Termination of the Agreement or otherwise, except as expressly provided in this Section.
Santa Fe Springs Operating Covenant Agreement No. 2026-001 17 (c) Restaurant Owner Remedies; No Right to Consequential Damages. Upon fault or failure of the City to meet any of its obligations under this Agreement without curing such failure within thirty (30) days after receipt of written notice of such failure from Restaurant Owner specifying the nature of the event of deficiency giving rise to the default, Restaurant Owner may, as its sole and exclusive remedy, bring an action in equitable relief seeking the specific performance by the City of the terms and conditions of this Agreement or seeking to enjoin any act by the City which is prohibited hereunder. Restaurant Owner shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from City and its members, directors, agents, officers, representatives and employees arising out of or in connection with this Agreement, and in connection with such waiver, and only with respect to right to seek indirect or consequential damages of any kind or nature from City and its members, directors, agents, officers, representatives and employees arising out of or in connection with this Agreement (except to those rights reserved elsewhere in this Agreement), Restaurant Owner is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: “A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” Restaurant Owner Initials:
5.4 Legal Actions.
(a) Except as set forth in Section 5.3, any Party hereto may institute legal action to cure, correct or remedy any default, to recover damages regarding any default, or to obtain any other remedy available to that Party under this Agreement, at law or in equity. Such legal actions must be instituted in the Superior Court of the State of California in and for the County of Los Angeles, California, in any other appropriate court within the County of Los Angeles, California, or in the United States District Court for the Central District of California. (b) The laws of the State of California shall govern the interpretation and enforcement of this Agreement, without regard to conflicts of laws principles. The Parties acknowledge and agree that this Agreement is entered into, is to be fully performed in and relates to real property located in, the City of Santa Fe Springs, County of Los Angeles, California.
5.5 Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties set forth in this Article 5 are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by the same Party, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
5.6 Indemnification and Defense of City and Owner.
(a) Indemnity. In addition to any other specific indemnification of defense obligations of Restaurant Owner set forth in this Agreement or any other agreement between the Parties and to the fullest extent permitted by law, Restaurant Owner agrees to hold harmless, indemnify, and defend (upon written request by the Indemnified Party and with counsel reasonably acceptable to such Indemnified Party) and hold harmless each and all of the City Parties (each an “Indemnified Party”) Santa Fe Springs Operating Covenant Agreement No. 2026-001 18 from and against all Claims, as defined in subsection (b), below, that are in any manner directly or indirectly caused, occasioned or contributed to in whole or in part by:
(1) Any act, omission, fault or negligence, of Restaurant Owner, or its respective agents, employees, independent contractors or subcontractors, relating in any manner to this Agreement, any work to be performed by any such person related to this Agreement; or (2) Any authority or obligation exercised or undertaken by Restaurant Owner under this Agreement; or
(3) Any breach or default in performance of any obligation of Restaurant Owner under this Agreement.
(b) Definition of “Claims.” For purposes of this Agreement, “Claims” means any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort or contract, at law or in equity, or otherwise), charges, awards, assessments, fines, and penalties of any kind (including consultant and expert expenses, court costs, and reasonable attorneys’ fees of counsel retained by the Indemnified Parties, expert fees, costs of staff time, and investigation costs, of whatever kind or nature), and judgments, including, but not limited to, Claims for: (1) injury to any person (including death at any time resulting from that injury) which occur or arise on the Property; (2) loss or injury or damage to, or destruction of property (including all loss of use resulting from that loss, injury, damage, or destruction) which occur or arise on the Property; (3) any workers’ compensation claims arising or occurring on the Property pertaining to work performed for or on behalf of Restaurant Owner (excluding claims by employees or agents of the City); (4) goods or services provided to Restaurant Owner or the Property; and (5) all economic losses and consequential or resulting damage of any kind arising from or related to the acts or omissions of Restaurant Owner or its employees. Notwithstanding any other provision in this Agreement, Restaurant Owner shall not have any duty to indemnify or defend any Indemnified Party against claims that the Indemnified Party entered into this Agreement or took action related to this Agreement in violation of the law or without legal authority.
(c) Strict Liability. Except to the extent that this clause conflicts with another provision of this Agreement, the indemnification obligation of Restaurant Owner shall apply regardless of whether liability without fault or strict liability is imposed or sought to be imposed on one or more of the Indemnified Parties. Notwithstanding anything to the contrary herein, the indemnification obligations of Restaurant Owner shall not apply to the extent that a final judgment of a court of competent jurisdiction establishes that a Claim against an Indemnified Party was proximately caused by the negligence or willful misconduct of that Indemnified Party. (d) Independence of Obligations. The indemnification obligations pursuant to this Section 5.6 shall not be construed or interpreted as in any way restricting, limiting, or modifying the other obligations under this Agreement and is independent of the other obligations under this Agreement. Compliance with obligations under this Agreement shall not in any way restrict, limit, or modify Restaurant Owner’s indemnification obligations under this Agreement. (e) Attorney Fees. The Indemnified Parties shall be entitled to recover their reasonable attorney fees and actual costs incurred in enforcing Restaurant Owner’s indemnification obligations set forth in this Agreement.
(f) Survival of Indemnification and Defense Obligations. Restaurant Owner’s Santa Fe Springs Operating Covenant Agreement No. 2026-001 19 indemnification and defense obligations under this Agreement shall survive the expiration or earlier termination of this Agreement, until all applicable challenge periods have passed and Claims against any of the Indemnified Parties involving any of the indemnified matters are fully, finally, and absolutely and completely barred by the applicable statutes of limitation and any applicable appeals period(s).
(g) Independent Duty to Defend. Restaurant Owner’s duty to defend the Indemnified Parties (with counsel reasonably acceptable to the Indemnified Parties as set forth in Section 5.6(a)) is separate and independent of Restaurant Owner’s duty to indemnify the Indemnified Parties. The duty to defend includes Claims for which the Indemnified Parties may be liable without fault or strictly liable. The duty to defend applies regardless of whether the issues of negligence, liability, fault, default, or other obligation on the part of the Parties have been determined. The duty to defend applies immediately, regardless of whether the Indemnified Parties have paid any sums or incurred any detriment arising out of or relating (directly or indirectly) to any Claims. It is the express intention of Restaurant Owner that the Indemnified Parties be entitled to obtain summary adjudication or summary judgment regarding Restaurant Owner’s duty to defend the Indemnified Parties at any stage of any Claim or suit within the scope of this Section 5.6.
5.7 Duty of City to Defendant and Indemnify. The City shall indemnify, defend, and hold harmless Restaurant Owner and its principals, agents, employees, attorneys, insurers, successors and assigns (“Restaurant Indemnitees”), from any and all claims by any person, entity, or agency, alleging that this Agreement was (a) entered into in violation of the law(s) (b), that the City did not have authority to enter into this Agreement or issue the Grant, or (c) that the City or the City’s employees, agents, consultants, or contractors engaged in intentional or malicious acts which caused injury or damage so long as the City’s employee, agent, consultant or contractor’s acts arise from their scope of employment or work for the City. This duty to indemnify, defend and hold harmless Restaurant Indemnitees shall survive the termination of this Agreement until the applicable statute of limitations period for the claims and appeals have expired. Restaurant Indemnitees are entitled to recover their reasonable attorney fees and actual costs incurred in enforcing City’s indemnification and defense obligations set forth in this Agreement. Restaurant Indemnitees shall have the right to counsel of their own choosing with regards to the City’s duty to indemnify and defend.
ARTICLE 6
GENERAL PROVISIONS
6.1 Incorporation of Recitals. The Recitals of fact set forth at the beginning of this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference.
6.2 Parties to the Agreement. The Parties to this Agreement are City, Banquet Operator, and Restaurant Operator.
6.3 Restrictions on Change in Management or Control of Restaurant Owner and Transfers.
(a) Restaurant Owner acknowledges that The Olive RestoBar brand including qualifications and identity of Restaurant Owner are of particular importance to City and that a Transfer of any of Restaurant Owner’s interest in this Agreement or the Property, changes in the Restaurant to be operated on the Property, and changes in ownership and control of Restaurant Owner are only Santa Fe Springs Operating Covenant Agreement No. 2026-001 20 allowed during the Operating Period pursuant to the terms and conditions of this Section 6.3 and with the prior written consent of City, which, except as set forth in Section 6.3(b), shall be in the form of approval by the City Council, and which consent may be withheld, conditioned or delayed in City’s reasonable discretion. No voluntary or involuntary successor in interest of Restaurant Owner shall acquire any right or interest in this Agreement without the prior written consent of City pursuant to this Section 6.3. Any Transfer made in contravention of this Section 6.3 shall be voidable at the election of City and, if voided, shall be deemed to be an Event of Default by Restaurant Owner, whether or not Restaurant Owner knew of or participated in such Transfer. When reviewing and deciding upon any proposed Transfer of this Agreement or the Property, City shall consider the financial capacity of the proposed transferee or assignee to perform the terms and conditions in this Agreement, and Restaurant Owner shall deliver or cause to be delivered to City any documentary evidence concerning the proposed transferee’s or assignee’s financial capacity that City may request or need to review in City’s reasonable discretion to evaluate the proposed Transfer. In the event that City approves a Transfer pursuant to this Section 6.3, no such Transfer shall be effective unless and until Restaurant Owner and a City-approved transferee or assignee execute and deliver to City at least thirty (30) days prior to such Transfer, an assignment and assumption agreement, in recordable form and acknowledged for recording, in a form and with content reasonably acceptable to City and the City Attorney, pursuant to which the transferee or assignee assumes, for City’s benefit, all of Restaurant Owner’s obligations hereunder.
(b) Notwithstanding the general prohibition of Transfers in Section 6.3(a), above, after the Effective Date, transfers or assignments to any entity which controls, is controlled by or is under common control with Restaurant Owner, as evidenced by written documentation provided to City prior to the transfer or assignment, are permitted without the prior written approval by City, provided that Restaurant Owner delivers to City written notice of the proposed Transfer no less than thirty (30) days prior to the anticipated date of the Transfer along with the proposed assignment and assumption agreement for review and approval by City and the City Attorney. (c) Notwithstanding any other provision in this Agreement to the contrary, and provided that no Event of Default then exists, City approval of a Transfer shall not be required in connection with any of the following:
(i) the granting of temporary easements or permits to facilitate the development of the Property as the Restaurant or to otherwise facilitate improvements necessary for the Required Operations;
(ii) except as set forth in Section 3.6(a)-(c), assignments creating security interests for the purpose of financing, the acquisition, construction or permanent financing of the Property or Project thereon, unless expressly subordinate to the security interest in the Mortgaged Property granted to City pursuant to the Deed of Trust, as set forth in Section 3.6. Notwithstanding the foregoing, Restaurant Owner shall give at least thirty (30) days’ prior notice of the proposed assignment and execute and enter into a subordination agreement in a form satisfactory to the City expressly subordinating such Further Encumbrance to the security interest in the Mortgaged Property granted to the City pursuant to the Deed of Trust, as set forth in Section 3.6; (iii) Transfers directly resulting from the foreclosure of, or granting of a deed in lieu of foreclosure of, such a security interest, subject to the provisions of Section 3.6.
6.4 Covenants Run With The Land. During the Operating Period and prior to the expiration or earlier termination of this Agreement, the covenants, conditions, restrictions, Santa Fe Springs Operating Covenant Agreement No. 2026-001 21 reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Restaurant Owner and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns during the Operation Period and until the expiration or earlier termination of this Agreement only, and the Parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City.
Furthermore, all of the covenants, conditions, and restrictions contained herein shall constitute easements in gross running in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Restaurant Owner hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that Restaurant Operator’s interest in the Property may be rendered less valuable thereby. Restaurant Owner hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. Notwithstanding anything to the contrary herein, in the event this Agreement is terminated prior to the end of its term, (a) the Restaurant Owner Operating Covenant shall be deemed to have expired and be of no further effect except for any indemnity and defense obligations (if and to the extent applicable, which expressly survive the termination of this Agreement), and (b) the Parties shall cooperate to extinguish the Notice of Agreement from the public record.
6.5 Notices, Demands and Communications Between the Parties. (a) All notices under this Agreement shall be effective upon personal delivery, upon delivery by reputable overnight courier service that provides a receipt with the date and time of delivery, via facsimile so long as the sender receives confirmation of successful transmission from the sending machine, or three (3) business days after deposit in the United States mail, postage fully prepaid and addressed to the respective Parties as set forth below or as to such other address as the Parties may from time to time designate in writing:
To Restaurant Operator:
The Olive Banquet SS, LLC
9288 Lubec Street,
Downey, CA 90240
Attn: Sam Sarofeem
Phone: 562-505-3755
With a copy to:
Law Office of Anahita Hasheminejad PLC
2152 Dupont Drive Suite 280
Irvine, CA 92612
Attn: Anahita Hasheminejad, Esq.
Phone: 949-260-8420
Email: [email protected]
Santa Fe Springs Operating Covenant Agreement No. 2026-001 22 To Banquet Operator:
The Olive Banquet Inc.
9288 Lubec Street,
Downey, CA 90240
Attn: Sam Sarofeem
Phone: 562-505-3755
With a copy to:
Law Office of Anahita Hasheminejad PLC
2152 Dupont Drive Suite 280
Irvine, CA 92612
Attn: Anahita Hasheminejad, Esq.
Phone: 949-+60-8420
Email: [email protected]
To City: City of Santa Fe Springs
11710 Telegraph Road
Santa Fe Springs, CA 90670
Attention: City Manager
Telephone: (562) 868-0511
Courtesy Copy: Olivarez Madruga Law Organization, LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Attention: Paloma McEvoy
Telephone (213) 744-0099
6.6 Governing Law and Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.
6.7 Conflict of Interest. No member, official or employee of City having any economic interest, direct or indirect, related to this Agreement shall participate in any decision relating to this Agreement. The Parties represent and warrant that they do not have knowledge of the existence of any such conflict of interest.
6.8 Warranty Against Payment of Consideration for Agreement. Restaurant Owner warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section 6.8 shall not include persons to whom fees are paid for professional services, if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by Restaurant Owner.
6.9 Non-liability of City Officials and Employees. No member, official or employee of City shall be personally liable to Restaurant Owner, or any successor in interest, in the event of any default or breach by City under this Agreement or for any amount that may become due to Restaurant Owner or to its successors, or on any obligations under the terms of this Agreement. This provision does not however absolve or act as a waiver of Restaurant Owner’s rights to pursue claims for Santa Fe Springs Operating Covenant Agreement No. 2026-001 23 intentional torts or fraudulent conduct by said members, officials, or employees of City acting in their official capacity.
6.10 Relationship of the Parties. It is understood and agreed by the Parties that the contractual relationship created between the Parties hereunder is that Restaurant Owner is an independent contractor and not an agent of the City. Further, the City and Restaurant Owner hereby renounce the existence of any form of agency, joint venture, or partnership between them and agree that nothing herein or in any document executed in connection herewith shall be construed as making the City and Developer agents of one another or as joint venturers or partners.
6.11 Unavoidable Delay; Extension of Time of Performance. (a) Performance by any Party under this Agreement shall not be deemed to be in default, or considered to be a default, where any delay or default is due to an Unavoidable Delay (Force Majeure). In the event that an Unavoidable Delay occurs, and a Party is unable to timely perform any obligation under this Agreement, an extension of time for any Unavoidable Delay shall be granted for the period of time that the Unavoidable Delay exists and shall commence to run from the date of occurrence of the Unavoidable Delay, but only if the Party asserting the existence of the Unavoidable Delay provides the other Party with written notice of the occurrence of the Unavoidable Delay, within ten (10) calendar days of the commencement of the asserted Unavoidable Delay. If the Party asserting the existence of the Unavoidable Delay fails to provide the other Party with timely written notice, then extension of time for such Unavoidable Delay shall commence to run from the date of written notice of such Unavoidable Delay. In the event that an Unavoidable Delay disrupts Required Operations for ninety (90) days or more, Restaurant Owner shall deliver to City written notice of an action plan that Restaurant Owner will implement so that the Property may resume operations for the Required Operations within an additional ninety (90) days of delivery of said notice; In the event that the Property is not used for the Required Operations within three hundred sixty five (365) days from the commencement of a particular cause of an Unavoidable Delay, City shall have the right to declare that Restaurant Owner has committed an Event of Default and may pursue any rights or remedies against Restaurant Owner pursuant to Article 5, above, however, if the Unavoidable Delay disrupts Required Operations due to damage or destruction of the Mortgaged Property, and the failure to resume the Required Operations after an Unavoidable Delay is the direct or indirect result of acts or omission of the City or State which prevents repairs, rehabilitation, or reconstruction of the damaged or destroyed improvement necessary to resume Required Operations (i.e., failure to make necessary repairs to road and infrastructure in a timely fashion after an earthquake or other Force Majeure event) which are out of the control of Restaurant Owner and not the responsibility of the Restaurant Owner, then the failure to resume Required Operations shall not constitute an Event of Default, and, so long as Restaurant Operator has maintained all insurance for the Property as required under the Deed of Trust (such insurance requirements under the Deed of Trust are hereby incorporated by reference as if set fully set forth herein), the Parties may mutually agree to terminate this Agreement and shall share equally in the proceeds of insurance (with the exception that the City’s portion of insurance proceeds shall not exceed any amount owed to City by Restaurant Owner under the terms of this Agreement), this Agreement shall be terminated, with no further obligations hereunder except for those obligations under this Agreement which expressly survive the expiration or earlier termination of this Agreement. (b) The Parties expressly acknowledge and agree that changes in either general economic conditions or changes in the economic assumptions of either of them that may have provided a basis for entering into this Agreement and that occur at any time after the execution of this Agreement, do not constitute an Unavoidable Delay and do not provide any Party with grounds for asserting the existence of an Unavoidable Delay in the performance of any covenant or undertaking Santa Fe Springs Operating Covenant Agreement No. 2026-001 24 arising under this Agreement. Each Party expressly assumes the risk that changes in general economic conditions or changes in such economic assumptions relating to the terms and covenants of this Agreement could impose an inconvenience or hardship on the continued performance of such Party under this Agreement.
6.12 Tolling. The Parties agree that all applicable statutes of limitation, time-based defenses, as well as all time periods in which a Party must exercise rights or perform obligation hereunder, will be tolled for the pendency of litigation challenging the validity of this Agreement or the City’s authority to enter into this Agreement or perform City’s obligations hereunder, commencing on the date on which the applicable complaint is filed until the date of any final, non-appealable judgment, settlement, or other resolution of such judicial proceeding or legal action, claim or controversy.
6.13 Binding on Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns, which have been approved as successors or assigns pursuant to the terms and conditions of this Agreement.
6.14 Waiver, Amendments, and Modifications. A waiver of a provision in this Agreement, or amendment or modification of any provision herein contained, shall be effective only if said waiver, amendment, or modification is in writing and signed by all Parties. No waiver of any breach or default by any Party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver.
6.15 Amendments by City. Notwithstanding the authority granted in Section 2.1 of this Agreement, the City Manager is authorized on behalf of City to approve and execute minor amendments to this Agreement, including, but not limited to, the granting of extensions of time to Restaurant Owner that do not exceed ninety (90) calendar days in the aggregate.
6.16 Counterpart Originals; Integration. This Agreement may be executed in counterparts, originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. This Agreement and its exhibits represent the entire understanding of the Parties regarding the Restaurant Owner Operating Covenant, and supersedes all prior negotiations, letters of intent, memoranda of understanding or agreements between the Parties with respect to all or any part of the subject matter of this Agreement.
6.17 Survival or Indemnity and Other Obligation. All general and specific indemnity and defense obligations of the Parties set forth in this Agreement and all reimbursement and other obligations that may be expressly provided herein shall survive the expiration of the Operating Period or termination of this Agreement unless an expiration period is otherwise set forth in this Agreement.
6.18 Interpretation. The Parties acknowledge that this Agreement is the product of mutual arms-length negotiation and drafting and that each Party has been represented by legal counsel in the negotiation and drafting of this Agreement. Accordingly, any rule of construction providing that ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement.
6.19 Entire Agreement. This Agreement, including all attached exhibits, constitutes the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have Santa Fe Springs Operating Covenant Agreement No. 2026-001 25 been entered into between the Parties prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.14, above.
6.20 Severability. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and shall not be affected, impaired or invalidated thereby.
6.21 No Third-Party Beneficiaries. The performance of each Party’s respective obligations under this Agreement are not intended to benefit any Party other than the Parties, except as expressly provided otherwise herein. No person or entity not a signatory to this Agreement shall have any rights or causes of action against any Party to this Agreement as a result of that Party’s performance or non-performance under this Agreement, except as expressly provided otherwise herein.
6.22 City Manager Implementation. City shall implement this Agreement through its City Manager. The City Manager is hereby authorized by City to issue approvals, interpretations or waivers and enter into certain amendments to this Agreement on behalf of City, to the extent that any such action(s) does/do not materially or substantially increase the monetary obligations of City by more than Fifty Thousand Dollars ($50,000) in the aggregate. All other actions shall require the consideration and approval of the City Council, unless expressly provided otherwise by action of the City Council.
Nothing in this Section 6.22 shall restrict the submission to the City Council of any matter within the City Manager’s authority under this Section 6.22, in the City Manager’s sole and absolute discretion, to obtain the City Council’s express and specific authorization on such matter. The specific intent of this Section 6.22 is to authorize certain actions on behalf of City by the City Manager, but not to require that such actions be taken by the City Manager, without consideration by the City Council.
6.23 Authority to Execute. The persons executing this Agreement on behalf of the Parties warrant and represent that they have the authority to execute this Agreement on behalf of said Parties and have the authority to bind the Parties to the provisions of this Agreement.
6.24 Electronic Signatures. The Parties acknowledge and agree that execution of the Agreement by electronic signature or electronic transmittal of signatures shall have the same effect as handwritten signatures for the purposes of validity, enforceability, and admissibility. [SIGNATURES ON FOLLOWING PAGES]
Santa Fe Springs Operating Covenant Agreement No. 2026-001 26 SIGNATURE PAGE
TO
OPERATING COVENANT AGREEMENT
IN WITNESS WHEREOF, City and Restaurant Owner have executed this Operating Covenant Agreement by and through the signatures set forth below.
CITY:
CITY OF SANTA FE SPRINGS
By:_____________________________
René Bobadilla, City Manager
Date:
By:
Maribel Garcia, City Clerk
APPROVED AS TO FORM:
By:_____________________________
Rick Olivarez, City Attorney
Date:
BANQUET OPERATOR:
THE OLIVE BANQUET INC.
By:_____________________________
Sam Sarofeem, Chief Executive Officer
Date:
RESTAURANT OPERATOR:
THE OLIVE BANQUET SS, LLC.
By:_____________________________
Sam Sarofeem, Manager
Date:
Santa Fe Springs Operating Covenant Agreement No. 2026-001 27 EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
All that certain property located in the City of Santa Fe Springs, County of Los Angeles, State of California, described as follows:
LEGAL DESCRIPTION
Real property in the City of Santa Fe Springs, County of Los Angeles, State of California, described as follows:
Parcel 1:
Parcel 1 of PARCEL MAP NO. 17237, in the City of Santa Fe Springs, County of Los Angeles, State of California as per map recorded in Book 185 Pages 21 and 22 of Parcel Maps in the Office of the County Recorder of said County.
Parcel 2:
That portion of Parcel 2 of PARCEL MAP NO. 17237, in the City of Santa Fe Springs, County of Los Angeles, State of California, as per map recorded in Book 185 Pages 21 and 22 of Parcel Maps in the Office of the County Recorder of said County, described as follows: Beginning at the Southeasterly corner of Parcel 1 of said Parcel Map; thence along the Southwesterly line of said Parcel 1 North 74°54'15" West 182.70 feet to the Southwesterly corner thereof: thence South 15°05'4" West 55.00 feet; thence South 74°54'15" East 182.70 feet to the Easterly line of said Parcel 2; thence along said Easterly line, North 15°05'45" East 55.00 feet to the Point of Beginning.
APN: 8009-026-012 (Affects Parcel 1)
APN: 8009-026-018 (Affects Parcel 2)
Santa Fe Springs Operating Covenant Agreement No. 2026-001 28 EXHIBIT “B”
SITE PLAN
Santa Fe Springs Operating Covenant Agreement No. 2026-001 29 EXHIBIT “C”
NOTICE OF AGREEMENT AND DECLARATION OF COVENANTS
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Olivarez Madruga Law Organization, LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Attention: Paloma McEvoy
Telephone 213-744-0099
[This space for Recorder’s Use]
NOTICE OF AGREEMENT AND DECLARATION OF COVENANTS
THIS NOTICE OF AGREEMENT AND DECLARATION OF COVENANTS
(“Memorandum”) is made as of [date] among CITY OF SANTA FE SPRINGS, a California municipal corporation (“City”) and THE OLIVE BANQUET INC, a California corporation and THE OLIVE BANQUET SS, LLC, a California Limited Liability Company (collectively, “Restaurant Owners”).
1. Agreement. City and Restaurant Owners have entered into that certain unrecorded Operating Covenant Agreement (“Agreement”) dated as of____________________ , 2026 establishing certain commitments and requirements regarding certain real property located in Los Angeles, California, described on Exhibit “A” attached hereto (the “Property”).
2. Covenants of Restaurant Owners. The parties have executed and recorded this instrument for the purpose of imparting notice of the existence and application of the Agreement and the covenants of Restaurant Owners regarding the use of the Property for a restaurant and banquet hall purpose for a ten (10) year operating period. The terms are as set forth in the unrecorded Agreement all of which are incorporated herein by reference as though set forth fully herein. In the event of an inconsistency between this Memorandum and the Agreement, the Agreement shall control. This Memorandum and the Agreement shall bind and inure to the benefit of the parties hereto, and their respective heirs, successors and assigns.
3. Termination. This Memorandum shall terminate and be of no further force or effect in the event the termination or expiration of the Agreement. [Signatures on following page.]
Santa Fe Springs Operating Covenant Agreement No. 2026-001 30 IN WITNESS WHEREOF, Restaurant Owners and City have executed this Memorandum on the dates set forth below.
“City”
CITY OF SANTA FE SPRINGS,
_____________________________________
René Bobadilla, City Manager
ATTEST:
“Restaurant Owners”
Maribel Garcia, City Clerk THE OLIVE BANQUET INC.
APPROVED AS TO FORM:
Sam Sarofeem, Chief Executive Officer
By:
Rick Olivarez, City Attorney
THE OLIVE BANQUET SS, LLC
_______________________________________
Sam Sarofeem, Manager
Santa Fe Springs Operating Covenant Agreement No. 2026-001 31 Santa Fe Springs Operating Covenant Agreement No. 2026-001 32 EXHIBIT “A” TO NOTICE OF AGREEMENT AND DECLARATION OF
COVENANTS
LEGAL DESCRIPTION OF PROPERTY
[TO BE ATTACHED]
Santa Fe Springs Operating Covenant Agreement No. 2026-001 33 Santa Fe Springs Operating Covenant Agreement No. 2026-001 34 EXHIBIT “D”
DEED OF TRUST
[TO BE ATTACHED]
Performance Deed of Trust Page 1 of 12
Recording requested by and when
recorded mail to:
City of Santa Fe Springs
11710 Telegraph Road
Santa Fe Springs, CA 90670
Attn: City Manager
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§27383, 27388.1
(Space Above This Line For Recorder’s Use Only)
PERFORMANCE DEED OF TRUST
(Operating Covenant Agreement)
This PERFORMANCE DEED OF TRUST (“Deed of Trust”) is made as of ____ of March, 2026 (“Effective Date”), by and between THE OLIVE BANQUET SS, LLC, a California Limited Liability Company (“Trustor”), whose address is 9288 Lubec Street, Downey, CA 90240; [Title Company or other Trustee], a [state] [entity type], as trustee (“Trustee”); and the CITY OF SANTA FE SPRINGS, a public body, corporate and politic, as beneficiary (including its agents, successors and assigns, “Beneficiary” or “City”), to secure certain obligations of Trustor and The Olive Banquet Inc. (“Banquet Operator” and collectively with Trustor, “Restaurant Owner”).
RECITALS
A. Trustor is the owner of the real property located at 11900 Telegraph Road, Santa Fe Springs, CA 90670, and more particularly described in the attached Exhibit “A”, which is incorporated herein by reference (the “Property”).
B. Trustor intends to use the Property as (i) The Olive RestoBar restaurant to be operated by Trustor, and (ii) a separate banquet hall to be operated by Banquet Operator as a rentable event space (together, the “Restaurant”).
C. Beneficiary, Trustor, and The Olive Banquet Inc. entered into an Operating Covenant Agreement dated as of _________, 2026, and a Notice of Agreement and Declaration of Covenants to provide constructive notice of the existence and application thereof, recorded in the Official Records of Los Angeles County substantially concurrently herewith (collectively, the “Operating Covenant Agreement”) (capitalized terms used without definition herein have the meaning ascribed to such terms in the Operating Covenant Agreement).
D. Pursuant to the Operating Covenant Agreement, Beneficiary shall make a grant of funds to Trustor to assist Restaurant Owner with the costs of continuously operating and staffing the Restaurant, and maintaining job opportunities (the “Grant”), which shall be conditional upon Restaurant Owner’s compliance with the obligations under the Operating Covenant Agreement. Provided Restaurant Owner complies with the obligations thereunder, Performance Deed of Trust Page 2 of 12
Restaurant Owner shall be subject to no obligation to repay the Grant. Restaurant Owner has certain rights to voluntary repayment of the Pro-Rated Reduced Repayment Amount and early termination of the Operating Covenant Agreement, as set forth in greater particularity therein.
E. Pursuant to the Operating Covenant Agreement, Restaurant Owner is obligated, among other requirements, to adhere to those certain Restaurant Owner Operating Covenants, and is prohibited from using the Grant funds for the costs of developing the project.
F. The Operating Covenant Agreement also sets forth (among other provisions):
(i) certain restrictions on Restaurant Owner’s Transfer of its interest in the Operating Covenant Agreement or the Property without the prior written consent of the City; and (ii) certain restrictions on Restaurant Owner’s ability to encumber the Property without City’s prior written consent.
AGREEMENT
NOW, THEREFORE, to secure the full and timely performance by Restaurant Owner of the Secured Obligation, it is agreed as follows:
1. Recitals; Operating Covenant Agreement. The Recitals above are true and correct and incorporated, in full, herein. All terms and conditions of the Operating Covenant Agreement are incorporated by reference in this Deed of Trust with the same force and effect as though fully set forth herein.
2. Grant in Trust. Trustor, in consideration of the promises herein recited and the trust herein created, hereby irrevocably and unconditionally grants, transfers, conveys and assigns to Trustee, in trust for the benefit of Beneficiary, with power of sale, all estate, right title and interest which Trustor now has or may later acquire in and to the Property together with all of the following:
(i) all improvements now or hereafter located or constructed on the Property and all replacements and additions thereto (“Improvements”); (ii) all easements, rights of way, appurtenances and other rights used in connection with the Property or as a means of access thereto (“Appurtenances”); (iii) all fixtures now or hereafter attached to or used in and about the Property or the improvements located thereon or hereafter located or constructed on the Property, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to the improvements in any manner (“Fixtures and Equipment”); and
(iv) all leases, subleases, licenses and other agreements relating to use or occupancy of the Property (“Leases”) and all rents or other payments which may now or hereafter accrue or otherwise become payable to or for the benefit of Trustor (“Rents”) (whether or not such Leases and Rents are permitted by the Operating Covenant Agreement).
Performance Deed of Trust Page 3 of 12
All of the above-referenced Property, Improvements, Appurtenance, Fixtures and Equipment, Leases and Rents are herein referred to collectively as the “Security”.
3. Obligations Secured. This Deed of Trust is given by Trustor for the purpose of securing payment and/or performance by Restaurant Owner of the following (the “Secured Obligations”): (i) all present and future obligations of Trustor set forth in this Deed of Trust and of Restaurant Owner set forth in the Operating Covenant Agreement (including without limitation, Restaurant Owner’s obligation to adhere to the Restaurant Owner Operating Covenants for the duration of the Operating Period or until the earlier voluntary repayment of the Pro-Rated Reduced Repayment Amount by Restaurant Owner); (ii) all additional present and future obligations of Restaurant Owner, to Beneficiary under any other agreement or instrument acknowledged by Trustor (whether existing now or in the future) which states that it is or such obligations are, secured by this Deed of Trust; (iii) all modifications, supplements, amendments, renewals, and extensions of any of the foregoing, whether evidenced by new or additional documents; and (iv) reimbursement of all amounts advanced by or on behalf of Beneficiary to protect Beneficiary’s interests under this Deed of Trust.
4. Assignment of Rents, Issues, and Profits. Trustor hereby irrevocably, absolutely, presently and unconditionally assigns to Beneficiary the rents, royalties, issues, profits, revenue, income and proceeds of the Property. This is an absolute assignment and not an assignment for security only. Beneficiary hereby confers upon Trustor a license to collect and retain such rents, royalties, issues, profits, revenue, income and proceeds as they become due and payable prior to any Event of Default hereunder. Upon the occurrence of any such Event of Default, Beneficiary may terminate such license without notice to or demand except as required under the Operating Covenant Agreement upon Trustor and without regard to the adequacy of any security for the indebtedness hereby secured, and may either in person, by agent, or by a receiver to be appointed by a court, enter upon and take possession of the Property or any part thereof, and sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys’ fees, to any indebtedness secured hereby, and in such order as Beneficiary may determine. Beneficiary’s right to the rents, royalties, issues, profits, revenue, income and proceeds of the Property does not depend upon whether or not Beneficiary takes possession of the Property. The entering upon and taking possession of the Property, the collection of such rents, issues, and profits, and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. If an Event of Default occurs while Beneficiary is in possession of all or part of the Property and/or is collecting and applying Rents as permitted under this Deed of Trust, Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and invoke every right and remedy afforded any of them under this Deed of Trust and at law or in equity, including the right to exercise the power of sale granted hereunder. Regardless of whether or not Beneficiary, in person or by agent, takes actual possession of the Property and Improvements, Beneficiary shall not be deemed to be a “mortgagee in possession,” shall not be responsible for performing any obligation of the lessor under any lease, shall not be liable in any manner for the Property, or the use, occupancy, enjoyment or operation of any part of it, and unless due solely to the willful misconduct or gross negligence of Beneficiary, shall not be responsible for any dangerous or defective condition of the Property or any negligence in the management, repair or control of the Property.
Performance Deed of Trust Page 4 of 12
5. Fixture Filing. This Deed of Trust is intended to be and constitutes a fixture filing pursuant to the provisions of the UCC with respect to all of the Property constituting fixtures, is being recorded as a fixture financing statement and filing under the UCC, and covers property, goods and equipment which are or are to become fixtures related to the Property and the Improvements. Trustor covenants and agrees that this Deed of Trust is to be filed in the real estate records of Los Angeles County and shall also operate from the date of such filing as a fixture filing in accordance with Section 9502 and other applicable provisions of the UCC. This Deed of Trust shall also be effective as a financing statement covering minerals or the like (including oil and gas) and accounts subject to the UCC, as amended. Trustor shall be deemed to be the “debtor” and Beneficiary shall be deemed to be the “secured party” for all purposes under the UCC. The full name of Trustor and the mailing address of Trustor are set forth in the introductory paragraph of this Deed of Trust.
6. Trustor’s Representations, Warranties and Covenants.
6.1 Trustor’s Estate. Trustor represents and warrants that Trustor is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) the Operating Covenant Agreement, (b) those exceptions to title shown in the title report for the Property which are approved in writing by the City, and (c) any Further Encumbrances in accordance with the restrictions of Sections 3.6 of the Operating Covenant Agreement for which the applicable lender, creditor, or lienholder with an interest in the Security has duly executed and deposited into Escrow for recordation at the Close of Escrow a subordination agreement in a form satisfactory to the Beneficiary subordinating such interest to this Deed of Trust. Trustor agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions, whether listed in a schedule of exceptions to coverage in any title insurance policy insuring the City’s interest in the Security or Further Encumbrances.
6.2 Repayment of Sums Owed under Operating Covenant Agreement. Trustor will promptly pay to the City all sums due under the Operating Covenant Agreement, pursuant to the terms contained therein.
6.3 Operating Covenant Agreement. Trustor will observe and perform all of the covenants and agreements of the Operating Covenant Agreement.
6.4 Charges; Liens. Trustor will pay, prior to delinquency, all taxes, assessments and other charges, fines and impositions affecting the Security directly to the payee thereof.
Upon request by the City, Trustor will promptly furnish to the City all notices of such amounts due. Without limiting the restrictions on Further Encumbrances set forth under Section 3.6 of the Operating Covenant Agreement and obligation thereunder to enter into subordination agreements in a form satisfactory to City to ensure the seniority of its security interest under this Deed of Trust except as set forth in Section 3.6(c) of the Operating Covenant, Trustor shall pay when due each obligation secured by or reducible to a lien, charge or encumbrance which now does or later may encumber or appear to encumber all or part of the Property or any interest in it, whether or not such lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. Trustor shall not be required to pay any tax, levy, charge or assessment so long as its validity is being actively contested in good faith and by Performance Deed of Trust Page 5 of 12
appropriate actions and/or proceedings which will operate to prevent the enforcement of the lien or forfeiture of the Security or any part thereof.
6.5 Insurance.
(a) Trustor will keep the Security insured on a all risk (special form) basis with a property insurance policy equal to the replacement value of the Security (adjusted every five (5) years by appraisal, if requested by the City), naming the City as lender/mortgagee by a standard mortgagee or loss payable clause to protect the City’s secured interest in the event of damage or loss. If the Security is located in a flood plain, Trustor shall also obtain flood insurance. In no event shall the amount of insurance be less than the amount necessary to prevent Trustor from becoming a co-insurer under the terms of the policy.
The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by Trustor subject to approval by the City.
All insurance policies and renewals thereof will be in a form acceptable to the City.
The City shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Trustor shall promptly furnish to the City, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Trustor will give prompt notice to the insurance carrier and the City or its designated agent. The City, or its designated agent, may make proof of loss if not made promptly by Trustor. The City shall receive thirty (30) days advance notice of cancellation of any insurance policies required under this section.
Unless otherwise permitted by the City in writing, insurance proceeds will be applied to restoration or repair of the Security damaged. If permitted by City the insurance proceeds shall be used to repay any amounts due under the Operating Covenant Agreement, if applicable, with the excess, if any, paid to Trustor. If the Security is abandoned by Trustor, or if Trustor fails to respond to the City, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Trustor that the insurance carrier offers to settle a claim for insurance benefits, the City, or its designated agent, is authorized to collect and apply the insurance proceeds at the City’s option either to restoration or repair of the Security or to pay amounts due under the Operating Covenant Agreement.
If the Security is acquired by the City, all right, title and interest of Trustor in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition.
The City reserves the right to require increased limits or additional coverage if the Property is improved with new structures, the value of improvements materially increases, or the use of the property changes in a way that elevates risk. (b) During the course of any construction or rehabilitation of the improvements located on the Property, Trustor shall maintain builder’s risk insurance for the full completed value of the project, and shall hire only licensed contractors who maintain the following forms of insurance:
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(i) Commercial General Liability Insurance. Commercial general liability insurance with limits of at least One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in aggregate, with City named as an additional insured on a primary and non-contributory basis. (ii) Worker’s Compensation Insurance. Worker’s compensation insurance with levels consistent with applicable law, covering all persons employed in connection with any work on the Property, with City named as an additional insured on a primary and non-contributory basis.
(iii) Automobile Liability Insurance. Automobile liability insurance with limits of at least One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in aggregate, with City named as an additional insured on a primary and non-contributory basis.
(c) Once Restaurant Operations commence, Trustor shall be required to maintain the following forms of insurance:
(i) Commercial General Liability Insurance. Commercial general liability insurance with limits of at least Two Million Dollars ($2,000,000.00) per occurrence and Four Million Dollars ($4,000,000.00) in aggregate, with City named as an additional insured on a primary and non-contributory basis, a waiver of subrogation, and either (i) liquor liability coverage or (ii) confirmation that liquor liability is not excluded from the commercial general liability coverage. The City reserves rights to require increased limits if operating hours expand, alcohol service intensifies, or the use shifts towards a bar, events, or other entertainment-focused activities.
6.6 Preservation and Maintenance of Security. Trustor will keep the Security in good repair and in a neat, clean, and orderly condition and will not commit waste or permit impairment or deterioration of the Security. If there arises a condition in contravention of this Section, and if the Trustor has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Security to recover its cost of curing.
6.7 Protection of the City’s Security. If Trustor or Restaurant Owner, as applicable, fails to perform the covenants and agreements contained in this Deed of Trust or Operating Covenant Agreement, or if any action or proceeding is commenced which materially affects the City’s interest in the Security, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at the City’s option, without releasing Trustor from any obligation hereunder or Restaurant Owner from any obligation under the Operating Covenant Agreement, may make such appearances, disburse such sums and take such action as it determines necessary to protect the City’s interest, including but not limited to, disbursement of reasonable attorneys’ fees and entry upon the Security to make repairs. Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will become an indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and City agree to other terms of payment, such amount Performance Deed of Trust Page 7 of 12
will be payable upon notice from the City to Trustor requesting payment thereof, and will bear interest from the date of disbursement at the lesser of (i) ten percent (10%); or (ii) the highest rate permissible under applicable law. Nothing contained in this paragraph will require the City to incur any expense or take any action hereunder.
6.8 Inspection. The City may make or cause to be made reasonable entries upon and inspections of the Security; provided that the City will give Trustor reasonable notice of inspection. Trustor understands and agrees that any such City inspections are for the sole purpose of protecting City’s rights under this Deed of Trust and the Operating Covenant Agreement and not in its regulatory capacity, are made solely for City’s benefit, that City’s inspections may be superficial and general in nature, and are for the purposes of informing City of the progress towards the Completion Date in accordance with the terms and conditions of the Operating Covenant Agreement, and that Restaurant Owner shall not be entitled to rely on any such inspection(s) as constituting necessary approvals, authorizations, permits, and other permissions from Governmental Agencies to lawfully commence operations of the Restaurant on the Property or inspections associated therewith.
6.9 Hazardous Substances. Trustor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances in, on, under, about, or from the Property. Trustor shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal commercial/restaurant uses and to maintenance of the Property when used and disposed of in accordance with Environmental Law.
“Hazardous Substances” means, without implied limitation, substances defined as "hazardous substances," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminate" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601, et seq.); the Toxic Substances Control Act ("TSCA") (15 U.S.C. § 2601, et seq.); the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.); the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et seq.); those substances listed in the United States Department of Transportation (“DOT”) Table (49 CFR 172.101) or by the EPA, or any successor authority, as hazardous substances (40 CFR Part 302); and those substances defined as "hazardous waste" in Section 25117 of the California Health and Safety Code or, as "hazardous substances" in Section 25316 of the California Health and Safety Code; other substances, materials, and wastes that are, or become, regulated or classified as hazardous or toxic under federal, state, or local laws or regulations and in the regulations adopted pursuant to said laws, and shall also include manure, asbestos, polychlorinated biphenyl, flammable explosives, radioactive material, petroleum products, and substances designated as a hazardous substance pursuant to 33 USC Section 1321 or listed pursuant to 33 USC Section 1317. “Environmental Law” shall mean any federal laws governing the environment as in effect on the Effective Date together with their implementing regulations and guidelines as of the Effective Date, and all state, regional, county, municipal and other local laws, regulations and ordinances including without limitation laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability of standards of conduct concerning any hazardous substance (as later Performance Deed of Trust Page 8 of 12
defined), or pertaining to occupational health or industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property), occupational or environmental conditions on, under, or about the Property, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") [42 USC Section 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 ("RCRA") [42 USC Section 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 USC Section 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 USC Section 2601 et seq.]; the Hazardous Materials Transportation Act ("HMTA") [49 USC Section 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USC Section 6901 et seq.] the Clean Air Act [42 USC Section 7401 et seq.]; the Safe Drinking Water Act [42 USC Section 300f et seq.]; the Solid Waste Disposal Act [42 USC Section 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USC Section 101 et seq.] the Emergency Planning and Community Right to Know Act [42 USC Section 11001 et seq.]; the Occupational Safety and Health Act [29 USC Section 655 and 657]; the California Underground Storage of Hazardous Substances Act [California Health & Safety Code Section 25288 et seq.]; the California Hazardous Substances Account Act [California Health & Safety Code Section 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [California Health & Safety Code Section 24249.5 et seq.] the Porter-Cologne Water Quality Act [California Water Code Section 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 occupational health or industrial hygiene, and only to the extent the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use.
Trustor shall promptly give City written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Trustor has actual knowledge. If Trustor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Trustor shall promptly take all necessary remedial actions in accordance with Environmental Law.
7. Nonliability for Negligence, Loss, or Damage; No Joint Venture. Trustor acknowledges, understands and agrees that the relationship between Restaurant Owner and the City is solely that of a grantor and grantee, and that the City does not undertake or assume any responsibility for or duty to Trustor under this Deed of Trust, or Restaurant Owner under the Operating Covenant Agreement, to select, review, inspect, supervise, pass judgment on, or inform Trustor, or Restaurant Owner, as applicable of the quality, adequacy or suitability of the Security or any other matter. The City owes no duty of care to protect Trustor under this Deed of Trust, or Restaurant Owner under the Operating Covenant Agreement, against negligent, faulty, inadequate or defective building or construction or any condition of the Security and Trustor agrees that neither Trustor, or Trustor’s heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Security and will hold City harmless from any liability, loss or damage for these things. Nothing contained herein or in Performance Deed of Trust Page 9 of 12
the Operating Covenant Agreement shall be deemed to create or construed to create a partnership, joint venture or any relationship other than that of a grantor and grantee.
8. Indemnity. Without limitation of and in addition to the indemnification obligations of Restaurant Owner under the Operating Covenant Agreement which are incorporated by reference with the same force and effect as though fully set forth herein, Trustor agrees to defend, indemnify, and hold the City and its elected and appointed officials, officers, employees, and agents (“Indemnitees”) harmless from and against all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorney’s fees that the Indemnitees may incur as a direct or indirect consequence of:
(i) Restaurant Owner’s failure to perform any obligations as and when required by the Operating Covenant Agreement and this Deed of Trust; or (ii) the failure at any time of any of Trustor’s representations or warranties to be true and correct.
9. Acceleration; Remedies. Upon Trustor’s or Restaurant Owner ‘s, as applicable, breach of any covenant, term, or agreement of Restaurant Owner in the Operating Covenant Agreement or this Deed of Trust, including, but not limited to, performance of the Restaurant Owner Operating Covenants and the covenants to pay, when due, any sums secured by this Deed of Trust, the City, prior to acceleration, will mail by express delivery with delivery receipt, notice to Trustor specifying; (1) the breach; (2) the action required to cure such breach; (3) a date, not less than thirty (30) days from the date the notice is received by Trustor as shown on the return receipt, by which such breach is to be cured; and (4) if the breach is curable, that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Security. The notice will also inform Trustor of Trustor’s right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of default or any other defense of Trustor to acceleration and sale. If the breach is not cured on or before the date specified in the notice, the City, at the City’s option, may:
(a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by California law;
(b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and, notwithstanding the continuance in possession of the Security, the City shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including the right to exercise the power of sale;
(c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a Performance Deed of Trust Page 10 of 12
receiver, or specifically enforce any of the covenants hereof, without joinder of Banquet Operator or any other person as parties to any such action; (d) deliver to Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924 et seq., as amended from time to time; or
(e) exercise all other rights and remedies provided herein, in the instruments by which the Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorneys’ fees.
10. Trustor’s Right to Reinstate. Notwithstanding the City’s acceleration of the sums secured by this Deed of Trust, Trustor will have the right to have any proceedings begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Trustor pays City all sums which would be then due under this Deed of Trust if there were no acceleration under this Deed of Trust or the Operating Covenant Agreement; (b) Trustor cures all breaches of any other covenants or agreements of Trustor contained in the Operating Covenant Agreement or this Deed of Trust; (c) Trustor pays all reasonable expenses incurred by City and Trustee in enforcing the covenants and agreements of Restaurant Owner contained in the Operating Covenant Agreement or of Trustor contained in this Deed of Trust, and in enforcing the City’s and Trustee’s remedies, including, but not limited to, reasonable attorney’s fees, including but not limited to any funds expended pursuant to Section 5.3(a)(iv) of the Operating Covenant Agreement; and (d) Trustor takes such action as City may reasonably require to assure that the lien of this Deed of Trust, City’s interest in the Security and Trustor’s obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Trustor, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.
11. Reconveyance. Upon the expiration of the term of the Operating Covenant Agreement, or Termination of the Operating Covenant Agreement pursuant to the terms of that Agreement, if the Trustor owns the Property and is not in violation of any provisions of this Deed of Trust or in an active Event of Default under the Operating Covenant Agreement, the City will request Trustee to reconvey the Security and will surrender this Deed of Trust and the Operating Covenant Agreement to Trustee. Trustee will reconvey the Security without warranty and without charge to the person or persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any.
12. Substitute Trustee. The City, at the City’s option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law.
Performance Deed of Trust Page 11 of 12
13. Request for Notice. City requests that copies of the notice of default and notice of sale be sent to City at the address set forth in Section 14.5.
14. Miscellaneous.
14.1 Forbearance by the City Not a Waiver. Any forbearance by the City in exercising any right or remedy will not be a waiver of the exercise of any such right or remedy.
The procurement of insurance or the payment of taxes or other liens or charges by the City will not be a waiver of the City’s right to require satisfaction of any obligations secured by this Deed of Trust. Trustor’s obligations under this Deed of Trust shall be primary, absolute, continuing, and unconditional, irrespective of and unacted by way of any release of, extension of time for payment or performance by, or any other indulgence granted to Restaurant Owner with respect to the Secured Obligations by operation of law or otherwise.
14.2 Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively.
14.3 Successors and Assigns Bound. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the City and Trustor subject to the provisions of this Deed of Trust.
14.4 Joint and Several Liability. If this Deed of Trust is executed by more than one person as Trustor, the obligations of each shall be joint and several.
14.5 Notices. Except for any notice required under applicable law to be given in another manner, (a) any notice to Trustor provided for in this Deed of Trust will be given by certified mail, return receipt requested, express delivery with delivery receipt or personal delivery with delivery receipt, addressed to Trustor at the address shown in the first paragraph of this Deed of Trust or such other address as Trustor may designate by notice to the City as provided herein, and (b) any notice to the City will be given by certified mail, return receipt requested, express delivery with delivery receipt or personal delivery with delivery receipt, to the City of Santa Fe Springs, 11710 Telegraph Road, Santa Fe Springs, CA 90670, Attn: City Manager, or to such other address as the City may designate by notice to Trustor as provided above. Notice shall be effective as of the date received by City as shown on the return receipt.
14.6 Governing Law and Venue. This Deed of Trust shall be governed by the laws of the State of California, with venue in Los Angeles County.
14.7 Severability. In the event that any provision or clause of this Deed of Trust or the Operating Covenant Agreement conflicts with applicable law, such conflict will not affect other provisions of this Deed of Trust or the Operating Covenant Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Deed of Trust and the Operating Covenant Agreement are declared to be severable.
14.8 Captions. The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof. The captions are not a part of this Deed of Trust, in no way bind, limit, or describe the scope or intent of any Performance Deed of Trust Page 12 of 12
provision, and shall have no effect upon the construction or interpretation of any provision herein
14.9 Nondiscrimination. Trustor covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Trustor or any person claiming under or through Trustor establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Property. The foregoing covenant shall run with the land.
14.10 Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of the Parties each represent and warrant that they have the legal power, right and actual authority to bind the Parties to the terms and conditions hereof and thereof.
[SIGNATURES ON FOLLOWING PAGES]
Performance Deed of Trust Page 13 of 12
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first written above.
SIGNATURES MUST BE NOTARIZED
CITY:
CITY OF SANTA FE SPRINGS
By:_____________________________
René Bobadilla, City Manager
Date:
By:
Maribel Garcia, City Clerk
APPROVED AS TO FORM:
By:_____________________________
Rick Olivarez, City Attorney
Date:
RESTAURANT OWNER:
THE OLIVE BANQUET SS, LLC
By:_____________________________
Sam Sarofeem, Manager
Date:
Performance Deed of Trust Page 14 of 12
EXHIBIT A
LEGAL DESCRIPTION
[TO BE ATTACHED]
CITY OF SANTA FE SPRINGS
11710 Telegraph Road
Santa Fe Springs, CA 90670 (562) 868-0511 santafesprings.gov
THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN, pursuant to California Government Code Section 53083 (AB 562), that the City Council of the City of Santa Fe Springs will hold a public hearing on Tuesday, March 17, 2026 at 6:00 p.m., or as soon thereafter as the matter can be heard, in the City Council Chambers located at 11710 E. Telegraph Road, Santa Fe Springs, California 90670 to consider an Economic Development Subsidy to be provided under an Operating Covenant Agreement between the City of Santa Fe Springs, The Olive Banquet Inc., and The Olive Banquet SS LLC.
The City of Santa Fe Springs (“City”) desires to assist in the economic development of the City’s future downtown by bringing an Olive RestoBar and banquet hall (together, the “Restaurant”) operated by The Olive Banquet Inc. and The Olive Banquet SS LLC. The development and operation of the Restaurant is expected to generate significant economic benefits to the City, including but not limited to, the creation and retention of permanent local jobs, increased sales tax revenues, increased property tax revenues, economic activity benefiting nearby businesses, and increased community amenities. The City has the ability to implement the provisions of AB 562, a statewide economic development passed by Governor Brown in late 2013 for the purpose of allowing local jurisdictions to induce economic development. The City, The Olive Banquet Inc., and The Olive Banquet SS LLC are proposing to enter into an agreement to allocate General Funds to provide financial assistance in the form of an economic development subsidy to The Olive Banquet Inc. and The Olive Banquet SS LLC as described in the Operating Covenant Agreement. Pursuant to Section 53083 of the California Government Code the following information will be posted on the City’s website.
1. The name and address of all corporations, or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
The beneficiary is The Olive Banquet Inc., a California corporation, located at 9288 Lubec Street, Downey, CA 90240 and The Olive Banquet SS LLC, a California limited liability company, located at 9288 Lubec Street, Downey, CA 90240 (collectively, “Restaurant Owner”).
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The economic development subsidy will start when the Operative Covenant Agreement is approved by the City Council, the City receives three (3) originals of the Operative Covenant Agreement, one (1) original of the Notice of Agreement and Declaration of Covenants recorded against the property located at 11900 Telegraph Road in Santa Fe Springs (the “Property”), The Olive Banquet SS LLC enters into an agreement to purchase the Property, and all conditions to the close of escrow on the Property are satisfied. The subsidy will end ten (10) years after Restaurant Owner receives all required governmental permissions and commences Restaurant operations on the Property, and is conditioned on Restaurant Owner’s assurance that the Restaurant will remain in business pursuant to the terms and conditions set forth in the Operating Covenant Agreement.
CITY OF SANTA FE SPRINGS
11710 Telegraph Road
Santa Fe Springs, CA 90670 (562) 868-0511 santafesprings.gov
3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds, or of revenue lost to, the local agency, as a result of the economic development subsidy.
The City would provide Restaurant Owner with assistance in consideration of certain covenants and restrictions detailed in the Operating Covenant Agreement. The subsidy will be in the form of a conditional grant of funds to The Olive Banquet SS LLC in the amount of Three Million One Hundred Thousand Dollars ($3,100,000.00) to assist Restaurant Owner for a period of ten (10) years in the creation and maintenance of forty (40) full-time equivalent jobs and a minimum investment by Restaurant Owner of Six Million Dollars ($6,000,000.00) into the City.
4. A statement of the public purposes for the economic development subsidy.
To facilitate the economic development of the City’s future downtown by providing strategic incentives that will lead to permanent local jobs, increased sales tax revenues, increased property tax revenues and assessed valuation resulting from investment in and activation of the Property, economic activity benefitting nearby businesses, and enhancement of community amenities that support local quality of life and business attraction through the provision of dining and nightlife options for local residents.
5. Projected tax revenue to the local agency as a result of the economic development subsidy.
During the life of the Operating Covenant Agreement, the City is projected to receive approximately One Million Three Hundred Twenty-Seven Thousand Five Hundred Dollars ($1,327,500) in sales tax revenue.
6. Estimated number of jobs created by the economic development subsidy, broken down by fulltime, part-time, and temporary positions.
The City and Restaurant Owner have estimated that the Operating Covenant Agreement will create forty (40) full-time jobs in the City.
All interested persons are invited to attend this hearing and express opinions on the matter above. If this matter is subsequently challenged in court, the challenge may be limited to only those issues raised at the public hearing described in this Notice or in written correspondence delivered to the Office of the City Clerk at, or prior to, the public hearing. For additional information, please contact the Community Development Department at (562) 868-0511 ext. 7550 or
[email protected].
Posted on City website: March 11, 2026
Maribel Garcia, City Clerk
ITEM # 3
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Julio Morales, Director of Finance & Administrative Services SUBJECT: FISCAL YEAR 2025-26 MID-YEAR BUDGET ADJUSTMENTS DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the City Council:
1. Approve staff recommendation of an additional appropriation of $440,000 to the FY 2025-26 General Fund Budget for Public Works emergency repairs and Parks & Recreation one-time costs and special event costs;
2. Approve staff recommendation for personnel adjustments of $77,087 to promote Economic Development, expand Public Safety, and other service enhancements.
3. Approve and adopt the revised salary schedule in Attachment B.
FISCAL IMPACT
The proposed personnel adjustments in the Police and Community Services Department will be offset by position vacancies, reclassifications of existing positions, and reallocation of unused part-time salaries. The net financial impact is $0, additional details are further outlined herein.
The proposed adjustment includes one new position (Economic Development Manager). The focus of this position will be to manage new economic development opportunities and retention of existing businesses. The cost of this position over the final two and a half months of the current fiscal year is $51,453. The projected full-time cost for this position is expected to total $205,813; it is anticipated that a significant portion of this position’s cost will be offset by increased corresponding revenues.
The proposed reclassification of six Firefighters to Firefighter/Paramedic is in support of the City’s expanded Emergency Medical Services (EMS) transport program. The cost of this reclassification for the remainder of the fiscal year is $25,634.
The proposed appropriation for Public Works unanticipated emergency repairs ($225,000) and Parks & Recreation one-time costs and special event costs ($215,000) will increase General Fund expenditures by $440,000. A line item for emergency repairs is expected to be incorporated in next fiscal year’s budget.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Fiscal Year 2025-26 Mid-Year Budget Adjustments
BACKGROUND
Personnel Adjustments:
The proposed adjustments include new positions and reclassifications of existing positions:
New Positions (full-time)
1. Four Public Safety Officer I positions to support Police and Community Services
2. One Code Enforcement Inspector position to support Code Enforcement Services
3. One Management Analyst position to support Police and Community Services
4. One Economic Development Manager position to support Economic Development Reclassifications (full-time)
1. Reclassify six Firefighters to Firefighter/Paramedic
2. Reclassify Director of Community Services to Deputy Director of Police and Community Services
3. Reclassify Community Services Manager to Media & Communications Manager New Positions (part-time)
1. Six Public Safety Aides
2. One Code Enforcement Inspector
3. Two Social Media Aides
Maintenance & Operation Adjustments:
Public Works incurred emergency repair expenses of $225,000 for the NTMA building.
Parks & Recreation one-time costs and special event costs include:
Clarke Estate, Heritage Park strategic planning $31,000 Activity Center bleacher repair $7,000
Movies in the Park screen rental $5,000
Ballfield maintenance unanticipated costs $11,000
Additional special event supply costs $10,000
Staff uniforms with new City branding $15,000
Strategic consultation for enhanced events $30,000
Increased costs for Tree Lighting event $5,000
80s Party $66,000
5K Increased Participation $15,000
June Summer Concerts $15,000
World Cup viewing $5,000
Total $215,000
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Fiscal Year 2025-26 Mid-Year Budget Adjustments
ANALYSIS
The proposed personnel adjustments will provide for added staff support as follows:
New Positions (full-time)
Public Safety Officer I: The full-time Public Safety Officers will assist with the recruitment and retention of Public Safety Officers. These positions will replace four part-time PSO positions.
Code Enforcement Inspector: The additional Code Enforcement Inspector will support the Code Enforcement Division efforts to provide additional enforcement in the business, commercial and industrial areas. This position will be assigned to proactively ensure business license compliance and address related concerns, assist with waste hauler audit/compliance inspections, implement a citywide property maintenance canvassing program and business engagement programs and services.
Management Analyst: The Management Analyst will play a critical role in assisting with Code Enforcement and Public Safety on nuisance abatement, cost recovery programs, and working closely with our City Prosecutors office on case filings and legal/civil proceedings. Position duties will include but are not limited to graffiti abatement/parental responsibility/cost recovery, Notice to Appear and Administrative Citation processing/case filings, and Citywide restitution for damages to City property.
Economic Development Manager: This position will be critical in driving local economic growth and enhancing the City’s sales tax base by attracting new businesses and retaining and expanding existing businesses. The Economic Development Manager will serve as the primary contact and liaison between the City and private businesses, proactively facilitating business growth and development.
Reclassifications (full-time)
Firefighter/Paramedic: These positions will support the City’s expanded, in-house Emergency Medical Services (EMS) transport program.
Media & Communications Manager: This position will lead, develop, direct, coordinate, and administer the City’s Creative Media & Communications program, a comprehensive, proactive, and strategic public information and engagement function for the city, including communications, advertising, marketing, public affairs, crisis communication, and public relations. This position will serve as the City’s senior communications strategist and advisor, responsible for developing and implementing a Citywide communications strategy aligned with the City Council’s priorities and organizational goals, overseeing internal and external communications, managing brand identity, supervising professional staff, and preparing, administering, and overseeing the program budget.
Deputy Director of Police and Community Services: This position will oversee the Division of Community Services including transit, Gus Velasco Neighborhood Center, library, media and CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Fiscal Year 2025-26 Mid-Year Budget Adjustments
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
communications, and volunteer services. This position is distinguished from a manager for additional responsibilities of facilities, transit fleet maintenance, citywide communications, responsible for three City committees, and brand ambassadorship including Rose Parade Float coordination.
New Positions (part-time)
Public Safety Aides: Public Safety Aides will provide support to field patrol operations by providing proactive patrols and security of City parks and facilities. The Aide will patrol on foot and in vehicles to help ensure parks, facilities and community spaces remain safe and welcoming, supporting a positive experience for residents and visitors. This position focuses on visibility, customer service, code of conduct/rule enforcement, and collaboration with City Departments to enhance quality of life for residents and visitors. These positions will replace five part-time park ranger positions.
Code Enforcement Inspector: The part-time Code Enforcement Inspector will provide weekend and evening support to the Code Enforcement Division. The part-time Inspector will work alongside fulltime Inspectors and focus on Citywide enforcement of common code enforcement concerns that arise on weekends and evenings such as illegal vending, unpermitted special events, and follow up on complaints received requiring weekend observation/follow-up.
Social Media Aides: New part-time staff to provide live social media coverage, monitor and post responses to social media inquiries, and assist with managing social media outlets.
ENVIRONMENTAL
N/A
SUMMARY/NEXT STEPS
The proposed FY 2025-26 Mid-Year Budget Adjustment is presented to the City Council for further input and direction. Staff will incorporate any direction and input provided by the City Council.
ATTACHMENT(S):
A. FY 2025-26 Mid-Year Adjustments
B. Revised Salary Schedule
Attachment A
FY 2025-26 Mid-Year Adjustments
Police and Community Services Budget Adjustment FY 25-26 (2.5 months)
FY 26-27
(projected)
Public Safety Officers
4 Full-Time PSO I $ 104,350 $ 417,398
5 Part-Time PSO 62,500 250,000
FY25-26 Part-Time PSO Budget Reduction (134,250) (537,000) Net Increase PSOs $ 32,600 $ 130,398
New Positions (Full-Time):
Code Enforcement Inspector $ 32,223 $ 128,892
Management Analyst 31,525 126,099
New Positions (full-time) $ 63,748 $ 254,991
Part-Time Positions
5 Rangers Reclassified to 6 Public Safety Aides $ 22,805 $ 91,218 Code Enforcement Inspector 13,820 55,282
2 Social Media Aides 25,295 101,181
New Positions (part-time) $ 61,920 $ 247,681
Vacancies (Remove from Budget):
Media & Communications Specialist I $ (27,552) $ (110,209) Media & Communications Specialist I (27,552) (110,209)
Vacancies (remove from budget): $ (55,105) $ (220,418)
Reclassifications (Full-Time):
Reclassify Director of Community Services to Deputy Director $ (19,289) $ (77,154) Reclassify Community Services Manager to Media &
Communications Manager
(2,692) (10,768)
Reclassifications $ (21,981) $ (87,922)
Part-Time Salary Savings
Reduction in PT Community Services Budget to $1.1 million $ (81,183) $ (324,730) Net Total - Police and Community Services $ (0) $ (0)
New Position
Economic Development Manager $ 51,453 $ 205,813
Subtotal $ 51,453 $ 205,813
Reclassifications
Reclassify Firefighter (6) to Firefighter/Paramedic (6) 25,634 102,537 Subtotal $ 25,634 $ 102,537
One-Time Cost Adjustments
Public Works - Emergency Repairs $ 225,000 $ 250,000
Parks & Recreation - 1-Time and Special Event Costs 215,000 - One-Time Adjustments $ 440,000 $ 250,000
Total - Other Adjustments $ 517,087 $ 558,350
Grand Total - Adjustments $ 517,087 $ 558,349
JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 Account Clerk SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Account Clerk Supervisor SFSMCA 19 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 Accountant SFSMCA 22 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 Administrative Assistant SFSEA 9 4,524.0900 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 Administrative Services Officer SFSMCA 40 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 14,754.8900 Aquatic Maintenance Worker SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Assistant City Manager SFSEMA 60 20,424.2242 21,036.9508 21,668.0592 22,318.1008 22,987.6442 23,677.2733 24,387.5917 25,119.2192 25,872.7958 26,648.9800 Assistant Civil Engineer SFSEA 20 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 Assistant Director of Community
Development SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Assistant Director of Finance SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Assistant Director of Police Services SFSMCA 34 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 Assistant Director of Public Works/ City Engineer SFSMCA 45 13,109.5320 13,502.8180 13,907.9030 14,325.1400 14,754.8940 15,197.5410 15,653.4670 16,123.0710 16,606.7630 17,104.9660 Assistant Director of Public Works SFSMCA 40 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 14,754.8900 Assistant Fire Chief SFSFFA 46 13,502.8200 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 Assistant Planner SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 Assistant Superintendent SFSEA 33 9,196.5500 9,472.4400 9,756.6200 10,049.3200 10,350.8000 10,661.3200 10,981.1600 11,310.5900 11,649.9100 11,999.4100 Associate Civil Engineer SFSEA 29 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 10,049.3200 10,350.8000 10,661.3200 Associate Planner SFSEA 25 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 Battalion Chief SFSFFA 42 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 Building Permit Technician SFSEA 7 4,264.3900 4,392.3200 4,524.0900 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 Building Services Manager SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Business Liaison SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Capital Improvements Manager SFSMCA 36 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 City Clerk SFSMCA 44 12,727.7017 13,109.5317 13,502.8183 13,907.9025 14,325.1392 14,754.8942 15,197.5408 15,653.4667 16,123.0717 16,606.7633 Civil Engineering Assistant SFSEA 23 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 Civil Engineering Technician SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 Code Enforcement Inspector SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Attachment B
JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Code Enforcement Manager SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Code Enforcement Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Community Services Manager SFSMCA 34 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 Community Services Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Deputy Director of Community Services SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Deputy City Clerk SFSMCA 21 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 Deputy Fire Marshal SFSFFA 33 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 Director of Community Development SFSEMA 47 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 18,146.6600 Director of Community Services SFSEMA 46 13,502.8200 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 Director of Economic Development SFSEMA 47 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 18,146.6600 Director of Finance SFSEMA 50 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 18,146.6600 18,691.0600 19,251.7900 19,829.3400 Director of Parks and Recreation SFSEMA 46 13,502.8200 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 Director of Police & Community Services SFSEMA 46 13,502.8200 13,907.9000 14,325.1400 14,754.8900 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 Director of Public Works/City Engineer SFSEMA 50 15,197.5400 15,653.4700 16,123.0700 16,606.7600 17,104.9700 17,618.1100 18,146.6600 18,691.0600 19,251.7900 19,829.3400 Economic Development Specialist SFSMCA 26 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6100 9,754.7200 Economic Development Manager SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Electrician SFSEA 17 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 Electrician Assistant SFSEA 12 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 Environmental Program Manager SFSFFA 36 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 Executive Assistant SFSEA 15 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 Facilities Maintenance Specialist SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Facilities Maintenance Supervisor SFSEA 26 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 Finance Analyst SFSMCA 21 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 Finance Manager SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Finance Technician SFSMCA 16 5,562.9800 5,729.8700 5,901.7700 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 Fire Captain SFSFFA 35 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 Fire Chief SFSEMA 52 16,123.0700 16,606.7600 17,104.9700 17,618.1100 18,146.6600 18,691.0600 19,251.7900 19,829.3400 20,424.2200 21,036.9500 JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Fire Engineer SFSFFA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Fire Equipment Mechanic SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 Fire Marshal SFSFFA 36 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 Fire/Environmental Safety Inspector SFSFFA 24 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 Fire/Environmental Safety Specialist SFSFFA 33 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 Firefighter SFSFFA 25 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 Firefighter Paramedic SFSFFA 29 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 Firefighter Paramedic Trainee SFSFFA 27 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 Fleet Maintenance Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Grants Analyst SFSEA 25 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 Grounds Maintenance Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Homelessness Services Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Housing Compliance Inspector SFSFFA 17 5,729.8700 5,901.7700 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 Housing Navigator SFSEA 14 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 Human Resource Manager SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Human Resources Analyst SFSMCA 27 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 Human Resources Specialist SFSMCA 16 5,562.9800 5,729.8700 5,901.7700 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 Human Resources Technician SFSMCA 14 5,243.6400 5,400.9500 5,562.9800 5,729.8700 5,901.7700 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 Information Technology Specialist SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 Lead Account Clerk SFSEA 14 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 Lead Bus Driver SFSEA 14 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 Lead Facilities Maintenance Specialist SFSEA 17 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 Lead Public Safety Officer SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 Lead Water Utility Worker SFSEA 19 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 Librarian I SFSEA 19 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 Librarian II SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 Librarian II Technical Services SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Librarian III SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Library Services Manager SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Management Analyst SFSEA 20 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 Mechanic Assistant SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Mechanic I SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Mechanic II SFSEA 20 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 Media and Communication Manager SFSMCA 34 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 Media and Communication Specialist I SFSEA 14 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 Media and Communication Specialist II SFSEA 17 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 Parks & Recreation Maintenance
Worker SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Parks and Recreation Services Manager SFSMCA 32 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 Parks and Recreation Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Payroll Specialist SFSMCA 15 5,400.9500 5,562.9800 5,729.8700 5,901.7700 6,078.8200 6,261.1900 6,449.0200 6,642.4900 6,841.7700 7,047.0200 Principal Accountant SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Principal Civil Engineer SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Principal Planner SFSMCA 32 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 Procurement Manager SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Procurement Specialist SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Program Coordinator I SFSEA 12 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 Program Coordinator II SFSEA 21 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 Public Information Officer SFSMCA 23 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 Public Safety Manager SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Public Safety Officer I SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Public Safety Officer II SFSEA 15 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 Public Safety Officer Supervisor SFSEA 26 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 Public Safety Program Coordinator SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Public Works Inspector SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Public Works Maintenance Worker SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Public Works Manager SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Public Works Superintendent SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Revenue & Budget Manager SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Risk Analyst SFSMCA 27 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 Senior Account Clerk SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Senior Accountant SFSMCA 27 7,700.4700 7,931.4800 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 Senior Administrative Analyst (PW) SFSEA 28 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 10,049.3200 10,350.8000 Senior Building Permit Technician SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Senior Bus Driver SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Senior Executive Assistant SFSMCA 21 6,449.0200 6,642.4900 6,841.7700 7,047.0200 7,258.4300 7,476.1800 7,700.4700 7,931.4800 8,169.4300 8,414.5100 Senior Facilities Maintenance Specialist SFSEA 15 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 Senior Fire/Environmental Safety
Inspector SFSFFA 29 8,169.4300 8,414.5100 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 Senior Finance Analyst SFSMCA 25 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 Senior Human Resources Analyst SFSMCA 31 8,666.9500 8,926.9500 9,194.7600 9,470.6000 9,754.7200 10,047.3600 10,348.7900 10,659.2500 10,979.0300 11,308.4000 Senior Management Analyst SFSEA 25 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 Senior Planner SFSEA 29 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 10,049.3200 10,350.8000 10,661.3200 Senior Public Works Maintenance
Worker
SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Senior Social Services Case Manager SFSEA 16 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 Senior Water Utility Worker SFSEA 15 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 Social Services Case Manager SFSEA 14 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 Streets Maintenance Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Systems Analyst SFSEA 26 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 Technology Services Manager SFSMCA 39 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 13,907.9000 14,325.1400 Traffic Engineer SFSEA 31 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 10,049.3200 10,350.8000 10,661.3200 10,981.1600 11,310.5900 Traffic Signal and Lighting Assistant SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Traffic Signal and Lighting Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 JOB TITLE GROUP B/U RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Traffic Signal and Lighting Technician I SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Traffic Signal and Lighting Technician II SFSEA 18 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 Transportation Supervisor SFSEA 24 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 Volunteer Coordinator SFSEA 17 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 Water Meter Reader SFSEA 10 4,659.8100 4,799.6100 4,943.6000 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 Water Quality & Backflow Cross
Connection Specialist SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 Water Systems Operator SFSEA 22 6,643.7800 6,843.1000 7,048.3900 7,259.8400 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 Water Utility Manager SFSMCA 37 10,348.7900 10,659.2500 10,979.0300 11,308.4000 11,647.6500 11,997.0800 12,356.9900 12,727.7000 13,109.5300 13,502.8200 Water Utility Supervisor SFSEA 26 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 Water Utility Worker SFSEA 13 5,091.9100 5,244.6600 5,402.0000 5,564.0600 5,730.9800 5,902.9100 6,080.0000 6,262.4000 6,450.2700 6,643.7800 Water Customer Services Supervisor SFSEA 26 7,477.6300 7,701.9600 7,933.0200 8,171.0100 8,416.1400 8,668.6300 8,928.6900 9,196.5500 9,472.4400 9,756.6200 JOB TITLE UNIT RANGE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 Administrative Clerk I Hourly/Part-Time 9 20.27 20.88 21.50 22.15 22.81 23.50 24.20 24.93 25.68 26.45 Administrative Intern Hourly/Part-Time 1 * * 16.97 17.48 18.01 18.55 19.11 19.68 20.27 20.88 Aquatics Aide Hourly/Part-Time 1 * * 16.97 17.48 18.01 18.55 19.11 19.68 20.27 20.88 Bus Driver Hourly/Part-Time 8 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 Code Enforcement Inspector Hourly/Part-Time 15 24.2000 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 29.7700 30.6600 31.5800 Community Resources Aide Hourly/Part-Time 1 * * 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 Community Services Program Leader I Hourly/Part-Time 3 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 Community Services Program Leader II Hourly/Part-Time 5 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 Community Services Program Leader II (PTB) Hourly/Part-Time 5 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 Community Services Program Leader III Hourly/Part-Time 10 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 27.2400 Computer Technician Hourly/Part-Time 9 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 Environmental Intern Hourly/Part-Time 3 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 Fire Department Aide Hourly/Part-Time 2 * 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 Instructor Lifeguard I Hourly/Part-Time 4 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 Instructor Lifeguard II Hourly/Part-Time 7 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 24.9300 Instructor Lifeguard III Hourly/Part-Time 12 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 Lead Recreation Instructor Hourly/Part-Time 16 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 29.7700 30.6600 31.5800 32.5300 Library Information Desk Assistant Hourly/Part-Time 10 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 27.2400 Library Services Aide Hourly/Part-Time 1 * * 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 Office Aide Hourly/Part-Time 1 * * 16.9700 17.4800 18.0100 18.5500 19.1100 19.6800 20.2700 20.8800 Public Safety Aide Hourly/Part-Time 12 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 Public Safety Officer Hourly/Part-Time 16 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 29.7700 30.6600 31.5800 32.5300 Public Works Maintenance Worker Hourly/Part-Time 18.1 26.8835 27.6901 28.5208 29.3764 30.2577 31.1654 32.1003 33.0633 34.0553 35.0769 Recreation Instructor Hourly/Part-Time 6 18.5500 19.1100 19.6800 20.2700 20.8800 21.5000 22.1500 22.8100 23.5000 24.2000 City of Santa Fe Springs
Fiscal Year 2025-2026 Salary Schedule Effective March 3, 2026 Social Media Aide Hourly/Part-Time 12 22.1500 22.8100 23.5000 24.2000 24.9300 25.6800 26.4500 27.2400 28.0600 28.9000 *Effective 1/1/2026 Mininum Wage Increase Salary Adjustment ITEM # 4
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Maribel Garcia, City Clerk
SUBJECT: APPOINTMENT OF AN ALTERNATE TO THE SOUTHEAST WATER COALITION DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the City Council:
1. Appoint an alternate to the Southeast Water Coalition; and
2. Take such additional, related action that may be desirable.
FISCAL IMPACT
N/A
BACKGROUND
At its January 27, 2026 council meeting, the City Council made appointments to external organizations. While a delegate was chosen to serve on the Southeast Water Coalition (“SEWC”) Board of Directors, an alternate was not appointed. Staff is recommending that an appointment be made to fill that vacancy.
The SEWC Board of Directors consists of one representative (normally a Councilmember) from each member city. The Administrative Entity acts as a steering committee consisting of one Public Works type staff member from each member city plus three non-voting (advisory) members from the Central Basin Watermaster, Golden State Water Company, and California Water Service (two private utilities serving several member cities).
The alternate would only need to attend the meetings in the event the delegate was unable to attend.
The SEWC meets on the first Thursday of even numbered months at 7:00 p.m. at the Norwalk Arts & Sports Complex.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Appointment of Alternate to Southeast Water Coalition
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
ANALYSIS
N/A
ENVIRONMENTAL
N/A
DISCUSSION
N/A
SUMMARY/NEXT STEPS
A notification will be sent to the SEWC informing them of the alternate appointment.
ATTACHMENT(S):
None
FOR ITEM NO. 5, PLEASE SEE ITEM NO. 12
ITEM # 6
PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT
TO: Honorable Chair and Board Members
FROM: René Bobadilla, P.E., Executive Director
BY: Julio Morales, Director of Finance
SUBJECT: MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED
THROUGH THE CITY OF SANTA FE SPRINGS PUBLIC FINANCING AUTHORITY (PFA)
DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the Public Financing Authority:
1. Receive and file the report.
FISCAL IMPACT
N/A
BACKGROUND
The Santa Fe Springs Public Financing Authority (PFA) is a City entity that has periodically issued debt for the benefit of the Santa Fe Springs community. The following is a brief status report on the debt instruments currently outstanding that were issued through the PFA.
Consolidated Redevelopment Project 2006-A Tax Allocation Bonds Financing proceeds available for appropriation at 02/28/26 None Outstanding principal at 02/28/26 $7,750,000
Bond Repayment
The former Community Development Commission (CDC) issued a number of tax allocation bonds before it was dissolved by State law effective February 1, 2012 which are administered by the City acting as Successor Agency under the oversight of the appointed Oversight Board. The Successor Agency no longer receives tax increment.
Instead, distributions from the Redevelopment Property Tax Trust Fund (RPTTF) are received based on approved obligations. It is anticipated that sufficient allocations from the RPTTF will continue to be made to the Successor Agency to meet ongoing debt service obligations.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Monthly Report on the Status of Debt Instruments Issued Through the City of Santa Fe Springs Public Financing Authority (PFA)
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
Unspent Bond Proceeds
Under an approved Bond Expenditure Agreement, unspent bond proceeds of the former CDC in the amount of approximately $19 million were transferred to the City in July 2014. The funds are to be spent in accordance with the original bond documents. The unspent proceeds continue to be a source of funding within the City’s capital improvement program (CIP). 2016 Bond Refunding
In July 2016, the Successor Agency issued its 2016 Tax Allocation Refunding Bonds, which paid off several bond issuances of the former CDC. The bonds were originally issued through the Public Financing Authority and included the 2001 Series A, 2002 Series A, 2003 Series A, the current interest portion of the 2006 Series A, and 2006 Series B bond issuances. 2017 Bond Refunding
In December 2017, the Successor Agency issued its 2017 Tax Allocation Refunding Bonds, which paid off the 2007 Tax Allocation Bonds of the former CDC. The 2007 Bonds were originally issued through the Public Financing Authority.
ANALYSIS
The report is presented for informational purposes only.
ENVIRONMENTAL
N/A
SUMMARY/NEXT STEPS
The Successor Agency will continue to request sufficient distributions from the RPTTF to make required bond payments through maturity on September 1, 2028.
ATTACHMENT(S):
None
FOR ITEM NO. 7, PLEASE SEE ITEM NO. 12
ITEM # 8
WATER UTILITY AUTHORITY AGENDA STAFF REPORT
TO: Honorable Chair and Board Members
FROM: René Bobadilla, P.E., Executive Director
BY: Julio Morales, Director of Finance
SUBJECT: MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED
THROUGH THE CITY OF SANTA FE SPRINGS WATER UTILITY AUTHORITY (WUA)
DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the Water Utility Authority:
1. Receive and file the report.
FISCAL IMPACT
N/A
BACKGROUND
The Santa Fe Springs Public Financing Authority (WUA) is a city entity that has issued debt for the benefit of the Santa Fe Springs community. The following is a brief status report on the debt instruments currently outstanding that were issued through the WUA.
Water Revenue Bonds 2013
Financing proceeds available for appropriation at 02/28/2026 None Outstanding principal on 02/28/2026 $6,890,000
Water Revenue Bonds 2018
Financing proceeds available for appropriation at 02/28/2026 None Outstanding principal on 02/28/2026 $175,000
In May 2013 the Water Utility Authority issued the 2013 Water Revenue Bonds in the amount of $6,890,000. The bonds refunded the existing 2003 Water Revenue Bonds (issued through the Public Financing Authority) and provided additional funds for water improvement projects in the amount of $2,134,339. The funds were restricted for use on water system improvements. In August 2013, the Water Utility Authority Board appropriated the proceeds for the Equipping Water Well No. 12 Project and all proceeds were since used on this project.
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Monthly Report on the Status of Debt Instruments Issued Through the City of Santa Fe Springs Water Utility Authority (WUA)
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
In January 2018, the Water Utility Authority issued the 2018 Water Revenue Bonds in the amount of $1,800,000. The bonds refunded the existing 2005 Water Revenue Bonds (issued through the Public Financing Authority). No additional funds were raised through the issuance of the 2018 Water Revenue Bonds.
The WUA was formed in June of 2009. Water revenue bonds issued prior to this date were issued through the City of Santa Fe Springs Public Financing Authority.
ANALYSIS
The report is presented for informational purposes only.
ENVIRONMENTAL
N/A
SUMMARY/NEXT STEPS
The WUA budget includes sufficient appropriations, and adequate revenues are expected to be collected to meet the debt service obligations associated with the 2013 and 2018 Water Revenue Bonds.
ATTACHMENT(S):
None
FOR ITEM NO. 9, PLEASE SEE ITEM NO. 12
FOR ITEM NO. 10, PLEASE SEE ITEM NO. 12
ITEM # 11
SUCCESSOR AGENCY AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Cuong Nguyen, Director of Community Development
SUBJECT: APPROVAL OF NON-EXCLUSIVE LICENSE AGREEMENT WITH VEHICLE PARKING
UNLIMITED, LLC FOR USE OF MC&C IV FOR COMMERCIAL VEHICLE PARKING AND STORAGE.
DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the Successor Agency:
1. Determine that the proposed non-exclusive license agreement with Vehicle Parking Unlimited, LLC (VPU) is exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines Section 15301 (Minor Alterations to Land); and
2. Adopt Resolution No.10003, approving a month-to-month license agreement between the Successor Agency to the Community Development Commission/Redevelopment Agency of the City of Santa Fe Springs (Successor Agency) and VPU for the use of MC&C IV site located at 12381 Romandel Avenue; and
3. Take such additional, related action that may be desirable.
FISCAL IMPACT
Under the terms of the license, VPU will pay monthly rent equal to 25% of its gross receipts from subleasing parking and storage space. The license includes a minimum sublease rate of $250–$350 per vehicle per month and requires a $25,000 security deposit. VPU is also responsible for all associated taxes, utilities, and site maintenance costs.
BACKGROUND
The property, known as MC&C Site IV (Block 8), is owned by the Successor Agency and is located at 12381 Romandel Avenue (APNs: 8011-002-901, 8011-002-902, 8011-002-903, 8011-003-955, 8011- 003-956, 8011-003-957, 8011-003-958, 8011-003-959, 8011-003-960, 8011-003-961, 8011-003-962, 8011-003-963, 8011-003-964, 8011-003-965, 8011-003-966, 8011-003-967, 8011-003-968, 8011-003- 969, 8011-003-970, 8011-003-971, 8011-003-972, 8011-003-973, 8011-003-974, 8011-003-975, 8011- 003-976, 8011-003-977, 8011-003-978, and 8011-003-979). It comprises approximately 8.4 acres, partially encumbered by oil wells that would need to be abandoned prior to redevelopment.
SUCCESSOR AGENCY AGENDA REPORT – MEETING OF MARCH 17, 2026 Approval of Non-Exclusive License Agreement with Vehicle Parking Unlimited, LLC
To activate interim use and generate revenue, the Successor Agency negotiated a non-exclusive license with VPU to allow temporary parking and storage of large commercial vehicles and wheeled equipment.
ANALYSIS
The proposed non-exclusive license offers a practical and financially beneficial use of a transitional redevelopment site. The interim operation by VPU meets several city and agency goals:
• Revenue Generation: The non-exclusive license establishes a revenue stream during a period when the site would otherwise remain underutilized.
• Cost-Sharing: All infrastructure upgrades, maintenance, and operational expenses are borne by the tenant, reducing public sector costs.
• Site Activation: The secured, screened, and monitored commercial vehicle storage use enhances property control and deters vandalism or illegal dumping. • Redevelopment Flexibility: The non-exclusive license’s month-to-month structure with a maximum term until April 30, 2027, ensures that the property can be reclaimed as needed for redevelopment.
This agreement reflects a proactive asset management approach while oil well abandonment continues, facilitating future investment readiness.
ENVIRONMENTAL
The lease agreement qualifies as a Class 4 (Minor Alterations to Land) categorical exemption under the California Environmental Quality Act (CEQA), as the proposed use does not require significant grading or new construction, and involves negligible alterations to the condition of the land on the site. Therefore, no further action is required pursuant to CEQA.
DISCUSSION
The non-exclusive license is structured as a periodic month-to-month tenancy with a maximum term until April 30, 2027. Key terms of the lease include:
• Permitted Use: Temporary commercial vehicle and equipment parking and storage. • Monthly Rent: 25% of gross receipts from subleases.
• Minimum Sublease Rates: $250/month for a 20–25 ft stall; $350/month for a 35–40 ft stall. • Security Deposit: $25,000 due at lease commencement.
• Tenant Responsibilities: Site security, fencing, improvements (e.g., surface prep, video monitoring), ongoing maintenance, and utilities.
The lease allows the Successor Agency to commence oil well abandonment operations on site and reserves rights for inspection and access. VPU will make necessary improvements to secure and prepare the site, all at its own expense. VPU will also be required to submit financial and operations reports, undergo annual audits, and obtain required insurance.
SUCCESSOR AGENCY AGENDA REPORT – MEETING OF MARCH 17, 2026 Approval of Non-Exclusive License Agreement with Vehicle Parking Unlimited, LLC
ITEM STATUS:
APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
SUMMARY/NEXT STEPS
The non-exclusive license provides interim use for an underutilized site while maintaining the Successor Agency’s long-term redevelopment goals. Upon Successor Agency approval, the nonexclusive license agreement will be executed, and VPU will begin site improvements and operations per the lease terms.
ATTACHMENT(S):
A. Resolution No. 10003
a. Non-Exclusive License Agreement between Successor Agency and Vehicle Parking Unlimited, LLC (MC&C IV)
i. Exhibit A – Legal Description
ii. Exhibit B – Prohibited Access Area
iii. Exhibit C – Sublicensee Application/Agreement
RESOLUTION NO. 10003
A RESOLUTION OF THE SUCCESSOR AGENCY OF THE COMMUNITY
DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE
CITY OF SANTA FE SPRINGS APPROVING A NON-EXCLUSIVE
LICENSE AGREEMENT WITH VEHICLE PARKING UNLIMITED, LLC
FOR THE TEMPORARY USE OF THE PROPERTY AT 12381
ROMANDEL AVENUE (MC&C IV) FOR COMMERCIAL VEHICLE
PARKING AND STORAGE
WHEREAS, the Successor Agency to the Community Development Commission/Redevelopment Agency of the City of Santa Fe Springs ("Successor Agency") is the owner of that certain real property located at 12381 Romandel Avenue, Santa Fe Springs, California, commonly known as MC&C Site IV (Block 8), and identified by Assessor Parcel Numbers 8011-002-901, 8011-002-902, 8011-002-903, 8011-003- 955, 8011-003-956, 8011-003-957, 8011-003-958, 8011-003-959, 8011-003-960, 8011- 003-961, 8011-003-962, 8011-003-963, 8011-003-964, 8011-003-965, 8011-003-966, 8011-003-967, 8011-003-968, 8011-003-969, 8011-003-970, 8011-003-971, 8011-003- 972, 8011-003-973, 8011-003-974, 8011-003-975, 8011-003-976, 8011-003-977, 8011- 003-978, and 8011-003-979 (“Property”); and
WHEREAS, Vehicle Parking Unlimited, LLC ("Licensee") desires to lease the usable portions of the Property for the temporary parking and storage of commercial vehicles and wheeled equipment (“Non-Exclusive License Agreement”), herein attached as Exhibit “A”; and
WHEREAS, the Successor Agency and Tenant have negotiated the terms of the Non-Exclusive License Agreement that includes a month-to-month tenancy not to exceed April 30, 2027, and requires the Tenant to pay monthly rent equal to 25% of gross receipts, post a $25,000 security deposit, and bear all costs related to improvements, maintenance, insurance, and operations; and
WHEREAS, the Non-Exclusive Agreement is not subject to the requirements of the California Surplus Lands Act (Government Code § 54221(d)(2)(A)-(B)) as it is for a term of less than fifteen (15) years, and no development or demolition will occur on the Property; and
WHEREAS, the proposed Non-Exclusive License Agreement is categorically exempt from the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) pursuant to CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Section 15304 (Class 4 – Minor Alterations to Land), therefore, no further action is required pursuant to CEQA; and
WHEREAS, the Successor Agency finds that the Non-Exclusive License Agreement serves the public interest by generating interim revenue, providing active use and security for the site, and preserving long-term redevelopment flexibility.
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF
SANTA FE SPRINGS HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated in full, herein.
SECTION 2. The Successor Agency hereby approves the Non-Exclusive License Agreement by and between the Successor Agency and Vehicle Parking Unlimited, LLC for the temporary use of the Property located at 12381 Romandel Avenue, Santa Fe Springs, California.
SECTION 3. The Executive Director is hereby authorized and directed to execute the Non-Exclusive License Agreement, in substantially the form presented, and to take any and all actions necessary to carry out the purposes of this Resolution.
SECTION 4. The Successor Agency hereby determines that the approval of the Non-Exclusive License Agreement is exempt from the requirements of CEQA under CEQA Guidelines Section 15304, therefore no further action is required pursuant to CEQA.
SECTION 5. If any section, subsection, phrase, or clause of this Resolution is for any reason found to be invalid, such section, subsection, phrase, or clause shall be severed from, and shall not affect the validity of, all remaining portions of this Resolution that can be given effect without the severed portion.
SECTION 6. This Resolution shall become effective immediately upon its adoption.
SECTION 7. The City Manager, or designee, is hereby authorized and directed to take all actions necessary or advisable to give effect to the transactions contemplated by this Resolution.
SECTION 8. The City Clerk of the City of Santa Fe Springs shall certify as to the adoption of this Resolution.
ADOPTED and APPROVED this 17th day of March 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Chair, Successor Agency to the
Community Development Commission of
the City of Santa Fe Springs
ATTEST:
___________________________
Secretary
Attachments:
a. Non-Exclusive License Agreement between Successor Agency and Vehicle Parking Unlimited, LLC (MC&C IV)
i. Exhibit A – Legal Description
ii. Exhibit B – Prohibited Access Area
iii. Exhibit C – Sublicensee Application/Agreement
1 2026
NON-EXCLUSIVE LICENSE AGREEMENT
(MC&C Site IV)
THIS NON-EXCLUSIVE LICENSE AGREEMENT (hereinafter, “Agreement”) is made and entered into this ___________ day of __________________ 2026 (hereinafter, the “Effective Date”), by and between the SUCCESSOR AGENCY TO THE COMMUNITY
DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY OF THE CITY OF SANTA FE SPRINGS, a California municipal corporation (hereinafter, “SUCCESSOR AGENCY”) and VEHICLE PARKING UNLIMITED, LLC, a California limited liability company (hereinafter, “LICENSEE”). For the purposes of this Agreement, SUCCESSOR AGENCY and LICENSEE may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to SUCCESSOR AGENCY or LICENSEE interchangeably, as appropriate.
RECITALS
WHEREAS, SUCCESSOR AGENCY is the owner of real property commonly identified as “Block 8” located at 12381 Romandel Avenue, Santa Fe Springs, California 90670 (APNs: 8011-002-901, 8011-002-902, 8011-002-903, 8011-003- 955, 8011-003-956, 8011-003-957, 8011-003-958, 8011-003-959, 8011-003-960, 8011-003-961, 8011-003-962, 8011-003-963, 8011-003-964, 8011-003-965, 8011- 003-966, 8011-003-967, 8011-003-968, 8011-003-969, 8011-003-970, 8011-003- 971, 8011-003-972, 8011-003-973, 8011-003-974, 8011-003-975, 8011-003-976, 8011-003-977, 8011-003-978, and 8011-003-979) (“MC&C IV”), as more particularly described in the Legal Description attached to this Agreement as Exhibit “A” (hereinafter, the “Property”); and
WHEREAS, the Property consists of approximately 8.4 acres of land partially occupied by oil wells operated by Bridgeland Resources, LLC (“BRIDGELAND”); and WHEREAS, BRIDGELAND operates the wells in accordance with several agreements, including the Unit Agreement dated April 1, 1969 (“Unit Agreement”) and various oil and gas leases, or through the ownership of the mineral rights of the Property, in which BRIDGELAND is the “Unit Operator”, lessee, or mineral owner; and WHEREAS, through such oil and gas lease or mineral ownership, and as “Unit Operator” under the Unit Agreement, BRIDGELAND has certain surface access and subsurface mineral rights over the Property to operate the wells therein; and WHEREAS, BRIDGELAND and SUCCESSOR AGENCY are in the process of negotiating the plugging and abandonment of the oil and gas wells and the rights 2 associated with the Unit Agreement to prepare the Property for disposition; and WHEREAS, LICENSEE desires to utilize certain portions of the Property to operate its business providing temporary parking and storage of commercial vehicles and wheeled equipment to sublicensees for daily, weekly, and monthly fees, subject to the terms and conditions set forth in this Agreement (the “Permitted Use”); and WHEREAS, the Parties acknowledge that LICENSEE will be strictly prohibited from entering and otherwise utilizing the portion of the Property depicted in the figure attached hereto as Exhibit “B” (the “Prohibited Access Area”) during the Term (as defined hereinafter) of this Agreement; and
WHEREAS, California’s Surplus Lands Act (Gov. Code § 54221 et seq.) (“Surplus Lands Act”) provides under Government Code Section 54221(d)(2)(A), that the entering of a lease for a term of fifteen (15) years or less, inclusive of any extension or renewal options, is not considered a disposition for purposes of the Surplus Lands Act and is therefore not subject to its requirements; and
WHEREAS, this Agreement grants LICENSEE a non-exclusive license to use the Property for the Permitted Use, subject to the terms and conditions set forth herein, and therefore is not a disposition of land by sale or lease subject to the requirements of the Surplus Lands Act; and
WHEREAS, on a separate and independent basis, in the event this Agreement is determined to be the equivalent of a lease under the Surplus Lands Act, the Agreement is not subject to the requirements of the Surplus Lands Act pursuant to Government Code Section 54221(d)(2)(A) because the Parties agree the term of this Agreement will not exceed one (1) year from the Effective Date; and
WHEREAS, at its Regular Meeting of , 2026, the
SUCCESSOR AGENCY adopted Resolution No. _______ approving the execution of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, SUCCESSOR AGENCY and LICENSEE agree as follows:
I.
INCORPORATION OF RECITALS
1.1. Recitals. The Recitals above, and the terms defined therein, are true and correct and incorporated into the body of this Agreement by this reference.
II.
DEFINITIONS
2.1. Defined Terms. As used herein, the following terms and phrases shall have the meanings indicated:
(a) “BRIDGELAND” means Bridgeland Resources, LLC.
3 (b) “Complaining Party” has the meaning set forth in Section 13.1 of this Agreement.
(c) “Defaulting Party” has the meaning set forth in Section 13.1 of this Agreement.
(d) “Effective Date” has the meaning set forth in the Preamble, above. (e) “Licensed Premises” has the meaning set forth in Section 3.1 of this Agreement.
(f) “LICENSEE” means Vehicle Parking Unlimited, LLC.
(g) “Monthly Gross Receipts Report” has the meaning set forth in Section 5.2 of this Agreement.
(h) “Monthly License Fee” has the meaning set forth in Section 5.1 of this Agreement.
(i) “Notice of Default” has the meaning set forth in Section 13.1 of this Agreement.
(j) “Permitted Use” has the meaning set forth in the Recitals, above. (k) “Prohibited Access Area” has the meaning set forth in the Recitals, above. (l) “Prohibited Materials” has the meaning set forth in Section 6.3(c) of this Agreement.
(m)“Property” has the meaning set forth in the Recitals, above. (n) “Security Deposit” has the meaning set forth in Section 5.3 of this Agreement.
(o) “Sublicensee” has the meaning set forth in Section 12.1 of this Agreement. (p) “SUCCESSOR AGENCY” means the Successor Agency To The Community Development Commission/Redevelopment Agency of The City of Santa Fe Springs.
(q) “Term” has the meaning set forth in Section 4.1 of this Agreement. (r) “Term Expiration Date” has the meaning set forth in Section 4.2 of this Agreement.
4 III.
GRANT OF LICENSE
3.1. Grant of License to Use Property. SUCCESSOR AGENCY, in consideration of the Monthly License Fees to be paid and the covenants and agreements to be performed and observed by LICENSEE under this Agreement, does hereby grant to LICENSEE a non-exclusive license to use the Property, excluding the Prohibited Access Area, for the Permitted Use (the “Licensed Premises”).
IV.
TERM
4.1. Agreement Term. The Agreement shall have a periodic tenancy commencing as of the Effective Date and continue on a month-to-month basis until SUCCESSOR AGENCY or LICENSEE terminates the Agreement by providing the other Party and BRIDGELAND with a written 30-day notice of termination (the “Term”).
BRIDGELAND, as an express third-party beneficiary under this Agreement, is hereby granted the right to terminate this Agreement with the prior written consent of SUCCESSOR AGENCY, which shall not be unreasonably withheld, upon providing a written 60-day notice of its request for termination to SUCCESSOR AGENCY and LICENSEE, and including in such request evidence that LICENSEE’s use of the Property pursuant to the terms and conditions of this Agreement unreasonably interferes with BRIDGELAND’s oil and gas operations on the Property.
4.2. Expiration of Agreement Term. In no event shall the Term of this Agreement extend beyond April 30, 2027 (the “Term Expiration Date”).
V.
MONTHLY LICENSE FEE
5.1. Payment of Monthly License Fee. On or before the fifth (5th) calendar day of each month during the Term of this Agreement, LICENSEE shall pay a Monthly License Fee to SUCCESSOR AGENCY in the amount of twenty-five percent (25%) of the gross receipts LICENSEE received the previous month from the Permitted Use (hereinafter, the “Monthly License Fee”). In no event shall LICENSEE sublicense any portion of the Licensed Premises pursuant to Article XII of this Agreement for an amount equivalent to less than Two-Hundred and Fifty Dollars ($250.00) per month, per vehicle for a twenty to twenty-five foot (20’-25’) parking stall, or Three-Hundred and Fifty Dollars ($350.00) per month, per vehicle for a thirty-five to forty foot (35’-40’) parking stall.
5.2. Monthly Gross Receipts Report. In addition to payment of Monthly License Fees, on or before the fifth (5th) calendar day of each month during the Term of this Agreement, LICENSEE shall submit to the SUCCESSOR AGENCY a report detailing LICENSEE’s gross receipts from the previous month (the “Monthly Gross Receipts Report”), including all payments LICENSEE received per parking stall, such that SUCCESSOR AGENCY may confirm the accuracy of Monthly License Fees received from LICENSEE for each month of the Term.
5.3. Security Deposit. On or before the Effective Date of this Agreement, 5 LICENSEE shall deposit with the SUCCESSOR AGENCY the sum of Twenty-Five Thousand Dollars ($25,000) as security for LICENSEE’s full and faithful performance of all terms of this Agreement (the “Security Deposit”). Upon any breach of LICENSEE’s obligations under this Agreement, SUCCESSOR AGENCY may apply all or part of the Security Deposit as compensation for such breach, including but not limited to reimbursement for the cost of any repairs SUCCESSOR AGENCY makes on LICENSEE’s behalf pursuant to the terms of this Agreement. SUCCESSOR AGENCY shall return any unapplied balance of the Security Deposit to LICENSEE on or before thirty (30) days after the termination or expiration of this Agreement, provided that LICENSEE is not in default of this Agreement and has otherwise fully and faithfully carried out all terms of this Agreement.
5.4. Payment of Taxes and Fees. In addition to payment of Monthly License Fees and the Security Deposit to SUCCESSOR AGENCY, LICENSEE will be responsible to pay all taxes and fees arising out of the Permitted Use of the Property.
5.5. Waiver. SUCCESSOR AGENCY’s acceptance of Monthly License Fees from LICENSEE in an amount less than the full amount owed pursuant to a true and correct Monthly Gross Receipts Report, shall not be deemed a waiver by SUCCESSOR AGENCY for the full amount or in any way defeat or affect the rights and remedies of SUCCESSOR AGENCY to pursue the full amount under this Agreement.
VI.
AUTHORIZED USE
6.1. Uses. The Licensed Premises shall be non-exclusively used and occupied by LICENSEE for the Permitted Use during the term of the Agreement, subject to LICENSEE obtaining all entitlements, permits, and other approvals required for the Permitted Use contemplated under this Agreement. Notwithstanding the above, LICENSEE acknowledges and agrees that it shall be strictly prohibited from entering, using, or occupying the Prohibited Access Area for any purpose whatsoever, and that LICENSEE’s access to the Licensed Premises may be impeded in the event that SUCCESSOR AGENCY, BRIDGELAND, or its employees, contractors, or agents need to access the Licensed Premises to conduct investigations or other activities to prepare the Property for disposition. SUCCESSOR AGENCY or BRIDGELAND, as the case may be, shall provide LICENSEE with 72 hours’ written notice of the commencement of any activities that will require LICENSEE to cease its utilization and access to the Licensed Premises. Upon receipt of such notice, LICENSEE shall provide notice to any of its sublicensees to vacate the Licensed Premises until such activities have ceased. Upon the conclusion of such activities, SUCCESSOR AGENCY or BRIDGELAND shall provide all other Parties with written notice indicating the date that LICENSEE may resume its utilization of the Licensed Premises for the Permitted Use and/or the date that LICENSEE’s access to the Licensed Premises will no longer be impeded. Notices provided in accordance with this Section 6.1 shall be provided pursuant to Section 14.19 of this Agreement.
6.2. Suitability. LICENSEE acknowledges that neither SUCCESSOR AGENCY nor any agent of SUCCESSOR AGENCY has made any representation or warranty with respect to the Licensed Premises concerning its suitability for the conduct of LICENSEE’s 6 contemplated activities or operations, nor has SUCCESSOR AGENCY agreed to undertake any modification, alteration or improvement to the Licensed Premises except as SUCCESSOR AGENCY in its sole discretion may wish to undertake prior to granting LICENSEE possession of the Licensed Premises. There is a history of oil and gas operations on the Property, and the Property currently contains 16 oil and gas wells, consisting of four previously plugged and abandoned wells and 12 active or idle wells. A Phase I Environmental Site Assessment (“Phase I”) for the Property identified recognized environmental conditions (“RECs”), including, without limitation, the impacts of the historical oil field activities on the Property, particularly historical evidence of open-pit sumps in which crude oil was stored, and impacts to soil, soil vapor, and groundwater resulting from activities on neighboring properties. A Phase II Environmental Site Assessment (Phase II) for the Property found elevated concentrations of benzene present in soil and soil vapor at the southern and eastern portion of the Property. The Phase I and Phase II assessments did not define the extent of the benzene impacts or other contamination on the Property. Additional investigations and other activities will be conducted on the Property during the Term of this Agreement to determine the extent of contamination on the Property, define the scope of the work needed to remediate the environmental conditions on the Property, and prepare the Property for future disposition.
The taking of non-exclusive possession of the Licensed Premises by LICENSEE shall conclusively establish that the Licensed Premises and the Property were both at such time in satisfactory condition. LICENSEE acknowledges and agrees that it shall take nonexclusive possession of the Licensed Premises “as is” and subject to exclusion of use of the Prohibited Access Area and impeded access to the Licensed Premises during activities described in Section 6.1 of this Agreement, above. LICENSEE further acknowledges and agrees that hazardous materials, including but not limited to pollutants, wastes, radioactive materials, and toxic substances, may exist on the Licensed Premises upon LICENSEE’s taking of non-exclusive possession of the Licensed Premises, and LICENSEE shall waive all claims for injury or losses arising out of the existence of hazardous materials on the Licensed Premises against SUCCESSOR AGENCY and/or BRIDGELAND pursuant to Article 9 of this Agreement.
6.3. Uses Prohibited.
(a) LICENSEE shall not do or permit anything to be done in or about the Licensed Premises nor bring or keep anything therein which will increase or otherwise affect the rate of any insurance required under this Agreement, upon the Licensed Premises, or upon any of its contents (unless LICENSEE shall pay any such increased premium as a result of such use or acts), or cause a cancellation of any insurance policy covering said Licensed Premises or any part thereof or any of its contents, nor shall LICENSEE sell or permit to be kept, used or sold in or about said Licensed Premises any articles which may be prohibited by a standard form policy of fire insurance. (b) LICENSEE’s use of the Licensed Premises is non-exclusive and LICENSEE shall not do or permit anything to be done in or about the Licensed Premises which will in any way obstruct or interfere with the rights of other licensees, tenants, or occupants of the Licensed Premises, including but not limited to BRIDGELAND and/or third-parties occupying or using the Licensed Premises for the purposes of performing investigations 7 or other activities, or injure or annoy them or use or allow the Licensed Premises to be used for any unlawful purpose, any purpose which unduly interferes with the use and enjoyment of the Property by other licensees, tenants, or occupants, or any purpose which exceeds the scope of use set forth in Section 6.1. LICENSEE shall not enter, use or occupy the Prohibited Access Area for any reason whatsoever. LICENSEE acknowledges and agrees that ingress and egress to the Licensed Premises from Telegraph Road is prohibited by LICENSEE, and any Sublicensees, during the Term of this Agreement and shall use Romandel Avenue to access the Property and Licensed Premises.
(c) LICENSEE shall not commit or suffer to be committed any waste in or upon the Licensed Premises. LICENSEE, and any Sublicenses, shall be prohibited from storing, depositing, and/or disposing of tires, oil, gasoline, diesel fuel, antifreeze, hazardous substances, petroleum products, automotive or industrial fluids, empty fluid containers, paint, solvents, vehicle parts, mattresses, home remodeling or construction debris, refuse, garbage, or any other waste or trash of any kind (collectively, “Prohibited Materials”) in or upon the Property and/or Licensed Premises. LICENSEE shall immediately remove, at LICENSEE’s sole cost and expense, any such items brought onto or deposited upon the Licensed Premises by LICENSEE or LICENSEE’s agents, employees, contractors, invitees, or any other person acting under or through LICENSEE. “Immediately” for purposes of this Section shall mean within twenty-four (24) hours of placement or, if earlier, upon written or verbal notice from CITY. LICENSEE shall be responsible for compliance with all applicable federal, state, and local laws regarding the handling, storage, transportation, and disposal of waste and hazardous materials and shall indemnify, defend, and hold harmless CITY from and against any claims, damages, penalties, or liabilities arising out of LICENSEE’S failure to comply with this provision.
(d) LICENSEE shall not use the Licensed Premises or permit anything to be done in or about the Licensed Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation or requirement of any duly constituted public authorities now in force or which may thereafter be enacted or promulgated. LICENSEE shall at its sole cost and expense promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar body now or hereafter constituted relating to or affecting the condition, use or occupancy of the Licensed Premises, excluding structural changes not relating to or affecting the condition, use or occupancy of the Licensed Premises, or not related or afforded by LICENSEE’s improvements or acts. The judgment of any court of competent jurisdiction or the admission of LICENSEE in any action against LICENSEE, whether SUCCESSOR AGENCY be a party thereto or not, that LICENSEE has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of the fact as between SUCCESSOR AGENCY and LICENSEE.
8 (e) Notwithstanding Section 6.4(a) of this Agreement, below, SUCCESSOR AGENCY reserves the right to approve or deny in its sole and absolute discretion the installation of any and all trade fixtures upon the Licensed Premises by or on behalf of LICENSEE, including but not limited to trade fixtures which may necessitate the alteration or modification of the Licensed Premises or which may cause damage to the Licensed Premises upon installation or upon removal.
6.4. Improvements.
(a) Permitted LICENSEE Improvements. LICENSEE has completed, or is in the process of completing, the following permitted improvements to the Licensed Premises. LICENSEE shall complete all the following improvements before commencing use of the Licensed Premises for the Permitted Use, at the sole cost and expense of LICENSEE:
i. Secure the perimeter of the Licensed Premises with new or repaired eight foot (8’) fencing, including fencing along Telegraph Road and Romandel Avenue that is ninety-five percent (95%) obscured to screen trucks and equipment from public view;
ii. Install eight by thirty-foot (8’ x 30’) access-controlled security gates with twenty-four (24) hour video monitoring;
iii. Install and maintain wireless internet services for remote access to security cameras and access control systems;
iv. Remove all vegetation overgrowth within the yard areas and on the street frontages with continued maintenance during the term of this Agreement;
v. Prepare all yard surfaces as required for the driving, parking, and storage of commercial trucks and other wheeled equipment; vi. Install protection bollards and/or railings around existing oil field equipment and infrastructure as necessary;
vii. Construct parking stall markings and signage as needed; and viii. Install solar power and storage systems to power operations. (b) Additional LICENSEE Improvements. Notwithstanding the improvements expressly permitted in the foregoing Section 6.4(a), LICENSEE shall not and may not undertake any improvements to the Licensed Premises without the express written consent of SUCCESSOR AGENCY which consent may be granted, denied or conditionally granted in SUCCESSOR AGENCY’s sole and absolute discretion. All persons or entities making improvements to the Licensed Premises on LICENSEE’s behalf must first be approved by 9 SUCCESSOR AGENCY in its sole and absolute discretion and must provide SUCCESSOR AGENCY with such documentation as
SUCCESSOR AGENCY, in its sole and absolute discretion, may request, establishing that the person or entity is duly licensed and qualified to perform such improvements.
VII.
MAINTENANCE AND REPAIRS; ALTERATIONS AND ADDITIONS
7.1. Maintenance and Repairs.
(a) SUCCESSOR AGENCY Obligations.
i. SUCCESSOR AGENCY shall be under no obligation to undertake such repairs or construct such improvements to the Licensed Premises as SUCCESSOR AGENCY deems unreasonable,
unnecessary, or economically infeasible in SUCCESSOR
AGENCY’s sole and absolute discretion.
(b) LICENSEE Obligations.
i. LICENSEE, at LICENSEE’s sole cost and expense, shall maintain the Licensed Premises and any and all trade fixtures utilized by LICENSEE in a clean, operable, and good condition and repair, including but not limited to vegetation control and trash removal.
LICENSEE expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford LICENSEE the right to make repairs at SUCCESSOR AGENCY’s expense.
ii. Notwithstanding any other provisions of this Agreement to the contrary, LICENSEE shall obtain prior written approval from SUCCESSOR AGENCY for all LICENSEE improvements including but not limited to painting, installation of flooring, ceilings, partition walls, doors including hardware, and installation or replacement of plumbing, mechanical, or electrical fixtures. SUCCESSOR AGENCY may approve said items in its sole and absolute discretion. Such written approval shall be issued by the Executive Director or his designee.
iii. LICENSEE agrees to repair, at its own expense, any damage to the Licensed Premises caused by or in connection with the removal of any articles of personal property, business or trade fixtures, machinery, equipment, cabinetwork, furniture, moveable partitions or permanent improvements or additions to SUCCESSOR AGENCY’s reasonable satisfaction, all at LICENSEE’s sole cost and expense.
LICENSEE shall indemnify the SUCCESSOR AGENCY against any loss or liability resulting from delay by LICENSEE in so surrendering the Licensed Premises, including without limitation any claims made by any succeeding LICENSEE founded on such delay.
10 iv. LICENSEE shall be solely and exclusively responsible for the payment of all electrical, water, gas, telephone, internet and cable television services and any other utilities provided to the Licensed Premises.
v. LICENSEE shall contract with third parties for security, sanitation, and trash collection services, at LICENSEE’s sole cost and expense. vi. LICENSEE shall comply with standards of health, sanitation, fire, housing and safety as required by law.
VIII.
ENTRY UPON LICENSED PREMISES BY SUCCESSOR AGENCY AND
BRIDGELAND
8.1. Oil and Gas Well Abandonment; Investigations and Other Activities to Prepare the Property for Disposition. LICENSEE acknowledges that its use of the entirety of the Licensed Premises may be limited by BRIDGELAND’s and SUCCESSOR AGENCY’s ongoing site investigations and other activities to prepare the Property for disposition, which may include, without limitation, the abandonment and plugging of oil and gas wells and remediation of environmental conditions at the Property, inclusive of the Licensed Premises and the Prohibited Access Area. BRIDGELAND, SUCCESSOR AGENCY, and their duly authorized officers, agents, employees, consultants, and contractors reserve the right to enter and occupy portions of the Licensed Premises at any time during the Term as necessary to complete such activities to prepare the Property for disposition. In the event BRIDGELAND or SUCCESSOR AGENCY’s activities will impede LICENSEE’s access to or use of the Licensed Premises, inclusive of ingress and egress to the Property and Licensed Premises, BRIDGELAND, SUCCESSOR AGENCY, or both shall give LICENSEE at least 72 hours’ notice of its intent to enter and occupy portions of the Licensed Premises. Such notice shall indicate the occupied portions of the Licensed Premises, restricted areas of access (including any buffer zones), and contemplated period of restricted access. LICENSEE expressly acknowledges and hereby waives any claim to exclusive use or quiet enjoyment of the Licensed Premises or Monthly License Fee abatement for activities carried out for these purposes.
8.2. Inspection, Improvements, and Repairs. SUCCESSOR AGENCY and its duly authorized officers, agents, employees, consultants and contractors reserve the right to enter the Licensed Premises during the Term to inspect the same or to alter, improve, or repair the Licensed Premises. To the extent possible, SUCCESSOR AGENCY shall give LICENSEE reasonable notice of its intent to enter the Licensed Premises, and the purpose for such intended visit.
8.3. Access to Licensed Premises. For each of the aforesaid purposes, BRIDGELAND, SUCCESSOR AGENCY, or both shall at all times have and retain the ability to unlock all security gates or doors in, upon, and about the Licensed Premises, and SUCCESSOR AGENCY, BRIDGELAND, or both shall have the right to use any and all means which SUCCESSOR AGENCY, BRIDGELAND, or both may deem proper to open said security gates or doors in an emergency, in order to obtain entry to the Licensed 11 Premises, and any entry to the Licensed Premises obtained by SUCCESSOR AGENCY, BRIDGELAND, or both by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Licensed Premises, or an eviction of LICENSEE from the Licensed Premises or any portion thereof.
IX.
INDEMNIFICATION
9.1. Indemnity. LICENSEE shall indemnify, defend, and hold harmless SUCCESSOR AGENCY and BRIDGELAND and its respective directors, officers, officials, employees, consultants, and agents from and against any and all claims arising from LICENSEE’s use of the Licensed Premises or the conduct of its business or from any activity, work, or thing done, permitted or suffered by LICENSEE in or about the Licensed Premises and shall further indemnify, defend and hold SUCCESSOR AGENCY and BRIDGELAND harmless from and against any and all claims arising from any breach or default in the performance of any obligation on LICENSEE’s part to be performed under the terms of this Agreement, or arising from any act or negligence of LICENSEE, or any of its agents, contractors or employees, and from and against any and all costs, attorneys’ fees, expenses and liabilities incurred in connection with such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against SUCCESSOR AGENCY, BRIDGELAND, or both by reason of any such claim.
LICENSEE upon notice from SUCCESSOR AGENCY, BRIDGELAND, or both shall defend the same at LICENSEE’s expense by counsel reasonably satisfactory to SUCCESSOR AGENCY and/or BRIDGELAND; provided, however, that LICENSEE shall not be liable for damage or injury occasioned by the sole negligence or intentional acts of SUCCESSOR AGENCY or BRIDGELAND and their designated agents or employees unless covered by insurance LICENSEE is required to provide.
9.2. SUCCESSOR AGENCY and BRIDGELAND Limitation of Liability.
SUCCESSOR AGENCY and BRIDGELAND shall not be liable for injury or damage which may be sustained by the person, goods, wares, merchandise, or property of LICENSEE, its employees, invitees, sublicensees, customers, or any other person in or about the Licensed Premises, arising out of or in any way connected with LICENSEE’s nonexclusive license to use the Licensed Premises, or any conditions arising upon the Licensed Premises or upon other portions of the Property, including the Prohibited Access Area, or from other sources, including, but not limited to, BRIDGELAND’s and SUCCESSOR AGENCY’s ongoing site investigations or other activities to prepare the Property for disposition, or hazardous materials or conditions existing on or about the Property or upon neighboring properties adjacent to the Property. SUCCESSOR AGENCY and BRIDGELAND shall not be liable for any damages arising from any act or neglect of any other tenant, licensee, or occupant of the Licensed Premises.
9.3. Release of SUCCESSOR AGENCY and BRIDGELAND by LICENSEE.
LICENSEE hereby waives, releases, and discharges forever SUCCESSOR AGENCY and BRIDGELAND, and their officers, officials, directors, agents, consultants, and employees, from all present and future claims, demands, suits, legal and administrative proceedings and from all liability for damages, losses, costs, fees, and expenses, present and future, arising out of or in any way connected with LICENSEE’s non-exclusive license 12 to use the Licensed Premises for the Permitted Use granted by this Agreement; any conditions arising upon the Licensed Premises or upon other portions of the Property of which the Licensed Premises is a part, including the Prohibited Access Area, or from other sources, including, but not limited to, BRIDGELAND’s and SUCCESSOR AGENCY’s ongoing site investigations or other activities to prepare the Property for disposition, or hazardous materials or conditions existing on or about the Property or upon neighboring properties adjacent to the Property; or any default or breach by SUCCESSOR AGENCY under Article 13 of this Agreement.
LICENSEE ACKNOWLEDGES AND IS AWARE OF THE PROTECTIONS OF CIVIL CODE SECTION 1542 RELATIVE TO THE WAIVERS AND RELEASES CONTAINED IN THIS ARTICLE IX, WHICH READS AS FOLLOWS:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELEASED PARTY.
BY INITIALING BELOW, THE LICENSEE KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS ARTICLE 9.
LICENSEE’S INITIALS__________
X.
INSURANCE
10.1. LICENSEE Commercial General Liability Insurance. LICENSEE shall at LICENSEE’s sole cost and expense, but for the mutual benefit of SUCCESSOR AGENCY, BRIDGELAND, and LICENSEE, maintain throughout the Term of this Agreement commercial general liability insurance against claims for personal injury, death or property damage occurring in, or about the Licensed Premises and in, on, or about the sidewalks directly adjacent to the Licensed Premises and such other areas as LICENSEE, its officers, agents, employees, contractors, licensees and/or invitees shall have the right to use pursuant to this Agreement. Such general liability insurance maintained by LICENSEE shall have a combined single limit of not less than Two Million Dollars ($2,000,000.00) per occurrence with an annual aggregate of not less than Four Million Dollars ($4,000,000.00) and shall list SUCCESSOR AGENCY and BRIDGELAND as additional insureds.
10.2. Sublicensee Commercial Liability Insurance. LICENSEE shall require any Sublicensee of the Licensed Premises, pursuant to Article XII of this Agreement below, to maintain throughout the duration of its sublicense, commercial general liability insurance against claims for personal injury, death or property damage occurring in, or about the Licensed Premises and in, on, or about the sidewalks directly adjacent to the Licensed Premises and such other areas as LICENSEE and any Sublicensee, and their respective officers, agents, employees, contractors, licensees and/or invitees, shall have 13 the right to use pursuant to this Agreement and any sublicense. Such general liability insurance maintained by any Sublicensee shall have a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence with an annual aggregate of not less than Two Million Dollars ($2,000,000.00) and shall list SUCCESSOR AGENCY, BRIDGELAND, and LICENSEE as additional insureds.
10.3. Form of the Policies. The policies required by SUCCESSOR AGENCY shall be in a form reasonably satisfactory to SUCCESSOR AGENCY and shall include actual endorsements (CG 20 10 and CG 20 37 or equivalent) listing the SUCCESSOR AGENCY and BRIDGELAND as additional insureds.
10.4. Waiver of Subrogation. SUCCESSOR AGENCY and LICENSEE each hereby waive any and all rights of recovery against the other or against the officers, employees, agents and representatives of the other, on account of loss or damage occasioned to such waiving Party or its property or the property of others under its control to the extent that such loss or damage is insured against any fire and extended coverage insurance policy which either may have in force at the time of such loss or damage.
10.5. Fire Insurance. LICENSEE shall procure and maintain a policy of insurance for damage and/or destruction to fixtures, equipment and other personal property which it places, stores or otherwise maintains in or on the Licensed Premises where such damage and/or destruction is caused by fire.
XI.
DAMAGE TO LICENSED PREMISES
11.1. Partial Damage – Insurance Available. In the event of damage causing a partial destruction of the Licensed Premises during the term of this Agreement and in the event there is made available to SUCCESSOR AGENCY and BRIDGELAND pursuant to Article X of this Agreement above, LICENSEE’s insurance proceeds for such damage paying eighty percent (80%) or more of the estimated cost of repairing such damage, SUCCESSOR AGENCY, BRIDGELAND, and LICENSEE shall utilize all such insurance proceeds to pay any additional cost and cause the Licensed Premises to be repaired promptly to a condition existing immediately prior to such damage, with this Agreement to continue in full force and effect.
11.2. Partial Damage – Insurance Not Available. In the event of damage causing a partial destruction of the Licensed Premises during the term of this Agreement and in the event there are no insurance proceeds available, or LICENSEE’s available insurance proceeds are less than eighty percent (80%) or more of the estimated cost of repairing such damage, then SUCCESSOR AGENCY shall have the option (a) to elect to immediately terminate this Agreement upon advance written notice and retain all available insurance proceeds; or (b) to repair the damage at SUCCESSOR AGENCY’s expense.
The failure of SUCCESSOR AGENCY to take any action pursuant to this Section 11.2 within a thirty (30) day period after the unavailability or amount of insurance proceeds is determined shall be deemed to be an election to terminate the Agreement and retain all insurance proceeds. In the event SUCCESSOR AGENCY elects to repair such damage, such work shall be completed promptly to restore the Licensed Premises to the condition existing immediately prior to such damage and this Agreement shall continue in full force 14 and effect. In the event SUCCESSOR AGENCY elects to terminate the Agreement, LICENSEE shall have thirty (30) days thereafter to elect to pay for the cost of such repairs to the extent insurance proceeds are not available. In the event LICENSEE elects to do so, coincidentally therewith LICENSEE shall deposit with SUCCESSOR AGENCY or make available to SUCCESSOR AGENCY on terms acceptable to SUCCESSOR AGENCY, the amount required in addition to any available insurance proceeds to complete the repairs. SUCCESSOR AGENCY shall cause such repair work to be completed promptly thereafter restoring the Licensed Premises to the condition existing immediately prior to such damage, and this Agreement shall continue in full force and effect.
11.3. Destruction. In the event the Licensed Premises are totally destroyed, or the Licensed Premises cannot be repaired as required herein under applicable laws and regulations, notwithstanding, the availability of insurance proceeds or contributions from LICENSEE, this Agreement shall be terminated effective from the date of the damage.
XII.
ASSIGNMENT AND SUBLICENSES
12.1. Permitted Sublicenses. SUCCESSOR AGENCY acknowledges and agrees that in accordance with LICENSEE’s Permitted Use of the Licensed Premises, LICENSEE shall be permitted to sublicense portions on the Licensed Premises to its customers (“Sublicensees”) for the temporary parking and storage of Sublicensees’ commercial vehicles and wheeled equipment. LICENSEE shall require all Sublicensees of the Licensed Premises to execute and adhere to the Sublicensee Application and Agreement attached to the Agreement as Exhibit “C.” The failure of a Sublicensee to adhere to the requirements of the Sublicensee Application shall constitute LICENSEE’s default under this Agreement.
12.2. Additional Assignment and Sublicensing. With the exception of the permitted Sublicensees described in Section 12.1 above, LICENSEE shall not assign, sublet, transfer, mortgage, pledge, hypothecate or encumber all or any portion of the Licensed Premises, or this Agreement, without the prior written consent of SUCCESSOR AGENCY and any attempt to do so without such consent being first obtained shall be wholly void and shall constitute a breach of this Agreement.
12.3. No Release of LICENSEE. No consent by SUCCESSOR AGENCY to any assignment or sublicensing by LICENSEE shall relieve LICENSEE of any obligation to be performed by LICENSEE under this Agreement whether occurring before or after such consent, assignment or sublicensing. Notwithstanding Section 12.1 above, the consent by SUCCESSOR AGENCY to any assignment or sublicensing for the Permitted Use shall not relieve LICENSEE from the obligation to obtain SUCCESSOR AGENCY’s express written consent to any other assignment or sublicensing. The acceptance of Monthly License Fee payments by SUCCESSOR AGENCY from any other person other than LICENSEE shall not be deemed to be a waiver by SUCCESSOR AGENCY of any provision of this Agreement or to be a consent to any assignment, sublicensing, or other transfer. Consent to one assignment, sublicensing or other transfer shall not be deemed to constitute consent to any subsequent assignment, sublicensing or other transfer. 15 XIII.
DEFAULT, REMEDIES AND TERMINATION
13.1. Notice of Default and Opportunity to Cure. The failure of either Party to perform any obligation or duty under this Agreement within the time required by this Agreement shall constitute a default. The Party not in default (“Complaining Party”) shall provide written notice to the Party in default (“Defaulting Party”), specifying the nature of the default and the manner in which the default may be cured (“Notice of Default”). The Defaulting Party shall have twenty (20) days from its receipt of a Notice of Default to cure such default. If the default cannot reasonably be cured within said twenty (20) day period, the Defaulting Party must provide written notice to the Complaining Party of its inability to cure the default within such time no later than ten (10) days after its receipt of the Notice of Default and diligently prosecute the cure to completion at the earliest practical date, but in no event later than thirty (30) days after receipt of the first Notice of Default.
13.2. Default by LICENSEE. The following is a non-exhaustive list of occurrences which shall constitute a default on the part of LICENSEE:
(a) The failure to timely pay the Monthly Licensee Fee due to SUCCESSOR AGENCY, as described in Section 5.1 of this Agreement, above; (b) The installation of signs or other items on or about the Licensed Premises without the prior written consent of SUCCESSOR AGENCY in violation of Section 14.17(a) of this Agreement, below;
(c) The abandonment or vacation of the Licensed Premises by LICENSEE prior to the expiration of the Term;
(d) The making by LICENSEE of any general assignment or general arrangement for the benefit of creditors; the filing by or against LICENSEE of a petition to have LICENSEE adjudged a bankrupt or the filing of a petition for reorganization or arrangement under any law relating to bankruptcy; the appointment of a trustee or receiver to take possession of substantially all of LICENSEE’s assets located at the Licensed Premises or of LICENSEE’s interest in this Agreement, where possession is not restored to LICENSEE within thirty (30) days or the attachment, execution or other judicial seizure of substantially all of LICENSEE’s assets located at the Licensed Premises or of LICENSEE’s interest in this Agreement where such seizure is not discharged within thirty (30) days;
(e) LICENSEE makes a material misrepresentation in the performance of this Agreement or in the conduct of any audit of LICENSEE authorized under this Agreement.
13.3. SUCCESSOR AGENCY Remedies. In the event of any default or breach by LICENSEE that is not cured within the time limits specified in Section 13.1 above, SUCCESSOR AGENCY may undertake any of the following courses of action at any time thereafter and without limiting its right to exercise any other right or remedy at law or in equity:
16 (a) Maintain this Agreement in full force and effect and recover the Monthly License Fees and other monetary charges and payments as they become due, without terminating LICENSEE’s rights to possession irrespective of whether LICENSEE has abandoned the Licensed Premises. In the event SUCCESSOR AGENCY elects not to terminate the Agreement, SUCCESSOR AGENCY shall have the right to attempt to re-license the Licensed Premises at such Monthly License Fee and upon such conditions and for such a term and to do all acts necessary to maintain or preserve the Licensed Premises as SUCCESSOR AGENCY deems reasonably and necessary without being deemed to have elected to terminate the Agreement, including removal of all persons and property from the Licensed Premises, such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of LICENSEE. In the event any such re-licensing occurs this Agreement shall terminate automatically upon the new LICENSEE taking possession of the Licensed Premises.
Notwithstanding that SUCCESSOR AGENCY fails to elect to terminate the Agreement initially, SUCCESSOR AGENCY at any time during the term of this Agreement may elect to terminate this Agreement by virtue of such previous default of LICENSEE.
(b) Immediately terminate LICENSEE’s right to non-exclusive possession by any lawful means, in which case this Agreement shall terminate, and LICENSEE shall immediately surrender possession of the Licensed Premises to SUCCESSOR AGENCY. In such event SUCCESSOR
AGENCY shall be entitled to recover from LICENSEE all damages incurred by SUCCESSOR AGENCY by reason of LICENSEE’s default, including without limitation thereto the following: (i) the worth at the time of award of any unpaid Monthly License Fees which had been earned at the time of such termination, plus (ii) the worth at the time of award of the amount by which the unpaid Monthly License Fees which would have been earned after termination until the time of award exceeds the amount of such Monthly License Fee loss that is proved could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid Monthly License Fee for the balance of the term after the time of award exceeds the amount of such Monthly License Fee loss that is proved could be reasonably avoided; plus (iv) any other amount necessary to compensate SUCCESSOR AGENCY for all the detriment proximately caused by LICENSEE’s failure to perform its obligations under this Agreement or which in the ordinary course of events would be likely to result therefrom, plus (v) at SUCCESSOR AGENCY’s election such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable State law. Upon any such re-entry SUCCESSOR AGENCY shall have the right to make any reasonable repairs, alterations or modifications to the Licensed Premises, which SUCCESSOR AGENCY in its sole discretion deems reasonable and necessary. As used in (i) above, the “worth at the time of award” is computed by allowing interest at the rate of ten percent (10%) per annum from the date of default. As used in (ii) and (iii) the “worth at the time of award” is computed by discounting 17 such amount at the discount date of the U.S. Federal Reserve Bank at the time of award plus one percent (1%).
13.4. Default by SUCCESSOR AGENCY and LICENSEE Remedies. In the event of any default or breach by SUCCESSOR AGENCY that is not cured within the time limits specified in Section 13.1 above, LICENSEE may immediately terminate this Agreement in its sole and absolute discretion by delivering written notice of termination to SUCCESSOR AGENCY. SUCCESSOR AGENCY and LICENSEE each acknowledge and agree that SUCCESSOR AGENCY would not have entered into this Agreement, if it were to be liable to the LICENSEE for any additional monetary damages, monetary recovery, or any remedy other than immediate termination of this Agreement.
Accordingly, SUCCESSOR AGENCY and LICENSEE agree that LICENSEE's sole and exclusive rights and remedies upon the breach of this Agreement by SUCCESSOR AGENCY is immediate termination of this Agreement.
XIV.
MISCELLANEOUS
14.1. Entire Agreement. This instrument along with any exhibits and attachments hereto constitutes the entire agreement between SUCCESSOR AGENCY and LICENSEE relative to the Licensed Premises and this Agreement and the exhibits and attachments may be altered, amended or revoked only by an instrument in writing signed by both SUCCESSOR AGENCY and LICENSEE. SUCCESSOR AGENCY and LICENSEE agree hereby that all prior or contemporaneous oral agreement between or among themselves and their agents or representatives relative to the leasing of the Licensed Premises are merged in or revoked by this Agreement.
14.2. Amendments. Any amendment to this Agreement shall be in writing and executed by authorized representatives of both Parties.
14.3. Severability. If any term or provision of this Agreement shall, to any extent, be determined by a court of competent jurisdiction to be invalid or unenforceable the remainder of this Agreement shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforceable to the fullest extent permitted by law.
14.4. Costs of Suit.
(a) If any Party brings any action for any relief against the other, declaratory or otherwise, arising out of this Agreement including any suit by SUCCESSOR AGENCY or BRIDGELAND for the recovery of Monthly License Fees or possession of the Licensed Premises, then the prevailing Party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. For the purposes hereof the words “reasonable attorneys' fees” mean and include, in the case of either Party, expenses incurred by lawyers working for or employed by such Party (allocated on an hourly basis, calculated in one-tenth of an hour increments) to the extent they provide legal services to such Party in connection with the representation 18 of that Party in any such matter.
(b) Should SUCCESSOR AGENCY without fault on SUCCESSOR AGENCY’s part, be made a party to any litigation instituted by LICENSEE or by any third party against LICENSEE or by or against any person holding under or using the Licensed Premises by licensee of LICENSEE, or for the foreclosure of any lien for labor or material furnished to or for LICENSEE or any such other person or otherwise arising out of or resulting from any act or transaction of LICENSEE or of any such person. LICENSEE covenants to defend, indemnify, and hold the SUCCESSOR AGENCY harmless from any judgment rendered against SUCCESSOR AGENCY or the Licensed Premises or any part thereof and all costs and expenses, including reasonable attorneys’ fees incurred by SUCCESSOR AGENCY in or in connection with such litigation.
14.5. Time. Time is of the essence of this Agreement and each and every provision hereof.
14.6. Binding Effect. The Parties hereto agree that all provisions hereof are to be construed as both covenants and conditions as though the words importing such covenants and conditions were used in each separate paragraph hereof. Subject to any provisions hereof restricting assignment, sublicensing, or subletting by LICENSEE, all of the provisions hereof shall bind and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.
14.7. Governing Law and Venue. SUCCESSOR AGENCY and LICENSEE agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California, with venue in the County of Los Angeles, California.
14.8. Waiver. No covenant, term or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver or the breach of any covenant, term or condition shall not be deemed a waiver of any preceding or succeeding breach of the same or any other covenant, term or condition. Acceptance by SUCCESSOR AGENCY of any performance by LICENSEE after the time the same shall have become due shall not constitute a waiver by SUCCESSOR AGENCY of the breach or default of any covenant, term or condition unless otherwise expressly agreed to by SUCCESSOR AGENCY in writing.
14.9. Non-Liability of SUCCESSOR AGENCY Officials. No member, official, officer, employee, agent, representative, volunteer, consultant, or contractor of SUCCESSOR AGENCY shall be personally liable to LICENSEE or BRIDGELAND, or any successor in interest of LICENSEE or BRIDGELAND, in the event of any default or breach by SUCCESSOR AGENCY or for any amount which may become due to LICENSEE, BRIDGELAND or to their respective successor(s), or on any obligations under the terms of this Agreement.
14.10. Relationship of the Parties. Nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture, or any other similar 19 relationship between the Parties hereto or cause the SUCCESSOR AGENCY to be responsible in any way for the debts or obligations of LICENSEE or any other third-party.
14.11. Survival of Indemnity Obligations. All general and specific indemnity and defense obligation of the Parties set forth in this Agreement shall survive the expiration or termination of this Agreement.
14.12. Counterpart Originals. This Agreement may be executed by SUCCESSOR AGENCY and LICENSEE in multiple counterpart originals, all of which together shall constitute a single agreement
14.13. Third-Party Beneficiaries. Nothing in this Agreement shall be deemed to confer any rights upon, nor obligate either of the Parties to this Agreement to any person or entity that is not a party to this Agreement, and the Parties explicitly disclaim any intent to create a third-party beneficiary relationship with any person or entity as a result of this Agreement. Notwithstanding the foregoing, the Parties agree that BRIDGELAND is an express third-party beneficiary to the Agreement.
14.14. Further Assurances. The Parties agree to reasonably consider such additional actions or the execution of such other documents as may be reasonably necessary or convenient to the financing, development, and performance under this Agreement, although nothing in this Section 14.14 shall be deemed a representation, guaranty or commitment by any Party to take any action or execute any document.
14.15. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of SUCCESSOR AGENCY and LICENSEE each represent and warrant that they have the legal power, right and actual authority to bind SUCCESSOR AGENCY and LICENSEE to the terms and conditions hereof and thereof.
14.16. Surrender of Licensed Premises. At the written request of CITY, upon the termination of this Agreement, and in no event later than the Term Expiration Date, LICENSEE will remove all improvements and trade fixtures installed by LICENSEE on the Licensed Premises. LICENSEE shall otherwise surrender the Licensed Premises in as good a state and condition as it was at the commencement of this Agreement, reasonable use and wear damages excepted. If LICENSEE fails to surrender the Licensed Premises as provided under this paragraph, SUCCESSOR AGENCY may cause any such removal and repair on LICENSEE’s behalf at LICENSEE’s expense.
SUCCESSOR AGENCY may deduct the cost of such removal and repair on LICENSEE’s behalf from the Security Deposit collected by SUCCESSOR AGENCY pursuant to Section 5.3 of this Agreement.
14.17. Signs.
(a) LICENSEE shall not inscribe, paint, affix, place or permit to be placed any projecting sign, awning, advertisement, sign, notice or placard on the Licensed Premises or upon or about the entrance doors, windows, sidewalks or areas adjacent to the Licensed Premises without SUCCESSOR AGENCY’s prior written consent. SUCCESSOR AGENCY reserves the right in SUCCESSOR AGENCY’s sole discretion to place on 20 the Licensed Premises any notices, signs, marquees and advertisements as SUCCESSOR AGENCY may deem appropriate in the operation of SUCCESSOR AGENCY’s affairs.
(b) Any such signs or other items described above installed by LICENSEE with SUCCESSOR AGENCY’s consent shall be removed by the expiration or earlier termination of the Agreement at LICENSEE’s expense and LICENSEE shall repair any damage caused to the Licensed Premises resulting from such removal. If LICENSEE fails to do so SUCCESSOR AGENCY may cause such removal and repair on LICENSEE’s behalf at LICENSEE’s expense. If LICENSEE installs such signs or other items described above without SUCCESSOR AGENCY’s prior written consent, such installation shall constitute a default by LICENSEE under this Agreement, and LICENSEE shall remove the same upon receipt of a request by SUCCESSOR AGENCY to do so and shall repair the Licensed Premises accordingly within the cure period set forth in Section 13.1, above.
Failure to remove unauthorized signs or other items described above within such cure period shall constitute a breach of this Agreement by LICENSEE.
If LICENSEE fails to do so, SUCCESSOR AGENCY may cause such removal and repair to be performed on LICENSEE’s behalf at LICENSEE’s expense. LICENSEE shall not use the SUCCESSOR AGENCY or City of Santa Fe Springs name in connection with any business carried on in said Licensed Premises without the prior written consent of SUCCESSOR AGENCY.
14.18. Notices. All notices or demands of any kind required or desired to be given by SUCCESSOR AGENCY or LICENSEE hereunder shall be in writing and shall be deemed delivered forty-eight (48) hours after depositing the notice or demand in the United States mail, certified or registered, postage prepaid addressed to the SUCCESSOR AGENCY or LICENSEE respectively at the addresses set forth below:
[REMAINDER OF THIS PAGE INTENTIONALLY BLANK]
21 SUCCESSOR AGENCY: LICENSEE:
Successor Agency to the Community
Development Commission of the City of
Santa Fe Springs
11710 Telegraph Road
Santa Fe Springs, CA 90670
Attn: René Bobadilla, Executive Director
Phone: (562) 868-0511
BRIDGELAND (as required pursuant to
Section 4.1):
Bridgeland Resources, LLC
One Riverway, Suite 1025
Houston, TX 77056
Attn: Scott Wood
Phone (281) 841-2808
With Courtesy Copies to:
Olivarez Madruga Law Organization,
LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Attn: Paloma McEvoy, Successor
Agency Counsel
Phone: (213) 744-0099
Vehicle Parking Unlimited, LLC
1100 E 3rd Street, Unit 102
Long Beach, CA 90802
Attn: Mark Loxsom, Owner
Phone: (949) 705-7540)
14.19. Maintenance and Inspection of Records.
(a) Records. LICENSEE shall use an accounting system approved by SUCCESSOR AGENCY and shall prepare and maintain all records as may be required by SUCCESSOR AGENCY. LICENSEE shall provide to SUCCESSOR AGENCY, within twenty (20) calendar days after the end of each calendar year quarter, quarterly reports of accounts in accordance with general accepted accounting principles and certified by LICENSEE and true and correct, and all records required to be kept by LICENSEE shall be made available to SUCCESSOR AGENCY upon request.
(b) Audit. LICENSEE shall submit all required financial records and be subject to an annual audit by a certified public accountant. All records shall be made available to the SUCCESSOR AGENCY no later than 60 days after the end of the fiscal year. The annual audit shall be conducted at LICENSEE’s expense. LICENSEE shall, however, be responsible for and shall pay for any additional audit, accounting or legal costs incurred by either party due 22 to additional investigation warranted because of fraud, theft or gross negligence on the part of the LICENSEE. If any audit required hereunder discloses any material misrepresentation by LICENSEE, its staff or agents in its reports, requests or negotiations with SUCCESSOR AGENCY, then SUCCESSOR AGENCY may terminate this Agreement as provided under Article XIII, above.
[SIGNATURES ON FOLLOWING PAGE]
23 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the day and year first appearing above.
SUCCESSOR AGENCY:
SUCCESSOR AGENCY TO THE
COMMUNITY DEVELOPMENT
COMMISSION/REDEVELOPMENT
AGENCY OF SANTA FE SPRINGS
By:____________________________
René Bobadilla, Executive Director
Date: _____
APPROVED AS TO FORM:
By:____________________________
Paloma McEvoy
Successor Agency Counsel
Date: _____
LICENSEE:
VEHICLE PARKING UNLIMITED, LLC
By:____________________________
Mark D. Loxsom, Owner
Date: ______
24 Exhibit “A”
[Legal Description]
25 Exhibit “A”
[Legal Description - Continued]
26 Exhibit “A”
[Legal Description - Continued]
27 Exhibit “B”
[Prohibited Access Area]
28 Exhibit “C”
[Sublicensee Application and Agreement on Following Pages]
Vehicle Parking Unlimited, LLC
Mark Loxsom – Owner
949-705-7540
[email protected]
SUBLICENSEE APPLICATION/AGREEMENT
Truck Yard – 12381 Romandel Ave., Santa Fe Springs (MC&C IV)
1. Sublicensee
First Name ________ ______ Middle Initial____ Last Name Company Name ____________________________________
Street Address _____________________________________
City _____________________ State _________________ Zip
Cell Phone __________ - ________ - E-Mail Address
2. Sublicensee Information:
Vehicle Length_____ Year ______License Plate ________ VIN# Vehicle Type/Make/Model: _____________________________
Sublicense Fee/Month:__________ Sublicense Execution Date: ________
3. Term: The term of this sublicense shall be month-to-month and shall automatically renew, unless either party provides to the other party 30 days’ notice, in writing, of its intent to terminate the lease.
In no event shall the term of this sublicense extend beyond April 30, 2027.
4. Liability Insurance: The Sublicensee must maintain Commercial General Liability that protects Vehicle Parking Unlimited, LLC, 1100 E 3RD St, #102, Long Beach, CA; the Successor Agency To The Community Development Commission/Redevelopment Agency of The City of Santa Fe Springs, 11710 Telegraph Road, Santa Fe Springs, CA 90760 (“Successor Agency”) and Bridgeland Resources, LLC/BR SFS, LLC, 12720 Telegraph Road, Santa Fe Springs, CA 90670 (“Bridgeland”) as additionally insured by an endorsement against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an annual aggregate of not less than $4,000,000.
5. Workers Compensation Insurance: Sublicensee will procure and maintain a policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both Successor Agency and Bridgeland against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Sublicensee.
6. Release of Successor Agency and Bridgeland: Sublicensee waives and releases Successor Agency and Bridgeland, and their officers, officials, directors, agents, consultants, and employees, from all claims and from all liability for damages, losses, costs, liabilities, fees, and expenses, present and future, arising out of or in any way connected with this sublicense, and Bridgeland oil and gas operations, Successor Agency investigations or work to prepare the property for disposition, and/or environmentally hazardous materials or other conditions existing on or about the property, or upon neighboring properties adjacent or in near proximity to the property.
SUBLICENSEE ACKNOWLEDGES AND IS AWARE OF THE PROTECTIONS OF CIVIL CODE SECTION 1542 RELATIVE TO THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 6, WHICH READS AS FOLLOWS:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR
RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD
HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
BY INITIALING BELOW, THE SUBLICENSEE KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 6.
SUBLICENSEE’S INITIALS: __________
7. Sublicense Fee Payments:
_____ Automatic Credit Card Charging (Please complete Credit Card Authorization Form) Credit Cards Accepted: American Express, Discover, MasterCard and Visa. Due to increases to what credit card companies and third-party processors charge merchants to process credit card charges, there will be a 5% processing fee additional to the parking Fee. _____ Zelle payments can be made to 949-705-7540 no later than the 1st of each month with a 15% late penalty if not received by the 5th of the month. Note that Zelle has the option to setup recurring monthly payments, which is helpful.
_____ Check, due no later than the 1st of each month with a 15% late penalty if not received by the 5th of the month. Sent to the following mailing address: Vehicle Parking Unlimited, LLC, C/O Mark Loxsom, 1100 E 3RD St., #102, Long Beach, CA 90802.
Sublicensee Signature: _________________________________________ Date:
Vehicle Parking Unlimited, LLC
Mark Loxsom – Owner
949-705-7540
[email protected]
AGREEMENT TERMS/YARD RULES – 12381 Romandel Ave.
1. All sublicenses are month to month and can be ended or modified with 30-day notice by either party in writing by mail, email, or text. There is also no security deposit.
2. This sublicense is between the Sublicensee listed on this application and Vehicle Parking Unlimited, LLC (“VPU”) for a specifically assigned parking stall(s) and cannot be sublicensed to any other entity.
3. This sublicense grants you access to the property and as a sublicensee you are allowed on the property for the purpose of parking your vehicle, if you provide access to an employee or anyone else, you are responsible for any and all liability caused by that person or entity and your liability insurance must cover them.
4. Sublicensee’s access to and use of the property shall be limited to specified areas indicated in Attachment “1”, enclosed with and incorporated into this Agreement.
5. Sublicensee understands and acknowledges that the property contains active and abandoned oil and gas wells and that environmentally hazardous conditions may be present on and around the property. Sublicensee further understands and acknowledges that it may be necessary for representatives from Successor Agency To The Community Development Commission/Redevelopment Agency of The City of Santa Fe Springs (“Successor Agency”) or Bridgeland Resources, LLC/BR SFS, LLC (“Bridgeland”) to conduct investigations or work on the property to prepare the property for disposition, including maintenance and well abandonment activities, including rig work, and that such investigations or work conducted on and around the property may impede Sublicensee’s access to and use of the property during such activities.
6. VPU will provide Sublicensee with 48 hours’ advance notice if Bridgeland and/or Successor Agency investigations or work to prepare the property for disposition will impede Sublicensee’s ability to access to the property and/or restrict Sublicensee’s use of a space to park its vehicle.
7. Sublicensee understands and acknowledges that ingress and egress to and from the property shall be limited to the access point on Romandel Avenue. Ingress and egress to and from the property from Telegraph Road is strictly prohibited.
8. The purpose of the security gate is to secure the property, you will be provided with an access code to enter and exit the property, please keep this code safe. If for any reason you feel the code has been compromised, contact us to delete the code and assign a new one.
9. Every sublicensee gets one gate access code that is tracked for both entering and exiting for security. If the sublicensee has multiple drivers and would like separate tracking codes for each driver, please make a request and they will be provided.
10.This yard is for parking only, there will be no storage of materials, personal property, or vehicles, and nothing can be set on the ground. All other activities on the property are strictly prohibited.
Vehicle Parking Unlimited, LLC
Mark Loxsom – Owner
949-705-7540
[email protected]
AGREEMENT TERMS/YARD RULES – 12381 Romandel Ave.
11.All vehicles must have current registration tags and in good repair. Any leaked fluids must be contained, cleaned up and removed from the yard immediately.
12.Trash containers have been provided on site, they are to be used for general trash only. The following list of items (however, not limited to) are prohibited to be stored, deposited, or disposed of on the property: tires, oil, gasoline, diesel fuel, antifreeze, hazardous substances, petroleum products, automotive or industrial fluids, empty fluid containers (take them home and recycle), paint, solvents, vehicle parts, mattresses, or any trash brought in from outside the yard, such as home remodeling or construction debris.
13.Portable restrooms are provided in the yard, leave them as clean as you find them.
14.If you see anything that does not seem right, say something by calling or texting 949-705-7540 at any time. Including pictures with text helps to resolve the problem.
15.All sublicensees must keep current the required Liability Insurance policy and have the insurance provider email to [email protected] prior to parking a vehicle on the property. Certificates of Insurance (COI) including the following as additionally insured: Vehicle Parking Unlimited, LLC, the Successor Agency To The Community Development Commission/Redevelopment Agency of The City of Santa Fe Springs and Bridgeland Resources, LLC/BR SFS, LLC.
16.Personal vehicles can be parked in the Sublicensee’s assigned stall when Sublicensee’s rig is out.
Personal vehicles are not allowed to be parked in any other locations.
17.Park in your assigned stall only and the parked vehicle(s) must be within the limits of the assigned stall.
18.Do not leave vehicles unattended outside of your assigned parking stall.
19.Do not block drive aisles.
20.Overnight sleeping in vehicles is strictly prohibited. If a sublicensee is determined to be sleeping on the property, any right to enter onto or park a vehicle on the property shall be immediately terminated.
21.Any increases to monthly rent will be E-mailed and/or texted to the sublicensee no later than fifteen (15) days before a new rate will be in effect.
22.The sublicensee must notify Vehicle Parking Unlimited LLC in writing (Email or Text) thirty (30) days in advance of your intent to terminate your sublicense and to pay any sublicense fee amounts that may become due thereof.
Sublicensee Signature:______________________________________ Date:
ITEM # 12
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Maribel Garcia, City Clerk
SUBJECT: MINUTES OF THE FEBRUARY 17, 2026 CITY COUNCIL MEETINGS DATE: March 17, 2026
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the minutes as submitted.
FISCAL IMPACT
N/A
BACKGROUND
Staff have prepared minutes for the following meeting:
• Council Meeting of February 17, 2026
ANALYSIS
N/A
ENVIRONMENTAL
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DISCUSSION
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SUMMARY/NEXT STEPS
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ATTACHMENT(S):
A. February 17, 2026 Meeting Minutes
Approved:
MINUTES OF THE MEETINGS OF THE CITY COUNCIL
CALL TO ORDER
Mayor Zamora called the meeting to order at 6:01 p.m.
ROLL CALL
Members present: Councilmembers/Directors: Rounds, Mora, Martin, Mayor Pro Tem/Vice Chair Rodriguez, and Mayor/Chair Zamora
Members absent: None
INVOCATION
Santa Fe High School Cross Country Coach Eric Mallory led the invocation.
PLEDGE OF ALLEGIANCE
Mr. and Mrs. Aguirre and Mr. and Mrs. Nakamura led the pledge of Allegiance.
PRESENTATION
1. Santa Fe High School Cross Country Team
CHANGES TO AGENDA – None
PUBLIC COMMENTS ON NON-AGENDA ITEMS
The following people spoke during public comments: Isabel Cervantes and Janie Aguirre STAFF COMMUNICATIONS ON ITEMS OF INTEREST - None
PUBLIC HEARING
2. ANNUAL WEED ABATEMENT PROGRAM (CITY CLERK)
RECOMMENDATION: It is recommended that the City Council:
1. Open the Public Hearing; and
2. Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3.Direct the Los Angeles County Agricultural Commissioner/Weights & Measures to abate the nuisance by having weeds, rubbish, and refuse removed.
Public Hearing opened at 6:28 p.m.
No. of Speakers: None
CITY COUNCIL AGENDA REPORT – MEETING OF MARCH 17, 2026
Minutes of the February 17, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings