South El Monte City Council
September 26, 2023

Gloria Olmos, Mayor/Chair
Richard Angel, Mayor Pro Tem/ Vice
Chair
Manuel Acosta, Councilmember/
Boardmember
Rudy Bojorquez, Councilmember/
Boardmember
Hector Delgado, Councilmember/
Boardmember
Rene Salas, City Manager/Executive
Director
Donna G. Schwartz, City
Clerk/Secretary
Anthony R. Taylor, City
Attorney/General Counsel
Masami Higa, Director of
Finance/Treasurer
Guillermo Arreola, Director of
Community Development
Ariana De La Cruz, Director of
Community Services

CITY OF SOUTH EL MONTE

REGULAR MEETING OF THE SOUTH EL MONTE CITY COUNCIL AND THE

SUCCESSOR AGENCY TO THE SOUTH EL MONTE IMPROVEMENT DISTRICT AGENDA
September 26, 2023, 6:00 PM
1415 Santa Anita Avenue, South El Monte, CA 91733

PUBLIC COMMENT
To participate during public comment via teleconference, see below:

Link: https://us02web.zoom.us/j/86581711880
Webinar ID: 865 8171 1880
Or call in: 1 669 900 6833, when prompted, enter 86581711880#

LIVE STREAMING OF MEETINGS
The City of South El Monte live streams the City Council Meetings over the Internet at https://www.cityofsouthelmonte.org/129/City-Council-Agendas-Minutes after the meetings, recordings are immediately posted. NOTE: Your attendance at this public meeting may result in the streaming and recording of your image and/or voice.

AMERICANS WITH DISABILITIES ACT
In accordance with the Americans with Disabilities Act of 1990, if you require a disability-related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk’s office at (626) 652-3180 or (626) 652-3121 at least 72 hours prior to the meeting.

GENERAL COMMENT
Members of the public wishing to submit a general comment or a comment on an agenda item, can email [email protected] or call (626) 652-3180 to leave a voicemail message. All comments received an hour before the scheduled meeting will be read during public comment and made part of the record.

MEETINGS
The City Council holds regular meetings on the second and fourth Tuesday of every month. Regular meetings start at 6 p.m. in the Council Chambers at City Hall, 1415 Santa Anita Avenue, South El Monte, California. Special and Adjourned Regular meetings start time are to be determined.

POSTING LOCATIONS OF AGENDA AND/OR CANCELLATION NOTICES Regular meeting agendas will be posted at least 72 hours before the meeting (GC 54954(a)(1)).

Agenda and Cancellation Notices can be viewed online and are also posted at the following three (3) locations: City Hall located at 1415 Santa Anita Avenue, Senior Center located at 1556 Central Avenue and the Community Center located at 1530 Central Avenue, South El Monte, California.

VIEWING OF AGENDA PACKETS
Full agenda packet can be viewed either at www.cityofsouthelmonte.org/129/CityCouncil-Agendas-Minutes or in the City Clerk’s Office during normal business hours Monday through Thursday 7:00 a.m. to 5:30 p.m. Closed on Fridays and major holidays.

ISSUES RELATED TO AGENDA
For issues related to the agenda, including a disability-related accommodation necessary to participate in this meeting, please contact:

Donna G. Schwartz, CMC, City Clerk
Ph (626) 652-3180
Cell (626) 274-4842
Robert Molina, Interim Deputy City Clerk
Ph (626) 652-3121
Cell (626) 374-1998

AGENDA BEGINS ON THE FOLLOWING PAGE

1. ROLL CALL
Councilmembers: Acosta, Bojorquez, Delgado, Mayor Pro Tem Angel, and Mayor Olmos

2. PLEDGE OF ALLEGIANCE
Councilmember Bojorquez

3. INVOCATION
Pastor Benjamin Garrett, Faith Dominion Church

4. PRESENTATIONS

4.a. Presentation by Caitlin Sims, Manager of Local Programs, San Gabriel Valley Council of Governments (COG) on the COGs Programs and Initiatives

4.b. Presentation by James Chen, Director of San Gabriel Valley Service Center, Buddhist Tzu Chi Foundation on Resources Available to the Homeless

4.c. Sheriff's Department Report for the Months of July and August

4.d. Code Enforcement and Public Safety Department Report for the Months of July and August

5. APPROVAL OF THE AGENDA AND WAIVER OF FULL READING OF

ORDINANCES
By motion of the City Council, this is the time to notify the public of any changes to the agenda, remove items from the consent calendar for individual consideration and/or rearrange the order of the agenda.

6. PUBLIC COMMENT
Speakers may provide public comments on any matter within the subject matter jurisdiction of the City Council, including items on the agenda. Each speaker will be limited to five minutes. Unless a majority of the Council objects, the Mayor may provide speakers more or less time to speak. All comments or queries shall be addressed to the Council as a body and not to any specific member thereof.

Pursuant to Government Code Section 54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the City Council shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

7. CONSENT CALENDAR
Items on the consent calendar are considered to be routine and customary and are enacted by a single motion with the exception of items previously removed by a member of the City Council during "Approval of the Agenda" for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.

CONSENT CALENDAR (CONTINUED)

7.a. CONSIDERATION AND APPROVAL OF THE REGULAR CITY
COUNCIL MEETING MINUTES OF SEPTEMBER 12, 2023

Staff is requesting approval of Minutes for the September 12, 2023 Regular City Council meeting.

RECOMMENDED ACTION: Staff is requesting approval of Minutes for the September 12, 2023, Regular City Council meeting.

7.b. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-89, APPROVING WARRANTS FOR THE PERIOD OF SEPTEMBER 13,
2023, THROUGH SEPTEMBER 26, 2023

Authorizing payment of City expenditures for the period of Sept 13, 2023 through September 26, 2023 totaling $910,329.66.

RECOMMENDED ACTION: Staff recommends City Council adopt Resolution No. 23-89, authorizing payment of City expenditures.

7.c. ADOPTION OF ORDINANCE NO. 1268, AMENDING CHAPTER 5.26 OF TITLE 5 OF THE SOUTH EL MONTE MUNICIPAL CODE THEREBY

AMENDING THE CITY'S CANNABIS REGULATIONS IN RELATION TO

APPLICATION SELECTION CRITERIA, MAKE CLARIFICATION

CHANGES, AND MAKE SUCH OTHER CHANGES IN ORDER TO

IMPROVE THE ADMINISTRATION THEREOF

Adoption of an ordinance amending Chapter 5.26 of Title 5 of the South El Monte Municipal Code thereby amending the City’s cannabis regulations in order to change application selection criteria, make clarification changes, and make such other changes in order to improve the administration thereof.

RECOMMENDED ACTION: Staff recommends City Council: Waive second reading and adopt Ordinance No. 1268, amending Chapter 5.26 of Title 5 of the South El Monte Municipal Code thereby updating and amending the City’s cannabis regulations in order to amend application selection criteria, make clarification changes, and make such other changes in order to improve the administration thereof.

7.d. through 7.f. next page.

CONSENT CALENDAR (CONTINUED)

7.d. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-90,

APPROVING PURCHASE OF SCANNING SERVICES WITH ECS
IMAGING INC.

The City Clerk’s Office is currently undergoing a records retention project with ECS Imaging Inc. to enhance the department's capabilities of hosting and retaining scanned documents into Laserfiche. Staff is requesting to use ECS Imaging Inc. scanning services to scan all of the Planning Department's plans.

RECOMMENDED ACTION: Staff recommends City Council:

1. Adopt Resolution No. 23-90, approving professional scanning services from ECS Imaging, Inc. (ECS); and

2. Authorize City Manager or designee to accept the quote issued by ECS.

7.e. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-91,

APPROVING AWARD OF PROFESSIONAL SERVICES AGREEMENT
(PSA) TO TRANSTECH ENGINEERS, INC. FOR THE MERCED

AVENUE GREENWAY PROJECT

On July 20, 2023, a Request for Proposals (RFP) was solicited to provide construction management and construction inspection (CMCI) services for the Merced Avenue Greenway Project. The project includes roadway resurfacing, reconstruction of concrete curb ramps, sidewalks, curb, and gutter and the installation of decentralized Low Impact Development (LID) and Best Management Practices (BMPs) within the street right-of-way that slow, capture, treat, and infiltrate storm water runoff. Work also includes installation of striping and pavement markings to incorporate bike lanes on Merced Avenue between Rush Street and Lerma Road.

RECOMMENDED ACTION: Staff recommends City Council:

1. Adopt Resolution No. 23-91, awarding a PSA to Transtech Engineers, Inc. for construction management and construction inspection (CMCI) services, in an amount not to exceed $856,225; and

2. Authorize the City Manager or designee to negotiate and execute the agreement.

7.f. next page.

CONSENT CALENDAR (CONTINUED)

7.f. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-92, APPROVING AMENDMENT NO. 1 TO AGREEMENT WITH ALESHIRE
& WYNDER (A&W) FOR CITY ATTORNEY SERVICES

Consideration of Resolution No. 23-92, Approving Amendment No. 1 to Agreement for city attorney services. In November of 2019, the City entered into an agreement with A&W for city attorney services.

Amendment No. 1 is sought to adjust the current compensation.

RECOMMENDED ACTION: Staff recommends City Council:

1. Adopt Resolution No. 23-92, approving Amendment No. 1 to agreement with Aleshire & Wynder (A&W) for City Attorney Services; and

2. Authorize the City Manager to negotiate and execute agreement.

8. PUBLIC HEARINGS - None

9. GENERAL BUSINESS

9.a. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-93,

APPROVING A MEMORANDUM OF AGREEMENT (MOA) BETWEEN
THE CITY OF SOUTH EL MONTE AND U.S. ARMY CORPS OF

ENGINEERS, LOS ANGELES DISTRICT FOR PROPOSED
DEVELOPMENT OF PROPERTY LOCATED AT 825 LEXINGTONGALLATIN ROAD ("PROPERTY")

The U.S. Army Corps is considering the development of an approximate 21-acre vacant property. The property includes developing approximately ten acres (10.22) with an approximate 223,000 square foot industrial building, and dedicating approximately eleven (10.92) acres, with limited site preparation, to the City of South El Monte for future recreational uses, to be owned, managed and operated by the City of South El Monte as a public open space. Both sites will be designed to accommodate detention basin improvements.

RECOMMENDED ACTION: Staff recommends City Council:

1. Adopt Resolution No. 23-93, approving the MOA with U.S. Army Corps of Engineers, Los Angeles District for a proposed development approval process of property located at 825 Lexington-Gallatin Road ("Property"); and

2. Authorize the City Manager or designee to negotiate and execute the MOA.

GENERAL BUSINESS (CONTINUED)

10. COMMITTEE REPORTS, INCLUDING AB 1234 REPORTS
AB 1234, section 53232.3(d) requires Members of a legislative body to provide brief reports on meetings attended at the expense of the local agency (i.e., League of California Cities Conferences, ICSC conferences, etc.) at the next regular meeting of the legislative body.

11. CORRESPONDENCE

11.a. LETTER FROM THE SOUTH EL MONTE EMPLOYEES ASSOCIATION (SEMEA) REQUESTING SPONSORSHIP FOR THE ANNUAL SOUTH

EL MONTE EMPLOYEE HOLIDAY RECOGNITION DINNER
The South El Monte Employees Association is requesting a $2,500 sponsorship for the Annual South El Monte Employee Holiday Recognition Dinner, which includes acknowledgment of sponsorship signs placed on tables, venue, dinner.

RECOMMENDED ACTION: Staff recommends City Council discuss and consider sponsorship in the amount of $2,500 for the Annual South El Monte Employee Holiday Recognition Dinner.

12. COUNCILMEMBERS’ AGENDA - None

13. CLOSED SESSION

13.a. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Pursuant to Government Code Section 54956.9(d)(1) - (One Case) Civil Action No. 2:23-cv-04022-SCW(MRWx): Phillip Killgore v. CITY OF SOUTH EL MONTE, a municipal corporation; GARVEYKCVN HOLINDGS LLC; AND DOES 1-10 INCLUSIVE

14. RECESS COUNCIL MEETING

15. ANNOUNCEMENT BY THE CITY CLERK (PRIOR TO CONVENING THE

SUCCESSOR AGENCY MEETING)
Pursuant to Government Code Section 54952.3, Board Members do not receive any compensation or stipend for attending the Successor Agency meeting.

Successor Agency next page.

Successor Agency Meeting

16. CALL TO ORDER AND ROLL CALL
Board Members: Acosta, Bojorquez, Delgado, Vice Chair Angel, and Chair Olmos

17. APPROVAL OF AGENDA
This is the time for the Board to remove any items from the consent calendar for individual consideration, table, continue, add items, or to make a motion to rearrange the order of this agenda.

18. PUBLIC COMMENTS
Speakers may provide public comments on any matter within the subject matter jurisdiction of the Board, including items on the agenda. Each speaker will be limited to five minutes. Unless a majority of the Board objects, the Chair may provide speakers more or less time to speak. All comments or queries shall be addressed to the Board as a body and not to any specific member thereof.

Pursuant to Government Code Section 54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the Board shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

19. CONSENT CALENDAR
Items on the Consent Calendar are considered to be routine and customary and are enacted by a single motion with the exception of items previously removed by a member of the Board during "Approval of the Agenda" for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.

19.a. CONSIDERATION AND APPROVAL OF THE SUCCESSOR AGENCY MEETING MINUTES FOR JULY 25, 2023

Staff is requesting approval of the Minutes of the July 25, 2023 Successor Agency Meeting.

RECOMMENDED ACTION: Staff recommends the Board approve the Successor Agency Meeting Minutes of July 25, 2023.

20. EXECUTIVE DIRECTOR'S AGENDA - None

21. ADJOURNMENT OF SUCCESSOR AGENCY MEETING

22. RECONVENE AND ADJOURN COUNCIL MEETING
Tuesday, October 10, 2023, at 6:00 p.m.

I Donna G. Schwartz, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted not less than 72 hours at the following locations: City of South El Monte City Hall, Senior Center and Community Center and made available at www.cityofsouthelmonte.org on this 21st day of September 2023.

City Clerk, CMC

City Council Agenda Report
Agenda Item No. 4.a.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Donna Schwartz, City Clerk
SUBJECT: Presentation by Caitlin Sims, Manager of Local Programs, San Gabriel Valley Council of Governments (COG) on the COGs Programs and Initiatives
SUMMARY:

RECOMMENDED ACTION:

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. SGVCOG 2023 Update

Caitlin Sims
Manager of Local Programs

[email protected]

City Council Agenda Report
Agenda Item No. 4.b.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Donna Schwartz, City Clerk
SUBJECT: Presentation by James Chen, Director of San Gabriel Valley Service Center, Buddhist Tzu Chi Foundation on Resources Available to the Homeless
SUMMARY:

RECOMMENDED ACTION:

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. TCSGV Overview 2023

Tzu Chi
San Gabriel Valley
Service Center
Director
James Chen
and
Yushan Tong

Tzu Chi Foundation, founded in 1966,
with offices in 60+ countries
and more than 10 millions donors,
has helped those in need around the world.
慈濟 Tzu Chi offices around the world Tzu Chi From 30 Bamboo Banks to Great Love Around the World

Four Missions, Eight Footprints

1. Charity

2. Medicine

3. Education

4. Culture

5. Bone Marrow Donation

6. Environmental Protection

7. Community Volunteerism

8. International Relief

USA Headquarter

South El Monte Health Center

San Gabriel Valley
Service Center

Food Pantry

Back-to-School
Backpack Giveaway

Spark of Love

VITA
愛滿地聯絡處提供社
區低收入民眾聯邦及
加州的免費報稅服務
。

MPK Mass Shooting

12 Evette’s Story

Catholic Girls’ Schools in Haiti

Tijuana
Tzu Chi
Elementary
School

Q & A
Website: TzuChi.us

City Council Agenda Report
Agenda Item No. 4.c.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Rene Salas, City Manager
SUBJECT: Sheriff's Department Report for the Months of July and August SUMMARY:

RECOMMENDED ACTION:

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. July 2023 Presentation
B. August 2023 Presentation

South El Monte
July 2023
Crime Statistics

South El Monte
Part I Crime Statistics – July 2019-2023
South El Monte 1 yr % change 4 yr % change
Homicide 0% NC
Rape -50% -83%
Aggravated Assault -31% 33%
Robbery -10% -30%
Burglary -26% 88%
Theft 3% 37%
Grand Theft Auto -28% 15%
Arson 200% 50%
Total -16% 36% Page 39 of 359
South El Monte
Part I Crime Statistics – July 2019-2023

South El Monte
Part I Crime Statistics – Monthly Breakdown 2023
& Arrests
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 1
Rape 0 0 0 1 0 1
Aggravated Assault 6 4 5 7 8 30
Robbery 3 4 3 2 4 16
Burglary 24 11 27 21 22 105
Theft 27 32 41 21 28 149
Grand Theft Auto 18 15 8 7 13 61
Arson 0 2 0 0 0 2
Total 78 68 84 60 75 0 0 0 0 0 0 0 365
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 0 1
Rape 0 0 0 1 0 0 1
Aggravated Assault 6 4 5 7 8 2 32
Robbery 3 4 3 2 4 2 18
Burglary 24 11 27 21 22 12 117
Theft 27 32 41 21 29 37 187
Grand Theft Auto 18 15 8 7 13 11 72
Arson 0 2 0 0 0 1 3
Total 78 68 84 60 76 65 0 0 0 0 0 0 431
2023 515
2022 645
Arrests
609
753
South El Monte
Res Burg 15
Other Burg 124
Petty Theft 52
Grand Theft 95
Theft from Vehicle 71
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 0 0 1
Rape 0 0 0 1 0 0 0 1
Aggravated Assault 6 4 5 7 8 2 4 36
Robbery 3 4 3 2 4 2 1 19
Burglary 24 11 27 21 22 13 21 139
Theft 27 32 41 21 29 36 32 218
Grand Theft Auto 18 15 8 7 13 11 12 84
Arson 0 2 0 0 0 1 0 3
Total 78 68 84 60 76 65 70 0 0 0 0 0 501

South El Monte
August 2023
Crime Statistics

South El Monte
Part I Crime Statistics – August 2019-2023
South El Monte 1 yr % change 4 yr % change
Homicide 0% NC
Rape -60% -67%
Aggravated Assault -33% 34%
Robbery 14% -14%
Burglary -27% 86%
Theft 3% 37%
Grand Theft Auto -30% 6%
Arson 200% 50%
Total -16% 36% Page 43 of 359
South El Monte
Part I Crime Statistics – August 2019-2023

South El Monte
Part I Crime Statistics – Monthly Breakdown 2023
& Arrests
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 1
Rape 0 0 0 1 0 1
Aggravated Assault 6 4 5 7 8 30
Robbery 3 4 3 2 4 16
Burglary 24 11 27 21 22 105
Theft 27 32 41 21 28 149
Grand Theft Auto 18 15 8 7 13 61
Arson 0 2 0 0 0 2
Total 78 68 84 60 75 0 0 0 0 0 0 0 365
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 0 1
Rape 0 0 0 1 0 0 1
Aggravated Assault 6 4 5 7 8 2 32
Robbery 3 4 3 2 4 2 18
Burglary 24 11 27 21 22 12 117
Theft 27 32 41 21 29 37 187
Grand Theft Auto 18 15 8 7 13 11 72
Arson 0 2 0 0 0 1 3
Total 78 68 84 60 76 65 0 0 0 0 0 0 431
2023 515
2022 645
Arrests
692
821
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 0 0 1
Rape 0 0 0 1 0 0 0 1
Aggravated Assault 6 4 5 7 8 2 4 36
Robbery 3 4 3 2 4 2 1 19
Burglary 24 11 27 21 22 13 21 139
Theft 27 32 41 21 29 36 32 218
Grand Theft Auto 18 15 8 7 13 11 12 84
Arson 0 2 0 0 0 1 0 3
Total 78 68 84 60 76 65 70 0 0 0 0 0 501
South El Monte
Res Burg 20
Other Burg 138
Petty Theft 59
Grand Theft 107
Theft from Vehicle 80
South El Monte January February March April May June July August September October November December Total Homicide 0 0 0 1 0 0 0 0 1
Rape 0 0 0 1 0 0 0 1 2
Aggravated Assault 6 4 5 7 8 2 4 7 43
Robbery 3 4 3 2 4 2 1 5 24
Burglary 24 11 27 21 22 13 22 18 158
Theft 27 32 41 21 29 36 33 27 246
Grand Theft Auto 18 15 8 7 13 11 11 7 90
Arson 0 2 0 0 0 1 0 0 3
Total 78 68 84 60 76 65 71 65 0 0 0 0 567

City Council Agenda Report
Agenda Item No. 4.d.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Rene Salas, City Manager
SUBJECT: Code Enforcement and Public Safety Department Report for the Months of July and August
SUMMARY:

RECOMMENDED ACTION:

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. Code Enforcement_Public Safety Report - July & August 2023

City of South El Monte
Public Safety Report
July & August 2023 Recap
Joe Martinez
Code Enforcement Supervisor

Code Cases by Location
July & August - 154
Building Code.………………………………. 23
Health & Safety……………………………… 8
Parking Citations……………………………. 5
Street Vendors……………………………….. 4
Homeless .……………………………………. 9
Property Maintenance.…………………. 47
Streets/Public Places…………………….. 25
Illegal Dumping/Bulk ………………….… 6
Vehicle/Traffic….……………………………. 8
Business……………………………………….. . 18
Zoning …………………………………………… 1

Parking Citations
July & August -
0 100 200 300 400 500 600 700

NO PARKING/STOPPING ZONE
80" W PARKED OVER 30 MIN

POSTED SIGNS

DISCONNECTED TRAILER

OVERWEIGHT RESTRICTED

FIRE LANE

LAWN PARKING
RED

BLOCKING DRIVEWAY

ON SIDEWALK

DOUBLE PARK
18' FROM CURB
15FT FROM HYDRANT

NO CURRENT TAGS

HANDICAP/DISABLED ZONE
OTHER
3 56
48 44
5 17
80 70
16 75
5 67
23 158
67 651
(466)
STREET SWEEPING – 466
Night Day - Residential

Parking Citations
July & August– “Other”
( Count) defined: 0
5 10 15 20 25 30
6K LBS ON R-ZONE

ALLEY PARKING

ON CROSSWALK

YELLOW/GREEN/WHITE

NO PARKING- OPPOSITE SIDE OF STREET

BLOCKING ACCESS RAMP

BLOCK DISABLED ZONE

ADMIN FEE

UNATTENDED VEHICLE

FAILURE TO DISPLAY DISABLE PLACARD

LICENSE PLATE DISPLAY (FRONT/REAR)

WARNING
0 6
0 10
28 55
18 3
2 17

4 th of JULY
Fireworks Update
33 Total Citations Issued
2 Citations issued BEFORE July 4th
31 Citations issued on July 4th
23 Citations have Paid
10 Citations are Unpaid/Refuse to sign

Illegal
Fireworks
Confiscated
7/4/2023

City Council Agenda Report
Agenda Item No. 7.a.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Donna Schwartz, City Clerk
SUBJECT: CONSIDERATION AND APPROVAL OF THE REGULAR CITY COUNCIL MEETING MINUTES OF SEPTEMBER 12, 2023
SUMMARY: Staff is requesting approval of Minutes for the September 12, 2023 Regular City Council meeting.

RECOMMENDED ACTION: Staff is requesting approval of Minutes for the September 12, 2023, Regular City Council meeting.

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. Minutes

CITY OF SOUTH EL MONTE

REGULAR CITY COUNCIL MEETING MINUTES
Tuesday, September 12, 2023 - 6:00 PM
1415 Santa Anita Avenue, South El Monte, California 91733 Mayor Olmos called the meeting to order at 6:00 PM.

1. ROLL CALL
PRESENT: Councilmember(s): Acosta, Bojorquez, Delgado (Arrived at 6:03 PM), Mayor Pro Tem Angel, and Mayor Olmos
ABSENT: Councilmember(s): None
STAFF PRESENT: Rene Salas, City Manager; Anthony R. Taylor, City Attorney; Masami Higa, Director of Finance; Guillermo Arreola, Director of Community Development; Donna G. Schwartz, City Clerk, and Robert Molina, Interim Deputy City Clerk.

STAFF ABSENT: Iyob Tessema, Interim Director of Human Resources and Paola Lara, Deputy City Clerk.

Zoom was provided for the Public to participate during public comment via teleconference.

2. PLEDGE OF ALLEGIANCE – Councilmember Manuel Acosta, led the Pledge of Allegiance.

3. INVOCATION – Pastor Patricia Garrett, Faith Dominion Church, offered the Invocation.

4. PRESENTATIONS

4.a. Marilyn Flores, PH.D., Superintendent/President, Rio Hondo College provided a PowerPoint on Services Provided by the College and up coming Events.

4.b. Mayor Olmos and City Council presented a Certificate of Recognition, to Pastor Patricia Garrett's Mother, Mrs. Guadalupe Rubio Payan, Celebrating Her 100th Birthday.

4.c. Mayor Olmos and City Council presented Certificates of Recognition, to the 2023 City of South El Monte Internship Program Participants.

4.d. Mayor Olmos and City Council presented a $500 Check from the City of South El Monte to Patty Marquez, Representative with Options Head Start South El Monte, which was Donated by KID-FIT, Preschool Health, and Fitness Organization in Memory of Linda Dempsey.

5. APPROVAL OF THE AGENDA AND WAIVER OF FULL READING OF

ORDINANCES
Anthony R, Taylor, City Attorney, announced there was supplemental material provided for agenda item 7.g.

A motion was made by Councilmember Acosta, seconded by Mayor Pro Tem Angel to approve the agenda as amended. Motion passed 5-0, by the following vote:

AYES: Councilmember(s): Acosta, Bojorquez, Delgado, Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

6. PUBLIC COMMENT
Mayor Olmos opened public comment.

1. Sil Ruiz, South El Monte Library Librarian, announced how well the library Summer Reading Program went and encouraged grades K-12 to participate in the Bookmark Contest ending October 21, 2023.

2. Edwarda Sauceda, resident, voiced concern on the following: 1.8 million dollars Senator Rubio proposed for her 82 women and children in Potrero Middle School, Jets Football practicing at city facilities, Mass for Clementina Bernal, substation for Sheriffs, homeless behavior at Temple Park would like an ordinance on this, Measure CM, cannabis, Sheriffs dealing with drug users, mom’s birthday and her health, Cielito Lindo property, section 8 homes, and Measure H. Acknowledged 911 and commended his nephew.

3. Dan Dischner, International Medication Systems (IMS), handed out a flyer to Council regarding information on Rextovy nasal spray noting it is an emergency treatment of known or suspected opioid overdose and spoke in support of agenda item 9.a.

Dianna Gomez, Senior Executive Assistant to the City Council provided a cake for Councilmembers Manuel Acosta and Rudy Bojorquez in celebration of their birthdays.

Mayor Olmos continued Public Comment.

4. Alicia Connaught, resident, asked for assistance with a neighbor who is placing items on her property.

City Manager asked Ms. Connaught to provide her name and number to the City Clerk and someone would contact her.

There being no further comments, Mayor Olmos closed public comment.

7. CONSENT CALENDAR
A motion was made by Councilmember Acosta, seconded by Mayor Pro Tem Angel to approve the Consent Calendar. Motion passed 5-0, by the following vote:

AYES: Councilmember(s): Acosta, Bojorquez, Delgado, Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

7.a. Approved the Minutes of the July 25, 2023, Regular City Council meeting.

7.b. Adopted Resolution No. 23-86, authorizing payment of City expenditures for the period of July 26, 2023, through September 12, 2023, totaling $2,834,689.01.

7.c. Approved the 2023 "Christmas Wish Toy Giveaway'' donation letter, authorization to include the City Councilmembers' signatures, and distribution of the donation letters to the South El Monte business community.

7.d. Approved authorization to solicit Request for proposals (RFP) for Tree Maintenance Services Citywide.

7.e. Approved authorization to solicit Request for proposals (RFP) for Professional Civil Engineering Services.

7.f. Approved authorization to solicit Request for proposals (RFP) for Architectural Design Services for New Temple Park Multipurpose/Community Room, Snack Bar, and Restroom Rehabilitation.

7.g. Approved authorization to solicit Request for proposals (RFP) for Architectural Design Services for the South El Monte City Hall Restrooms Rehabilitation.

8. PUBLIC HEARINGS – None.

General Business next page.

9. GENERAL BUSINESS

9.a. CONSIDERATION AND APPROVAL OF ORDINANCE NO. 1268,
AMENDING CHAPTER 5.26 OF TITLE 5 OF THE SOUTH EL MONTE

MUNICIPAL CODE THEREBY AMENDING THE CITY'S CANNABIS

REGULATIONS IN RELATION TO APPLICATION SELECTION

CRITERIA, MAKE CLARIFICATION CHANGES, AND MAKE SUCH

OTHER CHANGES IN ORDER TO IMPROVE THE ADMINISTRATION

THEREOF
Mayor Olmos announced the item and Anthony R. Taylor, City Attorney, read the ordinance by title and presented the staff report.

A motion was made by Mayor Pro Tem Angel, seconded by Councilmember Delgado for discussion.

After lengthy discussion between Council and City Attorney regarding either changing or amending language, the consensus was to leave the ordinance as prepared by the City Attorney. Councilmember Delgado withdrew his motion.

Councilmember Acosta then seconded the motion made by Mayor Pro Tem Angel to waive first reading and introduce Ordinance No. 1268, amending Chapter 5.26 of Title 5 of the South El Monte Municipal Code thereby updating and amending the City’s cannabis regulations in order to amend application selection criteria, make clarification changes, and make such other changes in order to improve the administration thereof and set adoption of said ordinance at the next regular city council meeting. Motion passed 3-1-1, by the following vote.

AYES: Councilmember(s): Acosta, Mayor Pro Tem Angel, and Mayor Olmos NAYS: Councilmember(s): Delgado
ABSTAINED:Councilmember(s): Bojorquez

9.b. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 23-87, APPROVING CONTRACT WITH RHOMBUS SYSTEMS INC. FOR

PURCHASE OF SECURITY CAMERA SYSTEM
Mayor Olmos announced the item.

A motion was made by Councilmember Delgado, seconded by Councilmember Bojorquez to adopt Resolution No. 23-87, approving the purchase of a security camera system from Rhombus Systems, Inc. (Rhombus) and authorize City Manager or designee to accept the quote issued by Rhombus. Motion passed 5- 0, by the following vote.

AYES: Councilmember(s): Acosta, Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

GENERAL BUSINESS (CONTINUED)

9.c. DISCUSSION AND POTENTIAL DIRECTION REGARDING THE

FIREWORKS FINES IN THE ADMINISTRATIVE FINE SCHEDULE
Mayor Olmos announced the item and Anthony R. Taylor, City Attorney, presented the staff report.

A motion was made by Councilmember Acosta, seconded by Mayor Pro Tem Angel to receive and file. Motion passed 5-0, by the following vote.

AYES: Councilmember(s): Acosta, Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

9.d. CONSIDERATION OF RESOLUTION NO. 23-88, DECLARING THE CITY’S

COMMITMENT TO INCREASING AWARENESS OF AND COMBATTING

THE DANGERS OF FENTANYL DUE TO THE SIGNIFICANT MORTALITY

AND MORBIDITY CAUSED IN THE CITY BY THE FENTANYL CRISIS Mayor Olmos announced the item and Anthony R. Taylor, City Attorney, presented the staff report.

A motion was made by Councilmember Acosta, seconded by Mayor Pro Tem Angel to adopt Resolution No. 23-88, approving the resolution declaring the City’s commitment to increasing awareness of and combatting the dangers of fentanyl due to the significant mortality and morbidity caused in the city by the fentanyl crisis. Motion passed 5-0, by the following vote.

AYES: Councilmember(s): Acosta, Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

10. COMMITTEE REPORTS, INCLUDING AB 1234 REPORTS
Councilmember Acosta acknowledged the Summer Concerts ending thanking everyone who attended and announced he attendance at the following events:
the new Night Market. City’s Bike Ride, National Night Out event, Jets Opening Day ceremonies, the First Day of School at Dean L. Shively and New Temple schools and California Contract Cities Summit.

Councilmember Bojorquez announced his attendance at the following events and thanked staff for all their work throughout the Summer: National Night Out, Summer Concerts, Night Market, City’s Bike Ride, Grand Parents Day event and the 911 Memorial ceremony.

COMMITTEE REPORTS, INCLUDING AB 1234 REPORTS (CONTINUED) Councilmember Delgado announced his attendance at the National Night Out event thanking the LA County Sheriff’s Department for donating the hamburgers, ICSC Conference, and the Night Market thanking all staff including the Public Works crew for all their hard work.

Mayor Pro Tem Angel announced his attendance at the following events: Night Market, Summer Concerts, 911 Memorial ceremony, National Night Out event thanking staff for all their hard work with these events, Jets Opening Day ceremonies and Epiphany Catholic School’s First Day of School.

Mayor Olmos announced her attendance at the following events and thanked everyone who attended: National Night Out event, Summer Concerts, Night Market, 911 Memorial ceremony. Her attendance at San Gabriel Valley’s Bike Ride, Jets Opening Day ceremonies, First Day of School for Epiphany Catholic School, California Contract Cities Summit, NALEO, ICSC and noted that SEACCA has many pets for adoption. Mayor. Olmos thanked Dianna Gomez, Senior Executive Assistant to the City Council and to all staff and departments for all their support.

11. CORRESPONDENCE

11.a. Correspondence from Spiritt Family Services, a Request for Sponsorship for Their Upcoming Reception and Casino Night, Friday, September 29, 2023
Mayor Olmos announced the item.

A Motion was made by Councilmember Delgado, seconded by Mayor Pro Tem Angel to approve a sponsorship of $500. Motion passed 5-0, by the following vote.

AYES: Councilmember(s): Acosta, Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

11.b. Correspondence from Valle Lindo School District Parent Teacher Organization (PTO) Request for 2023 Sponsorship
Mayor Olmos announced the item.

A Motion was made by Mayor Pro Tem Angel, seconded by Councilmember Delgado to approve a sponsorship of $500. Motion passed 5-0, by the following vote.

AYES: Councilmember(s): Acosta, Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): None

CORRESPONDENCE (CONTINUED)

11.c. Correspondence from Coach Paul Rodriguez, Mountain View High School Football Team, Request for Sponsorship Through a Community Sponsorship Program
Mayor Olmos announced the item.

A Motion was made by Councilmember Delgado, seconded by Mayor Pro Tem Angel to approve a sponsorship of $500. Motion passed 4-1, by the following vote.

AYES: Councilmember(s): Bojorquez, Delgado Mayor Pro Tem Angel, and Mayor Olmos
NAYS: Councilmember(s): Acosta

12. COUNCILMEMBERS’ AGENDA

12.a. COUNCILMEMBER RUDY BOJORQUEZ

1. Discussion on adding a “safe zone” to city hall for internet transactions.

Possibly creating a designated area at city hall for conducting private property transactions.

RECOMMENDATION: Discussion and/or Action.

Councilmember Bojorquez asked City Clerk to distribute a picture of Temple Stations safe zone to Council. Councilman Bojorquez feels a safe zone in the City would be nice to have for people to conduct business safely.

Anthony R. Taylor, City Attorney will contact the city’s California Joint Power Insurance Authority (CJPIA) to see if there is any type of policy with regard to liability for use of city property for a safe zone.

12.b. COUNCILMEMBER HECTOR DELGADO

1. Discussion regarding a policy for employees arriving and leaving from work (clocking in/clocking out).

RECOMMENDATION: Discussion and/or Action.

Councilmember Delgado questioned if the city has a policy for employees clocking in and clocking out and would like to see employees held accountable to be at work on time.

12.a. continued on next page.

COUNCILMEMBERS’ AGENDA (CONTINUED)

12.a. COUNCILMEMBER HECTOR DELGADO (CONTINUED)

1. Continued
City Manager Rene Salas stated employees are required to come in on time, currently there is no mechanism in place to clock in and out. This is something he would like to implement. He stated there are third party providers that offer systems that use key cards and is currently looking into a cost-effective system that other providers can offer that can be used in our facilities.

12.b. COUNCILMEMBER HECTOR DELGADO (CONTINUED)

2. Discussion on code enforcement scheduling on weekends. Rotation of all code enforcement and public safety personnel to allow for cross training.

RECOMMENDATION: Discussion and/or Action.

Councilmember Delgado would like to see better coverage on weekend pop up vendors, cross training, and a current weekend rotation schedule.

City Manager Rene Salas will provide Council with the new schedule that has been prepared due to shortage of staff.

13. CLOSED SESSION
At 8:50 p.m. Anthony R. Taylor, City Attorney, recessed Council into closed session.

13.a. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Pursuant to Government Code Section 54956.9(d)(1) - (One Case) Civil Action No. 2:23-cv-04022-SCW(MRWx): Phillip Killgore v. CITY OF SOUTH EL MONTE, a municipal corporation; GARVEYKCVN HOLINDGS LLC; AND DOES 1-10 INCLUSIVE

13.b. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Pursuant to Government Code Section 54956.9(d)(2)
Claims by parties represented by the law firm of Morgan Lewis relating to clean up costs for BKK Landfill, West Covina

13.c. PUBLIC EMPLOYEE PERFOMANCE EVALUATION
Pursuant to Government Code Section 54957(b)
Title: City Attorney
At 9:38 p.m. Mayor Olmos reconvened the meeting with all Councilmembers present.

Anthony R. Taylor, City Attorney, announced City Council discussed Items 13.a. through 13.c., no reportable action.

14. ADJOURNMENT
At 9:38 p.m. Mayor Olmos adjourned the meeting in memory of Ernest Duran, brother of Mayor Olmos, Fernando Ledesma and Marco Montoya, South El Monte residents to a Regular City Council Meeting on Tuesday, September 26, 2023, at 6:00 p.m.
______________________________ ______________________
Donna G. Schwartz, CMC, City Clerk Gloria Olmos, Mayor

City Council Agenda Report
Agenda Item No. 7.b.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: Masami Higa, Director of Finance
SUBJECT: CONSIDERATION AND APPROVAL OF RESOLUTION NO.
23-89, APPROVING WARRANTS FOR THE PERIOD OF
SEPTEMBER 13, 2023, THROUGH SEPTEMBER 26, 2023
SUMMARY: Authorizing payment of City expenditures for the period of Sept 13, 2023 through September 26, 2023 totaling $910,329.66.

RECOMMENDED ACTION: Staff recommends City Council adopt Resolution No. 23-89, authorizing payment of City expenditures.

FISCAL/FINANCIAL IMPACT:

DISCUSSION:

ATTACHMENT(S):

A. Resolution No. 23-89
B. Council Meeting Warrant 092623

ATTACHMENT A

RESOLUTION NO. 23-89

A RESOLUTION OF THE SOUTH EL MONTE CITY COUNCIL

ALLOWING CERTAIN CLAIMS AND DEMANDS FOR THE
PERIOD OF SEPTEMBER 13, 2023, THROUGH SEPTEMBER
26, 2023, TOTALING $910,329.66.

THE CITY COUNCIL OF THE CITY OF SOUTH EL MONTE DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1: That in accordance with Section 37202 of the Government Code, the Finance Director hereby certifies to the accuracy of the following demands and the availability of funds for payment thereof.
_____________________________________
Finance Director
SECTION 2: That the following claims and demands have been audited as required by law and that the same are hereby allowed in the amount hereafter set forth.

CLAIMANT CLAIM PERIOD WARRANT #’S AMOUNT
FY 23/24 Electronic Warrants 9/13/23-9/26/23 DFT0001033 $197,790.81 FY 23/24 Regular Warrants 9/13/23-9/26/23 12921-13001 $414,422.62 Payroll Manual Check PPE 9/2/23 1565-1566 $1,701.69
Payroll Check PPE 9/2/23 1567-1577 $8,659.20
Payroll Direct Deposit PPE 9/2/23 4743-4851 $148,576.36 Payroll Manual Check PPE 9/16/23 1578-1579 $751.50
Payroll Check PPE 9/16/23 1580-1591 $11,265.66
Payroll Direct Deposit PPE 9/16/23 4852-4948 $127,161.82 TOTAL EXPENDITURES RESOLUTION NO. 23-89 $910,329.66
PASSED, APPROVED, AND ADOPTED this 26th day of September 2023. __________________________________
Gloria Olmos, Mayor
ATTEST:
_____________________________
Donna G. Schwartz, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF SOUTH EL MONTE )
I, Donna G. Schwartz, City Clerk of the City of South El Monte, do hereby certify that the foregoing Resolution, being Resolution No. 23-89, was duly passed and approved by the City Council of the City of South El Monte at a regular meeting of said Council held on the 26th day of September 2023, and that said Resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
Donna G. Schwartz, City Clerk

Vendor Name Amount
NATIONWIDE RETIREMENT SOLUTIONSSTATE OF CA FRANCHISE TAX BOARDOPTIONS FOR LEARNINGST. FRANCIS ELECTRIC, LLCST. FRANCIS ELECTRIC, LLCA & C BILLARDS & BARSTOOLSABSOLUTE SECURITY INTERNATIONALADRIANA YESCASADVANCED MICROCOMPUTING CONCEPTS,INCADVANCED MICROCOMPUTING CONCEPTS,INCADVANCED MICROCOMPUTING CONCEPTS,INCAITAL CUSTOM GLASS & MIRROR INCALLIANT INSURANCE SERVICESAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCAMAZON CAPITAL SERVICES, INCANTONIO PLASCENCIAAREA DARIANA GUTIERREZCITY OF DOWNEYDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCDRIFTWOOD DAIRY, INCECOLAB PEST ELIM. DIVISIONEDUARDO VALDEZ RETAMOZA & GLORIA RETAMOZA LIVING TRUSTEL MONTE PRINTINGEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATIONEWING IRRIGATION Warrant Register
South El Monte, CA Council Meeting 09/26/23
Account Number Payment Number Payment Date Description (Item)01.0000.0000.2230 12921 09/11/2023 PPE 09/02/23 5,430.0002.0170.1760.5535 12924 09/18/2023 APR'23 CALL OUT 2,484.5001.0150.1530.5430 12925 09/20/2023 BRASS HOOKS INSTALLATIONS 230.7701.0150.1540.5951 12926 09/20/2023 8/19 & 8/26/ SPECIAL CLEANING RESERVATION 779.0001.0000.0000.2270 12922 09/11/2023 A.R GARNISHMENT PPE 09/02/23 8.1501.0100.1040.5922 12923 09/12/2023 SPONSORSHIP DONATION/ HEAD START SEM 500.0002.0170.1760.5535 12924 09/18/2023 APR'23 ROUTINE 902.2501.0130.1330.5215 12928 09/20/2023 SEPT'23 MANAGED SVCS 11,972.2501.0160.1630.5520 12929 09/20/2023 FRONT LEFT WINDOW REPAIR/ MCTR 875.0001.0151.1543.5952 12930 09/20/2023 9/7 NIGHT MARKET EVENT INSURANCE 483.0001.0000.0000.4554 12927 09/20/2023 8/29/23 DAMAGE DEPOSIT RFND/ MVD 50.0001.0130.1330.5215 12928 09/20/2023 SEPT'23 CLOUD SVCS 750.0001.0130.1330.5215 12928 09/20/2023 SEPT'23 OFFICE 365 5,311.0001.0100.1050.5406 12931 09/20/2023 BINDERS 13.7701.0150.1530.5952 12931 09/20/2023 GIVEWAYS/ GRAND PARENTS DAY 392.2801.0100.1050.5406 12931 09/20/2023 BINDERS 16.5001.0140.1430.5406 12931 09/20/2023 NEW OFFICE CHAIR/ COMM DEVELOPMENT 345.6201.0170.1020.5956 12931 09/20/2023 CITY CELL PHONE PROTECTION SUPPLIES 52.8901.0150.1530.5406 12931 09/20/2023 CHANGE STATION SUPPLIES/ SENIOR SVCS 87.0601.0151.1543.5952 12934 09/20/2023 9/11 MEMORIAL CEREMONY BALLON GARLAND 225.0001.0130.1460.5215 12935 09/20/2023 FY23-24 ANIMAL CTRL & SHELTERING SVCS 69,281.0006.0300.3010.5430 12936 09/20/2023 MILK/ CI & CII NURTITION PRGM 276.9301.0160.1620.5520 12931 09/20/2023 WIRELESS PLUGS & REMOTES/ SCTR 49.5901.0000.0000.4554 12932 09/20/2023 8/26/23 DAMAGE DEPOSIT RFND/ AQUA CTR 500.0001.0170.1520.5914 12933 09/20/2023 ANNUAL CITY DUES MEMBERSHIP 1,277.7606.0300.3010.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 57.1506.0300.3020.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 6.3406.0300.3010.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 153.4906.0300.3020.5430 12936 09/20/2023 MILK/ CI & CII NURTITION PRGM 30.7606.0300.3010.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 87.9206.0300.3020.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 9.7601.0151.1543.5952 12937 09/20/2023 8/31/23 PEST CONTROL/ KRUSE 3,500.0001.0000.0000.4250 12938 09/20/2023 INCORRECT PERMIT CHRG/ RES-ALT-23-009 250.0001.0151.1543.5406 12939 09/20/2023 CHRISTMAS WISH DONATION LETTERS 414.54

06.0300.3020.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 17.0506.0300.3010.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 126.4106.0300.3020.5430 12936 09/20/2023 MILK/ CI & CII NUTR PRGM 14.0401.0170.1750.5520 12940 09/20/2023 SUN HATS/ LANDSCAPE 34.0101.0160.1610.5520 12940 09/20/2023 IRRIGATION STOCK 134.4901.0170.1750.5520 12940 09/20/2023 IRRIGATION STOCK 82.8701.0160.1670.5520 12940 09/20/2023 IRRIGATION SUPPLIES/ MVD 128.9001.0160.1640.5520 12940 09/20/2023 POOL REPAIR SUPPLIES 51.8301.0160.1670.5520 12940 09/20/2023 CARSON RCLM LID ONLY/ MVD 134.1301.0170.1750.5520 12940 09/20/2023 SUN HATS/ LANDSCAPE 36.2301.0160.1650.5520 12940 09/20/2023 AERO PAINT FOOTBALL FIELD/ NTP 510.0601.0160.1650.5520 12940 09/20/2023 IRRIGATION REPAIR PARTS/ NTP 186.6001.0160.1660.5520 12940 09/20/2023 IRRIGATION REPAIR PARTS/ SHIVELY 1,437.07

ATTACHMENT B

EWING IRRIGATION
EWING IRRIGATIONGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGARVEY EQUIPMENT COMPANYGOVERNMENT STAFFING SERVICES, INC.GOVERNMENT STAFFING SERVICES, INC.GOVERNMENT STAFFING SERVICES, INC.GRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGRANT'S TRUE VALUE HARDWAREGUNNER CONCRETEGUNNER CONCRETEGUNNER CONCRETEHACKER EQUIPMENT CO., INC.HASA INC.HASA INC.HASA INC.HERC RENTALS INCHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHUNTINGTON CULINARYHYDRAULICS & GASKETSINDUSTRIAL CLEANING SYSTEMS, INC.INDUSTRIAL PIPE & STEELINDUSTRIAL PIPE & STEELINNER-COOL CORPJCL TRAFFIC SERVICESJCL TRAFFIC SERVICESJCL TRAFFIC SERVICESJENSY AVILALESLIE'S POOL SUPPLIES INC.LONG H THAILUIS A ALVAREZMARIA JUAREZMARTHA SEIJASMARTHA SEIJASMARTHA SEIJASMARY DOWNINGMID-VALLEY AUTOMATIC FIRE SYSTEMS

01.0170.1750.5505 12941 09/20/2023 EQUIPMENT MNTC REPLACEMENTS 288.42

01.0170.1750.5505 12941 09/20/2023 PUSH MOVER/ #5842 MUTIPLE REPAIR PARTS 514.6301.0170.1750.5505 12941 09/20/2023 TRACTOR MAINTENANCE PARTS 168.8001.0160.1650.5520 12940 09/20/2023 IRRIGATION REPAIRS/ NTP 57.2401.0170.1740.5962 12940 09/20/2023 PIPE WRENCH & ADJ CHANNEL LOCK 98.0801.0170.1750.5505 12941 09/20/2023 HEDGE TRIMMER- AIR & FUEL FILTER&SPARK PLUG 114.43

01.0100.1050.5215 12942 09/20/2023 8/21-8/24/23 MUNI TEMP/ HR ANALYST 3,000.0001.0100.1050.5215 12942 09/20/2023 8/28-9/7/23 MUNI TEMP SVCS/ HR ANALYST 6,000.0001.0100.1050.5215 12942 09/20/2023 8/28-9/7/23 MUNI TEMP SVCS/ HR DIRECTOR 10,000.0001.0170.1750.5505 12941 09/20/2023 EQUIPMENT PARTS- TRIMMER & BLADES 327.4401.0170.1770.5525 12941 09/20/2023 POOL PUMP/ REPLACED MUFFLER 14.7501.0170.1740.5962 12941 09/20/2023 STRING TIMMER-BACKPACK & BLOWER/ PARK MTNC 1,026.4301.0151.1543.5952 12943 09/20/2023 SUPPLIES/ KRUSE NIGHT BANNER 25.2801.0160.1640.5520 12943 09/20/2023 FLOATER ROPE REPAIR SUPP/ AQUA CTR 48.0901.0170.1710.5520 12943 09/20/2023 FLAGPOLE REPAIR SUPPLIES 7.7901.0170.1740.5962 12943 09/20/2023 LANDSCAPE- SMALL TOOLS 37.8801.0160.1650.5520 12943 09/20/2023 NTP KEYS 11.0001.0170.1720.5406 12943 09/20/2023 KEYS & KEY RINGS/ YARD 27.3201.0151.1543.5952 12943 09/20/2023 BANNER SUPPLIES/ FARMER'S MARKET 5.8201.0151.1543.5952 12943 09/20/2023 SUPPLIES/ HANG BANNERS-KRUSE 11.5401.0151.1543.5952 12944 09/20/2023 8/24 CONCRETE/ KRUSE PROPERTY 2,411.7801.0160.1620.5520 12943 09/20/2023 AUTO DOOR SUPPLIES 44.1701.0170.1710.5520 12943 09/20/2023 AUTO DOOR REPAIR SUPPLIES 17.8101.0160.1650.5520 12943 09/20/2023 TIES FOR LIGHT POLE COVERS 76.9801.0160.1640.5425 12946 09/20/2023 8/21 POOL CHEMICALS 1,077.5101.0160.1640.5425 12946 09/20/2023 8/28 POOL CHEMICALS 402.8301.0160.1640.5520 12946 09/20/2023 9/5 POLL CHEMICAL DELIVERY 477.6501.0151.1543.5952 12944 09/20/2023 CONCRETE/ KRUSE 2,258.3101.0151.1543.5952 12944 09/20/2023 CONCRETE/ KRUSE 1,858.1601.0170.1770.5525 12945 09/20/2023 JCB TRACTOR SERVICE 1,709.7706.0300.3010.5215 12948 09/20/2023 08/21-8/26/23/ CI & CII NUTR PRGM 5,087.5006.0300.3020.5215 12948 09/20/2023 08/21-8/26/23/ CI & CII NUTR PRGM 393.2501.0170.1770.5525 12947 09/20/2023 ARIEL LIFT RENTAL 918.47

06.0300.3010.5215 12948 09/20/2023 8/14-8/19/23 CI & CII NUTR PRGM 5,087.5006.0300.3020.5215 12948 09/20/2023 8/14-8/18/23 CI & CII NUTR PRGM 393.2506.0300.3010.5215 12948 09/20/2023 9/4-9/8/23 MEALS/ CI & CII NUTR PRGM 3,306.2506.0300.3020.5215 12948 09/20/2023 9/4-9/8/23 MEALS/ CI & CII NUTR PRGM 314.6001.0170.1770.5525 12949 09/20/2023 PW#2 GRIP LANCE COUPLERS & WASHER TIPS 150.0506.0300.3010.5215 12948 09/20/2023 8/28-9/1/23 CI & CII NUTR PRGM 4,082.5006.0300.3020.5215 12948 09/20/2023 8/28-9/1/23 CI & CII NUTR PRGM 393.2501.0160.1610.5520 12952 09/20/2023 AC MOTOR #3 MOTOR/ CCTR 112.0001.0151.1543.5952 12953 09/20/2023 9/7/23 40 BARRIER RENTAL 600.0001.0151.1543.5952 12953 09/20/2023 TURNING ARROWS/ ROAD CLOSURE 137.4301.0170.1770.5525 12950 09/20/2023 PW#2 THERMAL RELIEF SWIVEL & INSPECTION 137.3101.0170.1740.5962 12951 09/20/2023 BOLT CUTTERS 52.4001.0160.1640.5520 12951 09/20/2023 LIFEGUARD CHAIR REPAIR SUPPLIES/ AQUA CTR 24.9801.0000.0000.4250 12956 09/20/2023 INCORRECT PERMIT REFUND/ RES-NEW-22-004 3,688.1201.0100.1050.5934 12957 09/20/2023 8/24 LIVESCAN REIMB 25.0001.0000.0000.4554 12958 09/20/2023 9/2/23 DAMAGE DEPOSIT RFND/ MVD 50.0001.0151.1543.5952 12953 09/20/2023 TRAFFIC DETOR SIGNS 344.5301.0000.0000.4508 12954 09/20/2023 TENNIS CLASS REIMB/ N. AVILA 99.0001.0160.1640.5425 12955 09/20/2023 POOL SUPPLIES 427.0901.0000.0000.4554 12960 09/20/2023 8/20/23 DAMAGE DEPOSIT RFND/ MVD 50.0001.0160.1620.5520 12961 09/20/2023 SEMI-ANNUAL HOOD & DUCT CLEANING 495.0001.0000.0000.4235 12959 09/20/2023 ELECTRICAL PERMIT REFUND/ RES-ELC-23-034 258.0001.0000.0000.4240 12959 09/20/2023 MECHANICAL PERMIT REFUND/ RES-MEC-23-019 258.0001.0000.0000.4245 12959 09/20/2023 PLUMBING PERMIT REFUND/ RES-PLM-23-021 258.00

MID-VALLEY AUTOMATIC FIRE SYSTEMS
MID-VALLEY AUTOMATIC FIRE SYSTEMSMID-VALLEY AUTOMATIC FIRE SYSTEMSMISSION FENCE & PATIO BUILDERSMOSS, LEVY & HARTZHEIM, LLPNADA BUS, INC.NAPA AUTO PARTSNORM REEVES FORD SUPERSTOREOFFICE DEPOTOFFICE DEPOTOFFICE DEPOTOFFICE DEPOTOFFICE DEPOTOFFICE DEPOTPACIFIC COAST SIGHTSEEING TOURS & CHARTERS INCPARTY PRONTOPASADENA CONSULTING GROUP LLCPERLA LEDESMAPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPREMIER JANITORIAL SERVICESPUBLIC AGENCY RISK MANAGEMENT ASSOCIATIONQUALITY CODE PUBLISHINGQUENCH USA, INC.QUENCH USA, INC.QUENCH USA, INC.RAMIRO ROBLEDO BENITEZSAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESAN GABRIEL VALLEY TRIBUNESEBASTIAN CURIELSECTRAN SECURITY INC.SMARDAN SUPPLYSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INC

01.0160.1620.5520 12961 09/20/2023 SEMI-ANNUAL SERVICE/ SCTR 317.03

01.0130.1310.5906 12963 09/20/2023 INTERIM AUDIT WORK- YEAR END 6/30/23 9,000.0044.0800.8020.5215 12964 09/20/2023 9/1/23 TRANSPORTATION/ SENIOR EXCURSION 1,275.0001.0170.1770.5525 12965 09/20/2023 SMALL TOOLS/ GARAGE 45.3801.0160.1650.5520 12961 09/20/2023 SERMI-ANNUAL SVC RANGE & HOOD/ NTP 323.1701.0160.1650.5520 12961 09/20/2023 QUARTERLY SVC HOOD & DUCT CLEANING/ NTP 425.0001.0151.1543.5952 12962 09/20/2023 FENCING AROUND/ KRUSE FEED 830.2501.0120.1210.5406 12967 09/20/2023 STORAGE BOXES 24.9601.0120.1210.5406 12967 09/20/2023 STAMPS/ CITY CLERK 38.5801.0100.1020.5406 12967 09/20/2023 CHALL SUPPLIES 255.2501.0170.1770.6010 12966 09/20/2023 2023 F-250 XL 63,293.1001.0100.1050.5406 12967 09/20/2023 CREDIT MEMO/ FILE FOLDERS (184.89)

01.0120.1210.5406 12967 09/20/2023 CHARGER CABLE 19.8301.0130.1330.5932 12970 09/20/2023 AUG'23 - AUG'24 E FILING SYSTEM 3,610.0001.0000.0000.4554 12971 09/20/2023 8/20/23 DAMAGE DEPOSIT RFND/ AQUA CTR 500.0001.0170.1740.5435 12972 09/20/2023 ALL PURPOSE CLEANER/ ALL BLDG'S 31.9701.0100.1020.5405 12967 09/20/2023 ADMIN OFFICE SUPPLIES 131.7944.0800.8020.5215 12968 09/20/2023 8/11/23 COMM SVCS EXCLUSION 875.5001.0151.1545.5210 12969 09/20/2023 8/24 SUMMER CONCERT EQUIP RENTAL 1,397.0001.0151.1545.5210 12972 09/20/2023 7/27/23 PORTABLE RSTRM/ SUMMER CONCERT 734.2701.0160.1640.5520 12972 09/20/2023 POOL LOCKER ROOM SUPPLIES 1,278.8601.0160.1640.5520 12972 09/20/2023 POOL LOCKER ROOM SUPPLIES 463.0501.0151.1545.5210 12972 09/20/2023 7/13/23 PORTABLE RSTRM RENTAL/ SUMMER CONCERT 734.2701.0100.1050.5914 12973 09/20/2023 PUBLIC ENTITY MEMBERSHIP 300.0001.0120.1210.5920 12974 09/20/2023 MUNICIPAL CODE SUPPLMENTS 1,662.0001.0160.1610.5520 12975 09/20/2023 AUG'23 WATER FILTER/ CCTR 38.5901.0151.1545.5210 12972 09/20/2023 8/10/23 PORTABLE RSTRM RENTAL/ SUMMER CONCERT 734.2701.0151.1545.5210 12972 09/20/2023 8/24 PORTABLE RSTRM RENTAL/ SUMMER CONCERT 734.2701.0151.1543.5952 12972 09/20/2023 9/7/23 PORTABLE RSTRM RENTAL/ NIGHT MARKET 411.2301.0120.1210.5919 12977 09/20/2023 6/1/23 PUBLISH NOTICE/ SUMMARY ORD 1266 199.1601.0120.1210.5919 12977 09/20/2023 6/1 PUBLISH NOTICE/ SUMMARY OF ORD 1267 199.1601.0120.1210.5919 12977 09/20/2023 JUNE'23 LEGAL NOTICES/ RESIDENTIAL REHAB PJT 2,341.86

01.0160.1620.5520 12975 09/20/2023 SEPT'23 WATER FILTER/ SCTR 59.9601.0160.1610.5520 12975 09/20/2023 SEPT'23 WATER FILTER/ CCTR 38.5901.0000.0000.4554 12976 09/20/2023 8/27/23 DAMAGE DEPOSIT RFND/ MVD 50.0001.0120.1210.5919 12977 09/20/2023 6/22/23 PUBLIC NOTICE/ SUMM OR ORD 1266 184.8901.0120.1210.5919 12977 09/20/2023 7/7/23 PUBLIC NOTICE/ PH-GENERAL FEE SCHEDULE 241.9701.0120.1210.5919 12977 09/20/2023 8/28-9/4 PUBLISH NOTICE/ BIDS-TRAFF SIGN IMPVMTS 2,760.4101.0120.1210.5919 12977 09/20/2023 6/9/23 PUBLIC NOTICE/ CDBG FY23-24 471.4101.0120.1210.5919 12977 09/20/2023 6/16/23 PUBLIC NOTICE/ CDBG FY23-24 548.7501.0120.1210.5919 12977 09/20/2023 6/22/23 PUBLIC NOTICE/ SUMM OF ORD 1267 177.7644.0800.8040.5555 12981 09/20/2023 BUS SHELTER REPAIR SUPPLIES (12.51)

02.0170.1760.5540 12981 09/20/2023 COUPLING- REPAID CONCRETE/ TYLER 40.4602.0170.1760.5540 12981 09/20/2023 CONCRETE MIX/ ST & RD MTNC PRGM 439.1501.0000.0000.4250 12978 09/20/2023 BLDG PERMIT INCORRECT CHRG/ RES-DEM-23-023 250.0001.0130.1310.5280 12979 09/20/2023 SEPT'23 ARMORED SVCS 187.4401.0160.1650.5520 12980 09/20/2023 IRRIGATION SUPP/ NTP 46.0501.0160.1640.5520 12981 09/20/2023 STRAW HAT/ POOL CLEANING 57.8801.0160.1660.5520 12981 09/20/2023 SHIVELY PLASTER SAND 479.9801.0160.1650.5520 12981 09/20/2023 FOOTBALL FIELD SUPPLIES/ NTP 33.3502.0170.1760.5572 12981 09/20/2023 ACETONE THINNER & GREEN PAINT/ ST & RD MTNC PRGM 164.6301.0151.1543.5952 12981 09/20/2023 CONCRETE SUPP/ KRUSE 819.7601.0170.1750.5962 12981 09/20/2023 METAL BLADE/ POLE CUTTING 103.4601.0151.1542.5952 12981 09/20/2023 CLEAN UP SUPPLIES/ KRUSE-NIGHT MARKET 133.6801.0151.1543.5952 12981 09/20/2023 2 WHISK BROOMS & ASPHALT GLUE/ KRUZE 74.4101.0151.1543.5952 12981 09/20/2023 CONCRETE MIX FOR POLE/ KRUSE 17.3101.0151.1542.5952 12981 09/20/2023 DUCT TAPE& KNEE PADS 64.66

SOUTHEAST CONSTRUCTION PRODUCTS,INC
SOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHEAST CONSTRUCTION PRODUCTS,INCSOUTHERN TIRE MART LLCST. FRANCIS ELECTRIC, LLCSTILO ROLAS, INCSTOTZ EQUIPMENTSTUDIO SPECTRUM, INC.SUNBELT RENTALS, INC.SUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSSUPERIOR WAREHOUSE GROCERSTHE SAUCE CREATIVE SERVICES CORP.TOWNSEND PUBLIC AFFAIRSTRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRANSTECH ENGINEERING, INC.TRUSAICTYLER TECHNOLOGIES, INCTYLER TECHNOLOGIES, INCTYLER TECHNOLOGIES, INCUNISHIELDUNISHIELDUNISHIELDUNISHIELDVACCO INDUSTRIES, INC.VAUGHN ELECTRIC INC

01.0170.1760.5540 12981 09/20/2023 SAND/ FIRE DEPT 159.99

01.0151.1543.5952 12981 09/20/2023 EXT WAND 24 18.6901.0151.1543.5952 12981 09/20/2023 ASPHALT SLURRY SUPPLIES 127.6701.0151.1543.5952 12981 09/20/2023 RAPID SET GROUT/ KRUSE 137.8101.0151.1543.5952 12981 09/20/2023 ARTIFICIAL GRASS/ KRUSE NIGHT 3,058.5601.0151.1543.5952 12981 09/20/2023 CONCRETE SUPPLIES/ KRUSE 105.4002.0170.1760.5540 12981 09/20/2023 SLURRY SEAL STOCK 652.2201.0151.1543.5952 12981 09/20/2023 RAPID SET GROUT/ CONCRETE 34.4501.0170.1770.5525 12982 09/20/2023 #31 NEW TIRES & ALIGNMENT 1,051.6302.0170.1760.5535 12983 09/20/2023 DURFEE & 60 EAST/ CALLOUT 492.5001.0151.1543.5952 12984 09/20/2023 10/5/23 DJ SVCS/ NIGHT MARKET 800.0001.0160.1610.5520 12981 09/20/2023 MASON DRILL BIT 3/8X10X12 19.2906.0300.3010.5430 12988 09/20/2023 TORTILLAS/ CI & CII NUTR PRGM 21.5506.0300.3020.5430 12988 09/20/2023 TORTILLAS/ CI & CII NUTR PRGM 2.3906.0300.3010.5430 12988 09/20/2023 BREAD/ CI & CII NUTR PRGM 20.0901.0170.1770.5525 12985 09/20/2023 GATOR FILTER KIT 147.5214.0440.4410.6015 12986 09/20/2023 CAMERA #4/ COUNCIL CHAMBERS 6,788.6102.0170.1760.5540 12987 09/20/2023 CONCRETE CART & CONCRETE 357.5506.0300.3010.5430 12988 09/20/2023 BREAD & FROZEN MEALS/ CI & CII NUTR PGRM 100.5206.0300.3020.5430 12988 09/20/2023 BREAD & FROZEN MEALS/ CI & CII NUTR PGRM 76.8706.0300.3010.5430 12988 09/20/2023 MULTIGRAIN BREAD/ CI & CII NUTR PRGM 112.4306.0300.3020.5430 12988 09/20/2023 BREAD/ CI & CII NUTR PGRM 2.2306.0300.3010.5430 12988 09/20/2023 BREAD/ CI & CII NUTR PRGM 25.1106.0300.3020.5430 12988 09/20/2023 BREAD/ CI & CII NUTR PRGM 2.7901.0170.1105.5215 12991 09/20/2023 JUNE'23 ENGINEERING SVCS 14,220.0001.0170.1105.5215 12991 09/20/2023 JUNE'23 PLAN CHECK SVCS 4,270.5301.0170.1105.5215 12991 09/20/2023 JUNE'23 PJT MGMT #295 2,684.0006.0300.3020.5430 12988 09/20/2023 MULTIGRAIN BREAD/ CI & CII NUTR PRGM 12.4901.0100.1040.5921 12989 09/20/2023 SEPT'23 NEWSLETTER 6,299.4101.0100.1020.5215 12990 09/20/2023 SEPT'23 CONSULTING SVCS 6,750.0001.0170.1105.5215 12991 09/20/2023 JUNE'23 PJT MGMT SVCS #294 4,576.0068.0900.9080.5974 12991 09/20/2023 JUNE'23 PJT MGMT #140 16,984.0002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFICE ENGINEER SVCS 375.00

01.0140.1440.5215 12991 09/20/2023 JUNE'23 BLDG STAFF & INDIVIDUAL SVCS 4,200.0001.0170.1105.5215 12991 09/20/2023 JUNE'23 PJT MGMT #407/ MERCED GREENWAY 2,625.0002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS/ STARLITE TRAFFIC 62.5001.0170.1105.5215 12991 09/20/2023 JUNE'23 SIDEWALK REHAN REVIEW 2,750.0002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS/ DURFEE & SA 90.0002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS 560.0001.0170.1105.5215 12991 09/20/2023 JUNE'23 PJT MGMT SVCS #296 4,545.0007.0190.1930.5968 12991 09/20/2023 JUNE'23 PJT MGMT #628 19,241.2538.0900.9000.5974 12991 09/20/2023 JUNE'23 PJT MGMT #294 46.7502.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS 1,642.5002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS 187.5001.0130.1310.5215 12992 09/20/2023 SEPT'23 ACA MONTHLY 1,040.4002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS/ 1442 CHICO 532.5002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENGINEER SVCS 437.5002.0170.1760.5260 12991 09/20/2023 JUNE'23 TRAFFIC ENG SVCS 562.5001.0170.1720.5420 12994 09/20/2023 FIRST AID SUPPLIES/ YARD 238.7501.0160.1640.5420 12994 09/20/2023 FIRST AID SUPPLIES/ POOL 142.6101.0150.1540.6015 12993 09/20/2023 PARK & REC/ PRINTER & CC READER 2,289.2201.0150.1540.6015 12993 09/20/2023 PARK & REC/ CC READER CREDIT (763.22)

01.0150.1540.6015 12993 09/20/2023 PARKS & REC/ TRAINING SESSIONS 2,080.0001.0000.0000.4250 12995 09/20/2023 BUILDING PERMIT RFND/ INCORRECT VALUATIONS 16,871.23

01.0000.0000.4250 12996 09/20/2023 BLD'G PERMIT REFUND/ COM-ELC-23-010 396.5001.0160.1620.5420 12994 09/20/2023 FIRST AID SUPPLIES/ SCTR 106.5601.0160.1650.5420 12994 09/20/2023 FIRST AID SUPPLIES/ NTP 220.67

VICTOR M. REYES PAEZ
WAXIE SANITARY SUPPLYWAXIE SANITARY SUPPLYWAXIE SANITARY SUPPLYWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWHITTIER FERTILIZERWINNER INTERNATIONAL INC.WINNER INTERNATIONAL INC.WINNER INTERNATIONAL INC.WINNER INTERNATIONAL INC.WINZERWINZERWINZERCALPERS RETIREMENTCALPERS RETIREMENTCALPERS RETIREMENTDEPARTMENT OF THE TREASURYDEPARTMENT OF THE TREASURYDEPARTMENT OF THE TREASURYEMPLOYMENT DEVELOPMENT DEPT.EMPLOYMENT DEVELOPMENT DEPT.EMPLOYMENT DEVELOPMENT DEPT.EXPERT PAY - STATE DISBURSEMENT UNITEXPERT PAY - STATE DISBURSEMENT UNITEXPERT PAY - STATE DISBURSEMENT UNITEXPERT PAY - STATE DISBURSEMENT UNITSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERSAN GABRIEL VALLEY WATERUS BANK VOYAGER FLEET SYSWASHINGTON NATIONAL INSURANCE COHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICESHOME DEPOT CREDIT SERVICES

01.0000.0000.4554 12997 09/20/2023 8/19/23 DAMAGE DEPOSIT RFND/ MVD 50.00

02.0170.1760.5520 12999 09/20/2023 GORILLA HAIR/ DURFEE MEDIAN 396.9002.0170.1760.5520 12999 09/20/2023 GORILLA HAIR/ DURFEE MEIDAN 360.0001.0160.1660.5520 12999 09/20/2023 4LB SPORTS MIX 374.8501.0170.1710.5520 12998 09/20/2023 JANITORIAL SUPPLIES 5,878.9501.0170.1740.5435 12998 09/20/2023 BLUE RAGS CITYWIDE 436.3301.0170.1740.5435 12998 09/20/2023 JANITORIAL SUPPLIES 3,126.5201.0160.1660.5520 12999 09/20/2023 DOUBLE SCREEN TOP SOIL/ SHIVELY 308.7001.0160.1660.5520 12999 09/20/2023 STEER & SPORTS FIELD SEED 421.3801.0151.1543.5952 12999 09/20/2023 GORILLA HAIR/ KRUSE 158.7601.0160.1660.5520 12999 09/20/2023 8 YRDS-WASHED SAND/ SHIVELY 650.4801.0160.1660.5520 12999 09/20/2023 2 YRDS-SPORTS MIX RE-SEED/ SHIVELY 187.4301.0160.1660.5520 12999 09/20/2023 SAND/ SHIVELY WATER LINE PROJECT 390.2901.0150.1530.5952 13000 09/20/2023 HELIUM REFILLS/ SENIOR SVCS SPECIAL EVENTS 352.8001.0170.1760.5545 13001 09/20/2023 GRAFFITI REMOVER 713.1301.0170.1760.5545 13001 09/20/2023 GRAFFITI REMOVER 950.8301.0150.1530.5952 13000 09/20/2023 9/13/23 PROM EVENT/ DECORATIONS 131.7901.0150.1530.5952 13000 09/20/2023 TABLE CLOTH/ MEXICAN INDEPENDENCE LUNCHEON 39.6901.0150.1530.5952 13000 09/20/2023 9/13 BALLOONS/ PROM EVENT 27.0101.0000.0000.2020 DFT0001033 09/07/2023 PPE 9/2/23 RATE PLAN 27216 14,352.5601.0000.0000.2205 DFT0001034 09/08/2023 PPE 9/2/23 FEDERAL 18,993.7301.0000.0000.2215 DFT0001034 09/08/2023 PPE 9/2/23 FICA 26,890.8601.0170.1760.5545 13001 09/20/2023 2 CASES GRAFFITI BUSTER 439.0401.0000.0000.2020 DFT0001033 09/07/2023 PPE 9/2/23 RATE PLAN 23047 2,293.1901.0000.0000.2020 DFT0001033 09/07/2023 PPE 9/2/23 RATE PLAN 685 9,980.3801.0000.0000.2210 DFT0001035 09/08/2023 PPE 9/2/23 STATE WTHD'G 6,055.9801.0000.0000.2270 DFT0001036 09/08/2023 CASE 200000002135289 780.5001.0000.0000.2270 DFT0001036 09/08/2023 CASE 1457313 402.5001.0000.0000.2215 DFT0001034 09/08/2023 PPE 9/2/23 MEDICARE 6,288.9401.0000.0000.2030 DFT0001035 09/08/2023 PPE 9/2/23 UI TAX WTHD'G 297.2601.0000.0000.2030 DFT0001035 09/08/2023 PPE 9/2/23 TNG WTHD'G 14.8901.0170.1730.5720 DFT0001038 09/06/2023 7/25-8/22/23 1556 IRRG CENTRAL 397.2901.0170.1730.5720 DFT0001039 09/06/2023 7/25-8/22/23 1415 IRRG SANTA ANITA 715.28

01.0170.1730.5720 DFT0001040 09/06/2023 7/25-8/22/23 1341 ISLAND/ SANTA ANITA 50.6301.0000.0000.2270 DFT0001036 09/08/2023 CASE 200000002163990 359.0001.0000.0000.2270 DFT0001036 09/08/2023 CASE 0980438 150.0001.0170.1730.5720 DFT0001037 09/06/2023 7/25-8/22/23 1450 LIDCOMBE 313.9001.0170.1730.5720 DFT0001044 09/06/2023 7/25-8/22/23 1450 LIDCOMBE 5,503.1501.0170.1730.5720 DFT0001041 09/06/2023 7/25-8/22/23 1530 IRRG CENTRAL 401.1601.0170.1730.5720 DFT0001042 09/06/2023 7/25-8/22/23 1500 CENTRAL 657.1101.0170.1730.5720 DFT0001043 09/06/2023 7/25-8/22/23 1819 CENTRAL 944.0801.0151.1543.5952 DFT0001048 08/28/2023 SPECIAL EVENT SUPPLIES 122.3301.0151.1544.5430 DFT0001048 08/28/2023 4TH OF JULY SUPPLIES 172.8801.0160.1610.5520 DFT0001048 08/28/2023 WHEELBARROW- CONCRETE 492.8201.0170.1730.5720 DFT0001045 09/06/2023 7/25-8/22/23 1402 IRR LERMA 3,693.5902.0170.1760.5966 DFT0001046 09/11/2023 7/24-8/24/23 FUEL-CITY TRANSPORTATION 7,489.1301.0000.0000.2224 DFT0001047 09/07/2023 SEPT'23 SUPPLEMENTAL LIFE 1,050.6101.0160.1620.5520 DFT0001048 08/28/2023 PLANTET & FUMIGATION/ PLANTS 198.3201.0160.1630.5520 DFT0001048 08/28/2023 FAUCET/ MCTR 246.7801.0160.1630.5520 DFT0001048 08/28/2023 BROKEN WINDOW REPAIR SUPP 47.3201.0160.1610.5520 DFT0001048 08/28/2023 GLUE/ GYM FLOOR- CCTR 19.1401.0160.1610.5520 DFT0001048 08/28/2023 BOXING GYM DOOR SUPPLIES 57.6101.0160.1610.5520 DFT0001048 08/28/2023 A/C THERMOMETER 19.0401.0160.1640.5520 DFT0001048 08/28/2023 FLOOR SQUEGEE/ POOL DECK 118.9701.0160.1640.5520 DFT0001048 08/28/2023 LIFEGUARD CHAIRS/ PAINT SUPP- AQUA CTR 29.6801.0160.1640.5520 DFT0001048 08/28/2023 CHLORIN/ POOL 412.8901.0160.1640.5520 DFT0001048 08/28/2023 COOLING HAT/ POOL 27.54

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01.0160.1650.5520 DFT0001048 08/28/2023 REFLECTORS/ NTP GATE PARKING LOT 20.8401.0160.1650.5520 DFT0001048 08/28/2023 OUTLET SUPPLIES/ SNACK BARS- NTP 74.1101.0170.1710.5520 DFT0001048 08/28/2023 WATER FOUNTAIN REPAIR SUPP/ CHALL 113.5101.0170.1710.5520 DFT0001048 08/28/2023 PAINT SUPP/ PUBLIC SFTY CTR 667.9501.0170.1710.5520 DFT0001048 08/28/2023 PAINT SUPP/ PUBLIC SFTY CTR 176.3001.0160.1660.5520 DFT0001048 08/28/2023 JETS SNACK BAR/ KEYS- SHIVELY 8.7501.0170.1710.5520 DFT0001048 08/28/2023 PAINTING SUPP/ PUBLIC SFTY CTR 95.4801.0170.1710.5520 DFT0001048 08/28/2023 PLANTS/ CHALL 104.6701.0170.1720.5520 DFT0001048 08/28/2023 CITY YARD GATE BUTTON 12.6601.0170.1750.5962 DFT0001048 08/28/2023 SMALL TOOLS/ LANDSCAPE 77.9901.0170.1760.5540 DFT0001048 08/28/2023 CAUTION TAPE 95.7501.0170.1710.5520 DFT0001048 08/28/2023 INSECT KILLER SPRAY 15.3701.0170.1710.5520 DFT0001048 08/28/2023 PLANTS/ CHALL 39.5601.0170.1720.5520 DFT0001048 08/28/2023 SCREWS/ CITY YARD 124.0649.0490.4950.5994 DFT0001049 08/10/2023 CALHOME BORROWER LOAN PAYMENT 68,000.0002.0170.1760.5550 DFT0001050 09/15/2023 SEPT'23 SWEEPER SVCS 6,140.0001.0000.0000.2215 DFT0001051 09/15/2023 PPE 09/16/23 MEDICARE 13.2601.0170.1760.5540 DFT0001048 08/28/2023 SUPPLIES/ FLAG POLES 197.5701.0170.1760.5540 DFT0001048 08/28/2023 WATER HOSE/ CHALL 27.5402.0170.1760.5540 DFT0001048 08/28/2023 OIL ABSORBER/ CHICO OIL SPILL 76.95 108.44

01.0000.0000.2030 DFT0001053 09/15/2023 PPE 09/16/23 UI TAX WTHD'G 9.1501.0000.0000.2030 DFT0001053 09/15/2023 PPE 09/16/23 TNG WTHD'G 0.4601.0170.1770.5950 DFT0001054 09/18/2023 SEPT'23 TRACTOR LEASE 1,694.6701.0000.0000.2215 DFT0001051 09/15/2023 PPE 09/16/23 FEDERAL 56.7001.0000.0000.2215 DFT0001052 09/15/2023 PPE 09/16/23 MEDICARE 10.3401.0000.0000.2215 DFT0001052 09/15/2023 PPE 09/16/23 FICA 44.20 612,213.43

01.0170.1730.5710 DFT0001059 09/13/2023 8/29-9/7/23 1459 SANTA ANITA 190.2202.0170.1760.5725 DFT0001060 09/13/2023 8/1-8/31/23 STREET LIGHTS 5,442.7001.0170.1730.5720 DFT0001056 09/15/2023 9/1-10/1/23 1415 N SANTA ANITA 72.7902.0170.1760.5725 DFT0001057 09/13/2023 8/1-8/31/23 STREET LIGHTS 3,746.8101.0170.1730.5710 DFT0001058 09/13/2023 8/1-8/31/23 2028 CENTRAL AVE 290.9701.0170.1730.5720 DFT0001055 09/15/2023 9/1-10/1/23 1900 N CENTRAL

City Council Agenda Report
Agenda Item No. 7.c.

DATE: September 26, 2023
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Rene Salas, City Manager
SUBMITTED BY: City Attorney
SUBJECT: ADOPTION OF ORDINANCE NO. 1268, AMENDING
CHAPTER 5.26 OF TITLE 5 OF THE SOUTH EL MONTE

MUNICIPAL CODE THEREBY AMENDING THE CITY'S

CANNABIS REGULATIONS IN RELATION TO APPLICATION

SELECTION CRITERIA, MAKE CLARIFICATION CHANGES,

AND MAKE SUCH OTHER CHANGES IN ORDER TO

IMPROVE THE ADMINISTRATION THEREOF
SUMMARY: Adoption of an ordinance amending Chapter 5.26 of Title 5 of the South El Monte Municipal Code thereby amending the City’s cannabis regulations in order to change application selection criteria, make clarification changes, and make such other changes in order to improve the administration thereof.

RECOMMENDED ACTION: Staff recommends City Council: Waive second reading and adopt Ordinance No.1268, amending Chapter 5.26 of Title 5 of the South El Monte Municipal Code thereby updating and amending the City’s cannabis regulations in order to amend application selection criteria, make clarification changes, and make such other changes in order to improve the administration thereof.

FISCAL/FINANCIAL IMPACT: The City does not expect any fiscal impact from this ordinance as currently there are no permitted cannabis retailers within the City. Staff will monitor the regulatory environment as it develops, and inform City Council of any fiscal impact when it can be reasonably estimated.

DISCUSSION: On September 12, 2023 the City Council of South El Monte introduced Ordinance 1268. See attached staff report regarding the first reading. Consistent with the City Council's direction at the meeting September 12, 2023, this item is now before the Council for approval.

ATTACHMENT(S):

A. Ordinance No. 1268 re Canabis Regulation
B. Exhibit A to Ordinance No. 1268 - Cannabis Ordinance Amendment

C. Ordinance No. 1260
D. Agenda Item re Ord 1268 re Cannibus

01257.0002/888375.5

ATTACHMENT A
ORDINANCE NO. 1268

AN ORDINANCE OF THE SOUTH EL MONTE CITY COUNCIL
AMENDING CHAPTER 5.26 OF TITLE 5 OF THE SOUTH EL

MONTE MUNICIPAL CODE THEREBY AMENDING THE
CITY’S CANNABIS REGULATIONS IN RELATION TO

APPLICATION SELECTION CRITERIA, MAKE

CLARIFICATION CHANGES, AND MAKE SUCH OTHER

CHANGES IN ORDER TO IMPROVE THE ADMINISTRATION

THEREOF
WHEREAS, on November 8, 2022, the voters of the City of South El Monte adopted Ordinance No. 1260, which added Chapter 5.26 to Title 5 of the South El Monte Municipal Code (“SEMMC”) and which authorized and taxes certain cannabis businesses within the City of South El Monte (“City”); and
WHEREAS, Section 14 of Ordinance No. 1260 and SEMMC Section 5.26.250 permit the City Council to amend the voter-approved cannabis regulations, provided that such amendments do not increase the adopted tax rate and, further, do not amend SEMMC Section 5.26.060; and WHEREAS, by adoption of this Ordinance, the City Council does not intend to amend Chapter 5.26 of Title 5 of the SEMMC in manner that violates Section 14 of Ordinance No. 1260 and SEMMC Section 5.26.250; and
WHEREAS, the City Council desires to amend its cannabis business regulations provided in Chapter 5.26 of Title 5 of the SEMMC (“Chapter 5.26”) so that the City is better able to administer thereof.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH EL MONTE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals set forth above are incorporated herein by this reference.

SECTION 2. CEQA. The City Council finds that the amended ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Regulations 15060(c)(3) and 15061(b)(3). Section 15060(c)(3) of the CEQA Guidelines, excludes from CEQA review, those activities that are not “projects” within the meaning of Section 15378 of the California Code of regulations. The amendment to the ordinance does not increase the number of cannabis businesses and it does not change any building regulations or requirements that could be an environmental impact. In addition, CEQA Guidelines Section 15061(b)(3) includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

The amended ordinance makes changes to the City’s cannabis regulations in order to improve the administration of the City’s cannabis regulations and cannabis businesses. As such, it can be seen with a certainty that there will be no impact upon the environment due to the approval of the amended ordinance. Furthermore, the adoption of the amended ordinance is exempt from CEQA because the creation of a government funding mechanism which does not involve any commitment

01257.0002/888375.5
to any specific project is not a "project" under CEQA pursuant to Public Resources Code Section 21080 and CEQA Guideline 15378(b)(4).

SECTION 3. Amendment to Chapter 5.26. Chapter 5.26 is hereby amended in its entirety as provided in Exhibit A of this Ordinance (For the purposes of Exhibit A, strikethroughs represent deletions and double underline represent additions).

SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional.

SECTION 5. Certification and publication. The ordinance shall take effect on January 1, 2023 and within (5) days after its passage, the City Clerk of the City of El Monte shall certify to the passage and adoption of this ordinance and to its approval by the Mayor and City Council and the Building Official shall cause the same to be filed with the California Building Standards Commission. And within (15) days after its passage, the City Clerk shall certify to the adoption of this ordinance and shall cause a summary of same to be published once in a newspaper of general circulation within the City of South El Monte.

PASSED, APPROVED, AND ADOPTED this __ day of ___ 2023.
_____________________________________
Gloria Olmos, Mayor
ATTEST:
__________________________________
Donna G. Schwartz, City Clerk
APPROVED AS TO FORM:
__________________________________
Anthony R. Taylor, City Attorney

01257.0002/888375.5

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF SOUTH EL MONTE )
I, Donna G. Schwartz, City Clerk of the City of South El Monte, do hereby certify that the foregoing ordinance, being Ordinance No. 1268 was passed and approved by the City Council of the City of South El Monte at a regular meeting of said Council held on the ____ day of ___, 2023 by the following vote:

AYES: Councilmember(s):

NOES: Councilmember(s):

ABSENT: Councilmember(s):

ABSTAIN: Councilmember(s):
_______________________________
Donna G. Schwartz, City Clerk

EXHIBIT A – AMENDMENTS TO CHAPTER 5.25
PAGE 1 OF 37
01257.0002/888981.1
Chapter 5.26 COMMERCIAL CANNABIS OPERATIONS REGULATORY PROGRAM

5.26.010 Purpose and intent.

A. The purpose of this chapter is to establish a comprehensive set of regulations with an attendant regulatory permit applicable to the operation of certain types of commercial cannabis operations, while simultaneously establishing an express prohibition on certain other types of commercial cannabis operations.

B. The regulations for, and prohibitions on, specific types of commercial cannabis operations are enacted to preserve the public health, safety, and welfare of the residents and visitors of the city, consistent with the state’s Compassionate Use Act of 1996, Medical Marijuana Program Act of 2003, Adult Use of Marijuana Act of 2016 MAUCRSA, and all applicable state laws governing commercial cannabis operations.

C. The issuance of a commercial cannabis operation permit shall constitute a revocable privilege and shall not create or establish any vested rights for the development or use of a property.

D. This chapter and any administrative regulations adopted pursuant to this chapter shall be known as the “commercial cannabis operations regulatory program” or the “program.”

5.26.020 Commercial cannabis operation prohibited without city commercial cannabis operation permit.

It is unlawful to own, establish, operate, use, or permit the establishment or activity of a commercial cannabis operation, or to participate in commercial cannabis operations as an employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in this chapter and pursuant to both a current and valid city commercial cannabis operation permit, as well as the equivalent state license for such commercial cannabis operation as provided for by Section 26050 of the State Business and Professions Code, and as amended from time to time. The prohibition contained in this section shall include renting, leasing, or otherwise permitting a commercial cannabis operation to occupy or use a location, vehicle, or other mode of transportation.

5.26.030 Definitions.

As used in this chapter, the following words and phrases shall have the following meanings. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to state statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. “Adult use” (i.e., “recreational” or “non-medical”) refers to activity involving cannabis or cannabis products, which is restricted to adults twenty-one years of age and older and who do not possess a physician’s recommendation, in contrast to an activity involving medical cannabis or medical cannabis products.

ATTACHMENT B

EXHIBIT A – AMENDMENTS TO CHAPTER 5.25
PAGE 2 OF 37
01257.0002/888981.1
“Alcohol or drug treatment facility” shall have the same definition as “alcoholism or drug abuse recovery or treatment facility” as defined in Section 11834.02(a) of the State Health and Safety Code, which currently defines the term as “any premises, place, or building that provides residential nonmedical services to adults who are recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services.” Further, “alcohol or drug treatment facility” shall also include such a facility that provides treatment for minors to the extent permitted by law. “Applicant” means a person who files an application for a commercial cannabis operation permit under this chapter (and shall not include the owners or the managers of the applicant). “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. “City” means the city of South El Monte, state of California. “City attorney” means the city of South El Monte city attorney, and includes his or her designee(s). “City council” means the city council of the city of South El Monte. “City manager” means the city of South El Monte city manager, and includes his or her designee(s).
“Code” means the city of South El Monte Municipal Code, as may be amended. “Commercial cannabis operation” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale (including retail and wholesale, and including medical-only and adult-use sales) of cannabis and cannabis products; except, as applicable, the activities provided in Section 5.26.220(A) or as preempted by state law.

EXHIBIT A – AMENDMENTS TO CHAPTER 5.25
PAGE 3 OF 37
01257.0002/888981.1
“Commercial cannabis operation permit” shall mean a city permit issued pursuant to the procedures provided for in this chapter allowing the permit holder to operate a specific type of commercial cannabis operation in the city subject to the requirements of this chapter, state law, and the specific permit.
“County” means the county of Los Angeles, state of California. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Customer” means a natural person twenty-one years of age or over or a natural person eighteen years of age that is a qualified patient or primary caregiver. “Day care center” means, a facility other than a family day care home, infant centers, toddler, preschool, and school age children licensed by the State Department of Social Services pursuant to Section 1596.951 of the State Health and Safety Code. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of “day care center” under this chapter shall override the definition of “day care center” in MAUCRSA at Section 26001 of the State Business and Professions Code. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer, and includes the use of any technology platform owned and controlled by the same person making such use.
“Director” means the city of South El Monte community development director, and includes his or her designee(s).
“Distribution” means the procurement, sale, and transport of cannabis and cannabis products between entities licensed for and/or engaged in commercial cannabis operations under state law. “Distributor” means a person engaged in distribution.
“Edible” means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the State Health and Safety Code, or a drug, as defined by Section 109925 of the State Health and Safety Code. “Employee” means any person (whether paid or unpaid) who provides regular labor or regular services for a commercial cannabis operation, including, but not limited to, at the location of a commercial cannabis operation. The term “employee” includes managers and owners as used in this chapter.
“Extraction” means the process of obtaining cannabis concentrates from cannabis plants, including, but not limited to, through the use of solvents like butane, alcohol or carbon dioxide. “Finance director” means the city of South El Monte finance director, and includes his or her designee(s).

EXHIBIT A – AMENDMENTS TO CHAPTER 5.25
PAGE 4 OF 37
01257.0002/888981.1
“Fire chief” means the Los Angeles County fire department chief, and includes his or her designee(s).
“Gross receipts” means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever. However, the following shall be excluded from gross receipts:

1. Cash discounts where allowed and taken on sales;

2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

4. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;

5. Cash value of sales, trades, or transactions between departments or units of the same business;

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered;

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and

8. Any proceeds resulting from a transfer or change of ownership or control in the business.
“Identification card” has the same definition as provided for in Section 11362.7(g) of the State Health and Safety Code, and as may be amended, defined as “a document issued by the [State Department of Health Services] that identifies a person authorized to engage in the medical use of cannabis and the person’s designated primary caregiver, if any.” “Labeling” means any label or other written, printed, or graphic matter upon cannabis or a cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product. “Labor peace agreement” means an agreement between a cannabis retailer and any bona fide labor

EXHIBIT A – AMENDMENTS TO CHAPTER 5.25
PAGE 5 OF 37
01257.0002/888981.1
organization that, at a minimum, protects the city’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. “Liquid assets” means assets that can be readily converted into cash. “Liquid assets” include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto. “Location” means any parcel of land, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lot area.
“Lighting” means the act of illuminating as well as the effect achieved by the arrangement of lights.
“LiveScan” means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice (“DOJ”) that involves digitizing fingerprints and electronically transmitting the fingerprint image data along with personal descriptor information to computers at the DOJ for completion of a criminal record check; or such other comparable inkless electronic fingerprinting and automated background check process as determined by the city council.
“Manager” means an employee responsible for management and/or supervision of a commercial cannabis operation, including, but not limited to, any: (1) manager or managing member or other officer of a limited liability company; or (2) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation. “Manufacture” or “manufacturing” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product; includes the activities of a manufacturer. “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container; includes the activity of manufacturing. “Marijuana” has the same definition as provided for “cannabis” in this chapter. “MAUCRSA” means the State Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified at Section 11018 et seq., of the State Health and Safety Code, Section 26001 et seq., of

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the State Business and Professions Code, Section 34010 of the State Revenue and Tax Code, and Section 81000 et seq., of the State Food and Agriculture Department Code, as may hereinafter be amended.
“Medical” refers to activity involving medical cannabis or medical cannabis products, in contrast to an activity involving adult-use cannabis or adult-use cannabis products. “Medical cannabis” or “medical cannabis product” means cannabis or a cannabis product used in compliance with state law for medical purposes, pursuant to the Compassionate Use Act (Section 11362.5 of the State Health and Safety Code), the Medical Marijuana Program Act (Section 113262.7 et seq., of the State Health and Safety Code ), and the MAUCRSA. “Microbusiness” shall have the same definition as provided for in Section 26070 of the State Business and Professions Code, and as may be amended.
“Minor” means a person under twenty-one years of age.
“Nursery” means a person that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. “Operations officer(s)” shall refer to the director, the fire chief, the police chief, the finance director and the city manager, individually or collectively.
“Owner” means any of the following:

1. A person owning in the aggregate equity interests representing ten percent or more of the voting power of all outstanding equity in the applicant or a commercial permittee;

2. The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or

3. A member of the board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an “owner” for the purpose of compliance with this chapter, including the review and evaluation of any commercial cannabis operation permit application. “Package” means any container or receptacle used for holding cannabis or cannabis products. “Packaging” or “packages” means an activity involved with placing cannabis or cannabis products in a package.
“Park” means public land which has been designated for park or recreational activities, including, but not limited to, a park, playground, nature trails, swimming pool, athletic field, basketball court, tennis court, pedestrian or bicycle paths, beaches, open space, or similar public land within the city or which is under the control, operation or management of the city recreation and parks department. “Park” shall not include any youth center.

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“Permittee” means a person issued a commercial cannabis operation permit by the city. “Person” means any individual, firm, co-partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.
“Person with an identification card” has the same definition as provided for in Section 11362.7(c) of the State Health and Safety Code, and as may be amended, defined as “an individual who is a qualified patient who has applied for and received a valid identification card pursuant to this article.”
“Physician’s recommendation” means a determination from a physician that a patient’s medical cannabis use is deemed appropriate and is recommended by the physician on the basis of the physician has determined that the patient’s health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief, in strict accordance with Section 11362.5 of the State Health and Safety Code.
“Police chief” means the Los Angeles County sheriff, and includes his or her designee(s). “Police department” means the Los Angeles County sheriff’s department. “Premises” means the designated structure or structures and land specified in a commercial cannabis operation permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where commercial cannabis operation will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee. “Primary caregiver” has the same definition as provided for in Section 11362.7(d) of the State Health and Safety Code, and as may be amended, defined as “the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person.” A “primary caregiver” shall also meet the requirements of Section 11362.7(e) of the State Health and Safety Code, and as may be amended, which provide that a “primary caregiver shall be at least eighteen years of age, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under state law pursuant to Section 6922, 7002, 7050, or 7120 of the Family Code.”
“Qualified patient” has the same definition as provided for in Section 11362.7(f) of the State Health and Safety Code, and as may be amended, defined as “a person who is entitled to the protections of Section 11362.5, but who does not have an identification card issued pursuant to this article.” “Religious institution” means any church, synagogue, mosque, temple, or building which is used primarily for religious worship, religious education, and related religious activities. “Residentially zoned property” means any parcel of land located within the city zoned: R-1 (singlefamily residential zone), R-2 (multiple residential zone), or R-3 (multiple residential zone).

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“Retailer” means a person engaged in the retail sale or delivery of cannabis or cannabis products to a customer. “Retailer” includes “retailer (medical-only)” and “retailer (medical/adult use).” “Retailer (medical-only)” refers to a retailer which is restricted by the terms of its commercial cannabis operation permit to engaging in the retail sale or delivery of medical cannabis or cannabis products as stated in Section 5.26.120(A). “Retailer (medical/adult-use)” refers to a retailer which is not so restricted by the terms of its commercial cannabis operation permit, and which accordingly may engage in the retail sale or delivery of medical or adult-use cannabis or cannabis products to a customer.
“Retail sale(s)” means any commercial cannabis operation involving the retail sale of cannabis or cannabis products from a retailer.
“Sale(s)” means any sale, exchange, or barter or other transaction for any consideration. “School” means as evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through grade 12, as authorized by the State Department of Education or a private school instructing children in grades kindergarten through grade 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of “school” under this chapter shall override the definition of “school” used in MAUCRSA or Section 11362.768 of the State Health and Safety Code. “Site” means the premises and actual physical location of a commercial cannabis operation, as well as its accessory structures and parking areas.
“State” means the state of California.
“Testing laboratory” or “testing” refers to a laboratory, facility, or entity that offers or performs tests on cannabis or cannabis products; includes the activity of laboratory testing. “Youth center” means: (1) any public or private facility that is primarily used to host recreational or social activities for minors, such as private youth membership organizations or clubs, social service teenage club facilities; or (2) a park, playground, or recreational area specifically designed to be used by children that may have play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any facility located on a public or private school grounds, or on city, county, or parks. “Youth center” shall not include any private martial arts, yoga, ballet, music, or similar studio of this nature nor shall it include any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of “youth center” under this chapter shall override the definition of “youth center” in MAUCRSA at Section 26001 of the State Business and Professions Code.

5.26.040 Prohibited commercial cannabis operations.

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A. Commercial cannabis operations (including non-profit operations) within the city that involve the activities of non-storefront retailer (whether medical-only or medical/adult-use), cultivation, manufacturer, testing, distribution, or microbusiness are prohibited, including, but not limited to, commercial cannabis operations licensed by the state in the license classifications listed below as provided in Section 26050 of the State Business and Professions Code:

1. Type 1 = Cultivation; Specialty Outdoor; Small.

2. Type 1A = Cultivation; Specialty Indoor; Small.

3. Type 1B = Cultivation; Specialty Mixed Light; Small.

4. Type 1C = Cultivation; Specialty Cottage; Small.

5. Type 2 = Cultivation; Outdoor; Small.

6. Type 2A = Cultivation; Indoor; Small.

7. Type 2B = Cultivation; Mixed-light; Small.

8. Type 3 = Cultivation; Outdoor; Medium.

9. Type 3A = Cultivation; Indoor; Medium.

10. Type 3B = Cultivation; Mixed-Light; Medium.

11. Type 4 = Cultivation; Nursery.

12. Type 5 = Cultivation; Outdoor; Large.

13. Type 5A = Cultivation; Indoor; Large.

14. Type 5B = Cultivation; Mixed-Light; Large.

15. Type 6 = Manufacturer 1.

16. Type 7 = Manufacturer 2.

17. Type 8 = Testing.

18. Type 9 = Non-Storefront Retailer (Delivery Only).

19. Type 11 = Distributor.

20. Type 12 = Microbusiness.

B. The prohibition provided by above subsection A includes any similar activities authorized under new or revised state licenses, or any other state authorization, to allow any type, category or classification of cannabis commercial operations that involve the activities of non-storefront

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retailer (Type 9, i.e., delivery only) (whether medical-only or medical/adult-use), cultivation, manufacturer, testing, distribution, microbusiness, or similar operations (including non-profit, collective or cooperative operations).

5.26.050 Permitted commercial cannabis operations.

A. Commercial cannabis operations (including non-profit operations) within the city which involve the activity of retailer (Type 10: medical-only and medical/adult-use) are allowed subject to issuance and maintenance of a valid and current city commercial cannabis operation permit, continuing adherence to this entire chapter and all applicable city and state regulations and laws, and issuance and maintenance of a valid and current equivalent state license type listed below, as provided for in Section 26050 of the State Business and Professions Code:

1. Type 10 = Retailer (Medical-Only; Medical/Adult-Use).

B. The requirements provided by above subsection A apply to any similar activities authorized under new or revised state licenses, or any other state authorization, to allow any type, category or classification of cannabis commercial operations that involve the activity of retailer (medical-only and medical/adult-use) or similar operations (including non-profit, collective or cooperative operations).

5.26.060 Maximum number of commercial cannabis operation permits.

A. The number of commercial cannabis operation permits for retailer (medical/adult-use) commercial cannabis operations based within the city shall be no more than one.

B. Notwithstanding subsection A of this section, if the city council opts, in its sole discretion, to reinstitute the application procedure after the first year following the operative date of this chapter pursuant to Section 5.26.070(H), then two additional retailer (medical/adult-use) commercial cannabis operation permits may be issued such that the maximum number of commercial cannabis operation permits for retailer (medical/adult-use) commercial cannabis operations based within the city shall be increased to no more than three retailers (medical/adultuse).

C. The number of commercial cannabis operation permits for non-storefront retailer (delivery only) (whether medical-only or medical/adult-use) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city shall be zero. However, should a court of competent jurisdiction, as a judicial remedy, order the city council to increase the maximum number of commercial cannabis operation permits for non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city, the number of commercial cannabis operation permits for non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city shall be no more than two.

D. The maximum number of commercial cannabis operation permits issued for retailer

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(including medical-only and medical/adult use retailer, individually and collectively) commercial cannabis operations based within the city or non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) based outside the city may not be amended by the city council or regulations promulgated by the city manager pursuant to this chapter. However, the city council may and shall increase the maximum number of commercial cannabis operation permits issued for retailer commercial cannabis operations based within the city or non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) based outside the city: (1) if ordered to do so by a court of competent jurisdiction as a judicial remedy; or (2) by a vote of the people of the city.

5.26.070 Commercial cannabis operation permit application procedure.

A. Following the effective date of this chapter, the city manager, pursuant to Section 5.26.140, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of applications for retailer (medical-only and medical/adult-use) commercial cannabis operations up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060.

B. The city manager shall, as a ministerial duty, cease acceptance of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations thirty days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations.

C. Within thirty days of ceasing the acceptance of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations, the city manager shall, as a ministerial duty, review timely submitted commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations for the following minimum requirements:

1. Payment of an application fee established by resolution of the city council within forty-five days following the effective date of this chapter to cover all costs incurred by the city in the application process;

2. Sufficient evidence of the legal right to use the proposed property for the proposed use, to including, without limitation,e a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a commercial cannabis operation permit or other approvals. The city shall only consider one applicant per property address or county assessor’s identification number. In the event that more than one applicant applies for a commercial cannabis operation permit application at a given property address or a given county assessor’s identification number, the city manager shall, as a ministerial duty, only accept the commercial cannabis operation permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;

3. Sufficient evidence to demonstrate that the proposed property complies with the

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location and zoning requirements in Section 5.26.120;

4. Proof that an owner or owners of the applicant with an aggregate ownership interest of fifty percent or more has served as an owner or owners with an aggregate ownership interest of fifty percent or more of six or more other retailer (medical-only or medical/adult-use) commercial cannabis operations by a city, county, or state since at least January 1, 2022;

5. Proof of funds showing that the applicant has access and control of over five hundred thousand dollars in liquid assets (which such liquid assets having been under possession for at least ninety days prior to the date of the application submission under this section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement that demonstrates access and control of over five hundred thousand dollars in liquid assets under possession for at least ninety days prior to the date of the application submission under this section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over five hundred thousand dollars in liquid assets except on initial application pursuant to this Section 5.26.070, a change in location application pursuant to Section

5.26.100, or an ownership transfer application pursuant to Section 5.26.100;

6. For an applicant with two or more employees, proof of a labor peace agreement between a bona fide labor organization and the applicant (the applicant shall provide the city with a copy of the labor peace agreement that contains the signatures of the union representative and the cannabis business). For applicants with less than two employees who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty days after employing two employees;

7. A set of plans, including a site development plan, floor plan(s), building elevations (all four sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

8. Colored interior and elevation renderings;

9. A completed background check application and receipt for each owner and manager of the applicant pursuant to Section 5.26.110(H);

10. The following application components: (a) qualifications of the applicant’s owners and managers, (b) business and operations plan, (c) security plan, (d) safety plan, (e) neighborhood compatibility plan, (f) labor and employment plan, and (g) community benefits plan; and

11. Disclosure of whether the applicant is applying for a commercial cannabis operation permit as a retailer (medical-only) or retailer (medical/adult-use).

The city manager shall, as a ministerial duty, reject any commercial cannabis operation permit application that fails to meet the minimum requirements contained in this subsection C, and applicants shall not have the right to supplement or amend their commercial cannabis operation permit applications.

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D. Within sixty days of completing the application review under subsection C above, the city manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria according to the following quantitative evaluation scale, with retailer (medical-only) applicants ranked only against other retailer (medical-only) applicants and retailer (medical/adult-use) applicants ranked only against other retailer (medical/adult-use) applicants unless otherwise provided by administrative regulations promulgated pursuant to Section 5.26.140:

1. Qualifications of the Applicant’s Owners and Managers—Two Hundred Fifty Points. The people of the city find that a proven track-record of for retailer commercial cannabis operations that successfully generate tax revenue carries out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant’s owners and managers. Accordingly, one hundred fifty of the two hundred fifty points awardable under this subsection shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of fifty percent or more is currently at the time of application submission under this section an owner or owners with an aggregate ownership interest of fifty percent or more of a single licensed and lawfully operating retailer commercial cannabis operations (excluding any non-retailer microbusiness, cultivation, manufacturing, distribution, or other non-retailer commercial cannabis operation components) that has generated at least five million dollars in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state.

The remaining one hundred of the two hundred fifty points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to fifty points—A description of the applicant’s owner and manager qualifications detailing any special business or professional qualifications or licenses of the applicant’s owner and manager that would add to the quality of services that the retailer commercial cannabis operation would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, waste management, real estate development, scientific, or healthcare or wellness fields. b. Up to fifty points—Documentation that the applicant’s owners and managers have experience operating retailer commercial cannabis operations in any jurisdiction where retailer commercial cannabis operations are permitted.

2. Plans, Renderings, and Overall Location—Fifty Points. The fifty points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to ten points—A premises diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations. b. Up to ten points—A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in this Code. Information on existing conditions shall

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include:
i. Exterior photographs showing all sides of any existing structure(s); ii. Photographs of existing parking areas, landscaping, trash enclosure, and signage;
iii. Information on existing use on the site, including the addresses, uses, and square footages;
iv. Photographs of the existing site if the site is vacant; and v. Photographs of adjacent properties for context.
c. Up to ten points—A floor plan showing information on the existing layout and proposed layout of the building interior.
d. Up to ten points—Building elevations that provide information on existing conditions and proposed improvements.
e. Up to five points—A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species. f. Up to five points—Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).

3. Business and Operations Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to ten points—A written description of the total square footage of the facility with estimated square footage of proposed uses. b. Up to ten points—A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion. c. Up to ten points—A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs. d. Up to five points—A description of the sources(s) of capital and use(s) of capital.
e. Up to ten points—Pro forma financial statements for at least three years of operation.
f. Up to five points—A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

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g. Up to five points—A description of marketing procedures and tactics. h. Up to ten points—A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.
i. Up to five points—A description of hours of operation and opening procedures.
j. Up to ten points—A description of cash handling procedures. k. Up to ten points—A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software. l. Up to ten points—A description of transportation, loading and unloading, distribution, or delivery procedures.

4. Security Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to twenty points—The security plan shall be prepared by a professional security consultant.
b. Up to ten points—A premises security diagram.
c. Up to fifty points—A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this chapter.
d. Up to ten points—A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company. e. Up to ten points—A description of the services of on-site security guards to include the: (i) number of security guards; (ii) hours security guards will be on site; (iii) locations where security will be positioned; and (iv) security guard responsibilities.

5. Safety Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to twenty points—The safety plan shall be prepared by a professional fire prevention and suppression consultant.
b. Up to ten points—A premises safety diagram to include: (i) a description/illustration of evacuation routes; and (ii) location of fire extinguishers and other fire suppression equipment.
c. Up to fifty points—A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety

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requirements under this chapter.
d. Up to ten points—Identify all gases, pesticides, and chemicals to be used and their storage locations.
e. Up to ten points—A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood Compatibility Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to forty points—A “Good Neighbor Policy” that: (i) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis business; and (ii) describes how the cannabis business and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.
b. Up to twenty points—A description of odor mitigation practices to include:
(i) identifying potential sources of odor; (ii) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (iii) all proposed staff odor training and system maintenance. c. Up to twenty points—A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s security measures and methods of rendering waste unusable and unrecognizable. d. Up to twenty points—A description of efforts at
sustainability/environmental impact mitigation.

7. Community Benefits Plan—One Hundred PointsThree Hundred Fifty Points. The people of the city find that monetary donations to local non-profit organizations, financial support of city sponsored activities or organizations, in kind donations to the city or other charitable organizations, and economic incentives to the city carry out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate an effective community benefits plan.

Accordingly, fifty two hundred of the three hundred fiftyone hundred points awardable under this subsection shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to two percent of projected gross receipts of the applicant to a public school located within the city, a public park located within the city, and/or a public or nonprofit community organization serving the city or its residents. Beyond the above and as a ministerial duty, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining fifty one hundred fifty of the three hundred fifty one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective

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criteria:
a. Up to twenty-fivefifty points—A description of a social responsibility plan to include identification of a community liaison, plans to serve as a social equity business incubator, plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or social services organizations. b. Up to twenty-fivefifty points—A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction. c. Up to fifty points – A proposal and description of any community benefits agreement proposed by the applicant pursuant to Section 5.26.130.

8. Labor and Employment Plan—Two Hundred Points. The people of the city find that a proven track-record of cannabis retailer operations with high labor standards and commitment to labor peace carries out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate an effective labor and employment plan. Accordingly, one hundred of the two hundred points awardable under this subsection shall only be awarded if the applicant provides documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of fifty percent or more have entered into collective bargaining agreements with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section) and such collective bargaining agreements accrete or automatically apply to all cannabis retailers permitted or licensed in the State after July 1, 2021 (notwithstanding the fact that employees of such cannabis retailers permitted or licensed in the state after July 1, 2021 (if any), have yet to have had an opportunity to recognize the labor organization that currently represents cannabis workers in the United States), by the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety percent or more referenced above.

The remaining one hundred of the two hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to ten points—An organizational chart of showing owners, managers, and employees.
b. Up to ten points—A description of the owner’s and manager’s roles in dayto-day operations and decisions. c. Up to ten points—A description of the number of employees, title/position, and their respective responsibilities.
d. Up to fifteen points—A description of compensation to employees, opportunities for continuing education, and employee training.

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e. Up to fifteen points—A description of whether the cannabis business is committed to offering employees a living wage.
f. Up to fifteen points—A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
g. Up to fifteen points—A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
h. Up to ten points—A description of a plan to have at least fifty percent of employee positions filled and hours worked by employees residing in the city.

E. Upon timely receipt of a commercial cannabis operation permit application, the city manager shall conduct background checks in accordance with Section 5.26.110(H). Following review and scoring of applications completed pursuant to objective review criteria under subsection D, the city manager shall, as a ministerial duty, recommend that the city council issue commercial cannabis operation permits to applicants in order of their rank under subsection D up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060.

The city council shall consider the city manager’s recommendations, and may conduct its own independent review and scoring of applications completed pursuant to objective review criteria under subsection D and substitute such review and scoring for that of the city manager in whole or in part if it sees fit to do so, and shall thereupon, as a ministerial duty, issue commercial cannabis operation permits to applicants in order of their rank under subsection D up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060. For the initial iteration of the application process pursuant to this section, the number of commercial cannabis operation permits issued shall be no more than the maximum number of Commercial Cannabis Operation Permits authorized in Section 5.26.060(A)two retailers (medical-only) and one retailer (medical/adult use) commercial cannabis operation permits. In the event of a tie in the order of ranking under subsection D between one or more applicants up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060, the city council shall, as a ministerial duty, break the tie and issue commercial cannabis operation permits to the applicants with the highest scoring application component in the following order: (1) qualifications of the applicant’s owners and managers; (2) community benefits plan; (3) labor and employment plan; (43) security plan; (54) safety plan; (5) community benefits plan; (6) neighborhood compatibility plan; (7) business and operations plan; and (8) plans, renderings, and overall location. In the event of a tie on all application components between one or more applicants up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060, the city manager shall not hold a public lottery, but rather arrange for the tied applicants to provide public presentations before the city council, after which the city council shall publicly rank the applicants pursuant to ranking sheets prepared by the city manager that achieve a forced ranking based on all of the objective review criteria and quantitative evaluation scale in subsection D, and the city council shall issue commercial cannabis operation permits to applicants in order of their rank up to the maximum number of commercial cannabis operation permits available following the city manager’s/city council’s original ranking and issuance of commercial cannabis operation permits and the limits contained in Section 5.26.060. However, the city council shall not issue a commercial cannabis operation permit to any applicant with an applicant, owner, or manager that:

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1. Provided false or misleading information on the applicant’s commercial cannabis operation permit application;

2. Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in Section 26057(b)(4) of the State Business and Professions Code; or

3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis operations or has had a license suspended or revoked under MAUCRSA in the three years immediately preceding the date the application was submitted.

F. Any decision of the city council under this Section 5.26.070 shall be a final administrative decision not subject to administrative appeal under any provisions of this chapter or any provisions of this Code but, rather, subject to judicial review and remedies.

G. In the event that: (1) the number of active, operating retailer (medical-only or medical/ adult-use) commercial cannabis operations and issued commercial cannabis operation permits falls below the maximum number of commercial cannabis operation permits for retailer (medical-only or medical/adult-use) commercial cannabis operations authorized in Section 5.26.060; or (2) the city council is ordered to increase the maximum number of commercial cannabis operation permits issued for retailer (medical-only or medical/adult-use) commercial cannabis operations by a court of competent jurisdiction as a judicial remedy (e.g., if a court of competent jurisdiction orders the city council to make commercial cannabis operation permits available for non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city), the city manager shall, as a ministerial duty, within thirty days reinstitute the application procedure under this Section

5.26.070, subject to the maximum number of commercial cannabis operation permits authorized and available (not allocated to an active, lawfully operating retailer) for issuance pursuant to Section 5.26.060. However, if the city council determines to not issue any permits pursuant to Section 5.26.070(I), then the city manager shall not be required to reinstitute the application procedure provided herein unless directed to do so by a majority of the city council. For the purpose of this section, a retailer (medical-only or medical/adult-use) commercial cannabis operation shall be considered operating if: (1) upon initial issuance of commercial cannabis operation permit (or approval of a change in location pursuant to Section 5.26.100), the retailer commercial cannabis operation commences lawful operations within twenty-four months; or (2) following initial commencement of lawful operations, the retailer commercial cannabis operation does not cease or abandon operations for one hundred eighty consecutive or cumulative days in any one-year period.

H. Additionally, pursuant to Section 5.26.060(B), at any time after the first year following during the second year from the operative date of this chapter, the city council may, by resolution or minute action, reinstitute the application procedure under this section for the purpose of considering issuance of one additional retailer (medical/adult-use) commercial cannabis operation permits up to the maximum provided, in which case the maximum number of commercial cannabis operation permits for retailer (adult-use/medical) commercial cannabis operations based in the city shall increase from one to two as stated in Section 5.26.060(B).

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I. Notwithstanding anything to the contrary in this chapter, the city council is not required or obligated to issue any commercial cannabis operation permits to any applicants pursuant to this chapter if the city council determines that the issuance of such permits would be detrimental to the public health and safety.

5.26.080 Limitations on the city’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a commercial cannabis operation permit pursuant to this chapter or otherwise approving any retailer commercial cannabis operation. As a condition to the approval of any commercial cannabis operation permit, the applicant shall be required to meet all of the following conditions before they can receive a commercial cannabis operation permit:

A. Execution of an agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the city, and its officers, officials, employees, representatives, and agents harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of or which are in any way related to the city’s issuance of the commercial cannabis operation permit, the city’s decision to approve the retailer commercial cannabis operation, the process used by the city in making its decision, or the alleged violation of any federal, state, or local laws by the retailer commercial cannabis operation or any of its owners, managers, officers, employees, or agents.

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city attorney.

C. Defend and indemnify the city, its elected and appointed officials, employees and attorneys for all costs and expenses, including, but not limited to, attorneys’ fees and court costs, that the city may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s commercial cannabis operation permit, any matter arising from the operations of said cannabis business and/or related to the city’s approval of retailer commercial cannabis operations.

The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any of the obligations imposed on the applicant hereunder.

D. Provides written authorization to the operations officers to conduct reasonable unannounced inspections of the location of the commercial cannabis operation at the reasonable discretion of the city, including, but not limited to, inspection of security, inventory, and written records and files pertaining to the commercial cannabis operation, for the purposes of ensuring compliance with this chapter and all laws of the city and the state.

5.26.090 Commercial cannabis operation permit term.

A. Subject to this section and Section 5.26.160, the term of each commercial cannabis operation permit shall be indefinite.

B. Upon the one-year anniversary of the date of issuance for each commercial cannabis operation permit and every year thereafter, the city manager shall conduct a performance review

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of the permittee to assess compliance with the requirements of this chapter and state law. Within thirty days of the conclusion of the annual performance review of the permittee, the city manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance, which shall include deadlines for completion of such items. The city manager may revise such deadlines if he or she determines that additional time is needed to complete such items. In the event of any noncompliance, the permittee shall have sixty days to remedy such noncompliance. However, in the event such noncompliance items cannot be reasonably remedied within sixty days, such noncompliance items shall not constitute a serious material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this chapter subject to suspension or revocation under Section 5.26.160 if the permittee commences correction of such noncompliance items within sixty days and thereafter diligently prosecutes correction of such noncompliance items to completion.

C. The permittee shall pay a fee in an amount to be set by the city council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the city to administer the program created under this chapter.

5.26.100 Change in location—Transfer—Updated application information.

A. A permittee may change the business location specified in a commercial cannabis operation permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under Section 5.26.140 within one hundred eighty days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in location applications. The city manager shall process such change in location applications as a ministerial duty within thirty days of receipt.

B. An owner of a commercial cannabis operation permit shall not transfer ownership or control of such commercial cannabis operation permit to another person unless and until the permittee and transferee obtain an amendment to the commercial cannabis operation permit that is approved by the city council upon recommendation from the city manager stating that the permit may be transferred. A permittee may change the ownership specified in a commercial cannabis operation permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under Section 5.26.140 within one hundred eighty days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in ownership applications. The city manager shall process such change in ownership applications as a ministerial duty within thirty days once the city manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

C. Notwithstanding subsection B, during the first three years following the issuance of a commercial cannabis operation permit, the city manager shall not process any application to change the ownership or control of a commercial cannabis operation permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to Section

5.26.070. For example, if a permittee received one hundred points when it was an applicant for

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providing documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section), the city manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

D. Notwithstanding subsection B, no commercial cannabis operation permit may be transferred when the city manager has notified the permittee that its commercial cannabis operation permit has been or may be suspended or revoked.

E. Any attempt to transfer a commercial cannabis operation permit either directly or indirectly in violation of this section is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit.

F. An applicant or permittee shall notify the city manager or designee(s) within fifteen calendar days of any material change in the information provided in the applicant or permittee’s commercial cannabis operation permit application or any change in status of compliance with the provisions of this chapter, including any change in ownership or management.

5.26.110 General operating standards and restrictions.

A commercial cannabis operation shall operate in conformance with the following minimum standards, and such standards shall be deemed to be part of the conditions on the permit for a commercial cannabis operation to ensure that its operation is in compliance with state law and this Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from of the city council, or by the city manager pursuant to Section 5.26.140.

A. State Standards. All state requirements and regulations that govern the operation of a commercial cannabis operation, including, but not limited to, ones related specifically to certain types of commercial cannabis operations, shall apply as minimum requirements and regulations and requirements for commercial cannabis operations within the city of South El Monte, in addition to the requirements and regulations of this chapter and this Code.

B. Security.

1. General. All cannabis, cannabis products and cash present or kept at the premises shall be securely stored against both unauthorized access as well as theft.

2. Security Cameras.
a. Security cameras shall be installed and maintained in good condition, with

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at least ninety days of digitally recorded documentation in a format approved by the city manager and the police chief.
b. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present at the site of the commercial cannabis operation.
c. The cameras shall be in continuous use twenty-four hours per day, seven days per week.
d. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium approved by the city manager, such as DVD and/or a USB drive.
e. The areas to be covered by the security cameras include, but are not limited to, the storage areas, operation areas, all doors and windows, the parking lot, all exterior sides of the property adjacent to the public rights-of-way, and any other areas as determined by the city manager and police chief.
f. Remote log-in information will be provided to the operations officers to allow them to view live and recorded security camera images remotely at any time.

3. Alarm System. The location of the commercial cannabis operation shall be alarmed with a centrally-monitored fire and burglar alarm system, and monitored by an alarm company properly licensed by the State Department of Consumer Affairs Bureau of Security and Investigative Services in accordance with Section 7590, et seq., of the State Business and Professions Code and whose agents are properly licensed and registered under applicable law.

4. Locked Entrances. All entrances into the building housing a commercial cannabis operation shall be locked from the exterior at all times with entry controlled by employees.

5. Windows. All windows on the building that houses the commercial cannabis operation shall be secured against entry from the outside.

6. No employee shall refuse, impede, obstruct or interfere with an inspection conducted pursuant to the authorizations provided by this chapter.

C. Odors.

1. A commercial cannabis operation shall have an air treatment system that ensures off-site odors shall not result from its activities.

2. This requirement at a minimum means that the commercial cannabis operation shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location of the commercial cannabis operation is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the commercial cannabis operation, if the use only occupies a portion of a building.

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D. Authorizations.

1. The operations officers shall have the right to enter all areas of the commercial cannabis operation from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and all laws of the city and state.

2. Recordings made by security cameras required pursuant to this chapter shall be made available to the operations officers upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials.

E. Records.

1. Commercial cannabis operations shall maintain on site the following records either in paper or electronic form:
a. The full name, address, and telephone numbers of the owner and lessee of the property.
b. The name, date of birth, address, and telephone number of each employee of the commercial cannabis operation; the date each was hired; and the nature of each employee’s participation in the commercial cannabis operation. c. Copies of all required state licenses.
d. An inventory record documenting the dates and amounts of cannabis and cannabis products received at the site, the daily amounts of cannabis and cannabis products on the site, and the daily amounts of cannabis and cannabis products leaving the site for any reason, including, but not limited to, being sold, delivered, or distributed. e. A written accounting of all expenditures, costs, revenues and profits of the commercial cannabis operation, including, but not limited to, cash and in-kind transactions. f. A copy of all insurance policies related to the operation of the commercial cannabis operation.
g. A copy of the commercial cannabis operation’s most recent year’s financial statement and tax return.
h. Proof of a valid and current permit issued by the city in accordance with this chapter, and the equivalent state of California license to operate the commercial cannabis operation. Every commercial cannabis operation shall display at all times during business hours the city permit issued pursuant to the provisions of this chapter, and the equivalent state license, in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

2. All records required to be maintained by the commercial cannabis operation must be maintained for no less than seven years and are subject to immediate inspection (consistent with requirements pertaining to qualified patient confidentiality pursuant to applicable state and federal

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law) upon a lawful written request by an operation officer.

3. A commercial cannabis operation shall report any loss, damage, or destruction of these records to the operation officers within twenty-four hours of the loss, damage, or destruction.

F. Site Management.

1. Commercial cannabis operations shall not result in a nuisance or adversely affect the health, welfare, or safety of nearby persons by creating dust, glare, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts, or be hazardous due to use or storage of materials, processes, products or waste. The permittee shall promptly and diligently both prevent as well as eliminate conditions on the site of the commercial cannabis operation that constitute a nuisance.

2. A permittee shall maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash.

3. The commercial cannabis operation permittee shall properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations.

4. Notwithstanding any provisions of this Code to the contrary, the commercial cannabis operation permittee shall remove all graffiti from the site and parking lots under the control of the commercial cannabis operation permittee within seventy-two hours of its application.

G. State Board of Equalization Seller’s Permit Required.

1. Commercial cannabis operations must obtain a seller’s permit from the State Board of Equalization as applicable.

2. Such permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

H. Employees.

1. All employees must submit to fingerprinting and criminal background checks by the city.
a. No employee convicted within the last ten years of a felony substantially related to the qualifications, functions or duties of an employee of a commercial cannabis operation (such as a felony conviction for distribution of controlled substances, money laundering, racketeering, etc.) shall be employed by a commercial cannabis operation, unless such employee has obtained a certificate of rehabilitation (expungement of felony record) under state law or under a similar federal statute or state law where the expungement was granted.
b. At the request of the commercial cannabis operation, the city manager and police chief shall determine the applicability of this section to a potential employee within

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a reasonable period of time after a written request has been made to the city manager and police chief for such determination.

2. All employees must possess a valid government issued (or equivalent) form of identification containing an identifying photograph of the employee, the name of the employee, the date of birth of the employee, and the residential address of the employee. Color copies of such identification shall be maintained at the location of the commercial cannabis operation. A valid state driver’s license will satisfy this requirement.

I. Cannabis Transfer Between Permitted Operations Only. A commercial cannabis operation shall not transfer cannabis or cannabis products to or from another commercial cannabis operation, unless both operations are in possession of all required state and local licenses and permits.

J. Commercial Cannabis Operation Signage.

1. Signs on the premises shall not obstruct the entrance or the video surveillance system. The size, location, and design of any signage must conform to the sign provisions in this Code.

2. Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with the appropriate sign requirements within the applicable zoning district.

K. Prohibited Personal Activities.

1. Cannabis Use. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within twenty feet of, the site of the commercial cannabis operation.

2. Alcohol Use. No person shall possess, consume, or store any alcoholic beverage on the site of the commercial cannabis operation.

L. No Minors. No minor shall be an employee of, or participate in, a commercial cannabis operation in any capacity, including, but not limited to, as a manager, employee, contractor, adviser, or volunteer.

M. Exterior Lighting. The exterior of the premises upon which the commercial cannabis operation is operated shall be equipped with and, at all times between sunset and sunrise, shall remain illuminated with fixtures of sufficient intensity and number to illuminate every portion of the property with an illumination level of not less than one foot-candle as measured at the ground level, including, but not limited to, landscaped areas, parking lots, driveways, walkways, entry areas, and refuse storage areas.

N. Building Design. A permittee must maintain the design of the buildings on the site in accordance with the plans that are approved by the city pursuant to this chapter and otherwise approved by the city. No permittee shall modify the buildings on the site contrary to the approved plans, without the approval of the city manager.

O. Nuisance. A permittee shall take all reasonable steps to discourage and correct conditions

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that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if related to the members of the subject commercial cannabis operation.

1. “Reasonable steps” shall include immediately calling the police department upon observation of the activity, and requesting that those engaging in activities that constitute a nuisance or are otherwise illegal to cease those activities, unless personal safety would be threatened in making the request.

2. “Nuisance” includes, but is not limited to, disturbances of peace, open public consumption of cannabis, alcohol or controlled substances, excessive pedestrian or vehicular traffic, including the formation of any pedestrian lines outside the building, illegal drug activity, harassment of those passing by, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or law enforcement detentions and arrests.

P. Upon and after receiving possession of a commercial cannabis operation permit as provided for in this chapter, a permittee shall:

1. Maintain continuing compliance with criminal background check requirements of this chapter by ensuring that:
a. Upon the hiring, association or retention of an employee by the commercial cannabis operation, the requirements of subsection H are immediately met for such employee by provision of appropriate documentation to the city manager; and b. the city manager and police chief are immediately informed in writing of any felony conviction as described in subsection H for any current employee.

2. Maintain continuing compliance with all applicable insurance requirements, including, but not limited to, those imposed by the city and this chapter.

Q. Workforce Plan. A permittee shall implement a workforce plan that includes at least the following provisions:

1. Commitment for thirty percent of employees to be local hires; this local hiring requirement is satisfied when a permittee shows that it has either hired or made a good faith effort to hire bona fide residents of the city or persons that may establish residency after initial employment with the permittee;

2. Commitment to offer apprenticeships and/or compensation for continuing education in the field of commercial cannabis operations; and

3. Paying a living wage to employees. “Living wage” means compensation equivalent to twenty dollars per hour inclusive of benefits but excluding tips.

R. Exemption. The regulations contained in this chapter shall not apply to a commercial cannabis operation engaged in the following uses, as long as such use complies strictly with

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applicable law, including this Code, regulating such use and the location of such use, including, but not limited to, Section 11362.5 of the State Health and Safety Code and Section 11362.71 et seq., of the State Health and Safety Code: A clinic licensed pursuant to Chapter 1 of Division 2 of the State Health and Safety Code; a health care facility licensed pursuant to Chapter 2 of Division 2 of the State Health and Safety Code; a residential care facility for persons with chronic lifethreatening illness licensed pursuant to Chapter 3.01 of Division 2 of the State Health and Safety Code; a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the State Health and Safety Code; and a residential hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the State Health and Safety Code.

5.26.120 Retailer operating standards and restrictions.

A retailer commercial cannabis operation shall operate in conformance with both Section 5.26.110, as well as the following minimum standards, and such standards shall be deemed to be part of the conditions of the commercial cannabis operation permit for a retailer commercial cannabis operation to ensure that its operation is in compliance with state law and this Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the city council, or by the city manager pursuant to Section 5.26.140.

A. City Permit and State License. No person shall engage in retailer commercial cannabis operations without both a current and valid commercial cannabis operation permit and a current and valid equivalent state license as provided for under Section 26200 of the State Business and Professions Code, and as may be amended. Retailer (medical-only) commercial cannabis operations shall only sell, dispense, or provide medical cannabis or medical cannabis products to a qualified patient with a written physician’s recommendation, a person with an identification card, or a primary caregiver with written documentation attesting to lawful status as a primary caregiver.

B. State Standards. All state requirements and regulations that govern retailer commercial cannabis operations, including, but not limited to, the regulations promulgated by the State Department of Cannabis Control, and as may be amended, shall apply as minimum requirements and regulations and requirements for retailer commercial cannabis operations within the city, in addition to the requirements and regulations of this chapter and this Code.

C. Location and Design Requirements. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business and Professions Code, retailer commercial cannabis operations in the city shall be subject to the following location and design requirements:

1. Retailer commercial cannabis operations shall be a permitted use subject to this chapter on property: (1) located more than one thousand feet any retailer commercial cannabis operation permitted under this chapter, alcohol or drug treatment facility, day care center, religious institution, school, or youth center; (2) located more than one thousand feet from the city’s jurisdictional boundary or any park or residentially zoned property; and (3) zoned C (commercial

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zone) or C-M (commercial-manufacturing zone) including any overlay zone districts covering the C (commercial zone) or C-M (commercial-manufacturing zone).

2. The distances specified in subsection C shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures. The one thousand foot distance specified in subsection C may be reduced to as little as nine hundred feet by administrative regulation pursuant to Section 5.26.140 if necessary to allow for issuance of the number of commercial cannabis operation permits provided by this chapter.

3. Each retailer commercial cannabis operation shall:
a. Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;
b. Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and c. Provide and maintain a neighborhood compatibility plan so the city manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.

D. Customers.

1. Prior to dispensing medical cannabis or medical cannabis products to a qualified patient, a retailer commercial cannabis operation shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen years and obtain verification from the recommending physician that the person requesting medical cannabis or medical cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation, or identification card, as described in Section 11362.71 et seq., of the State Health and Safety Code, as may be amended from time to time, on site for period of not less than seven years.

2. Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailer (medical/adult-use) commercial cannabis operation shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one years.

E. Opaque Packaging. All cannabis or cannabis products sold to a customer shall be prohibited from leaving the site unless placed in opaque packaging which conceals the nature of the product from human vision.

F. Dispensing and Storage Areas. Entrance to the retailer sales floor and any storage areas shall be locked at all times, and under the control of employees.

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G. Interior Lighting. The premises within which the commercial cannabis operation is operated shall be equipped with and, at all times during which is open to the public, shall remain illuminated with overhead lighting fixtures of sufficient intensity to illuminate every place to which members of the public or portions thereof are permitted access with an illumination of not less than two foot-candles as measured at the floor level.

H. Signs. A retailer commercial cannabis operation shall notify customers (verbally or by written agreement) and by posting a notice or notices conspicuously at least fifteen-point type within permitted premises that state as follows:

1. “The sale or diversion of cannabis or cannabis products without a license issued by persons entering the site, the city of South El Monte is a violation of state law and the South El Monte Municipal Code.”

2. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest.”

3. “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance.”

4. “WARNING: The use of cannabis or cannabis products may impair a person’s ability to drive a motor vehicle or operate heavy machinery.”

5. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabisderived products will expose you and those in your immediate vicinity to cannabis smoke.

Cannabis smoke is known by the State of California to cause cancer and reproductive harm.” I. No Recommendations On Site. A retailer commercial cannabis operation shall not have a physician or any person licensed to recommend medical cannabis for medical use at the location of the retailer commercial cannabis operation to provide a recommendation or physician’s recommendation, for the use of medical cannabis.

J. Sanitation. A permittee shall establish and implement written procedures that maintain the highest industry standards of sanitation and cleanliness for the operation so as to ensure cannabis and cannabis products sold to the public are free of harmful contaminants.

K. Training. A permittee shall establish and implement written procedures that provide for the highest industry standards of training for employees.

L. Prohibited Activities. No cannabis cultivation, testing or manufacturing shall occur within the premises of the retailer operation.

M. No Alcohol. Retailer commercial cannabis operations shall not hold or maintain a license from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages.

N. No Lounge or Café. Retailer commercial cannabis operations shall not operate as a lounge,

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café or restaurant serving food or drinks for consumption on site. There shall be no seating area, tables, couches, or chairs for the gathering or congregating of members.

O. Age Restriction. Minors, except qualified patients or primary caregivers over the age of eighteen years old as verified customers, are prohibited from entering the location of the retailer cannabis operation.

P. Public Information. The permittee shall make available to customers a list of the rules and regulations governing medical cannabis use and consumption within the city and recommendations on sensible medical cannabis etiquette.

5.26.125 Delivery operating standards and restrictions.

A. Delivery shall comply with state law at all times.

B. Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.

C. A commercial cannabis operation engaged in delivery shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the deliveryonly commercial cannabis operation engaged in delivery that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the commercial cannabis operation engaged in delivery and customer:

1. The identity of the individual dispensing cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery;

2. The identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery;

3. The type and quantity of cannabis or cannabis products dispensed and received;

4. The gross receipts charged by the commercial cannabis operation engaged in delivery and received by the individual dispensing cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery for the cannabis or cannabis products dispensed and received; and

5. The location or address where the sale or retail sale took place or closed.

D. A commercial cannabis operation engaged in delivery shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid state driver’s license issued to the driver of any such vehicle on behalf of the commercial cannabis operation engaged in delivery to the city manager.

E. Individuals making deliveries of cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the

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city requesting documentation.

F. During delivery, a copy of the commercial cannabis operation engaged in delivery’s commercial cannabis operation permit and state license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the city requesting documentation.

G. A commercial cannabis operation engaged in delivery shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is: (1) insured at or above the legal requirement in the state; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a commercial cannabis operation engaged in delivery.

H. A commercial cannabis operation engaged in delivery shall facilitate deliveries with a technology platform owned by or licensed to the commercial cannabis operation engaged in delivery that uses global positioning system technology to track, and database technology to record and store the following information:

1. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery departed its premises.

2. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery completed delivery to the customer.

3. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery returned to its premises.

4. The route the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery traveled between departing and returning to its premises to conduct delivery.

5. For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the commercial cannabis operation engaged in delivery.

6. For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the commercial cannabis operation engaged in delivery.

7. For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery.

8. For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.

9. For each individual delivery transaction, the gross receipts charged by the commercial cannabis operation engaged in delivery and received by the individual conducting deliveries on behalf of the commercial cannabis operation engaged in delivery for the cannabis or

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cannabis products dispensed and received.

I. The individual making deliveries on behalf of the commercial cannabis operation engaged in delivery shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery and: (1) for medical cannabis or medical cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Section 11362.71 et seq., of the State Health and Safety Code, as may be amended from time to time, on site for period of not less than seven years; or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one years.

5.26.130 Community benefit agreement.

The applicant may propose entering into a community benefit agreement in an amount and by terms set by city council resolution with the city setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare of the city and its residents and visitors.

5.26.140 Administration.

A. Consistently with stated requirements of this chapter (and in particular not to repeal or constructively repeal this chapter), in addition to any regulations adopted under state law, the city manager is authorized to establish any additional rules, regulations, and standards governing the issuance or denial of commercial cannabis operation permits, the ongoing operation of commercial cannabis operations and the city’s oversight thereof, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

B. Such regulations shall be approved by resolution of the city council published on the city’s website.

C. Regulations promulgated, by the city manager, shall become effective upon date of publication on the city’s website or posting at the location for the city council’s meeting agendas.

Commercial cannabis operations shall be required to comply with all state and local laws and regulations, including, but not limited to, any rules, regulations or standards adopted by the city manager.

5.26.150 Fees.

An application fee set by resolution of the city council shall be required for formal processing of every application made under this chapter. The city council is further authorized to pass resolutions or ordinances to recover any and all fees and costs incurred by the administration and

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implementation of this chapter through an appropriate fee recovery mechanism to be imposed upon commercial cannabis operations.

5.26.160 Suspension and revocation.

A. The city manager is authorized to suspend and/or revoke a commercial cannabis operation permit issued pursuant to this chapter upon the determination through written findings of a failure to materially comply with any provision of this chapter, any commercial cannabis operation permit condition, or any agreement or covenant required or made pursuant to this chapter.

B. Notwithstanding subsection A, the city manager may suspend or revoke a commercial cannabis operation permit if any of the following occur:

1. The equivalent state license has been suspended or revoked by the state; or

2. Operations cease for more than one hundred eighty consecutive or cumulative days in any one-year period; or

3. Ownership is changed or transferred without complying with Section 5.26.100; or

4. The commercial cannabis operation fails to maintain required security camera recordings; or

5. The commercial cannabis operation fails to allow inspection of the security recordings, the activity logs, the records, or of the site by operations officers pursuant to this chapter.

6. The commercial cannabis operation fails to timely make the corrections required pursuant to Section 5.26.090.

7. The commercial cannabis operation fails to pay any fees required by this chapter.

C. Conditions (if any) of suspension or revocation are at the reasonable discretion of the city manager and may include, but are not limited to, a prohibition on all owners, managers and employees of the suspended or revoked commercial cannabis operation from operating within the city for a period of time set forth in writing and/or a requirement (when operations may resume, if at all, pursuant to the city manager’s reasonable determination) for the holder of the suspended or revoked commercial cannabis operation permit to resubmit an application for a commercial cannabis operation permit pursuant to the requirements of this chapter.

5.26.170 Appeals.

Any decision regarding the city manager’s suspension or revocation of a commercial cannabis operation permit pursuant to Section 5.26.160 may be appealed to the city council by a permittee or interested party as follows:

A. If the appellant wishes to appeal a decision to the city council, the appellant must file a

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written appeal with the city clerk within ten calendar days of the decision. The written appeal shall specify the person making the appeal, the decision appealed from, state the reasons for the appeal, and include any evidence in support of the appeal which the applicant seeks to be considered by the city council.

B. Notice of the time and place of an appeal hearing shall be providing to the appellant within thirty days of receipt by the city clerk of the written appeal.

C. The appeal hearing shall be held within sixty days of the filing of the written appeal with the city clerk, unless the sixty-day time limit is waived by the appellant, or unless the city council continues the appeal hearing date for good cause and upon written notification to the appellant.

D. The city council shall review the facts of the matter, written documents submitted for review, the basis for making the decision which is under appeal, and then determine whether the appealed decision should be reversed or affirmed. The determination made shall be in writing, shall set forth the reasons for the determination, and shall be final.

E. The provisions of Section 1094.6 of the Code of Civil Procedure sets forth the procedure for judicial review of any final determination. Parties seeking such judicial review shall file such action within ninety days of a determination being made final.

5.26.180 Violations and penalties—Public nuisance.

A. Any material violation of the provisions of this chapter is punishable as a misdemeanor or an infraction, at the discretion of the city attorney, pursuant to Chapters 1.14 and 1.16 of this Code, except for as preempted by state law and material any violation of the provisions of this chapter is subject to administrative citation, at the reasonable discretion of the city, pursuant to Chapters 1.14 and 1.16 of this Code.

B. Public Nuisance Abatement.

1. Any commercial cannabis operation that is conducted in material violation of any provision of this chapter is hereby declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation, in accordance with the procedures set forth in Chapter

8.36 of this Code.

2. All costs to abate such public nuisance, including attorneys’ fees and court costs, shall be paid by the person causing the nuisance, including the commercial cannabis operation and the property owner where the nuisance is occurring.

C. The remedies described in this section are not mutually exclusive. Pursuit of any one remedy shall not preclude city from availing itself of any or all available administrative, civil, or criminal remedies, at law or equity.

D. Any material violation of the provisions of this chapter shall constitute a separate offense for each and every day during which such violation is committed or continued.

5.26.190 Service of notices.

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Any notice required by this chapter is deemed issued and served upon the earliest date that either:
the notice is deposited in the United States mail, postage pre-paid, addressed to the most recent mailing address provided to the city pursuant to the requirements of this chapter; or, the date upon which personal service of the notice is provided to a responsible party.

5.26.200 Prohibitions.

A. Any commercial cannabis operation in violation of this chapter, or any other applicable state law is expressly prohibited.

B. It is unlawful for any commercial cannabis operation in the city, or any agent, employee or representative of such commercial cannabis operation, to permit any breach of peace or any disturbance of public order or decorum by any tumultuous, riotous or disorderly conduct at the site of the commercial cannabis operation.

5.26.210 Nonconforming use.

No use which purports to have engaged in commercial cannabis operations of any nature prior to the enactment of this chapter shall be deemed to have been a legally established use under the provisions of this Code, or any other city ordinance, rule or regulation, and such use shall not be entitled to claim legal nonconforming status.

5.26.220 Exceptions.

A. To the extent that the following activities are permitted by state law, nothing in this chapter shall prohibit a person twenty-one years of age or older from:

1. Possessing, processing, purchasing, transporting, obtaining or giving away to persons twenty-one years of age or older, without compensation whatsoever, not more than twentyeight and one-half grams of cannabis not in the form of concentrated cannabis;

2. Possessing, processing, purchasing, transporting, obtaining or giving away to persons twenty-one years of age or older, without compensation whatsoever, up to eight grams of cannabis in the form of concentrated cannabis;

3. Possessing, transporting, purchasing, obtaining, using, manufacturing, or giving away cannabis accessories to persons twenty-one years of age or older without compensation whatsoever; or

4. Engaging in the indoor cultivation of six or fewer live cannabis plants within a single private residence or inside an accessory structure located upon the grounds of a private residence that is fully enclosed and secured, to the extent such cultivation is authorized by Sections 11362.1 and 11362.2, of the State Health and Safety Code, as may be amended from time to time.

B. This chapter shall also not prohibit any commercial cannabis operations that the city is required by law to permit within its jurisdiction pursuant to state law.

5.26.230 Operative date.

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This chapter shall be operative ten days after the date that the city council declares that a majority of the city’s voters voting at the November 8, 2022, election have voted in favor of this chapter at such election.

5.26.240 Severability.

If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this chapter is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter.

The people of the city of South El Monte hereby declare that they would have adopted this chapter and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.

5.26.250 City council authority to amend.

The city council has the right and authority to amend this chapter, with the exception of Section

5.26.060 (which may only be amended: (i) if ordered to do so by a court of competent jurisdiction as a judicial remedy; or (ii) by a vote of the people of the city), to further its purposes and intent (including, but not limited to, amendment for more efficient administration as determined by the city council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution, pursuant to Elections Code Section 9217.

5.26.260 City councilmember conflicts of interest.

Notwithstanding any other provision of this chapter, prior to participating in any decision relating to a cannabis business, each city councilmember shall do all of the following A. Disclose on the record any financial interest in the cannabis business that is subject to the decision.

B. Disclose on the record any campaign contributions and benefits or gifts received from the cannabis business that is subject to the decision.

C. Disclose on the record any ex parte communications that the city councilmember may have had with a cannabis business that is the subject of the decision.

D. Each city councilmember shall warrant and represent, on the record and in a form approved by the city council, that they have complied with these requirements and all applicable law.

If it is later determined that a city councilmember has not complied with the above requirements or if it is determined that a city councilmember has violated applicable law, then the city councilmember is disqualified from all decisions relating to the cannabis business subject to the decision. The requirements of this Section 5.26.260 shall be in addition to any applicable law, including, without limitation, the California Political Reform Act and the related regulations of the Fair Political Practices Commission.

ORDINANCE NO. 1260
AN ORDINANCE (" ORDINANCE") OF THE PEOPLE OF THE CITY OF SOUTH EL MONTE, CALIFORNIA, AMENDING CHAPTER 5. 26 ( CANNABIS ACTIVITIES) OF TITLE 5 OF THE SOUTH EL MONTE MUNICIPAL CODE TO

ONLY PERMIT CANNABIS COMMERCIAL OPERATIONS THAT INVOLVE THE ACTIVITY OF RETAILER ( MEDICAL/ ADULT USE); REPEALING CHAPTER 17. 31 OF TITLE 17 OF THE SOUTH EL MONTE MUNICIPAL CODE, RELATING TO CANNABIS ACTIVITY PROHIBITIONS; AMENDING SOUTH EL MONTE MUNICIPAL CODE SECTIONS 17. 14. 030, 17. 16. 030, AND

17. 18. 030( 0), RELATING TO PERMITTED USES IN THE COMMERCIAL ( C),

COMMERCIAL - MANUFACTURING ( C- M), AND MANUFACTURING ( M) ZONES; ADDING SECTION 9. 08. 045 TO CHAPTER 9. 08 OF TITLE 9 OF THE SOUTH EL MONTE MUNICIPAL CODE; AMENDING SOUTH EL MONTE
MUNICIPAL CODE SECTION 5. 04. 045, RELATING TO BUSINESS LICENSE REQUIREMENTS FOR COMMERCIAL CANNABIS RETAILERS; AND

APPROVING A GENERAL CANNABIS BUSINESS TAX BY ADDING
CHAPTER 3. 40 ( CANNABIS BUSINESS TAX) TO TITLE 3 OF THE SOUTH EL

MONTE MUNICIPAL CODE
WHEREAS, in 1996 State of California (" State") voters approved Proposition 215, the Compassionate Use Act of 1996 (" CUA"), codified as Section 11362. 5 ofthe State Health and Safety Code, to exempt certain patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis for medical purposes; and WHEREAS, in 2003 the State legislature enacted Senate Bill 420, the Medical Marijuana Program Act ("MMPA"), codified as Sections 11362. 7, et seq., of the State Health and Safety Code, and as later amended, to clarify the scope of the CUA relating to the possession and cultivation of cannabis for medical purpose, and to authorize local governing bodies to adopt and enforce laws consistent with its provisions; and
WHEREAS, in October 2015, the State legislature adopted AB 266, AB 243, and SB 643, collectively referred to as the Medical Cannabis Regulation and Safety Act (" MCRSA"), which established a comprehensive regulatory and licensing scheme for commercial medical cannabis operations; and
WHEREAS, at the November 8, 2016 general election, the Control, Regulate and Tax Adult Use of Marijuana Act (" AUMA") was approved by State voters as Proposition 64, which established a comprehensive regulatory and licensing scheme for commercial adult -use ( recreational) cannabis operations, and which also legalized limited personal recreational cannabis use, possession, and cultivation; and
WHEREAS, on June 27, 2017 Governor Brown signed Senate Bill 94, the Medicinal and Adult Use Cannabis Regulation and Safety Act (" MAUCRSA"), which merged the regulatory regimes of MCRSA and AUMA; and
WHEREAS, under MAUCRSA the State began issuing licenses in 2018 for both medical and adult -use ( recreational) cannabis businesses in twenty ( 20) different categories, which are found 01257. 0002/ 840389. 1 Ordinance No. 1260

ATTACHMENT C

in Section 26050 of the State Business & Professions Code, to include licensing categories cannabis cultivators, manufacturers, testers, retailers, distributors, and microbusinesses; and WHEREAS, the MAUCRSA, through Section 26200( a)( 1) of the State Business and Professions Code, provides local jurisdictions the right to completely prohibit the establishment or operation of any or all of the twenty ( 20) different categories of medical and recreational business operations to be licensed by the State under Section 26050 of the State Business and Professions Code; and
WHEREAS, the MAUCRSA, through Section 26055( d) of the State Business & and Professions Code, provides that a State commercial cannabis license may not be issued to an applicant whose operations would violate the provisions of any local ordinance or regulation; and WHEREAS, the MAUCRSA, through Section 26200( a)( 1) of the State Business & Professions Code, provides local jurisdictions the right to adopt and enforce local ordinances to regulate any or all of the twenty ( 20) different categories of medical and adult -use business operations to be licensed by the State under Section 26050 of the State Business and Professions Code, including, but not limited to, local zoning and land use requirements; and WHEREAS, the MAUCRSA, Section 26201 of the State Business and Professions Code, provides that any standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections established by the state for the twenty ( 20) different categories of medical and adult -use business operations to be licensed by the State under Section 26050 of the State Business and Professions Code shall be the minimum standards, and a local jurisdiction may establish additional standards, requirements, and regulations; and
WHEREAS, pursuant to the above -described express statutory authority and its police power, the City of South El Monte ( the " City") now desires to amend Chapter 5. 26 ( Cannabis Activities) of Title 5 ofthe City Municipal Code to permit certain commercial adult -use cannabis uses ( retail (medical / adult -use / non -medical) sales); and WHEREAS, pursuant to the above -described express statutory authority and its police power, the City now desires to amend Chapter 5. 26 ( Cannabis Activities) of Title 5 of the City Municipal Code so as to expressly authorize the City Manager to issue administrative rules and regulations governing commercial cannabis uses within the City; and WHEREAS, as part of this Ordinance, the City desires to impose a tax upon commercial cannabis operations, to be known as the " Cannabis Business Tax," pursuant to voter approval, so that every person engaged in conducting a commercial cannabis operation shall pay a cannabis business tax, regardless of whether such operation has a valid permit pursuant to the South El Monte Municipal Code; and
WHEREAS, pursuant to subdivision ( b) of Section 2 of Article XIIIC of the California Constitution and Section 53720 et seq. of the Government Code, the City Council is authorized to impose a general tax upon submission of such general tax to the voters ofthe City and approval by a 01257. 0002/ 840389. 1 Ordinance No. 1260

majority of the voters voting on the issue, at an election consolidated with a regularly scheduled general election for members of the City Council; and
WHEREAS, presently the City has no specific local tax on cannabis commercial operations; and
WHEREAS, MAUCRSA and AUMA do not preempt local taxation ofcommercial cannabis operations; and
WHEREAS, pursuant to Government Code Section 9222 and Government Code Sections 53720 et seq., on August 2, 2022, the City Council approved this Ordinance for submittal to the voters ofthe City, and called a General Municipal Election for that purpose to be held on November 8, 2022, and consolidated with the Statewide General Election that will be held on the same date; and
WHEREAS, although the City does not desire nor intend by this Ordinance to allow any commercial cannabis uses in the City other than the medical cannabis retailers that may be permitted pursuant to Chapter 5. 26 of the City' s Municipal Code, the City does desire to seek voter approval for a broad cannabis tax that is applicable to permitted commercial cannabis uses, any unlawful or unpermitted commercial cannabis uses which may be in operation at any time, and any potential commercial cannabis uses that may be allowed in the fixture; and WHEREAS, ifthis Ordinance is approved by a majority of voters, then this Ordinance will, among other amendments, amend the South El Monte Municipal Code to add a new Chapter 3. 40 Cannabis Business Tax") to Title 3 ( Revenue and Finance) of the South El Monte Municipal Code to enact the Cannabis Business Tax, which includes a " commercial cannabis tax" and a " commercial cannabis cultivation tax," as such terms are used in said Chapter 3. 40; and WHEREAS, the City desires and intends that revenue generated from said cannabis taxes can be spent for unrestricted general revenue purposes; and WHEREAS, the City finds that this Ordinance is not subject to the California Environmental Quality Act (" CEQA") pursuant to both the exemption provided by Section 26055( h) of the State Business and Professions Code as well as Sections 15060( c)( 3) and 15061( b)( 3) of the CEQA Guidelines; and
WHEREAS, nothing in this Ordinance shall be construed to allow any person to engage in conduct that endangers others or causes a public nuisance;

NOW, THEREFORE, THE PEOPLE OF THE CITY OF SOUTH EL MONTE, CALIFORNIA FIND AND ORDAIN AS FOLLOWS:

SECTION 1. FINDINGS. The people of the City of South El Monte hereby make the following findings:

A. The recitals set forth above are all true and correct and are incorporated herein as findings of fact.

B. The regulation of commercial cannabis activities established by this Ordinance amendment are to protect and promote the public health, safety and welfare, and are enacted pursuant to the authority granted to the City by State law. 01257. 0002/ 840389. 1 Ordinance No. 1260

C. Tax revenue from commercial cannabis operations can provide funds for additional City services to promote and protect the general health and welfare of the citizens of the City.

SECTION 2. NEW CANNABIS REGULATIONS. Chapter 5. 26 ( Cannabis Activities) of Title 5 Business Taxes, Licenses, and Regulations) of the City Municipal Code is hereby retitled and amended in its entirety to read as follows:

CHAPTER 5. 26 - COMMERCIAL CANNABIS OPERATIONS REGULATORY

PROGRAM
Sec. 5. 26. 010 - Purpose and intent.

Sec. 5. 26. 020 - Commercial cannabis operation prohibited without City Commercial Cannabis Operation Permit.

Sec. 5. 26. 030 - Definitions.

Sec. 5. 26. 040 - Prohibited commercial cannabis operations.

Sec. 5. 26. 050 — Permitted commercial cannabis operations.

Sec. 5. 26. 060 - Maximum number of Commercial Cannabis Operation Permits.

Sec. 5. 26. 070 - Commercial Cannabis Operation Permit application procedure.

Sec. 5. 26. 080 - Limitations on the City' s liability.

Sec. 5. 26. 090 - Commercial Cannabis Operation Permit term.

Sec. 5. 26. 100 - Change in location; transfer; updated application information.

Sec. 5, 26. 110 - General operating standards and restrictions.

Sec. 5. 26. 120 - Retailer operating standards and restrictions.

Sec. 5. 26. 120. 5 - Delivery operating standards and restrictions.

Sec. 5. 26. 130 — Community benefits agreement.

Sec. 5. 26. 140 - Administration.

Sec. 5. 26. 150 - Fees.

Sec. 5. 26. 160 - Suspension and revocation.

Sec. 5. 26. 170 — Appeals.

Sec. 5. 26. 180 — Violations and penalties; public nuisance.

Sec. 5. 26. 190 - Service of notices.

Sec. 5. 26. 200 - Prohibitions.

Sec. 5. 26. 210 - Nonconforming use.

Sec. 5. 26. 220 — Exceptions.

Sec. 5. 26. 230 — Operative date.

Sec. 5. 26. 240 -- Severability.

Sec. 5. 26. 250 — City Council Authority to Amend.

Sec. 5. 26. 260 — City Councilmember Conflicts of Interest. 01257.0002/ 840389. 1 Ordinance No. 1260

Sec. 5. 26. 010 - Purpose and intent.

A. The purpose ofthis chapter is to establish a comprehensive set ofregulations with an attendant regulatory permit applicable to the operation of certain types of commercial cannabis operations, while simultaneously establishing an express prohibition on certain other types of commercial cannabis operations.

B. The regulations for, and prohibitions on, specific types of commercial cannabis operations are enacted to preserve the public health, safety, and welfare of the residents and visitors ofthe City , consistent with the State' s Compassionate Use Act of 1996, Medical Marijuana Program Act of 2003, Adult Use of Marijuana Act of 2016 MAUCRSA, and all applicable State laws governing commercial cannabis operations.

C. The issuance of a Commercial Cannabis Operation Permit shall constitute a revocable privilege and shall not create or establish any vested rights for the development or use of a property.

D. This chapter and any administrative regulations adopted pursuant to this chapter shall be known as the " Commercial Cannabis Operations Regulatory Program" or the Program".

Sec. 5. 26. 020 - Commercial cannabis operation prohibited without City Commercial Cannabis Operation Permit.

It shall be unlawful to own, establish, operate, use, or permit the establishment or activity of a commercial cannabis operation, or to participate in commercial cannabis operations as an employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in this chapter and pursuant to both a current and valid City Commercial Cannabis Operation Permit, as well as the equivalent State license for such commercial cannabis operation as provided for by Section 26050 of the State Business & Professions Code, and as amended from time to time. The prohibition contained in this section shall include renting, leasing, or otherwise permitting a commercial cannabis operation to occupy or use a location, vehicle, or other mode oftransportation.

See. 5. 26. 030 - Definitions.

As used in this chapter, the following words and phrases shall have the following meanings. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

A. " Adult use" ( i.e., " recreational" or " non -medical") refers to activity involving cannabis or cannabis products, which is restricted to adults 21 years of age and older and who do not possess a physician' s recommendation, in contrast to an activity involving medical cannabis or medical cannabis products.

B. " Alcohol or drug treatment facility" shall have the same definition as " alcoholism or drug abuse recovery or treatment facility" as defined in Section 11834. 02( a) of the State Health and Safety Code, which currently defines the term as " any premises, place, or building that provides residential nonmedical services to adults who are 01257. 0002/ 840389. 1 Ordinance No. 1260

recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services." Further, " alcohol or drug treatment facility" shall also include such a facility that provides treatment for minors to the extent permitted by law.

C. " Applicant" means a person who files an application for a Commercial Cannabis Operation Permit under this chapter. ( and shall not include the owners or the managers of the applicant).

D. " Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.

Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. " Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks ( except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

E. " Cannabis concentrate" means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes ofthis division.

A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

F. " Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

G. " City" means the City of South El Monte, State ofCalifornia.

H. " City Attorney" means the City of South El Monte City Attorney, and includes his/ her designee( s).

1. " City Council" means the City Council ofthe City of City of South El Monte.

J. " City Manager" means the City ofSouth El Monte City Manager, and includes his/ her designee( s).

K. " Code" means the City of South El Monte Municipal Code, and may be amended.

L. " Commercial cannabis operation" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale ( including retail and wholesale, and including medical -only and adult -use sales) of cannabis and cannabis products; except, as applicable, the activities provided in Section 5. 26. 220( A) or as preempted by State law.

M. " Commercial Cannabis Operation Permit" shall mean a City permit issued pursuant to the procedures provided for in this chapter allows the permit holder to operate a specific type of commercial cannabis operation in the City subject to the requirements ofthis chapter, State law, and the specific permit.
01257, 0002/ 840389. 1 Ordinance No. 1260

N. " County" means the County of Los Angeles, State of California.

O. " Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

P. " Customer" means a natural person twenty- one ( 21) years of age or over or a natural person eighteen ( 18) years of age that is a qualified patient or primary caregiver.

Q. " Day care center" means, a facility other than a family day care home, infant centers, toddler, preschool, and school age children licensed by the State Department ofSocial Services pursuant to Section 1596. 951 of the State Health and Safety Code. Pursuant to the authority delegated by the State to the City under Section 26054( b) of the State Business and Professions Code, this definition of "day care center" under this chapter shall override the definition of "day care center" in MAUCRSA at Section 26001 of the State Business and Professions Code.

R. " Delivery" means the commercial transfer of cannabis or cannabis products to a customer, and includes the use of any technology platform owned and controlled by the same person making such use.

S. " Director" means the City of South El Monte Community Development Director, and includes his/ her designee( s).

T. " Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities licensed for and/ or engaged in commercial cannabis operations under State law.

U. " Distributor" means a person engaged in distribution.

V. " Edible" means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 ( commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 ofthe State Health and Safety Code, or a drug, as defined by Section 109925 of the State Health and Safety Code.

W. " Employee" means any person ( whether paid or unpaid) who provides regular labor or regular services for a commercial cannabis operation, including, but not limited to, at the location of a commercial cannabis operation. The term " employee" includes managers and owners as used in this chapter.

X. " Extraction" means the process of obtaining cannabis concentrates from cannabis plants, including but not limited to through the use of solvents like butane, alcohol or carbon dioxide.

Y. " Finance Director" means the City of South El Monte Finance Director, and includes his/ her designee( s).

Z. " Fire Chief' means the City of Los Angeles County Fire Department Chief, and includes his/ her designee( s).

AA. " Gross receipts" means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount ( including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account ofthe cost of the property sold, the cost of materials used, Iabor, or service costs, interest paid or payable, losses, or any other expense 01257. 0002/ 840389. 1 Ordinance No. 1260

whatsoever. However, the following shall be excluded from gross receipts:
l . Cash discounts where allowed and taken on sales;

2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser

3. Such part ofthe sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

4. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer' s business

5. Cash value of sales, trades, or transactions between departments or units of the same business

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and

8. Any proceeds resulting from a transfer or change of ownership or control in the business.

BB. " Identification card" has the same definition as provided for in Section 11362. 7( g) of the State Health and Safety Code , and as may be amended, defined as " a document issued by the [ State Department of Health Services] that identifies a person authorized to engage in the medical use of cannabis and the person' s designated primary caregiver, if any."
CC. " Labeling" means any label or other written, printed, or graphic matter upon cannabis or a cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product.

DD. " Labor peace agreement" means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the City' s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer' s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer' s employees work, for the purpose of meeting with employees to 01257. 0002/ 840389. 1 Ordinance No. 1264

discuss their right to representation, employment rights under State law, and terms and conditions of employment.

EE. " Liquid Assets" means assets that can be readily converted into cash. " Liquid assets" include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. " Liquid assets" does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.

FF. " Location" means any parcel of land, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lot area.

GG. " Lighting" means the act of illuminating as well as the effect achieved by the arrangement of lights.

HH. " Live scan" means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice (" DOJ") that involves digitizing fingerprints and electronically transmitting the fingerprint image data along with personal descriptor information to computers at the DOJ for completion of a criminal record check; or such other comparable inkless electronic fingerprinting and automated background check process as determined by the City Council.

11. " Manager" means an employee responsible for management and/ or supervision of a commercial cannabis operation including but not limited to, any ( i) manager or managing member or other officer of a limited liability company or ( ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation.

JJ. " Manufacture" or " manufacturing" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product; includes the activities of a manufacturer.

KK. " Manufacturer" means a person that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container; includes the activity of manufacturing.

LL. " Marijuana" has the same definition as provided for " cannabis" in this chapter.

MM. " MAUCRSA" means the State Medicinal and Adult -Use Cannabis Regulation and Safety Act, codified at Sections 11018 et seq. of the State Health and Safety Code, Sections 26001 et seq. of the State Business and Professions Code, Section 34010 of the State Revenue and Tax Code, and Sections 81000 et seq. of the State Food and Agriculture Department Code, as may hereinafter be amended.

NN. " Medical" refers to activity involving medical cannabis or medical cannabis products, in contrast to an activity involving adult -use cannabis or adult -use cannabis products.

00. " Medical cannabis" or " medical cannabis product" means cannabis or a cannabis product used in compliance with state law for medical purposes, pursuant to the 01257. 0002/ 840389. 1 Ordinance No. 1260

Compassionate Use Act (Section 11362. 5 ofthe State Health and Safety Code § ), the Medical Marijuana Program Act ( Sections 113262. 7, et seq. of the State Health and Safety Code), and the MAUCRSA.

PP. " Minor" means a person under twenty- one ( 21) years of age.

QQ. " Owner" means any of the following:

1. A person owning in the aggregate equity interests representing ten ( 10) percent or more of the voting power of all outstanding equity in the applicant or a commercial permittee.

2. The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or
A member ofthe board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an " owner" for the purpose of compliance with this chapter, including the review and evaluation of any Commercial Cannabis Operation Permit application.

RR. " Microbusiness" shall have the same definition as provided for in Section 26070 of the State Business and Professions Code, and as may be amended.

SS. " Nursery" means a person that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

TT. " Operations Officer( s)" shall refer to the Director, the Fire Chief, the Police Chief, the Finance Director and the City Manager, individually or collectively.

UU. " Package" means any container or receptacle used for holding cannabis or cannabis products.

VV. " Packaging" or " packages" means an activity involved with placing cannabis or cannabis products in a package.

WW. " Park" means public land which has been designated for park or recreational activities, including but not limited to a park, playground, nature trails, swimming pool, athletic field, basketball court, tennis court, pedestrian or bicycle paths, beaches, open space, or similar public land within the City or which is under the control, operation or management ofthe City Recreation and Parks Department. " Park" shall not include any youth center.

XX. " Permittee" means a person issued a Commercial Cannabis Operation Permit by the City.

YY. " Person" means any individual, firm, co -partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.

ZZ. " Person with an identification card" has the same definition as provided for in Section 11362. 7( c) of the State Health and Safety Code, and as may be amended, defined as an individual who is a qualified patient who has applied for and received a valid identification card pursuant to this article."
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AAA. " Physician' s recommendation" means a determination from a physician that a patient' s medical cannabis use is deemed appropriate and is recommended by the physician on the basis of the physician has determined that the patient' s health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief, in strict accordance with Section 11362. 5 of the State Health and Safety Code.

BBB. " Police Chief' means the Los Angeles County Sheriff, and includes his/ her designee( s).

CCC. " Police Department" means the Los Angeles County Sheriff' s Department.

DDD. " Premises" means the designated structure or structures and land specified in a Commercial Cannabis Operation Permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where commercial cannabis operation will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee."
EEE. " Primary caregiver" has the same definition as provided for in Section 11362. 7( d) of the State Health and Safety Code, and as may be amended, defined as " the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person". A " primary caregiver" shall also meet the requirements of Section 11362. 7( e) of the State Health and Safety Code , and as may be amended, which provide that a " primary caregiver shall be at least 18 years of age, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under state law pursuant to Sections 6922, 7002, 7050, or 7120 of the Family Code."
FFF. " Qualified patient" has the same definition as provided for in Section I I362. 7( f) of the State Health and Safety Code, and as may be amended, defined as " a person who is entitled to the protections of Section 11362. 5, but who does not have an identification card issued pursuant to this article."
GGG. " Religious institution" means any church, synagogue, mosque, temple, or building which is used primarily for religious worship, religious education, and related religious activities.

HHH. " Residentially zoned property" means any parcel of land Iocated within the City zoned: R- 1 ( Single -Family Residential Zone), R- 2 ( Multiple Residential Zone), or R3 ( Multiple Residential Zone) I11. " Retailer" means a person engaged in the retail sale or delivery of cannabis or cannabis products to a customer. " Retailer" includes " Retailer ( Medical -Only)" and Retailer ( Medical/ Adult Use)." " Retailer ( Medical -Only)" refers to a retailer which is restricted by the terms of its Commercial Cannabis Operation Permit to engaging in the retail sale or delivery of medical cannabis or cannabis products as stated in Section 5. 26. 120( A). " Retailer ( Medical/ Adult- Use)" refers to a retailer which is not so restricted by the terms of its Commercial Cannabis Operation Permit, and which accordingly may engage in the retail sale or delivery of medical or adult -use cannabis or cannabis products to a customer.

JJJ. " Retail sale( s)" means any commercial cannabis operation involving the retail sale 01257.00021940389. 1 Ordinance No. 1260
Page i 1 of 53

of cannabis or cannabis products from a retailer.

KKK. " Sale( s)" means any sale, exchange, or barter or other transaction for any consideration.

LLL. " School" means as evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the State Department of Education or a private school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business and Professions Code, this definition of" school" under this chapter shall override the definition of "school" used in MAUCRSA or Section 11362. 768 ofthe State Health and Safety Code.

MMM." Site" means the premises and actual physical location of a Commercial Cannabis Operation, as well as its accessory structures and parking areas NNN. " State" means the State of California.
000. " Testing laboratory" or " testing" refers to a laboratory, facility, or entity that offers or performs tests on cannabis or cannabis products; includes the activity of laboratory testing.

PPP. " Youth center" means, ( A) any public or private facility that is primarily used to host recreational or social activities for minors, such as private youth membership organizations or clubs, social service teenage club facilities, or (B) a park, playground, or recreational area specifically designed to be used by children that may have play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any facility located on a public or private school grounds, or on City, County, or parks. " Youth center" shall not include any private martial arts, yoga, ballet, music, or similar studio of this nature nor shall it include any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor' s office primarily serving children. Pursuant to the authority delegated by the State to the City under Section 26054( b) of the State Business and Professions Code, this definition of "youth center" under this chapter shall override the definition of "youth center" in MAUCRSA at Section 26001 of the State Business and Professions Code.

Sec. 5. 26. 040 - Prohibited commercial cannabis operations.

A. Commercial cannabis operations ( including non- profit operations) within the City that involve the activities of non -storefront retailer ( whether medical -only or medical/ adult- use), cultivation, manufacturer, testing, distribution, or microbusiness are prohibited, including but not limited to commercial cannabis operations licensed by the State in the license classifications listed below as provided in Section 26050 of the State Business and Professions Code:

1. Type 1 = Cultivation; Specialty Outdoor; Small.

2. Type lA = Cultivation; Specialty Indoor; Small.

3. Type 1B = Cultivation; Specialty Mixed Light; Small. 01257. 0002/ 840389. 1 Ordinance No. 1260

4. Type 1 C = Cultivation; Specialty Cottage; Small.

5. Type 2 = Cultivation; Outdoor; Small.

6. Type 2A = Cultivation; Indoor; Small.

7. Type 213 = Cultivation; Mixed -light; Small.

8. Type 3 = Cultivation; Outdoor; Medium.

9. Type 3A = Cultivation; Indoor; Medium.
10, Type 3B = Cultivation; Mixed -Light; Medium.

11. Type 4 = Cultivation; Nursery.

12. Type 5= Cultivation; Outdoor; Large.

13. Type 5A = Cultivation; Indoor; Large

14. Type 5B = Cultivation; Mixed -Light; Large.

15. Type 6 = Manufacturer 1.

16. Type 7 = Manufacturer 2.

17. Type 8 = Testing.

18. Type 9 = Non -Storefront Retailer ( Delivery Only)

19. Type 11 = Distributor

20. Type 12 = Microbusiness.

B. The prohibition provided by above subsection ( A) includes any similar activities authorized under new or revised State licenses, or any other State authorization, to allow any type, category or classification of cannabis commercial operations that involve the activities of non -storefront retailer ( Type 9, i.e., delivery only) ( whether medical -only or medical/ adult- use), cultivation, manufacturer, testing, distribution, microbusiness, or similar operations ( including non- profit, collective or cooperative operations).

Sec. 5. 26. 050 - Permitted commercial cannabis operations.

A. Commercial cannabis operations ( including non-profit operations) within the City which involve the activity of retailer ( Type 10; medical -only and medical/ adult-use) are allowed subject to issuance and maintenance of a valid and current City Commercial Cannabis Operation Permit, continuing adherence to this entire chapter and all applicable City and State regulations and laws, and issuance and maintenance of a valid and current equivalent state license type listed below, as provided for in Section 26050 of the State Business and Professions Code:

1. Type 10 = Retailer ( Medical -Only; Medical/Adult-Use).

B. The requirements provided by above subsection ( A) apply to any similar activities authorized under new or revised State licenses, or any other State authorization, to allow any type, category or classification of cannabis commercial operations that involve the activity of retailer ( medical -only and medical/ adult- use) or similar operations ( including non- profit, collective or cooperative operations). 01257. 0002/ 840389. 1 Ordinance No. 1260

Sec. 5. 26. 060 - Maximum Number of Commercial Cannabis Operation Permits.

A. The number of Commercial Cannabis Operation Permits for retailer ( medical/ adultuse) commercial cannabis operations based within the City shall be no more than one

0. B. Notwithstanding Subsection ( A) of this Section, if the City Council opts, in its sole discretion, to reinstitute the application procedure after the first year following the operative date ofthis chapter pursuant to Section 5. 26. 070( H), then two (2) additional retailer ( medical/ adult- use) Commercial Cannabis Operation Permits may be issued such that the maximum number of Commercial Cannabis Operation Permits for retailer ( medical/ adult-use) commercial cannabis operations based within the City shall be increased to no more than three ( 3) retailers ( medical/ adult- use).

C. The number of Commercial Cannabis Operation Permits for non -storefront retailer delivery only) ( whether medical -only or medical/adult-use) ( including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the City to engage in delivery within the City shall be zero ( 0). However, should a court of competent jurisdiction, as a judicial remedy, order the City Council to increase the maximum number of Commercial Cannabis Operation Permits for non - storefront retailer ( delivery only) ( including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the City to engage in delivery within the City, the number of Commercial Cannabis Operation Permits for non - storefront retailer ( delivery only) ( including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the City to engage in delivery within the City shall be no more than two ( 2).

D. The maximum number of Commercial Cannabis Operation Permits issued for retailer including medical -only and medical/adult use retailer, individually and collectively) commercial cannabis operations based within the City or non -storefront retailer delivery only) ( including retailers or microbusinesses engaged in delivery) based outside the City may not be amended by the City Council or regulations promulgated by the City Manager pursuant to this chapter. However, the City Council may and shall increase the maximum number of Commercial Cannabis Operation Permits issued for retailer commercial cannabis operations based within the City or non - storefront retailer ( delivery only) ( including retailers or microbusinesses engaged in delivery) based outside the City ( i) if ordered to do so by a court of competent jurisdiction as a judicial remedy or ( ii) by a vote of the People of the City.

Sec. 5.26.070 Commercial Cannabis Operation Permit application procedure.

A. Following the effective date of this chapter, the City Manager, pursuant to Section

5. 26. 140, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of applications for retailer ( medical -only and medical/adult-use) commercial cannabis operations up to the maximum number of Commercial Cannabis Operation Permits authorized in Section 5. 26. 060.

B. The City Manager shall, as a ministerial duty, cease acceptance of Commercial 01257. 0002/ 840389. 1 Ordinance No. 1260

Cannabis Operation Permit applications for retailer ( medical - only and medical/ adultuse) commercial cannabis operations thirty ( 30) days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of Commercial Cannabis Operation Permit applications for retailer ( medical -only and medical/ adult- use) commercial cannabis operations.

C. Within thirty ( 30) days of ceasing the acceptance of Commercial Cannabis Operation Permit applications for retailer ( medical -only and medical/ adult-use) commercial cannabis operations, the City Manager shall, as a ministerial duty, review timely submitted Commercial Cannabis Operation Permit applications for retailer ( medical - only and medical/ adult- use) commercial cannabis operations for the following minimum requirements:

1. Payment of an application fee established by resolution of the City Council within forty-five (45) days following the effective date of this chapter to cover all costs incurred by the City in the application process;

2. Sufficient evidence of the legal right to use the proposed property for the proposed use, to include a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a Commercial Cannabis Operation Permit or other approvals. The City shall only consider one applicant per property address or County Assessor' s Identification Number. In the event that more than one applicant applies for a Commercial Cannabis Operation Permit application at a given property address or a given County Assessor' s Identification Number, the City Manager shall, as a ministerial duty, only accept the Commercial Cannabis Operation Permit application with the earliest effective date for the evidence ofthe legal right to use the proposed property for the proposed use in the name of the applicant;

3. Sufficient evidence to demonstrate that the proposed property complies with the location and zoning requirements in Section 5. 26. 120;

4. Proof that an owner or owners of the applicant with an aggregate ownership interest of fifty (50) percent or more has served as an owner or owners with an aggregate ownership interest of fifty (50) percent or more of six or more other retailer ( medical - only or medical/ adult- use) commercial cannabis operations by a city, county, or state since at least January 1, 2022;

5. Proof of funds showing that the applicant has access and control of over 500, 000. 00 in Liquid Assets ( which such Liquid Assets having been under possession for at least ninety ( 90) days prior to the date of the application submission under this Section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement that demonstrates access and control of over $ 500, 000. 00 in 01257. 0002/ 840389. 1 Ordinance No. 1260

Liquid Assets under possession for at least ninety ( 90) days prior to the date of the application submission under this Section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over $ 500, 000. 00 in Liquid Assets except on initial application pursuant to this Section 5. 26.070, a change in location application pursuant to Section 5. 26. 100, or an ownership transfer application pursuant to Section

5. 26. 100;

6. For an applicant with two ( 2) or more employees, proof of a labor peace agreement between a bona fide labor organization and the applicant ( the applicant shall provide the City with a copy of the labor peace agreement that contains the signatures of the union representative and the cannabis business).

For applicants with less than two (2) employees who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty (30) days after employing two (2) employees;,

7. A set of plans, including a site development plan, floor plan(s), building elevations ( all four ( 4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

8. Colored interior and elevation renderings;

9. A completed background check application and receipt for each owner and manager ofthe applicant pursuant to Section 5. 26. 110( H); and

10. The following application components: ( a) Qualifications of the applicant' s owners and managers; ( b) business and operations plan; ( c) security plan; ( d) safety plan; ( e) neighborhood compatibility plan; ( f) labor and employment plan; and ( g) community benefits plan.

11. Disclosure of whether the applicant is applying for a Commercial Cannabis Operation Permit as a retailer ( medical -only) or retailer ( medical/ adult- use).

The City Manager shall, as a ministerial duty, reject any Commercial Cannabis Operation Permit application that fails to meet the minimum requirements contained in this Subsection ( C), and applicants shall not have the right to supplement or amend their Commercial Cannabis Operation Permit applications.

D. Within sixty ( 60) days of completing the application review under Subsection ( C) above, the City Manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria according to the following quantitative evaluation scale, with retailer (medical -only) applicants ranked only against other retailer ( medical -only) applicants and retailer ( medical/ adult- use) applicants ranked only against other retailer ( medical/ adult- use) applicants unless otherwise provided by administrative regulations promulgated pursuant to Section

5. 26. 140:
01257. 0002/ 840389. 1 Ordinance No. 1260

1. Qualifications ofthe applicant' s owners and managers — 250 points The People of the City find that a proven track -record of for retailer commercial cannabis operations that successfully generate tax revenue carries out the purpose and intent of the Program and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant' s owners and managers. Accordingly, 150 of the 250 points awardable under this Subsection ( 1) shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of fifty (50) percent or more is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of fifty ( 50) percent or more of a single licensed and lawfully operating retailer commercial cannabis operations ( excluding any non -retailer microbusiness, cultivation, manufacturing, distribution, or other non -retailer commercial cannabis operation components) that has generated at least $ 5, 000, 000. 00 in gross receipts in a consecutive six- month period in the year immediately preceding the date ofthe application submission under this Section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state.

The remaining 100 of the 250 points awardable under this Subsection ( 1) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 50 points — A description of the applicant' s owner and manager qualifications detailing any special business or professional qualifications or licenses of the applicant' s owner and manager that would add to the quality of services that the retailer commercial cannabis operation would provide, including in areas related to cannabis, such as legal, finance, business ownership / administration, waste management, real estate development, scientific, or healthcare or wellness fields. b. Up to 50 points — Documentation that the applicant' s owners and managers have experience operating retailer commercial cannabis operations in any jurisdiction where retailer commercial cannabis operations are permitted.

2. Plans, renderings, and overall location — 50 points
The 50 points awardable under this Subsection ( 2) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 10 points — A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code ofRegulations. b. Up to 10 points — A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in this Code.

Information on existing conditions shall include:
i. Exterior photographs showing all sides of any existing structure( s);
ii. Photographs of existing parking areas, landscaping, trash enclosure, and signage;
01257. 0002/ 840389. 1 Ordinance No. 1260

iii. Information on existing use on the site, including the addresses, uses, and square footages;
iv. Photographs of the existing site if the site is vacant; and V. Photographs of adjacent properties for context.
c. Up to 10 points —A floor plan showing information on the existing layout and proposed layout of the building interior.
d. Up to 10 points — Building elevations that provide information on existing conditions and proposed improvements.
e. Up to 5 points — A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species. f. Up to 5 points — Colored interior renderings and exterior elevation renderings ( for both existing and/ or proposed improvements).

3. Business and operations plan — 100 points
The 100 points awardable under this Subsection ( 3) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 10 points — A written description of the total square footage of the facility with estimated square footage of proposed uses. b. Up to 10 points — A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.
c. Up to 10 points — A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.
d. Up to 5 points — A description of the sources( s) of capital and use( s) of capital.
e. Up to 10 points — Pro forma financial statements for at least three (3) years of operation.
f. Up to 5 points — A description of the type of products to be sold and the estimated quantity and value of product( s) to be sold. g. Up to 5 points — A description of marketing procedures and tactics. h. Up to 10 points — A description of day- to- day operations that should acknowledge both state and local laws and should be consistent with industry best practices.

Up to 5 points — A description of hours of operation and opening procedures. j. Up to 10 points — A description of cash handling procedures.
j. Up to 10 points — A description of inventory control procedures to include 01257. 0002/ 840389. 1 Ordinance No. 1260
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identification of point -of -sale systems, and track and trace software. k. Up to 10 points — A description oftransportation, loading and unloading, distribution, or delivery procedures.

4. Security plan — 100 points
The 100 points awardable under this Subsection (4) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 20 points — The security plan shall be prepared by a professional security consultant.
b. Up to 10 points —A premises security diagram.
c. Up to 50 points — A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this chapter.
d. Up to 10 points — A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

Up to 10 points — A description of the services of on -site security guards to include the ( i) number of security guards; ( ii) the hours security guards will be on -site; ( iii) locations where security will be positioned; and ( iv) security guard responsibilities.

Safety plan —100 points
The 100 points awardable under this Subsection ( 5) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 20 points — The safety plan shall be prepared by a professional fire prevention and suppression consultant.
b. Up to 10 points — A premises safety diagram to include ( 1) a description illustration of evacuation routes and ( 2) location of fire extinguishers and other fire suppression equipment.
c. Up to 50 points — A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this chapter.
d. Up to 10 points — Identify all gases, pesticides, and chemicals to be used and their storage locations.

Up to 10 points — A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood compatibility plan — 100 points
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The 100 points awardable under this Subsection ( 6) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 40 points — A "Good Neighbor Policy" that (i) includes policies and measures in place to protect adjacent uses from any potential impacts e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis business and ( ii) describes how the cannabis business and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.
b. Up to 20 points — A description of odor mitigation practices to include:
i) identifying potential sources of odor; (ii) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and ( iii) all proposed staff odor training and system maintenance.
c. Up to 20 points — A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant' s security measures and methods of rendering waste unusable and unrecognizable.
d. Up to 20 points — A description of efforts at sustainability / environmental impact mitigation.

7. Community benefits plan — 100 points
The People ofthe City find that monetary donations to local non-profit organizations, financial support of City sponsored activities or organizations, in kind donations to the City or other charitable organizations, and economic incentives to the City carry out the purpose and intent of the Program and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 50 of the 100 points awardable under this Subsection ( 7) shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use ( or a combination thereof), which is defined as a direct financial contribution equal to two ( 2) percent of projected gross receipts of the applicant to a public school located within the City, a public park located within the City, and/or a public or nonprofit community organization serving the City or its residents. Beyond the above and as a ministerial duty, no further direct financial contributions shall be considered as part of an applicant' s community benefits plan.

The remaining 50 of the 100 points awardable under this Subsection ( 7) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 25 points — A description of a social responsibility plan to include identification of a community liaison, plans to serve as a social equity business incubator, plans to aide and participate in the work of local non01257. 0002/ 840389. 1 Ordinance No. 1260

profits, community- based organizations, civic organizations, or social services organizations.
b. Up to 25 points — A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

8. Labor and employment plan — 200 points
The People ofthe City find that a proven track -record of cannabis retailer operations with high labor standards and commitment to labor peace carries out the purpose and intent of the Program and are, therefore, critical for an applicant to demonstrate an effective labor and employment plan. Accordingly, 100 of the 200 points awardable under this Subsection ( 8) shall only be awarded if the applicant provides documentation that the individual or natural person owner or owners of the applicant disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of fifty ( 50) percent or more have entered into collective bargaining agreements with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals ( and remaining effective, inclusive of renewals, on the date of the application submission under this Section) and such collective bargaining agreements accrete or automatically apply to all cannabis retailers permitted or licensed in the State after July 1, 2021 ( notwithstanding the fact that employees of such cannabis retailers permitted or licensed in the State after July 1, 2021 ( if any), have yet to have had an opportunity to recognize the labor organization that currently represents cannabis workers in the United States), by the individual or natural person owner or owners ofthe applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety ( 90) percent or more referenced above.

The remaining 100 of the 200 points awardable under this Subsection ( 8) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 10 points -- An organizational chart of showing owners, managers, and employees.
b. Up to 10 points — A description of the owner' s and manager' s roles in day-to- day operations and decisions.
c. Up to 10 points — A description of the number of employees, title 1 position, and their respective responsibilities
d. Up to 15 points — A description of compensation to employees, opportunities for continuing education, and employee training. e. Up to 15 points — A description of whether the cannabis business is committed to offering employees a living wage.
01257. 00021840389. 1 Ordinance No. 1260

f. Up to 15 points — A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
g. Up to 15 points — A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
h. Up to 10 paints — A description of a planto have at least 50% of employee positions filled and hours worked by employees residing inthe City. E.

Upon timely receipt ofa Commercial Cannabis Operation Permit application, the City Manager shall conduct background checks in accordance with Section 5.26. 110( H). Following review and scoring of applications completed pursuant toobjective review criteria under Subsection ( D), the City Manager shall, as a ministerial duty, recommend that the City Council issue Commercial Cannabis Operation Permits toapplicants inorder oftheir rank under Subsection (D) up to the maximum number of Commercial Cannabis Operation Permits authorized in Section 5.26. 060. The City Council shall consider the City Manager' srecommendations, and may conduct its own independent review and scoring of applications completed pursuant toobjective review criteria under Subsection (D) and substitute such review and scoring forthat of the City Manager in whole orin part ifit sees fit to do so, and shall thereupon, as a ministerial duty, issue Commercial Cannabis Operation Permits toapplicants inorder of their rank under Subsection (D) up to the maximum numberof Commercial Cannabis Operation Permits authorized in Section 5.26. 060. For the initial iteration of the application process pursuant tothis section, the number of Commercial Cannabis Operation Permits issued shall be no more than two (2) retailer ( medical - only) and one retailer ( medical/ adult use) Commercial Cannabis Operation Permits. In the event of atie in the order of ranking under Subsection (D) between one or more applicants upto the maximum number of Commercial Cannabis Operation Permits authorized in Section 5.26. 060, the City Council shall, as a ministerial duty, break the tie and issue Commercial Cannabis Operation Permits to the applicants with the highest scoring application component inthe following order: (1) Qualifications ofthe applicant' s owners and managers; (2) labor and employment plan; (3) security plan; ( 4) safety plan; (5) community benefits plan; (6) neighborhood compatibility plan; ( 7) business and operations plan; and (8) plans, renderings, and overall location. In the event of atie on all application components between one or more applicants upto the maximum number of Commercial Cannabis Operation Permits authorized in Section

5.26. 060, the City Manager shall not hold apublic lottery, but rather arrange for the tied applicants toprovide public presentations before the City Council, after which the City Council shall publicly rank the applicants pursuant toranking sheets prepared by the City Manager that achieve aforced ranking based on all of the objective review criteria and quantitative evaluation scale in Subsection ( D), and the City Council shall issue Commercial Cannabis Operation Permits toapplicants inorder of their rank up to the maximum number of Commercial Cannabis Operation Permits available following the City Manager/ City Council' s original ranking and 01257. 0002/ 840389. 1 Ordinance No. 1260 Page
22 of 53

issuance of Commercial Cannabis Operation Permits and the limits contained in Section 5. 26. 060. However, the City Council shall not issue a Commercial Cannabis Operation Permit to any applicant with an applicant, owner, or manager that:

I. Provided false or misleading information on the applicant' s Commercial Cannabis Operation Permit application;

2. Has been convicted of (or pled no contest to) " an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made" as that term is defined in 26057( b)( 4) of the State Business and Professions Code; or

3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis operations or has had a license suspended or revoked under MAUCRSA in the three ( 3) years immediately preceding the date the application was submitted.

F. Any decision of the City Council under this Section 5. 26.070 shall be a final administrative decision not subject to administrative appeal under any provisions of this chapter or any provisions of this Code but, rather, subject to judicial review and remedies.

G. In the event that ( 1) the number of active, operating retailer ( medical -only or medical/ adult -use) commercial cannabis operations and issued Commercial Cannabis Operation Permits falls below the maximum number of Commercial Cannabis Operation Permits for retailer ( medical -only or medical/ adult- use) commercial cannabis operations authorized in Section 5. 26.060 or (2) the City Council is ordered to increase the maximum number of Commercial Cannabis Operation Permits issued for retailer (medical -only or medical/adult-use) commercial cannabis operations by a court of competent jurisdiction as a judicial remedy ( e.g., if a court of competent jurisdiction orders the City Council to make Commercial Cannabis Operation Permits available for non - storefront retailer ( delivery only) ( including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the City to engage in delivery within the City), the City Manager shall, as a ministerial duty, within thirty ( 30) days reinstitute the application procedure under this Section

5. 26. 070, subject to the maximum number of Commercial Cannabis Operation Permits authorized and available ( not allocated to an active, lawfully operating retailer) for issuance pursuant to Section 5. 26.060. For the purpose of this Section, a retailer (medical -only or medical/ adult-use) commercial cannabis operation shall be considered operating if (1) upon initial issuance of Commercial Cannabis Operation Permit (or approval of a change in Iocation pursuant to Section 5. 26. 100), the retailer commercial cannabis operation commences lawful operations within twenty- four ( 24) months or ( 2) following initial commencement of lawful operations, the retailer commercial cannabis operation does not cease or abandon operations for one -hundred eighty ( 1 S0) consecutive or cumulative days in any one ( 1) year period.

H. Additionally, at any time during the second year from the operative date of this chapter, the City Council may, by resolution or minute action, reinstitute the application procedure under this Section 5. 26.070 for the purpose of considering issuance of one additional retailer ( medical/ adult- use) Commercial Cannabis Operation Permit, in which case the maximum number of Commercial Cannabis 01257. 0002/ 840389. 1 Ordinance No. 1260

Operation Permits for retailer ( adult- use/ medical) commercial cannabis operations based in the City shall increase from one to two as stated in Section 5. 26. 060( B).

Sec. 5. 26. 080 - Limitations on the City' s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Operation Permit pursuant to this chapter or otherwise approving any retailer commercial cannabis operation. As a condition to the approval of any Commercial Cannabis Operation Permit, the applicant shall be required to meet all of the following conditions before they can receive a Commercial Cannabis Operation Permit:

A. Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend ( at applicant' s sole cost and expense), and hold the City, and its officers, officials, employees, representatives, and agents harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of or which are in any way related to the City' s issuance of the Commercial Cannabis Operation Permit, the City' s decision to approve the retailer commercial cannabis operation, the process used by the City in making its decision, or the alleged violation of any federal, State, or local laws by the retailer commercial cannabis operation or any of its owners, managers, officers, employees, or agents.

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney.

C. Defend and indemnify the City, its elected and appointed officials, employees and attorneys for all costs and expenses, including but not limited to attorneys' fees and court costs, that the City may be required to pay as a result of any legal challenge related to the City' s approval of the applicant' s Commercial Cannabis Operation Permit, any matter arising from the operations of said cannabis business and/ or related to the City' s approval ofretailer commercial cannabis operations. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any ofthe obligations imposed on the applicant hereunder.

D. Provides written authorization to the Operations Officers to conduct reasonable unannounced inspections of the location of the commercial cannabis operation at the reasonable discretion of the City, including but not limited to inspection of security, inventory, and written records and files pertaining to the commercial cannabis operation, for the purposes of ensuring compliance with this chapter and all laws of the City and the State.

See. 5. 26. 090 - Commercial Cannabis Operation Permit term.

A. Subject to this Section 5. 26. 090 and Section 5. 26. 160, the term of each Commercial Cannabis Operation Permit shall be indefinite.

B. Upon the one ( 1) year anniversary of the date of issuance for each Commercial Cannabis Operation Permit and every year thereafter, the City Manager shall conduct 01257. 00021840389. 1 Ordinance No. 1260

a performance review of the permittee to assess compliance with the requirements of this chapter and State law. Within thirty ( 30) days of the conclusion of the annual performance review of the permittee, the City Manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty ( 60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be reasonably remedied within sixty ( 60) days, such noncompliance items shall not constitute a serious material violation of any law and/ or any rule, regulation, and/ or standard adopted pursuant to this chapter subject to suspension or revocation under Section 5. 26. 160 if the permittee commences correction of such noncompliance items within sixty ( 60) days and thereafter diligently prosecutes correction of such noncompliance items to completion.

C. The permittee shall pay a fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the City to administer the Program created under this chapter.

Section 5. 26. 100 — Change in location; transfer, updated application information.

A. A permittee may change the business location specified in a Commercial Cannabis Operation Permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 5. 26. 140 within one -hundred eighty ( 180) days following the effective date of this chapter. The permittee shall pay an application fee established by resolution ofthe City Council to cover all costs incurred by the City in the review and processing of change in location applications. The City Manager shall process such change in location applications as a ministerial duty within thirty ( 30) days of receipt.

B. An owner of a Commercial Cannabis Operation Permit shall not transfer ownership or control of such Commercial Cannabis Operation Permit to another person unless and until the permittee and transferee obtain an amendment to the Commercial Cannabis Operation Permit that is approved by the City Council upon recommendation from the City Manager stating that the permit may be transferred. A permittee may change the ownership specified in a Commercial Cannabis Operation Permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 5. 26. 140 within one -hundred eighty ( 180) days following the effective date of this chapter. The permittee shall pay an application fee established by resolution ofthe City Council to cover all costs incurred by the City in the review and processing of change in ownership applications. The City Manager shall process such change in ownership applications as a ministerial duty within thirty ( 30) days once the City Manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

C. Notwithstanding Subsection ( B), during the first three years following the issuance of 01257. 0002/ 940389. 1 Ordinance No. 1260

a Commercial Cannabis Operation Permit, the City Manager shall not process any application to change the ownership or control of a Commercial Cannabis Operation Permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to Section 5. 26. 070. For example, if a permittee received 100 points when it was an applicant for providing documentation that the individual or natural person owner or owners of the applicant ( disregarding any intervening or intermediary entity owner or owners ofthe applicant) with an aggregate ownership interest of ninety ( 90) percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals and remaining effective, inclusive of renewals, on the date of the application submission under this Section), the City Manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

D. Notwithstanding Subsection ( B), no Commercial Cannabis Operation Permit may be transferred when the City Manager has notified the permittee that its Commercial Cannabis Operation Permit has been or may be suspended or revoked.

E. Any attempt to transfer a Commercial Cannabis Operation Permit either directly or indirectly in violation of this Section 5. 26. 100 is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation ofthe permit.

F. An applicant or permittee shall notify the City Manager or designee( s) within fifteen 15) calendar days of any material change in the information provided in the applicant or permittee' s Commercial Cannabis Operation Permit application or any change in status of compliance with the provisions of this chapter, including any change in ownership or management...

See. 5. 26. 110 - General operating standards and restrictions.

A commercial cannabis operation shall operate in conformance with the following minimum standards, and such standards shall be deemed to be part of the conditions on the permit for a commercial cannabis operation to ensure that its operation is in compliance with State law and this Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the City Council, or by the City Manager pursuant to Section 5. 26. 140.

A. State Standards. All state requirements and regulations that govern the operation of a commercial cannabis operation, including but not limited to ones related specifically to certain types of commercial cannabis operations, shall apply as minimum requirements and regulations and requirements for commercial cannabis operations within the City of South El Monte, in addition to the requirements and regulations of this chapter and this Code.

B. Security.
01257. 0002/ 840389. 1 Ordinance No. 1260

1. General. All cannabis, cannabis products and cash present or kept at the premises shall be securely stored against both unauthorized access as well as theft.

2. Security Cameras.
a. Security cameras shall be installed and maintained in good condition, with at least ninety ( 90) days of digitally recorded documentation in a format approved by the City Manager and the Police Chief. b. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present at the site of the commercial cannabis operation. c. The cameras shall be in continuous use 24 hours per day, 7 days per week. d. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium approved by the City Manager, such as DVD and/ or a USB drive.
e. The areas to be covered by the security cameras include, but are not limited to, the storage areas, operation areas, all doors and windows, the parking lot, all exterior sides of the property adjacent to the public rights of way, and any other areas as determined by the City Manager and Police Chief.
f. Remote log -in information will be provided to the Operations Officers to allow them to view live and recorded security camera images remotely at any time.

3. Alarm System. The location of the commercial cannabis operation shall be alarmed with a centrally -monitored fire and burglar alarm system, and monitored by an alarm company properly licensed by the State Department of Consumer Affairs Bureau of Security and Investigative Services in accordance with Sections 7590, et seq. of the State Business and Professions Code. and whose agents are properly licensed and registered under applicable law.

4. Locked Entrances. All entrances into the building housing a commercial cannabis operation shall be locked from the exterior at all times with entry controlled by employees.

5. Windows. All windows on the building that houses the commercial cannabis operation shall be secured against entry from the outside.

6. No employee shall refuse, impede, obstruct or interfere with an inspection conducted pursuant to the authorizations provided by this chapter.

C. Odors.

A commercial cannabis operation shall have an air treatment system that ensures off -site odors shall not result from its activities.

2. This requirement at a minimum means that the commercial cannabis operation shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location of the commercial cannabis operation is not detected outside the building, on adjacent properties or public rights -of -way, or within any other unit located within the same 01257.0002/ 840389. 1 Ordinance No. 1260

building as the commercial cannabis operation, if the use only occupies a portion of a building.

D. Authorizations.
l . The Operations Officers shall have the right to enter all areas of the commercial cannabis operation from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and all laws of the City and State.

2. Recordings made by security cameras required pursuant to this chapter shall be made available to the Operations Officers upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials.

E. Records.

Commercial cannabis operations shall maintain on -site the following records either in paper or electronic form:
a. The full name, address, and telephone numbers of the owner and lessee of the property.
b. The name, date of birth, address, and telephone number of each employee of the commercial cannabis operation; the date each was hired; and the nature of each employee' s participation in the commercial cannabis operation.
c. Copies of all required state licenses.
d. An inventory record documenting the dates and amounts of cannabis and cannabis products received at the site, the daily amounts of cannabis and cannabis products on the site, and the daily amounts of cannabis and cannabis products leaving the site for any reason, including but not limited to being sold, delivered, or distributed.
e. A written accounting of all expenditures, costs, revenues and profits of the commercial cannabis operation, including but not limited to cash and in -kind transactions.
f A copy of all insurance policies related to the operation ofthe commercial cannabis operation.
g. A copy of the commercial cannabis operation' s most recent year' s financial statement and tax return.
h. Proof of a valid and current permit issued by the City in accordance with this chapter, and the equivalent State of California license to operate the commercial cannabis operation. Every commercial cannabis operation shall display at all times during business hours the City permit issued pursuant to the provisions ofthis chapter, and the equivalent State license, in a conspicuous place so that it may be readily seen by all persons entering the location ofthe commercial cannabis operation.

2. All records required to be maintained by the commercial cannabis operation must be maintained for no less than seven ( 7) years and are subject to immediate inspection ( consistent with requirements pertaining to qualified patient confidentiality pursuant to applicable State and federal law) upon a 01257, 0002/ 840389. 1 Ordinance No. 1260

lawful written request by an Operation Officer.

3. A commercial cannabis operation shall report any loss, damage, or destruction ofthese records to the Operation Officers within twenty- four ( 24) hours ofthe loss, damage, or destruction.

F. Site Management.

1. Commercial cannabis operations shall not result in a nuisance or adversely affect the health, welfare, or safety of nearby persons by creating dust, glare, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts, or be hazardous due to use or storage of materials, processes, products or waste. The permittee shall promptly and diligently both prevent as well as eliminate conditions on the site of the commercial cannabis operation that constitute a nuisance.

2. A permittee shall maintain the exterior of the site, including any parking lots under the control ofthe permittee, free of litter, debris, and trash.

3. The Commercial Cannabis Operation permittee shall properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations.

4. Notwithstanding any provisions of this code to the contrary, the Commercial Cannabis Operation permittee shall remove all graffiti from the site and parking lots under the control of the Commercial Cannabis Operation Permittee within 72 hours of its application.

G. State Board of Equalization Seller' s Permit Required.

1. Commercial cannabis operations must obtain a Seller' s Permit from the State Board of Equalization as applicable.

2. Such permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the location ofthe commercial cannabis operation.

H. Employees.

All employees must submit to fingerprinting and criminal background checks by the City.
a. No employee convicted within the last ten years of a felony substantially related to the qualifications, functions or duties of an employee of a commercial cannabis operation ( such as a felony conviction for distribution of controlled substances, money laundering, racketeering, etc.) shall be employed by a commercial cannabis operation, unless such employee has obtained a certificate of rehabilitation ( expungement of felony record) under State law or under a similar federal statute or state law where the expungement was granted.
b. At the request of the commercial cannabis operation, the City Manager and Police Chief shall determine the applicability of this Section to a potential employee within a reasonable period of time after a written request has been made to the City Manager and Police Chief for such determination.

2. All employees must possess a valid government issued ( or equivalent) form 01257. 0002/ 840389. 1 Ordinance No. 1260

of identification containing an identifying photograph of the employee, the name of the employee, the date of birth of the employee, and the residential address of the employee. Color copies of such identification shall be maintained at the location of the commercial cannabis operation. A valid State driver' s license will satisfy this requirement.

Cannabis Transfer Between Permitted Operations Only.

A commercial cannabis operation shall not transfer cannabis or cannabis products to or from another commercial cannabis operation, unless both operations are in possession of all required State and local licenses and permits.

J. Commercial Cannabis Operation Signage.

1. Signs on the premises shall not obstruct the entrance or the video surveillance system. The size, location, and design of any signage must conform to the sign provisions in this Code.

2. Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with the appropriate sign requirements within the applicable zoning district.

K. Prohibited Personal Activities.

Cannabis Use. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site of the commercial cannabis operation.

2. Alcohol Use. No person shall possess, consume, or store any alcoholic beverage on the site of the commercial cannabis operation.

L. No Minors. No minor shall be an employee of, or participate in, a commercial cannabis operation in any capacity, including but not limited to, as a manager, employee, contractor, adviser, or volunteer.

M. Exterior Lighting. The exterior of the premises upon which the commercial cannabis operation is operated shall be equipped with and, at all times between sunset and sunrise, shall remain illuminated with fixtures of sufficient intensity and number to illuminate every portion ofthe property with an illumination level of not less than one foot-candle as measured at the ground level, including, but not limited to, landscaped areas, parking lots, driveways, walkways, entry areas, and refuse storage areas.

N. Building Design. A permittee must maintain the design ofthe buildings on the site in accordance with the plans that are approved by the City pursuant to this chapter and otherwise approved by the City. No permittee shall modify the buildings on the site contrary to the approved plans, without the approval of the City Manager.

O. Nuisance. A permittee shall take all reasonable steps to discourage and correct conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if related to the members of the subject commercial cannabis operation. t. " Reasonable steps" shall include immediately calling the Police Department upon observation of the activity, and requesting that those engaging in activities that constitute a nuisance or are otherwise illegal to cease those activities, unless personal safety would be threatened in making the request. 01257. 0002/ 840389. 1 Ordinance No. 1260

2. " Nuisance" includes but is not limited to disturbances of peace, open public consumption of cannabis, alcohol or controlled substances, excessive pedestrian or vehicular traffic, including the formation of any pedestrian lines outside the building, illegal drug activity, harassment of those passing by, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or law enforcement detentions and arrests.

P. Upon and after receiving possession of a Commercial Cannabis Operation Permit as provided for in this chapter, a permittee shall:

1. Maintain continuing compliance with criminal background check requirements ofthis chapter by ensuring that:
a. Upon the hiring, association or retention of an employee by the commercial cannabis operation, the requirements of Section 5. 26 are immediately met for such employee by provision of appropriate documentation to the City Manager; and
b. the City Manager and Police Chief are immediately informed in writing of any felony conviction as described in 5. 26. 110( H) for any current employee.

2. Maintain continuing compliance with all applicable insurance requirements, including, but not limited to, those imposed by City and this chapter.

Q. Workforce Plan. A permittee shall implement a workforce plan that includes at least the following provisions:

1. Commitment for thirty percent (30%) of employees to be local hires; this local hiring requirement is satisfied when a permittee shows that it has either hired or made a good faith effort to hire bona fide residents of the City or persons that may establish residency after initial employment with the permittee;

2. Commitment to offer apprenticeships and/ or compensation for continuing education in the field of commercial cannabis operations; and

3. Paying a living wage to employees. " Living wage" means compensation equivalent to $ 20 per hour inclusive of benefits but excluding tips.

R. Exemption. The regulations contained in this chapter shall not apply to a commercial cannabis operation engaged in the following uses, as long as such use complies strictly with applicable law, including this Code, regulating such use and the location of such use, including, but not limited to, Section 11362. 5 ofthe State Health and Safety Code and Sections 11362. 71 et seq. of the State Health And Safety Code: A clinic licensed pursuant to Chapter 1 of Division 2 of the State Health and Safety Code; a health care facility licensed pursuant to Chapter 2 of Division 2 of the State Health and Safety Code; a residential care facility for persons with chronic life -threatening illness licensed pursuant to Chapter 3. 01 of Division 2 of the State Health and Safety Code; a residential care facility for the elderly licensed pursuant to Chapter 3. 2 of Division 2 of the State Health and Safety Code; and, a residential hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the State Health and Safety Code.
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