Santa Fe Springs City Council
June 16, 2026

Tournament of Roses (TOR) Parade and authorized staff to proceed with planning efforts.

Subsequently, on May 6, 2025, the City Council approved an agreement with Phoenix Decorating Company in the amount of $600,000 for the design, construction, and coordination of the City's Rose Parade float entries during the three-year period. The City Council also authorized the City Manager to execute amendments related to the agreement.

As part of the design development process for the City's 2027 Rose Parade entry, the Heritage Arts Advisory Committee (HAAC) reviewed the proposed float concept at its May 26, 2026, meeting and provided creative input and recommendations regarding the design.

ANALYSIS
Since approval of the original agreement, unforeseen and rising inflationary pressures and increased operating costs have affected nearly every aspect of Rose Parade float production. Phoenix Decorating Company has advised the City that industry-wide increases in the cost of floral materials, natural products, labor, fuel, transportation, equipment, and logistics have resulted in higher overall expenses associated with float construction and participation in the Tournament of Roses Parade.

In addition to increased construction and transportation costs identified by Phoenix, the City incurs expenses associated with transporting the float between Phoenix's facility in the City of Industry and Santa Fe Springs for community viewing opportunities. These costs include traffic control and public safety support provided by the Whittier Police Department, which escorts the float during transport to ensure the safe movement of the oversized vehicle along public roadways.

To address these increased costs and ensure the successful completion of the City's 2027 Rose Parade entry and subsequent Rose Float Viewing event, staff are requesting an additional allocation of $30,000. The additional funding will support float-related expenditures, including construction, transportation, logistics, and public safety escort services necessary for the City's continued participation in the Tournament of Roses Parade program.

Despite these increased costs, staff believe participation in the Rose Parade continues to provide significant value to the community. The Tournament of Roses Parade is viewed by millions of people worldwide and offers a unique opportunity to showcase Santa Fe Springs' culture, identity, and community pride on an international stage. The proposed 2027 design strongly aligns with the Tournament's theme, "Welcome," while highlighting the City's rich cultural heritage and longstanding tradition of community celebration.

ENVIRONMENTAL
N/A

DISCUSSION
The proposed float design, "Bienvenidos a Santa Fe Springs," was selected because it strongly reflects the City's cultural identity while aligning with the 2027 Tournament of Roses theme, "Welcome." The design celebrates the deep Hispanic heritage of Santa Fe Springs through the use of a traditional Mexican kiosk (kiosco), folklórico dancers, mariachi musicians, vibrant floral displays, and the CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval of 2027 TOR Float Design and Additional Allocation of Funding

prominent display of the word Bienvenidos on both sides of the float. The concept recognizes the City's longstanding commitment to celebrating Hispanic culture through community traditions such as Fiestas Patrias, Fiestas de Octubre, and Las Posadas, as well as the significant Hispanic population that continues to shape the community today.

During the HAAC discussion, several members suggested replacing the proposed piñata element with flags representing Hispanic nations. While staff appreciates the intent of recognizing the diversity of Hispanic cultures, the Tournament of Roses maintains strict guidelines regarding the display of national flags and governmental symbols on parade entries. The use of foreign national flags may require review and approval by the Tournament and is generally limited to circumstances involving official delegations, sponsoring organizations, or other approved parade participants. To avoid potential compliance issues during the Tournament's design review process, staff recommend retaining the piñata as a universally recognizable cultural symbol that supports the overall theme while remaining consistent with Tournament guidelines.

Staff are also exploring sponsorship opportunities to help offset float-related expenses. However, the Tournament of Roses maintains strict regulations regarding commercial branding on parade entries.

The inclusion of sponsor names, logos, or other commercial advertising on the float could result in the entry being classified as a corporate or commercial float rather than a municipal or community organization entry. Such a designation could affect participation requirements, sponsorship regulations, and associated costs and would require advance review and approval by Tournament officials.

To preserve the City's community-entry designation while still providing value to potential sponsors, staff are evaluating alternative recognition opportunities that do not involve branding on the float itself. Potential options include recognition in promotional materials, media releases, event signage, and sponsorship opportunities associated with community events surrounding the float. Staff are also exploring the possibility of offering sponsors rider opportunities on the City's float, subject to Tournament rules and availability.

Additionally, while not depicted in the conceptual rendering, Tournament of Roses rules require the name of the sponsoring organization to be displayed on both sides of the float near the rear of the entry. Consistent with the City's 2026 Rose Parade float, the final design will incorporate the City's new brand logo and the name City of Santa Fe Springs to clearly identify the City's participation in the parade.

Following the Rose Parade, staff intend to bring the float back to Santa Fe Springs for a community Rose Float Viewing event, tentatively scheduled for January 6-7, 2027. This event will provide residents with an opportunity to experience the float up close and celebrate the City's participation in the Parade. Staff are also coordinating with Phoenix Decorating Company to explore opportunities for residents to visit Phoenix's construction facility prior to the Parade to view the City's float and other Tournament entries under construction. This behind-the-scenes experience would replace the traditional Cheese & Wine Mixer and provide greater community participation leading up to the Parade.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval of 2027 TOR Float Design and Additional Allocation of Funding

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
Staff will continue working closely with Phoenix Decorating Company and Tournament of Roses officials to ensure the final design complies with all Tournament requirements while maximizing opportunities for community engagement, sponsorship support, and recognition of Santa Fe Springs' unique cultural heritage.

SUMMARY/NEXT STEPS
Staff and the Heritage Arts Advisory Committee recommend that the City Council approve the proposed "Bienvenidos a Santa Fe Springs" design, including the addition of the City's logo and the name City of Santa Fe Springs as required by Tournament of Roses regulations.

Upon approval, Phoenix Decorating Company will proceed with construction of the City's 2027 Rose Parade float and staff will continue coordinating community engagement activities, sponsorship opportunities, transportation logistics, and Rose Float Viewing event planning. This concept provides a vibrant and meaningful representation of Santa Fe Springs and will showcase the City's cultural heritage, hospitality, and community pride to a worldwide audience.

ATTACHMENT(S):

A. 2027 City of Santa Fe Springs TOR Float Design
Attachment A
FOR ITEM NO. 9, PLEASE SEE ITEM NO. 15
ITEM # 10

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: June 16, 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 05/31/26 None Outstanding principal at 05/31/26 $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.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 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
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.

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. 11, PLEASE SEE ITEM NO. 15
ITEM # 12

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: June 16, 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 05/31/2026 None Outstanding principal on 05/31/2026 $6,825,000
Water Revenue Bonds 2018
Financing proceeds available for appropriation at 05/31/2026 None The final payment was made on 5/31/2026 - the bonds have matured 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 CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 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
Water Utility Authority Board appropriated the proceeds for the Equipping Water Well No. 12 Project and all proceeds were since used on this project.

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. May 1, 2026 was the final debt service payment on these bonds, which have consequently matured.

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. 13, PLEASE SEE ITEM NO. 15
FOR ITEM NO. 14, PLEASE SEE ITEM NO. 15
ITEM # 15

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 MAY 12, 2026 CITY COUNCIL MEETINGS DATE: June 16, 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 May 12, 2026

ANALYSIS
N/A

ENVIRONMENTAL
N/A

DISCUSSION
N/A

SUMMARY/NEXT STEPS
N/A
ATTACHMENT(S):

A. May 12, 2026 Meeting Minutes
Approved:

MINUTES OF THE MAY 12, 2026 MEETINGS OF THE CITY COUNCIL

CALL TO ORDER
Mayor Zamora called the meeting to order at 5:00 p.m.

ROLL CALL
Members present: Councilmembers/Directors: Rounds, Mora, Martin, Mayor Pro Tem/Vice Chair Rodriguez, and Mayor/Chair Zamora
Members absent: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS – None

1. CLOSED SESSION

CONFERENCE WITH REAL PROPERTY NEGOTIATIORS
(Pursuant to Government Code Section 54956.8)
Property: Assessor Parcel No. 7005-007-050
Agency negotiator: Nicholas Razo, Assistant City Manager and Cuong Nguyen, Director of Community Development
Negotiating parties: Prospective Tenant for Assessor Parcel No. 7005-007-050 Under negotiation: Price and terms of payment relating to interests in real property Mayor Zamora recessed the meetings at 5:02 p.m.

Mayor Zamora reconvened the meetings at 6:00 p.m.

CLOSED SESSION REPORT
City Attorney, Rick Olivarez provided the following closed session report: Direction was given to staff, and no reportable action was taken.

INVOCATION
Cindy Jarvis led the invocation.

PLEDGE OF ALLEGIANCE
Valeria Corona from the Youth Leadership Committee led the pledge of allegiance.

Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

PRESENTATIONS

2. RECOGNITION OF FOUR HIGH SCHOOL CHAMPION SPORTS TEAMS (PARKS & RECREATION)

3. PUBLIC WORKS WEEK (PUBLIC WORKS)

4. PROCLAMATION - OLDER ADULTS MONTH (POLICE AND COMMUNITY SERVICES)

5. NATIONAL MILITARY APPRECIATION MONTH (POLICE AND COMMUNITY SERVICES)

6. PROCLAMATION - NATIONAL POLICE WEEK (POLICE AND COMMUNITY SERVICES)

7. INTRODUCTION OF NEW SANTA FE SPRINGS POLICE CHIEF (CITY MANAGER) CHANGES TO AGENDA – None

PUBLIC COMMENTS ON NON-AGENDA ITEMS
The following people spoke during public comments: Julian Jackson (via email).

STAFF COMMUNICATIONS ON ITEMS OF INTEREST
Director of Parks and Recreation, Gus Hernandez promoted the upcoming Memorial Day Ceremony on May 25th.

PUBLIC HEARING

8. PUBLIC HEARING TO CONSIDER THE PROPOSED ZONING CODE AMENDMENT TO AMEND SECTION 155.181 (PRINCIPAL PERMITTED USES) WITHIN TITLE 15 (LAND USE), CHAPTER 155 (ZONING), 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 receive the written and oral staff report and any comments from the public regarding the proposed Zoning Code Amendment; and

2. Find and determine that this Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15061(b)(3) (Common Sense Exemption); 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. Introduce by title only and waive further reading of Ordinance No. 1169: An Ordinance of the City of Santa Fe Springs Municipal Code amending Section 155.181 (Principal Permitted Uses) of Title 15 (Land Use), Chapter 155 (Zoning) of the Santa Fe Springs Municipal Code; and

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

Assistant City Manager, Nicholas Razo, provided a brief presentation on Item No. 8.

Public Hearing opened at 6:44 p.m.

No. of Speakers: None
Public Hearing closed at 6:44 p.m.

Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

It was moved by Councilmember Martin and seconded by Mayor Pro Tem Rodriguez, to introduce by title only and waive further reading of Ordinance No. 1169: An Ordinance of the City of Santa Fe Springs Municipal Code amending Section 155.181 (Principal Permitted Uses) of Title 15 (Land Use), Chapter 155 (Zoning) of the Santa Fe Springs Municipal Code, and take such additional, related action that may be desirable, by the following vote:

Ayes: Rounds, Mora, Martin, Rodriguez, Zamora
Noes: None

Absent: None
Recuse: None

9. PUBLIC HEARING - TO CONSIDER THE PROPOSED GENERAL PLAN AMENDMENT TO AMEND TABLE LU-1 (LAND USE CATEGORIES) AND RELATED PAGES PERTAINING TO FLOOR AREA RATIOS WITHIN CHAPTER 2 (LAND USE ELEMENT), OF THE SANTA FE SPRINGS GENERAL

PLAN (COMMUNITY DEVELOPMENT)
It is recommended that the City Council:

1. Open the Public Hearing and receive the written and oral staff report and any comments from the public regarding the proposed General Plan Amendment; and

2. Find and determine that this Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15061(b)(3) (Common Sense Exemption); and

3. Find and determine that the proposed General Plan Amendment is consistent with the goals, policies, and programs of the City’s General Plan; and

4. Adopt Resolution No. 10011, which incorporates the City Council’s findings and actions regarding this matter, to effectuate the proposed amendments to the text of the City’s General Plan; and

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

Assistant City Manager, Nicholas Razo, provided a brief presentation on Item No. 9.

Public Hearing opened at 6:46 p.m.

No. of Speakers: None
Public Hearing closed at 6:46 p.m.

It was moved by Mayor Pro Tem Rodriguez and seconded by Councilmember Mora, to adopt Resolution No. 10011, which incorporates the City Council’s findings and actions regarding this matter, to effectuate the proposed amendments to the text of the City’s General Plan, and take such additional, related action that may be desirable, by the following vote:

Ayes: Rounds, Mora, Martin, Rodriguez, Zamora
Noes: None

Absent: None
Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

Recuse: None
OLD BUSINESS – NONE
REGULAR BUSINESS – NONE

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

10.MINUTES OF THE APRIL 21, 2026 PUBLIC FINANCING AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Public Financing Authority:

1. Approve the minutes as submitted.

11.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

12.MINUTES OF THE APRIL 21, 2026 WATER UTILITY AUTHORITY MEETINGS (CITY CLERK) It is recommended that the Water Utility Authority:

1. Approve the minutes as submitted.

13.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

14.MINUTES OF THE APRIL 21, 2026 HOUSING SUCCESSOR MEETINGS (CITY CLERK) It is recommended that the Housing Successor:

1. Approve the minutes as submitted.

SUCCESSOR AGENCY

15.MINUTES OF THE APRIL 21, 2026 SUCCESSOR AGENCY MEETINGS (CITY CLERK) It is recommended that the Successor Agency:

1. Approve the minutes as submitted.

CITY COUNCIL
Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

16.MINUTES OF THE APRIL 21 AND APRIL 23, 2026 SPECIAL AND REGULAR CITY COUNCIL

MEETINGS (CITY CLERK)
It is recommended that the City Council:

1. Approve the minutes as submitted.

17.WADING POOL MAINTENANCE SERVICES – AWARD OF CONTRACT TO SERVICE FIRST (PUBLIC WORKS)
It is recommended that the City Council:

1. Accept the proposal from Service First in response to the RFP 25-9 Wading Pool Maintenance Services; and

2. Award a contract to Service First from Santa Ana, California for Wading Pool Maintenance Services; and

3. Authorize the City Manager to execute the agreement with Service First; and

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

18.APPROVE AGREEMENT WITH IBE DIGITAL TO PURCHASE FIREWALL APPLIANCES WITH

FORTIGATE AND RELATED SERVICES (FINANCE)
It is recommended that the City Council:

1. Authorize the City Manager to execute a five (5) year agreement with IBE Digital (IBE) to Firewall Appliances with Fortigate, and Unified Threat Protection (UTP) security subscription bundle, installation, and related services in the amount of $94,871; and

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

It was moved by Councilmember Rounds, seconded by Councilmember Mora, to approve the consent calendar, by the following vote:

Ayes: Rounds, Mora, Martin, Rodriguez, Zamora
Noes: None

Absent: None
Recuse: None
APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS - None COUNCIL COMMENTS/AB1234 COUNCIL CONFERENCE REPORTING
Councilmember Rounds thanked the high schools for their attendance and thanked the Whittier Police Department for their 30 years of service.

Councilmember Mora thanked the students for their attendance at the meeting and also commended the Whittier Police Department on their 30 years of service.

Councilmember Martin thanked Whittier Police Department and commented on the 80’s 5K.

Mayor Pro Tem Rodriguez thanked the Whittier Police Department for their years of services and commented on the success of the Art Fest event.

Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

Mayor Zamora wished everyone in attendance a Happy Mother’s Day, thanked the police departments for their service, and talked about the success of the LEAFF golf tournament.

Minutes of the May 12, 2026 Public Financing Authority, Water Utility Authority, Housing Successor, Successor Agency, and City Council Meetings

Mayor Zamora

ADJOURNMENT
Mayor Zamora adjourned the meeting at 7:05 p.m.

ITEM # 16

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: James Enriquez, P.E. Director of Public Works/City Engineer SUBJECT: APPROVAL OF RESOLUTION NO. 10021 CONFIRMING RESIDENTIAL SOLID WASTE

SERVICE CHARGES, ESTABLISHING A TEMPORARY RATE HOLIDAY RECOVERY

CHARGE, AND AUTHORIZING COLLECTION OF SUCH CHARGES ON THE LOS ANGELES COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2026-2027 DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Determine that the proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273(a)(1); and

2. Adopt Resolution No. 10021 confirming the Fiscal Year 2026-2027 residential solid waste service charge assessment; and

3. Approve the temporary Rate Holiday Recovery Charge associated with deferred residential solid waste charges from Fiscal Year 2025-2026; and

4. Authorize the placement of the annual residential solid waste assessment on the Los Angeles County property tax roll for Fiscal Year 2026-2027.

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

FISCAL IMPACT
The proposed assessment will generate revenue necessary to fund residential solid waste collection services and recover deferred residential solid waste charges associated with the Fiscal Year 2025- 2026 rate holiday.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Resolution No. 10021 Confirming the Fiscal Year 2026-2027 Residential Solid Waste Service Charge Assessment

BACKGROUND
The City provides residential solid waste collection services through an exclusive franchise agreement.

On May 17, 2022, the City Council adopted Resolution No. 9789 following completion of the Proposition 218 majority protest process and established residential solid waste service rates for residential customers within the City.

Effective February 1, 2026, the City transitioned residential solid waste collection services to Universal Waste Systems, Inc. (UWS). As part of the transition, the City Council approved a one-year rate holiday during Fiscal Year 2025-2026. As a result, residential solid waste service charges that otherwise would have been collected during Fiscal Year 2025-2026 were deferred.

The City has historically collected residential solid waste charges through the Los Angeles County property tax roll. The proposed action continues that practice for Fiscal Year 2026-2027.

ANALYSIS
The annual recovery amount is calculated as follows:

Deferred Fiscal Year 2025-2026 Charge:
$36.28 × 12 months = $435.36
Five-Year Recovery Period:
$435.36 ÷ 5 = $87.07 annually
Accordingly, the proposed Fiscal Year 2026-2027 assessment consists of:

Base Residential Service Charge: $342.00
Rate Holiday Recovery Charge: $87.07
Total Annual Assessment: $429.07 per parcel
Equivalent Monthly Cost: $35.75

ENVIRONMENTAL
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273(a)(1), which exempts the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies for the purpose of meeting operating expenses.

DISCUSSION
The City negotiated reduced charges for residential solid waste collection services under its franchise agreement with UWS. The current residential solid waste service rate under the City's agreement with UWS is $28.50 per month, which equates to an annual service charge of $342.00 per residential parcel.

During Fiscal Year 2025-2026, residents received a rate holiday and were not assessed residential solid waste charges. The deferred annual residential charge associated with the rate holiday equals $435.36 per parcel, based on the previously approved residential rate of $36.28 per month.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Resolution No. 10021 Confirming the Fiscal Year 2026-2027 Residential Solid Waste Service Charge Assessment

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
To minimize impacts on residents while ensuring the long-term financial stability of the residential solid waste program, staff recommends recovering the deferred amount over a five-year period. The proposed assessment does not increase the underlying residential service rate of $28.50 per month.

The additional amount represents a temporary recovery of deferred charges associated with the Fiscal Year 2025-2026 rate holiday.

Due to the City negotiating reduced rates with UWS, recovery of the deferred charges attributable to the rate holiday over a five-year period will not result in an increase in previously approved total charges for residential solid waste collection services. Upon expiration of the five-year period and full recovery of the deferred Fiscal Year 2025-2026 residential solid waste charges, fees will be reduced to reflect the revised negotiated amounts.

The City currently has approximately 3,635 residential parcels receiving residential solid waste collection service. Upon approval, the assessment roll will be transmitted to the Los Angeles County Auditor-Controller for inclusion on the Fiscal Year 2026-2027 property tax roll.

SUMMARY/NEXT STEPS
Upon approval by the City Council of the recommended actions, City staff will complete the annual residential parcel roll and file with the County Assessor for inclusion in the Tax Roll.

ATTACHMENTS:

A. Attachment A – Resolution No. 10021
B. Attachment B – Resolution No. 9789
APPROVED:

ITEM NO.:

RESOLUTION NO. 10021

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS,

CALIFORNIA, CONFIRMING RESIDENTIAL SOLID WASTE SERVICE CHARGES,

ESTABLISHING A TEMPORARY RATE HOLIDAY RECOVERY CHARGE, AND

AUTHORIZING COLLECTION OF SUCH CHARGES ON THE LOS ANGELES COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2026-2027
WHEREAS, the City contracts for residential solid waste collection services through the use of an exclusive Franchise Agreement, whereby all residential properties within the City are required to subscribe to the solid waste collection services outlined in the Franchise Agreement; and
WHEREAS, effective February 1, 2026, the City entered into a residential solid waste collection agreement (Franchise Agreement) with Universal Waste Systems, Inc. for the provision of residential solid waste collection services within the City; and WHEREAS, under the Franchise Agreement, the Franchisee (Universal Waste Systems, Inc.) is responsible for all aspects of solid waste collection services for residential properties within the City, with the exception of limited areas that continue to be served by Serv-wel Disposal Company; and
WHEREAS, under the Franchise Agreement, rates, which are negotiated between the City and the Franchisees, are established and the Franchisees charge customers the agreed upon rates to provide the solid waste services; and WHEREAS, the rate for Fiscal Year 2025-26 ($36.28 per month) was previously set per the requirements of a Proposition 218 hearing which was conducted on May 17, 2022 (Resolution No. 9789) and the City desires to continue to collect this rate as approved in said Proposition 218 hearing; and
WHEREAS, the City has negotiated with the Franchisees a reduced monthly rate of $28.50 per month ($342 per year); and
WHEREAS, the City Council determined that residents would receive a rate holiday during Fiscal Year 2025-2026 in connection with the transition to a new residential waste hauler and, as a result, residential solid waste charges that otherwise would have been collected during Fiscal Year 2025-2026 were deferred; and WHEREAS, the amount of deferred residential solid waste charges attributable to the rate holiday equals $435.36 per residential parcel; and WHEREAS, the City Council has determined that recovery of the deferred charges over a five-year period minimizes impacts to residents while maintaining the financial integrity of the residential solid waste program; and

ATTACHMENT A

WHEREAS, the annual recovery amount necessary to recover the deferred Fiscal Year 2025-2026 charges over a five-year period is $87.07 per parcel annually; and WHEREAS, due to the City negotiating reduced rates with the Franchisees, recovery of the deferred charges attributable to the rate holiday over a five-year period will not result in an increase in previously approved total charges for residential solid waste collection services; and
WHEREAS, upon expiration of the five-year period and full recovery of the deferred Fiscal Year 2025-2026 residential solid waste charges, fees will be reduced to reflect the revised negotiated amounts set forth in the Franchise Agreement; and WHEREAS, the total annual assessment for Fiscal Year 2026-2027 is $429.07 per residential parcel, consisting of the annual residential service charge of $342.00 and the annual rate holiday recovery charge of $87.07; and
WHEREAS, the City desires to collect the annual assessment through the Los Angeles County property tax roll in accordance with applicable law; and WHEREAS, the Director of Public Works has prepared and filed a report identifying the parcels subject to the assessment and the amount to be collected from each parcel; and
WHEREAS, the City Council has reviewed and considered the report and all testimony presented.

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

SECTION 1. That the above recitals are true and correct and incorporated herein by this reference.

SECTION 2. The residential solid waste service charge for Fiscal Year 2026-2027 is confirmed at $342.00 annually per residential parcel, and may be adjusted annually by the Consumer Price Index for all urban consumers for Los Angeles-Long Beach Anaheim, CA published by the U.S. Bureau of Labor Statistics.

SECTION 3. A temporary Rate Holiday Recovery Charge of $87.07 annually per residential parcel is hereby approved for Fiscal Year 2026-2027. The recovery charge represents the first of five annual installments necessary to recover deferred residential solid waste service charges associated with the Fiscal Year 2025-2026 rate holiday.

SECTION 4. The total annual residential solid waste assessment for Fiscal Year 2026-2027 shall be $429.07 per residential parcel.

SECTION 5. The Director of Public Works is authorized to prepare and submit the final assessment roll and parcel listing to the Los Angeles County Auditor-Controller and any other County agencies required to place the assessment on the County tax roll.

SECTION 6. The annual assessment shall be collected on the Los Angeles County property tax roll in the same manner, by the same persons, and at the same time as property taxes are collected.

SECTION 7. The annual Rate Holiday Recovery Charge shall remain in effect for five fiscal years and shall automatically expire upon full recovery of the deferred Fiscal Year 2025-2026 residential solid waste charges.

SECTION 8. This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273(a)(1), relating to the establishment and collection of rates and charges necessary to meet operating expenses.

SECTION 9. That the rates established by this resolution shall supersede any previously adopted fees, charges, resolutions, or other regulations, to the extent there is conflict.

SECTION 10. That the City Clerk shall certify the adoption of this Resolution.

APPROVED and ADOPTED this 16th day of June 2026.
______________________________
Joe Angel Zamora, Mayor
ATTEST:
__________________________________
Maribel Garcia, City Clerk

ATTACHMENT B

ITEM # 17

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Julio F. Morales, Director of Finance
SUBJECT: FISCAL YEAR (FY) 2024-25 YEAR-END REVIEW AND PRESENTATION OF BASIC

FINANCIAL STATEMENTS REPORT
DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Receive and file the City’s Basic Financial Statements for the Fiscal Year (FY) ending June 30, 2025; and

2. Authorize the City Manager to take any necessary related actions.

FISCAL IMPACT
Presentation of these basic financial statements does not have fiscal impact.

The City’s General Fund Unassigned Reserve balance increased approximately $27 million from $50 million on June 30, 2024, to $77 million on June 30, 2025 (page 17).

Unrestricted Net Assets in the Water Fund increased by approximately $2.6 million from $8.3 million on June 30, 2024, to $8.8 million on June 30, 2025 (page 14).

BACKGROUND
Each year, the City engages an independent financial auditor to review the City’s financial records and prepare audited financial statements. The purpose is to provide key financial information, which is independently audited, to the City Council, citizens, staff, grant entities, creditors, bond investors, rating agencies, and other interested parties.

The City had been using its prior audit firm, Clifton Larsen Allen LLP (“CLA”), previously White Nelson Diehl Evans LLP, for five years since FY 19-20. The Government Finance Officers Association (GFOA) recommends that municipalities enter into multi-year contracts with audit firms, typically five years or more. For FY 24-25, the City selected a new audit firm via RFP process, Vasquez & Company (“VC”).

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

Audit Timeline
The City completed its audit in March of last year. This year the City experienced delays in completing the audit process due to three inter-related variables:

1. Turnover of Accounting Staff
The City experienced turnover of its accounting staff in the past two years. Last year, the City’s two long-term accountants retired and were replaced by two new accountants. The transition of new accounting staff resulted in delays in processing many accounting functions, most notably the bank reconciliation process. Staff hired an outside consulting firm to assist in the bank reconciliation process.

Nonetheless, the new accountants were underperforming and were placed on Performance Improvement Plans - they subsequently resigned this year in the middle of our audit process (leaving staff without in-house accounting staff for several weeks). Finance recently replaced these positions with two new accountants.

2. Delays in Processing Accounting Information
Finance staff discovered last year that staff had been delayed in processing water billing payments and recording revenues. Although Finance staff quickly entered the required data once discovered, we had fallen behind several weeks in processing this information. The delays made it more difficult to complete the bank reconciliation process, which was further exacerbated by water billing issues and accounting staff turnover.

The bank reconciliation process was also impacted by the transition from BMO to Farmers & Merchant Bank. During the transition, accounting staff did not make necessary adjustments to the Tyler financial software to record revenues in the correct bank, which added further complexity to the bank reconciliation process.

3. Learning Curve New Audit Firm
This year the Finance staff commenced its audit process with a new accounting firm. Typically, the initial audit with a new firm requires additional effort by Finance staff and the audit firm to learn the internal controls and accounting policies and procedures. Under normal circumstances, changing audit firm will require additional effort. However, the timeline was significantly impacted by the accounting staff turnover and delays in completing the bank reconciliation process.

Basic Financial Statements
Basic financial statements that are in substantially final form are attached to this report. The City’s financial statements are presented in conformity with generally accepted accounting principles CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

(“GAAP”) and audited in accordance with generally accepted governmental auditing standards (“GAGAS”). The statements are reported on a fiscal year basis beginning July 1st and ending June 30th and have been audited by an independent firm of certified public accountants, Vasquez & Company LLP (“VC”) to provide reasonable assurance that the financial statements fairly present the City’s financial condition in all material respects.

The basic financial statements do not include an auditor’s opinion. Vasquez & Company requires a few additional weeks to perform an internal review of the financial statements. They are expected to deliver “audited financial statements” with an opinion letter at the July or August City Council meeting.

The Vasquez opinion will also include a Report on Internal Control and Compliance and an Audit Communication Letter summarizing the results of the audit. The audited financial statement may have minor adjustments; otherwise, the financial figures will be substantially the same as the Basic Financial Statements presented here, as Attachment A.

The City typically prepares an Annual Comprehensive Financial Report (ACFR). This report has two additional elements: 1) Management Discussion & Analysis (MD&A) letter and 2) Statistical Section.

Staff anticipates returning to the City Council with a completed ACFR in July/August. Financial results in the ACFR are expected to be substantially similar to those presented in this report.

ANALYSIS
As part of the City’s annual fiscal year-end procedures, staff compiles a summary of the City’s actual General Fund and Water Fund revenues and operating expenditures compared to the adjusted budget.

The summary is instrumental in helping staff assess prior year expenditures and current financial trends to incorporate the information into future budget estimates and to assess the City’s current financial position.

Actual vs. Budget Information
General Fund - Actual year-end financial information is favorable for both revenues and expenditures in the General Fund. General Fund Revenues totaled $102.4 million, which was $440,000 (0.43%) less than budgeted operating revenues of $102.8 million. The City’s General Fund expenditures of $103.9 million were greater than operating revenues, but also on par with the adopted (revised) budget target amount of $104.0 million. The transfer in of $1.2 million offset the slight operating difference of ($1.5 million). The City’s ending Fund Balance was bolstered by the $31.8 million in bond proceeds from Measure SFS Bonds issued in May 2025, increasing from $121.2 million to $153.8 million.

After adjusting for capital expenditures, the General Fund had a net operating surplus of approximately $10.0 million. These excess funds were used to purchase the NTMA building in January 2025 for approximately $9.3 million.

Special Revenue Funds - The City’s various special revenue funds and grant programs generated $7.9 million in revenues, and offset by $5.5 million in operating costs, capital outlay, and transfers, resulting in a net increase in fund balance of $3.1 million – from $32.8 million to $35.9 million.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

Water Utility – Operating revenues in the Water Fund were $13.1 million, which was significantly under budget amount of $16.4 million. The decline in water revenues is primarily attributed to the billing issues experienced during the fiscal year – delay in billing and collections. Operating expenses of $12.3 million remained below operating revenues, resulting in $8.8 million in unrestricted reserves at year-end.

GENERAL FUND
General Fund Revenues are comprised of 3 major revenue categories:

1. Taxes & Fees – Sales & Use Tax, Property-based Taxes, UUT & Franchise Fees

2. Program Revenues – License & permits, charge for services, fines and facility fees

3. Use of Money & Other Revenues – Rentals / lease, interest income, development fees and other
Taxes & Fees
Sales tax revenue growth is critical to the City’s finances, as Sales Tax and Measure Y (Transaction and Use Tax) together represent approximately 55% of General Fund revenues. The City experienced a slight decline in its sales tax base, totaling $56.3 million, which reflects a decrease of $1.1 million (2%) compared to the previous year.

Property tax revenue for FY 2024–25 totaled $3.1 million, exceeding the budgeted amount of $2.7 million by $443,000 (16%). Motor Vehicle In-Lieu Tax revenue, which is also based on assessed property values, totaled $2.9 million, surpassing the budgeted amount of $2.6 million by $316,000 (12%). Additionally, the City received $3.5 million in Residual Property Tax revenue from the former Redevelopment Agency, which was $764K (27%) higher than the projected amount of $2.8 million.

Utility User’s Tax (UUT), primarily driven by electricity revenue, has shown an upward trend and will continue to be closely monitored in the coming years. UUT totaled $8.9 million, exceeding budget expectations of $8.0 million by $861K (11%). Electricity revenue from Southern California Edison also represents the largest component of Franchise Taxes. Similarly, Franchise Fee revenue—largely driven by electricity—totaled $5.0 million, exceeding the original budget of $4.1 million by $942K (23%).

Other Revenue
Other Category revenues were approximately $3.7 million (102%) higher than budgeted, primarily due to net interest earnings of approximately $4.6 million, which significantly exceeded the budgeted investment earnings of $1.1 million. In addition, the remaining revenue sources within this category— including Development Fees, Green Waste Host Fees, Ground Leases, rental income, and other miscellaneous revenues—totaled approximately $3.0 million, exceeding the FY 2024-25 budgeted amount of $2.7 million by $244K (9%).

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

Program Revenues
Charges for Services significantly exceeded budget by approximately $1.67 million (74%), primarily due to higher-than-anticipated service fees and Plan Check & Inspection Fee revenues. Contributions and Other Revenue also surpassed budget by approximately $35K (13%) and $20K (3%), respectively.

License & Permits revenues were approximately $2.25 million (38%) below budget, representing the largest unfavorable variance, primarily due to lower-than-anticipated Building Inspection Fee revenues during the fiscal year. Intergovernmental revenues were approximately $256K (26%) below budget, while Facility Use Fees, Fines & Forfeitures, and other miscellaneous revenue sources were modestly below budgeted levels.

General Fund Expenditures
General Fund operating expenses totaled $93.8 million, representing savings of $10.2 million or 9.8% compared to the revised budget. Although there were actual-to-budget departmental fluctuations, all departments realized savings primarily through vacancies and operational/contractual savings. • City Manager – Total expense was $9.1 million compared to a budget of $8.1 million: The cost overrun was primarily due to one-time information technology expenses of $1.6 million which was partially offset by Salaries & Benefits savings of $726K. • Community Development – Total expense was $2.2 million compared to a budget of $4.0 million:

Contractual service actuals totaled $607K, which is $1.4 million or 69.7% less than budget.

Salaries & Benefits were $382K or 20.4% less than budget. • Community Services – Total expense was $6.6 million compared to a budget of $8.9 million:

Salaries & Benefits were $5.2 million, less than budget by $1.5 million or 22.7%. • Finance – Total expense was $5.7 million compared to a budget of $8.7 million: Operations & Maintenance actual expenses were $2.7 million, less than budget by $2.5 million or 48.1%.

Salaries & Benefits were under budget by $335K or 12.4%. • Fire – Total expense was $26.5 million compared to a budget of $27.6 million: Salaries & Benefits were $23.7 million, less than budget by $751K or 3.1%.
• Police Services – Total expense was $18.9 million compared to a budget of $20.9 million: Salaries & Benefits were under budget by $530K or 15.2%; O&M expenses were under budget by $620K or

52.6%; and contractual services were under budget by $149K or 22.5%. • Public Works – Total expense was $15.5 million compared to a budget of $18.9 million: Salaries & Benefits were $7.9 million, less than budget by $1.3 million of 14.2%. O&M expenses were $2.1 million, less than budget by $1.7 million or 44.2%.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

WATER FUND
Water Fund Revenues
In the Water Fund, total revenues received were $13.1 million, which was significantly below the budgeted amount of $16.4 million. The revenue decrease resulted from delays caused by issues in the water billing system.

Water Fund Expenditures
Water Fund expenses were $16.4 million compared to a budget of $19.4 million.

Water Fund Balance
As of June 30, 2025, the outstanding water billing balance is significantly higher compared to the prior years, primarily due to a system outage and staff being unable to process bills. The collectability of these balances has been steadily declining after the implementation of the new billing system.

ENVIRONMENTAL
N/A

DISCUSSION
There are several critical factors to highlight to gain a better understanding of key economic drivers of the City’s financial performance:

Volatility of Sales Tax makes City sensitive to changes in the economy. The City’s reliance on sales tax (60% of General Fund Revenues) makes it susceptible to economic downturns faster than other agencies that rely more on property taxes which typically increase by 2% or more each year (and do not decline). It is important to note that the City’s industrial business-to-business sales tax base also causes the City’s sales tax to behave differently than regional and statewide trends, making predicting sales tax more challenging.

The newly passed Measure L ¼ cent sales tax will add much need $4.4 million annual sales tax revenues commencing in FY 26-27.

Natural Increase: CalPERS UAL, COLA/Step, and Medical /Insurance Premiums CalPERS annual fixed costs payments (i.e., UAL payments) will continue to rise over the next six years: increasing from $12.4 million in FY 26-27 and peaking in FY 27-28 at $14.3 million. UAL will add $2.0 million to the City’s baseline General Fund operating budget over the next 6 years.

The City has also negotiated a 3.0% cost of living adjustment (i.e., COLA) for FY 25-26 followed by a 2% COLA for FY 26-27. These costs are combined with annual step increases, plus an CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
FY 2024 – 25 Year-End Review and Presentation of Basic Financial Statements Report

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
increase in medical premiums that typically increase 4-8% per year. These costs collectively are viewed as a “natural increase” that add $2.5 to $3.0 million or 2-3% to the baseline operating budget each year.

Level of Service – The City Council and City Staff have increased staffing and contractual services to address deferred maintenance and quality of life issues – such as Homeless Program and Police Services Officer (PSOs) in the City. The City may be challenged to provide this increased level of service if revenues stagnate or decline in the future.

Cost of Water – The City previously had two operating wells. These wells are currently nonoperational, which has caused the Water Utility to purchase “imported” water from Central Basin MWD (via the Metropolitan Municipal Water District). The cost of imported water is approximately 75% greater than well water ($1,600 vs $900 per acre foot). The reliance solely on imported water has significantly increased the Water Utility’s operating cost.

The impact of this cost increase is further exacerbated by the fact that the City has not increased water rates since 2023, additionally the cost of imported water from Central Basin has increased by approximately 8.5% in each of the past three consecutive years, totaling 27.7%.

Moreover, the Water Utility has not been able to fund any capital improvements to fund infrastructure replacement costs, which are estimated to be $100-$150 million.

Under the current fiscal environment, revenues are expected to exceed expenditures over the next couple of years, but this structural surplus is expected to decrease each year given the negotiated salary increases, new positions added to the organization and other increases in operating costs. As such, staff will continue to pursue internal operating efficiencies and strategies to minimize costs and impacts to City services while exploring new and innovative revenue ideas. Staff will continue to work with the City Council to explore not only new revenue options but cost containment strategies as well.

SUMMARY/NEXT STEPS
Staff will return to City Council to submit a completed Annual Comprehensive Financial Report (ACFR), which includes the auditor’s written opinion. Staff will address and incorporate any direction/recommendations provided by Vasquez & Company.

ATTACHMENT(S):

A. FY 2024-25 Basic Financial Statements
City of Santa Fe Springs
Statement of Net Position
June 30, 2025
See accompanying Notes to Basic Financial Statements.
14 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments $ 127,496,741 $ 19,034,875 $ 146,531,616 Restricted Assets
Cash and Investments with Fiscal Agents 63,905,951 571,146 64,477,097 Receivables
Accounts 4,018,426 279,718 4,298,144
Interest 1,121,799 2,662 1,124,461
Deposits and Other Assets 394,492 - 394,492
Due from Other Governments 21,306,921 - 21,306,921
Inventories - 26,971.00 26,971
Notes and Loans, Net of Allowances 6,147,820 - 6,147,820 Leases Receivable 21,643,574 - 21,643,574
Land and Buildings Held for Resale 520,032 - 520,032
Capital Assets Not Being Depreciated/Amortized 76,780,105 8,474,483 85,254,588 Capital Assets, Net of Depreciation/Amortization 123,484,583 15,800,483 139,285,066 Total assets 446,820,444 44,190,338 491,010,782

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 5,550 5,550
Deferred Pension-Related Items 33,251,286 1,192,004 34,443,290 Deferred OPEB-Related Items 6,298,026 524,665 6,822,691 Total deferred outflows of resources 39,549,312 1,722,219 41,271,531 (Continued)
Primary Government
Unaudited Draft
City of Santa Fe Springs
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to Basic Financial Statements.
14 Governmental Business-Type
Activities Activities Total

LIABILITIES
Accounts Payable $ $ 4,413,496 1,216,960 5,630,456
Accrued Liabilities 820,100 444,980 1,265,080
Accrued Interest 300,597 43,437 344,034
Unearned Revenue 1,451,220 413,222 1,864,442
Deposits Payable 2,178,749 1,001,724 3,180,473
Due to Other Governments 45,471 - 45,471
Long-term liabilities
Due within one year
Compensated Absences 479,800 65,400 545,200
Bonds, Notes, Lease and SBITA Payable 1,473,745 243,877 1,717,622 Due in more than one year
Compensated Absences 1,919,558 261,786 2,181,344
Bonds, Notes, Lease and SBITA Payable 35,024,313 6,725,525 41,749,838 Net OPEB Liability 20,995,376 1,749,046 22,744,422
Net Pension Liability 146,005,664 6,672,851 152,678,515 Total liabilities 215,108,089 18,838,808 233,946,897

DEFERRED INFLOWS OF RESOURCES
Deferred Pension-Related Items 1,938,732 - 1,938,732
Deferred OPEB-Related Items 8,410,148 700,618 9,110,766 Deferred Leases-Related Items 20,594,333 - 20,594,333
Total deferred inflows of resources 30,943,213 700,618 31,643,831

NET POSITION
Net Investment in Capital Assets 195,766,069 17,554,991 213,321,060 Restricted - Nonexpendable 244,676 - 244,676
Restricted - Expendable
Pension 31,475,709 - 31,475,709
Community Development Projects 194,818 - 194,818
Public Safety 217,659 - 217,659
Public Works 15,949,267 - 15,949,267
Capital Projects 8,150,733 - 8,150,733
Low and Moderate Income Housing 9,993,341 - 9,993,341
Art in Public Places - Expendable 2,313,814 - 2,313,814 Waste Management 5,578,272 - 5,578,272
Environmental Programs 510,908 - 510,908
Unrestricted (30,076,812) 8,818,140 (21,258,672)
Total net position $ 240,318,454 $ 26,373,131 $ 266,691,585 (Concluded)
Primary Government
Unaudited Draft
City of Santa Fe Springs
Statement of Activities
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
15 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities
General Government $ 16,710,084 $ 5,482,791 $ 1,542,249 $ 19,077 Public Safety 47,877,040 3,979,605 67,421 -
Community Development 3,056,079 331,480 203,605 -
Public Works 14,478,519 3,816,832 291,412 5,010,650
Culture and Leisure 12,328,174 2,396,951 600,304 -
Human Services 2,776,712 401,758 23,393 -
Interest on Long-Term Debt 369,632 - - -
Total governmental activities 97,596,239 16,409,417 2,728,384 5,029,727 Business-type Activities
Water Enterprise Fund 12,316,335 13,083,670 - -
Total business-type activities 12,316,335 13,083,670 - - Total primary government $ 109,912,574 $ 29,493,087 $ 2,728,384 $ 5,029,727 (Continued)
Program Revenues
Unaudited Draft
City of Santa Fe Springs
Statement of Activities (Continued)
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
16 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities
General Government $ (9,665,967) $ - $ (9,665,967)
Public Safety (43,830,014) - (43,830,014)
Community Development (2,520,994) - (2,520,994)
Public Works (5,359,625) - (5,359,625)
Culture and Leisure (9,330,919) - (9,330,919)
Human Services (2,351,561) - (2,351,561)
Interest on Long-Term Debt (369,632) - (369,632)
Total governmental activities (73,428,711) - (73,428,711) Business-type Activities
Water Fund - 767,335 767,335
Total business-type activities - 767,335 767,335
Total primary government (73,428,711) 767,335 (72,661,376) General revenues and transfers
General revenues
Taxes:

Property Taxes, Levied for General Purpose 6,954,521 - 6,954,521 Transaction and Use Taxes 17,136,698 - 17,136,698
Sales and Use Taxes 38,864,312 - 38,864,312
Franchise Taxes 5,083,306 - 5,083,306
Business Operation Taxes 1,050,357 - 1,050,357
Utility Users Tax 9,095,030 - 9,095,030
Transient Occupancy Taxes 163,831 - 163,831
Intergovernmental Revenues - Motor Vehicle in Lieu 2,915,568 - 2,915,568 Use of Money and Property 8,142,517 24,343 8,166,860
Other 913,265 - 913,265
Transfers - - -
Total general revenues and transfers 90,319,405 24,343 90,343,748 Change in net position 16,890,694 791,678 17,682,372
Net position - beginning of year 223,427,760 25,581,453 249,009,213 Net position - end of year $ 240,318,454 $ 26,373,131 $ 266,691,585 (Concluded)
Net (Expense) Revenue and
Changes in Net Position
Unaudited Draft
City of Santa Fe Springs
Balance Sheet - Governmental Funds
June 30, 2025
See accompanying Notes to Basic Financial Statements.
17 Prefunded Nonmajor Total
Capital Capital Governmental Governmental
General Improvement Projects Funds Funds
ASSETS
Pooled cash and investment $ 68,888,270 $ $ 887,342 28,849,946 $ 28,871,183 $ 127,496,741 Restricted cash with fiscal agent 63,905,951 - - - 63,905,951 Receivables:

Accounts 3,968,920 20,408 - 29,098 4,018,426
Notes and loans, net of allowances 98,683 - - 6,049,137 6,147,820 Leases 21,643,574 - - - 21,643,574
Accrued interest 387,342 - 185,320 549,137 1,121,799
Deposits and other assets 394,492 - - - 394,492
Due from other governments 15,084,718 4,937,682 10,088 1,274,433 21,306,921 Due from other funds 8,684,553 - - - 8,684,553
Advances to other funds - - - 1,437,861 1,437,861
Land and buildings held for resale - - - 520,032 520,032 Total assets $ 183,056,503 $ 5,845,432 $ 29,045,354 $ 38,730,881 $ 256,678,170

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ 4,025,080 $ $ 159,063 68,765 $ 160,588 $ 4,413,496 Accrued liabilities 353,569 19,579 33,854 413,098 820,100 Unearned revenues 1,451,220 - - - 1,451,220
Deposits payable 1,320,867 857,162 - 720 2,178,749
Due to other governments 41,668 3,703 100 - 45,471
Due to other funds - 7,384,255 - 1,300,298 8,684,553
Advances from other funds 1,437,861 - - - 1,437,861
Total liabilities 8,630,265 8,423,762 102,719 1,874,704 19,031,450 Deferred inflows of resources
Unavailable revenue - 4,937,682 10,088 918,721 5,866,491 Deferred leases - related items 20,594,333 - - - 20,594,333 Total deferred inflows of resources 20,594,333 4,937,682 10,088 918,721 26,460,824 Fund balances (deficits)
Nonspendable:

Notes and loans 98,683 - - - 98,683
Deposits and other assets 394,492 - - - 394,492
Permanent fund principal - - - 244,676 244,676
Restriction for:

Pension 31,475,709 - - - 31,475,709
Community development projects - - - 194,818 194,818
Public safety - - - 217,659 217,659
Public works - - - 15,935,167 15,935,167
Capital projects - - - 8,150,733 8,150,733
Low and moderate income housing - - - 9,993,341 9,993,341 Art in public places - - - 2,313,814 2,313,814
Waste management 5,578,272 - - - 5,578,272
Environment programs 510,908 - - - 510,908
Committed to:

Capital projects 225,000 - - - 225,000
Assigned to:

Capital projects 9,132,719 - 28,932,547 - 38,065,266
Renovation and replacement 250,000 - - - 250,000
Economic uncertainty 11,725,000 - - - 11,725,000
Facility improvement 25,193 - - - 25,193
Equipment replacement 9,176,928 - - - 9,176,928
Employee liability 7,377,785 - - - 7,377,785
Risk management 903,200 - - - 903,200
Unassigned 76,958,016 (7,516,012) - (1,112,752) 68,329,252 Total fund balances (deficits) 153,831,905 (7,516,012) 28,932,547 35,937,456 211,185,896 Total liabilities, deferred inflows of
resources, and fund balances $ 183,056,503 $ 5,845,432 $ 29,045,354 $ 38,730,881 $ 256,678,170 (Concluded)

Capital Project Funds
Unaudited Draft
City of Santa Fe Springs
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
See accompanying Notes to Basic Financial Statements.
18 Total fund balances - total governmental funds $ 211,185,896 Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital Assets Not Being Depreciated/Amortized 76,780,105 123,484,583 200,264,688
Bonds, Notes, Lease and SBITA Payable (36,498,058)
Compensated Absences (2,399,358) (38,897,416)
Deferred Outflows of Resources - Pension Related 33,251,286 Deferred Inflows of Resources - Pension Related (1,938,732) Net Pension Liability (146,005,664)
Deferred Outflows of Resources - OPEB Related 6,298,026 Deferred Inflows of Resources - OPEB Related (8,410,148) Net OPEB Liability (20,995,376) (137,800,608)
(300,597)
5,866,491
Net position of governmental activities $ 240,318,454
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.

Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore, are not reported in the fund financial statements.

Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long term, are reported in the Statement of Net Position.

Pension and OPEB related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the Capital Assets Being Depreciated/Amortized,Net (Includes implementation costs incurred for SBITA in the prior years)
Unaudited Draft
City of Santa Fe Springs
Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
19 Low and
Moderate Prefunded
Income Housing Capital Capital
General Assets Fund Improvement Projects

REVENUES
Taxes $ 81,012,420 $ $ $ - -
Licenses and permits 2,209,535 - -
Intergovernmental 769,552 4,945,650 65,000
Charges for services 9,655,896 - -
Use of money and property 3,742,666 61,893 2,092,538
Rentals 3,351,382 - -
Fines and forfeitures 402,541 - -
Contributions 312,796 - -
Miscellaneous 921,306 215,061 -
Total revenues 102,378,094 - 5,222,604 2,157,538

EXPENDITURES
Current
General government 14,340,479 - -
Public safety 43,585,867 - -
Community development 2,128,373 - -
Public works 16,318,223 - 325,662
Culture and leisure 10,927,299 - -
Human services 2,316,815 - -
Capital outlay 12,500,335 7,538,666 6,522,523
Debt service - -
Principal retirement 935,826 - 232,234
Interest and fiscal charges 114,391 - -
Bond issuance costs 725,048 - -
Total expenditures 103,892,656 - 7,538,666 7,080,419

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,514,562) - (2,316,062) (4,922,881)

OTHER FINANCING SOURCES (USES)
Transfers in 1,170,463 - -
Transfers out - - -
SBITA issuance - - 232,234
Issuance of debt 31,810,000 - -
Original issue premium 1,175,261 - -
Total other financing uses 34,155,724 - - 232,234
CHANGES IN FUND BALANCES 32,641,162 - (2,316,062) (4,690,647)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 121,190,743 9,814,905 (5,199,950) 33,623,194
Change within financial reporting entity
(major to nonmajor fund) - (9,814,905) - -
Fund balances (deficits), July 1, as adjusted 121,190,743 - (5,199,950) 33,623,194 End of year $ 153,831,905 $ $ - (7,516,012) $ 28,932,547 (Continued)
Special
Revenue Fund Capital Project Funds
Unaudited Draft
City of Santa Fe Springs
Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds (Continued)
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
20 Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds

REVENUES
Taxes $ $ 250,142 $ 81,262,562
Licenses and permits - 2,209,535
Intergovernmental 5,000,207 10,780,409
Charges for services - 9,655,896
Use of money and property 2,223,743 8,120,840
Rentals - 3,351,382
Fines and forfeitures - 402,541
Contributions 372,282 685,078
Miscellaneous 13,928 1,150,295
Total revenues - 7,860,302 117,618,538

EXPENDITURES
Current
General government - 14,340,479
Public safety 288,684 43,874,551
Community development 556,782 2,685,155
Public works 930,936 17,574,821
Culture and leisure 20,757 10,948,056
Human services - 2,316,815
Capital outlay 1,810,215 28,371,739
Debt service
Principal retirement - 1,168,060
Interest and fiscal charges - 114,391
Interest and fiscal charges - 725,048
Total expenditures - 3,607,374 122,119,115

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - 4,252,928 (4,500,577)

OTHER FINANCING SOURCES (USES)
Transfers in - 1,170,463
Transfers out (1,170,463) (1,170,463)
SBITA issuance - 232,234
Issuance of debt - 31,810,000
Original issue premium - 1,175,261
Total other financing uses - (1,170,463) 33,217,495
CHANGES IN FUND BALANCES - 3,082,465 28,716,918

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 8,267,213 14,772,873 182,468,978
Change within financial reporting entity
(major to nonmajor fund) (8,267,213) 18,082,118 -
Fund balances, July 1, as adjusted - 32,854,991 182,468,978 End of year $ $ - 35,937,456 $ 211,185,896
(Concluded)
Capital Project
Fund
Unaudited Draft
City of Santa Fe Springs
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
21 $ 28,716,918
Amounts reported for governmental activities in the Statement of Activities are different because:

Capital Outlay $ 28,371,739
Depreciation and amortization (1,065,398)
Miscellaneous capital related transactions 1,611,499 28,917,840 Principal Payment 1,168,060
Bond Issuance (31,810,000)
Premium on bond issuance, net of amortization (1,171,343) SBITA Issuance (232,234) (32,045,517)
(259,159)
(502,552)
(9,251,024)
4,445,793
(3,131,605)
Change in net position of governmental activities $ 16,890,694 Changes in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period:
g p g
repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.

Other postemployment benefit expense reported in the governmental funds includes payment of premiums for the current year. In the OPEB expense includes the change in the net other postemployment benefit liability and OPEB related deferred inflows of resources.

Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the revenues in the governmental fund activity.

Compensated absence expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources.

Unaudited Draft
City of Santa Fe Springs
Statement of Net Position - Proprietary Funds
June 30, 2025
See accompanying Notes to Basic Financial Statements.
22 Business-Type
Activities
Water Fund
ASSETS
Current Assets
Pooled cash and investment $ 19,034,875
Restricted cash with fiscal agent 571,146
Receivables:

Accounts 279,718
Accrued interest 2,662
Inventories 26,971
Total current assets 19,915,372
Noncurrent assets
Capital assets not being depreciated or amortized 8,474,483 Capital assets being depreciated or amortized, net 15,800,483 Total noncurrent assets 24,274,966
Total assets 44,190,338

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 5,550
Pensions related 1,192,004
Other postemployment benefits related 524,665
Total deferred outflows of resources 1,722,219
Total assets and deferred outflows of resources $ 45,912,557

LIABILITIES
Current liabilities
Accounts payable 1,216,960
Accrued liabilities 444,980
Accrued interest 43,437
Unearned revenues 413,222
Deposits payable 1,001,724
Compensated absences 65,400
Bonds, notes and lease payable 243,877
Total current liabilities 3,429,600
Noncurrent liabilities
Compensated absences 261,786
Bonds, notes and lease payable 6,725,525
Net other postemployment benefits liability 1,749,046
Net pension liability 6,672,851
Total noncurrent liabilities 15,409,208
Total liabilities 18,838,808

DEFERRED INFLOW OF RESOURCES
Other postemployment benefits related 700,618
Total deferred inflows of resources 700,618
Total liabilities and deferred inflows of resources 19,539,426

NET POSITION
Net investment in capital assets 17,554,991
Unrestricted 8,818,140
Total net position $ 26,373,131

Unaudited Draft
City of Santa Fe Springs
Statement of Revenues, Expenses, and Changes in
Net Position - Proprietary Funds
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
23 Business-Type
Activities
Water Fund

OPERATING REVENUES
Sales and service charges $ 13,043,285
Other water revenue 40,385
Total operating revenues 13,083,670

OPERATING EXPENSES
Source of supply 8,120,675
System maintenance and operation 3,510,115
General administration and billing and collection (277,600) Depreciation and amortization 681,071
Total operating expenses 12,034,261
OPERATING INCOME 1,049,409

NONOPERATING REVENUES (EXPENSES)
Interest revenue 24,343
Interest expense (282,074)
Total nonoperating expenses (257,731)
CHANGE IN NET POSITION 791,678

NET POSITION
Beginning of year 25,581,453
End of the year $ 26,373,131

Unaudited Draft
City of Santa Fe Springs
Statement of Cash Flows - Proprietary Funds
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
24 Business-Type
Activities
Water Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 16,719,905
Cash paid to suppliers and employees for goods and services (14,106,101) Cash received from others 40,385
Net cash provided by operating activities 2,654,189

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES
Acquisition of capital assets (558,009)
Principal paid on capital debt (217,850)
Interest paid on capital debt (271,845)
Cash used in capital financing activities (1,047,704)

CASH FLOW FROM INVESTING ACTIVITY
Interest received 24,343
Cash provided by investing activity 24,343
Net increase in cash and investments 1,630,828

CASH AND INVESTMENTS
Beginning of year 17,975,193
End of year $ 19,606,021

RECONCILIATION OF CASH AND INVESTMENTS

TO THE STATEMENT OF NET POSITION
Pooled cash and investment $ 19,034,875
Restricted cash with fiscal agent 571,146
Total 19,606,021

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
Operating income $ 1,049,409
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation and amortization 681,071
Change in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:

Decrease in accounts receivables 3,676,620
Decrease in inventories 301,182
Decrease in outflows for pensions related 968,147
Decrease in outflows for OPEB related (21,938)
Decrease in accounts payables (111,005)
Increase in accrued liabilities 254,397
Increase in unearned revenues 398,120
Increase in deposits payable 29,393
Increase in compensated absences 68,530
Decrease in net pension liabilities (3,749,563)
Decrease in OPEB liabilities (296,305)
Decrease in inflows for pensions related (112,060)
Decrease in outflows for OPEB related (481,809)
Net cash provided by operating activities $ 2,654,189

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
Amortization of bond discounts and deferred charges $ 17,072 Unaudited Draft
City of Santa Fe Springs
Statement of Fiduciary Net Position
June 30, 2025
See accompanying Notes to Basic Financial Statements.
25 Private-Purpose
Trust Funds
Successor
Custodial Agency of the OPEB Trust
Funds Former RDA Fund
ASSETS
Pooled cash and investment $ $ 897,148 $ 2,073,526 -
Receivables:

Accounts - 19,862 -
Notes and loans, net of allowances - 61,438 -
Accrued interest 4,997 - -
Due from other governments - 424,200 -
Land and buildings held for resale - 3,251,851 -
Restricted assets:

Cash and investment with fiscal agent 174,222 12,531,886 - Investments, at fair value:

Mutual funds - - 3,818,552
Exchange-traded funds - - 30,627,343
Private debt funds - - 2,340,797
Capital assets:

Capital assets not being depreciated or amortized - 415,530 - Total assets 1,076,367 18,778,293 36,786,692

LIABILITIES
Accrued interest - 4,411,877 -
Deposits payable - 49,061 -
Due to other governments - 366,377 -
Long-term liabilities:

Due in one year - 4,040,748 -
Due in more than one year - 18,392,142 -
Total liabilities - 27,297,012 -

NET POSITION
Restricted for OPEB - - 36,786,692
Restricted for other organizations 1,076,367 (8,518,719) - Total net position $ 1,076,367 $ (8,518,719) $ 36,786,692

Unaudited Draft
City of Santa Fe Springs
Statement of Changes in Fiduciary Net Position
Year ended June 30, 2025
See accompanying Notes to Basic Financial Statements.
26 Private-Purpose
Trust Funds
Successor
Custodial Agency of the OPEB Trust
Funds Former RDA Fund

ADDITIONS
Taxes $ - $ 10,192,869 $ -
Special assessments or special taxes collected from
property owners 218,682 - -
Employer contributions - - 32,381,802
Investment earnings, net of investment expenses 55,048 379,010 4,408,232 Total additions 273,730 10,571,879 36,790,034

DEDUCTIONS
Administrative expenses - 350,590 3,342
Program expenses - 93,460 -
Payment for special assessment or special tax debt 167,005 - - Interest expenses - 1,191,014 -
Total deductions 167,005 1,635,064 3,342
CHANGES IN FIDUCIARY NET POSITION 106,725 8,936,815 36,786,692

FIDUCIARY NET POSITION
Beginning of year 969,642 (17,455,534) -
End of the year $ 1,076,367 $ (8,518,719) $ 36,786,692

Unaudited Draft
ITEM # 18

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Julio F. Morales, Director of Finance
SUBJECT: APPROVAL OF THREE (3) YEAR AGREEMENT WITH NEOGOV FOR USE OF VARIOUS

SOFTWARE
DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Approve a three (3) year agreement with NeoGov for the use of various software solutions to complete tasks related to Human Resources functions; and

2. Authorize the City Manager to take any necessary related actions.

FISCAL IMPACT
The total cost for the three (3) year agreement with NeoGov is $80,094, allocated as follows:

Year 1: $25,275
Year 2: $26,676
Year 3: $28,143
Unless otherwise directed, Staff will budget funds for this expenditure in account number 10101135 – 542060 (General Fund – Human Resources – Software Subscriptions).

BACKGROUND
NeoGov Software is a comprehensive human resources (HR) management platform designed for the public sector to streamline and automate the delivery of some HR services. The suite of solutions offered by NEOGOV covers the full employee lifecycle, from recruitment and onboarding to performance management and employee development. For the past five (5) years, the City has used NeoGov locally for:

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Agreement – NeoGov Software Subscription

Recruitment and Applicant Tracking:

NEOGOV automates the recruitment process by providing applicant tracking systems (ATS) that allow HR teams to post job openings, manage applications, screen candidates, and facilitate communication throughout the hiring process. It centralizes all recruitment activities, making it easier to manage and report on applicant data.

Onboarding:

The onboarding module streamlines the process of integrating new hires by automating paperwork, training schedules, and task assignments. New employees can complete forms, review policies, and get up to speed quickly, reducing administrative delays.

Learning Management:

NEOGOV’s learning management system (LMS) allows organizations to deliver, track, and report on employee training and development. It supports compliance training, skill development, and continuing education, all in a single platform.

Compliance and Reporting:

The software includes robust tools for ensuring compliance with federal, state, and local regulations. It automates recordkeeping, audit trails, and reporting, making it easier to demonstrate compliance and avoid costly errors.

NEOGOV Improves Efficiency and Effectiveness in HR Services by doing the following:

Automation of Manual Processes:

By automating tasks such as posting jobs, screening applicants, onboarding, and performance reviews, NEOGOV reduces the time and effort required for routine HR activities, allowing Staff to focus on more strategic work.

Centralization of Data:

NEOGOV consolidates all HR-related data into a single, secure platform. This eliminates data silos, reduces duplication of effort, and provides easy access to accurate, real-time information for decision-making.

Enhanced Communication and Collaboration:

Built-in communication tools and process workflows facilitate better collaboration among HR staff, managers, and employees, ensuring tasks are completed efficiently and with fewer errors.

Improved Candidate and Employee Experience:

User-friendly interfaces and self-service capabilities provide candidates and employees with a seamless experience. Faster response times and easier access to information contribute to higher satisfaction and engagement.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Agreement – NeoGov Software Subscription

Regulatory Compliance:

Automated compliance features help organizations stay up to date with evolving regulations, reducing legal risks, and ensuring best practices are followed.

Actionable Insights:

Comprehensive analytics and reporting tools give HR leaders visibility into key metrics such as time-to-hire, employee turnover, and training completion. These insights enable data-driven decision-making and continuous improvement of HR services.

In summary, NEOGOV Software enhances the efficiency and effectiveness of HR delivery by automating processes, centralizing data, improving compliance, and enabling better decision-making.

This results in significant time savings, reduced administrative overhead, improved employee satisfaction, and a more strategic approach to human resources management.

ANALYSIS
N/A

ENVIRONMENTAL
N/A

DISCUSSION
Staff request authorization of the attached three (3) year agreement with NeoGov for use of their software platform. The proposed agreement covers the continued use of the following services:

Employee Onboarding: An intuitive platform to manage new hire processes, ensuring a smooth transition and improved retention.

Recruitment & Job Posting (GovernmentJobs.com): A comprehensive website for posting job opportunities, reaching a broad pool of qualified candidates.

Application Tracking (Insight): Software to manage applications, track candidates, and facilitate communication throughout the recruitment lifecycle.

Entering into this agreement secures the City's access to these solutions for a fixed cost, providing budget certainty and continuity of service. If the City opts not to agree, NeoGov may adjust pricing annually, with potential cost increases of up to ten (10) percent annually. This could result in significantly higher expenditures over the same period.

As previously mentioned, this software solution has been in use for approximately five (5) years. Staff have received extensive training in using the software, and it has been integrated with other solutions and processes within the City. Pursuing an alternative solution may result in additional direct and indirect costs associated with staff training and integration with other solutions.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Agreement – NeoGov Software Subscription

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia

SUMMARY/NEXT STEPS
Staff recommends approval of the three (3) year agreement with NeoGov to ensure uninterrupted access to essential human resources solutions at a predictable cost and to avoid potential annual price increases.

ATTACHMENT(S):

A. NeoGov – Quote/Order No. Q-476041

THIS IS NOT AN INVOICE
Contract Records Order Details
Account Number:  A-667993 Order #: Q-476041
Customer: Santa Fe Springs, City of (CA) Valid Until: 6/1/2026 Effective Employee Count: 210
Sales Rep:  Renewals Team
Customer Contact
Billing Contact:  Santa Fe Springs, City of (CA) Shipping Contact :  Santa Fe Springs, City of (CA) Elizabeth Ortega Elizabeth Ortega
Billing Address: City of Santa Fe Springs 11710 E. Telegraph Road
Shipping Address: City of Santa Fe Springs 11710 E. Telegraph Road
Santa Fe Springs, CA 90670 Santa Fe Springs, CA 90670
Billing Contact Email:  [email protected] Shipping Contact Email:  [email protected] Billing Phone:  5624097530 Shipping Phone:  5624097530
Payment Terms
Payment Term: Net 60 Notes:

PO Number:

Subscription Service
July 2026
Item Type Start Date End Date Qty. License Type Total (USD) Onboard Subscription Recurring 7/1/2026 6/30/2027 210 Employee Based
$10,011.88
Governmentjobs.com Subscription Recurring 7/1/2026 6/30/2027 210 Employee Based
$2,155.85
Insight Subscription Recurring 7/1/2026 6/30/2027 210 Employee Based
$13,106.95
July 2026 TOTAL: $25,274.68
July 2027
Item Type Start Date End Date Qty. License Type Total (USD) Onboard Subscription Recurring 7/1/2027 6/30/2028 210 Employee Based
$10,562.53
Governmentjobs.com Subscription Recurring 7/1/2027 6/30/2028 210 Employee Based
$2,285.20
Insight Subscription Recurring 7/1/2027 6/30/2028 210 Employee Based
$13,827.83
July 2027 TOTAL: $26,675.56

July 2027
Item Type Start Date End Date Qty. License Type Total (USD) Onboard Subscription Recurring 7/1/2028 6/30/2029 210 Employee Based
$11,143.47
Governmentjobs.com Subscription Recurring 7/1/2028 6/30/2029 210 Employee Based
$2,410.89
Insight Subscription Recurring 7/1/2028 6/30/2029 210 Employee Based
$14,588.36
July 2027 TOTAL: $28,142.72
This price does NOT include any sales tax. Total in USD Additional Terms and Conditions
License Terms: Enterprise license denotes that Customer has purchased an enterprise wide license up to the employee count specified above.

User based license denotes that Customer has purchased the number of licenses set forth in the quantity column. Item count denotes the number of items that Customer has licensed as set forth in the quantity column.

Payment Terms: All invoices issued hereunder are due upon the invoice due date. If the Order is for a period longer than one year, the fees for the first period shown shall be invoiced immediately and the fees for future years/periods shall be invoiced annually in advance of each 12 month period shown on the Order, but regardless of the billing cycle, Customer is responsible for the fees for the entire Order. The fees set forth in this Service Order are exclusive of all applicable taxes, levies, or duties imposed by taxing authorities and Customer shall be responsible for payment of any such applicable taxes, levies, or duties. All payment obligations are non-cancellable, and all fees paid are non-refundable. Payment for services ordered hereunder shall be made to Governmentjobs.com, Inc., (D/B/A NEOGOV).

Terms & Conditions: This Order Form creates a legally binding contract on the parties. Unless otherwise agreed in a written agreement between GovernmentJobs.com, Inc. (D/B/A/ NEOGOV), parent company of PowerDMS, Inc., Cuehit, Inc., Ragnasoft LLC (D/B/A/ PlanIT Schedule), and Design PD, LLC (D/B/A Agency360) (collectively, “NEOGOV”) and Customer, this Order Form and the services to be furnished pursuant to this Order Form are subject to the terms and conditions set forth here: https://www.neogov.com/service-specifications. The Effective Date (as defined in the terms and conditions) shall be the Subscription Start Date.

Find a copy of our W-9 here.

Special Condition:

Your signature below constitutes acceptance of terms herein and contractual commitment to purchase the items listed above.

Accepted and Agreed By Authorized Representative of:

Santa Fe Springs, City of (CA)
Signature:

Printed Name:

Title:

Date
THE INFORMATION AND PRICING CONTAINED IN THIS ORDER FORM IS STRICTLY CONFIDENTIAL.

ITEM # 19

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: DECLARATION OF A PORTION OF CITY-OWNED PROPERTY (APN: 8008-029-901)

LOCATED IN THE CITY OF SANTA FE SPRINGS AS SURPLUS LAND DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Find that this action is exempt from environmental review under the California Environmental Quality Act (“CEQA”); and

2. Adopt Resolution No. 10019, declaring a portion of real property owned by the City of Santa Fe Springs (“City”) as surplus land and not necessary for the agency‘s use pursuant to the Surplus Land Act (Gov. Code § 54220 et seq.); and

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

FISCAL IMPACT
The fiscal impact on the City is unknown at this time. The cost of compliance with the Surplus Land Act (“Act”) is not currently known. The City must notify various governmental entities and affordable housing developers about the availability of the surplus land. This statutory notification is intended to allow these parties to express interest in acquiring the land. The cost to notify local public agencies is minimal. However, depending on the number of responses to the notice of availability, City staff and consultants may need to spend multiple hours, possibly negotiating with multiple entities. The sale of the property, for a price unknown at this time, would result in a financial benefit to the City.

BACKGROUND
The Act requires cities to declare property as “surplus” or “surplus exempt” before selling or leasing it, as defined in the Act, and prohibits negotiations before completing required procedures. Surplus land is publicly owned property no longer needed for the agency’s use, as defined.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Declaring a Portion of City-Owned Property (APN: 8008-029-901) as Surplus Land

In an effort to spur affordable housing production, in 2019, Assembly Bill (AB) 1486 substantially amended the Act to require public agencies to offer affordable housing developers and other government entities the first right of refusal on surplus properties for the development of affordable housing or other government uses. The Act requires cities to distribute a Notice of Availability for no less than 60 days and engage in a 90-day good-faith negotiation period with developers that commit to the minimum affordable housing requirements.

ANALYSIS
N/A

ENVIRONMENTAL
The proposed action is exempt from the California Environmental Quality Act (Pub. Res. Code § 21000 et seq.) (“CEQA”) pursuant to the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption) and 15312, Class 12 (Surplus Government Property Sales).

DISCUSSION
The City owns real property located on the west side of Pioneer Boulevard approximately 300 feet south of Telegraph Road, comprised of a single parcel (APN: 8008-029-901). The approximately four and a quarter acre site has a General Plan land use designation of Public Facilities and a zoning designation of PF-D (Public Use Facilities – Design Overlay).

It is important to note that the City is declaring a portion of the site, currently occupied by the City’s Community Garden (the “Property”) as surplus. The City is in the process of identifying new locations within the City to relocate the Community Garden. Although the Property is currently part of a larger parcel (APN: 8008-029-901), it will be legally subdivided upon disposition. Adoption of Resolution No. 10019 would declare that the Property is no longer needed for the City’s use and would initiate the process required under the Act for disposition of the Property.

California Geologic Energy Management Division (CalGEM) records indicate the Property contains two (2) oil and gas wells that were previously plugged and abandoned in accordance with applicable regulatory standards in effect at the time of closure. Based on available records, the wells are no longer active and do not support ongoing extraction activities. However, the wells may need to be reabandoned to comply with current CalGEM standards.

SUMMARY/NEXT STEPS
Before selling or leasing surplus land, the City must first declare it as surplus and offer it to eligible entities, including housing developers and public agencies, for affordable housing, parks, or open space. Under the Act, the City must notify these entities, including local public agencies, housing developers, Los Angeles County, regional park authorities, the State Resources Agency, and the local school district.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Declaring a Portion of City-Owned Property (APN: 8008-029-901) as Surplus Land

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
Interested entities must respond within 60 days, after which the City must negotiate in good faith for 90 days. If no responses are received, the City may proceed with private negotiations. If multiple entities express interest, priority is given to those proposing affordable housing. If no agreement is reached after the 90-day negotiation period, the City may dispose of the land without further obligations under the Act.

ATTACHMENTS:

A. Attachment A – Site Aerial
B. Attachment B – Resolution No. 10019
Attachment A – Site Aerial
RESOLUTION NO. 10019

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA FE SPRINGS DECLARING A
PORTION OF CITY-OWNED PROPERTY (APN:
8008-029-901) AS SURPLUS LAND
WHEREAS, the City of Santa Fe Springs (“City”) is the owner in fee simple of certain real property identified as APN 8008-029-901 (“Property”); and WHEREAS, under the California Surplus Land Act (Gov. Code § 54220 et seq.) (“Act”), surplus land is defined as land owned by an agency for which the agency takes formal action in a regular public meeting declaring the land as surplus and not necessary for the agency’s use; and
WHEREAS, the Property is subject to the provisions of the Act; and WHEREAS, the southerly portion of the Property has been historically used as a community garden with 120 individual parcels for rent; and WHEREAS, recent surveys by City staff have found that 59 of the 120 parcels are not leased, used or are otherwise vacant or abandoned, leading the Subject Site to be underutilized; and
WHEREAS, the City drafted a Parks, Recreation, and Community Services Master Plan (“Master Plan”) that sets out the long-range planning and forecast for the City’s recreational facilities, which reflects community feedback provided through community workshops, focus group meetings, pop-up events, a statistically valid survey, and project website; and
WHEREAS, the Master Plan recommends considering opportunities to enhance, expand, relocate or otherwise modify the City’s Community Garden Program based on community needs, participation levels, and broader priorities; and WHEREAS, such action is consistent with Policy COS-2.8 of the City’s Conservation and Open Space Element, part of the City’s General Plan, which recommends hosting the City’s Community Garden Program in convenient locations to ensure participation; and
WHEREAS, the City desires to relocate its Community Garden Program to various recreational facilities throughout the City to maximize residents’ opportunities for access to the Program; and
WHEREAS, the City Council adopted the Master Plan through the adoption of Resolution No. 10022; and
WHEREAS, the City desires to designate as surplus land that portion of the Property delineated in the plat attached as Exhibit “A” (hereinafter the “Subject Premises”). The Subject Premises contains a land area of approximately 83,142 square feet, more or less; and
WHEREAS, the City’s Subject Premises is no longer required for the “agency’s use” as defined by the Act; and
WHEREAS, the City Council desires to declare the Subject Premises as surplus land and no longer necessary for the agency’s use and initiate the process required under the Act for potential lease, sale, or other disposition of lease of the Subject Premises.

NOW, THEREFORE, the City Council of the City of Santa Fe Springs does hereby find, determine, declare, order, and resolve as follows:

SECTION 1. The foregoing recitals are true and correct and incorporated herein by reference.

SECTION 2. The City Council finds and determines that the public interest is best served by the disposal of the Subject Premises and, as such, hereby declares that the Subject Premises is surplus and no longer necessary for the City’s use.

SECTION 3. The designation of the Subject Premises as surplus is exempt from the California Environmental Quality Act (Pub. Res. Code § 21000 et seq.) (“CEQA”) pursuant to the State CEQA Guidelines (Cal. Code Regs., tit. 14., § 15000 et seq.) Section 15061(b)(3) (Common Sense Exemption) because the declaration of surplus land is an administrative action that does not authorize construction or development, and any future development of the Subject Premises will be subject to environmental review under CEQA, as applicable. This action is further exempt by Section 15312, Class 12 (Surplus Government Property Sales) because the Subject Premises is not located within an area of statewide concern, the Subject Premises has no environmental or wildlife habitat value, and the sale of the Subject Premises also qualifies for an exemption pursuant to CEQA Guidelines Section 15061(b)(3). Therefore, no further environmental review is required at this time.

SECTION 4. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution in accordance with the requirements of the Act, including the lease, sale, or other disposition of the Subject Premises, as applicable.

SECTION 5. If any section, subsection, clause, or phrase of this Resolution is for any reason held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of the Resolution; it being hereby expressly declared that this Resolution, and each section, subsection, sentence, clause, and phrase hereof, would have been prepared, proposed, adopted, approved, and ratified irrespective of the fact that any single section subsection, sentence, clause, or phrases be declared invalid or unconstitutional.

SECTION 6. This Resolution shall take effect immediately upon its passage by the City Council, and the City Clerk shall attest to and certify the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Santa Fe Springs at a regular meeting on this 16th day of June, 2026. ___________________________
Joe Angel Zamora, Mayor
ATTEST:
____________________________
Maribel Garcia, City Clerk
APPROVED AS TO FORM:
____________________________
Rick R. Olivarez, City Attorney
Exhibit A – Exhibit Plat

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.

CITY OF SANTA FE SPRINGS )
I, Maribel Garcia, City Clerk of the City of Santa Fe Springs, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 16th day of June, 2026, and was carried by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_________________________
Maribel Garcia, City Clerk

ITEM # 20

CITY OF SANTA FE SPRINGS

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: AUTHORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICE

AGREEMENT WITH DEODATE FOR REGIONAL MULTI-JURISDICTION
COALITION (BIG 4) TO PROMOTE LEGISTLATIVE INIATIVES TO FURTHER ECONOMIC DEVELOPMENT AND KEY POLICY OBJECTIVES.

DATE: June 16, 2026

RECOMMENDATION(S)
It is recommended that the City Council:
1) Approve a Professional Services Agreement (PSA) with Deodate Corporation (“Consultant”), in the amount not to exceed Three Hundred Four Thousand Five Hundred Dollars ($304,500) to provide Phase 1 Internal and External Strategic Communication Services for the Regional Multi-Jurisdictional Coalition (“Big 4”); and
2) Authorize the City Manager to execute the Professional Service Agreement and any nonsubstantive documents necessary to implement the agreement.

FISCAL IMPACT
The total contract amount is $304,500. Santa Fe Springs' share of the cost is approximately $76,125.

As the lead administrative agency for the Coalition, the City will initially administer and process consultant payments and will seek reimbursement from participating agencies for their respective shared cost.

BACKGROUND/DISCUSSION
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 16, 2026
PSA with Deodate for Big 4

The Regional Multi-Jurisdictional Coalition (“Big 4”) was established to strengthen regional collaboration among participating jurisdictions through coordinated communication, strategic engagement, and unified messaging on issues of regional significance. The Coalition was formed to advance regional economic development efforts, strengthen interagency collaboration, and elevate the region’s collective presence through coordinated initiatives, outreach, and engagement opportunities.

As part of its regional efforts, the Coalition has undertaken activities to support the launch and advancement of the Big 4 initiative, including stakeholder engagement, regional summits, economic development outreach, and participation in industry conferences and marketing opportunities such as the International Council of Shopping Centers (ICSC) conference, I.CON West, and other collaborative initiatives intended to strengthen regional visibility, business attraction, and partnership opportunities.

To support these efforts, Deodate Corporation (“Consultant”) has assisted the City and Coalition with strategic economic development services associated with Coalition activities and regional initiatives.

The Consultant’s efforts to date have included economic development strategy, business attraction support, site and market analysis, coordination related to the launch of the Big 4 initiative, participation in regional summits, support for economic development outreach efforts, and assistance with industry conferences and events, including ICSC and I.CON West.

The proposed PSA formalizes the Consultant’s Phase 1 scope of work, compensation, and responsibilities associated with these ongoing regional communication and economic development efforts.

ANALYSIS
The proposed Professional Services Agreement (“PSA”) with Deodate Corporation (“Consultant”) will formalize the Consultant’s role in providing Phase 1 Internal and External Strategic Communication Services in support of the Regional Multi-Jurisdictional Coalition (“Big 4”).

The consultant has been actively involved in supporting the development and implementation of the Big 4 initiative and possesses familiarity with the coalition’s ongoing regional efforts. The consultant has experience supporting regional collaboration initiatives and has developed institutional knowledge of the Coalition’s objectives, participating agencies, stakeholder groups, and ongoing initiatives. Formalizing these services through the proposed PSA will ensure consultant responsibilities are clearly documented and project expectations, deliverables, compensation, and performance responsibilities are clearly defined.

Approval of the proposed agreement and supporting documents is consistent with the Coalition’s objective of enhancing regional collaboration, coordinated communication, stakeholder engagement, and economic development efforts.

ENVIRONMENTAL
The proposed action is not subject to the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the State CEQA Guidelines because approval of the Professional Services Agreement for strategic communication services is an administrative activity that will not CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 16, 2026
PSA with Deodate for Big 4

result in a direct or reasonably foreseeable indirect physical change in the environment. Therefore, the proposed action is not considered a “project” under CEQA.

SUMMARY/NEXT STEPS
Upon City Council approval, the City Manager will execute the Professional Services Agreement with Deodate Corporation (“Consultant”) and the Consultant will initiate Phase 1 Internal and External Strategic Communication Services in accordance with the approved scope of work and project timeline.

ATTACHMENT(S):

1. Professional Service Agreement with Deodate Corporation Exhibit A – Consultant Proposal
Exhibit B – Phase Fee Schedule
Exhibit C – Phase 1 Scope of Work
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 16, 2026
PSA with Deodate for Big 4

ATTACHMENT 1 –

PROFESSIONAL SERVICE AGREEMENT DEODATE CORPORATION
EXHIBIT A - Consultant Proposal
EXHIBIT B - Phase 1 Fee Schedule
EXHIBIT C – Phase 1 Scope of Work

D E O D A T E
1 www.DEODATECORP.com
EXHIBIT A:

Rodrigo Gonzalez, MBA
CEO & Managing Partner

DEODATE CORPORATION
975 S Fair Oaks Ave
Pasadena, CA 91105
UPDATED: April 11, 2025
Rene Bobadilla
City Manager
City of Santa Fe Springs
11710 E. Telegraph Road
Santa Fe Springs, CA 90670
E1: On-Call City-Wide Real Estate Program Management Services Rene:

Thank you for your time in discussing the City of Santa Fe Springs’ (City, Client) current growth plans and desired optimization for the city’s real estate initiatives during our discussions on March 25, 2025.

Our municipal real estate process which included real estate program management for the Metro Gold Line (90+ transactions with over $120M in value), real estate strategy for the Los Angeles Community College District, and negotiation, valuation and transactional management and strategy with SoCalGas, LAWA, State of California Department of General Services, Los Angeles County, City of Baltimore Maryland, State of Illinois Office of Economic Development, etc. Since 2013 we have participated in complex real estate, facilities and property-related engagements. Additionally, we have experience in surplus land act processes (as discussed in our meeting, in 2024 we completed the successful management of a Surplus Land Act (SLA) process that achieved approval for disposition by HCD on its first try and in less than six months).

This work is managed and executed by a robust team which today is one of the largest real-estate management consulting groups in the Western US.

ABOUT DEODATE:

DEODATE is a management consulting firm in corporate real estate strategy, portfolio management, real estate operations, and transactional strategy.

DEODATE has represented Fortune/Global 500, mid-cap companies, national food groups, life science conglomerates, corporate developers, individual investors and operators, government, and non-profit organizations, in over $5-Billion dollars of project strategy/project management, real estate strategy consulting and transactional/brokerage services in the Western, Southeast, Mid-Atlantic, and Midwest states as well as representation of global clients headquartered in Europe and Asia. DEODATE is based in Pasadena (Los Angeles) with offices in Kansas City, MO and Monterrey Mexico.

Annually DEODATE carries approximately $749M of corporate real estate operating and investment assets under advisory (C-AUA). DEODATE also has direct management, acquisition, and disposition responsibilities for approximately $490M in total corporate assets under management (C-AUM).

D E O D A T E
2 www.DEODATECORP.com

TERM OF AGREEMENT
One year, commencing upon date of mutual execution. Unless otherwise notified by either party. This term shall renew automatically upon the oneyear mark.

PROPOSED SCOPE OF WORK: Client understands that Program Management is an all-inclusive function encompassing all City-owned and City-leased sites, strategic sites not owned by the City and privately held lots to be optimized for the improvement of the City’s profile, tax base and economic development initiatives. The following is a focused list of suggested initiatives to be led by DEODATE (albeit not allinclusive of DEODATEs offerings) that would address current and upcoming real estate needs for the City:
o TASK 1: Real Estate Portfolio Analysis (City/Private Owned): Analyze all critical real estate needs, including all current portfolio properties • Work with a team to catalogue all properties
• In coordination with City leadership, identify the highest priority sites and develop strategies for optimizing assets • Assist in analyzing maximization of tax revenue by way of land/asset utilization • Catalogue, analyze and create strategies for privately held (non-City owned) assets (sale/not for sale) • Lead communication efforts with current and potential development partners • Lead communication efforts with current and potential operators (companies) and utilizers of land within City • Assistance and resourcing communication with strategic partners (current operators, tenants and owners) as it pertains to real estate utilization and optimization with City limits.
o TASK 2: Site/Portfolio Related Economic Development: Resource the City with site-related economic development tools • Site analysis including zoning, land use, economic development, another • Economic analysis of site acquisition, including market rates and strategic acquisition strategies • Develop developer interest strategy
• Develop tenant interest strategy
• ICSC Strategy:
o Create and manage tools for City focused on Economic Development and for use at external events (ICSC and others) o Assist city in communication strategy (including visuals) for sites to be discussed at ICSC o Pre-Event site discussion with developer and retailers o Meeting coordination for City officials at ICSC
o Post event follow up strategy
• Creation of business attraction program to City real estate (owned and not owned):
o Focus on property related incentive formulation and communication o Push/Pull strategy for target companies
o Creation of associated visuals
o Activation of landlord and brokerage community for communication of program o TASK 3: Acquisition strategy and management
• Draft, implement and manage acquisition initiatives for sites identified in Task 3 • Manage diligence process and vetting of sites
• Manage escrow, title and closeout
o TASK 4: Agency Communication Management: Draft, execute and manage strategy for Agency communications (City with other government agencies) pertaining to land utilization and land related issues. • Lead negotiations with Caltrans, State, and other related issues pertaining to I-5 surplus land • Lead negotiations with HCD on any issues related to Surplus Land Act • Lead negotiations with Los Angele County District Consolidated Oversight Board (Successor Agency) on any items related to CRA (prior) sites.
• Lead negotiations with other agencies as needed
o TASK 5: Internal Right of Way (ROW) Program Management: Act as extension of City team to oversee right of way acquisition efforts. • Create and manage ROW program
• Assist in the forming and management of ROW program team (ROW agents, Appraisal, Relocation, Condemnation Counsel, others as needed).
• Manage team towards successful execution of any necessary City acquisitions

D E O D A T E
3 www.DEODATECORP.com
o Other Potential Strategies: The following are typical City-specific engagements that could be provided to City:
• Retail Gap Analysis
• Soft LOI engagement by site
• Developer survey of City sites (owned and other)
• Tenant survey of City sites (owned and other)
• Financial analysis of various tax generating initiatives • Housing analysis
• Disposition management
PROPOSED SCHEDULE AND COST PROPOSAL1:

The following schedule assumes a kick-off date in April 2025. The delivery schedule may be shifted or altered upon mutual agreement. Delivery of the items in a compressed period may require additional staff support and associated updates to the overall cost proposal. The engagement schedule is structured as a retainer agreement with task orders as follows:
• TASK 1: Strategy creation and implementation: 8 weeks; negotiation and other work, ongoing • TASK 2: Strategy creation and implementation 4-8 weeks; negotiation and other work, ongoing • TASK 3: Strategy creation and implementation 8-12 weeks; negotiation and other work, ongoing • Total for initial drafting and implementation of Tasks 1-3: 12 Weeks • TASK 4-5: Varied.

Estimated Project Cost: Total initial drafting and implementation of Tasks 1-5 engagement will range between: $37,312.50-$49,651.50 (not to exceed) Client shall be billed on a monthly basis in tenths of an hour (6-min intervals) increments and client shall make payment of undisputed invoices on a net30 day payment schedule (payment via ACH or Check). DEODATE 2024 rates range from $156.25 to $476.50/hr and will increase in July 20252 .
• TASK 1-3: $37,312.50-$49,651.50 total or $12,437.50-$16,550.50/month • TASK 4: TBD Billed monthly based on DEODATE hourly rates but to be approved prior to activating Task Order. • TASK 5: TBD Billed monthly based on DEODATE hourly rates but to be approved prior to activating Task Order. • OTHER TASKS : TBD based on mutually agreed upon task order. Billed monthly based on DEODATE hourly rates but to be approved prior to activating Task Order.

OTHER CONSIDERATIONS:
• DEODATE shall make all efforts to maintain consulting expenses low for the client. DEODATE bills on 1/10th of an hour intervals (every 6 minutes).
• Fee not inclusive of travel costs.
o DEODATE travel policy includes approved economy flight travel and Federal contracting lodging limits. o Mileage reimbursement per consultant – DEODATE charges ½ hour for travel under 30 miles, each way, and one hour for travel between 30-60 miles, two hours, each way, for all travel between 61-100 miles and four hours, each way for all travel more than 100 miles. Travel over 100 miles will be charged a full eight (8) hour billed the higher of eight full hours or the total amount of time spent with the client, not including pre-travel preparation time. DEODATE offices in Pasadena are the starting point for all mileage calculations. Please see below for air travel policies. o Flight travel day hours billed shall be capped at eight (8) hours on weekday travel days and four (4) hours (unless travel time exceeds four hours, in which case it will be adjusted to total travel time) on weekend travel days, per consultant. ▪ Hour allocations shall be eight (8) on full days spent working during travel unless travel is on the same day as a full travel workday, in which case four (4) hours of travel times shall be added. o One-day turnaround trips will be a minimum of eight (8) hours per consultant. • Meetings scheduled but cancelled or shortened by client will be billed at full scheduled time. • Reimbursements for Services and Travel Days:
o The Contractor will be reimbursed from time to time for Client approved and reasonable and necessary expenses incurred by the Contractor in connection with providing the Services under this Agreement. o Meal reimbursement shall be capped at $45/day, per consultant. 1 Fee schedule is not inclusive of third-party consultants. Rates subject to annual escalation. 2 DEODATE Corporation adjusts its service rates annually, with any increase not to exceed five percent (5%) of the prior fiscal year’s rate (measured from July 1 through June 30). The projected rate adjustment for the 2025–2026 fiscal year is 3.75%, based on a composite analysis of the trailing twelve-month Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics, broader macroeconomic conditions, internal compensation adjustments, and prevailing market comparables.

D E O D A T E
4 www.DEODATECORP.com
DEODATE GROUP MAKEUP:

ABOUT ENGAGEMENT EXECUTIVE – RODRIGO GONZALEZ:

This engagement will be led by Rodrigo Gonzalez, CEO & Managing Partner of DEODATE. Rodrigo is a Member the Young President’s Organization (YPO), the Pension Real Estate Association (PREA), Fellow of the National Association of Investment Companies (NAIC) Next Generation Private Equity Firm Program, and member of Real Estate Executives Forum (REEF).

Rodrigo is a past member of the Urban Land Institute, serving on the Los Angeles Chapter Technical Assistance Panel and Urban Marketplace committees, CoreNet Global Association of Corporate Real Estate, and the International Council of Shopping Centers (ICSC).

For his efforts, Rodrigo Gonzalez is a multiple year Los Angeles Business Journal Commercial Real Estate Symposium and Awards Brokerage Executive of the Year Nominee. DEODATE was also a Globest.com 2023 Retail Influencer of the year organization.

Rodrigo is also founding President of the Board of Directors for the Our Lady Queen of Angeles Housing Alliance, the inaugural housing authority for the Archdiocese of Los Angeles.

Rodrigo received his master’s degree in business administration (MBA) from the Pepperdine University School of Business & Management and his Bachelor of Arts (BA) from the University of California, Irvine and has completed programs in Real Estate Private Equity Finance from New York University’s (NYU) Schack Institute of Real Estate, enterprise scaling from Stanford University and construction management from Columbia University’s College of Engineering. Rodrigo is a California Bureau of Real Estate broker.

ABOUT DEODATE:

All DEODATE Senior Associates (and up) possess at least five years’ relevant experience in real estate finance, real estate transactional strategy, corporate real estate, and land use. To read team bios and background, please click on the following link: https://www.deodatecorp.com/leadership.

Engagement Leads in Blue.

DEODATE Consulting Group
• Rodrigo Gonzalez, MBA, Managing Partner, Head of Strategy – MBA Pepperdine University, BA UC Irvine. Construction Management and Real Estate Finance Training, Columbia University and NYU Respectively. CA Corporate Broker. 20+ Years experience. $476.50/hr • Mauricio Nunez, MBA, Managing Director, Head of Consulting – MBA & BS Pepperdine University. Private Equity Finance Certificate, University of Pennsylvania, Wharton School of Business. CA Licensed Agent. $393.75/hr • Javier Lemarroy, Vice President, DEODATE LATAM – BS, Tecnológico de Monterrey. 10+ years in industry. Transactional capacity in Mexican republic. $225.25/hr
• Tamar Saunders, Ms, Housing Lead – MA, UC Berkeley, BS Princeton University. 10+ years in industry. $255.75/hr • Alexander Teems, Sr. Industry Consultant, Logistics and Transportation – BS Washington State University. $225.25/hr • Tony June, MSRE, Vice President, Commercial Real Estate Group Lead – Masters in Real Estate Pepperdine University Real Estate Institute, Masters in Entrepreneurship USC. CA Licensed Broker. $255.75/hr • Rami Chehabi, MBA, Associate Vice President, Commercial Real Estate Group – Master’s in Business Administration, UC Irvine.

Certificate in Construction Management, LSU. CA Licensed Agent. $225.25/hr • Forrest Spoon-Sadlon, MsBM – Sr. Associate, Consulting – Masters in Business Management & BS, Loyola Marymount University.

Certificate in Real Estate Finance, ACRE. CA Licensed Agent. $195.75/hr • Max Esquivel, Associate, Commercial Real Estate Group – BS USC. CA Licensed Agent. $175.95/hr • Michael Guzman – Sr. Associate, Consulting – BS, Loyola-Chicago. Real Estate Finance training. $175.95/hr • Mariano Gonzalez, III – Support Team, Consulting & Transactional – BS Azusa Pacific University. CA Licensed Agent.$156.25/hr DEODATE Construction Management Group

D E O D A T E
5 www.DEODATECORP.com
• Elias Rodriguez, Vice President and Chief of Staff, Construction Management Lead – BS University of San Diego. Construction Management Certificate, Columbia University. CA Licensed Agent. $285.75/hr • Greg Koselke, Vice President, Construction Management Lead – BS Purdue University. Lead CM-Schedule. $275.75/hr • Joshua Drew, Vice President, Construction Management – Hospitality – Lead consultant in kitchen, commissary, restaurant and hospitality program and construction management. 15+ years in industry. $275.75/hr • Jose Gomez, Sr. Industry Consultant – Construction Management – Food Grade Industrial. $355.75/hr • Steve Yetemian, Sr. Industry Consultant – Construction Management – Cost Controls. MsCM & BS, California State University Fullerton. $275.75/hr
• Kasandra Sanchez, Sr. Industry Consultant – Construction Management – Project Management & Expediting. $243.75/hr • Hernan Hernandez, MsRE, Sr. Consultant – Contractor Management and Project Management. $176.95/hr All expenses must be pre-approved by the Client. Consulting fees are subject to reasonable and mutually agreed upon annual adjustments. The client must approve all travel expenses prior to travel. Either party may terminate this agreement at any time, for any reason given to the other party with notice by email in writing.

Thank you in advance for your ongoing trust and for your business. Delivery of individual items can be coordinated with Mr. Gonzalez upon request.

Respectfully,
Rodrigo Gonzalez, MBA
Managing Partner
AGREED AND ACCEPTED THIS _________ DAY OF ___________________________, 2025.

By: ____________________________________
Name: ______________________________________Title: ___________________________________

EXHIBIT B
FEE SCHEDULE – PHASE 1

DEODATE CORPORATION
Phase 1 Compensation (Not-to-Exceed Amount): $304,500.00 Compensation for Phase 1 services shall be based upon completion of milestone tasks and associated deliverables identified below. Consultant may invoice monthly for work completed under the applicable task order(s), supported by detailed time logs and documentation of services rendered. The fee schedule below reflects actual Phase 1 services invoiced to the City of Santa Fe Springs and is organized by service month, milestone, deliverable, and staff hourly rate for auditing and funding purposes.

Phase 1 services reflect work completed between August 2025 and February 2026 and are subject to the Phase 1 not-to-exceed amount of $304,500.00 MILESTONE 1 – ECONOMIC DEVELOPMENT

STRATEGY, PROJECT INITIATION & BUSINESS

OUTREACH
Service Month: August 2025
Scope of Services
• Project kickoff and implementation coordination
• Economic development planning and strategy support
• Business and stakeholder outreach
• Initial market and opportunity analysis
• Coordination with City staff and project partners
Deliverables
• Project initiation and coordination meetings
• Economic development implementation support
• Business outreach and engagement activities
• Preliminary market and opportunity assessments
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • Support Staff / Analysts: $175.95/hr. – $285.75/hr.

MILESTONE 2 – MARKET ANALYSIS, STAKEHOLDER

ENGAGEMENT & STRATEGIC COORDINATION
Service Month: September 2025
Scope of Services
• Economic and market research and analysis
• Stakeholder engagement and communications
• Coordination with regional and industry partners
• Event preparation and logistics support
• Ongoing City coordination and strategic planning
Deliverables
• Market analysis support materials
• Stakeholder outreach and engagement summaries
• Strategic coordination meetings and recommendations
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • Support Staff / Analysts: $175.95/hr. – $285.75/hr.

MILESTONE 3 – ECONOMIC DEVELOPMENT

PLANNING, DELIVERABLES & EVENT

COORDINATION
Service Month: October 2025
Scope of Services
• Economic development event planning and implementation • Business and industry engagement coordination
• Speaker and panel coordination
• Preparation of presentations, memoranda, and communication materials • Technical and strategic support to City staff
Deliverables
• Event coordination and implementation support
• Presentation materials and memoranda
• Stakeholder engagement and follow-up support
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • Tamar Saunders – Policy Research: $332.75/hr.
• Support Staff / Analysts: $175.95/hr.– $285.75/hr.

MILESTONE 4 – BIG 4 / BIG 5 ECONOMIC

DEVELOPMENT STRATEGY SUPPORT
Service Month: November 2025
Scope of Services
• SB1 strategy analysis and narrative development
• Economic and policy analysis
• Regional coordination and stakeholder engagement
• Preparation of economic development materials and strategy support Deliverables
• SB1 and economic development strategy materials
• Regional coordination support
• Technical memoranda and supporting materials
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • S. Kennedy – Project Management / Coordination: $285.75/hr. • H. Williams – Research & Project Support: $175.95/hr.

MILESTONE 5 – BIG 4 REGIONAL ECONOMIC

DEVELOPMENT & TECHNICAL ANALYSIS
Service Month: December 2025
Scope of Services
• Regional economic development coordination
• Technical and policy analysis
• Data collection, benchmarking, and memorandum preparation • Participation in regional meetings and strategy sessions • Big 4 implementation support
Deliverables
• Technical memoranda and benchmarking materials
• Regional coordination and implementation support
• Strategic economic development recommendations
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • Tamar Saunders – Policy Research: $332.75/hr.
• E. Rodriguez – Planning / Permitting Analysis: $285.75/hr. • S. Kennedy – Project Management / Coordination: $285.75/hr. • F. Spoon – Data & Revenue Analysis: $195.75/hr.
• H. Williams – Research & Project Support: $175.95/hr. • M. Guzman – Research & Mapping Support: $175.95/hr.
• M. Sims – Research & Technical Support: $175.95/hr.
• C. Perla – Mapping / GIS Support: $175.95/hr.

MILESTONE 6 – SITE-SPECIFIC ECONOMIC

DEVELOPMENT SUPPORT & FOLLOW-UP

ACTIVITIES
Service Month: December 2025
Scope of Services
• Site-specific economic development support
• Property and ownership research
• Follow-up coordination and implementation assistance
Deliverables
• Site research and due diligence support
• Property and ownership information analysis
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • M. Esquivel – Property Research Support: $175.95/hr.
• K. Lauterman – Field Research / Site Documentation: $175.95/hr.

MILESTONE 7 – BIG 4 ECONOMIC & REAL ESTATE

STRATEGY IMPLEMENTATION
Service Month: January 2026
Scope of Services
• Real estate portfolio analysis and prioritization
• Economic development strategy implementation
• Site feasibility and permitting coordination
• Regional strategy meetings and technical analysis
• Coordination with City leadership and project partners Deliverables
• Real estate and permitting analysis support
• Site prioritization and implementation strategies
• Technical memoranda and meeting coordination
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • E. Rodriguez – Planning / Permitting Analysis: $285.75/hr. • S. Kennedy – Project Management / Coordination: $285.75/hr. • H. Williams – Research & Project Support: $175.95/hr. • M. Guzman – Research & Mapping Support: $175.95/hr.
• M. Sims – Research & Technical Support: $175.95/hr.
• C. Perla – Mapping / GIS Support: $175.95/hr.
• K. Lauterman – Site Selection / Outreach Support: $175.95/hr.

MILESTONE 8 – BIG 4 ECONOMIC & REAL ESTATE

STRATEGY
Service Month: February 2026
Scope of Services
• Ongoing Phase 1 implementation activities
• Regional economic development coordination
• Developer outreach and strategy implementation
• ICON / ICSC preparation and stakeholder engagement
• Permitting, mapping, and development workflow coordination Deliverables
• Economic development coordination materials
• Stakeholder and developer engagement support
• Permitting and implementation tools
• Regional coordination and implementation support
Personnel & Hourly Rates
• Rodrigo Gonzalez – Principal / Project Lead: $476.50/hr. • Mauricio Nunez – Economic & Policy Analysis: $393.75/hr. • E. Rodriguez – Planning / Permitting Analysis: $285.75/hr. • S. Kennedy – Project Management / Coordination: $285.75/hr. • M. Guzman – Research & Mapping Support: $175.95/hr.
• H. Williams – Research & Project Support: $175.95/hr. • M. Esquivel – Property Research & Market Analysis: $175.95/hr. • M. Sims – Research & Technical Support: $175.95/hr.
• K. Lauterman – Site Selection / Outreach Support: $175.95/hr.

Scope Prepared By: DEODATE CORPORATION

ENGAGEMENT SCOPE OF WORK
Role Clarification: Technical Real Estate Strategy
DEODATE leads all technical communication related to real estate strategy,site feasibility, land use evaluation, and developer/operator discussions tied directly to asset positioning.

This scope of work represents both the opportunitiesfor each participating city, along with what is required to pursue the Big 4 collective strategy. These items will be noted as “city-specific” or “Big 4,” respectively.

PHASE 1: CITY-SPECIFIC OPPORTUNITIES
Real Estate Portfolio Analysis, SB 1 Strategy Activation and Economic Development Audit The following are activities required by each city to participate in the Big 4 collective initiative. The success of any future “Big 4” programmatic role out requires baseline analysis of real estate, economic development, and related communication data, initiatives and strategies on a per-city basis.

Phase 1 will be deployed in its entirety with critical milestones and deliverables along the way to meet timesensitive needs of the Big 4 and its individual members.

Phase 1 Milestone 1: DEODATE
SB1 Strategy and related data collection,synthesis,structuring and presentation December 2025 (3-5 weeksfrom project kickoff)
• Review current City state of SB1 related revenues as they relate to pertinent metrics (revenue per capita, revenue per square mile, revenue per industrial/and or manufacturing asset, revenue per daytime population, etc.)
• Review, analyze and derive narrativesfrom current economic output metrics per city (salestax generation, widget generation, job generation, etc.)
• Research, analysis and structure of narrative for updated daytime population counts • Run analysis from a regional and/or state level for comparative purposes of revenue generation to the state as compared to revenue SB1 recapture
• Work with City to create and format communication narrative of proposed strategy Phase 1 Milestone 2: DEODATE
Analyze all critical real estate needs, including all current portfolio properties January 2026 (8 weeks from project kickoff) to run concurrently with Milestone 1 • Collaborate with a team to catalogue all properties
• In coordination with City leadership, identify the highest priority sites and develop strategies for optimizing assets
• Assist in analyzing maximization of tax revenue by way of land/asset utilization • Catalogue, analyze and create strategiesfor privately held (non-City owned) assets(sale/not forsale) • Catalogue, analyze and structure city-wide tenant ledger and profile by industry and related asset class • Lead communication efforts with current and potential development partners • Lead communication efforts with current and potential operators(companies) and utilizers of land within 2 Scope Prepared By: DEODATE CORPORATION
City
• Assistance and resourcing communication with strategic partners(current operators, tenants and owners) as it pertains to real estate utilization and optimization with City limits • Analysis of historical occupancy figures across multiple asset classes • Analysis of current job/employment/income figures across notable interest (current and ideal) Phase 1 Milestone 3: DEODATE
Site/Portfolio Related Economic Development: Resource the City with site-related economic development tools February 2026 (12 weeks from project kickoff) to run concurrently with Milestones 1 and 2 • Site analysisincluding zoning, land use, economic development, and other • Economic analysis ofsite acquisition, including market rates and strategic acquisition strategies • Develop developerintereststrategy across multiple asset classes • Develop tenant intereststrategy across multiple asset classes • Analysis and creation ofstrategy of interna and external market forces impacting industry growth in City • Analysis of current technical workflows, schedules and processes that may impact (+/-) development selection of City
Phase 1 Milestone 4: DEODATE
Real Estate and/or Land Use Strategy
February 2026 (12 weeks from project kickoff) to run concurrently with Milestones 1-3 • Create and manage tools for City focused on Economic Development and for use at external events (ICSC, I.Con and others)
• Assist city in communication strategies(including visuals) forsites to be discussed at ICSC, I.Con and others.
• Creation of business attraction program to City real estate (owned and not owned):
o Focus on property related incentive formulation and communication o Push/Pullstrategy fortarget industries
o Creation of associated visuals
o Activation of landlord and brokerage community for communication of program • Review of Economic Development components and strategy o Draft technicalstrategy for online or printed communications of real estate o Coordinate with NSA on necessary marketing updates
o Coordinate with NSA on necessary marketing collateral 1 2025

PROFESSIONAL SERVICES AGREEMENT
(Engagement: Big 4 Economic & Real Estate Development Strategy, Phase 1) (Parties: Deodate Corporation and City of Santa Fe Springs) THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this 3rd day of December 2025 (hereinafter, the “Effective Date”) by and between the CITY OF SANTA FE SPRINGS, a municipal corporation (hereinafter, “CITY”) and DEODATE CORPORATION, a California corporation (hereinafter, “CONSULTANT”).

For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.

RECITALS
WHEREAS, on September 1, 2025, the Cities of Santa Fe Springs, Commerce, Industry, and Vernon entered into a Memorandum of Understanding (“MOU”) establishing a regional coalition to promote legislative initiatives, economic development opportunities, and regional policy objectives, with said MOU expiring on August 31, 2030; and WHEREAS, the participating jurisdictions recognized the need to strengthen regional economic competitiveness, support industrial and commercial growth, improve legislative advocacy efforts, and further economic development and key policy objectives through collaborative planning and technical analysis; and WHEREAS, the Cities of Santa Fe Santa Fe Springs, Commerce, Industry, and Vernon (collectively, the “Big 4”) seek to implement Phase 1 of a regional economic and real estate development initiative to support economic development priorities and related technical analysis; and
WHEREAS, the CITY desires to retain CONSULTANT to provide specialized technical real estate and economic development consulting services, including real estate portfolio analysis, SB 1 strategy activation, land use and economic development analysis, site feasibility evaluation, business attraction strategy, and related technical consulting services associated with Phase 1 of the Big 4 Economic and Real Estate Development Strategy Initiative; and
WHEREAS, CONSULTANT represents that it possesses the qualifications, expertise, personnel, training, and experience necessary to competently provide the Services contemplated under this Agreement; and
WHEREAS, at its Regular Meeting of December 2, 2025, under Agenda Item No. 23, the Santa Fe Springs City Council (“City Council”) directed the City Manager to enter into a Professional Service Agreement for implementation of Phase 1 technical real estate and economic development consulting services related to the Big 4 initiative; and WHEREAS, the City Council authorized the City Manager to execute this Agreement at its Regular Meeting of June 16, 2026, under Agenda Item No. ____; and 2 WHEREAS, the Parties acknowledge and agree that this Agreement is limited to Phase 1 services only, as described in Scope of Services attached hereto and incorporated herein as Exhibit “A,” in an amount not-to-exceed Three Hundred Four Thousand Five Hundred Dollars and No/100 ($304,500.00) and that any subsequent phase of work shall require separate written authorization and approval by CITY.

NOW, THEREFORE, in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:

I.

ENGAGEMENT TERMS

1.1 TERM: This Agreement shall have a term commencing from the Effective Date through April 31, 2030 (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below. The Term may be extended upon mutual written agreement of the Parties and approval by the City Council, if required, pursuant to Section

6.16 of this Agreement, below.

1.2 SCOPE OF SERVICES:

A. Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the services and tasks described in that certain proposal of CONSULTANT entitled “Engagement Scope of Work – Phase 1: CitySpecific Opportunities” (hereinafter, the “CONSULTANT Proposal”) which is attached hereto and incorporated herein as Exhibit “A”. CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks, and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term “Services.” The Services contemplated under this Agreement shall be limited to Phase 1 economic development and technical real estate consulting services associated with the Big 4 coalition consisting of the Cities of Santa Fe Springs, Commerce, Industry and Vernon.

1.3 PROSECUTION OF SERVICES:

A. CONSULTANT shall perform the Services contemplated under this Agreement on an on-call, as-needed basis. Nothing in this Agreement shall be construed to grant CONSULTANT the exclusive right to perform any of the types of services or tasks contemplated under this Agreement nor shall anything in this Agreement be construed to entitle CONSULTANT to the receipt of any sums under this Agreement, except to the extent CITY requests the performance of any Services in the manner described below and such Services is in fact performed and completed by CONSULTANT 3 and accepted by CITY. CITY requests for the performance of specific services or tasks contemplated under this Agreement shall be made in the form of a written work order(s) issued by the City Representative (each such written request hereinafter referred to as a “Work Order”). Each Work Order shall include the following information:

1. A detailed description of the specific services or tasks requested;

2. The location of where the particular services or tasks are to be performed, if applicable;

3. A not-to-exceed budget for performing the services or tasks;

4. A timeline for completing the requested services or tasks;

5. Any other information CITY deems necessary and relevant to the requested services or tasks; and

6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.

B. CONSULTANT shall not perform any of the Services contemplated under this Agreement without a written Work Order request from the City Representative, containing the information set forth in Section 1.3(A), above;
C. CONSULTANT shall perform all assigned Services continuously and with due diligence so as to complete all assigned Services by the completion date indicated in each Work Order. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors, or agents;
D. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner; E. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees; and
F. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.4 COMPENSATION: CONSULTANT shall perform the Services in accordance with the “CONSULTANT Fee Schedule” which is attached and incorporated hereto as Exhibit “B” (hereinafter, the “Compensation Rate”). The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Services contemplated under this Agreement, may not exceed the aggregate sum of THREE HUNDRED FOUR THOUSAND FIVE HUNDRED DOLLARS AND NO/100 ($304,500.00) (hereinafter, the “Not-to-Exceed Sum”) during the Term of this Agreement, unless such added expenditure is first approved by the City Council. In the event CONSULTANT’s charges are projected to exceed the Aggregate Not-to-Exceed Sum prior to the expiration of this Agreement, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated 4 expenditures in excess of the Aggregate Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.5 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT will submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and any reimbursable out-ofpocket expenses incurred. If the amount of CONSULTANT’s monthly compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the person(s) responsible for performing the Services, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed.

Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.6 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.7 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Services agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT will deliver to CITY immediately and without delay, all materials, records, and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the reasonable value of the Services performed up to the time of cessation or abandonment, less a deduction for any damages, costs, or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE: The CITY hereby designates Rene Bobadilla, City Manager (hereinafter, the “City Representative”) to act as its representative for the performance of this Agreement. The City Representative or the City Representative’s designee will act on behalf of the CITY for all purposes under this Agreement. CONSULTANT will not accept directions or orders from any person other than the City Representative or the City Representative’s designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Rodrigo 5 Gonzalez, MBA, Chief Executive Officer and Management Partner, to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representative”). Consultant Representative will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement.

Consultant Representative or the Consultant Representative’s designee will supervise and direct the performance of the Services, using his/her best skill and attention, and will be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all Services under this Agreement. Notice to the Consultant Representative will constitute notice to CONSULTANT.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS:

CONSULTANT agrees to work closely with CITY staff in the performance of the Services and this Agreement and will be available to CITY staff and the CITY Representative at all reasonable times. All work prepared by CONSULTANT will be subject to inspection and approval by City Representative or his or her designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges, and agrees to the following:

A. CONSULTANT will perform all Services skillfully, consistent with and adhering to its professional standard of care, that is, the degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality; B. CONSULTANT shall at all times employ such knowledge, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said knowledge, materials, and tools shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative; C. CONSULTANT will perform all Services in a manner reasonably satisfactory to the CITY;
D. CONSULTANT will comply with all applicable federal, state, and local laws and regulations, including the conflict of interest provisions of Government Code §1090 and the Political Reform Act (Government Code §§81000 et seq.) CONSULTANT shall be liable for all violations of such laws and regulations in connection with CONSULTANT’s performance of the Services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom;
E. CONSULTANT understands the nature and scope of the Services to be performed under this Agreement as well as any and all schedules of performance;
6 F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training, and experience to perform those services and tasks assigned to them by CONSULTANT; and
G. All of CONSULTANT’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications, and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications, and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and, notwithstanding Section 5.2(B), will be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in her sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand, and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge, and experience necessary to perform the Services under the standard of care as articulated under section 2.4(A).

2.5 ASSIGNMENT: The skills, training, knowledge, and experience of CONSULTANT are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement, or the performance of any of CONSULTANT’s duties or obligations under this Agreement, without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL: CONSULTANT has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, CONSULTANT may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONSULTANT cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this 7 Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONSULTANT at the request of the CITY. The key personnel for performance of this Agreement are as follows:

Rodrigo Gonzalez, MBA, Chief Executive Officer and Management Partner.

2.7 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT
CONTRACTOR: The Services will be performed by CONSULTANT or under CONSULTANT’s strict supervision. CONSULTANT will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s competent and timely performance of the Services contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Services under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT will pay all wages, salaries and other amounts due such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like. Notwithstanding any other CITY, state, or federal policy, rule, regulation, law, or ordinance to the contrary, CONSULTANT and any of its employees, agents, and subcontractors performing the Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by CITY, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contributions and/or employee contributions for PERS benefits.

2.8 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Services in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Services.

2.9 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in compliance with all applicable federal, state, or local laws to the extent such laws 8 control or otherwise govern the performance of the Services. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the U.S.

Department of Housing and Urbanization.

2.10 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand, and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments, or subdivisions of CITY.

CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants.

CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt, or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Before performing any Services contemplated under this Agreement, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT will procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: For any owned, non-owned, or hired vehicles used in connection with the performance of this Agreement, CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance will have minimum limits of no less than Two Million Dollars 9 ($2,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: 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 CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Services contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: All policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers will be in excess of CONSULTANT’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents, and volunteers.

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands, and agrees, that CITY’s ability to verify the procurement and maintenance of the 10 insurance required under this Article is a material consideration of this Agreement.

Accordingly, CONSULTANT warrants, represents, and agrees that it will furnish CITY with certificates of insurance and endorsements evidencing the coverage required under this Article on ACORD-25 or forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf and will be on forms provided by the CITY if requested. Before performing any Services, CONSULTANT shall provide CITY with all certificates of insurance and endorsements referenced herein. Upon CITY’s written request, CONSULTANT will also provide CITY with copies of all required insurance policies and endorsements.

3.7 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.8 SPECIAL RISKS OR CIRCUMSTANCES: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Any amendment to the insurance requirements of this Article shall be memorialized and approved in the form of a written amendment to this Agreement, signed by the Parties. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void or invalid.

IV.

INDEMNIFICATION

4.1 CITY’s elected and appointed officials, officers, employees, agents, and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law.

CONSULTANT acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT’s commitment to indemnify, defend and protect CITY as set forth herein Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents, or volunteers.
11 4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due to CONSULTANT under this Agreement, any amount due to CITY from CONSULTANT as a result of CONSULTANT’s failure to either pay CITY promptly for any costs associated with CONSULTANT’s obligations to indemnify the CITY Indemnitees under this Article or related to CONSULTANT’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers’ compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT’s subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

4.6 CITY does not and shall not waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
12 V.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination.

CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Services.

CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service, or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service, or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2B and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT will cure the following Events of Defaults within the following time periods:
i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation, or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement.

Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default 13 upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.i. that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT will include, but will not be limited to the following: (i) CONSULTANT’s refusal or failure to perform any of the services or tasks called for under the Scope of Services; (ii) CONSULTANT’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; and/or (v) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY will cure any Event of Default asserted by CONSULTANT within fortyfive (45) calendar days of CONSULTANT’s issuance of a Default Notice unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of CONSULTANT’s Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT’s performance under this Agreement pending
CONSULTANT’s cure of any Event of Default by giving CONSULTANT 14 written notice of CITY’s intent to suspend CONSULTANT’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT will be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach.

No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT’s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty, or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or 15 performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. CONSULTANT will require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.

6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and will not be disclosed by CONSULTANT without prior written consent by CITY. CITY will grant such consent of disclosure as legally required. Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Services in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., §§3801 et seq. and the California False Claims Act, Government Code §§12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement will be given to 16 the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

CONSULTANT: CITY:

DEODATE CORPORATION
Attn: Rodrigo Gonazalez, MBA
Chief Executive Officer &
Managing Partner
975 S. Fair Oaks Avenue, 2nd
Floor, Pasadena, CA 91105
Phone:(626) 314-1826
City of Santa Fe Springs
Office of City Manager
11710 Telegraph Road
Santa Fe Springs, CA 90670
Phone: (562) 868-0511
Attn: René Bobadilla, City Manager
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS: The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate, or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT will not subcontract any of the Services contemplated under this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other independent contractors in connection with the various projects worked upon by CONSULTANT.

6.8 CONFLICTS OF INTEREST:

A. CONSULTANT warrants, represents, and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid, nor has it agreed to pay, any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
17 B. CONSULTANT may serve other clients, but none whose activities within the corporate limits of CITY or whose business, regardless of location, would place CONSULTANT in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code §81000 et seq.

C. CONSULTANT shall not employ any official or employee of the CITY during the Term of this Agreement or any extension term. No officer or employee of CITY shall have any financial interest in this Agreement that would violate Government Code §§1090 et seq. CONSULTANT warrants and represents that no owner, principal, partner, officer, or employee of CONSULTANT is or has been an official, officer, employee, agent, or appointee of the CITY within the twelve-month period of time immediately preceding the Effective Date. If an owner, principal, partner, officer, employee, agent, or appointee of CONSULTANT was an official, officer, employee, agent, or appointee of the CITY within the twelve-month period immediately preceding the Effective Date, CONSULTANT warrants that any such individuals did not participate in any manner in the forming of this Agreement. CONSULTANT understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and CONSULTANT will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and CONSULTANT will be required to reimburse the CITY for any sums paid to CONSULTANT. CONSULTANT understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code §1090.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 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.

6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS: This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
18 6.14 CONSTRUCTION OF AGREEMENT: This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.

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 been entered into between CITY and CONSULTANT 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

6.16, above.

6.20 FORCE MAJEURE: The completion deadline for any Services assigned to CONSULTANT may be extended in the event of any delays due to unforeseeable causes beyond the control of CONSULTANT and without the fault or negligence of CONSULTANT, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY.

CONSULTANT shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The CITY Representative shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the CITY Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONSULTANT be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, CONSULTANT’s sole remedy being extension of the Agreement pursuant 19 to this Section.

6.21 COUNTERPARTS: This Agreement will be executed in three (3) original counterparts each of which will be of equal force and effect. No handwritten or typewritten amendment, modification, or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section

6.16, above. One fully executed original counterpart will be delivered to CONSULTANT and the remaining two original counterparts will be retained by CITY.

6.22 AUTHORITY TO EXECUTE THIS AGREEMENT: 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.

6.23 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 NEXT PAGE)
20 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF SANTA FE SPRINGS:

By:

René Bobadilla, City Manager

Date:_______________________
DEODATE CORPORATION:

By:

Rodrigo Gonzalez, MBA, Chief
Executive Officer & Managing Partner
Date:_______________________
APPROVED AS TO FORM:

By: _____
Rick Olivarez, City Attorney
Date:____________________________
21 Exhibit “A”
[CONSULTANT Proposal]
[Attached Behind this Page]
22 Exhibit “B”
[Compensation Rate]
ITEM # 21

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Gus Hernandez, Director of Parks & Recreation
SUBJECT: APPROVAL OF AMENDMENT NUMBER TWO BETWEEN THE CITY OF SANTA FE

SPRINGS AND OPTIONS FOR LEARNING CHILD CARE PROGRAM AT LAKEVIEW

ELEMENTARY SCHOOL
DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Approve Amendment Number Two to the Agreement between the City of Santa Fe Springs and Options for Learning extending the term through June 30, 2027, for the continued operation of the Options for Learning before and after school childcare program at Lakeview Elementary School.

2. Authorize the City Manager to execute Amendment Two and any related documents in a form approved by the City Attorney.

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

FISCAL IMPACT
The amendments allow for the continued operation of the Options for Learning Child Care Program at the Lakeview Elementary School site. Operational costs associated with the program continue to be managed by Options for Learning in accordance with the existing agreement terms. Options for Learning agrees to pay $100/month to use Lakeview Childcare Centers.

BACKGROUND
On May 24, 2018, the City and Options for Learning entered into a premises use agreement for Options for Learning to operate the Extended Day Services Program at Lakeview Elementary School.

On June 16, 2021, the City and Options for Learning entered into Amendment Number One at Lakeview Elementary School to extend the term by five years through June 30, 2026.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval of Amendment Number Two between the City of Santa Fe Springs and Options for Learning Child Care Program at Lakeview Elementary School

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
Amendment Number Two proposes extending the Lakeview Elementary School agreement through June 2027, to allow for the continued operation of the program and continued childcare services for local families.

ANALYSIS
The Options for Learning Child Care Program provides full-day preschool, before and after school childcare services for elementary school students and serves an important role in supporting working families within the community. The continuation of the program ensures that families continue to have access to licensed childcare and structured youth programming at Lakeview Elementary School.

Amendment Number Two extends the Lakeview Elementary School agreement for an additional oneyear term through June 30, 2027. All other terms and conditions of the original agreement remain unchanged and in full force and effect.

ENVIRONMENTAL
N/A

DISCUSSION
The continued partnership between the City and Options for Learning supports the City’s ongoing commitment to providing quality youth and family services within the community. The program has operated successfully at the Lakeview Elementary School site and continues to provide valuable childcare services to Santa Fe Springs families and surrounding communities. Approval of Amendment Two will allow for uninterrupted program operations while maintaining the existing operational framework and responsibilities established under the original agreement.

SUMMARY/NEXT STEPS
Upon approval, Amendment Two will extend the Lakeview Elementary Site agreement term through June 30, 2027, allowing the continued operation of the Options for Learning preschool and Surround Care Program. Following approval, the City Manager will execute the amendments, and staff will continue coordinating with Options for Learning regarding ongoing program operations.

ATTACHMENT(S):

A. Attachment A - Amendment Number Two
B. Attachment B –Lakeview Elementary Premises Use Agreement

AMENDMENT NUMBER TWO TO PREMISES USE AGREEMENT

BETWEEN THE CITY OF SANTA FE SPRINGS

AND OPTIONS FOR LEARNING

AT LAKEVIEW ELEMENTARY SCHOOL
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain Premises Use Agreement dated May 24, 2018 (hereinafter, the “Agreement”) by and between the CITY OF SANTA FE SPRINGS (hereinafter, “City”) and OPTIONS FOR LEARNING, a California nonprofit corporation (“Options for Learning”) is entered into as of June 16, 2026 (“Effective Date”). For the purposes of this Second Amendment, the capitalized term “Party” may refer to either City or Options for Learning, interchangeably as appropriate, or collectively, as the “Parties.”

RECITALS
WHEREAS, the City currently provides child care and development services to eligible preschool age children at the Los Nietos Child Care Center and Gus Velasco Neighborhood Center and school age program at Lakeview Elementary School (“Childcare Program”) pursuant to its contract (“CDE Child Care Development Agreement”) with the State of California Department of Education (“CDE”); on or about February 22nd, 2018, the City Council approved a “Subcontractor for Child Development Preschool Services” in order to transition the City’s Childcare Program to Options for Learning; and
WHEREAS, the City currently operates the Childcare Program at Lakeview Elementary School pursuant to a Use Agreement with the Little Lake City School District (“LLCSD”) and sometimes referred to herein as Extended Day Services Program; and WHEREAS, on May 24, 2018, the City and Options for Learning entered into a Premises Use Agreement for Options for Learning to operate the Extended Day Services Program at Lakeview Elementary School located at 11500 Joslin Street, Santa Fe Springs, CA 90670 (“Agreement”) for a three-year term; and
WHEREAS, on June 16, 2021, the City and Options for Learning entered into Amendment Number One to amend the Agreement to extend the term of the Agreement for five years until June 30, 2026; and
WHEREAS, the Agreement and all subsequent amendments are attached and incorporated hereto, as Exhibit “A” (“Entire Agreement”); and WHEREAS, the City and Options for Learning wish to amend a provision of the Entire Agreement by extending the use term by one year; and
WHEREAS, the execution of this Second Amendment was approved by the City Council at its Regular Meeting of ___________________, 2026, under Agenda Item No. ______.

NOW, THEREFORE, for good and valuable consideration, which is hereby confirmed, the City and Options for Learning agree that the Entire Agreement is and shall be amended as follows:

1. The recitals set forth above are true, correct, and are hereby incorporated by reference in full herein.

2. Section 3(A) of the Agreement is deleted in its entirety and replaced with the following:

The Term of this Agreement shall commence on July 1, 2018, and end on June 30, 2027. Upon mutual agreement by City and Options for Learning, this Agreement may be extended for up to a three (3) year term (“Extension”) only as authorized in Exhibit B of the Agreement. Notwithstanding the foregoing, the Extension is subject to the termination provisions set forth in Section 15, 18, and 19 of the Agreement and the Use Agreement.

3. Except as amended herein, all terms, conditions, and provisions of the Agreement, as amended, shall remain in binding, controlling and in full force and effect. The provisions of this Second Amendment shall be deemed a part of the Entire Agreement, as amended. Except as otherwise provided under this Second Amendment, the Entire Agreement, as amended, and all provisions contained herein, shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this Second Amendment and the provisions of the Entire Agreement, the provisions of this Second Amendment shall govern and control, but only so far as such provisions conflict with the Agreement, as amended, and no further.

4. The persons executing this Second Amendment on behalf of the Parties warrant and represent that they have the authority to execute this Second Amendment on behalf of said parties and have the authority to bind the parties to the provisions of this Second Amendment.

5. The parties acknowledge and agree that execution of the Second Amendment by electronic signature or electronic transmittal of signatures shall have the same effect as handwritten signatures for the purposes of validity, enforceability, and admissibility.

CITY OF SANTA FE SPRINGS OPTIONS FOR LEARNING
René Bobadilla, City Manager Paul Pulver, Chief Executive Officer Date:_________________________ Date:_______________________ APPROVED AS TO FORM:

Rick R. Olivarez, City Attorney
ATTEST:

Maribel Garcia, City Clerk

ITEM # 22

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Gus Hernandez, Director of Parks & Recreation
SUBJECT: APPROVAL OF AMENDMENT NUMBER FOUR TO THE AGREEMENT BETWEEN

THE CITY OF SANTA FE SPRINGS AND OPTIONS FOR LEARNING AT THE LOS

NIETOS CHILD CARE CENTER
DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Approve Amendment Number Four to the Agreement between the City of Santa Fe Springs and Options for Learning extending the term through June 30, 2031, for the continued operation of the Options for Learning Childcare Program at Los Nietos Child Care Center.

2. Authorize the City Manager to execute Amendment Number Four and any related documents in a form approved by the City Attorney.

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

FISCAL IMPACT
The amendments allow for the continued operation of the Options for Learning Childcare Program at Los Nietos Park Child Care Center site. Operational costs associated with the program continue to be managed by Options for Learning in accordance with the existing agreement terms. Options for Learning agrees to pay $100/month to use the City-owned Los Nietos Center.

BACKGROUND
On April 12, 2018, the City and Options for Learning entered into a lease agreement for the lease to Options for Learning at the Los Nietos Child Care Center to operate a full-day preschool program.

On June 13, 2019, the City and Options for Learning entered into Amendment Number One to the Agreement at Los Nietos Child Care Center to extend the lease term by one year.

On June 11, 2020, the City and Options for Learning entered into Amendment Number Two to the Agreement at Los Nietos Child Care Center to extend the lease term by one year.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval of Amendment Number Four to the Agreement between the City of Santa Fe Springs and Options for Learning at The Los Nietos Childcare Center

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
On June 16, 2021, the City and Options for Learning entered into Amendment Number Three to the Agreement at Los Nietos Child Care Center.

Amendment Number Four proposes extending the Los Nietos Child Care Center lease term through June 30, 2031, to allow for the continued operation of the program and continued childcare services for local families.

ANALYSIS
The Options for Learning Child Care Program provides full-day preschool, before and after school childcare services for elementary school students and serves an important role in supporting working families within the community. The continuation of the program ensures that families continue to have access to licensed childcare and structured youth programming at Los Nietos Child Care Center.

Amendment Number Four extends the Los Nietos Child Care full-day preschool agreement for an additional five-year term through June 30, 2031. All other terms and conditions of the original agreement remain unchanged and in full force and effect.

ENVIRONMENTAL
N/A

DISCUSSION
The continued partnership between the City and Options for Learning supports the City’s ongoing commitment to providing quality youth and family services within the community. The program has operated successfully at the Los Nietos site and continues to provide valuable childcare services to Santa Fe Springs families and surrounding communities. Approval of Amendment Number Four will allow for uninterrupted program operations while maintaining the existing operational framework and responsibilities established under the original agreement.

SUMMARY/NEXT STEPS
Upon approval, Amendment Number Four will extend the Los Nietos agreement term through June 30, 2031, allowing the continued operation of the Options for Learning preschool and Surround Care Program. Following approval, the City Manager will execute the amendment, and staff will continue coordinating with Options for Learning regarding ongoing program operations.

ATTACHMENT(S):

A. Attachment A - Amendment Number Four
B. Attachment B - Los Nietos Child Care Lease Agreement

AMENDMENT NUMBER FOUR TO LEASE AGREEMENT

BETWEEN THE CITY OF SANTA FE SPRINGS

AND OPTIONS FOR LEARNING

AT LOS NIETOS CHILDCARE CENTER
This Amendment Number Four to the Lease Agreement (“Fourth Amendment”) to that certain lease agreement dated April 12, 2018 (hereinafter, the “Agreement”) by and between the CITY OF SANTA FE SPRINGS (“Lessor” or “City”) and OPTIONS FOR LEARNING, a California nonprofit corporation (“Lessee” or “Options for Learning”) is entered into as of June 16, 2026 (“Effective Date”).

RECITALS
WHEREAS, the City currently provides childcare and development services to eligible preschool age children at the Los Nietos Child Care Center and Gus Velasco Neighborhood Center and school age program at Lakeview Elementary School (“Childcare Program”) pursuant to its contract (“CDE Child Care Development Agreement”) with the State of California Department of Education (“CDE”); on or about February 22nd, 2018, the City Council approved a “Subcontractor for Child Development Preschool Services” in order to transition the City’s Childcare Program to Options for Learning; and
WHEREAS, on April 12, 2018, the City and Options for Learning entered into a lease agreement for the lease by the City to Options for Learning of the property commonly known as the Los Nietos Child Care Center located 11143 Charlesworth Rd. (“Agreement”) for a one-year term; and
WHEREAS, on June 13, 2019, the City and Options for Learning entered into Amendment Number One to the Agreement to extend the lease term by one year; and WHEREAS, on June 11, 2020, the City and Options for Learning entered into Amendment Number Two to the Agreement to extend the lease term by one year; and WHEREAS, on June 16, 2021, the City and Options for Learning entered into Amendment Number Three to the Agreement to extend the lease term by five years until June 30, 2026; and
WHEREAS, the Agreement and all subsequent amendments are attached and incorporated hereto, as Exhibit “A” (“Entire Agreement”); and WHEREAS, the City and Options for Learning wish to amend a provision of the Entire Agreement by extending the lease term for five years to provide full-day preschool; and
WHEREAS, the execution of this Fourth Amendment was approved by the City Council at its Regular Meeting of ___________________, 2026, under Agenda Item No. ______.

NOW, THEREFORE, for good and valuable consideration, which is hereby confirmed, the City and Options for Learning agree that the Entire Agreement is and shall be amended as follows:

1. The recitals set forth above are true, correct, and are hereby incorporated by reference in full herein.

2. Section 3(A) of the Agreement is deleted in its entirety and replaced with the following:

The Term of the Lease shall commence on July 1, 2018 and end on June 30, 2031. Upon mutual agreement by Lessor and Lessee, this Agreement may be extended for up to two (2) additional five (5) year terms (“Extension”) subject to the rights of termination as set forth in Section 19.

3. Section 6(B) of the Agreement is deleted in its entirety and replaced with the following:

Lessee shall provide affordable childcare to residents of the City of Santa Fe Springs and other families of surrounding communities, including the operation of a full-day preschool.

4. Except as amended herein, all terms, conditions, and provisions of the Agreement, as amended, shall remain in binding, controlling and in full force and effect.

The provisions of this Fourth Amendment shall be deemed a part of the Entire Agreement, as amended. Except as otherwise provided under this Fourth Amendment, the Entire Agreement, as amended, and all provisions contained herein, shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this Fourth Amendment and the provisions of the Entire Agreement, the provisions of this Fourth Amendment shall govern and control, but only so far as such provisions conflict with the Agreement, as amended, and no further.

5. The persons executing this Fourth Amendment on behalf of the Parties warrant and represent that they have the authority to execute this Fourth Amendment on behalf of said parties and have the authority to bind the parties to the provisions of this Fourth Amendment.

6. The parties acknowledge and agree that execution of the Fourth Amendment 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]
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed by their respective duly authorized representatives, as of the day and year first written above.

CITY OF SANTA FE SPRINGS OPTIONS FOR LEARNING
__
René Bobadilla, City Manager Paul Pulver, Chief Executive Officer Date:_______________________ Date:_______________________ APPROVED AS TO FORM:

Rick R. Olivarez, City Attorney
ATTEST:

Maribel Garcia, City Clerk

ITEM # 23

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Gus Hernandez, Director of Parks & Recreation
SUBJECT: APPROVAL OF LICENSE AGREEMENT WITH BOB ARCHULETA FOR USE OF A PORTION OF THE FACILITY LOCATED AT 12131 TELEGRAPH ROAD DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Approve the License Agreement between the City of Santa Fe Springs and Bob Archuleta for the use of designated office space within the facility located at 12131 Telegraph Road; and

2. Directs the City Attorney to make clarifying changes necessary to effectuate the intent of the Plan; and

3. Authorize the Mayor to execute the Agreement and any related documents in a form approved by the City Attorney; and

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

FISCAL IMPACT
The Agreement generates rental revenue of $1,500 per month, which is consistent with the fair market rental value of comparable office space within an industrial community. Revenue generated through the Agreement will offset City operating costs associated with ownership of the facility.

BACKGROUND
The City owns the property located at 12131 Telegraph Road, consisting of approximately 2.33 acres and a 42,170 square foot building. Portions of the facility are available for temporary occupancy and can accommodate office and administrative uses.

Bob Archuleta has requested the use of designated office space within the facility to support campaign operations, volunteer activities, meetings, voter outreach, fundraising support activities, and related administrative functions. The proposed use is temporary in nature and is subject to the terms and conditions outlined in the License Agreement.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval of License Agreement with Bob Archuleta for use of A Portion of the Facility Located at 12131 Telegraph Road

ITEM STATUS:

APPROVED: ☐
DENIED: ☐
TABLED: ☐
DIRECTION GIVEN: ☐
____________________________
City Clerk, Maribel Garcia
The Agreement is structured as a license rather than a lease and grants a nonexclusive right to use designated portions of the facility. The initial term extends through November 30, 2026, with provisions allowing administrative extensions upon mutual agreement of the parties.

ANALYSIS
The proposed License Agreement authorizes Bob Archuleta to utilize designated office space within the facility located at 12131 Telegraph Road. The Agreement establishes requirements related to rent, maintenance, insurance, background checks, and compliance with City policies and applicable laws.

The City retains oversight of the facility, while the Organization is responsible for the costs and obligations associated with its use of the premises.

ENVIRONMENTAL
N/A

DISCUSSION
The proposed License Agreement authorizes Bob Archuleta to utilize designated office space within the facility located at 12131 Telegraph Road for campaign administrative operations, volunteer coordination, meetings, outreach activities, and related lawful purposes. The Agreement establishes operational requirements, including insurance, maintenance responsibilities, facility use regulations, and compliance with all applicable federal, state, and local laws. The Agreement provides for monthly rental payments of $1,500 and allows the City to utilize available office space while maintaining oversight of the facility. The proposed rental rate is consistent with the fair market value of comparable office space within an industrial community.

SUMMARY/NEXT STEPS
Approval of the proposed License Agreement will authorize Bob Archuleta to utilize designated office space within the facility located at 12131 Telegraph Road in accordance with the terms and conditions of the Agreement. Upon approval, the Mayor will execute the Agreement and staff will coordinate implementation and ongoing administration of the facility use.

ATTACHMENT(S):

A. Attachment A – License Agreement with Bob Archuleta
License Agreement No. 2026-003
1 rev. 10/25

DEPARTMENT OF PARKS & RECREATION
2026

LICENSE AGREEMENT FOR

FACILITIES AND EQUIPMENT
THIS LICENSE AGREEMENT (“AGREEMENT”) dated as of this 15th day of May, 2026 (“DATE OF AGREEMENT”), for reference purposes only, by and between the CITY OF SANTA FE SPRINGS, a California municipal corporation (hereinafter referred to as “CITY”) and the Bob Archuleta for Senate 2026, a California political committee organized and existing pursuant to the California Political Reform Act (hereinafter referred to as “ORGANIZATION”). This AGREEMENT shall take effect on the “EFFECTIVE DATE”, as this term is hereafter defined. CITY and ORGANIZATION may be hereinafter individually referred to as “PARTY” and collectively as the “PARTIES.”

RECITALS
WHEREAS, CITY owns a 2.33-acre property inclusive of a 42,170 square foot building located at 12131 Telegraph Road (“SUBJECT FACILITY”); and WHEREAS, the ORGANIZATION is a political committee established for the purpose of supporting the election campaign of Senator Bob Archuleta for the California State Senate in the 2026 election cycle; and
WHEREAS, the CITY desires to partner with an ORGANIZATION dedicated to serving Veterans and their families through advocacy, support programs, community outreach, educational resources, and activities that promote patriotism, civic engagement, and the welfare of the Veteran community; and WHEREAS, the ORGANIZATION desires to utilize portions of the SUBJECT FACILITY for campaign related administrative operations, volunteer coordination, meetings, outreach activities, phone banking, campaign planning, fundraising support activities, community engagement, and other lawful activities consistent with applicable federal, state, and local laws and regulations (the “Permitted Use”); and WHEREAS, the ORGANIZATION conducts lawful political, civic engagement, outreach, volunteer coordination, fundraising, campaign administration, voter education, and related activities in support of its campaign efforts and objectives; and WHEREAS, SUBJECT FACILITY is equipped with appropriate amenities and spaces suitable for hosting meetings, campaign operations, volunteer activities, outreach coordination, administrative functions, and related activities, including office space, meeting areas, parking areas, electrical power, lighting, restrooms, and related infrastructure necessary to support the ORGANIZATION’s permitted activities; and

ATTACHMENT A
Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
2 rev. 10/25
WHEREAS, CITY desires to allow temporary use of the SUBJECT FACILITY by the ORGANIZATION subject to the terms, conditions, restrictions, and limitations set forth in 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 ORGANIZATION 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 as defined therein, and is not otherwise subject to the requirements of the Surplus Lands Act; and WHEREAS, this AGREEMENT was approved by the Santa Fe Springs City Council at its Regular Meeting of June 16, 2026 through the approval of Agenda Item No. 30.

AGREEMENT

NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND

CONDITIONS CONTAINED HEREIN, THE PARTIES DO HEREBY AGREE AS FOLLOWS:

1. INCOPORATION OF RECITALS
The Recitals of fact set forth above are true and correct and are incorporated into this AGREEMENT, in their entirety, by this reference.

2. TERM OF AGREEMENT
This AGREEMENT shall commence as of the EFFECTIVE DATE and remain in effect through June 30, 2026 (“Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this AGREEMENT at any time for convenience or for cause as provided under Article 5 (Default, Cure and Termination), below. The Term of this AGREEMENT may be extended for up to an additional twentyfour 1-month periods upon mutual agreement of the PARTIES. Any extension of the Term of this AGREEMENT may be administratively approved by the City Manager or designee and executed in writing by both PARTIES. Notwithstanding the above, this AGREEMENT shall become effective (“EFFECTIVE DATE”) upon ORGANIZATION having satisfied the requirements for insurance outlined in Section 11, completed background checks on all employees, subcontractors, and volunteers pursuant to Section 8, and until both PARTIES have duly executed this AGREEMENT.

3. USE OF PREMISES
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A. CITY grants ORGANIZATION the right to use the SUBJECT FACILITY, limited to the use of the rooms identified in Exhibit “A” and non-exclusive use of the parking lots; subject to the requirements in Exhibit “B” and Exhibit “C”, subject to the terms and conditions of this AGREEMENT.

B. ORGANIZATION’S use of the SUBJECT FACILITY is subject to compliance with federal and state requirements, Santa Fe Springs Municipal Code (“SFSMC”), and the procedures, rules, and requirements set forth in the following exhibits attached to this AGREEMENT and incorporated herein by this reference:

Exhibit “A”: Site Plan
Exhibit “B”: Facility Use Procedure and Rules
Exhibit “C”: Facility Reservation and Use Policy (“FRUP”) The foregoing procedures, rules, and requirements contained in Exhibits “A-C” are subject to revision from time to time by the CITY, at its sole election. CITY shall provide a copy of any revised exhibits to ORGANIZATION and such revised exhibit shall govern and replace the attached and be incorporated herein.

C. ORGANIZATION shall not permit use of the SUBJECT FACILITY or any part thereof that results in:

1. Conduct that is threatening, disruptive, indecent, or that violates SFSMC Section 130.04 (Unlawful Conduct within City Facilities and City Parks);

2. Any activity that endangers the health, safety, and/or welfare of the community;

2. The creation or maintenance of a public nuisance;

3. Anything which fails to comply with all local, state, and federal laws and regulations related to the use of the SUBJECT FACILITY; or

4. Any activity which will obstruct, interfere with or infringe upon the rights of adjoining properties.

D. ORGANIZATION’s use of the SUBJECT FACILITY shall be solely limited to the Permitted Use, subject to obtaining all permits and approvals required for the Permitted Use contemplated under this AGREEMENT.

E. ORGANIZATION is fully responsible for the maintenance of the SUBJECT FACILITY and appurtenant facilities in a clean, safe, sanitary, and orderely condition at all times during the Term of this Agreement.

4. FEES
A. Prior to the ORGANIZATION’s use of the SUBJECT FACILITY under this AGREEMENT, ORGANIZATION shall pay the monthly rental fee of ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500.00) PER MONTH (“Rental Fee”) for use of the SUBJECT FACILITY. ORGANIZATION shall pay the Rental Fee on or before the 5th of every subsequent month this AGREEMENT is still in effect. ORGANIZATION will be Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
4 rev. 10/25
separately responsible for maintenance and utility costs attributable to its use of the SUBJECT FACILITY.

B. Prior to the ORGANIZATION’s use of the SUBJECT FACILITY under this AGREEMENT, ORGANIZATION shall provide CITY with valid credit card authorization permitting the CITY to charge the credit card for costs incurred by CITY as a result of ORGANIZATION’S failure to maintain the SUBJECT FACILITY or Property in accordance with Section 9(C). Such costs may include, cleaning, repair, replacement, or restoration of damage ORGANIZATION for any such costs.

5. DEFAULT, CURE AND TERMINATION
A. Default and Cure Procedures. Except as otherwise set forth in this AGREEMENT, in the event either PARTY fails to perform its obligations or comply with the terms hereunder, the non-defaulting PARTY shall provide the defaulting PARTY’s written notice of such default. The defaulting PARTY shall have fifteen (15) days to cure the default; provided that, if the default cannot reasonably be cured within said fifteen (15) day period, the defaulting PARTY shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, so long as the defaulting PARTY commences to cure such default within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate risk to the health, safety and general welfare, the defaulting PARTY shall take such immediate action as may be necessary to mitigate the risk. Notwithstanding the foregoing, the nondefaulting PARTY may, in its sole and absolute discretion, grant a longer cure period.

Should the defaulting PARTY fail to cure the default within the time period provided in this Section, the non-defaulting PARTY shall have the right, in addition to any other rights the non-defaulting PARTY may have at law or in equity, to terminate this AGREEMENT.

Compliance with the provisions of this Section shall be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any PARTY 's right to take legal action in the event that the default is not cured.

B. Waivers. No delay or omission in the exercise of any right or remedy by a non-defaulting PARTY on any default shall impair such right or remedy or be construed as a waiver. A PARTY’s consent to or approval of any act by any other PARTY requiring the PARTY’s consent or approval shall not be deemed to waive or render unnecessary the other PARTY’s consent to or approval of any subsequent act. Any waiver by any PARTY of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this AGREEMENT.

6. LEGAL COMPLIANCE
ORGANIZATION shall comply with all City, State and Federal laws, ordinances and regulations, which in any manner affect the performance of its activities pursuant to this AGREEMENT, at all times. Neither CITY, nor its officers, officials, volunteers, attorneys, agents or employees, shall be liable at law or in equity as a result of ORGANIZATION's failure to comply with this Section.

7. NO EXCLUSIVE RIGHT
Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
5 rev. 10/25
ORGANIZATION expressly acknowledges and agrees this AGREEMENT does not give the ORGANIZATION any right to the exclusive use of the SUBJECT FACILITY, restrooms, or any other City facility.

8. ORGANIZATION’S RESPONSIBILITIES
A. ORGANIZATION agrees to observe all rules and regulations as set forth in this AGREEMENT.

B. Personnel.

1. The ORGANIZATION shall provide the necessary personnel to supervise and conduct the activities at the SUBJECT FACILITY as set forth in this AGREEMENT and shall furnish and supply any and all equipment and material(s), which may be necessary for such activities conducted at the SUBJECT FACILITY. The CITY is not required to provide supervision but may at its sole discretion require ORGANIZATION to provide a certain number of security officers and/or personnel as it deems necessary. The CITY may also order the removal of individuals from the SUBJECT FACILITY during the activities if their conduct violates CITY policies, is not in the best interest of the public, or is deemed to be detrimental in any way by City staff.

2. Prior to the EFFECTIVE DATE, ORGANIZATION shall provide completed City Volunteer Applications for any volunteer that performs any type of work in connection with this AGREEMENT.

3. Prior to the EFFECTIVE DATE, ORGANIZATION shall complete LiveScan fingerprinting background checks on all personnel, including employees, subcontractors, and volunteers. When the activities involve participation by minors, ORGANIZATION shall not hire an employee, contractor, or volunteer with a history of criminal convictions as specified in California Public Resources Code Section 5164(a)(2).

ORGANIZATION shall comply with all applicable state laws governing services provided by youth services organizations.

C. Maintenance.

1. ORGANIZATION shall, at its sole cost and expense, maintain the SUBJECT FACILITY and all appurtenant facilities arising from ORGANIZATION’S use, occupancy, or activities, ordinary, wear and tear excepted, and shall return the SUBJECT FACILITY and appurtenant facilities to CITY in substantially the same condition as existed prior to ORGANIZATION’S use.

2. ORGANIZATION is responsible for cleaning areas used, including trash produced by ORGANIZATION.

3. Any damage to the SUBJECT FACILITY or appurtenant CITY facilities caused by ORGANIZATION or its use of the SUBJECT FACILITY, shall be the ORGANIZATION’s responsibility to replace or repair, as further Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
6 rev. 10/25
delineated in Section . In the event ORGANIZATION fails or refuses to replace or repair damage, CITY may cause such replacement and/or repair to be undertaken, and ORGANIZATION agrees to reimburse CITY for the costs incurred to do so.

4. ORGANIZATION is responsible for providing and maintaining all necessary equipment.

5. In the event ORGANIZATION fails to maintain the SUBJECT FACILITY or otherwise causes SUBJECT FACILITY or appurtenant CITY facilities to be damaged or unclean and the ORGANIZATION fails or refuses to clean or replace or repair the damage, the CITY shall elect to bill the ORGANIZATION for any fees incurred as a result of the same, charge the credit card provided by ORGANIZATION pursuant to Section 4(B) for any such costs. ORGANIZATION shall be fully responsible for maintenance costs under this Agreement. The ORGANIZATION’s obligations and responsibilities under this Section shall survive the expiration or termination of this AGREEMENT. All invoices shall be paid within thirty (30) days of receipt.

D. Modifications to Subject Facility. The removal, modification, alteration, painting, or addition to any facility or grounds, and construction of any kind to existing structures is strictly prohibited, unless ORGANIZATION receives prior written approval from CITY. This includes any proposed changes, alterations of the design or appearance of the existing landscape and/or façade(s) of the SUBJECT FACILITY, installation of fences, and/or permanent markings to athletic fields. Any requests shall be submitted for approval to the CITY in writing, at least sixty (60) days prior to the date of any proposed changes, which may be approved in CITY’s sole and absolute discretion. All improvements, alterations and additions to the SUBJECT FACILITY or surrounding grounds shall become the sole property of CITY at the CITY’S sole and absolute discretion. ORGANIZATION acknowledges and agrees that it may be invoiced by the CITY to pay all costs and restore the SUBJECT FACILITY to its unmodified condition prior to engaging in the unauthorized modifications. Nothing in this Section shall be interpreted as prohibiting the normal maintenance of the SUBJECT FACILITY by the ORGANIZATION as specified in this Section.

E. Advertising Materials. ORGANIZATION is prohibited from placing advertising material on SUBJECT FACILITY. For advertising materials and information relating to the activities permitted under this AGREEMENT, ORGANIZATION shall seek CITY approval in writing prior to posting and dissemination on or at the SUBJECT FACILITY.

F. All locks must be standard CITY locks and must not be replaced by any other lock.

G. ORGANIZATION is solely responsible for supervising and controlling all individuals at the SUBJECT FACILITY during the use of the SUBJECT FACILITY. This includes, but is not limited to, employees, agents, volunteers, participants, (collectively “ORGANIZATION GROUP”). CITY is not responsible for providing this supervision or for the acts of the ORGANIZATION GROUP or any member thereof. However, CITY may Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
7 rev. 10/25
evict any ORGANIZATION GROUP individual from the SUBJECT FACILITY if their conduct is in violation of the City’s ordinances, or state or federal law, as applicable.

H. ORGANIZATION shall not permit behavior or activity that is determined to be unsafe, unlawful, or a violation of the City’s ordinances or Facility Reservation and Use Policy (Exhibit “C”). Rule violators may be required to vacate the SUBJECT FACILITY or may be subject to arrest.

9. NOTICES
Except as otherwise expressly provided in this AGREEMENT, all notices permitted or required under this AGREEMENT shall be given to the respective PARTIES must be in writing and may be given personally, by registered or certified mail (return receipt requested), Federal Express, UPS or other similar couriers. If notice is personally delivered, the notice shall be deemed to have been given and received on the date notice was given. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received three (3) days after the notice is deposited in the United States mail. If notice is given by Federal Express, UPS, or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on the receipt issued by the courier. Notice shall be provided to the following addresses:

TO CITY: City of Santa Fe Springs
Department of Parks & Recreation
11740 Telegraph Road
Santa Fe Springs, CA 90670
Attn: Gus Hernandez, Director of Parks &
Recreation
COURTESY COPY TO: Olivarez Madruga Law Organization, LLP 500 S. Grand Avenue
12th Floor
Los Angeles, CA 90071
Attn: Paloma McEvoy, Assistant City Attorney
TO ORGANIZATION: Bob Archuleta for Senate
Attn: Bob Archuleta

10. ASSIGNMENT
The capability, reputation and mission of the ORGANIZATION are a substantial inducement for the CITY to enter into this AGREEMENT. Neither this AGREEMENT nor any interest, duties, rights or obligations under this AGREEMENT, or portion thereof, may Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
8 rev. 10/25
be transferred, conveyed, or assigned by ORGANIZATION, either voluntarily or by operation of law without the express written consent of CITY. An unauthorized assignment or transfer or any attempted or purported assignment or transfer in violation of this Section is a material breach of this AGREEMENT. The CITY shall have the right to immediately terminate this AGREEMENT, without providing the notice and cure provisions in Section 5.

11. INSURANCE
A. ORGANIZATION shall maintain insurance throughout the term of this AGREEMENT in conformance with the requirements set forth below. ORGANIZATION will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, ORGANIZATION agrees to amend, supplement or endorse the existing coverage to do so.

B. ORGANIZATION shall provide the following types and amounts of insurance:

1. Commercial General Liability Insurance: ORGANIZATION shall maintain commercial general liability insurance which shall be written on an occurrence form at least as broad as ISO CG 00 01, and include coverage for premises and operations, products and completed operations, independent contractors, vendors, personal injury, and contractual liability. The limits of ORGANIZATION’s insurance shall apply to this AGREEMENT as if set forth herein, but in no event shall provide combined single limits of coverage of not less than Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) general aggregate, for bodily injury, personal injury, and property damage. Coverage shall be primary and non-contributory to any insurance or self-insurance maintained by the CITY, and shall contain a waiver of subrogation in favor of the CITY. Amendments to contractual liability are not permitted. "There shall be no cross-liability exclusion for claims or suits by one insured against another.

2. Automobile Liability Insurance: Automobile Liability insurance covering owned, hired, non-owned, and rented vehicles, with a limit of not less than Five Million Dollars ($5,000,000) combined single limit per accident for bodily injury and property damage.

3. Workers’ Compensation and Employer’s Liability: Statutory Workers’ Compensation limits as required by the State of California, and Employer’s Liability limits of not less than One Million Dollars ($1,000,000) per accident, disease, or employee. Coverage shall include a waiver of subrogation endorsement in favor of the CITY and its officers, officials, employees, and volunteers.

4. Sexual Abuse and Molestation Coverage: ORGANIZATION shall procure Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
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and maintain sexual abuse and molestation liability coverage in an amount not less than One Million Dollars ($1,000,000) per occurrence, Two Million Dollars ($2,000,000) general aggregate. This coverage may be part of commercial general liability coverage, professional liability coverage, or a separate policy.

5. Liquor Liability Insurance: ORGANIZATION shall maintain liquor liability insurance in an amount not less than One Million Dollars ($1,000,000) per occurrence, Two Million Dollars ($2,000,000) general aggregate.

C. General Insurance Requirements.

1. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California and with an A.M. Best’s rating of A- or better and a minimum financial size VII, and shall comply with the following:

2. ORGANIZATION agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insured CITY, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992 or similarly worded endorsement. ORGANIZATION also agrees to require all contractors, and subcontractors to do likewise.

3. No liability insurance coverage provided to comply with this AGREEMENT shall prohibit ORGANIZATION, or ORGANIZATION’s employees, or agents, from waiving the right of subrogation prior to a loss. ORGANIZATION agrees to waive subrogation rights against CITY regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

4. All insurance coverage and limits provided by ORGANIZATION and available or applicable to this AGREEMENT are intended to apply to the full extent of the policies. Nothing contained in this AGREEMENT or any other agreement relating to CITY or its operations limits the application of such insurance coverage.

5. Umbrella or Excess Liability insurance may be used to meet the aboverequired liability limits.

6. None of the coverage required herein will be in compliance with the requirements of this AGREEMENT if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

7. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

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8. All coverage types and limits required are subject to approval, modification and additional requirements by CITY, at its sole election.

ORGANIZATION shall not make any reductions in scope of coverage (e.g., elimination of contractual liability or reduction of discovery period) that may affect CITY’s protection without CITY’s prior written consent.

9. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverage required and an additional insured endorsement to ORGANIZATION’s general liability policy, shall be delivered to CITY at or prior to the execution of this AGREEMENT. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, CITY has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium or otherwise terminate this AGREEMENT. Any premium so paid by CITY shall be charged to and promptly paid by ORGANIZATION or deducted from sums due ORGANIZATION, at CITY’s sole election.

10.Certificate(s) are to reflect that the insurer will provide 30 days written notice to CITY of any cancellation of coverage. ORGANIZATION agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will “attempt” (as opposed to being required) to comply with the requirements of the certificate.

11.It is acknowledged by the parties of this AGREEMENT that all insurance coverage required to be provided by ORGANIZATION or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self-insurance available to CITY. ORGANIZATION shall ensure that each policy of insurance required herein reflects this AGREEMENT and is written into each policy.

12.ORGANIZATION agrees to ensure that its sub-consultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by ORGANIZATION, provide the same minimum insurance coverage required of ORGANIZATION.

ORGANIZATION agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.

13.ORGANIZATION agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein.

If ORGANIZATION’s existing coverage includes a deductible or selfinsured retention, the deductible or self-insured retention must be Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
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declared to CITY. At that time CITY shall review options with ORGANIZATION, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. To the extent CITY agrees to any deductible or selfinsured retention under any policy required under this AGREEMENT to which CITY is named as an additional insured, ORGANIZATION shall be required to modify the policy to permit CITY to satisfy the deductible or self-insured retention in the event ORGANIZATION is unable or unwilling to do so as a means to ensure CITY can avail itself to the coverage provided under each policy.

14.CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving ORGANIZATION ninety (90) days advance written notice of such change. If such change results in substantial additional cost to ORGANIZATION, CITY will negotiate additional compensation proportional to the increased benefit to CITY.

15.For purposes of applying insurance coverage only, this AGREEMENT will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this AGREEMENT.

16.ORGANIZATION acknowledges and agrees that any actual or alleged failure on the part of CITY to inform ORGANIZATION of non-compliance with any insurance requirement in no way imposes any additional obligations on CITY nor does it waive any rights hereunder in this or any other regard.

17.ORGANIZATION will renew the required coverage annually as long as CITY, or its employees or agents face an exposure from operations of any type pursuant to this AGREEMENT. This obligation applies whether or not the AGREEMENT is canceled or terminated for any reason.

Termination of this obligation is not effective until CITY executes a written statement to that effect.

18.ORGANIZATION shall provide proof that policies of insurance required herein expiring during the term of this AGREEMENT have been renewed or replaced with other policies providing at least the same coverage and upon the same terms and conditions herein. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from ORGANIZATION’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to CITY within five days of the expiration of the coverage.

19.Requirements of specific coverage features or limits contained in this Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
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section are not intended as limitations on coverage, limits or other requirements, or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

20.These insurance requirements are intended to be separate and distinct from any other provision in this AGREEMENT and are intended by the parties here to be interpreted as such.

21.The requirements in this Section supersede all other sections and provisions of this AGREEMENT to the extent that any other section or provision conflicts with or impairs the provisions of this Section.

22.ORGANIZATION agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge CITY or ORGANIZATION for the cost of additional insurance coverage required by this AGREEMENT. Any such provisions are to be deleted with reference to CITY. It is not the intent of CITY to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against CITY for payment of premiums or other amounts with respect thereto.

D. ORGANIZATION agrees to provide immediate notice to CITY of any claim or loss against ORGANIZATION arising out of the work performed under this AGREEMENT. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.

12. INDEMNIFICATION
ORGANIZATION shall indemnify, defend, and hold harmless CITY, its City Council, each member thereof, present and future, members of boards and commissions, its officers, officials, agents, employees, consultants and volunteers from and against any and all liability, claims, allegations, obligations, judgments, losses, expenses, including defense costs and legal fees, and claims for damages whatsoever, including, but not limited to, those arising from breach of contract, bodily injury, economic loss, death, illness, personal injury, property damage, loss of use, or property loss however the same may be caused and regardless of the responsibility for negligence. ORGANIZATION’s obligation to indemnify, defend and hold harmless includes, but is not limited to, any liability or expense, including defense costs and reasonable attorneys’ fees, arising from or relating in any way to ORGANIZATION’S use of the SUBJECT FACILITY. It is further agreed, ORGANIZATION’s obligation to indemnify, defend and hold harmless will apply even in the event of concurrent active or passive negligence on the part of CITY, its City Council, each member thereof, present and future, or its officers, officials, agents, employees, and volunteers except for liability resulting from the sole negligence or willful misconduct of CITY, its officers, employees or agents relating to ORGANIZATION’s use of the SUBJECT FACILITY under this AGREEMENT. In the event CITY, its officers, Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
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employees, agents and/or volunteers are made a party to any action, lawsuit, or other adversarial proceeding arising from the use encompassed by this AGREEMENT, and upon demand by CITY, ORGANIZATION shall have an immediate duty to defend CITY at ORGANIZATION’s cost or at CITY’s option, to reimburse CITY for its costs of defense, including reasonable attorneys’ fees and costs incurred in the defense of such matters.

ORGANIZATION waives any right of recovery against CITY, its City Council, each member thereof, present and future, members of boards and commissions, its officers, officials, agents, employees and volunteers for indemnification, contribution, or declaratory relief arising from or relating in any way to ORGANIZATION’S use of the SUBJECT FACILITY. Notwithstanding anything to the contrary in this AGREEMENT, the obligations and responsibilities under this Section shall survive the expiration or termination of this AGREEMENT.

13. RISK OF LOSS
A. CITY shall not be responsible for loss or damage to property, material, or equipment belonging to ORGANIZATION, its agents, employees, volunteers, suppliers, or anyone directly or indirectly employed by ORGANIZATION during the ORGANIZATION’s use of the SUBJECT FACILITY. ORGANIZATION waives any right of recovery against the CITY, its City Council, each member thereof, present and future, members of boards and commissions, its officers, officials, agents, employees and volunteers for fires, floods, earthquakes, civil disturbances, regulation of any public authority, and other causes beyond their control. ORGANIZATION shall not charge results of “Acts of God” to CITY.

B. ORGANIZATION shall report any personal injuries or illnesses or property damage arising at any time during and/or arising out of or in any way connected with ORGANIZATION’s use or occupancy of SUBJECT FACILITY and adjoining property to CITY in writing and as soon as practicable, but in no event not less than 72 hours after occurrence.

14. INSPECTION
A. ORGANIZATION acknowledges and agrees that it is accepting and using the SUBJECT FACILITY in its current, “as-is” condition. ORGANIZATION represents that it has been provided a reasonable opportunity to inspect the SUBJECT FACILITY prior to its use and to identify any defects and/or hazards that may pose a danger to any member of the ORGANIZATION GROUP and/or any other individual who is at the SUBJECT FACILITY as part of ORGANIZATION’s use of the SUBJECT FACILITY.

B. ORGANIZATION shall inspect the SUBJECT FACILITY prior to each use to ensure that it is free from any defects and/or hazards and shall immediately notify CITY of any defect or hazard identified so that the CITY has reasonably sufficient time to warn others and/or mitigate the defect or hazard prior to ORGANIZATION’s use of the SUBJECT FACILITY. ORGANIZATION agrees that should it fail to conduct any such inspection and/or fail to timely notify CITY of any defect or hazard identified, ORGANIZATION shall be solely responsible for any damage or injury, whether to persons or property, arising from the defect or hazard at the SUBJECT FACILITY.

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C. CITY shall have the right to enter the SUBJECT FACILITY hereunder as needed. However, ORGANIZATION expressly acknowledges and agrees that CITY’s exercise of the right to enter shall not create any duty on the party of the CITY to inspect the SUBJECT FACILITY for defects or hazards under this Section or this AGREEMENT.

15. INDEPENDENT CONTRACTOR
Neither the CITY nor its City Council, each member thereof, present and future, members of boards and commissions, its officers, officials, agents, employees or volunteers shall have any control over the manner, mode or means by which ORGANIZATION, its subcontractors, agents or employees, performs the services required herein, except as otherwise set forth herein. The CITY shall have no voice in the selection, discharge, supervision or control of ORGANIZATION’s employees, subcontractors, servants, representatives, volunteers or agents, or in fixing their number, compensation or hours of service, except for the requirement that ORGANIZATION shall conduct background checks when any of their personnel will supervise or have direct contact with youth (under the age of 18) or vulnerable adults pursuant to Section 8 of this AGREEMENT.

ORGANIZATION expressly acknowledges and agrees it is acting as an independent contractor of the CITY and shall remain at all times as to the CITY a wholly independent contractor with only such obligations as are consistent with that role. ORGANIZATION shall not at any time or in any manner represent that it or any of its subcontractors, agents or employees are agents or employees of the CITY. The CITY shall not in any way or for any purpose become or be deemed to be a partner of ORGANIZATION in its business or otherwise, or a joint venture or a member of any joint enterprise with ORGANIZATION.

16. ATTORNEYS’ FEES
Should any litigation or other legal action be commenced between the PARTIES hereto to interpret or enforce the provisions of this AGREEMENT, in addition to any other relief to which the PARTY may be entitled in law or equity, the prevailing PARTY in such litigation or legal action shall be entitled to recover costs of suit and reasonable attorneys’ fees.

17. GOVERNING LAW AND VENUE
This AGREEMENT will be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. Any action at law or in equity brought by any of the PARTIES hereto for the purpose of enforcing a right or rights provided for by this AGREEMENT shall be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the PARTIES hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.

18. ENTIRE AGREEMENT OF THE PARTIES
This AGREEMENT, together with the incorporated exhibits, supersede any and all agreements, either oral or written, between the PARTIES hereto with respect to the use of the SUBJECT FACILITY by ORGANIZATION and contains all of the covenants and Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 License Agreement No. 2026-003
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conditions between the PARTIES with respect to the use of the SUBJECT FACILITY.

Each PARTY to this AGREEMENT acknowledges that no representations, inducements, promises or agreement, orally or otherwise, have been made by any PARTY, or anyone acting on behalf of any PARTY, which are not embodied herein, and that no other agreement, statement, or promise not contained in this AGREEMENT has been made by the PARTIES. Unless otherwise provided in this AGREEMENT, modification of this AGREEMENT can only be made in writing, signed by both PARTIES to this AGREEMENT.

19. SEVERABILITY
Each provision, term, condition, covenant and/or restriction, in whole and in part, in this AGREEMENT shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, in this AGREEMENT is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this AGREEMENT and shall not affect any other provision, term, condition, covenant and/or restriction of this AGREEMENT and the remainder of the AGREEMENT shall continue in full force and effect.

20. COUNTERPARTS
This AGREEMENT may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

21. AUTHORITY TO EXECUTE THIS AGREEMENT
The individuals executing this AGREEMENT, on behalf of the PARTIES, warrants and represents 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.

22. ELECTRONIC SIGNATURES
The PARTIES acknowledge and agree that execution of this AGREEMENT by electronic signatures or electronic transmittal of signatures are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility. [SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the PARTIES hereto have caused this AGREEMENT to be executed the day and year first above written.

BOB ARCHULETA FOR SENATE 2026
By:

[Print Name]

[Title]
By:

[Print Name]

[Title]

CITY OF SANTA FE SPRINGS
Joe Angel Zamora, Mayor
ATTEST:

Maribel Garcia,
City Clerk
APPROVED AS TO FORM:

Rick Olivarez
City Attorney
Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Bob Archuleta's Political Consultant
Fernando Chacon
License Agreement No. 2026-003
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EXHIBIT “A”

PROPOSED SITE PLAN
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EXHIBIT “B”

FACILITY USE PROCEDURES AND RULES
A. ORGANIZATION will have operating rights to schedule activities at the SUBJECT FACILITY, in coordination with the CITY, to ensure a balanced schedule that accommodates both CITY functions and ORGANIZATION events, in rooms designated as “BOB ARCHULETA FOR SENATE 2026” and “Shared Use” (as shown on Exhibit A).

B. The ORGANIZATION will provide a proposed schedule to the CITY at least thirty (30) days in advance of proposed programming or activities at the SUBJECT FACILITY. All programming is subject to CITY approval.

C. The CITY retains the right to reserve the SUBJECT FACILITY for CITY-sponsored events with a minimum of thirty (30) days' notice.

D. The ORGANIZATION will have priority access to the SUBJECT FACILITY for their scheduled programs and events.

E. All users must adhere to the posted SUBJECT FACILITY rules and regulations, and with SFSMC Section 130.04 (UNLAWFUL CONDUCT WITHIN PUBLIC CITY FACILITIES AND CITY PARKS).

F. ORGANIZATION’S use of SUBJECT FACILITY is permitted only during the following hours: Monday through Friday from 9:00 a.m. to 8:00 p.m., and Saturday from 9:00 a.m. to 5:00 p.m. Any use outside of these hours requires approval by the City Manager or designee.

G. Maximum occupancy limits of the SUBJECT FACILITY must be adhered to at all times.

H. Alcohol Service:
a. Prior to serving any alcohol at any event, ORGANIZATION shall obtain express written approval from CITY and follow the conditions stated herein. b. ORGANIZATION shall submit a written request for proposed alcohol service at least thirty (30) days in advance, which shall be accompanied by a proposal that includes the proposed date and hours of alcohol service, adherence to state laws and regulations, and mechanisms to ensure that alcohol is not served to individuals under the age of twenty-one (21) or who are visibly intoxicated. The CITY shall approve or deny the request in its sole and absolute discretion and reserves the right to require such conditions as necessary.
c. ORGANIZATION shall obtain a valid permit issued by the California Department of Alcoholic Beverage Control ("ABC Permit") for the sale of alcoholic beverages at any event.
d. ORGANIZATION shall be responsible for obtaining and maintaining a valid ABC Permit for the duration of proposed alcohol service.

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e. ORGANIZATION shall ensure that any alcoholic beverage served at an event shall be dispensed solely by a licensed bartender who holds the necessary certification or license to serve alcohol within the State of California. ORGANIZATION shall submit a copy of the Licensed Bartender Certification along with bartender’s copy of valid Driver’s License (with current mailing address) and the telephone number to CITY at least five (5) days prior to the reservation/event.
f. ORGANIZATION shall ensure that each bartender providing service at the event has completed all legally required training, including but not limited to the Responsible Beverage Service Training (“RBS”).
g. Service and consumption of alcohol is limited to a designated location of the SUBJECT FACILITY. Outside alcohol is prohibited.
h. Serving alcohol to minors (under the age of 21) or to any individual who is visibly intoxicated is strictly prohibited.
i. ORGANIZATION agrees to comply with all federal, state, and local laws and regulations governing the sale and service of alcohol, including but not limited to the City Facility Reservation and Use Policy. j. Violation of this Section or of any corresponding federal, state, and local laws and regulations will result in the termination of this AGREEMENT.

I. All individuals entering the SUBJECT FACILITY shall be respectful and avoid engaging in, riotous, boisterous, threatening, disruptive, lewd, obscene, or indecent conduct, or to use abusive, profane, intimidating, demeaning, or harassing indecent language that amounts to a use of force or a true threat of force. Any incidents of misconduct or rule violations must be reported to the CITY immediately.

J. CITY will provide keys and/or alarm access to ORGANIZATION for the purpose of accessing the SUBJECT FACILITY solely in connection with the permitted uses described in this AGREEMENT. ORGANIZATION shall be responsible for safeguarding all keys and access credentials and shall not duplicate or share them without the prior written consent of CITY. ORGANIZATION shall promptly notify CITY of any loss, theft, or compromise of such keys or access credentials. Upon termination or expiration of this AGREEMENT, ORGANIZATION shall immediately return all keys and access credentials to CITY.

K. CITY will not be held responsible for loss, damage or theft of equipment or personal articles owned, leased or rented by the ORGANIZATION and stored on CITY property.

L. Facilities may not be used for personal profit, solicitation, or sales without written approval.

M. For other rules or regulations not covered within Exhibit “B,” refer to Exhibit “C” Facility Reservation and Use Policy (FRUP).

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EXHIBIT “C”

FACILITY RESERVATION AND USE POLICY (FRUP)
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1 FACILITY RESERVATION AND USE POLICY

1. INTRODUCTION

1. The City of Santa Fe Springs (“City”) coordinates and issues permits for the use of facilities to organizations and the general public for cultural, social, recreational activities, and programs. The City will work to ensure fair and equitable allocation of space.

2. GOALS

1. The goal of this policy is to establish guidelines, rules, and procedures for the utilization of certain City facilities. This policy serves several purposes including the regulation of the use of City facilities, the effective management of City resources, the outlining of safety measures and security protocols, the preservation of the integrity and longevity of City facilities and assets, and ensuring compliance with legal requirements, regulations, and standards related to facilities operations.

3. PURPOSE

1. The purpose of this policy is to establish regulations and processes to ensure access of facilities for the use by the general public; to coordinate multiple facility spaces; to assure preservation of facilities; to prevent uses that are unsafe, unlawful, or impermissible; and to assure financial accountability for damage caused by field or facility use.

4. DEFINITION OF TERMS

1. Resident: A person whose primary residence is in the City (and those whose address is located in an unincorporated zip code that the Community Development Department has determined to be resident status).
a. Business Resident: A business owner whose business address is headquartered within the City boundaries, as verified by their Tax Identification Number, and whose name is on the business license.
b. School Resident: A school resident is defined as a student, who attends a school within the City boundaries but resides in a city that is not Santa Fe Springs. School Residents do not qualify for reservation resident rates.

2. Immediate Family Member: Immediate family members consist of spouse or domestic partner, parents, including stepparents and foster/adoptive parents, children, including stepchildren and foster/adopted children, siblings, including stepsiblings and half-siblings, grandparents, grandchildren, or legal guardian.

3. City Employee: A person who is employed by the City. City Employees must be active City employees to receive a facility reservation discount. The discount is outlined in the City’s Fee Schedule.

4. Non-Profit Organization: A non-profit organization is an entity that operates for purposes other than profit-making and is recognized as a current 501(c)(3) nonprofit Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
2 public benefit corporation by the Internal Revenue Service (“IRS”). Its primary goal is to further a particular social cause or advocate for a specific mission.

5. Renter: A person who pays a fee to use City facilities under a Facility Rental Agreement.

6. Special Events:
a. City-Sponsored or Co-Sponsored Special Events: Events sponsored or co-sponsored by the City, such as ArtFest, Independence Day Celebration, Relay For Life, etc. These events are directly organized or supported by the City.
b. Private Occasion Reservation Special Events: Events organized by private citizens for special occasions. These events require a permit for the use of City facilities.
i. Business Meeting: A business meeting is convened with the primary objective of facilitating decision-making processes, discussing corporate objectives, conducting employee training sessions, hosting seminars, workshops, or other educational endeavors pertinent to business operations. Business meetings adhere to a professional environment and do not permit the inclusion of alcoholic beverages. Furthermore, they abstain from incorporating entertainment elements such as DJ’s or live bands.
ii. Special Occasion Event: A special occasion event is a social gathering that may include, but is not limited to, a special form of recognition/celebration honoring individual(s), a holiday, or special occasion.
iii. Funeral Reception: A funeral reception is a gathering held within thirty (30) days of a funeral service to provide an opportunity for mourners to come together, offer condolences, share memories of the deceased, and provide support to the bereaved family and friends.
iv. Celebration of Life: A celebration of life is an event held to honor and commemorate the life of a deceased individual. Celebrations of life that do not occur within thirty (30) days of a funeral are considered a Special Occasion Event and subject to Special Event fees.
c. Third-Party Public Special Events: Events organized entirely by third-party private citizens or organizations that meet any of the following criteria:
i. hosting more than one hundred (100) people; or
ii. featuring food and/or informational vendors; or
iii. impede on a public right of way.

These events are not sponsored or co-sponsored by the City. Examples include large festivals, concerts, a business expo or fair, or parades.

Third Party Special Events may be subject to additional requirements, including, but not limited to Temporary Use Permit (See Chapter 119 (Reserved) of Title 11 (Business Regulations)) of the Santa Fe Springs Municipal Code.
d. Types of Entertainment:

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3 i. DJ (Disk Jockey): A DJ plays recorded music from various genres and interacts with the audience by mixing songs together and sometimes providing announcements or commentary.
ii. Live Band: A group of musicians who perform music live using amplified instruments such as guitars, drums, keyboards, etc.
iii. Mariachi Band, Quartet, or Quintet: A traditional musical group typically consisting of acoustic guitars, violins, trumpets, and sometimes other instruments.
iv. Trio: A smaller ensemble consisting of three musicians who may play a variety of instruments such as guitar or violin.
v. Soloist: A single performer who sings or plays an instrument alone, providing entertainment for the event. This could be a singer, guitarist, pianist, or any other musician performing individually. vi. Dance: A dance group consisting of many forms of dance that are created and performed to entertain an audience, this can include folk, recitals, or story dances.

5. RESERVATIONS

1. Due to the high demand for facilities, applications for reservations will be accepted as follows:
a. Residents – twelve (12) months in advance (open at the beginning of the month).
b. Non-Residents – nine (9) months in advance.
c. Reservations will not be accepted less than thirty (30) days from event date. d. EXCEPTIONS:
i. Funeral Receptions.
ii. Heritage Park or Clarke Estate Reservations.
iii. Park rental facilities during regularly staffed hours.

2. City reserves the right to change, or cancel any reservation, at any time resulting from City activity and/or maintenance.

3. A facility is not considered rented until (i) Renter submits to City a signed City Rental Agreement, down payment and/or rental fee, a credit card authorization form, certificate of insurance and endorsements, written evidence of permits and licenses, and any other items deemed necessary and requested by City; and (ii) City, in its sole discretion, approves such rental in writing.

4. The signatory of a City Rental Agreement must be the Renter and at least eighteen (18) years of age if alcohol will not be served, or at least twenty-one (21) years of age if alcohol will be served.

5. Renter shall be present for the entirety of the event, including set-up and breakdown periods.
a. Exception: For weddings, or funeral receptions, if the Renter is the bride or groom, the Renter shall provide City with a single contact to serve as the representative for Renter’s activities. However, the representative is not able to make changes to event date, times, and layout.

6. Renter shall be responsible for securing all required permits and licenses.

Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
4 7. The facility shall be used for the purpose stated in the Facility Rental Agreement. No other use will be permitted.

8. Renter shall not use City’s name to suggest endorsement or sponsorship of the event without prior written approval of City. Renter’s publicity of the event shall clearly and accurately identify the name of the sponsoring organization or individual.

9. Renter shall permit any City officers, employees, or agents to visit the event described in the City Rental Agreement.

10.Under no circumstances shall Renter sublease or allow any other organization or individual to use the facility for the period for which Renter has contracted.

11.Renter is an independent contractor and not considered an agent or employee of City, even if the renter is employed by the City.

12.Renter is allowed one (1) date change per reservation confirmation, provided that the date change occurs with six (6) months or more from the original reservation date.

Cancellation that occurs after a date change will result in forfeiture of downpayment.

6. COMPLIANCE WITH ALL APPLICABLE LAWS, RULES, REGULATIONS

1. Renter shall comply with all local, state, and federal laws and regulations related to the use of the facility and public gatherings.

2. Renter agrees to abide by all applicable local, state, and federal, accessibility standards and regulations.

3. The Renter agrees to comply with all applicable City ordinances, rules, and regulations, including but not limited to Santa Fe Springs Municipal Code Section §130.04 – Unlawful Conduct Within Public City Facilities and City Parks. The Renter understands that failure to comply with any City ordinance or directive from City staff may result in revocation or suspension of the rental permit, removal of individuals from the premises, immediate cancellation of the event, and/or assessment of additional fees or charges. The City reserves the right to take any action necessary to protect public safety, City property, and the well-being of participants and staff.Renter agrees to be solely responsible for reviewing and ensuring compliance with all applicable public health rules, regulations, orders, and/or guidance in effect at the time of the use of the facility, for example, use of appropriate sanitation practices, physical distancing, limits on the size of gatherings, etc.

4. City reserves the right to immediately revoke Renter’s right to use of the facility should Renter fail to comply with any provision of this section.

7. FEES

1. Rental fee and/or down payment can be made online, or in-person via credit card, cash, or check. Fees must be paid thirty (30) days prior to event date. Checks are not accepted less than thirty (30) days prior to event date.

2. City will require a rental fee and/or a down payment from Renter. Some non-profit agencies may be eligible for a facility fee waiver (see Section 19, FEE WAIVERS).

3. Cancellations of reservations may be subject to the withholding of a portion of, or the entire, rental fee and down payment for the facility (see Section 18 for WITHHOLDING AND ADDITIONAL FEES).

4. Renter will forfeit down payment and City may charge an additional amount for any Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
5 event continuing past the ending time stated in the Facility Rental Agreement.

5. In the event facility is left damaged, Renter will forfeit down payment and may be charged for any and all janitorial and/or repair fees incurred by City as a result, and those fees will be billed to Renter.

8. INDEMNIFICATIONc

1. Renter shall indemnify, defend, and hold harmless City, and its officers, employees, and agents from and against any and all causes of action, claims, liabilities, obligations, judgments, losses, costs, expenses, or damages, including liability for injuries or illnesses to any person or persons or damage to property arising at any time during and/or arising out of or in any way connected with Renter’s use or occupancy of the facility and adjoining property, unless solely caused by the gross negligence or willful misconduct of the City, its officers, employees, or agents. In the event City indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Renter’s use or occupancy of the facility and adjoining property, Renter shall provide a defense to the City indemnitees, or at the City’s option, reimburse the City indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

2. Renter waives any right of recovery against City, its officers, employees, and agents for indemnification, contribution, or declaratory relief arising out of or in any way connected with Renter’s use or occupancy of facility and adjoining property, even if City, its officers, employees, or agents seek recovery against Renter. This provision does not apply to claims or damages caused by the City’s sole negligence, gross negligence, or willful misconduct.

3. Renter waives any right of recovery against City, its officers, employees, and agents for fires, floods, earthquakes, civil disturbances, regulation of any public authority, and other causes beyond their control. Renter shall not charge results of “acts of God” to City, its officers, employees, or agents.

4. Renter shall report any personal injuries or illnesses or property damage arising at any time during and/or arising out of or in any way connected with Renter’s use or occupancy of facility and adjoining property to City in writing and as soon as practicable, but in no event not more than seventy-two (72) hours after occurrence.

9. INSURANCE REQUIREMENTS AND SPECIFICATIONS

1. The City, at its sole discretion, may apply insurance requirements and specifications.

2. General liability insurance. Renter shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

3. Proof of insurance. Renter shall provide certificates of insurance to City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City prior to commencement of the rental. Current certification of insurance shall be kept on file with City at all times during the term of this Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
6 AGREEMENT. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

4. Additional Insured Status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

5. Duration of Coverage. Renter shall procure and maintain for the duration of the Facility Use Agreement insurance against claims for injuries to persons or damages to property, which may arise from Renter’s use or occupancy of facility and adjoining property.

6. Primary/Non-Contributing. Coverage provided by Renter shall be primary, and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance policies shall include or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

7. Waiver of subrogation. All insurance coverage maintained or procured pursuant to the Facility Use Agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Renter or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Renter hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its vendors.

8. Notice of cancellation. Renter agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. Renter agrees to oblige its insurance agent or broker and insurers to provide CITY with a thirty (30) day notice of any change of coverage or limits.

9. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by City.

10.Enforcement. Renter acknowledges and agrees that any actual or alleged failure on the part of City to inform Renter of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder.

11.Requirements not limiting. Requirements of specific coverage features, or limits contained in this section, are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be allinclusive, or to the exclusion of other coverage, or a waiver of any type. If the Renter maintains higher limits than the minimums shown above, City requires and shall be Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
7 entitled to coverage for the higher limits maintained by Renter. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

12.Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

13.City’s right to revise specifications. City reserves the right at any time during the term of the Facility Use Agreement to change the amounts and types of insurance required by giving the Renter at least thirty (30) days advance written notice of such change. However, CITY reserves the right to give less than thirty (30) days notice if City first becomes aware of an issue and needs to change the amounts and types of insurance within thirty (30) days of the scheduled event.

14.Additional Insurance. Renter shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its use or occupancy of the FACILITY and adjoining property.

15.Timely notice of claims. Renter shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Renter’s use or occupancy of the facility and adjoining property, and that involve, or may involve, coverage under any of the required liability policies.

CITY reserves the right to require additional lines of insurance, and any additional insurance, will be agreed to by Renter in writing. Additional insurance may include, but is not limited to:

1. Automobile liability insurance. Renter shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Renter arising out of or in connection with the facility use, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

2. Sexual abuse/molestation insurance. Renter shall procure and maintain sexual abuse and molestation liability coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. This coverage may be part of commercial general liability coverage, professional liability coverage, or a separate policy.

3. Liquor liability insurance. Renter shall maintain full liquor liability insurance coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate.

4. Workers’ compensation insurance. Renter shall maintain workers’ compensation insurance (statutory limits) and employer’s liability insurance (with limits of at least $1,000,000). Renter shall submit to City, along with the certificate of insurance, a waiver of subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.

5. Cyber liability insurance. Renter shall procure and maintain cyber liability insurance with limits of $1,000,000 per occurrence, $2,000,000 general aggregate.

6. Other. If Renter contracts with a third-party service provider (e.g., caterer), Renter will require the service provider to procure and maintain at its sole cost and expense Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
8 comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, and if applicable, liquor liability coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, or other lines of coverage City requires. Both City and Renter shall be endorsed as additional insureds.

10. SECURITY

1. City, at its sole discretion, may require a certain number of security officers for the event. Renter shall be responsible for paying or reimbursing City for all costs and expenses in providing security.

2. Renter is solely responsible for supervising all individuals at the facility and adjoining property(ies) during the event. City is not responsible for providing this supervision.

However, City may remove individuals from the facility during the event if their conduct is not in the best interest of the public, against the City’s Code of Conduct, or is deemed to be detrimental in any way by City staff.

11. SET-UP / CLEAN-UP / DECORATIONS

1. Renter, caterers, bands, vendors, entertainment, photo booths, transportation of rental equipment, and related individuals and activities will not be permitted access to the facility prior to the event set-up time period, or after event breakdown period, as indicated on the Reservation Confirmation. Renter shall be responsible for arranging access during the time requested for entry and exit of the facility.

2. Renter shall not prepare or decorate the facility prior to the event setup time, unless Renter provides rental fees, down payments, and insurance for the time of the preparation and/or decoration.

3. Renter shall not drive or permit to be driven nails, hooks, tacks, pins, screws, poles, stakes, tape, glue dots, glue, adhesives, or other forms of fasteners into any part of the facility and shall not make or allow to be made any alterations of any kind therein.

All décor items utilized by the Renter must be free-standing and remain unattached from any part of the facility.

4. Renter is responsible for ensuring that free-standing décor must be displayed, utilized, and/or weighted to prevent it from moving or falling.

5. The use of glitter, confetti, rice, coins, paper currency, silly string, whip cream, birdseed, spray cans, hay, straw, event scatter, or similar type of items, is prohibited.

6. Signs and decorations may not be placed outside the building, trees, shrubbery, or planter areas.

7. Open flames of any kind, candles, smoke, fog machines, bubble machines and piñatas, are NOT allowed. Electronic/flameless candles are permitted.

8. Standard glass vases for floral arrangements are allowed. Glass beverage containers are not allowed as centerpieces.

9. Balloons may NOT be released/loosed inside facility. Balloons must be on weights and set on tabletops. Balloon arches are permissible if they do not exceed height restrictions, as described in the City municipal code.

10.Renter shall be responsible for all clean-up of the facility, including adjacent grounds, lobbies and restrooms, at the end of the rental. Renter shall pick up, bag, sweep, mop, remove all trash, and/or bodily fluid discharge, generated by all activity in any Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
9 way connected with its use of the facility, leaving the facility clean and free of all trash and litter. Renter shall also leave all fixtures, if any, in good working condition.

11.Renter shall not store any equipment or materials at the facility or adjoining property.

12.Renter shall be responsible for any and all damage to the facility and/or its contents during use. In the event damage occurs or excessive cleaning is necessary, Renter shall be charged for any and all janitorial and/or repair fees incurred by City as a result, and Renter’s down payment may be withheld, or credit card on file may be charged.

13.Renter’s may utilize equipment from third-party vendors (such as chairs, tables, stages, lecterns, pipe and drape, archways, portable bars, generators, etc.). The use of third-party rental equipment must be approved by City more than thirty (30) days prior to event date. Aforementioned equipment may not be stored overnight and must be delivered and picked up within the times indicated on the Reservation Confirmation. Third-party equipment must be completely off of any public grounds within the allotted takedown time. Renter must provide a vendor agreement and a Certificate of Liability Insurance (see Insurance Requirements & Specifications) when third-party equipment is utilized.

14.Renter is responsible for arrangement of any third-party equipment, decorations, and/or set-up; this includes unloading, delivery into the facility, take down, and transport out of the facility. City staff is NOT responsible for third-party equipment.

Additionally, delivery of any third-party equipment will NOT be signed for by staff.

Applicant must be present for the delivery and pick-up of equipment.

15.Renter’s facility rental fee includes three (3) hours of set-up time only, and one (1) hour of breakdown/cleanup time.
a. Exceptions:
i. Little Lake Park: If renting the Meeting Room at Little Lake Park, there is a 6-hour maximum use time not including set-up and cleanup. No event shall end past 8 p.m.

16.Covered Picnic Areas: rental fee includes one (1) hour of set-up time only, and one (1) hour of breakdown/cleanup time.
a. Additional set-up time (maximum of two (2) hours may be purchased for decoration/set-up purposes only.
b. Decorating must take place immediately before event start time. c. Additional time MUST be purchased 30 days prior to scheduled event. Guests will not be allowed to enter the facility room until the time indicated on the Reservation Confirmation.

12. EQUIPMENT / ACCESSORIES

1. Renter shall not remove, relocate, or take City property outside of the FACILITY for any reason.

2. Renter shall not use City equipment, tools, or furnishings located in or about the FACILITY.

3. Renter shall not drive motorized vehicles on fields, green space, paths, or facility grounds.

4. Renter shall secure the approval of City before using audio/visual systems, public address systems, and live or recorded amplified music. Renter shall not record, Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
10 televise, or broadcast the event or any portion thereof without prior written approval of City.

13. FOOD & BEVERAGE

1. Renter is responsible for ensuring that all food prepared/cooked/served is compliant with Los Angeles County Department of Public Health regulations and protocols.

2. Cooking with open flames must be done outdoors.
a. i.e., taco cart, bbq smokers, grills, etc.

3. Cooking oil must be discarded in proper containers or must be taken at the conclusion of the event.

4. Chaffing dishes and service utensils are not provided by the City. a. EXCEPTION: Gus Velasco Neighborhood Center Pio Pico Room may provide chaffing steam table, on a case-by-case basis.

5. Food may be warmed at onsite kitchen but cannot be prepared or cooked in the kitchen.

6. All City facilities allow catering type vehicles (i.e., food trucks). Renter must get approval from City to have such vehicles at least thirty (30) days prior to reservation/event date, and is subject to additional fees and regulations.

7. Renter is responsible that all food, containers, utensils, or similar type of items are removed from the facility at the end of the event.

8. For the Clarke Estate and Heritage Park, Renter is responsible for the following additional requirements:
a. Applicant agrees to hire a food caterer from the City’s Preferred Catering List. i. If Renter chooses to select a caterer that is not on the City’s Preferred Catering List, renter must provide a copy of the invoice to the City, and pay a ten percent (10%) catering fee to the City, prior to the event.

9. Alcohol and Beverage Consumption
a. The signatory of the Facility Use Agreement must be the Renter and at least eighteen (18) years of age if alcohol will not be served, or at least twenty-one (21) years of age if alcohol is served.
b. If serving alcohol, applicant is required to have a licensed bartender at all times while serving guests. Anyone under the age of 21 is prohibited from standing behind the bar at any time. Self-serving is not allowed. i. EXCEPTION: Clarke Estate & Heritage Park: Applicant must use a licensed bartending service from the City’s exclusive bar service list and subject to a twenty percent (20%) bartending fee to the City. c. Renter will submit a copy of the Responsible Beverage Service Licensed Bartender Certification along with bartender’s copy of valid Driver’s License (with current mailing address) and the telephone number to City at least five (5) days prior to the reservation/event. A copy of the Alcohol Policy and Procedures will be provided to the Licensed Bartender.
d. Applicant must ensure that the licensed bartender complies with all state laws. e. OUTSIDE ALCOHOL IS NOT ALLOWED. Guests may NOT consume alcohol in the parking lot, restroom, lobby or on any other City property. Guests are not permitted to bring alcohol. Violations may be subject to closure of event Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
11 and loss of down payment, or charge of the credit card on file. Alcohol is only allowed within the designated facility. Flasks or personal beverage containers containing alcohol are prohibited. Staff reserves the right to inspect any coolers, bags, or containers, brought by the Renter, or the Renter’s guests. f. Alcohol is not permitted to be dropped off at facility and left unattended.

Bartending services, and/or reservation holder, must be present to receive pre-purchased alcohol. Staff will not receive alcohol from applicant to hold until bartending service arrives.
g. The serving of alcohol MUST stop thirty (30) minutes before the end of the event. Staff will ensure that bar closes thirty (30) minutes prior to end of event. h. Alcohol (i.e. champagne, wine, beer, etc.) MAY NOT be placed on tables as part of the decoration and/or for guests to self-serve. All alcohol beverages must be served to guests in disposable cups (beverage containers made of glass are not allowed, filled or empty).
i. For a Celebratory Toast, alcohol must be served at the bar, by the bartender, and must be served in plastic stemware.
j. Heritage Park & Clarke Estate:
i. For ceremony and reception reservations, applicant understands that alcohol may not be served until completion of the ceremony. All alcohol must be served from a designated bar area. Alcohol is not permitted following a ceremony-only reservations.
k. Staff reserves the right to close the bar if deemed necessary (i.e. if applicant and/or guests are not in compliance). Violations may result in event closure and loss of down payment, and/or incurring additional charges to the credit card on file.
l. Serving alcohol to minors, and/or consumption of alcohol by minors (under age of 21), is strictly prohibited. Violations of this may result in closure of the event and denial of future facility use by City.
m. Serving alcohol to an intoxicated person is prohibited. Violations of this may result in closure of the event, and denial of future facility use by City. n. The applicant agrees to comply with all State and Municipal Laws concerning the sale of and consumption of alcoholic beverages while using the facility.

Failure to comply with this policy will result in event being terminated immediately, and down payment will not be refunded, and credit card on file may incur additional charges.
o. Alcoholic beverages are not allowed in park settings (SFSMC §130.04). p. If selling alcohol:
i. An Alcohol Beverage Control (ABC) License is required. ii. The license can be obtained a maximum of two (2) weeks prior to the scheduled event and must be submitted to the City at least five (5) days prior to the scheduled event. If the license is not submitted on time, alcohol cannot be sold at the event.
iii. Required license can be purchased at: Alcohol Beverage Control Office, 222 E. Huntington Drive, Suite 114, Monrovia, CA 91016, (626) 256 – 3241, www.abc.ca.gov.
iv. Applicant must obtain the license in person and must take the following documents:

Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
12 1. Letter of Permission from City (a Community Services Supervisor can provide this letter)

2. A Cashier’s Check or Money Order. (Method of payment is subject to change at the election of City)

3. For nonprofit organizations wanting to sell alcohol – proof of nonprofit status, IRS Exception Certificate, and Bylaws.

14. COVERED PICNIC AREAS

1. Renter is responsible for obtaining City’s approval to have vendors at their reservation.

2. Dunk tanks, petting zoo, and pony rides are not permitted on the park. Game trucks and food trucks are permitted at all locations at designated areas and require an additional fee (see Fee Schedule for more details).

3. No form of amplified sound is permitted (i.e. P.A. systems, bands, DJ’s, etc.).

4. Renter will provide their own charcoal for the BBQ grills. Renter can bring a propanefueled grill.

5. Additional setup and/or breakdown time may be purchased at additional rates (see Fee Schedule for more details).

6. Up to three (3) EZ-Up canopies may be brought on to the park. Each EZ-Up may not exceed the size of 10’ x 10’ (S.F.S.M.C. §130.04.B.23-24).

7. Renter is responsible for ensuring that free-standing décor, or EZ-Up canopies must be displayed, utilized, and/or weighted to prevent it from moving or falling.

15. INFLATABLE AMUSEMENTS (JUMPERS)

1. Inflatable amusements (i.e., moon bouncers, bounce houses, or jumpers), are allowed in City parks at the following locations and must meet the following criteria:
a. Allowed at the following locations: Lakeview Park, Little Lake Park, Los Nietos Park, Santa Fe Springs Park.
b. Conventional size jumpers only. Inflatables larger than 30' X 30' are NOT allowed. Jumpers with water and amusements with mechanical components (i.e. mechanical bull) are not permitted.
c. Renter is responsible for providing to the City a copy of inflatable amusement (jumper) vendor’s liability insurance; Vendor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
d. Renter is responsible for ensuring that they obtain an inflatable amusement (jumper) that is compliant with the American Society for Testing Materials (ASTM) Designation F2374-10.
e. The vendor or reservation holder must provide its own electricity (i.e. silent generator).
f. City and its employees are not responsible for any inflatable amusements Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
13 (jumper) left on the premises before or after permitted hours. g. City and its employees are not responsible for any damages caused to the inflatables.
h. City and its employees are not liable for any injuries to anyone participating in the use of the inflatable amusement (jumper) set-up on any City facility. i. Staff must be present while inflatable amusement (jumper) is set-up at the park. Renter may purchase additional time for set-up .
j. Only two (2) inflatable amusement (jumper) are allowed at each park at any time. Only one (1) jumper is allowed per reservation.
k. A fee is required for an inflatable amusement (jumper) permit if a picnic area is not rented (see City’s fee schedule for specific fees). l. All inflatable amusement (jumper) requirements are due to the City no less than two (2) weeks prior to the event date. This includes company information and insurance requirements.
m. The inflatable amusement (jumper) unit must be staked down at all times while in use.
n. Park staff is not responsible for supervision of children in inflatable amusement (jumper). Supervision of children in the inflatable amusement (jumper) is required at all times.

16. MISCELLANEOUS

1. Renter shall not admit a larger number of individuals than indicated on the approved Reservation Confirmation.

2. Gambling of any kind is not permitted at the facility.

3. Smoking is not permitted inside or within 25’ of the facility. a. Smoking or possessing any lit cigar, cigarette, e-cigarette, vaping device, or pipe, unless City has designated a specific smoking area, is not allowed.

4. No animals are permitted at the facility, except for service animals, as defined under the Americans with Disabilities Act, which are individually trained to do work or perform tasks for people with disabilities.

5. If Renter violates any part of this policy or reports false information to City, City may refuse Renter further use of the facility, and Renter shall forfeit a portion, or all, of the rental fee and/or the down payment, and/or incur additional charges to the credit card on file.

6. City may impose additional requirements as deemed necessary to protect the health, safety, and/or welfare of the community.

7. The facility is not to be used by applicant for commercial benefit or profit-making purposes. Solicitation of money (including admission charges, dues, donations or sales) is prohibited. An exception is made for community-based incorporated groups and nonprofits; however, verification of 501(c)(3) status, through their tax ID application, must be submitted, and approval must be granted by the City Manager.

8. City is not responsible for items that are lost, stolen, or damaged in or on the grounds of the facilities. Leaving personal items unattended or bringing in personal belongings that are disruptive to the primary use of space are not allowed.

17. FORCE MAJEURE
Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
14 1. In the event of a natural disaster, government or societal actions, infrastructure failures, or Act of God, City will not be responsible for any costs incurred by the Renter, including, but not limited to, invitations, entertainment, food, beverages, decorations, giveaways, photographers, attractions, inflatables, or any other related expenses.

18. WITHHOLDING AND ADDITIONAL FEES

1. Ddown payment is due at the time application is submitted.

2. The applicant will be billed for any costs exceeding the down payment or facility use fee. If all requirements of the Facility Use Agreement have been met,

3. Down payments are fees toward the reservation and are not refundable.

4. The City reserves the right to charge the Renter’s credit card on file for any costs incurred as a result of damages, vandalism, excessive trash, failure to clean and restore the facility to its original condition, unauthorized use of equipment or areas, and/or any additional time beyond the contracted rental period. All associated fees will be assessed based on actual repair, replacement, cleaning, or staffing costs as determined by the City.

5. Renter agrees to reimburse City for any loss or damage to CITY property caused by party, guests, and/or contracted vendors, and additional charges may be incurred

6. The balance of fees are due 30 days prior to the scheduled event. If the fees are not paid as required, the reserved date will be cancelled.

7. Down payment will be held if cancellation takes place less than six (6) months of event.

A $100.00 non-refundable fee will be charged for event cancellation between six (6) months to one (1) year of event date.
a. EXCEPTION: If cancelling covered picnic areas at Lakeview Park, Little Lake Park, Los Nietos Park, and Santa Fe Springs Park more than thirty (30) days prior to event date, Renter will be refunded 50% of down payment. If cancellation occurs under thirty (30) days of event date, Renter will forfeit down payment and will be refunded any FACILITY fees.

8. All cancellations must be conducted in person with picture ID, or in writing via email from the email address on file; otherwise, Renter’s down payment will not be refunded.

9. Per City policy, City employees are not permitted to accept gratuities or gifts of any kind.

10. If Renter exceeds the time indicated on the Reservation Confirmation, down payment may be withheld and additional fees may be incurred, and the credit card on file will be charged for any additional fees.

19. FEE WAIVERS

1. The City of Santa Fe Springs recognizes and appreciates the value of partnering and collaborating with other agencies and organizations to provide services that benefit the community and its residents. In an effort to provide support to organizations, the City of Santa Fe Springs has established a policy for determining when fees may be waived.

2. Process
Fees established by the City of Santa Fe Springs for the use of City parks and Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
15 facilities may be waived by the Department Director (up to $500), or the CityManager, or designee, up to $4,999, if the Renter submits a fee waiver application and meets the defined criteria within this policy. i. A Fee Waiver application must be submitted no later than 45 days prior to the date of the event.
ii. Approval of the fee waiver does not relieve the
applicant/organization of the obligations to comply with all other permit requirements, including but not limited to submitting a facility use application, liability insurance, health permits, ABC License, down payment, etc.

3. Fees and costs that are NOT eligible to be waived:
a. Staffing or labor
b. Refuse costs
c. Custodial/Janitorial costs
d. Maintenance costs
e. Other City charges

4. Eligibility
a. Tier I Criteria: City recognizes the value that organizations/agencies play in providing benefits to the community and Santa Fe Springs residents. Fees may be waived for organizations/agencies if any of the following criteria are met:
i. A non-profit organization or association must be headquartered in Santa Fe Springs (must have a physical address in Santa Fe Springs), verified through their current 501(c)(3) Tax Identification Number. Such organization shall be organized and exist in the City for a minimum of one (1) year prior to the event.
ii. The organization must have as their sole purpose to benefit the City or a particular City Department or service.
iii. Schools located within the City of Santa Fe Springs or related organizations such as private schools within the City.
iv. Government agencies where the fee waiver will provide essential public services that align with City’s mission of serving the community.
b. Tier II Criteria: Organizations/agencies that do not meet the criteria under Tier I may still qualify if they are able to meet all criteria in Tier II. i. The event or program is consistent with City or City Department’s mission, values, and objectives.
ii. The program or event provides a valuable and definable benefit to the Santa Fe Springs community; including but not limited to youth programs and events.
iii. The proposed event or program will have no negative impact on the existing facility/park or cause the need for increased maintenance; and will not displace any existing City programs or reservations. iv. There is no evidence of previous violations of any permits previously issued to applicant or organization.

Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 Effective 1/1/26
16 c. The City Manager may waive fees for organizations that benefit the public, promote civic engagement, as well as support safety, health, and welfare, aligning with the City 's mission.
d. Appeals: The applicant may submit a written appeal (letter or email) directly to the City Manager within ten (10) calendar days of the fee waiver denial.

20. CONTINUAL USE FEE WAIVERS

1. Organizations may utilize City parks and facilities for continual use if specific criteria are met. Organizations must meet eligibility requirements and the continual use of City parks and facilities may be issued a reduced fee of Thirty Dollars ($30.00) per day (fees subject to change), per use. The application period is renewed every twelve (12) months in January. Continual use may be revoked at any time for violations of this Policy. Organizations must meet the following criteria:
a. A non-profit organization or association must be headquartered in Santa Fe Springs, verified through their Tax Identification Number. i. Such organizations shall be organized and exist in the City for a minimum of one year (1) prior to the start date of the first event. ii. Schools located within the City of Santa Fe Springs or related organizations such as private schools within the City.
iii. The organization must have as their sole purpose to benefit the City or a particular City department or service.

2. The maximum time allowed for per day use is two (2) hours, including set-up and clean-up times.

3. An organization that provides Department approved community services may get the daily use fee waived. Prior approval of the community services project must be obtained in order to qualify.

4. Approval of the fee waiver does not relieve the applicant/organization of the obligations to comply with all other permit requirements, including but not limited to submitting a facility use application, credit card authorization form, liability insurance, health permits, ABC License, down payment, etc.

21. POLICY INTERPRETATION AND REVISION AUTHORITY

1. The City Manager, or designee, retains the authority to interpret this policy and to make changes, revisions, or exceptions, as deemed necessary, provided that such modifications serve a demonstrable community benefit for the residents of Santa Fe Springs.

Docusign Envelope ID: FD25A57B-F84D-8F7B-8381-57690D2DD9D2 ITEM # 24

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Gus Hernandez, Director of Parks & Recreation
SUBJECT: APPROVAL OF USE AGREEMENT FOR ATHLETIC FIELDS AND

FACILITIES WITH THE AMERICAN YOUTH SOCCER ORGANIZATION
(AYSO) REGION 75
DATE: June 16, 2026
RECOMMENDATION:

It is recommended that the City Council:

1. Approve the Use Agreement between the City of Santa Fe Springs and the American Youth Soccer Organization (AYSO) Region 75 for the use of Athletic Fields and Facilities at Los Nietos Park and Lake Center Athletic Park through June 30, 2027; and

2. Authorize the Mayor to execute the Agreement on behalf of the City, subject to approval as to form by the City Attorney; and

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

FISCAL IMPACT
The Agreement provides for an annual Priority Use Fee of $4,000 during the first year of the Agreement, increasing to $5,000 in subsequent years and any approved extensions. In addition, AYSO Region 75 will pay a maintenance contribution of $5 per registered player per season, field lighting fees of $15 per field per hour, and applicable field striping fees. The Agreement is expected to generate revenue to offset athletic field maintenance, operational, and utility costs associated with youth soccer programming.

Additionally, through this partnership with AYSO Region 75, the City is anticipated to realize approximately $75,000 in annual savings within the Parks & Recreation operating budget by leveraging the organization's resources, volunteer support, and operational contributions in delivering youth soccer programming and related activities.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 16, 2026
Approval Of Use Agreement for Athletic Fields and Facilities with the American Youth Soccer Organization (AYSO) Region 75