Agenda — Stanton City Council, March 25, 2025 (part 1 of 2)

NOTICE AND CALL

CITY COUNCIL / SUCCESSOR AGENCY / STANTON HOUSING AUTHORITY

SPECIAL MEETING

TO THE MEMBERS OF THE CITY COUNCIL / SUCCESSOR AGENCY / STANTON HOUSING AUTHORITY FOR THE CITY OF STANTON AND TO THE CITY CLERK / SECRETARY:

NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council / Successor Agency / Stanton Housing Authority for the City of Stanton is hereby called by the Mayor / Chairman, to be held on March 25, 2025, commencing at 5:30 p.m. at 7800 Katella Avenue, Stanton, CA 90680.

The Agenda for the Special Meeting is attached to this Notice and Call.

Dated: March 20, 2025
s/ Patricia A. Vazquez, City Clerk / Secretary

IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE OFFICE OF THE CITY CLERK AT (714) 890-4245. NOTIFICATION PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING.

PUBLIC ACCESS IN-PERSON AND VIA TELECONFERENCE
(Electronically / Telephonically)
Attendance by the members of the public may view the meeting live in one of the following ways:
• Attend in person - City Council Chambers: 7800 Katella Avenue, California 90680. • Via Teleconference (electronically / telephonically) - Zoom:

In order to join the meeting via telephone please follow the steps below:

1. Dial the following phone number +1 (669) 444-9171 (US).

2. Dial in the following Meeting ID: (894 6257 1538) to be connected to the meeting.

In order to join the meeting via electronic device please utilize the Zoom URL link below:
• https://us02web.zoom.us/j/89462571538?pwd=JOiTJK5fI6wv64YAXRnz5DNfIavnJz.1

ANY MEMBER OF THE PUBLIC WISHING TO PROVIDE PUBLIC COMMENT FOR ANY ITEM ON THE AGENDA MAY DO SO AS FOLLOWS:
• Attend in person and complete and submit a request to speak card to the City Clerk. • E-Mail your comments to [email protected] with the subject line “PUBLIC COMMENT ITEM #” (insert the item number relevant to your comment). Comments received no later than 5:00 p.m. before the scheduled meeting will be compiled, provided to the City Council, and made available to the public before the start of the meeting. Staff will not read e-mailed comments at the meeting. However, the official record will include all e-mailed comments received until the close of the meeting.

Should you have any questions related to participation in the City Council Meeting, please contact the City Clerk’s Office at (714) 890-4245 or via e-mail at [email protected].

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 1 of 11 ends

AGENDA

CITY COUNCIL/SUCCESSOR AGENCY/STANTON HOUSING AUTHORITY

SPECIAL & JOINT REGULAR MEETING
STANTON CITY HALL, 7800 KATELLA AVENUE, STANTON, CA
TUESDAY, MARCH 25, 2025
SPECIAL CLOSED SESSION - 5:30 P.M.

JOINT REGULAR SESSION - 6:30 P.M.

In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (714) 890-4245 or via e-mail at [email protected].

Notification prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

In order to join the meeting via telephone please follow the steps below:

1. Dial the following phone number +1 (669) 444-9171 (US).

2. Dial in the following Meeting ID: (894 6257 1538) to be connected to the meeting.

In order to join the meeting via electronic device please utilize the Zoom URL link below:
• https://us02web.zoom.us/j/89462571538?pwd=JOiTJK5fI6wv64YAXRnz5DNfIavnJz.1

Should you have any questions related to participation in the City Council Meeting, please contact the City Clerk’s Office at (714) 890-4245 or via e-mail at [email protected].

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 2 of 11 ends

The City Council agenda and supporting documentation is made available for public review and inspection during normal business hours in the Office of the City Clerk, 7800 Katella Avenue, Stanton California 90680 immediately following distribution of the agenda packet to a majority of the City Council. Packet delivery typically takes place on Thursday afternoons prior to the regularly scheduled meeting on Tuesday. The agenda packet is also available for review and inspection on the city’s website at www.StantonCA.gov.

The City Council is required to comply with the Levine Act (Government Code § 84308). The purpose of the Levine Act is to prevent public officials from being influenced by campaign contributions from parties and other financially interested persons appearing before them and to prevent officials from using their position of authority to unduly influence applicants to make contributions to campaigns. The Levine Act only applies to certain matters brought to the City Council, including permits, licenses, some contracts, and other entitlements for use. While these matters are pending and for 12 months after a decision has been made, a Council Member may not accept, solicit, or direct campaign contributions of more than $500 from parties/participants who have a financial interest in the proceedings, or their respective agents. In addition, a Council Member who has received such a contribution may be required to disclose the contribution and recuse themselves from consideration of an agenda item. This summary of the Levine Act does not constitute legal advice. Council members who need to recuse themselves from an agenda item may provide notice at any time during the Council meeting before consideration of the item. Under certain circumstances, contributions may be returned by the public official in order to participate in a decision or otherwise cure a potential violation.

1. CLOSED SESSION(5:30 PM)

2. ROLL CALL Council / Agency / Authority Member Barrios Council / Agency / Authority Member Taylor
Council / Agency / Authority Member Warren
Mayor Pro Tem / Vice Chairman Torres
Mayor / Chairman Shawver

3. PUBLIC COMMENT ON CLOSED SESSION ITEMS
Closed Session may convene to consider matters of purchase / sale of real property (G.C. §54956.8), pending litigation (G.C. §54956.9(a)), potential litigation (G.C. §54956.9(b)) or personnel items (G.C. §54957.6). Records not available for public inspection.

4. CLOSED SESSION
4A. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) Number of Potential Cases: 1
Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 3 of 11 ends

5. CALL TO ORDER STANTON CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY JOINT REGULAR MEETING (6:30 PM)

6. ROLL CALL Council / Agency / Authority Member Barrios Council / Agency / Authority Member Taylor
Council / Agency / Authority Member Warren
Mayor Pro Tem / Vice Chairman Torres
Mayor / Chairman Shawver

7. PLEDGE OF ALLEGIANCE

8. SPECIAL PRESENTATIONS AND AWARDS
A. Special presentation of awards to honor and recognize Stanton’s Women of Distinction 2025.

B. Townsend Public Affairs State and Federal Legislative report and update.

9. CONSENT CALENDAR
All items on the Consent Calendar may be acted on simultaneously, unless a Council/Board Member requests separate discussion and/or action.

CONSENT CALENDAR
9A. MOTION TO APPROVE THE READING BY TITLE OF ALL ORDINANCES AND RESOLUTIONS. SAID ORDINANCES AND RESOLUTIONS THAT APPEAR ON THE

PUBLIC AGENDA SHALL BE READ BY TITLE ONLY AND FURTHER READING WAIVED
RECOMMENDED ACTION:

City Council/Agency Board/Authority Board waive reading of Ordinances and Resolutions.
9B. APPROVAL OF WARRANTS
City Council approve demand warrants dated February 21, 2025 – March 6, 2025, in the amount of $835,949.37.

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 4 of 11 ends

9C. APPROVAL OF MINUTES
City Council/Successor Agency/Housing Authority approve Minutes of Joint Regular Meeting – March 11, 2025.
9D. RENEWAL OF DECLARATION THAT AN EMERGENCY CONDITION EXISTS

ARISING FROM DAMAGE TO THE WESTERLY END STANTON PARK PEDESTRIAN BRIDGE
Consideration of the City Council to continue declaring the repair an emergency. The westerly end pedestrian bridge at Stanton Park has been damaged and unusable since June 2023. The pedestrian bridge is a major pedestrian walkway serving many of the residents of the City.

RECOMMENDED ACTION:

1. City Council declare that this item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3); and

2. Find that the City Council continues declaring the repairs an emergency. 9E. AWARD A PROFESSIONAL SERVICES AGREEMENT TO EXECUTIVE FACILITIES SERVICES, INC. FOR JANITORIAL SERVICES
As the current contract is set to expire on June 30, 2025, City staff released a Request for Proposals (RFP) soliciting proposals to provide janitorial services to City facilities, with services to start July 1, 2025. Staff recommend awarding a three-year Agreement to Executive Facilities Services, Inc. in the amount not-to-exceed $255,000 or $85,000 annually.

RECOMMENDED ACTION:

1. City Council declare this action to be categorically exempt under the California Quality Act (“CEQA”), since the action herein does not constitute a “project” as defined by Section 15378 of the CEQA guidelines; and

2. Award a Professional Services Agreement to Executive Facilities Services, Inc. to provide janitorial services for a term of three years in an amount not-to-exceed $255,000 or $85,000 annually; and

3. Authorize the City Manager to bind the City of Stanton and Executive Facilities Services, Inc. in an Agreement to provide the services.

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 5 of 11 ends

9F. CITY SPONSORSHIP REQUEST – STANTON COMMUNITY FOUNDATION ANNUAL

CAR SHOW
Per the City’s Sponsorship Program, the Stanton Community Foundation is requesting co-sponsorship of the 22nd Annual Car Show. The sponsorship request is for in-kind consideration valued at $160. At its meeting on August 23, 2022, the City Council directed staff to bring all sponsorship requests to the Council for consideration until further notice.

RECOMMENDED ACTION:

1. City Council declare this project to be categorically exempt under the California Environmental Quality Act, Class 1, Section 15301c; and

2. Determine the status of the Stanton Community Foundation’s sponsorship request for a total in-kind value of $160.

END OF CONSENT CALENDAR

10. PUBLIC HEARINGS None.

11. UNFINISHED BUSINESS None.

12. NEW BUSINESS
12A. REQUEST FOR A SECOND EXTENSION OF EXPIRED COMMERCIAL CANNABIS

CULTIVATION PERMITS
At the April 23, 2024 City Council meeting, the City Council conducted the second reading of Ordinance No. 1142, extending expired commercial cannabis cultivation permits in exchange for certain fees. Ordinance No. 1142 became effective on May 23, 2024. The permit holders are now requesting a second extension.

RECOMMENDED ACTION:

1. City Council find that these actions are not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment) and even if they were considered a project, they would still be exempt from CEQA under State CEQA Guidelines Sections 15301, 15060(B)(3), and 15061(B)(3); and
Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 6 of 11 ends

2. At this time, staff is recommending Council deny the second extension request for expired cannabis cultivation permits and affirm that the extension period for both permit holders has terminated and become null and void based on a violation of the terms and conditions of the permit extension. Both permit holders missed the memorialized deadline to pay certain fees, and Stanton Municipal Code Section

5.77.105(C) states, “If a Permittee fails to timely pay a City invoice for any reason, the Cultivation Extension Period shall immediately terminate and become null and void without any liability to the City and/or any of its officials, employees, contractors, or volunteers, even if a Permittee has expended any money, time, and/or resources in furtherance of their respective cultivation business or operation. Permit holders still have until May 2027 to exercise their rights under the current extension. 12B. APPROVE RESOLUTION NO. 2025-07 TO ADOPT A SEWER CAPACITY CHARGE On September 10, 2024, the City Council approved a professional services agreement with Willdan Financial Services (Willdan) to complete a sewer capacity fee study to analyze the City’s costs of providing sewer collection services to new or expanded development within the City. The result of that project is the Sewer Capacity Fee Study report (“Study”) included as Attachment A. Staff is recommending the City Council approve Resolution No. 2025-07, which establishes a new sewer capacity charge of $487 per Equivalent Residential Unit (ERU) (Attachment B). The Resolution also includes a provision to update the sewer capacity charge annually, each July 1, beginning on July 1, 2026, based on the California Construction Cost Index.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Receive and file the Sewer Capacity Fee Study; and

3. Adopt Resolution No. 2025-07, entitled:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, ADOPTING A SEWER CAPACITY CHARGE.”
Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 7 of 11 ends

12C. SETTING OF PUBLIC HEARING TO CONSIDER ESTABLISHING A SEWER USER RATE FOR SEWER SERVICES FOR FISCAL YEAR 2025/26 THROUGH FISCAL YEAR 2029/30
On September 10, 2024, the City Council approved a professional services agreement with Willdan Financial Services (“Willdan”) to complete a sewer rate study to assist the City with developing cost-based sewer rates to fund the maintenance and capital improvement program for the City’s sewer system from Fiscal Years 2025/26 through 2029/30. Staff is seeking City Council approval of the Comprehensive Sewer Utility Rate Study report (“study”) (Attachment A). If the City Council approves the recommended fees, then City staff will return the final report for City Council approval and adoption at a public hearing on June 10, 2025.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378(b)(4) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly, or indirectly); and

2. Approve the Comprehensive Sewer Utility Rate Study report; and

3. Set the public hearing for Tuesday, June 10, 2025 at 6:30 p.m., to receive public comment regarding the proposed sewer rates.
12D. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA ADDING CHAPTER 1.14 TO THE STANTON MUNICIPAL CODE REGARDING THE

USE OF OFFICIAL INDICIA OF THE CITY OF STANTON AND AMENDING THE CITY

COUNCIL RULES OF ORDER
The City has recently adopted a new formal seal and logo. To ensure that these official indicia are used exclusively for authorized City purposes, staff developed the attached ordinance establishing clear guidelines for their use and incorporated necessary updates into the City Council Rules of Order for consistency. If approved, this Ordinance will add Chapter 1.14 to the Stanton Municipal Code (SMC) to provide a comprehensive framework for the lawful use of City indicia and specify penalties for any unauthorized or improper use.

RECOMMENDED ACTION:

1. City Council introduce Ordinance No. 1161 entitled:

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 8 of 11 ends

“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA ADDING CHAPTER 1.14 TO THE STANTON MUNICIPAL

CODE RELATING TO THE USE OF OFFICIAL INDICIA OF THE CITY OF

STANTON AND FINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”; and

2. Find that this Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to Cal. Code Regs. §§ 15378(a) and 15061(b)(3); and

3. Repeal Resolution No. 90-64 approved by the City Council on October 9, 1990, entitled “A Resolution of the City Council of the City of Stanton Establishing a Policy for Use and Dissemination of the Official City Logo”; and

4. Adopt Resolution No. 2025-06 approving the City Council Rules of Order dated March 25, 2025, entitled:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON,

CALIFORNIA, AMENDING THE CITY COUNCIL RULES OF ORDER,
DATED MARCH 25, 2025”; and

5. Set said ordinance for adoption at the April 8, 2025, regularly scheduled City Council meeting.
12E. OPTIONS FOR FIREWORKS MANAGEMENT FOR 2025 4TH OF JULY SEASON At the November 12, 2024 City Council meeting, Council Member Taylor requested a study session to discuss potential City strategies to deter the sale, purchase, and use of illegal fireworks within the City in preparation for the upcoming 2025 4th of July season.

At its meeting of November 26, 2024, the City Council received consensus and directed staff to proceed with preparing a study session for March 2025.

RECOMMENDED ACTION:

1. City Council declare that the proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA Receive and file; and

2. Provide direction to City staff.

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 9 of 11 ends

12F. APPROVE THE BUDGET ADJUSTMENTS PROPOSED FOR THE MID-YEAR BUDGET UPDATE FOR FISCAL YEAR 2024/25
During the course of the fiscal year, it is often necessary to adjust estimated revenues and expenditure appropriations in various program areas, projects, and funds. Revenue for all City funds is increasing by $1.1 million and expenditure for all City funds is decreasing by $815,662. Half of the revenue increase ($617,915) is to adjust investment income due to increased interest earned from the City’s investment portfolio. In Fiscal Year 2023/24, the City earned over $2.4 million in interest income. This trend has continued through the first half of the current fiscal year. All of the proposed changes to the Fiscal Year 2024/25 Adopted Operating Budget, including detailed explanations, are presented in Attachment A.

General Fund estimated revenues are increasing by $1.4 million, and General Fund estimated expenditures are increasing by $1.5 million resulting in a net reduction in fund balance of $91,446. As a result, the General Fund’s revised available fund balance is expected to be $34.6 million by June 30, 2025. The General Fund’s estimated fund balance for June 30, 2025, was $32.4 million when the City’s budget was originally adopted last year. The primary reason why the revised balance of $34.6 million is higher than $32.4 million from when the City’s budget was originally adopted is due to the actual fund balance as of June 30, 2024, being better than staff’s projections due to actual revenues exceeding the final budget and actual expenditures being lower than the final budget.

In addition, the proposed budget adjustments include a reduction in the City’s Capital Improvement Program (CIP) by $1.4 million to reflect project savings from completed projects as well as updated engineer’s estimates for existing projects (Attachment E).

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Approve the City’s personnel staffing plan to add one limited term full time Code Enforcement Officer position; and,

3. Approve the proposed budget adjustments summarized in Attachment A.

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 10 of 11 ends

13. ORAL COMMUNICATIONS - PUBLIC
At this time members of the public may address the City Council/Successor Agency/Stanton Housing Authority regarding any items within the subject matter jurisdiction of the City Council/Successor Agency/Stanton Housing Authority, provided that NO action may be taken on non-agenda items.
• Members of the public wishing to address the Council/Agency/Authority during Oral Communications-Public or on a particular item are requested to fill out a REQUEST TO SPEAK form and submit it to the City Clerk. Request to speak forms must be turned in prior to Oral Communications-Public.
• When the Mayor/Chairman calls you to the microphone, please state your Name, slowly and clearly, for the record. A speaker’s comments shall be limited to a three (3) minute aggregate time period on Oral Communications and Agenda Items. Speakers are then to return to their seats and no further comments will be permitted. • Remarks from those seated or standing in the back of chambers will not be permitted.

All those wishing to speak including Council/Agency/Authority and Staff need to be recognized by the Mayor/Chairman before speaking.

14. WRITTEN COMMUNICATIONS None.

15. MAYOR/CHAIRMAN COUNCIL/AGENCY/AUTHORITY INITIATED BUSINESS 15A. COMMITTEE REPORTS/ COUNCIL/AGENCY/AUTHORITY ANNOUNCEMENTS At this time Council/Agency/Authority Members may report on items not specifically described on the agenda which are of interest to the community provided no discussion or action may be taken except to provide staff direction to report back or to place the item on a future agenda.
15B. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE MEETING At this time Council/Agency/Authority Members may place an item on a future agenda. 15C. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE STUDY

SESSION
At this time Council/Agency/Authority Members may place an item on a future study session agenda.

Currently Scheduled: None.

Stanton City Council Agenda Prepared by the Office of the City Clerk March 25, 2025

Page 11 of 11 ends

16. ITEMS FROM CITY ATTORNEY/AGENCY COUNSEL/AUTHORITY COUNSEL

17. ITEMS FROM CITY MANAGER/EXECUTIVE DIRECTOR
17A. ORANGE COUNTY SHERIFF’S DEPARTMENT
At this time the Orange County Sheriff’s Department will provide the City Council with an update on their current operations.

18. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, the foregoing agenda was posted at the Post Office, Stanton Community Services Center and City Hall, not less than 72 hours prior to the meeting. Dated this 20th day of March, 2025. s/ Patricia A. Vazquez, City Clerk/Secretary
February 21, 2025 - March 6, 2025
Payments to Vendors:

Electronic Transaction Nos. $ 145,935.46
Check Nos. 138908-138958(A) 251,852.27
Other Electronic Transactions ACH (B) 287,268.66
Total Payments to Vendors $ 685,056.39
Direct Deposit Payments (C):

Payroll dated February 27, 2025 150,892.98
TOTAL PAYMENTS $ 835,949.37
Notes:

A = Check number 138923 was voided.

B = These are electronic payments processed via a file exported from the City's Finance system and uploaded to the City's bank account. The City's Finance system designates these payment transactions as "ACH". A specific transaction number is not assigned.

C = Represents the total net payroll paid through direct deposit on pay date.

Demands listed on the attached
registers are accurate and funds
are available for payment thereof.
/s/ Hannah Shin-Heydorn /s/ Michelle Bannigan

CITY OF STANTON

WARRANT REGISTER
3561-3572
conform to the City of Stanton Annual
Budget as approved by the City Council.

Demands listed on the attached registers
City Manager Finance Director
Item: 9B
Click here to return to the agenda.

ATTACHMENT A

Page 1 of 10 ends

ATTACHMENT A

Page 2 of 10 ends

ATTACHMENT A

Page 3 of 10 ends

ATTACHMENT A

Page 4 of 10 ends

ATTACHMENT A

Page 5 of 10 ends

ATTACHMENT A

Page 6 of 10 ends

ATTACHMENT A

Page 7 of 10 ends

ATTACHMENT A

Page 8 of 10 ends

ATTACHMENT A

Page 9 of 10 ends

ATTACHMENT A

Page 10 of 10 ends

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 1 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

MINUTES OF THE CITY COUNCIL / SUCCESSOR AGENCY / HOUSING AUTHORITY

OF THE CITY OF STANTON
JOINT REGULAR MEETING MARCH 11, 2025

1. CLOSED SESSION None.

2. CALL TO ORDER STANTON CITY COUNCIL / SUCCESSOR AGENCY /

HOUSING AUTHORITY JOINT REGULAR MEETING
The City Council / Successor Agency / Housing Authority meeting was called to order at 6:35 p.m. by Mayor Pro Tem Torres.

3. PLEDGE OF ALLEGIANCE
Led by Ms. Genesis S. Cardel.

4. ROLL CALL

Present: Council/Agency/Authority Member Taylor, Council/Agency/Authority Member Warren, and Mayor Pro Tem/Vice Chairman Torres.

Absent: None.

Excused: Council/Agency/Authority Member Barrios and Mayor/Chairman Shawver.

5. SPECIAL PRESENTATIONS AND AWARDS
Ms. Patricia A. Vazquez, City Clerk, presented an update on the City’s homeless outreach activities.

6. CONSENT CALENDAR
Council Member Warren requested to pull Item 6J from the consent calendar for separate discussion.

Motion/Second: Taylor/Warren
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Item: 9C
Click here to return to the agenda.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 2 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

CONSENT CALENDAR
6A. MOTION TO APPROVE THE READING BY TITLE OF ALL ORDINANCES AND RESOLUTIONS. SAID ORDINANCES AND RESOLUTIONS THAT APPEAR ON

THE PUBLIC AGENDA SHALL BE READ BY TITLE ONLY AND FURTHER

READING WAIVED
The City Council/Agency Board/Authority Board waived reading of Ordinances and Resolutions.
6B. APPROVAL OF WARRANTS
The City Council approved demand warrants dated February 7, 2025 – February 20, 2025, in the amount of $4,417,508.98.
6C. APPROVAL OF MINUTES

1. The City Council/Successor Agency/Housing Authority approved Minutes of Joint Regular Meeting – February 25, 2025; and

2. The City Council approved Minutes of Special Meeting – March 3, 2025. 6D. CONTINUANCE OF THE PROCLAMATION OF THE EXISTENCE OF A LOCAL

EMERGENCY CAUSED BY HOMELESSNESS CRISIS
At its meeting of November 26, 2024, the City Council adopted a resolution proclaiming the existence of a local emergency. Based on the continuing impacts of homelessness on public health and safety within the City of Stanton, the City’s Council’s proclamation of the existence of a local emergency will continue until further notice.

1. The City Council declared that the proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA Receive and file; and

2. Received and filed the report.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 3 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
6E. AUTHORITY TO ADVERTISE FOR CONSTRUCTION OF FISCAL YEAR (FY) 2024/2025 SEWER REHABILIATION PROJECT (TASK CODE NO. 2025-301) The plans, specifications, and necessary documents for the FY 2024/2025 Sewer Rehabilitation Project are complete. The City Engineer is recommending City Council approve the specifications and plans for bidding, subject to revision by the City Engineer and the City Attorney, to ensure the construction contract is awarded in an efficient and timely manner. The Project plans and specifications are available in the City Engineer’s Office for review.

1. The City Council finds that this project is exempt from the California Environmental Quality Act (“CEQA”), Class 1, Section 15301(b) as maintenance, repair, and minor alteration of existing publicly owned sewerage utilities; and

2. Approved the bid specifications and plans, subject to revisions required by the City Engineer and the City Attorney; and

3. Authorized and advertise for bids the FY 2024/2025 Sewer Rehabilitation Project.
6F. AWARD OF CONSTRUCTION CONTRACT FOR THE FISCAL YEAR (FY) 2023/24 CITYWIDE STREET RESURFACING PROJECT (TASK CODE NO. 2024- 101) AND APPROPRIATION OF FUNDS
Eight bids for the FY 2023/24 Citywide Street Resurfacing Project were opened on February 4, 2025. Based on the post-bid analysis of the bids received, staff has determined the bid submitted by R.J. Noble Company to be the lowest responsible and responsive bid at $1,224,741.77. An appropriation of $585,000 from the City’s Gas Tax Fund’s (#211) fund balance is needed to fund this contract.

1. The City Council finds that this project is exempt from the California Environmental Quality Act (“CEQA”), Class 1, and 15301(c) as repair, maintenance, and minor alteration of existing streets, sidewalks, gutters, and similar facilities; and

2. Accepted Dash Construction Company, Inc.’s Request for Withdrawal of Bid; and

3. Awarded a construction contract for the FY 2023/24 Citywide Street Resurfacing Project to R.J. Noble Company for the bid amount of $1,224,741.77 and rejected all other bids; and

4. Authorized the City Manager to bind the City of Stanton and R.J. Noble Company in a contract for the construction; and
DRAFT
Joint Regular Meeting – March 11, 2025 - Page 4 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

5. Authorized the City Manager to approve contract change orders, not to exceed $122,474; and

6. Appropriate $585,000 from the City’s Gax Tax Fund (#211) to increase the Fiscal Year 2024-25 budget for this project from $824,083 to $1,409,083. 6G. JANUARY 2025 INVESTMENT REPORT
The Investment Report as of January 31, 2025, has been prepared in accordance with the City’s Investment Policy and California Government Code Section 53646.

1. The City Council finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Received and filed the Investment Report for the month of January 2025. 6H. JANUARY 2025 INVESTMENT REPORT (SUCCESSOR AGENCY)
The Investment Report as of January 31, 2025, has been prepared in accordance with the City’s Investment Policy and California Government Code Section 53646.

1. The Successor Agency finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Received and filed the Investment Report for the month of January 2025. 6I. JANUARY 2025 GENERAL FUND REVENUE AND EXPENDITURE REPORT; HOUSING AUTHORITY REVENUE AND EXPENDITURE REPORT; STATUS OF

CAPITAL IMPROVEMENT PROGRAM
The Revenue and Expenditure Reports for the month ended January 31, 2025, have been provided to the City Manager in accordance with Stanton Municipal Code Section 2.20.080 (D) and is being provided to the City Council. This report includes information on both the City’s General Fund and the Housing Authority Fund.

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

2. Received and filed the General Fund and Housing Authority Fund January 2025 Revenue and Expenditure Reports and Status of Capital Improvement Projects for the month ended January 31, 2025.

END OF CONSENT CALENDAR
6J. RENEWAL OF DECLARATION THAT AN EMERGENCY CONDITION EXISTS

ARISING FROM DAMAGE TO THE WESTERLY END STANTON PARK

PEDESTRIAN BRIDGE
Consideration of the City Council to continue declaring the repair an emergency.

The westerly end pedestrian bridge at Stanton Park has been damaged and unusable since June 2023. The pedestrian bridge is a major pedestrian walkway serving many of the residents of the City.

Motion/Second: Warren/Taylor
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

1. The City Council declared that this item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3); and

2. Finds that the City Council continues declaring the repairs an emergency.

7. PUBLIC HEARINGS None.

8. UNFINISHED BUSINESS None.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 6 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

9. NEW BUSINESS
9A. CITY COUNCIL CONSIDERATION FOR APPOINTMENTS TO FILL TEN (10)

VACANCIES ON THE STANTON COMMUNITY SERVICES COMMISSION,

STANTON PLANNING COMMISSION, AND STANTON PUBLIC SAFETY

COMMITTEE FOR TERMS COINCIDING WITH THE CITY COUNCIL ELECTION Consideration for appointments to fill ten (10) vacancies on the Stanton Community Services Commission, Stanton Planning Commission, and Stanton Public Safety Committee. There are currently four (4) vacancies within the Stanton Community Services Commission, three (3) vacancies within the Stanton Planning Commission, and three (3) vacancies within the Public Safety Committee due to unexpected vacancies and terms expired due to the November 2024 General Municipal Election.

The Mayor/Council Member holding the seat number corresponding to the numbered seat on the Commission/Committee shall be responsible for the appointment of one Commissioner/Committee Member, with majority approval of the City Council. The terms of office shall coincide with the term of office of the Mayor or Council Member who made the appointment. Additionally, Section 2.06.030 of the Stanton Municipal Code provides that the City Council, by majority vote, may waive the requirement to interview persons previously appointed by the City Council and who are requesting re-appointment to another term.

Staff report by Ms. Patricia A. Vazquez, City Clerk.

1. The City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. The City Council conducted interviews with the following applicants; and • Mr. Brian A. Barker
o In-person interview
• Ms. Genesis S. Cardel
o In- person interview
• Ms. Deborah Donathan
o In-person interview
• Mr. Thomas Frazier
o In-person interview
• Ms. Debi Grand
o In-person interview
• Mr. Douglas Makino
o In-person interview
• Ms. Amy McBride
o In-person interview
DRAFT
Joint Regular Meeting – March 11, 2025 - Page 7 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
• Ms. Melissa Meza-Saldana
o In-person interview
• Mr. DeWayne Normand
o In-person interview
• Mr. Martin H. Ross
o Via submitted letter in lieu of in-person interview.
• Mr. Marlon-Ray Velasco
o In-person interview
MAYOR PRO TEM TORRES CALLED FOR A RECESS AT 7:47 PM.

THE CITY COUNCIL RECONVENED AT 7:52 PM.

3. Made appointments to fill seats #1-Taylor, #3-Torres, #4-Warren, and #5-Barrios on the Stanton Community Services Commission; and
Community Services Commission:

Seat #1 (Taylor):

Council Member Taylor selected Mr. Marlon-Ray Velasco to fill the vacancy within Seat #1 on the Stanton Community Services Commission.

Motion/Second: Taylor/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. Marlon-Ray Velasco was appointed to fill Seat #1 (Taylor) on the Stanton Community Services Commission.

Seat #3 (Torres):

Mayor Pro Tem Torres selected Mr. Brian A. Barker to fill the vacancy within Seat #3 on the Stanton Community Services Commission.

Motion/Second: Torres/Warren
Motion carried by the following vote:

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 8 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. Brian A. Barker was appointed to fill Seat #3 (Torres) on the Stanton Community Services Commission.

Seat #4 (Warren):

Council Member Warren selected Ms. Amy McBride to fill the vacancy within Seat #4 on the Stanton Community Services Commission.

Motion/Second: Warren/Taylor
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Ms. Amy McBride was appointed to fill Seat #4 (Warren) on the Stanton Community Services Commission.

Seat #5 (Barrios):

Council Member Barrios selected Ms. Genesis S. Cardel to fill the vacancy within Seat #5 on the Stanton Community Services Commission.

Motion/Second: Torres/Taylor
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Ms. Genesis S. Cardel was appointed to fill Seat #5 (Barrios) on the Stanton Community Services Commission.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 9 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

4. Made appointments to fill seats #3-Torres, #4-Warren, and #5-Barrios on the Stanton Planning Commission; and
Planning Commission:

Seat #3 (Torres):

Mayor Pro Tem Torres selected Ms. Melissa Meza-Saldana to fill the vacancy within Seat #3 on the Stanton Planning Commission.

Motion/Second: Torres/Taylor
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Ms. Melissa Meza-Saldana was appointed to fill Seat #3 (Torres) on the Stanton Planning Commission.

Seat #4 (Warren):

Council Member Warren selected Mr. Thomas Frazier to fill the vacancy within Seat #4 on the Stanton Planning Commission.

Motion/Second: Warren/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. Thomas Frazier was appointed to fill Seat #4 (Warren) on the Stanton Planning Commission.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 10 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
Seat #5 (Barrios):

Council Member Barrios selected Mr. DeWayne Normand to fill the vacancy within Seat #5 on the Stanton Planning Commission.

Motion/Second: Taylor/Warren
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. DeWayne Normand was appointed to fill Seat #5 (Barrios) on the Stanton Planning Commission.

5. Made appointments to fill seats #1-Taylor, #4-Warren, and #5-Barrios on the Stanton Public Safety Committee.

Public Safety Committee:

Seat #1 (Taylor):

Council Member Taylor selected Ms. Debi Grand to fill the vacancy within Seat #1 on the Stanton Public Safety Committee.

Motion/Second: Taylor/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Ms. Debi Grand was appointed to fill Seat #1 (Taylor) on the Stanton Public Safety Committee.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 11 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
Seat #4 (Warren):

Council Member Warren selected Mr. Douglas Makino to fill the vacancy within Seat #4 on the Stanton Public Safety Committee.

Motion/Second: Warren/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. Douglas Makino was appointed to fill Seat #4 (Warren) on the Stanton Public Safety Committee.

Seat #5 (Barrios):

Council Member Barrios selected Mr. Martin H. Ross to fill the vacancy within Seat #5 on the Stanton Public Safety Committee.

Motion/Second: Taylor/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

Mr. Martin H. Ross was appointed to fill Seat #5 (Barrios) on the Stanton Public Safety Committee.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 12 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING
9B. AUTHORIZATION FOR COUNCIL MEMBERS TO ATTEND UPCOMING

MEETINGS AND EVENTS
Pursuant to the City of Stanton Travel and Reimbursement policy, a Council Member must receive City Council approval prior to a trip if the trip will exceed $500.

Council will consider the following requests for travel:
• Mayor David J. Shawver
o Event: Southern California Association of Governments (SCAG) 2025 Regional Conference and General Assembly
o Location: Palm Desert, CA
o Dates: May 1 – 2, 2025
• Council Member Victor Barrios
o Event: Southern California Association of Governments (SCAG) 2025 Regional Conference and General Assembly
o Location: Palm Desert, CA
o Dates: May 1 – 2, 2025
Staff report by Ms. Patricia A. Vazquez, City Clerk.

Motion/Second: Taylor/Torres
Motion carried by the following vote:

AYES: 3 (Taylor, Torres, and Warren)
NOES: None
ABSTAIN: None
ABSENT: 2 (Barrios and Shawver)
Motion unanimously carried:

1. The City Council finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Authorized both the Mayor and Council Member Barrios’ attendance at the proposed meeting as desired and authorized staff to make a budget adjustment as needed to cover travel costs.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 13 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

10. ORAL COMMUNICATION None.

11. WRITTEN COMMUNICATIONS None.

12. MAYOR/CHAIRMAN/COUNCIL/AGENCY/AUTHORITY INITIATED BUSINESS 12A. COMMITTEE REPORTS/COUNCIL/AGENCY/AUTHORITY ANNOUNCEMENTS Council Member Warren reported on his attendance at the Ribbon Cutting Ceremony for the Stanton Family Resource Center for the completion of the playground renovations, which was held on March 4, 2025 and expressed his gratitude to Orange County Supervisor Doug Chaffee and City staff in bringing this exciting project to life for the community.
12B. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE COUNCIL

MEETING
None.
12C. COUNCIL/AGENCY/AUTHORITY INITIATED ITEMS FOR A FUTURE STUDY

SESSION
None.

13. ITEMS FROM CITY ATTORNEY/AGENCY COUNSEL/AUTHORITY COUNSEL None.

14. ITEMS FROM CITY MANAGER/EXECUTIVE DIRECTOR
None.
14A. ORANGE COUNTY FIRE AUTHORITY
At this time the Orange County Fire Authority will provide the City Council with an update on their current operations.

Division Chief Matthew Schuetz provided the City Council with an update on their current operations.

DRAFT
Joint Regular Meeting – March 11, 2025 - Page 14 of 14

THESE MINUTES ARE ISSUED FOR INFORMATION ONLY AND ARE SUBJECT TO

AMENDMENT AND APPROVAL AT NEXT MEETING

15. ADJOURNMENT Motion/Second: Torres/
Motion carried at 8:16 p.m.
_______________________________________

MAYOR/CHAIRMAN
ATTEST:
_______________________________________

CITY CLERK/SECRETARY
1 CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: RENEWAL OF DECLARATION THAT AN EMERGENCY CONDITION

EXISTS ARISING FROM DAMAGE TO THE WESTERLY END STANTON

PARK PEDESTRIAN BRIDGE
REPORT IN BRIEF:

Consideration of the City Council to continue declaring the repair an emergency. The westerly end pedestrian bridge at Stanton Park has been damaged and unusable since June 2023. The pedestrian bridge is a major pedestrian walkway serving many of the residents of the City.

RECOMMENDED ACTION:

1. City Council declare that this item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) and 15060(c)(3); and

2. Find that the City Council continues declaring the repairs an emergency.

BACKGROUND:

In late June 2023, a vehicle collided with the Westerly End Pedestrian Bridge at Stanton Park (“the pedestrian bridge”), causing significant damage to the pedestrian bridge. Due to immediate safety concerns, the pedestrian bridge was promptly closed and secured.

However, these fixes are only temporary, and the City will need to procure additional services immediately to make additional repairs to the pedestrian bridge.

On November 12, 2024, City Council adopted Resolution 2024-36, which authorized that an emergency condition exists arising from damage to the Westerly End Stanton Park Pedestrian Bridge.

Item: 9D
Click here to return to the agenda.
2 ANALYSIS/JUSTIFICATION:

The contractor is anticipating obtaining both permits and starting the fabrication of the bridge this month. The bridge fabrication is expected to take four weeks. Construction is projected to begin in late April 2025 and is estimated to take 40 working days to complete.

FISCAL IMPACT:

None.

ENVIRONMENTAL IMPACT:

None.

LEGAL REVIEW:

None.

PUBLIC NOTIFICATION:

Notifications were performed through the normal agenda process.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 3: Provide a quality infrastructure.

Prepared by: Cesar Rangel P.E., Director of Public Works/City Engineer Approved by: Hannah Shin-Heydorn, City Manager
1 CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: AWARD A PROFESSIONAL SERVICES AGREEMENT TO EXECUTIVE FACILITIES SERVICES, INC. FOR JANITORIAL SERVICES
REPORT IN BRIEF:

As the current contract is set to expire on June 30, 2025, City staff released a Request for Proposals (RFP) soliciting proposals to provide janitorial services to City facilities, with services to start July 1, 2025. Staff recommend awarding a three-year Agreement to Executive Facilities Services, Inc. in the amount not-to-exceed $255,000 or $85,000 annually.

RECOMMENDED ACTION:

2. Award a Professional Services Agreement to Executive Facilities Services, Inc. to provide janitorial services for a term of three years in an amount not-to-exceed $255,000 or $85,000 annually; and

3. Authorize the City Manager to bind the City of Stanton and Executive Facilities Services, Inc. in an Agreement to provide the services.

BACKGROUND:

The City is responsible for maintaining the cleanliness of City facilities, which include City Hall/Community Center, Central Park restrooms and community building, Corporate Yard, Family Resource Center, and Harry M. Dotson Park restrooms. Routine janitorial services are necessary to maintain the cleanliness of these facilities and encourage the use of City facilities (events, visiting the parks, etc.), provide City staff with a good work environment, and promote a positive image of the City to the general public.

Item: 9E
Click here to return to the agenda.
2 ANALYSIS/JUSTIFICATION:

A RFP was issued on January 9, 2025 with a proposal due date of February 11, 2025.

Twelve firms provided proposals: Base Hill, Inc., Coastal Building Services, Inc., Executive Facilities Services, Inc., FAMMO Cleaning Service, LLC, JJ Property Maintenance Network, Inc., Master Janitorial, LLC, Omni Enterprise, Inc., Premier Property Preservation, LLC, Priority Building Services, LLC, Santa Fe Janitorial Services, Inc, Slate USA, Inc., and Velociti Services.

An internal City review committee consisting of the Facilities Maintenance Supervisor, Civil Engineer, and Community Services Coordinator evaluated the proposals. Based on a total possible score of 100 points, the review committee established their scoring and ranking on criteria that included past performance record, approach to work, and cost control. The contractors were ranked as follows:

Rank Contractor Fee Proposal*
1 Executive Facilities Services, Inc. $ 81,364.20
2 Omni Enterprise, Inc. $ 89,106.00
3 Base Hill, Inc. $ 87,090,36
4 Priority Building Services, LLC $ 98,016.00
5 Premier Property Preservation, LLC $ 135,850.08
6 Coastal Building Services, Inc. $ 94,740.00
7 Santa Fe Janitorial Services, Inc. $ 106,680.00
8 Slate USA, Inc. $ 205,836.00
9 Velociti Services $ 165,474.84
10 JJ Property Maintenance Network,
Inc. $ 142,308.00
11 FAMMO Cleaning Service, LLC $ 110,580.00
12 Master Janitorial, LLC $ 82,980.00
*The fee proposal amount is based on annual routine maintenance costs (monthly x 12) for janitorial services for all City facilities listed in the RFP.

Per the City’s Purchasing and Contracting Guidelines, proposals must be evaluated using the Qualification-Based Selection process in accordance with Public Law 92-582, which requires that the selection of professional services be based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services at a fair and reasonable price.

Based on the results of the RFP process, Executive Facilities Services, Inc. demonstrates competence through their proposal and are qualified to provide professional janitorial services. Executive Facilities Services, Inc. has successfully provided similar services to other cities such as Banning, Costa Mesa, and Thousand Oaks.

Staff recommends entering into a three (3) year professional services agreement with two (2) optional one-year extensions with Executive Facilities Services, Inc. in an amount notto-exceed $255,000 or $85,000 annually. 3 FISCAL IMPACT:

The proposed Fiscal Year 2025/2026 operating budget will include sufficient funds for this service in Account No. 101-3200-608100.

ENVIRONMENTAL IMPACT:

The action requested in this report is not categorized as a project (has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment), and therefore, is categorically exempt under the California Environmental Quality Act.

LEGAL REVIEW:

None.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 3: Provide a quality infrastructure.

PUBLIC NOTIFICATION:

Notifications were performed through the normal agenda process.

Prepared by: Han Sol Yoo, P.E., Civil Engineer
Reviewed by: Cesar Rangel, P.E., Director of Public Works/City Engineer Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. Professional Services Agreement
55414.00000\32996936.2
- 1 -
55414.00000\32996936.2

CITY OF STANTON

PROFESSIONAL SERVICES AGREEMENT
FOR

JANITORIAL SERVICES

1. PARTIES AND DATE.

This Agreement is made and entered into this day of , 20___, by and between the City of Stanton, a municipal organization organized under the laws of the State of California with its principal place of business at 7800 Katella Avenue, Stanton, California 90680 (“City”) and Executive Facilities Services, Inc., a Corporation, with its principal place of business at 6865 Weaver Street, Riverside, CA 92504 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of professional janitorial services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing professional janitorial services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such services for the Janitorial Services project (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional janitorial services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from July 1, 2025 to June 30, 2028, unless earlier terminated as provided herein. The City Manager shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than two additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

Attachment: A
Click here to return to the agenda.
55414.00000\32996936.2
- 2 -
55414.00000\32996936.2

3.2.1 Independent Contractors, Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision.

Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant shall complete, execute, and submit to City a Request for Taxpayer Identification Number and Certification (IRS FormW-9) prior to commencement of any Services under this Agreement. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference.

Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

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

3.2.5 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates the Public Works Director, or his or her designee, as the City’s contact for the implementation of the Services hereunder. 55414.00000\32996936.2
- 3 -
55414.00000\32996936.2
Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.6 Consultant’s Representative. Consultant hereby designates Martin Borboa, or his or her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations , Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.
55414.00000\32996936.2
- 4 -
55414.00000\32996936.2

3.2.10.1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit.

Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.
(b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 each accident.
(c) Professional Liability: Professional Liability insurance with minimum limits of $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.).

If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
(d) Workers’ Compensation: Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability 55414.00000\32996936.2
- 5 -
55414.00000\32996936.2
Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.

3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
(a) The policy or policies of insurance required by Section 3.2.10.2 (a) Commercial General Liability shall be endorsed to provide the following:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional
insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to “ongoing operations”; (2) exclude “contractual liability”; (3) restrict coverage to “sole” liability of Consultant; or (4) contain any other exclusions contrary to the Agreement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(b) The policy or policies of insurance required by Section 3.2.10.2 (b) Automobile Liability and (d) Professional Liability shall be endorsed to provide the following:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(c) The policy or policies of insurance required by Section 3.2.10.2 (e) Workers’ Compensation shall be endorsed to provide the
following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City 55414.00000\32996936.2
- 6 -
55414.00000\32996936.2
except ten (10) days shall be allowed for non-payment of premium.

3.2.10.4 Primary and Non-Contributing Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

3.2.10.6 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.10.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement.

In the event that the Consultant’s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.

3.2.10.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under the Consultant’s policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with 55414.00000\32996936.2
- 7 -
55414.00000\32996936.2
the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant’s policies.

3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed TWO-HUNDRED FIFTY-FIVE THOUSAND DOLLARS ($255,000.00) (“Total Compensation”) for the entire term of the contract, and shall not exceed EIGHTY-FIVE THOUSAND DOLLARS ($85,000.00) annually without written approval of City’s Public Works Director, or his or her designee. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation.

Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, 55414.00000\32996936.2
- 8 -
55414.00000\32996936.2
Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees, agents and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 55414.00000\32996936.2
- 9 -
55414.00000\32996936.2

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

Executive Facilities Services, Inc.
6865 Weaver Street
Riverside, CA 92504
Attn: Martin Borboa, Project Manager / Operations Manager City:

City of Stanton
7800 Katella Avenue
Stanton, CA 90680
Attn: Cesar Rangel, Department of Public Works &
Engineering
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant.

Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing 55414.00000\32996936.2
- 10 -
55414.00000\32996936.2
furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information (“Proprietary Information”) unless the City’s legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant’s objection to the City’s release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either:
(1) Consultant fails to fully indemnify, defend (with City’s choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and nonappealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

3.5.6 Indemnification.

To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses.

Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.

If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, 55414.00000\32996936.2
- 11 -
55414.00000\32996936.2
which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

The obligation to indemnify, as provided herein, shall survive the termination or expiration of this Agreement.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.6 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.8 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.9 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.10 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or 55414.00000\32996936.2
- 12 -
55414.00000\32996936.2
service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.12 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.13 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.14 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.15 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.16 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.17 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.19 Declaration of Political Contributions. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve-month period by the Consultant and all of Consultant’s employees, including 55414.00000\32996936.2
- 13 -
55414.00000\32996936.2
any employee(s) that Consultant intends to assign to perform the Services described in this Agreement.

3.20 Subcontracting.

3.20.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[Signatures on following page.]
55414.00000\32996936.2
- 14 -
55414.00000\32996936.2
IN WITNESS WHEREOF, the parties have executed this Professional Services Agreement on this ____ day of __________, 202_.

CITY OF STANTON EXECUTIVE FACILITIES SERVICES, INC.

By:

Hannah Shin-Heydorn
City Manager
By:

Name:

Title:

ATTEST:

By:

Patricia Vazquez
City Clerk
By:

Name:

Title:

APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
55414.00000\32996936.2
A-1
EXHIBIT “A”

SCOPE OF SERVICES

Page 1 of 38 ends

Public Works & Engineering Department
7800 Katella Avenue
Stanton, CA 90680
(714) 379-9222 | StantonCA.gov
Approved for Advertising:
______________________
Public Works Director/City Engineer
[email protected]
(714) 890-4203
Issue Date: Thursday, January 9, 2025
Optional Site Meeting: Wednesday, January 22, 2025 at 10:00 a.m.

Deadline for Questions: Monday, January 27, 2025
Proposal Due Date: Tuesday, February 11, 2025, at 3:00 p.m.

Presentation/Interviews: TBD (as necessary)

Page 2 of 38 ends

SECTION I. GENERAL DESCRIPTION AND INTRODUCTION………………………………………………3 SECTION II. SCOPE OF SERVICES……………………………………………………………………………………………….. 4 SECTION III. SUBMISSION REQUIREMENTS……………………………………………………………………………. 5 SECTION IV. SELECTION CRITERIA………………………………………………………………………………………………..7 SECTION V. SELECTION PROCESS……………………………………………………………………………………………… 8 SECTION VI. SUBMISSION DEADLINE………………………………………………………………………………………. 8 SECTION VII. REQUESTS FOR ADDITIONAL INFORMATION…………………………………………… 9 SECTION VIII. TAXES AND LICENSES………………………………………………………………………………………….. 10 SECTION IX. PAYMENT TO CONTRACTOR…………………………………………………………………………………..10 SECTION X. INSURANCE…………………………………………………………………………………………………………………. 11 SECTION XI. TERMINATION FOR CONVENIENCE OF THE CITY……………………………………… 12 SECTION XII. INDEPENDENT CONTRACTOR…………………………………………………………………………. 12 SECTION XIII. CONTRACT………………………………………………………………………………………………………………… 12 SECTION XIV. GENERAL CONDITIONS……………………………………………………………………………………… 13 SECTION XV. PREVAILING WAGE………………………………………………………………………………………………… 13 APPENDIX A: SCOPE OF WORK
APPENDIX B: BID SCHEDULE
APPENDIX C: PROPOSAL ACKNOWLEDGEMENT FORM
APPENDIX D: SAMPLE PROFESSIONAL SERVICES AGREEMENT

Page 3 of 38 ends

The City of Stanton (“City”) is requesting proposals from qualified professional contractors to provide janitorial services for five (5) City facilities.

Proposals must conform to the requirements of this Request for Proposal (RFP) and proposals must be submitted in a sealed envelope to the Department of Public Works and Engineering no later than 3:00 p.m. on Tuesday, February 11, 2025. The Contractor contract is anticipated to be awarded at a June City Council meeting. The City reserves the right to waive any irregularity in any proposal, or to reject any proposal that does not comply with this RFP. The city alone, using the criteria determined by the city, will select the qualified candidate.

The successful Contractor will be required to enter into an agreement with the city, which will include the requirements of this RFP, as well as other requirements to be specified at a later date. By submitting a proposal, the Contractor agrees to all of the terms of this RFP.

An OPTIONAL site meeting will be held on Wednesday, January 22, 2025 starting at 10:00 a.m. Please meet at City of Stanton City Hall at 7800 Katella Avenue, Stanton, CA.

Please direct any questions by the deadline for questions listed on the cover page of this RFP to Han Sol Yoo, P.E., Civil Engineer, via email at [email protected].

The City of Stanton is seeking qualified contractors with a minimum of five (5) years of experience providing custodial services similar to those requested in this Scope of Work. The qualified contractor selected will furnish all Labor and Equipment to provide custodial services at Stanton City Hall / Community Center, Corporate Yard, the Family Resource Center, Central Park, and Harry Dotson Park.

The Contractor is to provide all services as outlined below to the City of Stanton.

Services required work shall include, but are not necessarily limited to, those items noted below. Best industry practices and/or best management practices may require additional services not explicitly enumerated.

Page 4 of 38 ends

The Contractor shall provide all necessary machines, equipment, tools and labor, etc., as may be necessary to perform the work outlined herein. The Contractor shall deposit all trash in the refuse containers designated by the Public Works Director or his designee.

Scope of Work:

See Appendix A – Contract Scope of Services
Documentation / Records:

The Contractor shall provide the City with a detailed schedule which shall include the day and time each facility is serviced. Also, the contractor shall provide the City with a log that certifies the restrooms have been serviced at each facility. The City will periodically inspect all work performed by the Contractor per the log provided. The Public Works Director or his/her designee can request joint inspection with Contractor at their choosing.

The initial term for the Agreement shall be for three (3) years, with two (2) optional 1-year extensions at the sole discretion of the City. The janitorial services listed on the Scope of Work shall begin July 1, 2025, and therefore, the Contractor’s submitted proposal shall be valid till the start of services.

Proposals and all other information and documents submitted in response to this RFP are subject to the California Public Records Act, which generally mandates the disclosure of documents in the possession of the City upon the request of any person, unless the content of the document falls within a specific exemption category.

Three (3) copies of the Services Proposal and one (1) copy of the Fee Proposal must be submitted containing the following elements:
• Proposers must submit three (3) bound copies of their proposal to the City for review.
• 8‐1/2" x 11" sheet sizes should be used for the text, with 11" x 17" sheet sizes for any fold‐out drawings.
• The proposal shall be limited to twenty (20) double-sided pages.

Resumes for proposed personnel, tabs, and cover/back pages will not be counted towards the page limit.
• Proposals should be as concise as possible and specific to this project.

Page 5 of 38 ends

LETTER OF TRANSMITTAL
A Letter of Transmittal shall be addressed to Han Sol Yoo, P.E., Civil Engineer, and, at a minimum, must contain the following information:
• Identification of the contractor. Identification shall include legal name of company, corporate address, telephone number and e-mail address of the contact person identified during the period of proposal evaluation.
• A statement representing that the contractor has thoroughly examined and become familiar with the work required in this Request for Proposal (RFP) and that it is capable of performing quality work to achieve the objectives of the City of Stanton, Public Works Department.
• Acknowledgment of receipt of all addenda, if any.
• A statement to the effect that the proposal shall remain valid in accordance to the start of services, July 1, 2025.
• Signature of the official authorized to bind contractor to the terms of the proposal.
• Signed statement attesting that all information submitted with the proposal is true and correct.
• Complete and submit the “Proposal Acknowledgement Form” as presented in APPENDIX C.
•

WRITTEN PROPOSAL
The Proposal shall consist of the following sections:

1. Letter of Transmittal. Contents of the Letter of Transmittal listed above.

2. Firm Structure and History. Including the firm’s experience managing projects similar in magnitude and scope, key personnel and structure (organization chart), credentials, background, and ownership of the firm.

3. Key personnel. List qualifications of personnel with resumes and a breakdown of responsibilities. The Firm’s project manager, who will be responsible for planning, coordinating, and conducting the majority of the work, must be identified and committed to the project. The City must approve changes to key personnel committed to work on the project subsequent to award of contract. Resumes must be submitted for key personnel who will be assigned to this project.

4. A narrative briefly describing the proposed approach using general descriptions for the activities.

Page 6 of 38 ends

5. A list of proposed sub-contractors, suppliers, and manufacturers, including their qualifications pertinent to this project.

6. A client reference list from previous City / Government Agency projects of similar scope and magnitude. List should include key personnel-contacts and their position with the agency.

7. Evidence of compliance with City insurance requirements.

8. Exceptions and Deviations. Contractor shall state any exceptions or deviations from the requirements of this RFP, segregating “technical” exceptions from “contractual” exceptions. Where the Contractor wishes to propose alternative approaches to meeting the City’s technical or contractual requirements, these shall be thoroughly explained. If no contractual exceptions are noted, Contractor will be deemed to have no objection to the contract requirements as set forth in APPENDIX D, “Sample Professional Services Agreement.”

9. Proposal Acknowledgement Form. Contractor shall complete and submit APPENDIX C, “Proposal Acknowledgement Form.” Failure to submit this signed form will result in the disqualification of the Contractor’s proposal.

SEPARATE FEE PROPOSAL
Contractor fee schedule included with the submittal but in a separate sealed envelope. The proposal shall include:
a. Bid Schedule (APPENDIX B) submitted in a separate, sealed envelope.

Contractor shall note any Consumer Price Index (CPI) and other annual cost increases, with the understanding that such year-over-year cost increases will be judged unfavorably by the City.

Additional information can be found under Section X, “Payment to Contractor,” below.

Submitted proposals will be evaluated based on the following factors, but may not be limited to just these factors:

Criteria Approximate
Weight
Staffing Capabilities / Technical Competence. Candidates shall have knowledge of the principles and practices of providing custodial / janitorial services.
25%

Page 7 of 38 ends

Approach to Work. Methodology to be implemented to
address and coordinate the various elements within the
program.
20%
Past Performance Record. Experience in completion of
services of similar complexity and scale for other agencies within Southern California is desirable. Efficiency and timeliness in completion of program requirements.
40%
Cost. Reasonableness of the firm’s fixed price and/or hourly rates, and competitiveness of quoted firm-fixed prices with other proposals received.
10%
Exceptions and deviations from the City’s standard
Professional Services Agreement. 5%
Per California law, the procurement of Professional Services must be selected on the basis of qualifications, or Qualifications Based Selection (QBS) in accordance with Public Law 92-582. The procurement of Professional Services can be one-time or multi-year. Professional services contracts have provisions for specific terms, compensation amounts, and scopes of services.

The City reserves the right to require in-person interviews with Contractors, if deemed necessary, after the evaluation of the written proposals. In this case, the Contractors of the three (3) highest-scoring written proposals will be invited to interviews prior to final selection of the Contractor.

Each RFP will be reviewed to determine if it meets the submittal requirements contained within this RFP. Failure to meet the requirements for the RFP will be cause for rejection of the proposal. The city may reject any proposal if it is conditional, incomplete, or contains irregularities. The City may waive an immaterial deviation in a proposal, but this shall in no way modify the proposal document or excuse the Contractor from compliance with the contract requirements if the Contractor is awarded the contract.

The successful Contractor to whom work is awarded shall, within ten (10) days after being notified, enter into a contract with the City for the work in accordance with the specifications and shall furnish all required documents necessary to enter into said contract. Failure of the successful bidder to execute the contract within the ten (10)-day window shall be just cause for the City to contract with the next responsible Contractor.

Page 8 of 38 ends

In order to be considered, the Contractor must submit three (3) copies of the Service Proposal and one (1) copy of the Fee Proposal to the following office:

City of Stanton
Public Works & Engineering Department
7800 Katella Avenue
Stanton, CA 90680-3162
Attention: Han Sol Yoo, P.E.

The proposal outer envelope shall be labeled:

PROPOSAL FOR JANITORIAL SERVICES
The proposal must be received at the office listed above no later than the date and time listed on the cover.

There is no expressed or implied obligation for the City to reimburse firms for any expenses incurred in preparing proposals in response to this request.

Materials submitted by respondents are subject to public inspection under the California Public Records Act (Government Code Sec. 6250 et seq.). Any language purporting to render the entire proposal confidential or proprietary will be ineffective and disregarded.

The City reserves the right to retain all proposals submitted, and to use any idea in a proposal, regardless of whether the proposal was selected.

Submission of a proposal indicates acceptance by the firm of the conditions contained in the RFP, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the selected firm.

All property rights, including publication rights of all reports produced by the selected firm in connection with services performed under this agreement, shall be vested in the City.

All questions and/or inquiries regarding this RFP shall be directed to:

Han Sol Yoo, P.E.

Civil Engineer

Page 9 of 38 ends

City of Stanton
7800 Katella Avenue
Stanton, CA 90680-3162
(714) 890-4204
Email: [email protected]
All questions and/or inquiries shall be submitted by January 27, 2025.

Contractors are responsible to verify receipt of any addenda issued. We are aware some of our e-mails go to “junk”. If you do not receive any addenda by Thursday, January 30, 2025, please verify any addenda was issued by contacting Han Sol Yoo by e-mail or telephone. Confirmation of receipt of all addenda is part of the Proposal Acknowledgement Form (APPENDIX C).

All taxes and licenses, including, but not limited to, a Stanton City Business License and appropriate Contractor’s license, required for this work shall be obtained at the sole expense of the Contractor.

The Contractor will be paid monthly for satisfactory work performed under this contract.

On or about the first of each month, the Contractor shall submit a detailed invoice and all reports required in the Agreement for work performed in the prior month.

1. This invoice shall be in accordance with the contract price and shall become the basis for payment.

2. This invoice shall be subject to review and approval by the Engineer.

3. All submitted invoices will be paid within 30 days of approval by the Engineer.

4. Any charges in the invoice not approved by the Engineer shall not be paid by the City.

Page 10 of 38 ends

A. The Contractor shall have Commercial General Liability insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit. Defense costs shall be paid in addition to the limits.

B. The Contractor shall have Automobile Insurance for owned and nonowned automotive equipment in the amount of not less than $1,000,000.

C. The selected firm shall furnish the City a certificate evidencing Workmen’s Compensation Insurance with limits of no less than $1,000,000 per accident and Comprehensive Professional Liability with limits no less than $2.000,000 per occurrence. The City shall be named as the Additional Insured. Certificates of Insurance must be accompanied by the applicable endorsements for the specific insurance policy.

D. A Certificate of Insurance or an appropriate binder shall bear an endorsement containing the following provisions:
“Solely as respect to services done by or on behalf of the named insured for the City of Stanton, it is agreed that the City of Stanton, the Successor Agency of the City of Stanton, its officers, employees, and agents are all included as additional insured under this general liability policy, and the coverage(s) provided shall be primary insurance and not contributing with any other insurance available to the City of Stanton, its officers and employees, and its agents, under any third-party liability policy.”
E. It is the Contractor’s responsibility to ensure that all sub-Contractors comply with the following:

Each sub-contractor that encroaches within the City’s right-ofway/property and affects (i.e., damages or impacts) City infrastructure must comply with the liability insurance requirements of the City.

Page 11 of 38 ends

The City reserves the right to terminate the “Professional Services Agreement” for the “convenience of the City” at any time by giving ten (10) days written notice to the Contractor of such termination and specifying the effective date thereof. All finished or unfinished drawings, maps, documents, field notes, and other materials produced and procured by the Contractor under the said aforementioned Agreement is, at the option of the City, City property and shall be delivered to the City by the Contractor within ten (10) working days from the date of such termination. The City will reimburse the Contractor for all acceptable work performed as set forth in the executed Agreement.

The Contractor’s relationship to the City in the performance of the Contractor’s services for this project is that of an independent contractor. The personnel performing said services shall at all times be under the Contractor’s exclusive direction and control and shall be employees of the Contractor, not employees of the City. The Contractor shall pay all wages, salaries, and other amounts due its employees in connection with the performance of said work, and shall be responsible for all employee reports and obligations, including, but not limited to, Social Security, income tax withholding, unemployment compensation, and Workers’ Compensation.

The Contract includes the Professional Services Agreement, the City’s RFP, the Contractor’s Proposal, and Exhibits.

The Political Reform Act and the City’s Conflict of Interest Code require that contractors be considered as potential filers of Statements of Economic Interest. Contractors, as defined by Section 18701, may be required to file an Economic Interest Statement (Form 700) within thirty (30) days of signing an Agreement with the City, on an annual basis thereafter while the contract remains in effect, and within thirty (30) days of completion of the contract.

Pre-contractual expenses are defined as expenses incurred by the Contractor in: (1) preparing the proposal; (2) submitting the proposal to the City; (3)

Page 12 of 38 ends

presenting during the selection interview; (4) negotiating with the City on any matter related to the proposal; (5) any other expenses incurred by the Contractor prior to an executed Agreement, and (6) attendance of City Council for Award of Contract.

The City shall not, in any event, be liable for any pre-contractual expenses incurred by the Contractor. Services shall not commence until the Agreement for Professional Contractor Services has been executed by the City.

The City reserves the right to withdraw this RFP at any time without prior notice. Further, the City makes no representations that any Agreement will be awarded to any Contractor responding to this RFP. The City expressly reserves the right to postpone reviewing the proposals for its own convenience and to reject any and all proposals responding to this RFP without indicating any reasons for such rejection(s). Any contract awarded for these Contractor engagements will be made to the Contractor who, in the opinion of the City, is best qualified.

Certain labor categories under this project are subject to prevailing wages as identified in the State of California Labor Code commencing in Section 1770 et. seq. These labor categories when employed for any work on or in the execution of a “Public Works” project require payment of prevailing wages including but not limited to, testing, potholing and non-design work.

Page 13 of 39 ends

APPENDIX A

SCOPE OF SERVICES

GENERAL CONDITIONS
A. City reserves the right to terminate the agreement pursuant to the following provisions:
(1) Whenever the Contractor shall default in performance for the Agreement in accordance with its terms and shall fail to cure such default within a period of ten (10) days after receipt from the City of a notice specifying the default; or
(2) City reserves the right to terminate the Agreement upon thirty (30) days’ notice to Contractor. Any such termination shall be affected by delivery to the Contractor of a Notice of Termination specifying whether termination is for default of the Contractor or for convenience of the City, the extent to which performance of work under the Agreement is terminated, and the date upon which such termination becomes effective.

B. The amount due the Contractor by reason of termination shall be the amount Contractor is entitled to for all work and services satisfactorily performed to the date of termination.

C. In the event of a partial termination, the portion of the sum, which is, payable with respect to the work under the continued portion of the Agreement shall be equitably adjusted by agreement between the Contractor and the City, and such adjustment shall be evidenced by an amendment to the Agreement.

No subcontractors will be employed by the Contractor unless specifically approved by the City’s Facilities Supervisor. All persons engaged in the work will be employees of the Contractor, and the Contractor will be held directly responsible for their work and supervision. The Contractor will provide an adequate number of work force to work on a continuous basis with no rotation of staff members.

The Contractor hereby agrees to and shall hold the City, its elective and appointive boards, offices, agents and employees, harmless from any liability for damage or claims from damage for personal injury, including death, as well as from claims for property damage which may arise from Contractor’s or any of subcontractors operations under this agreement.

Page 14 of 39 ends

In view of the policy of the City with respect to endorsement of products, materials or equipment of any manufacturer, the Contactor shall not permit endorsements by photographs or written statements involving the City without prior written approval of the City through the Public Works Department.

All work under this contract shall be inspected by the Custodial Supervisor or his representative, to ensure compliance with the specifications.

Since the City cannot be responsible for losses of Contractor’s supplies, tools, or equipment, Contractors are hereby notified of their responsibility for providing proper identification and security for such items at their own expense.

The Contractor shall be responsible for all damages to City property caused by his employees. Such damage shall be repaired promptly by the Contractor to the satisfaction of the City, at no expense to the City.

The Contractor shall be responsible for payment of all of his payrolls, including withholding taxes, social security, unemployment compensation insurance, and for payment of his public liability insurance and employee bonds.

Payment for services shall be made to the Contractor once a month upon submission of an invoice consisting of an original and two copies, properly certified.

The City reserves the right to increase or decrease the cleaning of certain areas as circumstances may require. In the event of increased or decreased cleaning requirements, the Contractor shall submit in writing to the Janitorial Supervisor the change in man-hours of time and the additional cost or credit to the City. The cost or credit will be expected to be reasonably proportionate to the initial proposal price compared with square footage of cleaning area.

When the proposal is accepted by the City, it shall be confirmed by written amendment to the contract.

The City will furnish all consumable items such as toilet paper, paper towels, and soap refills for dispenser units, plastic trash container liners, sanitary napkins, toilet seat covers, and urinal deodorant blocks. The

Page 15 of 39 ends

Contractor shall be responsible, however, to secure City-supplied items and refill all containers and dispensers; and shall sign out on a log for all City supplies.

The Contractor shall furnish all cleaning materials, liquids, and sprays such as all-purpose cleaner, toilet bowl cleaner, glass cleaner, disinfectants, floor wax stripper, floor wax, floor sealers, carpet cleaning materials, and clean towels as needed.

The Contractor shall provide a listing of products intended for use along with a copy of the manufacturer’s M.S.D.S. sheets for City approval.

PERSONNEL REQUIREMENTS
The Contractor shall be present on the job at all times during working hours.

Prior to the commencement of work, the Contractor shall submit in writing to the Public Works Director, for prior approval, the name of the person intended to be employed as Supervisor for the execution of this contract, along with his qualifications and past experience. The Supervisor shall be required to communicate effectively in the English language, and to report to the Public Works Director or designee as necessary to review cleaning requirements and deficiencies.

The City reserves the right to execute a background investigation of any employee of this Contractor and to require the Contractor to remove any employee whose actions are considered detrimental to the best interest of the City. The Contractor shall at all times enforce strict discipline and good order among his employees and shall not employ or permit to remain on the job, any person he considers unfit.

The successful Contractor shall properly identify each employee engaged for this work. Also, the Contractor shall provide each employee with a uniform (shirt or blouse) with the Contractor’s logo and an identification card.

The City will periodically inspect all work performed by the Contractor. The Public Works Director can request joint inspection with Contractor at their choosing.

Keys for buildings and passcodes are controlled by the Public Works Director or his designee at all times. Every effort shall be exercised by Contractor’s employees to conserve electricity by only lighting areas in which work is currently being performed. Contractor’s employees shall not disturb papers on desks, open drawers or cabinets, use telephones, televisions, radios, or computers while on duty. Violations will be grounds for dismissal. Contractor

Page 16 of 39 ends

shall ensure that facilities are properly secured (locked and security systems activated) when leaving the premises.

For the purposes of coordination and control, the Contractor must arrange employees’ HOLIDAYS, SICK LEAVE, and VACATIONS to conform to City schedules.

WORKMANSHIP AND HOURS
All work shall be performed on the designated day for each facility. Also, the Contractor shall schedule and arrange his work so he will not interfere with operational functions of the building. At indeterminate times, some areas of the buildings will be occupied and used by employees for after-hours work, and such circumstances shall not alleviate responsibility of required cleaning at a later time.

WORK STANDARDS
Definition of various operations:

Cleaning: To free from dirt or impurities, removing stains either by hand or with tools from urinals, water closets, sinks, drinking fountains, light fixtures, mirrors, etc.

Buffing: To clean or shine with a floor machine, surfaces such as resilient tiles, terrazzo, wood, slate, etc.

Dusting: To remove surface dust or dirt as from furniture, files, sills, blinds, telephones, vents, grills, lighting fixtures, with properly treated cloths.

Disinfect: To mitigate transmission of Covid-19 virus and other viruses by spraying or wiping with hospital grade disinfectant sprays or liquids.

Emptying: To remove accumulation of trash or residue from waste containers, ashtrays, receptacles, etc., and deposit in designated containers on the outside of buildings. Work shall be in compliance with SB1383 regarding sorting of trash, recyclables, and organics.

Mopping, Damp and Wet: To wash, wipe and remove from floor and stair surfaces to leave acceptably clean.

Polishing: To smooth and brighten as by rubbing with polishing cloth using proper pastes, etc., as surfaces may require, such as brass, furniture, counters, mirrors, etc.

Refill: To replace the contents of a container such as soap, toilet tissue, towel dispensers, etc.

Stripping: This is a colloquial term for removing built-up waxes, seals and other floor dressings, the original natural surface before applying a

Page 17 of 39 ends

fresh coat of protective cover to surfaces such as resilient tile, wood, terrazzo, etc.

Sweeping: To remove or clear away dirt or debris with a broom or a brush. Normally all horizontal surfaces subject to foot or wheel usage.

Upholstery Cleaning: As needed.

Vacuum: To clean with a vacuum cleaner. Regular emptying of collector device is important and proper setting of height above surface will improve effectiveness.

Washing: The act or process of making thoroughly clean by moistening, wetting, scrubbing, rinsing, with water plus proper quantities of soap, detergents and disinfectants for various objects and equipment.

Waxing: To cover or treat with liquid wax or other floor finish in proper quantities over properly prepared surfaces to protect and beautify.

Window Cleaning: The interior building glass shall be cleaned quarterly and spot-cleaned as needed. Reference Section VI offices #7, clean all door glass daily to include all interior office glass, as found on cubicles and interior doors.

CUSTODIAL SERVICE LOCATIONS AND SQUARE FOOTAGE
The approximate square footage of the locations are as follows; however, it shall be the Contractor’s sole responsibility to determine and verify the correct square footage of all facilities included in this Request for Proposal.

1. City Hall/Community Center, 7800 Katella Avenue 22,400 sq ft

2. Family Resource Center, 11822 Santa Paula 4,000 sq ft

3. Central Park, 10660 Western Avenue 1,452 sq ft

4. Harry Dotson Park Restroom Building, 10350 Fern Avenue 160 sq ft

5. Corporate Yard, 8100 Pacific Street 7,872 sq ft

HOLIDAYS
The City currently observes the following holidays:

New Year’s Day
President’s Day
Memorial Day
Martin Luther King Jr. Day
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Christmas Day

Page 18 of 39 ends

**The week between Christmas and New Year’s**

FREQUENCY OF OPERATIONS
The Contractor shall be required to schedule his work to ensure that the following frequency of operations are adhered to or exceeded:

DAILY FOR CITY HALL/COMMUNITY CENTER, CORPORATE YARD,

FAMILY RESOURCE CENTER, CENTRAL PARK, AND HARRY DOTSON
PARK
Restrooms

1. Clean and disinfect toilets, urinals, basins/sinks, toilet paper/paper towel/soap dispensers, doorknobs, doorhandles, and mirrors.

2. Clean and disinfect partition walls and light switches.

3. Clean and disinfect all countertops.

4. Sweep, mob, and disinfect floors.

5. Empty and clean all waste and trash receptacles. Replace liners.

6. Remove trash to designated areas.

7. Replenish toilet supplies.

8. Empty sanitary napkin containers and replace liners.

DAILY FOR CITY HALL/COMMUNITY CENTER, CORPORATE YARD,

FAMILY RESOURCE CENTER, AND CENTRAL PARK
Lunchroom, Breakroom, and Kitchen Areas

1. Empty and sort all waste receptacle

2. Clean and disinfect all countertop and table surfaces.

3. Clean and disinfect water dispenser, including water dispensing paddles.

4. Clean and disinfect refrigerator door surfaces and handles, and water and ice dispensing paddles.

5. Refill all dispensers.

6. Clean and disinfect cabinet door surfaces, sinks, and backsplash or backsplash wall.

7. Sweep, mop, and disinfect floors.

TWICE PER WEEK AT CITY HALL/COMMUNITY CENTER, CORPORATE

YARD, FAMILY RESOURCE CENTER, AND CENTRAL PARK
Offices, Cubicles, and Reception Desk Areas

1. Empty and sort all waste receptacles and trash containers (including lobby areas)

2. Replace liners

3. Remove trash to designated area.

Page 19 of 39 ends

4. Vacuum all carpeted floors.

5. Sweep hard-surfaced floors.

6. Clean all door glass inside and out.

7. Sanitize and disinfect all doorknobs

8. Dust tops of cubicle walls and cabinets
Conference Rooms and City Council Chambers

1. Clean and disinfect all touch surfaces (e.g. door handles, light switches)

2. Sweep, mop, and disinfect hard surface floors

3. Vacuum carpeted floors.

4. Empty all waste receptacles.

5. Clean and disinfect all countertop surfaces.

6. Clean all door glass inside and out, if any.

7. Clean and disinfect all table surfaces.

8. Clean and disinfect all seating surfaces, including armrests.

Community Rooms, Classrooms, Hallways, Entryways, Common Areas

1. Clean and disinfect all touch surfaces (e.g. door handles, light switches)

2. Sweep, mop, and disinfect hard surface floors

3. Vacuum carpeted floors.

4. Empty all waste receptacles.

5. Clean and disinfect all countertop surfaces.

6. Clean all door glass inside and out.

ONCE PER QUARTER AT ALL FACILITIES (as needed/requested by City):

1. Steam clean tiled floors

2. Detail cleaning of lobby areas including dusting of window sills and furniture
ONCE PER YEAR AT CITY HALL/COMMUNITY CENTER (as
needed/requested by City):

1. Carpet cleaning by steam cleaning method
55414.00000\32996936.2
B-1
EXHIBIT “B”

SCHEDULE OF SERVICES

Page 20 of 39 ends

ROUTINE JANITORIAL
Restrooms:

City Hall (4x a week, Monday-Thursday)
Corporate Yard (4x a week, Monday-Thursday)
Community Center (7x a week, Monday-Sunday)
Family Resource Center (5x a week, Monday-Friday)
Central Park (7x a week, Monday-Sunday)
Offices, Cubicles, and Reception Desk Areas
City Hall (2x a week, Monday-Thursday)
Corporate Yard (2x a week, Monday-Thursday)
Community Center (2x a week, Monday-Thursday)
Family Resource Center (2x a week, Monday-Thursday)
Central Park (2x a week, Monday-Thursday)
Conference Rooms and City Council Chambers
City Hall (2x a week, Monday-Thursday)
Corporate Yard (2x a week, Monday-Thursday)
Community Center (2x a week, Monday-Thursday)
Family Resource Center (2x a week, Monday-Thursday)
Central Park (2x a week, Monday-Thursday)
Community Rooms, Classrooms, Hallways, Entryways, Common Areas City Hall (2x a week, Monday-Thursday)
Corporate Yard (2x a week, Monday-Thursday)
Community Center (2x a week, Monday-Thursday)
Family Resource Center (2x a week, Monday-Thursday)
Central Park (2x a week, Monday-Thursday)

Page 21 of 39 ends

*The Community / Banquet Rooms in the Community Center (7800 Katella Avenue) and Central Park (10660 Western Avenue) are to be cleaned twice per week. One of the scheduled cleaning operations should take place on Saturday evenings. 55414.00000\32996936.2
C-1
EXHIBIT “C”

COMPENSATION

1 CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: CITY SPONSORSHIP REQUEST – STANTON COMMUNITY

FOUNDATION ANNUAL CAR SHOW
REPORT IN BRIEF:

Per the City’s Sponsorship Program, the Stanton Community Foundation is requesting co-sponsorship of the 22nd Annual Car Show. The sponsorship request is for in-kind consideration valued at $160. At its meeting on August 23, 2022, the City Council directed staff to bring all sponsorship requests to the Council for consideration until further notice.

RECOMMENDED ACTION:

1. City Council declare this project to be categorically exempt under the California Environmental Quality Act, Class 1, Section 15301c; and

2. Determine the status of the Stanton Community Foundation’s sponsorship request for a total in-kind value of $160.

BACKGROUND:

At its meeting on August 23, 2022, the Council approved a City Administrative Policy for a City Sponsorship Program. The policy sets forth guidelines and criteria governing the granting of City funds or in-kind services for the purpose of supporting local festivals, special events, community projects or programs.

The goals and objectives of the approved City Sponsorship Program are as follows:
• Promote the City as a desirable place to live, visit and do business. • Promote the City as a visitor destination and/or bring tourism-associated revenue to the City.
• Enhance the quality of life and well-being of the citizenry. • Advance the City’s commitment to and pride in being a multicultural community. • Encourage the development of neighborhood identity and pride.

Item: 9F
Click here to return to the agenda.
2 The City Sponsorship Program includes general requirements, eligibility criteria, and conditions outlined in the policy. As part of the approved policy, the City Council directed staff to bring all sponsorship requests for consideration until further notice to evaluate the impact on City resources. The City Council also outlined that if sponsorships are in-kind, the value of the in-kind items may not equal more than 25% of the program/event budget, up to a maximum of $1,000.

ANALYSIS/JUSTIFICATION:

The Stanton Community Foundation submitted a request for sponsorship on March 13, 2025 (Attachment A) for the 22nd Annual Stanton Car Show, scheduled for Saturday, May 17, 2025, from 7 AM to 12 PM at Rodeo 39, 12885 Beach Blvd. Requested items include:
• Promotion of the event through the City’s social media for at least one month prior • Permission to use the City’s logo on promotional materials • Placement of flyers and registration applications at City facilities • Use of traffic safety cones on event day
• City support with invitations to OCSD and OCFA
The sponsorship request states that it is less than 25% of the entire event budget. The total in-kind value is outlined below:

Staff-Time for Marketing, Coordination $40/hr,3 hours total $120 Traffic Cones $40 (flat rate) $40
TOTAL $160
Upon review of the application, staff found that all required criteria have been met, including the provision of documentation for nonprofit status in the form of an IRS determination letter.

FISCAL IMPACT:

Fiscal impact includes an in-kind value of $160 to support the event with requested City resources.

This is the third sponsorship request reviewed by the Council for Fiscal Year 2024/2025.

The current sponsorship status is provided below:

Number of Requests
Approved To-Date Funds Granted To-Date
In-Kind Consideration
Granted To-Date
2 $0 $649
3 ENVIRONMENTAL IMPACT:

None.

LEGAL REVIEW:

None.

PUBLIC NOTIFICATION:

None.

STRATEGIC PLAN OBJECTIVE:

Not applicable.

Prepared by: Zenia Bobadilla, Community Services Director Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. Sponsorship Request – Stanton Community Foundation, Stanton Car Show SC �•111',iq11(.Jfi.a-t, 1�1
"'(�t..id"!'J"
March 13, 2025
Dear Dire,ctor Zenia Bobadilla:

The Stanton Community Foundation is writing to ask the City of Stanton to become a sponsor of the 22nd Annual Stanton Car Show, scheduled for Saturday, May 17, 2025 at Rodeo39. This annual car show has special historical significance in the city of Stanton as it was ran by the city for many years in the past, and it continues to draw a huge crowd of car enthusiasts, tourists, community partners, and residents. It also provides positive media coverage for the city.

PCTA's Youtube channel has numerous videos covering the annual Stanton Car Show dating back over a decade.

The Stanton Community Foundation kindly requests the city's sponsorship for this event in the following capacities:

L Promotion of the event through the city's social media channels for at least one month leading up to the event date

3. Allow the display of the citfs logo on promotional materials of the event

4. Allow the placement of flyers and applications for the event at city facilities

5. Use often traffic safety cones on the day of the event

6. City support with any invitations for OCSD or OCFA's attendance The Stanton Community Foundation has a long history of working with the City for over a decade to elevate our community and benefit the re-sidents. You may view our website at stantoncommunityfoundation.org to see the numerous services and benefits we provide for the Stanton Community. Some of our projects include but not limited to:
• Senior SJ,opping Carts: In 2011, the SCF began providing seniors living at Park Place Senior Apartments with shopping carts. They help our seniors to complete their personal shopping needs within our community.
• Tl1reads for Kids: This program began in 2013 and provides funds to local elementary schools to purchase a school hoodie/sweatshirt for a child in need. • Back to Scliool Fest: The Stanton Back to School Fest is a partnership between the Foundation, the city, and numerous community-based organizations to host a school supply giveaway serving the f
amilies of Stanton and surrounding neighborhoods. The
2021 Back to School Fest serv
ed around 500 K-12 students, providing free school
supplies, eye exams, on-site COVID vacdnations, and much more. • Supply Our Schools: SOS began in 2014 providing funds to local elementary and junior high school teachers to purchase items needed in the classroom. • SMART: Our most recent program, SMART, stands for Summer Math Academy & Resource Training, started in 2018. It is an intensive summer bridge program for The Stanton Community Foundation is a 501(c)(3) charitable organizations.

Contributions are tax deductible to the extent allowed by law. Tax I.D. #90-0476259 Stanton Community Foundation c/o Chair Alfredo Chairez, 11050 Cedar St.. Stanton. CA 90fiAO Attachment: A
Click here to return to the agenda.

SC
incoming high school freshmen who failed middle school math and are at risk of dropping out of high school.
• Veterans Plaque Program: Honoring veterans who have served or are currently serving in the United States Armed Forces, the Inspirational Wall Plaque Program offers an opportunity to have an engraved bronze plaque at Stanton's Veterans Memorial Park.
• Stanton Community Garden: Local residents can rent a plot to grow and have access to fresh produce. Since its inception in 2015, the Stanton Community Garden has served approximately 55 families per year.

Please do not hesitate to contact me with any questions or concerns. You may email me at stantoncommunitvfoundation(@.gmail.com. We appreciate your support.

Alfredo Chairez
Chair, Stanton Community Foundation
The Stanton Community Foundation is a 501(c)(3} charitable organizat.ions.

Contributions are tax deductible to the extent allowed by law. Tax I.D. #9�0476259 Stanton Community Foundation c/o Chair Alfl'A<ln C:h�in•7 11ni-o r.AAo, ct c+ ... ,.,•M ,...,. n.""'°"

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: REQUEST FOR A SECOND EXTENSION OF EXPIRED COMMERCIAL

CANNABIS CULTIVATION PERMITS
REPORT IN BRIEF:

At the April 23, 2024 City Council meeting, the City Council conducted the second reading of Ordinance No. 1142, extending expired commercial cannabis cultivation permits in exchange for certain fees. Ordinance No. 1142 became effective on May 23, 2024. The permit holders are now requesting a second extension.

RECOMMENDED ACTION:

Item: 12A
Click here to return to the agenda.
2 BACKGROUND:

At its meeting of December 12, 2023, the City Council received a staff report titled “Consideration of Extension of Expired Commercial Cannabis Permits” that provided that none of the three commercial cannabis cultivation permittees were operational by the November 2023 deadline as codified in the Stanton Municipal Code (“SMC”). Prior to the November 2023 deadline, each of the three permittees requested an extension given the additional challenges of constructing and opening a cannabis cultivation business, including electrical requirements. Based upon the City’s Municipal Code, the City Manager denied the extension request administratively.

On March 26, 2024, the City Council considered the extension requests and directed staff to come back with an ordinance that provided the cultivation permittees the option to extend their permits for an additional 36 months in exchange for certain public benefits. On April 9, 2024, the City Council conducted the first reading of Ordinance No. 1142 that extended expired commercial cannabis cultivation permits in exchange for certain fees (Attachment 1). On April 23, 2024, the City Council conducted the second reading of Ordinance No. 1142, which then became effective on May 23, 2024.

Ordinance No. 1142
Ordinance No. 1142 added a new section, 5.77.105 to Chapter 5.77 of the SMC to provide commercial cannabis cultivation business permittees the option to exercise a final 36-month permit extension. That period commenced on May 23, 2024 and runs through May 23, 2027. In consideration of exercising this option, the cultivation permittee is required to pay tiered fees to the City as follows:
• A fee of $6.51 per square feet of the permittee’s proposed canopy space for the first 18 months of the extension period (50% of the full cannabis business tax for cultivation); and
• A fee of $13.02 per square feet of the Permittee’s proposed canopy space for the second 18 months of the extension period (100% of the full cannabis business tax for cultivation).
• These amounts would be increased by the consumer price index each January 1.

There is no guarantee that a permittee will receive a certificate of occupancy at the expiration or termination of the extension period. In addition, the SMC provides for the following:
“If a Permittee fails to timely pay a City invoice for any reason, the Cultivation Extension Period shall immediately terminate and become null and void without any liability to the City and/or any of its officials, employees, contractors, or volunteers, even if a Permittee has expended any money, time, and/or resources in furtherance of their respective cultivation business or operation.” 3 ANALYSIS/JUSTIFICATION:

The City’s Finance Department expected the cultivation permit holders to begin paying fees as of June 2024 on a quarterly basis.
• June, July, August 2024 – Should have been paid in September 2024 • September, October, November 2024 – Should have been paid in December 2024
After receiving no response and no payment from the permit holders, the City Manager reached out one final time to document that the extended permits would be revoked due to a breach of agreement. As of January 14, 2025, each permit holder had an outstanding balance of $17,322,66 (Stanton Fresh Farms) and $28,830.20 (Culture Stanton Growers). As of this staff report, each permit holder has an outstanding balance of $26,387.91 (Stanton Fresh Farms) and $43,917.56 (Culture Stanton Growers).

At that time, counsel for both permit holders responded with the following proposal:
• Each permit holder would immediately pay $6,000.
• The remaining balances would be paid over six months (in addition to the ongoing fee that would accrue monthly) in equal installments with a 5% interest rate applied.
• The City would grant an additional extension of the permit.

In addition, counsel for both permit holders submitted a formal Proposal for Extension of Operational Deadline & Payment of Fees dated February 26, 2025 (Attachment 2). This document also outlines the permittees positions on various systemic challenges and delays as well as their current financial pressures, and then offers a set of five solutions.

1. Extension of the Operational Deadline
Permittee: The permittees are requesting an extension through May 2029.

City: Staff does not feel it is reasonable to extend the deadline for an additional two years, bringing the total project timeline to 7 ½ years.

2. Accurate and Fair Tax Assessments
Permittee: The permittees are requesting a postponement of tax assessments.

City: The prior City Council was expecting revenue generation starting in 2024, and as such made it a requirement for any extension. As a concession, the prior City Council agreed to a 50% reduction for the first 18 months of the extension.

At the time, both permittees agreed to the proposed fees and executed agreements memorializing the agreed upon fees.
4 3. Collaboration with Southern California Edison
Permittee: The permittees are stating the City should advocate on their behalf with Southern California Edison and the Orange County Sanitation District.

City: Staff does facilitate communication when appropriate, but it is not the City’s responsibility to take the lead to resolve service issues or wastewater discharge compliance issues on behalf of an applicant.

4. Reconsideration of Parking Variances
Permittee: The permittees state that the City should grant variances on parking requirements so they can maximize the square footage of their projects.

City: The City has adopted certain parking standards and it is City staff’s responsibility to ensure all projects abide by documented parking standards so as not to exacerbate the difficult parking issues already experienced in various neighborhoods.

5. Financial Relief
Permittee: The permittees are requesting temporary deferral of tax payments.

At the time, both permittees agreed to the proposed fees and executed agreements memorializing the agreed upon fees.

Based on the lack of forward progress and the opportunity costs associated with the significant time and energy staff members from Community Development, Finance, and Administration have invested into this process, staff is recommending the City Council take the following actions:
• City Council deny the second extension request for expired cannabis cultivation permits and the associated provisions of the submitted proposal. • City Council affirm that the extension period for both permit holders has terminated and become null and void based on a violation of the terms and conditions of the permit extension.
5 FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions.

ENVIRONMENTAL IMPACT:

The actions requested in this report are not categorized as a project (has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment), and therefore, are categorically exempt under the California Environmental Quality Act.

PUBLIC NOTIFICATION:

Public notice for this item was made through the regular agenda process.

STRATEGIC PLAN OBJECTIVE:

None.

Prepared by: Hannah Shin-Heydorn, City Manager
Reviewed by: Crystal Landavazo, Community & Economic Development Director Reviewed by: Michelle Bannigan, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENTS:

A. April 9, 2024 Staff Report
B. Proposal for Extension of Operational Deadline & Payment of Fees dated February 26, 2025

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: April 9, 2024
SUBJECT: CONSIDERATION OF ORDINANCE AMENDING CHAPTER 5.77 OF

THE STANTON MUNICIPAL CODE TO PROVIDE FOR AN EXTENSION

OF EXPIRED COMMERCIAL CANNABIS CULTIVATION PERMITS AND

SPECIFY THAT THE CITY COUNCIL MAY OPEN AN APPLICATION

PERIOD AND SET THE PARAMETERS FOR SUCH APPLICATION
PERIOD
REPORT IN BRIEF:

At the March 26, 2024 City Council meeting, the City Council directed staff to come back with a proposed ordinance that would extend expired commercial cannabis cultivation permits in exchange for certain fees and allow for the issuance of delivery permits for existing operational commercial cannabis retail outlets.

RECOMMENDED ACTIONS:

2. Consider and waive first reading of Ordinance No. 1142:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON ADDING SECTIONS 5.77.065 AND 5.77.105 TO CHAPTER 5.77
(COMMERCIAL CANNABIS BUSINESSES) OF TITLE 5 (BUSINESS

LICENSES AND REGULATIONS) OF THE STANTON MUNICIPAL

CODE AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM
CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15301,
15060(C)(2), 15061(B)(3), AND 15378(b)(5)”; and

3. Set Ordinance No. 1142 for second reading on April 23, 2024.

Attachment: A
Click here to return to the agenda.
2 BACKGROUND:

On March 26, 2024, the City Council considered the extension requests and directed staff to come back with an ordinance that provided the cultivation permittees the option to extend their permits for an additional 36 months in exchange for certain public benefits, as described in this report. At the same meeting, the City Council considered staff’s request to open an application period for delivery permits so that existing storefront retailers could apply for a commercial cannabis delivery permit.

ANALYSIS/JUSTIFICATION:

COMMERCIAL CANNABIS CULTIVATION PERMIT EXTENSION
The proposed Ordinance adds a new section, 5.77.105 to Chapter 5.77 of the SMC to provide commercial cannabis cultivation business permittees the option to exercise a final 36 month permit extension. That period would commence once the proposed Ordinance becomes effective. In consideration of exercising this option, the cultivation permittee would be required to pay tiered fees to the City as follows:
• A fee of $6.51 per square feet of the permittee’s proposed canopy space for the first 18 months of the extension period; and
• A fee of $13.02 per square feet of the Permittee’s proposed canopy space for the second 18 months of the extension period.
• These amounts would be increased by the consumer price index each January 1 There is no guarantee that a permittee would receive a certificate of occupancy at the expiration or termination of the extension period. Thus, prior to exercising their option for the extension period, permittees would be required to enter into an agreement with the City acknowledging that they do so at their own risk.

COMMERCIAL CANNABIS DELIVERY PERMIT ISSUANCE
Although the City issued four commercial cannabis delivery permits in November 2021, none of the permittees were able to become operational within two years by the November 2023 SMC deadline. The City has an opportunity to benefit from the additional sales tax and cannabis tax (6% for retail sales) that delivery could bring in, while strengthening the fiscal viability of the existing operational local commercial 3 cannabis retail outlets. There is a thriving cannabis delivery market inside and outside of the City, and Stanton businesses are currently missing out on those sales.

Pursuant to the City Council’s direction, the proposed ordinance expressly authorizes the City Council to open an application period and set the parameters for what type of permit applications the City will accept and from which businesses, firms, and/or organizations. The City Council has the police power to regulate commercial cannabis businesses within the City. The City Council is also in the best position to evaluate local economic conditions to determine which businesses, firms, and organizations would be best suited to operating commercial cannabis businesses within the City. Opening an application period would be done via Council resolution.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions.

ENVIRONMENTAL IMPACT:

The proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they do not qualify as a “project” under CEQA. Section 15378 explicitly excludes from its definition of “project” the “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) The actions would (1) extend expired commercial cannabis cultivation permits for up to 36 months and include a tiered cultivation fee payment; and (2) authorize the City Council to open the application period for specific types of permits and to specific businesses, firms, and/or organizations. Such actions are considered administrative activities that will not result in a physical change in the environment, and therefore are not subject to CEQA.

Even if the actions are considered a “project” subject to CEQA, they are categorically exempt pursuant to State CEQA Guidelines Section 15301 (Class 1) Existing Facilities.

Class 1 applies to the permitting of existing private structures involving negligible or no expansion of existing or former use. The proposed actions include extending expired commercial cultivation permits for up to 36 months. These actions would involve negligible or no expansion of existing or former use. Lastly, none of the exceptions to the use of a categorical exemption identified in State CEQA Guidelines section 15300.2 apply. There is no potential for cumulative impacts; there are no unusual circumstances that would have a significant impact on the environment; the actions would not negatively impact scenic resources within a duly designated scenic highway; there is no record of hazardous waste and no potential to impact historic resources would occur.

Staff recommends that the City Council direct staff to file a Notice of Exemption in accordance with State CEQA Guidelines.
4 PUBLIC NOTIFICATION:

Public notice for this item was made through the regular agenda process.

STRATEGIC PLAN OBJECTIVES ADDRESSED:

Obj. No. 2: Promote a strong local economy.

Obj. No. 5: Provide a high quality of life.

Prepared by: HongDao Nguyen, City Attorney
Reviewed by: Crystal Landavazo, Community & Economic Development Director Reviewed by: Michelle Bannigan, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
Attachment:

A. Ordinance No. 1142
ORDINANCE NO. 1142
PAGE 1 OF 6
ORDINANCE NO. 1142

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON ADDING SECTIONS 5.77.065 AND 5.77.105 TO CHAPTER 5.77 (COMMERCIAL CANNABIS BUSINESSES) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE

STANTON MUNICIPAL CODE AND DETERMINING THE ORDINANCE TO BE

EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15301, 15060(C)(2), 15061(B)(3), AND 15378(b)(5)
WHEREAS, the City of Stanton, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, on November 5, 2019, the City Council adopted Ordinance No. 1091 adding Chapter 5.76 to Title 5 of the Stanton Municipal Code establishing a tax on cannabis businesses operating within the City of Stanton; and
WHEREAS, on June 23, 2020, the City Council adopted Ordinance No. 1100, which added Chapter 5.77 Commercial Cannabis Businesses to Title 5 of the Stanton Municipal Code (“SMC”) and amended Title 20 (Zoning), section 20.220.020.A Allowed Land Uses, Table 2-7 to permit and regulate Commercial Cannabis Business uses; and WHEREAS, following the passage of Ordinance No. 1100, the City accepted applications for commercial cannabis businesses, processed and scored them, and thereafter awarded a number of commercial cannabis permits in or around November 2021; and WHEREAS, following the initial implementation of Ordinance No. 1100, the City revised Chapter 5.77 to make the provisions more clear or to otherwise implement best practices through Ordinance No. 1124; and
WHEREAS, the City wishes to further refine and amend Chapter 5.77 by specifying that the City Council is the only body that may open a period to accept applications for commercial cannabis business permits. Moreover, pursuant to the City’s police power to regulate land use and given the City Council’s knowledge of the City’s local economy, the City Council is the only body that may determine, among other things, what types of commercial cannabis business permit applications to accept and which businesses, firms, and/or organizations may apply for them. The City Manager shall have the authority to cancel, postpone, modify, or extend an application period; and WHEREAS, the City also wishes to further refine and amend Chapter 5.77 by providing permittees that received a permit for a commercial cannabis cultivation business in November 2021 from the City may be granted a final extension of their respective permits to May 23, 2027 in consideration of providing the City certain public benefits and subject to certain conditions, as provided in this ordinance. The City Council acknowledges the additional challenges that cultivation businesses encounter, including, without limitation electrical requirements. Thus, cultivation businesses require more time to construct and to become operational. A fair and reasonable exchange for allowing permittees with a cultivation permit additional time to receive a certificate of occupancy are fees that are ORDINANCE NO. 1142
PAGE 2 OF 6
based on a reduced tax amount that a cannabis cultivation business would have provided to the City had they become operational. Cultivation permittees are not required to exercise an extension period and any cultivation permittee that utilizes the extension period shall do so at their own risk; and
WHEREAS, on April 9, 2024, the City Council held a hearing that was noticed pursuant to the City’s normal agenda noticing procedures and considered the staff report, recommendations by staff, and public testimony concerning the proposed ordinance to add additional sections to Chapter 5.77 (Commercial Cannabis Businesses) of the Stanton Municipal Code and determined the ordinance to be exempt from CEQA.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:

SECTION 1: The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2: The City Council hereby finds that the Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15301, 15060(c)(2), 15061(b)(3), and 15378(b)(5). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects 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 may have a significant effect on the environment, the activity is not subject to CEQA. The revisions to SMC 5.77 are administrative because they relate to the commercial cannabis business permit application process and would provide an extended period for permittees with a cultivation permit to receive a certificate of occupancy. The proposed cultivation businesses would be established in existing facilities with no or negligible expansion.

SECTION 3: Section 5.77.065 is hereby added to Chapter 5.77 (Commercial Cannabis Business) of Title 5 (Business Licenses and Regulations) of the Stanton Municipal Code to read as follows:
“5.77.065 Reservation of Rights.

A. The city council shall have the sole authority to open an application period for the submission of commercial cannabis business permit applications. The city council shall also have the sole authority to set parameters for the type or types of permit applications that the City will consider, including, without limitation, which businesses, firms, and/or organizations may apply for a permit during an application period. These actions shall be taken by city council via resolution.

B. The city manager may extend, modify, postpone, or cancel an application period for a permit with or without cause or reason and without liability, obligation, or commitment to any person, party, firm, or ORDINANCE NO. 1142
PAGE 3 OF 6
organization. Additionally, the city manager reserves the right to request and obtain additional information from any applicant in order to conduct a complete review of the application or an investigation into the truthfulness of the statements set forth in the application or provided at any stage of the application process.”
SECTION 4: Section 5.77.0105 is hereby added to Chapter 5.77 (Commercial Cannabis Business) of Title 5 (Business Licenses and Regulations) of the Stanton Municipal Code to read as follows:
“5.77.105 Additional extension for cultivation permits.

A. The city acknowledges there are additional operational challenges with establishing a cannabis cultivation business including, without limitation, electrical requirements. Thus, notwithstanding anything to the contrary, any Permittee that received a Permit for cultivation in November 2021 may be given a final extension of their respective cultivation Permit to May 23, 2027 (“Cultivation Extension Period”), subject to the terms of conditions in subsections B, C, D, and E of this section.

B. In consideration for a final extension and as a condition of the grant of such extension or portion thereof, each cultivation Permittee shall remit to the city an amount as follows:
i. A fee of $6.51 per square feet of the Permittee’s
proposed canopy space, whether or not artificial, natural, or any combination of lighting is proposed, for the first eighteen (18) months of the extension period; and
ii. A fee of $13.02 per square feet of the Permittee’s
proposed canopy space, whether or not artificial, natural, or any combination of lighting is proposed, for the second eighteen (18) months of the extension period.
iii. On January 1, 2025, and on each January 1 thereafter, the fees specified in Subsection (B), above, shall increase by the percentage increase in the Consumer Price Index ("CPI") for all urban consumers in the Los Angeles-Long Beach-Anaheim area as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any fee imposed by this subsection shall be made.

C. The payments referenced in Subsection B of this section shall be paid throughout the Cultivation Extension Period on a quarterly basis and within thirty (30) days of a Permittee receiving a City invoice. As an example, only, if a Permittee’s proposed canopy space totals 9,167 square feet, then in the first quarter of the first 18 months of the Cultivation Extension Period, the Permittee must remit to the city a total of $14,919.29 to satisfy that quarter’s fee. That quarter’s amount is calculated as follows: ($6.51 x 9,167) / 12 x 3.

ORDINANCE NO. 1142
PAGE 4 OF 6
Also by way of example, only, if a Permittee’s proposed canopy space totals 9,167 square feet, then in the first quarter of the second 18 months of the Cultivation Extension Period, the Permittee must remit to the City a total of $29,838.58 to satisfy that quarter’s fee. That quarter’s amount is calculated as follows: ($13.02 x 9,167) / 12 x 3. If a Permittee fails to timely pay a City invoice for any reason, the Cultivation Extension Period shall immediately terminate and become null and void without any liability to the City and/or any of its officials, employees, contractors, or volunteers, even if a Permittee has expended any money, time, and/or resources in furtherance of their respective cultivation business or operation. The city shall not be required to return any amounts collected from a Permittee during the Cultivation Extension Period, but once the Cultivation Extension Period ends, as provided in this section, then the city shall not collect any additional amounts that would have accrued if the Cultivation Extension Period had continued.

As an example, only, if a Cultivation Extension Period ends for a Permittee six months into the first year, then the Permittee shall only be required to pay the city for two quarters of the Cultivation Extension Period.

D. A Cultivation Extension Period shall automatically terminate once the respective Permittee receives a certificate of occupancy for their respective facility, and thereafter, that Permittee shall be subject to all applicable State and local laws, including, without limitation, the provisions in Chapter 5.76 of this Code. Additionally, all Cultivation Extension Periods shall automatically expire on May 23, 2027 by their own terms and without any liability to the City and/or any of its officials, employees, contractors, or volunteers, even if a Permittee has expended any money, time, and/or resources in furtherance of their respective cultivation business or operation. Meaning, if a Permittee has been unable to receive a certificate of occupancy for their respective cultivation business before their Cultivation Extension Period terminates, for any reason, then the city and/or its officials, employees, contractors, and volunteers shall have no liability to the Permittee.

E. Any Permittee for a cultivation business that exercises its ability to use a Cultivation Extension Period as provided in this section proceeds at its own risk. No Permittee is required to utilize the Cultivation Extension Period, and any Permittee that chooses to utilize the Cultivation Extension Period shall have no guarantee that they will receive a certificate of occupancy during the pendency or at the expiration or termination of their respective Cultivation Expiration Period. As a condition to being provided a Cultivation Extension Period, the cultivation Permittee shall be required to sign an agreement agreeing to the provisions of this chapter and indemnifying the city. The agreement’s form shall be as provided by the city attorney’s office and may be executed by the city manager.

F. Cultivation permits are not subject to renewal requirements provided in section 5.77.110 until the expiration or termination of the relevant Cultivation Extension Period.”
ORDINANCE NO. 1142
PAGE 5 OF 6
SECTION 5: Any permittee with a qualified cultivation commercial cannabis business permit shall notify the City Manager by May 1, 2024 about whether they intend to utilize the Cultivation Extension Period, and if they do, then they shall enter into an agreement with the City by May 23, 2024 or within a reasonable time, as determined by the City Manager, in their sole and absolute discretion.

SECTION 6: This ordinance shall take effect 30 days following its adoption.

SECTION 7: The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the approval and adoption of this ordinance.

SECTION 8: If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

SECTION 9: The documents and materials that constitute the record of proceedings on which this Ordinance and the above findings have been based are located in the City Clerk’s Department, 7800 Katella Avenue, Stanton, California.

PASSED, APPROVED, AND ADOPTED this 23rd day of April, 2024.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK

APPROVED AS TO FORM

HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1142
PAGE 6 OF 6

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1142 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 9th day of April, 2024 and was duly adopted at a regular meeting of the City Council held on the 23rd day of April, 2024, by the following roll-call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK
February 26, 2025
Joseph Adeife, Esq.

The Law Office of Joseph Adeife PC

VIA EMAIL
City of Stanton
Attn: Hannah Shin-Heydorn
Title: City Manager
7800 Katella Avenue
Stanton, CA 90680
Re: Proposal for Extension of Operational Deadline & Payment of Fees Dear Hannah,
Stanton Fresh Farms and Culture Stanton, the two cannabis cultivation permittees in the City of Stanton, continue to face significant and persistent obstacles that have hindered their ability to become operational. These obstacles, both systemic and external, have caused substantial delays despite the permittees’ consistent efforts to comply with city-imposed deadlines and regulatory requirements.

The cultivation permits were initially issued in November 2021 with an operational deadline of November 2023. Due to widespread disruptions caused by the COVID-19 pandemic, including delays in supply chain logistics and permitting processes, Stanton Fresh Farms and Culture Stanton formally requested an extension in May 2023, seeking an operational deadline of May 30, 2024.

The City Council later approved Ordinance No. 1142 in April 2024, allowing for further extensions through May 2027 in exchange for cultivation permit extension agreements and community benefit agreements. However, the realities on the ground indicate that even these extensions are insufficient given the ongoing regulatory and infrastructure challenges that continue to impact the timeline for achieving operational readiness. The research mandated by the City Council to determine the duration of the approved extension for cultivation permittees did not consider the significant challenges faced by the permittees, as outlined herein. Instead, it was based on the assumption that permittees had full control and discretion to achieve operational status.

Systemic Challenges and Delays
The primary challenge stems from the prolonged regulatory review process and procedural inefficiencies. When the cultivation licenses were awarded nearly four years ago, the process was plagued by a lack of clear direction and inconsistent communication from City staff. Key city Attachment: B
Click here to return to the agenda.
personnel responsible for overseeing cannabis businesses, including a staff member who managed the green zone allocations, were terminated, leaving permittees with little guidance on next steps.

Following this, the City Manager also departed, exacerbating the lack of continuity. The limited availability of properties within the green zone further complicated matters, with price gouging making it nearly impossible to secure a feasible location.

The permittees have experienced considerable delays in obtaining a location (Stanton Fresh Farms), necessary approvals, particularly concerning sanitation, fire safety, and electrical infrastructure. After more than two (2) years of searching, Stanton Fresh Farms secured a property on Electric Avenue. However, the process of obtaining approvals and moving forward remained unclear and inefficient. A crucial element affecting the project timeline has been the requirement to obtain approval from Orange County Sanitation for sewer connections, which was not initially disclosed as a prerequisite for securing city approvals and permittees only discovered it when attempting to obtain a construction permit. As a result, the process that should have run concurrently with architectural plan submissions has instead caused additional months of delay. Architectural plans were submitted but deemed unacceptable due to design disagreements.

The City then halted all plan submissions for a significant period, believing there would be no additional permit extension, which was granted in April 2024. Similarly, unresolved matters with the City’s Planning Department have prevented phased construction, which would have allowed for portions of the facility to begin operations while additional improvements were completed.

This would have allowed the permittees to begin generating revenue while construction was ongoing. This decision further hinders financial sustainability during the extended construction period.

In addition to the regulatory hurdles, critical infrastructure upgrades required by Southern California Edison have further impacted the timeline for operational readiness. The electrical infrastructure for both locations necessitates significant enhancements, including transformer upgrades, which have been subject to extended wait times exacerbated by resource allocation challenges following California wildfires. The estimated timeframe for completion of these upgrades is approximately eighteen months. Without the completion of these power installations, cultivation activities cannot proceed, rendering the facilities non-operational until all requirements are met.

Current Financial Pressures
Financial investments made by the permittees to date underscore their commitment to achieving operational status. Extensive expenditures have been made toward architectural planning, engineering, contractor fees, and compliance-related costs such as wastewater treatment modifications, ventilation systems, and regulatory filings. Further, substantial payments have been allocated for city-imposed developer fees, school district contributions, and permit fees, all of which have been paid despite the continued delays in approvals. The financial strain of these mounting expenses, combined with the city’s recent demand for immediate payment of taxes based on square footage calculations that remain unresolved, places an undue burden on the permittees.

This demand is particularly problematic given that architectural plans have not yet been approved, and the total tax amount owed is dependent on the finalized square footage of the canopy, which remains undetermined. The fees currently requested are therefore based on inaccurate calculations and are premature given the circumstances. The tax calculations should be postponed until the actual canopy size is finalized through the completion of architectural approvals, ensuring an accurate and equitable assessment.

Proposed Solutions
Given the circumstances, the permittees formally propose the following:

1. Extension of the Operational Deadline
Request an extension of the operational deadline to May 2029. This extension is necessary to accommodate the delays associated with infrastructure and regulatory requirements, ensuring that the facilities can operate successfully without being penalized for factors beyond the permittees' control.

2. Accurate and Fair Tax Assessments
Tax assessments should be postponed or structured into installments when the total canopy square footage is finalized through the approval of architectural plans. Tax payments should be tied to accurate calculations and operational milestones rather than premature deadlines.

3. Collaboration with Southern California Edison
Efforts must be made to expedite power upgrades to avoid further delays and enable construction to proceed. In addition, the City should confirm current delays attributable to the California wildfires. Collaboration with Southern California Edison to expedite power upgrades is essential, and the City’s involvement in advocating for expedited service could significantly reduce further delays. Similarly, outstanding sanitation compliance requirements must be addressed promptly in coordination with Orange County Sanitation to resolve wastewater discharge compliance issues.

4. Reconsideration of Parking Variances
Variances on parking requirements should be granted to preserve the original square footage of the projects, ensuring operational capacity and projected tax revenue.

5. Financial Relief
Temporary deferrals or adjustments to tax payments should be granted to alleviate immediate financial pressures and allow resources to be allocated toward achieving operational readiness.

The information supporting this request is provided in the attached documents, which include regulatory correspondence, permit applications, fee payment records, infrastructure development

1 CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: APPROVE RESOLUTION NO. 2025-07 TO ADOPT A SEWER

CAPACITY CHARGE
REPORT IN BRIEF:

On September 10, 2024, the City Council approved a professional services agreement with Willdan Financial Services (Willdan) to complete a sewer capacity fee study to analyze the City’s costs of providing sewer collection services to new or expanded development within the City. The result of that project is the Sewer Capacity Fee Study report (“Study”) included as Attachment A. Staff is recommending the City Council approve Resolution No. 2025-07, which establishes a new sewer capacity charge of $487 per Equivalent Residential Unit (ERU) (Attachment B). The Resolution also includes a provision to update the sewer capacity charge annually, each July 1, beginning on July 1, 2026, based on the California Construction Cost Index.

RECOMMENDED ACTION:

2. Receive and file the Sewer Capacity Fee Study; and

3. Adopt Resolution No. 2025-07, entitled:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, ADOPTING A SEWER CAPACITY CHARGE.”
Item: 12B
Click here to return to the agenda.
2 BACKGROUND:

Capacity charges are one-time charges that reflect the demands and costs on City facilities created by new connections for additional capacity. Government Code 66013 distinguishes a capacity charge from a connection fee. A sewer connection fee is for the action and steps necessary to make a connection, such as the installation of pipelines from a new structure to connect to the City’s sewer main. The City currently charges a sewer connection fee of $748. The infrastructure included in capacity charges are large, system level components and do not include on-site and specific site improvements.

Capacity charges are required to demonstrate a reasonable connection between the amount of the fee and the cost to serve new development. The objective of the capacity charge is to create a fiscal balance between existing customers and new customers.

ANALYSIS/JUSTIFICATION:

Willdan used the “buy-in approach” to compute the proposed sewer capacity charge.

The buy-in approach is where the infrastructure has been built in advance of new development and capacity if available to accommodate new development. Under this methodology, new development repays the community for previous capacity investments via the capacity fee. Willdan computed the proposed sewer capacity charge using the value of the City’s sewer system (approximately $12 million) divided by the total Equivalent Residential Units (ERUs) the City’s sewer system can serve (24,659) to determine the sewer capacity charge per ERU of $487.

FISCAL IMPACT:

If the new sewer capacity charge is approved, staff will create a new fund, the Sewer Capacity Charge Enterprise Fund (503), to record the revenues and expenditures separately from the City’s Sewer Maintenance Fund (#501).

ENVIRONMENTAL IMPACT:

This project is categorically exempt under the California Environmental Quality Act Section 15301, Class 1(c) as improvements to existing facilities.

LEGAL REVIEW:

The City Attorney reviewed the Resolution as to form. In addition, the City Attorney reviewed the Sewer Capacity Fee Study.
3 STRATEGIC PLAN OBJECTIVE:

Obj. No. 4: Ensure fiscal stability and efficiency in governance.

PUBLIC NOTIFICATION:

Through the normal agenda notification process. In addition, the consultant’s report was provided via email to the interested parties on the City’s notification list.

Prepared by: Michelle Bannigan, Finance Director
Reviewed by: Cesar Rangel P.E., Director of Public Works/City Engineer Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENTS:

A. Sewer Capacity Fee Study
B. Resolution No. 2025-07
City of Stanton, CA
Sewer Capacity Fee Study
Report
Attachment: A
Click here to return to the agenda.
i Sewer Capacity Fee Study
March 18, 2025

TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................... i Executive Summary................................................................................................................................1 Introduction.....................................................................................................................................................1 Summary ..........................................................................................................................................................1 Use of Capacity Fee Revenues.................................................................................................................1 Capacity Fee Summary...............................................................................................................................2 Section 1 – Introduction ........................................................................................................................3

1.1 Defining A Capacity Charge.........................................................................................................3

1.2 Calculation Methodologies............................................................................................................4 Section 2 – Sewer Capacity Fees ........................................................................................................6

2.1 Sewer System Valuation ..................................................................................................................6

2.2 Capacity Fee per Equivalent Residential Unit...........................................................................7

2.3 Capacity Fee by Meter Size...........................................................................................................8 Section 3 – Implementation ...............................................................................................................11

3.1 Capacity Charge Program Adoption Process.............................................................................11

3.2 Reporting Requirements......................................................................................................................11

3.3 Inflation Adjustment .............................................................................................................................11 Section 4 – Recommendations & Conclusions ................................................................................12

4.1 Recommendations...............................................................................................................................12

4.2 Conclusion ..............................................................................................................................................12 Attachment: A
Click here to return to the agenda.
1 | P a g e
Executive Summary
Introduction
The City of Stanton (the “City”) retained Willdan Financial Services (Willdan) to conduct a sewer capacity charge study. The main objective of this study was to develop a sewer capacity fee that reflects the cost of providing sewer collection services to new or expanded development within the City. Willdan has completed the study of the City’s sewer capacity fees and summarized the results of the investigations, analyses, and conclusions in this Report.

The purpose of capacity charges is to maintain equity between existing customers and new customers connecting to the City’s sewer utility system. The objective of the capacity charge study was to calculate a cost-based capacity charge for new customers connecting to, or requesting additional capacity in, the City’s sewer utility system. By establishing cost-based capacity charges, the City attempts to have new customers pay their proportional share of the system, so that new growth pays its way, and does not negatively impact existing customers.

It is recommended that the charges be adjusted annually by the January to December California Construction Cost Index to reflect changes in construction costs (i.e., inflation), and to update the capacity charges at least every five years, whenever comprehensive planning documents for the system have been updated, or significant infrastructure projects have been completed.

Summary
The sewer capacity fees developed and presented in this report are based on the planning and engineering design criteria of the City’s sewer collection system, the value of the existing assets, and future capital improvements. These fees will allow the City to establish an equitable and cost-based capacity fee for new customers connecting to the City’s sewer collection system and existing customers expanding their service capacity.

This report documents the assumptions, methodologies, and calculations upon which the capacity fees are based. As documented in this report, the capacity fees are just and reasonable and represent any new development’s proportionate share of system costs from which it will directly benefit.

Use of Capacity Fee Revenues
Revenue from the capacity fees for sewer collection facilities can be used to reimburse the City for prior infrastructure investments and to fund planned future capital projects.

The study is based on the best available information at the time of the report; however, the City cannot predict with certainty how and when development within the City will occur during the planning horizon assumed in this study, the City may need to update and revise Attachment: A
Click here to return to the agenda.
2 | P a g e
the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same system, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by the fees when it updates the capital improvement plan (CIP). The fees could also be updated if significant changes to the projects funded by the fees are anticipated.

Capacity Fee Summary
The proposed sewer collection capacity fees are based on the buy-in approach since the existing infrastructure has sufficient capacity to serve future development. The approaches used to determine the fees are discussed in detail in Section 1.2 of the report.

The proposed fees are provided in Table 1.

Table 1 – Proposed Sewer Capacity Fees
Description Sewer Capacity
Charge [1]
Meter Size: [2]
5/8 Inch $ 487
3/4 Inch $ 731

1.0 Inch $ 1,218

1.5 Inch $ 2,435

2.0 Inch $ 3,896

3.0 Inch $ 7,305

4.0 Inch $ 12,175

6.0 Inch $ 24,350

8.0 Inch $ 38,960

10.0 Inch $ 56,005
Notes:
[2] The proposed capacity charges are based on the calculated fee per ERU as applied to the respective ERU factor. The methodology for incrementing the charges for larger connection sizes is based on standardized demand criteria established by the American Water Works Association (AWWA) and the Water Environment Federation (WEF) pursuant to the size of the water meter.
[1] The maximum supportable capacity fee per ERU is $487. One ERU is equivalent to a customer with a 5/8 inch meter.

Attachment: A
Click here to return to the agenda.
3 | P a g e
Section 1 – Introduction

1.1 Defining A Capacity Charge
Capacity charges are one-time charges that reflect the demands and costs on City facilities created by new connections for additional capacity. More specifically a capacity charge is defined in Government Code Section 66013 as:
“a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. A “capacity charge” does not include a commodity charge.”
The code distinguishes “capacity charges” from “connection fees” which are defined as fees for the physical facilities and actions and steps necessary to make a connection, such as the costs related to installation of pipelines from a new structure to a sewer main.

The infrastructure included in capacity charges are large, system level components and do not include on-site or site-specific improvements. Capacity charges are required to demonstrate a reasonable connection or rational nexus between the amount of the fee and the cost to serve new development (i.e., new development’s proportionate share of infrastructure capacity costs).

The objective of a capacity charge is not to simply generate revenues, but to create a fiscal balance between existing customers and new customers. That is, all customers seeking to connect to a utility system should bear a proportional share of the cost of the capacity of the system. Through the implementation of cost-based capacity charges, existing customers will not be disproportionately burdened with the cost of new development. The additional capacity required for new growth can be the repayment of “buying into” existing capacity or the completion of utility projects to provide additional capacity.

Other sections of government code that apply to capacity charges include Government Code Sections 66016, 66017, 66022, and 66023. Sections 66016 and 66017 identify the procedural requirements for adopting or increasing capacity charges. Section 66022 describes the process by which a capacity charge can be challenged, and section 66023 provides the process for requesting an audit to determine if the capacity charge is reasonable. The full texts of each code can be found in Appendix C.

Attachment: A
Click here to return to the agenda.
4 | P a g e

1.2 Calculation Methodologies
There are three basic methodologies that are used to calculate the various components of capacity charges. The methodologies are used to determine the best measure of demand created by new development for each component of the capacity charges. The methodologies can be classified as looking at the past, present, and future capacities of infrastructure. The three basic methodologies are described below:

The buy-in methodology is used where infrastructure has been built in advance of new development and capacity is available to accommodate new development. Under this methodology, new development repays the community for previous capacity investments via the capacity fee. The funds are then available for future expansion of the system or repayment of costs associated with construction and/or financing of the infrastructure.

The incremental methodology uses growth projections, capital improvement plans (CIPs) and related master plans to identify infrastructure projects and facilities that would be needed to serve new development within the community, then determine the new developments’ share of any planned projects within the community. Projects that do not add capacity, such as routine maintenance or replacement of existing facilities, are not included in the capacity fees. Projects that add capacity are further evaluated as to the percentage of the project attributable to existing development versus new development.

Only incremental projects attributable to new development are included in capacity fees.

The third approach is known as a hybrid methodology. The hybrid approach is used in situations where there is available capacity in the existing system, but there are also future improvements that require additional upgrades or expansion that would serve new development.

Figure 1 below summarizes the different capacity charge calculation processes.

Attachment: A
Click here to return to the agenda.
5 | P a g e
Figure 1 – Capacity Charge Calculation Process
Within each of these generally accepted capacity charge setting methodologies, there are several different steps undertaken. These steps are as follows:
➢ Determination of system planning criteria – this step determines the amount of capacity required for a single equivalent residential unit (ERU). ➢ Determination of total system ERUs that can be served – This step determines the total ERUs that can be served by the system by dividing the total system capacity by a single ERU.
➢ Determination of total system costs – Using fixed asset data and planned capital projects, the total utility system facility or infrastructure costs can be determined. ➢ Determination of any credits (if applicable) – If any credits can be applied, such as debt service principal credits, the debt service principal is subtracted from the total fixed assets. This process is conducted since debt service is paid through user rates, and if it is not removed from the capacity charges, double counting can occur.

As stated previously in the executive summary, the proposed sewer collection capacity fees are based on the buy-in approach since the existing infrastructure has enough capacity to serve future development.

ATTACHMENT A
6 | P a g e
Section 2 – Sewer Capacity Fees

2.1 Sewer System Valuation
The current value of the City’s sewer facility assets was brought forward to today’s dollars using the Engineering News Record (ENR) Construction Cost Index (CCI). Using this index attempts to value the City’s assets at an amount that represents what it would cost to purchase or construct those assets today. It is important to recognize, however, that these assets are not new and are not being purchased today, but rather have been depreciated over time. Therefore, the accumulated depreciation is subtracted from the current day value of the assets to determine what is referred to as the Replacement Cost New Less Depreciation (RCNLD) fixed asset value.

The RCNLD fixed asset value for the City’s “Recoverable” sewer collection assets were calculated at $12,024,465, which future growth is being asked to “buy into” since these recoverable assets will benefit future new connections. A summary of the fixed assets by asset classification is shown in Table 2. A full list of the City’s fixed assets can be found in Appendix A.

Table 2 – Current Sewer Collection System Asset Valuation Description Original Cost Replacement
Cost New
Accumulated
Depreciation RCNLD
Asset Category:

Existing Facilities:

Collection $ 6,748,711 $ 14,652,089 $ (2,627,624) $ 12,024,465 Pump Station 654,840 1,145,971 (235,742) 910,229
Total Existing Facilities $ 7,403,551 $ 15,798,060 $ (2,863,366) $ 12,934,694 Recoverable Facilities:

Collection $ 6,748,711 $ 14,652,089 $ (2,627,624) $ 12,024,465 Pump Station - - - -
Total Recoverable Facilities $ 6,748,711 $ 14,652,089 $ (2,627,624) $ 12,024,465 Total Recoverable Assets $ 6,748,711 $ 14,652,089 $ (2,627,624) $ 12,024,465

ATTACHMENT A
7 | P a g e

2.2 Capacity Fee per Equivalent Residential Unit
Each utility system is designed to serve a maximum capacity on a Gallons Per Day (gpd) basis. To determine the total number of ERUs that can be served by the system, the average gpd per ERU must be known. Since average usage is not linear, peak demand must be accounted for since a utility system is designed based on the maximum gpd capacity that it can serve during peak periods. Once the peak demand of the system is applied (6.053- million-gallon max day / 3.485-million-gallon average day = 1.74 max day to average day factor) to the average gpd usage per ERU, the total number of ERUs that the system can serve can be determined. Table 3 provides the calculations used to determine the total ERUs, and Table 4 provides a summary of the total cost per ERU.

Table 3 – Total Sewer System ERUs

ATTACHMENT A
8 | P a g e
Table 4 – Total Cost per ERU

2.3 Capacity Fee by Meter Size
The previous section of the report identifies the capacity fee per ERU, which is equivalent to a single 5/8-inch water meter. The methodology for incrementing the capacity fee per ERU is based upon standardized meter/capacity criteria established by the AWWA and the Water Environment Federation (WEF) pursuant to the size of the water meter. Utilizing the AWWA/WEF demand criteria, the applicable ERU factors for larger water meters are based on the incremental increase in potential demand as compared to the standard meter size.

These factors are derived from actual flow testing results and are commonly utilized by the water and sewer utility industry. Since wastewater flow is generally a direct function of water flow, calculating the sewer capacity fee based upon the size of the water meter is equitable and consistent with industry standards. A summary of the AWWA meter-size equivalency factors is provided in Table 5. The proposed sewer capacity fees by meter size are provided in Table 6.

Description Value
Asset Category:

Recoverable Facilities:

Collection $ 12,024,465
Pump Station $ -
Total Recoverable Facilities $ 12,024,465
Total Recoverable Assets $ 12,024,465
÷
Total ERU Capacity 24,659
=
Cost per ERU $ 487

ATTACHMENT A
9 | P a g e
Table 5 – Meter Equivalency Factors
Table 6 – Proposed Sewer Capacity Fees by Meter Size

ATTACHMENT A
10 | P a g e
In situations where the application of the meter-based charges will result in the collection of capacity fees significantly differently than the potential demand requirement of a new customer requesting service, a special calculation methodology may be applied at the discretion of the Director of Public Works. For such situations, it is important for the utility to have the flexibility to utilize an ERU methodology for individual accounts based on specific capacity requirements.

This alternative/special calculation methodology is to apply the calculated cost per ERU as shown in Table 4 and as provided in Appendix B times the capacity requirement for the customer (e.g., a new customer requires 2,616 gpd of capacity / 436 gpd per ERU = 6.00 ERUs. The capacity fee charge calculation would be 6.00 ERUs x $487 per ERU = $2,922 total capacity fee charge). This type of situation will be uncommon and will typically only involve larger commercial and industrial connections. It is anticipated that, in such situations, the City will require certified engineering documentation defining the capacity utilization needs for the new customer. The full calculation of the capacity fee per ERU can be found in Appendix B.

ATTACHMENT A
11 | P a g e
Section 3 – Implementation

3.1 Capacity Charge Program Adoption Process
Capacity charge program adoption procedures are found in the California Government Code sections 66016 and 66017. Adoption of a capacity charge program requires the City Council to follow certain procedures including holding a public hearing. Data, such as a capacity charge report, must be made available at least 14 days prior to the public hearing.

The City’s legal counsel should be consulted about any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. Refer to California Government Code sections 66016 and 66017, or Appendix C, for the full detail regarding capacity charge program adoption procedures.

3.2 Reporting Requirements
The City will comply with the annual reporting requirements found in the California Government Code section 66013. For capital to be funded by a combination of public fees and other revenues, identification of the source and amount of these non-fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important. Refer to section 66013 for the annual reporting requirements. If an individual wishes to legally challenge or request an audit to determine if a capacity charge is reasonable, they may do so pursuant to sections 66022 and 66023. The full texts of California Government Code Sections 66013, 66022, and 66023 can be found in Appendix C.

3.3 Inflation Adjustment
The City can keep its capacity charge program up to date by periodically adjusting the charges for inflation based on the change in the index compared to the index of the base year of this study (2024). Such adjustments should be completed regularly to ensure that new connections will fund their share of the facilities needed. We recommend that the California Construction Cost Index (https://www.dgs.ca.gov/RESD/Resources/Page-Content/RealEstate-Services-Division-Resources-List-Folder/DGS-California-Construction-Cost-IndexCCCI) be used for adjusting the charges for inflation. The California Construction Cost Index is based on data from the Engineering News Record and is aggregated and made available for free by the State of California.

While capacity charge updates using inflation indices are appropriate for periodic updates to ensure that capacity charge revenues keep up with increases in the costs of facilities and capital, the City will also need to conduct more extensive updates of the capacity charge documentation and calculation (such as this study) when significant new data on growth forecasts and/or capital plans become available.

ATTACHMENT A
12 | P a g e
Section 4 – Recommendations & Conclusions

4.1 Recommendations
Based on the review and analysis herein, Willdan recommends:
➢ The city should adopt the sewer collection capacity fees for new connections.

The adopted fees for the sewer system should not exceed the fees set forth in this report.
➢ The adopted sewer fees should be updated annually by the January to December California Construction Cost Index.
➢ The City should update the actual calculations of the fees whenever a (1) new capital improvement plan is approved or updated by the City, or (2) every five years, or (3) when a major infrastructure project is complete. ➢ The City should conduct an update of the fees in five years to ensure the fees and revenues keep up with the costs of facilities and capital.

4.2 Conclusion
The capacity fees developed and presented herein are based on the planning and engineering design criteria of the City’s sewer collection system, the value of the existing assets, and planned capital projects. Consistently updating the fees annually based on the California Construction Cost Index and reviewing the fees every five years will continue to create equitable and cost-based charges for new customers connecting to the City’s sewer system.

ATTACHMENT A

APPENDIX

DETAIL FOR THE SEWER

CAPACITY FEE STUDY

SEWER CAPACITY FEE STUDY FOR THE

CITY OF STANTON, CALIFORNIA

ATTACHMENT A

APPENDIX A
Detailed Asset Data &
Existing Recoverable
Capital Costs

ATTACHMENT A
CITY OF STANTON, CA Date In Book Accumulated Book Net System Year In CCI Index All Asset Total Remaining OCLD Replacement RCNLD Asset Property Description Service Cost Deprec Book Value Type Service Factor Costs Depreciation Life % Cost New (RCN) 0 Collection
Collection BELL ST - RCP 1/1/1979 $ 33,182 $ 29,867 $ 3,314 Sewer 1979 4.95 $ 33,182 $ 29,867 9.99% $ 3,314 $ 164,250 $ 134,383 Collection CERRITOS AVE - RCP 1/1/1971 39,948 39,948 0 Sewer 1971 8.58 39,948 39,948 0.00% 0 342,754 302,806 Collection CERRITOS AVE - RCP 1/1/2002 351,380 154,611 196,769 Sewer 2002 2.07 351,380 154,611 56.00% 196,769 727,356 572,745 Collection COURT ST - RCP 1/1/2002 70,876 31,190 39,686 Sewer 2002 2.07 70,876 31,190 55.99% 39,686 146,713 115,523 Collection FILLMORE DR - RCP 1/1/1964 36,022 36,021 0 Sewer 1964 14.48 36,022 36,021 0.00% 0 521,595 485,574 Collection KATELLA AVE - RCP 1/1/1964 13,381 13,381 0 Sewer 1964 14.48 13,381 13,381 0.00% 0 193,757 180,376 Collection LEXINGTON ST - RCP 1/1/1971 22,710 22,710 0 Sewer 1971 8.58 22,710 22,710 0.00% 0 194,849 172,139 Collection MONROE ST - RCP 1/1/2002 319,981 140,795 179,186 Sewer 2002 2.07 319,981 140,795 56.00% 179,186 662,360 521,565 Collection PACIFIC AVE - RCP 1/1/1963 6,625 6,625 0 Sewer 1963 15.05 6,625 6,625 0.00% 0 99,703 93,078 Collection PACIFIC ST - RCB 1/1/1971 8,677 8,677 0 Sewer 1971 8.58 8,677 8,677 0.00% 0 74,452 65,775 Collection PACIFIC ST - RCP 1/1/2002 108,153 47,587 60,567 Sewer 2002 2.07 108,153 47,587 56.00% 60,567 223,878 176,291 Collection SAN MARCOS DR - RCP 1/1/1966 24,259 24,259 0 Sewer 1966 13.31 24,259 24,259 0.00% 0 322,890 298,631 Collection SOTHERN PACIFIC RAILWAY - RCP 1/1/1963 30,426 30,426 0 Sewer 1963 15.05 30,426 30,426 0.00% 0 457,906 427,480 Collection VIA JACARA - RCP 1/1/1971 28,838 28,838 0 Sewer 1971 8.58 28,838 28,838 0.00% 0 247,431 218,593 Collection VIA JACARA - RCP 1/1/1971 18,985 18,985 0 Sewer 1971 8.58 18,985 18,985 0.00% 0 162,893 143,908 Collection VILLAGE CENTER DR - RCP 1/1/1982 204,384 171,686 32,698 Sewer 1982 3.94 204,384 171,686 16.00% 32,698 805,273 633,587 Collection - 1/1/2003 1,095,618 482,069 613,549 Sewer 2003 2.03 1,095,618 482,069 56.00% 613,549 2,224,104 1,742,035 Collection WESTERN AVE - VCP 1/1/2004 69,394 27,759 41,636 Sewer 2004 1.91 69,394 27,759 60.00% 41,636 132,543 104,784 Collection WESTERN AVE - VCP 1/1/2004 47,179 19,347 27,832 Sewer 2004 1.91 47,179 19,347 58.99% 27,832 90,112 70,765 Collection CERRITOS - VCP 1/1/2006 1,852,719 666,977 1,185,742 Sewer 2006 1.75 1,852,719 666,977 64.00% 1,185,742 3,242,259 2,575,282 Collection BEACH BLVD - VCP 1/1/2007 710,021 248,506 461,516 Sewer 2007 1.70 710,021 248,506 65.00% 461,516 1,207,036 958,530 Collection ROSE ST - VCP 1/1/2007 550,706 187,239 363,466 Sewer 2007 1.70 550,706 187,239 66.00% 363,466 936,200 748,961 Collection Garden Grove Bl - VCP 1/1/2010 220,021 61,605 158,415 Sewer 2010 1.54 220,021 61,605 72.00% 158,415 338,832 277,227 Collection Garden Grove Bl - VCP 1/1/2010 99,632 27,897 71,735 Sewer 2010 1.54 99,632 27,897 72.00% 71,735 153,433 125,536 Collection Garden Grove Bl - VCP 1/1/2010 95,481 26,735 68,746 Sewer 2010 1.54 95,481 26,735 72.00% 68,746 147,040 120,305 Collection Thunderbird Ln - VCP 1/1/2018 541,294 64,955 476,339 Sewer 2018 1.23 541,294 64,955 88.00% 476,339 665,792 600,837 Collection 12880 Beach Boulevard - VCP 1/1/2021 148,820 8,929 139,891 Sewer 2021 1.12 148,820 8,929 94.00% 139,891 166,678 157,749 Subtotal $ 6,748,711 $ 2,627,622 $ 4,121,089 $ 6,748,711 $ 2,627,622 $ 4,121,089 $ 14,652,089 $ 12,024,465 Pump Station
Pump Station Sewer By-Pass (Pump Station Rebuild) 1/1/2006 $ 654,840 $ 235,742 $ 419,099 Sewer 2006 1.75 $ 654,840 $ 235,742 64.00% $ 419,099 $ 1,145,971 $ 910,229 Subtotal $ 654,840 $ 235,742 $ 419,099 $ 654,840 $ 235,742 $ 419,099 $ 1,145,971 $ 910,229

GROUP SUMMARY
Cost Depreciation Cost
Group Beginning Ending Ending
Collection 6,748,711 2,627,622 4,121,089 6,748,711 2,627,622 4,121,089 14,652,089 12,024,465 Pump Station 654,840 235,742 419,099 654,840 235,742 419,099 1,145,971 910,229 Grand Total 7,403,551 $2,863,364 $4,540,187 $ 7,403,551 $ 2,863,364 $ 4,540,187 $ 15,798,060 $ 12,934,694 SEWER
Collection 6,748,710.72 2,627,622 4,121,089 6,748,711 2,627,622 4,121,089 14,652,089 12,024,465 Pump Station 654,840.38 235,742 419,099 654,840 235,742 419,099 1,145,971 910,229 Total 7,403,551.10 $2,863,364 $4,540,187 $ 7,403,551 $ 2,863,364 $ 4,540,187 $ 15,798,060 $ 12,934,694 A - 1

ATTACHMENT A

CITY OF STANTON, CA

SEWER SYSTEM

EXISTING CAPITAL COSTS RECOVERABLE FROM CAPACITY FEES

WASTEWATER ASSETS
Total Assets by Category:
1 Collection $ 6,748,711 $ 14,652,089 $ (2,627,624) $ 12,024,465 2 Pump Station 654,840 1,145,971 (235,742) 910,229
3 Total $ 7,403,551 $ 15,798,060 $ (2,863,366) $ 12,934,694 Recoverable Allocation - Wastewater (%):
4 Collection 100%
5 Pump Station 0%
System Allocation - Wastewater ($):
6 Collection $ 12,024,465
7 Pump Station 0
8 Total $ 12,024,465
9 Grand Total Recoverable Assets $ 12,024,465

COMPARISON TO TOTAL
10 Total Utility Assets $ 12,934,694
11 Combined Recoverable Assets $ 12,024,465
Difference (Assets Excluded From Recovery):
12 Excluded From Recovery ($) $ 910,229
13 Excluded From Recovery (%) 7.04%
Line Description Original Cost Replacement
Cost New RCNLD AccumulatedDepreciation
A - 2

ATTACHMENT A

APPENDIX B
Sewer Capacity Fee
Calculation

ATTACHMENT A

CITY OF STANTON, CA

SEWER SYSTEM

SEWER CALCULATION OF CAPACITY FEE PER ERU
Line Description Total
Existing Facilities:
1 Collection $ 12,024,465
2 Pump Station 0
3 Subtotal $ 12,024,465
4 Total Recoverable Assets: $ 12,024,465
Sewer Capacity (MGD):
5 Total Collection System 10.75
6 Total System Capacity (MGD) 10.75
7 Assumed Standard Level of Service Per Capita (gpd) 75 8 Average Persons per Household 3.34
9 Average Use per ERU (gpd) 251
x
10 Peak System Demand (Max Day to Avg Day) 1.74
11 Peak Flows per ERU 436
12 Total ERU Capacity (Total System Capacity/Peak Flows per ERU) 24,659 13 Combined Cost $ 487
Calculation of Proposed Fee Per ERU
Total Estimated Capacity (ERUs)
Available System Capacity (MGD)
Recoverable Capital Facilities
B - 1

ATTACHMENT A

APPENDIX C
California Government Code:

Sections Pertaining to
Capacity Charges

ATTACHMENT A
California Government Code § 66013
(a) Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue. (b) As used in this section:
(1) "Sewer connection" means the connection of a structure or project to a public sewer system.
(2) "Water connection" means the connection of a structure or project to a public water system, as defined in subdivision (h) of Section 116275 of the Health and Safety Code.
(3) "Capacity charge" means a charge for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. A "capacity charge" does not include a commodity charge.
(4) "Local agency" means a local agency as defined in Section 66000. (5) "Fee" means a fee for the physical facilities necessary to make a water connection or sewer connection, including, but not limited to, meters, meter boxes, and pipelines from the structure or project to a water distribution line or sewer main, and the estimated reasonable cost of labor and materials for installation of those facilities bears a fair or reasonable relationship to the payor's burdens on, or benefits received from, the water connection or sewer connection.
(6) "Public facilities" means public facilities as defined in Section 66000.

ATTACHMENT A
(c) A local agency receiving payment of a charge as specified in paragraph (3) of subdivision (b) shall deposit it in a separate capital facilities fund with other charges received, and account for the charges in a manner to avoid any commingling with other moneys of the local agency, except for investments, and shall expend those charges solely for the purposes for which the charges were collected. Any interest income earned from the investment of moneys in the capital facilities fund shall be deposited in that fund. (d) For a fund established pursuant to subdivision (c), a local agency shall make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year:
(1) A description of the charges deposited in the fund. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund.
(3) The amount of charges collected in that fiscal year. (4) An identification of all of the following:
(A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.
(B) Each public improvement on which charges were expended that was completed during that fiscal year.
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year.
(5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan.

ATTACHMENT A
(e) The information required pursuant to subdivision (d) may be included in the local agency's annual financial report.
(f) The provisions of subdivisions (c) and (d) shall not apply to any of the following:
(1) Moneys received to construct public facilities pursuant to a contract between a local agency and a person or entity, including, but not limited to, a reimbursement agreement pursuant to Section 66003.
(2) Charges that are used to pay existing debt service or which are subject to a contract with a trustee for bondholders that requires a different accounting of the charges, or charges that are used to reimburse the local agency or to reimburse a person or entity who advanced funds under a reimbursement agreement or contract for facilities in existence at the time the charges are collected.
(3) Charges collected on or before December 31, 1998.
(g) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion imposing a fee or capacity charge subject to this section shall be brought pursuant to Section 66022.
(h) Fees and charges subject to this section are not subject to the provisions of Chapter 5 (commencing with Section 66000), but are subject to the provisions of Sections 66016, 66022, and 66023.
(i) Subdivisions (c) and (d) only apply to capacity charges levied pursuant to this section.

ATTACHMENT A
California Government Code § 66016
(a) Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting on new or increased fees or service charges. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service. At least 10 days prior to the meeting, the local agency shall make available to the public data indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including General Fund revenues. Unless there has been voter approval, as prescribed by Section 66013 or 66014, no local agency shall levy a new fee or service charge or increase an existing fee or service charge to an amount which exceeds the estimated amount required to provide the service for which the fee or service charge is levied. If, however, the fees or service charges create revenues in excess of actual cost, those revenues shall be used to reduce the fee or service charge creating the excess. (b) Any action by a local agency to levy a new fee or service charge or to approve an increase in an existing fee or service charge shall be taken only by ordinance or resolution. The legislative body of a local agency shall not delegate the authority to adopt a new fee or service charge, or to increase a fee or service charge.
(c) Any costs incurred by a local agency in conducting the meeting or meetings required pursuant to subdivision (a) may be recovered from fees charged for the services which were the subject of the meeting.
(d) This section shall apply only to fees and charges as described in Sections 51287, 56383, 65104, 65456, 65584.1, 65863.7, 65909.5, 66013, 66014, and 66451.2 of this code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code. (e) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion levying a fee or service charge subject to this section shall be brought pursuant to Section 66022.

ATTACHMENT A
California Government Code § 66017
(a) Any action adopting a fee or charge, or increasing a fee or charge adopted, upon a development project, as defined in Section 66000, which applies to the filing, accepting, reviewing, approving, or issuing of an application, permit, or entitlement to use shall be enacted in accordance with the notice and public hearing procedures specified in Section 54986 or 66016 and shall be effective no sooner than 60 days following the final action on the adoption of the fee or charge or increase in the fee or charge. (b) Without following the procedure otherwise required for the adoption of a fee or charge, or increasing a fee or charge, the legislative body of a local agency may adopt an urgency measure as an interim authorization for a fee or charge, or increase in a fee or charge, to protect the public health, welfare and safety. The interim authorization shall require four-fifths vote of the legislative body for adoption. The interim authorization shall have no force or effect 30 days after its adoption. The interim authority shall contain findings describing the current and immediate threat to the public health, welfare, and safety. After notice and public hearing pursuant to Section 54986 or 66016, the legislative body may extend the interim authority for an additional 30 days. Not more than two extensions may be granted. Any extension shall also require a four-fifths vote of the legislative body.

ATTACHMENT A
California Government Code § 66022
(a) Any judicial action or proceeding to attack, review, set aside, void, or annul an ordinance, resolution, or motion adopting a new fee or service charge, or modifying or amending an existing fee or service charge, adopted by a local agency, as defined in Section 66000, shall be commenced within 120 days of the effective date of the ordinance, resolution, or motion.

If an ordinance, resolution, or motion provides for an automatic adjustment in a fee or service charge, and the automatic adjustment results in an increase in the amount of a fee or service charge, any action or proceeding to attack, review, set aside, void, or annul the increase shall be commenced within 120 days of the effective date of the increase. (b) Any action by a local agency or interested person under this section shall be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.
(c) This section shall apply only to fees, capacity charges, and service charges described in and subject to Sections 66013, 66014, and 66016.

ATTACHMENT A
California Government Code § 66023
(a) Any person may request an audit in order to determine whether any fee or charge levied by a local agency exceeds the amount reasonably necessary to cover the cost of any product, public facility, as defined in Section 66000, or service provided by the local agency. If a person makes that request, the legislative body of the local agency may retain an independent auditor to conduct an audit to determine whether the fee or charge is reasonable, but is not required to conduct the audit if an audit has been performed for the same fee within the previous 12 months. (b) To the extent that the audit determines that the amount of any fee or charge does not meet the requirements of this section, the local agency shall adjust the fee accordingly. This subdivision does not apply to a fee authorized pursuant to Section 17620 of the Education Code, or Sections 65995.5 and 65995.7. (c) Except as otherwise provided in subdivision (h), the local agency shall retain an independent auditor to conduct an audit only if the person who requests the audit deposits with the local agency the amount of the local agency's reasonable estimate of the cost of the independent audit. At the conclusion of the audit, the local agency shall reimburse unused sums, if any, or the requesting person shall pay the local agency the excess of the actual cost of the audit over the sum which was deposited. (d) Any audit conducted by an independent auditor to determine whether a fee or charge levied by a local agency exceeds the amount reasonably necessary to cover the cost of providing the product or service shall conform to generally accepted auditing standards. (e) The procedures specified in this section shall be alternative and in addition to those specified in Section 54985.
(f) The Legislature finds and declares that oversight of local agency fees is a matter of statewide interest and concern. It is, therefore, the intent of the Legislature that this chapter shall supersede all conflicting local laws and shall apply in charter cities. (g) This section shall not be construed as granting any additional authority to any local agency to levy any fee or charge which is not otherwise authorized by another provision of law, nor shall its provisions be construed as granting authority to any local agency to levy a new fee or charge when other provisions of law specifically prohibit the levy of a fee or charge.

ATTACHMENT A
27368 Via Industria, Suite 200
Temecula, CA 92590
800.755.6864 | Fax: 888.326.6864
www.willdan.com

ATTACHMENT A
RESOLUTION NO. 2025-07

Page 1 of 2 ends

RESOLUTION NO. 2025-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA,

ADOPTING A SEWER CAPACITY CHARGE
WHEREAS, the City retained a third-party consultant to conduct a sewer capacity charge study (the “Study”) analyzing the City’s costs of providing sewer collection services to new or expanded development within the City; and
WHEREAS, the purpose of the study is to maintain equity between existing customers and new customers connecting to the City’s sewer utility system; and WHEREAS, the objective of the study was to calculate the cost-based capacity charge for new customers connecting to, or requesting additional capacity in, the City’s sewer utility system; and
WHEREAS, the results of the study determined the cost per Equivalent Residential Unit (ERU) is $487 per ERU; and
WHEREAS, the City’s sewer capacity charge is adopted in accordance with Government Code sections 66016 and 66017 and all other legal requirements have been satisfied.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS:

SECTION 1: The City Council finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

SECTION 2: The approval of the Fees herein is not a project under the California Environmental Quality Act (“CEQA”) pursuant to State Guidelines Section State CEQA Guidelines, sections 15060, subd. (c)(2)-(3), 15378 because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.) SECTION 3: The City Council further finds that all procedural requirements of Government Code sections 66016 and 66017 have been satisfied and the sewer capacity charge specified by this Resolution does not exceed the reasonably estimated cost for which the sewer capacity charge is imposed.

SECTION 4: The sewer capacity charge in the City shall be $487 per ERU.

SECTION 5: The sewer capacity charge will be deposited in the City’s Sewer Capacity Charge Enterprise Fund.

Attachment: B
Click here to return to the agenda.

RESOLUTION NO. 2025-07

Page 2 of 2 ends

SECTION 6: Revenues deposited in the City’s Sewer Capacity Charge Enterprise Fund can be used to reimburse the City for prior infrastructure investments and to fund planned future capital projects for the City’s sewer system.

SECTION 7: On July 1, 2026, and on each July 1 thereafter, the sewer capacity charge shall increase by the percentage increase in the California Construction Cost Index ("CCI"). However, no CCI adjustment resulting in a decrease of any fee imposed by this subsection shall be made.

SECTION 8: This Resolution shall go into full force and effect immediately upon its adoption.

SECTION 9: The City Clerk shall certify to the adoption of this Resolution.

ADOPTED, SIGNED AND APPROVED this 25th day of March 2025.

DAVID J. SHAWVER, MAYOR
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY
ATTEST:

I, Patricia A. Vazquez, City Clerk of the City of Stanton, California DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025-07 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the Stanton City Council, held on March 25, 2025, and that the same was adopted, signed and approved by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICIA A. VAZQUEZ, CITY CLERK
1 CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: March 25, 2025
SUBJECT: SETTING OF PUBLIC HEARING TO CONSIDER ESTABLISHING A

SEWER USER RATE FOR SEWER SERVICES FOR FISCAL YEAR
2025/26 THROUGH FISCAL YEAR 2029/30
REPORT IN BRIEF:

On September 10, 2024, the City Council approved a professional services agreement with Willdan Financial Services (“Willdan”) to complete a sewer rate study to assist the City with developing cost-based sewer rates to fund the maintenance and capital improvement program for the City’s sewer system from Fiscal Years 2025/26 through 2029/30. Staff is seeking City Council approval of the Comprehensive Sewer Utility Rate Study report (“study”) (Attachment A). If the City Council approves the recommended fees, then City staff will return the final report for City Council approval and adoption at a public hearing on June 10, 2025.

RECOMMENDED ACTION:

2. Approve the Comprehensive Sewer Utility Rate Study report; and

3. Set the public hearing for Tuesday, June 10, 2025 at 6:30 p.m., to receive public comment regarding the proposed sewer rates.

BACKGROUND:

The City currently operates and maintains a sewer collection system for over 40,000 connections. The network of sanitary sewers is comprised of 55.4 miles of mains with approximately 550 manholes and 5,000 sewer laterals. The City charges fees to operate the system by placing an Annual Sewer Charge on the property tax roll. The Item: 12C
Click here to return to the agenda.
2 activity for the sewer system is recorded in the City’s Sewer Maintenance Enterprise Fund (#501) and Sewer Capital Reserve Enterprise Fund (#502). The rates customers pay can only be spent on the City’s sewer system and no other City funds can be used to fund the City’s sewer system.

The City’s last sewer rate study was completed in 2017 by Harris & Associates. On August 8, 2017, the City Council adopted Ordinance No. 1068, which approved the fiveyear rate structure for sewer fees from Fiscal Years 2017/18 through 2021/22 presented below:

Residential Land Uses
Fiscal Year
2017/18 2018/19 2019/20 2020/21 2021/22
Detached Single Family Residential $62.96 $65.16 $67.44 $69.80 $72.25 MFR/Condo $50.37 $52.13 $53.96 $55.84 $57.80
Mobile Home/MHP (Park) $31.48 $32.58 $33.72 $34.90 $36.12 The annual sewer charge for nonresidential parcels is calculated by multiplying the estimated waste discharge as a percentage of a single family residential rate per 1,000 square feet based on the typical wastewater discharge rates for parcels in its service area determined by the Orange County Sanitation District. This is the same methodology the Orange County Sanitation District uses to calculate its sewer service charges for non-residential parcels.

The City’s Annual Sewer Service Charge has remained the same since Fiscal Year 2021/22.

ANALYSIS/JUSTIFICATION:

The City’s sewer rates have remained unchanged since Fiscal Year 2021/22 because a project updating the City’s Sewer Master Plan was in progress. The Sewer Master Plan Update was approved on July 9, 2024, with an identified capital improvement program funding need of $18.9 million over the next ten years.

Based on the cost-of-service analysis included in the study, which includes funding the capital improvements recommended in the City’s 2024 Sewer Master Plan Update, the proposed residential rates are presented in the table below:

Residential Land Uses
Fiscal Year
2025/26 2026/27 2027/28 2028/29 2029/30
Detached Single Family Residential $87.42 $105.78 $127.99 $154.87 $187.39 MFR/Condo $69.94 $84.62 $102.39 $123.90 $149.91
Mobile Home/MHP (Park) $43.71 $52.89 $64.00 $77.44 $93.70 Using the detached single family residential rate as an example, the proposed rate for next year is an annual increase of $15.17 (or $1.26 per month). 3 The methodology for calculating non-residential rates will be consistent with the City’s current methodology (which is consistent with the methodology the Orange County Sanitation District follows for assessment of its sewer service charges on nonresidential properties as previously discussed).

The City must follow the requirements of Proposition 218 because the City’s annual sewer service charge is a property related fee. Proposition 218 requires the City to mail notices of a public hearing to all affected property owners a minimum of 45 days prior to the date of the public hearing. If a majority of the affected property owners submit written protests prior to the closure of the public hearing, then the fee or charge may not be imposed. If the City Council approves the study and staff’s recommendation to hold a public hearing on June 10, 2025, then Willdan will facilitate the mailing of the public hearing notices to occur no later than April 24, 2025.

FISCAL IMPACT:

None. If the City Council approves the study, then the City Council will consider the approval of the proposed rates at a public hearing on June 10, 2025.

ENVIRONMENTAL IMPACT:

None.

LEGAL REVIEW:

None.

PUBLIC NOTIFICATION:

None.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 3: Provide a quality infrastructure.

Prepared by: Michelle Bannigan, Finance Director
Reviewed by: Cesar Rangel P.E., Director of Public Works/City Engineer Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENT:

A. Comprehensive Sewer Utility Rate Study
City of Stanton, CA
Comprehensive Sewer
Utility Rate Study
Report

ATTACHMENT A

Page 1 of 46 ends

Click here to return to the agenda.
i Sewer Rate Study
March 19, 2025

1.1 Introduction.........................................................................................................................................1

1.2 Overview of the Rate Study Process............................................................................................2

1.3 Summary of Proposed Rates..........................................................................................................3 Section 2 – Revenue Sufficiency Analysis ..........................................................................................5

2.1 Financial Planning Principles..........................................................................................................5

2.2 Existing Rates.......................................................................................................................................5

2.3 Revenue Sufficiency Process .........................................................................................................6

2.3.1 Budget..........................................................................................................................................6

2.3.2 Capital Improvement Plan (CIP) ..........................................................................................7

2.3.3 Debt Service ...............................................................................................................................7

2.3.4 Gross and Net Revenue Requirement ................................................................................8

2.4 Customer Data...................................................................................................................................8

2.4.1 Customer Billing Analysis..........................................................................................................9

2.5 Financial Projections Under Existing Rates..................................................................................9 Section 3 – Cost-of-Service (COS) Analysis .....................................................................................11

3.1 General ..............................................................................................................................................11

3.2 Sewer Cost-of-Service....................................................................................................................11

3.2.1 Functional Unbundling of Revenue Requirements........................................................11

3.2.2 Classification of Revenue Requirements..........................................................................12

3.2.3 Allocation to Customer Classes and Unit Cost Development....................................13

3.2.4 COS and Revenue Check....................................................................................................17 Section 4 – Proposed Test Year Rates ...............................................................................................19

4.1 General ..............................................................................................................................................19

4.2 Rate Comparison with Other Utilities .........................................................................................20 Section 5 – Projected Operating Results ..........................................................................................22

5.1 General ..............................................................................................................................................22

ATTACHMENT A

Page 2 of 46 ends

ii Sewer Rate Study
March 19, 2025

5.2 Projected User Rate Revenues....................................................................................................22

5.3 Summary of Projected Operating Results ................................................................................24 Section 6 – Conclusions and Recommendations ............................................................................26

6.1 Disclaimers...............................................................................................................................................26

6.1.1 General Disclaimer .................................................................................................................26

6.1.2 Municipal Advisory Disclaimer.............................................................................................26

6.2 Conclusions.......................................................................................................................................27

6.3 Recommendations.........................................................................................................................28

ATTACHMENT A

Page 3 of 46 ends

1 | P a g e
Section 1 – Executive Summary

1.1 Introduction
Willdan Financial Services (Willdan) is pleased to submit to the City of Stanton (the “City”) the following Sewer Rate Study report (the “Report”) for your consideration. Willdan has completed this study of the City’s sewer rates, which are submitted annually to the Orange County Auditor-Controller’s office for placement each year on the Orange County Secured Property Tax Roll. The results of the investigations, analyses, and conclusions from this study are summarized in this Report.

The City’s wastewater collection facilities include a network of gravity sewers, manholes, cleanouts, and siphons. The sewer collection system was mostly constructed during the 1950s and 1960s and consists predominantly of seventy (70) to eighty (80) year-old Vitrified Clay Pipe (VCP) gravity sewer pipelines. The City’s ongoing operations and maintenance activities to keep the system in optimal condition include the cleaning, video recording, inspection and repairing of faulty sections of the system and replacement of aging or faulty system components.

The City provides sewer collection services through the established Sanitary Sewer enterprise to different types of customers within its incorporated limits. Wastewater is collected from City customers and conveyed through the City’s system to the Orange County Sanitation District (OCSD), Service Area 3 for treatment and disposal. The City’s system also conveys a minimal amount of wastewater from the Cities of Anaheim and Garden Grove, which flow into the City’s sewer system at twenty-three (23) locations, to OCSD for treatment. As mentioned above, customers and property owners in the City pay for these services through an annual charge placed on the Orange County Secured Property Tax Roll and collected as part of their annual secured property tax bills. The cost of conveying wastewater from the Cities of Anaheim and Garden Grove are funded from the Sewer System’s other unrestricted revenue (not sewer service charges). The City’s collection and conveyance system is comprised of 55.4 miles of mains with approximately 550 manholes and 5,000 sewer laterals.

In 2024, the City conducted an update of their 2013 Sewer Master Plan. The 2013 Sewer Master Plan included an evaluation of the existing sanitary system, a capacity analysis inspection, hydraulic modeling of the City’s collection system, and development of future flow projections. The Sewer Master Plan also included recommendations for pipeline improvements. Additional information pertaining to major elements of the City’s sewer collection system and specific system improvements was included in the Master Plan. Due to increased growth in development, system modifications, ongoing water conservation efforts, and aging infrastructure, the City updated its infrastructure needs and Capital Improvement Program (CIP). The infrastructure needs and capital improvements identified in the City’s updated 2024 Sewer Master Plan update are included in the sewer rate study analysis.

ATTACHMENT A

Page 4 of 46 ends

2 | P a g e
The City has focused a significant amount of attention and effort on strategic and master planning measures in all areas of sewer utility operations to ensure that the sewer system is able to continue providing uninterrupted service to its customers, and so that it remains prepared for the future. As part of its ongoing planning efforts, the City commissioned Willdan to perform a sewer rate study to analyze the revenue sources and expenditures of the sewer utility system, develop a five-year financial analysis, and provide recommendations for proposed rate and/or rate structure adjustments to meet the financial and administrative goals and objectives of the City. The primary objectives of the rate study include:
➢ Full recovery of costs related to utility operations (i.e., operating and maintenance costs, debt, and other expenditure requirements);
➢ Development of cost-based rate structures;
➢ Maintaining consistency with Water Environment Federation (“WEF”) guidelines; ➢ Providing for equity among customer classes;
➢ Meeting substantive and procedural Proposition 218 requirements; ➢ Maximizing administrative efficiency (i.e., easy to understand and implement); and ➢ Incorporation into the analysis of a 5-Year capital funding plan.

1.2 Overview of the Rate Study Process
This study includes the development and presentation of a pro-forma sewer financial plan for a 5-year planning period, as well as the development of cost-based rates through a costof-service and rate design analysis. Utility rates must be set at a level such that operating, maintenance, debt, and capital expenses are funded with the revenues received from customers. In addition, the revenues generated from utility rates must only be used for this purpose and for the sewer system only. This is a significant point, as failure to achieve the revenues needed can lead to unacceptable service levels, inadequately maintained facilities, and potentially regulatory or health and safety concerns. Therefore, a rate study typically consists of the following three interrelated analyses:

I. Financial Planning/Revenue Requirement Analysis: Creates a five-year plan to support an orderly, efficient program of on-going maintenance and operating costs, capital improvement and replacement activities, debt financing, and retirement of outstanding debt. In addition, the plan should fund and maintain appropriate reserve balances based on industry standards, as well as the City’s fiscal policies and specific needs.

II. Cost-of-Service Analysis: Identifies and apportions annual revenue requirements (i.e., expenditures) to operational and functional cost components based on the demand placed on the sewer utility system. The purpose of this analysis is to develop rates that generate revenues relatively proportionate to the share of the

ATTACHMENT A

Page 5 of 46 ends

3 | P a g e
utility’s costs. This objective is consistent with industry standards as well as the requirements of Proposition 218.

III. Rate Design: Develops an equitable and proportionate schedule of rates for the City’s customer base. The policy objectives are coordinated with Proposition 218 (Prop 218) requirements and cost-of-service objectives to achieve a balance between customer equity and financial stability goals.

This rate study utilizes generally accepted rate-making principles and standards established by industry experts such as the WEF in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27”. The principles established by these entities are used as guidelines in the development of the proposed sewer rates. A discussion of some of the key principles of ratemaking is presented in the following subsection of this Report.

1.3 Summary of Proposed Rates
The rate study methodology applied in the development of updated sewer rates, outlined in this Report, consisted of reviewing the historical operating results of the sewer utility system, analyzing the budget to identify the net revenue requirements to be recovered from user rate revenues, performing general cost-of-service allocations based on the rate components and functional cost categories, and revising the rates based on the applicable costs and expenditures to be recovered from user rates. In addition, an analysis of the system’s customers was performed to identify the rate determinants since they drive the recommended rates, which are the primary source for generating revenues. The allocated revenue requirements were utilized in conjunction with the rate determinants and rate structure to develop the proposed sewer rates.

The findings and conclusions of the rate analysis, as well as the resulting revised rate recommendations, were utilized to develop a projection of future operating results for a 5- Rate Design Analysis
Considers both the level and structure of the rate design to collect the appropiate and targeted level of revenues.

Cost of Service Analysis
Allocates the revenue requirements to the fixed/variable cost components based on cost of service.

Revenue Requirement Analysis
Compares the revenues to the expenses of the utility
to determine the overall rate adjustment required.

ATTACHMENT A

Page 6 of 46 ends

4 | P a g e
year planning period from Fiscal Year (FY) 2026 (beginning July 1, 2025) through FY 2030 (ending June 30, 2030), herein referred to as the “Projection Period”. The purpose for developing the 5-year projections is to demonstrate the financial capability of the sewer revenues to support system operations and fund planned capital improvements. The analyses, findings and accompanying recommendations are presented in the subsequent sections of the Report.

The sewer rate analysis described in the Report is performed based on the general guidelines of the defined objectives, as well as common industry standards for setting utility rates. The proposed sewer rates for assumed for implementation effective July 1, 2025 (or other such date as determined by the City) for FY 2025/26 (FY 2026, herein referred to as the “Test Year”) are provided in Table 1. It is anticipated that the charges, based on these rates, will be submitted to the Orange County Auditor-Controller’s office for placement on Fiscal Year 2025/2026 Annual Secured Property Tax Bills. The property tax bills are typically sent out in early fall each year, with payments due to the Orange County Tax Collector by the following December 10th and April 10th. The existing rates are provided in Table 2.

Table 1 – Proposed Annual Sewer Rates per Equivalent Residential Unit (ERU)

ATTACHMENT A

Page 7 of 46 ends

5 | P a g e
Section 2 – Revenue Sufficiency Analysis

2.1 Financial Planning Principles
While the individual rates for a utility system vary based on a variety of factors, rates should be consistent with common rate-making principles within the utility industry. The guiding principle is that rates designed for any utility should provide a reasonable balance between key factors. In general, the utility rates should:
➢ Generate stable user revenues that, when combined with other sources of funds, are sufficient to meet the expenditure requirements and goals of the system. ➢ Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service – in compliance with California Proposition 218.

2.2 Existing Rates
As described in the Introduction to this report, the City has an established Sanitary Sewer enterprise to pay for the maintenance and operation of the sewer collection and conveyance facilities within the City. The utility consists of all properties within the corporate limits of the City. Annual sewer charges are submitted to the Orange County Auditor Controller’s office, based on the associated waste discharge for each parcel.

The existing annual sewer collection and conveyance rates consist of a charge per Equivalent Residential Unit (“ERU”) based on each parcel’s estimated waste discharge and property use classification. The existing rates for sewer collection and conveyance services are provided in Table 2.

ATTACHMENT A

Page 8 of 46 ends

6 | P a g e
Table 2 – Existing Annual Sewer Rates per Equivalent Residential Unit (ERU)

2.3 Revenue Sufficiency Process
In evaluating whether the existing rates will generate sufficient revenue to meet the expenditure requirements of the sewer system, the annual expenditures required for the sewer utility system (herein referred to as the “Revenue Requirements”) must be developed.

The Revenue Sufficiency Analysis compares the forecasted revenues for the sewer utility system under existing rates (including customer growth) to the projected Revenue Requirements.

2.3.1 Budget
The revenue sufficiency analysis performed as part of this study and summarized in this report utilizes the City’s adopted budget for FY 2024/25 (the “Budget” for FY ending June 30, 2025) as one variable to determine the gross Revenue Requirements to be recovered from user rates over the Projection Period. The Budget, as prepared by the City, is provided on a lineitem basis, and is used for projecting the budgeted financial needs for the Test Year and the remainder of the Projection Period. In developing the rate analysis, certain adjustments are made such that the expenditures are categorized into either Operating and Maintenance (O&M) expenses or non-operating expenses. In addition, only recurring costs included in the current Budget were included as part of the revenue requirement analysis. One-time costs were identified and evaluated in discussions with City Staff and removed if appropriate.

Recurring annual costs were escalated using suitable indexes or escalation factors, again in

ATTACHMENT A

Page 9 of 46 ends

7 | P a g e
discussion with City Staff. The O&M expenses are primarily those ongoing costs for labor, materials, supplies, services, etc., required to manage and operate the utility system on a day-to-day basis while maintaining a dependable level of service. The O&M requirements are generally a function of a budgetary process and are directly related to the level of service provided to customers of the utility system. The non-operating expenses include such items as capital outlay and any other expenses & transfers.

The Budget also identifies estimated revenues derived from sources other than sewer user rates. Such other revenue sources include interest earnings on investments, and various other miscellaneous service charges. If there are revenues generated from the other sources, those revenues are applied to the gross Revenue Requirements to reduce the amount of revenue required from user rates. The result is the net Revenue Requirement.

2.3.2 Capital Improvement Plan (CIP)
The City provided a list of anticipated capital projects to be undertaken over the Projection Period, which are also included in the development of the gross Revenue Requirements. The capital projects provided by and identified by the City in the CIP are required in order to maintain uninterrupted service to customers by investing in improvements, repairs, or replacements of aging system components as they wear over time. The City developed this CIP based on needs and deficiencies identified in the Sewer Master Plan completed in 2024, that was mentioned previously in this report. The City also provided cost estimates for the identified capital projects by the fiscal year in which they are estimated to be undertaken.

The funding for these capital projects was then used in the analysis, along with O&M and non-operating expenses, to determine the gross revenue requirements for the sewer system.

The capital projects included in the CIP, along with their assumed funding sources, for the Projection Period are provided in Table 3.

Table 3 – Sewer CIP ($1,000s)

2.3.3 Debt Service
The City currently has no outstanding debt associated with the sewer utility system. Also, there are no anticipated future debt issuances included in the Projection Period. Therefore, no annual debt service payments or debt service ratio calculations are included in the analysis and Projection Period.

ATTACHMENT A

Page 10 of 46 ends

8 | P a g e

2.3.4 Gross and Net Revenue Requirement
The proposed sewer rates developed in the Report are designed for assumed implementation for FY 2025/26 (the Test Year as previously defined). The projected Test Year gross and net Revenue Requirements are estimated by utilizing the Budget and capital estimates and assumed funding sources for capital projects as provided by the City, along with anticipated transfers. The Test Year Revenue Requirements that are used for developing the user rates proposed herein are detailed in Appendix A at the end of this report and summarized in Table 4.

Table 4 – Test Year Revenue Requirements – FY 2025
The projected Revenue Requirements for the sewer system over the entire Projection Period are provided in Table 5.

Table 5 – Sewer Revenue Requirements for the Projection Period

2.4 Customer Data
The rate study described herein is heavily reliant upon a detailed analysis of system customers and demand characteristics. The existing utility customer base provides the determinants utilized in the cost-of-service analysis, and ultimately in calculating the sewer charges, which become the foundation for projecting future revenues generated by the sewer system.

It is important to note that the customer analysis focuses primarily on the customer classifications that will be subject to and impacted by the user rates and charges to be developed in the Report. This consists of the general service (retail) customers that currently pay for utility service pursuant to the existing user rates and charges as previously detailed.

For the purposes of the rate study, it is these customers that will generate revenues based upon the proposed user rates and charges.

ATTACHMENT A

Page 11 of 46 ends

9 | P a g e

2.4.1 Customer Billing Analysis
For the rate study, detailed billing information was provided for each individual parcel. This data offered a breakdown of parcels by property use classification, demand characteristics and billed charges. An analysis of the billing data was conducted to obtain an understanding of the existing parcels, property use classifications, and demand characteristics per parcel.

Each of these parcels embody certain characteristics in their utility use and service demand profiles that provide the basis for establishing an equitable allocation of system costs. The billing data was utilized to identify the number of ERUs associated with each property use classification as identified in Orange County Sanitation District's "ORDNINANCE NO. OC SAN58 - Table B".

The historical customer data was also utilized to establish growth trends for each property use classification. The growth trends were then used to project the average number of ERUs associated with each property use classification for the Test Year plus the remaining years of the Projection Period.

2.5 Financial Projections Under Existing Rates
The projected customers and accompanying ERUs are applied to the existing rates to develop a projection of user rate revenues that would be generated under existing rates.

The revenues are then compared to the projected revenue requirements/expenditures to determine if revenue adjustments are needed. Based on this comparison, it is projected that under the existing rates, the sewer system would not meet its collective projected operating and maintenance (O&M) financial obligations, cover costs of capital projects, and be able to make anticipated transfers. Therefore, revenue increases are required to generate additional cash to fund projected costs of operations and capital projects and maintain adequate cash reserves. The City has established an objective of maintaining a target of at least 180 days of operating cash reserves to help fund ongoing operations in the event of periodic fluctuations in cash flow, and to address unexpected needs that may require cash funding. The City also maintains a separate capital reserve to fund infrastructure needs and capital improvements identified in the 2024 Sewer Master Plan. Since the City currently collects sewer user revenues through the annual property tax roll, as opposed to receiving cash through monthly or bi-monthly billings, it is essential that there are adequate operating and capital cash reserves to cover expenditures between cycles of revenue collection from annual assessor roll payments. The cash-flow statement outlining the projected operating results under existing rates is summarized in Table 6 for the sewer system. The proposed rates and projected financial results are addressed in the subsequent sections of this Report.

ATTACHMENT A

Page 12 of 46 ends

10 | P a g e
Table 6 – Sewer System Projected Operating Results - Existing Rates ($1,000s)

ATTACHMENT A

Page 13 of 46 ends

11 | P a g e
Section 3 – Cost-of-Service (COS) Analysis

3.1 General
The costs incurred by a sewer utility system are generally driven by specific service requirements imposed on the system by its customers. There are several different options that can be used to perform a cost-of-service (COS) analysis, and the allocation methodology depends upon the basis applied. The sewer cost-of-service analysis detailed in Section 3.2 involves an examination of the number and type of property use classifications served in accordance with Orange County Sanitation District's "ORDNINANCE NO. OC SAN-58 - Table B". The estimated waste discharges as a percentage of a single-family residence, in accordance with Orange County Sanitation District's "ORDNINANCE NO. OC SAN-58 - Table B", is provided in Appendix C.

3.2 Sewer Cost-of-Service
The COS analysis for the sewer utility utilizes the revenue requirements for the Test Year as the cost basis. The Test Year revenue requirements are functionally unbundled, classified and allocated to customer classes to determine the cost-of-service by class. More detail relating to the sewer COS approach can be found in Appendix B.

3.2.1 Functional Unbundling of Revenue Requirements
Since the City provides collection and conveyance services only, the sewer system costs are unbundled into Collection and Customer functions. A brief description of each component is as follows:
• Collection – costs associated with lines and facilities that transport wastewater from customer properties to treatment facilities.
• Customer – costs associated with metering, billing, and providing other services to customers (e.g., printing, delivering and collecting utility bills, recordkeeping, etc.).

The allocation of the functionally unbundled revenue requirements for the Test Year are summarized in Table 7.

ATTACHMENT A

Page 14 of 46 ends

12 | P a g e
Table 7 - Functional Unbundled Cost Allocations

3.2.2 Classification of Revenue Requirements
The functionally unbundled revenue requirements for the sewer system are classified into fixed and volumetric customer components based on methodology consistent with the Water Environmental Federation (WEF), Manual of Practice No. 27. It is anticipated that the allocation percentages will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time (i.e., the most recent fiscal year). To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocations can be impacted. The system-wide costs by service characteristic are shown in Table 8.

ATTACHMENT A

Page 15 of 46 ends

13 | P a g e
Table 8 - Classification of Unbundled Revenue Requirements

3.2.3 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified revenue requirements are allocated to customer classes utilizing a unit cost approach as follows:
• Collection – Based on relative percentage of annual sewer usage. • Customer – Based on relative percentage of units by customer class.

The units of service for each component of cost by property use classification (if applicable) are provided in Table 9. The units of service consist of the number of customer parcels and accompanying ERUs. Customer parcels are based on the number of Assessor’s Parcel Numbers (“APNs”) as provided in the customer data. ERUs are based on the estimated waste discharges as a percentage of a single-family residence. “Single-Family Residential”, “MultiFamily Residential”, “Condo”, and “Mobile Home Park” ERUs are based on dwelling units, and all other non-residential customers are based on the estimated waste discharge as a percentage of a single-family residence per 1,000 square feet.

ATTACHMENT A

Page 16 of 46 ends

14 | P a g e
Table 9 – Units of Service

ATTACHMENT A

Page 17 of 46 ends

15 | P a g e
The revenue requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The annual “Customer” cost per ERU applies to all customers of the sewer utility system. The “Customer” cost per ERU is demonstrated in Table 10.

Table 10 – Cost Per Unit
The allocation of the revenue requirement to each property use classification is based on the “Customer” unit cost multiplied by the total ERUs for each property use classification. The total costs to be recovered from each property use classification are shown in Table 11.

ATTACHMENT A

Page 18 of 46 ends

16 | P a g e
Table 11 – Cost of Service by Property Use Classification

ATTACHMENT A

Page 19 of 46 ends

17 | P a g e

3.2.4 Cost-of-Service and Revenue Check
Once the ‘Customer” cost per ERU is developed and the costs associated with each property use classification based on the number of ERUs are determined in Section 3.2.3, rates can be developed to ensure that each property use classification is generating sufficient revenues to cover their allocated cost of service. The proposed rate structure consists of an annual rate per ERU that applies to each APN based on the number of ERUs determined in accordance with Orange County Sanitation District's "ORDNINANCE NO. OC SAN-58 - Table B".

The revenues generated by each property use classification vs the cost allocated to each property use classification are provided in Table 12.

ATTACHMENT A

Page 20 of 46 ends

18 | P a g e
Table 12 – Proposed Rate Revenues vs COS

ATTACHMENT A

Page 21 of 46 ends

19 | P a g e
Section 4 – Proposed Test Year Rates

4.1 General
The methodology used to calculate the recommended sewer rates proposed herein involves applying the projected customers and ERUs to the user rates developed in the preceding cost-of-service and rate analysis to calculate the estimated revenues that would be generated. Then, these projected revenues are compared to the estimated Test Year revenue requirements, and the sewer rates are adjusted on a percentage basis as necessary until the revenues generated are sufficient to meet the revenue needs of the sewer utility system.

When reviewing potential rate structure options in conjunction with the need for additional revenues, it was determined that revenue adjustments are needed, and the existing rate structure is adequate based on the cost-of-service analysis. The proposed sewer rates for the upcoming fiscal year are composed of an annual per ERU charge that applies to each APN based on the number of assigned ERUs. The proposed annual sewer rates for the Test Year are provided again in Table 13.

Table 13 – Proposed Annual Sewer Rates per ERU

ATTACHMENT A

Page 22 of 46 ends

20 | P a g e

4.2 Rate Comparison with Other Utilities
In order to provide the City and its residents and sewer customers with additional insight regarding the proposed rate levels, the analysis includes a comparison of both the existing and proposed user rates relative to the user rates imposed by other sewer utility systems located in the same region. A summary analysis is provided comparing the cost of the annual sewer collection services for a typical residential customer calculated under the existing and proposed rates of the City with those of the other utilities. Since the City currently bills annually through the Orange County Secured Property Tax Roll, for purposes of a meaningful comparison, any sewer utility that does not bill their customers annually was converted into an annual bill. The rates utilized for the other neighboring utilities bills shown in Figure 1 were in effect as of October of 2024 and are exclusive of local taxes, outside surcharges, franchise fees, regulatory fees, or other rate adjustments. It is important to note that the charges compared in Figure 1 are only for collection of sewage. Like the City of Stanton, treatment and disposal of wastewater for these agencies is provided by the Orange County Sanitation District, and charges for that component of their service are not included in the comparisons shown. An annual summary comparison with other utilities for a residential customer using 6,000 gallons (approximately 800 cubic feet) per monthly billing, or 72,000 gallons (approximately 9,600 cubic feet) annually is illustrated in Figure 1.

ATTACHMENT A

Page 23 of 46 ends

21 | P a g e
It should be noted that when making comparisons of sewer service, several factors affect the level of rates and charges. Such factors may include:
1) Terms of wholesale service agreements;
2) Time since last rate update for comparison providers; 3) Level of treatment and effluent disposal methods of sewer service; 4) Anticipated capital improvement programs and capital financing methods; 5) Plant capacity utilization, age of facilities, and assistance in construction by federal or state grants, connection fees, developer contributions, etc.; 6) General Fund and/or administrative fee transfers made by other systems which may account for differences in the level of rates charged; and 7) Bond covenants and funding requirements of the rates.

For the utilities included in the rate comparisons, no analysis has been performed with consideration of the above-mentioned factors as they relate to the reported sewer rates currently being charged.

ATTACHMENT A

Page 24 of 46 ends

22 | P a g e
Section 5 – Projected Operating Results

5.1 General
As a conclusion to the study, a pro forma operating statement is developed for the sewer system. The statement summarizes the projected financial results based on the system’s revenues, expenses and other revenue requirements anticipated in future years.

The individual operating statements cover the 5-fiscal year Projection Period through June 30, 2030, and are prepared on a cash-flow basis. In addition, the pro forma statement includes the applicable annual percentage rate adjustments necessary to meet the projected revenue requirements. The following discussions describe the development of the major components of the projected operating results.

5.2 Projected User Rate Revenues
The user rate and charge revenues are estimated by applying the existing and proposed rates to the projected customers and ERUs. The resulting revenues are then compared to the projected revenue requirements (i.e., O&M expenses, capital outlay, transfers, etc.) in each fiscal year to determine if the revenues are sufficient to satisfy the expenditure needs of the system. To the extent that there are revenue shortfalls in any given year of the Project Period, the sewer rates developed from the Cost-of-Service and Rate analysis outlined in Section 3 of this report are adjusted on a percentage basis as necessary to generate the required level of revenues. The projected sewer user rate revenues are provided in Table 14.

Table 14 – Projected User Rate Revenues
The projected revenues include the annual sewer rate adjustments anticipated for the remaining years of the Projection Period beyond the Test Year. The proposed user rates from which the projected operating results are developed for the entire 5-fiscal year Projection Period are provided in Table 15. The rates identified in the table below reflect the cost of providing service to individual customers based on their allocated ERUs associated with their property use classification.

ATTACHMENT A

Page 25 of 46 ends

23 | P a g e
Table 15 – Proposed Annual Sewer Rates
The projected user rates provided herein for the periods beyond the Test Year are intended for strategic planning purposes, and to provide the City with the estimated future rates that may be needed to satisfy the projected cash flow requirements. The rates are developed in accordance with the assumed customer, ERU, expenditure, and revenue estimates projected in this rate study. It is important to note that, since it is necessary to utilize numerous assumptions to develop the projected operating results, to the extent that actual customers, ERUs and/or system expenditures differ from those assumed herein, additional rate adjustments may be required. For informative purposes, the annual charge for a representative City residential customer based on the projected rates for each fiscal year of the Projection Period is included herein. An illustration of the projected annual charge for a residential customer receiving one ERU is provided in Figure 2.

ATTACHMENT A

Page 26 of 46 ends

24 | P a g e

5.3 Summary of Projected Operating Results
The cash-flow statement outlining the projected operating results is summarized in Table 16 for the sewer system. The results demonstrate that the proposed rates and charges along with the other system revenues are anticipated to be sufficient to satisfy the projected revenue requirements and capital needs of the utility system.

ATTACHMENT A

Page 27 of 46 ends

25 | P a g e
Table 16 – Sewer System Projected Operating Results - Proposed Rates ($1,000s)

ATTACHMENT A

Page 28 of 46 ends

26 | P a g e
Section 6 – Conclusions and Recommendations

6.1 Disclaimers

6.1.1 General Disclaimer
In the development of the proposed user rates and charges, certain historical reviews and analyses have been performed, together with the application of assumptions based on prudent financial, operational, and ratemaking relationships. The cost criteria and customer usage characteristics associated with general ratemaking procedures are representative of averages and are not intended as indicators of any individual customer.

In the preparation of the rate study, certain assumptions have been made with respect to conditions that may occur in the future. While it is believed that these assumptions are reasonable for the purpose of this update, they are dependent upon future events and actual conditions may differ from those assumed. In addition, the study has used and relied upon certain information that was provided by other parties not associated with Willdan.

Such information includes, among other things, the City’s audited financial statements, annual operating budgets, periodic reports, and other information and data provided by the City, its independent auditors, and other sources. While the sources are believed to be reliable, there has been no independent verification of the information, and no assurances are offered with respect thereto. To the extent that future conditions differ from those assumed herein or provided by others, the actual results may vary from those projected.

6.1.2 Municipal Advisory Disclaimer
Unless the City of Stanton, California (the “City”) has a written engagement from Willdan Financial Services (“Willdan”) for municipal advisory services, Willdan is not advising or recommending any action be taken by the recipient of this information with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues). The City shall discuss any such information and material contained in Willdan’s work product with all internal and/or external advisors and experts, including its own municipal advisor, that it deems appropriate before acting on the information and material.

For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it

ATTACHMENT A

Page 29 of 46 ends

27 | P a g e
provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto.

6.2 Conclusions
As previously addressed, the purpose of this study is to provide a review of the City’s existing utility rates to determine if rate adjustments are necessary to meet the budgeted and/or projected financial needs in future years. This Report is the result of the collaborative efforts of representatives from both the City and Willdan. City staff were diligent and cooperative in their efforts to ensure the availability and quality of source data on financial and operating matters. Based on the reviews, analyses and assumptions discussed herein, it is concluded that:

1. The proposed user rates and charges are anticipated to generate sufficient revenues to meet the revenue requirements of the system based upon the projected expenditures, capital needs, customers, and ERUs estimated for the Test Year. The proposed rates are based on an assumed implementation date of July 1, 2025. To the extent that the implementation date is postponed, additional rate adjustments and/or appropriations from existing reserves may be necessary.

2. The estimated revenues and resulting rate adjustments for the remaining years of the Projection Period beyond the Test Year are developed based on the customer growth assumptions generated from the historical analyses and discussions with City staff. If the customer growth projections are not realized, additional rate adjustments may be necessary.

3. Customer growth for the sewer system is projected based on historical customer data as provided by the City as well as discussions with the City staff regarding development activity and anticipated construction. If it turns out that the customer growth assumptions are not realized, the resulting revenues could be different than projected.

4. Future capital improvement projects are assumed to occur as reported by the City in its CIP. To the extent that the timing of such projects may change from that estimated herein, the cost of such projects and resulting impact on future rates and charges may vary from those indicated.

ATTACHMENT A

Page 30 of 46 ends

28 | P a g e

5. The proposed rates and rate structure are consistent with industry standards for rate-setting practices, comply with Proposition 218 and conform to the City’s financial policies with respect to:
a. Equitably recovering costs;
b. Being based upon the proportionate cost of providing services; and c. Generating sufficient revenue to recover system revenue requirements, fund capital needs, and meet reserve requirements.

6.3 Recommendations
Based on the reviews, analyses and assumptions addressed herein, as well as the resulting conclusions provided above, it is respectfully recommended that the City:

1. Adopt the proposed sewer rates to be placed on the annual secured property tax roll.

2. Enact the proposed rates to become effective as of July 1, 2025 (or other such date as determined by the City). Based on the timing of the project and the required public hearing notice procedures, it is expected that the effective date will occur on the recommended date.

3. Readdress the cost-of-service analysis portion of this study every three to five years to ensure costs are recovered consistent with cost-of-service principles and customer characteristics.

We appreciate the opportunity to be of service to the City in this engagement. In addition, we would like to thank City staff for the valuable assistance provided during the completion of the rate study.

Respectfully Yours,

WILLDAN FINANCIAL SERVICES

ATTACHMENT A

Page 31 of 46 ends

APPENDIX

DETAIL FOR THE COMPREHENSIVE

SEWER UTILITY RATE STUDY

COMPREHENSIVE SEWER UTILITY RATE STUDY FOR THE

CITY OF STANTON, CALIFORNIA

ATTACHMENT A

Page 32 of 46 ends

APPENDIX A
Revenue Requirement for
User Rates

ATTACHMENT A

Page 33 of 46 ends

APPENDIX - A

CITY OF STANTON, CA

DEVELOPMENT OF RATE REVENUE REQUIREMENTS - SEWER
[A] [B] [C]=[A]*[B]
FY 2026 % to Sewer Sewer
1 Total Operating Revenues $ 2,470,934 $ 2,470,934
Less:

Other Operating Revenues
2 Current Year-Secured $ 60,000 100% $ 60,000
3 Current Year-Unsecured 1,500 100% 1,500
4 Property Tax-Supplemental 1,000 100% 1,000
5 Redev Prop Tax Residual 86,700 100% 86,700
6 Fats/Oils/Grease Use Fee 15,000 100% 15,000
7 Hook-Up Permit Fees/Ocsd#3 1,000,000 100% 1,000,000
8 Interest Earned 88,997 100% 88,997
9 AB 1389 Pass Through from CRA 50,000 100% 50,000
10 Hook-Up Permit Fees/City 8,700 100% 8,700
11 Total Other Operating Revenues 1,311,897 1,311,897
12 Total Rate Revenue Requirement $ 1,159,037 100% $ 1,159,037 Line No: Description Test Year for Rate Revenue Requirement A - 1

ATTACHMENT A

Page 34 of 46 ends

APPENDIX B
Sewer Cost-of-Service
Analysis

ATTACHMENT A

Page 35 of 46 ends

APPENDIX - B

CITY OF STANTON, CA

ALLOCATION OF TEST YEAR COSTS TO SEWER FUNCTION
Line No: Expense Group FY 2026
1 Collection $372,225
2 Treatment 0
3 Administration 1,209,594
4 Transfers 0
5 Existing Debt 0
6 New Debt 0
7 CIP 1,764,000
8 Capital Outlay 0
9 Total $ 3,345,819
Test Year Revenue Requirement
B - 1

ATTACHMENT A

Page 36 of 46 ends

APPENDIX - B

CITY OF STANTON, CA
SEWER CUSTOMER PARCEL & ERUS BY PROPERTY USE CLASSIFICATION - TEST YEAR FY 2026 Total Total
Parcels ERUs
1 Single-Family Residential 3,906 3,907.00
2 Multi-Family Residential 310 3,583.20
3 Condo 2,167 1,733.60
4 Mobile Home Park 18 828.00
5 107 - Light Industrial - Single Tenant 40 184.95
6 108 - Light Industrial - Multi Tenant 30 163.25
7 110 - Warehouse - Single Tenant 59 90.52
8 111 - Warehouse - Multi Tenant 10 23.29
9 113 - Mini-Warehouse 7 36.59
10 114 - Industrial Park 6 154.90
11 115 - Recreational Vehicle Storage 1 1.00
12 118 - Governmental Use Vacant/Develop. 9 65.69
13 18 - Developed with a Mix of Forms 2 6.03
14 20 - Amusement Parks 3 16.19
15 21 - Automobile Dealership 3 7.10
16 22 - Auto Repair Shop 28 59.24
17 224 - Nightclub 4 26.67
18 225 - United States Post Office 1 3.61
19 23 - Automotive Service 25 52.40
20 24 - Used Car Lot 6 6.04
21 30 - Coin Operated Car Wash 3 8.49
22 33 - Church Buildings 5 12.87
23 36 - Financial Buildings 2 3.27
24 37 - Fraternal Buildings 1 1.56
25 39 - Golf Course 1 7.09
26 4 - Miscellaneous Improvement 6 6.66
27 44 - Lumber/Const. Material Yard 1 3.56
28 47 - Supermarket 4 222.72
29 48 - Convenience Market 2 8.25
30 50 - Single Medical Bldgs. To 3 Stories 9 53.54
31 51 - Small Medical Center 2 11.14
32 56 - Low Demand Hotel/Motel 8 83.61
33 57 - Motorcycle/Small Vehicle Building 2 2.09
34 58 - Nurseries (Plants) 1 1.00
35 60 - Nursing Home 1 33.32
36 62 - Converted Res. Used as Nursing 1 4.55
37 63 - Low Rise Retirement Building 2 129.87
38 65 - Single Office Bldgs. to 3 Stories 54 116.03
39 69 - Converted Residence to Office 3 3.27
40 72 - Paved Parking Lot 3 3.00
41 73 - Recreation 1 5.15
42 76 - Restaurant - Low Demand 16 132.49
43 77 - Restaurant - Coffee Shop 10 165.43
44 78 - Restaurant - Dinner House 2 52.33
45 8 - Equivalent to Vacant 1 1.00
46 81 - Pre-Schools, Nursery or Care 3 8.58
47 82 - Private Schools 4 28.28
48 83 - Automotive Service Station 4 4.17
49 86 - Combin.-Service Station/Convenience 8 10.16
50 88 - Low Flow Center 15 76.36
51 89 - Average Flow Center 15 293.09
52 90 - High Flow Center 32 721.30
53 95 - Discount Store 2 28.57
54 96 - Unattached Single Store 21 53.56
55 97 - Strip Store 3 9.31
56 99 - Store with Office Upstairs 1 3.36
57 Sewer System Total 6,884 13,258.30
Line No: Property Use Classification (PUC)
B - 2

ATTACHMENT A

Page 37 of 46 ends

APPENDIX - B

CITY OF STANTON, CA
ALLOCATION OF SEWER COSTS - TEST YEAR FY 2026
Line No: Description Sewer Costs Customer Total (Check) Allocation Factors:
1 Treatment 100.00% 100.00%
2 Collection 100.00% 100.00%
3 Administration 100.00% 100.00%
4 Transfers 100.00% 100.00%
5 CIP 100.00% 100.00%
6 Capital Outlay 100.00% 100.00%
7 Existing Debt 100.00% 100.00%
8 New Debt 100.00% 100.00%
Allocation of Costs:
9 Treatment $ - $ - $ -
10 Collection 372,225 372,225 372,225
11 Administration 1,209,594 1,209,594 1,209,594
12 Transfers - - -
13 CIP 1,764,000 1,764,000 1,764,000
14 Capital Outlay - - -
15 Existing Debt - - -
16 New Debt - - -
17 Non-Rate Rev & Fund Balance (2,186,782) (2,186,782) (2,186,782) 18 Total $ 1,159,037 $ 1,159,037 $ 1,159,037
Total Units of Service 13,258.30
Units Annual ERUs
Cost Per Unit $ 87.42
Units Per ERU/Annually
B - 3

ATTACHMENT A

Page 38 of 46 ends

APPENDIX - B

CITY OF STANTON, CA
SEWER COST OF SERVICE BY COST COMPONENT AND PUC - TEST YEAR FY 2026 [A] [B]
Customer Total
1 Single-Family Residential $ 341,549 $ 341,549
2 Multi-Family Residential 313,242 313,242
3 Condo 151,551 151,551
4 Mobile Home Park 72,384 72,384
5 107 - Light Industrial - Single Tenant 16,168 16,168
6 108 - Light Industrial - Multi Tenant 14,271 14,271
7 110 - Warehouse - Single Tenant 7,913 7,913
8 111 - Warehouse - Multi Tenant 2,036 2,036
9 113 - Mini-Warehouse 3,199 3,199
10 114 - Industrial Park 13,541 13,541
11 115 - Recreational Vehicle Storage 87 87
12 118 - Governmental Use Vacant/Develop. 5,743 5,743
13 18 - Developed with a Mix of Forms 527 527
14 20 - Amusement Parks 1,415 1,415
15 21 - Automobile Dealership 621 621
16 22 - Auto Repair Shop 5,179 5,179
17 224 - Nightclub 2,331 2,331
18 225 - United States Post Office 316 316
19 23 - Automotive Service 4,581 4,581
20 24 - Used Car Lot 528 528
21 30 - Coin Operated Car Wash 742 742
22 33 - Church Buildings 1,125 1,125
23 36 - Financial Buildings 286 286
24 37 - Fraternal Buildings 136 136
25 39 - Golf Course 620 620
26 4 - Miscellaneous Improvement 582 582
27 44 - Lumber/Const. Material Yard 311 311
28 47 - Supermarket 19,470 19,470
29 48 - Convenience Market 721 721
30 50 - Single Medical Bldgs. To 3 Stories 4,680 4,680
31 51 - Small Medical Center 974 974
32 56 - Low Demand Hotel/Motel 7,309 7,309
33 57 - Motorcycle/Small Vehicle Building 183 183
34 58 - Nurseries (Plants) 87 87
35 60 - Nursing Home 2,913 2,913
36 62 - Converted Res. Used as Nursing 398 398
37 63 - Low Rise Retirement Building 11,353 11,353
38 65 - Single Office Bldgs. to 3 Stories 10,143 10,143 39 69 - Converted Residence to Office 286 286
40 72 - Paved Parking Lot 262 262
41 73 - Recreation 450 450
42 76 - Restaurant - Low Demand 11,582 11,582
43 77 - Restaurant - Coffee Shop 14,462 14,462
44 78 - Restaurant - Dinner House 4,575 4,575
45 8 - Equivalent to Vacant 87 87
46 81 - Pre-Schools, Nursery or Care 750 750
47 82 - Private Schools 2,472 2,472
48 83 - Automotive Service Station 365 365
49 86 - Combin.-Service Station/Convenience 888 888
50 88 - Low Flow Center 6,675 6,675
51 89 - Average Flow Center 25,622 25,622
52 90 - High Flow Center 63,056 63,056
53 95 - Discount Store 2,498 2,498
54 96 - Unattached Single Store 4,682 4,682
55 97 - Strip Store 814 814
56 99 - Store with Office Upstairs 294 294
57 Total $ 1,159,037 $ 1,159,037
Line No: Property Use Classification (PUC)
B - 4

ATTACHMENT A

Page 39 of 46 ends

APPENDIX - B

CITY OF STANTON, CA
SEWER RATE CALCULATION - TEST YEAR FY 2026
[A] [B] [C]=[A]÷[B]
Total Costs Annual ERUs Total Annual
Fee Per ERU
1 Single-Family Residential $ 341,549 3,907.00 $ 87.42
2 Multi-Family Residential $ 313,242 3,583.20 $ 87.42
3 Condo $ 151,551 1,733.60 $ 87.42
4 Mobile Home Park $ 72,384 828.00 $ 87.42
5 107 - Light Industrial - Single Tenant $ 16,168 184.95 $ 87.42 6 108 - Light Industrial - Multi Tenant $ 14,271 163.25 $ 87.42 7 110 - Warehouse - Single Tenant $ 7,913 90.52 $ 87.42 8 111 - Warehouse - Multi Tenant $ 2,036 23.29 $ 87.42
9 113 - Mini-Warehouse $ 3,199 36.59 $ 87.42
10 114 - Industrial Park $ 13,541 154.90 $ 87.42
11 115 - Recreational Vehicle Storage $ 87 1.00 $ 87.42 12 118 - Governmental Use Vacant/Develop. $ 5,743 65.69 $ 87.42 13 18 - Developed with a Mix of Forms $ 527 6.03 $ 87.42 14 20 - Amusement Parks $ 1,415 16.19 $ 87.42
15 21 - Automobile Dealership $ 621 7.10 $ 87.42
16 22 - Auto Repair Shop $ 5,179 59.24 $ 87.42
17 224 - Nightclub $ 2,331 26.67 $ 87.42
18 225 - United States Post Office $ 316 3.61 $ 87.42
19 23 - Automotive Service $ 4,581 52.40 $ 87.42
20 24 - Used Car Lot $ 528 6.04 $ 87.42
21 30 - Coin Operated Car Wash $ 742 8.49 $ 87.42
22 33 - Church Buildings $ 1,125 12.87 $ 87.42
23 36 - Financial Buildings $ 286 3.27 $ 87.42
24 37 - Fraternal Buildings $ 136 1.56 $ 87.42
25 39 - Golf Course $ 620 7.09 $ 87.42
26 4 - Miscellaneous Improvement $ 582 6.66 $ 87.42
27 44 - Lumber/Const. Material Yard $ 311 3.56 $ 87.42
28 47 - Supermarket $ 19,470 222.72 $ 87.42
29 48 - Convenience Market $ 721 8.25 $ 87.42
30 50 - Single Medical Bldgs. To 3 Stories $ 4,680 53.54 $ 87.42 31 51 - Small Medical Center $ 974 11.14 $ 87.42
32 56 - Low Demand Hotel/Motel $ 7,309 83.61 $ 87.42
33 57 - Motorcycle/Small Vehicle Building $ 183 2.09 $ 87.42 34 58 - Nurseries (Plants) $ 87 1.00 $ 87.42
35 60 - Nursing Home $ 2,913 33.32 $ 87.42
36 62 - Converted Res. Used as Nursing $ 398 4.55 $ 87.42 37 63 - Low Rise Retirement Building $ 11,353 129.87 $ 87.42 38 65 - Single Office Bldgs. to 3 Stories $ 10,143 116.03 $ 87.42 39 69 - Converted Residence to Office $ 286 3.27 $ 87.42 40 72 - Paved Parking Lot $ 262 3.00 $ 87.42
41 73 - Recreation $ 450 5.15 $ 87.42
42 76 - Restaurant - Low Demand $ 11,582 132.49 $ 87.42 43 77 - Restaurant - Coffee Shop $ 14,462 165.43 $ 87.42 44 78 - Restaurant - Dinner House $ 4,575 52.33 $ 87.42 45 8 - Equivalent to Vacant $ 87 1.00 $ 87.42
46 81 - Pre-Schools, Nursery or Care $ 750 8.58 $ 87.42 47 82 - Private Schools $ 2,472 28.28 $ 87.42
48 83 - Automotive Service Station $ 365 4.17 $ 87.42
49 86 - Combin.-Service Station/Convenience $ 888 10.16 $ 87.42 50 88 - Low Flow Center $ 6,675 76.36 $ 87.42
51 89 - Average Flow Center $ 25,622 293.09 $ 87.42
52 90 - High Flow Center $ 63,056 721.30 $ 87.42
53 95 - Discount Store $ 2,498 28.57 $ 87.42
54 96 - Unattached Single Store $ 4,682 53.56 $ 87.42
55 97 - Strip Store $ 814 9.31 $ 87.42
56 99 - Store with Office Upstairs $ 294 3.36 $ 87.42
Line No: Property Use Classification (PUC)
B - 5

ATTACHMENT A

Page 40 of 46 ends

APPENDIX - B

CITY OF STANTON, CA
SEWER REVENUE VS COST OF SERVICE BY PUC CHECK - TEST YEAR FY 2026 [A] [B] [C]=[A]*[B] [D] [E]=[D]-[C]
Annual ERUs
Total Annual
Fee Per ERU
Total
Calculated
Revenues Total COS
Difference
Calc vs COS
1 Single-Family Residential 3,907.00 $ 87.42 $ 341,549 $ 341,549 $ - 2 Multi-Family Residential 3,583.20 $ 87.42 $ 313,242 $ 313,242 $ - 3 Condo 1,733.60 $ 87.42 $ 151,551 $ 151,551 $ -
4 Mobile Home Park 828.00 $ 87.42 $ 72,384 $ 72,384 $ - 5 107 - Light Industrial - Single Tenant 184.95 $ 87.42 $ 16,168 $ 16,168 $ - 6 108 - Light Industrial - Multi Tenant 163.25 $ 87.42 $ 14,271 $ 14,271 $ - 7 110 - Warehouse - Single Tenant 90.52 $ 87.42 $ 7,913 $ 7,913 $ - 8 111 - Warehouse - Multi Tenant 23.29 $ 87.42 $ 2,036 $ 2,036 $ - 9 113 - Mini-Warehouse 36.59 $ 87.42 $ 3,199 $ 3,199 $ - 10 114 - Industrial Park 154.90 $ 87.42 $ 13,541 $ 13,541 $ - 11 115 - Recreational Vehicle Storage 1.00 $ 87.42 $ 87 $ 87 $ - 12 118 - Governmental Use Vacant/Develop. 65.69 $ 87.42 $ 5,743 $ 5,743 $ - 13 18 - Developed with a Mix of Forms 6.03 $ 87.42 $ 527 $ 527 $ - 14 20 - Amusement Parks 16.19 $ 87.42 $ 1,415 $ 1,415 $ - 15 21 - Automobile Dealership 7.10 $ 87.42 $ 621 $ 621 $ - 16 22 - Auto Repair Shop 59.24 $ 87.42 $ 5,179 $ 5,179 $ - 17 224 - Nightclub 26.67 $ 87.42 $ 2,331 $ 2,331 $ -
18 225 - United States Post Office 3.61 $ 87.42 $ 316 $ 316 $ - 19 23 - Automotive Service 52.40 $ 87.42 $ 4,581 $ 4,581 $ - 20 24 - Used Car Lot 6.04 $ 87.42 $ 528 $ 528 $ -
21 30 - Coin Operated Car Wash 8.49 $ 87.42 $ 742 $ 742 $ - 22 33 - Church Buildings 12.87 $ 87.42 $ 1,125 $ 1,125 $ - 23 36 - Financial Buildings 3.27 $ 87.42 $ 286 $ 286 $ - 24 37 - Fraternal Buildings 1.56 $ 87.42 $ 136 $ 136 $ - 25 39 - Golf Course 7.09 $ 87.42 $ 620 $ 620 $ -
26 4 - Miscellaneous Improvement 6.66 $ 87.42 $ 582 $ 582 $ - 27 44 - Lumber/Const. Material Yard 3.56 $ 87.42 $ 311 $ 311 $ - 28 47 - Supermarket 222.72 $ 87.42 $ 19,470 $ 19,470 $ - 29 48 - Convenience Market 8.25 $ 87.42 $ 721 $ 721 $ - 30 50 - Single Medical Bldgs. To 3 Stories 53.54 $ 87.42 $ 4,680 $ 4,680 $ - 31 51 - Small Medical Center 11.14 $ 87.42 $ 974 $ 974 $ - 32 56 - Low Demand Hotel/Motel 83.61 $ 87.42 $ 7,309 $ 7,309 $ - 33 57 - Motorcycle/Small Vehicle Building 2.09 $ 87.42 $ 183 $ 183 $ - 34 58 - Nurseries (Plants) 1.00 $ 87.42 $ 87 $ 87 $ -
35 60 - Nursing Home 33.32 $ 87.42 $ 2,913 $ 2,913 $ -
36 62 - Converted Res. Used as Nursing 4.55 $ 87.42 $ 398 $ 398 $ - 37 63 - Low Rise Retirement Building 129.87 $ 87.42 $ 11,353 $ 11,353 $ - 38 65 - Single Office Bldgs. to 3 Stories 116.03 $ 87.42 $ 10,143 $ 10,143 $ - 39 69 - Converted Residence to Office 3.27 $ 87.42 $ 286 $ 286 $ - 40 72 - Paved Parking Lot 3.00 $ 87.42 $ 262 $ 262 $ -
41 73 - Recreation 5.15 $ 87.42 $ 450 $ 450 $ -
42 76 - Restaurant - Low Demand 132.49 $ 87.42 $ 11,582 $ 11,582 $ - 43 77 - Restaurant - Coffee Shop 165.43 $ 87.42 $ 14,462 $ 14,462 $ - 44 78 - Restaurant - Dinner House 52.33 $ 87.42 $ 4,575 $ 4,575 $ - 45 8 - Equivalent to Vacant 1.00 $ 87.42 $ 87 $ 87 $ -
46 81 - Pre-Schools, Nursery or Care 8.58 $ 87.42 $ 750 $ 750 $ - 47 82 - Private Schools 28.28 $ 87.42 $ 2,472 $ 2,472 $ - 48 83 - Automotive Service Station 4.17 $ 87.42 $ 365 $ 365 $ - 49 86 - Combin.-Service Station/Convenience 10.16 $ 87.42 $ 888 $ 888 $ - 50 88 - Low Flow Center 76.36 $ 87.42 $ 6,675 $ 6,675 $ - 51 89 - Average Flow Center 293.09 $ 87.42 $ 25,622 $ 25,622 $ - 52 90 - High Flow Center 721.30 $ 87.42 $ 63,056 $ 63,056 $ - 53 95 - Discount Store 28.57 $ 87.42 $ 2,498 $ 2,498 $ - 54 96 - Unattached Single Store 53.56 $ 87.42 $ 4,682 $ 4,682 $ - 55 97 - Strip Store 9.31 $ 87.42 $ 814 $ 814 $ -
56 99 - Store with Office Upstairs 3.36 $ 87.42 $ 294 $ 294 $ - 57 Total 13,258.30 $ 1,159,037 $ 1,159,037 $ -
Line
No: Property Use Classification (PUC)
B - 6

ATTACHMENT A

Page 41 of 46 ends

Stanton City CouncilMarch 25, 2025

Stanton City Council
March 25, 2025