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HomeMy WebLinkAbout2018 03 07NOTICE CALL OF A SPECIAL I G OF THE CITY C ICI TO THE MEMBERS OF THE AFOREMENTIONED AGENCIES AND THE CITY CLERK OF THE CITY OF BALDWIN PARK NOTICE IS HEREBY GIVEN that a Special Meeting is hereby called to be held on WEDNESDAY, MARCH 7, 2018 at 5:30 PM. at City Hall — 3rd Floor Conference Room 307, 14403 East Pacific Avenue, Baldwin Park, CA 91706. Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda. NO OTHER BUSINESS WILL BE DISCUSSED Dated: March 1, 2018 A / :. Manuel Lozano Mayor AFFIDAVIT OF POSTING I, Alejandra Avila, City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California, the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting on March 7, 2018. Alejandra Avila City Clerk CITY COUNCIL SPECIAL Please note meeting time and MARCH7, 2018 location 5:30 PM CITY HALL - 3rd Floor, Conference Room 307 14403 EAST PACIFIC AVENUE BALDWIN PARK, CA 91706 (626) 960-4011 Manuel Lozano - Mayor Ricardo Pacheco - Mayor Pro Tem Cruz Baca - Council member Monica Garcia - Council member Susan Rubio - Council member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DE APAGAR SUS TELEFONOS CELULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS The public is encouraged to address the City Council or any of its Agencies listed on this agenda, but only on any matter posted on this agenda. If you wish to address the City Council or any of its Agencies, you may do so during the PUBLIC COMMUNICATIONS period noted on the agenda. Each person is allowed three (3) minutes speaking time. A Spanish-speaking interpreter is available for your convenience. COMENTARIOS DEL PUBLICO Se invita al publico a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda, para hablar solamente sobre asunto publicado en esta agenda. Si usted desea la oportunidad de dirigirse al Concilio o alguna de sus Agencias, podr6 hacerlo durante el perlodo de Comentarios del Pdblico (Public Communications) anunciado en la agenda. A cada persona se le permite hablar por tres (3) minutos. Hay un int6rprete para su conveniencia. CITY COUNCIL SPECIAL MEETING — 5:30 P.M. CALL TO ORDER ROLL CALL: Council Members: Cruz Baca, Monica Garcia, Susan Rubio, Mayor Pro Tem Ricardo Pacheco and Mayor Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. (Government Code §54954.21 ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar accion en alg(jn asunto a menos que sea incluido en la agenda, o a menos que exista alguna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciones o preguntas hechas por personas, o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideracion en juntas proximal. (Codigo de Gobierno §54954.21 OPEN SESSION/STUDY SESSION 1. CALIFORNIA CONSULTING Presentation by California consulting Regarding Grants RECESS TO CLOSED SESSION 2. CONFERENCE WITH LABOR NEGOTIATORS (GC §54957.6) Pursuant to Government Code Section 54957.6: Agency designated representatives: Shannon Yauchzee, Chief Executive Officer, and Sean Gibbons, Coleman Frost LLP Employee Organizations: Police Officer Association; Police Management Employees Association. 3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Potential Case(s): Two (2) 4. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Pursuant to paragraph (1) of subdivision (d) of Government Code Section 54956.9: Case Name: City of Baldwin Park v City of Irwindale Case No. BS163400 5. REAL PROPERTY NEGOTIATIONS Pursuant to Government Code §54956.8: A. Property: 1453 Virginia Avenue (CAN 17-03) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Todd Seidner, Virginia Avenue Holdings, LLC Under Negotiation: Price and terms of payment B. Property: 15480 Arrow Highway (CAN 17-04) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Lynn Metrow and Todd Hill, Bud King's Weed Club Under Negotiation: Price and terms of payment C. Property: 4507 Littlejohn Street (CAN 17-05) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Tina Honglin Guan, Lucky Medical Cannabis Development, Inc. Under Negotiation: Price and terms of payment D. Property: 1453 Virginia Avenue, Suite "O" (CAN 17-11) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Chris Coogan, Therapy Crafted Brands, LLC Under Negotiation: Price and terms of payment E. Property: 5010 Calmview Avenue (CAN 17-14) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Erika Villarruel and Art Castillo, Baldwin Park Caregivers Under Negotiation: Price and terms of payment F. Property: 5129 Bleecker Street (CAN 17-16) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Michael Daniel Healy and Chad Everett LaChance, High Point Distribution, Inc. Under Negotiation: Price and terms of payment G. Property: 14808 Arrow Highway (CAN 17-19) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Behnam Rodd, Jasper Rodd, and Luis Franco, Emerald Connection, LLC Under Negotiation: Price and terms of payment H. Property: 13409 Garvey Ave. (CAN 17-20) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Valentina Ambarchyan, Edvin Sanatgar, and Robert Harutyunyan, Checkpoint Distribution, Inc. Under Negotiation: Price and terms of payment I. Property: 428 Cloverleaf Drive (CAN 17-21) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Yazeji, SCS Processing, Inc. Under Negotiation: Price and terms of payment J. Property: 15115 Ramona Blvd. AND 15004 Ramona Blvd. (CAN 17-22) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rogelio Magana, Rancho Adelanto Development Enterprises Under Negotiation: Price and terms of payment K. Property: 14712 Arrow Highway (CAN 17-23) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Chan, Manuel Suarez, and Gershom Luh, The Grown Folks, Inc. Under Negotiation: Price and terms of payment L. Property: 13450 Brooks Drive, Units A and C (CAN 17-24) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Samuel and AvShalom Cohen, NRD, LLC Under Negotiation: Price and terms of payment M. Property: 13460 Brooks Drive (CAN 17-25) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Ruben Kachian, Vertical Bliss, Inc. (Kushy Punch) Under Negotiation: Price and terms of payment N. Property: 4802 Littlejohn Street (CAN 17-26) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rodolfo Aguilar, SGV Caregivers, Inc. Under Negotiation: Price and terms of payment O. Property: 4276 Elton Street (CAN 17-29) (APNs: 8437-016-005, 8437-016-015, and 8437-016-016) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Yichang Bai, W&F International Corporation Under Negotiation: Price and terms of payment P. Property: 14726 Arrow Highway (CAN 17-30) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Willoughby, Tier One Consulting Under Negotiation: Price and terms of payment Q. Property: 5151 Azusa Canyon Rd. (CAN 17-32) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: David Morgan, Jorge Garcia, Paul Granada, Fausto Alex Chavez, Electric Atom Distribution Under Negotiation: Price and terms of payment REPORT FROM CLOSED SESSION ADJOURNMENT CERTIFICATION I, Alejandra Avila, City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California, the foregoing agenda was posted on the City Flail bulletin bor+not less than 24 hours prior to the meeting on March 7, 2018. p � � iliA01101 I /... AI andra. Avila City Clerk PLEASE NOTE, Copies of staff reports and supporting docurnentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2114 Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or e-mail pavrla @,baldL4mpar'k.00nr. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE ll) AGENDA BALDWIN PARK CITY COUNCIiL REGULAR MEETING MARCH 7, 2018 7:00 PM COUNCIL CHAMBER 14403 E. Pacific Avenue Baldwin Park, CA 91706 (626) 960-4011 Manuel Lozano Ricardo Pacheco Cruz Baca Monica Garcia Susan Rubio Mayor - Mayor Pro Tem - Council Member Council Member Council Member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DE APAGAR SUS TELEFONOS CELULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS The public is encouraged to address the City Council or any of its Agencies listed on this agenda on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council or any of its Agencies, you may do so during the PUBLIC COMMUNICATIONS period noted on the agenda. Each person is allowed three (3) minutes speaking time. A Spanish speaking interpreter is available for your convenience. COMENTARIOS DEL PUBLICO Se invita al publico a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda, para hablar sobre cualquier asunto publicado en la agenda o cualquier tema que est6 bajo su jurisdicci6n. Si usted desea la oportunidad de dirigirse al Concilio o alguna de sus Agencias, podra hacerlo durante el periodo de Comentarios del Publico (Public Communications) anunciado en la agenda. A cada persona se le permite hablar por tres (3) minutos. Hay un int6rprete para su conveniencia. Any written public record relating to an agenda item for an open session of a regular meeting of the City Council that is distributed to the City Council less than 72 hours prior to that meeting will be available for public inspection at City Hall in the City Clerk's office at 14403 E. Pacific Avenue, 3rd Floor during normal business hours (Monday - Thursday, 7:30 a.m. - 6:00 p.m.) .......... ....111.......... _..... ............... CITY COUNCIL REGULAR MEETING — 7:00 PM CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL Council Members: Cruz Baca, Monica Garcia, Susan Rubio, Mayor Pro Tem Ricardo Pacheco and Mayor Manuel Lozano REPORT FROM CLOSED SESSION ANNOUNCEMENTS PROCLAMATIONS COMMENDATIONS & PRESENTATIONS . CIP Update Presentation by Sam Gutierrez, Interim Director of Public Works, Job Fair Presentation by Victor Miramontes, Management Analyst. PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2] ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tome accion en algun asunto a menos que sea incluido en la agenda, o a menos que exists alguna emergencia o circunstancia especial. EI cuerpo legislativo y su personal podran: 1) Responder brevemente a declaracidnes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideracion en juntas proximas. [Codigo de Gobiemo §54954.2] City Council Agenda Page 2 CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. 1. WARRANTS AND DEMANDS Staff recommends that Council ratify the attached Warrants and Demands Register. 2. MEETING MINUTES Staff recommends that Council receive and file the following Meeting Minutes: A. Meeting Minutes of the Regular City Council Meeting held on January 17, 2018. B. Meeting Minutes of the Special City Council Meeting held on February 7, 2018. C. Meeting Minutes of the Special and Regular City Council Meetings held on February 21, 2018 3. AUTHORIZATION TO ADVERTISE THE REQUEST FOR PROPOSALS (RFP) FOR PROFESSIONAL PYROTECHNIC SERVICES RELATED TO THE 4T" OF JUY FIREWORKS CELEBRATION. Staff recommends the City Council to: 1. Authorize the advertisement of the Request for Proposal (RFP) for professional pyrotechnic services related to the 4t" of July Fireworks celebration. 4. AMENDMENT OF OFFICIAL POLICE TOW TRUCK SERVICES ORDINANCE. Staff recommends that the City Council waive further reading and adopt Ordinance No. 1407 by title only, entitled, `'AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 100 OF TITLE X FOR OFFICIAL POLICE TOW TRUCK SERVICES." (SECOND READING AND ADOPTION) 5, APPROVE PROPOSAL FOR COLLECTION SERVICES Staff recommends the City Council to: 1. Review and approve the Professional Services Agreement with CB Merchant Services for Collection Services; and 2. Authorize the Mayor to sign Professional Services Agreement with CB Merchant Services; and 3. Authorize the Director of Finance to include the collection fees in the City of Baldwin Park Schedule of Fees which be presented at the public hearing in the near future. City Council Agenda Page 3 6.. ACCOUNTING POLICIES AND PROCEDURES. Staff recommends that the City Council review and approve the following accounting policies and procedures: 1. Purchasing Policies and Procedures 2. Credit Card Policies and Procedures 3. Travel Policies and Procedures 4. Federal Award Administration Policies and Procedures 5. ACH and Wire Transfer Policy and Procedures 7. RENEWAL OF GRANT WRITING SERVICES CONTRACT WITH CALIFORNIA CONSULTING, LLC. Staff recommends the City Council to: 1. Approve the Consultant Services Agreement with California Consulting, LLC; and 2. Authorize the Director of Finance to appropriate funds to cover the cost related to the grants applied for including but not limited to General Fund, Prop A Fund, or Future Development Fund; or 3. Provide staff direction. 8. REQUEST FROM RUKLI, INC. (CAN 17-06) TO ADD SECOND LOCATION FOR CANNABIS DISTRIBUTION OPERATION (4150 PUENTE AVENUE). Staff recommends the City Council to approve the Change of Location application for RUKLI, Inc. (CAN 17-06) to add an authorized location to operate an additional cannabis distribution operation at 4150 Puente Avenue pursuant to Ordinance No. 1400, Section 127.09. PUBLIC HEARINGS 9. CONTINUED FROM FEBRUARY 21, 2018. A REQUEST FOR CONSIDERATION OF A PROPOSED AMENDMENT TO THE CITY'S MUNICIPAL CODE (SIGN REGULATIONS) ADDING DEVELOPMENT STANDARDS FOR ELECTRONIC READER BOARD SIGNS (LOCATION: COMMERCIAL, INDUSTRIAL, AND MIXED USE ZONED PROPERTIES; APPLICANT CITY OF BALDWIN PARK; CASE NUMBER AZC-188) Staff and the Planning Commission recommend that the City Council open the public hearing, accept testimony and following the public hearing: 1. Introduce for first reading, by title only and waive further reading, Ordinance No. 1405, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ADDING SECTION 153.170.090.C, AMENDING TABLE 153.170.080 AND AMENDING THE TITLE OF SUBSECTION 153.170.090 RELATING TO ELECTRONIC READERBOARD SIGNS." City Council Agenda Page 4 10. PUBLIC HEARING REGARDING FISCAL YEAR 2018-2019 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP FUND (HOME) ANNUAL ACTION PLAN. Staff recommends that the City Council conduct the public hearing, accept testimony, and following the public hearing approve the allocations for the FY 2018- 2019 CDBG public service public service programs by selecting one of the following options: OPTION 1. Approve the Joint Commission's recommendations for funding; or OPTION 2: Revise allocations as the City Council deems appropriate REPORTS OF OFFICERS 11. CONSIDERATION OF TECHNICAL STUDY PREPARATION TO CREATE THE BALDWIN PARK COMMUNITY CHOICE AGGREGATION. Staff recommends that Council: 1. Approve and adopt Resolution No. 2017-202, entitled, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, TO CONDUCT A TECHNICAL STUDY TO EVALUATE A COMMUNITY CHOICE AGGREGATION WITH CALIFORNIA CHOICE ENERGY AUTHORITY (CCEA);" AND 2. Authorize the Chief Executive Officer to engage California Choice Energy Authority to conduct a Community Choice Aggregation Technical Study for a cost not to exceed $63,000; and 3. Authorize the Chief Executive Officer, or his designee, to request the release of load data from Southern California Edison (SCE); and 4. Authorize the Finance Director to appropriate $63,000 from the Future Development Fund (Fund 200) and perform the required budget adjustment for this project. CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATIONS Request by Council Member Cruz Baca for discussion and consideration: • Direction to Staff to review the "Parking Ordinance", which would also include any new future developments in "Transit Oriented District" (TOD). City Council Agenda ADJOURNMENT CERTIFICATION I, Alejandra Avila, City Clerk of the City of Baldwin Park hereby certify that, under penalty of perjury under the laws of the State of California, the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 1St day of March, 2G18. ir 14 lejdndra Avila City Clerk PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2nd Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or via e-mail atavliaic9wNngaark.c orx. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II) City Council Agenda Page 6 ITEM NO. �� //�r„ec���,�r, l r�ial✓r,6c6��/� l/,o,iJ1�.I�,l '. TO: Honorable Mayor and City Councilmembers Finance/' � * ' f rw� r FROM: Rose Tam, Director of r .. �r . a E DATE: March 7 2018 SP�,'�1, C"rF� R 9th L � ,� � � d&��Y SUBJECT: WARRANTS AND DEMA1)S ABitl SUMMARY Attached is the Warrants and Demands Register for the City of Baldwin Park to be ratified by the City Council. FISCAL IMPACT The payroll for the last period was $449.115.18 and the attached General Warrants Register were $380,636.83 for a total amount of $829,752.01. LEGAL REVIEW None required. RECOMMENDATION Staff recommends that the City Council ratify the attached Warrants and Demands Register, BACKGROUND The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous City Council meeting and the following is a summary of the payment released: 1. The payroll of the City of Baldwin Park consist of check numbers 199272 to 199293. Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 5159 to 5409 for the period of January 28, 2018 through February 10, 2018, inclusive; these are presented and hereby ratified in the amount of $449,115.18. 2. General Warrants, including bank drafts and checks, with check numbers from 218300 to 218435 in the total amount of $380,636.83 constituting of claims and demands against the City of Baldwin Park, are herewith presented to the City Council as required by law, and the same hereby ratified. AL[igry .,Check Register R �,0 City of Baldwin Park, CA By (None) Payment Dates 02/13/2018 - 02/22/2018 rAn Payment Number Payment Date Vendor Name Description (Item) Account Number Amount 218300 02/13/2018 ALL CITY MANAGEMENT SERVI CROSSING GUARD SERVICES 100-30-390-51100-13200 5412 218301 02/13/2018 CHICASESCOBAR CITY LOGO STICKERS FOR POLICE VEHICLES 402-50-591-53100-00000 164.,25 218301 02/13/2018 CHICASESCOBAR TEMPORARY NO PARKING SIGNS 245-50-550-53100-15622 109.5 218302 02/13/2018 CINTAS FIRSTAID & SAFETY FIRST AID SUPPLIES 402-50-590-53100-00000 176.55 218303 02/13/2018 COMMERCIAL LANDSCAPE SUF MISCELLANEOUS SUPPLIES 251-50-571-53100-00000 199.39 218304 02/13/2018 COMPUTER SERVICES COMP0TRAFFIC SIGNAL & STREET LIGHTING MAINTENANCE 240-50-530-51100-00000 3690 218305 02/13/2018 ENVIRONMENTAL SCIENCE AS! 3 PARTY AGREEMENT BETWEEN THE STETSON GROUP 501-40-000-22338-14130 10894.88 218305 02/13/2018 ENVIRONMENTAL SCIENCE AS! 3PARTY AGREEMENT BETWEEN THE STETSON GROUP 501-40-000-22338-14130 262521 218306 02/13/2018 EVAN BROOKS ASSOCIATES, IN PROJECT & DESIGN MANAGEMENT SERVICES 270-50-520-58100-15716 490 218306 02/13/2018 EVAN BROOKS ASSOCIATES, IN FUNDS ADMINISTRATION RE -OBLIGATION E-76 245-50-520-58100-15698 825 218306 02/13/2018 EVAN BROOKS ASSOCIATES, IN COMMUTER CONNECTOR EXPRESS PROJECT 270-50-520-58100-15508 715 218307 02/13/2018 GRAND PRINTING PRINTING OF BUSINESS CARDS 100-30-330-53320-00000 97.02 218308 02/13/2018 H&I HOLDING CORP SERVICE FOR MCNEILL MANOR 905-40-410-53371-14305 230 218309 02/13/2018 L.A. COUNTY DEPT OF ANIMALANIMAL CONTROLSERVICES 100-30-390-51100-13250 24864.76 218310 02/13/2018 LAWN MOWER CORNER REPAIRS OFPOWERTOOLS 244-50-581-51101-15510 54.3 218310 02/13/2018 LAWN MOWER CORNER REPAIRS OF POWER TOOLS 244-50-581-51101-15510 437.85 218310 02/13/2018 LAWN MOWER CORNER REPAIRS OFPOWERTOOLS 245-50-551-51101-15510 27.91 218310 02/13/2018 LAWN MOWER CORNER REPAIRS OFPOWERTOOLS 245-50-551-51101-15510 52.91 218311 02/13/2018 MARSAN TURF & IRRIGATION IRRIGATION SUPPLIES FOR DOWNTOWN 254-50-520-53100-14120 188.77 218311 02/13/2018 MARSAN TURF & IRRIGATION IRRIGATION SUPPLIES 251-50-571-53100-00000 225.57 218312 02/13/2018 NICE CLEANERS UNIFORM RENTALS FOR INMATES 100-30-370-51101-00000 80 218312 02/13/2018 NICE CLEANERS UNIFORM RENTALS FOR INMATES 100-30-370-51101-00000 40 218313 02/13/2018 OFFICE DEPOT INC MISCELLANEOUS OFFICE SUPPLIES 246-50-540-53100-15005 955.9 218313 02/13/2018 OFFICE DEPOT INC OFFICE SUPPLIES 100-50-500-53100-00000 10.35 218313 02/13/2018 OFFICE DEPOT INC OFFICE SUPPLIES 100-50-500-53100-00000 66.06 218313 02/13/2018 OFFICE DEPOT INC OFFICE SUPPLIES 100-50-500-53100-00000 4.26 218313 02/13/2018 OFFICE DEPOT INC OFFICE SUPPLIES 100-50-500-53100-00000 3.27 218314 02/13/2018 O'REILLY AUTO PARTS PARTS & SUPPLIES FOR VEHICLES 402-50-590-53100-00000 139.98 218314 02/13/2018 O'REILLY AUTO PARTS PARTS & SUPPLIES FOR VEHICLES 402-50-590-53100-00000 26.26 218314 02/13/2018 O'REILLY AUTO PARTS PARTS & SUPPLIES FOR VEHICLES 402-50-590-53100-00000 170.63 218315 02/13/2018 QUINN SHEPHERD MACHINERISERVICE & PARTS FOR TRACTOR & HEAVY EQUIPMENT 402-50-590-51101-00000 533.96 218316 02/13/2018 TERMINIX INTERNATIONAL SERVICES FOR MCNEILL MANOR 905-40-410-53371-14305 80 218317 02/13/2018 UNITED ROTARY BRUSH CORP REPLACEMENT PARTS FOR STREET SWEEPER 402-50-590-53100-00000 242.26 218318 02/13/2018 EMPLOYMENT DEVELOPMENT UNEMPLOYMENT INSURANCE BENEFIT OCT -DEC 2017 403-10-160-54120-00000 2020 218319 02/13/2018 HDL, COREN & CONE CONTRACT SERV PROPERTY TAX JAN -MAR 2018 100-25-299-51100-00000 2635.77 218320 02/13/2018 MGT OF AMERICA, INC SB 90 CLAIM 16-2017 SERVICE 100-25-299-51100-00000 2250 218321 02/13/2018 SAN GABRIEL VALLEY WATER WATER COST FOR CITY PARKS 252-60-620-53402-00000 4227.59 218321 02/13/2018 SAN GABRIEL VALLEY WATER WATER COST FOR SPRINKLERS 251-50-560-53402-00000 952.81 218321 02/13/2018 SAN GABRIELVALLEY WATER SPRINKLERS 251-50-560-53402-00000 61.49 218322 02/13/2018 SECRETARY OF STATE FILING FEE FOR FORM F635 100-25-299-51101-00000 100 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 251-50-530-53401-00000 79.58 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 251-50-530-53401-00000 58.81 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 100-60-620-53401-00000 13311.36 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 251-50-560-53401-00000 642.72 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 251-50-530-53401-00000 3035.1 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 240-50-551-53401-15705 68.21 218324 02/13/2018 SOUTHERN CALIFORNIA EDISO ENERGY COST 245-50-530-53401-15535 157.06 218325 02/13/2018 SPRINT INTERNETSERVICE @ WALNUT CREEK 501-60-000-22328-00000 10.17 218326 02/13/2018 THE GAS COMPANY GAS COST FOR CITY BUILDINGS 100-60-620-53400-00000 2009.35 218327 02/13/2018 THE SHREDDERS CERTIFOIED DOCUMENT DESTRUCTION 100-20-210-51101-00000 36.5 218328 02/13/2018 VALLEY COUNTY WATER DIST SERVICE FOR MCNEILL MANOR PUBLIC HOUSING UNITS 905-40-410-53402-14305 148.09 218328 02/13/2018 VALLEY COUNTY WATER DIST WATER COST FOR CITY PARKS 252-60-620-53402-00000 796.68 218328 02/13/2018 VALLEY COUNTY WATER DIST WATER COST FOR SPRINKLERS 251-50-560-53402-00000 4917.88 218328 02/13/2018 VALLEY COUNTY WATER DIST WATER COST FOR CITY BUILDINGS 100-60-620-53402-00000 1542.93 8 <1. 27 . . n . ..... � "I" . .... .. ..... . _...,........ ......... .... „ ...... ,.. , ......., - .-._ ...... . -_ .................... .... fir r r l�ik Check Register Payment Dates: 02/13/2018 - 02/22/2018 Payment Number Payment Date Vendor Name Description (Item) Account Number Amount 218328 02/13/2018 VALLEY COUNTY WATER DIST WATER COST FOR CITY HALL TRANSIT CENTER 100-60-620-53402-15882 424.67 218329 02/14/2018 AMERICAN PLANNING ASSOChMEMBERSHIP FOR ABRAHAM TELLEZ,ASSOCIATE PLANNER 100-40-440-53320-00000 448 218330 02/14/2018 CALBO ONE DAY TRAINING FOR SEAN GAGE ON 2-6-18 100-40-450-53200-00000 195 218331 02/14/2018 CARPENTER & ROTHANS PROFESSIONAL SERVICES RE: BALDWIN PARK GENERAL 403-10-160-54100-00000 1279.2 218332 02/14/2018 CHRISTOPHER HOFFORD FY 17-18 EDUCATION REIMBURSEMENT -ADMIN. 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FRANCESCHI REFUND OF DEPOSIT FOR BARNES GRAND SHELTER 501-60-000-22333-00000 100 218339 02/14/2018 MANAGED HEALTH NETWORK EMPLOYEE ASSISTANCE PROGRAM: 148 EMPLOYEES°2.40 100-10-150-53370-00000 355.2 218340 02/14/2018 MELISSA TRUJ I LLO MILEAGE REIMBURSEMENT FOR LCW TRAINING-DISABILITY 100-10-150-53350-00000 11.98 218341 02/14/2018 NATALIE CHRISSY EDGAR RELEASE OF EVIDENCE PROPERTY FROM CURRENCY DEPOSIT 501-30-000-22403-00000 96 218342 02/14/2018 OFFICE DEPOT INC OFFICE SUPPLIES 403-10-160-53100-00000 6.01 218342 02/14/2018 OFFICE DEPOT INC OFFICE SUPPLIES 403-10-160-53100-00000 44-38 218343 02/14/2018 PAPA MEMBERSHIP FEES FOR ANTHONY VAZQUEZ 240-50-550-53330-15705 45 218344 02/14/2018 R & R SIGNS ESTIMATE INVOICE FOR 25 HOMETOWN MILITARY BANNERS 230-10-120-53100-11510 3989,9 218345 02/14/2018 SOFIA ROBLES REFUND OF DEPOSIT FOR ADOBE EASTAND WEST 501-60-000-22333-00000 300 218346 02/14/2018 STERICYCLE, INC. 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"N` ufld Check Register Payment Dates: 02/13/2018 - 02/22/2018 Payment Number Payment Date Vendor Name Description (item) Account Number Amount 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 57.6 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 8.74 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 39.72 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 11.39 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 36.24 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR CITY VEHICLES 402-50-590-53100-00000 47.23 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 6.38 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 121,75 218370 02/15/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 158.95 218370 02/15/2018 CAR 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501-60-000-22328-00000 38.7 218389 02/22/2018 ROYAL COACHES AUTO BODY COLLISION DAMAGE REPAIRS &TOWING SERVICES 402-50-590-53100-00000 342,4 218390 02/22/2018 STARS GYMNASTICS LLC GYMNASTIC CLASSES 501-60-000-22328-00000 874 218391 02/22/2018 THE GAS COMPANY NATURAL GAS FUEL FOR CITY VEHICLES 402-50-590-53110-16140 12.91 218392 02/22/2018 TIME WARNER CABLE INTERNET SERVICE 100-60-680-51100-00000 89.99 218393 02/22/2018 TIME WARNER CABLE INTERNET SERVICE FOR SURVEILLANCE CAMERAS 100-60-660-53100-00000 89.98 218394 02/22/2018 TIME WARNER CABLE INTERNETSERVICE 100-60-670-51101-15100 89,97 218395 02/22/2018 TIME WARNER CABLE CABLE SERVICES FOR POLICE DEPARTMENT 100-30-310-53405-00000 171.33 218396 02/22/2018 VERIZON BUSINESS 20M INTERNET SERVICES 401-10-141-53403-11506 206331 218397 02/22/2018 VERIZON BUSINESS 20M INTERNET SERVICES 401-10-141-53403-11506 85.67 218398 02/22/2018 VERIZON WIRELESS CELLULAR AND TABLETS SERVICE 246-50-540-53403-15005 1106.68 218399 02/22/2018 CHRISTOPHER KUBERRY COMPUTER LOAN 2/22/2018 100-00-000-11031-00000 808.11 218400 02/22/2018 ACCESS CONTROLSECURITY IN SECURITY GUARD SERVICES 501-60-000-22328-00000 125 218400 02/22/2018 ACCESS CONTROL SECURITY IN SECURITY GUARD SERVICES FOR EVENT RENTALS 501-60-000-22328-00000 600 218401 02/22/2018 BSN SPORTS SUPPLIES FOR YOUTH FOOTBALL PROGRAM 501-60-000-22326-00000 311.23 218402 02/22/2018 CAR QUEST RETURN OF VARIOUS ITEMS 402-50-591-53100-00000 -87,61 218402 02/22/2018 CAR QUEST DEFECTIVE RETURN OF XIP 123 402-50-591-53100-00000 -31.74 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 31.74 218402 02/22/2018 CAR QUEST RESELLABLE RETURN OXYGEN SENSOR 402-50-591-53100-00000 -36.12 2i2l,�21018, 11:2-11:35 AM ..,...w.,,,_.,_._.._.-.....,... ............... . . ...... . . . . . . . . . . . . . .......... ...................... . ........ M Check Register Payment Dates: 02/13/2018 - 02/22/2018 Payment Number Payment Date Vendor Name Description (item) Account Number Amount 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 46.58 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 28.35 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 46.58 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 60.38 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 57.16 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 47.41 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 110.75 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 454.33 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 43.67 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 43,67 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 325.42 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 115 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 114 218402 02/22/2018 CAR QUEST PARTS & SUPPLIES FOR POLICE VEHICLES 402-50-591-53100-00000 13.32 218404 02/22/2018 CRUZ'S AUTO DETAIL MOBILE CARWASH SERVICES FOR POLICE DEPARTMENT 402-50-591-51101-00000 2790 218404 02/22/2018 CRUZ'S AUTO DETAIL MOBILE CAR WASHES FOR POLICE VEHICLES 402-50-591-51101-00000 440 218405 02/22/2018 D&D WHOLESALE DISTRIBUTO SUPPLEMENTAL FOOD FOR FOOD BASKETS 100-60-640-53100-16106 500 218406 02/22/2018 DUN N-EDWARDS CORP PAINT FOR AQUATIC CENTER BATHROOMS AND 501-60-000-22329-00000 1383.48 218407 02/22/2018 EWING IRRIGATION IRRIGATION SUPPLIES 251-50-562-53100-00000 319.65 218408 02/22/2018 EXPERIAN CREDIT REPORTS FOR SECTION &, REHAB HOME LOANS, 220-40-420-51101-14700 38,86 218408 02/22/2018 EXPERIAN CREDIT REPORTS FOR SECTION &, REHAB HOME LOANS, 901-40-410-51101-00000 38.86 218409 02/22/2018 HOME DEPOT MISCELLANEOUS SUPPLIES 251-50-571-53100-00000 72.77 218410 02/22/2018 INLAND EMPIRE STAGES, LTD TRANSPORTATION SERVICES FOR SENIOR 244-60-630-51100-15540 911.25 218411 02/22/2018 INTERSTATE BATTERIES BATTERIES AND MISCELLANEOUS SUPPLIES 402-50-590-53100-00000 831.37 218411 02/22/2018 INTERSTATE BATTERIES BATTERIES AND MISCELLANEOUS SUPPLIES 402-50-590-53100-00000 150.29 218412 02/22/2018 IRON MOUNTAIN OFFSITE FILE STORAGE 901-40-410-51101-14310 500.75 218413 02/22/2018 KING BOLT COMPANY SPECIALIZED SCREWS AND BOLTS 251-50-560-53100-00000 14,91 218414 02/22/2018 MARSAN TURF& IRRIGATION IRRIGATION SUPPLIES 251-50-562-53100-00000 794.97 218415 02/22/2018 MIGUEL DELGADO MUSIC ENTERTAINMENT FOR FEBRUARY BIRTHDAY 501-60-000-22327-00000 188 218416 02/22/2018 NICHOLS LUMBER & HARDWAI SMALL TOOLS, HARDWARE AND SUPPLIES 245-50-550-53100-15622 32.78 218416 02/22/2018 NICHOLS LUMBER & HARDWAI MATERIALS & SMALLTOOLS 402-50-590-53100-00000 43.61 218416 02/22/2018 NICHOLS LUMBER & HARDWAI MISCELLANEOUS HARDWARE 254-50-581-53100-15510 13.62 218416 02/22/2018 NICHOLS LUMBER & HARDWAI MISCELLANEOUS HARDWARE 254-50-581-53100-15510 216.61 218416 02/22/2018 NICHOLS LUMBER & HARDWAI SMALL TOOLS, HARDWARE AND SUPPLIES 245-50-550-53100-15622 51,18 218416 02/22/2018 NICHOLS LUMBER & HARDWAI SMALL TOOLS, HARDWARE AND SUPPLIES 245-50-550-53100-15622 85.67 218417 02/22/2018 O'REILLY AUTO PARTS PARTS & SUPPLIES FOR VEHICLES 402-50-590-53100-00000 21.08 218417 02/22/2018 O'REILLY AUTO PARTS PARTS Is SUPPLIES FOR VEHICLES 402-50-590-53100-00000 48.16 218417 02/22/2018 O'REILLY AUTO PARTS PARTS & SUPPLIES FOR VEHICLES 402-50-590-53100-00000 65,69 218418 02/22/2018 STANLEY CONVERGENT SECUR EXACQTECH EVIP-01 SINGLE IP CAMERA LICENSE 32/EA, 271-30-310-58110-17251 18675 218419 02/22/2018 THE FRIENDLY SWEDE AB TFS BIKE LIGHTS SET, 250/EA 270-50-510-53100-15460 2382 218420 02/22/2018 UNITED STORM WATER, INC. DOCUMENTATION& DISPOSAL OF HAZARDOUS WASTE 402-50-590-51101-00000 2016.2 218421 02/22/2018 VANESSA AREVALO DE FUENTE PAINT NITE EVENT AT ARC 1-20-18 501-60-000-22328-00000 275 218422 02/22/2018 AAEINCORPORATED SAFE ROUTES TO SCHOOL 254-50-520-58100-15861 280.1 218423 02/22/2018 BALDWIN PARK BUS IN ESSASS(CITY OF BALDWIN PARK MEMBERSHIP DUES 100-25-299-53330-00000 250 218423 02/22/2018 BALDWIN PARK BUSINESS ASS(S,YAUCHZEE MEMBERSHIP DUES 100-10-110-53330-00000 50 218424 02/22/2018 BALDWIN PARK COMMUNITY (SPORTS SCHOLARSHIP JANUARY 220-40-420-53360-14891 575.5 218425 02/22/2018 BALDWIN PARK PIZZA CDBG ADVISORY MEETING 2/8/2019 220-40-420-53350-14700 50,.64 218426 02/22/2018 BUSINESS CARD 20118 SGV ECONOMIC 100-10-100-53350-11008 85 218426 02/22/2018 BUSINESS CARD ICSC REGISTRATION 100-10-110-53350-00000 95 218426 02/22/2018 BUSINESS CARD 2018 SGV ECONOMIC 100-10-110-53350-00000 85 218426 02/22/2018 BUSINESS CARD ICSC REGISTRATION 100-40-405-53350-00000 190 218426 02/22/2018 BUSINESS CARD SOFTWARE 240-50-510-53100-00000 16.98 218426 02/22/2018 BUSINESS CARD SOFTWARE 240-50-510-53100-00000 566 218427 02/22/2018 BUSINESS CARD PEN REFILLS 100-30-300-53100-00000 19.15 218427 02/22/2018 BUSINESS CARD PEN REFILLS 100-30-300-53100-00000 927 218427 02/22/2018 BUSINESS CARD PROTECTION PLAN 100-30-310-51100-00000 15,55 218427 02/22/2018 BUSINESS CARD PROTECTION PLAN 100-30-310-51100-00000 17.08 218427 02/22/2018 BUSINESS CARD REPLENISH TOLL ROAD 100-30-310-51100-00000 43.4 218427 02/22/2018 BUSINESS CARD REPLENISH TOLL ROAD 100-30-310-51100-00000 46.29 218427 02/22/2018 BUSINESS CARD CABLE SERVICE 100-30-310-51100-00000 69.66 ........... . . . ..... 11:27:35 AM . . ................. . --------- ---- ------ - --------- - - -------- - --- ------------- ........ ... ............. ..... - . . . ........ ....... . ............................................. . . .... ...... . I r), r[ k Check Register Payment Dates: 02/13/2018 - 02/22/2018 Payment Number Payment Date Vendor Name Description (item) Account Number Amount 218427 02/22/2018 BUSINESS CARD 2 PRINTERS ORDERED 100-30-310-53100-00000 398.04 218427 02/22/2018 BUSINESS CARD PORT SWITCH 100-30-310-53100-00000 428 218427 02/22/2018 BUSINESS CARD 2 STAMPS ORDERED 100-30-310-53100-00000 46.75 218427 02/22/2018 BUSINESS CARD CLERGY MEETING 100-30-310-53350-00000 52.6 218427 02/22/2018 BUSINESS CARD CLERGY MEETING 100-30-310-53350-00000 15.95 218427 02/22/2018 BUSINESS CARD KEYBOARD 100-30-320-53100-00000 87.6 218428 02/22/2018 BUSINESS CARD IACP TRNG M.TAYLOR & D.PARNELL 205-30-310-53200-00000 800 218429 02/22/2018 BUSINESS CARD INTERNATIONAL FEE 401-10-140-53390-00000 1.05 218429 02/22/2018 BUSINESS CARD DOMAIN EXPIRATION PROTECTION 401-10-140-53390-00000 9.99 218429 02/22/2018 BUSINESS CARD BULB FOR MICROFILM MACHINE 401-10-140-53390-00000 16.97 218429 02/22/2018 BUSINESS CARD SOFTWARE SUBSCRIPTION 401-10-140-53390-00000 34.76 218429 02/22/2018 BUSINESS CARD 4 PORT WIRELESS USB 401-10-140-53390-00000 80,8 218429 02/22/2018 BUSINESS CARD JOCIALATOOLS SUBSCRIPTION 401-10-140-53390-00000 99 218429 02/22/2018 BUSINESS CARD ETHERNET LAN NETWORK 401-10-140-53390-00000 23.36 218430 02/22/2018 BUSINESS CARD 2018 ICA CONFERENCE REGISTRATION 100-10-100-53350-11002 500 218431 02/22/2018 BUSINESS CARD LOGING 100-10-100-53350-11006 742.64 218431 02/22/2018 BUSINESS CARD FLIGHT RESERVATION 100-10-100-53350-11006 381.96 218432 02/22/2018 ICRMA PUBLIC WORKS DEPT 403-10-160-54100-00000 5117.63 218433 02/22/2018 AAEINCORPORATED VARIOUS STREETS IMPROVEMENTS PROJECT 245-50-551-58100-15625 17899.9 218434 02/22/2018 MONTY'S ELECTRIC ELECTRICAL SERVICES AT TRANSIT CENTER 254-50-581-51101-00000 749 218435 02/22/2018 AAEINCORPORATED CITY ENGINEERING SERVICES 100-50-510-51100-00000 7077.5 218435 02/22/2018 AAEINCORPORATED CITY ENGINEERING SERVICES 245-50-520-58100-15698 3501.5 218435 02/22/2018 AAEINCORPORATED CITY ENGINEERING SERVICES 245-50-520-58110-15091 447 DFT0000689 02/15/2018 ICMA DEFERRED COMP LOAN REPAYMENT 100-00-000-21231-00000 294.73 DFT0000690 02/15/2018 ICMA DEFERRED COMP LOAN REPAYMENT 100-00-000-21231-00000 481.86 DFT0000691 02/15/2018 ICMA DEFERRED COMP LOAN REPAYMENT 100-00-000-21231-00000 122108 DFI-0000692 02/15/2018 NATIONWIDE RETIREMENT SO NATIONWIDE CITY PAID 100-00-000-21257-00000 450 DFT0000693 02/15/2018 NATIONWIDE RETIREMENT 50 NATIONWIDE CITY PAID 100-00-000-21257-00000 204.76 DFI-0000694 02/15/2018 ICMA ICMA CITY PAID 100-00-000-21257-00000 2050 DFT0000695 02/15/2018 ICMA ICMA CITY PAID 100-00-000-21257-00000 850.73 DFT0000696 02/15/2018 INTERNAL REVENUE SERVICE FEDERAL INCOME TAX PAYMENT 100-00-000-21203-00000 62301.61 DFT0000697 02/15/2018 INTERNAL REVENUE SERVICE SOCIAL SECURITY PAYMENT 100-00-000-21200-00000 2898.14 DFT0000698 02/15/2018 INTERNAL REVENUE SERVICE MEDICARE PAYMENT 100-00-000-21201-00000 17618.66 DFT0000699 02/15/2018 STATE OF CALIFORNIA EMPLO)STATE INCOMETAX PAYMENT 100-00-000-21202-00000 23327.74 Grand Total: 380636.83 Check Register Check Register Fund Summary Fund 100 -GENERAL FUND 205 - FEDERAL ASSET FORFEITURE 220-CDBG 230 - AB1693 BUSINESS IMPRVMNT FEES 234 - PARK FEES (QUIMBY FEES) 240 - GAS TAX 244 - PROPOSITION A 245 - PROPOSITION C 246 - AB939 INT WASTE MANAGEMENT 249 -STORM DRAIN/NPDS 251- STREET LIGHT & LANDSCAPE 252 - PARKS MAINTENANCE DISTRICT 254- MEASURE R LOCAL RETURN 270 -GRANTS FUND 271- POLICE GRANTS FUND 401 - INFORMATION SERVICES 402 - FLEET SERVICES 403 - INTERNAL INSURANCE 501 -TRUST DEPOSITS 901- HOUSING VOUCHER CHOICE 905 - PUBLIC HOUSING Grand Total: Page 5 :f F Payment Dates: 02/13/2018 - 02/22/2018 Report Summary Payment Amount 197808.51 920 665 6095.85 999831 4386.19 1403.4 24190.41 2062.58 7472 47153.93 10016.77 1448.1 3587 18675 4599.38 10253.59 9257.22 19539.79 539.61 564.19 38066.83 Account Summary Account Number Account Name 100-30-390-51100-13250 CONSULTANT SERVICES Page 6 of $ Payment Dates: 02/13/2018 - 02/22/2018 Payment Amount 24864.76 Account Summary Account Number Account Name Payment Amount 100-00-000-11031-00000 EMPLOYEE'S RECVBLE - P, 808.11 100-00-000-21200-00000 FICA W/HELD 2898.14 100-00-000-21201-00000 MEDICARE W/HELD 17618.66 100-00-000-21202-00000 STATE TAX W/HELD 23327.74 100-00-000-21203-00000 FEDERAL INCOME TAX W, 62301.61 100-00-000-21225-00000 SALARY GARNISHMENTS 4487.2 100-00-000-21231-00000 DEF COMP LOAN REPAYIV 1999.67 100-00-000-21257-00000 EMPLOYER PAID DEFERRI 3555.49 100-10-100-53350-11002 MEETINGS & CONFEREW 500 100-10-100-53350-11006 MEETINGS & CONFEREW 1124.6 100-10-100-53350-11008 MEETINGS & CONFEREW 85 100-10-110-53330-00000 PUBLICATIONS, SUBSCRIF 50 100-10-110-53350-00000 MEETINGS & CONFEREW 805.44 100-10-150-53350-00000 MEETINGS & CONFEREW 44.4 100-10-150-53370-00000 GENERAL OPERATING EXI 355.2 100-20-210-51101-00000 PROFESSIONAL SERVICES 36.5 100-25-299-51100-00000 CONSULTANT SERVICES 4885.77 100-25-299-51101-00000 PROFESSIONAL SERVICES 100 100-25-299-53330-00000 PUBLICATIONS, SUBSCRIF 250 100-30-000-42303-00000 VEHICLE RELEASE 30 100-30-300-53100-00000 MATERIALS & SUPPLIES 111.85 100-30-310-51100-00000 CONSULTANT SERVICES 277.81 100-30-310-53100-00000 MATERIALS & SUPPLIES 1213.66 100-30-310-53210-00000 TUITION REIMBURSEMEh 974.97 100-30-310-53350-00000 MEETINGS & CONFEREW 68.55 100-30-310-53403-00000 UTILITIES -TELEPHONE 550.25 100-30-310-53405-00000 UTILITIES -OTHER 171.33 100-30-320-53100-00000 MATERIALS & SUPPLIES 87.6 100-30-330-51100-00000 CONSULTANT SERVICES 63 100-30-330-53320-00000 OUTSIDE PRINTING 97.02 100-30-370-51101-00000 PROFESSIONAL SERVICES 120 100-30-390-51100-13200 CONSULTANT SERVICES 5412 Account Summary Account Number Account Name 100-30-390-51100-13250 CONSULTANT SERVICES Page 6 of $ Payment Dates: 02/13/2018 - 02/22/2018 Payment Amount 24864.76 100-40-000-43400-00000 CONSTRUCTION PERMITS 119443 100-40-405-53350-00000 MEETINGS & CONFERENC 190 100-40-440-53320-00000 OUTSIDE PRINTING 448 100-40-450-53200-00000 EDUCATION & TRAINING 195 100-50-500-53100-00000 MATERIALS & SUPPLIES 83.94 100-50-510-51100-00000 CONSULTANT SERVICES 7077.5 100-60-610-51100-00000 CONSULTANT SERVICES 25.86 100-60-610-53100-00000 MATERIALS & SUPPLIES 1997 100-60-610-53403-00000 UTILITIES-TELEPHONE 37.54 100-60-620-53100-00000 MATERIALS & SUPPLIES 190.2 100-60-620-53371-00000 MAINTENANCE & REPAIR 4992.5 100-60-620-53400-00000 UTILITIES-GAS 2009.35 100-60-620-53401-00000 UTILITIES - ELECTRICITY 16856.98 100-60-620-53402-00000 UTILITIES-WATER 1969.24 100-60-620-53402-15882 UTILITIES-WATER 42467 100-60-630-51101-00000 PROFESSIONAL SERVICES 25.86 100-60-630-53100-00000 MATERIALS & SUPPLIES 19.21 100-60-640-53100-00000 MATERIALS & SUPPLIES 1 100-60-640-53100-16106 MATERIALS & SUPPLIES 500 100-60-650-53100-00000 MATERIALS & SUPPLIES 53.68 100-60-660-53100-00000 MATERIALS & SUPPLIES 1629.41 100-60-670-51101-15100 PROFESSIONAL SERVICES 89.97 100-60-670-53100-15100 MATERIALS & SUPPLIES 201.31 100-60-680-51100-00000 CONSULTANT SERVICES 89.99 100-60-680-53100-00000 MATERIALS & SUPPLIES 26.84 205-30-310-51100-00000 CONSULTANT SERVICES 120 205-30-310-53200-00000 EDUCATION & TRAINING 800 220-40-420-51101-14700 PROFESSIONAL SERVICES 38.86 220-40-420-53350-14700 MEETINGS & CONFERENC 50,64 220-40-420-53360-14891 PUBLIC SERVICE AGENCIE 575.5 230-10-120-53100-11510 MATERIALS & SUPPLIES 3989.9 230-60-610-51100-16148 CONSULTANT SERVICES 2105.95 234-60-620-58100-16206 CONTRACT SERVICES 9998.31 240-50-510-53100-00000 MATERIALS & SUPPLIES 582.98 240-50-530-51100-00000 CONSULTANT SERVICES 3690 240-50-550-53330-15705 PUBLICATIONS, SUBSCRIF 45 240-50-551-53401-15705 UTILITIES - ELECTRICITY 68.21 244-50-581-51101-15510 PROFESSIONAL SERVICES 492.15 244-60-630-51100-15540 CONSULTANT SERVICES 911..25 245-50-520-58100-15698 CONTRACT SERVICES 4326.5 245-50-520-58110-15091 EQUIPMENT PURCHASE 447 245-50-530-53401-15535 UTILITIES - ELECTRICITY 157.06 245-50-550-53100-15622 MATERIALS & SUPPLIES 279.13 245-50-551-51101-15510 PROFESSIONAL SERVICES 80.82 245-50-551-58100-15625 CONTRACT SERVICES 17899.9 245-60-620-53371-15882 MAINTENANCE & REPAIR 1000 246-50-540-53100-15005 MATERIALS & SUPPLIES 955.9 246-50-540-53403-15005 UTILITIES-TELEPHONE 1106.68 249-50-510-51100-15400 CONSULTANT SERVICES 7472 251-50-530-51100-00000 CONSULTANT SERVICES 15 251-50-530-53401-00000 UTILITIES - ELECTRICITY 38936.77 251-50-560-53100-00000 MATERIALS & SUPPLIES 14.91 251-50-560-53401-00000 UTILITIES - ELECTRICITY 642.72 251-50-560-53402-00000 UTILITIES-WATER 5932.18 251-50-562-53100-00000 MATERIALS & SUPPLIES 1114.62 251-50-571-53100-00000 MATERIALS & SUPPLIES 497.73 252-60-620-53371-00000 MAINTENANCE & REPAIR 49915 2/2',Y'016 11:27 . .... . . .... Page 7 of 8 Check Reghteir Payment Dates: 02/13/2018 - 02/22/2018 Account Summary Account Number Account Name Payment Amount 252-60-620-53402-00000 UTILITIES-WATER 5024.27 254-50-520-53100-14120 MATERIALS & SUPPLIES 188.77 254-50-520-58100-15861 CONTRACT SERVICES 280.1 254-50-581-51101-00000 PROFESSIONAL SERVICES 749 254-50-581-53100-15510 MATERIALS & SUPPLIES 230.23 270-50-510-53100-15460 MATERIALS & SUPPLIES 2382 270-50-520-58100-15508 CONTRACT SERVICES 715 270-50-520-58100-15716 CONTRACT SERVICES 490 271-30-310-58110-17251 EQUIPMENT PURCHASE 18675 401-10-140-53390-00000 MINOR EQUIPMENT PUR, 265.93 401-10-141-53320-11502 OUTSIDE PRINTING 411.74 401-10-141-53371-11504 MAINTENANCE & REPAIR 512.43 401-10-141-53403-11506 UTILITIES - TELEPHONE 2252.97 401-10-141-58140-11502 LEASE EXPENSE 1156.31 402-50-590-51101-00000 PROFESSIONAL SERVICES 2550.16 402-50-590-53100-00000 MATERIALS & SUPPLIES 2718.86 402-50-590-53110-16140 402-50-591-51101-00000 402-50,591-53100-00000 403-10.160-53100-00000 403-10-160-53200-00000 403-10-160-54100-00000 403-10-160.54120.00000 501-30=000-21411-14070 501-30-000.22403-00000 501-40000-22338-14130 501-60-000-22326-00000 501-601000-22327-00000 501-66000-22328-00000 501-601000-22329-00000 501-6O.ODO-22333-00000 901-40-410-51101-00000 901-4Oi10-51101-14310 905-40.410-53371-14305 905-40.410-53401-14305 905-401410-53402-14305 PrcJM Account Key **None* FUEL PROFESSIONAL SERVICES MATERIALS & SUPPLIES MATERIALS & SUPPLIES EDUCATION & TRAINING GENERAL LIABILITY CLAIN UNEMPLOYMENT INS CU FINGERPRINTS - CLIENTS SEIZED MONEY THREE PARTY AGREEMEN LEAGUES TOURN & REGIS SR CITIZEN TRIPS & TOUR DONATIONS COMM CTRE S W IMTEAM/INTERPRETIf RENTAL CLEANING DEPO' PROFESSIONAL SERVICES PROFESSIONAL SERVICES MAINTENANCE & REPAIR UTILITIES - ELECTRICITY UTILITIES - WATER Grand Total: Project Account Summary Grand Total: 12.91 3230 1741.66 50.39 390 6796.83 2020 256 96 13520.09 311.23 280.96 2184.67 1490.84 1400 38.86 500.75 310 106.1 148.09 380636.83 Payment Amount 380636.83 380636.83 12018 11:27:35 AM Page a of 8 MINUTES 2 BALDWIN PARK CITY COUNCIL REGULAR MEETING JANUARY 17,2018,7:00 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 These minutes are presented in Agenda order. Various announcements or discussions may have occurred before or after the title under which they are presented. CALL TO ORDER. The meeting was called to order by Mayor Pro Tem Pacheco at 7:09 p.m. INVOCATION The invocation was provided by Pastor Jackson. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Pro Tem Pacheco. ROLL CALL MEMBERS PRESENT: Council Member Cruz Baca Council Member Monica Garcia Council Member Susan Rubio Mayor Pro Tem Ricardo Pacheco Mayor Manuel Lozano (Mayor Lozano arrived at 7:35 p.m.) Mayor Pro Tem Pacheco reported out of Closed Session that no action was taken on items discussed. ANNOUNCEMENTS Council member Baca requested that the meeting be closed in memory of the late Frank Napolitano, husband of Congresswoman Grace Napolitano; directed staff to send a letter of condolences. Council member Baca also requested that the meeting be closed in memory of, and that condolences be extended to the families of Jordan Rios, John Brenner, Anita Lasar, Moijes Tovar. Mayor Lozano requested also that the meeting be closed in memory of Michael Stevens a 39 year employee of the Baldwin Park Unified School District adult school who recently passed away. PROCLAMATIONS COMMENDATIONS & PRESENTATIONS • Presentation by Jan Cicco, San Gabriel Valley Council of Governments, to provide an update on Measure H and the Home for Good program. Ms. Cicco narrated a PowerPoint presentation and responded to questions from Council. • Presentation of plaques and recognition of the 2017 Senior King and Queen, Jorge and Maria Hernandez Kristi Russell Chief Deputy City Clerk was recognized for her valuable service to the City of Baldwin Park and to the community with members of the City Council expressing gratitude and appreciation for her hard work and diligence. City Clerk Avila commented that Ms. Russell was the type of professional who ran the Office of the City Clerk effectively and did many small and large tasks to keep the office running and all with grace and a positive attitude. Mayor Pro Tem Pacheco recognized Senior Prom King and Queen Mr. and Mrs. Jorge Hernandez and presented the couple with a plaque and flowers. • Presentation by Southern California Edison representative Sal Ramirez of an Energy Rebate Check for the City of Baldwin Park Sal Ramirez, Southern California Edison, presented a ceremonial check to the Mayor and Council in the amount of $100,000 in energy rebate funds for energy savings PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 7:35 p.m. and noted that each speaker is permitted a total of three (3) minutes to speak. DonaldGrates, Baldwin Park resident, extended thanks and recognition to Allen Yauchzee, uncle to CEO Shannon Yauchzee, for hiring him at Southern California Edison as the first African-American. Al Contreras, Baldwin Park resident, commented on Item No. 6, noting that it seems unnecessary; voice objection to formally requiring the designation of male and female members. Christina Larios, Baldwin Park Library, spoke of upcoming events and reading opportunities at the library. Unidentified s esker, asked whether any more cannabis permits will be issued and, if so, when; asked about how funds collected from cannabis businesses will be used and asked whether any preference will be given to Baldwin Park residents that apply. Juan Rios,, Baldwin Park resident, spoke about the cannabis permit program and opined that more police officers should be hired before businesses are allowed to operate. Regular Meeting of 1/17/18 Page 2 of 11 John Garcia, Baldwin Park resident, asked about programs for the homeless; noted that there is a tree leaning against a City sign across from the high school. Greq Tuttle, Baldwin Park business owner, commented on public communications practices; opined that public notices were not sent to residents and business owners regarding the locations of cannabis growing businesses; commented on various political activities at the state level. Thomas Kern, San Bernardino resident, commented on the issues of sexual harassment that have been in the news lately. Margarita Vargas, Baldwin Park resident, voice objection to the resolution that would require an equal number of men and women on City Commissions. Dais Cruz, commented on the level of pollution in Baldwin Park and asked what steps are being taken to mitigate the problem. Manual Suarez Jr., commented that his mother had had a 31 year career with the Baldwin Park Unified School District and thanked the community for having given her that chance; commented that education was everything. Unidentified speaker commented on the need for the Dial -A -Ride. Manuel Penate spoke out against Council's decisions on how city funds were spent. Seeing no others wishing to speak, Public Communications closed at 8:16 p.m. CONSENT CALENDAR Council pulled Item Nos. 5, 6 and 9 from Consent Calendar for further discussion. 1. WARRANTS AND DEMANDS Staff recommends City Council ratify the attached Warrants and Demands Register. A motion was made by Pacheco seconded by Baca, and carried (5 — 0) to ratify the Warrants and Demands Register. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 2. TREASURER'S REPORT — MARCH 2017 Staff recommends that Council receive and file the Treasurer's Report. A motion was made by Paclieco, seconded by Baca, and carried (5 — 0) to receive and file the Treasurer's Report. Regular Meeting of 1/17/18 Page 3 of 11 AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 3. REJECTION OF CLAIMS Staff recommends that Council reject the following claim(s) and direct staff to send appropriate notice of rejection to claimant(s): Solis, Alejandro Claimant alleges the police department misplaced his wallet with the amount of $540 during the time of his arrest; the wallet and misplaced amount was returned to the claimant. Ortiz, Sandra Grandara Claimant alleges her vehicle was struck by a Foothill Transit bus causing injuries. The City does not have an agreement with Foothill Transit and Foothill Transit has insurance through the MTA by franchise agreement. A motion was made by aach, seconded by Baca, and carried (5 — 0) to reject the claims and direct staff to send appropriate notice of rejection to claimants. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 4.. APPROVAL OF MEETING MINUTES Receive and file: A. Meeting Minutes of the Special and Regular City Council Meetings held on December 6, 2017. B. Meeting Minutes of the Special Finance Authority, Special Housing Authority, Special Closed Session and Special Regular City Council Meetings held on December 13, 2017. C. Meeting Minutes of the Special Closed Session and Special Regular City Council Meetings held on December 18, 2017 A motion was made by Pacheco, seconded by Baca, and carried (5 — 0) to receive and file the minutes. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. Regular Meeting of 1/17/18 Page 4 of 11 5. ACCEPT AND AUTHORIZE THE FILING OF A NOTICE OF COMPLETION — CITY PROJECT NO. 2017-0189 — BUS STOP IMPROVEMENTS PROJECT — PHASE 1 Staff recommends that Council: 1. Accept the construction improvements by FS Contractors, Inc. and authorize the recordation of a Notice of Completion; and 2. Authorize the payment of $20,824.93 in retention funds to FS Contractors, Inc. upon the expiration of the 35 -day notice period. 3. Authorize the Finance Director to re -appropriate project savings and perform the necessary budget transfers for the purchase of six (6) solar powered trash compactors for an amount not -to -exceed $32,796.70 and authorize the Public Works Director to process the Purchase Order. Council Member Baca stated that she pulled the item because she wanted to thank staff for doing that. A motion was made by Baca, seconded by Pacheco, and carried (5 — 0) to approve item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 6. A RESOLUTION OF THE CITY OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DESIGNATING AN EQUAL NUMBER OF MEN AND WOMEN BE REQUIRED TO BE SEATED ON ALL CITY BOARDS OR COMMISSIONS Staff recommends that Council approve and adopt Resolution No. 2018-223, entitled "A Resolution of the City Council of the City of Baldwin Park, Designating an Equal Number of Men and Woman Be Required to be seated on All City Boards and Commissions." Council Member Rubio stated that this was a Resolution that she had proposed and read the title of the Resolution into the record; she further clarify that the intent of this Resolution applied to non -elective officers such as Boards and Commissions not members of the City Council. A motion was made by Rubio, seconded by Garcia, and carried (5 — 0) to approve as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 7. RATIFY AND ADOPT RESOLUTIONS TO APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BALDWIN PARK AND THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU); AND APPROVE Regular Meeting of 1/17/18 Page 5 of 11 RESOLUTIONS TO UPDATE THE PAY SCHEDULE REFLECTING SALARY AND BENEFIT ADJUSTMENTS IN ACCORDANCE WITH CALIPERS ESTABLISHED GUIDELINES Staff recommends that Council approve, ratify and adopt: Resolution No. 2018-218 to approve the MOU with the Baldwin Park General Unit Of Maintenance Employees (SEIU Local 721); and 2. Resolution No. 2018-219, updating the comprehensive City of Baldwin Park Pay Schedule to reflect salary adjustments retroactive to July 1, 2017, in accordance with approved Memorandum of Understandings, respectively, amended benefit matrices and State mandated wage adjustments; and 3. Resolution No. 2018-220, updating the comprehensive City of Baldwin Park Pay Schedule to reflect salary adjustments retroactive to December 1, 2017, in accordance with approved Memorandum of Understandings, respectively, amended benefit matrices and State mandated wage adjustments; and 4. Resolution No. 2018-221, updating the comprehensive City of Baldwin Park Pay Schedule to reflect salary adjustments effective January 1, 2018, in accordance with approved Memorandum of Understandings, respectively, amended benefit matrices and State mandated wage adjustments; and 5. Authorize the Finance Director to complete budget amendments and appropriations. A motion was made by Pacheco, seconded by Baca, and carried (5 — 0) to approve the Amendment to the Agreement with All City Management Services (ACMS) for crossing guard services for Fiscal Year 2017-2018; authorize the Mayor to execute the Amendment; and authorize staff to include the new contract price of $194,832 in the proposed budget for Fiscal Year 2017-2018 under account 100-30-390-51100-13200-2. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 8. ACCEPT PLANS AND SPECIFICATIONS, AND AUTHORIZE PUBLISHING A NOTICE INVITING BIDS FOR CITY PROJECT NO. 2018-0220 - RESIDENTIAL STREET REHABILITATION PROJECT Staff recommends that Council approve the plans and specification for the Residential Street Rehabilitation Project (Project No. 2018-0220) and authorize staff to publish a notice inviting bids. A motion was made by lcheco, seconded by Baca, and carried (5 — 0) to authorize the Acting Chief of Police to make all necessary arrangements with the EI Monte Police Department to immediately reinstate Baldwin Park's partnership in the helicopter program under the same terms of the FY 2016-2017 agreement most recently in effect. Regular Meeting of 1/17/18 Page 6 of 11 AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 9. RENEWAL OF GRANT WRITING SERVICES CONTRACT WITH CALIFORNIA CONSULTING, LLC Staff recommends that Council 1. Approve the Consultant Services Agreement with California Consulting, LLC; and 2. Authorize the Director of Finance to appropriate funds to cover the cost related to the grants applied for including but not limited to General Fund, Prop A Fund, or Future Development Fund; or 3. Provide staff direction. Council Member Baca asked that she would like to bring this back at the second meeting in February; she asked if it would be possible to see a presentation of what has transpired with this contract in the last few years. A motion was made by Baca, seconded by Iachcc, and carried (5 — 0) to bring this item back at the second meeting in February as requested by Council Member Baca along with a presentation. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. CITY COUNCIL ACTING AS SUCCESSOR AGENCY OF THE COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. SA -1 SUCCESSOR AGENCY TO THE DISSOLVED COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF BALDWIN PARK TREASURER'S REPORT — NOVEMBER 2017 Staff recommends that Council, acting as governing body of the Successor Agency, receive and file the Treasurer's Report. SA -2 APPROVAL OF THE RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE (ROPS 18-19) FOR THE PERIOD FROM JULY 1, 2018 TO JUNE 30, 2019, AND ADMINISTRATIVE BUDGET Staff recommends that Council, acting as governing body of the Successor Agency: 1. Approve the ROPS 18-19 for the period of July 1, 2018 through June 30, 2019; and Regular Meeting of 1/17/18 Page 7 of 11 2. Adopt the Successor Agency Administrative Budget for Fiscal Year 2018- 19; and, 3. Direct staff to proceed with submitting the draft ROPS 17-18 for approval to the Oversight Board no later than January 31, 2018; and, 4. Send the approved ROPS 18-19 to the County Executive Office, County Auditor Controller, the State Controller and DOF; and, 5. Instruct staff to post the approved ROPS 18-19 in the City's website. A motion was made by Pacheco, seconded by Garcia, and carried (5 — 0) to approve the Successor Agency consent calendar as presented`. AYES: NOES: ABSENT: ABSTAIN: PUBLIC HEARING Baca, Garcia, Lozano, Pacheco, Rubio None. None. None. 10.A REQUEST FOR CONSIDERATION OF A MUNICIPAL (ZONING) CODE AMENDMENT BY URGENCY ORDINANCE TO MODIFY CHAPTER 127 (COMMERCIAL CANNABIS) BY INCREASING THE NUMBER OF PERMITS PERMITTED FROM FIFTEEN TO TWENTY Staff recommends that Council conduct a public hearing and, thereafter waive the reading, and adopt by title only Urgency Ordinance No. 1404 entitled "An Urgency Ordinance of the City Council of the City of Baldwin Park, California, Amending the Municipal Code Chapter 127 — Commercial Cannabis." Item held over to a future meeting,. 11. DIRECTION TO PROCEED WITH GENERAL ON-CALL CONSULTANT TO PROVIDE ENGINEERING DESIGN, PLAN CHECK, CONSTRUCTION MANAGEMENT, INSPECTION AND RELATED SERVICES AS NEEDED Staff recommends that Council: Option 1: Accept proposals from the top responding firms and direct staff to establish a General On -Call Consultant list for professional services comprised of the top four (4) firms and authorize the Interim Public Works Director to enter into negotiations for Professional Services Agreements (PSAs); or Option 2: Accept the proposal from Kimley Horn and Associates and authorize the Interim Public Works Director to enter into negotiations for a PSA. This firm scored the overall highest rating but also has the highest proposed rates; or Option 3: Accept the proposal from the firm with the lowest overall rates, Civil Source, Inc., and authorize the Interim Public Works Director to enter into negotiations for a PSA. This firm was rated third overall; or Option 4: Accept the proposal from the current services provider, Regular Meeting of 1/17/18 Page 8 of 11 Infrastructure Engineers and authorize the Interim Public Works Director to enter into negotiations for a PSA. This firm scored second in both the overall ratings and proposed rates. Sam Gutierrez, Interim Director of Public Works provided a brief summary regarding this contract and spoke about the process followed for the selection of the top 4 highest ranking companies. There was an extensive discussion relative to whether or not staff had presented a contract and the action sought by staff. A motion was made by Baca, seconded by Rubio, and failed (2 — 3) to approve option No. 1. AYES: Baca, Rubio NOES: Garcia, Lozano, Pacheco ABSENT: None. ABSTAIN: None. City Attorney Tafoya commented that in the contracts, there was no stipulation regarding the length of time for these contracts. A substitute motion was made by (Pacheco, seconded by Lozano, and carried (3 — 2) to approve adding a 5 year time limit to the contract. AYES: Garcia, Lozano, Pacheco NOES: Baca, Rubio ABSENT: None. ABSTAIN: None. A motion was made by Eacheco, seconded by Garcia, and carried (3 — 2) to approve option No. 4; provide direction to staff to come back with a contract with a 5 year term as well as the percentages. AYES: Garcia, Lozano, Pacheco NOES: Baca, Rubio ABSENT: None. ABSTAIN: None. 12.APPROVAL TO IMPLEMENT THE COMMUTER CONNECTOR EXPRESS TRANSIT SERVICE INCLUDING ROUTE, SCHEDULES AND STOPS BETWEEN THE BALDWIN PARK METROLINK TRANSIT STATION AND KAISER PERMANENTE HOSPITAL AND MEDICAL CENTER Staff recommends that Council authorize the approval of the Commuter Connector Express Route Analysis and Community Outreach report and authorize the Interim Director of Public Works to negotiate transit service amendments for the operation of the Commuter Connector Express service for a two-year period. Sam Gutierrez, Interim Director of Public Works presented the staff report speaking of the routes, schedules and stops between Baldwin Park Metrolink Station and Kaiser Permanente Hospital and Medical Center. Regular Meeting of 1/17/18 Page 9 of 11 A motion was made by Baca, seconded by Pacheco, and carried (5 — 0) to approve item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 13. DESIGNATION OF PRIMARY AND ALTERNATE REPRESENTATIVE FOR THE SAN GABRIEL VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Staff recommends that Council appoint a delegate and alternate, and adopt Resolution No. 2018-222, entitled "A Resolution of the City Council of the City of Baldwin Park, California, Appointing Representatives and Alternates to the San Gabriel Valley Mosquito and Vector Control District Board of Trustees as Official Representatives of the City." Council Member Rubio requested that a status report be provided relative to the events at the San Gabriel Valley Mosquito and Vector Control District. A motion was made by Pacheco, seconded by Garcia, and carried (5 — 0) to nominate Council Member Baca as primary representative and Mayor Pro Tem Pacheco as alternate representative to the San Gabriel Valley Mosquito and Vector Control District. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 14. REVIEW OF APPLICATIONS AND CONSIDERATION OF APPOINTMENT FOR THE VACANT SEATS ON THE HOUSING COMMISSION OF THE CITY OF BALDWIN PARK Staff recommends that Council review the submitted Commission application(s), accept nominations, authorize staff to initiate the appropriate background checks through the Department of Justice (DOJ) and, contingent upon satisfactory clearance by the DOJ, appoint individuals to the respective City Commissions and adopt Resolution No. 2017-166, entitled, "A Resolution Of The City Council Of The City Of Baldwin Park Appointing Qualified Individuals To The Housing Commission Of The City Of Baldwin Park For Office Seat Numbers 1, 2, 3, 4, 5, 6 And 7." A motion was made by Pacheco, seconded by Rubio, and carried (5 — 0) to table the item to a future meeting. Regular Meeting of 1/17/18 Page 10 of 11 AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATIONS Request by Council Member Rubio for discussion and consideration: • Council Member Rubio would like a presentation regarding San Gabriel Valley Vector Control District activities. ADJOURNMENT There being no other business to discuss, and all other matters having been addressed, a motion was made by Pacheco, seconded by Rubio, to adjourn the meeting at 8:52 p.m. Mayor ATTEST: Manuel Lozano, Mayor Alejandra Avila, City Clerk APPROVED: Regular Meeting of 1/17/18 Page 11 of 11 MINUTES BALDWIN PARK CITY COUNCIL STUDY SESSION AND SPECIAL MEETING FEBRUARY 7, 2018, 5:40 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order at 5:42 p.m. by Mayor Lozano. ROLL CALL PRESENT: Council Member Cruz Baca Council Member Monica Garcia Council Member Ricardo Pacheco Mayor Pro Tem Susan Rubio Mayor Manuel Lozano PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 5:45 p.m. Seeing no one wishing to speak, Public Communications closed at 5:45 p.m. 1. DOG PARK Presentation by Recreation & Community Services Director Manual Carrillo. Yuriko Ruizesperza, Recreation Program Supervisor and Vanessa Carbajal, Recreation Program Coordinator made the presentation and responded to Council's questions. The City Council directed staff to move forward and explore options for Barnes Park. RECESS TO CLOSED SESSION 2. CONFERENCE WITH LABOR NEGOTIATORS (GC §54957.6) Pursuant to Government Code Section 54957.6: NUJn r c psi nate r reggjjja r s: Shannon Yauchzee, Chief Executive Officer, and Sean Gibbons, Coleman Frost LLP Em loyee Omani ation : Police Officer Association; Police Management Employees Association. 3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Potential Case(s): Two (2) Special Meeting of 2/7/18 Page 1 of 4 4. REAL PROPERTY NEGOTIATIONS Pursuant to Government Code §54956.8: A. Property: 1453 Virginia Avenue (CAN 17-03) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Todd Seidner, Virginia Avenue Holdings, LLC Under Negotiation: Price and terms of payment B. Property: 15480 Arrow Highway (CAN 17-04) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Lynn Metrow and Todd Hill, Bud King's Weed Club Under Negotiation: Price and terms of payment C.. Property: 4507 Littlejohn Street (CAN 17-05) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Tina Honglin Guan, Lucky Medical Cannabis Development, Inc. Under Negotiation: Price and terms of payment D. Property: 1453 Virginia Avenue, Suite "O" (CAN 17-11) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Chris Coogan, Therapy Crafted Brands, LLC Under Negotiation: Price and terms of payment E. Property: 5010 Calmview Avenue (CAN 17-14) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Erika Villarruel and Art Castillo, Baldwin Park Caregivers Under Negotiation: Price and terms of payment F. Property: 5129 Bleecker Street (CAN 17-16) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Michael Daniel Healy and Chad Everett LaChance, High Point Distribution, Inc. Under Negotiation: Price and terms of payment G. Property: 14808 Arrow Highway (CAN 17-19) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Behnam Rodd, Jasper Rodd, and Luis Franco, Emerald Connection, LLC Under Negotiation: Price and terms of payment Special Meeting of 2/7/18 Page 2 of 4 H. Property: 13409 Garvey Ave. (CAN 17-20) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Valentina Ambarchyan, Edvin Sanatgar, and Robert Harutyunyan, Checkpoint Distribution, Inc. Under Negotiation: Price and terms of payment I. Property: 428 Cloverleaf Drive (CAN 17-21) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Yazeji, SCS Processing, Inc. Under Negotiation: Price and terms of payment J. Property: 15115 Ramona Blvd. AND 15004 Ramona Blvd. (CAN 17-22) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rogelio Magana, Rancho Adelanto Development . Enterprises Under Negotiation: Price and terms of payment K. Property: 14712 Arrow Highway (CAN 17-23) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Chan, Manuel Suarez, and Gershom Luh, The Grown Folks, Inc. Under Negotiation: Price and terms of payment L. Property: 13450 Brooks Drive, Units A and C (CAN 17-24) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Samuel and AvShalom Cohen, NRD, LLC Under Negotiation: Price and terms of payment M. Property: 13460 Brooks Drive (CAN 17-25) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Ruben Kachian, Vertical Bliss, Inc. (Kushy Punch) Under Negotiation: Price and terms of payment N. Property: 4802 Littlejohn Street (CAN 17-26) Agency Negotiators:: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rodolfo Aguilar, SGV Caregivers, Inc. Under Negotiation: Price and terms of payment O. Property: 4276 Elton Street (CAN 17-29) (APNs: 8437-016-005, 8437-016-015, and 8437-016-016) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Special Meeting of 2/7/18 Page 3 of 4 Negotiating Parties: Yichang Bai, W&F International Corporation Under Negotiation: Price and terms of payment P. Property: 14726 Arrow Highway (CAN 17-30) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Willoughby, Tier One Consulting Under Negotiation: Price and terms of payment Q. Property: 5151 Azusa Canyon Rd. (CAN 17-32) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: David Morgan, Jorge Garcia, Paul Granada, Fausto Alex Chavez, Electric Atom Distribution Under Negotiation: Price and terms of payment RECONVENE IN OPEN SESSION time 7:00 .rn. REPORT FROM CLOSED SESSION at the end of re u.ular rttieetlru ADJOURNMENT There being no further business, motion was made by Lozano, seconded by Rubio, to adjourn the meeting at 7:08 p.m. REPORT ON CLOSED SESSION" The report out of closed session took place at the conclusion of the regular meeting with City Attorney Olivas reporting that the City Council in Closed Session by a 4-0 vote had selected the firm of Jonas & Driscoll to serve as the City's Special Counsel. Mayor ATTEST: City Clerk APPROVED: Special Meeting of 2/7/18 Page 4 of 4 MINUTES BALDWIN PARK CITY COUNCIL STUDY SESSION AND SPECIAL MEETING FEBRUARY 21, 2018, 5:30 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order at 5:32 p.m. by Mayor Lozano. ROLL CALL PRESENT: Council Member Cruz Baca Council Member Monica Garcia Council Member Ricardo Pacheco Mayor Pro Tem Susan Rubio (arrived 5:38 p.m.) Mayor Manuel Lozano PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 5:40 p.m. Seeing no one wishing to speak, Public Communications closed at 5:40 p.m. OPEN 'SESSION 1. ACCOOUNTING POLICIES AND PROCEDURES Presentation by Rose Tam, Finance Director Finance Director Tam explained in detail policies 1 through 5, which included the following policies: purchasing, credit card, travel, federal awards, ACH and wire transfers. There were several questions regarding how grants were accounted for in the General Fund and whether or not there was a special account set up for these; as well as questions relative to the credit card purchasing process; when receipts were due, which was usually 30 days and the process for reimbursements as well as related late fees. Finance Director Tam explained that a special account was set up to account for these funds, which was 270. She further commented that these policies were brought to the Council as a result of the auditor's recommendations and that they were also on the regular agenda for approval and answered other related questions. The City Council recessed to closed session at 5:55 p.m. Special Meeting of 2/21/18 Page 1 of 5 RECESS TO CLOSED SESSION 2. PUBLIC EMPLOYEE APPOINTMENT Pursuant to Government Code (§54957) Director of Public Works 3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code (§54957) Director of Recreation & Community Services 4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code (§54957) Chief Executive Officer/City Manager 5. CONFERENCE WITH LEGAL COUNSEL— EXISTING LITIGATION Pursuant to paragraph (1) of subdivision (d) of Government Code (§54956.9): Case Name: City of Baldwin Park v. City of Irwindale Case No. BS163400 6. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Potential Case(s): Two (2) 7. REAL PROPERTY NEGOTIATIONS Pursuant to Government Code §54956.8: A. Property: 1453 Virginia Avenue (CAN 17-03) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Todd Seidner, Virginia Avenue Holdings, LLC Under Negotiation: Price and terms of payment B. Property: 15480 Arrow Highway (CAN 17-04) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Lynn Metrow and Todd Hill, Bud King's Weed Club Under Negotiation: Price and terms of payment C. Property: 4507 Littlejohn Street (CAN 17-05) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Tina Honglin Guan, Lucky Medical Cannabis Development, Inc. Special Meeting of 2/21/18 Page 2 of 5 Under Negotiation: Price and terms of payment D. Property: 1453 Virginia Avenue, Suite "O" (CAN 17-11) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Chris Coogan, Therapy Crafted Brands, LLC Under Negotiation: Price and terms of payment E. Property: 5010 Calmview Avenue (CAN 17-14) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Erika Villarruel and Art Castillo, Baldwin Park Caregivers Under Negotiation: Price and terms of payment F. Property: 5129 Bleecker Street (CAN 17-16) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Michael Daniel Healy and Chad Everett LaChance, High Point Distribution, Inc. Under Negotiation: Price and terms of payment G. Property: 14808 Arrow Highway (CAN 17-19) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Behnam Rodd, Jasper Rodd, and Luis Franco, Emerald Connection, LLC Under Negotiation: Price and terms of payment H. Property: 13409 Garvey Ave. (CAN 17-20) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Valentina Ambarchyan, Edvin Sanatgar, and Robert Harutyunyan, Checkpoint Distribution, Inc. Under Negotiation: Price and terms of payment I. Property: 428 Cloverleaf Drive (CAN 17-21) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Yazeji, SCS Processing, Inc. Under Negotiation: Price and terms of payment J. Property: 15115 Ramona Blvd. AND 15004 Ramona Blvd. (CAN 17- 22) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rogelio Magana, Rancho Adelanto Development Enterprises Under Negotiation: Price and terms of payment Special Meeting of 2/21/18 Page 3 of 5 K. Property: 14712 Arrow Highway (CAN 17-23) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Steve Chan, Manuel Suarez, and Gershom Luh, The Grown Folks, Inc. Under Negotiation: Price and terms of payment L. Property: 13450 Brooks Drive, Units A and C (CAN 17-24) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Samuel and AvShalom Cohen, NRD, LLC Under Negotiation: Price and terms of payment M. Property: 13460 Brooks Drive (CAN 17-25) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Ruben Kachian, Vertical Bliss, Inc. (Kushy Punch) Under Negotiation: Price and terms of payment N. Property: 4802 Littlejohn Street (CAN 17-26) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Rodolfo Aguilar, SGV Caregivers, Inc. Under Negotiation: Price and terms of payment O. Property: 4276 Elton Street (CAN 17-29) (APNs: 8437-016-005, 8437-016-015, and 8437-016-016) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Yichang Bai, W&F International Corporation Under Negotiation: Price and terms of payment P. Property: 14726 Arrow Highway (CAN 17-30) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: Anthony Willoughby, Tier One Consulting Under Negotiation: Price and terms of payment Q. Property: 5151 Azusa Canyon Rd. (CAN 17-32) Agency Negotiators: Shannon Yauchzee, Chief Executive Officer, and Robert Tafoya, City Attorney Negotiating Parties: David Morgan, Jorge Garcia, Paul Granada, Fausto Alex Chavez, Electric Atom Distribution Under Negotiation: Price and terms of payment Special Meeting of 2/21/18 Page 4 of 5 ADJOURNMENT There being no further business, motion was made by Lozano, seconded by Pacheco, to adjourn the meeting at 7:00 p.m. REPORT ON CLOSED SESSION* There was no report out of closed session. Mayor ATTEST: City Clerk Special Meeting of 2/21/18 Page 5 of 5 MINUTES BALDWIN PARK CITY COUNCIL REGULAR MEETING FEBRUARY 21, 2018, 7:00 P.M. COUNCIL CHAMBER -14403 E. Pacific Avenue, Baldwin Park, 91706 These minutes are presented in Agenda order. Various announcements or discussions may have occurred before or after the title under which they are presented. CALL TO ORDER The meeting was called to order by Mayor Lozano at 7:00 p.m.. INVOCATION The invocation was provided by Pastor Jackson. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Lozano. ROLL CALL MEMBERS PRESENT: Council Member Cruz Baca Council Member Monica Garcia Council Member Ricardo Pacheco Mayor Pro Tem Susan Rubio Mayor Manuel Lozano REPORT ON CLOSED SESSION Mayor Pro Tem Pacheco reported out of Closed Session that no action was taken on items discussed. ANNOUNCEMENTS Mayor Lozano commented that he wanted to close in memory of the late Rev. Bill Graham and a 101 year old Baldwin Park resident Lillian Moore who recently passed away. He expressed condolences to Margarita Vargas and the woman's club on the passing of Ms. Moore. Council Member Baca too expressed her condolences on the passing of Lillian Moore and asked that the meeting be closed in her memory. Ms. Baca also asked that the meeting be closed in memory of Gabriel Pales long time business owner in Baldwin Park who recently passed away. Council Member Rubio spoke on the passing of Ms. Moore and expressed how truly missed she will be in the community. A motion was made by Lozano, seconded by Pacheco, and carried (5 — 0) to excuse City Treasurer Contreras from the meeting. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. Mayor Lozano opened the City Council, Finance Authority and Housing Authority meeting to order concurrently at 7:08 p.m., and recited the announcement in accordance with Government Code Section 54952.3. Mayor Lozano and members of the City Council welcomed City of Claremont Council Member Joe Lyons who sits on the ad-hoc Homeless Committee. PROCLAMATIONS COMMENDATIONS & PRESENTATIONS • Presentation by Jose Martinez, General Manager, Valley County Water District Jose Martinez, General Manager from the Valley County Water District made the presentation providing a brief summary regarding the current dry conditions, reservoir conditions, water supply update, water rate adjustments, rising costs of water supply. Mr. Martinez provided conservation tips and directed residents to reference the Water District's website for further information. There were several questions from Council regarding water conservation, water charges and drop off locations for payments. The City Council collectively inquired as to whether or not the information of the presentation could be placed in the City NOW Newsletter; to set up a community meeting to educate the community; and place the information on the City's website. Presentation by Joe Lyons, Chairman of the Homeless Ad -Hoc Committee relative to Measure H — The Los Angeles County Homeless Initiative. Joe Lyons, Council Member from the City of Claremont made the presentation relative to Measure H. Mr. Lyon expressed that the issue of homelessness was being addressed as a regional issue at the COG. He spoke of strategies for the distribution of Measure H funding. Mayor Pro Tem Pacheco made a brief presentation regarding the rules of decorum. PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 7:46 p.m. and noted that each speaker is permitted a total of three (3) minutes to speak. Terri Muse from the Baldwin Park Business Association and Waste Management provided a brief status report on the State of the City Event scheduled for March 29. Regular Meeting of 2/21/18 Page 2 of 16 Gabriel Ramirez resident of EI Monte made comments relative to ICE operations in EI Monte and in the local cities and in California. He stated that he was worried about the recent Bill passed in Sacramento regarding sanctuary cities because this attracts and invites ICE to come into the cities. He asked if the City could hold an event to educate people about their rights as it relates to ICE and immigration issues. Mike Feinstein spoke about the issue of changing how to elect members of the State legislature. Mr. Luna stated that the Council had become dictators and read portions of the U.S. Constitution. Thomas I erd spoke regarding free speech and stated that the 3 minute rules should apply to the City Council as well. Made comments relative to guns, school shootings and homelessness. Duscol Mitch spoke about the cannabis selection process and stated that he felt it was unfair. Steve Dugan from Jan's calling spoke about the towing contract and suggested that the City should consider splitting the contract. Ken Woods spoke about the Baldwin Park power company and the rules of decorum. John Rios made comments relative to the rules of decorum and the dynamics of relations and communications amongst council members. Made brief comments about the cannabis distances in relation to schools. Greg Tuttle spoke about his past and recent interactions with members of the City Council; the towing contract and cannabis. Mar ari a_Var_qas made comments relative to the issue of water and the water article in the NOW; spoke about the event to be held on March 15, which was to raise money for scholarships. Also mentioned that she had had an issue with graffiti at the Women's Club building. Seeing no others wishing to speak, Public Communications closed at 8:16 p.m.. Mayor Lozano clarified the issue of cannabis that the earlier speaker mentioned stating that his information was not factual. Mayor Pro Tem Pacheco highlighted some of the city's accomplishments. Council Member Baca made comments relative to the memorial walkway. Council Member Rubio announced the upcoming first women's conference scheduled for March 3, which coincides with International Women's Day. Regular Meeting of 2/21/18 Page 3 of 16 CONSENT CALENDAR Council pulled Item Nos. 5, 6, 7, 14 and 15 from Consent Calendar for further discussion. 1. WARRANTS AND DEMANDS Staff recommends City Council ratify the attached Warrants and Demands Register. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to ratify the Warrants and Demands Register. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 2, TREASURER'S REPORT — DECEMBER 2017 Staff recommends that Council receive and file the Treasurer's Report. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to receive and file the Treasurer's Report. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 3. REJECTION OF CLAIMS Staff recommends that Council reject the following claim(s) and direct staff to send appropriate notice of rejection to claimant(s): Edgar, Natalie Claimant alleges the Police Department illegally towed and impounded her vehicle. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to reject the claims and direct staff to send appropriate notice of rejection to claimants. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 4. APPROVAL OF MEETING MINUTES Receive and file: A. Meeting Minutes of the Regular City Council Meeting Held on February 7, 2018. Regular Meeting of 2/21/18 Page 4 of 16 A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to receive and file the minutes. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 5. ADOPT RESOLUTION TO AMEND A POST EMPLOYMENT HEALTH PLAN FOR PUBLIC EMPLOYEES (PEHP) FOR THE CITY OF BALDWIN PARK Staff recommends that the City Council approve Resolution No. 2018-224 amending the contribution amounts of a Post -Employment Health Plan with the Plan Sponsor, Nationwide Retirement Solutions, Inc., entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE AMENDMENT OF A POST -EMPLOYMENT HEALTH PLAN (PEHP)." Council Member Baca inquired as to whether or not this had any financial impact on the City; PERS or the retirement benefits. City Manager Yauchzee commented that this action did not have any impact nor was there any cost to the City or PERS. A motion was made by Baca, seconded by Pachecoand carried (5 — 0) to adopt Resolution to amend a post -employment health plan for public employees for the City of Baldwin Park. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 6. ACCOUNTING POLICIES AND PROCEDURES. Staff recommends that Council: 1. Purchasing Policies and Procedures 2. Credit Card Policies and Procedures 3. Travel Policies and Procedures 4. Federal Award Administration Policies and Procedures 5. ACH and Wire Transfer Policy and Procedures A motion was made by Pacheco, seconded by Lozano, and carried (5 — 0) to table the item to the meeting of March 7, 2018. AYES: NOES: ABSENT: ABSTAIN Baca, Garcia, Lozano, Pacheco, Rubio None. None. None. Regular Meeting of 2/21/18 Page 5 of 16 7. DIAL — A — RIDE SERVICES UPDATE AND DISCUSSION. Staff recommends that City Council direct staff to continue the development of a Transit and Dial -A -Ride program guide. There was a substantial discussion relative to the dial -a -ride service with members of the City Council expressing concerns about the service levels, number of complaints, and the terms of the contract. Staff stated that the contract was up for renewal in July. The collective consensus from the City Council was to provide a 90 -day notice of termination to the current company thus allowing enough time for staff to develop a RFP to secure another provider. Further, a desire was expressed to have any companies come and meet with the City Council during a study session to make presentations during separate meetings. A motion was made by Lozano, seconded by Garcia, and carried (5 — 0) to direct staff to provide the current service provider a 90 day termination notice and begin the RFP process. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 8. APPROVE RESOLUTION No. 2018-227, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ENTERING INTO AN AGREEMENT WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMTA) FOR FIRST/LAST MILE CONNECTIONS FOR THE BALDWIN PARK TRANSIT CENTER — CALL FOR PROJECTS ID# F9620 AND AMENDING THE CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TO INCORPORATE THE PROJECT." Staff recommends that the City Council: Approve Resolution No. 2018-227, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ENTERING INTO AN AGREEMENT WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMTA) FOR FIRST/LAST MILE CONNECTIONS FOR THE BALDWIN PARK TRANSIT CENTER- CALL FOR PROJECTS ID# f9620 AND AMENDING THE CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TO INCORPORATE THE PROJECT."; and 1. Approve Resolution No. 2018-227, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ENTERING INTO AN AGREEMENT WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMTA) FOR FIRST/LAST MILE CONNECTIONS FOR THE BALDWIN PARK TRANSIT CENTER- CALL FOR PROJECTS ID# f9620 AND AMENDING THE CITY'S Regular Meeting of 2/21/18 Page 6 of 16 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TO INCORPORATE THE PROJECT."; and 2. Authorize the Mayor to sign Funding Agreement No. 92000000F9620 with LACMTA for the First/Last Mile Connections to the Baldwin Park Transit Center Project; and 3. Authorize the Director of Finance to appropriate $656,256 in LACMTA funds plus $165,193 for the local match from Fund 270 (Grants Fund). Council Member Rubio stated that people out there had concerns and she wanted to clarify what this was about to ensure people understood. She explained what the grant will do, which was to provide safe pedestrian crossings on Ramona and safe crossings on Pacific Avenue as well as pedestrian pathways from the Transit Center and the Metro Lanes. A motion was made by Rubio, seconded by Lozano, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 9. APPROVE RESOLUTION No. 2018-228, "A RESOLUTION OF THE CITY OF BALDWIN PARK, CALIFORNIA, ACCEPTING STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION GRANT FUNDS FROM THE SYSTEMATIC SAFETY ANALYSIS REPORT (SSARP) TO CONDUCT A CITYWIDE TRAFFIC SAFETY STUDY AND AMENDING THE CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TO INCORPORATE THE STUDY." Staff recommends that the City Council: 1. Approve Resolution No. 2018-228, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ACCEPTING STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION GRANT FUNDS FROM THE SYSTEMATIC SAFETY ANALYSIS REPORT (SSARP) TO CONDUCT A CITYWIDE TRAFFIC SAFETY STUDY AND AMENDING THE CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TO INCORPORATE THE STUDY." AND 2. Authorize the City Manager or designee to accept any awarded grant funds from the SSARP and to execute all necessary implementation agreements with the State of California Department of Transportation; and 3. Authorize the Director of Finance to appropriate $121,000 from Fund 270 (Grant Fund) and $13,500 from Fund 242 (Traffic Congestion Relief). A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. Regular Meeting of 2/21/18 Page 7 of 16 AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 10. APPROVAL OF AMENDED RESOLUTION IN FAVOR OF SOUND WALL AND LANDSCAPE REDESIGN. Staff recommends that the City Council approve amended Resolution No. 2018- 229, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, IN SUPPORT OF SOUND WALL AND LANDSCAPE REDESIGN." A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 11. AUTHORIZATION TO PROCEED WITH ADVERTISEMENT OF A REQUEST FOR PROPOSAL (RFP) FOR PRINTING OF THE BALDWIN PARK NOW. Staff recommends the City Council to: 1. Authorize the Director of Recreation and Community Services to proceed with advertisement of a Request for Proposals (RFP) for the printing of the BP NOW. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 12. APPROVAL TO ENTER INTO A CONTRACT AGREEMENT BETWEEN THE CITY OF BALDWIN PARK AND THE COUNTY OF LOS ANGELES FOR THE HOMELESS SERVICES — CITY PLANNING GRANT (HOME FOR GOOD). Staff recommends the City Council to: 1. Review and approve the Contract Agreement between the City of Baldwin Park and the County of Los Angeles for the Homeless Services -City Planning Grant (Home for Good); and 2. Authorize the Director of Recreation and Community Services, who is serving as Project Lead to execute any further documents. Regular Meeting of 2/21/18 Page 8 of 16 A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 13. REVIEW AND APPROVE THE OPEN STREET GRANT PROGRAM CYCLE TWO WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (MTA). Staff recommends the City Council: 1. Accept the Open Streets Grant Program Cycle Two with the Los Angeles County Metropolitan Transportation Authority in the amount of $206,821 and authorize the Chief Executive Officer to execute the Agreement; and 2. Direct staff to negotiate and present to the City Council a Memorandum of Understanding (MOU) with grant partners at a subsequent meeting. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 14. CITY OF BALDWIN PARK SB 1693 BUSINESS IMPROVEMENT TAX (BIT) FUND ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2017. Staff recommends that the City Council receive and file the SB1693 Business Improvement Tax (BIT) Fund Annual Financial Report for the Fiscal Year ended June 30, 2017. Council Member Baca stated that she had wanted or requested to see a business owner included. She nominated Jerry Briseno, the owner of La Cocinita to be part of this Committee. Council Member Garcia commented that she was in favor of transparency and open this up for recruitment and accept applications. A motion was made by Baca, seconded by Rubio, and failed (2 — 3) to accept the nomination of Mr. Jerry Briseno to the BIT Committee." AYES: NOES: ABSENT: ABSTAIN: Baca, Rubio Garcia, Lozano, Pacheco None. None. Regular Meeting of 2/21/18 Page 9 of 16 A motion was made by Eacheco, seconded by Lozano, and carried (5 — 0) to receive and file the BIT Fund Annual Financial Report for Fiscal Year ended June 30, 2018. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 15. AMENDMENT OF OFFICIAL POLICE TOW TRUCK SERVICES ORDINANCE. Staff recommends that the City Council waive the first reading and adopt Ordinance No. 1407 by title only, entitled, `AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 100 OF TITLE X FOR OFFICIAL POLICE TOW TRUCK SERVICES." Council Member Baca read item No. 15 to the amendment to the Police Tow Truck Ordinance and pointed out that upon approving this agreement Royal Coaches will get the agreement exclusively from 4 to 10 years; that there will not be a fair process to be put out for a RFP; she stated that she was in favor of going out for a RFP. Further Ms. Baca expressed that many members of the community were not in agreement with this process of being approved the way it was presented. She commented on the findings of the Grand Jury relative to the tow truck operation. Mayor Lozano clarified the information relative to the grand jury stating that, that was a Civil Grand Jury and that the towing company was not found guilty. City Attorney Tafoya commented that the new agreement stated that "all official police tow service franchises granted pursuant to this chapter may be exclusive or non-exclusive and shall be a term of 4 to 10 years as specified by the City Council in any franchise agreement between the City and official tow service." Further, he commented that the old ordinance mandated that it be none - exclusive and the new ordinance said that it can be exclusive or non-exclusive but that it did not have to be exclusive; that the ordinance was revised pursuant to the suggestions made by the Grand Jury. Council Member Rubio expressed that she was concerned with the Council breaking protocol and extending contracts that were traditionally a certain number of years; that it was not always best for the residents due to City's lack of ability to renegotiate and lack of community input. A motion was made by Baca, seconded by Rubio, and failed (2 — 3) to move this item to the April meeting and have community input. Regular Meeting of 2/21/18 Page 10 of 16 AYES: Baca, Rubio NOES: Garcia, Lozano, Pacheco ABSENT: None. ABSTAIN: None. A motion was made by Lozano, seconded by Pacheco, and carried (3 — 2) to adopt amendment of official police tow truck services ordinance. AYES: Garcia, Lozano, Pacheco NOES: Baca, Rubio ABSENT: None. ABSTAIN: None. Council Member Baca stated that for the record Council Member Garcia, Mayor Pro Tem Pacheco and Mayor Lozano voted to go ahead and change the ordinance thus in the future this will be reflected in the record; that Council Member Baca and Council Member Rubio objected to the approval of this matter. Mayor Lozano made brief remarks regarding Royal Coaches and their contributions to the community. 16. AWARD OF BID FOR CITY PROJECT NO. 2018-0220 RESIDENTIAL STREET REHABILITATION PROJECT. Staff recommends that the City Council: 1. Approve and award the contract to Gentry Brothers, Inc. in the amount of $653,070.00; and 2. Authorize the Mayor and City Clerk to execute the contract for the Residential Street Rehabilitation work. A motion was made by Lozano, seconded by Rubio, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. PUBLIC HEARINGS 17. A REQUEST FOR CONSIDERATION OF A MUNICIPAL (ZONING) CODE AMENDMENT BY URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING THE MUNICIPAL CODE CHAPTER 127 — CANNABIS Staff recommends that the City Council conduct a Public Hearing and, thereafter, waive the reading and adopt by title only Urgency Ordinance entitled, "AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING THE MUNICIPAL CODE Regular Meeting of 2/21/18 Page 11 of 16 CHAPTER 127- COMMERICAL CANNABIS" Mayor Lozano opened the public hearing at 9:15 p.m. and entertained public comment. Thomas Kerri commented that the City Council should not rush into making a decision on this item. Grog Tuttle spoke about his continued opposition to this issue; spoke about the process and the selection of size and properties that were inadequate. Manuel Penate spoke against this ordinance and against how the process was carried out. John Rios spoke against the approval of the ordinance. Seeing no other speakers, Mayor Lozano closed the public hearing at 9:26 p.m. There was a substantial discussion relative to the ordinance with Mayor Lozano clarifying the intent of what the Ordinance was trying to accomplish. In addition, some Council Members expressed concern as to why this was an urgency and whether or not this could be brought back through the regular process of ordinance adoption of the ordinance being subject to a first and second reading. A motion was made by Rubio, seconded by Baca, and failed (2 — 3) to move to the next regular meeting. AYES: Baca, Rubio NOES: Garcia, Lozano, Pacheco ABSENT: None. ABSTAIN: None. A motion was made by Pacheco, seconded by Lozano, and carried (3 — 2) to adopt the ordinance as presented. AYES: Garcia, Lozano, Pacheco NOES: Baca, Rubio ABSENT: None. ABSTAIN: None. While the motion to adopt the ordinance carried, it did not meet the 4/5 vote requirement therefore, item needs to be brought back to the City Council and be presented through the regular process of first and second readings. Direction was provided to staff to bring back at the first meeting in March and to go through the regular process. Regular Meeting of 2/21/18 Page 12 of 16 18. A REQUEST FOR CONSIDERATION OF A PROPOSED AMENDMENT TO THE CITY'S MUNICIPAL CODE (SIGN REGULATIONS) ADDING DEVELOPMENT STANDARDS FOR ELECTRONIC READER BOARD SIGNS (LOCATION: COMMERCIAL, INDUSTRIAL, AND MIXED USE ZONED PROPERTIES; APPLICANT CITY OF BALDWIN PARK; CASE NO. AZC-188). Staff and the Planning Commission recommend that the City Council open the Public Hearing and following the public hearing: Introduce for first reading, by title only and waive further reading, Ordinance No. 1405, entitled, "AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, ADDING SECTION 153.170.090.C, AMENDING TABLE 153.170.080 AND AMENDING THE TITLE OF SUBSECTION 153.170.090 RELATING TO ELECTRONIC READERBOARD SIGNS." A motion was made by Lozano, seconded by Pacheco, and carried (5 — 0) to move this item to the next Council meeting. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 19. CONDUCT PUBLIC HEARING AND FOLLOWING PUBLIC HEARING, APPROVE THE GRANT FUNDS PROVIDED BY THE EDWARD J. BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT. It is recommended that the City Council: 1. Open the Public Hearing and accept public comment; and 2. Accept and approve the federal guidelines for the funds requested. These Federal guidelines require a public comment period. Mayor Lozano opened the public hearing at 9:35 p.m. and entertained public comment. Seeing no speakers, Mayor Lozano closed the public hearing at 9:35 p.m. A motion was made by Lozano, seconded by Garcia, and carried (5 — 0) to approve the item as presented. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. Regular Meeting of 2/21/18 Page 13 of 16 REPORTS OF OFFICERS 20. RENEWAL OF GRANT WRITING SERVICES CONTRACT WITH CALIFORNIA CONSULTING, LLC. Staff recommends that the City Council: 1. Approve the Consultant Services Agreement with California Consulting, LLC; and 2. Authorize the Director of Finance to appropriate funds to cover the cost related to the grants applied for including but not limited to General Fund, Prop A Fund, or Future Development Fund; or A motion was made by Baca, seconded by Lozano, and carried (5 — 0) to move this item to the first meeting in March. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. 21. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ORDERING THE DESIGNATION OF THE EXECUTIVE TEAM AND OTHERS AS THE BUSINESS IMPROVEMENT ADVISORY COMMITTEE TO MAKE RECOMMENDATIONS ON MATTERS RELATED TO THE CITYWIDE BUSINESS IMPROVEMENT AREA. Staff recommends that the City Council: 1. Consider naming two individuals to serve on the Business Improvement Advisory Committee; and 2. Approve Resolution No. 2018-226 designating the Executive Team and others as the Business Improvement Advisory Committee entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ORDERING THE DESIGNATION OF THE EXECUTIVE TEAM AND OTHERS AS THE BUSINESS IMPROVEMENT ADVISORY COMMITTEE TO MAKE RECOMMENDATIONS ON MATTERS RELATED TO THE CITYWIDE BUSINESS IMPROVEMENT AREA." A motion was made by Baca, seconded by Lozano, and carried (5 — 0) to table this item and to open it up for applications for business owners. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. Regular Meeting of 2/21/18 Page 14 of 16 22. REVIEW OF CURRENT APPLICATIONS AND CONSIDERATION OF APPOINTMENT OF MEMBERS FOR THE HOUSING COMMISSION OF THE CITY OF BALWDWIN PARK. Staff recommends that Council review the submitted Commission applications, accept nominations, authorize staff to initiate the appropriate background checks through the Department of Justice (DOJ) and, contingent upon satisfactory clearance by the DOJ, appoint individuals to the respective City Commissions and adopt Resolution No. 2017-166, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK APPOINTING QUALIFIED INDIVIDUALS TO THE HOUSING COMMISSION OF THE CITY OF BALDWIN PARK TO OFFICE NUMBERS 1, 2, 3, 4, 5 and 6." A motion was made by Lozano, seconded by Garcia, and carried (5 — 0) to table this item and to send this by out for recruitment. AYES: Baca, Garcia, Lozano, Pacheco, Rubio NOES: None. ABSENT: None. ABSTAIN: None. CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS COMMUNICATIONS Request by Council Member Susan Rubio ,for discussion and consideration: e Council Member Rubio was requesting discussion regarding the presence of ICE in Baldwin Park. Council Member Rubio stated that this was a serious issue for the community as people were severely impacted; that she knew personally of two people who had been detained; she requested that in the future the City Council has a special meeting to discuss this issue. Additional comments were made from Council relative to other related matters such as the impact on families; what to do with children who may come home from school to find out that their parents have been detained; that there should be an emergency plan for these families. She suggested for the City to explore the possibility to have a room open at Parks and Recreation where the City could can reach out to other organizations some of which may provide legal services and other advise and perhaps set up hours of operation perhaps once a week or certain days or certain hours so that the community knows that at any given time they can go and use that as an informational resource. Regular Meeting of 2/21/18 Page 15 of 16 ADJOURNMENT There being no other business to discuss, and all other matters having been addressed, a motion was made by Lozano, seconded by Baca, to adjourn the meeting at 9:52 p.m. Mayor ATTEST: Manuel Lozano, Mayor Alejandra Avila, City Clerk APPROVED: Regular Meeting of 2/21/18 Page 16 of 16 STAFF REPORT ITEM NO. f) TO: Honorable Mayor and Members of the City Council t � r E FROM: Manuel Carrillo Jr., Director of Recreation & Community Ss� r is sA, c, r�tE / DATE. March 7, 2018 o` ' SUBJECT: AUTHORIZATION TO ADVERTISE THE REQUEST FOR PROPOSAL FOR PROFESSIONAL PYROTECHNIC SERVICES RELATED TO THE 4`11 OF JULY FIREWORKS CELEBRATION SUMMARY The purpose of this report is to receive authorization from the City Council to advertise for Request for Proposals (RFP) for professional pyrotechnic services related to the 4th of July Fireworks Celebration. FISCAL IMPACT The funding source can be determined at a later date. The proposals shall not exceed $21,000 for Pyrotechnic Services, with an overall event cost of approximately $50,000 including; operational costs, contract services (band, games, and sound technician), and other department overtime pay. RECOMMENDATION Staff recommends the City Council to: 1) Authorize the advertisement of the Request for Proposal (RFP) for professional pyrotechnic service related to the 4th of July Fireworks Celebration. BACKGROUND The Department of Recreation and Community Services is seeking a professional pyrotechnic company to perform the 4th of July Spectacular Pyrotechnic Show. The companies' proposals will include an 18 -minute custom designed, synchronized and choreographed sky concert. The show will be electronically fired and include musical and narrative scores, a show director and will have a minimum of 2,000 -fired pieces. The proposals will include all the necessary permits, insurances and licensed pyrotechnic and sand free firing racks. In an attempt to increase the potential vendor pool, phone calls will be made to encourage vendors to participate, as well as letters will be mailed, emailed and faxed to professional pyrotechnic companies. Proposals will be due to the Department of Recreation & Community Services by March 29, 2018. Vendors must meet all the requirements set forth by the city, county, state and federal guidelines. The pyrotechnic show will be conducted at Sierra Vista High School Athletic Field. The 4th of July Spectacular event attracts over 6,000 spectators and is viewed as the official summer kick-off in the community. LEGAL REVIEW The City Attorney has reviewed the Request for Proposal (RFP) and approved it as to form. ALTERNATIVES 1) The City Council may elect not to host the event. ATTACHMENT 1) Request for Proposals (RFP) CITY OF BALDWIN PARK 4TH OF JULY SPECTACULAR 2018 REQUEST FOR PROPOSALS (RFP) The City of Baldwin Park (City) conducts an annual 4t" of July Fireworks show (Show) as part of its 4t" of July Spectacular. The Show is held at the Sierra Vista High School. The campus is used throughout the 4t" of July Celebration for various other activities and entertainment. The City wishes to enter into a one-year contract for a professional show with at least the following pyrotechnic displays: The show must be at least approximately 18 minutes in length without breaks with appropriate patriotic music accompaniment. The contractor will not be responsible for the sound system although must provide the audible portion of the show. FIREWORKS SPECIFICATIONS: Base Bid 1. Duration of display - 18 -minute minimum. 2. Show will have a minimum of 2,000 -fired pieces. 3. Fireworks Bid not to exceed $21,000. 4. Fireworks ignition — electronic. 5. $5,000,000 single limit liability insurance naming the City, Baldwin Park Unified School District, Sierra Vista High School, Los Angeles County Fire Department, and each of their officers, agents, employees and volunteers additional insured. 6. Maximum shell size: 3." 7. Sand free firing racks. 8. No ground set pieces. 9. Music and voice narration CD provided. 10. Fall out zone to comply with National Fire Protection Association Code 1123, Los Angeles County Fire Department and any other government agencies. DELIVERABLES: Base Bid 1. Vendor and fireworks must arrive no later than 9:00 am, July 4, 2018 at Sierra Vista High School, 3600 Frazier Street, Baldwin Park, CA 91706. Fireworks show to start at 9:00 pm sharp. 2. Vendor must provide all safety equipment for themselves and their crew. (Ear plugs, hard hats, eye protection, gloves, long sleeve protective clothing, etc.). 3. Vendor must provide all supplies needed for set-up and show which include but are not limited to: hammers, racks, fuses, fire extinguishers, and anything needed to provide a successful show. PERMITS: 1. Vendor MUST obtain any and all permits or licenses required by law. Cost must be included in bid. 2. Vendor must obtain a business license permit from the City of Baldwin Park. The business license permit can be purchased at: City of Baldwin Park City Hall — 2nd Floor 14403 E. Pacific Avenue Baldwin Park, CA 91706 Business Hours — Monday - Thursday 7:30 am to 6:00 pm Phone- (626) 960-4011 Extension, 214 3. Vendor MUST abide by all rules and regulations imposed by law including National Fire Protection Association Code 1123 and California Code of Regulations, Title 19, Chapter 6 and the California Health & Safety Code 12500-12726. Please note the vendor will be responsible for all permit fees required by Los Angeles County Fire Department and any other Government Agencies. The City is to be informed of any additional fees. MEETINGS: 1. PRIOR to being awarded the contact, a representative must meet with City for a site inspection. 2. Meet with the City a minimum of two times prior to the event. Pyrotechnic shooter must be present to review site with City representatives one of these times. INSURANCE: 1. Provide insurance from a company authorized to do business in the State of California. 2. Must agree to hold harmless, indemnify and defend the City of Baldwin Park, Baldwin Park Unified School District, Sierra Vista High School, Los Angeles County Fire Department, and each of their officers, agents, employees and volunteers and as additionally insured. 3. Vendor shall obtain at its sole cost and file with the City of Baldwin Park, City Clerk's Office, a policy or policies of insurance or a certificate of insurance and Vendor must obtain a business license permit from the City of Baldwin Park: a. Naming the City of Baldwin Park, Baldwin Park Unified School District, Sierra Vista High School, Los Angeles County Fire Department, its officers, agents, employees and volunteers and as additionally insured. b. Provide that said policy or policies shall contain a clear cancellation and/or reschedule provision, as to the City's options in case of inclement weather or severe wind. C. Each policy of insurance must be issued by an insurance company, which is authorized to do business in the State of California. d. Insurance with the following limits. (1) Workers Compensation: Before beginning work, vendor shall supply proof of full workers compensation insurance for all persons to be employed directly in carrying out the work as specified in accordance with the laws of the State of California. (2) Comprehensive General Liability: (Bodily Injury and Property Damage) which shall include limits of at least $5 million single limit. PAYMENT: 50% to be due June 15, 2018 and balance due on July 13, 2018. PROPOSALS: Proposals must be submitted as follows: 1. Description of the proposed show indicating size and type of devise planned. 2. Contractor qualifications including required licenses (and expiration date) and references of other local municipalities served (minimum of three). 3. Proposed staffing with descriptions of experience and qualifications with Name and Contact numbers. 4. Proof of insurance or insurability. 5. Assurances that the proposal will comply with each of the requirements. 6. Quote for year, if the City chooses to extend the contract for one year. 7. Assurances as to quality of show and customer satisfaction. Please submit (2) two copies of your proposals by Thursday, March 29, 2018 at 10:00 am to: City of Baldwin Park Department of Recreation & Community Services 4100 Baldwin Park Blvd. Baldwin Park, CA 91706 Attention: Manuel Carrillo Jr. Proposals will be opened in public at the above address on Thursday, March 29, 2019 at 11:00 am. Proposals will be evaluated first on compliance with the requirements established in this request for proposal, safety record, training, and price. The City of Baldwin Park reserves the right to reject any and all bids for any reason. Any questions regarding this request for proposals, please contact Manuel Carrillo Jr., Director of Recreation & Community Services, at (626) 813-5245, Ext. 314 or electronically at Mcarrillo„abaldwinnarkcom. ITEM NO. 4 STAFF REPORT TO: Honorable Mayor and City Councilmembers d l H oFROM: Robert N. Tafoya, City Attorney SAN cRbt DATE: March 7, 2018 0, SUBJECT: AMENDMENT OF OFFICIAL POLICE TOW TRUCK SERVICES iAtqu ORDINANCE (SECOND READING & ADOPTION) SUMMARY This report requests the City Council to amend Chapter 100 of the Baldwin Park Municipal Code for "Official Police Tow Truck Services" by making the Franchise exclusive, increasing the term of any Agreement for services to ten (10) years, and providing for a flat fee of 25% of gross revenues as the franchise fee. FISCAL IMPACT The fiscal impact of this Ordinance is approximately cost neutral with the possibility of a modest increase in the amount of Franchise Fees annually received by the City due to the setting of the Franchise Fee at 25% of gross revenues. RECOMMENDATION Staff recommends that the City Council waive further reading, and adopt Ordinance No. 1407 by title only, entitled," AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AMENDING CHAPTER 100 OF TITLE X FOR OFFICIAL POLICE TOW TRUCK SERVICES" BACKGRO IJ ND[DISCUSSION The City of Baldwin Park has currently awarded the Franchise for Official Police Tow Truck Services ("Tow Ordinance") to Royal Coaches, Inc., pursuant to Chapter 100 of the Baldwin Park Municipal Code ("BPMC"), The Franchisee has requested and the City is recommending several revisions to the Tow Ordinance as follows: Section Provision Chane 100.010 Intent and Purpose rpose Under the original version, distributing requests for towing services went to the most "qualified" firms. Under the proposed version, distributing re uests for towing services will go to the "best" firms or single firm. . _m..— § 100 030 Franchise Agreements g Under the original version, only tow truck "operators" c.,, g y p an enter into a written franchise agreement with the city. Under the proposed version, "companies" will be included in addition to "operators" and be defined in § 02 100.0. _ _..._ ....,.100.040 § .. ... ...�.._� ..,.,_ Franchise Fee ..... .. m... Under the original version, a tow service that is granted a franchise must pay the city a fee that is (from time to time) set by the City Council resolution. Under the proposed version, a tow service granted a franchise must pay the city a fee up to 25% of its gross revenue from Police Department assignments (including for storage of the vehicles), rather than __ �..-- .....,,by City Council resolution.._.. _.n March 7, 2018 Page 2 100,050 A § ( ) Franchise Fee g every p 'ty with its Under the original version, eve tow service must provide the city Reports—Annual income statement annually. Under the proposed version, every tow income statement service must provide the city with an income statement of the tows that the Police Department assigns the service including storage of vehicles. _ 100.050(B) Franchise Fee The change here is syntactical. Under the original version, a monthly report Reports—Monthly must include a basis for exempting tow services from the "calculation of the report monthly franchise fee payment." Under the proposed version, a monthly report must include a basis for exempting tow services from the "calculation of the franchise fee payment Tor such month." § 100.090(A) Selection of Under the original version, the Chief of Police shall request that the Franchisees Department of Finance to send out a notice of request for qualifications for a tow truck operator. Under the proposed version, an exception to the notice requirement is added where an existing Official Police Tow Service's performance is exemplary, warranting mandatory renewal by the City Council. 100090 ** . § (E) u _ Selection of g of have subsection (E) § 100.090. The proposed The original version does n Franchisees version adds subsection (E) stating, "To be eligible for a franchise ... a tow truck operator or company shall have a minimum of five years of verifiable experience performing law enforcement towing and storage and shall have paid all applicable city fees and business licenses during said period where said business was maintained in the city prior to the issuance of a franchise." 100.100 A § ( ) Franchise Term and Under the original version, tow service franchises must be non-exclusive g Conditions and authorized for no more than 4 years. Under the proposed version, tow service franchises may be either exclusive or non-exclusive and authorized for a term of 4 to 10 years. � 1001 l0 A , § ( ) Uniform Tow Rates Under the original versionthe average tow fee must g g be adjusted annually , unless CHP approves adjustments more frequently. Under the proposed version, the average tow fee must be adjusted annually by the Chief of Police unless CHP approves adjustments more frequently. NB: the original version did not designate the authority responsible for adjusting the average tow fee annually. § 100.210(N)(1) Rules of Operation— _ _ Under the original version, the vehicle storage facility must ...b e... be located Vehicle Storage within the corporate city limits of the city, or within five miles of the city Facilities boundaries. Under the proposed version, the vehicle storage facility must be located within only the corporatecity limit o t e city In summary, the above revisions would replace the City's non-exclusive Franchise into one that is exclusive to one Franchisee. The Franchise term will be extended from four years to ten years without the necessity to go out for a RFP for renewal if the City Council determines that the service provided by the Franchisee is "exemplary." The Franchise Fee is set at twenty-five percent (25%) of Franchisee's gross revenues. LEGAL REVIEW This Staff Report and Ordinance has been reviewed and approved as to form and content by the City Attorney's Office. ALTERNATIVES The City Council may choose to amend the proposed ordinance or not adopt the proposed ordinance. March 7, 2018 Page 3 ATTACHMENT Ordinance No. 1407 ORDINANCE NO. 1407 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AMENDING CHAPTER 100 OF THE BALDWIN PARK MUNICIPAL CODE OF THE OFFICIAL POLICE TOW TRUCK SERVICES FRANCHISE ORDINANCE NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY ORDAIN: SECTION 1. That Section 100 of the Baldwin Park Municipal Code is hereby amended as follows: CHAPTER 100: OFFICIAL POLICE TOW TRUCK SERVICES Section General Provisions 100.010 Intent and purpose 100.020 Definitions 100.030 Franchise agreements 100.040 Franchise fee 100.050 Franchise fee reports Franchise Procedures and Conditions 100.090 Selection of franchisees 100.100 Franchise term and conditions 100.110 Uniform Tow fee rates 100.120 Business license required 100.130 Transfer or assignment of franchise Operating and Equipment Standards 100.200 Tow truck equipment requirements 100.210 Rules of operation 100.220 Response time 100.230 Rotation system 100.235 Non-discrimination Cancellation, Revocation or Suspension of Franchise 100.250 Grounds for cancellation, revocation or suspension 100.260 Procedure for action against official police tow service 100.270 Liquidated damages GENERAL PROVISIONS § 100.010 INTENT AND PURPOSE. It is the intent of this chapter to prescribe the basic regulations for the operation of "Official Police Towing Services" in the City in responding to police emergency situations and in the removal of vehicles which are apparently abandoned, improperly parked or stopped on public property, or involved in an accident, or which constitute an obstruction to traffic because of mechanical failure. It is the intent of the City Council in enacting the ordinance codified in this chapter to provide a fair and impartial means of distributing requests for towing services among the best qualified towing firm or firms, and to insure that such service is prompt and reasonably priced, and in the best interest of the public as well as the interest of efficient policing operations for the removal from public streets of such vehicles. § 100.020 DEFINITIONS. For purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ATTENDANT or OPERATOR. A trained and/or qualified individual responsible for the operation of a tow car, tow truck or vehicle storage facility. DIRECTOR OF FINANCE. The position which is charged with the administration of the financial affairs of the City. HOLD FOR EVIDENCE. A designation by the storing/impounding Police Department employee requesting a level of care above that generally accorded to stored or impounded vehicles. Within ten calendar days after the date of the tow, the Official Police Tow Service shall contact the handling Police Department employee for further instructions as to the handling and disposition of any vehicle designated as HOLD FOR EVIDENCE. IMPOUNDED VEHICLE. Any vehicle containing evidence of criminal activity, or which in and of itself provides evidence of a criminal act, that is removed from a site and taken to the tow yard at the direction of a Police Department employee and for which a vehicle report (currently, form CHP 180) is provided to the Official Police Tow Service. OFFICIAL POLICE TOW SERVICE. A towing company having a franchise with the City to provide towing services to the City and/or Police Department. An Official Police Tow Service shall be used by the City and/or Police Department for any situation where a tow truck is required. STORED VEHICLE. Any vehicle removed from a site and taken to a tow yard at the direction of a Police Department employee, and for which a vehicle report (currently, form CHP 180) is provided to the Official Police Tow Service. TOW CAR or TOW TRUCK. A motor vehicle which has been altered or designed and equipped for, and exclusively used in the business of, towing vehicles by means of a crane, tow bar, tow line, flat bed, roll back, or dolly, or is otherwise exclusively used to render assistance to other vehicles. § 100.030 FRANCHISE AGREEMENTS. Tow truck operator or companies designated as an Official Police Tow Service, as defined in § L00,020, shall enter into a written franchise agreement with the City. Each franchise agreement shall contain eligibility requirements, operating regulations, and fee schedules as adopted by the City Council. Every Official Police Tow Service shall post in a conspicuous place in the interior of each tow truck operated by said Official Police Tow Service an approved rate schedule in a form and location approved by the Chief Executive Officer. § 100.040 FRANCHISE FEE. An Official Police Tow Service granted a franchise pursuant to the provisions of this chapter shall pay the City a franchise fee of twenty-five percent (25%) of the total gross revenue of an Official Police Tow Service derived from the tows assigned by the Police Department including storage of said vehicles. The franchise fee shall be payable monthly to the City during the term of the franchise. All terms and provisions for payment of the fee shall be clearly set forth in the franchise agreement as provided in § j (1.00 § 100..050 FRANCHISE FEE REPORTS. (A) Annual income statement. Every Official Police Tow Service shall annually provide the City with an income statement of the Official Police Tow Service derived from the tows assigned by the City or Police Department. Such statements shall be in such substance and format as may be approved by the Director of Finance or his or her designee. (B) Monthly report. In addition to the annual income statement, each monthly franchise fee payment made by the Official Police Tow Service to the City shall be accompanied by a brief report showing the basis for calculating the monthly franchise fee and a written statement, signed under penalty of perjury by an officer of the Official Police Tow Service, which identifies in detail the number of official police tow services performed and sets forth the basis for exempting any such tow services from calculation of the franchise fee payment for such month. The monthly report shall include the following: (1) Total police impounds; (2) Number of times dispatched by Police Department; (3) Number of these calls resulting in impounds; (4) Number of vehicles sold on lien sale under authority of Cal. Civil Code § 3072, and reporting said lien sales as per authority of Cal. Vehicle Code § 22705; (5) Number of vehicles sold under authority of Cal. Civil Code § 3073; (6) For individual sales, the DMV release of liability form; (7) For all bulk sales, the name of the salvage company or individual purchaser and the vehicle identification numbers of all vehicles sold; (8) Number of calls answered in which time beyond one hour was required to handle; (9) Any responses to City requests for tow services in excess of 30 minutes; and (10) Calculation of the average response time for official police tow services. FRANCHISE PROCEDURES AND CONDITIONS § 100.090 SELECTION OF FRANCHISEES. (A) At least 90 calendar days prior to the date an existing Official Police Tow Service franchise is due to expire, or whenever the Chief Executive Officer or his or her designee determines that the City has an established need for a new or additional tow truck operator to provide Official Police Tow Services to the City, the Chief Executive Officer or his or her designee shall request that the Department of Finance send out a notice of request for qualifications for a tow truck operator except where the performance of an existing Official Police Tow Service has been exemplary in which case the franchise shall be renewed by the City Council. The City Council by majority vote must make the determination of whether "the performance of an existing Official Police Tow Service has been exemplary." The City Council's decision regarding "exemplary" services is final and cannot be appealed. The request for qualifications shall be prepared by the Department of Finance and shall be approved by the Chief Executive Officer or his or her designee. Any proposals shall be reviewed by the Chief Executive Officer or his or her designee. The Chief Executive Officer or his or her designee shall select the most qualified proposal(s), if any, and the Baldwin Park Police Department shall conduct a background investigation on the operator and his/her employees, and Chief Executive Officer shall verify all information included in the proposal submitted to the City. (B) Upon successful completion of the background investigation, the Chief Executive Officer or his or her designee shall recommend, in writing, to the City Council the award of a franchise based on the bidder's compliance with the objective criteria established by this chapter. In preparing requests for and evaluating proposals received by the City, the Department of Finance and the Chief Executive Officer or his or her designee shall comply with the procedures and criteria adopted by this chapter. (C) The City Council has the discretion to grant a franchise to a tow truck provider that does not meet each of the requirements set forth in this chapter, but only where it is determined that full and complete compliance shall be achieved within six months of the date the franchise is awarded. (D) For the purposes of this section, the City has an established need for a new or additional Official Police Tow Service if any of the following occurs: (1) An existing Official Police Tow Service's franchise is revoked in accordance with the provisions of § 100.245 of this chapter; or (2) The response times of all of the existing Official Police Tow Services fail to meet the average response time required by § 100.220 because of a demonstrable increase in the volume of official tows; or (3) The City annexes additional area and the Chief Executive Officer or his or her designee, in his/her sole discretion, determines that the increased area and population warrant additional Official Police Tow Services to adequately protect the public health, safety and welfare. (E) To be eligible for a franchise under this Chapter, a tow truck operator or company shall have a minimum of five years of verifiable experience performing law enforcement towing and storage and shall have paid all applicable City fees and business licenses during said period where said business was maintained in the City prior to the issuance of a franchise. § 100.100 FRANCHISE TERM AND CONDITIONS. All Official Police Tow Services shall be subject to the terms and conditions specified in this chapter, as well as any terms or conditions specified in their respective franchise agreements. (A) Term. All Official Police Tow Service franchises granted pursuant to this chapter may be exclusive or non-exclusive and shall be for a term of four to ten years as specified by the City Council in any franchise agreement between the City and the Official Police Tow Service. (B) Number of franchises. No provisions of this chapter shall be deemed to require the restricting of the number of franchises awarded by the City to one or any other particular number, and no provision of this chapter shall be deemed to require the City Council to grant any franchise if the council determines that the grant of any such franchise is not in the best interest of the City and the public. § 100.110 UNIFORM TOW FEE RATES. (A) Fee schedules. The City shall establish a uniform tow fee schedule to be used by all Official Police Tow Services. The uniform tow fee schedule will be determined by using the average tow fee allowed by the California Highway Patrol (the "CHP") for the Baldwin Park region, for those Official Police Tow Services with contracts with the CHP. Said rates shall be adjusted annually by the Chief Executive Officer unless an adjustment to rates is approved more frequently by the CHP. All Official Police Tow Services shall only charge the tow fee rates established pursuant to the foregoing procedure. (B) Fee disputes. Should there be any dispute between the Official Police Tow Service and a vehicle owner or property owner over rates, fees or charges imposed for services rendered under this chapter, such dispute shall be decided by the Chief Executive Officer or his or her designee, and the Official Police Tow Service shall make no demands upon the vehicle owner or property owner for a sum in excess of the amount determined to be reasonable by the Chief Executive Officer or his or her designee. The Chief Executive Officer or his or her designee may hold an administrative hearing on any such dispute, if any party to the dispute so requests. Such hearing shall be conducted in the same manner and according to the same rules set forth in § 100.260(D)(1) through (D)(3) of this chapter. § 100.120 BUSINESS LICENSE REQUIRED. Each Official Police Tow Service shall have and maintain a valid license to do business in the City at all times during the term of its franchise agreement. § 100.130 TRANSFER OR ASSIGNMENT OF FRANCHISE. (A) Prior written consent required. Any Official Police Tow Service shall not sell, transfer, lease, assign, sublet, mortgage, or dispose of, either in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any rights or privileges granted therein, without obtaining the prior, written consent of the City Council. Any request to transfer or assign the franchise must be in writing and must be submitted to the City at least 120 days prior to the effective date of such sale, transfer, or assignment. (B) Recommendation to City council. Upon receipt of a written request to sell, transfer, lease, assign, sublet, mortgage, or otherwise dispose of an Official Police Tow Service franchise, the City's Chief Executive Officer shall investigate the proposed transferee or assignee and determine whether such proposed transferee or assignee is qualified to serve as an Official Police Tow Service operator pursuant to the criteria and requirements set forth in this chapter and contained in the franchise agreement, and shall make a recommendation to the City Council. (C) Change of control defined. The prohibition against the sale, transfer, lease, assignment, subletting, mortgage, or disposal of any interest in the franchise shall apply to any change in control of the Official Police Tow Service operator. The word CONTROL as used herein is not limited to a change in major stockholders or partners of the Official Police Tow Service, but also includes actual working control in whatever manner exercised. In the event that an Official Police Tow Service operator is a corporation, prior written consent of the City Council shall be required where ownership or control of more than 49% of the voting stock of the tow truck operator is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the Official Police Tow Service operator, either singularly or collectively, as of the effective date of the franchise. Provided, however, that nothing in this provision shall be construed to require the prior authorization of the City Council for any transfer of the franchise from an Official Police Tow Service operator to a wholly owned subsidiary. (D) Grounds for revocation of franchise. Any attempt to sell, transfer, lease, assign, sublet, mortgage, or otherwise dispose of an Official Police Tow Service franchise without the 6 prior, written consent of the City Council shall be null and void and shall subject the offending Official Police Tow Service to cancellation, revocation or suspension of its franchise subject to the terms and procedures set forth in this chapter. OPERATING AND EQUIPMENT STANDARDS § 100.200 TOW TRUCK EQUIPMENT REQUIREMENTS. (A) Capabilities. Official Police Tow Services shall provide towing equipment capable of providing for the following services: (1) Recovery truck(s) with an adjustable boom with a minimum lifting capacity of at least five tons. (2) Wheel lift towing. (3) Roll back/flatbed towing. (4) Towing in parking garages. (5) Towing from off road areas. (6) Towing of large and oversized vehicles. (7) Towing of motorcycles without causing additional damage. (B) State requirements. All tow trucks shall be equipped as provided in the California Vehicle Code. (C) Minimum equipment available. Official Police Tow Services shall, at" all times, have at least three fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one ton. At least one of the tow trucks in service must have a flatbed tow truck. At least one of the three tow trucks in service must have a five ton lifting capacity. (D) Unlocking vehicles. Every Official Police Tow Service shall be equipped for and have personnel proficient in unlocking locked vehicles, where feasible and practicable, and when requested to do so by authorized Police Department employees. § 100.210 RULES OF OPERATION. (A) Request for services. Official Police Tow Services shall provide towing service when: (1) The owner or driver of a disabled vehicle is unable, or fails, to specify a garage or tow service; or (2) A disabled vehicle presents a hazard; or (3) An authorized Police Department employee requests a towing service for the purposes of storing or impounding a vehicle. 7 (B) Business hours. Official Police Tow Service's business office shall be located within the storage yard and attended at all times for servicing the public and the City from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for the holidays of January 1, known as New Year's Day; third Monday in January, known as Dr. Martin Luther King Jr's Birthday; third Monday in February, known as Washington's Birthday/President's Day; last Monday in May, known as Memorial Day; July 4, known as Independence Day; first Monday in September, known as Labor Day; the second Monday in October, known as Columbus Day; November 11, known as Veteran's Day; fourth Thursday in November, known as Thanksgiving Day; and December 25, known as Christmas Day. If January 1, July 4, November 11 or December 25 fall upon a Sunday, the Monday following is a holiday and if they fall upon Saturday, the preceding Friday is a holiday. (C) Signs required. (1) An Official Police Tow Service's business office shall have a sign posted including the company name, address, phone number, and hours of operation, clearly visible from the roadway. (2) An Official Police Tow Service shall maintain a sign listing the rates and charges of all towing and storage services offered. Such rates sign shall be conspicuously placed in the business office or such other places where customer financial transactions take place. (3) Each Official Police Tow Service shall comply with Cal. Vehicle Code § 27907 regarding signs on tow trucks. (D) Release or availability of vehicles. (1) An Official Police Tow Service may collect an additional charge for release of vehicles after normal business hours. (2) An Official Police Tow Service shall release vehicles stored or impounded by the Police Department, pursuant to authorization provided by appropriate employees of the Police Department. Such authorization shall be in writing on a form provided by the Police Department. (3) All vehicles stored or impounded as a result of a tow ordered by the Police Department shall be made available to the owner of the vehicle or his representative, any insurance agent, insurance adjustor, or any body shop or car dealer, for the purpose of estimating or appraising damages, except vehicles with a "HOLD FOR EVIDENCE" designation. (E) Available on demand. An Official Police Tow Service must be available to promptly respond 24 hours a day, seven days a week, 365 days a year, to all requests by the City for towing services. (F) Professional attire. All operators of an Official Police Tow Service responding to a request for towing service by the City and/or Police Department shall appear in appropriate business attire, which shall include a shirt with the company logo of the Official Police Tow Service. If an operator fails to appear in appropriate attire, the officer on the scene may refuse to allow the Official Police Tow Service to provide towing service at that time. However, the response by the Official Police Tow Service shall still be counted as a turn in the rotation system described in this chapter. (G) Removal of hazards. After being dispatched by the City and/or Police Department to the scene, an Official Police Tow Service operator shall cooperate with the police officers in removing hazards and illegally parked vehicles as requested, including the complete cleanup of the scene by all Official Police Tow Service operators responding. It is the duty of the police officers to determine when such vehicle should be impounded or moved, and the Official Police Tow Service operator shall abide by their decisions. This requirement shall only apply to Official Police Tow Services summoned to a scene in response to an official request by the Police Department for tow services. (H) Towing of City vehicles. Each Official Police Tow Service shall tow all City police vehicles free of charge within the City's corporate limits. City police vehicles outside the City's corporate limits shall be towed at 75% of the established rates, as set forth in § 100.110(A) of this chapter. In addition, each Official Police Tow Service shall tow all other City vehicles, whether within or outside the City's corporate limits, at 75% of the established rates, as set forth in § 100.110(A) of this chapter. (I) Responsibility for own acts. Each Official Police Tow Service and its officers, employees and agents shall be responsible for their acts while performing duties pursuant to their respective franchise agreements as follows: (1) The owners of Official Police Tow Service participating in towing assignments by the City and/or Police Department shall be responsible for the acts of their employees while on duty. (2) Each participating Official Police Tow Service shall be responsible for damage to vehicles while in its possession caused by the active or passive negligence of that Official Police Tow Service. (3) Each Official Police Tow Service shall be responsible for damage to persons or property caused by the active or passive negligence or willful misconduct of its employees en route to or from a City request for tow services. (4) Each Official Police Tow Service and its employees, drivers, and agents shall comply with all applicable federal, state, and local laws, including but not limited to all applicable provisions of the California Vehicle Code. (J) Liability insurance. Each Official Police Tow Service shall procure and maintain, at its sole cost, a policy of public liability insurance in an amount and form acceptable to the City Risk Manager. Such liability policy shall be maintained in full force and effect for the entire term of the tow company's franchise agreement and proof of such public liability insurance shall be provided to the City on demand. (K) Indemnity. Each Official Police Tow Service agrees to protect, indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, demands, or liability from or relating to loss, damage, or injury to persons or property in any manner whatsoever arising out of or incident to the Official Police Tow Service's franchise with the City or with the Official Police Tow Service's performance of work under such franchise, including, without limitation, all consequential damages caused in the preparation to respond to an official police request for towing services, in providing official police towing services and 9 subsequent storage of vehicles, and in other related maintenance activities, whether such claims are caused by the negligence of the tow company or its agents and employees. (L) Records and offices subject to inspection, (1) All Official Police Tow Service's records, equipment, and storage facilities will be subject to periodic checks by the City and/or Police Department or other City investigators during normal business hours. (2) Every Official Police Tow Service shall maintain all offices, storage facilities and equipment in a neat, clean and organized manner. (3) Every Official Police Tow Service shall provide access to employees of the City at any time during normal business hours, for the purpose of inspection or audit to determine that the objectives and conditions of the Official Police Tow Service's franchise with the City are being fulfilled. (4) An Official Police Tow Service shall record its time in and its time out on every tow truck assignment. Such records shall be available and open to City examination. (M) Communications Requirements. All Official Police Tow Services shall comply with the following: (1) Official Police Tow Service shall maintain a telephonic point of contact capable of receiving City requests for towing services 24 hours a day. (2) Each Official Police Tow Service shall require its internal dispatch to retain data and records relating to the City's requests for towing services on premises for the term of the franchise. (3) Each Official Police Tow Service shall require the telephonic point of contact to promptly accept and relay requests for towing services made by the City. (4) Each Official Police Tow Service shall install and maintain at all times during the term of its franchise with the City, communications between their tow vehicle(s) and the official telephonic point of contact. This communication may be either by two way radio or cellular telephone. (5) Each Official Police Tow Service shall maintain a 24 hour per day communication contact with their tow vehicle(s). (6) Each Official Police Tow Service shall maintain a 24 hour per day telephone service to receive calls from the public. (N) Vehicle storage facilities. Every Official Police Tow Service shall have a secure and environmentally safe vehicle storage facility with a minimum of 15,000 usable square feet. (1) The vehicle storage facility must be located within the corporate City limits of the City. (2) The vehicle storage facility must be completely enclosed by a six foot high wall or fence with no holes, gaps, or other unsecured openings, and a gate. The wall or fence shall IN have two or more strands of barbed wire installed in such a manner so as to discourage access over the top of the wall or fence, or the wall or fence shall be a minimum of eight feet in height without barbed wire. All gates into the storage yard shall meet the same standards required of the wall or fence. Any damage to walls, fences or gates which allows, or could potentially allow, unauthorized access to the vehicle storage facility must be repaired within 24 hours. (3) The vehicle storage facility shall have adequate lighting, and comply with all applicable building codes, zoning regulations, environmental laws and regulations, and any and all other applicable laws, rules and regulations established by federal, state, county and City governments. (4) Security at the vehicle storage facility shall be adequate to preclude theft, vandalism, or damage by activity while in the tow operator's establishment. The view to all vehicles must be obstructed from the roadway. No vehicles shall be left parked or stored on the public streets at any time. The Official Police Tow Service operator must provide off-street parking for its equipment and be able to accommodate at least four additional vehicles for customer parking. Storage vehicles should be secured away from the customer parking area and on-site office area. (5) Each Official Police Tow Service operator shall conspicuously post a tag on the windshield of all vehicles ordered impounded by the Police Department. No vehicle ordered impounded by the Police Department shall be released by the Official Police Tow Service operator until said operator has verified that the applicable City release charges have been paid and obtained written authorization from the Police Department to release a particular vehicle. (6) Each vehicle storage facility must have adequate storage facilities to provide storage of four vehicles within an enclosed area, totally protected from the weather, contamination or handling by unauthorized person(s). The Police Department will designate when a vehicle is to be placed into inside storage and may place a seal on each door of the vehicle and/or door(s) of the impound facility. Vehicles placed into inside storage shall not be removed therefrom without written authorization from the Police Department. (7) Each vehicle storage facility must provide an inspection area for authorized members of the Police Department. Such area shall have, at a minimum, a covered inspection area (roof) with a paved (concrete or asphalt) surface, and an inspection pit or vehicle lift. (8) No Official Police Tow Service shall perform any work upon any vehicle stored or impounded by the Police Department without first obtaining written authorization from the Police Department and the registered owner of the vehicle. (9) Each Official Police Tow Service shall not dispose of any vehicle stored or impounded by official request of the Police Department, through any process whatsoever, without first obtaining written authorization from the Police Department to dispose of the vehicle. (0) Unclaimed vehicles. When disposing of unclaimed vehicles, Official Police Tow Services shall abide by all federal, state and local laws pertaining thereto. (P) Official storage lot. All vehicles stored or impounded as a result of a tow ordered by the Police Department shall be towed directly to an official storage lot unless the Police Department or other person legally in charge of the vehicle requests that it be taken to some other location. Vehicle release fees shall be established by resolution of the City Council. § 100.220 RESPONSE TIME. (A) Average and maximum response time. Each Official Police Tow Service agrees that, for any 30 day period, the average response time pursuant to requests for tow service by the police department, shall not exceed 25 minutes. Each Official Police Tow Service also agrees that the maximum response time for any single request for tow service by the Police Department shall not exceed 30 minutes. As used in this section, RESPONSE TIME is defined as the elapsed time between the relaying of the tow service request to the answering service and arrival of the tow vehicle on the scene. (B) Delay. When it becomes evident that there will be a delay in responding to a request for towing service, the responding Official Police Tow Service shall advise the Police Department of this delay and the reason for the delay. § 100.230 ROTATION SYSTEM. (A) Rotation list. Each Official Police Tow Service designated as an Official Police Tow Service shall be placed on a "rotation list" in an initial order to be determined by the Police Department. The rotation list shall be used whenever a driver or owner of a disabled vehicle is unable to specify a particular garage or tow service, or whenever an authorized Police Department employee requests the storage or impounding of a vehicle. (B) Turns in rotation. Each Official Police Tow Service shall be called, in turn according to the established rotation list, to respond to a Police Department request for towing service and, when in turn, shall have exclusive right to provide service as follows: (1) The Official Police Tow Service at the top of the order on the rotation list shall have preference to tow all vehicles from a specific scene, provided that Official Police Tow Service responds with all equipment needed to accomplish the tows within the response time specified herein. (2) Whenever an Official Police Tow Service cannot respond with all equipment needed to accomplish all tows at a specific scene within the response time specific herein, the next Official Police Tow Service on the rotation list shall be called to provide service to the remaining vehicle(s). (C) Loss of turn in rotation. Whenever an Official Police Tow Service cannot, for any reason, respond with any equipment needed to accomplish the requested service within the response time specified herein, that Official Police Tow Service shall be passed over and the next Official Police Tow Service on the rotation list will be called. The Official Police Tow Service shall become eligible to provide service again only in its next turn in rotation. (D) Exceptions. (1) Whenever the driver or owner of a disabled vehicle specifies a particular club, association or tow service to be called to provide service, such calls shall not constitute a "rotation" call. 12 (2) Whenever a Police Department employee determines that an emergency exists because an Official Police Tow Service is unable, for any reason, to provide adequate tow service, the Police Department employee shall have the right to have such duties performed by any other means available. (3) Whenever an Official Police Tow Service is called to tow a City police vehicle within the City's corporate limits, such call shall not constitute a "rotation" call. § 100.235 NON-DISCRIMINATION. In the performance of its duties under this chapter, an Official Police Tow Service shall not discriminate against any member of the public, employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, disability, sexual orientation, or age. CANCELLATION, REVOCATION OR SUSPENSION OF FRANCHISE § 100.250 GROUNDS FOR CANCELLATION, REVOCATION OR SUSPENSION. The franchise agreement entered into between City and Official Police Tow Service pursuant to § 100.030, shall be subject to cancellation, revocation or suspension by the Chief Executive Officer either as a whole or as to any person or vehicle described therein. The procedure for such cancellation, revocation or suspension is set forth in § 100.260. (A) Notice and contents of notice. The Official Police Tow Service shall be given five days written notice to appear before the Chief Executive Officer or his or her designee to show cause why the franchise should not be revoked, suspended, or canceled for any of the reasons set forth below. (B) Basis for action. A franchise may be revoked, suspended, or canceled for any of the following reasons: (1) An Official Police Tow Service fails to pay any City business license fees or other fees provided in the franchise agreement or by the Baldwin Park Municipal Code; or (2) An Official Police Tow Service breaches any rules, regulations, or conditions set forth in the franchise agreement or the Baldwin Park Municipal Code; or (3) An Official Police Tow Service, or any person having any ownership interest in that Official Police Tow Service or any employee of that Official Police Tow Service, violates any federal, state or local law; or (4) An Official Police Tow Service fails to maintain a satisfactory level of service to the police or public; or (5) An Official Police Tow Service fails to keep any tow vehicle in safe condition and good repair; or 13 (6) An Official Police Tow Service fails to use distinctive coloring, monogram, or insignia in compliance with Cal. Vehicle Code § 27907; or (7) An Official Police Tow Service deviates from the schedule of rates set forth in the franchise; or (8) An Official Police Tow Service passes on a tow assignment more than four times in any calendar month. PASSING is defined as refusing, for any reason, any tow assignment from the Police Department, including, without limitation, the towing of City vehicles at no charge; or (9) An Official Police Tow Service fails to respond to requests for tow service by the Police Department within the response time established by § 100.220; or (10) An Official Police Tow Service commits fraud or deceit upon the City, including, without limitation, falsifying data and records relating to the City's requests for towing services, falsifying the number of official police tow services performed, falsifying the response times to City requests for tow services; or (11) An Official Police Tow Service commits fraud or deceit upon any person to whom that Official Police Tow Service provides tow truck services; or (12) An Official Police Tow Service defaults on the performance of its material obligations under this chapter or the franchise and fails to cure such default within ten calendar days after receipt of written notice of the default and a reasonable opportunity to cure the default; or (13) An Official Police Tow Service fails to provide or maintain in full force and effect the insurance coverage as required by this chapter and as set forth in the franchise agreement; or (14) An Official Police Tow Service violates any order or ruling of any regulatory body having jurisdiction over the Official Police Tow Service relative to its tow truck business, unless such order or ruling is being contested by that Official Police Tow Service by appropriate proceedings conducted in good faith; or (15) An Official Police Tow Service becomes insolvent, unable or unwilling to pay its debts and obligations, or is adjudged to be bankrupt. § 100.260 PROCEDURE FOR ACTION AGAINST OFFICIAL POLICE TOW SERVICE. Whenever the City determines that an Official Police Tow Service has violated any applicable federal, state or local law, or has violated any provision of the franchise between the Official Police Tow Service and the City, the City shall give that Official Police Tow Service written notice of the violation and an opportunity to be heard on the matter in accordance with the following procedures: (A) Written notice. The City shall notify the offending Official Police Tow Service in writing of any and all violations. Such notice shall be delivered to the particular Official Police Tow Service in violation by personal delivery or by registered or certified mail, return receipt 14 requested, shall clearly set forth the specific violation, shall demand that the offending official police tow service cure the violation, and shall set forth the time period for curing the violation. The time period for curing a violation shall be determined by the Chief Executive Officer, or his or her designee, based on the nature of the violation, but under no circumstances shall the time period to cure be less than ten calendar days. If the Official Police Tow Service fails to correct the violation within the time prescribed by the notice, or if the official police tow service fails to commence good faith efforts to correct the violation within the time prescribed in the notice, the City shall temporarily suspend the Official Police Tow Service's franchise with the City pursuant to the provisions of division (B) of this section or shall give the Official Police Tow Service 14 calendar days written notice of a hearing before the Chief Executive Officer, or his or her designee. The written notice shall specify the alleged violations and the recommended action to be taken. (B) Temporary suspension. For equipment violations or business omissions, where the Chief Executive Officer desires to provide an Official Police Tow Service an additional opportunity beyond the initial notice to correct violations or omissions, the Chief Executive Officer, or his or her designee, may suspend that Official Police Tow Service from providing service for a period of time, not to exceed seven calendar days. Such suspension shall not be considered punitive and shall be for the specific purpose of providing Official Police Tow Service time to correct specified violations or omissions. If the Official Police Tow Service still fails to take corrective action during the temporary suspension period, the City shall give that Official Police Tow Service 14 calendar day's written notice of a hearing before the Chief Executive Officer, or his or her designee. The written notice shall specify the alleged violations and the recommended action to be taken. (C) Suspension pending hearing. For all substantive violations of law or the provisions of the franchise agreement between the Official Police Tow Service and the City, or for refusal to correct violations after proper notice is served upon the offending Official Police Tow Service pursuant to divisions (A) and/or (B) of this section, where the Police Department intends to take punitive action against the offending Official Police Tow Service or revoke the franchise in its entirety, the Chief Executive Officer or his or her designee, may suspend the offending Official Police Tow Service from providing service for a period of time, not to exceed 14 calendar days, in preparation for a hearing. (D) Informal hearing. The Chief Executive Officer or his or her designee, shall conduct such hearing and may receive information from any source deemed relevant to the inquiry. The purpose of the hearing shall be to determine the factual basis of the allegation(s) against the Official Police Tow Service. (1) The hearing shall be informal in nature. (2) Formal rules of evidence (California Evidence Code and/or the Federal Rules of Evidence) shall not apply. (3) The offending Official Police Tow Service shall have the opportunity to respond to the allegations and present information relevant to Official Police Tow Service's defense. 15 (4) At the conclusion of the hearing or within a reasonable time thereafter, not to exceed ten working days, the Chief Executive Officer, or his or her designee, shall make a finding as to whether the allegation(s) are "founded" or "unfounded." (5) Upon a finding that the allegation(s) are "founded," the Chief Executive Officer, or his or her designee, shall determine the appropriate sanction to be taken against the offending Official Police Tow Service. (a) The Chief Executive Officer may extend the suspension of the offending Official Police Tow Service for a period of time, not to exceed 30 additional calendar days, or; (b) The Chief Executive Officer may permanently revoke the offending Official Police Tow Service's franchise and remove the Official Police Tow Service from providing service in response to Police Department request; or (c) The Chief Executive Officer may impose such other sanction as he or she determines is appropriate in light of the nature of the violation and the relevant circumstances. (6) The Chief Executive Officer, or his or her designee shall notify the offending Official Police Tow Service of his or her finding and/or the sanctions to be imposed, in person, by registered mail, or by written notice hand -delivered to that Official Police Tow Service's business office. (E) Appeals. Any Official Police Tow Service aggrieved by a decision of the Chief Executive Officer pursuant to this section may appeal the finding of or the sanction imposed by, the Chief Executive Officer to the City Council. Any such appeal must be filed with the City's Chief Executive Officer in writing within five business days of the Official Police Tow Service's receipt of the decision of the Chief Executive Officer. (1) The City's chief executive officer shall schedule an informal hearing within ten days of receiving an appeal from the Official Police Tow Service and shall notify the Official Police Tow Service in writing of such hearing at least five calendar days prior to the hearing date. The same procedures set forth above for the hearing by the Chief Executive Officer or his or her designee, shall apply to the hearing before the City Council, if any. (2) After hearing the evidence from both sides, the City's chief executive officer shall issue a written decision within ten days of the hearing. The decision of the City's chief executive officer is final. (3) Any person aggrieved by the City administrator's decision may file a writ of administrative mandamus pursuant to the Cal. Civil Code § 1094.5 within 90 days of the date the City administrator issues his or her decision. § 100.270 LIQUIDATED DAMAGES. (A) Fines and penalties. Each Official Police Tow Service agrees that an Official Police Tow Service's failure to meet the average response time for any 30 day period, or failure to meet the maximum response time for any single request for tow service, will result in damages 16 being sustained by the City. Such damages are, and will continue to be impracticable and extremely difficult to determine. Each Official Police Tow Service agrees to pay the City $250 each and every time that Official Police Tow Service fails to meet the average response time requirements for any 30 calendar day period. Each Official Police Tow Service agrees to pay the City $100 each and every time that Official Police Tow Service fails to meet the maximum response time for any single request for tow service by the Police Department. Each Official Police Tow Service further agrees that said sums are the minimum value of the costs and actual damages caused by failure of an Official Police Tow Service to complete service within the allotted time period. Such sum is a liquidated damage and shall not be construed as a penalty. (B) Hearing. Prior to the imposition of such liquidated damages against a particular Official Police Tow Service, that Official Police Tow Service shall be entitled to a hearing as provided herein. Such hearing shall be conducted in accordance with § 100.260. Section 2.The Chief Executive Officer or its designee is authorized to take action as may be necessary to implement this ordinance. Section 3. The Mayor or presiding officer of the City of Baldwin Park City Council is hereby authorized to affix his/her signature to this Ordinance signifying its adoption by the City Council of the City of Baldwin Park. S. ction °. The City Clerk of the City of Baldwin Park shall certify to the adoption of this Ordinance and cause the same to be posted and/or published as required by law. Section 5. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days from the date of its final passage and adoption. Sectiones ria. If any chapter, section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, section, subsection, subdivision, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional. PASSED, APPROVED AND ADOPTED ON the 71" day of March 2018 MANUEL LOZANO, MAYOR 17 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss: CITY OF BALDWIN PARK) I, Alejandra Avila, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on February 21, 2018. That thereafter said Ordinance No. 1407 was duly approved and adopted at a regular meeting of the City Council on March 7, 2018 by the following vote: AYES: Councilmember: NOES: Councilmember ABSENT: Councilmember: ABSTAIN: Councilmember'. Alejandra Avila City Clerk 18 ITEM NO. STAFF REPORT __� „� 1 LD TO: Honorable Mayor and City Councilmembers Hrrsor� FROM: Rose Tam, Director of Finance THESAW-4 cAar DATE: March 7, 2018 %,VALLEY I SUBJECT: APPROVE PROPOSAL FOR COLLECTION SERVICES 'Ira JAI40� SUMMARY This report addresses the concern of any funds owed to the City that remain unpaid. The staff solicited proposals from collection services to assist the City to recover the unpaid funds. FISCAL IMPACT °l leer°e is rro initial cost to lire City and the ("Ity will receive additional amounts of revemle that it otherwise iniglit not lrave been collected. The collection lee is 19%, with legallcorrrt action or out of the stale referral is 22%. "l'here will be no cost if tyre payment received within 30 days from the date of notice. The collection fee is going to be included hi the City of Baldwin Park Schedule of Fees which will be presented at the public hearing in the rrcar° farture. RECOMMENDATION Staff recommends that the City Council; 1. Review and approve the Professional Services Agreement with CB Merchant Services for Collection Services; and 2. Authorize the Mayor to sign Professional Services Agreement with CB Merchant Services; and 3. Authorize the Director of Finance to include the collection fees in the City of Baldwin Park Schedule of Fees which will be presented at the public hearing in the near future. LEGAL REVIEW This report and the attachments have been reviewed and approved by the City Attorney as to legal form and content. BACKGROUND With concern of funds owed to the City that remain unpaid and uncollected, staff has solicited proposals from collection services to assist the City to recover the unpaid funds. We received five (5) proposals as' listed below. The City currently does not have an agency under contract to do City-wide collections of delinquent payments to the City. The City's departments are not staffed with the expertise or personnel to do comprehensive collection services. Because of this, there are some bills sent by the City that have gone unpaid such as the booking fees and D.U.I. Based on the review of the five (5) proposals received, staff recommends CB Merchant Services to by the collection agency due to their lowest competitive fees and experience. The term of the services will be two years with an option to renew for two additional 2 -year term contracts. CB Merchant Services is currently working for the City of West Covina. APPROVE PROPOSAL FOR COLLECTION SERVICES Pap -e 2 List of Collection Agency Proposal Collection Agency Proposed Fees www Reular Collections Legal/Court Action Out of Area Referral Collection Letter Servvice, CB Merchant Services 19% 22% 22% No Charge (100% goes to 217 N. San Joaquin St. the City with payment Stockton, CA 95202 received within 30 days, from the date of letter) States Recovery Systems, Inc. 22% 30% N/A No Charge 2491 Sunrise Blvd Rancho Cordova, CA 95670 __wawa Credit Bureau Associates (CBA) 25% 25% 35% No Charge 460 Union Ave, Ste C Fairfield, CA 94533 Financial Credit Network 24% 34% 34% No Charge 1300 West Main Street Visalia, CA 93291 Collection Bureau of America 25% 35% N/A No Charge 25954 Eden Landing Road Hayward, CA 94545 i i ALTERNATIVES In the case the City CoL,i ncil sloes not select CB Merchant Services, they may select with one of the other four (4) 1irITIS 'with l)iglier rage,. ATTACHMENTS Proposed Agreement from CB Merchant Services. PROFESSIONAL SERVICES AGREEMENT WITH C B MERCHANT SERVICES FOR COLLECTION AGENCY SERVICES THIS AGREEMENT is made and entered into this 7th day of March, 2018 ("Effective Date"), by and between the City of Baldwin Park, a municipal corporation ("City"), and CB Merchant Services, a California not for profit corporation ("Consultant"). WITNESSETH: A. WHEREAS, City proposes to utilize the services of Consultant as an independent contractor to City, as more fully described herein; and B. WHEREAS, Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated, except that if Consultant is required to but does not yet hold a City business license, it will promptly obtain a business license and will not provide services to the City until it has done so; and C. WHEREAS, City and Consultant desire to contract for the specific services described in Exhibit "A" and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D. WHEREAS, no official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. E. WHEREAS, Consultant responded to the City's Request for Proposals dated February 6, 2018, incorporated via this reference as if fully set forth herein, and Consultant's response to the Request for Proposals was a material inducement to the City ultimately entering into this agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scone of Services. Consultant shall provide the professional services described in the Scope of Services attached hereto as Exhibit "A," incorporated herein by this reference. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. City Officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of the Consultant to comply with this section. 1.3. . Consultant agrees to perform all the work to the reasonable satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; end/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, induding, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. 1.5. NgDAiscrimiD2 �ior. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or intellectual disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. 1.6. a "ve Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Confiderjtialitv. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disdosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 1.8 P b . r Act Li c Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Consultant informs City of such trade secret The City will endeavor to maintain as confidential 2 all information obtained by it that is designated as a trade secret The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 2.0. COMPENSATION AND BILLING 2.1. Corn ejisation._Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "B," attached hereto and made a part of this Agreement (the "Fee Schedule"). 2.2. Additional SpLyigg& Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant's Proposal unless the City, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Should the City request in writing additional services that increase the hereinabove described "SCOPE OF SERVICES", an additional fee based upon the Consultant's standard hourly rates shall be paid to the Consultant for such additional services. Such increase in additional fees shall be limited to 25% of the total contract sum or to the maximum total contract amount of $25,000, whichever is greater. The Department Head or City Manager is authorized to approve a Change Order for such additional services. 2.3. Mqfbgd of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Reco d a Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of three (3) years from the Effective Date. 3.0. TIME OF PERFORMANCE 3.1. Co 1 Coy 1 i The professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the Project Schedule approved by City as set forth in Exhibit "C," attached hereto and incorporated herein by this reference. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of thisAgreement. 3.2. Excus Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present documentation satisfactory to the Cityto substantiate any requestfora time extension. 3 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 24 months, ending on March 6, 2020, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. Thereafter, this AGREEMENT may be renewed for a maximum of successive two (2) year terms. Such renewal will be evidenced by a written Amendment upon written notice of City given to Consultant at any time prior to the expiration date of the AGREEMENT. 4.2. f Tr The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. If the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement. The City also shall have the right, notwithstanding any other provisions of this Agreement, toterminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; C. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. 4.3. f 2=, In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City's written notice of termination, within forty-five (45) days after the effective date of the notice of termination or the final invoice of the Consultant, whichever occurs last Compensation for work in progress shall be prorated based on the percentage of work completed as ofthe effective date oftermination in accordance with the fees setforth herein. 4 4.4.a -rents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City. 5.0. INSURANCE Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. 5.1 Mjoi[pum Scooend�Li . i fl�r ry rr :. Coverage shall be at least as broad as: (a) Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (b) Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non - owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. (c) Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (d) Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant's profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 5.2. „ rInsur n e r— n The insurance policies are to contain, or be endorsed to .jacontain the following provisions: (a) Additional Insured Status: The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractors insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). (b) Primary Coverage: For any claims related to this contract, the 5 Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it (c) Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. (e) Self -Insured Retentions: Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. (f) Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. (g) Verification of Coverage: Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. (h) Subcontractors: Consultant shall require and verify that all maintain insurance meeting Contractor shall ensure that required from subcontractors. all the requirements stated City is an additional insured subcontractors herein, and in insurance 5.3. Ceducti'bie or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. 5.4. Certificates pf Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. N. 5.5. N_, on—ll'gmitino. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. 6.0. GENERAL PROVISIONS 6.1. Mire 6greement,, This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 6.2. Rer sen ive . The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement, Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Key Personnel. It is the intent of both parties to this Agreement that Consultant shall make available the professional services of Ana Molina, Collection & Compliance Manager, who shall coordinate directly with City. Any substitution of key personnel must be approved in advance by City's Representative and the Agreement shall be amended to reflect the changes. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile or by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: C B Merchant Services 217 N. San Joaquin St. Stockton, CA 95201 Tel: (209) 944-9001 Fax: (209) 944-0795 Email: Iguinn@cbmerchantservices.com Attn: Linda Guinn, CEO/President 7 IF TO CITY: City of Baldwin Park 14403 E Pacific Ave 2"d Floor Baldwin Park, Ca. 91706 Tel: 626-960-4011 Email:rtam@baldwinpark.com Attn: Rose Tam, Director of Finance 6.5. Attorneys' Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder orthe enforcement of any of the terms, conditions, or provisions hereof. 6.6. Goy rnip �.aw. This Agreement shall be governed by and construed under the laws of the State of California without giving effectto that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree thatthesole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 6.7. 6gajUrun2DL Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term ofthis Agreement. 6.8. I i-1 ,rmiess. Consultant agrees to defend, indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Consultant's sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained eitherinthe City's specificationsorConsultant's Proposal, which shall be of no force and effect. City shall indemnify, defend, and hold Consultant harmless from and against any and all liability, demands, claims, losses, damages, recoveries, settlements, and expenses (including without limitation reasonable attorney's fees) arising from or in connection with City providing Consultant incorrect information in connection with Consultant providing debt collection services forthe City and that Consultant may incur or sufferthat arise, result from or relate to any breach oforafailure by the City to perform, any of their representations, warranties, and/or covenants, in this Agreement. 6.9. rpt nt ac Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.10. E- i i i i I ' ° ion. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.11. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. 6.12. OwnersNo of_QpLgMpnta. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliverto City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City. Consultant or Consultant's agents shall execute such documents as may be necessary from time to time to confirm City's ownership of the copyright in such documents. 6.13.1 ,tr ife �r s. Contractor shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of the information. Contractor shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment. 6.14. Conflict of I e Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, of seq.) and Government Code Sections 1090-1092. Consultant covenants that none of Consultant's officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be used by Consultant as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement. 6.15. rohibited m to meat. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.16.r ec In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference. this Agreement shall govern overthe document referenced. 6.17. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.18. Nq Third i This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.19. LAggdj= Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of thisAgreement. 6.20. Mrae ts., Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.21. Waiver. The delay or failure of either party at anytime to require performance or 10 Compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.22. Se r ' ' y,,; If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.23. C0QnterpgtJs and r i Si natumes, This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. 6.24. Corporate Au tority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 6.25 _f x a e tuber. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, asofthe date first above written. CITY OF BALDWIN PARK A municipal corporation Manual Lozano/Mayor Date CONSULTANT Linda Guinn/ President / CEO Date 11 EXHIBIT A SCOPE OF SERVICES The City will assign cases for collection to the Consultant on an as -needed basis after the City has, for some time, attempted to collect the delinquent monies. For such cases, the City will then cease its efforts to collect the delinquent payments and will assign the case to the Consultant. The Consultant shall be responsible for the following: 1. Conduct all activities in an ethical manner and in compliance with all applicable Federal, State and local laws, codes and regulations. 2. Address only those accounts which the City assigns.. 3. When directed by the City, cease work on and return to the City all documentation pertaining to any account that may have been previously assigned. 4. Ensure funds collected on the City's behalf are placed in a secured account Funds collected shall be deposited in a timely manner. Payments remitted to the City shall be completed in a timely manner, and include a report ledger showing the amount paid, at least once per month. 5. Pertaining to each account, deliver to the City at least once per month a report detailing the current status of the account, including a brief recap of the successful Consultant's efforts to collect the funds. 6. Not initiate any legal action pertaining to any account without the prior written permission of the City. 7. No compromise settlement shall be accepted by the Consultant without the City's written consent 8. Ensure all records pertaining to any current or past accounts assigned are available for audit by the City or its authorized representative at any time. 9. Provide electronic access to the unpaid accounts. 10. Guarantee the confidentiality, security, and safety of all files, documents, computer files, etc. 11. Responsible for maintaining accurate records of all correspondence, documents, accounting records, transactions and other relative evidence. These records shall remain on file for a period of at least seven (7) years. All records shall be made available to the City for review upon request. 12. No work shall be subcontracted without the prior written consent of the City. 13. Conduct skip tracing on delinquent accounts. Skips and mail returns require special handling and are immediately referred to the Consultant's comprehensive skip tracing team prior to commencing with collection efforts. M 14. Submit status reports on a monthly basis and an annual report (on a fiscal year) through June 30, reflecting the activity for the previous fiscal year. These reports shall include data for each account detailing the value of the current debt, money received, charges waived, interest charged, balance due and date of last payment. A financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as receipts, net accounts receivable, total accounts receivable, and collection percentage. In addition, an aging report should be available in summary and in detail. 15. Make a minimum of two written or telephone contacts for each account (unless the account clears sooner) within sixty (60) days of receipt of account 16. Accept automated or manual transfer of delinquent payment information from the City or other vendor's database. It is expected the agency will work, at no additional cost, with the City and its software to ensure accurate and timely transmission of data. Collection Letter Service is an initial demand letter mailed to the address the City provides and is scrubbed and NCOA screened to ensure deliverability of the notice. This initial notice identifies the amount due to the City and appeals to the consumer to identify disputes, if any, and requests payment in full. The Consultant's toll free number is provided to ensure ease of contact and open communication to discuss payment arrangements. There is no charge on amounts collected during the first thirty days. The Consultant covers the entire collection process from initial contact to final resolution. Once assigned for collections (or following the letter service period), their first contact consists of both telephone and/or letter communication requesting payment in full and providing all the necessary disclosures, as required by law. In addition to mailing collection notices on each account assigned, predictive dialing technology ensures "live contacts" are being made on your accounts. By utilizing a combination of TCPA Compliant predictive dialing, manual dialing and/or messaging campaigns, the Consultant increases the likelihood of contacting the responsible party to arrange for payment in full on your accounts. The Consultant recognizes that many households are two income wage earners, consequently, we have extended business hours; we are available all five (5) evenings per week till 7:00 p.m. including Saturday 8:00 a.m. to noon. The Consultant's seventeen (17) collection specialists are courteous and tactful, but firm enough to get the job done. Each account is evaluated individually based upon many factors; amount referred, age of account, consumers financial situation and financial resources. The Consultant is sensitive to customer concerns and in all cases where an error appears to have been made, they will investigate to ensure that the collection action is correct and proper. The Consultant is open to discussing payment arrangements with the consumer provided the payment amount is reasonable and the financial situation has been verified. In addition to extended business hours (evening shifts) and a bilingual staff, the Consultant provides a number of instant pay -by -phone and web -based payment options which greatly improves their success in collecting your accounts. Unreasonable payment amounts or refusals to pay a valid claim on amounts over $2,000 will be evaluated for legal action. With the City's permission, the Consultant will go the full extent of the law to collect the City's account. With the City's authorization, the Consultant will advance all court costs and attorney fees necessary to obtain a judgment, when warranted. The City will save the out of pocket legal costs, as well as the hassle of small claims court. Once judgment is obtained the Consultant will promptly lien the attachable assets. 13 `' 0 EXHIBIT B FEE SCHEDULE A. Letter Service - No fee letter service on amounts collected during the first thirty (30) days after initial notice is mailed. B. Regular Collection -19% of amounts collected; no collection, no charge C. Court Action, if required - 22% of amounts collected; no additional costs to the City D. Transfer of account to an Out of Area Agency (State) for Collection -22% of amounts collected E. Any other costs involved in the collection process - None 14 EXHIBIT C PROJECT SCHEDULE The following Project Management Plan, Transition, Phase One and Phase Two of the Implementation may be expedited. Subject to successful testing, the client implementation may completed within five to seven working days dependent upon staff availability of the City of Baldwin Park Project Management Plan Prior to the first referral of your accounts, C B Merchant Services (CBMS) will conduct a project management review and start-up session with your department in order to establish the following: • A review of your service requirements and work standards, including reporting and all related information, for compliance • Review communication procedures and personnel • Review quality control measures and procedures • Review collection goals • Confirm account placement volume, procedures, and time frames Transition Phase Quality Control During the transition phase, CBMS runs a series of internal quality control checks to ensure a smooth transition for each client. Quality control occurs in two phases: (1) internal processes and contractual requirements and (2) process testing and acceptance. Phase One: Internal Processes and Contractual Requirements CBMS runs a series of test accounts through our system based on each new client's requirements, prior to the first placement of that client's accounts. This provides assurance that all systems, from computers to the mailroom, are functioning properly. Quality control checkpoints will include: • Confirm all electronic data transmission protocols and interface requirements • Submission and review of media • Review reporting layouts and schedules • Review all payment procedures CBMS reviews all collection procedures with respect to contractual requirements during Phase One. Any aspect of CBMS' proposed Business Plan that is not in strict compliance is modified. New client quality control checkpoints include the following: • Review and customization of all dunning and administrative notices • Review all litigation preparation requirements and procedures • Review all collection procedures and time frames • Review performance goals • Review and customization of reports including content, frequencies, and formats • Review payment procedures • Confirm client -specific training content • Review quality control program interface 15 Phase Two: Process Testing and Acceptance Upon approval of all of the above, CBMS will initiate all programming and procedural changes and commence training updates. Each collector will be required to pass a written exam on any specific requirements and procedures prior to assignment of City of Baldwin Park. We believe that the most important aspect of quality control is preparation. A series of three test contracts are run through our system based on your requirements, priorto the first placement of your accounts. This process validates the proper customization and operation of all systems and processes prior to receiving the first placementfile. 16 STAFF REPORT ITEM NO. (',,5ArN',,,r,ABRIEL �- TO: Honorable Mayor and City Councilmembers ' ROF � FROM: Rose Tam, Director of Finance DATE: March 7 2018VALLEY ' ' SUBJECT: Accounting Related Policies and Procedures r WNW SUMMARY The purpose of this staff report is to present updated accounting related policies and procedures as recommended by the City's itidependem Miditors to the City Council for review and approval. FISCAL IMPACT None. RECOMMENDATION Staff recommends that the City Council review and approve the following accounting policies and procedures: 1. Purchasing Policy and Procedures 2. Credit Card Policy and Procedures 3. Travel Policy and Procedures 4. Federal Awards Administration Policy and Procedures 5. ACH and Wire Transfer Policy and Procedures BACKGROUND During the prior years' audits, the City's independent auditors recommended that several of the accounting related policies need to be updated. The Finance staff have reviewed and updated the existing accounting related policies and procedures to incorporate the recommendations from the auditors and to comply with the Office of Management and Budget (OMB) and the new Uniform Guidance requirements. LEGAL REVIEW This report and the attachments have been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES None. ITEM NO. ATTACHMENTS 1, Purchasing Policy and Procedures 2, Credit Card Policy and Procedures 3, Travel Policy and Procedures 4m Federal Awards Administration Policy and Procedures 5. ACH and Wire Transfer Policy and Procedures 2 ATTACHMENT 1 City of Baldwin Park Purchasing Policy and Procedures Effective March 7, 2018 Purpose: The purpose of this policy is to establish procedures for the purchase of supplies, services, and equipment at the lowest possible cost commensurate with quality needed; to exercise positive financial control over purchases; and to clearly define authority for the purchasing function. It is the policy of the City of Baldwin Park (the City) to follow a practice of ethical and responsible procedures related to purchasing, agreements and contracts, and related forms of commitment. The purchase policy describes the principles and procedures that all staff shall adhere to in the completion of their designated responsibilities. When Grant Funds are Used to Fund or Partially Fund the Purchase If grant funding will be used, it is the Program Manager's responsibility to ensure that all applicable requirements of that funding are included in any contract/agreement/amendment/change order. Additionally, it is the responsibility of the Program Manager to ensure compliance with all applicable requirements of the funding, including securing approval of grant prior to incurring any expenditure, approval of eligible expenditures, and reporting requirements, etc. Purchasing Guidelines and Procedures All department directors shall have the authority to initiate purchases on behalf of their department within the guidelines described in the City's purchasing policy. Department directors may delegate purchasing authority to responsible individuals within their department. Directors shall inform the Finance Department of all designated individuals that may initiate/enter purchase requisition (PR) in the financial software system, Tyler Incode 10. The Management Assistant of Finance will review the PR prior to the approval of the Assistant Accounting Manager and/or Director of Finance. Once the PR is approved, the Management Assistant in Finance will generate the purchase order (PO), forward it to the Assistant Accounting Manager and/or Director of Finance for review and approval, and then send it back to the requesting departments. All purchase requests should be within the annual approved budget. All City purchases exceeding $2,500 require a purchase requisition (PR), purchase order (PO), and at least three (3) quotes except as otherwise provided in these policies and procedures. Purchases and contracts for supplies and equipment do not constitute a public project as defined by Cal. Pub. Cont. § 20161 shall require the following approvals: 1 Estimated Val.... .� ..... �_ .....� ue of Contract Authority of Approval Estim mm w.�0to- ... _ $10,000 per vendor per fiscal yearRespective Department Head —1t o $24,999.99 per vendor per fiscal year Chief Executive Officer Great p Greater than $24,999 99 er fiscal year City Council The above threshold approval level does not apply to the annual recurring maintenance cost such as gas, electricity, telephone; multi-year contracts such as software program annual maintenance, copiers, and annual audits that were already approved by the City Council and included in the annual adopted budget. All approved requisitions with all the required quotes and bids will be entered into the accounting system "INCODE 10" by the Management Assistant/designated individuals. At least three (3) quotes are required for purchases between $2,500 to $24,999.99. Informal bids (at least three (3) written price quotations) and/or formal bids (RFP) are required for purchase exceeding of $24,999.99. A PO will be issued by the Finance Department only after the requisition has been approved at all levels. The requisition must include the following information: 1. Vendor's name (Based on Form W-9 as submitted by Vendor) 2. Description of item (goods/services) being requested for purchase 3. General ledger account number (refer to the approved budget line item account 4. Amount of purchases (should not exceed the appropriated/approved budget amount) 5. Quantity 6. Quotations (at least 3) 7. Approved staff report/contract/agreement for PR is required for more than $24,999.99 8. All PRs must be approved by designated approver as mentioned above 9. All PRs should be approved electronically by the Assistant Finance Manager and/or Finance Director for purchases of $5,000 and above Vendor Files and Required Documentation The Management Assistant/Accounts Payable Staff of the Finance Department shall maintain an electronic vendor profile and create a profile for each new vendor from whom the City purchases goods or services based on Form W-9. Prior to issuing a PO for any vendor (regardless of whether a contract is involved), the respective department shall request a completed and signed Form W-9 from the vendor and submit it to the Finance Department/Management Assistant, and inform the vendor to apply for a business license, if needed. Upon receiving the required documents, the 2 Finance Department/Management Assistant will issue and distribute the PO to the respective departments. Ethical Conduct in Purchasing City officials and employees shall not make any attempt to realize personal gain directly and indirectly through a purchase or service provided to the City, including but not limited to the following: 1. City officials and employees or any member of their immediate family have any financial interest in the purchase or service. 2. A business or organization, in which the City officials and employees or any member of their immediate family have any financial interest, is involved in the purchase or service. 3. Any other person, business or organization, with whom the City officials and employees or any member of their immediate family is negotiating or has an arrangement concerning prospective employment, is involved in the purchase or service. 4. No City officials and employees operating a business outside of their current City employment shall do business or provide a service for the City through their outside employment. 5. Prohibit the sale of lien vehicles from City's contracted tow vendor(s) to the City, City's affiliated entities, employees, and elected officials. 6. Any in-kind gift or contribution over $50 (annually) by any vendor to city management or, city elected officials required to submit Form 700 shall be reported on Form 700 as required by Law. 7. Any in-kind gift or contribution by any vendor to individual employees not covered by Form 700 is prohibited. If such a gift is delivered, the employee shall turn it to the Department Director who shall either return the gift. In the case of gift items such as baskets, they may be raffled off at a City event or distributed among all employees in the department. 8. Any in-kind gift or contribution over $100 by any vendor to a city event shall be reported to the City Clerk's Office and available to the public on the City's web site. 9. Expenditures of public funds for gifts or gift cards to employees and City officials are not authorized. This includes gifts purchased for employee and City official birthdays or other personal occasions except for city -sponsored events. 3 Voluntary collections from staff would be an acceptable way of purchasing employee gifts. 10.Awards and recognitions to employees and City officials must be ars item of tangible personal property (cannot be cash, cash equivalent, vacations, meals lodging, theater or sporting event tickets, stocks, bonds). 11. External awards and recognition are appropriate for presentation to people or organizations external to City staff. External awards shall be determined by the City Council and CEO in advance. Conflict of Interest Prohibited No employee or council member of the City of Baldwin Park shall participate in the recommendation, selection approval or administration of a vendor if a real or apparent conflict of interest would be involved. Such a conflict would arise if a City Council member, employee, or any member of his/her immediate family, his/her spouse/partner, or an organization that employs or is about to employ any of the parties indicated herein, has a financial or other interest in the vendor selected. In certain instances, the City may not enter into contracts or do business with certain entities that are owned, operated, managed by, or that employ officers of the City (California Government Code section 87100 et seq.). An employee should not act as a principal or as an agent for a firm that does business with the City for six (6) months after the separation from the City. Employees and council members of the City of Baldwin Park shall neither solicit nor accept gratuities, favors, or anything of monetary value from vendors or parties to sub - agreements, including campaign donations should the employee or council member be aware that the vendor or party to sub -agreement is pursuing an interest in the City. If unaware, once the interest is discovered, the employee and/or council member shall recuse themselves from any decision-making or recommendation role. Non -Discrimination Policy All vendors/contractors who propose to perform any work or furnish any goods under agreements with the City of Baldwin Park shall agree to the following principles: 1) Vendors/contractors will not discriminate against any employee or applicant for employment because of race, religion, color sexual orientation or national origin, except where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of the vendors/contractors. 2) Vendors/contractors agree to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non- discrimination clause. Notices advertisement and solicitations placed in accordance with Federal laws or regulations shall be deemed sufficient for meeting the intent of this section. 4 Awards to Debarred and Suspended Parties The City of Baldwin Park will not make any award or permit (sub grant or contract) to any party which is debarred or suspended or is excluded from or ineligible for participation in Federal assistance programs. See Federal Award Policy for more details. Encumbrance of Funds Except in the case of an emergency as determined by the CEO, the Department Heads shall not request any PO for supplies or equipment unless there is an existing unencumbered appropriation against which the purchase is to be charged. Formal Contract Procedure A. All contracts shall be by written contract with the lowest responsible bidder pursuant to the public contract procedure prescribed in Municipal Code-§§ 34.27 through 34.33. B. Where possible, preference shall be given to local bidders or vendors, if all other factors in the bidding process are equal. C. A clause shall be incorporated in vendor's contract to require that all donations, gifts, and free services provided by the vendor outside of their service agreement to any city elected officials, employee, City department, or City affiliated entities or events be documented and reported to the City. Notice Inviting Bids Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. The purchasing officer shall publicize each notice inviting bids in such manner as is calculated to advise all prospective bidders thereof. A. Published Notices: Notices inviting bids shall be published at least ten (10) business days before the date of the opening of the bids. Such notices shall be published at least once in a newspaper of general circulation printed and published in the City, or, if there is none, they shall be posted in at least three public places for posting public notices. B. Bidders' List: The department's purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the Bidders' List or who have requested their names to be added thereto. The purchasing officer shall annually review the Bidders' List and the City's business license records, and shall make appropriate efforts to update the Bidders' List to include businesses located in the City. 5 C. Bulletin Board: The department's purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the City Hall, on the City's official website, and other appropriate electronic media. Bidder's Security When deemed necessary by the department's purchasing officer, bidder's security may be prescribed in the public notices inviting bids. The security shall be returned upon rejection of a bid; provided, that the successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. Bid Opening Procedure Sealed bids shall be submitted to the City Clerk's office and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection. Rejection of Bids In its discretion, the City Council may reject any and all bids presented and re -advertise for bids. Award of Contracts Contracts shall be awarded by the City Council to the lowest responsible bidder, except as otherwise provided in the City's Municipal Code. Tie Bids If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of re -advertising for bids, the City Council may accept the bid it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. Performance Bonds The department's purchasing officer shall have the authority to require a performance bond before entering into a contract in such amount as the department's purchasing officer shall find reasonably necessary to protect the best interests of the City. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids (refer to the City Municipal Code). Professional Services and Specialized Services 0 Contracts for specialized services and professional services by persons, firms, companies, or corporations shall be made subject to either the formal contract procedure or the open market procedure, except that there shall be no requirement to solicit bids. The department's purchasing officer may consider in addition to cost, the experience of the professional, the quality of work the processional has done, the ability of the professional to complete the project in a timely manner, and the insurance carried by the professional. For all professional and specialized service contracts, the standard Consultant Agreement shall be used and a separate "Scope of Work" attached. Once completed, these documents shall be submitted to the City Attorney for review and approval. Special Provisions A. Sole Source Purchases: A sole source purchase is one made from only one source of supply or a purchase for which no advantage can be gained through competitive bidding. Sole source purchases often arise because specifications and requirements for the purchase are so distinct that only one possible source can provide the purchase or meet established standards. This may be the case with replacement parts for brand name machinery, equipment, or .vehicles. However, it may also apply to a consultant whose skills are very unique to the requested task and has prior experience fulfilling that need with the City to accomplish the task with utmost efficiency. To be valid, the sole source must be the only reasonably known source of supply meeting the bona fide specification requirements. A sole source decision is not permitted merely upon the grounds that such approach is the most convenient or that the subject is preferred by the staff. B. Cooperative Purchases: Cooperative purchasing is used by municipalities in the purchase of goods and services. This arrangement offers the participants significant economies of scale. Although one municipality may issue specifications and receive bids, each entity independently executes its own contract, administers the procurement function, and finances the purchase. This is an acceptable practice that allows municipal agencies to "piggy -back" on contracts for services and supplies issued by a wide range of other governmental agencies. Cooperative purchasing agreements may be entered into with state, local governments, and non-profit entities. C. Emergency Purchases: The City is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the CEO the authority to waive any procedures in the Purchasing Guidelines that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. "Emergency Purchases" are those procurements required to prevent the immediate interruption or termination of necessary City services or to safeguard life, property or the public health and welfare. Contracts for Services Whenever directed by the City Council to obtain administrative, legal, accounting, or other professional or contractual services to be performed by a consultant, the CEO or his/her designees shall issue request for proposals (RFP) or obtain written request for qualifications (RFQ) from qualified persons authorized to perform the services. He/she shall obtain a sufficient number of proposals to insure that the cost thereof is consistent with the market. He/she shall thereafter select the lowest responsible proposal, based upon a performance or qualifications selection matrix, and offer the contract to the person. The City's NON -COLLUSION AFFIDAVIT- CONTRACTOR/PROFESSIONAL SERVICES PROVIDER (EXHIBIT A) is required to be attached to the proposed contract. Uniform Construction Cost Accounting Procedures In October 15, 2014, the City Council adopted Resolution No. 2014-038, A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Uniform Public Construction Cost Accounting Procedures in Accordance with Section 22000 to Section 22045 of the Public Contract Code. Public project – as defined by the California Public Contract Code, is a project for the construction, reconstruction, erection, alteration, renovation, improvement, demolition, painting, repainting, or repair of any publicly owned, leased or operated facility. When contracting for public projects, the contract is awarded to the lowest responsible bidder. Dollar Thresholds Value of Purchase— �....... _, PO Level of Agreement Purchase Method Required Approval Format Under - Written Yes CEO CEO approved $45,000 Quotes contract ...... $45,000- Informale.mm mee..�......�.. bid Yes CEO CEO approved $175,000 process contract Over ......_....,._.. Formal bide Yes City Council �..,,,....._.m_�� CEO approved $175,000 contract n Levels of Bidding Required 1. Force account, negotiations, or PO — public projects up to $45,000 2. Informal bidding procedures — public projects up to $175,000/CEO authority • Notice inviting bids must be mailed to construction trade journals • Notice can also be provided to list created by City for category or work to be bid • Notice can be sent to any other contractors or construction trade journal • If product/service is proprietary in nature, the City can limit notice to those contract(s) that can provide such product or service • Notices must be sent at least 10 days before the bids are due • If all bids exceed $175,000, Council may adopt resolution to award contract at $187,500 if it determines that City Cost estimate was reasonable. Otherwise rebid pursuant to formal bidding. • Award to lowest responsible bidder 3. Formal bidding procedures — public projects over $175,000 • Requires sealed bid procedure • NON -COLLUSION AFFIDAVIT -BIDDER OF A PRINCIPAL CONTRACT (EXHIBIT B) needs to be included in the bid package • Notice must state time and place for receiving and opening of sealed bids • Notice must be published at least 14 calendar days before opening of bid in newspaper of general circulation • Notice must be sent electronically to publications listed in the City's list at least 15 days before opening of bids • Additional notice may be provided • Award to lowest responsible bidder Information for Mailed Notice When submitting notices for bids for jobs, the following information should generally be included: • Project title and contract number if applicable • Cost range • Location of site • Who is taking bids — i.e., City of Baldwin Park Public Works Department • Date and time bids are due • Contact address, phone, and e-mail • Architect's/Engineer's address and phone number if applicable • Brief description of work to be done 0 • Location where plans may be obtained and if deposit is required/refundable • Percentage of bid bond/percentage of performance bond/percentage of payment bond Use of Force Account City Council may reject any bids presented if prior to rejecting such bids it declares the project can be more economically performed by City employees and written notice is provided to apparent low bidder. 10 EXHIBIT A CITY OF BALDWIN PARK NON -COLLUSION AFFIDAVIT -BIDDER OF A PRINCIPAL CONTRACT To Be Executed By Each Bidder Of A Principal Contract STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ..._ being first duly sworn deposes and says that he is the w.._...... (sole owner, a partner, president, etc.) of . .. ............. —the party making the foregoing bid; that such bid is not made in the interest of or behalf of any undisclosed person, partnership, company, association, organization or corporation, that such bid is genuine and not collusive or sham, that said bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, or that anyone shall refrain from bidding, that said bidder has not in any manner, directly or indirectly sought by agreements, communication or conference with anyone to fix the bid price of said bidder or of any other bidder, or to fix the overhead, profit, or cost element of such bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract or anyone interested in the proposed contract; that all statements contained in such bid are true, and further, that said bidder has not, directly or indirectly, submitted his bid price, or any breakdown thereof, or the contents thereof, or divulged information or date relative thereto, or paid and will not pay any fee in connection, therewith to any corporation, partnership, company, association, organization, bid depository, or to any member or agency thereof, or to any other individual information or date relative thereto, or paid and will not pay any fee in connection, therewith to any corporation, partnership, company association, organization, bid depository, or to any member or agency thereof, or to any other individual, except to such person or persons as have a partnership or other financial interest with said bidder in his general business. Signed: Title: Subscribed and sworn to and before me this. ............. day of , zxxx. Seal of Notary EXHIBIT B CITY OF BALDWIN PARK NON -COLLUSION AFFIDAVIT- CONTRACTOR/PROFESSIONAL SERVICES PROVIDER To Be -Executed By Each Contractor/Professional Services Provider of a Principal Contract STATE OF CALIFORNIA COUNTY OF LOS ANGELES �mmmmm _ „mmITIT w„µµ__µWIT being first duly sworn deposes and says that he/she is the (sole owner, a partner, president, etc.) of the party making the foregoing proposal of services; that such proposal is not made in the interest of or behalf of any undisclosed person, partnership, company, association, corporation, organization or the City of Baldwin Park (the City) officials and employees or any member of their immediate family has a financial interest in the services, that such contract is genuine and not collusive or sham, that said contract does not have any advantage against the public body awarding the contract or anyone interested in the proposed contract; that all statements contained in such contract are true. Further, said contractor has read the City's.Purchasing Policies and Procedures and is in full agreement. Signed: Title: Subscribed and sworn to and before me this.- m day of , zxxx. Seal of Notary ATTACHMENT 2 City of Baldwin Park Credit Card/Gas Card and Other Charge Cards Policy and Procedures Effective March 7, 2018 Purpose: The purpose of this policy is to establish standards and procedures for the use of City issued credit cards (including gas card and other charge cards). City credit cards are used to provide an alternative method of payment for designated City officials and designated employees. This policy is developed to ensure that all credit cards issued under agreements with the City of Baldwin Park (the City) serve a legitimate business purpose and are adequately monitored by management for compliance. In an effort to facilitate the conduct of official City business and ensure that City officials are provided with the tools they need to serve the interests of the City, City Council Members and Department Heads and/or their designees are provided with a City credit card/gas card. The use of credit cards is to allow City officials and or their designee's access to an efficient and alternative means of payment for approved expenses. It is for the purpose of making authorized small -dollar purchases, securing reservations, paying travel expenses, and doing City business in the most efficient manner. The amount should be under $2,500 per transaction except for emergency use and within the credit line limit. The following City officials may be issued a City credit card: • Mayor and City Council Members • Chief Executive Officer • Chief of Police • Director of Community Development • Director of Finance • Director of Public Works • Director of Recreation and Community Services • Designees from the departments with the approval of Department Head and CEO • Gas card for police officers 1 Purchases Credit cards shall only be used to purchase goods or services for the official business of the City. Expenses charged to City credit cards must be actual, necessary, reasonable, and incurred in the performance of official duties for the specific benefit of the City. The following Purchases are NOT allowed: • Alcoholic beverage/tobacco products • Controlled substances e.g. prohibited & illegal drugs • Personal items or loans • . Purchases involving trade-in of City's property • Rentals (other than short-term autos) • Cash advances on credit cards • Employee meals and entertainments not related to City business (approved city events, workshop, training, conference). The following Purchases are NOT allowed except for emergency as stated in the City's Purchasing Policy and Procedures: • Equipment and upgrades over $2,500 • Construction, renovation/installation • Items or services on term contracts • Maintenance agreements • Telephone, related equipment, or services • Consultants, instructors, and speakers contracted by the City • Service/labor Procedures 1. Credit cards may be requested by approving officials or their designees for the prospective cardholders. The request must be in writing on the Credit Card Request Form. (EXHIBIT 1). Approval is required by the CEO, Finance Director and when necessary, the Department Director. 2. Authorized credit cardholders are determined by the CEO and department head/director. 3. Upon receiving an approved request to issue a new credit card, the Finance Department will return a memo to the new cardholder confirming their supervisor's request. 4. If approved and prior to receiving the credit card, the new cardholders will be required to sign the Cardholder Agreement (EXHIBIT 11) along with the copy of the Credit Card/Gas Card Policy and Procedures indicating they have read and 2 agree to comply and accept the terms of the City's Credit Card/Gas Card Policy and Procedures. 5. Credit cards are issued in the name of the City and the authorized cardholder. Any annual fee, if any, is charged to the cardholder's cost center/department. The cardholder will acknowledge the receipt of the credit card/gas card. 6. Credit card/gas card statements shall be reconciled with the vendor receipts/invoices and submitted to the Finance A/P on a timely basis to avoid late fee/penalty/interest charges. If statements are submitted for payment without sufficient time to make a timely payment, interest/penalty/interest, if any, will be charged to the cardholder's department. 7. Approving Officials (department director, Director of Finance and CEO) shall review purchases and invoices to ensure compliance with these procedures. 8. All requisitions submitted for credit card/gas payments shall be approved by appropriate management level and department director and CEO. 9. The claim for payment should include all receipts/invoices. a. Failure to submit adequate documentation within one (1) month may result in the City credit card being cancelled. b. Any charge not substantiated by a receipt will result in the cardholder reimbursing the City within one month. If no reimbursement is made to the City, the amount(s) may be deducted from individuals' payroll and credit card will be cancelled. c. On an exception basis, if an original receipt has been misplaced, the cardholder must attach a signed memo containing the date, vendor, amount, and nature of purchase. 10. In the case of meals and meeting (for the City business only) related expenses, each receipt must include: a. The name of all persons involved in the purchase. b. A description of the business purpose of the purchases, in accordance with the Internal Revenue Service regulations. 11. All credit cards statements shall be signed by the cardholder and the department director and CEO to attest to the accuracy and appropriateness of the transactions. Authorized officials and designees issued a credit card/gas card are responsible for its protection and custody and shall immediately notify the Director of Finance if the credit card/gas card is lost or stolen. P Termination of Cardholder Accounts Upon termination of employment with the City, Cardholder accounts will be immediately closed. Credit card/gas card will be collected during the Exit interview process with Human Resources. Human resources will forward the credit card/gas card to the Finance Department and the termination date for credit card payment purposes. Cardholder shall report any pending charges as of the surrendering of the card and shall assert that they have reported all charges. Returns In the event of returned merchandise or other credits, cardholders must check subsequent statements for credit and attach the credit slip to the statement when submitting the statement for payment. If a credit slip was not obtained, other documentation explaining the return should be attached. If credit does not appear by the second subsequent statement, the cardholder should contact the Bank/Merchandise Holder. Lost or Stolen Cards It is the responsibility of the card holder to report lost or stolen immediately by calling the Bank/Merchandise Holder, and notify the approving official (department director) and the Finance Department immediately. If not reported immediately, the City may be liable for fraudulent charges, which will be charged to the cardholder's department. Procurement Accounting Controls A current list of credit cards/gas cards, authorized users, and credit limits shall be kept on file by the individual department and the Finance Department. Internal Accounting Controls A current list of all credit card/gas, authorized users, and credit limits shall be kept on file. The credit card is to be used only to make purchases for the legitimate business of the City and must be used in accordance with the provisions of the credit card policy and procedures and purchasing policy and procedures established by the City. The respective directors and/CEO are responsible for the review of purchases and invoices to ensure compliance with the City's policies and procedures. Credit card/gas card payments will be charged to the appropriate City Council or department budget and should not exceed the approved annual line item allocations. 4 CITY OF BALDWIN PARK CREDIT CARDS (INCLUDE GAS CARD and OTHER CHARGE CARDS) REQUEST FORM Date: To: Director of Finance From: Type of Card: For/User: Department Describe the purpose, justification, and importance of the requested credit/gas card: Department Director Signature Date CEO Signature Date EXHIBIT I CITY OF TIALDWIN PARK CARDHOLDER AGREEMENT I, _ , hereby acknowledge receipt of the following credit card and/or gas card: of credit card Credit c (Type ) ( and and/or gas card number) I understand that improper use of this card may result in disciplinary action, as outlined in the City of Baldwin Park (the City) Personnel Rules, as well as personal liability for any improper purchases. As a cardholder, I agree to comply with the terms and conditions of this agreement, including the attached Credit Card Policies and Procedures. I acknowledge receipt of said Agreement and Policies and Procedures and confirm that I have read and understand the terms and conditions. I understand that by using this card, I will be making financial commitments on behalf of the City and that the City will be liable for any official business charges to the credit card/gas card company made on this card. I will strive to obtain the best value for the City when purchasing merchandise and/or services with this card. As a cardholder of the City's credit card/gas card, I agree to accept the responsibility and accountability for the protection and proper use of the card, as stated above. I will return the card to the Director of Finance, upon demand, during the period of my employment. I further agree to return the card upon separation of employment. I understand that the card is not to be used for personal purchases. If the card is used for personal purchases, the City will be entitled to reimbursement from cardholder of such purchases. The City shall be entitled to pursue legal action, if required, to recover the cost of such purchases, together with costs of collection and reasonable attorney's fees. Signature: Date: Cardholder EXHIBIT II City of Baldwin Park Travel Policies and Procedures Effective March 7, 2018 I. Purpose ATTACHMENT 3 This policy is designed to establish guidelines for fair and reasonable allowances for the City of Baldwin Park (the City) officials and employees while traveling including overnight stay on official City business. This policy shall not apply for commuter (local) training seminars and local City business expenses, nor is it intended to supersede P.O.S.T. reimbursable travel policies established by the State of California. The governing rule for all City travel expenses shall be availability, economy, convenience, and propriety. II. Policy • The City shall provide reimbursement for expenses directly related to attendance at approved conferences, seminars, meetings, and other, official functions/purposes. • Official travel is planned, budgeted, approved, and controlled at the Department level, except in specific cases. • Authorized travel approved in the annual budget requires no further approval beyond the department level, if, however, it becomes apparent that the total travel cost will exceed the adopted budget; the approval of the Director of Finance and/or the CEO must be obtained. • Unbudgeted, unplanned travel requests shall be submitted by the Department Head to the Director of Finance who will forward the request to the CEO for approval. Such requests shall include written justification for the following a) the differences of the travel request and the budget; b) the reasons why the unbudgeted travel is necessary for the Department's operations. This will include a list of travel expenses and a "Request for Special Budget Appropriation", if necessary. • All employees must have the Travel Authorization and Expenditure Report (Exhibit 1) completed and authorized by their Department Head. All out-of-state travel requires CEO's approval prior to traveling. • All City's authorized travel is paid directly by the City or reimbursed to the traveler based in actual, itemized expenses or should be covered by the IRS per diem rate. 1 Travel Authorization and Expenditure Report is due within 30 days of travel to Finance. Failure to submit the completed report within 30 days of the travel date may forfeit all reimbursable travel expenses; if submitted beyond the 30 -day time limit, special circumstances with a written explanation to the Director of Finance is required for the late submission before the travel expense reimbursement request is processed. III. Procedures — Reimbursement Requirements All travel related expenses is to be paid by the City officials and employees and submitted for reimbursement according to the following categories and guidelines: A. Airfare The most economically available air coach fare will be considered a standard practice, in as much as air travel is usually more economical in time and money than other modes of transportation when making long distance trips. Round trip tickets shall be purchased when practical and more economical. B. Train Travel The use of alternate forms of transportation, such as rail, shall be utilized as a form of transit unless the cost of such service is greater than travel in a personal or city vehicle or the use of such service is impractical. C. Car Rental Use of a rental vehicle shall receive prior approval by the Department Head or CEO. Guidelines to follow when renting cars: (a) Economy models must be rented unless more than two persons are travelling together. (b) When two or more employees are travelling, they should rent the most economical vehicle available. (c) Gasoline charges by the rental company are not reimbursable. (d) Rental cars should be returned to the original rental location in order to avoid costly drop-off charges. (e) Upgrades are not reimbursable. D. Mileage Reimbursement for Transportation Compensation in the form of mileage reimbursement will be paid to individuals for use of their private vehicle in lieu of a fixed monthly allowance when appropriate. Mileage reimbursement would be based upon actual miles driven and must also have the approval of the Department Head, or CEO. City officials who have the City vehicle or receive mileage allowance are not entitled to mileage reimbursement. Mileage reimbursement shall be based on IRS rate. E. Mileage Reimbursement for Travel Use of personal cars for out -of -City travel must be approved when the job duties does not require routine travel. When personal automobiles are approved as a mode of travel, reimbursement will be made based on the IRS rate if the distance traveled is business related. The distance shall be calculated based on the shortest distance from the City Hall or employee's primary residence, to the point of destination whichever is less. Additionally, gas or other transportation related costs shall not be reimbursed when mileage reimbursement is utilized. When personal automobiles are approved, the total allowance for the transportation shall not exceed the cost of the most economically available air coach passage if such services are available, except that when more than one individual (not including family members) travel in a single car, the maximum limit for reimbursement will be equal to the sum of their equivalent air fares. Travel in City vehicles may be approved when circumstances warrant it. When traveling in a City vehicle, receipts should be secured for the purchase of gas, oil, and other supplies, if necessary. These amounts should be shown on the expense report, with the notation that a City vehicle was used, indicating the vehicle tag number. Individuals who receive an auto allowance shall not receive additional reimbursement for use of their personal automobile during travel and are not eligible to utilize a City vehicle unless traveling more than 50 miles one way from Baldwin Park City Hall or the employee's primary residence to the point of destination, whichever is less. F. Telephone/Fax/Internet/Cellular Phone Charges Telephone and facsimile charges will be allowed only for official City calls and facsimiles. Expenses incurred for use of internet services are not reimbursable unless approved by the Department Head. Employees receiving reimbursement for use of internet services are expected to use the most economical method available, avoiding long-distance telephone charges, excessive on-line time, Wi-Fi, roaming, etc. G. Taxi/Shuttle/Public Transportation/Rapid Transit City officials and employees should evaluate their individual circumstances and select the safest, most economical alternative when traveling to and from all destinations. Transportation to and from the airport (or other type of transportation centers) should be accomplished by utilizing a hotel van or some other general shuttle service. A taxi may be utilized when the cost of a shuttle is higher than the taxi to the destination or when shuttle services are unavailable. A car may be rented when a taxi or shuttle service is more expensive or when the City officials or employees must be at several different business locations that are not located near the hotel accommodations. H. Registration Fees Fees charged for registration at any convention or meeting are reimbursable with prior approval and shall be submitted on a Direct Payment Request form as well as on a Travel Authorization and Expenditure Report shall be reimbursed and paid directly by the City. I. Per diem Day Trips: Internal Revenue Code (IRC) 162(a) states that meal expenses reimbursed by an employer to an employee for travel away from home for less than 24 hours where no overnight stay is required, represent taxable and reportable income; therefore, the City will not reimburse for any meals on trips lasting less than 24 hours. Overnight Stay: Expenses for meals, tips, and incidentals will be reimbursed on a per diem based on the current per diem rate schedule from IRS. The per diem rate for the first and last travel day will be 75% of the IRS allowable amount. In cases where the travel period must be extended and a per -diem has already been issued, a Direct Payment Request form must be submitted for per -diem to be paid for the additional travel days. No meal allowance is provided for local travel, with the exception of travel away from the normal work are for more than a 12 hour period. In such cases, the employee is entitled to 75% of the prescribed meals and incidental expenses J. Lodging Reimbursement for hotel accommodations shall be provided for multi -day approved travel provided that it is greater than 50 miles away from the City Hall or the employee's primary residence (whichever is less) exceptions may be made for special circumstances when approved by the CEO and the Department Director. For one -day seminars, conference, or other travel, hotel accommodations are not reimbursable unless approved in advance by the CEO and appropriate due to the location or event schedule. Hotel accommodations should be appropriate to the purpose of the trip. Individuals are expected to use good judgment in the selection of lodging accommodations offering competitive rates. The City does not reimburse for lodging if the employee wishes to say one day after the conference has been completed in the Pacific Time Zone. If the conference is in the Mountain, Central or Eastern Time Zones, the employee may travel the day after the conference has been completed. The hotel in which the individual decides to stay should be located within walking distance to the place of business, where possible, in order to minimize the need for transportation, rental car, bus, trolley, etc. 4 TRA VEL AUTHORIZATION and EXPENDITURE REPORT CITY OF BALD WIN PARK EMPLOYEE NAME DEPARTMENT/DIVISION FUND/COST CENTER/PROJ. # DATE See below Purnost/Justificati on (nrcludc name of daws, location, and if budgeled) .. .... ....... CONFERENCE/REG, LODGING AIR FARE/MILEAGE N -A DIEM TOTAL EST. EXPENSE EMPLOYEE'S SIGNATURE I DATE TRA VEL A UTHORIZA TION $0.00 $0.00 $0.00 TOTAL AD V, REQUESTED $0.00 TRAVEL AUTHORIZATION APPROVALS DEPT./DIV. HEAD SIGNATURE I DA—TE [ CITY MANAGER'S SIGNATURE EXPENSE REPORT DEscRjyr1(',1N EDUC./FRAINING MTG! CONF./REG/ Lt: DGINO AIR FARE/MILEAGE PER DIEM 60 TOTALS $0.00 1 $0.00 1 $0.00 I acknowledge that this request is for the reimbursement of expenses incurred during the conduct of authorized City business and that all advances and allowances have been accounted for on this statement. Furthermore, travel expenses incurred were authorized by the CEO as required. Signatures Date Emp,/Council Member Dept./Div. Head City Manager EXHIBIT 1 I 01311 . TOTAL SUPPLIES OTHER $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1 $0,00 $0.00 ATTACHMENT 4 City of Baldwin Park Policy and Procedure for Federal Awards Administration Effective March 7, 2018 Grant Administration The purpose of this policy is to establish procedures for administrating federal awards within the guidelines. These guidelines include: general concepts and framework for seeking and managing grant programs; identify roles and responsibilities in managing grant programs; and set policy in complying with Single Audit Act requirements. The City of Baldwin Park (the City) does not have a centralized grants department, therefore it is the responsibility of each department obtaining a grant to care for and be familiar with all grant documents and requirements. If a grant is Federal, the department should immediately notify the Director of Finance for inclusion in the City's Single Audit. For the purpose of this policy, "Program Director" applies to the individual within a given department who will be responsible for the grant, and the "Administrator" applies to the federal grant agency. 1. Grant Development, Application, and Approval a. Legislative i�aive A rov�al — Once the grant plan is developed and the application is filed with the granting agency, legislative approval is required. If such legislative approval is not specifically required by the written terms of the grant, then the Department Director may, at his or her discretion, approve grant applications. In this case, a copy of the application shall be sent to the Administrator's office. If an award is given, a copy of the signed agreement shall also be furnished to the Administrator's office and the City's Director of Finance. (Electronic copies are preferable). b. Matching Funds — Grants that require City matching funds must be coordinated with the Administrator's office. Available funds must be identified within the existing budget. Budget adjustments can also be required for the match. Depending on the nature of the grant, further discussion and long-term planning must be done before applying for a grant. For example, when a grant establishes a level of service that cannot be maintained once the grant funds are depleted, there must be careful planning before applying. c. Grant Buds — The granting agency requires the submission of an expenditure budget for most grants. The department head should review this requirement prior to submission and provide the personnel. All related cost projections should be given to the City's Director of Finance for the budget preparation. 2. Grant Program Implementation a. Notification and Acce tance of an Award — Official notification of a grant award is typically sent by a funding agency to the program director and/or other designated officials in the original grant proposal. However, the authorization to spend grant funds is derived from the City Council and/or the Board members through the approval of a grant budget. This is done with the adoption of the Government - wide operating budget, as the grant budget is a component of such. b. Establishment of Accounts — The department that obtained the grant will provide the Administrator's office with information needed to establish revenue and expense accounts for the project. Ordinarily, this information will include a copy of both a summary of the project and the budget. C. PUrchasinq Guidelines — All other Government purchasing and procurement guidelines apply to the expenditure of grant funds. The use of grant funds does not exempt any purchase from the City's purchasing requirements. All typical paperwork and bidding requirements apply. All required staff approvals apply. When in doubt, the Program Director should contact the Administrator's office for further assistance. 3. Financial and Budgetary Compliance a. Monitoring Grant Funds — The financial software, Tyler Incode 10, is considered to be the City's "official" accounting system. Ultimately, the information in this system is what will be audited and used to report to governing boards. Program Directors shall use inquiries and reports generated directly from the accounting system to aid in grant tracking. If any "off -system" accounting records are maintained, it is the responsibility of the Program Director to ensure that the program's internal records agree to the City's accounting system. Departments may use some internal mechanism (such as a spreadsheet) to monitor grant revenues, expenditures and budgetary compliance. However, all such financial information will also be recorded and maintained in the City's accounting system. b. Fiscal Year — Occasionally, the fiscal year for the granting agency will not coincide with the City's fiscal year. This may require adjustments to the internal budget accounts and interim financial reports as well as special handling during fiscal year- end close. It is the responsibility of the department head to oversee their grant budgets within his/her department and to bring any discrepancies to the attention of the Administrator and Director of Finance immediately. c. Grant Buds is — When the accounting structure for a grant is designed, it will include the budget that was prepared when the grant application was submitted. The terms of each specific grant will dictate whether any budget transfers between budgeted line items will be permitted. In no case will the Program Director be 2 authorized to exceed the total budget authority provided by the grant. If grant funds have not been totally expended by fiscal year-end, it is the responsibility of the Program Director to notify the Director of Finance that grant budget funds need to be carried forward to the new fiscal year, and to confirm the amounts of such carry -forwards. This can be done during the City's normal annual budgeting process. Carry -forwards of grant funds will be subjected to maximum allowable amounts/percentages based on the grant award agreement and/or the Uniform Guidance Compliance Supplement. d. vital Assets — The City is responsible for maintaining an inventory of assets purchased with grant monies. The City is accountable and must make them physically available for inspection during any audit. The Director of Finance must be notified immediately of any sale of these assets by the Program Director. Customarily, the proceeds of the sale can only be used on the grant program that purchased them. In most cases, specific governing regulations can be found in the original grant. The Program Director overseeing the grant will coordinate this requirement. All transactions that involve the acquisition or disposal of grant funded capital assets must be immediately brought to the attention of the Director of Finance. 4. Record Keeping a. Audit "work Pam-- The City's external auditors audit all grants at the end of each fiscal year. The department who obtained the grant will prepare the required audit work papers. These will then need to be sent to the Director of Finance within a reasonable time following year end. The Finance department will maintain copies of all financial related grant documents. b. Record lee i'n Fie uirernents — Grant record keeping requirements may vary substantially from one granting agency to another. Consequently, a clear understanding of these grant requirements at the beginning of the grant process is vital. The Program Director within a department applying for a grant will maintain copies of all grant draw requests, and approved grant agreements (including budgets). The Finance department will maintain copies of all financial related grant documents. Uniform Guidance Compliance Supplement - General Information Please see the City's Code of Ordinances and/or Policies on the City of Baldwin Park website for a full listing of policies. Uniform Guidance Compliance Supplement - Activities Allowed/Un-allowed and Allowable Costs/Cost Principles The requirements for allowable costs/cost principles are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions or the award. In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: All grant expenditures will be in compliance with the Uniform Guidance, State law, City Government policy, and the provisions of the grant award agreement will also be considered in determining allow ability. Grant funds will only be used for expenditures that considered reasonable and necessary for the administration of the program. 2. Grant expenditures will be approved by the Program Director and Department Head when the bill or invoice is received. The terms and conditions of the Federal Award will be considered upon approval. Accounts payable disbursements will not be processed for payment until all necessary approval has been obtained. 2. Payroll costs will be documented in accordance with the Uniform Guidance. Specifically, compensation for personal services will be handled as set out in §200.430 and compensation for fringe benefits will follow §200.431 of the Uniform Guidance. Uniform Guidance Compliance Supplement - Cash Management Source of Governing, Requirements — The requirements for cash management are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions or the award. In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: 1. Most of the City's grants are awarded on a reimbursement basis. As such, program costs will be expended and disbursed prior to requesting reimbursement from the grantor agency. If Federal grant funds are received first, time must be minimized for the elapse between receipt of Federal funds and disbursement to contractors/employees/sub-recipients according to §200.302 (6) of the Uniform Guidance. 2. Cash draws will be initiated by the Program Director who will determine the appropriate draw amount. Documentation of how this amount was determined will be retained. Payments and travel costs will be handled in a manner consistent with the City's existing Purchasing and Travel Policies and Procedures in accordance with §200.305 (payments) and §200.474 (travel costs) of the Uniform Guidance. 3. The physical draw of cash will be processed and recorded in the City's accounting system as prescribed by the grant agreement. 4. Supporting documentation or a copy of the cash draw paperwork will be filed along with the approved paperwork described above by the Finance Department and the grant receiving department. The paperwork will be retained for audit purposes. 4 Uniform Guidance Compliance Supplement - Eligibility Source of Governing Requirements — The requirements for eligibility are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Additional Policies and Procedures The following policies and procedures will also be applied, to the extent that they do not conflict with or contradict the existing City/Board policies. 1'. Federal grants will only benefit those individuals and/or groups of participants that are deemed to be eligible. 2. Initial eligibility determinations will be made by the Program Director based on the grant award/contract. Sufficient documentation to support these determinations will be retained and made available to administration, auditors, and pass-through or grantor agencies, upon request. It is the receiving grant department's responsibility to maintain complete, accurate, and organized records to support eligibility determinations. Uniform Guidance Compliance Supplement - Equipment and Real Property Management Source of Goverr�ing Re uirements — The requirements for equipment are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Additional Policies and Procedures. The following policies and procedures will also be applied, to the extent that they do not conflict with or contradict the existing policies. In order to ensure compliance with these requirements, The City has implemented the following policies and procedures: 1. All equipment will be used in the program for which it was acquired through Federal grants. 2. When required, purchases of equipment will be pre -approved by the grantor or pass-through agency. The Program Director will be responsible for ensuring that equipment purchases have been previously approved, if required, and will retain evidence of this approval. 3. Property/Equipment records will be maintained by the Finance department. A physical inventory shall be taken every two years, and an appropriate system shall be used to safeguard assets. 4. When assets with a current per unit fair market value of $5,000 or more are no longer needed for a Federal program, a request for written guidance shall be made from the grantor agency as to what to do with the property/equipment prior to sale or relocation. The City shall abide with the requirements set out in §200.311 and §200.313 of the Uniform Guidance in this regard. If a sale will take place, proper procedures shall be used to provide for competition to the extent practical and result in the highest possible return. Uniform Guidance Compliance Supplement - Matching, Level of Effort and Earmarking Source of Governina IPe uirements — The requirements for matching are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for level of effort and earmarking are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The City defines "matching", "level of effort", and "earmarking" consistent with the definitions of the Uniform Guidance Compliance Supplement: 1Mr'lgtgh 2g or cost sharing includes requirements to provide contributions (usually non - Federal) or a specified amount or percentage of match Federal awards. Matching may be in the form of allowable costs incurred or in-kind contributions (including third -party in-kind contributions). .Level of effotf includes requirements for (a) a specified level of service to be provided from period to period, (b) a specified level of expenditures from non -Federal or Federal sources for specified activities to be maintained from period to period, and (c) Federal funds to supplement and not supplant non- Federal funding of services. EarMt.kog includes requirements that specify the minimum and/or maximum amount of percentage of the program's funding that must/may be used for specified activities, including funds provided to subrecipients. Earmarking may also be specified in relation to the types of participants covered. In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: Compliance with matching, level of effort, and earmarking requirements will be the responsibility of Program Director. 2. Adequate documentation will be maintained to support compliance with matching, level of effort, and earmarking requirements. Such information will be made available to administration, auditors, and pass-through or grantor agencies, as requested. Uniform Guidance Compliance Supplement - Period of Performance Source of_Qpy@minq Requirements — The requirements for period of performance of Federal funds are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. 6 In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: 1. Costs will be charged to the grant award only if the obligation was incurred during the funding period unless pre -approved by the Federal awarding agency or pass-through grantor agency. 2. All obligations will be liquidated no later than 90 days after the end of the funding period or as specified by program legislation. 3'. Compliance with period of performance requirements will initially be assigned to the Program Director. All A/P disbursements are subject to the review and approval of the Program Director and Department Head. Uniform Guidance Compliance Supplement - Procurement, Suspension and Debarment Source of Governing Requirements — The requirements for procurement are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for suspension and debarment are contained in OMB guidance in 2 CFR part 180, which implements Executive Orders 12549 and 12689, Debarment and Suspension; Federal agency regulations in 2 CFR implementing the OMB guidance; the Uniform Guidance; program legislation; Federal awarding agency regulations; and the terms and conditions of the award. In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: 1. Purchasing and procurement related to Federal grants will be subject to the City's Purchasing Policy and Procedure. 21. Contract files will document the significant history of the procurement, including the rationale for the method of procurement, selection of the contract type, contractor selection or rejection, and the basis of contract price. 3. Procurement will provide for full and open competition. 4. No City officials, employees, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has, a real or apparent conflict of interest. Such a conflict of interest would arise when City officials, employees, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. City officials, employees, and agents can neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to 7 subcontracts. If the financial interest is not substantial or the gift is an unsolicited item of nominal value, no further action will be taken (refer to City's Purchasing Policy and Procedure). Disciplinary actions will be applied for violations of such standards otherwise. 5. The City will avoid acquisition of unnecessary or duplicative items. Consideration will be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will also analyze other means, as described in §200.318 of the Uniform Guidance, in order to ensure appropriate and economic acquisitions. 6. The City is prohibited from contracting with or making sub -awards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. "Covered transactions" include those procurement contracts for goods and services awarded under a non -procurement transaction (i.e., grant or cooperative agreement) that are expected to equal or exceed $20,000 or meet certain other specified criteria. All non -procurement transactions (i.e., sub -awards to subrecipients), irrespective of award amount, are considered covered transactions. 7. The City will include a suspension/debarment clause in all written contracts in which the vendor/contractor will certify that it is not suspended or debarred. The contract will also contain language requiring the vendor/contractor to notify the City immediately upon becoming suspended or debarred. This will serve as adequate documentation as long as the contract remains in effect. 8. The Program Director or designee will be responsible for a year-to-date transaction report from the City's accounting system. Any vendor with accumulated transactions equaling or exceeding $20,000 that is not subject to a written contract including a suspension/debarment clause or for which a signed statement or suspension or debarment is not on file will be subject to additional procedures. The Program Director or designee will check the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) for the vendor name. A potential match will be followed-up immediately. Each vendor searched on EPLS will be initialed on the vendor transaction report and the report will be signed and dated on the first or last page. The vendor transaction report will be retained as evidence of the control. 9. If a vendor is found to be suspended or debarred, the City will immediately cease to do business with this vendor. 10. Executed contracts and signed quarterly vendor transaction history reports will be retained and filed by the Program Director. Uniform Guidance Compliance Supplement - Program Income Source of Governina Requirement — The requirements for program income are found in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. In order to ensure compliance with these requirements, the City has implemented the following policies and procedures: Program income will include (but will not be limited to): income from fees for services performed; the use or rental of real or personal property acquired with grant funds; the sale of commodities or items fabricated under a grant agreement; and payments of principal and interest on loans made with grant funds. It will not include interest on grant funds unless otherwise provided in the Federal awarding agency regulations or terms and conditions of the award. 2. The City will allow program income to be used in one of three methods: a. Deducted from outlays b, Added to the project budget c. Used to meet matching requirements Absent specific guidance in the Federal awarding agency regulations or the terms and conditions of the award, program income shall be deducted from program outlays. 3. Program income, when applicable, will be accounted for as a revenue source in the same program code used in the City's accounting system as the Federal grant. Uniform Guidance Compliance Supplement — Reporting Source of Govern1p Re uirements — Reporting requirements are contained in the following documents: Uniform Guidance, Performance reporting; 2 CFR section 215, Performance reporting; 2 CFR section 215.51; program legislation; ARRA (and the previously listed OMB documents and future additional OMB guidance documents that may be issued); the Transparency Act; implementing requirements in 2 CFR part 170 and the FAR; and previously listed OMB guidance documents; Federal awarding agency regulations; and the terms and conditions of the award. In order to ensure compliance with these requirements, City has implemented the following policies and procedures: 1. Reports will be submitted in the required frequency and within the required deadlines. 2, Reports will be completed using the standard forms (as applicable) and method of delivery (i.e., email, grantor website, postal service, etc.). 1 Regardless of the method of report delivery, a copy of the submitted report will be retained along with any documentation necessary to support the data in the report by the granting department. The report will evidence the date of submission in order to document compliance with timeliness requirements. This may be done either physically or electronically. 4, Financial reports will always be prepared based on the general ledger using the required basis of accounting (i.e., cash or accrual). In cases where financial data is tracked outside of the accounting system (such as in spreadsheets or paper ledgers), this information will be reconciled to the general ledger prior.to report submission. 5. Any report with financial -related data will either be prepared or reviewed by the Program Director and the Assistant Accounting Manager and/or Director of Finance based on specific grant guidelines. 6. Preparation of reports will be the responsibility of Program Director and the Accountant. All reports (whether financial, performance, or special) , must be reviewed and approved by the Director of Finance (as applicable) prior to submission. This will be evidenced by either physical signatures or electronic timestamps of approval. 7. Copies of submitted reports with preparer and reviewer signatures and data will be filed with supporting documentation and any follow-up correspondence from the grantor or pass-through agency. Copies of all such reports will be made available to administration, auditors, and pass- through or grantor agencies, as requested. Uniform Guidance Compliance Supplement — Subrecipient Monitoring Source of Governin Re uirements — The requirements for subrecipient monitoring are contained in 31 USC 7502(f) (2) (B) (Single Audit Act Amendments of 1996 (Pub. L. No, 104-156)); Uniform Guidance, program legislation; 2 CFR parts 25 and 170, and 48 CFR parts 4, 42, and 52 Federal awarding agency regulations; and the terms and conditions of the award. The City (Program Director) will review and oversee subrecipient activity and obtain a copy of their single audit. Other oversight processes and procedures will be established on a case by case basis, depending on grant requirements and the level of activity of the sub -recipient. Uniform Guidance Compliance Supplement - Special Tests and Provisions Source of Governinq Requirements — The laws, regulations, and the provisions of contract or grant agreements pertaining to the program Additional Policies and Procedures. The following policies and procedures will also be applied, to the extent that they do not conflict with or contradict the City's policies. In order to ensure compliance with these requirements, City has implemented the following policies and procedures: 10 The Program Director will be responsible for identifying compliance requirements for special tests and provisions, determining approved methods for compliance, and retaining any necessary documentation. Uniform Guidance Compliance Supplement — Time and Effort Reporting Source of Governing„ l eQUirements — As a recipient of federal funding, the City is required to comply with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Policy Statement: 1. Each employee whose time is committed to a federally sponsored program is required to complete a time and effort report (timesheet) stated the name of the grant/program. 2. The City will use an "after -the -fact -effort" reporting system. This indicates that the distribution of salaries and wages will be supported by time and effort reports (timesheet). 3. Time and effort reporting shall reasonably reflect the percentage distribution of effort expended by the City employees involved in federally funded grants. These reports shall reasonably reflect the activity for which the employee is compensated and shall include all activities an integrated basis. Time and effort reports must represent, in percentage totaling 100%, a reasonable estimate of an employee's effort for the period reported. 4. The Finance Department is responsible for the distribution, collection, and retention of copies of all time and effort reports (timesheets). Procedures: The Program Director will identify and determine the particular employees that are required to complete a time and effort based on the appropriation and approved grant budget. The determination should be in accordance with the grant budget submitted to the grantor. 2. City employees receiving a time and effort report shall complete with the actual percentages of effort for the given period. They will sign the effort report to verify and obtain the manager's signature. 3. The federal grant program distribution of wages/salaries for each employee should be supported by the time and effort report which includes the actual effort and the following: 11 • Employee Name • Payroll Period • Location • Grant Name(s)/Fund#/Project# • Payroll job code allocation number(s) • Total hours paid during the pay period. Reports must account for all of the employee's hours. This means total hours during the pay period which includes the regular, overtime, sick, vacation, holiday, and/or any other hours reported during the pay period. • Hours worked during the pay period for each grant project, program or non- federal activity. The report must reflect an "after -the fact" distribution of the actual employee's hours. This means the number of hours worked on each program if the employee worked on multiple programs. • Supervisor/Program Director signature. The supervisor having first-hand knowledge of the work performed by the employee will sign -off on the time and effort report. 4. Each time and effort report shall be accompanied with documentation that provides evidence of effort throughout the time and period of the report. 5. All employees must sign their own individual time and effort report. In addition, the Program Director must review, verify and sign or approve electronically all effort reports and must be submitted to the Department Head for approval and to the Finance Department. 6. Any salary reallocation or adjustments resulting from time and effort reports will be made as determined between the Finance Director and Program Director. 7. Evidence of salary reallocations (budget revisions) must accompany a modified time and effort report. 8. The Granting department and Finance department will incorporate the time and effort reports in the grant file and retain them for compliance purposes. These reports should be completed in a timely manner and must be made available for audit. 12 ATTACHMENT 5 City of Baldwin Park ACH and Wire Transfer Policy and Procedures Effective March 7, 2018 Purpose This policy is to establish guidelines for ACH and wire transfer policy and procedures for the City of Baldwin Park (the City) to have effective check and balance, internal control, prevent irregularities, and promote financial soundness of the City. ll. Procedures AC H.,fQL Payro l 1. 2. 3. 4. 5. 6. 7. Payroll Timesheets are prepared by the employees and submitted to the supervisor and department head for approval. Senior Finance Clerk (Payroll) receives, reviews, and verifies hours entered in the payroll system. Finance does not have access to enter or modify pay rates and benefits. The payroll system will generate an edit report. The edit report is reviewed by Senior Finance Clerk (Payroll) and verified by other Senior Finance Clerk prior to finalizing the payroll. A payroll ACH file and ACH register report are created and sent to the Assistant Accounting Manager and Director of Finance for review and approval. The Assistant Accounting Manager or the Director of Finance will send the payroll ACH file and ACH register report to the Accountant/Management Assistant for processing. The Accountant/Management Assistant will upload the payroll ACH file to the bank and confirm that the total in the file is equal to the total that was given by the Senior Finance Clerk. The Accountant/Management Assistant will make the transfer from the general bank account to the payroll account to fund the payroll ACH after the approval of the Assistant Accounting Manager/Director of Finance. ❖ The Accountant and the Management Assistant do not have access to enter and process payroll. The Assistant Accounting Manager and Director of Finance only have access for review and approval but do not have access to enter payroll nor process ACH transfer. Wire Transfers 1. Wire Transfers are for debt service payments to the fiscal agent/trustees and for the employee contributions to ICMA and Nationwide for the 457 retirement plans, Nationwide and Wageworks for health savings accounts. Wire transfer is also used for City investments for sending funds to LAIF and City's authorized banks and financial firms. 2. Debt service payments to the trustee occur twice a year. The invoice is sent to the Finance Director for review and approval. The invoice is then given to the Accountant to create the wire transfer on the Bank's online system. 3. 457 Retirement wire transfers occur twice a month and done by using a template create on the Bank's online system. 4. Recurring transfers (i.e. bond payments) are made by using a template setup by the Accountant. The template defines the payee, banking information, and limited amounts that can be transferred based on the payment due with supporting documentation. The template and any changes are required approval from the Assistant Accounting Manager or the Director of Finance. 5. Non-recurring wire transfers are made by using a Free Form Wire Transfer setup by the Accountant with the payee, banking information, and actual amount that can be transferred based on approved supporting documentation after reviewed and approved by the Assistant Accounting Manager or the Director of Finance. 6. The Assistant Accounting Manager or the Director of Finance will review and approve the bank online file to verify the amount prior to the wire transfer. The Accountant will provide the wire transfer confirmation along with the invoice to the Assistant Accounting Manager or the Director of Finance for final review and approval signature prior recording the transfer to the Cash Transfer Log. 7. All ACH/Wire transfer requests are required to submit with the WIRE/ ACH TRANSFER REQUEST/AUTHORIZATION Form (see Exhibit A attached) to the Assistant Accounting Manager or the Director of Finance for review and approval. ❖ The Assistant Accounting Manager and Director of Finance only have access for review and approval but do not have access to initiate and modify the ACH and wire transfer. 0 CITY OF BALDWIN PARK WIRE/ ACH TRANSFER REQUEST/AUTHORIZATION DATE/TIME TRANSFER NEEDS TO BE MADE TRANSACTION NAME DOLLAR AMOUNT TO BE TRANSFERRED TRANSFER FROM TRANSFER TO VENDOR BANK VENDOR# ABA NO. ADDRESS ACCT NO. BANK ABA NO, ACCT NO, GL ACCT # GL ACCT # GL ACCT # GL ACCT # GL ACCT # GL ACCT # WIRE INFORMATION DATE OF WIRE: CONF#: AP#: PAY PERIOD: PAY ENDING: PAY DATE: NAME DATE PREPARED BY AUTHORIZED BY TRANSFER MADE BY AP PROCESSED BY Exhibit STAFF REP : W ' TO: FROM: ITEM NO. Honorable Mayor and City Councilmembers Gustavo Romo, Community Development Director Victor Viramontes, Economic Development Management Analyst DATE: March 7, 2018 SUBJECT: RENEWAL OF GRANT WRITING SERVICES CONTRACT WITH CALIFORNIA CONSULTING, LLC SUMMARY The purpose of this staff report is to renew the contract for a single consultant services agreement with California Consulting, LLC to continue seeking federal, state, and private grant funding opportunities for all City departments. California Consulting, LLC will provide services for all grant writing purposes including; discovery, research, unlimited grant writing and grant administration support. FISCAL IMPACT The cost to retain a grant writing consultant for a period of 12 months totals a maximum of $60,000 (at a retainer in the amount of $4,900 per month plus reimbursable items at a max rate of $100 per month). The cost will be appropriated from funds related to the grants applied for including but not limited to General Fund, Prop A Fund, or Future Development Fund. RECOMMENDATION Staff recommends the City Council: 1) Approve the Consultant Services Agreement with California Consulting, LLC; and 2) Authorize the Director of Finance to appropriate funds to cover the cost related to the grants applied for including but not limited to General Fund, Prop A Fund, or Future Development Fund; or 3) Provide staff direction. BACKGROUND In 2016, the City used the services of (2) two different grant writing firms to seek grant funding opportunities to support a variety of City programs, capital improvement projects and services. The California Consulting, LLC represented the (Public Works and Community and Economic Development) at a rate of $3,750 a month plus reimbursables at a max rate of $200 a month. While Del Sol Solutions, LLC represented the Police and Recreation and Community Services Departments at a rate of $4,500 a month plus reimbursables capped at $100 per month. Del Sol Solutions, LLC performed research and submitted a variety of grants for the Police and Recreation and Community Services Department during the service agreement time period. California Consulting, LLC was able to successfully secure a grant in the amount of $200,000. At their City Council meeting on September 7, 2016 staff presented City Council with a 6 -month update on the grant writing firms and requested direction to continue, modify, or end contract agreements with both firms. City Council determined that the contract agreement with Del Sol Solutions would not be considered to continue. California Consulting, LLC offered to represent the Recreation and Community Services and Police Departments becoming the sole grant writing firm representing all City departments at a rate of $4,900 per month plus reimbursables at a max rate of $100 per month. Grant Writing Services Contract with California Consulting, LLC March 7, 2018 Page 2 Subsequently, the City Council ratified the amended contract with California Consulting to pursue grants for all City departments at their November 16, 2016 City Council meeting. The direction of the City Council was to bring forth the service agreement with California Consulting, LLC for renewal. At the City Council meeting on January 18, 2017 City Council approved a new Consultant Services Agreement with California Consulting, LLC with an effective date of January 19, 2017 and a termination date of January 19, 2018. At the February 21, 2018 City Council meeting a new agreement was brought before Council to continue contracting with California Consulting but it was requested that the item be continued to the March 7, 2018 meeting. Staff is now bringing forth to City Council a new agreement with California Consulting, LLC for them to continue providing grant -related services. The terms of the agreement continue to be a 12 -month agreement for a monthly compensation of $4,900 per month plus reimbursable at a max rate of $100 per month for a total agreement amount of $60,000. Attached for City Council's review is California Consultant's "By the Numbers" report, which indicates an overall return on investment of 170%. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES The City Council may elect not to approve the Consultant Services Agreement with California Consulting, LLC. ATTACHMENTS #1 — California Consulting, LLC Agreement #2 — California Consulting, LLC "By the Numbers" report a Consultlnq\Cel Con Staff Report 3w7-18.doc GRANT WRITING SERVICES AGREEMENT DATED: March 7, 2018 PARTIES: California Consulting, LLC, A California Limited Liability Company (hereinafter the "Consultant"); and City of Baldwin Park (hereinafter the "Client") AGREEMENT: The undersigned hereby agree to the following terms and conditions: Section 1. Duties of C:onsultaA t: During the term of this Agreement, Consultant shall provide the Client as follows: a. Grant research, targeted grant research on projects specifically identified by the client, identification of funding opportunities, and grant writing at direction of Client; b. Offering Client general advice on matters involving funding mechanisms, grants research, identification, and writing; and c. Perform post -grant award administration on the grants which are awarded to the Client, including the filing of required documents by the proscribed deadlines set by the awarding entity. d. Services listed above will be provided for all departments within the City of Baldwin Park. Section 2. 'hinie for I'efforn:rance of Duties: Notwithstanding any other term or condition of this Agreement, Client specifically acknowledges that Consultant has other clients and/or outside employment. Consultant shall have control over the time and manner of performing its duties described in Section 1, and shall make available such time as it, in its sole discretion, shall deem appropriate for the performance of its duties under this Agreement. Section 3. Term of the A =�°ee'�ar�n�l: The effective date of this Agreement is March 7, 2018 and shall continue until March 7, 2019, at which time the Client has the option to continue the Agreement on a month to month basis allowing either party to discuss new terms at any time. If Client continues on a month to month basis, all terms of this contract are valid and is effect and a new Agreement is not required. Section 4. Con sensation: Client shall pay Consultant $4,900 per month as compensation for Consultant's services as described in Section 1. Consultant will provide Client with a written invoice. Client agrees to pay invoice within 30 (thirty) days of receipt. Section 5. , .wases: The Client agrees to reimburse the Consultant for reasonable out-of-pocket expenses related to performing services on behalf of the Client. Such expenses typically might include, but are not limited to, mileage, conference calls, copies, binding costs associated with grant application preparation, postage, parking, travel, and lodging expenses. Consultant will not request reimbursement for any expenses in excess of $100.00 each month, without written authorization from Client. Consultant shall provide Client with a description and supporting documentation for expenses with the invoice. Section 6. Relataonshi .7: Consultant shall perform its services hereunder as an independent contractor and not as an employee of the Client or an affiliate thereof. It is expressly understood and agreed to by the parties hereto that Consultant shall have no authority to act for, represent or bind the Client or any affiliate thereof in any manner, except as may be agreed to expressly by the Client in writing from time to time. Section 7. ConAAgntialit : Except in the course of the performance of its duties hereunder, each party agrees that it shall not disclose any trade secrets, know-how, or other proprietary information not in the public domain learned as a result of this Agreement. Similarly, the parties agree that they shall not disclose or divulge this Agreement, or any of its term or conditions to third parties, except as is necessary to perform the terms and conditions stated herein. Section 8. Indemnification: Each party shall defend any third party claim against the other party arising from the death of or physical injury to any person or damage to the indemnified party's property to the extent proximately caused by the negligence of the indemnifying party or its agents or employees, and indemnify and hold harmless the other party and its respective officers, directors, employees and volunteers from and against damages, liabilities and reasonable costs and expenses, including reasonable legal fees incurred in connection therewith. Consultant maintains liability insurance in the amount of one million dollars. Section 9. A, s &gnrnent: This Agreement shall not be assignable by either party; provided however, that Consultant shall have the discretion to allocate its duties hereunder to owners, affiliates, or employees of Consultant. Section 10. No Guaranteed Result: Client acknowledges and agrees that Consultant does not have control over third party decision makers, and therefore Consultant makes no representations, warranties or guarantees that it can achieve any particular results. Consultant, however, shall act in good faith toward the performance of its duties described above. Section 11. prior A recaaniegts: This Agreement shall supersede any prior agreements between the parties, and serves as the sole and only agreement between them. This Agreement may only be modified by a writing signed by both parties. Section 12. Governing Law: This Agreement shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be construed in accordance with the laws of said State. Section 13. Attor�iaj,,tees: The prevailing party in any action filed that arises out of this Agreement shall be entitled to recoup their reasonable attorney's fees and costs from the other party. courier to: Section 14. Notices: All notices will be sent via certified mail or overnight Consultant at: California Consulting, LLC 214 Main Street, Suite 102 El Segundo, CA 90245 -2- Client at: City of Baldwin Park Attn: Shannon Yauchzee 14403 E. Pacific Avenue Baldwin Park, CA 91706 Section 15. Termination: This Agreement may be terminated by either party for any reason not in violation of federal and/or California State law upon thirty (30) days written notice to the other party. Client shall compensate Consultant for all services rendered prior to the date of termination. There shall be no liquidated damages in the event of termination under this provision. IN WITNESS THEREOF, this Agreement is executed on the dates set forth below and effective on the date first set forth above. "CONSULTANT" "CLIENT" California Consulting, LLC City of Baldwin Park (A California Limited Liability Company) 0 Steven N. Samuelian, CEO Manuel Lozano, Mayor ®3® , e Statei Premier . Grant Writing Firm and City of Baldwin Park By e Numhers Home for Gooc12017-2018 CiLy Planning GrwiL $50,000 HCD Housing RclaLcd Parks Probrrmn $81,324 OTS Scicc,fivc Traffic EnforcemcnL PrograIn $70,000 National League of Chits CHAMPS Prograiii $25,000 OTS Pedestrian/Bicycic SafcLy Grant $40,000 Caltrans Systemic Safely Analysis ReporL $134,860 LA County Compcddvc Tree I'lauling GranL $200,000 Total Paid to CC Overall Return on InvesLmenL $102,184 170% Total earned for City $499,000 Per Working Day $945 Working Days 528 As of 12131/17 ITEM NO. STAFF RE PORTTO: Honorable Mayor and City tjli���i�eu ��r(s.° 1w1,ow FROM: Gustavo Romo, Community Development Director TWE' SA�Rl� i DATE: March 7, 2018 ,VAS. EY �SUBJECT: REQUEST FROM RUKLI, INC. (CAN 17-06) TO ADD JANU SECOND LOCATION FOR CANNABIS DISTRIBUTION OPERATION (4150 PUENTE AVENUE) .................. --.- SUMMARY This report seeks City Council approval for a second location (4150 Puente Avenue) for an approved cannabis operator (RUKLI, Inc.) presently approved under CAN 17-06 at 14824 Ramona Boulevard. RECOMMENDATION Staff recommends that Council approve the Change of Location application for RUKLI, Inc. (CAN 17- 06) to add an authorized location to operate an additional cannabis distribution operation at 4150 Puente Avenue pursuant to Ordinance No. 1400, Section 127.09. BACKGROUND/ANALYSIS The City of Baldwin Park adopted Ordinance No. 1400 in 2017, which created Chapter 127, Medical and Adult Use Commercial Cannabis, of Title XI, Business Regulations to the City of Baldwin Park Municipal Code. RUKLI, Inc. was one of 15 cannabis businesses that was selected by the City Council through a competitive process. RUKLI, Inc. focuses only on the distribution side of the cannabis business, so no cultivation or manufacturing is proposed at either the previously approved or new locations. Per the "Change of Location" application submitted on March 1, 2018, staff finds that the applicant has met the minimal submittal requirements. Per the City Attorney, the "Change of Location" application and ordinance provisions under Section 127.09 (A -D) are also intended to add locations. The proposed location is zoned Industrial Commercial, which permits cannabis operations with a Development Agreement. As such, the current Development Agreement for 14824 Ramona Boulevard will be revised and executed by the City Attorney should the City Council approve this request. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES The City Council may elect to not approve the requested second location. ATTACHMENT(S) #1. Change of Location Application #2. Ordinance No. 1400 APPLICATION FOR CHANGE OF LOCATION 1 of 3 APPLICATION FOR CHANGE OF LOCATION SAL FlUl Ola THF This application pertains to the change of location of a Cannabis business. This ;K Application can only be used by a cannabis business already approved and permitted SAN Csws by the Baldwin Park City Council. All fees paid are nonrefundable regardless of vA L y y outcome. o JAN" M1 Section 127.09 of the City's Municipal Code states that ..."No Licensee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the City Council..." Due to City staffing constraints, Applicants are directed to schedule appointments with the Planning Division to submit applications. Otherwise, there is no guarantee that a city planner will be available to take in applications. Applications may not be dropped off without review from a city planner. Further, no mailed or e-mailed applications will be accepted. Business Name: Rukli, Inc. �s Business Contact (Individual): Sharone "Shaun" Bershatski ° R Business Contact Title: President Business Contact Mailing Address: 4741 Firmament Ave., Encino, CA 91436 Primary Phone No.: 760-999-9000 Emergency Contact Name & Phone No.: Gregory Klibanov 310-486-8000 E-mail: shaun@ruklicorop.com Please mark all applicable boxes below to identify which cannabis operation permits you have been approved for by the Baldwin Park City Council. ❑ Cultivation: Square Footage: ❑ Manufacturing: Square Footage: ❑ Distribution: Square Footage 9800 Section A: Commercial Cannabis Business Description and Location 1. Proposed Location of Business (include APN's): 4150 Puente Ave. Baldwin Park, CA 91706 2. Name and Address of Property Owner: Albert Fritz Ehlers, 4150 Puente Ave., Baldwin Park, CA 91706 APPLICATION FOR CHANGE OF LOCATIONPage 2 of 3 3. Name and Address of School Closest to Proposed Location: Baldwin Park High School 3900 Puente Ave, Baldwin Park, CA 91706 4. Description of neighborhood around the proposed location (i.e., surrounding uses, nearby sensitive uses such as churches, schools, parks, or libraries) and transit access to site. A separate sheet may be attached. Building is located within a Commercial / Industrial area. Plan Submittals (Plans shall be drawn to scale) shall be submitted within 60 days of any location approval by the City Council. The Plans required are as follows: 5. Site Plan for each potential location. The Site Plan must be dimensioned and show the entire parcel, including parking and additional structures. 6. Conceptual Building Elevations if new construction. If existing buildings, include any proposed exterior building alterations if applicable. 7. Floor Plans, including any proposed interior alterations. 8. Vicinity Map. It is the Applicant's responsibility to prove to the City that the cannabis operation's location is at least 600 feet from all sensitive uses and 50 feet from all residential zones. The measurement is from property airspace line to property airspace line on each lot. However, in the case of commercial condominiums, measurement is taken from the airspace property line. 9. Photos of the site and building(s) from all sides/directions. Section B: Required Supplemental Information This information is required for this application to be considered complete. Attach the following reports to the amendment. E] Neighborhood Compatibility Plan Safety and Security Plan ❑ Air Quality Plan Section C: Final Location Information Multiple sites per application can be considered. Attach proof of ownership of the site or a signed, executed lease document will also suffice. Section D: STAFF USE ONLY (Essential Supplemental Information) This information is required and you must submit this as part of meeting the requirements for a completed application. Check the box evidencing that you have submitted and attached to this Application the items described below. ❑ Suitability of the proposed property: Using the information provided by the Applicant in this Application, Planning Staff must confirm that the proposed location(s) exceeds all buffer zones established in the Cannabis Ordinance. APPLICATION FOR CHANGE OF LOCATION 3of3 Suitability of security plan: Using the information provided by the Applicant in this Application, Planning Staff must confirm that the Applicant's security plan includes the presence of security personnel on premises or patrolling the premises twenty-four (24) hours per day. The Applicant's security plan must demonstrate a method to track and monitor inventory so as to prevent theft or diversion of cannabis. The Applicant's security plan must describe the enclosed, locked facility that will be used to secure or store cannabis when the location is open and the steps taken to ensure cannabis is not visible to the public. The Applicant's security plan must include measures to prevent the diversion of cannabis to persons under the age of twenty-one (21). Environmental impact: Application should indicate if the business uses renewable energy sources. Section E: Fees Please attach a cashier's check or money order made payable to the "City of Baldwin Park" for the following fees: �........� Application For Change of Location Fee: $1,000.00 Staff use only: 9 Date of Change of Location Application submRtal (umber assigned to application: Date fee received: Date Proof of ownership was verified: Planning Division ❑ Incomplete Change of Location Application ❑ Complete Change of Location Application COMMERCIAL LEASE AGREEMENT Clause 1. Identification of Landlord and Tenant This agreement is entered into between Rukli, Inc. (Tenant) and Fritz Ehlers (Landlord). Each Tenant is jointly and severally liable for the payment of rent and performance of all other terms of this agreement. Clause 2. Identification of Premises Subject to the terns and conditions in this Agreement, Landlord rents to Tenant, and Tenant rents from Landlord, for commercial purposes only, the premises located at 4150 N .Puente Boulevard, Baldwin Park, CA 91706, specifically, 9,800 square feet, on the bottom floor. The premises is divided up into two 4,900 square foot rentable areas, which will not be available at the same time due to prior tenants and necessary clean up. For purposes of this Lease, the areas will be identified as "Space One" and "Space Two". Clause 3. Limits on Use and Occupancy The premises are to be used only as commercial business. No living on the premises is permitted. Landlord may enter property at a reasonable hour at any time to inspect the said property. Clause 4. Terms of Tenancy The rental of Space One will begin on April, 1, 2018 and continue during the 5 year lease term. The rental of Space Two, as well as the obligation to pay rent, will begin when Landlord is able to deliver possession of Space Two clean, empty and free of debris. Tenant is granted two five year options to extend the lease term upon the same conditions. Exercise of each option to extend must be in writing at least 90 days before the end of the then existing term. Clause 5. Payment of Rent Tenant will pay to Landloro p monthly rent of $1.50/square foot, payable in advance of the first day of each month for the first 12 months of the lease agreement, there after, Landlord has the option to increase rent up to 3% annually after the first year for the remaining 4 years. Delivery of Payment for rent will be paid to Fritz Ehlers. Security Deposit is instructed on attached security agreement. $7,350 is the amount of deposit which is refundable 15 days after term of 5 year lease. Building must be clean, empty of all debris, and building not damaged. Tenant has to be up to date on rent. Any damages or unpaid rent will be withheld from the deposit. See attached copy of deposit agreement. The $7,350 deposit for Space Two shall be paid when possession of Space Two is delivered as set forth above. Clause 6. Late Charges If Tenant fails to pay the rent in full within 5 days after its due. Tenant will pay Landlord a late charge as follows: $30/day. Clause 7. Utilities Tenant will pay all utility charges which include Electric, Gas, Trash, Water Clause 8. Subletting Tenant may not sublet at any time without written consent from Landlord. Clause 11. Tenant's Maintenance Responsibilities. Tenant will keep the premises clean, sanitary, and in good condition and upon termination of the tenancy, the grounds need to be clean and all furnishings owned by Tenant need to be removed, trash and debris must be clean. Clause 12. Repairs and alterations by Tenant. Except as provided by law or as authorized by the prior written consent of Landlord, Tenant will not without Landlord change or alter prior conditions in building or on grounds. Tenant shall have the right Landlord's consent to remodel, redecorate, and make additions, improvements and replacements of and to all or any part of the Leased Premises from time to time. Tenant shall have the right to place and install personal property, trade fixtures and temporary installations, whether acquired by Tenant at the commencement of the Lease term or placed or installed on the Leased Premises by Tenant thereafter, shall remain Tenant's property free and clear of any claim by Landlord. Tenant have the right to remove the same at any time during the term of this Lease provided that all damage to Leased Premises caused by such removal shall be repaired by Tenant .at Tenant's expense. 2 Clause 13. Storing in parking 1. Storage of Tenant's commercial vehicles is allowed in the parking lots. However, if the City of Baldwin Park requires any additional permit to make such storage lawful Tenant is responsible for obtaining such permit. 2. Trash cans and trash bin area need to be clean and emptied on a regular basis. No hazardous material can be stored on premises. Clause 14. Insurance A. If the Leased Premises or any other part of the building is damaged by fire or other casualty resulting from any act or negligence of Tenant or any Tenants agents, employees or invitees rent shall not be diminished or abated while such damages are under repair, and Tenant shall be responsible for the costs of repair not covered by insurance. B. Landlord shall maintain fire and extended coverage insurance on the Building and Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased Premises. C. Tenant and Landlord shall, each at its own expense, maintain a policy of policies of comprehensive general liability insurance with respect to respective activities of each in the Building with the premiums there on fully paid on or before the due date, issued by and binding upon some insurance company approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage or combination thereof. Landlord shall be listed as an additional insured on Tenant's policy or current Certificates of Insurance evidencing Tenants compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's insurers to notify Landlord that a policy is,due to expire at least (10) days prior to such expiration. Landlord shall not be required to maintain insurance against thefts within the Leased Premises or the Building. Clause 14. Right of First Refusal Landlord grants Tenant the first right of refusal to rent additional space on the second floor of the premises at 4150 N. Puente Boulevard, Baldwin Park, CA 91706, totaling 9,800 square feet. Landlord grants Tenant the first right of refusal to rent 15120 Ramona Boulevard, Baldwin Park, CA 91706, totaling 7,700 square feet. 3 Clause 15. City Approval Contingency In the event the City of Baldwin Park does not allow Rukli, Inc. to operate its business at the premises and Rukli, Inc. advises Fritz Ehlers of this fact before June 1, 2018, this Agreement is void and Fritz Ehlers keeps the deposit and rent paid. This agreement will be h leerau owner Fritz Ehlers and Rukli, Inc. Signed Tenant Date: 3// / Signed La idlcrd Date:IT Witness Date: 4 Date of Deposit Agreement: March _, 2018 Fritz Ehlers 3100 Joy Street Covina, CA 91722 (626) 945-2875 NON REFUNDABLE DEPOSIT AGREEMENT ONLY I, Albert Fritz Ehlers, accept the non-refundable deposit of $7,350. This is a rental deposit for the property at 4150 N. Puente Boulevard, Baldwin Park, CA 91706 (4,900 feet on bottom floor). Deposit will be paid at the time of possession.Tenant must take possession of property at 90 days of signed agreement. If the building is available before 90 days of signed agreement. If the building is available before 90 days Tenant has option to move in earlier. If Tenant does not rent said property at 90 days Landlord still keeps the Non-refundable deposit but has the option to rent said property to someone else. When Tenant and Landlord sign the lease agreement the non- refundable deposit then becomes a security agreement which will then be used as a cleaning and security deposit as long as Tenant signs a 5 year lease agreement. This deposit.can then be refunded accord';ng t+ the, building, being clean, empty of all debris and building not damaged. Tenant must be up to date on rent. Then at that time the deposit will be returned at the end of the term of the lease according to any damage or unpaid rent that may be withheld from the security deposit. Any money due to Tenant will be refunded 15 daysfter Tenant moves out. This agreement will Signed Tenant Signed Tena between owner Albert Fritz Ehlers and Rukli, Inc. Dated: 3 LL1 Owner_...._.................. _._ Witness Witness f Dated: Dated: Dated: 5 CANNABIS PERMIT APPLICATION RECEIPT Completed and Signed Application ❑ Background Information for Principals # ❑ Receipt of Background Check and Live Scan Pictures (2) of Each Applicant Copy of Social Security Card # Copy of Valid Driver's License Signature of All Principals # El Proof of Organizational Status (describe 1 —1 . Site Plan # El Conceptual Building Elevations # 1-1 Floor Plans # 0 Vicinity Map El Photographs El Neighborhood Compatibility Plan El Safety and Security Plan El Air Quality Plan E] Business Plan El Background Check Authorization Form EJ Live -Scan Request and Receipt Proof of ownership of the site (Describ6 E] Written Evidence of Suitability of the Proposed Property El Written Evidence of the Security Plan CANNABIS PERMIT APPLICATION RECEIPT ❑ Written Evidence of the Suitability of the Business Plan and Financial Recordkeeping Written Evidence Relating to Criminal History �....� Written Evidence Relating to Regulatory Compliance History ❑ Written Evidence Relating to Good Legal Standing ❑ Written Evidence Relating to Community Engagement E1 Written Evidence Relating to Renewable Energy Sources L_ Written Evidence Relating to Labor Relations Written Evidence Relating to Payment of Mitigation Fees ❑ Written Evidence Relating to Donation Toward a Police Officers Salary ❑ Live Scan Fee $48.00 for Each Principal (Total Submitted ) ❑ Background Check Fee $937.50 for Each Principal (Total Submitted ) �m .. Cannabis Permit Application/Development A-greer-nent-f--,ee $ ;,85`T.,SC li � I� m f If 1. P i R.9" V " a l I ( J y 1 Receipt Issued By CAN Number D 1/vve acknowledge" the filing of this application and acknowledge that all the above information has been submitted to the Baldwin Park Planning Division. ..... _.. _._. "Ap Ip a�nfs.-Signa#ure Date ORDINANCE NO. 1400 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ADDING CHAPTER 127, MEDICAL AND ADULT USE COMMERCIAL CANNABIS, OF TITLE XI, BUSINESS REGULATIONS TO THE CITY OF BALDWIN PARK MUNICIPAL CODE WHEREAS, the City of Baldwin Park ("City") and Baldwin Park Municipal Code (BPMC) currently does not allow medical and adult commercial cannabis cultivation, manufacturing, and distribution uses; and WHEREAS, since early 2017, in several City Council Study Sessions,there has been discussion about amending the City's Municipal Code to allow and regulate Cannabis Cultivation, Manufacturing and Distribution uses within the City of Baldwin Park, provided development standards and a Development Agreement are included; and WHEREAS, the City of Baldwin Park held five (5) educational and public outreach sessions at various locations throughout the City to bring awareness to the community; and WHEREAS, the educational and public outreach sessions were held at the Baldwin Park Senior Center, the Baldwin Park Performing Arts Center, and the Baldwin Park Arts and Recreation Center; and WHEREAS, each educational and public outreach session had speakers from the City as well as industry experts who presented information and were available to answer any questions; and WHEREAS, Sections 153.120.330.0 and 153.120.330.D should be deleted because they are in conflict with the proposal to allow Medical and Adult Cannabis Cultivation, Manufacturing and Distribution uses as proposed; and WHEREAS, Section 15061(b)(3) of Chapter 3, Title 14 of the California Code of Regulations (the "CEQA Guidelines") describes the general rule that CEQA only applies 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 in question may have a significant effect on the environment, the activity is not subject to CEQA; and zoning regulations do not constitute the approval of any development project, and will therefore not result in any physical change in the environment; and WHEREAS, on August 9, 2017, after conducting a properly noticed public hearing, the Planning Commission adopted Resolution No. PC 17-13 recommending that the City Council update the BPMC as it pertains to Medical and Adult Cannabis Cultivation, Manufacturing and Distribution Uses; and Ordinance No. 1400 Paqe 2 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 127, Medical and Adult Use of Commercial Cannabis, of Title XI, Business Regulations shall hereby be added to the Baldwin Park Municipal Code as follows: CHAPTER 127. Medical and Adult Use Commercial Cannabis 127.01: Purpose . A. The purpose of this chapter is to regulate all commercial cannabis activity in the City of Baldwin Park, as defined in Section 26000 et seq. of the California Business and Professions Code, to the extent authorized by state law and in a manner designed to minimize negative impact on the City, and to promote the health, safety, morals, and general welfare of residents and businesses within the city. B. This article is further adopted and established pursuant to the specific authority granted to the City of Baldwin Park in Section 7 of Article XI of the California Constitution and Section 26000 of the California Business and Professions Code. These regulations shall govern all commercial cannabis activity that occurs within the jurisdiction of the City. 127.02: Definitions Unless otherwise defined herein, the terms in this article shall have the same meaning as set forth in the MAUCRSA ("Medicinal and Adult -Use Cannabis Regulation and Safety Act") and any rules promulgated under it. In addition, the following terms shall be defined as follows: A. "Adult -Use Cannabis" means the use of cannabis for creational purposes as distinguished from cannabis for medicinal purposes. B. "Adult -Use Cannabis Licensee" has the same meaning as that term "A - licensee" as defined by Section 26001(f) of the California Business and Professions Code. C. "Applicant" has the same meaning as that terms is defined by Section 26001(c) of the California Business and Professions Code. D. "Cannabis" has the same meaning as that terms is defined by Section 26001(f) of the California Business and Professions Code. E. "City" means the City of Baldwin Park, California. F. "Chief Executive Officer" shall mean the Chief Executive Officer of the City or a duly authorized designee. Ordinance No. 1400 Page 3 G. "Code" means the Baldwin Park Municipal Code. H. "Commercial cannabis activity" has the same meaning as that term is defined by Section 26001(k) of the California Business and Professions Code. I. "Cultivation site" has the same meaning as that term is defined by Section 26001(m) of the California Business and Professions Code. J. "Day-care" means any child day care facility other than a family day care home and includes infant centers, preschools, extended day care facilities, and school- age child care centers. K. "Distribution" has the same meaning as that term is defined by Section 26001(r) of the California Business and Professions Code. L. "Enclosed locked structure" means a structure that(1) does not allow for the visibility of the interior from the outside; (2) is secured with a non --residential lock; (3) is completely surrounded on all sides by a wall (i.e., fully enclosed); and (4)• is roofed. Enclosed locked structures may include greenhouses, provided that only the roof of the greenhouse is made of transparent glass. All enclosed locked structures shall comply with the city and state building codes, city and state fire codes, and all other applicable laws. M. "Good cause" for purposes of denying an initial license under this chapter, for revoking a permit, or for denying a permit renewal or reinstatement, means at least one- of the following: 1. The applicant has not obtained approval by the city council of a development agreement setting forth the general terms for the operation of a business under this chapter or a licensee breaches the terms of an applicable development agreement. 2. The applicant or licensee has violated any of the terms, conditions, or provisions of this chapter, state law, any regulations promulgated understate law, any applicable local) ordinances or rules, or any special terms or conditions placed upon its state license, local license., or permit; 3. The licensed premises has been or is operated in a manner that adversely affects the public health, safety, or welfare of the immediate neighborhood in which the establishment is located; 4. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on an application form, renewal form, or any other document submitted to the City; 5. The applicant or licensee's criminal history does not indicate that the applicant or licensee is of good moral character; or the applicant or licensee has been convicted of an offense that is substantially related to the qualifications, functions, Ordinance No. 1400 Pa4e 4 or duties of the business or profession for which the application is made, except that, if the local licensing authority has issued a local license to the applicant or licensee, the City shall not consider any criminal history of the applicant or licensee that was disclosed to or discovered by the local licensing authority prior to the issuance of the local license and is confirmed by the applicant. For any criminal history that was not disclosed to or discovered by the local licensing authority prior to the issuance of the local license or that arose after the issuance of the local license, the City shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or licensee and shall evaluate the suitability of the applicant or licensee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the City shall consider the factors as set forth in Section 26057(b)(4) of the California Business and Professions Code; 6. The applicant or licensee is employing or allowing to volunteer any person whose criminal history indicates that person is not of good moral character; 7. The applicant or licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials; or 8. An applicant or licensee is a licensed physician providing written recommendations to patients for cannabis. N. "Good moral character" means having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law. In determining good moral character, the following standards apply: 1. A judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual's lack of good moral character. Such judgment may be used as evidence in the determination, and when so used, the individual shall be notified and shall be permitted to rebut the evidence by showing that, at the current time, he or she has the ability to and is likely to serve the public in a fair, honest and open manner, that he or she is rehabilitated, or that the substance of the former offense is not substantially related to the occupation or profession for which he or she seeks to be licensed. 2. Notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance, is not considered substantially related, and shall not be the sole ground for denial of a local license, except that any of the following convictions shall be deemed substantially related and may be the sole grounds for denying a local license or permit: Ordinance No. 1400 Paqe 5 a. A felony conviction for hiring, employing, or using.a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance; or b. A felony conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or C, A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the California Health and Safety Code. d. Conviction for any controlled substance felony subsequent to issuance of a permit shall be grounds for revocation of a permit or denial of the renewal of a permit. O. "Immature cannabis plant" means a cannabis plant, whether male or female, that has not yet flowered and that does not yet have buds that are readily observed by unaided visual examination. This is distinguished from a "mature" plant, which has flowered and has buds. P. "Licensed Premises" means the designated area on a single or immediately adjoining parcel(s), as identified by valid street address and Assessor Parcel Number, specified in an application for a permit under this chapter, which is owned or in the possession of the applicant or licensee and within which the applicant or licensee is applying for authorization to cultivate, manufacture, distribute, -test, or is applying for multiple permitted uses, in accordance with the provisions of this chapter, the MAUCRSA, any development agreement approved by city council, and any rules adopted pursuant thereto. Q. "Licensee" means a person who has been issued a commercial cannabis business permit under this chapter for a Licensed Premises. R. "Limited access area" means a building, room, or other area that is part of the licensed premises whose access is limited to certain authorized persons. S. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. T. "Manufacturer" means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. U. "Medicinal cannabis" has the same meaning as that term is defined by Section 26001(ai) of the California Business and Professions Code. Ordinance No. 1400 Paae 6 V. "Medical cannabis business" means any person engaged in commercial cannabis activity. W. "Medicinal and Adult -Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. "Outdoors" means any location within the City that is not within an enclosed structure. Y. "Owner" means any of the following, pursuant to Section 26001(al) of the California Business and Professions Code: 1. A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. 2. The chief executive officer of a nonprofit or other entity. 3. A member of the board of directors of a nonprofit. 4. An individual who will be participating in the direction, control, or management of the person applying for a license. Z. "Person" has the same meaning as that term is defined by Section 26001 (an) of the California Business and Professions Code. AA. "Permit" means a "cannabis permit" that authorizes an entity to conduct commercial cannabis activity under this chapter. BB. "Physician" as used in this chapter, shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the State of California. . CC. "State law" means and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); the California Attorney General's Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such guidelines may be revised from time to time by action of the Attorney General; MAUCRSA, and all other applicable laws of the state of California. DD. "State license" has the same meaning as that term is defined by Section 26001(y) of the California Business and Professions Code. EE. "State licensing authority" shall mean the Bureau of Cannabis Control within the State Department of Consumer Affairs, the State Department of Public Health, State Department of Food and Agriculture, or any other State agency responsible for the issuance, renewal, or reinstatement of a State license issued Ordinance No. 1400 Paue 7 pursuant to Division 10 of the California Business and Professions Code or any state agency authorized to take disciplinary action against such local license. FF. "Written documentation" shall have the meaning set forth in Section 11362.7(i) of the California Health and Safety Code. GG, "Youth center" means any public or private facility that is primarily used to host social activities for minors, including, but not limited to, social service teenage club facilities, video arcades, or similar amusement park facilities. 127.03: Relationship to Other Laws Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in Division 10 (commencing with Section 26000) of the California Business and Professions Code. In the event of a conflict between the provisions of this chapter and state statutes or regulations, State law controls., 127.04: Outdoor Cultivation It is hereby declared to be unlawful, a public nuisance, and a violation of this chapter for any person owning, leasing, occupying, or having charge or possession of any parcel within any zoning district in the City to use or allow such premises to be used for the outdoor cultivation of cannabis plants. 127.05: Permitted Use A. Cannabis businesses shall only be permitted to operate in the city following issuance of a Permit approved by the City Council or staff designee and a business license issued by the City in accordance with the criteria and procedures set forth in Chapter 127 of this code and in compliance with the Baldwin Park Municipal Code. No land -use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land -use authorization fora medical cannabis business shall be granted or permitted unless it complies with the provisions of this chapter and the applicable building standards and the Baldwin Park Municipal Code. If there is a conflict between the requirements of another chapter in the Code and this chapter, the requirements of this Chapter 127 prevail. B. All persons who are engaged in or who are attempting to engage in commercial cannabis activity in any form shall do so only in strict compliance with the terms, conditions, and restrictions of the MAUCRSA, regulations promulgated under MAUCRSA, the provisions of this Chapter 127, and all other applicable state and local laws. C. The Chief Executive Officer is authorized to make policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application and process. Ordinance No, 1400 Paae 8 127.06: Development Agreement Required Prior to operating in the City and as a condition of issuance of a Permit, the applicant shall enter into a development agreement with the City setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed upon, approval of architectural plans (including site plan, floor plan, and elevation, to conform with manufacturing uses under the Baldwin Park Municipal Code), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all persons in the City, 127.07: Permitted Zones: Distance and Other Conditions for Approval No more than 15 (fifteen) Licensed Premises for each permitted use- may be allowed, maintained, or operated in the City at any time, If there is a conflict between the requirements of this chapter and any other chapter, the requirements of this chapter shall prevail. A. Manufacturing Site. 1. No manufacturing shall be located within 600 feet of a school, day-care center, or youth center or within 50 feet of a residential zone. 2. Subject to the distance and other requirements of this chapter and the Code, a licensed premises may only be located on a property within the Industrial (1) and Industrial -Commercial (I -C) zones, and following the application for and granting of a development agreement by the city council and a business permit in accordance with this chapter. The proposed use shall comply with the minimum requirements set forth in this chapter for distance separations between manufacturing sites and other specific land uses. 3. All manufacturing of cannabis shall occur in an enclosed structure. 4. Licensed sites shall not exceed the 22,000 square feet authorized pursuant to the controlling development agreement. 5. From a public right-of-way, there should be no exterior evidence of the manufacturing of cannabis or manufactured cannabis except for any signage authorized by this Code. 6, All licensed sites shall comply with the city's lighting standards including, without limitation, fixture type, wattage, illumination levels, and shielding and secure the necessary approvals and permits as needed. 7. All windows on the licensed premises of the manufacturing site shall be appropriately secured and all cannabis securely stored, Ordinance No, 1400 Page 9 B. A licensed site, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes. 9. If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in CFC Section 202, are to be used in the processing of medical cannabis or adult use, then the provisions of CFC Section 407 shall be applicable where hazardous Materials subject to permits under CFC Section 50 (Hazardous Materials) are located on the licensed premises. 10. Storage, use, and handling of compressed gases in compressed gas containers, cylinders, tanks and systems shall comply with CFC Chapter 53. Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with CFC Chapter 50 for general requirements and CFC Chapter 53 addressing specific hazards, including CFC Chapter 58 (Flammable Gases), CFC Chapter 60 (Highly Toxic and Toxic Materials), CFC Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and CFC Chapter 64 (Pyrophoric Materials). A manufacturer shall prevent, control and mitigate dangerous conditions related to storage, use, dispensing, mixing and handling of flammable and combustible liquids shall be in accordance with CFC Chapters 50 and 57.. 11. Licensed sites are permitted under this chapter under a Group F-1 (Factory Industrial Moderate -Hazard) Occupancy under the Fire Code. All new construction shall be fire sprinkled per the Fire Code. For manufacturing sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists; a. A Group F-1 fire area exceeds 12,000 square feet. b. A Group F-1 fire area is located more than three stories above grade plane. C. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds 22,000 square feet. 12. Suitability of the proposed property. Proposed property possesses air scrubbers or a filtration system capable of eliminating odors from escaping the building or commitment to do so before operating. B. Cultivation Sites. 1. No cultivation site shall be located within 600 feet of a school, day- care center, park, or youth center, or within 60 feet of a residential zone. Ordinance No. 1400 turtle 10 2. Subject to the distance and other requirements of this chapter and the Code, a cultivation site may only be located on a property within the Industrial (1) and Industrial -Commercial (I -C) zones, and following the application for and granting of a development agreement by the city council and a business permit in accordance with this chapter. The proposed use will comply with the minimum requirements set forth in this, chapter for distance separations between manufacturing sites and other specific land uses. 3. All cultivation of cannabis shall occur in an enclosed locked structure. 4. Cultivation sites shall not exceed the 22,000 square feet authorized pursuant to the permit. 5. From a public right-of-way, there should be no exterior evidence of the cultivation of medical and adult use cannabis except for any slgnage authorized by this chapter. 6. All cultivation sites shall comply with the city's lighting standards including, without limitation, fixture type, wattage, illumination levels, and shielding and secure the necessary approvals and permits as needed. i. All windows on the licensed premises of a cultivation site shall be appropriately secured and all cannabis securely stored. 8. Areas where cannabis is cultivated are wet locations, and the electrical system in such areas must comply with Title 8 of this code, Article 300.6(D) of the National Electric Code, City and California building codes, fire codes, electrical codes, and all other applicable laws. 9. Cultivation sites are under a Group F-1 (Factory - Industrial Moderate -Hazard) Occupancy under the Fire Code. All new construction is required to be fire sprinkled under the Fire Code. For cultivation sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists: a. A Group F-1 fire area exceeds 12,000 square feet. b. A Group F-1 fire area is located more than 3 stories above grade plane. C. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds 22,000 square feet. 10. In addition to a Manufacturing or Cultivation permit, a cannabis business applicant may apply for another use as permitted by MAUCRSA, a development agreement approved by City council, this chapter, and any rules adopted pursuant thereto. Ordinance No. 1400 Page 11 11. Suitability of the proposed property. Proposed property possesses air scrubbers or a filtration system capable of eliminating odors from escaping the building or commitment to do so before operationg. C. Distribution of Cannabis. A cannabis distribution Licensee may carry or move cannabis within the city in accordance with MAUCRSA and State regulations. D. Nonconforming Use. Any cannabis business or cannabis dispensary established or operating in the city in violation of this Chapter or the ban established by Part 10, of Chapter 153 Section 153.120.320 of the Baldwin Park Zoning Code, shall not be considered a lawful or permitted nonconforming use, and no cannabis business operating unlawfully is eligible for a cannabis business permit. Further, any such unlawfully established cannabis business shall constitute a public nuisance subject to abatement by the City, pursuant to Chapter 95, Section 95.09. E. Distances. All distances specified in this section shall be measured in the following manner: 1. For schools, day-care centers, parks, or youth centers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis business is to be located without regard to intervening structures. 2. For determining distance to residential zones, the distance shall be measured from the nearest point of the parcel or property in a residential zone to the closest property line of the lot on which the cannabis business is to be located without regard to intervening structures. F. Factors Considered for Permit Approval. Approval of a permit shall take into account the safety of the public, including, but not limited to, the following factors: ' . 1. Suitability of the proposed property; 2. Suitability of security plan; 3. Suitability of business plan and financial record keeping; 4. Criminal history; 5. Regulatory compliance history; 6. Good legal standing; 7. Community engagement; 8. Environmental impact; and Ordinance No. 1400 Page 12 9. Labor relations. 127.08: No Transfer or Change in Ownership or Location. An owner of a cannabis business who obtains a permit under this chapter may not .sell, transfer, pledge, assign, grant an option, or otherwise dispose of ,his or her ownership interest in the medical cannabis business covered by any permit issued under this chapter. 127.09: Changing, Altering, or Modifying Licensed Premises A. Persons permitted pursuant to the provisions of this chapter or those making application for such permits, must demonstrate proof of lawful possession of the Licensed Premises. Evidence of lawful possession consists of properly executed deeds of trust, leases, or other written documents. B. The Licensed Premises shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. No Licensee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the city council, regardless of any possessory interest or right to possession to such additional space. No Licensee shall addadditional units or areas, thereby altering the initially approved premises, without filing an application to modify the Licensed Premises on forms prepared by the Chief Executive Officer and paying any applicable processing fees. C. Subletting Not Authorized. portion of any Licensed Premises for any application to modify the existing location approved by the city council. No Licensee is authorized to sublet any purpose, unless all necessary forms and to accomplish any subletting have been D. Application Required to Alter or Modify Licensed Premises. After issuance of a permit, the licensee shall not make any physical change, alteration, or modification of the Licensed Premises that materially or substantially alters the premises, production estimates, or the usage of the premises from the plans originally approved with the development agreement, without the prior written approval of the city council or its designee. The Licensee whose premises are to be materially or substantially changed is responsible for filing an application for approval on current forms provided by the City. E. What Constitutes a Material Change. Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following: 1. Any increase or decrease in the total physical size or capacity of the location; Ordinance No. 1400 Paae 13 2. The sealing off, creation of, or relocation of a common entryway, doorway, passage, or other such means of public ingress and/or egress, when such common entryway, doorway, or passage alters or changes limited access areas, such as the cultivation within the Licensed Premises; 3. The installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage to enhance cultivation activities. F. Application. The city council or its designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the Licensee and payment of any applicable fee. The Licensee must submit all information requested by the city council or its designee including but not limited to documents that verify the following: 1. The Licensee will continue to have exclusive possession of the premises, as changed, by ownership, lease, or rental agreement, and sole control of all production; and 2. The proposed change conforms to any and all City restrictions related to the time, manner, and place of regulation of the commercial cannabis activity. 127.10: Grounds for Denial of Permit: Additional Conditions Imposed A. The Chief Executive Officer or designee may reject an application upon making any of the following findings; 1. The applicant made one or more false or misleading statements or omissions on the registration application or during the application process; 2. The applicant's business entity, if applicable, is not properly organized in strict compliance pursuant to the applicable law, rules, and regulations; 3. The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter; 4. The applicant's facility or its location is in violation of any building, zoning, health, safety, or other provision of this Code, or of any state or local -law or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a permit would be contrary to the public health, welfare, safety, or morals; 5. The applicant, or any of its officers, directors, owners, managers, or employees is under twenty-one (21) years of age; 6. The applicant, or any of its officers, directors, or owners, or any person who is managing or is otherwise responsible for the activities of the Licensed Premise, or any employee who participates in the dispensing, cultivation, processing, Manufacturing, delivery, or transporting of medical marijuana or who participates in the Ordinance No. 1400 Paqe 14 daily operations of the medical and adult use marijuana facility, has been convicted of a violent felony, a felony, or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude; 7. The applicant or any of its officers, directors, owners, or managers is a licensed physician making patient recommendations for cannabis; 8. The applicant or any of its officers, directors, owners, or managers has been sanctioned by the City, the State of California, or any county for unregistered medical cannabis activities or has had a registration revoked under this chapter in the three prior (3) years; 9. The applicant did not pay to the City the required application and processing fees; 10. Good cause exists to deny the application, as defined in this chapter. 11. Applicant's application does not reflect the purpose of this chapter, to promote the health, safety, morals, and general welfare of residents and businesses within the City. 127.11: Security A. General Security Requirements 1. Security cameras shall be installed and maintained in good working condition, and used in an on-going manner with at least 240 continuous hours of digitally recorded documentation in a format approved by the Chief of Police and/or his designee. The cameras shall be in use 24 hours per day, 7 days per week. Tfle areas to be covered by the security cameras include, but are not limited to, the storage areas, manufacturing or cultivation areas, all doors and windows, and any other areas as determined by the Chief of Police and/or his designee. 2. Entrances to any storage areas shall be locked at all times and under the control of Licensee's staff. 3. The business entrance(s) and all window areas shall be illuminated during evening hours. The applicant shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits as needed. 4. All windows on the Licensee's building shall be unopenable or locked and all product securely stored. 5. Each Licensee shall implement a system to track the cultivation and manufacturing of cannabis in order to prevent the Licensee from diverting or transporting cannabis to any location not authorized by state laws or any local law. Ordinance No. 1400 Page 15 6. All waste and disposal containers shall be stored in a secure area and be under the control of the Licensee's staff. B. Security Alarm Systems - Minimum Requirements 1. Each Licensed Premises shall have a Security Alarm System, installed by a licensed alarm company, that alerts the alarm monitoring company on all premises entry points and windows. 2, Each Licensed Premises must be continuously monitored by an alarm monitoring company. 3. The Licensed Premises shall maintain up-to-date records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the licensed alarm company, and the name of any vendor monitoring the premises. 4. Upon request, each Licensee shall make available to the Chief Executive Officer or any state or local law enforcement agency, for a purpose authorized by this chapter or state or local law enforcement purpose, all information related to security alarm systems, recordings, monitoring, and alarm activity. C. Lock Standards -Minimum Requirement. On all doors, the Licensee shall ensure the use of commercial -grade, nonresidential door locks. D. Video Surveillance Requirements: 1. Prior to exercising the privileges of a permit under this chapter, an applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined in this Section. 2. All video surveillance records must be stored in a secure area that is only accessible to the management staff of the Licensed Premises. 3. Video surveillance records and all recordings must be made available upon request to the Chief of Police or any other state or local law enforcement agency for a purpose authorized by this chapter or for any other state or, local law enforcement purpose. 4. Video surveillance records shall be held in confidence by all employees and representatives of the Chief Executive Officer, except that the Chief of Police or his designee may provide such records and recordings to a state or local law enforcement agency for a purpose authorized by this Chapter or for a state or local law enforcement purpose. 5. A sign shall be posted in a conspicuous place near each point of public access that shall be not less than 12 inches wide and 12 inches high, composed Ordinance No. 1400 Page 16 of letters not less than one inch in height, stating "All Activities Monitored by Video Camera" or "These Premises Are Being Digitally Recorded" or otherwise advising all persons entering the Licensed Premises that a video surveillance and camera recording system is in operation at the Licensed Premises and recording all activity as provided in this Chapter. 6. The Licensed Premises should use video surveillance equipment and a camera system that can be accessed remotely 24 hours a day by the Baldwin Park Police Department and the City, as specified in each development agreement. E. Video Surveillance Equipment 1. Video surveillance equipment shall, at a minimum, consist of digital or video recorders, cameras capable of meeting the recording requirements described in this section, video monitors, digital archiving devices, and a color printer capable of delivering still photos. 2. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the Licensed Premises of any prolonged surveillance interruption or the complete failure of the surveillance system. 3. Licensed Premises are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capable of capturing the identity of all individuals and activities in the monitored areas. 4. All video surveillance equipment shall have sufficient battery backup to support a minimum of 4 hours of recording in the event of a power outage, F. Placement of Cameras and Required Camera Coverage 1. Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Licensed Premises. 2. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points. 3. The system shall be capable of recording all pre -determined surveillance areas in any lighting conditions. If the Licensed Premises has a cannabis cultivation area, a rotating schedule of lighted conditions and zero -illumination can occur as long as ingress and egress points to those areas remain constantly illuminated for recording purposes. 4. Areas in which cannabis is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height that provides a clear, unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment. Ordinance No, 1400 Paqe 17 5. Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur. 6. At least one camera must be dedicated to record the access points to the secured surveillance recording area. G. Location and Maintenance of Surveillance Equipment 1. Surveillance recording equipment must be housed in a designated locked and secured room or other enclosure with access limited to authorized employees, agents of the Chief Executive Officer, state or local law enforcement agencies for a purpose authorized by this chapter or for any other state or local law enforcement purpose, and service personnel or contractors. 2. The Licensee must keep a current list of all authorized employees and service Personnel who have access to the surveillance system and/or room on the Licensed Premises. Licensed Premises must keep a surveillance equipment maintenance activity log on the Licensed Premises to record all service activity, with the identity of the individual(s) performing the service, the service date and time, and the reason for service to the surveillance system. 3. Off-site monitoring and video recording storage of the Licensed Premises or by an independent third -party is authorized as long as standards exercised at the remote location meet or exceed all standards for on-site monitoring. 4. Each Licensed Premises located in a shared building must have a separate surveillance room/area that is dedicated to that specific Licensed Premises. All minimum requirements for equipment and security standards as set forth in the section apply to the review station. H. Video Recording and Retention Requirements 1. All camera views of all recorded areas must be continuously recorded 24 hours a day. 2. All surveillance recordings must be kept for a minimum of 90 days and. be in a format that can be easily accessed for viewing on premises. Video recordings must be archived in a format that ensures authentication of the recording as legitimately -captured video and guarantees that no alteration of the recorded image has taken place. 3. The surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded. 4. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture. Ordinance No. 1400 Paae 18 6. Time is to be measured in Pacific Standard Time in accordance with the U.S. National Institute of Standards and Technology. 6. After the 90 -day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings may not be destroyed if the Licensed Premises knows or should have known of a pending criminal, civil, or administrative investigation or any other proceeding for which the recording may contain relevant information. Other Records All records applicable to the surveillance system and cannabis tracking system shall be maintained on the Licensed Premises. At a minimum, Licensed Premises shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list, and operating instructions for the surveillance equipment. J. Suitability of Security Plan The Applicant's security plan includes the presence of security personnel on premises or patrolling the premises twenty-four (24) hours per day. 127.12: Fees and Charges. A. Prior to operating in the City, the operator of each Licensed Premises shall timely and fully pay all fees associated with the establishment of that business. The fees shall be as set forth in the schedule of fees and charges established by resolution of the city council, including, but not limited to, the following: 1. Application fee for accepting a registration application, due and payable in full at the time an application is submitted; 2. Processing fee for the cost to the city of processing an application and reviewing, investigating, and scoring each application in accordance with any evaluation system to determine eligibility for issuance of a Permit, due and payable in full at the time a registration application is submitted; 3. Permit issuance fee for the cost to the City of preparing a development agreement, city council review and approval of the development agreement and the Permit, and preparation and issuance of the Permit as authorized by the city council, due and payable in full at the time the city issues a Permit; 4. Amended registration fee for the cost to the city of, reviewing amendments or changes to the registration form previously filed on behalf of the Licensed Premises; due and payable in full at the time amendments or changes to any Permit form is submitted to the city; Ordinance No, 1400 Paqe 19 5. Permit renewal fee for the cost to the city of processing an application to renew a Permit; due and payable in full at the time application is„made to renew a Permit; 6. Any fees for Inspection or investigation that are not included within the other fees associated with registration, due and payable in full upon request of the city; and 7. Any fees set forth in the applicable development agreement. 127.13: Limitations on City's liability A. To the fullest extent permitted by law, the City does not assume any liability whatsoever, with respect to approving any permit pursuant to this chapter or the operation of any cannabis facility approved under to this chapter. B. As a condition of approval of a permit as provided in this chapter, the applicant or its legal representative shall do the following: 1. Execute an agreement indemnifying the City from any. claims, damages, injuries, or liabilities of any kind associated with the registration or operation of the cannabis facility or the prosecution of the cannabis facility or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers or customers for violation of federal or state laws; 2. Maintain insurance in the amounts and of the types that are acceptable to the City Council or designee; 3. Name the City as an additional insured on all City -required insurance policies; 4. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of the Licensee's regulatory permit; and 5. Agree to reimburse the City for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge related to the city's approval of the Licensee's regulatory perry it. The City may, at its sole discretion, participate at its own expense in the, defense of any ;such action, but such participation shall not relieve the operator of its obligation hereunder. 127.14. Inspections A. The Chief Executive Officer, law enforcement, or their designees shall have the right to enter all Licensed Premises from time to time unannounced during the facility's hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this chapter, to inspect and copy records required to be maintained under this chapter, or to inspect, view, and copy recordings made by Ordinance No. 1400 Paae 20 security cameras, all without requirement for a search warrant, subpoena, or court order, and subject to appropriate fees as specified in the development agreement. B. Operation of a Licensed Premises in noncompliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the Code and shall be enforced pursuant to the provisions of this Code. C. The Chief Executive Officer or designee may summarily suspend or revoke a Permit, or disqualify an applicant from the registration process, or elect not to renew a regulatory permit if any of the following, singularly or in combination, occurs: 1. The Chief Executive Officer or designee determines that the cannabis facility has failed to comply with any requirement of this chapter or the approved development agreement or any condition of approval or a circumstance or a situation has been created that would have permitted the Chief Executive Officer or designee to deny the regulatory permit under this chapter or elect not to renew or revoke the permit under this chapter; 2. The Licensee or applicant has conducted itself or, is being conducted in a manner that creates or results in a public nuisance; 3. The Licensee Premises ceased operations for more than 90 calendar days, including during change -of -ownership proceedings; 4. Ownership is changed without the new owners applying for and securing a new permit under this chapter; 5. The Licensee relocates to a different location or premises; or 6. The Licensee fails to allow inspection or copying of the security recordings or, the activity logs or records required to be kept under this chapter or denies entry to the premises to city officials authorized to inspect the premises. D. Abatement The City shall initiate abatement proceedings as authorized by the ,Code if necessary to correct any violation of this chapter or Code. E. Violation Deemed Misdemeanor: Penalty Any person violating any of the provisions of this chapter or any applicable rule in this chapter or Code shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by the maximum penalties provided for in the Penal Code section 19. 127.15: Public Nuisance Prohibited It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge of any parcel within the City to create a public Ordinance No, 1400 Paae 21 nuisance in the course of cultivating cannabis or any part thereof in any location, indoor or outdoor. A public nuisance may be deemed to exist if such activity produces one or more of the following: A. Odors which are disturbing to people of reasonable sensitivity or present on adjacent or nearby property or areas open to the public. B. Repeated responses to the Premises by law enforcement personnel. C. A repeated disruption to the free passage of persons or vehicles in the neighborhood, excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby property or areas open to the public. D. Any other impacts on the neighborhood that are disruptive of normal activity in the area including, but not limited to, grow lighting visible outside the dwelling, excessive vehicular traffic or parking occurring at or near dwelling, and excessive noise emanating from the dwelling. E. Outdoor growing and cultivation of cannabis. 127.16: Appeals Any decision regarding or pertaining to the permit process set forth in this chapter, or any action taken by the Chief Executive Officer or designee pursuant hereto, may, be appealed to the city council. Such appeal shall be taken by filing with the city clerk, within ten (10) days after notice of the action or decision complained of has been issued, a written statement setting forth the grounds for the appeal. The city .clerk shall transmit the written statement to the city council, and at its next regular meeting, the council shall set a time and place for a hearing on the appeal. Notice of the time and place of such hearing shall be mailed to the appellant. The decision of the city council on such appeal shall be final and binding on all parties concerned. 127.17: Statewide Regulation. This chapter, and the provisions herein, shall be read consistent with any statewide regulation of cannabis now and in the future.. This ordinance shall govern the conduct of a business allowed to operate a commercial cannabis activity in the City. 127.18: Interpretation. The provisions of this chapter shall be read to be consistent with State laws, this chapter, and this Code. At no time shall a commercial cannabis business in compliance with state law and this Code be deemed to be an unlawful business. Ordinance No. 1400 Paae 22 127.19: Severability. Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance, and the provisions of this chapter are severable. SECTION 3. Except as expressly modified pursuant to this Ordinance, all other provisions of the Municipal Code, except where expressly modified by ordinance, shall remain unmodified and in full force and effect. All ordinances in conflict with the provisions hereof are superseded to the extent of such conflict. SECTION 4. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion or the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. This Ordinance shall, be effective thirty (30) days after its enactment. PASSED AND APPROVED ON THE _J .day of _ 2017 UEL LOZANO, MAYOR Ordinance No, 1400 Paqe 23 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES CITY OF BALDWIN PARK ) I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading at a Staff meeting of the City Council on August 10, 2017. Thereafter, said Ordinance No. 1400 was duly approved and adopted at a regular meeting of the City Council on August 16, 2017 by the following vote: Cruz Baca, Manuel Lozano, Ricardo Pacheco, AYES: COUNCILMEMBER: Susan Rubio NOES: COUNCILMEMBER: Monica Garcia ABSENT: COUNCILMEMBER: ABSTAIN: COUNCILMEMBER: Nona//// , AL:AN�YA 'ILA M , CITY CLERK ITEM NO. STAFF REPORT y City TO: Honorable Mayor and Ci Councilmembers nc8err T'H �° FROM: Gustavo Romo, Director of Communit I larpment° Amy L. Harbin, AICP, City ;Plano SAN, i,EY .- ` -G° '7 DATE: March 7, 2018 SUBJECT: CONTINUED FROM FEBRUARY 21, 2018. A REQUEST FOR CONSIDERATION OF A PROPOSED AMENDMENT TO THE CITY'S MUNICIPAL CODE (SIGN REGULATIONS) ADDING DEVELOPMENT STANDARDS FOR ELECTRONIC READER BOARD SIGNS (LOCATION: COMMERCIAL, INDUSTRIAL, AND MIXED USE ZONED PROPERTIES; APPLICANT CITY OF BALDWIN PARK; CASE NUMBER: AZC-188) SUMMARY This report requests City Council consideration of an amendment to the Municipal Code adding development standards for electronic reader board signs within the Commercial, Industrial, and Mixed Use Zones. FISCAL IMPAC' There is no fiscal impact associated with this item. RECOMMENDATION Staff and the Planning Commission recommend that the City Council open the public hearing and following the public hearing: Introduce for first reading, by title only and waive further reading, Ordinance 1405, entitled, "AN ORDINANCE OF CITY COUNCIL OF THE CITY OF BALDWIN PARK ADDING SECTION 153.170.090.C, AMENDING TABLE 153.170.080 AND AMENDING THE TITLE OF SUBSECTION 153.170.090 RELATING TO ELECTRONIC READERBOARD SIGNS." BACKGROUND -J1 / f;11 NL4 EN11[1?")N1%4EiVT IJ 01,,1,/1I.I7J' l 1 In accordance with the provisions of the California Environmental Quality Act (CEQA), Section 15061 (b) (3) of Chapter 3, Title 24, it has been determined that the proposed Code Amendment project will not have an impact upon the environment. NOTICING Since the properties potentially impacted by the proposed Code Amendment numbers greater than 1,000, Notices of Public Hearing for the Code Amendment was published in the San Gabriel Valley examiner on February 8, 2018 and posted at City Hall, Baldwin Park Community Center, and Barnes Park on Thursday, February 8, 2018. AZC-188 March 7, 2018 Page 2 Tl zc('7IQQInAT On October 15, 2014, the City Council held a Study Session regarding electronic reader board signs and temporary signs for new businesses. Staff provided a brief summary of the existing development standards contained in the Code and provided some proposed development standards should the City Council directed staff to move forward with a proposed Code Amendment. The Code was originally amended via Ordinance 1371, in April 2015. Ordinance 1371 was approved 4-0 with one Councilmember absent. However, through subsequent amendments relating to the Sign Regulations as a result from outside lawsuits against the City, the development standards for electronic reader boards was inadvertently omitted and deleted from the City's Sign Regulations in the Code. An electronic reader board is defined as a sign that incorporates changeable messages which may be changed by electronic processes or by remote control. The following on the next page are development standards for any proposed electronic reader boards: a) Design Review would be required as well as a Conditional Use Permit; and b) May only be allowed in conjunction with businesses that encompass 3 -acres or more within the C-2, F -C, I -C, and I zones, and located along a designated truck route; and c) Proposed electronic reader boards shall not face residentially zoned property or residential uses, schools, hospitals, convalescent hospitals and other sensitive land uses as designated through the conditional use permit process; and d) Message duration of a minimum of eight (8) seconds and messages changes between 2 seconds and 5 seconds; and e) Hours of operation; and f) Contrast—Reader boards shall be adjusted to maintain contrast between the sign face and surrounding areas; and g) Illumination control to avoid spillover and light trespass onto adjacent properties; and PLANNING COMMISSION ACTION This item was heard by the Planning Commission at their February 24, 2018 meeting. No one spoke during the public hearing on the item. Ultimately the Planning Commission voted 5-0 recommending that the City Council adopt the Code Amendment adding development standards for electronic reader board signs into the City's Municipal Code. FINDINGS OF FACT 1) The amendment is consistent with the goals, policies and objectives of the General Plan in that it allows for commodity uses such as recycling buy-back facilities the ability to utilize updated technology to reflect the changing pricing schedules as well as provide for reader board signage in areas of the City to drawn in visitors as well as the public's attention to areas where reader board signage which is complementary and compatible with the respective zoning designation; and C:tArny\AMY\W0RD\Reparts\Cound1 ReportslAZC-1BO Readerboard Language dor AZC-188 March 7, 2018 Paae 3 2) The amendment, which will only apply to properties within the Commercial, Industrial and Mixed use zones provided a conditional use permit is first obtained, will not impact sensitively zoned areas such as residential zones or sensitive uses such as hospitals, residential uses and schools. Furthermore, proposed development standards require that electronic reader board signs only be permitted on properties larger than three (3) acres and along city designated truck routes; and 3) The amendment promotes public health, safety and general welfare in that it will allow for the promotion of activities at larger commercial, industrial and mixed use sites to the public and residents while maintaining the sensitivity of the residential zones as well as sensitive uses such as hospitals, convalescent facilities and schools; and 4) The amendment serves the goals and purposes of the Zoning Code and General Plan Economic Development Element as it allows for the promotion of commercial activities such as dining establishments or City activities to not only residents, but the general public. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES The City Council could elect not to approve these modifications and as a result, electronic reader board signage would not be permitted. ATTACHMENTS #1, Red -Line Pages of the Zoning Code `Sign Regulations', relating to Electronic Reader Boards #2, Draft Planning Commission Minutes, January 24, 2018 #3, Ordinance 1405 G:tAmyVAMY\WORD\Reports\Courici{ ReporlslAZG 188 Readerhoard Language doc FA RED -LINE OF THE ZONING CODE, 6SIGN R'EGU'l,,4A rrjONS'. RELATING TO KIJECTIMINC CITY OF BALDWIN PARK — CHAPTER 153: ZONING CODE Si -an Regulations 153.170 "Fable 1,93.1,7 .08 Sign Regulations by Zone Maximuill Maximum maxim urn Zone Sign Type Nun-tber Sign Area Height Notes R -G and Monument 1 24 sf 4 ft R-3 Wall 1 36 sf 4 ft C-1 and Monument 1 per frontage 32 sf 6 ft MU -2 Wall I or more 50 sf . . ... . ........ .......... 4 ft ------- - . ........ .. ........... . . . . . . .................. .......... Monument 1 per frontage 64 sf 12 ft In lieu of a monument sign an Electronic Readerboard Sign may be permitted, subject to approval of a C-2, Conditional Use Permit and MU -1 Design Review, provided the F -C, sign complies with the I -C, provisions outlined in without §153.170.090.0 freeway Wall 1 or more 2 sf of sign area per 6 ft frontage linear foot of primary building frontage Secondary I or more I sf of sign area per 4 ft Wall linear foot of primary building frontage . . ......... ---- ------------ ------- ------ -------- ---------- Freestanding 1 1 sf of sign area per 1 80 ft 1. A maximum of 1 linear foot of street freestanding sign is frontage permitted for lots with less than 800 linear feet of street frontage. One additional freestanding sign is permitted for lots C-2, F- with more than 800 linear C, I -C, feet of street frontage. For with this purpose, a commercial freeway center is considered a frontage single lot. 2. Additional sign face area for monument signs may be granted in lieu of use of freestanding signs, per criteria established by . ...... . . . . . . . .......... . ............................. ........... ................ . ................... ..... ...... ....... the Director of ................................................ . Ommff-l= 153.170-10 CITY OF BALDWIN PARK — CHAPTER 153: ZONING CODE Sign Regulations 153.170 ...... _________. _ ®. ....---- ......... ... ........ Community Development. 3. In lieu of a monument sign an Electronic Readerboard Sign may be permitted, subject to approval of a Conditional Use Permit and Design Review, provided the sign complies with the provisions outlined ........ _. ..... �.. ..... _...m in §153.170.090.0 Monument 40 sf 20 ft In lieu of a monument sign an Electronic Readerboard Sign may be permitted, subject to approval of a Conditional Use Permit and Design Review, provided the l sign complies with the provisions outlined in ............... ...... m. ____._---- .. ......... ...... §153.170.090.0 Wall 1 or more 1 sf of sign area for 6 ft each linear foot of primary building frontage C. Wall Signs. 1. A maximum of 3 wall signs shall be permitted for each wall of a commercial unit that contains a main entrance or is adjacent to a street. 2. A maximum of 1 wall sign shall be permitted for each wall of a commercial unit that does not contain a main entrance. 3. Wall signs shall not project more than 18 inches from the building wall. 4. Sign height shall be measured from the bottom to the top of the sign. 153.170.090 — Sign Regulations for Specific Land Uses or Sign Types In addition to other standards set forth in this subchapter, the following land uses or sign types are subject to the following regulations A. Service Stations. 153.170 Sign Regulations CITY OF BALDWIN PARK - CHAPTER 153: ZONING CODE Sign Regulations 153.170 . ..... .... ........ — - -_---------------- . . . . . ........... -,""I'll" ................ 1. Each service station may maintain a maximum of 4 canopy signs, each having no more than 50 square feet of sign face area. 2. Each service station may maintain 1 permanently installed price sign not to exceed 40 square feet in area. 3. Each service station may maintain a maximum of 2 permanently installed or portable price signs not exceed 20 square feet in area. B. Automobile Dealerships. 1. Each automobile dealership may display banners and pennants with a total area not to exceed 15 percent of the square footage of the lot upon which they are located. 2. Each automobile dealership may display a maximum of 20 banners attached to freestanding light standards. Each banner shall not exceed 50 square feet of area. 3„ Each automobile dealership may display one pennant for every 2,500 square feet of lot area, up to a maximum of 12 such pennants. Each pennant shall not exceed 20 square feet in area. C. Electronic Readerboard Signs. 1. Signage Defined. An Electronic Readerboard Sign is a sign that incorporates changeable messages which may be changed by electronic processes or by remote control. 2. Applicability and Review. Electronic Readerboard Signs are allowed, subject to approval of a Conditional use Permit and Design Review, for businesses with a minimum of three 93) acres (for the overall business), within the C-2, F -C, I -C and I Zones, and along a designated truck route. This sign type may be installed in lieu of, but not in addition to, freestanding and/or monument signage permitted on-site. a. Design review shall include review of the following sign elements: sign style, sign height, sign size, number of other signs on site, sign placement and sign materials, subject to the criteria established in this subsection. 3. Orientation. Signs shall not face residentially zoned properties or residential uses, schools, hospitals, convalescent hospitals and other sensitive land uses as deemed appropriate through the conditional use permit process. 4. Message Duration. Message shall remain static for a minimum of eight (8) seconds. Message changes shall occur within a minimum of two (2) seconds and a maximum of five (5) seconds. 153.170 Sign Regulations 153.170-12 Sign Regulations 153.170 5. Activity. Messages on the Electronic Readerboard Sign shall rotate only during normal business hours or as deemed appropriate through the conditional use permit process. 6. Contrast. Electronic Readerboard Signs shall be adjusted to maintain contrast between the sign face and surrounding areas, subject to review and approval through the conditional use permit process. L'/rIM 7. Illumination. The following provisions apply to the illumination of Electronic Readerboard a. Automatic dimming controls shall be installed either by photocell (hardwired) or via software settings, in order to bring the lighting level down to avoid spillover and light trespass onto abutting oadjacent properties and to avoid gaat any time of the day. b. Electronic Readerboard Signs shalladjusted to minimize the degree of brightness and glare. Lighting levels should be sensitive to the environment and react with natural sources, subject o review and approval thr/u+s conditional use permit process. c. Sign illumination during nighttime hours may not exceed a maximum of luminance level of 75- cd/2 or Nits, regardless of the method of illumination. d. Electronic Readerboard Signs with external illumination, whether the lighting is mounted above or below the sign face or panel, shall fully shield all lighting fixtures or luminaries. 16`i W112 .• � PI-JANNING COMMISSION MINUTES, "HUF Cir ` ACTION MINUTES PLANNING COMMISSION OF THE CITY OF BALDWIN PARK Baldwin Park City Hall 14403 E. Pacific Avenue, Baldwin Park, California Council Chamber Wednesday January 24, 2018 7:00 P.M. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL ............. - ................. Kevin Rooney, Chair Mario Maciel, Jr., Vice Chair Members Present: Edith Flores, Commissioner Edwin Borques, Commissioner Christopher Saenz, Commissioner Christ.. .-. �r .-- — ..,,,....... Amy L. Harbin, City Planner Staff Present:. Abraham Tellez, Associate Planner Esther Washington, Department Assistant David J yOlivas, Assistant CitvAttorney PUBLIC COMMUNICATIONS Greg Tuttle CONSENT CALENDAR 1) Minutes from December 13, 2017 ACTION: Approved 4-0. Moved by Commissioner Borques. Seconded by Vice Chair Maciel. Chair Rooney, absent from December 13, 2017 commission meeting, abstained from voting on the Consent Calendar. Page 2 PUBLIC HEARINGS 2) A REQUEST FOR CONSIDERATION OF AN AMENDMENT TO THE CITY'S MUNICIPAL CODE (SIGN REGULATIONS) ADDING DEVELOPMENT STANDARDS FOR ELECTRONIC READER BOARD SIGNS, PURSUANT TO SECTION 153.210, PART 15 IN THE CITY'S MUNICIPAL CODE (LOCATION: COMMERCIAL, INDUSTRIAL AND MIXED USE ZONED PROPERTIES; APPLICANT: CITY OF BALDWIN PARK; CASE NUMBER: AZC-188). ACTION: Approved 5-0. Moved by Commissioner Borques. Seconded by Commissioner Flores. 3) CONTINUED FROM DECEMBER 13, 2017. A REQUEST FOR APPROVAL OF A MODIFICATION TO AN EXISTING CONDITIONAL USE PERMIT TO INCORPORATE THE ADDITION OF TWO (2) PROPERTIES INTO THE OVERALL ALLAN COMPANY RECYCLING FACILITY AND THE ADDITION OF AN ELECTRONIC READERBOARD SIGN ADJACENT TO ARROW HIGHWAY WITHIN THE INDUSTRIAL COMMERCIAL (IC) AND INDUSTRIAL (1) ZONES. (LOCATION: 11618 ARROW HIGHWAY, 14634 ARROW HIGHWAY AND 14635 JOANBI IDGE STREET; APPLICANT: KARA BOUTON REPRESENTING ALLAN COMPANY; CASE NO.: CP-404MOD). ACTION: Approved 5-0. Moved by Commissioner.Saenz. Seconded by Commissioner Maciel. 4) A REQUEST FOR CONSIDERATION OF A TENTATIVE TRACT MAP TO SUBDIVIDE ONE LOT INTO TWENTY-THREE (23) ATTACHED RESIDENTIAL CONDOMINIUM TOWNHOME UNIT'S AND ONE (1) COMMERCIAL CONDOMINIUM UNIT WITHIN ONE (1) COMMON LOT IN THE MU -1, MIXED USE 1 ZONE OF THE DOWNTOWN TRANSIT ORIENTED DEVELOPMENT SPECIFIC PLAN, PURSUANT TO TABLE 152.10 IN THE CITY"S MUNICIPAL CODE. (LOCATION: APN 8437-013-905; APPLICANT: ALEX HERNANDEZIBR:+ANDYWINE HOMES; CASE NUMBERS: TM - 75031). Read Patera and Alex Hernandez spoke on proposed project. ACTION: Approved 5-0. Moved by Commissioner Saenz. Seconded by Vice Chair Maciel to continue the item to the February 28, 2018, Planning Commission meeting. 5) A REQUEST FOR CONSIDERATION OF A MODIFICATION TO EXHIBIT "A" OF CP- 827MOD#1 FOR CHANGES TO THE SITE PLAN AND A REVISED TENTATIVE TRACT MAP TO SUBDIVIDE THE PROPOSED BUILDING INTO TEN (10) INDIVIDUAL WAREHOUSE CONDOMINIUM UNITS AND ONE (1) COMMON LOT WITHIN THE I, INDUSTRIAL ZONE PURSUANT TO SECTION 153.210.130.0 AND 152.10 IN THE CITY'S MUNICIPAL CODE. (LOCATION: 5119 AZUSA CANYON RD. UNITS A THRU J; APPLICANT: CHALMERS CORPORATION DBA CEG CONSTRUCTION; CASE NO.: CP-827MOD#2 AND TM -74854 REVISED). G:TC Minutes\PC Action Minutes January 24 2017 Paae 3 Richard Lucas spoke on propose project. ACTION: Approved 5-0. Moved by Vice Chair Maciel. Seconded by Commissioner Saenz. 6) A REQUEST FOR CONSIDERATION OF THE FOLLOWING: (1) A TENTATIVE PARCEL MAP TO COMBINE TWO LOTS INTO ONE LOT; (2) A DESIGN EXCEPTION TO FACILITATE THE CONSTRUCTION OF A 52 FOOT TALL MONO -EUCALYPTUS WIRELESS COMMUNICATION FACILITY IN A RESIDENTIAL ZONE; AND (3) A CONDITIONAL USE PERMIT FOR A WIRELESS COMMUNICATIONS FACILITY WITHIN THE R1, SINGLE FAMILY RESIDENTIAL ZONE, PURSUANT TO TABLES 152.10 AND TABLE 153.180.050 IN THE CITY'S MUNICIPAL CODE. (LOCATION: APN 8460-001-900 AND 8460-001-901; APPLICANT: VERIZON WIRELESS - RELIANT LAND SERVICES C/O STELLA SHIH; CASE NO.: PM -1437 AND CP -856). Anna Alvarez spoke on proposed project. ACTION: Approved 5-0. Moved by Vice Chair Maciel. Seconded by Commissioner Saenz. 7) A REQUEST FOR CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A NEW WIRELESS COMMUNICATIONS FACILITY ATTACHED TO AN EXISTING LIGHT FIXTURE AND ASSOCIATED MECHANICAL EQUIPMENT, PURSUANT TO SECTION 153.180.040.B.3 IN THE CITY'S MUNICIPAL CODE. (LOCATION: PUBLIC RIGHT OF WAY ADJACENT TO 4064 STERLING WAY (APN: 8553-012-024); APPLICANT: BEN JOHNSON REPRESENTING MOBILITIE LLC; CASE NO.: CP -857). Ben Johnson spoke on proposed project. ACTION: Approved 5-0. Moved by Commissioner Saenz. Seconded by Vice Chair Maciel REPORTS OF OFFICERS 8) Planning Division Monthly Report for November, 2017 No action taken. COMMISSION/STAFF COMMUNICATIONS 9) Verbal update on the propose Irwindale Material Recovery Facility and Transfer Station (Location: 2200 Arrow Highway; Applicant: Athens Services). No action taken. G\PC MinutestPC AcUon Minutes. January 242017 Paae 4 ADJOURNMENT The Planning Commission adjourned the meeting at 8: 36 p.m. Approved as presented/amended by the Planning Commission at their meeting held on Amy L. Harbin, Secretary Baldwin Park Planning Commission GAPC Minutestt'C Action Minutes, January 24.2017 ORDINANCE NO. 1405 AN ORDINANCE OF CITY COUNCIL OF THE CITY OF BALDWIN PARK ADDING SECTION 153.170.090.C, AMENDING TABLE 153.170.080 AND AMENDING THE TITLE OF SUBSECTION 153.170.090 RELATING TO ELECTRONIC READERBOARD SIGNS. WHEREAS, signs located within the City can provide a reliable means of advertising for a business, they also can be detrimental to the safety, aesthetics and general welfare of the community without development standards; WHERAS, larger businesses with three (3) or more acres, along major thoroughfares would desire alternatives to standard static signs to promote their business within the City of Baldwin Park; and WHEREAS, the overall intent of proposed amendments is to provide additional support for existing and newly established businesses and larger businesses and not circumvent, the intent subchapter 153.170 relating to urban design, vehicular and pedestrian safety, visual quality, and communication. NOW, THEREFORE, the City Council of the City of Baldwin Park does hereby ordain as follows: SECTION 1. The foregoing recitations are hereby adopted by the City Council as findings. Based on those findings, the City Council determines the public health, safety and general welfare of the City of Baldwin Park, its residents, property owners, businesses and visitors can be enhanced by amending the Baldwin Park Municipal Code (BPMC) to allow electronic readerboard signs with development standards it is in the best interest of the community to amend the BPMC accordingly. SECTION 2. Based on the foregoing findings and determinations, the title of subsection 153.170.090 of the BPMC is amended to read as follows: § 153.170.090 — Sign Regulations for Specific Land Uses or Sign Types In addition to other standards set forth in this subchapter, the following land uses or sign types are subject to the following regulations SECTION 3. Based on the foregoing findings and determinations, the BPMC is amended to add Section 153.170.090.C, to read as follows: C. Electronic Readerboard Signs. 1. Sign Defined. An Electronic Readerboard Sign is a sign that incorporates changeable messages which may be changed by electronic processes or by remote control. Ordinance 1405 - Page 2 2. Applicability and Review. Electronic Readerboard Signs are allowed, subject to approval of a Conditional Use Permit and Design Review, for businesses with a minimum of three (3) acres (for the overall business), within the C-2, F -C, I -C and I Zones and along a designated truck route. This sign type may be installed in lieu of, but not in addition to, freestanding and/or monument signage permitted on-site. a. Design review shall include review of the following sign elements: sign style, sign height, sign size, number of other signs on the site, sign placement and sign materials, subject to the criteria established in this subsection. 3. Orientation. Signs shall not face residentially zoned properties or residential uses, schools, hospitals, convalescent hospitals and other sensitive land uses as deemed appropriate through the conditional use permit process. 4. Message Duration. Messages shall remain static for a minimum of eight (8) seconds. Message changes shall occur within a minimum of two (2) seconds and a maximum of five (5) seconds. 5. Activity. Messages on the Electronic Readerboard Sign shall rotate only during normal business hours or as deemed appropriate through the conditional use permit process. 6. Contrast. Electronic Readerboard Signs shall be adjusted to maintain contrast between the sign face and surrounding areas, subject to review and approval through the conditional use permit process. 7. Illumination. The following provisions apply to the illumination of Electronic Readerboard Signs: a. Automatic dimming controls shall be installed, either by photocell (hardwired) or via software settings, in order to bring the lighting level down to avoid spillover and light trespass onto abutting or adjacent properties and to avoid glare at any time of the day. b. Electronic Readerboard Signs shall be adjusted to minimize the degree of brightness and glare. Lighting levels should be sensitive to the environment and react with natural light sources, subject to review and approval through the conditional use permit process. C. Sign illumination during nighttime hours may not exceed a maximum luminance level of 750 cd/m2 or Nits, regardless of the rnethod of illumination. d. Electronic Readerboard Signs with external illumination, whether the lighting is mounted above or below the sign face or panel, shall fully shield all lighting fixtures or luminaries. Ordinance 1405 - Page 3 SECTION„4. Based on the foregoing findings and determinations, the BPMC, Table 153.070.080 is amended to read as follows: ,rabI e 153.170.080 Sip R gula6on by Zome ------- Maxim(rvII ma initnil Maximum ---------- ---- ----- Zone Sign T pe Ntimbef Sign Area Height Notes ....... -G and Monument 1 24 sf 4 ft -3 Wall 1 36 sf 4 ft Monument 1 per frontage 32 sf 6 ft C-1, MU -2 Wall 1 or more 50 sf 4 ft Monument 1 per frontage 64 sf 12 ft in lieu of a monument sign, an C-2, Electronic Readerboard Sign MU -1 may be permitted, subject to F -C, approval of a Conditional Use I -C, Permit and Design Review, without provided the sign complies with freeway the provisions outlined in frontage §153.170.90.C. Wall 1 or more 2 sf of sign area per 6 ft �.�.. .. linear foot of primary building frontage Secondary 1 or more 1 sf of sign area per 4 ft Wall linear foot of primary building frontage each linear foot of primary building frontage Ordinance 1405 - Page 4 Table 153.170 080 Sign e ulatio sy Zone ® Mr"iYxiI'npi] ...__. �Ma ilnu'm Maximum .r.. Zane Sign Type Number Sign Area Wight Mattes Freestanding 1 1 sf of sign area per 1 80 ft 1. A maximum of 1 linear foot of street freestanding sign is permitted frontage for lots with less than 800 linear feet of street frontage. One additional freestanding sign is permitted for lots with more than 800 linear feet of street frontage. For this C-2, F- purpose, a commercial center C, I -C, is considered a single lot. with freeway 2. Additional sign face area for frontage monument signs may be granted in lieu of use of freestanding signs, per criteria established by the Director of Community Development. n 3. In lieu of a freestanding sign, an Electronic Readerboard Sign may be permitted, subject to approval of a Conditional Use Permit and Design Review, provided the sign complies with the provisions outlined in §153.170.90.C. Monument 1 40 sf 20 ft In lieu of a monument sign, an Electronic Readerboard Sign I may be permitted, subject to approval of a Conditional Use Permit and Design Review, provided the sign complies with the provisions outlined in §153.170.90.0. .....................,Wall...... 1 or more ....... ..........1....sf..o......-�_.. ...�.,.._ f sign area for 6 ft each linear foot of primary building frontage Ordinance 1405 - Paae 5 SECTION 4. This ordinance shall go into affect and be in full force and operation from and after thirty (30) days after its final reading and adoption. PASSED AND APPROVED ON THE _ day of , 2018 MANUEL LOZANO, MAYOR ATTEST: ALEJANDRA AVILA, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss: CITY OF BALDWIN PARK ) I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on ._._.................... .. , 2018. Thereafter, said Ordinance No. 1405 was duly approved and adopted at a regular meeting of the City Council on ........._._.._m..._. ..... ....... _„ mm , 2018 by the following vote: AYES: COUNCILMEMBER: NOES: COUNCILMEMBER: ABSENT: COUNCILMEMBER: ABSTAIN: COUNCILMEMBER: ALEJANDRA AVILA, CITY CLERK 1 ITEM NO. STAFF REPORT; TO: The Honorable Mayor and Members of the City Council FROM: Gustavo Romo, Director of Community Development Suzie Ruelas, Housing Manager til DATE: March 7, 2018 SUBJECT: PUBLIC HEARING REGARDING FISCAL YEAR 2018-2019 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP FUND (HOME) ANNUAL ACTION PLAN SUMMARY For the City Council to hold the first of two required public hearings and receive public input regarding the Community Development Block Grant (CDBG) and HOME Investment Partnership Fund (HOME) FY 2018-2019 Annual Action Plan; and to consider the funding allocations for the FY 2018-2019 CDBG Public Service. FISCAL IMPACT The impact to the general funds is unknown at this time. As with previous years, it remains important to note that the continuous reductions in City's annual CDBG and HOME allocations from HUD in addition to the recurring Section 108 Loan annual payment, averaging $470,000, earmarked through FY 2021-2022 will have a tremendous impact on the CDBG funded projects. Hence, the approval of proportional funding to all CDBG projects for the next five years will determine the extent of the impact to the general funds. The CDBG and HOME fund budget will be reflected in the FY 2018-2019 City budget presented to the City Council for approval. RECOMMENDATION Staff recommends that the City Council conduct the public hearing and following the public hearing approve the allocations for the FY 2018-2019 CDBG public service programs by selecting one of the following options: OPTION 1: Approve the Joint Commission's recommendations for funding; or OPTION 2 Revise allocations as the City Council deems appropriate BACKGROUND Pursuant to Housing and Urban Development (HUD) regulations, the City prepared its five-year strategy designed to address the housing needs of extremely low, low and moderate -income households within the community. The current Five Year Consolidated Plan covers years 2015-2019. CDBG/HOME Public Hearing March. 7, 2018 Page 2 The City must also prepare and submit an Annual Action Plan each year within the five year plan to identify the actual projects implemented and funding allocated to address the needs identified in the Five Year Plan. The FY 2018-2019 Annual Plan is due to HUD by May 15, 2018. Included in the process of preparing its annual Plans, HUD requires the City to encourage citizen participation by holding community meetings and two public hearings. To ensure citizen participation from Baldwin Park residents, the City created the CDBG Advisory Committee. The CDBG Advisory committee reviews and considers proposed projects and reviews applications for public service programs. Two committee meetings were held before the CDBG Advisory Committee and funding recommendations were approved on February 8, 2018. This first public hearing is to provide the City Council the opportunity to receive public comments regarding the Annual Plan. It also provides public service applicants the opportunity to make presentations regarding their services and benefits to our residents. Since HUD has not yet announced the FY 2018-2019 Federal CDBG and HOME allocations, the proposed funding in this report considers the same funding level as in FY 2017-2018, which is $920,087 in Community Development Block Grant (CDBG) funds and $218,575 in HOME Investment Partnerships (HOME) entitlement funds. The City is also estimating about $20,000 in HOME projected program income. Of the CDBG amount, up to 15% may be allocated to public service programs, which equates to $138,013. The 15% max to public service programs is not a requirement, and although it provides funding for types of assistance to low-income youth, elderly, disabled, homeless and other special needs individuals, the City Council may opt to reduce the total amount allocated to public services programs at its discretion. The total CDBG and HOME funding available for FY 2018-2019 is estimated as follows: FUNDING RECOMMENDATIONS Although the main focus for this public hearing is to consider funding for pubic service programs, in order to accurately determine the amount of funding available for public service allocations, the City must also consider and, where applicable, determine funding for each of the following FY 2018-2019 CDBG programs at this time. Economic Development Programs - Section 108 Loan Repayment The Section 108 Loan has the greatest CDBG funding allocation for the next six years. During the 2005- 2006 Program Year, the City utilized a $3 million Section 108 Loan program to support an economic development project that included a Super WalMart Department store and other commercial businesses. The Section 108 Loan project is considered an economic development project that created employment opportunities to over 320 low -and moderate -income individuals. CDBG/HOME Public Hearing March. 7, 2018 Page 3 The Section 108 loan was provided to the City under an agreement it be repaid with future CDBG funds. In 2015, the City refinanced the Section 108 Loan interest and reduced the annual payment. The amortization schedule reflects the City's loan to be paid in full by August 1, 2021 with payments fixed as follows. To remain in compliance with its Loan agreement, the City cannot reduce the amount allocated to the Section 108 repayment. Therefore, it would be prudent for the City to begin reducing the expectations and allocations to other CDBG programs, at least through Fiscal Year 2021-2022, when the Section 108 Loan will be paid in full. Public Service Programs Again, while the City may allocate a maximum of 15% of its annual allocation to public service programs, there is no regulation to prohibit the City from allocating less than 15%. This may be an area of funding to consider reducing, at least until the Section 108 Loan is completely repaid. If not considered this fiscal year, a reduction in public service programs may be considered next year. Commission/Committee FY 2018-2019 Recommendations The City held two community meetings regarding the CDBG funding process. At the meeting held on February 8, 2018, the CDBG Advisory Committee heard presentations from public service agencies requesting funding and approved the following funding recommendations for the City Council to consider. * Indicates City of Baldwin Park Services Program description of each public service application is also attached for your review. (Please see Attachment) CDBG/HOME Public Hearing March. 7, 2018 Paqe 4 Administration Each year, the City may allocate a maximum of 20% of the annual CDBG entitlement allocation towards administration and planning. This includes staff costs and operating expense for the overall administration of the CDBG program and a portion for the required Fair Housing Services. Assuming the annual allocation at last year's level, this year's maximum equates to $184,017. Staff understands that $2,500 is not an amount feasible to expect the Housing Rights Center to provide the HUD required fair housing services to our residents. However, the CDBG funds available for administration services limit the City's ability to provide sufficient funding using CDBG funds only. Therefore, the Baldwin Park Housing Authority, which regularly partners with the Housing Rights Center, also provides funding to meet the fair housing needs of our residents. Capital Improvement Projects. There are no CDBG funds proposed for Capital Improvement projects. The City will proceed with FY 2018-2019 Capital Improvements projects using other source of funds. Housing Programs Pursuant to CDBG regulations, housing programs are required to create or maintain decent affordable housing for low-income areas and residents. The City's CDBG Housing programs include homeowner rehabilitation grants offered to the extremely -low to low-income households with a preference to the elderly and disabled. The proposed funding level of $15,000 to the Residential Home Rehabilitation Grant program provides for at least two grants. Also included is the lead testing program, which HUD requires for all CDBG and HOME rehabilitation projects. The Rehabilitation Administration program provides for the inspections, loan underwriting and all other operating cost of rehabilitation projects, including the annual monitoring of development projects such as ROEM Metro Village, TELACU, and the City's CHDO affordable housing projects. The Code Enforcement Department provides for code activities in distress neighborhoods in conjunction with other neighborhood enhance programs. CDBG/HOME Public Hearing March. 7, 2018 Paqe 5 HOME Funds HOME funds are much more restrictive than CDBG funds. The projects are limited to affordable housing projects. Proposed FY 2018-2019 HOME fund projects are as follows: 1) Administration - 10% maximum allowed for planning and administration plus 10% of program income received in previous years. 2) Community Housing and Development Organization (CHDO) Program —HUD requires 15% of the annual allocation to implement an eligible CHDO activity; The City currently has two successful partnerships with CHDO organizations for affordable rental projects. Staff continually seeks opportunities for new affordable housing CHDO projects. Under consideration is subsidizing the CHDO HOME funds with remaining Housing Set aside funds for additional acquisition/rehab/multifamily rental affordable housing project. Once a project has been identified, details will be presented to the City Council for final approval. 3) Housing Development — This project is proposed for use in conjunction with a CHDO if possible, but not as a requirement for the development of new affordable housing units. Once a developer is identified, a proposed project will be brought before the City Council for review, direction and approval. 4) Residential Rehabilitation Loan Program — Project provides low-income property owners of owner -occupied properties loans to rehabilitate their properties and ensure compliance with all local, state and federal building and safety codes. Proposed funding provides for 7 loans. 5) Lead Abatement Grant Program — Project requirement to meet HUD's regulation for properties participating in rehabilitation programs. As a reminder, HOME funds must be committed to a project within two years from the date of funding to the City and expended in five years. If these requirements are not met, funds become at risk of recapture from HUD. Staff continues to make every effort to avoid recapture, however, factors such as the current housing market, lack of available additional funding resources and the stringent HOME requirements sometimes make it difficult to implement successful projects. Unfortunately, the recapture regulation is statutory and cannot be waived and extensions for these deadlines are not available. Public Review Pursuant to the City's Citizen Participation Plan, the City is required to hold two public hearings during the preparation of the subject plans. This first public hearing allows the City Council to approve a draft plata to snake available for the i°equir°ed 30 -day review and comment period. The draft : lards will be available for public review at (sity l lull, 3rd floor and the Esther Snyder Community Center beginning April 2, 2018 and concluding at the second public hearing schedule for May 2, 2018. CDBG/HOME Public Hearing March. 7, 2018 Paae 6 LEGAL REVIEW: No Legal Review is necessary at this time ALTERNATIVES Alternative to Public Hearing To remain on schedule with a prepared draft plan and meet the 30 -day public review/comment period, proposed allocations must be approved at this time. Therefore, time restraints make it difficult to allow for an alternative to holding this first public hearing. The City Council will have an opportunity review and make any desired revisions before the final approval during the required second public hearing scheduled for May 3, 2017. Alternative Funding Options There are alternatives in the funding allocations that the City Council may consider. As previously mentioned, HUD only establishes a maximum 15% of the City's annual allocation to public service programs. The City may opt to provide less funding and/or eliminate funding to certain public services for this fiscal year. This would make funding available for other programs such as the reduced Code Enforcement. After 2021, when the Section 108 Loan is paid in full, the City would likely have funding available to implement new programs or reinstate cancelled programs. Attachments: Public Service Applications City of Baldwin Park FY 2018-2019 Community Development Block Grant Funds Public Service Request for Funds Contact Person: Chris Hofford Phone Number/Ext. (626) 960-1955 x 488 (Previous Year Allocation): $23,640 CDBG Amount Requested: $25,000 Other Funds: $0 Total: $25,000 (Please attach a copy of your proposed budget) Project Description: A Domestic Violence (DV) and Victim Advocate works hand in hand with the Domestic Violence (DV) /Sexual Crimes Detectives to provide emergency assistance to victims, guiding victims as their cases go through the criminal justice system. They function as the coordinator for police, health, social and shelter services available. The DV advocate would be responsible for conducting on-going community outreach and education, providing services and training to police officers, detectives, schools, and other community groups. On a day to day basis, the DV advocate would receive a copy of every DV report and trrake contact with each victim. The following services would be provided as necessary: Counseling, support, Court appointed group DV classes, accompany DV victims to court, assist in obtaining restraining orders,. Referral services to Project Sister, Choices, House of Ruth, Spirit Family Service Center, Baldwin Park Adult School, Department of Children and Family Services, and Department of Adult Services, and coordinate with the District Attorney's Victim's Advocate. This Program brings together the DV Detectives, the Advocate, local social service providers, and the administrative staff, forming a specialized unit. This will result in the centralization of the handling of DV cases as they move through the criminal justice system. Staff believes the victims have been, and will continue to be, well served by the continuation of this specialized unit. The advocate is also available to assist DV victims, sex crime victims, their children and family members, and all other victims of crirnes as needed. The funds requested will allow for the Advocate position to be staffed for 20 hours per week. Accomplishment Data The goal of the program is to assist the approximate 150 victims and or households which have been affected by Domestic Violence and more than 100 victims and family members of sex crimes. Additionally, the DV Advocate will assist several hundred additional victims of other crimes with advice, social services, Counseling or support, legal resources, medical assistance or referrals, shelter services, restitution information, relocation information, and coordinate witness protection if necessary. These services can greatly impact not only the victims, but the community at large. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. Households NI) Projected Number of Beneficiaries Served: 250 Households a a. For CDBG Department Use Only. Recommendation: Appt'ovedl_—� DenZI National Objective/ Eligible Ctiteti Comments: Reviewed By.,_, Approved.-, City of Baldwin Park FY 2018-2019 JAN ������' �� 1 1400 Community Development Block Grant Funds Public Service Request for Funds Contact Person:—Manuel Carrillo, Jr. _ Phone Number/Ext. _Ext. 314, (Previous Year Allocation):_$23,000. CDBG Amount Requested: $_25,000_Other Funds: $_57,500 Total: $_82,500 (Please attach a copy of your proposed budget) Project Description; Family Service Center The Family Service Center offers a variet of social service assistance to the residents of Baldwin Park, The FSC iscentrall located and is easil accessible to all the residents. The services offered at the FSC include but are not limited to: medical access referrals food bank referrals, ewer en shelter vouchers, ernerciencv food vouchers _,m to ment counslelino, homeless prevention referrals, mental health ref rr Ism r enc ry trans ortationse mana grnent referrals_, tL4Lo rin, ,__an educational services assistance. Over 200 clients are assisted rnonthlv at the center. Many of clients face severe economic hurdles. Staff is committed to assisting those clients in need by id ntif inm loc l resources and servioes. The tar -et service area is low to moderate low income residents. Staff is recluestinci the amount of $25,000,00 to offset the costs of full time staffina for the facilltv. As noted above, the qen rel fund„ contributes to the operation of the F 1j1 ervioe Center by coverin expenses for utilities, materials and suplies buildin maintenance outside rintir and ailtime staffing. (Please attach additional sheet to provide additional Information if needed) Accomplishment Data Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. Individuals Youths Households Projected Number of Beneficiaries Served: Individuals or —500—Households For CDBG Department Use Only: Recommendation: ApprovedF-1 Deny $ National Objective /Eligible Criteria Comments., Reviewed By,` ..... �IT� Approved,,,—.----.--- City of Baldwin Park FY 2018-2019 Community Development Block Grant Funds �kr Public Service Request for Funds Contact Person: –Victoria Valverde—,,,,. – Phone Number/Ext. 960-3993 ext. 513 (Previous Year Allocation): $29,700 ww _wwwwwww mm CDBG Amount Requested: $_40,000 Other Funds: $ Totalis $_40,000 (Please attach a copy of your proposed budget) Project Description: This request will provide the GAP the funding for graffiti abatement services at public facilities within the City of Baldwin Park including: ARC Center, Morgan Park, Shyre Park, Hilda Solis Park (Teen Center/Skate Park), Barnes Park, and Walnut Creek Nature Park. The GAP will provide service to remove approximately 250,000 square feet per year throughout the community. The GAP currently provides free service for the removal of graffiti; in actuality, the responsibility is on the property owner. However, oftentimes the graffiti is not removed in a timely manner, necessitating the GAP to intervene for removal. The subsidy will assist by removing graffiti throughout the community in the timely manner and more importantly the aesthetics of the community is maintained on a daily basis. The Public Works Department/GAP desires to continue the current program of assisting wherever graffiti exist on the public facilities. Therefore the department is requesting the funding of $40,000 to be reinstated for FY 2018/2019. Accomplishment Data Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. Individuals Youths Households Projected Number of Beneficiaries Served: Individuals or _ .........mmmmm,,... I--Iouseholds For CDBG Department Use Only: Recommendation: pprove E_ —1 Denyl::] National Objective/ Eligible Criteria Comments: Reviewed B: Approved: City of Baldwin Park FY 2018-2019 Community Development Block Grant Funds Public Service Request for Funds Contact Person: Chris Hofford (Previous Year Allocation): $20,000 CDBG Amount Requested: $30,313.80 (Please attach a copy of your proposed budget) Phone Number/Ext. (626) 960-1955 x 488 Other Funds: $0 Total: $30,313.80 Project Description: The PRIDE program is specifically designed to deal with at risk youth. It utilizes proactive and innovative techniques for positive redirection. Overseen by Baldwin Park Police personnel, the 8-week.program offers treatment, prevention and disciplinary components to alter negative behavior. The PRIDE program is a collaborative effort between law enforcement and community-based organizations, with law enforcement being the facilitator. The objective of the program is to identify problems within the family that have surfaced through juvenile delinquency. Juveniles with antisocial behavior such as truancy, incorrigibility, minor law offenses, etc., may be considered for the program. The components of the program are: Intake Night, Counseling and Family Action, Community Service, Physical Training, Behavior Modification, Career Guidance and Classroom Curriculum. The requested funding will allow the Police Department to host one PRIDE program consisting of 40 youths. Accomplishment Data The goal of the program is to complete one 40 -youth PRIDE program with a 100% graduation rate. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. Households Projected Number of Beneficiaries Served: 40 Households For CDBG Department Use Only: Recommendation: pp ApprovedE Den .—J National Objective/ Eligible Crite Comments: Reviewed By,- Approved.°. Boot Camp Budget CDBG 2018/2019 Learning for Life / Insurance for POST 1906 $500.00 Museum of Tolerance $300.00 Staff and 40 students Bus Travel to Various Events $1,000.00 MRE Meals: $2,400.00 $80.00 x 30 cases Uniforms - Students $1,600.00 $40 x 40 Uniforms - Police Staff $2,000.00 $400 x 5 Graduation uniforms $600.00 $14.00 x 40 Salaries for Staff rate hours Officers (5) $41.64 80 $16,656.00 Supervisor (1) $52.16 80 $4,172.80 Miscellaneous: Plaques Graduation Refreshments Office Supplies Speaker Fees TOTAL FOR ONE PRIDE BOOT CAMP PROGRAM: 50s $200.00 $220.00 $165.00 $500.00 $30,313.80 City of Baldwin ParkJAN � FY 2018-2019 Community Development Block Grant Fur'ids "; Public Service Request for Funds Contact Person: _Manuel Carrillo, Jr. Phone Number/Ext. _Ext. 314 (Previous Year Allocation): $3,430 CDBG Amount Requested: $__ 4 000 Other Funds: $ 7. 000 _Total: $ 11.000 (Please attach a copy of your proposed budget) r w NO M r !1 OD • M (Please attach additional sheet to provide additional Information if needed) Accomplishment Data Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. Individuals Youths Households Projected Number of Beneficiaries Served: _80 Individuals or Households For CDBG Department Use Only: Recommendation: Approved = Deny = National Objective/ Eligible Criteria Comments: Reviewed ley. _ Approved; City of Baldwin Park �9 3 N 9 b FY 2018-2019 Community Development Block Grant Funds Public Service Request for Funds Contact Person: _Manuel Carrillo, Jr. Phone Number/Ext. —Ext. 314 (Previous Year Allocafion):_$ 4 933 CDBG Amount Requested: $ 18,000 Other Funds: $µ 15,000 Total: $ 33,000 (Please attach a copy of your proposed budget) Project Description: Youth_ Employment Program The programprovides surnn er Lo o ortunities for Mouth in the l aldwin baric communit who need _� em to rnent ex erience. The oroararn movides iob orioortunities, for low to low -moderate incom mouth a ed between '18 to 1 ears old. Each student will receive a rwroxi mate l 150 hours of work ex en nce, The youth em to mer�t�c� complements the Cit by acting as a feeder pco [am for regular art -time ositions. Every year,all „funds are exhausted and with the rrinim rn wa increase this will be ars additional factor in the costs of the r°o ram this ear. Thee Doth la a valuable le role and benefit from this valuable learnrn op ortunity w,h�il they° contribute to the dally o erations of the ON. entire allocated amount goes towards fundin thesal,- ;i r for.Ia yputh yLho are ern to ed. The department will use other funds to absorb the administration costs of the program n lUdinp, expenses for utilities materials and supplies, unrforrrrs out ide int na expenses_, faartici ant supervision and proc ram mane ement. (Please attach additional sheet to provide additional Information if needed) Accomplishment Data Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. PLEASE SELECT AND CIRCLE ONLY OF THE FOLLOWING REPORTING DATA. individuals Youths Households Projected Number of Beneficiaries Served: _10_Individuals or Flouseholds For CDBG Department Use Only: Recommendation: Approved Deny National Objective /Eligible Criteria _....... Comman Reviewed By: Approved,,,__. . APPLICATION CHECKLIST ORGANIZATION Church of the Redeemer / Redeemer Food Program Please complete an Application Form for each proposed program/project. if an item is not applicable, indicate "N/A" in the box. if you need assistance, or have questions, contact icllelle Bravo at 626 960-4011 est 364. 1 APPLICATION FORM 2. BUDGET PROPOSAL (ATTACHMENT A) 3. BOARD OF DIRECTORS AFFIDAVIT 4. ORGANIZATION BY-LAWS 5. CHARTER OF ARTICLES OF INCORPORATION 6. IRS TAX EXEMPT STATEMENT 7MOST RECENT AUDITED FINANCIAL STATEMENT 8W PAST AND PROJECTED ACCOMPLISHMENTS Application packages are due by 5 p.m., on 4ARMAryjljl�2018. Applications must be submitted to: Baldwin Park Housing Division 14403 E. Pacific Avenue Baldwin Park, CA 91706 kTE APPLICATIONS WILL NOT E EN ALTERED FROM ITS ORGINAL 3... qEPTr_n APPLICATIONS THAT HAVE MKIIAT WILL ALSO NOT BEAC CEPTED. � FUNDING APPLICATION BALDWIN PARK COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2018-2019 I. AGENCY INFORMATION Agency Name: Church of the Redeemer redeemer Fcod Pro ram Agency Address: 3739....�� ... ........� Address Monterey Ave. Baldwin Park 91706 Street city Zip Code Agency DUNS#: Administrator: Dr. Paul A. Flores Administrator Telephone: 626-960-9585 Administrator Email Plo°ecotrb� Project Site Address: 3739 ..... Number Monterey Ave Street Title: Senior Pastor Fax: 626-960-9587 Baldwin Park 91706 City Zip Code Project Manager: CeceliaCommunity Project Director _ ......_.. „ _.... 626-960-9585 626-960-9587 Project Manager's Telephone: Fax:...._-� _... Cece Project Manager's Email; .lia Bernal@us analytik-denacom Describe Agency's overall function or purpose. Include history and experience in providing this service. (If more room is needed, please attach an additional sheet). Themm Redeemer Food Program has been assistina the needs of the low-income individuals and families in the community of Baldwin park for over mIT26yeears 600 inddivid ualds and 125 households each month.food ro�ram serves more Man m- n food re t Has the Agency prevIOUSly received funding from the City of Baldwin Park? ..__....... Yes (it yes, nun ber of years 10) __w No -4- PROJECT PROPOSAL AND DESCRIPTION Grant Amount Requested $ 12,500.00 Scope of Services - Please briefly describe your proposed Project/Program and the objectives. The Redeemer Food Program provides food assistance to Individuals an families in the community that are described as: Low Income Benlors Irving on fixed-income . - bard -working low-income couples - Io sab4ed children and adults ..— = Ph sicall and deve p . i �. . �.. 1 iCt _. p so ..ree oss of ; ob I tragedy (fi .. hun mer and malnutrition W _ .. �. _ - A -s wwell as others suffer in from g alnutrition .. �� � did out on t . p owever wit.l the increasing and rl � s " lf, the her of volui�rte rs food baskets are assembled and handed services last Batuida of the mon Y ..._....� _s hese sorvic es more frequeia weekl outs and is ram has nid been offering food baskets on .� as program week. the prog committer l to Prov gur fari9i "--Fh-E— I through res out to those unable to i each o Y.., o ._ �-���goal our services and the amount of our Fee Cit ro ram Feed the �em. Our g is to ex and and increase . .w. m ve week as th.� � _ t .. way in(ividu Is/families eac ave to turn a ..�.. run out ofif000'. o not Beneficiaries - Please briefly describe the clientele that will benefit from your services (i.e. homeless youth, the elderly, disabled, handicapped, etc.) uals and families in the community if The grogram identifies those individuals y- . j,.._...� ...�.g .�w_.. _hilcfren, ._�..�_. � ..�.._�..� ....�. old s with chilr— d eh Baldwin Park wir..�.. a ��.._�... nd ho or it are sin le women wi c elderly, �w incorr�e�The rrial� Describe any special characteristics of your client population. Increase in Funding Request - If your agency flas been previously funded through Baldwin Park's CDBG program, and there is an increase in the amount of funding requested, please explain the purpose for the increase (i.e., increase in type of services or beneficiaries). annot aA i tt �r� L iA" wa4, Lino wgv i we a e jig..�orources airrl __ .. oto our curre Che ro ram o �tinue to grr�w err nicll b woi d o i�uiir��ci eas iimited ii.oilm res - rw. it rr �racr will allowus-19-r a i r r� . i rri(ti i(tL als l irrr~ug. jY�r _Lg ri d_•.�.��w_�.� CLIENT INTAKE INFORMATION The U.S. Department of Housing and Urban Development (HUD) requires that agencies obtain intake data from each client/family served. Application intake must be taken on all clients assisted with CDBG Funds. Supporting documentation is also reqLflred, Please see page 8 regarding Presumed Benefits. Does your agency obtain this information? X Yes Ice If yes, does your intake sheet and supporting documentation obtain the following: 1 Name yes- X No---- 2. Address Yes. X 3. City in which client last resided. Yes X No 4. Number of family members. Yes X No X 5, Total family (household) income. Yes No — & Ethnicity Yes X No 7. Female head of household Yes X No—.— Pursuant-to federal requlrernents, if .your agencyiS unable or unwilling to obtain the above information from its clientele, please do not submit an application for funding. However, if your agency is willing to accept the responsibility, obtain this information and retain supporting documentation for the required five years, the Executive Director must certify to that effect below: Dr. Paul A. Flores Senior Pastor Title of Officer Print Name ..... . .... Date Signature ACCOMPLISHMENT DATA Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. The reporting accomplishment data to be used by our agency will be: PLEASE CIRCLE ONLY ONE OF THE FOLLOWING: Qndividuals Youths Households Please provide the actual number of your agency's total clients assisted to date and the pjgLqcted data for the upcoming fiscal year. Please complete this table regardless if you receive CDBG funding for this current year BALDWIN PARK RESIDENTS ..... NON-BALDWIN PARK RESIDENTS Actual 07/1/17TO Current 2000 500 -7- Projected _ 07/01/18 TO 06/30/19 Presumed Benefit Income eligibility is not required for services rtpresumd be Benefit" benefit clientientele as defined by HUD. The following groups are considered Abused children Battered spouses Elderly persons Illiterate persons Persons with acquired Immune Deficiency Syndrome (AIDS). Adults meeting Bureau of Census definition of severally disable persons Homeless persons Migrant farm workers Which further describes the activity you are proposing? A) The project will benefit a presumed benefit* clientele as defined by HUD. g) X The client intake information will provide evidence that at least 51 percent of the clientele are persons whose household income does not exceed the CDBG eligible income limit. C) The projects limits services to only CDBG eligible -income persons. BUDGET In order to remain iri compliance with HUD's I -e ulations, your agency Must be able to separate amici identify expenditures of CDBG funds from other source of funding. Please complete the following tables with your agency'tl, current budget (including CDBG funds, if currently receiving Grinding) and the proposed budget, Identifying how the funds will be utilized. -8- C C V L m t+ c O 3 m , LL r � V .N d O m O O" L V N O C t a 0 Cl) W T O N n W ..o m N `� p O d C) C) I O O O O N O'r i0 O O N O co ti X C C O � V .N A L as LL r -- ----- .. d W C O C O d O fn p d N G. UJ '� T �1 CD in _ O N CM 0 7 O �, C T O Q CL " C) N A)LL E � I O O O O N O'r i0 O O N O co ti X O O co le O O 6 O N T O O N N T C .N O O d C d m a }, a +r ami � 0 7 O �, C d O Q N A)LL E � d ayia.wo� .� C^C LL 0- Q L C O N C) i O m V C a c\i c6 4 L6 co ti oo m O O co le O O 6 O N T O O N N T r IN Ire 114 1v .N d C d m C O Q E � d U L i V C °� pC O H r IN Ire 114 1v N a) O c a) Q W R L CL a 0 rn 0 c O O c�a 0 0 c O 7 ++ H LL milli• d • 0 • O O ,a In O o co m m C.) 0 0 L ',,. V / o o O Q. r O O a +�+ y�- p o o C o O T N (L o 0 O N CC) m cy.) T ++ Q cw U U a) O� O� V) O O W C 0 C O O O O m 00117 W = T r L.1... Q O � W Y c T CO a) i pOCL U O (J) m N 455 N 'Q CL Q � ...__ (D( o N a) O c a) Q W R L CL a 0 0 0 • O O O 0 0 6 00 milli• 6 • 0 • O O O In O 0 0 0 • O O O 0 0 6 00 O 6 6 0 O O O O In O o co m F- o 0 0 o o o o O n O O o O o O N 0 o 0 O N O T cy.) T co O� O� C) O O O ct O O O O O O O LO O O CO O � CV O T CO T C7 • 0 0 0 O O O cn dCO O O O O N 0 0 o o � n (Y)O 0 O O O 0 O 0 0 O 0 CO a) O� O� c r N ct LOO O 0 COO, COO O TO c 7FD N Jtm U CD CD 0 •? C J c 7 0) � (D( O O � O O O O C:) Q Q U) U C O' U O O O O C) 0 O O c w:rg O O O O o d O 'tet (D c a> co cd O 0 a) O O CSS C +' (D O O O • O O O O O cn dCO O O O O N O OO O O O (Y)O O, O O O O O O O CO a) O� O� c r N dO LD O O U) O ti c 7FD N Jtm U • cn dCO C cn dCO C a) c U) c 7FD N Jtm U - OL 5 •? C J c 7 0) E (D( (n N Q Q U) U C N U C U U co c UJ o a) Cn E c a> co cd O 0 a) CSS C +' (D L c C � 5 f COy CO 0 C C < O OP. oC �_ IM— 0 a- 2 U C) CC N C)o T N C6 T N l' J V L (6 1_ c6 oT T T T W [0 q r CL BOARD OF DIRECTORS Please list names of members and officers of the Board of Directors of this Agency (Allached an additional sheet, if necessary). If there are changes in the Board membership after the request is submitted„ the City of Baldwin Park must be notified in writing. Name Title Term Expires 1. Dr. Paul A Flores President/Senior Pastor Indefinite 2. Gladys Garcia Vice President February 2018 3. Elizabeth Navarro Secretary February 2018 4. Roman Rodriguez Treasurer February 2018 5. 6, 7.__-_ __w........_. _ mm ... _...... 8. Name of Executive Directorres __. Dr._Paul o......� All organizations that submit this application must provide accurate data concerning the number and income level of clients. Estimates are unacceptable except for start-up agencies. This stipulation shall also apply to all organizations, which are subsequently awarded funding. Any organization that falsifies information, either accidentally or intentionally shall be required to reimburse the City for any funds paid out and shall not be permitted to apply for funding in the future. - 11 - AGENCY CERTICATION As the Executive Director, or duly authorized representative of Redeemer Food Program (Agency), i-6 ertifthat the submitted tocarov de�he Iservicl �. y pp -fully p g is obligation under this proposal. This application is p es for the City of Baldwin Park as stated in this proposal. If this proposal is approved and funded, it is agreed that relevant federal, state and local regulations and other assurances, as required by the City of Baldwin Park, will be adhered to. I certify and declare under penalty of perjury that the information provided in this application is true and correct. Paul A Flores Print Name Signature 626-960-9585 Phone Number ?Floresa.).;otrb),or Email Address President/Senior Pastor �......._m Title of Officer Date Has the agency received notification of findings or concerns in the past 5 years? No. If Yes, Please explain Please provide corrective actions taken: 12 ... �y1Yo� e r„ J ^, ri 'f t a w As approved pp,mm d it the o Membership oif On Oictobier 2,4,1999, A.- Grievances or disputes between individual members of this church, or involving a member or 'this church, shall be first negotiated between ttie dispul.ants in good Faith and Christian deportment. ForfiailLIM Of SatiSfildol`y 0eg0tiation between them, the ni,ilter- should be then submitted to the Pastor for mediation or decision. If the Pastor is unable to resolve the matter between the parties, at request of either or any ol'thOln the inatter shall be heard before the Church Board, or a panel of spirinially qualified people chosen by the Church Board (hereinafter referred to as the Panel) with bath parties being given equizil oppor[Liflity to present their respective positions to the panel. 13. -In eveni the rnalter is til(en beyond friediation with the Pastor, the Church Board shall fix such ru, sonable rules and procedural guidelines as they deeni just and proper for the parties LO present the respective positions before the Nincl, so that good rnanners, propriety and prudence be preserved. Each party should be allowed to have the assistance of a layperson froni the membership to assist ill presentation of respective positions, In matters resolved by the Church Board without flurther action, sante shall be treated as privileged, and any record of such proceedings shall be sealed and not available to any third party or otherwise except upoil written �nreteal Consent Of the (11SI)LIUMAS, '17hese proceedings are binding al-bitration, and there shall be no other ' remedy between the 1),11 -ties beyond ttiose herein pr(�,,)vidcd. It, is intended that these provisions 'Will resOlve iiii.stinderstandings and help to quiet personal grievances, so to prorimle peace and harniony within the church. Domestic Relations matters or disputas between Unrilediale 1-amily nwinbers should not be entertained beyond mediation through the Pastor. It is not contemplated that these procedures apply to legitimate claims for physical injuries, or in lieu of civil remedies arising out of accidents. Section Two® Disputes between Individuals or Factions and the Church or Church Board A. -Disputes involving individuals or factions within or outside the church against. the Church Board of the entire nicinbership ofthe church, or the Jiurch coi porawn, shall be resolved by [,,finding arbitration. B.- The forum for arbitration of disputes concerned in this Section is the District Council; and, the arbitration panel shall be comprised of three disinterested persons, which three persons shall be appointed by the District Superintendent, preferably from among the District Council Executive Officers and/or the Presbytery. C. -The aibill-atioll, panel shall sel at 111I. -W 'aml place for hc:ljjjg of the dJtsptitc. bwNfeerl the parti(,.,s, wifli resort�ble:roceduralguidelinesforpresentatnthereof oAcMlidipttveitiand shall ffi �ao'by the par -ties, as the pailel dere llgas ,lust, proper and fiiir. The deLern-tination and award, or other disposition made by the panel oll, arbitrators, shall 1.)e final and conclusive, and binding upon the parties, from which there shall be no appeal. Section Three: Disputes between factions and the District Council 1,)ispittes arid gpievances by, this church or allY Minisler, mcniber or faction with -h) this CA111"C" agaff)stthe F)islrict Cmincil or (),therwise advel-sely al'f ctiri,g the District, OLUICilshall I)e ICSKAVO(l by hinding arbitrak"In, b.y subrnithnr g Sallie to the (icileral ""'ectetary of I'he (kneral GIABI,61 00,11C Asseniblics or (io(l, sinint-01chl, Missouri, For rc�,,;olutlon according to such rules and regulations as he may set, al)(l in accordance with I lie iener� " a are For of tile (� al Council, as SUCh f3y-L' WS ' DOW or from bine jo time imay be airtended. The detern'll"aholl rrutdc by the (reneral Secretary or his designees shall be final and binding between the par From which then,k- shall be no appeal, 19 Section Four: Alternative Resolution In event the District Superintendent or General Secretary cannot resolve the disagreements, or is unwilling or unable to appoint a panel to hear and determine the matters in dispute, as indicated in Section Two and Section Three above, the matter shall be heard before an arbitration panel selected as follows: each disputant faction shall select a single arbitrator, and the arbitrators together shall then opygm-9 i r ti�on v.nel, In event such arbitrators are unable to agree upon the neutral arbitrator, then such third arbitrator shall be determined under procedures provided in the Uniform Arbitration Act. All persons serving on such arbitration panel must be practicing born-again Christians. The arbitration panel shall set a time and place for hearing of the dispute between the parties, with proper notice and opportunity for each to be heard and present their respective positions, and shall fix reasonable procedural guidelines for re t r and fair. A final determination and ientation thereof 6 the i)arties, as the ianel deems just, roje num, I KI a 11 grAlam I I ro [mr-A WAM. w" 161 LOU I IM Or! I IVA X"A'ARROJ WRLM 1 EN IN PJ I I IN IM Amcndments to these By -Laws may be made only by vote of the active voting members at a regular Annual Business Meeting, or at a Special Business Meeting of the membership of this church specially called for that purpose, provided that such Business Meeting has been duly called and noticed at least two Sundays prior to such meeting, and as provided elsewhere in these By -Laws. The proposed amendment text shall be publicly posted in a conspicuous place within view of attendees at the church sanctuary, and sent by mail to each active member at his or her address of record, at least ten days prior to such Business Meeting at which the amendment is to be considered. Amendments to these By -Laws shall require a two-thirds affirmative vote of those active votini members present and voting at such Business Meeting, after a quorum is established. 20 ALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of o z ­ County . . . . . ........ . .. .... On_ before me, 71 personally appeared,-.. NAW 'I'l H F OF OFFICER - E.G..'JANE DOE, NOTARY PUBLIC' 21111M personally known to me - OR - [a" roved to nid"on tl-,ie bcisis of s�ltisfi`lcl,Ory eviderice, to l)e jllr, whose narne(SI 1, stibscril-mcl to If"fe within insilvaient and knowledge(] to In AU that by _)af,,,ity(jols), and I eYoo?l W, GU41ENs-lE0"JIr tho perscu, ignalure(s) or) ttle it"IS111111 I ZX28 7 4 upon behalf ol which the PIK) tANY r1.jjTL9" � CAt F09W rL C"W' ra, b 4) 11 t' 3 14 gq, � 2, person(s) acted, executed the instrument. Jilin* 'WIM11yananum]; -M-11 WWII I I 7j)r)rprlI4 tl,jj„ qjata ge,pkvs1qd herr"r is not required by law, It fr,'(')0J prevtnt frnurhAent msclnnjent of this form, WITNESS ji4yfiI"1r-i'd and offi olitillism OPTIONAL SECTION rmlitz'011 CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the document. 0 INDIVIDUAL 'dLRPORATE OFsi)CER(S) E] PARTNER(S) 0 LIMITED [j GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER. . . . . ........... . . . ........... - ,, .... SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) SIGNAIWREI)I-,')A�11AJr� OPTION-CL7SECTION WF 0, )474',7 "L., =,7 A elff 1_1 I LE OR TYPE OF DOCUMENT . . . . ........... .. . . ... . . ..... ... ........ ... ... NUMBER OF PAGEs DATE OF DOCUMENT_ r. SIGNER(S) OTHER THAN NAMED ABOVE . ........ .. dG" .. . . . . . ......... ... --------- - - .... . . ...... 07199? -1 NA - l IONAI NOFARYASSOCIAIICIN'-.8.23.6'1"Im F C'Ajt�l'13(79-'71B i VM tfioW P'(`()'NST1TL1'H—()!1i LP That I am the duly elected, qualified and serving Secretary of CHURCH OF THE REDEEMER aad that the above atidl,'oregoing 00(je of Colisfitutioii & By -Laws was subj-6itted to, the Meulbeiship and was ratitled and adopted as the Constitution and By -Laws ofthe co . rporaw,')n by the ivcluij-ed Vk)tC of Membership entitled to exercise the voting power of said corporation. IN WITNESS WEEREOF, I have hereunto set my hand and affixed the official seal tl-ds date: B'Y-L,A%A/S-D0C,9 24-99 DOC A,/ ......... ul I,( S CfjUNTY V Bpd�s Nov. 22.2002 CONSTITUTION AND BY-LAWS CHURCH OF THE REDEEMER, AFFILIATED WITH Od 10 Ccl 11 K "A %Aved pe-olile who shall constifi,ite theBody WHEREAS, it is the eXPIVSS Pl1q)OSe (')f' iI n[mil tile f(KAlidatioll of the Apostles and Proplids, or Chlircil ol"ourLord JeSLIS Clirist, established Jesus Christ Hrnself" beirkg the: Chief COrlic_St011e; and,, God has ordained that His Universal Church should find expression in and through local churches, to assemble together fOr worship, fe'llowshiPI counsel and instruction in the Word of God, to do the works of ministry, and exercise spiritual gifts and offices as provided in the New Testament-) THEREFORE, this corporation is formed to propagate the Gospel of Jesus C,'Iilist, according to the Holy Bible, in fellowship with THE, GENERAL COUNCIL OFTIIE ASSEMBLI[ES OF 01) a. Missolll-iCoq)oration, as a local cillu-ch under the headsl)IP of the Lord Jesus 'Nonp with customs and traditions of ['N,'Vigelical J)ejitcoostal Chr-istianity, and, in these prerises, tie j,(,)jl()NVjjjg,- C(mstitution oilid By -Laws are adopted: N, LF F LI -11—D _0 ARTICLE ONE -ISA The name of this corporation is CHURCH OFI,FfE REDEEMER ilxlp[y ,ts "Gillurch" " or cwjlora� 11,101l Ileivinafter referred to S '601 , g1l this col-poration array by S res(,.)jution of the ('11LIFC11adopt other and fictifiol,ts names for tile, Pill) , Me Of cl"i"19 b"lless till-oligh its various departments alld pmgrams, as (leeilied iwc,(w,ssal'y, c0tivellient or expedient, and ill sucli nianner as to be in ca all,'AhIllce %viifi law. ARTICLE TWO - FOUNDATIONAL CONSIDERATIONS, PIIUNCHLES, PURPOSES, TENETS OF FAITH Sectioll Ogle: Slipreme Authority of'ttht 11oly Bible 'nis church holds the, Bible, the I loly NVORI of'God, to be silpreine ilI 'it eve, Y chul-cli, tile ultimate aLitholity Rn rLiles of ordel"in keeping witi'l tile S13il-it Of (llr'stand, tiv "6111 we borga(1-trislian sliould ell( le,'Ivoi-to keel) 111C L11111y (A'Ille SPirit't' t1le 1301"C' Orpeace.'' ,Ici (,)f Ifle 1�11o\vje& e o f,tIjc s)v) ()fGod, l,nao a pci-rccl 11'1'ati, linto all coale it, tile jill'ty of'theflaith, ai jill-0 ()1711,le f1jililesq (Ephesians 413). the i'lleasure of' ["tire Sta Section Two: Purposes- Worship, Evangelism r)jj(j Fellowship ']'he JAU'Poses [61- which t1lis corp(")ralioli is fon'lle'd al -C to establish and rimintain a pia e° 01" ..Ord (,III-ist, I lis only begotten Son, 1111-01H2,11 II'le w0p,11ji) of Aln)iglAy (Jod,, our l7atllel'. alld tile I L) I 1()Iy, Sj)iilt, �,,ind proal-lotioll c& ('11'rislian 'rellowS11111 arld edifwation, for C0116.11a Inisiness as, a ofti-io Holy Scriptares, and to do tile wol-k of"evall,�_'Clisill in 110flue 'and 6oleig-I'l ti("ICK I n tni s, si r -,Ill of, the l"'o 11, d .)esus Christ obe(fient U) tl Section 'fhrc,,C. "it" 01MAS of F""601 As Tenets of FaM, tWs church accepts the, lioly Bibleas the inspired all(l I-evcaled W"itf God, ,or the IluTpOse of alaintahing general Unity, adopts me Mksufficient Qe orfaith andr pactice, clildfi the STA'I'EMJi,N1'OF FUNDAM I�,N'1'AL'rR'1JTj-tS ()FT111T, G ENE 1M, COUNCIL OF THE ASSEA1111tjS OF C,OD, as san"10, is now and Ron, time to tine may be revised, and as recited ill thetrue copjej,eof,wl,jjc,,lj blows as an addendull", 10 this cc Of Constitution and l3y4,,aAvs, by this refe'reuce here ill cor po r,,,jte(j as th()jjgI_j set 1.brth in full. ARTICLE TFIREE - STANDARDS9 PREROGATIVES AND POWERS Sect,011 ()Ile,: St,,111(1:wrcjs trill('lanevernine"t llvrogathTs It shall be a sundud and responAlky of OAS ChUr(JI'[0 preserve scriptural order in all amtters affiecting its l4le alld 111inistry, reserving the right of self- governn"011t, 010 Mogatives to chhose " oNvil Pastor, an(], by action of its 'I'lernbelsbip at (',hurch Board to (,,Iect its offlicers and directors, to establish and nwirAnin mduds of menlbership and discipline, to acqquire and hold title to property, e and conduct as a local church, according to and to umnsut all odvr businass pertaining to As HR lioly scliplums, and as homhoRer ill this 4ycicle, Of Constitution and By -Laws provided. Section Two: General Powers e�cise at rights, powers and 1�)rivileges sj,lall ave h - orad is empowered, to ex pais Cal gellet-ally,accMed to Dor waWns of this k4ld, including the Power to =1100 to acqlire, hoW, buy, sell, lc ease, TTIC)llga� e, hypolliecate, oI other\vise, enctullber, and to dispose ofin any way, real and Which is l'awflul, ne"Cessary persoY property` of aH klivis and descriptioils, and to conducl all budness v or cxpedienl, ii pronlafi, the Inuposes of the c,orporation, including �''c power In issue, purchase, redeem, reQN? take or odwrwke au0m, Own, sell, tend, eXellafl.ge, ransfeT or (,,�therwise dispose ,,, deal in pl�,()perty ofany kind, bdudkg its owl', honds, debelltures, "Wes Of, pledge,, use Ol- otherwisC and debt securities ARTICLE FOUR - RELATIONSHIP WITH THE ASSEMBLIES OF GOI Section One: Affiliation `r, 4 1, \Vhile 1,ecoynizing inn rent light 10 s0vereippty in the c.ondud (iC its own busiiiess aJl,1 i his ,h,, W,W,tq, c dogs wito R,dj cooperativ( 1,Qjl0\vsjjjp with and ;pus a QwPu2n, (w "rnv,,,ASSE,MBL1I+,S OF(MA 11 Xiissoluxi Nonprofit t: or SI)t'ir`0'1CI`t Missouri, and fike�vise in jiej[(-) el- Of'the SOU111101IN FQW114C LAVVIN , wship,�vith and as,j ll,101,111) OF GOD, a Cafil'brok ANIVERICAN DISTIUK"I" CO1JPNCT[, Ob' ITH: ASSEMBLIES CKporabon, and sul,�jed (0 'their Superior awhod" in maums of doctrine arld co�nduct,,, which ctaraliorart.reriis arra, hereinaftel- I-e,ferte(l to as "General Council" and "District Council", I-CsPectivOIY, Or collectively refer rcd to sionply as "Assernblies of (!ad". yk,d,l Two: lKiVege, lRespoilsibilities, Re�prcs ell ta I kon 'This chKuh QU shame in pAdleges and HsRnpe req)onsibilifics enjjoined by All I ia ti oils 111clitiOned above, ill aGcord,1nCC With 111C, & 13y -Laws of each the, (-JeneraCouned and the District a$ SUCA11 regjdations are now and misery n-0111 time 10 dMe be �ricludiny, represenIathrl it th �lru (J"eneearl and the District Council l'-alsi'lless sessiolls, jjjjojjgjj its delegateswho have been ecled by the inenhership of1his tzhurch cw its Much Board Section Three: Dedicatioll Ind DiSsOluti" I NAigiol�s Pu'l-po)SCS Wiflibi the nicanilig VAS CMTOMUOTI I'SiRwnied and opended exclusyvh f(A of §501(c)(3) of the Mited States Internal ReV011je, (`Ocje, 'rhe property of this corj)o'-aItiOn is irrevocably dedicated to reli-01ol's Inial Oses and no part of the net inconle ()j- assets of this corporation shall ever imov to the benefit Of "illy director, officer or member thereof or to the benefit of any 1--n-imate person, Thle to it Pem0nl] property and real propel -TY o,w owned or held in trust herealler aCqUir"ed bY flos church shall be pe , "Pettially dedicated to and held ill trLISt fOr thO purpOse of inahAabling a place of divine vvorship and opemong church facilities and programs hi hill ooperaiive Fellowship and affiliation with the Gencra,i Council and District Council, Upon the of dos cunpora6on, after paying or otherwise adequately securing Or dissolution or it drag UP providing for the debts and obligations of this c0r1)0l-,','ti0n, the remaining assets shall be distributed Co SOU"[WERN PACt�IC� ,l'.IIDJS'rJUCOUNCAL OFHEL1ESOFGODCamilia Nonprofit Corporatio", which corporation is, forined and operated exclusively for religious purPoses, if it is then in existence'and exclupt frorn taxalion tulder I of §501(c)(3) ofthe United Stat internal Relverme Code, to, N nouthen so etsthg ;Md exempt, then to rillY, GENKRAL (.,',01LJN(.1l-, OF "FUE ASSEMBLIES 017 G01), a, Missouri N,-)nloofit Col-POI-WA,011, Whiell COFPOraflon is, ft,,rrjiied and operated exclusively for religious purposes, Wh is theli in existence mid exempt froni ta-,x.a9:i0l1 Underpl'OVisjons of§501(c)(3) offlie Uftitcd States blj�ornal I�evenue Code, or if theY tfien are both not ill existence and exeat, the,"11011-PI-01"It I.Auld., foundation Or col-P0rAtiOn which is fiorined and operated exclusively Co" religious Purposes, in harmony Wh the purposes of this Corporation, and whicti has established its tax exonI)t status under §501(c)(3) of tile Unitcd States Internal 1, evoutte Code. Section Four: Organizational Assistance xternal proj)'leins, %vhich cannol be If at any time tWs ChUrch eflCOunters, any internal or c reasoli,)hly and expedWously resolved by acHon of the mmllhe"shij) or tile ,111ji-ch 1,�Oard, the church shall sed( the serAces and amiMance of]")istrict (._'oundl or Anst Counj upon request of the Pustor or as n1jody of the ( laairch or upon petilion orthe mernbers'lip, Such PCfiaon of the munbo-slip ski W in writtol Rom, and shall recluke the Qattires of IeMt tAvOlItY Percent (2 011/o) of the anTent active inembershiP Of t,lje church, arid s ' 11 fl, ul I hall, be addremwd to INMAL (',M) C , C presclj(L,,(j 10 the I)istda Superintendent oj'I.)jStrjCt WHICH. Sudi pedUon shah spedkahy but Nieny til-tL'I (1040-ibe featLifes or j,e(,j,w the (ictaiis, or the MUCT Q'Whidl aSSIM"Ce is requested, Mpae or admKiMradve BusbViOns AJP011 SLICII j)re,,"Cflti1fion t() tile ")iStrict (,�ouncil, it shall be Mined to be a petil1m; mi beh?df (AW church„ as an Waive of 11 -le menibership, Whereupon tile f,)istri�'j COLjncjjj,)isu-jct ��'ul.:)ejititendent (:)r presbytery, shotild t,,tj�e or undertake i _ o provide necessity services as are available, In event the ()FthiS C11111 -Ch stiould becoirie TWA over doctritial or other issues, in vdich individuals or factions nlight PrOPOse t llirl: this Church shoWd withdraw or disaillifiate from the Assemblies of God, such clisf)utes shall not be put to a confraiing v()te, but shall be resolved according to pl-ovjs ,Ous of We By-L,aws, Article Eleven, Resolution of Disputes, at Section Two. Seel ion Fjv(�: lmstrwt MUCH Ass6tauce ij,j (,,'fuirch Administration Ir at any thne the business Of this (AlLfl-Ch cannot be adequately under icil,,era and pel-P.A11"ed bY its adniinisirators throjq:j tile vk, h per ChUfC11 Bwird is not available or Illirch I3(:)ard, oi ell a Pro Wilt active nAnctioning, to church nmy, by reqtw0 sl , its rch 1�1()arcj o.,)r at least 51 % of A ben cul Menson -ship, Petition the Pries'bytuy cW I MM rict cynuwd to stave, as the (-'liurch Board, to SO save until such time as We Presbytery nnd the "nerylbership of this church that the membership should Vemunc IOU ,pomh, R.)r its aH`aivs, Neither District Counci] 11or tile Presbylery (A'District MR be tap assun-w any pur sop ral i-esponsibilty or liability for debt or other obligations of the 3 church in taking such action as vilay be necessary in these premises, unless affirmatively so stated. Section Six: Minimum Number for Viable Membership rLS ill fhltribet-7 Ille CIlLirell If the active membership of this church falls below twenty (20) perso iininial recliiirei-rient R)" shall seek the assistance of the District Council for help in maintaining 00 11 1 Greneral Council affiliation. If after one year thereafter the minimal IlLin-lber of 20 active "llenibers is not attained, this C11111-cl, shall auto linat icall y revert 10 the status of a District C0101cil r91141te(i Churcli. The church sh.111 r0lTiain in a District Council all"ifiated stati,ls unfil it again meets tile stalldard rora General Coijilcil affiliated chill-cli, liaving deillonstrated its ability to assume fall responsibility l'or restoration to that slatus as a viable sovereign cb.urcfi� Unless otlierwise arranged, thel-e shall be rio.finaii6al fiabifitY Or other af 11 District Council in these premises. ,ri rill �,jtive obligation assuineci by ARTICLE FIVE - THE BOARD OF DIRECTORS AND CHURCH COUNC-ti Section One: The Board of Directors- Name, Number, Authority The Board of Directors of this church shall be known as the Church Board or the Board of �N (I0) nattin"d persclns, including the Pastor and attic elected to macons, acrd sliall, consist 01T]"_-ovided, atid servillg liar't[le tenni s and lmviiig powers and auttiol-ity �ls lie,-einafter in the By -Laws 11).i All official and business powers, Jctivi[ies alid afflairs, 011 dils corporation shall be exercised and conducted under authority and ulfirliate (Ii of t 11C 01L.KcIl Board. Section Two: '111c, Chl'"ll COalo'c" d tq�,ejljer witli I'lastoral Staff alld 'VI,jerc shall be a (1)LffCll COUTICH Col'Tosed of the Boa.r offlctj"S, which sliall see-ve as supervisMY 111d -,.,i.dvisc)rY ill witure, and shall 1101, LIS:Lll'l) the auttiority or fibildioll 01, ti -le Clam-cli Board, and �as'Ijereiiiallcr ill the By-[,,aws pf°o)v I d e d ARTICLE SIX - AMENDMENTS TO THE CONSTITUTION 1) 11 el a a ii -lade only Y vote, of 11,1c Lictive voting am b 's , t Arlemilliefils tO LIt ,, (',ollst,ittition may Inc,.,ch N�jeeti �,j g, or at a Specia 113 Ll Sill eSS' Mecti I ig c) t'd i c ni ej ilbersili 1) Of t1lis L116 Nj,'Lllar Aiml-lal Mislilels's Ij,,js ro)j, jj,j�jt lnjipc.)se, Haat socli 13ti.sitiess Well (ILtly called and specially , pi'ovided 4. provided. 'I'lle 1�1(yl,jced Lit least INvo SlJfflda�yq prior to such Ineeq.111g, aiid as liercitlaftel- ill the 1, y�l dews teXt , �Jjlajj hC J)Llblidy posted in a cof]sj�)iCLIOUS view ot'attendees proposed ameridilwilt 11, -ess - , lia eac 1clive rljejjj�ej- at, ]l -is or lier �tddi 'ofrecol it -y, aild sell I bY I [Ile cjjljj,cIj silicttiav ndille"t is to be considered. least tell clays prior 'to SLIC11 BuSifleS�,, , %icetirig at whicli tlio anlic g lreqtiire a till-ce-knirills al-11,111ative vote oftliose active v0t]n ' /\mendlnellts to ttlis Cons ti ttitioll S biall Btlsiness Meeting, after a quorum is established. Illeillbers psejyt aild voting at suc AKTICLE ONE ]PARLIAMENTARY ll..,AW IT, o)j,(jej, tri cr,�podite [lie wol-k of [Ills (111U01 011d to avoid con(i,tsioll M its daslrGrcraticrrrs, ail 1-ijeclit,igs of ti -le cj,jtll-ch11oaiA �,dl Anoual l3usiruess MeeGrigs and all Special l3usiiless Mc(',6n19S Olw �r ol, otbel-vvise ot'("Wde the; of, t1ii's churcll, sli"'I'll cordLlctied LAM N ary authcAty of the current edition of Robert's Rules 01'01-(10' nCNTlY gcwernal by the parlial"C211:ti t, 1-d fellowshiP, under the guidallce Of tile Holy revimd, in keeping Nvith the spirit of(,`11,,r s jan love ai Spirit of God. Sj�ctiojn 0;je. Meiinbers 1.1h.117 active irietriben-ghp of this ChLIT'CIT, the" quafifications and Thbre shall be but one class of reg e Church Board, as hereinafter in these By -Laws acceptance of saute being subject to 1PPYOval Of t1l provided. Section ,l,wo., Standard ail` carve MeffilbershiP lie Swidard for regular active rilellibel-Ship in this church shall be: A.- Evidence of a born-again experience in Jesus (Ohiot (regeneration) (John 3:3 -7, 1:12, 13; I Peter 11805 -sion (Mair 28:19, Col, 2:12) T_�,_ Watel Ba.plisrll by il"Illel tiall jif7e (Roni, 6:4, 13 � 13, l ­,,ph 4� 17-31, 5�2, 15, 1 John 1 �6-7), CL. Eddence ol'a collsio[effl C111 -is W po-Sonal subscription to 00'01)0ts "r"'th as set forth in tile Constimdal 01,110S dimsh- J)ersoinal williflglless to contribute regntady to the WAPPort of the Church With tithe, and (141'exings accordin-v, to bis or her ability. 17, A voting inernber jr1lsst be at least I S years of agcy (j. Agreement to be governed by the Consti ti ltk) "I & By -Laws of this church, and the ieneral ('011Stj;10C60tl & BY-1,1aWS of the Gouncil and INA rict Council, as they are, now and may be from time to time amended. 1jectioll'I'lip-ce: Appficaflovl for Regular Aedve Ale'll'bel"Shill), M)"d Rev ievv Appicams Q replar a0ve, nienibership ShaH make their desire knovvn to the NO, WhO Ml exanke the Wfic,'Ult it' a"()rdance �vilh the sUl"dat'd of monbership, arld UPoll I'lis 1-0colill" oil tjje (h.trch Board sh"'All colisider their Wtitlen apPlicitiolis ()Tl Rom,; approved by the (Imirch Boaid, s of active hall be added to the I and (lie nalliles Of those Ippi-oved fi,)r such Ine"llbei j'jjZCCl j)U1:)1iC,1y,ts nwmbus at we emlot convenient niernbonhip of ale WM mid they shall be recog .— _­ tecl as a ineniber �vitllin 10 Ineeting OF& congregation. p4o appkant IS rnmuberdlip shall be mcep days beRne an annUal 1nCllil)0rsh'P nleet'rl', Or whion 10 drays before a special membership. ScCtj()jj Four: Ex y*ricio Membersbil) 01, p.,,4stor, pasto1-411 St:Af, and Spouses I& Pastor of this convii and respective spouse shall, by virtue of election and acceptance into its adnisuies be deemed to becorne and be ambe voting nronibers of fl -lis chlircir "I'he Pastoral SIM[' and their ivspectivc sl)()uses, [)Y Vil-ILIC Oftfieit- by the Church Board, sllall be, decalcd t:o be=Ve and be active vothig rilernbers ofthis clitil"Ch. SUC-11 17�,K, 001(00 ("Ch Mellllle'Sli'P terminates with termination from the respective OfEce. Section Five: Voluntary Termination of MCHAW"lliP IV Meal")" Active members in good standing may sever tberj- 1-elatioiiship wdll thl'S ChUrCh by VOlUnt', Y Is.ferre(l to solyje Other eongregttion A, transf 1.6112, nlellibe'l alay apply to the or lie a cejjj:fjcate of'Good, St,,,ni(fing or I-etter of—fr-C11-1.4'er� INI'lich "ill'all be Secretary of this C111KCh and the Church b0a"(1, and sliL1,11 be siyned by both the NIstOr ��lfld gi anted (),-j appro�qij of 11a,_,,,,tor M 11,11d OtIlei'kyiSe t) J.ng �11.101-lt tenders resin -ges that o, .,natiM While under chat the Seeretary, If kL menibei b A not deprive the Chu A A md thornmeari i ig &SCj )line, ftonj [tie (,',hUrcb 13oard, such, resi,911citioll s I ynaper by the Chumh and Wng disciplinarydearninations of the charges, as, deenied necessa,'"Y tar '° A the T000rd-, Section Sis: lgracfive Membership, UIUM11 jto,,jj-(j J,."teviem, N otifical iloul "I'lie Clittroh Board is enlpow(,�red to perjohUcal1y review the Church Membership Roster and therefroni to place on the inactive list those who have beco,ne dqualified Boni inembership, including those Who shan without 900d emme abont themselves fron, serN,jces and prograins ofthis cl,11jrch for a period ofthree c(,,,)nSecufive V11011ths Or more, or Nvfio cease to contribute to its support, or who shall be ander chaijes f(,)r inisconduct or under condenination 17(,rr sinfiul or worldly practices. AN-heii the Church 13oard places the naine of a Inelliber on the Naive membership list, that me fiber shall benotified in writing of such action, anol the reasons therefor, by the SeGI-etal-Y Of t1le 011urcIl. Sud"HAke infl be given to such inaCtive rnetriber by regular mail sent to that per soils address of reawd in die BIS of the church. If such Ine'llber so notified does not in W66119 fOrInally reClUeSt re'storation to active status within 30 days, from the (late of, 1i _jai'ling oj, notice of'jilactive status tatu s, he or she Ml be autorriatically terilliante(l froni membership ofthe chlirc,11, witliout, flurther noticerecluired, F'or good cause shown, the Church l3oard jilgy restore a rricniber to �,jcfive status at, ,iny tillic prio' 10 ,a.otual ten-nixiation ofilleillbOrsh-ii), Secdoll Seven: Termination of MeRjfl)ersbij) by Action or the i3onni ':l he" Church Board is onpawei-ed U) mnwvc Am the nlenherslip rosters tile, nanles of those wl)O are, decoased, those who 110 IOIIL40f'liOct the standard of nwrnbers;hip, those W110 IINIY have v()Iiillt,,'lrily vviclidrawn froll, [lie those who rimy have been up -anted sever aru.,,c and CARcate of Wool Sumdhg or 1tte'"ofTi'ansRY, and those Mose nalres halve beery on the inactive inembershil) list t()r esj,oj�a,tion tel active Status„and those clisti*,,sed li-,)r disciplina"Y art I cast, 3 0 days �vi t hoi i [ requ est i n -g r MERM Seefion Eight: Hononlry and Special klemberships pTovide ft)r fionorary 01- The Church l3oard, by its special MsWu6or; is erripaweand to and mmy Ane no duos of membudip notwiflistanding Such designation as rnembem, spec3al inernberships, lu. ., , z,- l(rr youth and sriperanlluated persons, handicapped persons, individual's I'llal ,ircabsent froill thcare"i ne,(�j Ily tile (,',jlurch Hcnirdiro be Lmable i -o take p�art in the prograrns of" Ille ChUrCh, UnCl Others (lee"' dewrOng of such conWoution, on such Mot as the Churth 13oahl deems rensonnble, Such honorary or spedal awrilbersWPs shall have only 'those partiedar Oghls and beneFts a'ts shall be Emb-nmMy bes-towed by sudi special I-OsOlU.1-i011 of the (TurcJi ffixjr(j N.�-!,hts and benel"its Of' honorary or. Sl)ecial Menverships need jj()t be uniflorin over tile, entire chss, it is intended that an n ri rs honorary and special inernbe 'hips shall not be niembers within the meaning of any law grghts to mernbeis. I lonorary and special nimnberAgs ij,,ill h, 1i I 'At 1i r ave lio 1-ight to n(,)tjcc ofor pai cip, Jo 0 ,,t, in ,y meetitig ()J'the membership of ttlis clatircJ-1, of I,() paqjcj,pate in array way in anic,nding the bylaws ell' this chi Q or hi vote to dissolve Or friel-ge Flonorary and speck d wernbers shall have no vested dghts iii their respective nlejnbej-shil)s, jrid the CJjurch Boarl by fumher special remAution, I_lla,y N,Yjtj,) or WillioLft flbide or teens or con1jons of honortiry and special ire tefirl reversememberships, at any time and fear any reason, for cause (Y without cause, and may Rewise dissOlve the entire class or classification. Sectioll pjane: jinauthorked ANVi6es P40 inember of this church Wall promote personal crusades or support private campaigns, programm, enterprises or ,jh;ih,s t(;:) involve this church or tht,,,, mcmbc�r,,ship of tH.s church, on the 6 eillirc1l C,11-nplIs oj: ejse-%Nl)el-e,, jjnless such have been approved in advance by the Pastor. If additional sel-vices or prograrns are desil-ect heyond those J)"OvIded, silcil services and programs must first have ,11-1d be I 11,1c,jer liis gencral aL.1010rhyalld Supervision, and his approval may the approval ofthe P�astlor, , for aiiy reason. Elul event the. church is temporarily without be withdrawn at ally til'ile wid10111, 1106cc, te Church l3olard. from rsia Pastor, such activities must first It' ave the�WPOof this section shall constitute good cause to have thehviolatorexpelled church campus and facilities, and shall be grounds for discipline of a member by the Church Board. Section One: Disciplinary Authority of the Church Board to the Scriptures, All discipline of regular members shall be prayerfully administered according under authority of the Church Board (Matt. IS: 15-17; 1 Cor. 5:9-13; ll 1ess. 3.,11 -15 - lit il. 16� 17), The Pastor shall be uridcr the eXCILISiVO ecclesiastical authority olDistrict C01,111cil and General Council, which have sole powers of discipline over credentialed ministers. Section Two: Suspension and Restoration With exception oft erm and authority of she Pastor, the CL11, .11, .1 enipowei,ed to suspeild ,e)grjj i,, J e at is those regol,.Al- iaei-iibers who shall be under frow active voting illeint-M,ship and place oii iac v st A lat'i0l, jjlj�ouk? ,11 silij�L,ji, (),- worldly practices. charges ['or inkeolldlict, Or wbo have 1,811011 Allider condelill , -ship those who", it filids al -0 7 lie, Church BOYrd is likewise oillpowd-ed 10 t(,) aotive menibet ilot guilty as charged, 811d 1110se who tllf'()llglu 1, el)"unice aml aIJustill0fit have ,lgahi attairied [o [,hc staiulard flot- active lllefllbffshll) Section Three: Requests for Restoration, Hearings and AppeaLe A.- If a member has been removed from active membership because of charges of misconduct or condemnation through sinful or worldly practices, he or she may wqoest 1'es(oration to ao:Aive menlbersilif,) and deinaild a hearing, belbi-e the NstOr and a ri-jajority of (tic 1111111, &)tjj- t( be held within 90 (lays of receipt of such reqkjost aild demajid, which shall be ill wi-itifig and particbdady specifying all defenses to each charge so made., �vhich writ I en request and cealaild must be received alling notiof removal from active by the Pastor or the Secyet�jj-y withill the 30 (lays after date of im' membership. The, shall encourage a proper attitude on the part of those in question, and proceed caret-lilly to pi-ess tier final decision in each case. When the has rendered its decisioll, ttle mei lber shall be notified of the decision and of his or her right of appeal of an adverse decision, and he or she may appeal from that decision directly to the membership of the church as hereinafter in this section provided. ill event S1,1011 chscipliiled SUSpciided p(,,j,s0lj degil,�.,,s to JlLirdler appeal the suspelIslorl sticjl 411) it ,all be ill xwitilig spccify41p > W I , each beyond the detemiiiiatior) of, the (11141, coritelitl0ii a,iid defense 101 pelt'illerit, tjlQ inatter, zin(l roceived by I " lie Pastor 01- SW-etl'"'Y Of (hurt church within 30 days after date of malting notice of adverse decisior, c& tile (31141 -Ch Boar , fili-thel. demanding a Special Meeting of the membership to be called for hearing of the cause, which Special Meeting should then be scheduled to be held within 90 days thereafter. Action taken by the membership on such appeal shall require a 60% vote to overrule the underlying action of the Church Board, and that decision of the meillbe, ship) shall be final for all purposes, from which there shall be no further appeal. 0 ARTICLE FOUR - QUALIFICATIONS, DUTIES AN D POWERS OF OFFICERS, EM I' FEES AN 1) VOLUNTEERS Section One: Qualifications A.® The Pastor - Because the church recognizes the leadership of the Pastor under the Lord Jesus Christ, and because he is a representative of this church, he shall be a person of good report, and shall manage his personal affairs, financial and otherwise, so that no discredit shall come to the cause of Christ through his actions. His life and conduct shall conform to the following Scriptures: I Timothy 3:2-7; Titus 1:6-9 1 Peter 5:2-3. The Pastor must have and maintain current ministerial credentials with the Assemblies of God. B.- The Pastoral Staff - The Church Board may by special resolution provide for a Pastoral Staff to serve in administration of the programs of this church, and Ificy shall serve on the Church Council. The Candidates for service on the Pastoral Staff shall be selecied by tile Pastor, Subject to confirmation by the Church Board, and shall serve as assistants to the Pastor and under his direct supervision. They shall not be eligible to serve on the Church Board. All individuals serving in a ministerial capacity on the Pastoral Staff must have and maintain current iniiiisterial credentials issued or recognized by the Assemblies of God, as a condition of continued association with this church, or provide proof that he or she has a current application for such credentials pending with the District Council. In event an individual serving on the Pastoral Staff is in a non -ministerial role, he or she should alternatively qualify themselves by a showing of training and experience in the particular field yI e for which they have been so engaged. (((U .3�1'kffi,her cki is fiv 1!t- - . ........ .... C.- Church Board, Trustees and Other Officers - All members of the Church Board, Trustees, and other officers of the church, shall be mature persons full of the Holy Spirit, whose faithfulness shall have been in evidence and whose lives and conduct shall conform to the following Scriptures: Acts 6-3; 1 Timothy 3:8-12. Members of the Church Board must be active members of the church, in good standing, and shall consist of such persons as are appointed or elected to serve, and of their successors subsequently selected from time to time, who shall so serve until selection of their successors, D.- Employees and Volunteers - All employees and volunteers in service to this church, in any of its departments, programs and ministries, must be mature persons, cornfrutted to the religious mission of the church, with a personal born-again experience in Jesus Christ, evidence of a consistent Christian life, and personally subscribing to the Tenets of Faith of this church. All employees and volunteers accepted for employment or service within this corporation are part of the religious mission of this church, including custodians and groundskeepers, department and program leaders, teachers, receptionists, Pastoral Staff, and Senior Pastor, and every other person that is authorized to take part in the various departments, programs and ministries of this church, and each is expected and required to comport themselves in their personal fives, on and off the job, on and off the church 91 An campus, in such a way as to compliment the image and religious mission of this church. y behavior that is viewed as immoral, sinful, disloyal or antagonistic to or adversely reflecting on the church, will not be tolerated, and will be grounds for dismissal. E.- No officer, director, employee or volunteer in any department, program or ministry of this church shall have any sort of vested proprietary right or economic interest in the employment or service in this church, nor any legal rights to continue --vice, nor any sort. of legal inue in employment or sei I riAll's for nj oil ey c,"r equitable relief it pon teriniiiation ofi-cSIMAive 01, SeIVICO' Atiy dispi,ites rn this regard sluall be resolved PUFUjant to arbitration j,)j-ovjsj(:)jjs of these By laws, Eleven, Seeflon Two, March eiTiploynie"I 311d v0jjjj-jt,eejservice are sul�jeet to these cOnfilluing conditions. A.- The Pastor - The Pastor shall have general supervision of afl activities of this church. He Shi a shall serve as President o -l" the corporation and be Chairman of all meetings offlie Ine"Ibel, p nd the (.11nirch Board, aild, wifli, the Secl­etaq of the church shall sign all official doctirneuts for the ART& He shall be an ex -officio member and overseer of all committees, departments and programs of the church. He shall provide for aU the services Ott e churc anci giving due regard to the needs of the congregation. No person shall be invited to speak or preach before the coripgregation of this (1-1-itirch without his approval. The Pastor shall perform such other functions as are customary to the office of President, and as necessary to the proper discharge of his duties, B.- The Pastoral Staff - All members of the Pastoral Staff are directly responsible to the Pastor for respective ar.assignments or portfolios, They shall be ameriahle to the Pastor in all niatters of J�Iaitfi and condocl, an(] shall perform such dirties and c,,�irry such rcsponsibllltleas may beassigned by the Pastor, C.- The Vice -President - When there is a vacancy in the office of Pastor (President), the Vice -President is authorized to act as interim President and to exercise the official powers of the President, until the vacancy is filled. He shall also serve as Vice -Chairman of the Church Board, there -in�an. "l he' shall perperformslicli other �?Icon� presi(I111 _g of-Ticer in absence raft 1je uiai, Rni ctions as directed by the ("litirch BoaiA, ffl)(i aS'C,US't01n',,,a-y to the office of V ice- l�" "esideW, and as necessary to the proper discharge of his duties. L� D.- The Secretary - The Secretary shall preserve proper records of the membership of the church, of all communications and 1)rocceding),s ()ftlle CIAW(JI, InCILIChnQ the niinutes of all membership Business Meetings, and the records (,)I'l J:je Cliurc:,11 Board and all authorized church committees, departments and pro.gT('­i I I's Tjjc,Sccu.Cjary is tfic costodlan of all legal documents and the atogetjjej� with flie Pastor sign church documents and official seal of the church. The Secretary Ji,ll ,,tj'j,jX 111c ()fficial seal, ajid, sl-jall perf'orm such otherIiinclions as are customary to the office of and a � -d, and any other clerical work necessary to the Secretary , , may be direCIE'd by the Church Boat j)r0j')(,j- (1,isclijirge ()fassigned chtfies. E.- The Treasurer - The Treasurer is the Chief Financial Officer of the church, and is entrusted with all the finances of the church as may be cominitted to him. He shall deposit all church funds in a federally insured financial institution, in the official name of the church, and shall disburse same as authorized by the Church Board. He shall preserve proper itemized accounts of all receipts -cli, and rnake, a 1,111al,teial report, of same to die Church l3oard upon and dishurseinents Oftl­10 ClIM Iiip. The Treawrer shall pel forin such dej,narid and at 1he ATITILMI 1311sffless Mectirl!,,r'of the aienibers r,)jljej- 1,iiiiaions as are eiisl'olm"Y to i'lle of of Treasurer and as may be directed by the Church Bo,iT d, and any other clerical wr,)rj< necessary i o the propei- discharge of assigned duties. F The Church Clerk. The Church Clerk is an employee of the Church, hired by the Church Board. The Clerk shall perform the duties as designated by the Pastor, the Secretary, the Treasurer, I and the Church Board. G.® The Church Board (1) J'he Church Board shall act ill all advIS01,-Y capacity Orth tile llasto.r Ill. all tilaffers li 1�e of' I lie ("1111 rch, and in l,1liIljstry ofits ordinances, They shall serve as an pertaliiitig to the �,,Pililll,Ml 11. s r(�r Inetilbersilip, and as 'a prillcil-,181 f0l"lln f0l, Examining Coninii[tee in review of aPPlic, ion "il event. ()l�N,acatjcy in oilloes orf administration of discipline among tile lnembefship of the church. 1 )61' own -Presideilt, they shall be empowered to Provide 17( r tl both the Pastor (President) and Vice r m business. temporary Chairman from among their own number in order to transact inte i church bus s (2) Duties and powers of the Church Board shall be subject to limitations of the i i0lis Of this code of Constitution and By,-Laws as foundational �jiticles orfilis corporation, tile Pl-ov s , the law of the S1,flie or(Ialifornia and othe'r it now cousists or may be *onl filne t(Yti'lle ide, all all)cf , d d places and jurisdictions where local laws might govern or restrict such powers; and, (3) Without limiting the general powers of the Church Board, they shall have the following specific powers� with excepholl ofthe Pastor atid, 11a,sionall St,,Iff, 1,(.,) select sand i-ell-loveall other 'be sowers and duties, reguialiol's 811d ()fficers, agents and ell1411()yce�s ot, 1110, clitil-cll, prescri , such I'M US , -11 al ticles Of, ,lsis[ellt,�Viljl ia,v, the foundalioll�, poholes, (br tilelli as are ll()t set 1:)y these By-t,amIS!, Col )ractices, aild, as llecessjlj_,�,, to Icc,Ljjre I'l-olli theill appropriate this corpor�.,Aioa, alld good btisiness r SCUU-ity folA111(lif'111 SC[Vlceand to IN crnPe'Ktfloll ole" all Pastors, Pastoral Stall', offic'ers, agents and employees Of t lie cliki lc 11; a n d, (b) To receive and authorize disborsellient or 11l,.ndSL I to bo,)rrow IllotieY and iilcur indebtedness in the course of'bosi,110ss Of tills clItIrch, and rO1- 11,18 e it I pl.lq)ose to caLISC CN C1 C( and delivered Fli tile 11,111le ol'this Corporation, proillissory liotcs, bonds, del.)ennjrcs, deeds oftrust, hyl),01,110CF11 iolls, (),, other evidences of indebtedness oar SMLffitieS, SlllaJCCt C,,O -Ovisiolls ot this code of Constitt,"tiOn and regul"llions, Airthe'r �subjjecl to tile pl� 13Y-1 ,mvs of this ChL11 ch. Cel'I fts 'fo take ,ind hc�ld as cus[O(Jult)s Fol, tile use and knefit (A'11'c ClIt"'ch t0opffty, being lesp()nslbk� for [he ilia, rlt enance and I'll! ness of sall I le fbl. the corllfor� of" the ()wT-1 illen ars, individuals to serve on tile (.',ongrega I joa; ntid to designate fi-on' its ntxn-s, as need appears as 1-1,ecessary and erty tise and beilefit of this corporation, (A*TT'0.StCeS, 10 11101(l P1_oP as here,'Mafter in these 13y-1-aws provided. IIS.® The Church Council - The Church Council, composed of tile (,huo-ch Board, 1,1astoral Staff, and (luly electccl ojv appoin[ed departnient heads, shall alect at aproperly called (PlIrterlY ot- 1lle plallniiig and iMple1110 I , , for litation ofthe special nieeting 1"Of- tile pill'-pose ofcoullselling togetlle� I g tt ,Iny r )'lst(­or or ("In rch Board may udl silch niect cas(rilahle total progr�,Irll of ttle chl"11'ell, l"he I JI'lle, and (toormll is not required t- Enlployecys' and N"(Aunieers - EAv1pJ()yees and sliall asRime and po-601-111 (41ties ce with depi'l rt I'll en t as Sao e assigned to theril, according to I-espective.joh do�scvipfioll and ria compli,an or program regi,-Ulatlo)ns and pk)JjCiCS,, UMICT direct Supervision and authovily 01" Choir 1-0spective [a A department or program supervisor, at all times subjest ILY to the superior author of the Pastor and Church Board. ARTICLE FIVE, - ELECTIONS AND VACANCIES Section One: The Pastor and Pastoral Staff A.- In event of vacancy in the office of Pastor, the Church Board shall act as a pulpit comn-dttee,, and after prayerfUllY s0eking (.o know t[10,111ind of God and carefully choosing the best counsel available, sliall, select 8 sc"if)tunally qwflifiod ininister credetitialed with the Assemblies of God as a nominee to the office of Pastor, arid present his name f(,),- the vote of the membership of this c ditirch. Any active meniber of this s charCh may Suggest to the coln.1,nittee the name of an Assemblies of"(3od minister in this regard, Tho,,Bo,,.ird, sliould seek, the advice and counsel of the local Presbyter, and Superintendent of District Council in these premises. B.- Election and re-election of the Pastor shall be by vote of the membership, and such -c -C a two-thirds majority 'affirtnative vote by Secret ballot 04' the rlx11Iborsllip ,lecl,j(�ljs shall j­qtiii 1,1�,is heen preserlt ai)d \,()Iit)g at the illeefiag where SLlGl1,,-,Jecqi(,yn Is to be entertained, �aller " (111011111 initial terni Shall be for - tfireo years, and Unless fliere be a restriclivC 1),11101, estal)llshed, I'lie PaAX)r's of office for the Pastor shall be for an indefinite period. stating other -wise, the succeeding term C.- The Pastoral Staff shall not be elected by the membership of the clilArcli. They shall be rch Board upon recommendation of the, Pastor, Incverit of I engaged I)y a ri MJ MilY vot e `)f t lie Chu are expected to sobinit resigniatil'.),11 ()I- other departm-C of Pastor, the members ofthe Pastoral st,�l,jT 11161- T'US'J)eCfiVC rosigtiatiows, to the (.1itircli Bowd for the review of the inc,011­61,119 Nastor, in order to -Igtor,'d Staff, Tlie services or all- y �111()w the incoi,iiingflaslor the privilege of selecting his r_-)Wij v , , merjibe�r orthe P83tol-�11 Siaff rnay be terrniriated J)y the Pastor, fol- CRUSC ()rWl010U1 011 !"i , ilIL� nded by flie'Pastor ilriinedi�ately wit'hotil notic'e, _30 days writtell notice, Arty SKI) PCrS011 111'�IY lie SL'Sl)e There sliall be no rt�1111 Of al -,)peal from such termination. or suspension. Section Two- The Church Board A. - Nominating Committee - in ordinary course, candidates for membership on the Church y -fittee, The lloniinatilT, (1101TIP'lit Ike, shall be appointed Board SlIall bU 1101"litl""ited bc� ,,, non"titiziting c(illin .11 cotisist ol,aj leasi, five per,,ons,, who by diel"astc)r ill GorlsUltation with die t3oard, and sha Jiall be the Pastorand fbtir church members, not more than two of which shall be members of the - of" this chtircl,l tnay sl.iblflit ii,aines to the noll1iflating ("Intreli Board, Any �,�Gtive Nioting tnembei cotTlirklittec f(")u,. tileir ccstisideraliori tip LO two weeks Pl_i0l_ to the rileetilig WlIerC SLIC.11 ('11Y Crraruarrr 1 lie 11 �, 1-nitlatingcolillnittee S11'"'dihe pl01IC&A abe corlsid cred, 'Yhe na,1110S Oftllosc S(--"ry C)" t'' o r to Such nieetitig. Tile nalnes ol, the slid, posted on the clitirch. bolletin board at 30 days pri ) r)('1111irlees shall be properly alu-iomwed and posted also 'it least tet' days prior to the meeting where such elections are to be considered. Additional nominations may not be submitted from the floor. B.- Members of the Church Board shall be elected by the membership, initially for staggered terms of one year, two years and three years, and upon expiration of these initial terms, their successors shall be elected to serve for three year termember nbin,oby secret ballot. With the exception of thePastorno bof the Chuarch Board may succeed M himself in such office, unless there are no other qualified members in the church willing to so serve. C.- Altermile 011j ors. Aketwale officers shall consist of the two remaining nominees in an election of ofllcel-s 011 the highest number of votes. D,- Vacancies on the Church Board shall be.&r a;C e c "UP L61, Icer The successors shall serve for the unexpired term of their predecessors. Sed hould the pts, in Uns by me lexfifinenumber of rnernbers of the Church Board fall below one-half of that number requi Constitution and By -Laws, the remaining Church Board members shall call a Special Meeting of the membership for the purpose of filling these vacancies by the membership electoral process, as defined herein. Section Three: Vice -President The Vice -President shall be elected by the Church Board from among its own members, at the first meeting of the Church Board following the Annual Business Meeting, by a simple M11.1ority, on secret ballot, The term of office of the Vice -President shall be one year, and he may succeed himself in such office for the duration of his service as a member of the Church Board. S(rction Four: Secretary W.Tivasurer ise Secretary and the Treasurer Oiafl be, elected by the Church Board from among its own jj,jcjj,jj)as, It the firm meeting, of the Churc[i Board following the Antutal Business Nibeting, by a e of one ye,11, all(I they jjj,,jy succeed thwvsdves sin-1ple rn,'kjority, on �,.,ecret ballot, for ternis of oflic ive service on the Church Board.' I'l,jese o1fices nny be held in such of5ces for the duration of respect by separate individuals, or one person may be elected to hold both offices of Secretary and Treasurer at the same QW. Section Five: Vftcancies Irthe pastor Us been Wed Or a defink Ion, Ow temne Ofhis 0" sh"A end at v ,he mthn of sudi mn, or A may be termb"Med W nmnney pnwWd in parar.-p,Yiillh R)110�vinR Ij,,,Qji0u of am Ingwr Mull be in a,ceordancQ wid) jjrovjsj(,),,s Wd e6cW&V hi dwso BPI AW (2) dyer l,,jsto,- ceases to cpalily as provkled by tither C 6 onslitt'0o 11 r BY-1,"ws Of (JlUrCh, or whelihis _ n,iinistry ceases to be OWN or Wgood and sU11,71Cie"It cause exists 1e,) redder es are )r.ejel,recj jignins, power is vested in the Iris Ilu'lListry or it sedous charges I "ch reTwM Tr A reQiadon is by him C111.1rch Boar(l at any Ume to K fol' 1_�s res'9,11"i11t 0 - 'I""'ri ,or ,ball jjot be considered vacarA, tqjt,jl the action of the Oxwell refused or ignored, tll,e office of Pas Board 11,1s I)eell ccm(Irined by vote of die inemberslAp. in order to tonnkae a Paw before the end g ho jam, h shall i,cquire a jjj�jjoyity vote of the active tnenlbershiP of j,jjc cli1q,cl, present and Yofing art. aspecial Business mecting of' the duly cailed f"brillat ptn,posc., aftcr a quonmi is established, by secrel ball0t, the etTL�,ct of vdich is to tenninate the Pastor and cmmz a vacan-cy iii stich offlk�-,e Such a tucating called (;oncerning status or Wrininaksn of Am pustor should be presided ever by an dHckd relgesaaad ve ofthe Di Mot Chun& hi evell t 40 fla'stor i s sx",� 1-c111o, vc(I frorn of] ice, a be signed by at least kyo xcers or the churdi and sent to the wr�itt+erre iort os".1st"llistricl ("Ou.n6l, The flastol MUM 111d curron'tf jje of D e,,,te�jt s��,­ crinl credentials, al -e crederili�,,'jjs wifli itht,,, Assonblics or God, and W �,j) rjjjj�j�j 1W withdrawn by District Council or General Council, the Pastor's term is then imm ediatelY terminated. In event such ministerial credentials are restricted or suspended by action of District Council, District Superintendent or Presbytery, the Pastor's authority and duties within this local church shall be deemed likewise restricted or suspended, accordingly. (3) In event of vacancy in the office of Pastor of this church, the Church Board shall arrange for others to minister to the congregation for the duration of such vacancy. (1) Any other office of service in the church may be declared vacant by an act of simple majority of the active membership or action of the Church Board at any of its regular or special meetings. (2) A Member of the Church Board or any other officer of this church may be removed from office before the end of his term, for cause or without cause, by a majority vote of the membership or the Church Board. Any removal by the Church Board must be ratified by a majority vote of the membership of the church at an Annual Business Meeting or Special Business Meeting of the membership to be held within three months of such removal, if the individual so removed such special vote on the issue of his removal. Such written request must be requests in writing received by the ['tutor or Sccr(':t�11'y of t11C ChUrch, registered mail, Nvidiiii 30 clays of the tine of the reri)ovai, with copies thereof nudlc,(] to Uacli orthe other rnenibers oftlic Churcli Hoard [)y certified mail, return receipt requested, citing the reasons for such request and giving recitals in support of reinstatement or against the action taken by the Church Board in causing such removal. Grounds for cause in declaring vacancy in such office may be any of the following: (a) Unscriptural conduct; (b) Departure from the Tenets of Faith; (c) Incompetence in office; (d) Any other good and sufficient cause, ARTICLE SIX .- MY ETIN G S Section One: Meetings of the Church Board A.- Place of Regular and Special Meetings (1) Regular Meetings of the Church Board may be held at any place within or outside the State of California that has been designated from time to time by resolution of the Church Board consent of all the members of the Board. In the absence of such designated place being so B.- Frequency of Regular Meetings of the Church Board The Church Board should meet monthly or more frequeiil ly as need may rer�pji I c, The frequency (W(Iiarch Board mectings may be fixed by resolution oftlie (Jiurch or be as called by the Pask,)r or a MaJOII-ity of 1111embers of the Church Board. C,- Call, Time and Notice of Special Meetings of the Church Board .13 Sped at KNOWS orthe, (111111-011 110'11R], for 1,111Y 1,10"POSC, nlay be Called bY thCREISAO" 11111 ch ward. �j jllc�10flty Of tile Meflibers of Ole Chtirch Board, on reasonable notice as the C, BOI ( ` "(1vaf1ce Of proNlides by its OWT1 ��Csoljjjjon. fi:very nien'iber ot, the, Chwth Board should Ile, nolified ill SUCh StK_,wciEjj Meeting, to allow mascmioble opporinnitY to attend and participate. (2) In orojency situations, Church Board meetings via telephone conl'erellce call shall be permitted, and record of any action taken entered into the inintites of the next njecting, of the Church Board. Board shall consist of at least a simple majority D.- Q"Dorum rcq­,jfjy lnecting of the Unwell I B of the then cur rcnt menibershil) of the Church Board. Section Two: iBusiness Meetings of the Membership A - Annu,,al RuSiRess Wctiogs of the, tnerribership of shall be held on tile fin'st Sun&[Y Of Febwary of each Year', Unless changed by a ("JjLjrch Board resolution, at which firne reports shall be Won and 0'e, el ect i ot, of of and dircclors shall take place, and as hereinafter in these By -Laws provided. 10 Speciall Business flectiHiks ofthe maGershAs of this clurcli jvq be held as need Wes, to condoct or ilnplement the btisi ness q of the Cjgjj and lairoflier reasor'is mentioned elsewhere in dis code of WARLItioll and By -Laws Provisions, to be called b) -the PaStOl' or a filaymsy of the Chumh Want w by hol.iative of the memberdlip, or by Ml of the Distdcl, Snpe,rifltelldellt Grt)isl`ict -einafter in these By -Laws provided. COLUIC11, duty noticed ind held as hal (?,- light or mitiative iteseme(j to Active [° ejnj)ejwsSpeci,,Il Btisilless Meetings ofthe membership nw.y ako be dammAled by pet,ithml of not, less thar, twenty percent of the acdve voting inembership of the Qavh, Such LAW& Pelitioll sliall be yin writing and drilysirby those i 1,Ig s - 1fie Secretary of the d"Ll"ch, niernbers WC]LICSt lich jueetir�g, and received by the Pastor (,), Wherellpon Ole ("lltirch Board shall call 'And fix a date for such Special 13nsiness Meeting to be held tice thereof, [)ejjj,g Klin (A) days thereaHeq Wth dUe DO' given as herciailler In these J)royidedAny inilialiv(, Petiti0l)'," relatirig 1,0 statns (.4,111c pj,stoj- sh,,d] 1�,)e direcled to the-0imbet of, I)iMlict (jounciLshall arrange for a Special Bininess WE, of the NUnbudails ra t. ip to el'IC34310 01,It HICTe Sh,,ill be not more than two Spcci�fl BUsiness Mce(ings of the inernbership called Upon AWAVC, ()I" j:he, nlenihers1lip in any one calendar year, D.- Notice of such Business Meetings of the merubership shall be given by stating thetkne., � the churcl", sanctLiary on tvo SLIaday�s i,dace and fwrposc of the meeting in a puNic announcement at 1,)rior to the r1locting aild by written a1.)n0U11Ce11X-,jyj tothe active. men'ibers of the clitirch, via ordinary. ulap sent to their address Of rec(A-d Of' file with the cowd; at leastte" daYS Pdol' tO Ille Iiine set fr)r SUC�h ""I'li cj,[ r,r,)jjce shall be tyre responsibility of and so sent by the Secretary or Acting Secretary. E - Voting Constituency at any Annual Business Meeting or Special Business Meeting of the membership shall consist of all current active members of the church, who are in attendance at such meeting, F_ Quorun' for any Annual Business Meeting or Special. BuKess Meeting of the HE membership of this church is established by the presence of at least 25% of the active voting membership of this church. Cr.® Proxy volivI19grad absentee batio 11, 1,ing shall not be allowed in conduct of busiaess ally meeting of the iiiernbershipi, llor qly sort of I-epresentation of aibsentees for purpose of estaWslring a quorum. Order of Business for the Annual Business Meeting of the membership of this church shall be as follows' l.® Devotional 2.- Reading of Minutes 3.- Election of Officers 4.® Pastor's Report 5.® Treasurer's Report IWeL-1MLd1Y N 11"'Ful 11 7.- Committee Reports S.- Unfinished Business 9.- New Business 1.0.- Adjournment Section Three: Public Worship and Programs on Church Campus and Facilities A.- 1,kegjljal, mectiligs for public worsll'Tp asid evangelism shall be held on the church campus each Sunday as the L(,,)rd's Day and as (Jet,erinitied by the 1`astol- in consultation with the Church Board. B,® Special meetings for public worship, evangelism., and other purposes, may be called by tile I)astor, G .- Ordinal-ily, call IVI-Sons Willing, to pe,'Icel.Uly assc or. Mteiidance �111t)le for pklr1)()ses cylwoj-ship at or P'(11 hcipatk)11� ill: chtirch progranis on the clit' I -Ch C�,ilnpos shall be weIC,0111c 10 auend, subjjecl to such ic,,isonable ro�tl-idloilS 01- rNUlations as shall be, limie 'shat or [lixed by tile Church Board. ARTICLE SEVEN - COMMITTEES, DEPAIRTME, NTS AND PROGRAMS Section one: Committees A Sl',andilig Ili t tees l'or the husilless I 811(16T, "I'lle ('11hulch 1` oord may kippoint S1, nir 11lCCfitl(-,s, fj,,K�Jiig l-esponsibilities of 111"le ohtlrch� by speci,-11 resolution entered irlto tile alilliltes of tht atid poweI-S f silch colllaiiittees, their dt,iratioll, col"poSi[joll aaa1cl alki, the J?aslor shall se,rve ex-011,71clo oil all sock C01,11'rilittees- "IIIc Chainnan of each sticli cotliiiiiiiee shall be desigiiated by the Church B'WIRI, and sLlCh 018il-1,11"111 shall set the time and place of meetings of his or her qgenchi fi)r Inisiness to be then and there conducted. Persons so con"flittee zljlcl tile -nmig tile acqive memb appointed shall be selected li-orn ai ership. B.- Special C09"Blilt"s Mali 81.11�ject to approd (yrtj,le ("llurch flo,,,ird, for The Pastor iTlay Of)I)Oillt SpecialC=O�a po soinqoiry and co�insel as is neces%lly, coent of' (()I- t,lje iyi,ja,sion to)d por se,, fthe I i ofthe Chorch l3oat,(,j, Ll11(jc1- SL,1pel-V!sjoli setvalgo at pleasure all(] cii Committee of'Trustecs N n of the Church Board, a Commit-Lee of Trustees may be designated for By special resolution L Purpose's and ljalvtjlg poAvers as identified and established in such special resolution, For holdirl-1, property or I(,,.( al ti Ile to real prOPeT-ty (,)I. persona I propcytyi�k)r t.he use and benclit of this corporation. I'liere shall be 1,K) presiding "I'l-Listee, but the C0111111ittee of Trustees shall at an times be shall Ti authorityol'-'thechurch-Board. Individual Trustees be Uls,tt-1,ic,tion ffoni and under contill"i L', I'llein " bers, by simple nlajoritY on a secret ballot. selected by the Chia-cll 13oard,, frorn al-nong its own The number of persons serving on the COMM i Uee () f 'I'i-Lis toes, nsotheduIcrW'Se established, the duration of term shall be as established iri SL[Ch special 1V80lLflk)R. IF 110t Otl and shall I-niinated 1)), fi.irt'lle of a Trustee may be al)bt-eviated or te r resollytion oftthe oardexpire tertiiiiiatiall of respective ter 111asaineirnChurch Board, or upon in arl,)( event upon - the successor Trustee or the Chrch dissolving of the conu-nittee, A retiringj,rjjs"tee shall skIrrelidet Board any property oaril:)terests held ill that c�,,tpacity, and [11Cto SUccessor Trustee shall assumeuthe responsibilities of the retiring predecessor Trustee, with or without formal assignment or transfer of powers or interests. Section Two: Departineirits `Uld I'V-09r,"I's There may be departments and PrOgi-arlIS Ctentedthe Church Board to function as distinct ministries of the church, under regutatioiris set Or approved by ille 'Church Board, all of which shall be under the direct supervision oil the, Pastor, which departnients and programs shall have names, by L,I)e (,h,,rcl) t1oard. Aniong the departments and programs to hdrictions jil(l responsibilities as set 11,til I-)e ti-le flollowing: tie established and f'L1ncti(,,,)nJng widn" the Church s A.- Sunday School: The church shall have a Sunday School Departalent, Nair teaching and raining of grOUPS identified by age c)r. SI)ec.411 int (N-est, 'I'lle Ch rch Board rnay by it's speci,,d resolutior, determine that the Sun&'iy Schc)ol mparn-nerit shall be under direction of a Sunday School )jnted by, respollsitfle to, 'the Church Board. However, the SUPCI-Intendent, selected and ai)l,)(. the stinclay School Departnient and the Sunday ScIlool St,i)eriniendent shall at all times be under authority and direct supervision of the Pastor. -)lisl-j ()d)er and auxiliary B.- Auxiliary Departments and Programs: The chum Na may csttll. I I ) 10 o r Chm 11 Board deems necessary or oor"Wilient, 1( condL depa r-1 nwrr [S and pr(',s,1rW11S Is ti'le -c )T) of, the Cht'irch Board, prc)rnote the busines's and porposes of,t,1:te created by special resOlUtic ' vis'on of 01C 1',)St01-- ShOUld be gplen to 0 all ()f shall be ujider tile SUI)Qr I ino;JUC14% Ckhlc��Itkfll, �Incl Aerograms yrs are coinnionto chtirches oflhe Assorlblies of Cvj )'OU111 Millistries, Men's Ministries,, Wom(,,n's Knistries, Ministry of Music, Royal Rangers, Missionettes, etc. ARTICLE EIGHT - EDUCATION DEPARTMENTS - NONDISCRIMINATION POLICY (101)<�Iiinleflvs nx es-t�,ibhshed w,Nrithirl this COT-Poratioll, by Special resolution of and ay be Or SUI)ervisio)n of the ("I'lurchBoard, having narne 01, nanics, assigned to r�nder dil 'I. r respective such departments, WRI ollicers and st,lbordillato, adniinistra'Ol-s FOr tile c(,)"dL1c'1 Of ltlei I ll akahorize by S�wl-1 speci�ll resoliltions, For the operol' Of 1:),,rsjness, as the BOarr(l 'I - and, there sh,ftll 1)e a graninial- t or otber dric, i 'chool and hig!h qcll()o C at onal prograi . Irs a(jrr�ijtlng st(idcots ofajay race, oolm, nallonal polk"y of tho'se dcpaifi or inadc, 1�)rivjjq� I activities geriel"011Y acc<)r(lecl ,es, pro)S�,ranis a-11( atid ethoic OrigiD W sliall not discrinifflate on 1he basis oil, I ace, color, available to students at the schools, I'his coat it aclr111ISS1011s J)ofties, sctlolarship national or ethnic originmi adi-ninistralioll oaf edL1CcTH0W1l 1101'rC'lesl 16 or loan programs, or athletic and other school- adrni,13 stered programs. ARTICLE NINE - REA-L PROPE WIN, CHURCH CAMPUS AND FACMITTES section, one'l ritle, to Reall ll)roffftY ,11je to all real propeny belonging, to this Church shil be deeded to the dttirch in its official corl"Wrilte: Iln-Ine, or told in wt, by District Counoil, subject to proovisjoyls of this code of Conslitution and By -Laws, Section Two: Restrictions on Acquisitioul and Alienatioll No real property (31" this ChUrdi shall he purchmed, taken otherwise acquired, sold, trarsArred, Ivartgaged, lensed, assigrod, conveyed or othetwise alieriated, without the saine slufll have been ffi-st authorized by a m) -thirds vote of tile active merhbers present and voting., at an Annual Business M.00ting or Special Business lWeedrig of the nientbership called for that purl?05C, at vdich is a (PH)" is first established. Secdou Three: linnuthimized ikcdvifiC�s 011, Cl"rch Property 'There shall be no per-�sonal crusades or private campoi gns, prograrnq craerlmises Or activities con&lctcd (),l tile church eanipus, nor any sub0c or opehMay or distribution 01signs, lRemIxe ()f ,,,(lvcrtisernents, unless such shall have been in advance appmved by the pas or If additional sei­vices, canipaigas (if progyrarns are desired beyo I nd those prodded, or should aliy part of the chwd i carnpus be desired I, ,,, yl sovVes, campaign, prowmals or use inust lost have the approval of we pamm, �tnd be under his general audxwity and SqXT0501 and his approval 1yay be withdrnivn at any time vvith0l't notice, lcruaaray reason, 111 event the church istemporarily withoUt a act ivitics, Inust first 11,1ve the approval ()J'* ttie Church Board. Section Four: Wgulations and Policies Restricting Access to Church Campus and FacHi6es The Pastor and Church Board are authorized to establish and maintain rules, regulations and klillp and facilities, including resuletions policies rCg g a,cnvities taWng place on the chwch campus _ivate and upon or exdusik:)us of individilals ()I- gnmps, The chauch campus filcififics in"e )1 con6dervd to be Roy Ground, and this &XVII reserves tile right to resirid the movenients of any person on the church campus and facilities, or to exclude or expel any person or group frorn same, at any time, for any reason. Section ne® Financial ]Resources This uhurd, ovill be, Financed according 10 Scriptural aiethods, through gifts, donations, tithes and cAlbrings of the rnmilers and friends of church (Ma11. 3:10; Matt. 2303; Heb. 7;4-9), and 41cx�rrne "u'd revu,111je: 111 (�)tber 1mvilill sources. section Tl",oBudget 1ajtj pisbagnconents, Annmld� lle)ieN The CVarur as l3oard shall have Hmieml awhorhy and supetwhn a ion ill 11nancial matters in every depirtnient and l?r09raVn \Vithin, tile church, and shall estabbsh an, annual open,,iting budo t for the ge WHem and Shall detelinine and autorize payrnent of all debts of the church, including salarks for empkqew, and to nuke adjusinients they deern necessary or expediert The Church Board shall Na arrange for annual review to be conducted on all church accounts under control of the Treasurer. Section Three: Compensation of Pastor and Staff l I efla or's satar�y ,illiitially in The Church Board, in consultation with the Pastol', shall "eview 1, 1 st (,-)rder to provide 'an adequale iricollie to meet clianoes in cost ()f llvi.iig, �lnd lie shall be givell regWar ,�llld �ldeq�late fiiiancial support froin the funds of the Gfil-ircfi, irlchidingf hoLlsilig zillowaiice, refirel.-neil -va as rilay 1) Ix d )y e programs, and reinibtgsellici its, ' to be paid ill -llrlounts wind at ,�tictl is , ell C I l3o,�lrd, Hi accordalice with law and ability of the church. The Pastor should be given at least two weeks vacatioll with 1),ay abler his t7v-st YUN Of service to the church. Employees and Pastoral Staff shollidbe reasonably con-1perisited and given paid vacations after their first year of service to the church. Section Four: Reimbursements The Church Board should provide reimbursement for all authorized expenses incurred by the Pastor and other employees, volunteers and representatives of the church, including delegates to District Council and General Council conventions, in the course of their duties and services for the church. Section Five- Coil) pellsation of (""hunch 41oard Unless otherwise employed by the church, the rriernbel s of -the Clitirch Board shall tiot receive ccmi,pensafion for their ser -vices Or their t1tric involved in nleelili_'A,s Clitircil There shall, ho%vever, be reirlikirseilielit fm(,,,N_pcllses incurred ()jl t)0h,,tIf ()f I -Ile ChLll'Ch 01- ill tll(',' (",OW -90 () r the church business, including extraordinary expenses incurred on account of attendance at meetings of the membership (,)r the ('hurch Board. AcCOUlItS expenses shall be s�,lbrnllted to all(] paid by the Treasurer of the chtirch, and paid out of church forids without further approval or resolkition, prima facie bona fide. Section Six.® Restrictions on Expenditures Any sillgle 11,11isactioll orproject that coil telv I)] ates an expenditt,irc or del.),t ill excess of a sum I �M(ral fiind btidget MUSt first have approval of the e(I , Mll 10 tell 1.)erc�el)t (H) X0) of the antloal geT)e 111cilibership, Npproval of tile twv�ileisilip i,11 regard shall require a two-thirds affirmative vote to authorize such expenditure. Secti(lgi Seven: Stewardship and Miscellaneous Special , 111c clltlj�cjl shall solicif and receive 1:1-oill [lie congregation ,Iriol iiieri ibership a regul,v, rnotilhlY World Missions r-,)MeHllg, the receipts of'rvhjcli should be theil 1,61-thwith sent to the aippropdate deparhaefit ofthe Asseniblies of God, 'J"I'lls church shall cooperate with and sLipport, accordirigto its ,qbifity, the Gurrent I-Aw,s, and other departillents, ministries , of Stewardship of the Assemblies of (iod, aind pr ogran)s cif" the Disti-ict Council and General Council. ARTICLE ELEVEN - RESOLUTION AND ARBITRATION OF DISPUTES It is the policy and standard of this church to avoid conflidsinvo lvirlg coaatlrontatiot)s and judicial proceedings ill SOCUlar courts, and to resolve dispiiies ill j,Jle,,,vay provided by the SUiPtUres, 11� and in manner following: section One: Disputes between Individuals M ��� � State of California Bill Jones Ph"'In (!)It;) I;,,/ Secretary of State STATEMENT BY DOMESTIC NONPROFIT CORPORATION THIS STATEMENT MUST BE FILED W11 It CALIFORNIA SECRETARY OF STATE (SECTIONS 6210, 8210. 9(,,(-,0 GO11PORAI IONS COI)Fj THE $10 FILING FEE MUST ACCOMPANY THIS STATEMENT, California Corporate Number: 043-7263 CHURCH OF THE REDEEMER OF THE ASSEMBLIES OF GOD DO NOT ALTER PREPRRITED NAMEIFITEM I r, BIAHl< r,j Fill[ 11 (:()HI'llItAll II/lIvIl 0 '1---G 53053 ENDORSED - FILED in #" off" of ft SwLo" of same of ft stez of cavwia 1.16 1 5 2000 BILL JONES, Secretary of State III-) jj()j bNjjjm III IIID F -,I"\( -F THE CALIFORNIA CORPORATION NAMED HEREIN, MAKES THE FOLLOWING STATEMENT 2 STREET ADDRESS OF PRINCIPAL OFFICE Sul 9 OR ROOM 2A IIF NONE, COMPLETE 3-381 3739 North Monterey Ave. I., cl w j.. I-). P,��i r k., CA CjlY AND SVAIVii. ISO NOT USE P.O. SOX NO I . ............... 3A 3. MAILING ADDRESS 3739 North Monterey Ave. Baldw-Ln rl�.�trk' CA CAtiY All',l) STAYE THE NAMES OF THE FOLLOWING OFFICERS ARE„ ®, CHIEF EXECUTIVE OFFICER AA. SIREET A7 )DRESS ISEF REVE.ARSE '6U-JFl Rev. Areliano Flores 3739 No., Mo�'iLerey Ave. . . ................ 5 SECRETARY 5A � STREEY ACT-JR11 F SS 6S" -`E irFEVERSE. SIDEI Josephine Castillo 3739 No. Mont-e:r..ey AvcA. 6 CHIEF FINANCIAL OFFICER -11IE-1 11-11RISS lI S . 1: 1F. 1 1111SE S1111 1 Georc,je Al-Tuilar 3739 V. MC)I-VLEI�-c— Ave. w 9 17 0 9_l!.706 4ICITY ANL) SIIAIE 4 CA 917 0 0 SB- CHH AND SIAIE ZIP COUE Bal-dwJ-ji Pa.i,.-k, C."A 91.706 6E CIlY ANU STAIE 6C ZIP CODE 13 a 1 dw i... ri P a j: k., CA 91.706 DESIGNATED AGENT FOR SERVICE OF PROCESS Q0"F AGENT ? 1, Rl.Q LI l R l- 11 81 C A IIIM l a E rn4lora,rr ) o " -a S6'— r 6'— P LA AS E RF... A D ITE 1. v' 7 AN 0 6 0Q4 Gtr -VL OY w'.Vii `F 6_ ... l ....... I 7 NAME Rev. Sairl, Saj'�c.,1�ez B. CALIFORNIA STREET ADDRESS IF AGENT IS AN INDIVIDUAL IDO NOT USE EC)XI 11.:7o rqC7T INC k UL)FE AOURESS IF A(-',Er4I IS A ( OPPONA7ION 614 So® Fifth Street La Puente, CA 91.746 COMMON INTEREST DEVELOPMENT ASSOCIATION SECTION 1350, ET SEQ... CIVIL COUE IHIS CORPORANON J7, tl0l' AN ASSOCIAT�ON FORIIAEE 3 10 MANAGE A C01',11MON INTERF..,ST DEVEII-OF'IAENT IF TouS DOX IS (-HFCKED PF:�OCEED 10 INUI I ................. - I'll . . . ...................... T THIS CORPORATION IS AN ASSOCIAIloRq F01P?mEr.j 10 MANAGI,.ERE5 U E V : A COMMON INTE L O" M 11 F L) N D TIiH7 DAM'S `u COMMON INTEREST DEVELOPMEINY AC -T" OF -T[I E -30X IS CHECKED, C<".9MF'1 E -TE 100 ANC) tOB . .. ................. 10k BUSINESS OR CORPORATE OFFICE .. . .......... ..... . . . ........... . "I'll -- toB NAME ANr..J ADDRESS C -)F 1HE MANAQF, VNG AGENT q, D CERTIFICATE OF AMENDMENT Of ARTICLES OF INCORPORATION AURELIANO FLORES and JOSEPHINE CASTILLO certify that- I.- They are the president and secretary, respectively, Of IGLESIAS CRIS"F[KNAS DU,L REDENroli, INN. A (ajifoniia Nonprofit CorPOI-ati011 2-- The Article of Incorporation of the corporation are amended in their entirely, to read as follows: 111111I111111111111 IIII11�111IIIIIJI! NMIV M 0.1 M , V A.- This corporation is a religious corporation and is not organized for the private gain of ;jny person. It is organized under the Nonprofit Religious Corporation Law excillsively for I-eligious purposes. The specific purpose oft is corporation is to propagate the Gospel of Jesus Christ, according to the Holy Bible, in customs and traditions of Pentocostal Evangelical (,,III-istiaiiity,as achurch, in fellowship with The General Council of the Assemblies of God, a Nfissouri N _ onprofit Corporati011. C.- This corporation elects to be W)verned by all tile la' -ovisions, of the Nonprofit Corporation Law of 1980 not OtIle"vise applicable to it Wide" ]"Ill'i 5 thereoL A.- This corporation is organized amid operated exclusively for religious purposes within the meaning of ( c) (3) of the Unite States internal Reveime Code. B.- No substantial part oft a activities Of this C0rPO"#t'(,)ll shall consist of carrying (),% propaganda, or to ififilieffice legislation, and the Corporation sh-01 'lot pfll-ticil)ate t),- intervene in any 1)Ojjtjckd campaigll (including the publishing or distributiOn Of statements) on bebalf of Or if' opposition to rtroy candidate for public office. C.- Notwithstanding any other provisions Of these Articles, this corl)(026)"' S1101 not Carry on ally ()t1l,er I.Cfi-Vifies not permitted to be carried oil (it) by corPoratioll exclilp, j,j-(jjjj: tax under 1;'901(0(3) of the Internal, Revenue (lode, or (b) by as f of the Intermal Revenue corpo - atj(,� n co ntrib utio its to whiell re deducl ible u tiden- (,'.'ode,o I- ille co r respondiog, provisi(, Is of jjjiy fultire United States Internal Revenue Law. 0_711V�� I'lle property, of this corporation present and prospective is irrevocably dedicated to religious purposes and held in trust for the 13111'13050% of Worship, evangelisin and fellowship with and according to the Customs and traditions ouruEGENERA L COUNCII, OFTHE ASSEMBLIES OF GOD9 and no part of the Heti Income or assets of the corporation shall ever inure to the benefit of any direcl.or, officer or member thereof or tot benefit Of any I -it property, now owned or held in trust Private person, rifle to all persianal property and re, for or hereafteracquired by this church, shall be perpetually dedicated to and held in trust worship -ing church facilities and for the purpose of ulaintaining a place of divine , hip a nd operat ouncii and programs in fun cooperative fellowshipacrdt d affiliation with he General C District Council. Upon the dissolution or vyinding up of the corporation, its assets re �joainijjg rifler payment, or provision for payment, of all debts and liabilities of this corporatiojj, shall be distributed to SOU I 14ERN PACI FIC LAXIN AMER] CAN 1.)ISTRICT COUNCIL t THE ASSEMBLIES OF GO% a California Nonprofit 4- Corporation, -Which organization is formed, and operated exclusivelY fair Migit'lls r , purposes, if it is then in existence and exempt from taxation pursnant to provisions of Intel -'is] lZevenue Code f, POU c ) (3), or, if it is not ttkell so exisfing, and exempt, then toTHE GENERAI., COUNCIL OF THE ASEEMBLIES OF GOD a Missouri Nonprofit clorlporatjon, which organization is formed and operated exclusivelY for religious purposes, if it is then existingand exempt frogn taxation pursuant to provisiolls or internal Itevenue Coils 01 (c)(3), or, if they AM both not t ' heli so existing an(] exelupt, the'] to a 110"Profit fund, foundation or corpor.ation Which is organized and operated exclusively for religious pliq)oses in harniony with tile PUrposes of this corporation find which has established its tax exempt status under 01 ( c) (3), fof the Internal Revenue Code." The, f6rcgoing Aniendinent of hs ides of Incorporation has been duly approved by the Churcii Board (Bola d ()f'[,)ir miors). atJoii has been chily api:)roved by the 4, 'rh , e. foregoi iig, Amendinei)t of A rliel es of b1corl)(0 required vote of members. We further declare under penalty of perjury under the laws of the State of California that the matters set forth in this certificate are true of our own knowledge. Aureliano, Flores Incorporated on: August 7, 1962 California Corporate Number: 0437263 N 47 Castillo Church ofthe Redeemer Baldwin Park, CA Statement ofFinancial Position For the Year Ending December 31.201O (Unaudited) ������ 1�3186 1�31�5 1�31M4 Current assets: Cash and cash equivalent 31.199 44.040 19.285 Investments 1u2�7�_ ___L2 C, ��_ ___Ll 63,733� Total current assets 174.078 164.165 183.018 Noncurrent assets: Property and Equipment, net of uooum|otoddopeoiaUun 1,6[75,3I5- 1,723,355 1,771,385_ Total assets 1.049.403 1.887.521 1,954^408 Current liabilities: Chase Credit Card 22,549 25.769 28.195 Accounts payable 5,323 1{8,253 - Total current liabilities 27'872 34,153 40.448 Long'tormdobt-MortgaQo __t1u0i32{� 1113J952� 1,130.611_ Total liabilities 1,169.195 1.148.105 1.177.058 Net assets: Unrestricted 560.200 665.010 702.944 Temporarily restricted 120\000_ ___Z4£K00' 74,4y00� Total net assets 680.208 739.410 777.344 Church of the Redeemer Baldwin Park, CA Statement of Functional Expenses For the Year Ending December 31, 2016 (Unaudited) Description of Expenses Pro ram General Admin Total Salaries 151,049 151,049 Office Expense - 19,020 19,020 Building Maintenance 12,447 12,447 Special Events 6,629 6,629 Insurance 17,150 17,150 Interest Expense 61,130 61,130 Utilities - 34,734 34,734 Service Charges 774 774 Property Tax ry 29,747 29,747 Depreciation 48,030 48,030 Group Funds 111,968 111,968 Capital Expenses - 1,149 1,149 Other 1,359 1,359 Total Expenses 111,968 383,219.16 495,187 Church Mortgage (Principal Payments) - 18,229 18,229 Certificate Payments Church of the Redeemer Baldwin Park, CA Statement of Cash Flow For the Year Ending December 31, 2016 (Unaudited) 12/31/16 12/31/15 12131/14 Cash Flows from Operating Activities: Change in current assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Realized and unrealized gain on investments Depreciation Decrease in accounts payable Net cash provided by operating activities Cash flows from Investing Activities: Church Bond Funds Church Stock Funds CEP Certificate Cash flows from Financing Activities Payments for long term debt Increase/Decrease in cash and cash equivalents Cash and cash equivalent, beginning of year Cash and cash equivalent, end of year (87,427) (37,928) (17,941) 22,846 17,907 (8,090) 48,030 48,030 48,030 3 062 (9,'868) (4,6171 _(19.6131 8,140 17,382 - 23,275 25,000 ....._ 1( 8,229.). 6wC,IT600 (15,579). (12,841) 24,7 6 1,803 4,040 19,285_ 17,482 31,199 44,040 19,285 Church of the Redeemer Baldwin Park, CA Statement of Activities For the Year Ending December 31, 2016 (Unaudited) 12/31/16 12/31/15 12/31/14 Reveues, Gains, and Other Support General Contributions 346,913 390,368 371,460 Group Fund Contributions 83,693 77,479 243,396 Unrealized Gains/Losses on Investments _846 -9-01 8,090 Total revenues, gains, and other support 407,760 467,656 622,947 Expenses Program Services: Ministry programs 111,968 . �• • � 92,540 258,465 Total program services 111,968 92,54D 258,465_ Support Services: Debt service 61,130 79,266 80,463 General and administrative � 322,089 333„778 301,960 Total support services 383,219 __413,044 044 382,423__ Total expenses 495,187 505,585 640,887 Change in net assets (87,427) (37,928) (17,941) Net assets, beginning of year 73 ,416 777,344 795,285 Net assets, end of year 651,988 i 3x3,9.16 777,344 APPLICATION CHECKLIST 0 ORGANIZATION East San Gabriel Valley Coalition for the Homeless Please complete an Application Form for each proposed program/project. If an item is not applicable, indicate "N/A" in the box. If you need assistance, or have questions, contact Michelle Bravo at 6.26 960-4011 ext 354. 1. Y APPLICATION FORM 2. 7C BUDGET PROPOSAL (ATTACHMENT A) 3. BOARD OF DIRECTORS AFFIDAVIT 4. ORGANIZATION BY-LAWS 5. X CHARTER OF ARTICLES OF INCORPORATION 6. IRS TAX EXEMPT STATEMENT 7. MOST RECENT AUDITED FINANCIAL STATEMENT 8. X PAST AND PROJECTED ACCOMPLISHMENTS Application packages are due by 5 p.m., on January 11 2018. Applications must be submitted to: Baldwin Park Housing Division 14403 E. Pacific Avenue Baldwin Park, CA 91706 LATE APPLICATIONS WILL NOT BE ACCEPTED. APPLICATIONS THAT HAVE BEEN ALTERED FROM ITS ORGINAL FORMAT WILL ALSO NOT BE ACCEPTED. FUNDING APPLICATION BALDWIN PARK COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2018-2019 PLE i SE TYPE OR PRINT' I. AGENCY INFORMATION Agency Name East San Gabriel Valley. Coalition for the Homeless g Y Agency Address Agency DUNS# PO Box 93256 Address Street 104873927 Administrator: Donna McKennon Cit roof Industry C715 City Zip Code Title: President of the Board of Directors Administrator Telephone: (626 333-7204 _ _ _ Fax: (626) 333-7260 Administrator Email: Project Site Address: 1345 Number Turnbull Capon Rd. Hacienda Heights, CA 91745 Street City Zip Code Project Manager, Marta Lue Title: Program Manager Project Manager's Telephone: 6261 333-7204 Fax: (626) 333-7260 Project Manager's Email: esg� orn Describe Agency's overall function or purpose. Include history and experience in providing this service. (If more room is needed, please attach an additional sheet). The East San Gabriel Valley Coalition for the Homeless ESGVCH is a non- rofit Q1 c3 charitable or iZaticad in or orated since 1994 and o erates under a voluntar Board of Directors to direct) aid eo Ne ex eriencin homflel'essness. It is our mission to brin hooe and restore di 1 qt to those in neer l rovidirN shelter allev�atAnc q un assisiing with basic dailyneeds" assisting, to re, ain housin raising community awareness and worlinp collaboratively with others to end hunger and homelessness, Has the Agency previously received funding from the City of Baldwin Park? X Yes (if yes, number of years 14 ) __ No PROJECT PROPOSAL AND DESCRIPTION Grant Amount Requested $10,000.00 Scope of Services — Please briefly describe your proposed Project/Program and the objectives. ESQVCH operates four .L9cl ams_ 1IT) Th�E-rggMgnc Assistance Center (EA S, 2_ J The Bri ne Program which _has the same structure as our old Transitional 1-10LJSirl�j Program, but %s erated in motels. Tl -fie program is shorter -term than the Transitional Housing Program, but itstillinaintaii rs to same goal of pi c' pf. o le Jnto their own „permanent hou rnr __ESGVCH isw o erati��ct t# a Prµud�te pro �,am under the Ernerq c Assi�tence Center PAC motel vouchers 3 The Winter Shelter Program WS-e�, 4) And the Encore Program which is a Drug and A „oho)Ic alcohol addiction,_m s.. The EAC ,_pro. tarn for clients who have drr.r s ai°� services were established at the time of incorporation. Our center islocatedin Hacienda d i(. lis ar°ld itis omen Bail __to oaovi e hot meals lunches to- o showers, .hygiene kits, clothing,_ trans ortation services bus rase/tokens.,. emergency shelter motel vouchers for families and referral services for those in need, The funds of this grgn! a` lication are re nest 4 to support the services and staff of the Emer enc Assistance Center located iri Hacienda Hei hts. ObLec.fives of CDf G Grant: _5g2port our Errier� cAs sistance Center staff to administer the following„and to help pa for motel vouchers„ T. Provide motel vouchers on an emery basis to families with children ages 17 and under. 2, Alleviate un er on an ever da basis amon those who are homeless. 3. Provide for the hygiene needs of those who are homeless (showers, hygiene 1 roduc.ts_and clot) LnAj. 4. Assist homeless clients with trans or�on neeo.§ by providing bus tokens and %ootHill Tran it asses. Beneficiaries — Please briefly describe the clientele that will benefit from your services (i.e. homeless youth, the elderly, disabled, handicapped, etc.) The East San Gabriel Valle Coalition for the Homeless serves eo I�ho are poor hun r and thes e eriencic�worr ielessness. Our tar et o )ulation includes families and/or individuals who are ill disabled,_glderly chronically ho14-24 years of agej. Among the families are infants childrenand.oun qd lis., Describe any special characteristics of your client population. The clients that East -s- San Gabriel 1r"Hey pgsjt#ort for the Homeless serves are UnLq g in the... sense that they: ....._ . are all homeless or are in darncier of becoming homeless Increase in Funding Request - If your agency has been previously funded through Baldwin Park's CDBG program, and there is an increase in the amount of funding requested, please explain the purpose for the increase (i.e., increase in type of services or beneficiaries). East San Gabriel Valwlwev Coalition for the Homeless is re uq estin the amount as last ear: $10,000.00, CLIENT INTAKE INFORMATION The U.S. Department of Housing and Urban Development (HUD) requires that agencies obtain intake data from each client/family served. Application intake must be taken on all clients assisted with CDBG Funds. Supporting documentation is also required. Please see page 8 regarding Presumed Benefits. Does your agency obtain this information? X Yes No If yes, does your intake sheet and supporting documentation obtain the following: 1. Name Yes X No 2. Address Yes X No 3. City in which client last resided. Yes X No, 4. Number of family members. Yes X No 5. Total family (household) income. Yes X No. & Ethnicity Yes X No, 7. Female head of household Yes X No Pursuant to federal requirements, if your agency is unable or unwilling to obtain the above information from its clientele, please do not submit an application for funding. -6- However, if your agency is willing to accept the responsibility, obtain this information and retain supporting documentation for the required five years, the Executive Director must certify to that effect below: .� �.r,, e- :� ° ,.....,�..�.... Martha Lcae President of the Board of Diectorsr Print Name Title of Officer Signature Date -7- ACCOMPLISHMENT DATA Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. The reporting accomplishment data to be used by our agency will be: PLEASE CIRCLE ONLY ONE OF THE FOLLOWING: Individuals Youths Households Please provide the actual number of your agency's total clients assisted to date and the affected data for the upcoming fiscal year. Please complete this table regardless if you receive CDBG funding for this current year Actual 07/1/17 TO Current BALDWIN PARK RESIDENTS Duplicated Total .—Unduphcated Motel ---Zg - Youchm j6iy 30 59 427... August 43 83 126 345 Sept 20 — 47 67 _ 455 ...__..... �1_____ ,_..._........-- -- --------------- ................. 38 �...._.. g....... � � 4� ....�._ 27 Nov 17 37.........— 54 375 .18 ......54m,�.,, � .,... 72 , .. �.33......,. -.— NON-BALDWIN Residents from other _ cities have .._._._._............ other _W W W .......................... funding PARK RESIDENTS (not Baldwin Park funding). -8- Protected 07/01/18 TO 06/30/19 Duplicated: 300 Unduplicated: 200 Total: 500 Presumed Benefit Income eligibility is not required for services provided to "Presumed Benefit" clientele as defined by HUD. The following groups are considered presumed benefit client: • Abused children • Battered spouses • Elderly persons • Illiterate persons Persons with acquired Immune Deficiency Syndrome (AIDS). Adults meeting Bureau of Census definition of severally disable persons Homeless persons Migrant farm workers Which further describes the activity you are proposing? A) X The project will benefit a presumed benefit* clientele as defined by HUD, B) X The client intake information will provide evidence that at least 51 percent of the clientele are persons whose household income does not exceed the CDBG eligible income limit. C) X The projects limits services to only CDBG eligible -income persons. BUDGET In order to remain in compliance with HUD's regulations, your agency must be able to separate and identify expenditures of CDBG funds from other source of funding. Please complete the following tables with your agency's current budget (including CDBG funds, if currently receiving funding) and the proposed budget, identifying how the funds will be utilized. F— LU D m 0 W a- 0 LL 0 . .. ... ......... ...... _ — ti 0 0 c� N O M O O O M 0 Oi ; M (D 0 O �t d' N M cD ; a ti C6 O 0 E!� EA} e' E!} d4 O a)�- LL 7 NO m O O O a O O TM:O� N C LO 1� M r L d iV. N C6 Ir aj M 4. C Qi p M �} N Ef} CDto 6Fi f TO" O ch ®®,. ------------------ --............... _.. 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L614 a O —CD —0-l"", O N m $ I O QO 0 O % O O 00 CO 69-6 O O O O O O O Nr � r u) r � N CCC)C) I (C)V CL 0) '0 O g O " O � O C� r- j 06 uj C Q r O CO Q a (� N ti C 6c3 if3 Cfl i N N T 6 O cI0 � a 61) 69-E f} N- ._ LL Cf} L (D ' 1 o Lq O 4- OO CD O CA " p�p CO co N VOO O C7 (3)� Cl) r L N O CO Hi E CV N Or- L O69� 1 6ct O I X-- I LO Y bp� . . _....... U g !!' 9 Y I B P CV d " O O O O p m Ur a r I I I O O i q Lo L Q CD i w 3 i w �' 6ck 69 K-} N U U �� U (D c L V) ai U) ^�^, N _ C1. Q J Q �_ L) vv ^ W 0) 0) Q. Q, (u W J C 13 0 x LU N �' � °' CO a� C C O N O o (D m m ) CV O Q Co C U M O O O (D E M .-. c L o C U � E m C � U w U m 2 Q L W r w a O O U) (6 C OL (D En O 0 a� L- O r; O "J Q N U N U 0) E E to (n O' N' a J C C D r- N c7 d- LO I -- O ti O O W BOARD OF DIRECTORS Name of Executive Director: mmDonna McKennon CERTIFICATION All organizations that submit this application must provide accurate data concerning the number and income level of clients. Estimates are unacceptable except for start-up agencies. This stipulation shall also apply to all organizations, which are subsequently awarded funding. Any organization that falsifies information, either accidentally or intentionally shall be required to reimburse the City for any funds paid out and shall not be permitted to apply for funding in the future. -12- AGENCY CERTICATION As the Executive Director, or duly authorized representative of The East San Gabriel Vall !y Coalition for the Homeless I certify that the applicant is fully capable of fulfilling its obligation under this proposal. This application is submitted to provide the services for the City of Baldwin Park as stated in this proposal. If this proposal is approved and funded, it is agreed that relevant federal, state and local regulations and other assurances, as required by the City of Baldwin Park, will be adhered to. I certify and declare under penalty of perjury that the information provided in this application is true and correct. Donna McKennon ___.._.._ President of the Board of Directors Print Name Title of Officer Signature (626) 333-7204 Phone Number Email Addressor G n Date Has the agency received notification of findings or concerns in the past 5 years? No If Yes, Please explain N/A Please provide corrective actions taken: N/ Office Location: Est �iAH G abeivl. al0a°y 1345 Turnbull Canyon Rd � , Hacienda Heights, CA 91745 44 4?"C 1, Phone: (626) 333-7204 Fax: (626) 333-7260 East San Gabriel Valley Coalition for the Homeless Board of Director's Chart [Excerpt from ESGVCH Policy Manual- Pages 6-13] Article 1: Name Article 2: Purpose: (Essence, Mission, Philosophy) Article 3 : Board of Directors ("Board") Article 4: Executive Director and Staff Article 5: Committees Article 6: Miscellaneous Provisions Article 7: Dissolution Article 8: Fiscal Year Article 9: Amendments, Rules, and Regulations #500 Conflict of Interest #502 Board of Director Member Limits of Authority #505 Endorsements of Materials or Products Policy Manual Section I Article One: Name 0001 The Name of the Corporation is East San Gabriel Valley Coalition for the Homeless ("ESGVCH"). Article Two: Purpose #0021 Essence: The ESGVCH is a coalition of local faith based groups, service organizations, businesses and individuals of the East San Gabriel Valley (hereinafter called "Coalition"). #0021 fission: The ESGVCH is a faith -based organization of volunteers and staff dedicated to serving the homeless and those at risk of homelessness. Our goals are - (a) To alleviate the immediate need for food, clothing, shelter, care and comfort among the homeless. (b) To assist and support the efforts of the homeless and near homeless to regain the ability to provide for themselves a stable home environment. (c) To increase awareness of ESGVCH and homeless issues in our community. (d) To foster partnerships with businesses, organizations and individuals to accomplish ESGVCH goals. (e) To receive and administer assets exclusively for charitable and educational purposes (f) To operate and act exclusively for charitable and educational purposes within the meaning of Section 501 (3) c of the Internal Revenue Code of 1986, as amended #0023 Philosophy The Coalition feels strongly that all are called to turn attention beyond themselves to those who suffer especially the poor, the hungry, and the homeless. ff. ITOMITINWI&I ",M= Our common belief is that society is called upon to turn attention beyond themselves and toward those who suffer, especially the poor, the hungry and the homeless. Article 3 Board of Directors (hereinafter called "Board.") #0031 Duties and Powers. Except as specifically provided in the corporation articles of Incorporation of ESGVCH or these By -Laws, the Board of Directors ("Board") shall be the governing body of ESGVCH and all of its committees, employees, and agents. It shall establish policies and rules for the operation of ESGVCH and shall provide direction concerning financial and administrative operations, consistent with the By-laws. #0032 Size The Board shall consist of at least seven and not more than 15 Directors of the organization #0033 Board of Directors Term Length Each Director shall be elected for five (5) years and may be re-elected for subsequent terms. #0034 Restriction on Interested Persons No interested person shall serve on the Board at any one time. An interested person is (a) any person being compensated by ESGVCH for services rendered to it within the previous twelve (12) months, whether as a full-time or part-time employee, independent contractor or otherwise, excluding any reasonable compensation paid to a Director as a member of the Board; and (b) any brother, sister, ancestor, descendant, spouse, brother-in-law, sister-in-law, mother-in-law or father-in-law of any such person. #0035 Board Meetings a Regular meetings of the Board shall be held at least once every quarter at a time and place to be designated by the President. b. Special meetings may be called at any time by the President or two Directors c. Notice. Notice of regular Board meetings shall be sent to the Directors at least 3 days prior to the meeting. Special meetings of the Board shall be held pursuant to notice of the time, place and purpose thereof either delivered personally or by telephone or sent by US mail or electronic mail to each Director not less than twenty four (24) hours prior to the meeting d. Quorum. A majority of the total number of Directors then in office shall constitute a quorum for the transaction of business Directors Each Director shall be elected for a 5 year term. The Board shall nominate one or more individuals for each position to be filled. (See Board of Directors Nomination Form in Appendix A) The Board shall elect Directors at its Regular Board Meeting or Special Board Meeting called for such purpose. If a Director's position is vacant due to a resignation or termination, a Director will be elected to fill that position for the remaining term. Directors shall hold office for the term for which he or she is elected or until such Director's resignation or termination. Proposed new language: Directors 1 Each Director shall be elected for a 5 -year term. Directors shall hold office for the term for which he or she is elected or until such Director's resignation or termination by the board. 2 The Board shall nominate one or more individuals for each position to be filled. (See Board of Directors Nomination Form in Appendix A) The Board shall elect Directors at its Regular Board Meeting or Special Board Meeting called for such purpose. 3 If a Director's position is vacant due to a resignation or termination, when a candidate becomes available to be considered for election to the board, the new candidate's term shall be a new five year term regardless of the years remaining on the former board member's term. (also see 0038). #0037 Officers, Duties and Election. The officers of the Board shall be the President, Vice-President(s), Secretary, and Treasurer. The Officers shall be elected by the Board at the Board meeting at least two (2) months prior to the end of the standard fiscal year. The Board may elect or appoint other officers as the Board may deem advisable. The Officers shall perform such duties as set forth in these By-laws or as determined by the Board. a President. The President shall be the Chief Executive Officer of ESGVCH. He or she shall preside at all meetings of the Board, The President shall perform such other duties and functions as shall be assigned to him or her by the Board. He or she shall be an ex - officio member of all standing committees. The President shall, unless other -wise provided by resolution of the Board, possess the power and authority to sign all certificates, contracts, instruments, papers and documents in the name of and on behalf of ESGVCH b Vice-President(s). The Board may elect one or more Vice-presidents. The First Vice - President shall perform the duties and exercise the powers of the President during the absence or unavailability of the President. Each of the vice-presidents shall oversee specific programs and responsibilities as determined by the Board. They shall have additional powers and perform additional duties as shall be assigned by these By-laws or by the Board. c Secretary. The Secretary shall keep the minutes of all meetings of the Board in books provided for that purposes, attend to the giving or serving of all notices of ESGVCH and sign with the President, in the name of ESGVCH, all contracts when authorized to do so. The Secretary shall have charge of such books and papers as the Board shall direct, all of which shall at all reasonable times be open to the examination of any Director, and shall in general perform all the duties incident to the office of Secretary, subject to the control of the Board. A copy of all the minutes shall be filed in the ESGVCH office. d Treasurer. The Treasurer shall be the Chief Financial Officer of ESGVCH, and shall have custody of all the funds and securities of ESGVCH, endorse on behalf of ESGVCH for collection checks, notes and other obligations, and shall deposit the same to the credit of the Corporation in such bank or banks or depositories as the Board may designate; sign all receipts and vouchers for payments, enter or cause to be entered regularly in the books of ESGVCH kept for that purpose full and accurate accounts of all moneys received and paid on account of ESGVCH, and whenever required by the Board shall render statements of such accounts; shall , at all reasonable times, exhibit the books and accounts to any Director; and shall perform all acts incident to the position of Treasurer, subject to the control of the Board. The Treasurer may select an authorized representative to perform one or more of the above duties #0038 Vacancies on the Board a. Absences. Should any Directors miss three (3) consecutive meetings without due cause, the President may declare the position vacated. b. Resignation and Termination. Should any Directors resign or become terminated from his or her membership on the Board, a successor may be elected by the majority of the Board (at a Board meeting) to fill the vacancy. When a candidate becomes available to be considered for election to the board, the new candidate's term shall be a new five-year term regardless of the years remaining on the former board member's term H0038.5 Annual Notice of Membership in the ESGVCH or of Directors At its annual meeting, after elections have been completed for the board and for the Executive Committee, the board shall cause the list of approved board members and officers to be posted on the ESGVCH website and reported to which ever constituent organizations as have so requested in writing. 90039.1 and of Officers and Directors All Officers or Directors of ESGVCH, if required to do so by the Board, shall furnish bonds to ESGVCH for the faithful performance of their duties, in such penalties and with such conditions and security as the Board shall require. ESGVCH shall assume the cost of providing any bond required hereunder. #0039.2 Compensation for Directors • Director • ESGVCH shall •- compensated • the performance • • for ESGVCH, but may, by resolution • the Board, •- reimbursed •,; expenses incurred • •- • ESGVCH. Article 4 Executive Director and Staff #0040 Executive Director The Board may employ an Executive Director who shall manage the daily affairs of ESGVCH and shall serve at the direction of the Board. The Executive Director shall serve as a non-voting ex -officio member of the Board. 0041 In the absence of employing an Executive Director, the board of directors may assume the duties under the leadership of the Board President. 0042 Staff 1 The Executive Director shall propose staff positions necessary, shall recruit, interview, and recommend for employment by the board, such candidates as are qualified and committed to the mission and values of ESGVCH. 2 In absence of an executive director, the board may employ staff as needed to conduct the business of the organization. Article 5: Committees #0050 Creation of Committees The Board will create a committee for each of the program areas of ESGVCH. The Board may create ad hoc committees as needed. The Board will annually designate the chair for the standing committees and other such committees as it may deem to create. Committee chairs must be Directors #0051 Executive Committee The executive officers of the board: the president, vice president, secretary, treasurer, along with the three chair persons of standing committees shall be considered "The Executive Committee." The Executive Committee shall also be considered and function as The Finance Committee and shall review and make recommendations to the whole board regarding financial reports and needs. 40052 Program Committees The main program areas for ESGVCH are: a Emergency Assistance Center (EAC), b Winter Shelter (WS) c Transitional Home (TH) d Health Services (HS) The responsibility of each committee is to oversee its program so it accomplishes the program objectives. #0053Nominating committee The board, under the leadership of the president shall annually designate a Nominating committee. Nominating committee membership cannot include anyone interested in holding an executive office for the new term. 90059 Other Committees The Board shall designate the responsibilities, duties and powers for each committee it creates, Each committee shall exist to carry out the purposes of ESGVCH #0061 Contracts, Conveyances, etc. All conveyances, contracts and instruments of transfer and assignment shall be specifically approved by the Board of Directors and shall be executed on behalf of ESGVCH by such officers or agents as may be specifically authorized by the Board #0062 Execution of Instruments All ESGVCH instruments and documents including, but not limited to checks drafts, bills of exchange, acceptances, notes or other obligations or orders for the payment of money shall be signed by the treasurer and one other authorized signature. 0063 Adjourned Meetings A majority of the Directors present, whether or not a quorum, may adjourn any meeting to another time and place. Notice of such adjourned meeting shall be given even though the time and place thereof are announced at the meeting at which the adjournment is taken #0064 Participation in Meeting by Telephone, Real Time Internet Video Chat, or Email By oral or written permission of a majority of the Board or of a committee designated by the Board may participate in a meeting by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this Section constitutes presence in person at the meeting. #0065 Construction and Definitions Unless the context otherwise requires, the general provisions, rules of construction and definitions contained in the General Provisions of the California Nonprofit Corporation Law and in the California Nonprofit Public Benefit Corporation Law shall govern the construction of these By-laws. #0066 Non -Profit Status ESGVCH may not engage in any activity of a commercial nature that would violate its status as a non-profit organization as defined in existing laws. ESGVCH may not engage in any partisan political activity. #0067 Conduct of Meetings Meetings shall be conducted according to Robert's Rules of Ord] #0068 Nondiscrimination ESGVCH shall not discriminate in employment, membership, or registered use against any person on the basis of race, color, gender, religion, creed, age, disability, or sexual preference. Article 7: Dissolution 0071 General In the event of dissolution of ESGVCH, all the assets, real and personal, shall be distributed to such charitable organization or organizations as are qualified as tax exempt under Section 5010 3 of the Internal Revenue Code or 1986, as amended, or corresponding provisions of any subsequent federal income tax laws as the Board shall determine. Any such assets not so disposed of, for whatever reason, shall be disposed of by order of a Court with appropriate jurisdiction to such organization or organizations as said Court shall determine, which are organized and operated exclusively for charitable purposes. 0072 No Inurement No part of the net earnings of assets of ESGVCH shall be distributed to or inure to the benefit of any Director of ESGVCH, contributor, or private person. Article 8: Fiscal Year 0081 The fiscal year of ESGVCH shall be from July I to June 30 of the following year. #0091 Amendments These By-laws may be altered or amended at any duly called meeting of the Board at which a quorum is present by a majority vote, provided that written notice naming the substance of the proposed amendment has been sent to each Director at least ten (10) days in advance of the date of the meeting, unless such notice is waived by all the Directors. #0092 Rules and Regulations The Board may adopt additional rules and regulations, general or specific, for the conduct of their meetings, and additional rules and regulations, general or specific for the conduct of the affairs of ESGVCH provided, however, no such additional rule or regulation shall be inconsistent with or in contravention of any provisions of the Articles of Incorporation or these By-laws. These By-laws and the associated policies shall be reviewed annually. Last reviewed and affirmed .July 1, 2011. #500 Conflict of Interest All Board of Director members, executive officers and employees of the ESGVCH shall: 1 Maintain the highest standards of conduct and integrity when conducting ESGVCH business 2 Have no outside interests that may be incompatible with or involve a conflict of interest with their duties, functions, and responsibilities for ESGVCH. 3 Abide by applicable federal, state, county, and municipal statures, regulations, and other ordinances concerning conflicts of interest. 4 Directors, officers and employees of ESGVCH are prohibited from the following associations unless they have fully disclosed such associations and have received specific approval from the board to continue such associations. a Serving in either paid or volunteer capacity as a director, partner, employee, or representative in any organization that does business with or receives funds from ESGVCH. b Being imme3diately related to any vendor, contractor, or consultant paid by ESGVCH funds. c Have any direct financial interests in any organization that does business with or receives grants from ESGVCH. Note: ownership of less than .001% of the stock of a corporation is not a direct financial interest. 5 Directors, officers, and employees of ESGVCH are prohibited from accepting, directly or indirectly, payments, loans, gifts, commissions, services, promised future benefits, gratuities, or other items of value from any organization or individual doing business with ESGVCH, except for beverages, food, social invitations, access to parking while visiting the organization or occasional shared local transportation for a meeting. Nothing shall be received unless it is of minimal value (not to exceed $25, and in keeping with good business ethics and that does not in any way obligate the recipient on behalf of ESGVCH with a vendor. 6 To ensure compliance with this policy, all directors, officers, and employees of ESGVCH shall submit and/or recertify their agreement with this policy on an annual basis. #502 Board of Director Member Limits of Authority 1 Individual Board of Director members are not authorized to take public stands on positions that are contrary to those of ESGVCH. This policy is not intended to prevent Board of Director members from taking personal positions on public issues, but only to prevent giving the appearance that the Board of Director member is speaking officially on behalf of ESGVCH. 2 Official positions or statements may only be put forth after full approval by the board at a regular business meeting. Such positions should be recorded as an appendix to the policy manual for future reference. Approved 12114111 #505 Endorsements of Materials or Products The Board of Director may not at any time give endorsements for any organizations, programs or products. The Board of Directors may approve for distribution and sale a variety of materials, programs, and products that are in harmony with the goals and purposes of ESGVCH. Approved 8/26/10 EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS FINANCIAL STATEMENTS JUNE 30, 2016 AND 2015 EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS CONTENTS Independent Auditor's Report Financial Statements Pages Statement of Financial Position 2 Statement of Activities 3 - 4 Statement of Functional Expenses 5 - 6 Statement of Cash Flows 7 Notes to Financial Statements 8-12 uchan & •+ auto C, 9176 socitaes ll hoii 09 81 6143 Fav 09 476 i� 8i> L,� irau�a��z �;�b°ad Sale B0, Oio�� AnAccountancti,Corporation ........ -------- -_-a-- INDEPENDENT AUDITOR'S REPORT To the Board of Directors East San Gabriel Valley Coalition for the Homeless We have audited the accompanying financial statements of East San Gabriel Valley Coalition for the Homeless, a nonprofit organization, which comprise the statement of financial position as of June 30, 2016 and 2015, and the related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East San Gabriel Valley Coalition for the Homeless as of June 30, 2016 and 2015 and the changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Suchan & Associates Ontario, California January 30, 2017 EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 AND 2015 ASSETS 2016 2015 CURRENT ASSETS Cash $ 200,043 $ 76,507 Grants receivable (Note 2) 13,251 43,832 Prepaid expenses 4,923 5,421 TOTAL CURRENT ASSETS 218,217 125,760 FIXED ASSETS, net (Notes 2, 3 and 5) 1,054 1,459 TOTAL ASSETS $ 219,271 $ 127,219 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accrued Expenses Capital Leases, current (Note 3 and 5) TOTAL CURRENT LIABILITIES NONCURRENT LIABILITIES Capital Leases, net of current (Notes 3 and 5) TOTAL LIABILITIES NET ASSETS Unrestricted Temporarily restricted TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS $ 3 709 712 712 $ 8,358 668 9,026 709 9,735 150,068 102,704 68,491 14„780 218,559 117,484 $ 219,271 $ 127,219 The accompanying Notes to Financial Statements are an integral part of this statement - 2 - EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2015) The accompanying Notes to Financial Statements are an integral part of this statement -3- Temporarily 2016 2015 Unrestricted restricted Total Total REVENUES Public contributions $ 140,079 $ 112,600 $ 252,679 $ 95,428 Government contracts and grants 332,748 - 332,748 374,457 Contributed supplies 188,607 - 188,607 162,053 Contributed services 11,632 - 11,632 15,312 Interest income 40 -- 40 33 Subtotal 673,106 112,600 785,706 647,283 Net assets released from restrictions Restrictions satisfied by use 34,056 (34,056) - Restrictions satisfied by time 24,833 (24,833) - - Total net assets released from restrictions 58„889 (58,889) TOTAL REVENUES 731,995 53,711 785,706 647,283 EXPENSES Program services 684,631 - 684,631 703,525 CHANGE IN NET ASSETS 47,364 53,711 101,075 (56,242) NET ASSETS, BEGINNING OF YEAR 102,704 14„780 117,484 173,726 NET ASSETS, END OF YEAR $ 150,068 $ 68,491 $ 218,559 $ 117,484 The accompanying Notes to Financial Statements are an integral part of this statement -3- EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 REVENUES Public contributions Government contracts and grants Contributed supplies Contributed services Interest income Subtotal Net assets released from restrictions Restrictions satisfied by use TOTAL REVENUES EXPENSES Program services CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR Temporarily Unrestricted restricted $ 59,928 374,457 162,053 15,312 33 611,783 $ 35,500 35,500 57,491 (57,491) 669,274 (21,991) $ 95,428 374,457 162,053 15,312 33 647,283 647,283 703,525 _ 703„525 (34,251) (21,991) (56,242) 136,955 36,771 173,726 $ 102,704 $ 14,780 $ 117,484 The accompanying Notes to Financial Statements are an integral part of this statement -4- EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2016 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2015) Equipment Rental Insurance Interest Licenses and Permits Maintenance and Repairs Motel Vouchers Office Outside Services Payroll Taxes Postage Professional Fees Rehab Center Rent Security Staff Expenses Storage Supplies Telephone Transportation Utilities Wages Subtotal Depreciation and Amortization TOTAL FUNCTIONAL EXPENSES The accompanying Notes to Financial Statements are an integral part of this statement -5- Total Program Total Program Emergency Transitional Winter Encore Services Services Assistance Housing Shelter Program 2016 2015 $ - $ - $ 15,007 $ $ 15,007 $ 14,037 9,398 822 10,402 1,499 22,121 22,960 292 - - - 292 530 184 _ 107 - 291 317 2,496 - 9,705 12,201 12,731 14,503 - 1,062 15,565 42,907 2,242 1,039 - 3,281 2,782 2,596 309 1,945 867 5,717 4,403 4,904 312 14,056 1,396 20,668 21,773 437 - 83 - 520 419 16,374 5,200 22,175 - 43,749 38,588 - - ry- 11,586 11,586 8,674 2,400 13,000 - - 15,400 26,400 - - 24,491 - 24,491 21,645 105 - _ 105 323 W - 3,557 - 3,557 3,007 188,619 75 5,500 - 194,194 179,298 3,323 - 275 - 3,598 3,706 1,961 - 106,879 - 108,840 111,385 - 1,380 - - 1,380 2,159 60,165 5,750 104,676 11,072 181,663 183,960 309,999 26,848 320,959 26,420 684,226 702,004 405 - - _. 405 1,521 $ 310,404 $ 26,848 $ 320,959 $ 26,420 $ 684,631 $ 703,525 The accompanying Notes to Financial Statements are an integral part of this statement -5- EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2015 Total Emergency Transitional Winter Encore Program Assistance Housing Shelter Program Services Equipment Rental $ - $ - $ 14,037 $ - $ 14,037 Insurance 4,929 1,056 16,075 900 22,960 Interest 530 - - 530 Licenses and Permits 203 - 114 - 317 Maintenance and Repairs 2,010 1,372 9,349 _ 12,731 Motel Vouchers 22,747 17,819 2,341 42,907 Office 1,770 - 1,012 _ 2,782 Outside Services 1,306 454 1,797 846 4,403 Payroll Taxes 4,796 1,216 13,928 1,833 21,773 Postage 306 _ 113 - 419 Professional Fees 13,913 5,918 18,757 38,588 Rehab Center - - 8,674 8,674 Rent 2,400 24,000 - 26,400 Security - - 21,645 21,645 Staff Expenses _ 323 - 323 Storage _ 3,007 _ 3,007 Supplies 177,710 230 1,358 - 179,298 Telephone 3,311 - 395 - 3,706 Transportation 3,045 818 107,522 - 111,385 Utilities _ 2,159 - - 2,159 Wages 53,161 ___L3,562 104,000 13,237 183,960 Subtotal 292,137 68,604 315,773 25,490 702,004 Depreciation and Amortization 689 -, 832 1,521 TOTAL FUNCTIONAL EXPENSES $ 292,826 $ 68,604 $ 316,605 $ 25,490 $ 703,525 The accompanying Notes to Financial Statements are an integral part of this statement M EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation (Increase) decrease in assets: Grants receivable Prepaid expenses Increase (decrease) in liabilities: Accrued expenses CASH PROVIDED (USED) FOR OPERATING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Payments on capital leases NET INCREASE (DECREASE) IN CASH CASH AT BEGINNING OF YEAR CASH AT END OF YEAR 2016 2015 $ 101,075 $ (56,242) 405 1,522 30,581 (20,616) 498 (740) 8,355 2,832 124,204 (73,244) (668) (512) 123,536 (73,756) 76,507 150,263 $ 200,043 $ 76,507 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for.- Income or:Income taxes $ $ Interest $ 292 $ The accompanying Notes to Financial Statements are an integral part of this statement -7- 530 EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS NOTES 1*0 FINANCIAL STATEMENTS Years Ended June 30, 2016 and 2015 1. +fir anizatiion and' Nature of Activities East San Gabriel Valley Coalition for the Homeless (ESGV Coalition for the Homeless) is a non-profit, tax-exempt organization based in the San Gabriel Valley area Of California, The primary purpose of the Organization is to serve the needs and expand the opportunities of the homeless and needy in the San Gabriel Valley area, ESGV Coalition for the Homeless was incorporated as a nonprofit organization under the laws of the state of California on September 7, 1994. The Organization Provides the following program services., Emergency Assistance Transitional Housing — Bridge Program Winter Shelter Encore Program The Organization is Supported primarily through grants and contributions, The Winter Shelter is operated between December and March and receives funding from the Los Angeles Homeless Services Authority and federal funding from the Emergency Food arld Shelter- Program. The Emergency Assistance Center is operated year-round and provides food, clothing, and hygiene products, among other services to at -risk and homeless persons, The transitional h0Using/1.)ddge program assists families in transitioning to permanent homes through life skill education, intense case ri'mriagenient, and financial counseling, The Encore Program Supports ESGV Coalition for the Homeless' clients to access additional and mental health treatment manifested by addictions through street outreach, case management, addiction treatment, and improved access to housing, 2. Summa i of Sinificant Acc!2MnjjDRpolicies The significant accounting policies followed by the Organization are summarized below. Basis of - The financial statements have been prepared on the accrual basis of accounting. Cash and Cash E Uivalenfiq - For the purposes of statement of cash flow, the Organization considers, all highly liquid debt instruments with an initial maturity of three months or less to be cash equivalent, Grants Receivable - The Organization considers its grants receivable to be fully collectible; - �ccord�irlgly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made, Fixed _Assets - Fixed assets are recorded at cost or donated fair market value. Depreciation is provided on a straight-line basis in amounts sufficient to amortize the cost of the assets over their estimated useful lives of five to seven years. The Organization capitalizes all expenditures for property, furniture and equipment in excess of $500. EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS NOTES TO FINANCIAL STATEMENTS Years Ended June 30, 2016 and 2015 2. Suanar of Si nificant Accoa�h�ti�� Policies continue Net Assets — The net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets — Net assets that are not subject to donor -imposed stipulations and that may be expendable for any purpose in performing the primary objectives of the Organization. Tera oraril r°estricted ret sset — Net assets subject to donor -imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time. As the restrictions are satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the accompanying financial statements as net assets released from restrictions. Su, ort and Revenue - The Organization receives its grants and contracts from various federal and State Agencies. Support received from these grants and contracts are recognized in the period earned. The Organization also receives donations from pUblic and private foundations,, fundraising events and other sources and recognizes these revenues when earned. Contributions — Non -.reciprocal contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions. When restrictions are satisfied in the sane accounting period as the receipt of the contribution, the Organization reports both the revenue and the related expense in the unrestricted net asset class. Contributed materials are recorded at their fair market value where an objective basis is available to measure their value. Such items are capitalized or charged to operations as appropriate. At year end there is an indeterminable amount of donated goods on hand for distribution. Contributed 'Services - During the years ended June 30, 2016 and 2015, the value of contributed services meeting the requirements for recognition in the financial statements was $11,632 and ;$15,312, respectively for contributed accounting services. Income Taxes - The Organization is exempt from federal and state income taxes under Section 501(c) (T) of the Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code, respectively. Accordingly, no provision for income taxes is included in the financial statements. In addition, the Organization has been determined by the Internal Revenue Service not to be a private foundation within the meaning of Section 509(a) of the Code. There are no unrecognized tax benefits identified or recorded as liabilities for the year ended June 30, 2016. EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS NOTES TO FINANCIAL STATEMENTS Years Ended June 30, 2016 and 2015 2. Summa of Significant Accounting Policies continued Income 'Takes continued - The Organization files form 990 in the U.S. federal jurisdiction and form 199 in the State of California. The Organization's federal and state returns are subject to possible examination by the taxing authorities until the expiration of the related statutes of limitations on those tax years. In general, the federal returns have a three year statute of limitations, and the state returns have a four year statute of limitations from the filing date. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date and revenues and expenses during the reporting period. Actual results could differ from those estimates. Functional Allocation of Expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated to the programs and supporting services benefited. 3. Fixed Assets Property and Equipment consist of the following: Furniture and office equipment, purchased Furniture and office equipment, donated Vehicles Total Furniture and Office Equipment Accumulated Depreciation Net Book Value Leased property consists of the following: Office equipment Accumulated amortization Net Value - leased property Net Fixed Assets 2016 2015 $ 2,342 $ 2,342 1,830 1,830 16,745 16„745 20,917 20,917 20,917 20,917 2,027 2,027 973 568 1,054 1,459 $ 1,054 $ 1,459 Depreciation expense for the years ended June 30, 2016 and 2015 was $- and $1,116, and amortization expense for capitalized leases totaled $405 and $405, respectively. Normal repair and maintenance costs are expensed as incurred. The depreciation policies followed by the Organization are described in Note 2. mulle EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS NOTES TO FINANCIAL STATEMENTS Years Ended June 30, 2016 and 2015 4. Restricted Dg osits Included in cash are temporarily restricted contributions which consist of the following restrictions: Use Restrictions Time Restrictions Total Restrictions 2016 2015 $ 1,824 $ 11,500 66,667 3,280 $ 68,491 $ 14,780 5. Capital Leases The Company leases certain office equipment under capital leases. At the expiration of the lease terms, the Company may exercise options to purchase the equipment. Obligations under capital leases: 2016 2015 Equipment loan payable at $80 per month including interest at 27%, secured by an officer copier. The lease expires May 2017 Current portion of long term debt Non-current portion of capital lease obligations Rental commitments for capital leases Years Ending June 30, 2017 Total Less imputed interest Present value of net minimum lease payments -11- $ 709 $ 1,377 709 668 $ - $ 709 720 720 11 $ 709 EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS NOTES TO FINANCIAL STATEMENTS Years Ended June 30, 2016 and 2015 6. Commitments and Contin encies The Organization leases its office facilities under month-to-month operating leases. Total rent expense related to these leases for the years ended June 30, 2016 and 2015 was $2,400 per year. The Organization leases two apartments for the transitional housing program. The rent expense related to these leases for the years ended June 30, 2016 and 2015 was $13,000 and $24,000, respectively. This portion of the transitional housing program was discontinued on January 1, 2016. 7. Subse uerit Events The Organization has evaluated events and transactions occurring subsequent to the statement of financial position date of June 30, 2016, for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through January 30, 2017, the date these financial statements were available to be issued. No such material events or transactions were noted to have occurred. -12- ARTICLES OF INCORPORATION OF EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS - qf 17502M N I.D E 3° Ph s 3 e f,', r e r y C lotgl 11 p 7 1994 A california Nonprofit Public Benefit Corpora tiqi, y14�� Secro[ary of Stale M The name of this corporation is — EAST SAXE GABRIEL VALLEY COALITION FOR THE HOX-ZLESS M This corporation is a nonprofit public berief it corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for public and charitable purposes. The public and charitable purposes of the corporation are to provide for -the needs of the homeless ill the San Gabriel. Valley and to edu.cate -the public concerning those needs. This corporation is arqanized exclusively for charitable, religioi..i,s, and educational purposes within the meaning of Section 501 (o) (3) of the Internal Revenue Code of 1986 or the corresponding provision of any future Unit -ed States internal revenue law. Notwithstanding any other prov.-ision of these Artioles, this corporation shall not, except to an insubstantial. degree, engage in any activities or exerci.se any powers that are n6t in furtherance of the purposes of this corporation, and the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt fro -m, federal.. income tax under Section 501(c) (3) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States internal. revenue law or (b) by a corporation, contributions to which are deductible under Section 170 Cc) (2) of the Internal Revenue Code of 1986 or the,, corresponding provision of any future United states internal revenue law. "M The name and address in California of the corporation's initial aqfant for service of process is: RONALD J. SACHS 2056 Lynbrook Hacienda Heights, California 91,745 I RM (a) No substantial part of the actjvjtQ. of this carpnration shall consist of lobbying or propaganda" or atlnerwj_S#.', ;Ittn' '111pting to influence legislation, except as provided in Section 5oj,(jj) off;" the Internal EMvenue Code of 1986 and this corporation shall not participate in or intervene in (including pub] tshing or distribut- ing statements) any political campaign on behalf of or in opposi- tion to any candidate for public office. (b) All corporate property is irrevocably dedicated to the purposes set fOrth in Article ;?, ainc:)v��i. No part of the net earninqS of this corporation shall inure to the benefit of ally or- its directors, trustans, officers, private shareholders or mainber or to individuals. (c) On the winding up and dissolution of this corporation, after paying or adequately providinq for the debts, obligations and liabilities of the corporation, the remaining assets of this corporation shall be distributed to such organizations organized and operated exclusively for charitable purposes which have established their tax-exempt status under Section 501 (c) (3) of the Internal Revenue Code of 1986, or the corresponding provision of any future United States iUernal revenue law and which have established their tax-exempt status under Section 237011 of the California Revenue and Taxation Code, or the corresponding section of any future California revenue and tax AOTI L_DY §�_CR_91ncorpora _ I am the person whose name is subscribed below. 1 aln_ the sole Incorporator of EAST SAN GABRIEL VALLEY COALITION FOR THE HOMELESS and have executed these Articles of Incorporation. The foregoing Articles of Incorpor pct and deed. Executed on 1994, at Hacienda Heights, California, I declare that the foregoing is t rile 'X, j S I APPLICATION CHECKLIST ORGANIZATION Santa Anita Famil Service Please complete an Application Form for each proposed program/project. If an item is not applicable, indicate "N/A" in the box. If you need assistance, or have questions, contact Michelle Bravo at 626 960-4011 ext 354. 1. X APPLICATION FORM 2, X BUDGET PROPOSAL (ATTACHMENT A) 3. X BOARD OF DIRECTORS AFFIDAVIT 4, X ORGANIZATION BY-LAWS 5. X CHARTER OF ARTICLES OF INCORPORATION 6, X IRS TAX EXEMPT STATEMENT 7, X MOST RECENT AUDITED FINANCIAL STATEMENT & X PAST AND PROJECTED ACCOMPLISHMENTS Application packages are due by 5 p.m., on Janua 11 2018, Applications must be submitted to: Baldwin Park Housing Division 14403 E. Pacific Avenue Baldwin Park, CA 91706 LATE APPLICATION'S WILL NOT BE ACCEPTED. APPLICATIONS THAT HAVE BEEN ALTERED FROM ITS ORGINAL FORMAT WILL ALSO NOT BE ACCEPTED. FUNDING APPLICATION BALDWIN PARK COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2018-2019 PLEASE TYPE OR PRINT I. AGENCY INFORMATION Agency Name: mmm Santa Anita„Fa��Service m Agency Address: 605 S..-MvrtleAvem. Monrovia CA. 91016 Address ............... ......_ Street City � � ip Code Agency DUNS#: 95-181-6014 Administrator: George Nalbach Ph.D, Title: Executimve Director Administrator Telephone: 626-359--9358 Fax: 626-358-7647 Administrator Emaileg orgenm santaanitafamilyservice.org wwIT� Ave. Monrovia CA. 9m1016 Project Site Address 605 S. Myrtle .._ ,,�„m.......... ..... _____—_ Number Street City Zip Code Project Manager: Jennifer George Title:Senior Servicesmctor Project Manager's Telephone: 626-359-9358 Fax: 626-303-5043 Project Manager's Email: j eg orge a@santagnitafamil service�org Describe Agency's overall function or purpose. Include history and experience in providing this service. (If more room is needed, please attach an additional sheet). Santa Anita Familv Service seeks to foster the well beina of San Gabriel residents bv creating a healthier families and communities through_professional leadership and the_provisron of quality education mental health and social servicerp ograms, Santa Anita Family Service has provided these services since 1951 and Senior Services since, 1975, Has the Agency previously received funding from the City of Baldwin Park? X Yes (if yes, number of years ) „ No -4- PROJECT PROPOSAL AND DESCRIPTION Grant Amount Requested 500 Scope of Services — Please briefly describe your proposed Project/Program and the objectives. See attached Beneficiaries — Please briefly describe the clientele that will benefit from your services (i.e. homeless youth, the elderly, disabled, handicapped, etc.) ago —. income _ i y.. — Cur tc�r„ of o �ulatjonmmis low, minorrt eldmers, However we serve any aadult, and disabled/dependent older a dent adults acie 18+. The senior and mmmm��u ,www_, n_ ndent adult care ague etfnent t roaram offers services that enable our clients toemain safeywin their homes and within the communjty wln addition, ) �m .. Ur services foster iin gfa mclence and apt Describe any special characteristics of your client population. IWnw, addition to the characteristics,mentioned above,,_our clients ma b frail, hggjn j o�ar�d, ha_ye mm ghEpt is ;ah sisal or mental illness.. Increase in Funding Request - If your agency has been previously funded through Baldwin Park's CDBG program, and there is an increase in the amount of funding requested, please explain the purpose for the increase (i.e., increase in type of services or beneficiaries). CLIENT INTAKE INFORMATION The U.S. Department of housing and urban Development (HUD) requires that agencies obtain intake data from each client/family served. Application intake must be taken on all clients assisted with CDBG Funds. Supporting documentation is also required. Please see page 8 regarding Presumed Benefits. Does your agency obtain this information? x Yes No If yes, does your intake sheet and supporting documentation obtain the following: Name Yes x No 2. Address Yes x No -5. 3. City in which client last resided. Yes x No 4. Number of family members. Yes x No, 5. Total family (household) income. Yes x No 6. Ethnicity Yes x No 7. Female head of household Yes x _ No Pursuant to federal requirements, if your agency is unable or unwilling to obtain the above information from its clientele, please do not submit an application for funding. However, if your agency is willing to accept the responsibility, obtain this information and retain supporting documentation for the required five years, the Executive Director must certify to that effect below: George Nalbach9 Ph.D. Executive mDirector Print Na Title of Officer s Signat& e Date ACCOMPLISHMENT DATA Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to moderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. The reporting accomplishment data to be used by our agency will be: PLEASE CIRCLE ONLY ONE OF THE FOLLOWING: L( .. Youths Households 1.�._ = Please provide the actual number of your agency's total clients assisted to date and the roected data for the upcoming fiscal year. Please complete this table regardless if you receive CDBG funding for this current year BALDWIN PARK RESIDENTS NON-BALDWIN PARK RESIDENTS Presumed Benefit Actual 07/1/17 TO Current 12 :11 Projected .. ......... 07/01 /18 TO 06/30/19 ....... ..... 225 3500 Income eligibility is not required for services provided to "Presumed Benefit" clientele as defined by HUD. The following groups are considered presumed benefit client: a Abused children Battered spouses Elderly persons Illiterate persons Persons with acquired Immune Deficiency Syndrome (AIDS). Adults meeting Bureau of Census definition of severally disable persons Homeless persons Migrant farm workers Which further describes the activity you are proposing? A) x The project will benefit a presumed benefit* clientele as defined by HUD. B) The client intake information will provide evidence that at least 51 percent of the clientele are persons whose household income does not exceed the CDBG eligible income limit. C) .. The projects limits services to only CDBG eligible -income persons. BUDGET In order to remain in compliance with HUD's regulations, your agency must be able to separate and identify expenditures of CDBG funds from other source of funding. Please complete the following tables with your agency's current budget (including CDBG funds, if currently receiving funding) and the proposed budget, identifying how the funds will be utilized. 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If there are changes in the Board membership after the request is submitted, the City of Baldwin Park must be notified in writing. Name Title Term Expires 1.Pamela Fitzpatrick ..... . . . ......... President 2. Cheryl Rose . . ........... Vice President 3. Mary H. Saenz, CPA Treasurer ..... . .... 4.Barbara Cavalier Immediate Past President/Board Member 5. Jay Coleman ..... . . ..... Board Member . ..... 6. Athena Madison Board Member 7. Cierina Marks Board Member 8. Richard Meaglia Board Member . .... . . .... 9. Gabriel Monares Board Member 6koann Sanderson, Board Member 11. Timothy K. Scanlan Board Director 12. Barbara Veenstra Board Member . ......... . 13. Bryan Zaragoza Board Member . ........... 14. Peter Hoffman Board member 15. Robert Proctor Board Member 16. Linda Proctor Board Member Name of Executive Director Georae Nalbach, Ph.D. CERTIFICATION All organizations that submit this application must provide accurate data concerning the number and income level of clients. Estimates are unacceptable except for start-up agencies. This stipulation shall also apply to all organizations, which are subsequently awarded funding. Any organization that falsifies information, either accidentally or intentionally shall be required to reimburse the City for any funds paid out and shall not be permitted to apply for funding in the future. AGENCY CERTICATION As the Executive Director, or duly authorized representative of Santa Anita Family Service, I certify that the applicant is fully capable of fulfilling its obligation under this proposal. This application is submitted to provide the services for the City of Baldwin Park as stated in this proposal. If this proposal is approved and funded, it is agreed that relevant federal, state and local regulations and other assurances, as required by the City of Baldwin Park, will be adhered to. I certify and declare under penalty of perjury that the information provided in this application is true and correct. Jennifer Geo /Darla I rez-Pusnian Ph.D. Services Pro r_g am Director Print Name Title of Officer a Signature Phone Number Email Address Date Has the agency received notification of findings or concerns in the past 5 years? No If Yes, Please explain Please provide corrective actions taken: 000 go I a gl Santa Anita Family Service Community Service Since 1951 603 South Myrtle Avenue Monrovia, California 91016 (626) 358-1185 Fax(626)303-5043 Santa Anita Family Service Senior Center Scope of Services Santa Anita Family Service Senior Center is primarily a resource, referral, and care management agency. The premise of the senior services program is to enable frail seniors and functionally impaired adults obtain services in order to promote and maintain the optimal level of functioning and to remain living independently in their homes, therefore, increasing the quality of their lives. Student interns for the Care Management program would assist care managers on intake screening, home visits and assessments, care plans, care monitoring, and information and referrals. We have a total of five care managers. One of our care managers has their MSW, four of our care mangers have their BS and two of our care managers have over 10 years of experience in working with the geriatric population and their care management needs. There are three main components to our Senior Services program: 1. Care Management 2. Home Based Care SERVICE DESCRIPTIONS ELIGIBILITY FOR CARE MANAGEMENT SERVICES® Care Management services are available for adults age 60+, for disabled adults age 18+, and for the families and caregivers of either of these groups. The clients or their caregivers must reside in Supervisorial Districts I or 5. If they do not reside in any of these cities they will be referred to another agency that provides care management services in their area. COMPREIIENSIVE ASSESSMENT SCREEN: Assists clients with short-term problems and assesses whether the individual should be referred to care management for further assistance. Examples of short-term issues would be assistance with completing entitlement forms, applying for Medicare or Social Security, property tax postponements, translation of documents and mail, etc. CARE MANAGEMENT: Provides advocacy and assistance to clients who are unable to manage a situation or problem due to physical and/or mental difficulties. The process starts with a comprehensive in-home assessment by a care manager and if appropriate, may include the client's family, caregivers, or support network. A written care plan is later developed with the cooperation and collaboration of the client. Implementation of the plan will involve referrals, service arrangements, case conferences with agencies and individuals involved, and monitoring of services arranged to ensure that the client's needs are being met. The goal of care management is to empower clients to remain as autonomous and independent as possible and to assist them only when needed. If a client's needs change and more services are required there will be a shorter reassessment to determine a new care plan. Santa Anita Family Service Community Service Since 1951 603 South Myrtle Avenue Monrovia, California 91016 (626) 358-1185 Fax (626) 303-5043 ELIGIBILITY FOR HOME-BASED CARE SERVICES: Home -Based Care services are available for clients age 60+ that reside in the San Gabriel Valley, between and including the cities of Pasadena and Pomona. If a client resides outside our service area they will be referred to another agency that provides these same services in their area. HOME-BASED CARE SERVICES: Light housekeeping, Personal Care and our Registry worker referral service are the three core components of the Home -Based Care program, Light Housekeeping and Personal Care provide a client with a worker every other week (4 hours per visit) for a maximum of 12 weeks of service. A staff person conducts a comprehensive assessment to determine what program service will best meet the needs of the client. Clients will be assigned a worker based upon a waiting list and availability of workers. Our staff may also assist the client to apply for In -Home Supportive Services if needed or possibly refer them to our Care Management program. The Registry is a referral service available to our clients who either have In -Home Supportive Service hours or who have the ability to pay a worker to assist them in their homes. The range of services provided by these workers includes but is not limited to the following: housekeeping, personal care, transportation, shopping and errands, respite care, etc. There are also a limited number of workers who are able to live-in the client's home if necessary. When a client calls to request Registry assistance a thorough phone assessment is initially performed by a staff person. The assessment will focus on the client's current needs, but will also focus on their strengths and abilities. Our staff will help identify a worker that has the qualifications and the work schedule availability that best meets the clients' needs. The Santa Anita Fa Service Registry is a referral service and the client is the worker's employer. The client and the worker determine the number of hours to be worked and negotiate the rate of pay. (I SS hours and pay scale are determined by the social workers of the California Dept. of In -Home Supportive Services) Our staff is able to provide assistance with interviews, legal and employment obligations, and a list of other workers should the need arise. All Home -Based Care workers have undergone a Dept. of Justice fingerprint background check, they have provided proof of their ability to work legally, two previous job references have been verified, and they have completed an interview with an experienced staff person, IFLIGIBILITI FOR CARE GIVER SUPPORT SERVICES: Care Giver support services are available for any caregiver of older adults and relative caregivers of minors that r - r - briel Valley, between and including the cities of Pasadena and Pomona. If a client resides outside *ur service area they will be referred to another agency that provides these same services in their area. CARE GIVER SUPPORT SERVICES: Community Education, Caregiver Training, Support Groups, and respite are the main components of the Care Giver Support services. Community Education provides educational presentations to groups of caregivers (and potential caregivers, family and friends of caregivers) about available services. Includes presentation scheduling initiated by the agency for the purpose of identifying potential caregivers and encouraging their use of the existing services and benefits. Excepted outcomes should include generating a feeling of trust and comfort, willingness 000 ,12111,91 Santa Anita Family Service Community Service Since 1951 603 South Myrtle Avenue Monrovia, California 91016 (626)358-1185 Fax (626) 3035043 to seek additional information on the services offered to caregivers by the Area Agency on Aging provider network and encouraging caregivers to seek information and services. Caregiver Training offers workshops and conferences that provide family caregivers with the tools to increase their self-care and their ability and confidence to handle difficult situations, emotions and decisions. These are conducted off-site retreats providing opportunities for caregivers for both temporary relief from their care giving responsibilities as well as providing training, sharing and mutual support in a group setting. Support Groups of three to twelve caregivers led by a competent facilitator, having the purpose of providing the caregivers with a forum to exchange "histories", information, encouragement, hope, and support. Respite provides assistance in obtaining respite care, to permit family caregivers to attend training or support group meetings network. TELEPHONE REASSURANCE: Volunteers make daily phone calls to clients who are either home bound, isolated, or who have limited social support. The goal is to provide socialization and reassurance and to have a safety net in case of emergency. TAXI VOUCHERS: Taxi vouchers, bus tokens, and bus passes are available the first Thursday of every month. The vouchers, tokens, and passes provide local transportation for seniors to and from doctor's appointments, grocery store, etc. TAX FILING ASSISTANCE: Once a year AARP provides volunteers to be stationed at the senior center for the purpose of assisting seniors file taxes. Santa Anita Family Service Senior Center 603 S. Myrtle Ave. Monrovia, CA 91016 (626) 358-1185 Azusa Senior Center 740 Dalton Ave. Azusa, CA 91702 (626) 812-5179 0 0 0 11118Oh Santa Anita Family Service Community Service Since 1951 603 South Myrtle Avenue Monrovia, California 91016 (626) 358-1185 Fax (626) 303-5043) San Gabriel Senior Center 324 S. Mission Dr, San Gabriel, CA 91775 (626) 308-2822 Baldwin Park Community Center 4100 Baldwin Park Blvd, Baldwin Park, CA 91706 (626) 966-1755 .All Santa finita Family Service staff strives to provide services that improve the quality of life for clients while maintaining their dignity and worth, Our mission is to help ensure that client's remain safely in their homes and communities with appropriate assistance to prevent premature or unnecessary placement. Santa Anita Family Service Board of Directors Roster 2017-2018 Executive Committee President Vice President Treasurer Secretary Immediate Past President Pamela Fitzpatrick Cheryl Rose Mary Saenz, CPA Position Vacant Barbara Cavalier, PH.D. Ethnic Composition of Board of Directors: Ten (10) Caucasians and Three (3) Latinos Name .Title Year Address &Phone Number Pamela Fitzpatrick 2015 The Dolimakers' Kattywompus President 412 S. Myrtle Avenue Monrovia, CA 91016 Bus: (626) 357-1091 Cell: (626) 862-4297 Email _pnFi z)& mail com Cheryl Rose 2014 Retired Vice President Cell: (661) 917-2654 Email cher, 53.)nigo..com Mary H. Saenz, CPA 2016 San Gabriel Basin Water Quality Authority Treasurer 1720 W. Cameron Ave. Suite 100 West Covina, CA 91070 Bus: (626) 338-5555 Email: niaA dl col Barbara Cavalier, Ph.D. 2009 Cavalier & Associates Immediate Past President 518 Ranchito Road Monrovia, CA 91016 Cell: (626) 327-0934 Email bcavali L@) art�rGink.tiet 000 11111110 Santa Anita Family Service Emeritus Members Peter Hoffman Sierra Auto Cars Emeritus 1450 S. Shamrock Ave. Monrovia, CA 91016 Bus" (626) 359-8291 Dlb ffmao) si rN ac w s,com Robert Proctor Retired Emeritus Cell: (626) 252-7022 I�.`oc. @at.aiet Linda Proctor Retired City of Monrovia Emeritus Email: Richard Singer Retired City of Monrovia Emeritus Email:tud ITiam d)inter t i ns,ng, George Nalbach, Ph. D. Bus: (626) 359-9358 ext. 5780 Interim Ex. Director Email: nor rw�santaInita�arnAl sesri, Bu Deborah Grant s: (626) 359-9358 ext. 5782 Chief Financial Officer Email: jggnt) an ;a nitaf m NI ervice.or . see 0 Ofifis Santa Anita Family Service Name &Title Year Address & Phone Number Jay Coleman 2009 Retired Citizens Business Bank Director Cell: (951) 312-9613 Email: jcole123@aol.com Athena Madison 2015 Student Director Cell: (626) 497-4916 Email: ai h n N clisorlcc�yLll-Lil,cor'J Cierina Marks 2014 California Institute of Technology Director Cell: (909) 641-9706 Bus: (626) 395-6310 Email:ierimu is mark,5,_ ag il. om Richard Meaglia 2016 Attorney at Law Director 688 W. Foothill Blvd. Monrovia, CA 91016 Bus: (626) 303-1920 Fax: (626) 357-0053 Bus: (626) 932-0100 x115 Email: JSanderson@hsrdscpas.com Timothy K. Scanlan Email: mteac Gabriel Monares 2016 Monares Group Director 100 S. Vincent Ave. Suite 403 Barbara Veenstra West Covina, CA 91790 Director Cell: (626) 272-0112 Bryan Zaragoza Bus: (626) 919-8000 Director Email: gabriel@monaresgroup.com Joann Sanderson, CPA 2014 HSRDS Director 1037 Park View Drive Covina, CA 91724 Bus: (626) 932-0100 x115 Email: JSanderson@hsrdscpas.com Timothy K. Scanlan 1988 Retired Director Cell: (626) 536-6670 Email: tl ranl n c r thlin .net. Barbara Veenstra Retired Citizens Business Bank Director Email: jandbv en tr aNio .com, Bryan Zaragoza 2015 Koreatown Youth & Community Center Director 3737 W. 6th Street #300 Los Angeles, CA 90020 Bus: (213) 365-7400 Cell: (626) 376-1381 Email:aryf°�.ragwg9"milITam Lor, rec, o.n, ex(::ept a s o t hL e r w , r (D v i d e d b s t a. t l.s. tw. e o r J ts !-�r.ticles of Iri.c(,-:)rpc-)i.:at-ion, M S111il"A A-14ITA FAMILY SERVICE a California nonprofit Public Benefit Corporation ARTICLE I. offices Section 1 - PRINCIPAL OFFICE, The corporation's principal office shall be fixed and located at such place as the Board of Directors (hereinafter the "Board") shall determine® The Board is granted full power and authority to change said principal office -from one location to another® ARTICLE II. Membershi Section 1. MEMBERS. The corporation shall have no members. ARTICLE III. Directors Section 1 - POWERS - Subject to the limitations of the Articles and these Bylaws, the activities and affairs of the corporation shall be conducted and all corporate powers shall C 4 direction of the Board® The be exercised by or under the Board may delegate the management of the activities of the corporation to any person or persons, a management company or committees however composed, provided that the activities and affairs of the corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the Board® i4ithout prejudice to such general powers, but subject to the same lirlitations, it is hereby expressly declared that the Board shall have the following powers in addition to the other powers enumerated in these Bylaws® a) To select and remove all of the other officers, agents and employees of the corporation, prescribe powers and duties for them as may not be inconsistent with law, the Articles or these Bylaws, fix their compensation and require from them security for faithful service. ID) To conduct, manage and control the affairs and activities of the corporation and to make such rules and reg -ions not inconsistent with law, the Articles Jr these Bylaws , E; s they y deem best® ma c To adopt, make and use a corporate seal and to alter the form of such seal from time to time as they may deem best. d) To borcorw money and incur indebtedness for the purposes of the corporation, and to cause to be executed and delivered therefore, in the corporate narma, promissory notes, bonds, debentures, deeds of trust, mortgages, pledger, hypothecations or other evidences of debt and securities therefore. e) To carry on a business at a profit and apply any profit that results frow the business activity to any activity in which the corporation may lawfully engage. Section 2. COMPOSITION. The management: of this Corporation shall be vested in a Board of Directors of a minimum of ten and a maximum of twenty® five members. The Board shall take final action after consultation viith the staff on all major questions of policy and general plans. Section 3. TERM OF OFFICE. Directors shall be elected at each annual meeting of the Board. Each Director shall serve until the next annual meeting of the Board and until a successor has been elected and qualified. Directors may be reelected but no Director may serve more than six consecutive years. Persons serving less than six months of an unexpired term may be elected to six consecutive one year terms. Section 4. VACANCIES. Subject to the provisions of Section 5226 of the California Nonprofit Public Benefit Corporation Law any director may resign effective upon giving written notice to the Chairman of the Board, the President, the Secretary or the Board, unless the notice specifies a later time for the effectiveness of such resignation, If the resignation is effective at a future time, a successor may be selected before such time to take office when the resignation becomes effective. Vacancies in the Board shall be filled in the same manner as the director(s) whose office is vacant was selected, provided that vacancies to be filled by election by the directors may be filled by a majority of the remaining directors, although less than a quorum, or by a sole remaining director. Each direrztor so selected shall hold office until the expiration of the term of the replaced director and until a successor has been selected and qualified. A vacancy or vacancies in the Board shall be deemed to exist in case of the death, resignation or removal of any director, or if the author- ized number of directors should be increased. The Board may declare vacant the office of a director who has been declared of unsound mind by a final order of court, or convicted of a felony, or been found by Ez final order or judgment of any court to have breached any duty arising under A-.-ticle 3 of the California Nonprofit Public Benefit Cor- puraLlcrn No reduction of the authorized number of directors shall have the effect of reunovinc-; any director prior to the expiration of the director's term of office. 0 106 I Section 5. PLACE OF MEETING. t[eetings of the Board shall be held at any place within Or without the State of California which has been designated ft-om time to time by the Board. In the absence of such n meetings shall be held at the principal office of designation, regul ear -nee the corporation. Section 6. AMIUAL 1EETINGS, The Board shall hold an annual meeting for the purpose of organization, selection of directors and officers, Cn- and the transaction of other business® Annual meetings Of the Board shall be held in the month of March and the Board shall set the date of said annual meeting® The presence of five (5) directors at such meeting shall constitute a quorun® Section 7® REGULAR MEETINGS. The Board of Directors shall have at least ten monthly meetings annually at such time and place as it shall determine® Five directors shall constitute a quorum. The President shall, by virtue of his offLce be chairman of the meetings of the Board of Directors, and in his abSencE!, the next ranking officer present shall preside. Section 8® SPECIAL HEETINGS. Special meetings of the Board for any purpose or.pui' -poses may be called at any time- upon written request to the President by four directors® Special meetings of the Board shall be held upon (15) days notice by first class mail or forth eight (48) hours notice given personally or by telephone, telegraph, telex or other similar means of coa]-­unilcatio_-> Any such notice shall be addressed or delivered to each director at such director's address as it is shown upon the records of the corporation or as may have been given to the corporation by the director for purposes of notice or, if such address is not shovers on such records or is not ascertainable, at the place wherE the meetings of the directors are regularly held® -2 Notice by mail shall be deemed to have been given at the time written notice is deposited in the United States mail with postage fully prepaid there- on. Any other written notice shall be deemed to have been given at the time it is personally delivered to the recipient or is delivered to a common carrier for transmission;) or actually transmitted by the person the notice by giving I electronic means, to the recipient. Oral notice shall be deemed to have been given at the time it is communicated, in person or by telephone or wireless, to the recipient or to a person at the office of the recipient who the person giving the notice has reason to believe will promptly communicate it to the receiver® Section 9. QUORUM. Five directors shall constitute a quorum of the Board for the transaction of business, except to adjourn as provided in Section 12 of this Article IIT® Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board, unless a 'greater number be required by law or by the Articles, except as provided in the next sentence. A. meetir.Fay continue to transact busi- at al:' ick a quortr,,i is initially present n - ness-bli;,)-i't,iLEIistanrllLv--tte - -if -an-y -c-tion-tal."en.-is approved by at Least a majority of the required quorum for such meeting. 9 �L Section 10® P-ARTICIPATION IN ITIETINGS BY CONFERENCE TELEPHOUE. Members of the Board may participate in a meeting through use of conference telephone or similar communication equipment, providing that all members participating in .5uch meeting can hear one another® Section 11® WAIVER OF NOTICE® Notice of a meeting need not be given to any director who signs a waiver of notice or written consent to holding the meeLirig or an approval of the minutes thereof, whether before or after the meeting, or who attends the meeting without protesting prior thereto or at its commencement the lack of notice to such director, & I I such waivers, consents and approvals shall be filed, with the corporate records or made a part of the minutes of the meetings. Section 12, ADJOURMENT. A majority of the directors present, whether or not a quoru:m is present, may adjourn any directors` meeting to a another time and place. Notice of the time and place of holding an adjourned meeting need not be given to absent directors if the time and place be fiKed at the meeting adjourned, - xcept as provided in the next sentence. If the meeting is adjourned for more than forty eight: (48) hours, notice of any adjournment to another time or place shall be given prior to the time of the adjourned meeting to the directors who were not present at the time of the adjournment® Section 13, ACTION WITHOUT MEETING. Any action required or per- mitted to be taken by the Board may be taken without a meeting if all members of the Board shall individually or collectively consent in writing to such action. Such consent or consents shall have the same effect as a unanimous vote of the Board and shall be filed with the minutes of the proceedings of the Board. Section 14, RIGHTS OF INSPECTION. Every director shall have the absolute right, at any reasonable time, to inspect and copy all books, records and documents of every kind and to inspect the physical properties of the cor- poration of whicli such person is a director, Section 15® C01MITTEES, The Board may appoint one or more commit- tees, each consisting of two or more directors, and delegate to such committees any of the authority of the Board except with respect to: a) The approval of any action for which the California Nonprofit Public Benefit Corporation Law also requires approval of the members or approval of a majority of all members. b) The filling of vacancies an the Board or on any committee; 0 c) The fixing of compensation of the directors for serving on the Board or on any cotmuittee, d) The amendment or repeal or Bylaws or the adoption of na,,-i Bylaws; e) The amendment or repeal of any ii-esoDLtion of Boa��t "qfii"h b"I" its express terms is not so amendable or repealable; f) The appointment of other committees of the Board or the members 4. 19-2, R g) The expenditure of corporate funds to support a nominee for director after there are more people nominated for director than can be elected; or h) The approval of any self-dealing transaction, as such trans- actions are defined in Section 5233 (a) or the California Monprofit Public Benefit Corporation Law. Any such committee must be created, and the members thereof appointed, by resolution adopted by a majority of the authorized number of directors then in office, provided a quorum is present, and any such committee way be designated an Executive Committee or by such other name as the Board shall specify. The Board may appoint in the same manner alternate members of any counnittee who may replace any absent member at any meeting of the committee. The Board shall have the power to prescribe the manner in which proceedings of any such comoittee shall be conducted® In the absence of any such prescription, such comaittee shall have the power to prescribe the manner in which its proceedings shall be conducted® Unless the Board or such Committee shall otherwise provide the regular and special meetings and other actions of any such committee shall be governed by the provisions of this Article III applicable to meetings and actions of the Board. Each committee shall report at least annually to the Board of Directors. Each committee shall keep, at the office of the corpora- tion, minutes of each of its meetings which minutes shall be retained for five years. Except as specifically provided by those Bylaws, each committee shall act only in accordance with the instructions of the Board of Directors. Each committee, the Executive Director, and members of the Staff, shall work in full cooperation and in the event of any failure to so cooperate the per- son aggrieved may bring such failure to the attention of the Board of Directors A, E11ECUTIVE CONIJITTEE 1, The Executive Committee shall consist of the President, First Vice -President, Second Vice -President, Treasurer, Secretary, and may include two other Members of the Board of Directors as the President way appoint. 2® The Prc2sident shall be Chairman of the Executive Committee, 3, The Executive Committee shall have full power to act between Board meetings can matters of policy and administration. 4. The Executive Committee shall report their action to the Board of Directors, and the Board of Directors shall have the right to rescind action taken by the Executive Couimittee. B, OTHIER CCC„ 41Y.1'EES ,Y All pGwar.to appaint, additional committees from times to time and to set forth their duties, a a Section. 16w FEES AND CONDENSATION, Directors and meWbers of committees may receive such compensation, if any, for their services, and such reiwburseai.Lienl: for expenses, as way be fixed or determined by the Board. ART 1CLF IV. Of f icers Section. 1. OFFICERS® The officers of the corporation shall be a President, a First Vice -President, a Second Vice -President, a Treasurer, and a Secretary® The corporation may alsohave, at the discretion of the Board of Directors, one or more assistant treasurers and one or more assistant secretaries, who shall have such authority and perform such duties as the Board of Directors may from time to time determine and such other officers as may be elected or appointed in accordance with the provisions of Section 3 of this Article IV® Section 2. ELECTION, The officers of the corporation except such officers as way be elected or appointed in accordance with the pro- visjuns of Section., -t 3 or Section 5 of this Article IV, shall be chosen annually by, and shall serve at the pleasure of, the Board and shall hold their respective offices until their resignation, removal, or other dis- qualification from service, or until their respective successors shall be elected. Section 3. SUBORDIIIILATE OFFICERS, The Board may elect and empower the President to +,,qppoint, such other officers as the business of the corpor- ation may require, each of whoul shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board may from time to time determine, Section 4, RENOVAL AND RESIGNATION. Any officer may be removed, either with or G.rit:hout cause, by the Board at any time or, except in the case of an officer chooen by the Board, by any officer upon whom such power or removal inay be COLLferred by the Board, Any such removal shall be without prejudice to the 1.-ights, if any, of the officer under any contract of &1,ploy- ment of the offic;tr® Any officer may i C, resign at any time by giving written notice to the corporation, but without prejudice to the rights, if any, of the corporation under any contract: to which the officer is a party® Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein and, unless otherwise specified therein, the acceptance of such resirrnaLian shall not be necessary to Make it effective® 4� Section 5. VACAITC IE S ® A vacancy in an -y office because of death, resignation, removal, disqualification or any other cause shall be filled in 0 the manner prescribed in these Bylaws for regular election or appointment to such office, provtded that sucli vacancies shall be filled as they occur and not on an annual 'oasis, I - Preslrle_fft Ili. -ad. d i t a _t`6 tha d u tl: i (a s PE" I DENT I ection 6. 1 -3 — , The prescribed by Lhle�e Byla--,is, s1hall have the usulai duties incidear- to his office a, -1 -d shall be aia a-olLficio to r 7cllbeof aom ll cmit' nLac-'s. 0 M Section 7. VICE PRESIDENT. In the event of the absence or illness of the President, the First Vice -President shall perform the duties of the President, and in the event of the absence or illness of both the President andthe First Vice -President, the Second Vice -President shall perform the duties of the President® The Vice -President shall, so far as possible, cooperate w&L and assist the President. Section 8. TREASURER. The Treasurer, in addition to the other duties prescribed by these Bylaws, shall review tka accounting of all funds e:cpecLed by the corporation and have the usual power incident to his office. Section 9® SEGRETARY. The Secretary shall keep the minutes of the meetings of the Board of Directors and of the coautmittees as sat forth in Article III, Section 15, The Secretary shall, so far as Possible, take charge of such correspondence as the President may refer to him® ARTICLE V. Staff. Section I. The Board of Directors shall select an Executive Director to serve at the pleasure of the Board of Directors and at such compensstjoh as the Board of Directors shall fix. Section 2® The Executive Director shall have general responsi- bility for all activities of the corporation, and may attend all meetings of all committees, but shall have no Nrote thereon, Section 3. The Executive Director may present to the Board of Directors or any of its committees, any matter affecting the policies or activities of the corporation. ARTICLE VI® Other Provisions Section 1. CONSTRUCTION AND DEFINITIONS. Unless the context other -wise requires, the general provisions, rules of construction and definitions contained in the General Provisions of the California Nonprofit Corporation Lav and in the California Nonprofit Public Benefit Corporation Law shall govern the construction of these Bylaws, Section 2. AILENDI-IENTS. These Bylaws m -ay be a -mended or repealed by the approval of a majority of a quorum of the Board. ARTICLE VII, Corporate Seal The Boa�cd of Directors shall adopt a suitable corporate seal containing the naiiie of the corporation, the date of its incorporation, and the word "California". ARTICLE VIII. Fiscal Year The fis,_--,al year of this corporation shall begin on the first day of ,duly in each year. Revised March 28,, 1930 W 13m ti C%q 0 m. H11 NH j tv, 71 Z, e . ............. . . ........ . C%q 0 m. H11 NH AIARCTI FONG EU, Secretary of State of the State civ y l a"ji, [cx ' aereby certify: cL1sc1)t was 1.)repared by ai-cI in Chis C tJtc, recoal 01-1 fih, of wt.lict-1 it purports to a "LfUe, and correct. WI IN TNESS WHEREOP, this certificate and affix tl�e Great Seal of the State of California this .- 1 7 - 'OCT 22 1979 j tv, 71 Z, e AIARCTI FONG EU, Secretary of State of the State civ y l a"ji, [cx ' aereby certify: cL1sc1)t was 1.)repared by ai-cI in Chis C tJtc, recoal 01-1 fih, of wt.lict-1 it purports to a "LfUe, and correct. WI IN TNESS WHEREOP, this certificate and affix tl�e Great Seal of the State of California this .- 1 7 - 'OCT 22 1979 ryn h mw P ' r y �l X la X' "�,d��r J k I ��� x&SNw , mss.. " � sr 4 P Mill r" - o r , r F1 L E D t a. 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A,1I I Y�m:�ti"� � Vii" fi O W�� �7� � A � �„ � F � � 3j;atj VICT"PCOT! r . a.. �ha'thew coo t o ,! r° C y ry r the Pro r^ FAMILY ti ° ana,A Borth At a alar me a t ing Of th tr�nti caa .t� ray omvi.ax� i�� �^��N�� ,at: �° Tan ' t - : iicta tia. ther.^ cao 2bth Ili f ll ties: q;, r1aC nt aaL3cti.n a � ' adopted,jution tiara duly boar , t ,* i '1 ira tr lu c aid" or divec' + 'FRthe L 7 , thin r r aa: ttoll to til to Ito� :iant�� tare �n� to t��. g, .. .F�;.r ,�� ire ° �.w Ii ms ami p r .a o. r t h .� �- �..�� ��' «, , nit �ra"+in�,� r. ,p r _a',to th tw9r; i"it tai" any privE:atl -M— porn ����a rs �rl�l i�uotli r individauar i . lrp ���� t,r � t a , ar, to,any. bit �iU ls7caat.l.cara true^ 05 tr ,or the ca�rp'orntion ill .M aVd t Q Cir" cor-por tif,l'.a 119,ftLrgd to a fund, � r � ni e+ rad c r trxi ex;ci.al ively fcr chnlrit3bl pug ,c�cc� � a,14 in th e t of dl trip tions tyle raps ii ", exemptµ„fr=' d t�aa3,"��eprc�ca+� tlx 'liatl�it'Y a" 6����`oj,,11 �fIfE tin t Xttma tr rd c�i dire ct "r i tkni tidy ��,�pt �ndwppr�wr�� �,id �z�d�ai� `�C its r4"ti�7C z: rticirr c incarirticn. a� w. i I���'thlttt'*�°pr^ a id ant �rari the �d arI t,i cac�¢ t,ra lot_ ard° tta hrtr ti.r.ir t ci tG. to cwu ur pi xpti an .end p r " i t". r w � p L_� 0. $ [�t i y t vaat tr�a-ttair+i a > a ,ci tkarp .� Meeai tOA ce ti is t� iin t �6 n r� x'.,�'r .. ftir to, sign apd, verify t Grath; and to r a I^ �lifor'rai rCor7orntnoby � ar, in <aan ae i L do n nd,,all thilz'a s ,r ra_._, crdac iitha raid section ix ilii: r. wrap At a p i tax ir P ,in C t�Par.'e,a-4. iw i.d t"^ � id pa:L t. � z j ry ICan tha 7 th dly 0r R, Ww! rectora thiG 'Corporation FKPIs t�,n ta��rd di� n ty, 260 dof oc juni, dUly hIld 0 tins 10WH of. thlu worporm Mduptcd -Aknd Ormtwn 1961, ct, t,to princIPS , ralifornia 'D Of a. t of th! artielft or cold bOlrd 00D!t1d urtiOn by, Off !ng Of thl�, I'l as fo 110, ja L a or th, ccv- E I lat I UHT1 I ate P q any,rivatc rura� to thl ba no r it, I n t h a Y'Other"Individual. oraticn to an therr, off, c (D rp ,,,pt WOO HMO 'the undation OV cOl �jilj bi trRn5ferrd�t�') atud exclus 1,;ely for ChBrijAW -: OP"a distributl0n, the On- orgonizad Anc nt in t)"115' eve d a ra I 10 C c� t -1 L)e b'Vall liability.' Dnon nd - MMSAhat fal'" F,,S IT TTE-tical h1a cOVPOratton of Incol-purtion rof t mambire 01 vcrj by thL- CK, r] of tho a n hereby 10 adopted,Bnd I manded by addlrE -nd th(' cctrq�'flratlon P-111 tt,,t,said, artlal&V Iforth icia EIGM h7reill t�jer��t6 Art Z-3 a tj ado p to ri and ILPP� Sregoinx, wnylpy W -nhxac Via, . 1C .)be ra j . 3 a memburn" Mby eating, "t 0 t 7 8 Aald CurporaWn L'`' . �Cr� f maybe r z F ou r- 'T . 1,1,z t o t a vOt on or t, ado P tion f O (,tjtjt!,3d 2 ,-mbere, cOtl6titutt 1' t e t la i S ulderojanyd jESS W- IT E R E t h amandmen C 0 t J of I Y -5a c rd tar y f r.,,o n roY TY, 0C In u { P< ,�y,^a 4al E{ 1 p� iy'�C•'"�l�rin..�{ � �,'� , ¢4� ��yy d4%': +Ca IM �a yp G�`°�.� .:t.i } .�rlsJ ..7.,..' �fi� � rr �-qi�,.?a„,�, �. 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'ty; 7 r t A a Cu ^u�r re yyl f I - p d ���. gti dv"• rf v � ' y `� I � V,V 4 r r_"��o 7 ;..� t �, r 9 p..rre.. ,"�.M x � a c I a A 4f,1j!%� . q ;R�gre �T+ ,1 "� �c�. J��rew d .. 7 orIll "Vr} "� .ltd i at Xre arP 4 t110 t dr...pa��, r° p19k� pr yr� d «y p d k✓;VTtiIhP� � „rlCltlr, ai Y^"y ti �da� 1 .� C V r7 by +„ r, �, r. r" r'x ` P '� t". r ✓"; fit>r �y'{n r';�'a r� �In f(pe TVk� f^Ilk �' "; f•��f"4 y%n r r� T��,� aTkaftrVPI�;T T "re�.P"„•� ")_IrdYr y ” u 0 ,tr ,re I,,. r? G" r N,] r4-�,�'S u,k'; G"'" d. ^- PSI ei�:.pf'! :� �. f *,P •.. ,, p,l "fa � u 1"7 i1 �'�"r I�. I� �. �':.. ate.. ���,: ,. �V t. /il�;a 1����}".,w��t ".Y �« i�'�.°. �r fiv±lav'�� ^. „.„:Li.r irP..� .� ��� ���'.1� "•f%{". ��Y��- f d 11 i r S p r 4 pYFrtC:tr V, "!C^w V .� r �r qy r+✓w,°f,�tp 7�. C', "s`'�r:.t'rrre=� �' ^P tam �,�; `,�Ir ��t6'4rw .V ��,,1,� �" ”' ! P ��' � � y�� IenP ".i r" r� a V'. n «•"T". J'.r ",. d,� �, d7u t.r" S '�: ^' {M1a r"p ,.;- rY E :i^a {.'`r,. -I dr eA,y..r'4rpi C fi! ,a r^ "wr'•,,�, d .r °.! •t,. ,t*1 l"u4ir.r�'"J"'Ak iw*""'fr.a�tlP r M';t���. 1T ��r*r Tt" �' at,ra' "a" t' . +� "v •, a ,ahfp �ro i9e ra ark. µ.G t rf.F°,,4� �. i � .r � �A «� �� C ��."t�,", ay �.�.� � aa�'-•.� � r �b..N "yr�ir.�.'r A °�I.„+�$�"� �".,i'�' � �$p�"T��F �� t.�,,dfi��r�iTl9 ����Ik t �' ",r �. 'a �w t " ,�,: •*''K� ,' S• �++yy t�, re �.�•ktt�.a "�rry4.t �rll��pf`t`iRTa�"ai�..E,91�"`w:'^iSY1.h4„w4, re.y baa r. d U. S. WEASURY nu'life r CvIENT "n �(�< i(} , � p"b IER"AL FJEVCt M..'. SErjVICEC�I[••�(ii ; PITI U1 1CJI°l:�t. DI STMIC`8 t1iFtl CTC)fi P. o, nox 23t FATE t_DS AtI(;EL_ES 43, C-At_IFOFMIX '9eptt5ra)ar Q, 1961_ irr nn �r e„ etr+�ra Cmic ,4 C 1 t CCIt 61-2451110 FILMi..1J S9rvico or Honrovia .1 -„3 9 A P,z at; Llm e A VV A' a lonroYia, Wiforrnlla �•F GonticnenI VotIl• :ipplicnlinn Wr LAUI1411fnn front MUM intermit• tax under flit.-provlrticuts (if r(:C- IN"I 5fIQ) rf t.hc 11ttc•111A II(:MI"m Cock of 1954, as MI c7rl;anl7nlic7tt cictiCrihccl:l•t7-•rLc- tinm•5f11(r;) ( 3 } of I% (:)(Ic:, his he -cit c:rn;:idcrud. It ir: Ihc: LIL•IcrIKIMlic7m mf thl i u(fic:c, f)ru;c(1 uprnl Ihc: cvicic:rtcc presontccl that you are ux"upt rout, 1°c°C{ r,ii iiunn"cv inx ns au orloui;cttt+`on (1caCrihctl itr e:cCtiurt °`d)1 (c)(l) of IIIc felt°rmiil l ,°wrr, Iatic,° C:ri(!t eat ).71. :c.: r! tr, :,fiocvn that yt)Lt tLrL (Jrhamtr.c(l`an(1 eslzcratcc! r s( Ituci�C_[y fit` charitable pu uQe, a Act`irr•clirtl,ly, yc)Lr itIc• It(II rt rliritud to tilt: fncoimc° tax t`clurnri trrtksi: you CIIm, the CiiitIMCIL:t` of Your c7rle;utinIlion, Ihc pur`po::c:s for WhicWynct \l'rr U orhiuilay, Lir Your mc'lh;7cl (if oIxtratirlt, Atty ::uc:lt L httitl;c :; ;,it(rulLI hC rclx)I[(:cl Cntrtctli licly ICI lI1C ahr`°c {li:.lrit:l Dirt:rlrr rlf I`rlc'tuitl I(c-vc°nll" ill 01Llrr WC Okic 00c uncut your CxemItL tit:tlu:: ncity hca cft-:rr rtrtiltc°(I_ —_ 1 i imatl .n._ l annually with nl-,. rc:rurrccle ltt7wc,vcr•, lct filc::ul r rttttlt[ r7tt7lirnt�ticttt�•-�� �it)lr ' C711 I C.l [[L rt ( C 6 the 17i.itr.iL:t Oirurtmr ell Internal ICc°vl'ttttc , _,., thi.1 ext t - z s In Cffcut„ `I hh, fr7rrrt Dray h;.' ed""inL°tl frr"n flit: Olstric:t Muctur and lR L-C'gLulrctl 1,1 be {!ILLI rut or fa hirc the fiftcc'nllt ckiy of tftc° fifth rtcrlrllt fctl[r`vinlr lhr C:ICISC Of ycIttr nC•LOMI[ii)g purio(I. • j:ni{ttr(: I() file IIIc rc crtth-L•tl inlol'mt:ttiolt tc°lntm rr to tRhL!I-VJit:Cr rcurill[y With tlrc C7rc,- admtt:t or Nestteut Gf03(0) of IN: CAW and icgidaticun npl7licahlr Wrew tttay rr adt la Ihc tc.:t`IrtNT1161 of ycllrl' tWm"pl tantits rxt t{tu l;c•otntdS that you lt;tvca MH ct.tnfIAlecl Oat you arc nl unt•vCnl; OR' rrul(liIh"Vi IMr1iI-Cd hit"tlre rtntlClttlittle7n rf lit cxutrtpC t:Ial;t;z, r .ti (;rurlrihsttirnr: rlr;t(1L: !cr ynct art: Anlidc hilt° fIy IIIc' churn, in contpuOy tftc`ir Inxnhlc nut �rlin� iii lltc' rrl:tnnt_r :oic{ to tll�°tsri�lnl�C�t`�tvirlL'clitt s:cL=ilriiillf�itl[t� rn;If Ctc vcrtuC Como of 79M r liurl(ecmin, le_jqulwt rlrevbao "r tr':rnsWra, in cir Wr yc,tdt' urn! nru ele•tlue`tlhlet In cmu- putlnl; tltr_: v.tlr•rc° W IN., nc I mp"r crf n h_wrtic•rt( for c°inviv tax purt2rs: uk In Ihc° I,taon r ;Incl tri the L:x'sc:til 17rovicicd by ltc'ciiiiitrt °,055 ;grit{ 21(l(r A tho Inlc't'tt;tl UventlC Clc7tic cat t;CE ;lC `J 6'.d65® I 1hy 12 1952 7 CL If 2 2 1'r •d � � C.�'i oma" 6 �� iA�tl.� G -e ntlElneri FORM 25 Rl = ° fy xomp;,i on From Franchisc Tax rr 1t iS t_ae opinion 'op nion of this office, basedupon the evZ dGi c e � r;� ,a � it [tha y°aare exompt frcut State Xte , Tianch,ise tax under the provisions of Section 7�I o f t c Revenue and Taxation tion Code, as it is shovrn thtat. you ��W�,w. are orgal-lized and operated exclusive,e� - a charitable orgmulzation - 7 nn Accordingly, Yo' ""less �;. c•7u 7rri II not � n f � � ,� o r required to file franchise tax rcttzrns n ��M�°<," You nge the crtaracter of your organization, the prxrpt) aes for rr? c t yo Wt .°: e or r tic drat �..y to this officetheir s m �an Zed, or our M od of operationo 4'CZ�P 'iC �. shoul...d be 1-C y. � C aa[_� 05 G �� ., JOT' t�C,' d r ,. z .� upon. your exerupt status may be determineds in oder that the .r effect Contributions m dcc tO you are deductible icy t dono� 'w b u t .y. vr rs in ar*ui.�a ng., w ncona in the mannor and to the z.� 17315, 17316, 173?7; and 241,21k of c extent provided - Sections .: the �?c�vc t:, and Taxation moo, -stn �xq c If �f �':.�".. organization ('� -} .7.5 not yet incorp�orate(.`�, or iL3a` ' nct ,. ,7 to do QU..a,Yg' 7 lie ss 2 p�; Calif v `, ix.v= �. Z...ir'' ' c ,.t t 'q �- t°�,�Ct q1�� ,gym. is = „��,��G.n;% this -approval t E'xpir'e �rilllirl thirtya 4 i' unless incorporation or qualification days t� quid ' f' cation is conp�eted within cit period. =' y,,' r : , jr Zt FRANCHISE QX BOARD r, John Y.. . L J A t•wph! r J. Campbell , ^"o -t �p�,i- r: l �I t u � VC xacutims. Off Ker— » jt c - S,° _w° 4 L�* MAH taeb ? u�� � �� No �k p,. cu — Secretary of St..�-., dam'4xR`��y�'� ^ra �y CyfJ µ P h a P Rl = ° fy xomp;,i on From Franchisc Tax rr 1t iS t_ae opinion 'op nion of this office, basedupon the evZ dGi c e � r;� ,a � it [tha y°aare exompt frcut State Xte , Tianch,ise tax under the provisions of Section 7�I o f t c Revenue and Taxation tion Code, as it is shovrn thtat. you ��W�,w. are orgal-lized and operated exclusive,e� - a charitable orgmulzation - 7 nn Accordingly, Yo' ""less �;. c•7u 7rri II not � n f � � ,� o r required to file franchise tax rcttzrns n ��M�°<," You nge the crtaracter of your organization, the prxrpt) aes for rr? c t yo Wt .°: e or r tic drat �..y to this officetheir s m �an Zed, or our M od of operationo 4'CZ�P 'iC �. shoul...d be 1-C y. � C aa[_� 05 G �� ., JOT' t�C,' d r ,. z .� upon. your exerupt status may be determineds in oder that the .r effect Contributions m dcc tO you are deductible icy t dono� 'w b u t .y. vr rs in ar*ui.�a ng., w ncona in the mannor and to the z.� 17315, 17316, 173?7; and 241,21k of c extent provided - Sections .: the �?c�vc t:, and Taxation moo, -stn �xq c If �f �':.�".. organization ('� -} .7.5 not yet incorp�orate(.`�, or iL3a` ' nct ,. ,7 to do QU..a,Yg' 7 lie ss 2 p�; Calif v `, ix.v= �. Z...ir'' ' c ,.t t 'q �- t°�,�Ct q1�� ,gym. is = „��,��G.n;% this -approval t E'xpir'e �rilllirl thirtya 4 i' unless incorporation or qualification days t� quid ' f' cation is conp�eted within cit period. =' y,,' r : , jr Zt FRANCHISE QX BOARD r, John Y.. . L J A t•wph! r J. Campbell , ^"o -t �p�,i- r: l �I t u � VC xacutims. Off Ker— » jt c - S,° _w° 4 L�* MAH taeb ? u�� � �� No �k p,. cu — Secretary of St..�-., dam'4xR`��y�'� ^ra STAVE OF CALIFORNIA �FRANCHISE TAX BOARD SACRAMENTO, CALIFORNIA 95867 November 20, 1985 In reply refer to 342:RTF:EO:BAF:rjs SANTA ANITA FAMILY SERVICE 143 E Foothill Blvd, Monrovia, CA 91016 Purpose Social Welfare Cede ScGti0da 23701+ Form of Organization Corporation Accounting Period Ending: June 30 Organization Number • 0263201 This letter confirms your previous exemption from state franchise and income tax under the provisions of the Revenue and Taxation Code section indicated above. In confirming your exempt status, we have made no examination of your current activities. If the organization has changed its operation, character, or purpose since exemption was originally granted, that change must be reported immediately to this ffice. You are still required to file Form 199 (Exempt Organization Annual Information Return) or Form 1998 (Exempt Organization Annual Information Statement) on or before the 15th day of the 5th month (4 1/2 months) after the close of your accounting period. See annual instructions with forms for requirements. You are not required to file state franchise or income tax returns unless you have income subject to the unrelated business income tax under Section 23731 of the Code. In this event, you are required to file Form 109 (Exempt Organization Business Income Tax Return) by the 15th day of the 5th month (4 1/2 months) after the close of your annual accounting period. Exempt Organization Unit Telephone (916) 355-0392 -TB 4205 -ATS (REV, 10-81/5-85) State of California Secretary of State ENTITY NAME: FILE NU]MBER: CO263201 FORMATION DATE: 05/15/1952 TYPE: DOMESTIC NONPROFIT CORPORATION JURISDICTION: CALIFORNIA STATUS: ACTIVE (GOOD STANDING) I, DEBRA BO N, Secretary of State of the State of California, hereby certify: The records of this office indicate the entity is authorized to exercise all of its powers, rights and privileges in the State of California. No information is available from this office regarding the financ-i condition, business activities or practices of the entity. I IN WITNESS WHEREOF, I execute this certificatz a -rid af f ix the Great Seal of the State of California this day of May 07., 2012. DEBRA BOVvTN.,- Secretary of State j State of California Secretary of State Statement of information (Domestic Nonprofit, Credit Union and Consumer Cooperative Corporations) Filing Fee: $20.00. If this is an arviendinant. see instructions. IMPORTANT - READ INSTRUCTIONS BEFORE COMPLETING THIS FORM F` j- -7- Ea, D Se(,'re'jof SrtP-"P,-' I CORPORATE NAME St, ', 'af CaEffOmiS 00263201 ita Famly Service JAN' 2 1,l 2011!5' Santa An -1 605 S. Myrtle Ave. Monrovia, CA 91016 2 CALIFORNIACORPORATE NUMBER fhis Space Ibr i,.ise Only Complete Principal Office Address �Do nol. abbreviate I�ho riarne of 11 �c� -JtY irern 3 canno�, be a P 0 BOX . . .......... . . ........ - "I----, . ....... . . . ..... [-iF0Ri'q[A, IF ANY CFY STATE Zip CODE S FRF. -.ET ADDR�:.:.:.:.SS OF PRINCIPM.-OFFICE IN CA CA 9 101. 6 605 S. NL[yrtle Ave., Monrovia ...... . ... ....... . ..... -, ...... . . . . . . . ..... . ...... CITY STA ZIP CODE d MAR.JING ADDRESS OF rHE CORPORATION 605 S. Myrtle Ave., Monrovia, CA 91016 Names and Complete I Addresses of the Following CfFicers The corporablon must list these three offincers. A comparable fite for the specific officer may be added; however, the preprinted Titles on this form 9TUSt not be alterefl . ....... C11Y STA TE Zip 1-00E CHIEF EXECUTIVE OFFICERJ ADDRESS Fred Loya, Ph.D 605 S. NLIyrtie Ave., Monrovia, CA 91016 . ...... CITY STATE ZIPCOPE DRESS, C3 SCECRI:.IAPY Cot -,rt, Duarte, CA 91010 . ....... Timothv Scanlan 1245 Carmel kl..= CITY ST - ZiP CODE 7, CHIEF� FINANCIAi OFFICC:lRi ADDRESS Bob -Proctor 1986 Midwick Drive, Altadena, CA 91001 i Sqrvice of Process if the agent;s air ind-VVidual, thie agent must rssde n Call omia and It ern 9 r.us �c, completed with a ca�;fornia z.�,r�e Agent for aIcr � if the agent [� anothe� c,,jrporatfon, the agent must have or, 'ifle witth the Gaflfc,'miia secreiiar./ of Stwls a address, a p.0. Box address is not accapt Is Code section 1505 and itarn 9 must be [eft blank, . . ..... cerifffica� J rsuant to California Ornia . ........ — . . . ...... 'e pi 8, NAME OF AGENT FOR SERVICE OF PROCESS Fred Loya, PhD . . ..... . . ..... ST. AT E ZIP CODE ICE or- �N CALIFORMA, IF AN INDIVIDUAL CITY ADD RESS OF AG S 4T FOR S ERV - S,1 rba Linda, CA 92886 CA 5221 Highland Avenge, YO Act (Calif mia CIA Cocl� section I 3f -)o sc seq,)i 10 Davis -Stirling Common lflt'j,a5t DgVelopmenL . . ....... . - — --------- - - - . ..... 0- viS S�H 9 de,g�l(:)prnen�� under h, Com E] Check herr rf jie r.oi-por3tion is an a�.-3so,-JaIiOi'. lor,"ned to nnanag-' a corrtmon in Dk,,velgip.ment Act., -m -Av r, e aoeiaH resi- development rn(.is- also ffle a sta'tsma� NOTE: Corporations forrm d to rr@nage a COMF;ori irlta p l &a on the raverse Side of fis 'Form SI -CID' as na(�"Jjr.(B h ornia Civil se See ��nstru A11,IC.- 1 A I'[ I E...) '.H E R I I S r D 10 Fo�..:IMATICN C01' ,kd :i nistrative -�kssistanrt ... . ..... .. Blanca Cor . ........ . ........ . 8 6/i!0 '+ . ...... ... . .. ...... p �.N G =OF N1 -- TITLE L' 7- Tycpi oi-�INT NAME Co- PtERSON SI V)r 0112013� int-ernal Rav-enue Sar,-. tce + A-:�R-a Fa7nh Sac Ka (:�A- 910,16 pemon to coxm= ANr Gadd C�--,D-FneF Toll Fms Telaphons NuTTAMM 3!UC ar-- WO rL ss- Qx 5i Fed-aral ideram—cation. 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W W rA 0 rA eD lD oll w ro M (IQ W 00 CD CD men IQ eb CL 0 (A eD W CD C) 00 Q14 CD m w SANTA ANIR-A FAMILY SEWCE, INC.. VABI E OF CON'T EN IS INDEPENDENT AUDITOR'S REPORT 1-2 FINANCIAL STATEMENTS Statement of Financial Position Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7-11 Schedule of Expenditures of Federal Awards 12-14 Notes to Schedule of Expenditures of Federal Awards 15 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 16-17 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements in Accordance with Government Auditing Standards 18-19 Schedule of Findings and Questioned Costs 20-21 Summary Schedule of Prior Audit Findings 22 To the Governing Board Santa Anita Family Service., Inc. Monrovia, California 131E= We have audited the accompanying financial statements of Santa Anita Family Service, Inc. (the Organization), which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, functional expenses and cash flows for the year then ended. and the related notes to the financial statements. Z=M' - Mlf R71 1jj1!11l1!11�1!1!j applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. rwfi[;W. 0181 A M P -M I &Xtlr-A&ftl KORN I I ANIFIH •MM11MLV.1=qRLwM N Roll OR M.- :RIM of the financial state�ents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. " 1d I a t —'' I 41 ?tarwi reSDQC lvb�lo" A IN Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole The accompanying schedule of expenditures of federal awards. as requimd by Title 2 U.S, Code of Federal Regulations (CFR) Part 200, Uniform Admin(strative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of ffie finanoal sfz',iternents, Such inlou-nation is ffie responsibility of man,,,igement and was derived from and relates drectly to the underlyingaccounting other records osed to prepare the financial staternents, 'Fhe information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additbnal procedures, including comparing and reconciling such information directly to the underlying accountng and other records used to prepare the financiat statements or to the financial statements themselves, and other additional procedures in accordance with U,S. generally accepted auditing standards, In our opinion, the information is fairly slated, in aff material. respects, in relation to the financial statements as a whole. OtherReporting Required by Government Auditing Standards In accordance with Govemment Auditing Standards, we have also issued our report dated June 26, 2017, on our consideration of Santa Anita Family Service, lnc.'s interrial1 control over financial reporting and on our tests of its compliance with certain provisions of taws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an q)inion oil internal control ('wer financW reporting or on corTipfianc(,',, That report is an integral part of an audit performed in accordance Mh Govertirr-jent Audifing Standards in considering Santa Anita Family Service, lnc.'s internal control over financid reporting and corripfiance. June 26, 2017 Pasadena, California SANTA ANITA FAMILY SERVICE, INC STATEMENT OF FINANCIAL POSITION JUNE 30 2016 ASSET'S CURRENT ASSETS Cash 1,543,910 Contracts receivable 166,864 Other receivables 1,118 Prepaid expenses and deposits 465,098 Total current assets 2,176,990 PROPERTY AND EQUIPMENT - NET 79,060 TOTAL ASSETS $ ..2,256,0501. LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable S 198,020 Accrued expenses 202,344 Deferred revenue 534,441 Capital lease payable, current portion 8,201 Total current liabilities 943,006 Deferred revenue, less current portion 2,084,988 Capital lease payable, less current portion 2,895 Total long-term liabilities 2,087,883 TOTAL LIABILITIES3,030,889 Unrestricted (805,655) Temporarily restricted 30,816 'Total net assets (deficit) (774,839) TOTAL LIABILITIES AND NET ASSETS $ 2,256,050 The accompanying notes are an integral part of this statement, .3- SANTA ANITA FAMILY SERVICE, INC. STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 Unrestincted SUPPORT AND REVENUE Senior centers Pathways Domestic Violence Calworks Domestic Violence Calworks - GROW School districts Family Preservation Community Service Block Grants City contracts Other contract revenue Program fees Donations Gifts -in-kind income Rental income Miscellaneous income Gain on sale of assets Contract settlements Net assets released from restrictions TOA support and revenue EXPENSES Program services Management and general Fundraising uzm�� CHANGE IN NET ASSETS", NET ASSETS (DEFICIT) AT BEGINNING OF YEAR NET ASSETS (DEFICIT) AT END OF YEAR The accompanying notes are an integral part of this statement, -4- 806,752 S 16,187 267,750 2,327 21,150 599,258 198,200 22,454 32,062 95,208 85.045 97,712 3,370 22,019 77,026 4,697 23.646 2,374,863 2,191 ,753 424,326 93,206 2,709,285 Isom fernpor@My restricted Total I 29,650 806,752 16,187 267,750 2,327 21,150 599,258 198,200 22,454 32,062 95,208 114,695 97,712 3,370 22,019 77,026 4,697 6,004 2,380,867 2,191,753 424,326 93,206 2.709,285 6.004 (328,418) (471,233) 24.812 (446,421) (805,655) 30,816 S --- (774,§39 SANTA ANlTA FAWLY SERVICE, INC - STATEMENT OF FUNcTiONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2016 PERSONNELEXPENSES Sala6es PayrolI taxes and ernployee benefits Total personnel expenses OTHER EXPENSES Insurance Professuonal services Rent and lease expense Utilities and telephone Facilities and equipment rnantenance Auto, including reimbursements Supplies Postage Prindng Membership dues Special events Ghent support Family Preservation - subcontractor DV CalWorks subcontractor CSBG - subcontractor Property taxes Gifts--On-kind expense Interest expense Miscellaneous expense [ 'rogram Uanagerftent services arie; generai FundramingTotal . ............. S 1 .4WO76 S 250,328 S 62.109 S 1,720,513 132,360 23,532 5,838 161.730 1,540.436 273,860 67,947 1,882,243 156,388 27,804 6,898 191,090 5,266 45,386 164 50,816 69,713 6,792 1,561 78,066 74,896 7,297 1,677 83,870 45,296 4,413 1,014 50,723 21,641 1,827 23.468 13,256 2,357 585 16,198 505 1,442 1,250 3,197 325 131 4,841 5,297 500 371 871 1,705 409 4,851 6,965 10,516 10,516 84,532 84,532 6,370 6,370 2, 761 - 2,761 7,829 7,829 97,142 570 - 97,712 33,059 36,501 740 70,300 3,836 5.,408 778 10,022 627,707 148,166 24,730 800,603_ 23.610 2,300 529 26,439 S 2,191,753 S 424,326 93,206 2,709,285 The accompanying notes are an integral part of this statement. -5- SANTA AWTA FAMILY SERVICE, INC. STATEMENTOF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2.016 CASH FLOWS FROM OPERATING ACTIVITIES CHANGE IN NET ASSETS Adjustriients to reconcile change in net assets to net cash used for operating activities: Depreciation expense Amortized interest expense Gain on sale of assets Expenses paid through escrow Changes in operating assets and liabikies� Contracts receivable Other receivables Prepaid expenses and deposits Accounts payable Accrued expenses CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property Purchase of fixed assets Mffffrl,� CASH FLOWS FROM FINANCING ACTIVITIES Borrowing from line of credit Borrowing from notes payable Principal payments on capital lease Principal payments on line of credit Principal payments on notes payable Ine-JORENims Cash paid during the year for interest Prepaid rent paid through escrow Debt paid through escrow go Is (328,418) 1,906,018 1,880,672 89,000 65,000 (5,578) (89,000) (84,364) ___..(2A,942 1,517,443 26,467 $ 1,543,910 63,957 $ 440,140 $ 883,028 SANTA ANITA FAMILY SERVICE, INC NOTES TO FINANCIAL- STATEMENTS ORGAN 2A 11( , )1`4 Sal Al Family Service. Inc. (the Organization), a nonprofit corporation, is organized to provide family Counseling and senior citizen services in the San Gabriel Valley., Support for the ongoing needs of the Organization is obtained i!hrough various fundraising efforts and governmental grants, SIGNIFICANTACCOUNTING POLICIES . ... ...... ... .11 The financial statements of the Organization are prepared on the accrual basis o4 accounting in accordance with l generafly accepted accounting principles. A summary of significant accounting policies is described below: CASH LiqUid assets i a waturity of three mol or less are inci as cash FAIR VALUE MEASUREMENTS U S generally accepted accounting principles require that items recorded at fair value be valued as level one, two or three, based on various inputs and methodologies as described below: Level 2 - significant observable market-based inputs, other than Level I quoted prices, or unobservable inputs that are based on comparable market data Level 3 - sianificant observable inputs that are not based on comparable market data ALLOWANCE FOR DOUBTFUL ACCOUNTS The Organization has not recorded an allowance for doubtful accounts because, based on management's experience, uncollectible receivables have been immaterial- *ROPERTY AND EQUIPMENT Property and equipment are reported at cost. Depreciation is recorded on a straight-line basis over estimated useful lives of 5 to 7 years, Maintenance and repairs are charged against revenue in the year expenses are incurred. and renewals and betterments greater than $1,000 are capitalized. All donations received are considered available for unrestricted use unless restricted by the donor. Restricted funds are recorded as revenue upon receipt. Restricted donations received and expended during the same fiscal year are recorded as unrestricted revenues. Non-cash contributions received (gifts -in-kind) are recorded at fair value when the i vn,i whi tiliere I% a rl nable basis for valuatiop -7- SANTA ANITA FAMILY SERVtCE, tNG NOTES TO FINANCIAL STATENIENVS, (CONTINUED) JUNE 30- 2016 . .rI . . .................... BASIS OF ACCOUNTING In accordance with generally accepted accounting pdnciptes, the Organization is required to report information regarding its financial position and activities according to three classes of net assets. unrestricted net assets ternporanly restricted net assets, and permanently restricted net assets as described below.� Unrestrictec. includes funds which are expendable for the support of the Organization's operations- Ternporarily restricted, InCiUdes fur -ids which donors have restricted for specific purposes. or for use acco!-dffig, to specific 6inetabies, or both Permanently restricted, Includes funds trial are subject to restrictions set forth in gift instruments requiring that principal be invested in perpetuity and income be expended for unrestricted operating purposes As of June 30, 2D!6. there were no permanently restricted funds. ESTIMATES The preparation of financial statements in conformity with U.S, generally accepted accounting principles requires that management make estimates and assumptions that affect certain reported amounts and disclosures Accordingly, actual results could differ from those estimates. FUNCTIONAL ALLOCATION OF EXPENSES The cost of providing the Various program services and supporting activities of the Organization have been included in the statement of functional expenses. Accordingly. certain costs, such as depreciation and payroll, have been allocated arnong program and supporting activities. INCOME TAXES The Organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revert Code and from state income tax under Section 23701(d) of the Revenue and Taxation Code for th state of California: accordingly, no provision is made for current or deferred income taxes, The Organization uses the same accounting methods fortax and financial reporting. I I-'JRO,PERTY AND EOUIPMENT Office equipment S 73,510 Furniture and equipment 134,287 207,797 Less accumulated depreciation 28,737) Property and equipment, subtotal . ......... -- 79,060 IRS SAII14TA AN[ FA FAWLY SERME, INC NOTES FO F1NANCIAL SFATEMENTS (CONTINUED) JUNE 30. 2016 PROPERI'Y AI�IQ . . ... .......... Property and equiPMEmL subtotal '79,060 Less capital lease secured by equipment(11,096) . . ......... ­­­ " Net investment in property and eqUipffient 67,964 Depreciation expense for the year ended June 30, 2016 was 526,4139. C.',APFIAL LEASE - — - ----------- - - __ __ Current i on -term Total Secured by office eq6pnie0 monthly principal and interest, payments of $737: bearing interest at 8,689/'o per annuirn-, mab.�ring October 2017 2,895 S 11,096 Alt June 30, 2016, future rnaft.jrifies are as follows 2017 8,201 2018 2,895 PE _L Q E, -RE VENUE During the fiscal year ended June 30, 2016, the Organization sold two properties and leased back both properties over a five year term. In accordance with sale-leaseback accounting, the gains from the sales are deferred over the life of the lease. See LEASE COMMITMENTS note for terms and future required minimum p.yments, Current portion $ 534,441 Long-term portion 2,084,988 Total deferred revenue $ 2,619,429 At June 30, 2016, future recognition of the deferred gains from sale-leaseback transactions are as follows: 2017 $ 534,441 2018 536,752 2019 540,784 2020 544,935 2021 462,517 $ 2,619,422_ Total deferred gain on sale-leaseback recognized during the year ended June 30,2016 was 577,026, BE JUNE 30, 2016 NO TEIS. PA"v'AB'('_E. The Organization paid off two notes payable during the year, Interest expense for the year ended June 30, 20,16 was 551,808 �EA5EC,',Q M M 11"'M E N 1- 5 The Organization leases office space in Covina and Monrovia, California at a rate of $5,500 aired S5,000 per rnonth under leases that expire November 2020 and June 202 1., respectivelly, Me Organization aliso leases office equipment, at a rate of $275 per month und(N a lease drat expires November 2016. The Organization leases multiple office spaces in Porriona, California kinder three separate agreements 'Fhe office space leased at rates of 5350, 5400 and $550 per month. At June 30, 2016, future rninirriurn payrTients are as follows: June 30, 2017 S 67,100 June 30, 2018 127,155 June 30, 2019 129,170 June 30, 2020 131,245 June 30, 2021 90,050 MINERAL DEED 1�101 "M YUM-gM TTMUarjtM -61 Tit are included in miscellaneous incorne, The value of the interests has not been determined and is therefore carried on the books at no cost. PENSION PLAN The Organization has established a tax-deferred annuity plan for qualified participants. Contributions to the plan are non -forfeitable, The plan is a non-matching, deferred compensation arrangement whereby only the employees contribute a portion of their salary to the plan. M,',, NCENTRATIONS Four governmentai contracrs-IMUum— U LO I G U C 1 4 CO3 2016. This represents a concentration of credit risk. During the year ended June 30, 2016: four governmental contracts accounted for 74% of the Organization*s total revenue. M JUNE 30 2016 SAC I IONS GIFTS -IN-KIND Gifts -in-kind consist of professional services rendered related to governmental contracts and are recorded at the estimated fair market values when the services are provided. Donated services revenue and related expenses for the year ended June 30. 2016 were $32,185. In accordance with U.S_ generally accepted accounting principles.. the donated services are a level 2 classification measured on a non-recurring basis. The Organization also has the use of offices in Sari Gabriel, Baidwin Park, and Azusa, California, rent free In two of the three offices, it has access to reception and telephone services, free of charge. The approximate value of the free rent and services for the year ended June 30, 2016 was $65,527. In accordance with U.S. generally accepted accounting principles, the In-kind rent and the reception and telephone services are a level 2 classification measured on a non-recurring basis BkLAID PARl-Y TRAIIIIIIS'AC-111JO-N.S. The Director of the Organization rents office space from the Organization for personal use on a month-to-month basis. The officer pays the Organization rent at a rate of $187 per month. During the year ended June 30, 2016 the Organization borrowed and repaid $65,000 from two related parties, LQa5l.r QM.-umtit One case of fraud believed to have occurred between September 2014 to November 2016, was discovered within the Organization. Revenues and expenses related to the year ended June 30, 2016 are estimated to be 57,360 and S4.932, respectively . QQNTR/N� S - j WE F=M-EN1,53, The Organization has contracts that are subject to inspection and audit by the appropriate funding agency. The purpose is to determine whether program funds were used in accordance with their respective guidelines and regulations. The potential exists for disallowance of previously -funded program costs- The ultimate liability, if any, which may result from these audits cannot be reasonably estimated. No provisions for the possible disallowance of program costs exists on the financial statements, During the year ended June 30, 2016, the Organization recorded total contract settlement income of $4,697. 1%JKE_QL1E=N,1 EVENTS In accordance with generally accepted accounting principles, the Organization has evaluated subsequent events through June 26, 2017, which is the date these financial statements were available to be issued. 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NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2016 BASIS OF PRF5FN'I'A1"10N ................ 11111 --- The accompanying schedule of expenditures of federal awards (the schedule), includes the federal award activity of the Organization under programs of the federal government for the year ended June 30. 2016. The information in this schedule is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule d d is not in I ended o an oes walLiffamilunum"M InImarjumunkmm SUMMARY 01' SIGNIFICAN F PQLIQ�ES Such expenditures are recognized following, as appticable, either the cost principles in 0M% Circular A-1 22, Cost Principles for Non -Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement, The Organization did not elect to use the 10% de minimis indirect cost rate. M INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Tothe Governing Board Santa Anita Family Service, Inc. Monrovia, California We have audited Santa Anita Family Service. |m�'s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect oneach of Santa Anita Family Service, Inc.'s major federal programs for the year ended June 30. 2018. Santa Anita Family Service, |nc.'s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. r responsibility is to express an opinion on compliance for each of Santa Anita Family Service, above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Santa Anita Family Service, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. federal program. However, our audit does not provide a legal determination of Santa Anita Family Service, Inc.'s compliance. In our opinion, Santa Anita Family Service, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. ^.v'�|"r,.| -10- �x*/." in in ernal con rol over compliance described in the accompanying schedule of findings and questioned costs as items 2016-001 to be a material weakness. The purpose of this report on internal control over compliance is solely to describe the scope of our WtM4 44 ' . I I I the Uniform Guidance. Accordingly, this report is not suitable for any other purpose Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of Santa Anita Family Service, Inc, as of and for the year ended June 30, 2016, and have issued our report thereon dated June 26, 2017, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole- The accompanying schedule of expenditures of federal awards is presented for the purpose of additional analysis as required by th Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accountin and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. June 26, 2017 Pasadena, California M G / Il �� iPyl�r//j��/�����1����d�ur���� �i,;' a fj�afgl�, , �l✓/ �� ,w�i 1, u,• y i INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WiTH GOVERNMENT AUDITING STANDARDS To the Governing Board Santa Anita Family Service, Inc. Monrovia, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United Slates, the financial statements of Santa Anita Family Service, Inc., which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 26, 2017. • In planning and performing our audit of the financial statements, we considered Santa Anita Family Service, Inc.'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Santa Anita Family Service, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in infernal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiency in internal control that we consider to be material weaknessess. However, material weaknesses may exist that have not been identified. As part of obtaining reasonable assurance about whether Santa Anita Family Service, Inc.'s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance, with those provisionswas not an objective of our audit and, accordingly, we do not express such an opinion. .I.hr, results of our tests disclosed no instance's of noncompliance or other matters that are required to be reported under Governrnent Auditing Standards. -18- ., , 11, I'd , lo, Purpose of this Report The purpose of this ireporf. is solely to describe the scope of our testing of internal control and corriplianGe and the results of that testing, and not to provide an opinion on the effectiveness of the Organization's internal control or on compliance- This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control and cornpliance, Accordingly, this corTirnunicaflon is not suitable for any other purpose. June 26, 2017 Pasadena, California M SANTA ANITA FAMILY SERVICE, INC, SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2016 SECTION 1, SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting Material weakness(es) identified? Yes X .., No Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Internal control over major federal programs: Material weakness(es) identified? X Yes No Significant deficiency(ies) identified? Yes X —None reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? X Yes No Identification of major federal programs'. CFDA Names of Feder ram or Cluster _Iype of Au0itor's Report Issued 93.04�No­__ pedal Programs for the Aging Title 111, Part Modified B: Grants for Supportive Services and Senior Centers 93.052 National Family Caregiver Support, Title 111, Modified Part E Dollar threshold used to distinguish between Type A and Type B programs: S 750,000 Auditee qualified as low-risk auditee? Yes X No SECTION 11. FINANCIAL STATEMENT FINDINGS ME SANTA ANITA FAMILY SERVICE, INC, SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2016 SECTION III, FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Material Weaknesses, Finding 2016-001: Reporting - Annual Audit Submission - Material Weakness in Internal Controls Over Compliance F9 T -ray - Y= ri M,* rexrr TIM w=,- V, Federal Agency� All Questioned Costs'. None Criteria: Audits conducted in accordance with the Uniform Guidance are required to be submitted by the agency receiving federal funding to the Federal Audit Clearinghouse within 9 months after the close of the audit period, Condition: The Organization did not submit their audited financial statements within 9 months of the close of the fiscal year ended June 30. 2016. Effect.- Failure to file audited financial statements with the Federal Audit Clearinghouse within 9 months could affect the funding status of the Organization. Cause: The Organization did not finalize the June, 30 2015 audit with the Federal Audit Clearinghouse until March 2017. As a result the Organization was not able to finalize the June 30, 2016 audit timely, Recommendation: The Organization should file their completed audit of the June 30, 2016 financial statements with the Federal Audit Clearinghouse as soon as possible, Management's Response: The audit of the June 30, 2016 financial statements is scheduled to be completed the week ending June 30, 2017, and filed with tile Federal Audit Clearinghouse by Friday, June 30, 2017, SANTA ANITA FAMILY SERVICE, INC - STATUS OF PRIOR YEAR'S AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30. 2.016 Finding Referend Condition I Status Finding Reference I Condition I Status Finding 2015-01, We tested the Organization's monthly invoicing to the County of Los Implemented Reporting - Angeles rioting Costs submitted monthly for reimbursement did not Invoices agree to the amounts reported on the annual Schedule of submitted for Expenditures of Federal Awards. WMffi1FRr;7MM- - Material Weakness in Internal Controls Over Compliance Finding 2015-02, The Organization did not submit their audited financial statements within Implemented Reporting - 9 months of the close of the fiscal year ended June 30, 2015. Annual Audit Submission - Material Weakness in Internal Controls Over Compliance -22- APPLICATION CHECKLIST " ORGANIZATION St. John the Ba tilt Social Services Please complete an Application Form for each piroposed program/project. If an item is not applicable, indicate "N/'A" in the box. If you need assistance, or have questions, contact Michelle Bravo at (162611960-4011 ext 354. 1. X APPLICATION FORM 2. X BUDGET PROPOSAL (ATTACHMENT A) 3. X BOARD OF DIRECTORS AFFIDAVIT 4. X ORGANIZATION BY-LAWS 5. X CHARTER OF ARTICLES OF INCORPORATION 6. X IRS TAX EXEMPT STATEMENT 7. X MOST RECENT AUDITED FINANCIAL STATEMENT 8. X PAST AND PROJECTED ACCOMPLISHMENTS Application packages are due by 5 p.m., on Januar 11 2018, Applications must be submitted to; Baldwin Park Housing Division 14403 E. Pacific Avenue Baldwin Park, CA 91706 FUNDING APPLICATION BALDWIN PARK COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FY 2018-2019 I. AGENCY INFORMATION Agency Name:_Jjt, John-Lhe-Bat pfig Social Services Agency Address: 3883 Address Rak!w_in.Parr Blvd'. -qa Ldvy�in I�ark.. . ..... 91706 Street City Zip Code Agency DUNS#: 171092380 Administrator: Michael Ward Title: QLirgctqr ot.�Social _Services Administrator Telephone.- _&,2337-4223 Fax: Administrator Email: _sjbsgciq_tse jvicp.s cmail.com Project Site Address: 3912 Number Stewart.A.vQnue BaldwinPark 91706 Street City Zip Code Project Manager: -Mic-h-9�ql YYq[dPk1_-Qf_aQ2A1_ap_rvices_ Project Manager's Telephone:LQ?_E437-42-2,3.---Fax- Project Manager's Email- Ajl oqLalsgrviqf-sp mail or Describe Agency's overall function or purpose. Include history and experience in providing this service. (If more room is needed, please attach an additional sheet). .fiL �fohfj the Paptis ociiiiii rviqts ho (P I rjw offer§� i --tias bee ervi _qgq�d s�nce 1,949. -a-ya, �iettest pf sery�ic-eliLr4q(qless of f gipUS 4ffiilaid tz41-iOL ThesEI�ijcjudefpoo gLqqsqqipSLepg�iation,_QMP-r9cial aidp ren _qr_1(tv_1o1q_nqe prevention class aerobiqs/&imba onsite al �s i --Cal r �n health an . ..... �LAc_11bM�,9_§__l?11ojeqts no. o 11 _y__Ltt srmrie �.Thpj( pf 111,"_LogLam is !20-9--tQr_m_20_1uti0r)s to j_saLtqs clients face. Has the Agency previously received funding from the City of Baldwin Park? X Yes (if yes, number of years §__) No KA! PROJECT PROPOSAL AND DESCRIPTION Grant Amount Requested $-$.2150 Scope of Services - Please briefly describe your proposed Project/Program and the objectives. Beneficiaries - Please briefly describe the clientele that will benefit from your services (i.e. homeless youth, the elderly, disabled, handicapped, etc.) The cl,�ents ark _plar ely -e ai ts i ditrsed f�LT llie�.aqrn ly attending --Q-the-r-sarum via court ordero-r-P—rP-La tip nerr , epa el -rt rp -_dl_ __qm -quire ither g,� rp -n oils tgtAe --or those.of their h Describe any special characteristics of your client Population, Wrjy_gthe,se families are i d/ r chit 111-9._.!J�da_l)use dru 9`t-C--,..AqrA-�1�LCe-j)Le c rqqL1Lr-c1*9!2ifiCaat addifignq!.base t�ja ijgag�e t. Increase in Funding Request - If your agency has been previously funded through Baldwin Park's CDBG program, and there is an increase in the arnount of funding requested, Please explain the purpose for the increase (i.e., increase in type of services or beneficiaries,). Not applic@bl [P- -for th 1-sQc-tig-n-Oithe -app-Licat.i on -5- CLIENT INTAKE INFORMATION The U.S. Department of Housing and Urban Development (HUD) requires that agencies obtain intake data from each client/family served. Application intake must be taken on all clients assisted with CDBG Funds, Supporting documentation is also required, Please see page 8 regarding Presumed Benefits, Does your agency obtain this information? X —Yes No If yes, does your intake sheet and supporting documentation obtain the following: 1. Name Yes — X No 2. Address Yes x No 3. City in which client last resided. Yes X No 4. Number of family members. Yes X No 5. Total family (household) income. Yes X No 6. Ethnicity Yes x No 7. Female head of household Yes X No Pursuant to federal requirements, if your agency is unable or unwilling to obtain the above information frorn its clientele, please do not submit an application for funding. However, if your agency is willing to accept the responsibility, obtain this information and retain supporting documentation for the required five years, the Executive Director must certify to that effect below: print Name L Signature M —Director of Social Sprvigps_ Title of Officer ACCOMPLISHMENT DATA Pursuant to HUD regulations, each agency must document and report measurable accomplishments to support that the services offered by the agency has made a substantial improvement to the lives or neighborhoods of the City's low to rnoderate income residents. Therefore, in order to ensure accurate reporting and compliance with regulations, your agency must specify the format that will be used for reporting purposes (example: Individuals, Households or Youths) To determine the best form of data, please consider if the services provided will assist a direct individual or Youth or the entire household. Please also note that the selected reporting data must be used throughout the entire year. The reporting accomplishment data to be used by our agency will be: PLEASE CIRCLE ONLY ONE OF THE FOLLOWING: Youths Households Please provide the actual number Of your agency's total clients assisted to date and the prpLqcted data for the UPCOMing fiscal year. Please complete this table regardless if you receive CDBG funding for this current year BALDWIN PARK S RESIDENT .......... . . ................. . . . NON-BALDWIN PARK RESIDENTS Actual 07/1/17 TO Current .......... - --- -------- - .. . ...... 10 ..7µ El ...... ... . . ........ PIr, cted--- 07/01/18 TO06/30/19 ........... . - ............ . . . ... ... 10 9 Presumed Benefit Income eligibility is not required for services provided to "Presumed Benefit" clientele as defined by HUD. The following groups are considered presumed benefit client: ■ Abused children ■ Battered spouses ■ Elderly persons ■ Illiterate persons ■ Persons with acquired Immune Deficiency Syndrome (AIDS). ■ Adults meeting Bureau of Census definition of severally disable persons ■ Homeless persons ■ Migrant farm workers Which further describes the activity you are proposing? A) The project will benefit a presumed benefit* clientele as defined by HUD. B) X The client intake information will provide evidence that at least 51 percent of the clientele are persons whose household income does not exceed the CDBG eligible income limit. C) The projects limits services to only CDBG eligible -income persons. BUDGET In order to remain in compliance with HUD's regulations, your agency must be able to separate and identify expenditures of CDBG funds from other source of funding. Please complete the following tables with your agency's current budget (including CDBG funds, if currently receiving funding) and the proposed budget, identifying how the funds will be utilized. I ci W N ......... j . W. OD � -I (3) U1 .A W N _, ... , .... O (CD (D T`IQ0) rr CD Q O O N 3 CD ` N v (D (D r n C1 rr 0) CD _ Q1 Q. =r FD- a)y (D y 0 ((D O � N y � (D O 1"r 4 .. ............._ n ............... r u. r n ... ,,,,,,,, 00 0 _Q ^W Y� W L v � N ........_ - `.' ...... o Co O Cl) 0 00 = -, r =r-, � 0 _ '* � oo (D CL (D U) C = CL a1 CL CL n_� N W W 00 ......... Cl) 0 = C 3 O h y f, (D X W (D O CD : CL _ - .... ...... _ to CL Cr j V/ i» N 0 -0--1 M waN — o m OD --J 0) cn W N � p yO o O D> oowO� =A m c O r > � ( a�(D -3 5 U + CD � Nu I 0 CD � =3 coCl) m D v � CD o � 0 m. 0 N 0 N > '-' o (D � n ;u CD (D � (m rt CD CD � 6 k W (p z <C F CDD co to m (D m a (n m N vim, r N N O (D 0 N N nn N O O 00 O O 0, O G) � N O ...... .... ...... _ 00 OD CO (A) V -I O 0 -� -h 0 C N 0 Ul O O cn -, = a _ (D (D N N Cl) r+ N O CQ N N O O O (0 31 7 �' W m cn o o a a� cfl (D ._.......... ........ N N N cn 00 N O O W ,� CD O 00 Gi W 1 � N �- O j 00 O OD O O —I -' N �+ •� O O O O O 3 O CCD O N O (1) r sZ I ai (D = Q WW N W (3l -n r*O O O O O O —1 O O 3 � O O O Q 11) ----- -- -LLI to 1� BOARD OF DIRECTORS Please list names of members and officers of the Board of Directors of this Agency (Attached an additional sheet, if necessary). If there are changes in the Board membership after the request is submitted, the City of Baldwin Park must be notified in writing. Name 1. Ofelia De Guzman Title President Term Expires 2019 2. Veronica Moreno Vice President 2019 3. Luisa Farrar Secretary 2020 4. Victor Chavez Community Relations 2020 5. Lupe Villanueva 2021 6. Hector Carrillo 2020 7. Preciosa Financial Secretary 2020 Marasingan I� _..._..... ... _...._...................... .....-...- ---------- .... _........ _.... 8. Ana Rosa Food Program Chair 2021 Rodriguez Name of Executive Director Fr. Michael Gutierrez CERTIFICATION All organizations that submit this application must provide accurate data concerning the number and income level of clients. Estimates are unacceptable except for start-up agencies. This stipulation shall also apply to all organizations, which are subsequently awarded funding. Any organization that falsifies information, either accidentally or intentionally shall be required to reimburse the City for any funds paid out and shall not be permitted to apply for funding in the future. AGENCY CERTICATION As the Executive Director, or duly authorized representative of St. John the Baptist Social Services (Agency), I certify that the applicant is fully capable of fulfilling its obligation under this proposal. This application is submitted to provide the services for the City of Baldwin Park as stated in this proposal. If this proposal is approved and funded, it is agreed that relevant federal, state and local regulations and other assurances, as required by the City of Baldwin Park, will be adhered to. I certify and declare under penalty of perjury that the information provided in this application is true and correct. Print Name Signature x 20-L37-4223 Phone Number --sus rwal erv�c ---gm.ail.com Email Address DirTitle of Officer ervics_ Officer Date Has the agency received notification of findings or concerns in the past 5 years? No If Yes, Please explain Please provide corrective actions taken: MAR -14-2006 12:17PM FROM -LA ARCHDIOCESE/FINANCE Internal Revenue Service District Dlr6ctor. !Date: July Y, 2005 Dear Ms. Dessingue, 213 637-6143 T-449 P.002/003 F-463 r Department of the Treasury F', Q. Box 2608 Clrrc(Inati ON -45201, i Peroan to 1�antact; -fames Glair ID * 31-d7ue TIsphonejNomber: 67'-9-5500 KAX, Number. 613-261-475'S In a ruling dated March 25, 1940, we meld that the agencies 6nd instrumentalities and all educatiOnat, charitable and r ii0ious institution's operatvd, SuPervisdd, or controlled by or in connection with the Roman Cath011c ChUr C T its the United States, its territories or pr s ess M,-- appearing in Tho OfFiciai Clatf7olic Dir' torrvj/ 1046, are entltle to e,°ter ip icn from federal income tax under the provisions of section 101,(6) of the lntern l*Revenue Grade of 1639, which oor responds to section 501 o p of tl'ro 1 Code, ThiSFUfingh0,S been updated annually to cover the activities added to or deieted frons the Directory, Tfre Officfaf CafitirorG L7rrecfory for 2006 shows fh ,names and addresses of all agenie « and in trumentalitles OnO Ell CdUcatIonar, char'i`t;able, and religious institutions operated by the Roman Catholfc Churr,6 in thQ United Staten, its torsi &ies and possessions, lr existorrce at the time the Directory was Published, It is underr'tood that eacdl of these las, a non-profit organization, that no part of etre net r,arnings then of inures to they benefit of aruy individual, that no substantial part of their activities is for Prorrrotion of legMation, and that none- are private foundations under sectivri 50g(a) of the Cade.. Based on all information submitted, we conclude that the agonoies and instrc+rnentalities and educational, cl i ri able, arid religigirs institutions operated, su ervlsed, or controlled by or in 6annechon witty the Raman Catholic Church in the Uniiterd Matas, its territories or posse Bions appearing in Pie Of cfal C'Whotic , frectr ry far' 2005 are exempt from federal income tax under section 501(c)(3) of tho Code. Donors may doduct contributions to -the agoncie.s, instrrrrrrentalitles and i'n titrjtjons rv,ferred to above, as provided' by section 170 of the rode, Requests, legacl s, devises, transfers or gdits to them or for their use are deductible for federal estate and gilt tax purposes under sections 2055, 2106, and 2522 of the Code. MAR -14-2006 12:16PM FROM -LA ARCHDIOCESE/FINANCE r2 - I 213 637-6143 T-449 P.003/003 F-463 Me. Deirdre Dessinque i 8eginninR Janwq Iw 084, u,nleo,, apecifloally axdeptod, you and your subbrdinaton fta pay tax urtd"er'the Federal I'nsiAroncs D n ributi6n ct"(Soioi it S Uri taxes) for etch employee who i:� paid . Og or more In s ceieflcTnr year. torr' ur si.i ordira rr, are ,not Mable for tlie W. tl'l di r fnO Feder l`uneli"t igyme It 1 a P° UTA). n ur By 0 May 31 r2,000, plea se en tflirteen ,(^) polies of 'The- Oirlolat Catholic Directur ' fug' 7. 1 to IRS `T" GI� in Cincinr atfa +Ohre c I opyto the Proce sin nipus in Cgrleh; two copies t* to the E0 Area Managers in Newark, l ro klyn, Chicago, St. Paul, Atlanta, Los An eles, fl -re IRS- ationsl Headquarters and the: bird ru 1. rninatior1s� Dallas. The conditions concerning thei retention of your -group exemption as set forth in our previous -determination letter of August 17, 1983, remain in full force and effect. SincQr$ly, �7'for'Jsnna Skt arca, Director, TFICE Cusfor'ner Account Services 6/11/2017, . Receipts Annual Parish Report FY 2017- St. John the Baptist 462 Schedule D_ Bankµ Account as of June 30, 2017 ._.. re^M _.... ._.... . I. Summary (Including club bank accounts, PTO bank accounts, etc.) mmmmmAccount M aPur Name of Bank Purpose: Savings/Checking p � Bank Balance i __..... ..__ w. w � m ...lam.... CHURCH i1ANK OF WEST CHECKINN G 11,002.90 ._ ..�.__....__. .......� ..�._.�_...� _ � _ BUILDING BANK OF WEST HECKING 172,63261,.... ....m�._......W REL. ....... ED BANK OF WEST CHECKING ^^^^^^^^^^^^ 21,952 60mm� _. FES�_..._ _..... NECKING 3,TIVAL ........��, BANK OF WEST 447.96 R=ES �=OF .. � �"�.������ _ _.._ ... .......� ._...�.�m..__�.m..m-....._ _���.. SOCIAL SERV�1mmBANK OF WEST CHECKING 1,594.6 � SHOP �� AST NK OF WE�' Ci -ii CICING � � 7,902 50 GIFT ,g. 0.00 ..... .. �_�..._._. �.�...�_ �....��:::.._.� �_ .........� �.... .. .� ��� 0.00 Schedule E II. Reconciliation Book Balance as of June 30, 2017 Account Bank Balance Deposits in Transit Outstanding Checks Other Book Balance __. ............ _._ _ .. _ ._ ...._......� _ _. .. w... m. .. .. - CHURCH 11,002.90 110.00 E n .26, 0250.00] -14,912.16 BUILDING .w...172,632�6„i V ....6 33 IT ^ ^ „297,700 00 0.00 -8E.4 I.. REL ..E......D . mm..._..._. 21,952.601 i ...... — — 0 00 .w W ..._. 150.00 447 96IT 0.00 1,042 22 0 00� 2,405.74L 3, ..: � �. �. _ _� . �� I 1SOCIAL SERVICES 1,594.61 _ _ 0.00] 1,379.02 .215.65 .........-n — !....... 0W'W0O� ,........mm..__.0.00 ........ 7,902.50 ___._... 0.00.___ 0,04 0.00...,, 0.00 0.00�� o oa �0.00�0.001 o 00 .:.:_...._. $0 00 $17,423 27 Total 218 53 ..�...... __ .... _. _ ........_ $ , . 3 24m$125 186.33 326 296 3 m Annual Parish Report FY 2017- St. John the Baptist 462 Questions 1. Are there any Bank Accounts other than those in the name of the.� parish or the diocese? (Including club bank accounts, PTO bank accounts, etc.) ._No 2. How many Catholics are in your parish? 20,000 3. How many Catholic families are in your parish? 10,000 ...........�I d. PIc-drip (nnitni rmmnninn P111/2017, . Receipts ... .......... _ .. Total Properties Purchased (103291) $0.00 _.._... ....� III. Ltst any properties es(land and/or buildings only) sold during the fiscal year and the purchase price. .. _. ...p_. ...... 0.001 ;m. _...0.00 Total Properties Sold (472501-492501) $0.00 Annual Parish Report FY 2017- St. John the Baptist 462 ME= Fr. Michael Gutierrez Michael Ward BA TIST IAL 5 R"IC Ir& L1zgtjpLj_fy A,jw As a part of St. John the Baptist Catholic Church, St. John the Baptist Social Services does not have its own by-laws. It operates as part of the parish which itself operates under the regulations, authority, and oversight of the Archdiocese of Los Angeles. The Archdiocese is a registered Corporation Sole under the laws of the State of California. Charter Rf Articles of Incor oration As a part of St. John the Baptist Catholic Church, St. John the Baptist Social Services does not have its own charter of articles of incorporation. It operates as part of the parish which itself operates under the regulations, authority, and oversight of the Archdiocese of Los Angeles. The Archdiocese is a registered Corporation Sole under the laws of the State of California. St. John the Baptist Catholic Church was established in 1946. ITEM NO. STAFF REPORT m IVi, z TO: Honorable Mayor and City Councilmembers ioc;or FROM: Shannon Yauchzee, Chief Executive Officer Gustavo Romo, Director of Community Development m, ,VALLEY � � � DATE: March 7, 2018 SUBJECT: CONSIDERATION OF TECHNICAL STUDY PREPARATION TO CREATE THE BALDWIN PARK COMMUNITY CHOICE AGGREGATION SUMMARY This report seeks City Council consideration and direction to prepare a technical study for the creation of the "Baldwin Park Community Choice Aggregation" (BPCCA). FISCAL IMPACT The cost of $63,000 for the technical study would be funded by the City's Future Development Fund. This cost would be recovered through any realized energy savings only if the City decides to establish the CCA. RECOMMENDATION Staff recommends that Council: 1. Approve and adopt Resolution No. 2017-202, entitled "Resolution of the City Council of the City of Baldwin Park to Conduct a Technical Study to Evaluate a Community Choice Aggregation with California Choice Energy Authority (CCEA);" and 2. Authorize the Chief Executive Officer to engage California Choice Energy Authority to conduct a Community Choice Aggregation Technical Study for a cost not to exceed $63,000; and 3. Authorize the Chief Executive Officer, or his designee, to request the release of load data from Southern California Edison (SCE); and 4. Authorize the Finance Director to appropriate $63,000 from the Future Development Fund (Fund 200) and perform the required budget adjustments for this project. BACKGROUND The City of Baldwin Park has been investigating the benefits and costs of establishing a Community Choice Aggregation (CCA) that would not only assist the City in achieving its environmental goals but could also create new energy revenues and provide the City with greater control over the electricity supply for the city of Baldwin Park The potential benefits in creating a CCA include the pursuit of reducing greenhouse gas (GHG) emissions, increasing local renewable energy generation, and increasing local job creation as compared to continuing service with current electricity provider Southern California Company (SCE). CCAs are local, not-for-profit governmental programs that procure electrical power on behalf of its residents, businesses, and governmental entities. The primary objective of a CCA is to give communities a choice in energy providers and provide a way for local governments to offer a greater proportion of renewable energy, thereby reducing GHG emissions. In August and October of 2017, this proposal was presented for consideration to the City Council. Due to the fact that the County was also pursuing a similar joint venture program, the Council elected to wait Community Choice Aggregation March 7, 2018 Page 2 until a study that was being conducted by UCLA, known as the "Luskin Study", was completed, which would evaluate the benefits of these programs. The study has since been completed and will be presented by the proponent of the BPCCA as part of tonight's presentation and summarized in the next section of this report. As previously reported, the Cities of Lancaster, Apple Valley, and Pico Rivera are currently operating CCAs in Southern California Edison territory. The City of Lancaster CCA, called "Lancaster Choice Energy," has been operated by the California Choice Energy Authority (CCEA) since 2015, and the City of Pico Rivera, operating as the "Pico Rivera Innovative Municipal Energy" or "PRIME," joined in September 2017. In addition to Lancaster and Pico Rivera, the City of San Jacinto is an Associate Member of CCEA. San Jacinto completed its technical study and California Public Utilities Commission filings, and is set to launch in April 2018. The city of Rancho Mirage is the forth CCEA Associate Member, launching in May 2018. Palmdale and Santa Monica have also engaged CCEA to perform a CCA technical study. The benefits of establishing a CCA are: 1. City energy revenues: The City of Lancaster is projected to yield $1.4+ in net operating energy revenues from their CCA. These CCA funds have assisted the City of Lancaster in installation of electric metro buses, solar charging stations, economic development incentives sand many other energy projects throughout the City. 2. Control over the energy content: The CCA will provide the City with the opportunity to establish the renewable energy content mix of the City's energy supply. More renewables means lower GHG emissions. 3. Control over energy rates (tariffs): The City will be able to create special energy tariffs for certain industries that can be used as an economic development tool to attract or retain new business to the City. For example, the City can reduce the energy rates for a certain class of energy users/businesses to encourage businesses to relocate to Baldwin Park. To establish a CCA, the City of Baldwin Park will should first conduct a technical study to determine how much energy load the city has and calculate the estimated annual costs and revenues of operating the proposed CCA. The cost of the technical study with the CCEA is $63,000. At the conclusion of the technical study, the City will be prepared to file with the California Public Utilities Commission to establish the City as a Community Choice Aggregate. The initial step of the technical study requires the City to request the aggregate energy data from SCE. Specific non -disclosure and energy request forms are required to be completed and submitted to SCE are attached to this staff report. The feasibility study proposed would provide all of the studies, resolutions, and reports necessary to file with the CPUC to "certify" the Community Choice Aggregation for the City of Baldwin Park. UCLA/"Luskin Study" Findings The City of Santa Monica commissioned a report by the UCLA Luskin Center for Innovation to analyze three CCA alternatives before Santa Monica: to join 1. Los Angeles County Community Choice Energy (LACCE), 2. South Bay Clean Power (SBCP) or 3. California Choice Energy Authority (CCEA). The Community Choice Aggregation March 7, 2018 Page 3 report was released in December 2017. Since Baldwin Park is not considering South Bay Clean Power, we will focus on the findings comparing LACCE and CCEA. In summary, the Luskin Study concludes the greatest difference lies in control and risk. Control: In the LACCE model, Baldwin Park would have one board position, on a board that currently has 27 members (with additional agencies at various stages of consideration) that span both Los Angeles and Ventura counties. The size of the board would result in less decision-making influence for Baldwin Park. In addition, in the LACCE program, revenues that are collected from Baldwin Park customers are collected by SCE and remitted to LACCE along with all other revenues from the other participating cities and counties. By comparison, in the CCEA program, Baldwin Park establishes its own CCA program, and contracts with CCEA for services. It maintains full control of its program (the City Council is the board for the CCA). Revenues paid by customers are collected by SCE and remitted into Baldwin Park's own bank account, for the benefit of Baldwin Park's CCA program. The technical study being recommended will inform the City Council as to the revenue potential of a Baldwin Park CCA. Risk: As a separate legal entity, LACCE provides the greatest protection from risk in operating a CCA for its members. In the CCEA program, since members establish their own CCAs, they do bear some level of operating risk. However, those risks can, and are, mitigated through operating policies, contractual language and following best practices. These are in place for its current operating Associate Members and have proven effective in protecting the cities. The report also discusses a potential reduction in economies of scale in purchase power with CCEA; however, this finding has not yet had any analysis to determine whether this is the case. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES Council may choose to not to move forward with the technical study and, therefore, not create a CCA. ATTACHMENTS #1. Southern California Edison Community Choice Aggregator Non -Disclosure Agreement (Form 14- 769) #2. Southern California Edison Community Choice Aggregator Service Declaration (Form 14-770) #3. California Choice Energy Authority Professional Services Agreement #4. Luskin Study (aka, UCLA Report) #5. Resolution No. 2017-202 ATTACHMENT #1 Southern California Edison Community Choice Aggregator Non - Disclosure Agreement (Form 14-769) tl W; p X21 64 rum CAL¢ralmaA I'DISON An A'111tlVN IN'l1iH.!'A'fIONAI. CuinW�ny Southern California Edison Revised Cal. PUC Sheet No. 57117-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 51040-E (To be inserted by utility) Advice 3243-E Decision -- _ ........................� 1C15 COMMUNITY CHOICE AGGREGATOR NON -DISCLOSURE AGREEMENT Form 14-769 Issued by R,.,O.,„N„ichols Senior Vice President Sheet 1 (To be inserted by Cal. PUC) Date Filed Jul 8, 2015 Effective Oct 1, 2015 Resolution LiSOUTHERN CALIFORNIA EDISON An EDISON INTERNATIONAL Company COMMUNITY CHOICE AGGREGATOR NON -DISCLOSURE AGREEMENT This Non -Disclosure Agreement ("Agreement") is entered into by and between Southern California Edison Company (SCE) ("Utility") and ,_ __ _... _ .... , a (T) [describe political entity] Community Choice Aggregator (T) ("CCA") as of ("Effective Date"). This Agreement is executed pursuant to California Public Utilities Commission ("CPUC") Order Instituted Rulemaking ("OIR") 03-10-003, California Public Utilities Code ("PU Code") Section 366.2 et seq., and applicable Utility tariffs (as modified hereafter from time to time). As used herein the Utility and CCA may each be referred to individually as a "Party" and collectively as (T) "Parties." The CPUC has determined that CCA may obtain specified confidential customer information from Utility pursuant to Tariff Schedules Community Choice Aggregation — (T) Information Fees ("CCA -INFO") and Community Choice Aggregation — Service Fees ("CCA- (T) SF") (as modified hereafter from time to time) as a CCA, as defined by PU Code Section (T) 331.1, solely in order to investigate, pursue or implement Community Choice Aggregation (D) Services pursuant to PU Code Section 366.2, et seq. or solely to administer energy efficiency (N) programs in the CCA's geographic territory upon CPUC authorization pursuant to PU Code (T) section 381.1 ("CCA Service"). The provisions of this Agreement and Schedules CCA -INFO (T) and CCA -SF govern the disclosure of Utility's confidential customer information to CCA (T) ("Disclosure Provisions"). The Parties hereby mutually agree that: Subject to the terms and conditions of this Agreement, current proprietary and confidential information of Utility regarding customers of Utility ("Utility Customers") may be disclosed to CCA from time to time in connection herewith as (D) provided by the Disclosure Provisions and solely for the purpose of CCA Service. (D) Such disclosure is subject to the following legal continuing representations and (T) warranties by CCA: (a) CCA represents and warrants that, pursuant to PU Code Section 331.1, (1) it is either (i) a city, county, or other entity as defined in PU Code Section 331.1 whose governing board has elected to combine the loads of its residents, businesses, and municipal facilities in a community wide electricity buyers, or (ii) a city, county, or other entity as defined in PU (D) Code Section 331.1 that intends to actively investigate or pursue delivery (N) of electric service to customers located within the geographic territory of (T) the CCA; and (2) that to investigate, pursue or implement CCA Service, it (T) requires certain Confidential Information, as defined in Section 2, below; Form No. 14-769 7/2015 Page 1 of 6 (b) CCA represents and warrants that it has all necessary authority to enter into this Agreement, and that it is a binding enforceable Agreement according to its terms; (c) CCA represents and warrants that the authorized representative(s) executing this Agreement is authorized to execute this Agreement on behalf of the CCA; and (d) CCA confirms its understanding that the information of Utility Customers is of a highly sensitive confidential and proprietary nature, and that such information will be used as contemplated under the Disclosure Provisions solely for the purposes of investigating, pursing or implementing CCA Service, and that any other use of the information may permit Utility to suspend providing further information hereunder. (e) CCA represents and warrants that it will implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the Confidential Information from unauthorized access, destruction, use, modification, or disclosure, and prohibits the use of the data for a secondary commercial purpose not related to CCA Service or energy efficiency purposes without the customer's prior consent to that use. 2. The confidential and proprietary information disclosed to CCA in connection herewith may upon request include, without limitation, the following billing information about Utility Customers: Customer -specific information from the current billing periods as well as prior 12 months consisting of: service account number, name on service account, service address with zip code, mailing address with zip code, email address, telephone number, meter number, monthly kWh usage, monthly maximum demand where available, electrical or gas consumption data as defined in PU Code Section 8380, other data detailing electricity or needs and patterns of usage, Baseline Zone, CARE participation, End Use Code (Heat Source) Service Voltage, Medical Baseline, Meter Cycle, Bill Cycle, Level Pay Plan and/or other plans, Horse Power Load and Number of Units and monthly rate schedule for all accounts within the CCA's geographic territory (collectively, "Confidential Information"). Confidential Information shall also include specifically any copies, drafts, revisions, analyses, summaries, extracts, memoranda, reports and other materials prepared by CCA or its representatives that are derived from or based on Confidential Information disclosed by Utility, regardless of the form of media in which it is prepared, recorded or retained. 3. Except for electric usage information provided to CCA pursuant to this Agreement, Confidential Information does not include information that CCA proves (a) was properly in the possession of CCA at the time of disclosure; (b) is or becomes publicly known through no fault of CCA, its employees or representatives; or (c) was independently developed by CCA, its employees or representatives without access to any Confidential Information. (T) (T) (N) (N) 4. From the Effective Date, no portion of the Confidential Information may be disclosed, disseminated or appropriated by CCA, or used for any purpose (T) other thanfor CCA Service as permitted under this Agreement and the Disclosure Provisions. Form No. 14-769 7/2015 Page 2 of 6 5. CCA shall, at all times and in perpetuity, keep the Confidential Information in the strictest confidence and shall take all reasonable measures to prevent unauthorized or improper disclosure or use of Confidential Information. CCA (N) shall implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the Confidential l Information from unauthorized access, destruction, use, modification, or disclosure and prohibits the use of the data for a secondary commercial purpose not related to CCA Service. Specifically, CCA shall restrict access to (N) Confidential Information, and to materials prepared in connection therewith, to those employees or representatives of CCA who have a "need to know" such Confidential Information in the course of their duties with respect to the CCA (T) Service and who agree to be bound by the nondisclosure and confidentiality obligations of this Agreement, provided, however, that, an Energy Service Provider, agent, or any other entity, including entities that provide both direct access (as codified in Assembly Bill No. 1890, Stats. 1996, ch. 854) and CCA (T) Service shall limit their utilization of the information provided to the purposes for which it has been provided and shall not utilize such information, directly or indirectly, in providing other services, including but not limited to Direct Access services, in order to effectuate the obligations of this Agreement. Prior to disclosing any Confidential Information to its employees or representatives, CCA shall require such employees or representatives to whom Confidential Information is to be disclosed to review this Agreement and to agree in writing to be bound by the terms of this Agreement by signing the "Non -Disclosure Agreement for CCA Employees or Representatives" form attached as Exhibit A hereto. CCA shall provide Utility with copies of the signed Exhibit A forms at Utility request. CCA shall also provide Utility with a list of the names, titles, and addresses for all persons or entities to which Confidential Information is disclosed in connection herewith ("Disclosure List"). This Disclosure List shall be updated by CCA on a regular basis, and will be provided to Utility once each quarter at a minimum. 6. CCA shall be liable for the actions of, or any disclosure or use by, its employees or representatives contrary to this Agreement; however, such (T) liability shall not limit or prevent any actions by Utility directly against such employees or representatives for improper disclosure and/or use. In no event shall CCA or its employees or representatives take any actions related to Confidential Information that are inconsistent with holding Confidential Information in strict confidence. CCA shall immediately notify Utility in writing if it becomes aware of the possibility of any misuse or misappropriation of the (T) Confidential Information by CCA or any of its employees or representatives. (T) However, nothing in this Agreement shall obligate Utility to monitor or enforce CCA's compliance with the terms of this Agreement. Form No. 14-769 7/2015 Page 3 of 6 7. CCA shall comply with the consumer protections and requirements concerning (N) subsequent disclosure and use of Confidential Information pursuant to CPUC (N) Decision No. 12-08-045. (N) 8. CCA acknowledges that disclosure or misappropriation of any Confidential (T) Information could cause irreparable harm to Utility and/or Utility Customers, the amount of which may be difficult to assess. Accordingly, CCA hereby (T) confirms that Utility shall be entitled to apply to a court of competent (T) jurisdiction or the CPUC for an injunction, specific performance or such other relief (without posting bond) as may be appropriate in the event of improper disclosure or misuse of its Confidential Information by CCA or its employees or representatives. Such right shall, however, be construed to be in addition (T) to any other remedies available to Utility, in law or equity. 9. In addition to all other remedies, CCA shall indemnify and hold harmless (T) Utility, its affiliates, subsidiaries, parent company, officers, employees, or agents from and against and claims, actions, suits, liabilities, damages, losses, expenses and costs (including reasonable attorneys' fees, costs and disbursements) attributable to actions or non -actions of CCA and/or its employees and/or its representatives in connection with the use or disclosure of Confidential Information. 10. If, at any time, CCA ceases its investigation, pursuit or implementation of community choice aggregation pursuant to PU Code Section 366.2 et seq., CCA shall promptly return or destroy (with written notice to Utility itemizing the materials destroyed) all Confidential Information then in its possession at the request of Utility. Notwithstanding the foregoing, the nondisclosure obligations of this Agreement shall survive any termination of this Agreement. (T) 11. This Agreement shall be binding on and inure to the benefit of the successors and permitted assigns of the Parties hereto. This Agreement shall not be assigned, however, without the prior written consent of the non -assigning Party, which consent may be withheld due to the confidential nature of the information, data and materials covered. (T) 12. This Agreement sets forth the entire understanding of the Parties with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, understandings, communications, correspondence and representations, whether oral or written. This Agreement shall not be amended, modified or waived except by an instrument in writing, signed by both Parties, and, specifically, shall not be modified or waived by course of performance, course of dealing or usage of trade. Any waiver of a right under this Agreement shall be in writing, but no such writing shall be deemed a subsequent waiver of that right, or any other right or remedy. Form No. 14-769 7/2015 Page 4 of 6 13. This Agreement shall be interpreted and enforced in accordance with the laws (T) of the State of California, without reference to its principles on conflicts of laws. 14. This Agreement shall, at all times, be subject to such changes or modifications (T) by the CPUC as it may from time to time direct in the exercise of its jurisdiction. IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this Agreement as of the Effective Date. SOUTHERN CALIFORNIA EDISON COMPANY BY: TITLE: [CCA name] BY: TITLE: Form No. 14-769 7/2015 Page 5 of 6 EXHIBIT A NON -DISCLOSURE AGREEMENT FOR CCA EMPLOYEES OR REPRESENTATIVES declare under penalty of perjury that (1) 1 am employed as ..... ...... (title) at employer and address); and (2) 1 have personally reviewed the attached COMMUNITY CHOICE AGGREGATOR NOW DISCLOSURE AGREEMENT relating to disclosure and use of Confidential Information (as defined therein) and I agree to be bound by its provisions. Signed: Print Narne: Dated: Form No. 14-769 7/2015 Page 6 of 6 ATTACHMENT #2 Southern California Edison Community Choice Aggregator Service Declaration (Form 14-770) �j"' 111HIIINC111111IN14 EDNSON °~~~~~~"~^ ~io~ ieEdimun Revised Cal. PUC Sheet No. 49644-E Rosemead, California (U 338-E) Cancelling Original Cal. PUC Sheet No. 37970-E** (To bainserted byutility) Advice 2705-E Decision 105 COMMUNITY CHOICE AGGREGATION SERVICE DECLARATION Form 14-770 Issued by Vice President (To beinserted byCal. PUC) Date Filed Mar 2, 2012 Effective Mav 5 2012 Resolution DECLA ATION BY MAYORn OR CHIEF COUNTY ADMINISTRATOR"�mRECARDING' ,wl UIT O IMPLEMENTATION �1"� � NTATII N..._!��I� COMMUNITY ('II.I 1.,E AG O SERVICE I, [name], state as follows: 1. I am the mayor or chief administrator and authorized to make this (T) declaration on behalf of ._.... IT._...._.. _........._........ [name of city, county or other entity(ies) that may become a community choice aggregator as defined in Public Utilities Code Section 331.1]. (T) (D) 2. I understand that all of the confidential information provided by Southern California Edison Company to ., _......,,,,, (entity named above) is subject to the terms and conditions of the Nondisclosure Agreement between these two entities and is provided for the sole purpose of enabling .... mm mmm (entity named above) to investigate, pursue or implement (T) community choice aggregation under Section 366.2 of the California Public (T) Utilities Code. I declare under penalty of perjury under the laws of the State of California (T) that the foregoing is true and correct. Executed this day of _.._ . ..,, at, .... .........-4 (city, state). [signature] Rev 3/12 Form 14-770 ATTACHMENT #3 California Choice Energy Authority Professional Services Agreement AGREEMENT FOR CONSULTING SERVICES THIS AGREEMENT FOR CONSULTING SERVICES ("Agreement") is made and entered into as of March 7, 2018, by and between the City of Baldwin Park, a California municipal corporation ("City"), and the California Choice Energy Authority, a public entity created pursuant to the Joint Exercise of Powers Act (Cal. Gov't. Code § 6500 et seq.) ("CCEA") (City and CCEA are individually referred to as "Party" and collectively "Parties"). RECITALS WHEREAS, City desires to be a Community Choice Aggregator ("CCA"), as defined in Section 331.1 of the California Public Utilities Code, to provide energy to its residents and businesses; and WHEREAS, City desires that CCEA undertake certain implementation support services; and WHEREAS, CCEA desires to facilitate access to the professional, technical and other knowledge and expertise of certain CCEA members, their employees, contractors and/or consultants in connection with the formation of the City's CCA. NOW, THEREFORE, the Parties agree as follows: 1. Recitals. The recitals set forth above are true and correct and are hereby incorporated into this Agreement by reference, as though set forth in full herein. 2. Description ation of Work. CCEA shall perform or facilitate performance of the services ("Services") set forth in the "Scope of Services and Payment Schedule" attached hereto as Exhibit "A" and incorporated herein by this reference ("Scope of Services"). 3. Obligations of City. City shall pay to CCEA an amount not to exceed $63,000 for and in consideration of CCEA's performance of the Services. City shall pay CCEA within thirty (30) days of CCEA submitting an invoice to City. 4. Obli-►ations of CCEA. CCEA shall perform or facilitate performance of the Services. CCEA's Board of Directors, or its designee, shall determine which CCEA employee(s), contractors and/or consultants shall perform the Services. 5. 'EffectiveDate. This Agreement shall become effective and binding upon the Parties at such time as all of the signatories hereto have signed the original or a counterpart original of this Agreement ("Effective Date"). 6. Terni Tern'lination. The term of this Agreement shall commence as of the Effective Date and expire upon completion of and final payment for the Services, or upon the earlier termination of this Agreement as set forth herein. Either Party may terminate this Agreement at any time without cause by giving thirty (30) days written notice to the other Party of such termination and specifying the effective date thereof. In the event of termination of this Agreement, CCEA shall be paid on a prorated basis for Services completed. 7. laadeninificatiott. a. City agrees to indemnify, defend and hold harmless CCEA, its board of directors, officers, employees, members, consultants and members' employees, contractors and/or consultants from and against any and all claims, demands, actions, losses, damage, injuries, and liability, director indirect (including any and all costs of investigation and defense, settlement and awards, and attorney's fees, in connection therewith), based or asserted upon any alleged negligent or willful misconduct of City, its officers, employees, agents or representatives, arising out of or in any way relating to this Agreement. b. CCEA agrees to indemnify, defend and hold harmless City from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs of investigation and defense, settlement and awards, and attorney's fees, in connection therewith), based or asserted upon any alleged negligent or willful misconduct of CCEA arising out of or in any way relating to this Agreement or performance of the Services. 8. Lorce Mu '. Notwithstanding the provisions of this section, CCEA shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove CCEA's work promptly, or by reason of delay or faulty performance by City, its contractors, governmental agencies, or Southern California Edison, or by reason of any other delays beyond CCEA's control, or for which CCEA is without fault. 9. All reports, studies and other documents that are prepared by CCEA, its employees, contractors and/or consultants in the course of performing the Services required by this Agreement, and are specific to City's CCA, shall be the property of City upon City satisfying all payment obligations imposed but this Agreement. 10. Data Provided to 1:".:E.A. City shall provide to CCEA all data, including reports, records and other information, in City's possession, custody or control, which is reasonably requested by CCEA and which is required to facilitate the timely performance of the Services. 11. Insurance Reg uirernents. a. Prior to CCEA's commencement of any Services, CCEA, at CCEA's own cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies: i. General Liability Coverage. CCEA shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence, and two million dollars ($2,000,000) in the aggregate, for bodily injury, personal injury and property damage. CCEA shall provide insurance on an occurrence, not claims -made basis. ii. Automobile Liability Coverage. CCEA shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the CCEA arising out or of in connection with the Services, including coverage for owned, hired and non -owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and one million dollars (1,000,000) in the aggregate. b. As of the execution of this Agreement, City has reviewed the coverages secured by CCEA from Special District Risk Management Authority and has determined such coverages to be satisfactory to City. CCEA agrees to ensure that the most current certification of coverage is on file with the City at all times during the term of this Agreement. 12. ��t���leILendlent Contractor's Status of CCEA. CCEA shall at all times during the term of this Agreement remain, as to City, a wholly independent contractor and shall perform the services described in this FA Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors. Neither City nor any of its agents shall have control over the conduct of CCEA or any of CCEA's employees or agents, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by City or CCEA or by any third person to create the relationship of principal and agent and CCEA shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. CCEA shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall CCEA have any authority, expressed or implied, to bind City to any obligation whatsoever. 13. Professional Abilit: of CC I��Aµ Warl,�ant;� l aamiliai•ity witli Work; Pea niits and Licenses. a. CCEA warrants that all Services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. b. By executing this Agreement, CCEA warrants that it has thoroughly investigated and considered the work to be performed, investigated the issues regarding the Scope of Services and carefully considered how the work should be performed. C. CCEA represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement. The Parties agree that CCEA shall not be required to obtain a City business license. 14. Notices. Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered in person or by certified mail, return receipt requested, and addressed as listed below. All notices required by this Agreement are effective on the day of receipt, unless otherwise indicated herein. CCEA: Mark Bozigian, Executive Director California Choice Energy Authority c/o City of Lancaster 44933 North Fern Avenue Lancaster, California 93534 City: Shannon Yauchzee, Chief Executive Officer City of Baldwin Park 14403 E. Pacific Avenue Baldwin Park, CA 91706 15. Resolution ol'' htisuies. Disputes regarding the interpretation or application of any provision of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. 16. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to CCEA in connection with the performance of this Agreement shall be held confidential by CCEA to the maximum extent permitted by law. Except to the extent that such information constitutes a public record pursuant to the California Public Records Act, such materials shall not, without prior written consent of City, be used by CCEA for any purposes other than the performance of the Services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the Services. Nothing furnished to CCEA which is otherwise known to CCEA or is generally known, or has become known, to the related industry shall be deemed confidential. CCEA shall not use City's insignia or photographs relating to the project for which CCEA's Services are rendered without City's prior written consent. 17.CCEA's-'Books, and Records. CCEA shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three years, or for any longer period required by law, from the date of termination or completion of this Agreement. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at reasonable times during regular business hours, upon written request by City's City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City's address indicated for receipt of notices in this Agreement when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at CCEA's address indicated for receipt of notices in this Agreement. 18. Severability. If any provisions of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited. 19. Amendment. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon mutual written approval by the Parties. 20. Waiver. No waiver of any provision of this Agreement shall be binding, unless executed in writing by the party making the waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement. 21. Governing :Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Los Angeles County, California. 22. Litigation Expenses and Attorile s Fees. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 23. Entire Axre*,Tll ell t. This Agreement supersedes any and all other agreements, either oral or written, between the Parties with respect to the subject matter of this Agreement. This Agreement contains all of the covenants and agreements between the Parties with respect to the subject matter of this Agreement, and each Party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party except those covenants and agreements embodied in this Agreement. No agreement, statement, or promise not contained in this Agreement shall be valid or binding. 4 24. loon-:Uabilitv of ffocco�s and Enx oloo ees. No officer or employee of CCEA or City shall be personally liable in the event of any default or breach of the terms of this Agreement. 25. Captions and I Icadin s. The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading. 26. L'01111tCl- arts. This Agreement may be executed in counterparts by each of the Parties. Each such counterpart shall constitute an original and all such counterparts so executed shall constitute one Agreement, binding upon the Parties, notwithstanding that all of the Parties are or may not be a signatory to the original or the same counterpart. Each counterpart shall have the same force and effect as if all such signatures were contained in one instrument. A facsimile copy shall be considered an original for the purposes of this Agreement. Facsimile or e-mail transmissions shall be deemed effective as originals. 27. No Third I'"art T Beroeficiaries. The Parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed. 28. Ansi annient and Snbcoonfil ingw a. The experience, knowledge, capability and reputation of CCEA, its principals and employees were a substantial inducement for City to enter into this Agreement. Assignments of any or all rights, duties or obligations of CCEA under this Agreement will be permitted only with the written consent of City. b. CCEA shall not subcontract any portion of the work to be performed under this Agreement without the written consent of City. If City consents to such subcontract, CCEA shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law. City expressly acknowledges that (i) CCEA is staffed by employees of the City of Lancaster, (ii) CCEA contracts with Pacific Energy Advisors for compiling data, load forecasting and preparation of pro formas and (iii) CCEA contracts with Bayshore Consulting Group Inc. for the preparation of implementation plans. City hereby expressly consents to performance of the Services pursuant to this Agreement by the persons and/or entities identified in the immediately preceding sentence. 29. I o ooaci °oal Ike ao cscatotives. a. Jason Caudle is designated as CCEA's principal representative ("CCEA Principal Representative") and is the person responsible for undertaking, managing and supervising performance of the Services. CCEA Principal Representative's experience, knowledge, capability and reputation are a substantial inducement for City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of CCEA Principal Representative shall not be reassigned, without express written consent of both Parties. b. Shannon Yauchzee, Chief Executive Officer, shall be City's principal representative ("City Principal Representative") for purposes of communicating with CCEA on any matter associated with the performance of the Services set forth in this Agreement. 30. Ll entations of Parties and Persons:L+ cc,ntin A oweernenf;. Each Party hereby represents that all necessary and appropriate actions of its governing body have been taken to make this Agreement a binding obligation. Each person executing this Agreement warrants that he or she is duly authorized to execute this Agreement on behalf of and bind the Party he or she purports to represent. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 2 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized. CITY: Dated:... ,.._..,......... a. City of Baldwin Park Baldwin Park, CA ATTEST: Alejandra Avila, City Clerk APPROVED AS TO FORM: Robert Tafoya, City Attorney Manual Lozano, Mayor CCEA: Dated: CALIFORNIA CHOICE ENERGY AUTHORITY, a California joint powers authority ATTEST: CCEA Secretary APPROVED AS TO FORM: CCEA General Counsel Mark Bozigian, Executive Director 7 EXHIBIT "A" SCOPE OF SERVICES AND PAYMENT SCHEDULE Load Forecasting, Data Analysis, and Pro -forma Development $33,000 Aggregate load data requested from SCE. Once in receipt of the load data, a third party consultant, Pacific Energy Advisors (PEA), will provide the technical expertise to analyze the data, determine a load profile, estimate total usage, compare that to current market conditions, and prepare a pro -forma. Note that this is the initial pro -forma to submit in the Implementation Plan and only provides an estimate. The CCA cannot get the detailed load data from SCE until the Implementation Plan is certified by the CPUC. Preparation of the Implementation Plan, Ordinance and Statement of Intent to Form a CCA $20,000 An Implementation Plan and Ordinance must be prepared and adopted declaring a city's intent to form a CCA. This is a relatively straightforward process and does not commit Baldwin Park to any risk. The Implementation Plan will identify specific duties, address how Baldwin Park will interface with consultants and other third parties, and develop organizational structures which outline the operational functions and duties. This phase also includes incorporating and synthesizing all information created and obtained, and preparing the final Implementation Plan to be reviewed and approved by your City Council and thereafter submitted to the CPUC. Again, note that when approved, Baldwin Park still has no obligation to procure, sell or deliver energy. As with all Ordinances, it requires a public hearing with two readings. The ordinance is non-specific to the price, terms and operations of the CCA. Proposal includes attendance at meetings with staff, City Council Study Sessions and City Council meetings as needed for a successful outcome. Administrative Support $10,000 CCEA staff support throughout the formation process including interfacing with Southern California Edison, Public Utilities Commission and technical consultants, coordination of meetings with staff and City Council, maintaining project schedule and ensuring that all deliverables are met according to CCA launch timeline. Total Costs for Formation Work..................................................................... $63,000.00 ATTACHMENT #4 Luskin Study (aka, UCLA Report) LICLA Luskin qchonlofNiblic A Luskin Center Table of Contents EXECUTIVESUMMARY ....................»,......»».....».,.......... ,.,,...... ............. ...... __ 3 EvaluativeCriteria............................»,.»....,..............,.,,„„,.,».».,.......,,.,»»...... 3 Overarching Considerations„.............».,.,»...,.............,.,,..,.»......,..,,.,..,.....4 An Assessment of the Options.................................................................... 5 CHAPTER1: INTRODUCTION...».............a...,..,..,,..........,,......,...,..,,,.,..........».,..... 7 CHAPTER 2: STATUS OF EACH OPTION...... ......................».»......, 10 2.1 Overview ................. ......... ................ ............ ,....,,....»,...,..... .... ....,*.,»... 10 2.2 Timelines and Operational Readiness .......».».. ......................»..,,. 13 2.3 Start and Termination Processes............................................................ 14 CHAPTER3: GOVERNANCE ............................ ....... ..... _....... ,. ......,..,,........ 16 3.1 Decision -Making Process............................................................».»»...».., 16 3.2 Reflecting Local Preferences ...................... ,,.............. .......... _ ....,,,,..»..... 20 CHAPTER 4: ENERGY PROCUREMENT................................................... .»,..» 22 4.1 Power Content and Rate Comparison..,....,,,,,.r......... .,.»............... 22 4.2 Category 3 Renewable Energy Certificates .................. »,»»»,,,....... 24 4.3 Exploring the 100% Renewable Option .................................»,....,.,,....,... 25 4.4 Energy Services and Third -Party Contracts—....., ... <.,».............................. 26 CHAPTER 5: ECONOMICS AND FINANCE..,.,»...»...»......................................»,..» 31 5.1 Startup Costs.. ... ».....»,........ ...........................................................*...,,.31 5.2 Economies of Scale in Operating Costs ..,.».......».,..» .................................. 33 5.3 Local Program Financing ............ .............»...,.,,,..,,„».,»..,....»..,»»,,,,,,......».35 CHAPTER 6: FUTURE CHALLENGES .................... ............. ...,...,,,,,...,»., 37 6.1 Legislative Risks.,................»..........................,,,,,,.......,..,,..,.,,,,.,»,. 37 6.2 Regulatory Risks: PCIA......................................................................... 39 6.3 Market Force Risks.....,.„.,.,....,M„».».,..»............................»....»,,,,,......,,,... 41 CHAPTER7: CONCLUSION .... z».............».,,......,....,»,....,,,..,.».,.,...........»».,».,,... 46 1 AUTHORSH111113, UCLA Luskin Center for Innovation Dr. J.R. DeShazo, principal investigator, co-author, and center director; Julien Gattaciecca, co-author and project manager; and Kelly Trumbull, co-author and researcher We would like to thank Garrett Wong and Ariana Vito of the City of Santa Monica for commissioning this report. We also wish to acknowledge contributions from staff with the three community choice aggregator alternatives focused on in this report. Specifically, the following dedicated individuals generously contributed their time to review the report and provide data and information essential to our analysis: Gary Gero and Bill Carnahan from Los Angeles Community Choice Energy (LACCE) along with LACCE consultants Gary Saleba and Anne Falcon from EES Consulting; Samuel Golding from Community Choice Partners, representing South Bay Clean Power; and Patti Garibay and Barbara Boswell from California Choice Energy Authority (CCEA) along with CCEA consultants John Dalessi and Brian Goldstein from Pacific Energy Advisors Inc. We also thank representatives from existing CCAs, including Katherine Hernandez from Pico Rivera Innovative Municipal Energy, and Amy Butte, member of the Santa Monica Task Force. Finally, we would like to thank our colleagues at the Luskin Center for Innovation: Colleen Callahan for reviewing and editing the report, and Christian Zarate for the report design and layout. IIIDISCLAIME 11 The UCLA Luskin Center for Innovation appreciates the contributions of the aforementioned individuals. This paper, however, does not necessarily reflect their views nor is an endorsement of its findings. Any errors are those of the authors. F01111-1 MOIREI riON Contact: ,aatac_dee l_uskin.ucla.edu or.ktrumballcuiuk�g�wacNa ...s.. UCLA Luskin Center for Innovation: , w v,,inr ovei.:No w . k muc.la _edLI. December 2017 by the Regents of the University of California, Los Angeles. All rights reserved. Printed in the United States. iii l Community choice aggregators (CCAs) are a new type of retail electricity provider that allows cities or counties to make decisions about what kinds of energy resources in which to invest in for themselves rather than relying on traditional investor-owned utilities. Since 2010, California communities have established nine CCAs. Additionally, over a dozen communities are actively exploring CCA options. Multiple CCA models have arisen out of this rapid growth. The City of Santa Monica commissioned this report by the UCLA Luskin Center for Innovation as an analysis of the following three CCA options that the City is considering: Join Los Angeles Community Choice Energy (LACCE), a Los Angeles County- wide CCA composed of all unincorporated areas and any city that wishes to join a larger, regional CCA effort; Initiate South Bay Clean Power (SBCP), a CCA designed for a group of South Bay and Westside Cities; or Create a single -city CCA through the services of California Choice Energy Authority (CCEA), which pools services for multiple single -city CCAs. Despite the Santa Monica focus of this report, the analysis may be relevant to other cities exploring similar options. For readers less familiar with CCAs, their status in California, and the opportunities and challenges they face, an earlier report by the UCLA Luskin Center for Innovation could provide a helpful introduction; see footnote.' Evaluative Criteria As a progressive community, the City of Santa Monica has ambitious environmental goals that involve decarbonization, green electricity, and local energy programs such as distributed energy generation, battery storage, electric vehicles, charging stations, energy efficiency, and demand response programs. With this in mind, the UCLA Luskin Center for Innovation compared all three CCA options using the following evaluative criteria that reflect the City's goals: Which CCA structure gives the most authority to Santa Monica to make decisions to achieve its environmental goals? Which option provides the most resilient structure to protect against future legislative, regulatory, and competition risks? Which option offers the greatest economies of scale that would support future opportunities? ' UCLA Luskin Center for Innovation (2017), The Promises and Challenges of Community Choice Aggregation in California. california-0 K Overarching Considerations The UCLA Luskin Center for Innovation identifies the following set of major considerations and tradeoffs to assist Santa Monica in its decision-making process. Operational Readiness An important practical consideration is the operational readiness associated with each option. LACCE is operationally ready and plans to launch in February 2018. SBCP is at an earlier, conceptual stage and will require significant effort and resources to become operational. CCEA recently provided Santa Monica with its feasibility study, the first step that would allow Santa Monica to form a single -city CCA through CCEA. Santa Monica could possibly launch its CCA in July 2018, provided some staff time and upfront costs from the City. Autonomy versus Economies of Scale Generally, an individual city's vote share will reduce as more members join their CCA. Chapter 2 of this report analyzes the potential dilution of Santa Monica's vote under different membership scenarios for LACCE and SBCP. Although LACCE members differ in size, all decisions will need a majority to pass and no one member could overturn any decision made by a simple majority. Weighted votes are unlikely based on the experience of existing multi -member CCAs, which tend to have very collaborative decision-making processes with ample time for discussion prior to a vote. Alternatively, larger CCAs do benefit from economies of scale in operating costs, as illustrated in Chapter 3. Therefore, Santa Monica may consider the tradeoffs between lower amounts of direct influence versus greater cost competitiveness. Yet economies of scale and autonomy are not necessarily mutually exclusive. Much will depend on the design and policies set by the CCA. Finally, larger CCA options could offer Santa Monica the ability to form coalitions with other likeminded member cities and influence the strategy and direction of the entire CCA. Market Competitiveness and Resiliency Chapter 6 of this report discusses specific regulatory, legislative, and market risks that CCAs may face in the future. We compare each option's risk management strategies and put them in perspective with comments we received from several industry specialists. General recommendations by each entity typically include establishing rate stabilization funds, paying off loans quickly, and actively participating with other CCAs in regulatory and legislative discussion at the state level. Planning ahead to mitigate risks is critical in an increasingly competitive electricity retail market. Our discussions with industry experts have emphasized the importance of a CCA achieving financial solvency as quickly as possible. From this financial perspective, there are potential benefits of being a member of a larger CCA. With a El likely greater competition and a more challenging energy market in the future, energy industry experts believe that being part of a larger CCA can offer competitive advantages when it comes to financing, contracting, and long-term energy procurement. Advanced Technical and Managerial Capacities Industry experts also recommend that Santa Monica consider the technical and managerial capacities of staff, consultants and vendors associated with each option, and their ability to integrate new, innovative strategies. An example of an innovative strategy is the horizontal integration of energy services for more efficient risk management, as recommended by the SBCP draft business plan. Since this type of advanced capacities is a recent development among CCAs, we have not yet been able to be evaluate costs and benefits in practice. However, we describe the importance of new capacities and include some suggestions from industry experts. An Assessment of the Options The following is our summarized assessment of Santa Monica's three options. Los Angeles Community Choice Energy will be a relatively large CCA with member cities across Los Angeles County. This may mean less influence for Santa Monica, in terms of its direct vote. However, this option could also provide the City with the greatest economies of scale and potential financial stability. LACCE's large size and associated financial capabilities probably best position Santa Monica to meet ambitious renewable energy and other environmental goals by avoiding long-term risks. Its county -wide membership also offers member cities the opportunity to collaborate, share resources, and potentially amplify their impact at local, regional, and state levels. As potentially the largest CCA in California, LACCE could have a strong voice on important legislative and regulatory discussions that lay ahead. South Bay Clean Power has become more a set of recommendations than an operationally ready option. SBCP's business plan includes innovative, sophisticated strategies for a next generation CCA, which others outside of SBCP could adopt. With no other currently committed members (some of the cities included in its feasibility study have since joined LACCE), SBCP would very likely be smaller than LACCE. This means that Santa Monica could have greater influence in decisions made by this CCA compared to LACCE, but would benefit from fewer economies of scale. In order to pursue this option Santa Monica may have to take the lead in creating it. California Choice Energy Authority's business model allows for members cities to have full autonomy over many important decisions such as rates, power mixes and local program investments. The City would also have to approve any long-term energy procurement contracts. However, some uncertainty remains regarding the amount of power the City would have over decisions taken by the CCEA's board regarding the approval of new members and the choice of third -party contractors for 9 energy procurement, scheduling operations, and data management. While CCEA staff have pledged to do their best to reflect the City's policy decisions and environmental goals, it may not be realistic to expect CCEA to change its approach to energy procurement and services based on one individual member's request. Additionally, Santa Monica would likely not benefit from the economies of scale offered by a greater CCA. 2 r ME � ' i'Q y The proliferation of CCAs across California has been exponential. As the figure below demonstrates, the state went from one CCA launch per year in 2014 and 2015, to two CCAs launches in 2016, four in 2017, and an expected eight in 2018. With the successful track record and differing business models of existing CCAs, municipalities now have the choice between several CCA alternatives. Figure 1. Timeline of CCA Lunches SCP CPSF SVCE RCEA 8? MCE LCE PCE AVCE PRIME fjga,rL� : Figure made by the UCLA Luskin Center for Innovation. The above acronyms from /eft to right are defined as follows; MCE, Marin Clean Energy; SCP, Sonoma Clean Power, LCE, Lancaster Choice Energy; CPSF, Clean Power San Francisco; PCE, Peninsula Clean Energy; SVCS, Silicon Valley Clean Energy; AVCE, Apple Valley Choice Energy; RCEA, Redwood Coast Energy Authority; and PRIME, Pico Rivera Innovative Municipal Energy. As each community has unique local needs and preferences, there is no CCA design that is universally ideal for every city and county across the state. With multiple proven cases of successful CCAs, the City of Santa Monica is naturally questioning which of the three available CCA options to pursue for the benefit of their residents: Join Los Angeles Community Choice Energy (LACCE), a Los Angeles County- wide CCA composed of all unincorporated areas and any city that wishes to join a larger, regional CCA effort; Initiate South Bay Clean Power (SBCP), a CCA designed for a group of cites in the South Bay and Westside sub -regions of Los Angeles County; or Create a single -city CCA through the California Choice Energy Authority (CCEA), which pools services for multiple single -city CCAs. Currently, Santa Monica (and most of the rest of Los Angeles County) receives electricity service from Southern California Edison (SCE), an investor-owned utility. Regardless of which CCA option Santa Monica chooses, they would continue to receive 7 transmission, delivery, and billing services from SCE. A CCA gives Santa Monica the opportunity to buy energy on behalf of its residents and, as a non-profit, to reinvest revenues from the program back into the community. Santa Monica has goals to achieve the highest percentage of renewables as soon as possible and to utilize the CCA's position and funds to support decarbonization and local energy programs such as distributed energy generation, battery storage systems, energy efficiency, demand response programs, and the electrification of its transportation system. Santa Monica has already specified a variety of environmental targets including: • Installing 300 public electric vehicle charging stations by 2022; • Reducing energy use in existing buildings by 50% by 2035; Implementing a Community Energy Challenge program by 2035; And achieving carbon neutrality potentially by 2050. This report evaluates the potential risks and benefits of the options, including how each could help Santa Monica achieve its stated goals, maintain a leadership role in the governance of the CCA, and minimize financial risks. In order to conduct this analysis for the City of Santa Monica, researchers with the UCLA Luskin Center for Innovation reviewed all relevant documents available and interviewed stakeholders and representatives of the three CCA options, as well as their consultants. We compared their recommendations, financial strategies and business plans, and discussed key elements with staff of existing CCAs as well as industry experts in energy procurement, regulatory and legal affairs, data management and billing. Chapter 2 provides the status and operational readiness of each option, the launch timelines, and the start and termination processes of each option. Chapter 3 discusses which CCA governance best provides Santa Monica with decision- making autonomy to achieve its environmental goals and better reflects its local preferences. We provide an analysis of Santa Monica's weighted vote share based on different membership scenarios. Chapter 4 examines the energy procurement strategy suggested by each option. While many decisions regarding power procurement have yet to be made by each option, we look at their estimated power content and forecasted rates. This report also looks at the energy policies suggested, including the use of unbundled Renewable Energy Certificates (Category 3), as well as the opportunity to enroll all of the City's customers into the 100% renewable product. Chapter 5 assesses how each option may impact Santa Monica's financial obligations in regard to startup and operating costs. We also compare each option's financial strategy with existing CCAs' financial reports to quantify the economies of scale. Finally, we look at each option's suggestions to support and finance the implementation of local energy programs. As it is important to consider the CCA's ability to provide benefits in the long term, chapter 6 identifies possible future legislative, regulatory, and market force risks that could decrease CCAs' competitiveness, and compares each option's mitigation strategies. We conclude by summarizing the strengths and tradeoffs of each option. 2 Los Angeles Community Choice Energy A motion by Supervisors Knabe and Kuehl in 2015 initiated the creation of Los Angeles Community Choice Energy (LACCE). The County Office of Sustainability, within the Los Angeles County Internal Services Department, took the lead in developing this CCA and now has a leading role in the implementation of this CCA. LACCE is a joint powers authority (JPA) composed of member cities and the unincorporated areas of Los Angeles County. LACCE has published its business plan, business plan update, implementation plan, and joint powers authority agreement.2 According to LACCE representatives, as of December 1, 2017 members include: • Unincorporated Los Angeles County • Alhambra • Calabasas • Carson • Claremont • Downey • Rolling Hills Estates • Sierra Madre • South Pasadena • West Hollywood Three cities (Agoura Hills, Beverly Hills, and Culver City) have adopted the first reading of the ordinance and have scheduled a second reading. Five other cities have scheduled a first reading of the ordinance (Hawthorne, Manhattan Beach, Paramount, Redondo Beach, and West Covina). At least seven other cities are considering joining LACCE. 2LACCE (2016). "County of Los Angeles Community Choice Energy Business Plan." II1 �"Jw I��aak,rr�ly JC'[;1.1�"_a:,a.,9lria,l6Nllyl fad tn; °'J SCI?pl i17 �u,J�wiu,�I.y.Tlf; LACCE (2017). "Los Angeles Community Choice Energy Business Plan Update." 9alp;tr_1�u n,I'=y.&rv;i`Ilc�aa ,klrl�k,61iyl,N t iraYt� in11x;y�INpaa;'a1C1�Ip9t,1:, u�,.� .9�:1(, ; LACCE (2017). "Los Angeles Community Choice Energy (LACCE) Community Choice Aggregation Implementation Plan and Statement of Intent." ipol',m-1srti ^ 4aut. . O. wy t#.` fir, rlr7 zbilr ZI�Ad t` 1.?I (1:wt'1i Il ra n 1+ I 'sr?01'9�Y; a l.'.� t 15 6'; LACCE. "Los Angeles Community Choice Energy Authority Joint Powers Agreement." 'w!/'Mit/,! ua ar tlm¢alr1119�'° R -Li A1" w.� lf-14_ 10 South Bay Clean Power The non-profit organization South Bay Los Angeles 350 Climate Action Group initiated the development of the South Bay Clean Power Initiative (SBCP) in 2014. SBCP is designed to be a joint powers authority (]PA) formed of several South Bay and Westside cities. SBCP proposes a "Regional JPA" be formed by multiple CCAs, which would provide its members with the economic advantage of pooling energy services while maintaining some autonomy. SBCP has published its draft business plan, financial strategy, and draft joint powers authority agreement.3 14 cities passed resolutions to be included in the SBCP draft business plan :4 • Beverly Hills • Carson • Culver City • Hermosa Beach • Lomita • Malibu • Manhattan Beach • Palos Verdes Estates • Rancho Palos Verdes • Redondo Beach • Rolling Hills Estates • Santa Monica • Torrance • West Hollywood As of October 2017, two of those cities (Rolling Hills Estates and West Hollywood) have since joined LACCE. Six of those cities are currently considering joining LACCE. No cities have officially joined SBCP yet. California Choice Energy Authority The City of Lancaster's City Council established the California Choice Energy Authority (CCEA) in 2012 as a joint powers authority (JPA) designed to support the formation of other single -city CCAs. Forming a single -city CCA through CCEA is slightly different than other single -city CCAs currently in existence in California such as Clean Power San Francisco and the Town of Apple Valley. CCEA calls itself a "hybrid JPA", where "SBUI (2017), South Bay Clean Povtir q Draft, , f US01eSs Plln (�1(,a �C];!�.r if S13CP (2017). T11iar7dal t,r t u y. r1. a; 1 E. I?.� <urrr w i�Y.Ylr,} a�� tts � Ig9u p.. ¢��u��2 17� tt k� r) f--_ -,:N C11'" iuG� 9 jf; and SBCP', Draft IPA 17q:t1 i , k��� raa a� n :, ��tW kror y 11 :parr(l�,lm + got i l/fiYf9 1 c 65 ]1; ,,.ftc v 151 2W. f6 tt, u)u tr afk 4 South Bay Clean Power (2017). "Our Cities (it,i_ ids.h1,1Llyr).,<t�rvwexmqLa8a�i�+,y�1.� <+tG, 11 some decision-making autonomy is delegated to the city council of the participating city while the JPA board is governed by the Lancaster City Council.5 Because CCEA already exists, there are fewer steps required compared to initiating a new single - city CCA. CCEA provided the City of Santa Monica with a draft feasibility study and its JPA agreement in November 2017.6 Currently, CCEA has four members: • Lancaster Pico Rivera 0 San Jacinto • Rancho Mirage 5 California Choice Energy Authority (2017). "About CCEA." tLUt .y(dJroi�,e;z ai.rlc,;iwl�aq�yw„�c�/�}t, 6 CCEA (2017). "City of Santa Monica. Community Choice Aggregation Technical Study; Summary of Results"; CCEA (2012). "Joint Exercise of Powers Agreement Relating to the California Clean Energy Authority." 12 2.2 Timelines and Operational Readiness LACCE is the most operationally ready option as it submitted its implementation plan to the CPUC and is awaiting certification.' LACCE is expecting to begin serving all county municipal accounts beginning in February 2018 (during what is referred to as phase 1).8 All municipal, commercial, and industrial customers will be enrolled by June 2018 (phase 2), with all remaining customers, including residential customers, enrolled by December 2018 (phase 3).9 SBCP originally targeted a June 2018 launch date with a three-step phase-in. Primarily non-residential customers (composing approximately 28% of the load) were to be enrolled in June 2018 (phase 1). Residential customers (21% of the load) would be enrolled in October 2018 (phase 2), with the remaining non-residential customers (51% of the load) enrolled in June of 2019 (phase 3).10 Because no cities have initiated SBCP yet, it has become more a set of recommendations than an operationally ready option and it is unlikely that this CCA would be ready by its original targeted launch date. CCEA estimates that Santa Monica could launch a single -city CCA in July 2018, given that Santa Monica initiates the necessary startup." 7 LACCE (2017). "LACCE Community Choice Aggregation Implementation Plan and Statement of Intent." Page 1. 8 LACCE (2017), "Regular Meeting of the Board of Directors of the Los Angeles Community Choice Energy Authority." i1.1_t I }e.S,?�xil.OYt.%li.,x�a I�t�iNity�N A,f„,rub..Jrydlcri"1u4:��@°�r,?CLin�...firr �tlapg";;UJ1r�rY� YcdC(.t„. 9 LACCE (2017). "LACCE Community Choice Aggregation Implementation Plan and Statement of Intent.” Page 15, 10 SBCP (2017). "Financial Strategy." Page 20. 11 CCEA (2017). "City of Santa Monica. Community Choice Aggregation Technical Study; Summary of Results." Page 14, 13 The figure below illustrates the proposed implementation timeline of each option, Figure 2. Implementation Timelines12 11-111111111 _e au .... -4 _ . * , , m Business Plan Implementation Phase I 11I1haa-,u 2 PIloaw 3 Plan and lao.ao-d,I Launch Launch Statement of SBCP Intent mia............................ 41 1. 1 _ ... *. r ... .. Business Plan WlAen)entalHuin If^V�,larse 3 Plan and i arena 1 Phase � `ai;,� enia, int at i u`r to irr IC CCEAa llk,�u1illlfit' ro�ru b^pr Ou°rcap�illaalaneat�atBaaorou.ullll It+hang and s¢ nc,11l'o wroatpi ni,ant of V lbr,W g.,:re rrot: The bold text indicates actions that have taken place as of the writing of this report and the lighter texts indicate actions proposed by each option that have not taken place yet. 2.3 Start and Termination Start Process To officially join any of the CCA options, Santa Monica would need to adopt an ordinance and execute the respective JPA agreement. If Santa Monica wishes to join LACCE, the City Council would need to adopt an ordinance prior to the deadline established by LACCE's JPA: December 27, 2017. While joining the CCA after that date is possible, the exact fees and timeline associated with joining after that date are uncertain at this time and would later be decided by LACCE's JPA board. The formation of SBCP is contingent upon a city taking the lead in initiating this CCA. SBCP's draft JPA agreement states that "at least three Initial Participants" need to adopt an ordinance prior to the effective date of the JPA.13 As no cities to date have taken the lead on initiating SBCP or guaranteeing the startup funding, the responsibility of doing so would fall on Santa Monica. If Santa Monica wishes to form 12 Figure created by the Luskin Center for Innovation in November 2017. Timeline data from each entity's business plan or feasibility study. 13 SBCP. "Draft JPA." Section 2.1. 14 a single -city CCA through CCEA, they would need to follow the six-month implementation timeline for all necessary startup activities as advised by the feasibility study. Termination Process LACCE and SBCP offer the ability to withdraw from the JPA similarly by giving six months' notice. In the event that power contracts had been entered into on the City's behalf, Santa Monica would be responsible for any costs incurred from the re -sale of this excess contracted power. Such a policy is standard among existing CCAs in order to prevent remaining customers from bearing the cost of departing cities. If too many members terminate a JPA or if too many residents opt -out, the CCA may need to mutually terminate and return customers to Southern California Edison (SCE). Through CCEA, Santa Monica would not be able to exit the JPA until the expiration of the longest power contract.14 While unlikely, there could be future political or financial changes that impact a member city's ability or willingness to remain with a CCA. To date, no cities have left or terminated CCAs in California. 14 CCEA. "First Amendment to the Joint Exercise of Powers Agreement Relating to the California Clean Energy Authority." Section 12. W. 111 ! J '1114171 / N 1 Decision-Making3.1 Distribution of Power between Board Members and the ]PA Each option offers Santa Monica varying levels of autonomy and involvement in the decision-making process. All three options are governed by their respective Joint Powers Authority (JPA) board. LACCE and SBCP's boards are composed of one voting director from each member city or county. CCEA has a different approach where they delegate full autonomy to members for most decisions such as but not limited to rates, power mixes, and local energy programs. However, the JPA board is solely composed of Lancaster City Councilmembers. Consequently, associate JPA members do not have a right to vote on certain decisions that rest with the JPA board, including the approval of new members. The table below presents how decision-making power would be distributed between the stakeholders that compose each CCA, and can be divided into three categories: decisions made by the individual members autonomously; decisions made collectively through votes by member cities; and decisions made independent of member cities. Decisions made by Rate setting the individual Default product TBD by board Programs members TBD by board Power content autonomously �._ ......,_._..._.. Default product ....... � . Rate setting • Rate setting •Local programs Decisions made 'Local programs Power content •Power content None (the board members of the collectively 'Power procurement Power procurement CCEA JPA are solely through votes by 'Approving additional .Default product composed of the Lancaster member cities member cities .Approving additional City Council members) Contracts with third -parties member cities . Contracts with third -parties .. .. �ww....... Decisions made • All power procurement and de...-, pendent of balancing less than 5 years member cities, or None None Contracts with third -parties with little input •Approving additional from member member cities cities 16 Veto and Weighted Vote Most decisions made by the LACCE and SBCP boards require the approval of the simple majority of board members that are present during the meeting. However, if members disagree with an affirmative decision, they have the right to call a weighted vote, where each member's share of the vote is based on their size. LACCE requires at least three members to call a weighted vote, which is calculated based on each members' load, while SBCP only requires one member to call a weighted vote, which is calculated based on members' revenues. Figure 3 illustrates the voting process for LACCE and SBCP. Figure 3. Decision - Making rocas Flow Chart It is important to note that similar voting systems are also used by other existing CCAs. Discussions with existing CCAs have revealed that decisions are usually discussed at length prior to a vote. While there is not always full consensus of members prior to a vote, weighted votes have very rarely been called. Reaching consensus would probably be easier for SBCP as its founding members are likely to share the same vision and the same goals. On the other hand, with a county as large and heterogeneous as the Los Angeles County, a consensus could potentially be harder to reach by LACCE. 17 The figure below illustrates the number of city and county members on all existing and potential CCAs with a multi -member JPA board. 30 25 20 15 10 5 0 RCEA SCP SVCE SBCP PCE LACCE MCE 1, ugot"�, Solid bars (for RCEA, SCP, SVCS, PCE, and MCE) illustrate the current number of member cities and counties on existing CCA boards. Lined bars (for SBCP and LACCE) show potential membership. LACCE's membership scenario includes all cities currently considering this option. SBCP's membership scenario includes all cities that are in the original feasibility study, excluding those that have since joined LACCE. Single -city CCAs are not included in this figure as they do not have JPA boards with multiple members and are instead typically governed by their respective city councils. Weight Depending on Membership Scenarios We examine Santa Monica's share of the weighted vote under different potential membership scenarios to understand their influence in the event of an extreme case where a weighted vote is called. Table 2 shows that Santa Monica's weighted vote share, based on load share, would potentially vary between 7% and 11% should the City decide to join LACCE. Table 3 illustrates that Santa Monica's weighted vote share could potentially vary between 27% and 32%, if the City decides to form SBCP, resulting in the City having more control over collective decisions. 15 Figure created by the UCLA Luskin Center for Innovation in November 2017. Membership data from each entity's website. I: Ili:IN � FIN /��/ /(!/�/��l/J'i,����;r��.fiii�.irl/,������� Unincorporated X • X. ( i,�/��,f/,..v����;r��/ii,.� • • • '! • • • ••Unincorporated �i„�ii.��i,: ii7��`•i���(tr LA CountyX r� l„� Carson! Carson Santa Monka Santa Monka Monica ..X Downey Beverly Hills Beverly Hills Alhambra 1 Downey West Hollywood West Covina Manhattan Beach Whittier Hawthorne Manhattan Beach SouthCalabasas • ' Sierra Madre Culver City Rolling Hills Estates West Hollywood Alhambra '•! ••Beach Redondo Arcadia `X X. IX •! • •!! Calabasas X•. Redondo Beach Claremont! n. Agoura Paramount II out e • ena Calabasas *. •- Estates .• Verdes Palos , • • • Cl aremont VIII •.... Sierrae • • III III 1 •! _ Hills II .La Puente �•• South Pasadena 1 •ercles Sierra Madre �- Rolling Hills Estates Table 2 note: Scenario 1 includes cities that have officially joined LACCE as of December 1, 2017. mm__m Scenario 2 also includes all cities that have scheduled a first or a second reading of the ordinance. Scenario 3 includes all cities currently considering LACCE. 16 Status of members provided by LACCE. Share of vote estimated based on load data provided by the LA Energy Atlas Int q,p,.,yllvuvv, taargL{�+ i�I.Rr,ll WN f �/ / � � � fir, �/�� �/ l � � / �/ � ✓� /, / �.,/ � I -U//� ,ly r@@'�'�'��'�!/✓ f�� Torrance i �.U1 r �// y. '����� Torrance �� �1�� / / r. � ��% QJ�o Santa Monica LcmLa Monica 1 Malibu-•• •• R-h SantaMonica ' Hermosa4 1 LomitaBeach VIII • •. Verdes Estates Beach LomitaPalos •• •• Beach Verdes Estates Malibu Manhattan Beach RanchoPalos Palos Verdes1' Hermosa Beach • 1 Palos • 1 •• 1 Table 3 note: Scenario 1 includes all cities that were included in SBCP's original feasibility study that have not scheduled a reading of the ordinance to join LACCE as of December 1, 2017, Scenario 2 includes all original SBCP cities that have not scheduled a second reading of the ordinance. Scenario 3 includes all original SBCP cities for illustration. ii 0112111 � '� '6' Because Los Angeles County is made of heterogeneous communities, a big CCA with many diverse members is likely to have a broader variety of energy policy priorities compared to a more homogeneous CCA or a single -city CCA. Some member cities might focus on rates while others are likely to focus on environmental goals and local programs. One of the most important goals of forming a CCA is to reflect community preferences. It is therefore important to understand how each option will allow the city of Santa Monica to appropriately represent its residents' interests. LACCE offers Santa Monica the least power over collective decisions if a weighted vote is called. However, if other likeminded cities join, it is likely to see some cities forming an alliance to influence decisions made at the CCA level. This could increase Santa Monica's regional impact. Moreover, it is important to keep in mind that weighted votes to veto decisions have rarely been used by existing CCAs to date in California. Additionally, LACCE plans to establish a community advisory committee. LACCE staff have recognized the desire for members to reflect local preferences. Since those preferences may not always align with other members, Bill Carnahan, 17 Share of vote based on estimates from SBCP. l raGytNrf.���.yo9c, 74a. w �,a i. yak �a�a&' u.l�s a:Gu...a;m,. 1 s , all the interim executive director of LACCE and former executive director of Southern California Public Power Authority, has suggested a "cafeteria style" approach, where each member can decide which programs they want to participate in, finance, and benefit from. SBCP could be formed by cities with similar visions, goals, and energy policy priorities, which would limit the risk of disagreement. Additionally, Santa Monica is likely to have more weight over decisions in both the simple and the weighted vote due to the likely smaller membership compared to LACCE. Finally, SBCP also recommends the establishment of a community advisory committee and recommends that a representative from this community has a non-voting seat on the JPA Board. With CCEA, the Santa Monica City Council would have full decision-making autonomy to reflect its community preferences through rates, power mixes, and Investments in local energy programs. However, Santa Monica would not have a formal voting right in a few other types of decisions where authority rests with CCEA's JPA board governed by the Lancaster City Council: decisions regarding contracting with third parties for services (including approving consultants for energy procurement) and approving new associate members. Approval from an official representative from Santa Monica is required before CCEA can enter into energy procurement contracts longer than five years. Due to the design of CCEA, Santa Monica should not be negatively impacted by additional joining members. W r 111- IF Mil I II This section compares the potential electricity products and rates that could be offered by each option according to their published documents. However, it is important to remember that this comparison only looks at each option's forecasts and estimations. Each option uses different methodologies and assumptions to forecast rates for their respective CCA and for SCE's rates. Ultimately, this comparison is hypothetical and much remains uncertain. Rates will be affected by future energy market prices, the policy decisions taken by the respective boards regarding the energy procurement strategy and portfolio content, as well as the decisions made by each CCA's general manager. We believe that while competitive rates are a crucial element, most CCAs in California have been successful through their innovative approaches, greener electricity, and local -level management. LACCE suggests to offer customers three products to choose from: a base product, a 50% renewable energy product, and a 100% renewable energy product. The base product will at a minimum always meet the state Renewables Portfolio Standard (RPS) requirement (33% in 2020). According to recent discussions with LACCE staff, their base product is will likely be greener than the base product originally described in their business plan in order to compete with SCE's aggressive 2020 procurement. Currently, SCE has 41.4% renewable energy under contract for 2020.18 LACCE's business plan does not report the percent of carbon free electricity. Santa Monica can determine which of the three products to enroll its residents in by default (although customers can always opt into a different product offered).19 SBCP's power mixes have not yet been determined. The JPA board would have to design and vote on the different products offered to ratepayers and whether or not a member can enroll by default its residents into a greener product. In their financial strategy, SBCP presents four illustrative scenarios of power mixes, which vary between 39% and 43% renewable energy, and between 9% and 27% additional carbon free electricity in 2020.20 It is important to note all but one scenario have less renewable energy than SCE will have in 2020. SBCP estimates their rates to be consistently cheaper through 2022 for each option, and uses a conservative estimation of the exit fees charged by SCE. 18 California Public Utilities Commission (2017). "California Renewables Portfolio Standard (RPS)." 19 LACCE (2017). "LACCE Community Choice Aggregation Implementation Plan and Statement of Intent." 20 Renewable energy sources include biomass and biowaste, geothermal, wind, small hydro, and solar. Large hydro power is not considered a renewable resource but rather a carbon free source of energy. FAI CCEA presented three scenarios to Santa Monica. Scenario 1 maintains 10% more renewable energy than the RPS, and would have 43% renewable energy in 2020. Scenario 2 would have 33% renewable energy and an additional 67% carbon -free energy in 2020. Scenario 3 would have 53% renewable energy in 2020 and an additional 30% carbon -free energy. CCEA estimates that the CCA total rate would be less than 1% cheaper than SCE's. However, it is important to note that Santa Monica has full discretion regarding these power contents and rates and could design each product as they want. Renewable Enemy Rat;* Produce 5096 Renewable 10096 Renewable carbon -Free Energy ops/% per 6.396 MI 1 ether 5 396 11' 4 396 '% �/ cheaper cheaper more than SCE then SCE expansive ease Reta/(y`+' Bane Rate JJW In adll?j thanSCE Base fa4e ,,al Cheaper Power Greener Power Decarbonization Base Case it , � `, ( � Mg cheaper Icheapercheaper than SCE tan SC f n l aSCE e!d Rate eas ate Base Rate%Buse Rate, Scenario 1 Scenario 2 Scenario 3 G c� a e, cheap r cheaper l t than �� than SCE Base at �% a aBase Rate 21 SBCP (2017). "Financial Strategy." Pages 16-17, 23 Electricity rates and power mixes will only be finalized once they have been approved by LACCE's or SBCP's respective JPA board. If the Santa Monica City Council elects the single -city option, they will have full autonomy over rates and power mixes. 4.2 wCertificates According to the California Public Utilities Commission, "Renewable energy facilities can sell energy and/or renewable energy credits (RECs) to a California retail seller of electricity to meet its [renewables portfolio standard (RPS)] obligation." 22 The RPS program distinguishes renewable procurement acquired from contracts into three portfolio content or RECs categories referred to as buckets. The first two buckets, RECs categories 1 and 2, are when the renewable energy certificate is bought bundled with the underlying renewable energy. The last bucket, also called RECs category 3 or unbundled REC3, is when the energy provider only buys the certificate without the energy. As the figure below shows, the State does not view RECs category 3 as an appropriate long-term solution to procuring renewable energy. I�MON, @YN, �i Y..�oeo wo�p oq�,Y��so- V°oYOi aO ad'wX 168 ku.Uq Ytl V,@um a .uV o�o ooh fl � "�a Oma Yw'Yop iu f o6Q m��tiu b° V — g�b"'w e,rcr�p@„.n.�oa eo k° a.QsiB NO�u,Oo,¢a�ap ma.n�uo � ��rQ„V VmY'uN� AOn%flud BJoX&N po 8.°ui�h Pa&uu s ( Boa V,, roy P. YwNooe P .tlno�,nolo 0 .. d "e a "g, iuW Y B%em 8wW9w V.mPo�gyp i, pop 4 BI. P�. in Category 1 Category ; Category 3 22 California Public Utilities Commission (2017). "RPS Procurement Rule.” 29 Ibid. 24 One of the main reasons why electricity providers use RECs category 3 is because they have been historically cheaper than buying bundled renewable energy. Previous research from the UCLA Luskin Center for found that in 2016, Marin Clean Energy was still using up to 3% of RECs category 3, and Lancaster Choice Energy was using up to the maximum amount allowed by the RPS program. Other CCAs like Sonoma Clean Power or Peninsula Clean Energy do not use RECs category 3. LACCE's JPA states to "discourage the use of REC category 3." However, the JPA board will ultimately decide the policy. According to discussions with LACCE staff, their initial request for proposals for energy procurement specifically requested no use of RECs category 3. SBCP's draft business plan states that "no use of Category 3 unbundled Renewable Energy Certificates (RECs) [will be purchased] to achieve [their] 100% renewables goal"24 as one of their goals and objectives. However, the use of RECs category 3 to meet interim goals or in the implementation phase is not specified and would likely be determined by the JPA board. CCEA will procure power on behalf of Santa Monica with the single -city option. Santa Monica can then specifically request that no RECs category 3 are used for electricity procurement. The feasibility study presented to Santa Monica assumes the use of RECs category 3 up to the maximum of 10% in some of the proposed scenarios. 4.3 Exploring the 100% Renewable Option As discussed in the previous section, each option could provide Santa Monica with the ability to immediately provide a 100% renewable electricity product. Because this would be the most expensive option, the vast majority of CCAs enroll by default their customers into the cheaper option in order to maximize their customer retention. The problem with this strategy is that most CCAs only see a very small amount of "opt - ups," defined as when a customer voluntarily chooses to enroll in a greener product. The City of Portola Valley, a member of Peninsula Clean Energy, a CCA in San Mateo County, is the only CCA member so far to have default enrolled all of their customer accounts into the 100% renewables product. A representative from Peninsula Clean Energy confirmed that as of October 2017 only 4% of customers in Portola Valley opted down to the cheaper product and 5% opted out of the CCA to return to PG&E. It is important to note that the percentage of opt -outs for a CCA in California varies between approximately 2% and 10%. These numbers indicate that customer 24 SBCP (2017). "South Bay Clean Power Draft Business Plan." Letter of Introduction. WIM retention may not be a major risk for other similar communities considering a 100% renewables default option. The Public Policy Institute of California conducted a survey that revealed that the willingness to pay more for greener electricity varies based on political affiliation: 68% of Democrats and 38% of Republicans were willing to pay more.25 Willingness to pay was less dependent on income: between 55% and 60% of respondents across income levels (ranging from under $40,000 to more than $80,000) reported being willing to pay more for greener electricity. The table below shows the socio-economic comparison between the cities of Portola Valley and Santa Monica. Table 4. Comparison of Demographics: 4.4 Energy Services and Third -Party Contracts This section of the report presents and synthetizes discussions with energy procurement specialists, including the authors of SBCP's business plan. SBCP's business plan was the only one of the three options to focus on an energy procurement strategy and services to address future legislative, regulatory and market risks (refer to chapter 6 for a more detailed assessment of future risks). The core business of CCAs is to procure energy, which represents on average between 80% and 90% of all costs incurred by existing aggregators in California. Energy procurement involves various services such as planning and portfolio analysis, contract origination, short-term load forecasting, scheduling and balancing of operations, settlements, and data management .21 The figures below illustrate the breakdown of required energy services. 25 Kordus, David. Public Policy Institute of California (2017). "Californians' Views on Climate Change." 26 Population estimates from United States Census Bureau "American Fact Finder." Party affiliation data from California Secretary of State "Voter Registration Statistics." 27 Data management includes data exchange with the investor-owned utility, technical testing, customer service information systems, customer call center, billing, settlement quality meter data reporting, and reporting and audits of utility billing. 26 ���� gym.. mumwUwwuuurmvu�um i i 1 a waw, waw,r �Ar�oammwwdm I Nogotlato power Track counter -party p is to in energy Forecast model purchase at 8 collatarat to 5 Review_and verity procurement needs, agreements, administer energy- Oorecast toad, financialstaterant s track portfolio risk, standard physlca related contracts -4- manage ®II®, Ior CAUSO and and analyze offers financial products, physical (electricity, trade lfh bilateral trans cans from suppliers and structured fuel) and financial unterp 4es) transactions s Data and Billing Services S<eCesvf- nta�n , Y FRP�nlulnn e esa cklr� S Hellorx, (tasetr�e's p ayinefa4 H1,cfilpl {tavorili n (lvc.a,4glii customer del as CCA receives potonnw wlrKs rile (,:(-'.A calctilalos all SCE [111K curilonifiri CCA YeWsus lhalf— i&qe and Customer U, � i �i rdefaults Context around Energy Management Services According to SBCP's business plan, one of the most important debates occurring today within the community choice energy industry revolves around how to best structure energy services management for new CCAs to respond to future risks. Energy procurement and risk management are complex practices that require significant research, analysis, and market experience. Supplying power to any aggregation of customers requires a diverse portfolio of energy products29 to be contracted for and actively managed as market conditions change over time. The diversification of the energy portfolio is also crucial in regards to energy contracts versus market price exposure, long- versus short-term energy contracts, volume, location, and type of energy sources. Investor-owned utilities reportedly integrate all of these energy services together, known as a commodity risk management approach. Most of the first existing CCAs delegated the complexity of portfolio management functions to external consultants, also called Energy Service Providers (ESPs), when they launched. According to SBCP's draft business plan and discussions we had with its authors, this model comes with 28 Top image from SBCP (2017). "Draft Business Plan." Page 17. Bottom image from Community Choice Partners. 29 Such energy products include physical electricity products (energy, capacity, renewable energy certificates, emission reduction credits, and ancillary services), physical fuel products (primarily natural gas, transportation and storage) and financial or insurance products (transmission congestion revenue rights, call/put options, multi-party spreads, etc). 27 disadvantages regarding commodity risk management modeling techniques and operational practices. The separation of the CCA's energy risk management functions and a relatively inflexible approach to energy procurement could impede their ability to adapt to regulatory and market risks. Existing CCAs have been successful with this outsourced model. However, we have noticed a change in the energy risk management approach over time. We have seen some CCAs like MCE bringing those capabilities in-house after several years of experience in the energy procurement industry, most likely justified by the need to absorb vendors' margin in-house. Some newly formed CCAs have also chosen to adopt a single portfolio manager model. According to SBCP, under this approach, the CCA contracts for all of the aforementioned energy risk management functions to be provided by a service provider operating "as an agent" of the government agency. General Approach toward Energy Services for each Option Decisions regarding LACCE's energy services and policies have not yet been finalized for implementation phases 2 and 3. However, for phase 1, LACCE hired separate contractors for energy procurement, scheduling operations, and data management. If Santa Monica joins LACCE, they would have the opportunity to influence, with other cities, decisions for the following phases. SBCP recommends the use of a portfolio manager that would integrate all energy services functions, rather than contracting for these services separately. SBCP believes that such a strategy helps to streamline services and better integrate local energy generation, resulting in a more efficient risk management across these different functions. With CCEA, Santa Monica would delegate all tasks related to energy procurement, contracting origination, and management to CCEA and their consultant Pacific Energy Advisors, overseen by Lancaster Choice Energy's executive director. CCEA also handles finding and contracting with a data manager and an independent scheduling coordinator for CCEA's member cities. According to recent discussions with Pacific Energy Advisors, this option provides economies of scale regarding energy services. Yet Santa Monica could still benefit from energy procurement tailored to its specific energy needs and load profile. Energy Procurement Costs One important competitive advantage of CCAs is that they are free to set their rate structures as they want, as opposed to investor-owned utilities that are required to have rates approved by the California Public Utilities Commission. Because of new W. technologies and data management services, CCAs now have the opportunity to go one step further by customizing rates at a customer level. Customized rates could help ensure that the highest paying customers remain with the CCA. SBCP is the only option to suggest this strategy so far. This would also allow each member city to have a different rate structure that could best reflect the real cost of electricity procurement. Coastal cities have different costs of procurement due to the important role the ocean plays in regulating and absorbing more extreme temperatures. Cities like Santa Monica can be cheaper to serve because their electricity load demand varies less within a day and less across the seasons than a city farther from the coastline. Due to data paucity, we could not quantify and characterize the difference in load profiles between climate zones. However, Figure 10 illustrates the difference in the distribution of electricity consumption during a summer and a winter day between two climate zones in Los Angeles County. r I ;1171 1 1 � L;: .....�, ,� .......; �e . .... 1-- L--7— 71" T 9 „. "did lccc IWc`M' aC4�� ®?"dWe1 7r�Y�1?p Wsi'tlQer kVU'h�,I ®Ct'R01 Wid'W'11?AonIn f--101' 1121X.: the table and graphs on the left illustrate energy consumption by customers in climate zone 6 (consisting of coastal communities like Santa Monica) while the table and graphs on the right show the distribution of consumption in climate zone 10, a more inland climate zone. Climate zone 6 has similar electricity needs in the summer as in the winter, whereas climate zone 10 has much higher electricity needs in the summer than in the winter, resulting in greater capacity needs. 30 Climate zone map from California Energy Commission (2017). "California Energy Maps," r.J N V W�.� gIgY—r,-a (4Q- j,1a A1)�5Z r c:,I, g jI1e.TS..jt„c Lr)q�5,,...kjLmj Consumption data and distribution images from California Public Utilities Commission (2017). "2016 Residential Electric Usage and Bill Data Statistics by Climate Zone.” t�itjL,,j ww'" c. as� Cott 6j' 29 Each CCA option is differently poised to handle the issue of differing climate conditions and associated electricity needs. With CCEA, the current energy contractor, Pacific Energy Advisors, considers each members' specific load profile and electricity needs separate when procuring energy. Pacific Energy Advisors only pools contracts with the same energy providers for all members so that they can benefit from economies of scale, but respects specificities when it comes to procurement price. If SBCP is formed with cities with similar climate zones and demand load profiles, it could provide the City of Santa Monica with the same economic advantage regarding electricity procurement. As for LACCE, energy policies will be voted on by board members. However, even though it could be possible to distinguish rates among city members, the authors believe it will be politically challenging and it raises the question whether it would be fair for a CCA to provide different rates based on a city's climate zone and load profile. Data Management Services To date, all CCAs and utilities have contracted with the same data management vendor. However, emerging CCAs are beginning to consider other contractors that offer more refined services, including particular capabilities required to better support demand response and energy efficiency program implementation. For further comments, please refer to East Bay Community Energy (EBCE) staff's recommendation regarding energy services. Developing advanced capacities with cutting-edge technologies, strategies, and partners should be something to consider when making policy decisions, specifically in regard to the future risks that lie ahead for CCAs in California. Since these advanced capacities are a recent development among CCAs, we have not yet been able to evaluate their costs and benefits in practice. 30 J1311 �,.. �� .j i i 1� There are several cost factors that need to be taken into consideration when comparing CCA options, including startup costs and financing, energy procurement costs, non -energy operating costs, and the costs and financing of local energy programs. In this chapter, we compare the financial obligation that each option requires from Santa Monica regarding start-up costs and operating costs. We do not analyze the cost of procurement between each option as we neither have the experience nor the knowledge to assess and compare each option's methodologies for forecasts and cost estimates. 5.1 Startup Costs The startup phase, also known as the pre -start phase, usually varies between six months and one year. The associated costs usually include staff members, consultants, marketing, and infrastructure. Startup Costs Estimation Back in 2016, LACCE's business plan initially estimated startup costs to be $1,213,718, with a launch in January 2017. Because the launch was postponed by one year, we estimated the total costs incurred by the CCA this year to have been $1,355,000 (2017 total costs minus utility transaction fees, but including the CPUC Bond), resulting in a total startup cost of $2,568,718 for LACCE.3' Based on SBCP's financial strategy, we estimate a startup cost of up to $912,376 (all startup costs minus utility and CAISO fees). CCEA's technical study estimates startup costs of around $703,940 for the first six months. Depending on the ultimate membership of LACCE, Santa Monica's share of the load could represent between 7.1% and 11%, resulting in an indirect financial contribution of between $182,379 and $282,559. Santa Monica's share of these costs would continually decrease as more cities join LACCE. For SBCP, Santa Monica's share of the load could represent between 27% and 32%, resulting in an indirect financial contribution of between $246,342 and $291,960, based on the membership scenarios 31 LACCE (2016). "County of Los Angeles Community Choice Energy Business Plan." Startup activities and costs. We excluded utility transaction fees for 2017. Page 36 31 described in chapter 3. Thus, LACCE and SBCP's estimations could provide the City with economies of scale, resulting in lower startup costs than can be achieved through CCEA. For comparison, the table below illustrates the startup funding amount and sources for exisitng CCAs. Startup Costs Financing LACCE received an interest rate free loan of $10 million from the County of Los Angeles, which should be reimbursed next summer. SBCP suggests that the leading cities guarantee a $2.5 million startup loan to finance the launch of the CCA. Using cities as guarantors could potentially help SBCP to obtain cheaper rates than if the brand new CCA was taking out a loan itself without any credit history. CCEA suggests a small loan of $700,000 that could be covered by the city's general fund, resulting in lower interest rates, if any. Table 6 compares the startup costs and financing reported by each option, including additional financing needs, usually for energy procurement. Start -Up Funding l ...... Existin�CCAs __ Re u� lrementi sees_. _, Fundi�ource _ _._mA_��... MCE Clean Energy $2- $5 million Startup loan from the County of Marin, Individual �_... .w _.... Investors, and local community bank loan. ...........s 1 To be paid back in June 2018. Loan from Sonoma County Water Authority as well aas Sonoma Clean Power $4 . $6 million loans from a local community bank secured by a G. $1,200,000 additional cash Sonoma County general fund guarantee, CleanPower SF $5 million Ap ropr6ations from the Hetch Hetchy reserve SFPUC._ (SF.... ...............�..... Lancaster Choice CCA $2 million Loan from the City of Lancaster general fu _ _ w fund. _......__ Peninsula Clean Energy $SO - $12 million _ y to fund a San Mateo Count has stated a willingness.._ t. fun -.wmw �$MM escrow to secure lender. ' Source: Respective entlty websites and publicly available information. Startup Costs Financing LACCE received an interest rate free loan of $10 million from the County of Los Angeles, which should be reimbursed next summer. SBCP suggests that the leading cities guarantee a $2.5 million startup loan to finance the launch of the CCA. Using cities as guarantors could potentially help SBCP to obtain cheaper rates than if the brand new CCA was taking out a loan itself without any credit history. CCEA suggests a small loan of $700,000 that could be covered by the city's general fund, resulting in lower interest rates, if any. Table 6 compares the startup costs and financing reported by each option, including additional financing needs, usually for energy procurement. 32 LACCE (2016). "County of Los Angeles Community Choice Energy Business Plan." Page 64. 32 � l $10 million from LA County. .. 00 Interest free. loan via general 1 To be paid back in June 2018. un orot ersource. G. $1,200,000 additional cash flow needed according to . .:. .. ..CCEA technical study. 32 LACCE (2016). "County of Los Angeles Community Choice Energy Business Plan." Page 64. 32 5.2 Economies of "' in Operating Costj Frequently, all revenues generated through the sale of electricity "flow to the JPA" to cover energy procurement costs and non -energy operating costs. Most of the time, non -energy operating costs are similar to fixed costs, which means they do not exactly proportionally increase or decrease based on the load to serve or the number of members. Consequently, the larger the CCA, the lower the non -energy operating costs per member should be. Operating costs usually cover general and administration expenses, personnel, professional services and data management, legal and regulatory staff or consultants, marketing and promotions, customer service, and other utility or California Independent System Operator (CAISO) fees. For LACCE and SBCP, the vast majority of the operating costs listed above should be covered and paid for by the CCA itself. This means that Santa Monica will have very minimal to no staffing and operating costs on its side. However, if Santa Monica chooses to create a single -city CCA through CCEA, the City can determine how much staff it wants to dedicate to the program depending on how much it wants to be involved in the administration. The City will pay CCEA service fees, estimated to be around $850,000. This fee is divided in two: a flat annual fee of approximately $250,000 that Santa Monica would have to pay to CCEA no matter what; and variable annual costs estimated at $600,000 for procurement, regulatory and other services provided by CCEA. These latter costs will proportionally vary with the amount of CCEA members and is consequently one of the few operating costs under this business model that could benefit from economies of scale. The UCLA Luskin Center for Innovation conducted an analysis based on existing CCAs in California to compare each options' estimation of their non -energy operating costs. We found a statistically significant relationship between operating costs per MWh and load. We found that for every 1% increase in load, a CCA could expect operating costs per MWh to decrease by 0.4% on average. This means that CCAs serving a larger load benefit from economies of scale in operating costs, potentially resulting in more revenues per MWh available for programs or to allow for reduced rates. Figure 11 shows the cost of non -energy operating costs per MWh for existing CCAs. CCAs are shown by annual load, with the largest load on the left. 99 Operating Costs per MWh �g � � tigite; EES Consulting provided the UCLA Luskin Center for Innovation with high and low load operating costs scenarios. SBCP's operating costs are from their business plan and CCEA's are from the feasibility they provided the City of Santa Monica. Notably, economies of scale were not found in the cost of energy per MWh. This is likely due to the fact that the cost of energy is dependent upon several factors such as, but not limited to, the portfolio content and procurement strategy, the balance between long-term and short-term contracts, and the market conditions in which the power purchase agreements were signed. Recent discussions with several industry specialists revealed that in a very competitive environment, larger CCAs might have bargaining advantages over smaller CCAs when it comes to long-term energy procurement and other contracts for third -party assistance. With a more fragmented electricity retail market and increasingly stronger competition, Santa Monica could possibly benefit more from greater bargaining power and economies of scale in the energy procurement processes through a larger CCA. 33 Operating cost data from each entity's respective publicly available 2017-2018 fiscal year budget. Load data from each CCA's most recently published Implementation Plan. 34 5.3 Local Program a The community -oriented nature of CCAs allow them to efficiently tailor, communicate, and implement local energy programs to meet community needs. When CCAs do, it comes with several local benefits. Funds collected through rates are reinjected locally, instead of being centralized by utilities and state agencies to benefit the state more broadly. These local programs can support local jobs, boosting the local economy. In a previous report, we estimated that the five operational CCAs in 2016 supported over 600 local construction jobs, 24 new operations and maintenance jobs, and an additional 28.2 operations and maintenance jobs from construction in previous years,34 CCAs can apply to the California Public Utilities Commission to administer their own energy efficiency programs by using funds collected through public benefits surcharges. For example, MCE (the first CCA to launch in California) received $1,334,519 in public purpose program revenue in 2017.35 CCAs can also take advantage of opportunities such as California Energy Commission grants or partnering with other agencies or nonprofits. Similar to the implementation plans of Silicon Valley Clean Energy and Peninsula Clean Energy, LACCE states that they "will eventually administer energy efficiency, demand response and distributed generation programs that can be used as cost-effective alternatives to procurement of supply- resources."36 CCAs can also use their own revenues to finance some local programs. The table below shows the budget each existing CCA has allocated toward these programs. LACCE's implementation plan does not allocate any CCA funds toward local programs, but highlights its intention to ask for public funding to finance and administer energy efficiency programs. LACCE also mentions that demand response programs can be 34 UCLA Luskin Center for Innovation (2017). The Promises and Challenges of CCAs in California. Our method utilized the National Renewable Energy Laboratory Jobs and Economic Development Impact Model. 35 MCE (2017). "Financial Statements Years Ended March 31, 2017 & 2016 with Report of Independent Auditors," h�1�tl���!'�'�:"�Y��.➢��µL,l�,�.�rbfm7rrJ.y��?r'��'i� ��nt:.�'.�:CI��.u�pa���i�1�'�i7���..��a1,�wcl..fl9.�.�#ercc �p�t�iL�ry,�c�rr�ts_�'CI� �"t���,� I�,c)�' 36 LACCE (2017). "Los Angeles Community Choice Energy (LACCE) Community Choice Aggregation Implementation Plan and Statement of Intent." Page 10, W cost effective alternatives to resource adequacy capacity required by the CPUC and that they will promote local investment through net energy metering and feed -in tariff programs. LACCE's interim director, Bill Carnahan, has suggested LACCE could adopt a "cafeteria style" approach where each member can pick which program they want to finance and participate in .37 MCE's JPA agreement, as an example, stipulates that any member can participate in the programs they approve and finance. Any member who votes against the approval of a program or activity will be taken out of this program without bearing any financial obligation.38 SBCP specifies an annual budget for local distributed energy resource (DER) programs, which is budgeted to be $2,000,000 in 2020. SBCP's business plan details how DER functions would be fully integrated into the agency's business model and contracted services including "power planning, load forecasting, power procurement ... [which] necessitates contracting for a specialized set of service S11.39 With CCEA, Santa Monica would have complete autonomy over rates and the budget allocated toward local program investment. It is important to note that recent discussions with existing CCAs revealed recommendations to focus on achieving financial solvency and establishing a rate stabilization fund prior to investing in local programs, as remaining cost competitive and retaining customers should be priority number one. It is hard to determine how much money will be available for local energy programs because it will depend on the rates and energy policies set by the JPA board as well as the procurement and operating costs of each option. 37 According to discussions with Gary Gero, Chief Sustainability Officer of the County of Los Angeles and Bill Carnahan, LACCE's interim executive director in October 2017. 38 MCE (2008). "Marin Energy Authority Joint Powers Agreement." 39 SBCP (2017). "South Bay Clean Power Draft Business Plan (2017). Page 26. 36 California is in the middle of an energy revolution, with new players, new regulations, and ambitious environmental goals. Greater competition in the retail electricity market will increase pressure on prices, resulting in more innovative energy procurement strategies. New CCAs must carefully identify and plan to mitigate any potential future challenges. In this section, we discuss potential regulatory, legislative, and market force risks. At the end of each section, we provide the reader with the mitigation strategies suggested by each option.40, 41, 42 Future Legislation Affecting Investor -Owned Utility Renewable Procurement California Senator Kevin De Leon introduced Senate Bill 100 this year that if signed into law would have required 100% of electricity sales to come from renewable or carbon free energy by 2045. Senate Bill 100 was postponed to the next legislative session. Such a regulation could ultimately reduce one of the main marketing and competitive advantages of CCAs, who often claim to have a cleaner energy portfolio than most investor-owned utilities. Even without this regulatory pressure, it is important to note that the renewable energy procurement gap between investor-owned utilities and CCAs is narrowing. The largest investor-owned utilities now have between 41% and 45% RPS -eligible renewable energy procurement under contract for 2020.43 The more CCAs that become operational, the more investor-owned utilities' customer bases shrink, resulting in renewable energy contracts composing a greater percentage of their sales. 40 LACCE (2017). "Los Angeles Community Choice Energy Business Plan Update." Page 17 and 18. LACCE proposes mitigation strategies for SCE rates and surcharges, regulatory risks, power supply costs, SCE RPS share, availability of RPS/GHG-free power, financial risks (related to financing and credit), and loads and customer participation. 41 SBCP (2017). "Financial Strategy." Page 33-46. SBCP proposes mitigation strategies for the PCIA, Direct Access reopening, the risk that the CPUC pierces the veil of CCA JPA liability protection, and a general contingency plan. 42 CCEA (2017). "City of Santa Monica. Community Choice Aggregation Technical Study; Summary of Results." CCEA proposes mitigation strategies for financial risk related to CCA failure, financial risk related to procurement deviations, market volatility and price risk, availability of renewable and carbon -free energy supplies, legislative and regulatory changes, and Power Charge Indifference Adjustment (PCIA) rate risk. 43 California Public Utilities Commission (2017). "California Renewables Portfolio Standard (RPS)". 37 Phasing Out Legislative Support The increasing competition toward greener power mixes coupled with the phase out of the federal Investment Tax Credit (ITC) could impact the cost of renewable energy sources in California, such as wind and solar. The table below describes the reduction over time of the amount of investment in a solar installation that can be deducted from the tax payment. Table S. Phase Out of the ZTC 44 Mitigation Strategies Suggested by Each Option In the event that investor-owned utilities and CCAs would be required to procure 100% of their electricity from renewables, CCAs would need to prioritize competitive rates and to emphasize local programs and investments. In the event of increasing competition for renewable power, LACCE proposes to: "Shift emphasis to GHG-free energy sources... secure long-term contracts... invest in local renewable resources. 1145 In regard to a potential power supply cost increase, LACCE proposes two main mitigation strategies that focus on long-term contracts and the stabilization rate reserve funds.46 According to industry specialists, being part of a larger structure can provide economies of scale and larger bargaining power in a competitive market. CCEA proposes the "use of a `laddered' procurement strategy, which is based on layered purchases in which portions of the energy spend are fixed at intervals throughout the contract term, rather than all at once. Alternatively, the buyer might form a set of `investment rules,' buying at certain price levels to both mitigate risk and seize opportunities." CCEA also recommends the use of a diversified supply 44 United States Energy Information Administration (August 2016). "Annual Energy Outlook 2016 with projections to 2040". LR -8. 1sttav�o�u (d�?:y�..ca rr�.trnkar_6ivY/,"313(41).d.cif 45 LACCE (2017). "Los Angeles Community Choice Energy Business Plan Update." 17. 46 Ibid. W portfolio that includes contracts with various term lengths and end dates and the "participation in the incumbent utility's short-term RFO for renewable energy sales".47 SBCP proposes more "sophisticated energy risk management capacities" in the broader context of legislative and regulatory risks, such as the use of a "portfolio manager model" and a "significant expansion of distributed energy".48 (Refer to section 4.4 on energy services and third -party contractors for further details on SBCP's energy risk management strategy). • . i .�Manz-VENNO The Power Charge Indifference Adjustment (PCIA) is an exit fee charged per kWh to customers who depart from an investor-owned utility. While this fee is necessary to ensure that customers remaining with the investor-owned utility are not penalized to the departing load (also known as bundled customer indifference), there are concerns from both CCAs and investor-owned utilities about the PCIA in its current form. With the proliferation of CCAs in California, it is important to understand the long-term effect of a price indifference mechanism in a more competitive environment. In the longer term, customers might request the ability to change from one utility to another without paying any exit or entry fees and without being required to compensate for the losses of another company, as is the case in many other sectors. While the PCIA has long been a contentious issue, the rapid expansion of CCAs over the last few years has increased the salience of this issue. The California Public Utilities Commission currently has an open rulemaking that has established several guiding principles regarding revising the PCIA in order to address concerns.49 The new methodology aims to maintain bundled customer indifference while using a methodology that provides transparency, verifiability, flexibility, and stability as well as maintains a balance between accessible data and confidential information.50 Importantly, the California Public Utilities Commission notes that this methodology "should not create unreasonable obstacles for customers of non - 47 CCEA (2017). "City of Santa Monica Community Choice Aggregation Technical Study: Summary of Results Draft." 48 SBCP (2017). "Draft Business Plan." 49 California Public Utilities Commission (2017). R.17-06-026. "Order Instituting Rulemaking to Review, Revise, and Consider Alternatives To The Power Charge Indifference Adjustment." tlaitll?...1trlr—r a�1` rla�v� 117gkK r91 _0r If'Li .61 1.M..S1f 9,1(hD(�lk D1 N 9_'Cj�gi ;� .���,.&1;.':. 50 Ibid. ME investor-owned utilities energy providers." 51 Various stakeholders have submitted comments to the California Public Utilities Commission regarding the rulemaking. Investor-owned utilities applied to have the Portfolio Allocation Mechanism (PAM) replace the PCIA. While the California Public Utilities Commission dismissed the investor-owned utilities' initial PAM application, the investor-owned utilities continue to offer suggestions that were included in the PAM under this current rulemaking.51 CaICCA, which represents CCAs across the state, also recommended revisions and additions to the California Public Utilities Commission's guiding principles, including to "recognize California policies to promote development of CCAs" and to "respect CCAs' responsibility to develop their own generation portfolios.11s3 Mitigation Strategies Suggested by Each Option If "SCE's generation rates decrease or its non -bypassable charges increase," LACCE proposes to establish a Rate Stabilization Fund, invest in both long- and short-term contracts, and "emphasize the value of programs, local control, and environmental impact in marketing.1154 SBCP discusses the regulatory risks in great detail in its draft business plan and financial strategy. SBCP advises hiring a portfolio manager for energy risk management and establishing a regional JPA of CCAs to benefit from economies of scale." However, municipalities may face liabilities from guaranteeing startup loans. Additionally, they propose refraining from entering into long-term contracts prior to the revision of the PCIA.56 SBCP also proposes launching as quickly as possible in order to start building up reserve funds and to pay off loans prior to the PCIA revisions' Additionally, as a contingency plan, SBCP proposes to "maintain financial reserves and power contract obligations in a manner that affords notifying the CPUC and SCE of the intent to suspend CCA operations one year ahead of time ...and then to do so without having to raise rates, otherwise cause losses, fail to meet any extant debt service obligations, or breach any power contracts.""' " Ibid. 52 California Public Utilities Commission (2017). "Joint Comments of Southern California Edison Company (U 338-E), Pacific Gas And Electric Company (U 39-E), and San Diego Gas & Electric Company (U 902-E) on Order Instituting Rulemaking To Review, Revise, And Consider Alternatives to the Power Charge Indifference Adjustment." &,RQE 53 California Public Utilities Commission (2017). "Comments of the California Community Choice Association." 61r tI_ r� ac ..,�„C �Ic.,, .9 v _tubfa lbe t)car � t.l:lgeIa0 �k 1 . 1 10� u5 a107-61:_E"DE 54 LACCE (2017). "Los Angeles Community Choice Energy Business Plan Update.” Page 17. 55 Ibid. Page 35. 56 Ibid. 57 Ibid. Page 27. 58 Ibid. Page 27. .O CCEA proposes a "laddered" procurement strategy (as described in more detail in section 6.1), establishing a Rate Stabilization Fund, and participating in the CPUC's open rulemaking regarding the PCIA.59 For legislative and regulatory change risks more broadly, each option recommends some form of lobbying, working with other CCAs, and monitoring regulatory changes. When Assembly Bill 117 authorized the creation of CCAs in 2002, one of the main goals was to introduce competition into the energy market. Our previous research found that CCAs do appear to put downward pressure on electricity prices that customers pay while supporting the state's renewable energy and energy efficiency goals.60 As the energy market sees a proliferation of CCAs, this will further increase competition in the energy market. This section identifies some market force risks that we view as potential challenges for CCAs, and how each option is planning to address those. Increasing Electricity Rate Components: the 500% Surge in Transmission and Delivery Fees Transmission and delivery fees are charged by investor-owned utilities on a per kWh basis to all customers, including CCA customers within their territory. As seen in the figure below, the cost of transmission has strongly increased over time. For example, SCE transmission and distribution revenue requirements increased by a factor of five over the past decade. Such an important increase in cost will attract the attention of end-users on their electricity bills, making customers more sensitive to electricity prices. 59 CCEA (2017). "City of Santa Monica Community Choice Aggregation Technical Study: Summary of Results Draft." 60 UCLA Luskin Center for Innovation (2017). The Promises and Challenges of CCAs in California. 41 /M' a § 200, MW NO MP will V89 nil 2011 A14"IS 2014 This could be a disadvantage for CCAs that offer higher rates than investor-owned utilities in order to procure more renewables. Losing High Revenue -Generating Non -Residential Customers: the Threat of Direct Access Direct Access (DA) is a "retail electric service where customers purchase electricity from a competitive provider called an Electric Service Provider (ESP), instead of from a regulated electric utility."62 DA customers pay the exit fees, transmission, and delivery fees to their utility, similar to what CCA customers do. DA closed to new customers in 2001 and very successfully reopened temporarily in 2013 for non- residential customers. According to the California Public Utilities Commission, "Currently, the DA program is at capacity, as demand for DA service exceeded the load permitted under the adopted utility service area caps. 1161 If DA reopens again, and based on its past success, DA could be attractive enough to result in non-residential customers leaving their investor-owned utility or CCA. This is of particular risk to Santa Monica if it joins LACCE, which is expected to have power prices that reflect all the cities in the county. The ocean cooling makes Santa Monica and other coastal customers have loads that are lower cost to serve than elsewhere in the County, so customers may find substantial discounts in individualized rates quoted by DA providers. Moreover, if a DA customer has to pay exit fees (PCIA) to the investor-owned utility, there are currently no such regulatory mechanisms for CCAs to recover the financial loss resulting from excess power procurement from departing customers. 61 California Public Utilities Commission (2017). "California Electric and Gas Utility Cost Report." Page 18. 62 California Public Utilities Commission (2017). "California Direct Access Program." 63 California Public Utilities Commission (2017). "California Direct Access Program." 42 Losing Large Residential Customers: Self -Provisioning Self -provisioning, or islanding, is when a customer can meet all of their electricity needs without needing to import electricity from the grid. This is usually realized when distributed energy generation, such as rooftop solar, is combined with battery storage, load response, and energy efficiency. While islanding is currently not permitted in California, this could eventually change. As an example, Hawaii has two different Net Energy Metering (NEM) programs, one of which includes a self - provisioning option.64 If transmission costs keep increasing by a factor of 2.5 to 5 every decade, self -provisioning electricity might become a cost-effective option with the help of decreasing costs in solar energy, energy storage, and new technology such as bidirectional charging car batteries or smart appliances. Moreover, energy storage seems to be currently supported by the state and the federal legislature. For example, the Federal Senate Bill 1868 was introduced to offer federal tax credits to support energy storage. As an example, research by the Rocky Mountain Institute found that within 20 years, a commercial building property owner may be able to install a combination of solar and storage at costs that would be more cost effective than purchasing energy from their local utility.65 The figure below illustrates when some states may see self - provisioning become cheaper than their affiliate utility. 64 Hawaiian Electric, Maui Electric, Hawaii Electric Light (2017). "Customer Self -Supply and Grid -Supply Programs." i 1 . aw ry.k �aiik i,il3Ve ti_ .c sA��.cNea,� _rg hs ;w il.�pmc�3 ac:lnG ,Bc r� n �g 1 �u (gLtis�r.,self' 65 The Rocky Mountain Institute. "The Economics of Grid Defection.trl�l.19�v"�l,ty �Itl°�Jff�7.x.t..,.�lmi�4 c�9"9cf w dcrytl �a t'.'p�5i"k f: 43 Utility Retail Price Projection i,_, VS. UTILITY RETAIL PRICE r Mitigation Strategies Suggested by Each Option cog ftbO L.u1W11% KY S®nArtt®rf®,TX uuu rm L An 61k CA Hm,A&Au, HI ur mug Retaining customers, especially high revenue generating customers, is critical to a CCA's financial success and ability to maintain operations. LACCE proposes to "increase marketing... reduce overhead... expand to new customer markets... [and] consider merging with existing CCA" if they start losing customers. 17 SBCP has the most thought-out recommendations of all options when it comes to market risk mitigation. The financial strategy recommends to "monitor the evolution of the Direct Access debate at the CPUC and the Legislature"68 and "not engage in long-term contracts prior to... further clarity on the risk Direct Access poses."69 An additional risk mitigation recommendation, although not specific to a decrease in customer base, includes contracting "with a portfolio manager for power planning, contracting, and energy risk management" for resiliency purposes .71 66 The Rocky Mountain Institute. "The Economics of Grid Defection. k7mq,„lifo_Linfarclo�i��N�tra¢a�°9ds�u°v fi7 LACCE (2017). "Los Angeles Community Choice Energy Business Plan Update" Page 17. 69 SBCP (2017). "Financial Strategy." Page 42. 69 Ibid. Page 27. 70 SBCP (2017). "Financial Strategy." Page 27. WA SBCP also suggests that CCAs could stop replicating investor-owned utilities' rate structure and utilize their rate -setting authority in order to "offer individual customers a customized, and flexible, rate structure."71 Because CCAs do not need to seek the California Public Utilities Commission's approval for their rates, they could specifically pay attention to the needs of their larger customers and provide them with special services such as real-time pricing or tailored energy procurement. 71 Ibid. Page 42.. 45 111! 71 7111 Each option that Santa Monica is considering comes with tradeoffs, most notably between formal autonomy and economies of scale. It is important to weigh these tradeoffs in the context of providing competitive rates and programs in the face of a changing energy market. Los Angeles Community Choice Energy Because LACCE is likely to be the largest CCA option, it reduces Santa Monica's direct influence on decisions made by the board. The only decision Santa Monica would have full control over is the choice of electricity product to enroll their residents into by default. Currently, member cities do not have direct autonomy over rates, power content, or programs, and instead will collectively vote on these policies in the future. Unlike SBCP that has a detailed set of recommended energy policies, LACCE's strategy is to wait for all member cities to join before voting on most policies. This future decision-making process provides an opportunity for Santa Monica to form coalitions with other member cities to influence the integration of innovative strategies that would advance Santa Monica's priorities. Because this CCA will potentially be the largest CCA in the state, the size could offer its member cities economies of scale, greater negotiating power with other stakeholders, a more diversified energy portfolio, and a greater diffusion of financial risks over its members. As another positive, because Santa Monica represents a smaller share of the total load, their indirect financial contribution to startup and operating costs is likely to be lower than it would be with SBCP or CCEA. Lower operating costs and potentially higher margins would likely result in more funds to invest in local energy programs. In conclusion, LACCE is the most operationally ready and would require the least amount of work and financial commitment from Santa Monica to join. South Bay Clean Power The sub -regional SBCP could potentially offer Santa Monica a balanced compromise between the likely larger, regional LACCE and a single -city option. Member cities could benefit from greater influence in the voting process, if they are willing to reduce economies of scale. Moreover, SBCP offers a well -thought-out approach to energy management services and a business model with innovative components. W. The main challenges of this option are very low operational readiness and momentum, and a higher financial risk for the City itself. Santa Monica would be required to invest a lot of its time to get the CCA off the ground and recruit other member cities to join. If SBCP does not officially launch, Santa Monica could still consider implementing some of the recommended strategies developed by SBCP. California Choice Energy Authority Compared to the other options, CCEA's single -city hybrid approach would offer Santa Monica full autonomy on some of the most important decisions. CCEA is the only option so far to provide the City with full control over rate setting, power content, the default product, and the use of net revenues that could be invested in local energy programs or other priorities determined by Santa Monica City Councilmembers. CCEA would procure energy based on Santa Monica's policies and power mix preferences, and provide the City with rates that reflect the true cost of power supply. CCEA would also require that Santa Monica approves energy contracts longer than five years. However, even if CCEA considers members' input in decisions, it is not clear how much Santa Monica could influence the choice of third -party contractors and their energy procurement strategies without a seat on the CCEA board. Santa Monica's ambitious environmental goals and long-term strategy might necessitate a flexible CCA structure in which the City can vote on and influence all decisions that would affect their energy procurement. Moreover, the CCEA option would offer Santa Monica fewer economies of scale compared to larger CCAs like LACCE or SBCP. Economies of scale may become increasingly important over the long-term given future regulatory and market force risks that could reduce the amount of net revenues available for programs, a rate stabilization fund, or debt services. Fly ATTACHMENT #5 Resolution No. 2017-202 RESOLUTION NO. 2017-202 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK TO CONDUCT A TECHNICAL STUDY TO EVALUATE A COMMUNITY CHOICE AGGREGATION WITH CALIFORNIA CHOICE ENERGY AUTHORITY ("CCEA") WHEREAS, Community Choice Aggregation (CCA) is a mechanism by which local governments assume responsibility for purchasing and providing electrical power for residential and commercial customers in their jurisdiction in partnership with Southern California Edison (SCE); WHEREAS, CCA, if determined to be technically and financially feasible, may procure energy from renewable sources and reduce greenhouse gas emissions generated by the Baldwin Park community; WHEREAS, CCA could provide substantial environmental and economic co -benefits to all residents and businesses in the City of Baldwin Park; WHEREAS, CCA provides the opportunity to fund and implement a wide variety of energy related programs of interest to the community; and WHEREAS, determining the technical and financial feasibility of CCA requires obtaining and analyzing Southern California Edison energy load data and conducting a Technical Feasibility Study. NOW THEREFORE, IT IS HEARBY RESOLVED AS FOLLOWS: SECTION 1. The City Council of the City of Baldwin Park authorizes the Chief Executive Officer, or her designee, to develop a CCA Technical Feasibility Study through an agreement with California Choice Energy Authority, with a total cost of the study not -to -exceed $63,000. SECTION 2. The City Council of the City of Baldwin Park authorizes the Chief Executive Officer, or her designee, to request energy load data from SCE for the purposes of preparing a CCA Technical Feasibility Study; and adoption of this resolution in no way binds or otherwise obligates the City of Baldwin Park to participate in a Community Choice Aggregation Program, unless it so chooses by passage of a City Resolution. PASSED, APPROVED, AND ADOPTED this 7th day of March 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS. CITY OF BALDWIN PARK I, ALEJANDRA AVILA, Deputy City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2017-202 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on March 7, 2018 and that the same was adopted by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ALEJANDA AVILA CITY CLERK COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: