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10.06.21 Staff Report
NOTICE AND CALL OF A SPECIAL MEETING OF THE CITY COUNCIL 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, October 6, 2021 at 5:00 PM. Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda. NO OTHER BUSINESS WILL BE DISCUSSED THE COUNCIL CHAMBER WILL BE OPEN TO THE PUBLIC IN ACCORDANCE WITH HEALTH OFFICIALS RECOMMENDATIONS. Posted: September 30, 2021. Emmanuel J. Estrada Mayor AFFIDAVIT OF POSTING I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of October 6, 2021. Marlen Garcia, City Clerk AGENDA BALDWIN PARKCITY COUNCIL SPECIAL MEETING COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 October 6, 2021 5:00 PM THE COUNCIL CHAMBER WILL BE OPEN TO THE PUBLIC ON A FIRST COME, FIRST SERVE BASIS, WITH LIMITED SEATING CAPACITY IN ACCORDANCE WITH HEALTH OFFICIALS RECOMMENDATIONS Audio Streaming will be available at: https://www.youtube.com/channel/UCFLZ0_dDFRjy59rhiDZ13Fg/featured?view_as=subscriber http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at: https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Mayor Alejandra Avila - Mayor Pro Tem Daniel Damian - Council Member Monica Garcia - Council Member Paul C. Hernandez - Council Member PLEASE TURN OFF ALL ELECTRONIC DEVICES PUBLIC COMMENTS The public is encouraged to address the City Council or any of its Agencies listed on this agenda. In accordance with Chapter 39 of the Baldwin Park Municipal Code, Speakers must address the Council as a whole and refrain from making impertinent, slanderous, or profane remarks or disrupt the peace of the meeting. COMENTARIOS DEL PUBLICO Se invita al público a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda. De acuerdo con el capítulo 39 del Código Municipal de la Ciudad de Baldwin Park, los comentaros deben se dirigidos al Concilio como una sola entidad, y no ser impertinentes, difamatorios, o profanos, o interrumpir la paz de la reunión. CALL TO ORDER: ROLL CALL: Council Members: Daniel Damian, Monica Garcia, Paul C. Hernandez, Mayor Pro Tem Alejandra Avila, and Mayor Emmanuel J. Estrada PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos será 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 tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2] If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 5:00 PM to 6:00 PM on October 6, 2021 to comments@baldwinpark.com. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during the meeting. If you are a non-English Speaker and require translation services in another language other than Spanish, or sign, please indicate your request in your communication 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City business can be conducted, after which time, communications can resume. OPEN SESSION/STUDY SESSION • Hotel/Motel Conversion Measure H Incentive Presentation Presented by City Planner Ron Garcia and Farzad Mashhood from LeSar Development Consultants RECESS TO CLOSED SESSION 1. Real Property Negotiations Pursuant to Government Code §54956.8: A. Property: 4437 Phelan Avenue Negotiating Parties: City of Baldwin Park and Hannah, Mitchell B and Hallie D B. Property: 13167 Garvey Avenue Negotiating Parties: City of Baldwin Park and Topline Automotive Inc. C. Property: 14338 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Mandani, Armado D., and Mandani, Evangelina M. CITY COUNCIL SPECIAL MEETING – 5:00 P.M. D. Property: 14332 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Weng, Wen Pin, and Wong, Yee Ling E. Property: 4753 Maine Avenue Negotiating Parties: City of Baldwin Park and D&Z Properties LLC F. Property: 12760-79 Torch Street Negotiating Parties: City of Baldwin Park and Habitat for Humanity G. Property: 12714 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Atlantis Properties, LLC 2. 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, et al Case No. BS163400 Los Angeles County Superior Court Case Case Name: Diane Nina Rendon v. City of Baldwin Park Case No. 21STCV13045 City of LA, County of LA, SGVWC, Elia B. de Palacios, Miguel Palacios and Does 1-25 Case Name: Anthony Romero v. City of Baldwin Park Case No. 2:21-cv-07293-FMO-AFM Officer Ryan Felton, Sergeant Joseph Meister, And Does 1 through 10 Case Name: Suzanne Ruelas v. City of Baldwin Park Case No. 20STCV17682 Case Name: Hadsell v. City of Baldwin Park Case No. BC548602 Case Name: Daniel Rodriguez v. City of Baldwin Park Case No. 21STCV21129 Case Name: David Salcedo v. City of Irwindale Case No. BC676398 Case Name: John Rios v. City of Baldwin Park Case No. 19STCP05465 Case Name: City of Baldwin Park v. McLean Case No. 20STCV25341 3. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6: Agency Designated Representative: Rebecca T. Green, Richards Watson Gershon, Enrique C. Zaldivar, Chief Executive Officer, and Laura Thomas, Human Resources/Risk Manager Employee Organizations: Baldwin Park City Employees Association (CEA) Baldwin Park Classified Confidential Employees Association (CCEA) Baldwin Park Classified Management Employees Association (CMEA) Baldwin Park Police Management Employees Association (PMEA) Baldwin Park Police Association (POA) Service Employee International Union (SEIU) 4. 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): Six (6) RECONVENE IN OPEN SESSION REPORT FROM CLOSED SESSION ADJOURNMENT CERTIFICATION I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of October 6, 2021. Marlen Garcia City Clerk For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or e- mail lmorales@baldwinpark.com. 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) AGENDA BALDWIN PARK CITY COUNCIL REGULAR MEETING COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 October 6 2021 7:00 PM THE COUNCIL CHAMBER WILL BE OPEN TO THE PUBLIC ON A FIRST COME, FIRST SERVE BASIS, WITH LIMITED SEATING CAPACITY IN ACCORDANCE WITH HEALTH OFFICIALS RECOMMENDATIONS Audio Streaming will be available at: https://www.youtube.com/channel/UCFLZ0_dDFRjy59rhiDZ13Fg/featured?view_as=subscriber http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at: https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Mayor Alejandra Avila - Mayor Pro Tem Daniel Damian - Council Member Monica Garcia - Council Member Paul C. Hernandez - Council Member PLEASE TURN OFF ALL ELECTRONIC DEVICES DURING THE MEETING. 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. In accordance with Chapter 39 of the Baldwin Park Municipal Code, Speakers must address the Council as a whole and refrain from making impertinent, slanderous, or profane remarks or disrupt the peace of the meeting. COMENTARIOS DEL PÚBLICO Se invita al público a dirigirse al Concilio o cualquier otra de sus Agencias nombradas en esta agenda, para hablar sobre cualquier asunto publicado en la agenda o cualquier tema que esté bajo su jurisdicción. De acuerdo con el capítulo 39 del Código Municipal de la Ciudad de Baldwin Park, los comentaros deben se dirigidos al Concilio como una sola entidad, y no ser impertinentes, difamatorios, o profanos, o interrumpir la paz de la reunión. City Council Agenda Page 2 CITY COUNCIL REGULAR MEETING – 7:00 PM CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL Council Members: Daniel Damian, Monica Garcia, Paul C. Hernandez, Mayor Pro Tem Alejandra Avila, and Mayor Emmanuel J. Estrada REPORT FROM CLOSED SESSION ANNOUNCEMENTS PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS • Tiny Home Update on Supportive Services & Community Engagement Presented by San Gabriel Regional Housing Trust & Volunteers of America Los Angeles • Proclamation for Domestic Violence Presented to Senator Susan Rubio • Proclamation for Breast Cancer Awareness Presented to Cynthia Espinoza, Community Services Officer PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos será el límite 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 tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2] If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 7:00 PM to 8:00 PM on October 6,, 2021 to comments@baldwinpark.com. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during the meeting. If you are a non-English Speaker and require translation services in another language other than Spanish, or sign, please indicate your request in your communication 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City business can be conducted, after which time, communications can resume. City Council Agenda Page 3 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. City of Baldwin Park’s Warrants and Demands Staff recommends that the City Council ratify the attached Warrants and Demands Register. 2. Treasurer’s Report – July 2021 Staff recommends that Council receive and file the Treasurer’s Report for July 2021. 3. Meeting Minutes Staff recommends that the City Council approve meeting minutes for the following City Council Meetings: Special City Council Meeting of August 18, 2021. Regular City Council Meeting of August 18, 2021. Special City Council Meeting of September 17, 2021. 4. Claim Rejection Staff recommends that the City Council reject the following claims and direct staff to send the appropriate notice of rejection to claimant(s): Ingrid Molina Claimant alleges property damage. These government claims, and all government claims, should be considered as potential lawsuits in the future. Thus, it is requested that all City Staff, the Mayor and all Council Members refrain from making any statements, whether public or private in nature. It is important that no statements be made so as to not prejudice this claim in any way which can happen if public or private comments are made about this claim by City staff or Council Members. 5. Consideration to Appropriate Funding for Recreational Programs and Events Staff recommends that the City Council: 1. Authorize the Director of Finance to appropriate funding and carry over balances to Fiscal Year 23-24 until funds are exhausted from the American Rescue Plan Act allocation for the Recreational Programs and Events; and 2. Authorize the Director of Recreation & Community Services to coordinate all elements associated with the Program. 6. Consideration of a Memorandum of Understanding (MOU) with Goodwill Southern California to Establish a Youth Employment Program Staff recommends that the City Council: 1. Approve proposed MOU with the GSC; and 2. Authorize the Mayor to execute the MOU. City Council Agenda Page 4 7. State of California-Funding Available for Open/Civic Space Project in the City of Baldwin Park Staff recommends that the City Council: 1. Adopt Resolution No. 2021-027 entitled, “A Resolution of the City Council of the City of Baldwin Park, California, approving the application for Grant Funds for the Zocalo/Civic Plaza Project”; and 2. Authorize the Chief Executive Officer (CEO) to negotiate and enter into a contract with the California Department of Parks and Recreation (California State Parks) to receive the $6,000,000 available in the FY 21/22 State Budget, and expend according to such contract, to create an open/civic space in an urban setting, the Civic Plaza Project known as the “Zocalo”; and 3. Authorize the CEO to execute any further documents to receive the funds. 8. Approve Resolution No. 2021-028 “A Resolution of the City Council of the City of Baldwin Park, California, Authorizing the Director of Public Works to Execute the Program Supplement Agreement No. N016 to Administering Agency-State Agreement for Federal-Aid Projects No. 07-5323R” Staff recommends that the City Council adopt Resolution No. 2021-028, entitled, “A Resolution of the City Council of the City of Baldwin Park, California, Authorizing the Director of Public Works to Execute the Program Supplement Agreement No. N016 to Administering Agency-State Agreement for Federal-Aid Projects No. 07-5323R.” 9. Approve a Request-for-Service Proposal with John L. Hunter & Associates for the NPDES Value Engineering Services for the Barnes Park Infiltration Regional Project Staff recommends that the City Council authorize the Director of Public Works to execute the proposal from John L. Hunter & Associates in the amount of $56,680 for the completion of the NPDES Value Engineering Services for the Barnes Park Infiltration Regional Project. 10. Approve Appropriation of Funds for Graffiti Removal along Southern California Regional Rail Authority (SCRRA), Metrolink Right-of-Way, between Fiscal Years 2014/15 and the Current Fiscal Year 2021/22 Staff recommends that the City Council: 1. Authorize the Director of Finance to appropriate $123,822.02 from Fund 244 – Prop A to cover outstanding and current FY21/22 invoices for work performed per Council Approved MOU between City of Baldwin Park and SCRRA; and 2. Authorize the Director of Finance to make necessary budget adjustments to allow for the processing of the payments. 11. Adopt Resolution No. 2021-029 Entitled, “ A Resolution of the City Council of the City of Baldwin Park, Approving the Application for Outdoor Equity Grants Program Grant Funds for the Other Backyard Project” Staff recommends that the City Council: 1. Adopt Resolution No. 2021-029 entitled “A Resolution of the City Council of the City of Baldwin Park, approving the application for Outdoor Equity Grants Program Grant Funds for The Other Backyard Project; and 2. Authorize the Director of Recreation and Community Services to execute any further documents. City Council Agenda Page 5 12. Appropriate Additional Funds for Cost Related to the Downtown Specific Plan Update It is recommended that the City Council authorize the Director of Finance to appropriate $16,832 from available General Plan Funds (Fund No. 235-General Plan Fees), Acct #235-40-440-51100-14984, to cover recent edits to the Draft Downtown Baldwin Park Specific Plan Update per Council direction for the reduction of density within the Downtown Specific Plan. 13. Certification of Purchase Agreement and Escrow Instructions for Acquisition of Real Property Located at 13167 Garvey Avenue in the Amount of $2,155,184 to Provide Emergency Shelter Housing for Homeless Families Staff recommends that the City Council: 1. Certify the Purchase Agreement and Escrow Instructions and direct the Chief Executive Officer to memorialize the purchase of the subject property; and 2. Authorize the Director of Finance to transfer $2,155,184 from the Future Development Fund #200 to loan to the Low/Mod Income Housing Fund 890 with 0% interest to cover the purchase and to pay back Fund #200 as cash becomes available in Fund #890. 14. Approving an Affordable Homeownership Expansion Agreement with San Gabriel Valley Habitat for Humanity Staff recommends that the City Council: 1. Approve the Affordable Homeownership Expansion Agreement with NHPI and SGV Habitat to explore homeownership expansion programs in Baldwin Park; and 2. Direct the Chief Executive Officer to appropriate funding up to $3,584,659 under the agreement with NHPI and SGV Habitat; and 3. Authorize the Chief Executive Officer to execute said agreement for a term of three (3) years with an optional two-year extension at the sole discretion of the City. 15. Approval of Community Development Block Grant-COVID (CDBG-CV) Public Service Grant Agreement for a Legal Services Program to Assist Residential Tenants and Landlords Staff recommends that the City Council: 1. Enter into a CDBG-CV public service grant agreement in the amount of $50,000 with NLSLA to provide Baldwin Park tenants and landlords with legal services regarding evictions and rent control brought on by COVID-19; and 2. Authorize the City Attorney to make any required conforming revisions to the grant agreement as required by the Department of Housing and Urban Development and direct the Chief Executive Officer to execute a CDBG-CV public service grant agreement. 16. Status Report – San Gabriel Valley Regional Housing Trust State Budget Earmark of $20 Million to Address the Affordable Housing Shortage and Homeless Crisis in the San Gabriel Valley Staff recommends that the City Council: 1. Receive and file the report, as it is for information only; and 2. Direct the Chief Executive Officer and the Director of Community Development to monitor when the funding opportunity will be made available and return to the City Council with a draft application to the SGVRHT for review, discussion, and approval. City Council Agenda Page 6 PUBLIC HEARING 17. A Request to the City Council from the Planning Commission on an Amendment to the City of Baldwin Park Municipal Code Chapter 127 and Chapter 153 Related to Commercial Cannabis to Reduce the Distance Requirements from 50 Feet of a Cannabis Distribution Facility to a Dwelling Unit within a Residential Zone, and Increase the Maximum Size of a Cannabis Distribution Facility (Location: all Industrial Commercial (IC) and Industrial (I) Zoning Designations; Applicant: Tony Kin for Baldwin Park Distribution, LLC; Case Number: AZC 21-01) Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only, Ordinance 1460, entitled, “AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 127 OF TITLE XI OF THE BALDWIN PARK MUNICIPAL CODE”; and Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only, Ordinance 1461, entitled, “AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 153 OF THE BALDWIN PARK MUNICIPAL CODE REALTING TO COMMERCIAL CANNABIS ACTIVITY”. 18. Re-Evaluation of the Merits of the Baldwin Park Resident Owned Utility District (BRPOUD) Program-Findings and Recommendations Staff recommends that the City Council: 1. Continue the Public Hearing and consider testimony; and 2. Find that it is in the City’s best interest for the City to no longer be in the electrical energy-supply business through its BROUD Program; and 3. Find that it is in the City’s Best interest to revert to full electricity utility service by Southern California Edison (SCE) for all of its residents and businesses; and 4. Declare the City’s Intent as the owner/operator of the BPROUD Program to decertify as a Consumer Choice Aggregation (CCA) entity following the steps stipulated by the Public Utilities Commission (CPUC); and 5. Declare the City’s Intent to terminate its agreement, on a mutual and voluntary basis, with the California Choice Energy Authority (Cal Choice), a public Joint Powers Authority (JPA) which provides CCA administration services to BPROUD through its family of consultants; and 6. Direct the CEO to work with the Department Heads, City Consultants, City Attorney, and all the other entities including the CalChoice Energy Authority (CalChoice), SCE and the CPUC to map out an implementation plan to carry out the direction of the City Council and to present actions to the City Council for final approval as appropriate, adhering to established contractual and regulatory requirements, with the intent to have the switchover to SCE fully in effect no later than by the end of August 2022, with the anticipation that the optimal time for the transition could be during the month of February 2022; and 7. Approve the rate increase for the generation under the BPROUD Program last presented to the City Council at its meeting of June 16,2021 and included here as an attachment. The generation rate will increase from 0.06708/kwh to 0.08362/kwh, effective September 1, 2021, to partially cover the structural deficit currently being subsidized by the General Fund; and City Council Agenda Page 7 8. Authorize the CEO with the concurrence by the Directors of Finance and Community Development Departments to transfer from the General Fund to the BPROUD Escrow Account up to $550,000, to cover the shortfall during the transition. Council had previously authorized a transfer of up to $1,325,000. This will increase the total to $1,875,000; and 9. Authorize the CEO to increase the contract amount limit authority with Cordoba Corporation for consultant services in support of the BPROUD Program reevaluation and transition beyond the CEO contract authority of $24,999; and to include in the contract a scope of work with Cordoba, staff augmentation services for other City Programs as determined by the CEO and requested by Department Heads; and 10. Direct staff to pursue funding eligibility opportunities to offset the City’s General Fund losses as a result of the subsidy of the BPROUD Program. The America Rescue Plan (ARP) and the CAP for instance. REPORTS OF OFFICERS 19. Baldwin Park – 2020 Power Content Label and Attestation Staff recommends that Council provide the attestation specified under California’s Power Source Disclosure (PSD) Program, which requires the governing council of a public agency providing retail electric service to endorse the accuracy of each annual report and power content label, as submitted to the California Energy Commission, for the previous year. In the case of BPROUD, such attestations will be based on the California Choice Energy Authority’s (CalChoice) technical review and will address the 2020 Annual Reports and Power Content Labels (PCL) prepared for the BPROUD community choice aggregation (CCA) program. 20. First Reading of Ordinance No. 1463, Prohibiting the Sale of Flavored Tobacco Products Staff recommends that the City Council introduce for first reading, by title only Ordinance No. 1463 “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK CALIFORNIA (RETAIL SALES OF TOBACCO PRODUCTS) AMENDING SECTION 125.020 (REQUIREMENTS AND PROHIBITIONS) OF CHAPTER 25 OF THE CITY OF BALDWIN PARK MUNICIPAL CODE TO PROHIBIT THE SALE OF FLAVORED TOBACCO PRODUCTS” 21. Approval of Logo and Selection of Name for Baldwin Park Tiny Home Village Staff recommends that the City Council approve a logo and select name for Baldwin Park Tiny Home Village. CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATION Request by Mayor Emmanuel J. Estrada • Mayor Estrada requests City Council discussion and direction to formulate a strategic Citywide Water Conservation Plan to address drought concerns and improve water efficiency. Request by Mayor Pro Tem Alejandra Avila • Mayor Pro Tem Avila requests City Council discussion on Los Angeles County eviction moratorium extension. City Council Agenda Page 8 Request by Council Member Daniel Damian • Council Member Damian requests City Council discussion and direction to add the Family Service Center to the preliminary ARPA list to fund facility improvements. ADJOURNMENT CERTIFICATION I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify that, under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 30th day of September, 2021. Marlen Garcia City Clerk For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or via e-mail at lmorales@baldwinpark.com. 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) STAFF REPORT ITEM NO. ________1_________ TO: Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance DATE: September 15, 2021 SUBJECT: City of Baldwin Park’s Warrants and Demands SUMMARY Attached is the Warrants and Demands Register for the City of Baldwin Park to be ratified by the City Council. RECOMMENDATION Staff recommends that the City Council ratify the attached Warrants and Demands Register. FISCAL IMPACT The payroll for the last period was $439,730.23 and the attached General Warrants Register was $533,710.86 for a total amount of $973,441.09. 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 last payroll of the City of Baldwin Park consists of check numbers 201154 to 201164 Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 28492 to 28704 for the period August 8, 2021 through August 21, 2021, inclusive; these are presented and hereby ratified in the amount of $439,730.23. 2. General Warrants, with the bank drafts in the amount of $262,501.72 and checks from 233665 to 233768 in the amount of $271,209.14 for the period of August 24, 2021 to September 2, 2021, inclusive; in the total amount of $533,710.86 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. LEGAL REVIEW Not Applicable ATTACHMENT 1. Check Register STAFF REPORT ITEM NO. ________2_________ TO: Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance DATE: October 6, 2021 SUBJECT: Treasurer’s Report – July 2021 SUMMARY Attached is the Treasurer’s Report for the month of July 2021. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code. RECOMMENDATION Staff recommends that Council receive and file the Treasurer’s Report for July 2021. FISCAL IMPACT None BACKGROUND City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis. LEGAL REVIEW Not Applicable ATTACHMENT 1. Exhibit “A”, Treasurer’s Report STAFF REPORT ITEM NO. ________3_________ TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk DATE: October 6, 2021 SUBJECT: Meeting Minutes SUMMARY The City Council held Special and Regular City Council Meetings on the dates listed below. RECOMMENDATION Staff recommends that the City Council approve meeting minutes for the following City Council Meetings: Special City Council Meeting of August 18, 2021 Regular City Council Meeting of August 18, 2021. Special City Council Meeting of September 17, 2021. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND Not applicable ALTERNATIVES Not applicable LEGAL REVIEW This report does not require legal review. ATTACHMENT 1. SP Minutes 8/18/21 2. Regular Minutes 8/18/21 3. SP Minutes 9/17/21 MINUTES BALDWIN PARK CITY COUNCIL REGULAR MEETING August 18, 2021, 7:00 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order 7:10 PM by Student Mayor Estrada. INVOCATION The invocation was provided by Pastor Jackson. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Chief Executive Officer Enrique C. Zaldivar. ROLL CALL City Clerk Garcia performed roll call: MEMBERS PRESENT: Council Member Daniel Damian Council Member Monica Garcia Council Member Paul C. Hernandez Mayor Pro Tem Alejandra Avila Mayor Emmanuel J. Estrada ELECTEDS PRESENT: City Clerk Marlen Garcia City Treasurer Maria Contreras ANNOUNCEMENTS City Council Members are also members of the Board of Directors of the Housing Authority, and Finance Authority, which are concurrently convening with the City Council this evening and each Council Member is paid an additional stipend of $30 for attending the Housing Authority meeting and $50 for attending the Finance Authority meeting. Council Member Garcia requested the meeting be adjourned in memory of Javier Limon and sent her condolences to the Limon family. Mayor Pro Tem Avila thanked the Police Department on behalf of the School District for their partnership. PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS • San Gabriel Valley Safe Parking Presentation Presented by Tashera Taylor, Chief Executive Officer from Foothill Unity Center, Inc. Regular Meeting of 08/18/21 Page 2 of 6 Tashera Taylor provided an overview of the program highlighting the duration of the program, accommodations, security, funding, and the partnership with the municipalities. Mayor Estrada and Mayor Pro Tem Avila requested that this program primarily service kids and Council Member Hernandez requested services be made available to seniors as well. • Oath of Office of City Commissioners Mayor Estrada and City Clerk Garcia conducted the oath of office to Planning and Recreation Commissioners. • Certificates in Recognition of the Food Distribution Collaborative and CDBG/CARES-CV Senior Delivery Program Volunteers, Partnerships and Staff City Council thanked all of the partners and volunteers for their services during the pandemic. • Recognition of Baldwin Park High School Football Players Josh Arevalo committed to CAL Lutheran University Isaiah Lopez committed to University of La Verne Benny Ramos committed to Pacific University Daniel De La Torre committed to University of Redlands The team coach accepted the certificates and thanked the City Council for the recognition. PUBLIC COMMUNICATIONS Mayor Estrada opened Public Communications at 8:18 PM. Claudio Gonzales and Esther expressed community concerns regarding drive by shootings and violence on Mayland Avenue and requested the City’s assistance. Rosalba Rojas commented on rent increases initiated by her landlord and requested the City’s assistance along with other tenants present. Juan Mondragon from Don Verde LLC, requested the City’s cooperation during the transition process to provide required documents to continue his business. Javier Vargas requested a traffic study be conducted on Puente and Willow for student’s safety. John Rios commented on the lack of enforcement towards street vendors. Greg Tuttle suggested a change in shifts to code enforcement to cover the weekends; commented on the Salcedo settlement and lawsuit; and spoke on election corruption. Regular Meeting of 08/18/21 Page 3 of 6 Mr. Luna requested a financial report from the Finance Department. Mario Maciel Jr. requested the City Council look into the apartment complex previously mentioned by a speaker due to code violations. Mayor Estrada closed public communications at 8:45 PM. Mayor Estrada stated the City was working on an ordinance to address street vending and touched on the Salcedo settlement. Council Member Garcia clarified misinformation stated regarding the Salcedo settlement. CONSENT CALENDAR All items listed under the consent calendar are considered to be routine business by the Council Members and were approved with one motion. Item No.4 was pulled from the consent calendar for separate consideration. MOTION: It was moved by Mayor Estrada, seconded by Council Member Hernandez to approve the remainder of the Consent Calendar. Motion carried by unanimous consent. 1. City of Baldwin Park’s Warrants and Demands The City Council ratified the attached Warrants and Demands Register. 2. Treasurer’s Report – June 2021 The City Council received and filed the Treasurer’s Report for June 2021. 3. Meeting Minutes The City Council approved meeting minutes for the following City Council Meeting: Special City Council Meeting of August 4, 2021. Pulled for Separate Consideration 4. Consideration to Approve Amendment No.3 to the Professional Services Agreement with Southland Transit Inc. for Services and Operations Related to the City’s Dial-A-Ride and Fixed Route Transit Program Council Member Hernandez asked whether seniors continued to receive a discount through this service and requested staff also include services for homeless and those who do not have the means to pay for public transportation. Mayor Estrada requested a study session to discuss improving routes. MOTION: It was moved by Council Member Hernandez, seconded by Mayor Estrada to Approve Amendment No. 3 to the Professional Services Agreement with Southland Transit, Inc., and Authorize the Mayor to execute the Amendment; and Authorize the Director of Public Works to execute any documentation to allow program changes; and Regular Meeting of 08/18/21 Page 4 of 6 Authorize the Director of Finance to make necessary budget adjustments. Motion carried by unanimous consent. CITY COUNCIL ACTING AS SUCCESSOR AGENCY OF THE DISSOLVED 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. MOTION: It was moved by Mayor Estrada, seconded by Mayor Pro Tem Avila to approve the Consent Calendar. Motion carried by unanimous consent. SA-2 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Treasurer’s Report – June 2021 The Board received and filed the Treasurer’s Report for June 2021. PUBLIC HEARING 5. Adoption of Resolution No. 2021-026, Adjusting Rates for Baldwin Park Resident Owned Utility District – Continued Public Hearing MOTION: It was moved by Mayor Estrada, seconded by Council Member Hernandez to continue the Public Hearing to the regularly scheduled City Council Meeting of October 6, 2021. Motion carried by unanimous consent. REPORTS OF OFFICERS 6. Approval of Proposed Allocation of American Rescue Plan Act (ARPA) Funding In-depth discussion was held regarding the use for the 20 police vehicles, regarding the rehabilitation Public Works Yard, records room, and ensuring the money was allocated towards community needs. MOTION: It was moved by Mayor Estrada, seconded by Mayor Pro Tem Avila to authorize staff to proceed with the acquisition of 20 vehicles for the Police Department with ARPA Funding and designate $50k for design and study for the rehabilitation of the Public Works Yard, approval of allocation for IT, and preliminary approval of list for designated items, and authorize the Finance Director to track and make appropriate funding allocations. Motion carried by unanimous consent. CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATION Request by Council Member Paul C. Hernandez Regular Meeting of 08/18/21 Page 5 of 6 • Council Member Hernandez requests City Council discussion and direction to develop a City Policy on diversity, equity, and inclusion delineating a cohesive streamlined vision to best serve the interests of our municipal community. Council Member Hernandez stated the development of this program would support staff, evaluate various positions to ensure training is provided, and secure an equitable recruitment process. Request by Chief Executive Officer, Enrique C. Zaldivar • Chief Executive Officer Zaldivar requests City Council receive an informational report presented solely for discussion on the development of a uniformed City-Wide COVID- 19 Preparedness and Response Plan. CEO Zaldivar provided an overview of the current COVID-19 numbers and measures being considered with other agencies to combat the virus. Discussion regarding vaccinations, teleworking, and limiting capacity at certain venues was held. The City Council unanimously requested a report be brought back on best practices implemented by other cities to address COVID-19 concerns in the workplace and hold a discussion at the next meeting with additional statistics. The City Council recessed into closed session at 10:49 PM. The City Council reconvened at 12:10 PM. REPORT ON CLOSED SESSION City Attorney Robert N. Tafoya announced a settlement agreement on the Salcedo matter of $4.8 million was agreed upon, with ICRMA paying $4.7 and the City $100,000. Motion carried by unanimous consent. ADJOURNMENT There being no other business to discuss, and all other matters having been addressed, a motion was made by Mayor Estrada, seconded by Mayor Pro Tem Avila, to adjourn the meeting at 12:14 p.m. Regular Meeting of 08/18/21 Page 6 of 6 Mayor: ATTEST: __________________________ Emmanuel J. Estrada, Mayor Marlen Garcia, City Clerk APPROVED: __________________ Special Meeting of 8/18/21 Page 1 of 5 MINUTES BALDWIN PARK CITY COUNCIL STUDY SESSION AND SPECIAL MEETING August 18, 2021, 5:00 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order at 5:07 PM by Mayor Estrada. ROLL CALL City Clerk Garcia performed roll call: PRESENT: Council Member Daniel Damian Council Member Monica Garcia Council Member Paul C. Hernandez Mayor Pro Tem Alejandra Avila Mayor Emmanuel J. Estrada PUBLIC COMMUNICATIONS Mayor Estrada opened Public Communications at 5:07 PM. Seeing no one wishing to speak, Mayor Estrada closed Public Communications at 5:07 PM. OPEN SESSION • Accessory Dwelling Unit (ADU) Ordinance Update Presented by City Planner, Ron Garcia City Planner Ron Garcia provided an overview of the state laws regarding the adoption of ADU’s and limitations identifying whether the language in our ordinance coincided with state law. Mr. Garcia stated an ordinance regulating ADU in the City would be brought to Planning Commission’s consideration and also to City Council. Council Member Hernandez asked questions pertaining to the setback limitations, the amount of rooms allotted, and limitation on multifamily units. Mr. Garcia provided the setbacks, and stated one room was required for every 800 square foot unit; up to 3 units per residential home without a requirement to provide parking. Additionally, Mr. Garcia provided an overview of the time length for the review process and the cost estimate along with other statistics. Mayor Pro Tem Avila asked for parking violations to be taken into consideration during the pandemic and approval process for ADU’s and requested for staff to warn and educate the public. Special Meeting of 8/18/21 Page 2 of 5 City Planner Garcia assured Mayor Pro Tem Avila that the intent was to educate residents and provide a warning before enforcing and commented on the plan to conduct a parking study. Council Members commented on the assessment of the property and whether the residents were aware that their homes would be recessed for additional tax. Council Member Garcia requested a report back on how the properties would be assessed, if a program could be created to incentivize legal action on illegal conversions, and whether the updated conversions or the tracking of new ADU’s would account to meet the RHNA goal. Planner Garcia thanked the City Council for their input and stated he would report back on the various topics at the next session. The City Council recessed into closed session at 5:57 PM. RECESS TO CLOSED SESSION 1. Real Property Negotiations Pursuant to Government Code §54956.8: A. Property: 13167 Garvey Avenue Negotiating Parties: City of Baldwin Park and Topline Automotive Inc. B. Property: 14338 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Mandani, Armado D., and Mandani, Evangelina M. C. Property: 14332 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Weng, Wen Pin, and Wong, Yee Ling D. Property: 4753 Maine Avenue Negotiating Parties: City of Baldwin Park and D&Z Properties LLC E. Property: 12760-79 Torch Street Negotiating Parties: City of Baldwin Park and Habitat for Humanity F. Property: 12714 Ramona Boulevard Negotiating Parties: City of Baldwin Park and Atlantis Properties, LLC 2. 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, et al Case No. BS163400 Los Angeles County Superior Court Case Special Meeting of 8/18/21 Page 3 of 5 Case Name: Daniel Rodriguez v. City of Baldwin Park Case No. 21STCV21129 Case Name: John Rodriguez v. City of Irwindale Case No. BC665690 Case Name: David Salcedo v. City of Baldwin Park Case No. BC676398 Case Name: Diane Nina Rendon v. City of Baldwin Park Case No. 21STCV13045 City of LA, County of LA, SGVWC, Elia B. de Palacios, Miguel Palacios and Does 1-25 Case Name: Baldwin Park Free Speech Coalition v. City of Baldwin Park Case No. 2:19-cv-09884CAS-E 3. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6: Agency Designated Representative: Rebecca T. Green, Richards Watson Gershon, Enrique C. Zaldivar, Chief Executive Officer, and Laura Thomas, Human Resources/Risk Manager Employee Organizations: Baldwin Park City Employees Association (CEA) Baldwin Park Classified Confidential Employees Association (CCEA) Baldwin Park Classified Management Employees Association (CMEA) Baldwin Park Police Management Employees Association (PMEA) Baldwin Park Police Association (POA) Service Employee International Union (SEIU) 4. 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): Three (3) 5. Real Property Negotiations Pursuant to Government Code §54956.8: A. Property: 4150 Puente Avenue (CAN 17-06) Negotiating Parties: City of Baldwin Park and Shaun Bershatski, RUKLI, Inc. Special Meeting of 8/18/21 Page 4 of 5 B. Property: 13111 Spring Street & 428 Cloverleaf Drive (CAN 17-07) Negotiating Parties: City of Baldwin Park and Ming Hong Huang, 428 Cloverleaf, LLC. C. Property: 4145 Puente Avenue (CAN 17-01) Negotiating Parties: City of Baldwin Park and Edward Avakyan Jenome Research D. Property: 13467 Dalewood Street (CAN 17-09) Negotiating Parties: City of Baldwin Park and Darrin Oganesian and Ryan Oganesian, RD Baldwin Park E. Property: 5148 Bleecker Street (CAN 17-12) Negotiating Parties: City of Baldwin Park and Sergio Torres, Enrique Vega and Moses Acosta, Medical Grade Farms BP F. Property: 15023 Ramona Boulevard (CAN 17-13) Negotiating Parties: City of Baldwin Park and Shaun Szameit, Joshua Pierce and Kevin Huebner, Kultiv8 Group, LLC. G. Property: 4621 Littlejohn Street (CAN 17-15) Negotiating Parties: City of Baldwin Park and Teresa Tsai, GSC Capital Group H. Property: 4802 Littlejohn Street, Suite B (CAN 17-29) Negotiating Parties: City of Baldwin Park and Yichang Bai W&F International Corp. I. Property: 5175 Commerce Drive (CAN 17-18) Negotiating Parties: City of Baldwin Park and Linda Thong, Pacific Cultivation, LLC. J. Property: 15440, 15442 and 15444 Arrow Highway (CAN 18-01) Negotiating Parties: City of Baldwin Park and Tim McCarty Ala Karte, LLC K. Property: 4802 Littlejohn Street (CAN 17-28) Negotiating Parties: City of Baldwin Park and Marco Perez and Ren Yoneyama, VRD, Inc. L. Property: 13460 Brooks Drive (CAN 17-31) Negotiating Parties: City of Baldwin Park and Sigrid Lopez and Artem Karapetyan, Green Health Industries, LLC. Special Meeting of 8/18/21 Page 5 of 5 M. Property: 1516 Virginia Avenue (CAN 17-30) Negotiating Parties: City of Baldwin Park and David Ju DJCBP Corp., dba Tier One Consulting N. Property: 14551 Joanbridge Street (CAN 17-02) Negotiating Parties: City of Baldwin Park and Tony Fong Baldwin Park Tale Corp. O. Property: 5018 Lante Street Negotiating Parties: City of Baldwin Park and Robert Gray Distinct Indulgence, Inc. RECONVENE IN OPEN SESSION The City Council reconvened into open session at 7:10 PM. The City Council recessed at 10:49 PM. The City Council reconvened into open session at 12:10 PM. REPORT ON CLOSED SESSION City Attorney Robert N. Tafoya announced a settlement agreement on the Salcedo matter of $4.8 million was agreed upon, with ICRMA paying $4.7 and the City $100,000. Motion carried by unanimous consent. ADJOURNMENT There being no further business, motion was made by Mayor Estrada seconded by Mayor Pro Tem Avila, to adjourn the meeting at 12:14 PM. _______________________ Emmanuel J. Estrada, Mayor ATTEST: Marlen Garcia, City Clerk APPROVED: ___________________ Special Meeting of 9/17/21 Page 1 of 2 MINUTES BALDWIN PARK CITY COUNCIL SPECIAL VIRTUAL MEETING September 17, 2021, 5:30 P.M. CALL TO ORDER The meeting was called to order at 5:44 PM by Mayor Estrada. ROLL CALL City Clerk Garcia performed roll call: PRESENT: Council Member Daniel Damian Council Member Monica Garcia Council Member Paul C. Hernandez arrived at 5:57 PM Mayor Pro Tem Alejandra Avila Mayor Emmanuel J. Estrada PUBLIC COMMUNICATIONS Mayor Estrada opened Public Communications at 5:45 PM. Seeing no one wishing to speak, Mayor Estrada closed Public Communications at 5:45 PM. REPORTS OF OFFICERS 1. Approval of General Fund Money to the BPROUD Program Escrow Account Chief Executive Officer Zaldivar provided an overview and an explanation of the urgency. Mayor Pro Tem Avila requested a report from finance with fixed amounts rather than estimates. Council Member Hernandez requested a report on the projected revenue in a five years span if the City continues with the program. After further discussion, the City Council took the following action: Motion: It was moved by Mayor Emmanuel Estrada, seconded by Council Member Damian to approve the transfer of up to $550,000 to cover the structural deficit for the month of September 2021 to prevent the City from going into default in its power purchase agreement, which would place the City in a breach of contract and rise the availability of electricity to the Baldwin Park residents. Motion carried by unanimous consent. Special Meeting of 9/17/21 Page 2 of 2 CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATION Request by Mayor Emmanuel J. Estrada • Mayor Estrada requests City Council discussion and direction to seek potential advertisement revenue and enhance bus shelters. Mayor Estrada directed staff to bring a report back to the City. ADJOURNMENT There being no further business, motion was made by Mayor Estrada seconded by Council Member Damian, to adjourn the meeting at 6:06 PM. _______________________ Emmanuel J. Estrada, Mayor ATTEST: Marlen Garcia, City Clerk APPROVED: ___________________ STAFF REPORT ITEM NO. ________4_________ TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer PREPARED BY: Laura J. Thomas, Human Resources Risk Manager DATE: October 6, 2021 SUBJECT: Claim Rejection SUMMARY This report seeks City Council consideration and direction to reject the Claims for Damages to person or property received for filing against the City of Baldwin Park. RECOMMENDATION Staff recommends that the City Council reject the following claims and direct staff to send the appropriate notice of rejection to claimant(s): Ingrid Molina Claimant alleges property damage. These government claims, and all government claims, should be considered as potential lawsuits in the future. Thus, it is requested that all City Staff, the Mayor and all Council Members refrain from making any statements, whether public or private in nature. It is important that no statements be made so as to not prejudice this claim in any way which can happen if public or private comments are made about this claim by City staff or Council Members. FISCAL IMPACT Fiscal impact is unknown at this time. BACKGROUND In order for the statute of limitations to begin on the claims received, it is necessary for the City Council to reject the claims by order of motion and that the claimants are sent written notification of said action. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ALTERNATIVES There are no other alternatives for the Council to consider since rejection of the claims is necessary for the Statute of Limitations to begin on the claims received. ATTACHMENTS None ITEM NO. 5 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 6, 2021 SUBJECT: Consideration to Appropriate Funding for Recreational Programs and Events SUMMARY The purpose of this staff report is for City Council to consider the appropriation of funding for Recreational Programs and Events from the American Rescue Plan Act. RECOMMENDATION Staff recommends that the City Council: 1. Authorize the Director of Finance to appropriate funding and carry over balances to Fiscal Year 23-24 until funds are exhausted from the American Rescue Plan Act allocation for the Recreational Programs and Events; and 2. Authorize the Director of Recreation & Community Services to coordinate all elements associated with the Program. FISCAL IMPACT The estimated cost to implement the Recreation and Community Services Recreational Programs and Events will be $850,350 for FY 2021-22 and $1,215,590 for FY 2022-23. The total estimated cost of $2,065,940, which will be funded from the American Rescue Plan Act. BACKGROUND Due to COVID-19 Pandemic, the City is slated to receive approximately 23 million over the next two (2) Fiscal Years of Federal Relief under the American Rescue Plan Act of 2021 to help stimulate the economy. The State has significantly re-opened various sectors of the economy as of June 15th. As working families returned to work, many were faced with the challenge of securing affordable recreational programs and events which were exacerbated by the hardships brought on by the COVID- 19 Pandemic. A series of Community Engagement Meetings were held to hear what the community had to say on how to allocate some of these funds. Below are suggestions of how the community would like to see these funds allocated. Description Groups FY 2021-22 FY 2022-23 * FREE Specialty Classes, Enrichment Classes, Aquatics and Sports Programs for Residents (with minimum criteria to pay for participants fees). Youth 100,000 125,000 * FREE Excursions for youth, teen, and family (includes transportation) Family 40,000 50,000 * Fully Funded Food Collaborative Program to Address Food Insecurity including Holiday Food Basket Program (Monthly giveaway on Saturdays) Family 127,500 150,000 Cultural Arts Exhibits Family 7,500 10,000 * Free Senior programs, activities, events and excursions (2 per month and includes transportation) Senior 132,950 181,590 FREE Senior Meals weekly (350 seniors) Senior 245,000 364,000 Santa Clothes Program (310 Children @ $60 each + toys) Youth 25,000 25,000 Childcare Fees (70 School year and 110 Summer Camp) Youth 162,400 285,000 Downtown Street Market (Business Fees for Booths) Business 5,000 20,000 Posada (supplies, food, piñatas and decorations) Family 5,000 5,000 Total 850,350 $ 1,215,590 Staff recommends the above recreational programs and events to assist families and business community impacted by COVID-19 Pandemic. The recreational programs are for Baldwin Park residents or businesses. The Childcare Fees Program guidelines will be consistent with the Community Development Block Grant eligibility documents used to verify address, parental relationship, and proof of employment for the Childcare Programs. The requirements are listed below: • Program Application • Proof of Baldwin Park residency (current utility bill, CA I.D. or Driver’s License) • Establish Parental Relationship to Child (Recent Income Tax Return or Birth Certificate) • Proof of Employment The free fees/services are for Baldwin Park residents. Staff will work with the Finance Department to create program guidelines for each respective programs to ensure best accounting practices are implement to reimburse participants. In addition, a promotional campaign to advertise all the FREE in all City social media platforms, website, BPNOW Newsletter and flyers. ALTERNATIVES Provide alternative direction. LEGAL REVIEW None required. ATTACHMENTS None. STAFF REPORT ITEM NO. _________6________ TO: Honorable Mayor and Members of the City Council FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 6, 2021 SUBJECT: Consideration of a Memorandum of Understanding (MOU) with Goodwill Southern California to Establish a Youth Employment Program SUMMARY The purpose of this staff report is for City Council to consider a Memorandum of Understanding (MOU) with Goodwill Southern California (GSC) to establish a youth employment program in Baldwin Park. RECOMMENDATION Staff recommends that the City Council: 1. Approve proposed MOU with the GSC; and 2. Authorize the Mayor to execute the MOU. FISCAL IMPACT There is no fiscal impact at this time with the approval of this MOU. There will be no compensation to Goodwill for their services. BACKGROUND The City of Baldwin Park has identified the need to create employment opportunities for local youth. To address this staff has begun exploring and establishing a youth employment program that would target youth ages 16-18. The intent of the program would be to provide valuable work experience for the participating youth, while also providing employers with needed workers. Understanding that GSC was also contracted to provide workforce programs in the area, they were also brought into the discussions. GSC is able to provide pay to participating youth for 120 hours. Of these 120 hours, 20 would be for job readiness training and 100 would be for actual work. The MOU’s establishes roles and responsibilities of each agency and facilitates data sharing. The City will provide the following: Assist with outreach and recruitment of youth; Assist with the promotion of the program including the use of the City’s website, BP Now newspaper, City events such as Concerts in the Park and the Downtown Street Market, City related social media platforms, bus stops, placement of informational material in City facilities and announcements at City Council Meetings; Provide employment opportunities in various City departments for youth participants; Complete all requirements for hired youth including Work Performance Evaluations and Worksite Expectation Reviews; Assist with the recruitment of employers, including employers in and outside the city by providing information directly to businesses, business associations, other public entities and other city partners; Provide GSC with the use of City facilities to conduct informational seminars; and Promote program successes through public relations efforts. The program’s goal is to have 200 youth participate in the first year. The term of the MOU is for one (1) year with an option to extend by written agreement between both parties. The MOU has a 30 day written termination option. ALTERNATIVES The City Council may decide not to approve the MOU. LEGAL REVIEW The City Attorney has reviewed the MOU and approved it as to form. ATTACHMENTS 1. Memorandum of Understanding (MOU) 2. Exhibit A: Scope of Service 3. Exhibit B: Data Sharing Agreement 4. Exhibit C: Universal Release of Information 1 MEMORANDUM OF UNDERSTANDING PURPOSE: The purpose of this Memorandum of Understanding (hereafter referred to as “MOU”) is to enter into an agreement between Goodwill Southern California whom operates East San Gabriel and Baldwin Park AJCC (hereafter referred to as “GSC”) and the City of Baldwin Park, a General Law City (“City”). 1. This agreement is entered into in a spirit of cooperation by the signatory agencies in order to maximize utilization of resources in serving youth job seekers and employers. It is understood that the development, implementation and ultimate success of GSC Career Resource Center (CRC) requires mutual trust and teamwork between agencies working together to accomplish common goals. The intent of this MOU is to establish the operational collaboration between GSC and the City. 2. PARTIES: The Parties to this MOU are: Goodwill Southern California 342 N. San Fernando Road Los Angeles, CA 90031 Attn: Gabriela Goetz Associate Director (323) 223-1211 And City of Baldwin Park 14403 E. Pacific Avenue Baldwin Park, CA 91706 Attn: Enrique Zaldivar, PE Chief Executive Officer (626) 813-5204 3. DURATION OF AGREEMENT: This MOU shall become effective October 6, 2021 and terminate October 6, 2022 unless terminated earlier by the parties pursuant to 3(B). A. Modification: This MOU may be modified with the approval of both parties, provided both parties sign the revised agreement. A modification request must be presented in writing, 30 days prior to the proposed effective date. B. Termination: For non-mandated partnerships, either party may terminate its participation in this MOU without cause by providing 30-day written notice by a nationally recognized overnight delivery service with delivery to, personal service at, or mail to, the addresses in Section 2. The 30 days will begin on the date of personal service, the date placed with the overnight delivery service or the date of mailing as applicable. C. Extension: This MOU may be extended by written agreement between both parties, provided such agreement is signed by both parties prior to the termination date and contains the following: (1) A statement of intent to continue the provisions of the MOU; (2) Revised effective and termination dates and (3) Dated signature of the signatory’s designee. 2 4. INDEMNIFICATION: The City shall indemnify, defend and hold harmless GSC, its officers, agents and employees from all liability, to the extent related to the City’s negligent acts, errors, omissions or those of its employees or agents under this agreement. GSC shall indemnify and hold harmless the City, its officers, agents and employees from all liability, to the extent related to GSC negligent acts, errors, omissions or those of its employees or agents under this agreement. 5. PARTNERSHIP PROVISIONS: Both GSC and the City have certain rights and responsibilities as outlined below: A. Scope of Services: Both parties agree to perform during the term of this MOU, the task, obligations, and services set forth in the “Scope of Services” attached to and incorporated into this MOU as Exhibit “A”. B. Dispute Resolution: All parties shall first attempt to resolve disputes informally. Any party may call a meeting to discuss and resolve disputes. All dispute resolutions must be approved by GSC’s Vice President to be binding on GSC and approved by the City’s CEO to be binding on the City. If the dispute is not resolved, it shall be referred to GSC’s Vice President and the City’s CEO who will work cooperatively to resolve the issue, if possible. W hile informal dispute resolution is preferred, it shall not be a condition precedent to filing a lawsuit. C. Governance: GSC consists of various partners representing the various facets of the community served. Therefore, the governance of GSC requires cooperative involvement of all partners. The GSC’s Executive Leadership shall endeavor to see that all contractual, fiscal and legal provisions are adhered to and that GSC remains fully operational. The City Executive Leadership shall ensure that their staff provides services outlined in Exhibit A and participate in GSC operations as outlined in the “Scope of Services”. 6. OPERATIONALPROVISIONS: A. Both parties shall be committed to health and safety requirements and to providing equal access to services by persons with disabilities. B. Both GSC and the City will support each other’s Mission, Vision and Values. It is understood that each organization has specific performance goals that they are striving to meet and that supporting each other through training and team work will result in increased achievement by all partners. C. Both GSC and the City will take an active role in promoting the services of the CRC to be provided by GSC and the City. Each shall provide current marketing materials for programs and services that indicate the nature of services offered, cost (if any), schedule, contact information, eligibility for services and other pertinent information. 3 7. INSURANCE AND SUBROGATION: A. GSC will maintain at least $2,000,000 aggregate General Liability Insurance with a reputable insurance provider and name City as additional insured on said policy. GSC will provide proof of insurance to City. B. Proof of Coverage. The City is self-insured, will provide adequate evidence of financial viability of such self-insurance coverage and such evidence must be updated annually. If GSC reasonably determines that the City’s finances do not sustain self- insurance, the City shall be required to obtain third-party coverage from a reputable insurance company. C. GSC and the City each agree to provide a waiver of subrogation for the other in the event of any property or liability loss or damage caused to GSC or the City, by the other. 8. CONFIDENTIALITY: A. Subject to any limitation imposed on the City by law, information regarding persons served will be shared amongst the City through a variety of methods, including but not limited to case management, referrals, electronic systems (such as Skills Match, email and local area network)., subject to any limitations imposed by law with regard to student records. Exhibit B further outlines the data sharing arrangement between the parties. B. All staff of both GSC and the City will respect confidentiality of all persons served. C. All parties agree to adhere to legal requirements set forth by the Welfare & Institutions Code, the Rehabilitation Act, Health Insurance Portability and Accountability Act (HIPAA) and other legal statutes or requirements to ensure the protection and privacy of persons served, as it pertains to this particular MOU. 9. RELATIONSHIP OF THE PARTIES: A. It is the intention of the parties to create a relationship wherein GSC is an independent provider of services hereunder. Notwithstanding any term(s) or terminology used in this Agreement (i.e. the reference to GSC as “Partner”), nothing in this Agreement shall be construed as creating the relationship of employer-employee or establishing any trust, partnership or joint venture arrangement between GSC and the City. Nothing in this Agreement shall deprive or otherwise affect the right of either party to conduct business activities which may be competitive with the services to be provided hereunder. B. GSC and the City shall each be responsible, respectively, for the assessment, qualifying, hiring, management, compensation and/or termination of employment of their respective employees who may provide any of the services contemplated by this Agreement. Nothing in this Agreement is to be construed to create any co-employment of any GSC and/or the City employee by the other. 4 10. NON-DISCRIMINATION: Both GSC and the City agree to comply with all Federal and State statues that prohibit discrimination. The parties certify that all persons employed by and customers served by the GSC, the City, or affiliates shall be treated equally without regard to race, religion, ancestry, national origin, sex, age, disability, marital status, political affiliation or beliefs. 11. CODE OF CONDUCT: Both parties agree to uphold each other’s code of conduct/ethics and maintain the highest levels of integrity when serving as a representative of their organization and the Career Resource Center. 12. FACILITIES USE: It is agreed that the City will provide GSC with the use of City facilities as outlined in Exhibit A “Scope of Services”. 13. AUTHORITY: The individuals signing below have the authority to commit the party they represent to the terms of this MOU and its attachments and do so commit by signing. This agreement is not in effect until it is signed by representatives of both GSC and The City. SIGNATURES Signature: __________________________________________________________________ Printed Name & Title: Gabriela Goetz, Associate Director Agency: Goodwill Southern California Address: 342 N. San Fernando Rd, Los Angeles, CA 90031 Telephone: (626) 934- 5700 Signature: ________________________________________________________________ Printed Name & Title: Emmanuel J. Estrada, Mayor Agency: City of Baldwin Park Address: 14403 E Pacific Ave., Baldwin Park, CA 91706 Telephone: (626) 813-5204 Attachments: Exhibit A: Scope of Services Exhibit B: Data Sharing Agreement Exhibit C: Universal Release of Information Form 1 EXHIBIT A SCOPE OF SERVICES Youth Employment Program Goodwill Southern California and the City of Baldwin Park September 1, 2021 Under this Memorandum of Understanding agreement Goodwill Southern California (GSC) and the City of Baldwin Park (City) shall agree to the following related to the Youth Employment Program: • GSC will provide the following: o For youth Streamlined employee outreach, recruitment intake and orientation to services; Initial assessment of skills, aptitudes, abilities and supportive services; Job search and placement assistance including career counseling; Supportive services such as (interview and work clothing, transportation assistance, work items based on need and funding); On-going intensive career assessment, counseling and planning. Occupational classroom training; Skills upgrading and retraining; On-the-Job Training; Job readiness training; Soft-skills training; Fund required screenings for employment such as fingerprinting services, medical exams, and testing for Tuberculosis; Industry-based, customized training based on employer need with up front agreement to hire based on established conditions; Employment referral and follow-up services for customers attaining employment for not less than 12 months after the first known day of employment. o For the City Periodic updates to include progress on agreed to goals and data to verify progress Agree to share information regarding youths that are participating; Agree to meet periodically in person to discuss program progress, potential improvements or recommendations; Periodically provide program progress updates to city council; Provide updates on specific cases; Participate in promoting program successes through public relations effort. o For employers Participate in recruitment efforts; Provide program informational seminars; Respond to employer inquires; Work site assessment; Execute Youth Work Site Agreements; Assist in completing Worksite Expectation Reviews; Assist in completing Work Performance Evaluations. 2 • The City will provide the following: Assist with outreach and recruitment of youth; Assist with the promotion of the program including the use of the City’s website, local BPNow newspaper, City events such as Concerts in the Park and the Downtown Street Market, City related social media platforms, bus stops, the placement of informational material in City facilities and announcements at City Council Meetings; Provide employment opportunities in various city departments for youth participants; Complete all requirements for hired youth including Work Performance Evaluations and Worksite Expectation Reviews; Assist with the recruitment of employers, including employers in and outside the city by providing information directly to businesses, business associations, other public entities and other City partners; Provide GSC with the use of city facilities, such as the Teen Center or the Family Service Center, to conduct informational seminars; Promote program successes through public relations efforts. 1 Exhibit B Data Sharing Agreement GSC CRC is an agency designed to help meet the vocational goals of customers. Data is one of the Center’s most valuable resources and requires responsible and ethical use. GSC relies heavily on its electronic data processing systems and data stored in them to meet its educational, informational and operational needs. It is essential that these systems be protected from misuse. Further, data and computer systems will be maintained to ensure the highest levels of confidentiality and privacy as required by legal and regulatory requirements (including, but not limited to Welfare & Institutions Code, HIPAA, etc.). All documentation shall be maintained in a systematic way and in a secure environment. To maintain the highest quality and to protect the trust given to us by the community, it is essential that we collectively demonstrate adherence to ethical and legal standards and ensure that these standards are enforced. Standards of Professional Data Sharing Practice: 1. Notwithstanding anything in this Memorandum of Understanding or its Exhibits, participant information will only be shared by GSC subject to limitations imposed by law. 2. Customer information may be shared with the City and collaborative agencies of the GSC CRC to determine and tailor services based on the needs of the customer and to reduce redundancy of information asked of the customer; 3. In that the City and its employees are exposed to sensitive information on a regular basis, each shall use discretion when and to whom they shall disclose such information. the City and its employees shall not disclose privileged and/or confidential information to unauthorized parties; 4. The City and its employees shall not discuss in public areas privileged and/or confidential information as pertains to GSC CRC clients. 5. User names and passwords may be assigned to each individual City employee and GSC CRC employee to ensure security of our information systems. All information exchanged between parties authorized to use the information systems, shall be processed in such a way that unauthorized persons cannot retrieve such information by any means; 6. Each user name and password is unique to the individual and shall not be shared with others at any time; 7. Data shall be disseminated in cooperation with organizational policies on confidentiality and HIPAA; 8. Reports or any information contained in our information systems is not for release to the general public without approval of the person served and the authorization of the Vice President of Workforce and Career Development for Goodwill Southern California. Definitions: Privileged: Access due to status or association. Confidential: Information that has a legal implication. 1 Exhibit C Universal Release of Information Form (To be used with all Job Seeker customers) Name: Date of Birth: Prior Name(s): Social Security #: Address: City, State, Zip: Home Phone: Cell Phone: Other Phone: I hereby authorize GSC, its staff and the City of Baldwin Park to engage in verbal, written, facsimile or computerized communication of information for the express purpose of determining my eligibility for services and/or for identifying services or agencies to assist me. All pertinent records and information can be released, including those regarding past, present or future information or records that may be needed for eligibility determination, monitoring or follow up purposes. This information may include, but shall not be limited to, income records, employment information, public assistance records, educational records, credit history, health/physical status records, vocational rehabilitation assessment and other assessments or evaluations. It is my understanding that any information obtained by any agent or partner of the GSC will hold this information in strictest confidence. Further I acknowledge that any information shared will be used in my best interests and to provide ease of access to services. This agreement is time-limited to 12 months while I am receiving services and a new agreement shall be signed for services extending beyond that point. ______________________________ ______________________________ Customer Name Customer Signature & Date ______________________________ ______________________________ Witness Name & Title Witness Signature & Date cc: customer ITEM NO. 7 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Sam Gutierrez, Director of Public Works Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 6, 2021 SUBJECT: State of California-Funding Available for Open/Civic Space Project in the City of Baldwin Park SUMMARY At their meeting of September 1, 2021, the City Council provided direction to the CEO, at the request of Council Member Damian, to ascertain the availability of funding at the State of California secured by Senator Susan Rubio (32nd District) in this FY 21/22 State Budget approval for the creation and development of open/civic space in an urban setting, and the process by which the City of Baldwin Park could apply and access the funding. The purpose of this report is for the City Council to adopt Resolution No. 2021-027 approving the application for grant funds for the Zocalo/Civic Plaza Project. RECOMMENDATION Staff recommends that the City Council: 1. Adopt Resolution No. 2021-027 entitled, “A Resolution of the City Council of the City of Baldwin Park, California, approving the application for Grant Funds for the Zocalo/Civic Plaza Project”; and 2. Authorize the Chief Executive Officer (CEO) to negotiate and enter into a contract with the California Department of Parks and Recreation (California State Parks) to receive the $6,000,000 available in the FY 21/22 State Budget, and expend according to such contract, to create an open/civic space in an urban setting, the Civic Plaza Project known as the “Zocalo”; and 3. Authorize the CEO to execute any further documents to receive the funds. FISCAL IMPACT There is no fiscal impact at this time. The City is scheduled to receive a grant in the amount of $6,000,000 from the California Department of Parks and Recreation. Upon request, it may be necessary to provide front funding from the general fund. BACKGROUND Approximately four (4) years ago, as part of our Capital Improvement Program development, the City’s Departments of Public Works and Recreation and Community Services had commissioned the architectural and engineering design of a Civic Plaza known as the “Zocalo” (which in Mexican Spanish represents a public plaza), for the area northwest of City Hall, at the intersection of Pacific and Maine Avenues. The City invested well over $500,000 in the completion of the design in bringing it to a bid- ready status-also known as ‘shovel-ready’ and conducted several public input meetings and the project was well received. In light of the State of California’s once-in a generation budget surplus for FY21/22 estimated at over $40B, through the efforts of Senator Rubio (32nd District), the State has indeed made funding available for projects that create open/civic space in an urban setting. The construction estimate for the “Zocalo” project was $5.8M 4 years ago. We would make the project fit the available funding by briefly updating specific features of the design should the updated cost estimate to include escalation exceeded the available funding; or the bid request can be structured with optional features to give us flexibility in fitting the award to available funding. The City of Baldwin Park will receive the funds for the open/civic space from the California Department of Parks and Recreation; to draw down the funds, the City of Baldwin Park will need to enter into a contract with the California Department of Parks and Recreation specifying use of the funds. The City will negotiate if at all possible for State Parks to advance the City up to 20% of the funds as startup funding for the construction of the project. The State has indicated funds were available as early as September 30, 2021. The CEO will coordinate with the California Department of Parks and Recreation and the State Senator Susan Rubio’s office to submit the City’s application in accordance with their guidelines, and will coordinate with the Director of Public Works and the Director of Recreation and Community Services to update the existing design as necessary. ALTERNATIVES The alternative would be not to approve Resolution No. 2021-027. LEGAL REVIEW No legal review is necessary at this juncture. ATTACHMENT 1. Resolution No. 2021-027 2. Proposed Site Plan of the Civic Plaza Project RESOLUTION NO. 2021-027 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ZOCALO/CIVIC PLAZA PROJECT WHEREAS, the Legislature of the State of California have approved funding via SB-129 for Parks, Recreation, and Resources to be granted to the City in the amount of $6,000,000; and WHEREAS, the California Natural Resources Agency/California Department of Parks and Recreation has been delegated the responsibility for the administration of the funding, setting up necessary procedures, and WHEREAS, said procedures established by the California Natural Resources Agency/California Department of Parks and Recreation require Grantee to certify by resolution the approval of application(s) before acquisitions of said applications(s) to the state; and WHEREAS, the Grantee will enter into an agreement with the State of California for Zocalo/Civic Plaza Project. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: SECTION 1. Approves the acceptance of general fund allocation for local assistance for the Zocalo/Civic Plaza Project. SECTION 2. Certifies that the California Natural Resources Agency/California Department of Parks and Recreation will have sufficient funds to operate and maintain the projects or will enter into an agreement with another entity to perform said operation and maintenance. SECTION 3. Appoints the Chief Executive Officer or his designee as agent to conduct all negotiations, execute and submit all documents including, but not limited to Project Information Form, agreements, payment request and so on, which may be necessary for the completion of the aforementioned project SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED this 6th day of October, 2021. ________________________________ EMMANUEL J. ESTRADA MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF BALDWIN PARK I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2021-027 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on October 6, 2021 and that the same was adopted by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MARLEN GARCIA CITY CLERK Baldwin Park Civic Center Plaza 2015 Conceptual Design SITE PLAN City of Baldwin Park Civic Center Plaza Conceptual Design SITE PLAN City HallMaine AvenueSt e r l i n g W a y Maine AvenueLocation Map Open Space/Civic Park Plaza ITEM NO. _________8________ STAFF REPORT TO: Honorable Mayor and City Council members FROM: Sam Gutierrez, Director of Public Works DATE: October 6, 2021 SUBJECT: Approve Resolution 2021-028, “A Resolution of the City Council of the City of Baldwin Park, California, Authorizing the Director of Public Works to Execute the Program Supplement Agreement No. N016 to Administering Agency- State Agreement for Federal-Aid Projects No. 07-5323R” SUMMARY This item will approve the adoption of Resolution 2021-028, authorizing the Director of Public Works to execute Program Supplement (PSA) No. N016 for Administering Agency-State Agreement for Federal-Aid Projects No. 07-5323R. The PSA will incorporate the Pacific Avenue and Bogart Avenue Traffic Signal and Median Improvements Project into the Master Agreement for administering federal funded projects. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 2021-028, entitled, “A Resolution of the City Council of the City of Baldwin Park, California, Authorizing the Director of Public Works to Execute the Program Supplement Agreement No. N016 to Administering Agency-State Agreement for Federal-Aid Projects No. 07-5323R.” FISCAL IMPACT There is no impact to the General Fund associated with the execution of the PSA. The PSA allows federal funds in the amount of $649,396.00 to be authorized from the Highway Safety Improvement Program Local (HSIPL) thru the administering agency (Caltrans District-7 Local Assistance Office). BACKGROUND On October 22, 2012, the City of Baldwin Park was awarded a State Highway Safety Improvement Program (HSIP) grant in the amount of $344,600 for the design and construction of the Pacific Avenue and Bogart Avenue Traffic Signal and Median Improvements. During the design process, it was determined that Metrolink would have to be involved in the review process due to the proximity of the project to the rail tracks after several meetings with Metrolink’s staff, it was agreed that improvements would need to be made along the railroad right-of-way in order to comply with Southern California Regional Rail Authority (SCRRA) and California Public Utilities Commission (CPUC) requirements. On April 15, 2016, the city entered into a construction and Maintenance Agreement with SCRRA for Rail Crossing Improvements at the Ramona Boulevard crossing. The proposed rail crossing improvements will be to SCRRAs standards and would make the crossing Quiet Zone ready. On December 21, 2016, the City Council approved a Design Services Agreement (DSA) for railroad design review services that included the scope imposed. At the same time, an amendment to the professional services contract with EBA was approved. The EBA amendment included the additional scope to meet the required improvements imposed by SCRRA and expanded the design to include additional improvements to bring the rail crossings to Quiet Zone readiness. On April 4, 2019, the City entered into a design services agreement with Southern California Regional Rail Authority (SCRRA) to assure that the plans and specifications (PS&E) are in compliance with rail safety crossing standards due to the proximity of the project to the railroad tracks. On April 16, 2021, the city received an authorization to proceed with the construction phase. DISCUSSION The Master Agreement is administered by the Agency-State Agreement for Federal Aid which was entered into by the City of Baldwin Park and the State of California on August 27, 2009. As new federal and state projects are awarded to the City, they are added to the “Administering Agency- State Agreement for Federal-Aid Projects Number 07-5323R” through Program Supplement Agreements (PSAs). As a condition for the State to reimburse grant funds, the City must execute the Program Supplement Agreement N016, which contains specific technical information such as detailed costs, scope, schedule, payments, reports, and other aspect of the project. Program Supplement Agreement N016 is added to the current Master Agreement No. 07-5323R to define the Federal- State-Local Agency relationship for this federally funded grant. This reimbursement-based program allows the City to invoice the state for funds granted under federal program No. HSIPL- 5323(032). This project is listed in the current budget Fiscal Year 2021-22 Capital Improvement Program as a continued project. ALTERNATIVES 1. The City Council may choose not to adopt Program Supplement Agreement N016. This action is not recommended as this will delay the work and may result in loss of Federal funds for project no. HSIPL 5323(032). 2. Provide Staff with alternate direction. ENVIRONMENTAL REVIEW The subject Safety Improvements Project is exempt from the California Environmental Quality Act (CEQA) pursuant to a Class 1 (Section 15201, Existing Facilities), subsection (c) exemption, which includes the repair, maintenance, and/or minor alternation of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (including road grading for the purpose of public safety). The key consideration for a Class 1 exemption is whether the project involves negligible or no expansion of an existing use. Despite this exemption, the Preliminary Environmental Study (PES) was approved by Caltrans District 7 during the construction authorization phase. LEGAL REVIEW None Required ATTACHMENTS 1. Resolution 2021-028 2. Program Supplement N016 to Administering Agency-State Agreement for Federal-Aid Projects No. 07-5323R RESOLUTION NO. 2021-028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ADMINISTER THE EXISTING MASTER AGREEMENT NO. 07-5323R AND TO EXECUTE THE PROGRAM SUPPLEMENT AGREEMENT WHEREAS, the City of Baldwin Park is eligible to receive Federal and/or State funding for Transportation Projects; and WHEREAS, the Federal and/or State Agencies revised the programming and funding process for Transportation Projects, which are incorporated into new Master Agreements; and WHEREAS, Master Agreements, Program Supplement Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with Federal and State Agencies including the California Department of Transportation before such funds could be claimed; and WHEREAS, the City of Baldwin Park wishes to delegate authorization to execute these agreements and any amendments thereto to the Director of Public Works or his designee. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the City of Baldwin Park agrees to comply with all conditions and requirements set forth in the Master Agreement and applicable statutes, regulations, and guidelines for all federally and/or State funded Transportation Projects. SECTION 3. That the Mayor and City Council approved Master Agreement which is effective June 1, 2009 to June 30, 2022 (OR UNTIL RECINDED BY THE CITY COUNCIL), and all Program Supplements and any Amendments thereto, for Federally and/or State Funded Projects. SECTION 4. That the Director of Public Works or his designee be authorized to execute the Program Supplement Agreement N016 and any Amendments thereto for federally and/or State Funded Projects. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 6th day of October, 2021. Emmanuel J. Estrada MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF BALDWIN PARK I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2021-028 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on October 6, 2021 and that the same was adopted by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MARLEN GARCIA, CITY CLERK SPECIAL COVENANTS OR REMARKS 07-LA-0-BWP HSIPL-5323(032) 1.The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual. 2.ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s). 3.ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumberances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual. 4.The Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). 5.As a condition for receiving federal-aid highway funds for the PROJECT, the 2Page of 3Program Supplement 07-5323R-N016- ISTEA SPECIAL COVENANTS OR REMARKS 07-LA-0-BWP HSIPL-5323(032) Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Excluded Parties List System (EPLS). 6.Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance. ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date. 7.Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing invoices for the construction phase. Please refer to Section 15.7 "Award Package" of the Local Assistance Procedures Manual. 3Page of 3Program Supplement 07-5323R-N016- ISTEA STAFF REPORT ITEM NO. ________9_________ TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works DATE: October 6, 2021 SUBJECT: Approve a Request-for-Service Proposal with John L. Hunter & Associates for the NPDES Value Engineering Services for the Barnes Park Infiltration Regional Project SUMMARY This item will approve Request-for-Service (RFS) proposal for the National Pollutant Discharge Elimination System (NPDES) Value Engineering Services with John L. Hunter & Associates for the Barnes Park Infiltration Regional Project. The services will include project managements, analyzing designed features, systems, equipment, and material selections for the purpose of achieving essential functions at the lowest life cycle cost consistent with intended performance, quality, reliability, and safety. RECOMMENDATION Staff recommends that the City Council authorize the Director of Public Works to execute the proposal from John L. Hunter & Associates in the amount of $56,680 for the completion of the NPDES Value Engineering Services for the Barnes Park Infiltration Regional Project. FISCAL IMPACT There is no fiscal impact to the General Fund. Funding in the amount of $2,495,505 is available through Measure W Grand Funds of which, $56,680 will be utilized for NPDES Value Engineering services. Approved Measure W Grant Funds Amount Total Available Funding (Fund # 278-50-520-58100-55001) $2,495,505.00 Total Estimated Contract Cost for NPDES Value Engineering Services Amount Contract for NPDES Value Engineering Services $56,680.00 BACKGROUND On November 6, 2018, Measure W for the Safe Clean Water Program (Program) was approved by Los Angeles County voters. Funding through Measure W is provided through a parcel tax of 2.5 cents per square foot of impermeable land area (buildings, concrete, etc.). Measure W Special Parcel Tax revenues collected by LACFCD will allocate ten percent (10%) to the District for implementation and administration of projects, forty percent (40%) to cities within the County, in the same proportion as the amount of revenues collected within each city, and fifty percent (50%) to regional programs and projects within various watershed groups. Stormwater, which is rainwater that flows over the ground and directly to a waterbody (e.g., San Gabriel River), becomes polluted from natural and chemical materials, litter, and other waste. Measure W provides cities, including the City of Baldwin Park, and Los Angeles County with funds to capture, treat, and recycle stormwater within the various watershed areas. Infrastructure projects and programs funded through the Program will incorporate nature-based solutions and have water quality, water supply, and community investment benefits. Measure W funding will increase drought preparedness, improve water quality and public health, promote green jobs, and ensure investment in enhanced quality of life for the City of Baldwin Park’s residents and businesses. Through Measure W funding, the City of Baldwin Park can invest in infrastructure projects and programs which comply with federal and state laws regulating water quality and reduce the amount of polluted stormwater flowing into the San Gabriel River, which recharges the groundwater that is approximately half our drinking water supply. The City of Baldwin Park applied to the Program during Round 1 Call for Projects (FY2020-2021) for a stormwater infrastructure project at Barnes Park (Project). The Project was chosen to receive funding for the requested amount of $14,735,690 programmed over four years through FY2023-2024. Barnes Park is within a 384-acre watershed that drains through a storm drain system directly into the San Gabriel River, which runs adjacent to the west side of the park. The Project features a pretreatment system and an underground stormwater infiltration system that will capture and infiltrate runoff from the residential area northeast of the park. DISCUSSION On April 21, 2021, the City Council authorized a pre-qualification list for on-call professional Engineering consultant services and approved Professional Services Agreements (PSAs) for Engineering Design, Plan Check, Construction Management, Inspection and Related Services. Additionally, the City Council provided Staff with direction to bring all RFS proposals exceeding the City’s purchasing policy limits for Council consideration. The cumulative total for these services exceeds the Executive signatory limits set by the City’s purchasing policy. The proposed work for the NPDES Value Engineering Services consists of coordinating with subconsultants, reviewing and summarizing design assessment, project oversight, design review of the 50%, 75%, 90% and 100% of the plans and specifications of the project. ALTERNATIVES 1. The City Council may choose not to approve. 2. Provide Staff with alternate direction. ENVIRONMENTAL REVIEW The action being considered by the City Council is pending California Environmental Quality Act (CEQA) determination. An Initial Study has been prepared; however further assessments will be conducted during the design of the project. LEGAL REVIEW None Required. ATTACHMENTS 1. John L. Hunter & Associates proposal for the National Pollutant Discharge Elimination System (NPDES) Value Engineering Services of the Barnes Park Infiltration Reginal Project. 1 August 31, 2021 John Beshay City of Baldwin Park 14403 E. Pacific Ave. Baldwin Park, CA 91706 Subject: Proposal for NPDES Value Engineering Services for Barnes Park Dear John Beshay: John L. Hunter and Associates (JLHA) in conjunction with MCM Management Co. (MCM) welcome the opportunity to provide our professional NPDES services to the City of Baldwin Park. JLHA is a local environmental consulting firm established in 1985 that has been assisting municipalities with their NPDES programs for over 25 years. Qualifications of MCM are included in Appendix A. Scope of Work The scope of services consists of providing knowledgeable personnel to provide NPDES value engineering services related to the design of the Barnes Park Infiltration Project. This will include analyzing designed features, systems, equipment, and material selections for the purpose of achieving essential functions at the lowest life cycle cost consistent with intended performance, quality, reliability, and safety. The tasks under this scope of services are itemized as follows: 1. Project management (i.e., coordinating with subconsultant and city, reviewing and summarizing design assessment, project oversight, etc.). This task is conducted by JLHA. 2. Basis of design review. This includes meetings and correspondence with the project engineer. This task is conducted by MCM. 3. 50% Design Review. This includes meetings, document review, and reporting. This task is conducted by MCM. 4. 75% Design Review. This includes meetings, drawing review, specifications review, and reporting. This task is conducted by MCM. 5. 90% Design Review. This includes meetings, drawing review, specifications review, and reporting. This task is conducted by MCM. 6. 100% Design Review. This includes meetings, drawing review, specifications review, bid document preparation, and bid support. This task is conducted by MCM. The following table lists the roles of the Project Team. Detailed qualifications of key personnel are included in Attachments A and B. 2 Project Title Team Member Information Project Manager (JLHA) Name Jillian Brickey, MS, CPSWQ, QSD/P, CGP ToR Roles Main point-of-contact and management of project delivery Project Engineer (JLHA) Name Chris Chew, PE Roles Design review support Project Engineer (MCM) Name Desi Alvarez, PE Roles Design review A summary of the estimated costs and Standard Rate Schedules are included on the following page. We do not anticipate exceeding the total cost estimate. If during implementation of our services, changes in our initial scope estimates result in a potential exceedance of the total cost estimate, we will inform the City's Project Manager as soon as possible. We will not exceed the total cost estimate without City authorization. Thank you again for the opportunity to offer our services. If you have any questions, you can reach me at jbrickey@jlha.net, or 562.676.5703. Sincerely, Jillian Brickey Director 3 JLHA Standard Rate Schedule Principal $195 / hour Director $175 / hour Program Manager $175 / hour Staff Engineer $175 / hour Project Manager $165 / hour Assistant Project Manager $155 / hour Project Engineer $155 / hour Compliance Specialist II $125 / hour Project Analyst II $125 / hour Industrial/commercial facility inspection $125 / unit Compliance Specialist I $115 / hour Project Analyst I $115 / hour Administrative Assistant, Laborer (OSHA 40hr certified) $75 / hour State Certified Laboratory Analysis Cost + 5% Legal Consultation, Court Appearances/Document review, etc. $250 / hour Subcontracted equipment Cost + 5% Fee Schedule effective as of January 1, 2021 JLHA does not add charges for overhead items such as administrative copying or mileage in and around the city. MCM Standard Rate Schedule Project Engineer $195 / hour 4 Estimated Costs JLHA and MCM will provide consultant services not to exceed the budgetary amount without the City’s prior authorization. Not-to-Exceed Cost Estimate Task Staff* Rate Hours Cost 1. Project Management PM (JLHA) $165 24 $3,960 PE (JLHA) $155 8 $1,240 2. Basis of Design Review Meeting PE (MCM) $195 8 $1,560 3. 50% Design Review Meetings PE (MCM) $195 16 $3,120 Document Review PE (MCM) $195 16 $3,120 Reporting PE (MCM) $195 8 $1,560 4. 75% Design Review Meetings PE (MCM) $195 16 $3,120 Drawing Review PE (MCM) $195 16 $3,120 Specifications Review PE (MCM) $195 16 $3,120 Report PE (MCM) $195 10 $1,950 5. 90% Design Review Meetings PE (MCM) $195 16 $3,120 Drawing Review PE (MCM) $195 16 $3,120 Specifications Review PE (MCM) $195 16 $3,120 Report PE (MCM) $195 10 $1,950 6. 100% Design Review Meetings PE (MCM) $195 20 $3,900 Drawing Review PE (MCM) $195 16 $3,120 Specifications Review PE (MCM) $195 16 $3,120 Bid Document Preparation PE (MCM) $195 24 $4,680 Bid Support PE (MCM) $195 24 $4,680 Total Cost $56,680 * PE: Project Engineer PM: Project Manager 5 Attachment A JLHA Resumes 6 Jillian Brickey, MS, CPSWQ, QSD/P, CGP ToR Director Jillian Brickey has fifteen years of experience in environmental management, specializing in stormwater and watershed management and water conservation. Her relevant experiences include implementing and managing NPDES municipal Permit programs for Low Impact Development, Development Construction, and TMDL/watershed management. Tasks include includes plan review and approval, reporting, training municipal staff in program implementation, and representing client interests in interactions with regulators and other stakeholders. Recent Experience and Project Qualifications Municipal NPDES Permit Management: Ms. Brickey serves as a Programs Manager of municipal NPDES Permit programs for multiple cities throughout the Southland. NPDES Permits managed include all elements of the MS4 and CGP Permits, including erosion/sediment control and Low Impact Development (LID) for construction projects, and TMDL implementation for water bodies impaired by trash, metals, toxics, and bacteria. Through these management activities, she has: ▪ Represented cities in MS4 NPDES Permit New Development compliance audits from the Regional Water Quality Control Board. (Seal Beach: 2010, 2015, Stanton: 2010). ▪ Developed TMDL compliance plans for Metals, Toxics, Bacteria, and Trash. (Lower Los Angeles River, Lower San Gabriel River, Long Beach Nearshore Watersheds: 2013-2016.) ▪ Served as primary contact with clients and represented their interests when interacting with regulators. (Covina, La Habra, Seal Beach, South Pasadena, Stanton, Pasadena, West Hollywood). ▪ Developed Stormwater Quality Management Programs (Seal Beach: 2011), LID compliance guideline documents (Gateway cities, 2014), and LID ordinances (2014). ▪ Held CGP QSD/QSP training as a CGP ToR (Pasadena, 2016) and led over one hundred municipal training sessions in MS4 and CGP Permits. (Over 20 municipal clients: 2008-2016). ▪ Reviewed on behalf of municipal clients hundreds of LID Plans, WQMPs, and SWPPPs and verified proper installation and maintenance of hundreds of LID BMPs. ▪ Supervised JLHA plan checking staff. Watershed Management: Ms. Brickey served as a Project Manager for the development of the WMPs for the Lower Los Angeles River and Lower San Gabriel River Watershed Groups (2013-2016). The WMPs were developed by MS4 Permittees with shared watershed boundaries, with the objective of achieving surface water quality standards. Tasks included evaluating existing control measures and developing new control measures and compliance schedules to achieve water quality standards. She also oversaw the development and implementation of LID ordinances as required by the WMP development process. This included preparing a LID Ordinance Equivalency Demonstration for the City of Long Beach. She has also led multi-jurisdictional workshops and technical committees on watershed management program implementation, and engaged with Regional Water Quality Control Board members, staff, and non- governmental organizations in support of contested issues regarding the watershed management compliance approach. Through representation of municipal clients’ stakeholder interests, Ms. Brickey has also participated in the development of watershed management programs and monitoring programs for the Upper Los Angeles River, Upper San Gabriel River, and Peninsula Cities Watershed Groups (2013-present). 15 Years of Experience in Water Quality Education M.S., Environmental Science, CSUF B.S., Zoology, Cal State Poly Pomona Certifications CPSWQ, EnviroCert (#0845) QSD/QSP, CASQA (#22731) CGP Trainer of Record, CASQA 7 Chris Chew, PE, QSD Staff Civil Engineer Overview Mr. Chew serves as a Staff Civil Engineer. He has over 20 years of municipal experience reviewing structural and architectural plans. His specialty lies in reviewing such plans for compliance with Permits (including MS4), City ordinances (including LID and Green Streets /Erosion Control), Building Codes, and other State Laws. Education • M.S. Civil Engineering, Texas Tech University • B.S. Civil Engineering, Texas Tech University Certifications and Licenses • CA Professional Civil Engineer (#47147) • Qualified SWPPP Developer (QSD) Related Experience With JLHA (Starting 2021) ▪ Reviews structural and architectural plans and residential and large and complicated buildings for compliance with the MS4 Permit, City Ordinances and State Law. ▪ Interacts with developers to facilitate completion of their projects. ▪ Code Consultant. City of Glendale, Principal Civil Engineer (2015-2020) ▪ Supervise and manage the Land Development, GIS, Surveying, Real Property, Stormwater and Wastewater Sections. ▪ Supervise and manage the review of grading and public improvement plans, encroachment plans, subdivision maps, covenant and agreements, street vacations and dedications. ▪ Update City's ordinances relating to engineering requirements in the Glendale Municipal Code, Glendal e Building Code and Low Impact Development Ordinance. ▪ Review development plans for construction and code compliance. ▪ Represent the City of Glendale in meetings with other public agencies relating to wastewater and stormwater issues. ▪ Manage and implement the Municipal Separate Storm Sewer System (MS4) program. ▪ Responsible for the management of the Wastewater contracts with City of Los Angeles relating to the Amalgamated System and the Los Angeles Glendale Water Reclamation Plant. ▪ Manage wastewater rate study involving cost of service analysis. ▪ Solicit, prepare, and manage professional service agreements. ▪ Coordinate with architects, engineers, contractors, and other City staffs on development projects. ▪ Review City Council's staff report submittals. ▪ Review and evaluate employee's job performance. City of Glendale, Senior Civil Engineer (2009-2015) ▪ Supervise and manage the Land Development, GIS, and Surveying Groups. ▪ Review development plans for construction and code compliance. ▪ Determine requirements for subdivisions, grading permits, construction permits and bonds. ▪ Coordinate with architects, engineers, contractors, and other City staffs on development projects. ▪ Review Council's staff report submittals. ▪ Response to citizen's requests and complaints. ▪ Manage the construction of federally funded slope repair project and supervise the analysis and reports on disputed construction costs, procedures, bids, and contract. ▪ Oversee preparation and revision of maps, surveys, wastewater records, and the storage and filing of various records and project files. ▪ Develop a handbook that describes the permitting procedures for various permits. ▪ Review and evaluate employee's job performance. 8 Attachment B MCM Qualifications 9 MCM Management Co. (MCM) MCM is a consulting engineering firm providing Project and Construction Management Services with extensive experience providing technical, financial, and institutional management of water and environmental engineering projects. The firm has a proven track record of working with public agencies, stakeholders, engineers, and contractors. Over the course of completing numerous water and public works capital improvement projects MCM has demonstrated the ability to develop projects and programs to meet regulatory requirements and agency goals, and to successfully deliver projects in a timely and cost-efficient manner. MCM brings a keen understanding of public agency requirements critical to facilitation and resolving project issues. MCM’s commitment is to establish and maintain effective working relationships with clients and pay close attention to schedules and costs while balancing a project’s need with the client’s needs to ensure cost effective and successful projects. The firm specializes in providing seamless project management services and strategic planning beginning with identifying needs, project conceptual development, developing financial strategies, grant preparation and management, design development, preparation of contract documents, award of construction contracts, construction management and inspection. MCM services include: • Representation in negotiating agreements • Entitlements and regulatory processing • Environmental compliance – CEQA documentation • Preparation of CEQA, design requirements and Requests for Proposal • Evaluation and selection recommendations for Design Professionals • Oversight of the design process • Preparation of construction bid documents • Administration of bidding process – including bid evaluation and recommendation of award of construction contract • Grant administration and reporting • Project closeout The following section includes the resumes and certifications of key personnel. 10 MCM Management Co. Desi Alvarez, P.E. _____________________________________________________________________________________ EDUCATION B.S. Civil Engineering, Loyola University, Los Angeles M.S. Civil Engineering Emphasis in Water Resources and Environmental Engineering, University of California, Davis. PROFESSIONAL REGISTRATIONS California Professional Engineer (Lic. No. C-30187) Arizona Professional Engineer (Lic. No. C-14893, inactive) PROFESSIONAL ASSOCIATIONS American Society of Civil Engineers American Water Works Association Water Environment Federation American Public Works Association Los Angeles City and County Engineers Association HONORS Tau Beta Pi National Engineering Honor Society Alpha Sigma Nu Jesuit Honor Society 2003 Public Works Leader of the Year, APWA So. Ca. Chapter Mr. Alvarez is an experienced public works manager with over 30 years of high-level agency experience and a proven track record of long-term strategic planning and program management. He specializes in providing public agencies and private companies with engineering support in the areas of program management, water system management, water supply development, acquisition strategies, hydraulic modeling and master planning, and project financing and rate studies. He possesses refined negotiation skills and a demonstrated ability to reach consensus among internal departments and outside agencies, including Federal, State, City and other local organizations. He has a broad range of experience in directing and managing public works capital improvement programs and has provided project management and technical support on over three hundred million dollars worth of capital projects. Mr. Alvarez has held key positions at various public agencies in California: • CEO, Chino Basin Watermaster • Deputy City Manager, City of Downey, CA. • Director of Public Works/City Engineer, City of Downey, CA. • City Engineer, City of Glendale, CA. • Director of Public Works/City Engineer, City of Redondo Beach, CA. • Manager of Design, East Bay Municipal Water District • City Engineer, City of Santa Monica, CA And additionally has been a consultant with several consulting firms: • DMA Consulting Engineers • Tetra Tech • Boyle Engineering • NORTEC Mr. Alvarez is active in numerous engineering associations and has served on various water boards and committees including the Central Basin Water Association Board of Directors; the Gateway Regional Integrated Regional Water Management JPA Board of Directors; the Southeast Water Coalition JPA Administrative Entity; and the California State Water Resources Control Board Sediment Advisory Committee. Mr. Alvarez has been published in several magazines, journals, and papers during his recognized career. STAFF REPORT ITEM NO. ________10_________ TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works DATE: October 6, 2021 SUBJECT: Approve Appropriation of Funds for Graffiti Removal along Southern California Regional Rail Authority (SCRRA), Metrolink Right-of-Way, between Fiscal Years 2014/15 and the Current Fiscal Year 2021/22 SUMMARY This item will approve an appropriation of funds in the amount of $123,822.02 for graffiti removal by Southern California Regional Rail Authority (SCRRA) along the Metrolink Right-of-Way (ROW). The services include graffiti removal along walls and other vandalized structures to preserve the quality of life by eliminating blight and attracting economic development. The amount includes payments for graffiti removal work for prior years. RECOMMENDATION Staff recommends that the City Council: 1. Authorize the Director of Finance to appropriate $123,822.02 from Fund 245 Prop C and Fund 254 Measure R to cover outstanding and current FY21/22 invoices for work performed per Council Approved MOU between City of Baldwin Park and SCRRA; and 2. Authorize the Director of Finance to make necessary budget adjustments to allow for the processing of the payments. FISCAL IMPACT There is no impact to General Fund. The following table lists the requested appropriation funds for FY 2021-2022: Appropriate Funds Amount Fund 245 – Proposition C $75,000.00 Fund 254 – Measure R $48,822.02 Total Appropriation Amount $123,822.02 BACKGROUND There are approximately 2.5 miles of rail traversing the City limits servicing 38 commuter trains and six freight daily and making it one of the busiest rail lines on the Metrolink system. Many walls and other structures along the rail right-of-way are being vandalized with graffiti. Due to safety concerns, the Southern California Regional Rail Authority (SCRRA/Metrolink) will not allow the City’s graffiti removal crews entry access to the rail right-of-way to abate graffiti. Most walls and other vandalized structures adjacent to the rail are privately owned. Private property owners and the City’s own graffiti removal crews are unable to enter the rail ROW to remove graffiti without an SCRRA Engineer-in- Charge (EIC) accompanying them. However, EIC’s are very difficult to schedule and cost $1,200 per day. With the understanding that the removal of graffiti is an important task in preserving the quality of life, in preventing crimes and in attracting economic development, the City of Baldwin Park and SCRRA entered into Memorandum of Understanding (MOU) agreement to allow SCRRA personnel to remove graffiti along the Metrolink right-of-way at the City’s expense. DISCUSSION The Agreement with SCRRA was entered into on July 16, 2014, and it was designed to facilitate the safe and timely abatement of graffiti along the rail right-of-way. Under the terms of the MOU, SCRRA would send out a three-person graffiti abatement crew for four (4) hours to remove graffiti along the rail right-of-way at a cost not-to-exceed $27,900 per year and would invoice the City on an annual basis. However, due to an internal oversight, SCRRA did not invoice the City immediately. In fact, SCRRA did not invoice the City between the years 2014 through 2021. On July 22, 2021, the City received a notification for outstanding invoices for work performed in the prior five (5) years. On August 23, 2021, staff met with SCRRA to discuss the discrepancy and the timeframe of the invoicing. During the discussion, it was agreed SCRRA did not provide invoices to the City in a timely manner. Subsequent to the meeting, the City reviewed the agreement and invoices and concurred with SCRRA; the breakdown for total costs of this agreed upon service are as follows without incurring penalties due to SCRRA’s oversight: Fiscal Year (FY) Invoice Amount FY 14/15 $18,130.48 FY 15/16 $17,489.08 FY 16/17 $18,241.18 FY 17/18 $17,576.56 FY 18/19 $10,849.46 FY 19/20 $12,304.62 FY 20/21 $9,230.64 FY 21/22 (current) $20,000.00 Amount total $123,822.02 The approval of appropriation of funds in the amount of $123,822.02 will be necessary to fully fund and process past due and current payments for graffiti removal performed by SCRRA between FY14/15 and FY20/21. Additionally, the appropriation will put in place a budget in the amount not-to-exceed $20,000 for the current fiscal year. Moving forward, the City plans to revisit and revise the agreement with an anticipated budget of approximately $20,000 per year to cover the cost of the work. Staff will bring the updated agreement to the City Council for consideration for approval at a future meeting. LEGAL REVIEW None Required ATTACHMENTS 1. City Council Approved Staff Report July 16, 2014 2. Approved MOU with Southern California Regional Rail Authority (SCRRA) 3. Outstanding Invoice from SCRAA for Fiscal Years’ 2014/2015 through 2018/2019 SCRRA/CITY OF BALDWIN PARK- GRAFFITI DATE PREPARED: 9/22/21 INVOICE NO.INVOICE DATE AWARD NO.REFERENCE- FISCAL YEAR INVOICE AMOUNT 1007950 30-JUN-2020 992908 FY20 CITY OF BALDWIN PARK $12,304.62 1008161 30-SEP-2020 991838 FY16 BALDWIN PARK $17,489.08 1008205 20-OCT-2020 991331 FY15, CITY OF BALDWIN $18,130.48 1008338 10-NOV-2020 992090 FY17, CITY OF BALDWIN PARK $18,241.18 1008339 10-NOV-2020 992376 FY18 CITY OF BALDWIN $17,576.56 1008340 10-NOV-2020 992601 FY19.CITY OF BALDWIN PARK $10,849.46 SUB TOTAL-BILLED $94,591.38 To add - 1) FY20 EXPENSES PENDING TO BILL $3,197.00 2) FY21 EXPENSES PENDING TO BILL $6,033.64 SUB TOTAL-PENDING TO BILL $9,230.64 TOTAL REQUEST AMOUNT $103,822.02 ITEM NO. 11 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 6, 2021 SUBJECT: Adopt Resolution No. 2021-029 entitled, “A Resolution of the City Council of the City of Baldwin Park, Approving the Application for Outdoor Equity Grants Program Grant Funds for The Other Backyard Project” SUMMARY The purpose of this staff report is for the City Council to adopt Resolution No. 2021-029 entitled “A resolution of the City Council of the City of Baldwin Park, approving the application for Outdoor Equity Grants Program Grant Funds for The Other Backyard Project” funded by the State of California. RECOMMENDATION Staff recommends that the City Council: 1. Adopt Resolution No. 2021-029 entitled “A Resolution of the City Council of the City of Baldwin Park, approving the application for Outdoor Equity Grants Program Grant Funds for The Other Backyard Project; and 2. Authorize the Director of Recreation and Community Services to execute any further documents. FISCAL IMPACT There is no fiscal impact to the budget at this time. BACKGROUND In 2019, the Outdoor Equity Grants Program was enacted when Governor Gavin Newsom signed Assembly Bill 209. The concept for grant program began with findings in the 2015 Parks Forward Commission Report stating that State Parks must expand access to parks for underserved communities and urban populations. The Outdoor Equity Grants Program (OEP) will increase the ability of residents in low income urban and rural communities to participate in outdoor experiences at state parks and other public lands. OEP grants will improve the health and wellness of Californians by connecting underserved communities to natural areas throughout California. Throughout the state, from heavily urbanized to rural areas, Californians emphasized a desire for multi-generational programs to bring families together that activate local parks and take residents with transportation challenges to natural areas outside their communities. Encourage activities are those that increase community capacity to foster a long-term environmental justice legacy such as engaging in planning and improving the community’s environment. The grant is available through State of California with a total of $57,000,000 million available for the competitive grants statewide with a minimum request of $20,000 and maximum of $700,000. Matching funding is not required. The grant performance period is July 1, 2020 to June 30, 2025. Grant awards will be announced by spring 2022. Grant funds may be used for program implementation with some allocation for post award activity costs, supplies, transportation, and labor to achieve all activity goals. Grant selection criteria is based on the following: • Community Home Base • Community Planning • Outdoor Program Goals • Service Learning, Career Pathways, Leadership Opportunities • Partnerships and Capacity Building • Mentoring Youth Leaders after the Grant As part of the selection criteria and to maximize available points in the Outreach category, Staff conducted rigorous community engagement meetings via Zoom, in-person and multi-generational focus groups. Under the Outdoor Program Goals, the grant requires educational curriculum and partnerships, Nature for All is a non-profit organization that is committed to building a diverse base of support to ensure that everyone in the Los Angeles area has equitable access to nature and the wide range of benefits that nature provides. Thus the newly formed partnership with Nature for All satisfies several criteria’s of categories set forth in the grant. ALTERNATIVES The alternative would be that the City Council may choose not to adopt Resolution No. 2021-029. LEGAL REVIEW None required. ATTACHMENTS 1. Resolution No. 2021-029 RESOLUTION NO. 2021-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE APPLICATION FOR GRANT FUNDS FOR OUTDOOR EQUITY GRANTS PROGRAM GRANT FUNDS FOR THE OTHER BACKYARD WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Outdoor Equity Grants Program, setting up necessary procedures governing the application; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application before submission of said application to the State; and WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope program; NOW, THEREFORE, BE IT RESOLVED that the City Council hereby: APPROVES THE FILING OF AN APPLICATION FOR THE OTHER BACKYARD; AND 1. Certifies that said Applicant has or will have available, prior to commencement of any work on the program(s) included in this application, the sufficient funds to complete the program(s); and 2. Certifies that if the grant is awarded, the Applicant has or will have sufficient funds to operate the program(s) as described in the Grant Selection Criterion response, and 3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and 4. Delegates the authority to Director of Recreation & Community Services to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and 5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. 6. Will consider promoting inclusion per Public Resources Code §80001(b)(8 A-G). PASSED, APPROVED AND ADOPTED this 6th day of October, 2021. I, the undersigned, hereby certify that the forgoing Resolution Number 2021-029 was duly adopted by the City Council. ________________________ EMMANUEL J. ESTRADA MAYOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF BALDWIN PARK ) I, MARLEN GARCIA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing resolution was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at a regular meeting of the City Council on October 6, 2021, by the following vote: AYES: COUNCIL MEMBERS: Mayor Manuel Lozano NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None MARLEN GARCIA CITY CLERK STAFF REPORT ITEM NO. _______12__________ TO: Honorable Mayor and Members of the City Council FROM: Ben Martinez, Director of Community Development PREPRARED BY: Ron Garcia, City Planner DATE: October 6, 2021 SUBJECT: Appropriate Additional Funds for Cost Related to the Downtown Specific Plan Update SUMMARY This item seeks City Council consideration for the approval of an appropriation of additional funds in the amount of $16,832 to cover recent edits to the Draft Downtown Specific Plan due to recent Council direction to allow a maximum density of 40 units per acre (Attachment No.2). RECOMMENDATION It is recommended that the City Council authorize the Director of Finance to appropriate $16,832 from available General Plan Funds (Fund No. 235-General Plan Fees), Acct #235-40-440-51100-14984, to cover recent edits to the Draft Downtown Baldwin Park Specific Plan Update per Council direction for the reduction of density within the Downtown Specific Plan. FISCAL IMPACT There is no fiscal impact to the General Fund. All funds used are a combination of grant funds and special funds. BACKGROUND In January of 2020 the City was awarded an SB 2 planning grant from the State of California Housing and Community Development Department “(HCD)”. HCD launched the SB 2 Planning Grants Program to provide funding and technical assistance to all local governments in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. The grant award is $310,000 of which $285,200, and $24,800 are allocated respectively to the Consultant (Rangwala Associates) and JWA Urban Consultants, Inc., for the preparation, management, and implementation of the planning grant. On June 3, 2020, the City Council approved an agreement with Rangwala Associates to provide consulting services to update the Downtown TOD Specific Plan (Plan), amend appropriate sections of the General Plan and Zoning Ordinance and adoption of an EIR Amendment for $328,005. The City Council also authorized the appropriation of $42,805 from Fund No. 235-General Plan Fees to cover the difference between the grant award and the approved Consultant budget. Approved Funds Amount SB2 Grant Rangwala Associates $285,200.00 JWA Urban Consultants, Inc. $24,800.00 Special Funds - 235 Rangwala Associates $42,805.00 Requested Appropriations Special Funds – Fund No. 235- General Plan Fees (Rangwala Associates) $16,832.00 Total Funding $369,637.00 DISCUSSION The consulting services agreement approved on June 3, 2020 requested an appropriation in the amount of $328,005 to update the Downtown Specific Plan and related documents; however, per Council direction provided at the August 25th, City Council Study Session to reduce the proposed density of 60 units per acre to 40 units acre, resulted in additional tasks to the approved scope and budget. Therefore, this report requests an additional appropriation of General Plan Funds in the amount $16,832 to cover the shortfall in completing the plan for adoption. ALTERNATIVES The City Council may choose: 1. The City Council may choose not to approve the appropriation request; however, this action is not recommended as this work has been partially completed and will further delay the ability for the City to remain on schedule in completing the Specific Plan Update and Housing Element Update in accordance with State Law. 2. City Council may direct staff with a desired alternative. LEGAL REVIEW None required. ATTACHMENTS 1. Rangwala Associates Consultant Services Agreement 2. Scope and Budget Amendment, Dated September 17, 2021 RA Illuminas Moule & Polyzoides Kittelson Rincon FHS+P Other KR MW SP VB NC/IE TE FS MS Analyst JP SH GM/Other DS @235 @$195 @$275 @$175 @$100 @$314 @$216 @145 @$108 @$240 @$195 @$175 @$175 Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount Stage 1 Project Coordination 1.1 Kick-off Mtg 4 $940 1.2 Joint Mtg CC & PC 6 $1,410 1.3 Monthly Status Mtg 6 $1,410 1.4 Project Website 12 $2,820 1.5 Civic Engagement $0 1.5.1 Online Collaboration 4 $940 1.5.2 Focus Group Mtgs 3 $705 3 $585 3 $942 1.5.3 Interviews 8 $1,880 Stage 2 Discovery 2.1 Market Study 2 $470 31 $6,045 a. Development Feasibility Testing 25 $4,875 B. Feasibility Impact Testing 26 $5,070 2.2 Mobility Profile 2 $470 3 $942 20 $2,900 48 $5,184 2.3 Urban Design 16 $3,760 $2,016 Stage 3 Visioning 3.1 Charrette 3.1.1 Economic Development 4 $940 8 $1,560 3.1.2 Mobility & Parking Strategy 2 $470 8 $2,512 4 $580 12 $1,296 3.1.3 Urban Design 40 $9,400 40 $11,000 40 $7,000 153 $15,300 32 $5,600 $1,500 Stage 4 Draft Downtown Specific Plan 4.1 Vision & Guiding Principles 121 $28,435 25 $4,375 14 $1,400 4 $580 44 $4,752 2 $350 4.2 Policy (including GP amendment) 152 $35,720 4 $780 9 $972 4.3 Code 172 $40,420 2 $350 6 $600 4.4 Implementation 12 $2,820 2 $390 4.4 Joint Mtg CC & PC 6 $1,410 Stage 5 Review & Refine 5.1 Prepare 2nd Draft 36 $8,460 2 $628 2 $432 6 $900 5.2 Transportation Impact Analysis 2 $470 6 $1,296 20 $2,900 56 $8,400 a. Traffic Counts $6,375 b. Comprehensive Parking Study $26,500 5.3 Admin Draft EIR Addendum 2 $470 4 $864 14 $3,360 48 $9,360 70 $8,050 5.4 Prepare Public Draft 24 $5,640 2 $432 5.5 Final EIR Addendum 2 $470 2 $432 12 $1,800 2 $480 6 $1,170 12 $1,380 Stage 6 Adoption 6.1 Participate in Public Hearing & produce supporting documents 34 $7,990 10 $2,400 6.2 Prepare Specific Plan & EIR for Print & Online 2 $470 $3,000 Sub-total $158,390 $19,305 $11,000 $11,725 $17,300 $5,024 $3,456 $6,960 $23,304 $6,240 $10,530 $9,430 $5,950 $39,391 Total $328,005 1 September 17, 2021 Ron Garcia, City Planner City of Baldwin Park, Planning Division 14403 E. Pacific Avenue Baldwin Park, California 91706 (Subject: Amendment to Downtown Specific Plan Scope and Budget) Dear Ron, The recent edits to the Downtown Baldwin Park Specific Plan have resulted in additional tasks, prompting an amendment to the approved scope and budget. Following are the task items and related hours and budget needed to carry out the additional tasks. Please call, if there are any questions. Thank you for the continued opportunity to serve Baldwin Park. Sincerely yours, Kaizer Rangwala, AICP, CEcD, CNU-a Hours Rate Budget Task 5.3 Admin Draft EIR Addendum 17 $216 $3,672 Task 5.4 Prepare Public Draft 18 $235 $4,230 Task 6.1 Participate in Public Hearing and produce supporting documents 38 $235 $8,930 Total $16,832 Rangwala Associates 805-850 9779 www.rangwalaassoc.com 6325 Jackie Ave Woodland Hills, CA 91367Rangwala Associates ra STAFF REPORT ITEM NO. ________13_________ TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer PREPARED BY: Benjamin Martinez, Community Development Director DATE: October 6, 2021 SUBJECT: Certification of Purchase Agreement and Escrow Instructions for Acquisition of Real Property Located at 13167 Garvey Avenue in the Amount of $2,155,184 to Provide Emergency Shelter Housing for Homeless Families SUMMARY The City Council had requested to consider the acquisition through a Purchase Agreement and Escrow Instructions in the amount of $2,155,184 of real property located at 13167 Garvey Avenue in the City of Baldwin Park to provide emergency shelter housing for homeless families. The purchase of the property has been successfully completed. RECOMMENDATION Staff recommends that the City Council: 1. Certify the Purchase Agreement and Escrow Instructions and direct the Chief Executive Officer to memorialize the purchase of the subject property; and 2. Authorize the Director of Finance to transfer $2,155,184 from the Future Development Fund #200 to loan to the Low/Mod Income Housing Fund 890 with 0% interest to cover the purchase and to pay back Fund #200 as cash becomes available in Fund #890. FISCAL IMPACT There is no impact to the General Fund. The funds used to purchase the land came from Low Mod Income Housing Fund #890 in the amount of $2,155,184. BACKGROUND In previous action, the City Council directed staff to pursue the purchase of the property located at 13167 Garvey Avenue to provide emergency shelter housing for homeless families. The City’s offer was accepted at $2,155,184 with the condition that escrow and title fees will be split evenly between the seller/buyer. The property consists of .63 of one acre or 27,622 square feet and contains 5,212 square feet of usable space in three buildings. Given the urgency of the acquisition process, once the seller accepted the offer authorized by the City Council at $2,155,184, the CEO signed all documents associated with the escrow process. Escrow closed on September 15, 2021 and the City will take full possession of the property on September 30, 2021. The property is being sold in “as is” condition and has been shown to be free of contaminants per a recent Phase 1 Environmental Report. The property is located in the Industrial Commercial Zone. LEGAL REVIEW The City Attorney reviewed and approved the Purchase Agreement. ALTERNATIVES The City Council may choose not to approve this Purchase Agreement. ATTACHMENTS 1. Purchase Agreement and Escrow Instructions dated 8/19/2021. ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM AD3.01,Revised10222020 Page 1 of 4 DISCLOSURE REGARDING REALESTATE AGENCY RELATIONSHIP (Asrequired by the Civil Code) When you enter into adiscussion with arealestateagent regarding arealestatetransacƟon,you should from theoutset understand what type of agencyrelaƟonship or representaƟon you wish to have with theagent in the transacƟon. SELLER'SAGENT ASeller's agent under alisƟng agreement with the Seller acts as theagent for the Seller only. ASeller's agent or asubagent of that agent has thefollowing affirmaƟve obligaƟons: To the Seller:A fiduciary dutyof utmost care,integrity,honesty and loyaltyin dealings with theSeller. To the Buyer and theSeller: (a) Diligent exerciseof reasonable skilland care in performance of theagent's duƟes. (b) A duty ofhonest and fair dealing and good faith. (c) Aduty to disclose allfacts known to the agent materially affecƟng thevalue or desirability ofthe property that are not known to,or within thediligent aƩenƟon and observaƟon of,the parƟes. An agent is not obligated to reveal to either party any confidenƟalinformaƟon obtained from the other party that does not involvetheaffirmaƟve duƟes set forth above. BUYER'SAGENT ABuyer's agent can,with aBuyer's consent,agree to act as agent for theBuyer only. In thesesituaƟons,theagent is not the Seller's agent,even ifby agreement the agent may receivecompensaƟon for services rendered,either in full or in part from the Seller. Anagent acƟng only for aBuyer has the following affirmaƟve obligaƟons: To the Buyer:A fiduciary duty of utmost care,integrity,honesty and loyaltyin dealings with theBuyer. To the Buyer and theSeller: (a) Diligent exerciseof reasonable skilland care in performance of theagent's duƟes. (b) A duty ofhonest and fair dealing and good faith. (c) Aduty to disclose allfacts known to the agent materially affecƟng thevalue or desirability ofthe property that are not known to,or within thediligent aƩenƟon and observaƟon of,theparƟes. An agent is not obligated to reveal to either party any confidenƟalinformaƟon obtained from the other party that does not involvetheaffirmaƟve duƟes set forth above. AGENT REPRESENTING BOTHSELLER ANDBUYER Arealestateagent,either acƟng directly or through oneor moresalesperson and broker associates,can legallybe theagent ofboth the Seller and theBuyer in a transacƟon,but onlywith theknowledge and consent of both the Seller and the Buyer. In a dual agency situaƟon,theagent has the following affirmaƟve obligaƟons to both theSeller and theBuyer: (a) A fiduciary duty ofutmost care,integrity,honesty and loyalty in thedealings with either theSeller or theBuyer. (b) Other duƟes to the Seller and the Buyer as stated above in their respecƟve secƟons. In represenƟng both Seller and Buyer,a dual agent maynot,without theexpress permission of the respecƟve party,discloseto the other party confidenƟal informaƟon,including,but not limited to,facts relaƟng to either the Buyer's or Seller's financial posiƟon,moƟvaƟons,bargaining posiƟon,or other personal informaƟon that mayimpact price,including the Seller's willingness to accept apriceless than the lisƟng priceor theBuyer's willingness to pay aprice greater than the price offered. SELLER AND BUYER RESPONSIBILITIES Either the purchase agreement or aseparatedocument will contain aconfirmaƟon ofwhich agent is represenƟng you and whether that agent is represenƟng you exclusively in thetransacƟon or acƟng as adual agent. PleasepayaƩenƟon to that confirmaƟon to make sureit accurately reflects your understanding of your agent’s role. The above duƟes ofthe agent in arealestatetransacƟon do not relieve aSeller or Buyer from theresponsibility to protect his or her own interests. You should carefully read allagreements to assure that theyadequately express your understanding ofthe transacƟon. Arealestate agent is aperson qualified to advise about real estate. If legal or tax advice is desired,consult acompetent professional. If you area Buyer,you havetheduty to exercise reasonablecare to protect yourself, including as to those facts about the propertywhich areknown to you or within your diligent aƩenƟon and observaƟon. Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of atransacƟon can be complex and subject to change. Throughout your real property transacƟon you may receive more than one disclosure form,depending upon the number ofagents assisƟng in thetransacƟon. The law requires each agent with whomyou have more than acasualrelaƟonship to present you with this disclosure form. You should read its contents each Ɵme it is presented to you,considering therelaƟonshipbetween you and thereal estateagent in your specifictransacƟon.This disclosureform includestheprovisions of SecƟons2079.13 to2079.24, inclusive,of the Civil Code set forth on page2.Read it carefully.I/WE ACKNOWLEDGERECEIPT OF ACOPY OF THIS DISCLOSUREAND THE PORTIONS OF THE CIVIL CODEPRINTED ON THE BACK (OR ASEPARATEPAGE). Buyer Seller Lessor Lessee Date:08/19/2021 Buyer Seller Lessor Lessee Date: Agent:Keller Williams Covina DRELic.#:01970316 Real Estate Broker (Firm) By:DRE Lic. #:01275776 Date: (Salesperson or BrokerAssociate) DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779 8/19/2021 | 6:12 PM EDT DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM AD3.01,Revised10222020 Page 2 of 4 THISFORM HASBEEN PREPAREDBYAIR CRE. NO REPRESENTATION ISMADEAS TO THE LEGALVALIDITYOR ADEQUACYOF THISFORM FOR ANYSPECIFIC TRANSACTION. PLEASESEEK LEGALCOUNSELAS TO THE APPROPRIATENESSOF THISFORM. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM AD3.01,Revised10222020 Page 3 of 4 DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP CIVIL CODESECTIONS 2079.13 THROUGH 2079.24(2079.16 APPEARS ON THE FRONT) 2079.13.As used in SecƟons 2079.7 and 2079.14 to 2079.24,inclusive,thefollowing terms have the following meanings: (a)“Agent” mean s aperson acƟng under provisions ofTitle 9 (commencing with SecƟon 2295)in a real property transacƟon,and includes aperson who is licensed as arealestatebroker under Chapter 3(commencing with SecƟon 10130) ofPart 1 ofDivision 4oftheBusiness and Professions Code,and under whose license alisƟng is executed or an offer to purchase is obtained. The agent in the real property transacƟon bears responsibility for that agent’s salespersons or broker associates who perform as agents ofthe agent.When asalesperson or broker associateowes aduty to any principal,or to any buyer or seller who is not aprincipal,in arealproperty transacƟon,that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate funcƟons.(b)“Buyer” means a transferee in a real property transacƟon,and includes aperson who executes an offer to purchase real property from a seller through an agent,or who seeks the services of an agent in more than acasual,transitory,or preliminary manner,with theobject of entering into a real property transacƟon.“Buyer” includes vendee or lessee of real property.(c)“Commercialrealproperty”means all realproperty in the state,except (1) singlefamily residenƟal real property,(2) dwelling units made subject to Chapter 2(commencing with SecƟon 1940) of Title 5,(3) a mobile home,as defined in SecƟon 798.3,(4) vacant land,or (5) a recreaƟonal vehicle,as defined in SecƟon 799.29.(d)“Dual agent” means an agent acƟng,either directly or through asalesperson or broker associate,as agent for both the seller and the buyer in a real property transacƟon.(e)“LisƟng agreement” means awriƩen contract between aseller of real property and an agent,by which the agent has been authorized to sell the real property or to find or obtain abuyer,including rendering other services for which arealestatelicenseis required to the seller pursuant to the terms of theagreement.(f)“Seller's agent” means aperson who has obtained alisƟng of real property to act as an agent for compensaƟon.(g)“LisƟng price” is the amount expressed in dollars specified in the lisƟng for which the seller is willing to sell the real property through the seller’s agent.(h)“Offering price” is the amount expressed in dollars specified in an offer to purchase for which thebuyer is willing to buy the real property.(i)“Offer to purchase” means awriƩen contract executed by a buyer acƟng through abuyer’s agent that becomes the contract for the sale of the real property upon acceptance by the seller.(j)“Real property” means any estate specified by subdivision (1) or (2) of SecƟon 761 in property,and includes (1) singlefamily residenƟal property,(2) mulƟunit residenƟal property with more than four dwelling units,(3) commercial real property,(4) vacant land,(5) a ground lease coupled with improvements,or (6) a manufactured home as defined in SecƟon 18007 of the Health and Safety Code,or a mobile home as defined in SecƟon 18008oftheHealth and Safety Code,when offered for sale or sold through an agent pursuant to the authority contained in SecƟon 10131.6 oftheBusiness and Professions Code.(k)“Real property transacƟon” means atransacƟon for the sale of real property in which an agent is retained by a buyer,seller,or both a buyer and seller to act in that transacƟon,and includes alisƟng or an offer to purchase.(l)“Sell,” “sale,” or “sold” refers to atransacƟon for the transfer of real property from the seller to the buyer and includes exchanges of real property between theseller and buyer,transacƟons for the creaƟon of a realproperty sales contract within themeaning ofSecƟon 2985,and transacƟons for the creaƟon ofa leasehold exceeding one year’s duraƟon.(m)“Seller”means the transferor in arealpropertytransacƟon and includes an owner who lists real property with an agent, whether or not atransfer results,or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includes both avendor and alessor ofreal property.(n)“Buyer's agent”means an agent who represents a buyer in a real property transacƟon. 2079.14. A seller’s agent and buyer’s agent shall provide the seller and buyer in a real property transacƟon with a copy of the disclosure form specified in SecƟon 2079.16,and shall obtain asigned acknowledgment of receipt from that seller and buyer,except as provided in SecƟon 2079.15,as follows:(a)The seller’s agent,if any,shallprovide the disclosure formto the seller prior to entering into thelisƟng agreement.(b)Thebuyer’s agent shall provide the disclosure form to the buyer as soon as pracƟcable prior to execuƟon ofthe buyer’s offer to purchase. If theoffer to purchase isnot prepared bythe buyer’s agent,the buyer’s agent shall present the disclosure form to the buyer not later than the next business day aŌer receiving theoffer to purchase from the buyer. 2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to SecƟon 2079.14,the agent shall set forth,sign, and date awriƩen declaraƟon ofthe facts of therefusal. 2079.16 Reproduced on Page 1ofthisADform. 2079.17(a)As soon as pracƟcable,the buyer’s agent shall disclose to the buyer and seller whether the agent is acƟng in the real property transacƟon as the buyer’s agent,or as adualagent represenƟng both the buyer and the seller. This relaƟonship shall be confirmed in the contract to purchase and sell real property or in a separate wriƟng executed or acknowledged bythe seller,the buyer,and the buyer’s agent prior to or coincident with execuƟon of that contract by the buyer and the seller,respecƟvely.(b)As soon as pracƟcable,the seller’s agent shall disclose to the seller whether the seller’s agent is acƟng in the real property transacƟon as the seller’s agent,or as a dual agent represenƟng both the buyer and seller. This relaƟonship shallbe confirmed in the contract to purchase and sellreal property or in a separatewriƟng executed or acknowledged bythe seller and theseller’s agent prior to or coincidentwith theexecuƟon ofthat contract bythe seller. (C)CONFIRMATION: The following agencyrelaƟonships are confirmed for this transacƟon. Seller's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one):the seller; or both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one):the Seller's Agent. (salesperson or broker associate); or both the Buyer's Agent and the Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one):the buyer; or both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one):the Buyer's Agent. (salesperson or broker associate); or both the Buyer's Agent and the Seller's Agent. (dual agent) (d)The disclosures and confirmaƟon required by this secƟon shallbe in addiƟon to thedisclosure required by SecƟon 2079.14.An agent’s duty to provide disclosure and confirmaƟon ofrepresentaƟon in this secƟon maybe performed by arealestate salesperson or broker associateaffiliated with that broker. 2079.18 (Repealed pursuant to AB1289,201718California LegislaƟvesession) 2079.19 The payment of compensaƟon or the obligaƟon to pay compensaƟon to an agent bythe seller or buyer is not necessarilydeterminaƟve of aparƟcular agency relaƟonshipbetween an agent and theseller or buyer. AlisƟng agent and aselling agent mayagreeto share any compensaƟon or commission paid,or anyright to any compensaƟon or commission for which an obligaƟon arises as theresult ofareal estatetransacƟon,and theterms ofany such agreement shall not necessarily be determinaƟve of aparƟcular relaƟonship. 2079.20 Nothing in this arƟcleprevents an agent from selecƟng,as acondiƟon of theagent’s employment,aspecificformofagencyrelaƟonship not specifically DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM AD3.01,Revised10222020 Page 4 of 4 prohibited by this arƟcle iftherequirements ofSecƟon 2079.14 and SecƟon 2079.17 are complied with. 2079.21 (a)Adualagent maynot,without the express permission oftheseller,disclose to thebuyer any confidenƟalinformaƟon obtained from the seller.(b)Adual agent may not,without theexpress permission ofthe buyer,disclose to theseller anyconfidenƟal informaƟon obtained from thebuyer.(c)“ConfidenƟalinformaƟon” means facts relaƟng to theclient’s financial posiƟon,moƟvaƟons,bargaining posiƟon,or other personal informaƟon that mayimpact price,such as theseller is willing to accept apriceless than the lisƟng price or the buyer is willing to pay aprice greater than thepriceoffered.(d)This secƟon does not alter in any waythe dutyor responsibility of adual agent to any principal with respect to confidenƟalinformaƟon other than price. 2079.22 Nothing in this arƟcleprecludes aseller’s agent from also being abuyer’s agent.If aseller or buyer in atransacƟon chooses to not be represented by an agent,that does not,ofitself,make that agent adual agent. 2079.23(a)Acontract between theprincipal and agent maybe modified or altered to change theagencyrelaƟonship at any Ɵmebefore the performance of theact which is theobject oftheagency with the wriƩen consent oftheparƟes to the agencyrelaƟonship.(b)A lender or an aucƟon company retained by alender to control aspects ofa transacƟon ofreal property subject to this part,including validaƟng thesales price,shallnot require,as acondiƟon of receiving the lender’s approvalof thetransacƟon,thehomeowner or lisƟng agent to defend or indemnify the lender or aucƟon companyfrom anyliability alleged to result fromthe acƟons ofthe lender or aucƟon company.Any clause,provision,covenant,or agreement purporƟng to imposean obligaƟon to defend or indemnify alender or an aucƟon company in violaƟon of this subdivision is against public policy,void,and unenforceable. 2079.24 Nothing in this arƟcleshallbe construed to either diminish thedutyof disclosure owed buyers and sellers by agents and their associate licensees,subagents, and employees or to relieve agents and their associate licensees,subagents,and employees from liabilityfor their conduct in connecƟon with acts governed by this arƟcleor for any breach ofa fiduciary duty or a dutyofdisclosure. AIR CRE * hƩps://www.aircre.com *2136878777 * contracts@aircre.com NOTICE:Nopart of theseworks may be reproduced in any form without permission in wriƟng. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 1 of 10 STANDARD OFFER,AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE OF REAL ESTATE (NonResidenƟal) Dated:08/19/2021 1.Buyer. 1.1 City of Baldwin Park ,("Buyer")hereby offersto purchase thereal property, hereinaŌer described, from the ownerthereof ("Seller") (collecƟvely, the "ParƟes"or individually, a"Party"), through an escrow ("Escrow") toclose30 or sooner daysaŌer the waiveror saƟsfacƟonofthe Buyer's ConƟngencies, ("ExpectedClosing Date")tobe heldby TBD ("Escrow Holder")whoseaddress is , PhoneNo. , FacsimileNo. uponthe termsand condiƟons setforth inthis agreement("Agreement"). Buyershall have the righttoassign Buyer'srights hereunder, butany such assignment shall not relieve Buyer ofBuyer's obligaƟons herein unless Seller expressly releases Buyer. 1.2 The term"Date of Agreement"as used herein shall be the date when by execuƟon and delivery(as defined in paragraph 20.2) ofthis document or a subsequent counteroffer thereto,Buyer and Seller have reached agreement in wriƟng whereby Seller agrees to sell,and Buyer agrees to purchase,the Property upon terms accepted by both ParƟes. 2.Property. 2.1 The real property ("Property")that is thesubject ofthis offerconsistsof (insert a briefphysical descripƟon)3 Freestanding Buildings islocated inthe Countyof Los Angeles , iscommonly known as(street address, city, state, zip)13167 Garvey Avenue, Baldwin Park, CA 91706 andis legallydescribed as: (APN:8556021045 ). 2.2 If thelegal descripƟon of thePropertyis not complete or is inaccurate,this Agreement shallnot be invalid and thelegal descripƟon shallbe completed or corrected to meetthe requirements of Chicago Title ("Title Company"), whichshall issuethe Ɵtle policyhereinaŌer described. 2.3 The Property includes,at no addiƟonalcost to Buyer,the permanent improvements thereon,including those items which pursuant to applicable law are a part of theproperty,as wellas thefollowing items,if any,owned by Seller and at present located on the Property:electricaldistribuƟon systems (power panel,bus ducƟng,conduits,disconnects,lighƟng fixtures);telephone distribuƟon systems (lines,jacks and connecƟons only);space heaters; heaƟng,venƟlaƟng,air condiƟoning equipment ("HVAC");air lines;fire sprinkler systems; security and fire detecƟon systems;carpets; window coverings; wall coverings; and appliances (collecƟvely, the "Improvements"). 2.4 The firesprinkler monitor: is ownedbySeller andincluded inthePurchase Price, is leasedby Seller,andBuyer willneed tonegoƟate a new lease withthe fire monitoring company, ownership will be determined during Escrow, or there is no fire sprinklermonitor. 2.5 Except as provided inParagraph 2.3,thePurchase Pricedoes notinclude Seller's personal property, furniture and furnishings, and allof which shall beremoved bySeller prior to Closing. 3.PurchasePrice. 3.1 The purchase price ("PurchasePrice") to be paid byBuyer to Sellerfor the Property shallbe $1,980,560.00 ,payableas follows: (Strike any not applicable) (a) Cash down payment,including theDeposit as defined in paragraph 4.3(or if an all cash transacƟon,the Purchase Price): $1,980,560.00 (b) Amount of "New Loan"as defined in paragraph 5.1,ifany: N/A (c) Buyer shall take Ɵtle to theProperty subject to and/or assume thefollowing exisƟng deed(s) of trust ("ExisƟng Deed(s) of Trus t")securing theexisƟng promissory note(s) ("ExisƟng Note(s)"): (i) An ExisƟng Note("First Note")with an unpaid principal balanceas oftheClosing ofapproximately: N/A SaidFirst Noteis payableat permonth, including interest atthe rate of % perannum unƟlpaid (and/or the enƟreunpaid balance isdue on ). (ii) An ExisƟng Note ("Second Note") with an unpaid principal balance as of theClosing of approximately: N/A SaidSecond Note is payable at permonth, including interest atthe rate of % perannum unƟlpaid (and/or the enƟreunpaid balance isdue on ). (d) Buyer shall giveSeller adeed of trust ("Purchase Money Deed of Trus t")on theproperty,to secure the promissory note ofBuyer to Seller described in paragraph 6("Purchase Money Note") in theamount of: N/A Total Purchase Price:$1,980,560.00 3.2 If Buyer is taking Ɵtle to the Property subject to,or assuming,an ExisƟng Deed ofTrust andsuch deed oftrust permits the beneficiary to demand payment offees including,but not limited to,points,processing fees,and appraisalfees as acondiƟonto thetransfer ofthe Property,Buyer agrees to pay such fees up to a maximumof 1.5% of theunpaid principal balance of theapplicable ExisƟng Note. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 2 of 10 4.Deposits. 4.1 Buyerhasdelivered toBroker acheckin thesum of N/A ,payable toEscrow Holder,to bedelivered by Brokerto EscrowHolder within 2or business days aŌerboth ParƟeshave executed thisAgreement andtheexecuted Agreementhas beendelivered toEscrowHolder, or within 2or 3 business days aŌerboth ParƟeshave executed thisAgreement andtheexecuted Agreementhas beendelivered toEscrowHolder Buyershall deliverto Escrow Holder acheck inthesum of $20,000.00 . If saidcheckis notreceived byEscrowHolder withinsaid Ɵmeperiodthen Sellermay electto unilaterally terminate this transacƟon bygiving wriƩen noƟceof such elecƟon to Escrow Holder whereupon neither Party shallhave anyfurther liabilityto the other under this Agreement. Should Buyer and Seller not enter into an agreement for purchase and sale,Buyer's check or funds shall,upon request byBuyer,bepromptly returned to Buyer. 4.2 AddiƟonal deposits: (a) Within 5business days aŌerthe Date of Agreement,Buyer shalldepositwith EscrowHolder theaddiƟonal sum of tobeapplied tothe Purchase Price at the Closing. (b) Within 5business days aŌer theconƟngencies discussed in paragraph 9.1(a) through (m) areapproved or waived,Buyer shalldeposit with Escrow Holderthe addiƟonal sum of to beapplied tothe PurchasePriceat theClosing. (c) Ifan AddiƟonal Deposit is not received byEscrow Holder within the Ɵmeperiod provided then Seller may noƟfyBuyer,Escrow Holder,and Brokers,in wriƟng that,unless the AddiƟonal Deposit is received by Escrow Holder within 2business days following said noƟce,the Escrow shall bedeemed terminated without further noƟce or instrucƟons. 4.3 Escrow Holder shall deposit the funds deposited with it by Buyer pursuant to paragraphs 4.1 and 4.2 (collecƟvely the "Deposit"),in aStateor Federally chartered bank in an interest bearing account whoseterm is appropriate and consistent with the Ɵming requirements ofthis transacƟon. Theinterest therefrom shall accrueto thebenefit ofBuyer,who hereby acknowledges that there maybepenalƟes or interest forfeitures ifthe applicable instrument is redeemed prior to its specifiedmaturity. Buyer's Federal TaxIdenƟficaƟon Number is . NOTE:Suchinterest bearingaccount cannot beopened unƟlBuyer's FederalTax IdenƟficaƟon Number is provided. 4.4 Notwithstanding theforegoing,within 5days aŌer Escrow Holder receives themonies described in paragraph 4.1above,Escrow Holder shall release$100 ofsaid monies to Seller as and for independent consideraƟon for Seller's'execuƟon of this Agreement and thegranƟng ofthe conƟngency period to Buyer as herein provided. Such independent consideraƟon is nonrefundable to Buyer but shall becredited to thePurchase Price in the event that thepurchase of theProperty is completed. 4.5 Upon waiver of allof Buyer's conƟngencies the Deposit shall becomenonrefundable but applicableto thePurchase Price except in theevent ofaSeller breach,or in the event that the Escrow is terminated pursuant to theprovisions ofParagraph 9.1(n)(DestrucƟon,Damage or Loss) or 9.1(o)(Material Change). 5.Financing ConƟngency.(Strike if not applicable) 5.1 This offer is conƟngent upon Buyer obtaining from an insurance company,financial insƟtuƟon or other lender,acommitment to lend to Buyer asum equal to at least N/A % ofthe PurchasePrice, ontermsacceptable toBuyer. Suchloan ("NewLoan") shallbesecured bya firstdeedoftrustormortgageonthe Property. Ifthis Agreement provides for Seller to carry back junior financing,then Seller shall havetheright to approve theterms of theNew Loan.Seller shallhave 7 days following receipt of thecommitment seƫng forth the proposed terms oftheNew Loan to approve or disapprove ofsuch proposed terms. IfSeller fails to noƟfy Escrow Holder,in wriƟng,ofthedisapproval within said 7days it shallbe conclusively presumed that Seller has approved the terms ofthe New Loan. 5.2 If Buyershall failtonoƟfy itsBroker, EscrowHolder andSeller,in wriƟngwithin N/A days followingtheDate ofAgreement, thattheNew Loan hasnot been obtained, it shall be conclusively presumed that Buyer haseither obtained said New Loan or has waived this NewLoan conƟngency. 5.3 If Buyer shall noƟfyits Broker,Escrow Holder and Seller,in wriƟng,within the Ɵme specified in paragraph 5.2 hereof,that Buyer has not obtained said New Loan,this Agreement shall beterminated,and Buyer shall beenƟtled to theprompt return of the Deposit,plus anyinterest earned thereon,less onlyEscrow Holder and Title CompanycancellaƟon fees and costs,which Buyer shallpay. 6.Seller Financing.(Purchase Money Note).(Strike if not applicable) 6.1 If Sellerapproves Buyer's financials (see paragraph 6.5) the Purchase MoneyNote shall providefor interest onunpaid principal at the rateof N/A %per annum, with principal and interest paid as follows:N/A . The Purchase Money Note and Purchase MoneyDeed of Trust shall beon thecurrent forms commonlyused byEscrow Holder,and be junior and subordinate only to theExisƟng Note(s)and/or theNew Loan expressly called for bythis Agreement. 6.2 The PurchaseMoney Noteand/or the PurchaseMoney Deed of Trust shallcontain provisions regarding thefollowing (see also paragraph 10.3(b)): (a)Prepayment.Principalmaybeprepaid in whole or in part at any Ɵmewithout penalty,at the opƟon of theBuyer. (b)Late Charge. Alate chargeof 6%shall bepayablewith respect to anypayment of principal,interest,or other charges,not made within 10 days aŌer it is due. (c)Due On Sale.In theevent theBuyer sells or transfers Ɵtleto theProperty or anyporƟon thereof,then theSeller may,at Seller's opƟon,require the enƟre unpaid balance of said Noteto be paid in full. 6.3 If thePurchase MoneyDeed of Trust is to be subordinate to other financing,Escrow Holder shall,at Buyer's expense prepare and record on Seller's behalf a request for noƟceof default and/or sale with regard to each mortgageor deed oftrust to which it willbe subordinate. 6.4 WARNING:CALIFORNIALAW DOESNOT ALLOW DEFICIENCY JUDGEMENTS ON SELLER FINANCING.IF BUYER ULTIMATELY DEFAULTSON THE LOAN, SELLER'SSOLE REMEDY IS TOFORECLOSEON THE PROPERTY. 6.5 Seller's obligaƟon to provide financing is conƟngent upon Seller's reasonable approvalofBuyer's financial condiƟon. Buyer to provide a current financial statement and copies of its Federal tax returns for thelast 3years to Seller within 10 days following theDate ofAgreement. Seller has 10 days following receipt of such documentaƟon to saƟsfy itselfwith regard to Buyer's financial condiƟon and to noƟfy Escrow Holder as to whether or not Buyer's financial condiƟon is acceptable. IfSeller fails to noƟfy Escrow Holder,in wriƟng,ofthedisapproval ofthis conƟngency within said Ɵmeperiod,it shallbe conclusively presumed that Seller has approved Buyer's financial condiƟon. If Seller is not saƟsfied with Buyer's financial condiƟon or ifBuyer fails to deliver therequired documentaƟon then Seller maynoƟfy Escrow Holder in wriƟng that Seller Financing willnot beavailable,and Buyer shall havetheopƟon,within 10 days ofthe receipt of such noƟce,to either terminate this transacƟon or to purchase the Property without Seller financing. IfBuyer fails to noƟfy Escrow Holder within said Ɵmeperiod of its elecƟon to terminate this transacƟon then Buyer shallbe conclusively presumed to have elected to purchase the Property without Seller financing. If Buyer elects to terminate, Buyer's Deposit shallbe refunded less Title Companyand Escrow Holder cancellaƟon fees and costs,all ofwhich shall beBuyer's obligaƟon. 7.Real Estate Brokers. 7.1 Each Party acknowledges receiving aDisclosureRegarding Real Estate Agency RelaƟonship,confirms and consents to thefollowing agency relaƟonships in DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 3 of 10 this transacƟon with the following real estate broker(s) ("Brokers") and/or their agents (“Agent(s)”): Seller'sBrokerage Firm Keller Williams Realty Arcadia LicenseNo.01523681 isthebrokerof(checkone): theSeller; or both the Buyer and Seller(dual agent). Seller'sAgent Julie Hsu LicenseNo.01137178 is(check one): the Seller'sAgent(salesperson orbroker associate);or both the Seller's Agent and the Buyer's Agent (dual agent). Buyer's Brokerage Firm Keller Williams Covina License No.01970316 isthe broker of(check one): the Buyer;or both the Buyer and Seller (dual agent). Buyer's Agent Carolina Ruiz Wills LicenseNo.01275776 is (checkone): theBuyer'sAgent (salespersonor broker associate); or both the Buyer's Agent andtheSeller's Agent(dual agent). The ParƟes acknowledge that other than the Brokers and Agents listed above,there are no other brokers or agents represenƟng the ParƟes or due anyfees and/or commissions under this Agreement. Buyer shall usethe services of Buyer's Broker exclusively in connecƟon with anyand allnegoƟaƟons and offers with respect to the Property for aperiod of1 year from thedate inserted for reference purposes at thetopof page 1. 7.2 Buyer and Seller each represent and warrant to theother that he/she/it has had no dealings with any person,firm,broker,agent or finder in connecƟon with the negoƟaƟon of this Agreement and/or theconsummaƟon ofthe purchase and sale contemplated herein,other than the Brokers and Agents named in paragraph 7.1,and no broker,agent or other person,firmor enƟty,other than said Brokers and Agents is/are enƟtled to anycommission or finder's fee in connecƟon with this transacƟon as theresult of anydealings or acts ofsuch Party. Buyer and Seller do each hereby agreeto indemnify,defend,protect and hold theother harmless from and against anycosts,expenses or liability for compensaƟon,commission or charges which may beclaimed by anybroker,agent,finder or other similar party,other than said named Brokers and Agents by reason of anydealings or act of the indemnifyingParty. 8.Escrowand Closing. 8.1 Upon acceptance hereof bySeller,this Agreement,including anycounteroffers incorporated herein by the ParƟes,shallconsƟtute not onlythe agreement ofpurchase and sale between Buyer and Seller,but also instrucƟons to Escrow Holder for the consummaƟon ofthe Agreement through theEscrow. Escrow Holder shallnot prepare any further escrow instrucƟons restaƟng or amending the Agreement unless specifically so instructed bytheParƟes or aBroker herein. Subject to the reasonable approvalof theParƟes,Escrow Holder may,however,include its standard general escrow provisions. In the event that thereis any conflict between the provisions ofthe Agreement and the provisions of anyaddiƟonal escrow instrucƟons the provisions of theAgreement shall prevailas to theParƟes and the Escrow Holder. 8.2 As soon as pracƟcal aŌer thereceipt of this Agreement and anyrelevant counteroffers,Escrow Holder shallascertain theDate ofAgreement as defined in paragraphs 1.2 and 20.2 and advisethe ParƟes and Brokers,in wriƟng,ofthe date ascertained. 8.3 Escrow Holder is hereby authorized and instructed to conduct the Escrow in accordance with this Agreement,applicable law and custom and pracƟce of the community in which Escrow Holder is located,including anyreporƟng requirements ofthe InternalRevenue Code. In theevent ofaconflict between the law of thestatewherethePropertyis located and the law of the state where the Escrow Holder is located,thelaw ofthestatewherethePropertyis located shallprevail. 8.4 Subject to saƟsfacƟon ofthe conƟngencies herein described,Escrow Holder shallclosethis escrow (the "Closing") by recording ageneral warrantydeed (a grant deed in California) and theother documents required to be recorded,and by disbursing the funds and documents in accordance with this Agreement. 8.5 Buyer and Seller shalleach payonehalf of theEscrow Holder's charges and Seller shall paytheusual recording fees and any required documentary transfer taxes. Seller shall paythepremium for a standard coverage owner's or joint protecƟon policy of Ɵtleinsurance. (See also paragraph 11.) 8.6 Escrow Holder shall verify that allofBuyer's conƟngencies have been saƟsfied or waived prior to Closing. ThemaƩers contained in paragraphs 9.1 subparagraphs (b),(c),(d),(e),(g),(i),(n),and (o),9.4,12,13,14,16,18,20,21,22,and 24 are,however,maƩers ofagreement between the ParƟes onlyand arenot instrucƟons to Escrow Holder. 8.7 If this transacƟon is terminated for nonsaƟsfacƟon and nonwaiver of aBuyer's ConƟngency,as defined in paragraph 9.2 or disapproval ofany other maƩer subject to Buyer's approval,then neither ofthe ParƟes shall thereaŌer have any liability to theother under this Agreement,except to the extent of abreach of anyaffirmaƟve covenant or warranty in this Agreement. In the event ofsuch terminaƟon,Buyer shall,subject to theprovisions ofparagraph 8.10,bepromptly refunded all funds deposited by Buyer with Escrow Holder,less only the$100 provided for in paragraph 4.4 and theTitle Companyand Escrow Holder cancellaƟon fees and costs,all ofwhich shall beBuyer's obligaƟon. Ifthis transacƟon is terminated as aresult ofSeller's breach ofthis Agreement then Seller shall paytheTitle Companyand Escrow Holder cancellaƟon fees and costs. 8.8 The Closing shall occur on theExpected Closing Date,or as soon thereaŌer as the Escrow is in condiƟon for Closing;provided,however,that if theClosing does not occur by theExpected Closing Dateand said Date is not extended bymutual instrucƟons ofthe ParƟes,aPartynot then in default under this Agreement may noƟfy the other Party,Escrow Holder,and Brokers,in wriƟng that,unless theClosing occurs within 5business days following said noƟce,theEscrow shallbe deemed terminated without further noƟce or instrucƟons. 8.9 Except as otherwise provided herein,theterminaƟon of Escrow shall not relieve or release either Party from any obligaƟon to pay Escrow Holder's fees and costs or consƟtute a waiver,release or discharge of anybreach or default that has occurred in theperformanceoftheobligaƟons,agreements,covenants or warranƟes contained therein. 8.10 If this Escrow is terminated for anyreason other than Seller's breach or default,then as acondiƟon to thereturn ofBuyer's deposit,Buyer shall within 5 days aŌer wriƩen request deliver to Seller,at no charge,copies ofallsurveys,engineering studies,soilreports,maps,master plans,feasibilitystudies and other similar items prepared by or for Buyer that pertain to theProperty. 9.ConƟngenciesto Closing. 9.1 The Closing of this transacƟon is conƟngent upon thesaƟsfacƟon or waiver of thefollowing conƟngencies.IF BUYER FAILS TONOTIFY ESCROW HOLDER, IN WRITING, OF THE DISAPPROVAL OF ANY OF SAID CONTINGENCIESWITHIN THETIMESPECIFIED THEREIN,IT SHALL BECONCLUSIVELY PRESUMEDTHAT BUYER HASAPPROVED SUCHITEM, MATTER OR DOCUMENT.Buyer's condiƟonal approval shallconsƟtute disapproval,unless provision is made by the Seller within the Ɵmespecified therefore by theBuyer in such condiƟonal approval or bythis Agreement,whichever is later,for the saƟsfacƟon of thecondiƟon imposed by the Buyer. Escrow Holder shall promptly provide all ParƟes with copies ofany wriƩen disapproval or condiƟonalapproval which it receives. With regard to subparagraphs (a) through (m) thepreprinted Ɵmeperiods shall controlunless adifferent number ofdays is inserted in thespaces provided. (a)Disclosure.Seller shallmaketo Buyer,through Escrow,all oftheapplicable disclosures required bylaw (See AIR CRE ("AIR")standard form enƟtled "Seller'sMandatory DisclosureStatement") and provide Buyer with acompleted Property InformaƟon Sheet ("Property InformaƟon Sheet") concerning the Property, duly executed byor onbehalf of Sellerin thecurrent formorequivalent tothat published bythe AIRwithin 10or days following theDate of DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 4 of 10 Agreement. Buyer has 10 days from thereceipt ofsaid disclosures to approve or disapprove themaƩers disclosed. (b)PhysicalInspecƟon. Buyer has 10or days following the receipt ofthe Property InformaƟon Sheetorthe Date of Agreement,whichever is later,to saƟsfy itself with regard to the physicalaspects and sizeof theProperty. (c)HazardousSubstance CondiƟonsReport. Buyer has 30or days following thereceipt ofthe PropertyInformaƟonSheet orthe Date of Agreement,whichever is later,to saƟsfy itself with regard to the environmentalaspects of theProperty. Seller recommends that Buyer obtain aHazardous Substance CondiƟons Report concerning the Propertyand relevant adjoining properƟes. Any such report shall bepaid for by Buyer. A "HazardousSubstance"for purposes of this Agreement is defined as anysubstance whose nature and/or quanƟty ofexistence,use,manufacture,disposal or effect,render it subject to Federal,state or local regulaƟon,invesƟgaƟon,remediaƟon or removal as potenƟally injurious to public health or welfare. A"Hazardous SubstanceCondiƟon"for purposes of this Agreement is defined as theexistence on,under or relevantly adjacent to the Property of a Hazardous Substance that would require remediaƟon and/or removal under applicable Federal,state or locallaw. (d)SoilInspecƟon. Buyer has 30or days following the receipt ofthe Property InformaƟon Sheetorthe Date of Agreement,whichever is later,to saƟsfy itself with regard to thecondiƟon ofthe soils on the Property. Seller recommends that Buyer obtain asoiltest report. Any such report shallbe paid fo r byBuyer. Seller shallprovide Buyer copies of anysoils report that Seller mayhave within 10 days following the DateofAgreement. (e)Governmental Approvals. Buyer has30 or days following the Dateof AgreementtosaƟsfy itselfwith regardtoapprovals andpermits fromgovernmental agencies or departments which have or may havejurisdicƟon over theProperty and which Buyer deems necessary or desirable in connecƟon with its intended use of the Property,including,but not limited to,permits and approvals required with respect to zoning,planning,building and safety,fire,police, handicapped and Americans with DisabiliƟes Act requirements,transportaƟon and environmentalmaƩers. (f)CondiƟons of Title.Escrow Holder shallcause a current commitment for Ɵtleinsurance ("TitleCommitment") concerning the Propertyissued by the Title Company,as well as legiblecopies ofall documents referred to in the TitleCommitment ("Underlying Documents"),and ascaled and dimensioned plot showing the locaƟon ofany easementstobe delivered to Buyerwithin 10or days following theDate of Agreement. Buyerhas 10 days from thereceipt ofthe TitleCommitment,theUnderlying Documents and the plot plan to saƟsfy itselfwith regard to the condiƟon of Ɵtle. The disapproval byBuyer ofany monetary encumbrance,which bythe terms ofthis Agreement is not to remain against the Property aŌer theClosing,shall not be considered afailureofthis conƟngency,as Seller shall have the obligaƟon,at Seller's expense,to saƟsfy and remove such disapproved monetary encumbrance at or before theClosing. (g)Survey. Buyer has 30 or days following the receiptofthe TitleCommitment and UnderlyingDocuments tosaƟsfy itselfwith regardto anyALTA Ɵtlesupplement based upon a survey prepared to American Land TitleAssociaƟon ("ALTA")standards for an owner's policyby alicensed surveyor,showing the legal descripƟon and boundary lines of theProperty,anyeasements of record,and anyimprovements,poles,structures and things located within 10 feet ofeither sideof theProperty boundary lines. Anysuch surveyshall beprepared at Buyer's direcƟon and expense. If Buyer has obtained asurveyand approved the ALTA Ɵtle supplement,Buyer mayelect within theperiod allowed for Buyer's approval ofasurvey to have an ALTAextended coverage owner's form of Ɵtle policy,in which event Buyer shall payany addiƟonal premium aƩributable thereto. (h)ExisƟngLeases andTenancy Statements. Seller shallwithin 10or daysfollowing theDate ofAgreementprovide bothBuyer andEscrow Holder with legiblecopies ofallleases,subleases or rentalarrangements (collecƟvely,"ExisƟngLeases") affecƟng the Property,and with atenancy statement ("Estoppel CerƟficate") in the latest form or equivalent to that published bytheAIR,executed by Seller and/or each tenant and subtenant ofthe Property. Seller shall use its best efforts to have each tenant complete and execute an Estoppel CerƟficate. If anytenantfails or refuses to providean Estoppel CerƟficate then Seller shall complete and execute an Estoppel CerƟficate for that tenancy. Buyer has 10 days from the receipt ofsaid ExisƟng Leases and Estoppel CerƟficates to saƟsfy itselfwith regard to theExisƟng Leases and any other tenancy issues. (i)Owner'sAssociaƟon. Seller shallwithin 10or daysfollowing theDate of Agreementprovide Buyerwith astatementand transfer package from anyowner's associaƟon servicing the Property. Such transfer packageshall at aminimum include: copies of the associaƟon's bylaws,arƟcles of incorporaƟon,current budget and financialstatement. Buyer has 10 days from thereceipt ofsuch documents to saƟsfy itselfwith regard to the associaƟon. (j)OtherAgreements. Sellershall within10 or days followingthe DateofAgreement provideBuyer withlegiblecopies ofall other agreements ("Other Agreements")known to Seller that willaffect theProperty aŌer Closing. Buyerhas 10 days from thereceipt ofsaid Other Agreements to saƟsfy itselfwith regard to such Agreements. (k)Financing. Ifparagraph 5 hereofdealing with a financing conƟngency has not been stricken,thesaƟsfacƟon or waiver of such New Loan conƟngency. (l)ExisƟngNotes. If paragraph3.1(c) hasnotbeen stricken,Seller shall within10 or daysfollowing theDate of Agreementprovide Buyer with legible copies of theExisƟng Notes,ExisƟng Deeds ofTrust and related agreements (collecƟvely,"Loan Documents")to which the Property will remain subject aŌer the Closing. Escrow Holder shall promptlyrequest from the holders ofthe ExisƟng Notes abeneficiary statement ("Beneficiary Statement") confirming: (1)the amount of the unpaid principal balance,the current interest rate,and thedateto which interest is paid,and (2)the nature and amount ofany impounds held bythe beneficiaryin connecƟon with suchloan. Buyerhas 10or daysfollowing thereceipt oftheLoan Documentsand BeneficiaryStatementsto saƟsfy itself with regard to such financing. Buyer's obligaƟon to closeis condiƟoned upon Buyer being able to purchase the Property without acceleraƟon or change in the terms ofany ExisƟng Notes or charges to Buyer except as otherwise provided in this Agreement or approved byBuyer,provided,however,Buyer shallpay thetransfer fee referred to inparagraph 3.2hereof. Likewiseif Selleris tocarryback aPurchase MoneyNotethen Sellershall within10or days following the Dateof Agreementprovide Buyerwith acopy of the proposed Purchase Money Note and Purchase Money Deed ofTrust. Buyerhas 10or days following the receipt of such documents to saƟsfy itself with regard to theformand content thereof. (m)PersonalProperty. In theeventthat anypersonal property is included inthe Purchase Price, Buyerhas10 or daysfollowingthe Date of Agreement to saƟsfyitself with regard to the Ɵtle condiƟon of such personalproperty. Seller recommends that Buyer obtain aUCC1report. Anysuch report shall be paid for byBuyer. Sellershall provide Buyer copies of anyliens or encumbrances affecƟng suchpersonalproperty thatit isawareof within10 or days following the Dateof Agreement. (n)DestrucƟon,Damage orLoss. Subsequent to theDate ofAgreement and prior to Closing there shallnot have occurred adestrucƟon of,or damageor loss to,theProperty or anyporƟon thereof,from anycause whatsoever,which would cost more than $10,000.00 to repair or cure. If thecost ofrepair or cureis $10,000.00 or less,Seller shallrepair or cure the loss prior to theClosing. Buyer shallhavethe opƟon,within 10 days aŌer receipt of wriƩen noƟce ofaloss cosƟng morethan $10,000.00 to repair or cure,to either terminate this Agreement or to purchase the Propertynotwithstanding such loss,but without deducƟon or offset against the PurchasePrice. Ifthe cost to repair or cure is more than $10,000.00,and Buyer does not elect to terminate this Agreement,Buyer shallbe enƟtled to any insurance proceeds applicable to such loss. Unless otherwise noƟfied in wriƟng,Escrow Holder shallassume no such destrucƟon,damage or loss has occurred prior to Closing. (o)Material Change.Buyer shallhave 10 days following receipt ofwriƩen noƟceof aMaterialChange within which to saƟsfy itself with regard to such change. "Material Change"shallmean asubstanƟaladverse changein theuse,occupancy,tenants,Ɵtle,or condiƟon of theProperty that occurs aŌer thedate ofthis DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 5 of 10 offer and prior to theClosing. Unless otherwise noƟfied in wriƟng,Escrow Holder shallassume that no Material Changehas occurred prior to theClosing. (p)SellerPerformance. The delivery ofall documents and thedue performance bySeller ofeach andevery undertaking and agreement to beperformed bySeller under this Agreement. (q)Brokerage Fee.Payment at theClosing ofsuch brokerage feeas is specified in this Agreement or later wriƩen instrucƟons to Escrow Holder executed bySeller and Brokers ("BrokerageFee"). It is agreed by the ParƟes and Escrow Holder that Brokers are athird partybeneficiary of this Agreement insofar as the BrokerageFee is concerned,and that no changeshall bemade with respect to thepayment oftheBrokerage Fee speci fied in this Agreement,without the wriƩen consent of Brokers. 9.2 All ofthe conƟngencies specified in subparagraphs (a) through (m) ofparagraph 9.1 arefor thebenefit of,and may bewaived by,Buyer,and maybe elsewhere herein referred to as "Buyer'sConƟngencies." 9.3 If anyof Buyer's ConƟngencies or anyother maƩer subject to Buyer's approval is disapproved asprovided for herein in a Ɵmely manner ("Disapproved Item"),Seller shallhave theright within 10 days following the receipt ofnoƟce ofBuyer's disapprovalto elect to cure such Disapproved Item prior to theExpected Closing Date ("Seller'sElecƟon"). Seller's failure to give to Buyer within such period,wriƩennoƟce ofSeller's commitment to cure such Disapproved Item on or before the Expected Closing Date shallbe conclusively presumed to be Seller's ElecƟon not to cure such Disapproved Item. If Seller elects,either by wriƩen noƟceor failure to givewriƩen noƟce,not to curea Disapproved Item,Buyer shallhave theright,within10 days aŌer Seller's ElecƟon to either accept Ɵtle to the Property subject to such Disapproved Item,or to terminate this Agreement. Buyer's failure to noƟfy Seller in wriƟng of Buyer's elecƟon to accept Ɵtle to the Propertysubject to the Disapproved Item without deducƟon or offset shall consƟtute Buyer's elecƟon to terminate this Agreement. Theabove Ɵmeperiods onlyapply once for each Disapproved Item. Unless expressly provided otherwise herein,Seller's right to cureshallnot applyto theremediaƟon of Hazardous Substance CondiƟons or to the Financing ConƟngency. Unless theParƟes mutually instruct otherwise,ifthe Ɵmeperiods for thesaƟsfacƟon ofconƟngencies or for Seller's and Buyer's elecƟons would expire on adateaŌer the Expected Closing Date,the Expected Closing Date shallbe deemed extended for 3business days following the expiraƟon of: (a)the applicable conƟngency period(s),(b) theperiod within which the Seller may elect to cure theDisapproved Item,or (c) ifSeller elects not to cure,the period within which Buyer mayelect to proceed with this transacƟon,whichever is later. 9.4 The ParƟes acknowledge that extensive local,state and Federal legislaƟon establish broad liability upon owners and/or users of realproperty for the invesƟgaƟon and remediaƟon of Hazardous Substances. ThedeterminaƟon ofthe existenceofa Hazardous Substance CondiƟon and the evaluaƟon of theimpact of such acondiƟon are highly technical and beyond the experƟseof Brokers. The ParƟes acknowledge that they have been advised byBrokers to consult their own technical and legalexperts with respect to thepossible presence of Hazardous Substances on theProperty or adjoining properƟes,and Buyer and Seller are not relying upon anyinvesƟgaƟon byor statement ofBrokers with respect thereto. The ParƟes hereby assume allresponsibility for the impact ofsuch Hazardous Substances upon their respecƟve interests herein. 10.Documents and Other ItemsRequired at or Before Closing. 10.1 Five days prior to theClosing date Escrow Holder shallobtain an updated Title Commitment concerning the Property from the Title Company and provide copies thereof to each oftheParƟes. 10.2 Seller shalldeliver to Escrow Holder in Ɵmefor deliveryto Buyer at the Closing: (a) Grant or general warranty deed,duly executed and in recordable form,conveying fee Ɵtleto thePropertyto Buyer. (b) Ifapplicable,theBeneficiary Statements concerning ExisƟng Note(s). (c) Ifapplicable,the ExisƟng Leases and Other Agreements together with duly executed assignmentsthereof by Seller and Buyer. Theassignment of ExisƟng Leases shallbe on themost recent Assignment and AssumpƟon ofLessor's Interest in Lease formpublished by the AIR or its equivalent. (d) An affidavit executed by Seller to the effect that Seller is not a"foreign person"within themeaning of InternalRevenue CodeSecƟon 1445 or successor statutes. If Seller does not provide such affidavit in formreasonably saƟsfactory to Buyer at least 3business days prior to the Closing,Escrow Holder shall at the Closing deduct from Seller's proceeds and remit to the Internal Revenue Servicesuch sum as is required by applicable Federal law with respect to purchases from foreign sellers. (e) If the Propertyis located in California,an affidavit executed by Seller to theeffect that Seller is not a''nonresident"within the meaning of California Revenue and Tax Code Sec Ɵon 18662 or successor statutes. If Seller does not provide such affidavit in form reasonably saƟsfactory to Buyer at least 3business days prior to theClosing,Escrow Holder shall at the Closing deduct from Seller's proceeds and remit to theFranchise TaxBoard such sumas is required by such statute. (f) If applicable,abill ofsale,duly executed,conveying Ɵtleto anyincluded personal propertyto Buyer. (g) If theSeller is acorporaƟon,adulyexecuted corporate resoluƟon authorizing the execuƟon of this Agreement and thesale ofthe Property. 10.3 Buyer shalldeliver to Seller through Escrow: (a) The cash porƟon ofthePurchase Priceand such addiƟonal sums as are required of Buyer under this Agreement shall bedeposited by Buyer with Escrow Holder,byfederal funds wiretransfer,or any other method acceptableto Escrow Holder in immediatelycollectable funds,no later than 2:00 P.M. o n the business day prior to the Expected Closing Date provided,however,that Buyer shallnot be required to deposit such monies into Escrow ifat the Ɵme set for the deposit of such monies Seller is in default or has indicated that it will not perform anyofits obligaƟons hereunder. Instead,in such circumstances in order to reserve its rights to proceed Buyer need only provide Escrow with evidence establishing that the required monies wereavailable. (b) Ifa Purchase Money Noteand Purchase MoneyDeed ofTrust are called for by this Agreement,the duly executed originals ofthosedocuments,the Purchase Money Deed of Trust being in recordable form,together with evidence of fire insurance on theimprovements in theamount ofthefull replacement cost naming Seller as amortgageloss payee,and a real estate taxservicecontract (at Buyer's expense),assuring Seller ofnoƟce ofthe status ofpayment ofreal property taxes during thelife ofthePurchase MoneyNote. (c) TheAssignment and AssumpƟon ofLessor's Interest in Lease formspecified in paragraph 10.2(c) above,duly executed byBuyer. (d) AssumpƟons duly executed by Buyer ofthe obligaƟons of Seller that accrue aŌer Closing under any Other Agreements. (e) If applicable,awriƩen assumpƟon duly executed by Buyer ofthe loan documents with respect to ExisƟng Notes. (f) If theBuyer is acorporaƟon,adulyexecuted corporate resoluƟon authorizing theexecuƟon ofthis Agreement and thepurchase of theProperty. 10.4 At Closing,Escrow Holder shallcause to beissued to Buyer astandard coverage (or ALTA extended,ifelected pursuant to 9.1(g))owner's form policy of Ɵtle insurance effecƟve as of theClosing,issued bythe TitleCompany in thefull amount ofthePurchasePrice,insuring Ɵtle to theProperty vested in Buyer,subject onlyto the excepƟons approved by Buyer. In theevent thereis aPurchaseMoneyDeed of Trust in this transacƟon,the policyof Ɵtle insuranceshall bea joint protecƟon policyinsuring both Buyer and Seller. IMPORTANT:IN APURCHASEOR EXCHANGEOF REAL PROPERTY, IT MAY BEADVISABLETO OBTAIN TITLE INSURANCEIN CONNECTION WITH THE CLOSEOF ESCROW SINCE THEREMAY BEPRIOR RECORDED LIENSAND ENCUMBRANCESWHICH AFFECT YOUR INTEREST IN THE PROPERTY BEINGACQUIRED.ANEW POLICY OF TITLE INSURANCESHOULD BEOBTAINEDIN ORDER TO ENSUREYOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING. 11.ProraƟons and Adjustments. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 6 of 10 11.1 Taxes . Applicable real property taxes and specialassessment bonds shall be prorated through Escrow as ofthedate ofthe Closing,based upon thelatest taxbill available. TheParƟes agree to prorate as of theClosing any taxes assessed against theProperty bysupplemental billlevied by reason of events occurring prior to the Closing. Payment of the prorated amount shallbe madepromptlyin cash upon receipt ofa copyof anysupplementalbill. 11.2 Insurance.WARNING :Anyinsurancewhich Seller mayhave maintained will terminateon the Closing. Buyer is advised to obtain appropriate insurance to cover the Property. 11.3 Rentals,Interest and Expenses.Scheduled rentals,interest on ExisƟng Notes,uƟliƟes,and operaƟng expenses shall be prorated as ofthe dateof Closing. The ParƟes agree to promptly adjust between themselves outside ofEscrow anyrents received aŌer the Closing. 11.4 Security Deposit.SecurityDeposits held bySeller shall begiven to Buyer as acredit to thecash required of Buyer at theClosing. 11.5 Post Closing MaƩers.Anyitemto be prorated that is not determined or determinable at theClosing shall bepromptly adjusted by theParƟes by appropriate cash payment outside oftheEscrow when the amount due is determined. 11.6 Varia Ɵons in ExisƟng Note Balances.In theevent that Buyer is purchasing the Propertysubject to an ExisƟng Deed of Trust(s),and in theevent that a BeneficiaryStatement as to theapplicable ExisƟng Note(s)discloses that the unpaid principal balance ofsuch ExisƟng Note(s)at theclosing willbemore or less than the amount set forth in paragraph 3.1(c) hereof("ExisƟng NoteVariaƟon"),then thePurchase MoneyNote(s) shallbereduced or increased by an amount equal to such ExisƟng NoteVariaƟon. Ifthere is to beno Purchase MoneyNote,thecash required at the Closing per paragraph 3.1(a)shall bereduced or increased bythe amount of such ExisƟng NoteVariaƟon. 11.7 Varia Ɵons in New Loan Balance.In theevent Buyer is obtaining aNew Loan and theamount ulƟmately obtained exceeds theamount set forth in paragraph 5.1,then the amount ofthe Purchase Money Note,if any,shallbe reduced by the amount of such excess. 11.8 Owner's AssociaƟon Fees.Escrow Holder shall:(i)bring Seller's account with theassociaƟon current and pay anydelinquencies or transfer fees from Seller's proceeds,and (ii) payanyup front fees required by theassociaƟon from Buyer's funds. 12.RepresentaƟons and WarranƟes of Seller and Disclaimers. 12.1 Seller's warranƟes and representaƟons shallsurvive theClosing and delivery of the deed for aperiod of3years,and any lawsuit or acƟon based upon them must be commenced within such Ɵmeperiod. Seller's warranƟes and representaƟons aretrue,materialand relied upon by Buyer and Brokers in all respects. Seller hereby makes thefollowing warranƟes and representaƟons to Buyer and Brokers: (a)Authority of Seller.Seller is theowner ofthe Property and/or has thefull right,power and authorityto sell,convey and transfer the Propertyto Buyer as provided herein,and to performSeller's obligaƟons hereunder. (b)Maintenance During Escrow and Equipment CondiƟon At Closing.Exceptas otherwise provided in paragraph 9.1(n) hereof,Seller shall maintain the PropertyunƟltheClosing in its present condiƟon,ordinary wear and tear excepted. (c)HazardousSubstances/Storage Tanks .Seller has no knowledge,except as otherwise disclosed to Buyer in wriƟng,oftheexistence or prior existence on the Property of any Hazardous Substance,nor of theexistence or prior existence of any above or below ground storage tank. (d)Compliance.Exceptas otherwisedisclosed in wriƟng,Seller has no knowledge ofany aspect or condiƟon ofthe Propertywhich violates applicable laws,rules,regulaƟons,codes or covenants,condiƟons or restricƟons,or of improvements or alteraƟons madeto thePropertywithout apermit where onewas required,or ofany unfulfilled order or direcƟve of anyapplicable governmental agency or casualtyinsurance companyrequiring any invesƟgaƟon,remediaƟon,repair, maintenance or improvement be performed on the Property. (e)Changes in Agreements.Prior to the Closing,Seller willnot violateor modify anyExisƟng Leaseor Other Agreement,or createany new leases or other agreements affecƟng the Property,without Buyer's wriƩen approval,which approval willnot be unreasonably withheld. (f)Possessory Rights. Seller has no knowledge that anyone will,at theClosing,have anyright to possession oftheProperty,except as disclosed bythis Agreement or otherwisein wriƟng to Buyer. (g)Mechanics'Liens.Thereareno unsaƟsfied mechanics'or materialmens'lien rights concerning the Property. (h)AcƟons,Suits orProceedings.Seller has no knowledge ofanyacƟons,suits or proceedings pending or threatened before anycommission,board, bureau,agency,arbitrator,court or tribunal that would affect theProperty or theright to occupy or uƟlizesame. (i)NoƟce of Changes.Seller will promptly noƟfyBuyer and Brokers in wriƟng of anyMaterial Change(seeparagraph 9.1(o))affecƟng the Property that becomes known to Seller prior to the Closing. (j)No Tenan t Bankruptcy Proceedings.Seller has no noƟceor knowledge that anytenant of theProperty is thesubject ofa bankruptcy or insolvency proceeding. (k)No Seller Bankruptcy Proceedings. Seller is not thesubject ofa bankruptcy,insolvencyor probateproceeding. (l)Personal Property.Seller has no knowledge that anyone will,at theClosing,have anyright to possession of anypersonal property included in the Purchase Price nor knowledge ofanyliens or encumbrances affecƟng such personalproperty,except as disclosed bythis Agreement or otherwise in wriƟng to Buyer. 12.2 Buyer hereby acknowledges that,except as otherwise stated in this Agreement,Buyer is purchasing theProperty in its exisƟng condiƟon and will,by the Ɵmecalled for herein,makeor have waived all inspecƟons of thePropertyBuyer believes are necessaryto protect its own interest in,and its contemplated useof,the Property. TheParƟes acknowledge that,except as otherwise stated in this Agreement,no representaƟons,inducements,promises,agreements,assurances,oralor wriƩen,concerning theProperty,or anyaspect ofthe occupaƟonalsafety and health laws,Hazardous Substance laws,or any other act,ordinance or law,havebeen madeby either Party or Brokers,or relied upon byeither Party hereto. 12.3 In theevent that Buyer learns that aSeller representaƟon or warranty might be untrueprior tothe Closing,and Buyer elects to purchase theProperty anywaythen,and in that event,Buyer waives any right that it mayhave to bring an acƟon or proceeding against Seller or Brokers regarding said representaƟon or warranty. 12.4 Any environmentalreports,soils reports,surveys,and other similar documents which wereprepared by third party consultants and provided to Buyer by Seller or Seller's representaƟves,havebeen delivered as an accommodaƟon to Buyer and without anyrepresentaƟon or warranty as to the sufficiency,accuracy, completeness,and/or validityof said documents,all ofwhich Buyer relies on at its own risk. Seller believes said documents to beaccurate,but Buyer is advised to retain appropriate consultants to review said documents and invesƟgate the Property. 13.Possession. Possession of the Property shall be given to Buyer at the Closing subject to therights oftenants under ExisƟng Leases. 14.Buyer's Entry. At any Ɵmeduring theEscrow period,Buyer,and its agents and representaƟves,shall havethe right at reasonable Ɵmes and subject to rights oftenants,to enter upon the Property for the purpose ofmaking inspecƟons and tests specified in this Agreement. No destrucƟve tesƟng shall be conducted,however,without Seller's prior approval which shallnot beunreasonably withheld. Following anysuch entryor work,unless otherwise directed in wriƟng by Seller,Buyer shallreturn theProperty to DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 7 of 10 the condiƟon it was in prior to such entry or work,including therecompacƟon or removal of any disrupted soilor materialas Seller mayreasonably direct. Allsuch inspecƟons and tests and anyother work conducted or materials furnished with respect to the Property byor for Buyer shall bepaid for byBuyer as and when due and Buyer shallindemnify,defend,protect and hold harmless Seller and thePropertyof and from anyand all claims,liabiliƟes,losses,expenses (including reasonable aƩorneys'fees),damages,including thosefor injury to person or property,arising out of or relaƟng to anysuch workor materials or the acts or omissions of Buyer,its agents or employees in connecƟon therewith. 15.Further Documentsand Assurances. The ParƟes shalleach,diligentlyand in good faith,undertake all acƟons and procedures reasonably required to placethe Escrow in condiƟon for Closing as and when required by this Agreement. TheParƟes agreeto provide all further informaƟon,and to execute and deliver all further documents,reasonably required by Escrow Holder or theTitle Company. 16.AƩorneys'Fees. Ifany Partyor Broker brings an acƟon or proceeding (including arbitraƟon)involving the Propertywhether founded in tort,contract or equity,or to declare rights hereunder,the Prevailing Party (as hereaŌer defined) in any such proceeding,acƟon,or appeal thereon,shall beenƟtled to reasonableaƩorneys'fees and costs. Such fees may beawarded in thesame suit or recovered in aseparatesuit,whether or not such acƟon or proceeding is pursued to decision or judgment. The term "Prevailing Party" shallinclude,without limitaƟon,aPartyor Broker who substanƟallyobtains or defeats the reliefsought,as the case maybe,whether by compromise,seƩlement,judgment,or theabandonment by theother Party or Broker ofits claimor defense. The aƩorneys'fees award shallnot be computed in accordance with anycourt fee schedule,but shallbe such as to fully reimburse allaƩorneys'fees reasonablyincurred. 17.Prior Agreements/Amendments. 17.1 This Agreement supersedes any and all prior agreements between Seller and Buyer regarding the Property. 17.2 Amendments to this Agreement areeffecƟve only if made in wriƟng and executed by Buyer and Seller. 18.Broker's Rights. 18.1 If this saleis not consummated due to the default of either theBuyer or Seller,thedefaulƟng Party shallbe liableto and shallpay to Brokers the Brokerage Fee that Brokers would have received had thesale been consummated. IfBuyer is the defaulƟng party,payment ofsaid BrokerageFeeis in addiƟon to any obligaƟon with respect to liquidated or other damages. 18.2 Upon theClosing,Brokers are authorized to publicize the facts of this transacƟon. 19.NoƟces. 19.1 Whenever anyParty,Escrow Holder or Brokers herein shall desireto giveor serve anynoƟce,demand,request,approval,disapproval or other communicaƟon,each such communicaƟon shallbein wriƟng and shall be delivered personally,by messenger,or bymail,postage prepaid,to theaddress set forth in this agreement or by facsimiletransmission,electronic signature,digital signature,or email. 19.2 Service ofanysuch communicaƟon shall bedeemed made on the dateofactual receipt if personallydelivered,or transmiƩed by facsimiletransmission, electronicsignature,digital signature,or email. Anysuch communicaƟon sent byregular mail shallbe deemed given 48 hours aŌer thesameis mailed. CommunicaƟons sent byUnited States Express Mail or overnight courier that guaranteenext day delivery shall be deemed delivered 24 hours aŌer delivery of the sameto thePostal Serviceor courier. If such communicaƟon is received on aSaturday,Sunday or legal holiday,it shallbedeemed received on thenext business day. 19.3 Any Partyor Broker hereto may from Ɵmeto Ɵme,by noƟcein wriƟng,designate a different address to which,or adifferent person or addiƟonal persons to whom,allcommunicaƟons arethereaŌer to bemade. 20.DuraƟon of Offer. 20.1 If thisofferis not accepted bySelleron orbefore 5:00P.M.according to the Ɵmestandard applicable to the cityof onthe date of ,itshall bedeemed automaƟcally revoked. 20.2 The acceptanceofthis offer,or ofanysubsequent counteroffer hereto,that creates an agreement between theParƟes as described in paragraph 1.2,shall be deemed madeupon deliveryto the other Party or either Broker herein of aduly executed wriƟng uncondiƟonally accepƟng the last outstanding offer or counteroffer. 21.LIQUIDATED DAMAGES.(ThisLiquidated Damages paragraph is applicableonly if iniƟaled by bothParƟes). THE PARTIES AGREETHAT IT WOULDBE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR TOSIGNING THISAGREEMENT,THE ACTUAL DAMAGES WHICH WOULDBE SUFFEREDBY SELLER IF BUYER FAILSTO PERFORM ITS OBLIGATIONSUNDER THIS AGREEMENT.THEREFORE,IF,AFTER THE SATISFACTION OR WAIVER OF ALL CONTINGENCIESPROVIDED FOR THEBUYER'S BENEFIT,BUYER BREACHESTHIS AGREEMENT,SELLER SHALL BEENTITLED TOLIQUIDATEDDAMAGES IN THE AMOUNTOF Seller incurred fees . UPONPAYMENTOF SAIDSUM TOSELLER, BUYERSHALLBE RELEASEDFROM ANYFURTHERLIABILITY TO SELLER,AND ANY ESCROW CANCELLATION FEESAND TITLE COMPANY CHARGESSHALL BE PAID BY SELLER. Buyer's IniƟals Seller's IniƟals 22.ARBITRATION OF DISPUTES.(This ArbitraƟon ofDisputes paragraph is applicable only if iniƟaled by both ParƟes.) 22.1 ANY CONTROVERSY ASTO WHETHER SELLER IS ENTITLED TO LIQUIDATEDDAMAGESAND/OR BUYER IS ENTITLEDTO THERETURN OF THEDEPOSIT SHALL BE DETERMINEDBY BINDINGARBITRATION ADMINISTERED BY THE JUDICIAL ARBITRATION &MEDIATION SERVICES, INC.("JAMS") IN ACCORDANCEWITH ITSCOMMERCIAL ARBITRATION RULES ("COMMERCIAL RULES"). ARBITRATION HEARINGS SHALL BE HELDIN THE COUNTY WHERE THE PROPERTY IS LOCATED. SUCHCONTROVERSY SHALL BE ARBITRATEDBY A SINGLEARBITRATOR, APPOINTEDUNDER THE COMMERCIAL RULES WHOHAS HADAT LEAST 5YEARS OF EXPERIENCEIN THE TYPE OF REAL ESTATE THAT IS THESUBJECT OF THISAGREEMENT.THEARBITRATOR SHALL HEAR AND DETERMINESAID CONTROVERSY IN ACCORDANCEWITH APPLICABLE LAW OF THEJURISDICTION WHERETHE PROPERTY IS LOCATED, THE INTENTION OF THE PARTIES ASEXPRESSED IN THIS AGREEMENT AND ANY AMENDMENTS THERETO,ANDUPON THEEVIDENCE PRODUCEDAT AN ARBITRATION HEARING.PREARBITRATION DISCOVERY SHALL BE PERMITTEDIN ACCORDANCEWITH THECOMMERCIAL RULES OR STATE LAW APPLICABLE TOARBITRATION PROCEEDINGS. THEARBITRATOR SHALL RENDER AN AWARD WITHIN 30DAYS AFTER THE CONCLUSION OF THE HEARING,WHICH MAY INCLUDEATTORNEYS'FEESAND COSTSTOTHE PREVAILINGPARTY PER PARAGRAPH 1 6 HEREOF AND SHALL BEACCOMPANIED BY A REASONEDOPINION.THEFAILUREOR REFUSAL OF APARTY TO PAY SUCH PARTY’S REQUIREDSHARE DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 8 of 10 OF THE DEPOSITSFOR ARBITRATOR COMPENSATION OR ADMINISTRATIVECHARGES SHALL CONSTITUTE AWAIVER BY SUCHPARTY TO PRESENT EVIDENCE OR CROSSEXAMINEWITNESSES, BUT SUCH WAIVER SHALL NOT ALLOW FOR ADEFAULT JUDGMENT AGAINST THE NONPAYINGPARTY IN THE ABSENCE OF EVIDENCE ANDLEGAL ARGUMENT AS THE ARBITRATOR MAY REQUIREFOR MAKINGAN AWARD.JUDGMENT MAY BEENTERED ON THEAWARD IN ANY COURT OF COMPETENT JURISDICTION NOTWITHSTANDING THE FAILUREOF APARTY DULY NOTIFIED OF THEARBITRATION HEARING TOAPPEAR THEREAT. 22.2 BUYER'S RESORTTO OR PARTICIPATIONIN SUCHARBITRATIONPROCEEDINGS SHALLNOT BAR SUITIN ACOURTOF COMPETENTJURISDICTION BYTHE BUYER FOR DAMAGES AND/OR SPECIFIC PERFORMANCEUNLESS ANDUNTIL THEARBITRATION RESULTSINAN AWARDTO THESELLER OF LIQUIDATEDDAMAGES,IN WHICHEVENT SUCHAWARD SHALLACTAS ABAR AGAINSTANY ACTIONBYBUYER FOR DAMAGES AND/OR SPECIFIC PERFORMANCE. 22.3 NOTICE: BYINITIALING IN THESPACE BELOW YO U ARE AGREEING TO HAVEANYDISPUTE ARISING OUT OF THEMATTERS INCLUDEDIN THE"ARBITRATION OF DISPUTES"PROVISIONDECIDED BYNEUTRALARBITRATION ASPROVIDED BYCALIFORNIA LAW ANDYOU AREGIVING UPANYRIGHTS YOU MIGHT POSSESSTO HAVETHE DISPUTELITIGATED INACOURT OR JURY TRIAL. BYINITIALING IN THESPACE BELOW YOU ARE GIVINGUP YOUR JUDICIALRIGHTS TO DISCOVERY AND APPEAL,UNLESS SUCHRIGHTS ARESPECIFICALLYINCLUDED INTHE "ARBITRATIONOF DISPUTES"PROVISION. IFYOU REFUSETO SUBMIT TO ARBITRATION AFTER AGREEING TO THISPROVISION,YOU MAYBE COMPELLEDTO ARBITRATEUNDER THEAUTHORITYOF THECALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATIONPROVISION ISVOLUNTARY. WEHAVE READAND UNDERSTANDTHEFOREGOING ANDAGREE TO SUBMIT DISPUTESARISING OUT OF THE MATTERSINCLUDEDIN THE"ARBITRATION OF DISPUTES" PROVISIONTO NEUTRALARBITRATION. Buyer's IniƟals Seller's IniƟals 23.Miscellaneous. 23.1 Binding Effect.This Agreement shall bebinding on theParƟes without regard to whether or notparagraphs 21 and 22 areiniƟaled byboth of theParƟes. Paragraphs 21 and 22 areeach incorporated into this Agreement only ifiniƟaled by both ParƟes at the Ɵme that the Agreement is executed. Signatures to this Agreement accomplished bymeans ofelectronicsignature or similar technology shall belegaland binding. 23.2 Applicable Law.This Agreement shall begoverned by,and paragraph 22.3is amended to refer to,thelaws of the state in which theProperty is located. AnyliƟgaƟon or arbitraƟon between theParƟes hereto concerning this Agreement shallbeiniƟated in the countyin which theProperty is located. 23.3 Time of Essence.Timeis oftheessence ofthis Agreement. 23.4 Counterparts.This Agreement maybe executed byBuyer and Seller in counterparts,each ofwhich shallbedeemed an original,and all ofwhich together shallconsƟtute oneand thesameinstrument. Escrow Holder,aŌer verifying that the counterparts are idenƟcal except for thesignatures,is authorized and instructed to combine the signed signature pages on oneof thecounterparts,which shallthen consƟtute the Agreement. 23.5 Waiver of Jury Tria l.THE PARTIESHEREBY WAIVE THEIR RESPECTIVE RIGHTSTOTRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVINGTHE PROPERTY OR ARISINGOUT OF THISAGREEMENT. 23.6 Conflict.Anyconflict between the printed provisions of this Agreement and thetypewriƩen or handwriƩen provisions shallbe controlled by the typewriƩen or handwriƩen provisions.Seller and Buyer must iniƟal any and all handwriƩen provisions. 23.7 1031 Exchange.Both Seller and Buyer agreeto cooperate with each other in theevent that either or both wish to parƟcipate in a1031 exchange. Any partyiniƟaƟng an exchange shallbear all costs of such exchange. The cooperaƟng Partyshall not have any liability(special or otherwise)for damages to the exchanging Party in the event that the saleis delayed and/or that thesale otherwisefails to qualifyas a1031 exchange. 23.8 Days.Unless otherwise specifically indicated to thecontrary,theword "days"as used in this Agreement shallmean and refer to calendar days. 24.Disclosures Regarding The Nature of aReal Estate Agency RelaƟonship. 24.1 The ParƟes and Brokers agreethat their relaƟonship(s) shall begoverned bytheprinciples set forth in theapplicable secƟons of theCalifornia CivilCode,as summarized in paragraph 24.2. 24.2 When entering into a discussion with arealestateagent regarding arealestatetransacƟon,aBuyer or Seller should from theoutset understand what type ofagency relaƟonship or representaƟon it has with the agent or agents in the transacƟon. Buyer and Seller acknowledge being advised bythe Brokers in this transacƟon,as follows: (a)Seller's Agent.ASeller's agent under alisƟng agreement with theSeller acts as theagent for theSeller only. A Seller's agent or subagent has the following affirmaƟve obligaƟons: (1)To the Seller:A fiduciary duty of utmost care,integrity,honesty,and loyaltyin dealings with the Seller. (2)To the Buyerand the Seller:a.Diligent exerciseofreasonable skills and care in performance ofthe agent's duƟes. b. A duty of honest and fair dealing and good faith. c.A duty to disclose allfacts known to theagent materially affecƟng the valueor desirabilityofthe property that arenot known to,or within thediligent aƩenƟon and observaƟon of,the ParƟes. An agent is not obligated to reveal to either Party anyconfidenƟal informaƟon obtained fromtheother Party which does not involve theaffirmaƟve duƟes set forth above. (b)Buyer's Agent. A selling agent can,with aBuyer's consent,agree to act as agent for theBuyer only. In thesesituaƟons,theagent is not the Seller's agent,even ifby agreement the agent mayreceive compensaƟon for services rendered,either in full or in part from the Seller. An agent acƟng onlyfor aBuyer has the following affirmaƟveobligaƟons. (1)To the Buyer:A fiduciary duty ofutmost care,integrity,honesty,and loyalty in dealings with theBuyer. (2)To the Buyerand the Seller:a.Diligent exerciseofreasonable skills and care in performance ofthe agent's duƟes. b. A duty of honest and fair dealing and good faith. c. A duty to discloseall facts known to theagent materiallyaffecƟng thevalue or desirability of the property that arenot known to,or within the diligent aƩenƟon and observaƟon of,theParƟes. An agent is not obligated to reveal to either Party any confidenƟalinformaƟon obtained fromthe other Party which does not involvethe affirmaƟve duƟes set forth above. (c)Agent RepresenƟng BothSeller and Buyer. A real estate agent,either acƟng directly or through one or more associatelicensees,can legallybe the agent of both the Seller and the Buyer in atransacƟon,but onlywith theknowledge and consent of both the Seller and the Buyer. (1)In adual agency situaƟon,the agent has thefollowing affirmaƟveobligaƟons to both the Seller and theBuyer:a. A fiduciary duty ofutmost care,integrity,honesty and loyalty in the dealings with either Seller or the Buyer.b.Other duƟes to theSeller and theBuyer as stated above in their respecƟve secƟons (a)or (b) ofthis paragraph 24.2. (2)In represenƟng both Seller and Buyer,theagent may not,without theexpress permission ofthe respecƟve Party,discloseto the other Party confidenƟalinformaƟon,including,but not limited to,facts relaƟng to either Buyer's or Seller's financial posiƟon,moƟvaƟons,bargaining posiƟon,or other personalinformaƟon that may impact price, including Seller's willingness to accept apriceless than thelisƟng priceor Buyer's willingness to payaprice greater than thepriceoffered. (3) Theabove duƟes ofthe agent in arealestatetransacƟon do not relieve aSeller or Buyer from theresponsibility to protect their own interests. Buyer and Seller should carefully read all agreements to assure that they adequately express their understanding ofthe transacƟon. A realestate agent is aperson qualified to adviseabout real estate. If legal DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 9 of 10 or tax advice is desired,consult acompetent professional. Buyer has theduty to exercise reasonable care to protect Buyer,including as to thosefacts about the Propertywhich areknown to Buyer or within Buyer's diligent aƩenƟon and observaƟon. Both Seller and Buyer should strongly consider obtaining tax advice from a competent professional because the federaland state taxconsequences ofa transacƟon can be complexand subject to change. (d)FurtherDisclosures. Throughout this transacƟon Buyer and Seller mayreceivemore than one disclosure,depending upon thenumber ofagents assisƟng in thetransacƟon. Buyer and Seller should each read its contents each Ɵmeit is presented,considering therelaƟonship between themand thereal estate agent in this transacƟon and that disclosure. Buyer and Seller each acknowledge receipt ofa disclosure ofthe possibilityof mulƟple representaƟon by theBroker represenƟng that principal. This disclosure may be part ofa lisƟng agreement,buyer representaƟon agreement or separate document. Buyer understands that Broker represenƟng Buyer may also represent other potenƟal buyers,who may consider,makeoffers on or ulƟmately acquire the Property. Seller understands that Broker represenƟng Seller may also represent other sellers with compeƟng properƟes that maybe ofinterest to this Buyer. Brokers have no responsibility with respect to anydefault or breach hereof byeither Party. The ParƟes agree that no lawsuit or other legalproceeding involving anybreach ofduty,error or omission relaƟng to this transacƟon maybebrought against Broker morethan oneyear aŌer theDate ofAgreement and that the liability(including court costs and aƩorneys' fees),of anyBroker with respect to anybreach ofduty,error or omission relaƟng to this Agreement shall not exceed thefeereceived bysuch Broker pursuant to this Agreement;provided,however,that theforegoing limitaƟon on each Broker's liability shallnot be applicable to anygross negligence or willful misconduct ofsuch Broker. 24.3 ConfidenƟal InformaƟon.Buyer and Seller agreeto idenƟfy to Brokers as "ConfidenƟal"any communicaƟon or informaƟon given Brokers that is considered bysuch Party to be confidenƟal. 25.ConstrucƟon of Agreement.In construing this Agreement,allheadings and Ɵtles are for the convenienceofthe ParƟes only and shallnot beconsidered apart ofthis Agreement. Whenever required by thecontext,thesingular shallincludethepluraland viceversa. This Agreement shallnot be construed as ifprepared by oneof theParƟes,but rather according to its fair meaning as awhole,as if both ParƟes had prepared it. 26.AddiƟonal Provisions. AddiƟonalprovisions ofthis offer, if any, are as follows or are aƩached hereto byan addendum oraddenda consisƟng of paragraphs 1 through 1 . (If there are no addiƟonalprovisions write"NONE".) ATTENTION :NO REPRESENTATION OR RECOMMENDATION ISMADE BY AIR CREOR BY ANY BROKER ASTO THELEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCESOF THISAGREEMENT OR THE TRANSACTION TO WHICH IT RELATES.THE PARTIES AREURGED TO: 1.SEEK ADVICE OF COUNSEL AS TOTHE LEGAL ANDTAX CONSEQUENCESOF THISAGREEMENT. 2.RETAIN APPROPRIATE CONSULTANTSTOREVIEW ANDINVESTIGATE THE CONDITION OF THE PROPERTY.SAID INVESTIGATION SHOULDINCLUDEBUT NOT BELIMITED TO:THE POSSIBLEPRESENCEOF HAZARDOUSSUBSTANCES, THEZONING OF THEPROPERTY, THE INTEGRITY ANDCONDITION OF ANY STRUCTURES ANDOPERATING SYSTEMS, AND THESUITABILITY OF THE PROPERTY FOR BUYER'S INTENDEDUSE. WARNING :IF THEPROPERTY ISLOCATED IN ASTATEOTHER THAN CALIFORNIA,CERTAIN PROVISIONS OF THIS AGREEMENT MAY NEED TOBE REVISEDTO COMPLY WITH THE LAWS OF THE STATE IN WHICH THEPROPERTY ISLOCATED. NOTE: 1.THISFORM IS NOT FOR USEIN CONNECTION WITHTHE SALEOF RESIDENTIAL PROPERTY. 2.IF EITHER PART Y ISA CORPORATION,IT ISRECOMMENDEDTHAT THISAGREEMENT BESIGNED BY TWO CORPORATE OFFICERS. Theundersigned Buyer offers and agrees to buy the Property on theterms and condiƟons stated and acknowledges receipt ofa copyhereof. BROKER Keller Williams Covina AƩn:Carolina Ruiz Wills Title:Associate Broker Address:100 N. Citrus St., West Covina, CA 91791 Phone:626-862-5654 Fax: Email:Carolina@BrokerCarolina.com Federal ID No.: BrokerDRE License#:01970316 AgentDRE License#:01275776 Date:08/19/2021 BUYER City of Baldwin Park By: NamePrinted:Enrique C. Zaldivar Title:Chief Executive Officer Phone: Fax: Email: By: NamePrinted: Title: Phone: Fax: Email: Address: DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 ________ ________ ________ ________ INITIALS INITIALS © 2019 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM OFA20.20,Revised10222020 Page 10 of 10 Federal ID No.: 27.Acceptance. 27.1 Seller accepts theforegoing offer to purchase the Property and hereby agrees to sell theProperty to Buyer on theterms and condiƟons therein specified. 27.2 In consideraƟon ofreal estatebrokerage servicerendered by Brokers,Seller agrees to pay Brokers a real estate Brokerage Fee in asum equal to %ofthe Purchase Price tobedivided betweenthe Brokers asfollows: Seller's Broker %and Buyer's Broker 2 %. This Agreement shall serveas an irrevocable instrucƟon to Escrow Holder to paysuch Brokerage Feeto Brokers out of theproceeds accruing to the account of Seller at the Closing. 27.3 Seller acknowledges receipt of acopy hereofand authorizes Brokers to deliver asigned copy to Buyer. NOTE:APROPERTY INFORMATION SHEET ISREQUIRED TOBE DELIVEREDTO BUYER BY SELLER UNDER THIS AGREEMENT. BROKER Keller Williams Realty Arcadia AƩn:Julie Hsu Title: Address: Phone:626-203-2331 Fax: Email:juliehsurealtor@gmail.com Federal ID No.: BrokerDRE License#:01523681 Agent'sDRE License#:01137178 Date: SELLER Topline Automotive Inc. By: NamePrinted: Title: Phone: Fax: Email: By: NamePrinted: Title: Phone: Fax: Email: Address: Federal ID No.: AIR CRE * hƩps://www.aircre.com *2136878777 * contracts@aircre.com NOTICE:Nopart of theseworks may be reproduced in any form without permission in wriƟng. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 8/23/2021 Subject to the Seller Counter Offer (SMCO-1), dated 8-23-21. Ching Hsien Chou 8/23/2021 ________ ________ ________ ________ INITIALS INITIALS © 2017 AIR CRE. All Rights Reserved. Last Edited:8/19/2021 3:01PM APA1.03,Revised10222020 Page 1 of 1 ADDENDUM TO THE STANDARD OFFER,AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE OF REAL ESTATE Date:08/19/2021 By and Between Buyer:City of Baldwin Park Seller:Topline Automotive Inc. Property Address:13167 Garvey Avenue, Baldwin Park, CA 91706 (street address,city,state,zip) This Addendum is aƩached and madepart ofthe abovereferenced Agreement (said Agreement and theAddendum arehereinaŌer collecƟvely referred to as the "Agreement"). In the event ofany conflict between theprovisions ofthis Addendum and the printed provisions of theAgreement,this Addendum shall control Seller to provide Phase 1Environmental Site Assessment report provided by the previousowner at no cost to the buyer. Property to be deliveredvacant at close of escrow. AIR CRE * hƩps://www.aircre.com *2136878777 * contracts@aircre.com NOTICE:Nopart of theseworks may be reproduced in any form without permission in wriƟng. DocuSign Envelope ID: D81122A1-E017-4457-82DA-338E9EF99779DocuSign Envelope ID: B5DEE416-A790-486E-B18D-1118D1A48CA9 STAFF REPORT ITEM NO. ________14_______ TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Benjamin Martinez, Community Development Director DATE: October 6, 2021 SUBJECT: Approving an Affordable Homeownership Expansion Agreement with San Gabriel Valley Habitat for Humanity SUMMARY This report seeks Council approval of an Affordable Homeownership Expansion Agreement with San Gabriel Valley Habitat for Humanity (“SGV Habitat”) and it’s CHDO-affiliate Neighborhood Housing Partners, Inc. (“NHPI”), to explore homeownership expansion programs in Baldwin Park. The programs could include new home construction, acquisition and rehabilitation of existing homes and/or substantial rehabilitation/critical home repairs for existing homeowners. As proposed in the agreement, before any funding is committed or spent, NHPI and SGV Habitat would need to return to the City Council for approval of the specific homeownership project or program. At that time, staff would present the project or program and the recommended source and allocation of funds for City Council consideration of approval. RECOMMENDATION Staff recommends that the City Council: 1. Approve the Affordable Homeownership Expansion Agreement with NHPI and SGV Habitat to explore homeownership expansion programs in Baldwin Park; and 2. Direct the Chief Executive Officer to appropriate funding up to $3,584,659 under the agreement with NHPI and SGV Habitat; and 3. Authorize the Chief Executive Officer to execute said agreement for a term of three (3) years with an optional two-year extension at the sole discretion of the City. FISCAL IMPACT There is no fiscal impact to the General Fund. The proposed funding sources to provide up to $3,584,659 in funding under this agreement is as follows: • Up to $2 million in American Rescue Act Funds • Up to $575,000 Low/Mod Funds (Fund 890) • Up to $725,000 in Future Development Funds (Fund 200) • A total of $284,659 in HOME Investment Partnership Act Funds or CHDO Reserve Funds as explained below under Background. As proposed in the agreement, before any funding is committed or spent, NHPI and SGV Habitat would need to return to the City Council for approval of the specific homeownership project or program. At that time, staff would present the project or program and the recommended source and allocation of funds for City Council consideration. BACKGROUND On July 21, 2021, SGV Habitat made a presentation to the City Council for the following programs: 1. New home construction 2. Acquisition and rehabilitation (“acq/rehab”) of existing homes 3. Accessory Dwelling Unit (ADU) construction or conversion 4. Substantial rehab / critical home repairs / resolving code violations 5. Targeted area improvement project Under this proposed agreement, NHPI and SGV Habitat would pursue individual homeownership projects or programs under items 1, 2 and 4 listed above. Upon selecting a potential opportunity, NHPI and SGV Habitat shall submit to the City for review a proposal describing and detailing the potential opportunity, with supporting documents, which shall include, at a minimum, the following documents, reports and information: • Unit mix and proposed income targeting • An overview of any proposed construction work with preliminary cost estimates. • A proposed schedule for development of the Project and the timeframe for bringing the Projects online and making them available to purchasers. • A financial pro forma which contains: (i) a projected development budget for the Project; (ii) a projected sources and uses analysis, and (iii) and anticipated purchase prices of the individual unit or units. The City shall review each submittal and reject, accept or meet and confer with NHPI and SGV Habitat. If the City, NHPI and SGV Habitat are satisfied with the feasibility of any project, the City, NHPI and SGV Habitat shall seek in good faith to negotiate, draft and enter into mutually acceptable agreements for the contribution of City funds to and the development of such project. The term of the agreement would be for three (3) years with an optional two-year extension at the sole discretion of the City. CHDO Reserve Neighborhood Housing Partners, Inc. (NHPI) is a Community Housing Development Organization (“CHDO”) as defined by the Department of Housing and Urban Development (HUD). A CHDO has the organizational goal is to eliminate poverty housing by working with economically disadvantaged individuals and families to create better living conditions, and by providing decent, safe, affordable housing to low-and-moderate income individuals and families. The City Council certified NHPI as a CHDO and NHPI is a California nonprofit public benefit corporation that operates exclusively to support and benefit the San Gabriel Valley Habitat. For this reason, NHPI is eligible to receive all or a portion of the City’s $284,659 of HOME Investment Partnership Act Funds CHDO Reserve Funds. LEGAL REVIEW The Affordable Homeownership Expansion Agreement was prepared by Special Legal Counsel (Christensen & Spath, LLC) and reviewed and approved by the City Attorney. ALTERNATIVES The City Council could consider an alternative decision to modify this agreement. ATTACHMENTS 1. Affordable Homeownership Expansion Agreement with NHPI and SGV Habitat 1 AFFORDABLE HOMEOWNERSHIP EXPANSION AGREEMENT THIS AFFORDABLE HOMEOWNERSHIP EXPANSION AGREEMENT (“Agreement”) is dated as of the 6th day of October, 2021, by and between the City of Baldwin Park (“City”), Neighborhood Housing Partners, Inc., a California nonprofit public benefit corporation (“NHP”), and San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (“SGV Habitat”). RECITALS A. SGV Habitat is a nonprofit corporation whose organizational goal is to eliminate poverty housing by working with economically disadvantaged individuals and families to create better living conditions, and by providing decent, safe, affordable housing to low-and-moderate income individuals and families. NHP is a nonprofit corporation that operates exclusively to support and benefit SGV Habitat. B. NHP is a Community Housing Development Organization (“CHDO”) as defined in 24 CFR Part 92. The HOME Investment Partnership Act regulations (24 CFR Part 92) require the City to invest 15% of the City’s HOME funds (“CHDO Reserve Funds”) in housing owned, developed or sponsored by CHDO’s. NHP, due to its CHDO certification, is eligible to receive 15% in HOME Investment Partnership Act Entitlement Funds from the City or what is referred to as “CHDO Reserve Funds.” The City currently has $284,659 of CHDO Reserve Funds. C. The City desires to utilize NHP’s and SGV Habitat’s knowledge, resources and capabilities in order to seek out, develop and expand affordable homeownership opportunities in the City of Baldwin Park (collectively “Potential Opportunities” or individually, a “Potential Opportunity”). The City, NHP and SGV Habitat desire for SGV Habitat to present the Potential Opportunities to the City, so that the City may ev aluate such Potential Opportunities and determine whether to contribute funds (“City Funds”) to NHP and/or SGV Habitat to assist with the conversion of such Potential Opportunities to actual projects. The City agrees to set aside up to $3,584,659 (which amount includes the $284,659 of CHDO Reserve Funds) of City Funds to assist with any Potential Opportunities which are approved by the City and become actual projects (“Projects” or individually, a “Project”). D. Each Project utilizing City Funds shall be the subject of a separate agreement entered into between the City and NHP and/or SGV Habitat at the time of the City’s approval of the same and the parties’ agreement with respect to the terms and conditions of the Project and City Funds. Each such separate agreement shall contain the specific details and requirements of the parties with respect to the same. NHP and SGV Habitat acknowledges that the City may utilize funds which include certain restrictions, such as United States Department of Urban Development Home Investment Partnership Program Funds. NHP and SGV Habitat agrees that any City Funds contributed to any Project shall be used only as allowed by the City consistent with the statutes and regulations governing the use of the City Funds. 2 NOW, THEREFORE, NHP, SGV Habitat and the City, hereby agree as follows: 1. Term of Agreement and Obligations. NHP and SGV Habitat agree to seek out Potential Opportunities in the City of Baldwin Park for a period of three (3) years from the date first set forth above, with an optional two-year extension at the sole discretion of the City (“Term”). During the Term, NHP and SGV Habitat shall diligently and in good faith seek out Potential Opportunities, which Potential Opportunities may include new home construction, acquisition and rehabilitation of existing homes, accessory dwelling unit construction or conversion, substation rehabilitation and the making of critical repairs to existing housing stock, and community improvement projects. 2. Set Aside of City Funds. The City agrees to set aside up to $3,584,659 of City Funds, including $284,659 of CHDO Reserve Funds, to fund any Potential Opportunities which are selected to and become Projects. These funds are contingent on availability and determination of eligibility to be conducted on a case-by-case basis as NHP and SGV Habitat propose projects for approval. NHP, SGV Habitat and the City each acknowledges that any CHDO Reserve Funds shall be invested only in Projects owned by NHP or NHP-affiliated entities as set forth in 24 CFR Section 92.300, et seq. 3. Submission of Potential Opportunities. Upon selecting a Potential Opportunity, NHP and/or SGV Habitat shall submit to the City for review, a proposal describing and detailing the Potential Opportunity, with supporting documents, which shall include the following documents, reports and information (collectively, the “Submittal”): (a) Unit mix and proposed income targeting (b) An overview of any proposed construction work with preliminary cost estimates. (c) A proposed schedule for development of the Project and the timeframe for bringing the Projects online and making them available to purchasers. (d) A financial pro forma which contains: (i) a projected development budget for the Project; (ii) a projected sources and uses analysis, and (iii) and anticipated purchase prices of the individual unit or units. 4. City Review and Response to Submittals. The City shall review each Submittal and reject, accept or meet and confer with NHP and/or SGV Habitat. If both the City and NHP and/or SGV Habitat are satisfied with the feasibility of any Project, the City and NHP and/or SGV Habitat shall seek in good faith to negotiate, draft and enter into mutually acceptable agreements for the contribution of City Funds to and the development of such Project. However, by entering into this Agreement, the Parties are not contractually bound to enter into any agreements for the development of any Project. 5. Cooperation. The City agrees to cooperate with NHP and SGV Habitat and supply appropriate information to NHP and SGV Habitat with respect to the availability of the City Funds and the applicable restrictions associated with the use of any such City Funds. The City, NHP and 3 SGV Habitat each agree to provide one another and each of their professional consultants and advisors with any information and assistance reasonably within the capacity of the City, NHP or SGV Habitat, as applicable, to assist with the analysis of the feasibility of each Potential Opportunity. 6. Nondiscrimination. Neither NHP nor SGV Habitat shall discriminate against or segregate, any person, or group or persons on account of basis of race, color, creed, religion, sex, sexual orientation, sexual identity, marital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any Project, nor shall NHP or SGV Habitat establish or permit any such practice or practices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any Project. 7. Environmental Requirements. Certain Federal, state and local environmental requirements (including, but without limitation, the National Environmental Policy Act and the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et seq.) may be applicable to a Project and/or the use of City Funds. Pursuant to such requirements, certain environmental documents may be required to be prepared and certified for each Project prior to the City’s commitment of City Funds or entry into any agreements or commitments with respect to any Project. 8. City Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City Manager or his or her designee is authorized to act on behalf of City, unless specifically provided otherwise. 9. General Indemnity. NHP and SGV Habitat shall be responsible for all injuries to persons and/or all damages to real or personal property of the City or others, caused by or resulting from the negligence and/or breach of this Agreement, by NHP or SGV Habitat or any of their employees, contractors, subcontractors and/or agents arising out of this Agreement, except those arising from the sole active negligence or sole willful misconduct of the City. NHP and SGV Habitat shall defend and hold harmless and indemnify the City, and all of its councilmembers, agents, officers, representatives, directors and employees from all liabilities, causes of action, demands costs, damages, judgments, expenses and claims (collectively “Claims”) by any person resulting from NHP or SGV Habitat’s breach of this Agreement or the negligence of NHP or SGV Habitat or any of their employees, contractors, subcontractors and/or agents, arising out of this Agreement. NHP and SGV Habitat shall defend any Claims, at the sole cost and expense of NHP and SGV Habitat, with counsel of the indemnified party’s choosing, provided that NHP’s and SGV Habitat’s obligation with respect to fees of indemnified party’s counsel shall be limited to reasonable fees. 10. General Provisions. (a) Address for Notices. All notices under this Agreement shall be in writing and sent (i) by certified or registered U.S. mail, return receipt requested, (ii) overnight by a nationally recognized overnight courier such as UPS Overnight or FedEx, (iii) by personal delivery or (iv) via email. All notices shall be effective upon receipt (or refusal to accept delivery). All notices shall be delivered to the following addresses or such other addresses as changed by any party from time to time by written notice to the other parties hereto: 4 5 Lender: c/o City of Baldwin Park Attn: Benjamin Martinez 14403 East Pacific Avenue Baldwin Park, CA 91706 Email: bmartinez@baldwinpark.com Copy to: Christensen & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Email: wfs@candslaw.net NHP or SGV Habitat: San Gabriel Valley Habitat for Humanity, Inc. Neighborhood Housing Partners, Inc. Attn: Bryan Wong, Executive Director 724 East Huntington Drive Monrovia, CA 91016 Email: bwong@sgvhabitat.org (b) Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. Notwithstanding the foregoing, with respect to any Potential Opportunity which becomes a Project, this Agreement shall be superseded by the Project-specific agreements and documents executed by NHP and/or SGV Habitat and the City. Provided, however, such Project-specific agreements and documents shall not be novation of this Agreement vis-à-vis any Potential Opportunities or Projects other than the Project which is subject to such Project-specific agreements and documents. (c) Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the City, NHP and SGV Habitat. (d) Assignment Prohibited. In no event shall NHP or SGV Habitat assign or transfer any portion of their rights or obligations under this Agreement without the prior express written consent of the City, which consent may be withheld in the City’s sole and absolute discretion. (e) Governmental Requirements Superior. All provisions of this Agreement and all the other documents relating to the Loan shall be subject and subordinate to any and all applicable federal, state and local statutes, regulations and ordinances and shall be subject to modification to comply therewith. (f) Severability. If any provision of this Agreement is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Agreement and the remaining provisions shall continue in full force and effect. 6 (g) Recitals Incorporated. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference. (h) Construction of Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party but shall be construed as if both parties contributed equally to its preparation. This Agreement shall be construed in accordance with the laws of the State of California. (i) Counterparts. This Agreement may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. (j) Capacity and Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to one another that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY: City of Baldwin Park By:__________________________________ Enrique C. Zaldivar Chief Executive Officer SGV HABITAT: San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation By:__________________________________ Print Name:___________________________ Its:__________________________________ NHP: Neighborhood Housing Partners, Inc., a California nonprofit public benefit corporation By:__________________________________ Print Name:___________________________ Its:__________________________________ STAFF REPORT ITEM NO. ________15_________ TO: Honorable Mayor and Members of the City Council FROM: Benjamin Martinez, Director of Community Development PREPARED BY: Carol Averell, Housing Manager DATE: October 6, 2021 SUBJECT: Approval of Community Development Block Grant-COVID (CDBG-CV) Public Service Grant Agreement for a Legal Services Program to Assist Residential Tenants and Landlords SUMMARY This report requests the City Council’s consider to enter into a CDBG-CV public service grant agreement in the amount of $50,000 with Neighborhood Legal Services of Los Angeles County (NLSLA), to provide Baldwin Park tenants and landlords with legal services regarding evictions and rent control brought on by COVID-19, and authorize the Chief Executive Officer to execute the CDBG- CV public service grant agreement. RECOMMENDATION Staff recommends that the City Council: 1. Enter into a CDBG-CV public service grant agreement in the amount of $50,000 with NLSLA to provide Baldwin Park tenants and landlords with legal services regarding evictions and rent control brought on by COVID-19; and 2. Authorize the City Attorney to make any required conforming revisions to the grant agreement as required by the Department of Housing and Urban Development and direct the Chief Executive Officer to execute a CDBG-CV public service grant agreement. FISCAL IMPACT The City Council has approved the allocation of $50,000 in CDBG-CV funds for legal services on April 21, 2021. There is no fiscal impact to the General Fund for the provisions of these services. BACKGROUND On April 21, 2021, staff presented Amendment No. Two (Substantial) to the FY 2019/20 Annual Action Plan which programed a special allocation of CDBG-Coronavirus funding in the amount of $595,251. The substantial amendment proposed the allocation of several programs including legal services to assist Baldwin Park residents and tenants. DISCUSSION Staff has been working diligently to identify an organization that provides legal services, is familiar with the CDBG and CDBG-CV requirements and also has the staff capacity to provide these services. NLSLA was established in 1965 and is the principal legal aid organization serving the Antelope, San Fernando, Pomona and San Gabriel Valleys, including the City of Baldwin Park. NLSLA is one of the largest non-profit law firms in California, recognized state and nationwide as a premier legal services organization. In 2019, NLSLA served, through representation, self-help and counsel and advice, over 100,000 people, the majority living at or below 125% of the Federal Poverty Level. NLSLA’s staff of over 130 advocates and support personnel offer legal assistance and representation in housing, health, employment, public benefits, immigration, consumer and domestic violence. NLSLA also provides community education events at local schools, faith-based organizations, and other trust centers. A key component of NLSLA’s mission, includes the provision of legal services to help prevent incidence of homelessness and address the root causes of homelessness. They stand at the forefront of legal innovation in homelessness prevention in L.A. County. NLSLA also leads the Shriver Housing Project- LA (Shriver), the largest CA eviction assistance effort. In collaboration with the LA Superior Court and public interest law firms, Shriver has provided legal assistance in nearly 10,000 eviction. NLSLA is a core member of the Los Angeles Right to Counsel Coalition, which seeks to enshrine a right to counsel for people facing eviction in L.A. and who cannot afford an attorney. NLSLA is also a partner with LAHSA and six public interest law firms on Lawyers Preventing and Ending Homelessness Project which represents clients who are either currently experiencing homelessness or who are at imminent risk of homelessness. Under this proposal, NLSLA would assist low-income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to their housing teams for higher level representation at their hearings, if appropriate and within the scope of their priorities. The City of Baldwin Park may in some cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations. LEGAL REVIEW The City Attorney has reviewed the public service grant agreement as to legal form and content. ENVIRONMENTAL The action being considered by the City Council will require an Environmental Review for Activity/Project that is Exempt or Categorically Excluded Not Subject to Section 58.5 Pursuant to 24 CFR 58.34(a) and 58.35(b) prior to entering into the public service grant agreement. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment ALTERNATIVES The City Council may provide an alternate direction. ATTACHMENTS 1. CDBG-CV Public Service Grant Agreement with NLSLA. For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 22 2021-2021 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUBAWARD AGREEMENT LEGAL SERVICES PROGRAM OFFERED BY THE NEIGHBORHOOD LEGAL SERVICES OF LOS ANGELES COUNTY (NLSLA) THIS SUBAWARD AGREEMENT (hereinafter, “Agreement”) entered into as of this 6th day of October 2021 (hereinafter, “Effective Date”), is entered into by and between the CITY OF BALDWIN PARK, a California municipal corporation (hereinafter, “City”) with offices at 14403 E. Pacific Avenue, Baldwin Park, CA 91706, and Neighborhood Legal Services of Los Angeles County (NLSLA), a non-profit law firm in California (hereinafter, “Subrecipient”). For purposes of this Agreement, the capitalized term “Parties” shall be a collective reference to both City and Subrecipient. The capitalized term “Party” may refer to either City or Subrecipient interchangeably as appropriate. R E C I T A L S WHEREAS, City participates in the Community Development Block Grant - CV (“CDBG-CV”) Program administered by the United States Department of Housing and Urban Development (“HUD”) under Government under Title I of the Housing and Community Development Act of 1974, as amended, (42 USC 5310 et seq.), which provides communities with resources to address a wide range of unique community development needs; and WHEREAS, on June 18, 2020 the City was awarded CDBG-CV funding for the fiscal year 2020-2021 (hereinafter, “CDBG-CV Funds”). The City’s Federal Award Identification number is B-20-MW-06-0554. Pursuant to the CDBG-CV Program, City receives funds from HUD for activities that benefit low or moderate-income individuals. Each activity must meet one of the following national objectives for the CDBG-CV Program: (1) benefit low and moderate-income persons; (2) prevention or elimination of slums or blight; (3) or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available; and WHEREAS, Subrecipient is a legal services organization that will assist low-income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services; and WHEREAS, pursuant to 24 CFR §570.503, the City may enter into subaward agreements to administer CDBG-CV programing and City wishes Subrecipient to assist the City in utilizing such funds; and WHEREAS, in accordance with the objectives of the HCD Act, the City’s subaward of CDBG-CV Funds to Subrecipient will provide programing that will benefit low or moderate income persons within the City of Baldwin Park community. For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 2 A G R E E M E N T Based upon the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, City and Subrecipient hereby agree as follows: I. DEFINITIONS For purposes of this Agreement, the following terms shall have the meanings given below unless expressly provided to the contrary: “Agreement” shall mean this Community Development Block Grant Program – CV Subrecipient Agreement between City and Subrecipient, including all exhibits and other documents attached or otherwise incorporated hereto. “Budget” shall refer to the NLSLA Budget that is attached and incorporated hereto as Exhibit “B” and which sets out the line item categories of Eligible Expenses and the amount of CDBG-CV Funds allocated to each category of Eligible Expense. The Budget may not be changed without the prior written approval of City’s Contract Officer. “Contract Officer” shall mean City’s Community Development Director or Housing Manager or such other person as may be designated by the City Manager. “Eligible Expenses” shall mean the expenses set forth in the Budget for which CDBG-CV Funds may be used and administrative services contemplated under this Agreement and 24 CFR §570.201. “CDBG-CV Funds” shall mean the funds allocated to the City by HUD through the CDBG-CV Program. “CDBG-CV Funding Cap” shall mean the maximum amount of CDBG-CV Funds that may be disbursed to Subrecipient during the Funding Period, which amount shall be as follows: FIFTY THOUSAND DOLLARS ($50,000). These CDBG-CV Funds shall be used to run the Legal Services Program. “CDBG-CV Program” shall mean the Community Development Block Grant - Coronavurus Program administered by HUD under HCD Act and described in the CDBG-CV Program Overview, which is attached hereto as Exhibit “C.” “Funding Period” means that certain period of time from October __ 2021 through October 31, 2022. The term of this agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG-CV funds or other CDBG-CV assets including Program Income. “Program” shall mean the Legal Service Program referred to in the Recitals of this Agreement. The Program shall provide a variety of legal services to low income residents in Baldwin Park, including virtual monthly legal clinic, education about their basic housing For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 3 rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to legal housing teams for higher level representation at hearings as more particularly described in the Scope of Service and the Program Budget. “Program Income” shall mean all gross income generated directly by Program Services and other activity supported by CDBG-CV Funds as further defined in 24 CFR §570.500 and 24 CFR §570.504. “Program Participant” shall mean any person who participates in the Program. “Program Regulations” shall refer collectively to the requirements of the Community Development Act 1974, as amended, and HUD’s implementing regulations set forth in 24 CFR Part 570, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth in 2 CFR Part 200, except those provisions expressly set forth in 24 CFR §570.502 as inapplicable to CDBG-CV Grants, and as the same may modified or amended from time to time and are incorporated in this Agreement by this reference. “Program Services” shall refer to the collective programming and activities Subrecipient shall provide as part of the Legal Services Program under the terms of this Agreement and as more particularly described in the Scope of Services attached and incorporated hereto as Exhibit “A.” “Quarter” or “quarterly” shall mean any of the three (3) month periods during a City fiscal year commencing July 1, October 1, January 1, or April 1. Month” or “monthly” shall mean any of the twelve (12) month periods during a City fiscal year commencing July 1, and ending June 30. “Subrecipient Personnel” shall mean any employee, volunteer, contractor, subcontractor, or agent of Subrecipient or any other person under Subrecipient’s supervision, control or direction, including subcontractors engaged by Subrecipient to perform the services and tasks contemplated herein. “Subrecipient Representative” shall mean Yvonne Mariajimenez, Executive Director NLSLA who is designated by Subrecipient to represent Subrecipient in the administration of this Agreement. “Third Party Contracts” shall have the meaning ascribed in Section 3.4 of this Agreement. II. USE OF CDBG-CV FUNDS 2.1 Term. This Agreement shall govern the performance of the Parties over the course of the Funding Period, unless earlier terminated by either party in accordance with the terms of this Agreement. Notwithstanding anything herein to the contrary, Subrecipient’s For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 4 obligations to City shall not end until all closeout requirements required by the Program Regulations are completed. 2.2 Scope of Services and Budget. A. Under the terms and conditions of this Agreement, the City has allocated a subaward of CDBG-CV Funds to the Subrecipient to carry out certain eligible activities pursuant to 24 CFR Part 570. Subrecipient shall use the CDBG-CV Funds to perform the specific Program Services set forth in the Scope of Services, which is attached and incorporated hereto as Exhibit “A.” Subrecipient shall perform the Program Services in accordance with the approved Budget, which is attached and incorporated hereto as “Exhibit B.” Pursuant to 2 CFR §200.331, the required subaward information is attached hereto as Exhibit “D.” B. Subrecipient shall use CDBG-CV Funds only for the Eligible Expenses permitted under the Budget and Program Regulations. Subrecipient acknowledges that it is responsible for expenses that exceed the total award amount and agrees that any funds not used in accordance with the Program Regulations and Budget must be repaid to the City. 2.3 Prior Approval for Changes. Subrecipient may not transfer allocated funds among cost categories within a budgeted program account without City’s prior written approval; nor shall Subrecipient make any changes, directly or indirectly, in program design or Program Services or in the Budget without City’s prior written approval. III. DISBURSEMENT OF FUNDS 3.1 Funding Cap. Under the terms and conditions of this Agreement, the City has allocated a subaward of CDBG-CV Funds to Subrecipient in an amount not-to-exceed FIFTY THOUSAND DOLLARS ($50,000). 3.2 Reimbursement of CDBG-CV Funds. A. Subject to all terms, conditions, and funding restrictions set forth under this Agreement, and provided Subrecipient is not in default under this Agreement, City will disburse CDBG-CV Funds to Subrecipient on a monthly basis to reimburse Subrecipient for Eligible Expenses incurred over the course of the Funding Period. B. All Eligible Expense shall be incurred in accordance with the Program Regulations, the Prime Award, and the authorizations, restrictions and requirements contained in the Notice of Prime Award and any amendments thereto and other applicable laws, regulations, grant terms and conditions or policies. C. In no event shall the amount of CDBG-CV Funds disbursed to Subrecipient exceed the Funding Cap, and all sums disbursed shall abide by the expenditure limits set forth in both the Budget and Program Regulations. D. City shall only reimburse Subrecipient for those costs actually incurred during For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 5 the Funding Period and allowable under 24 CFR Part 570 and subject to the cost principles in 2 CFR Part 200, subpart E, as exempted or modified by 24 CFR §570.502. CDBG-CV Funds shall not be expended following the earlier of the expiration or termination of this Agreement. E. The Parties acknowledge, understand and agree that City’s obligation to disburse CDBG-CV Funds is dependent upon the availability of such funds from HUD and if for any reason, City does not receive sufficient CDBG-CV Funds from HUD, or if, for any reason, HUD withdraws such funding, City shall have no further obligation to provide additional funding for any Eligible Expenses incurred by Subrecipient nor shall City be obligated to secure funding for payment of Eligible Expenses incurred by Subrecipient from any other funding source. 3.3 Invoices. A. Following the conclusion of each month during the Funding Period, Subrecipient shall submit to City a detailed and itemized invoice that identifies all Eligible Expenses incurred during the recently concluded month. The invoice shall take the form and include, at minimum, the required information set forth in the sample invoice attached and incorporated hereto as Exhibit “E.” The required invoice information shall include, but is not limited to, a list and reasonable description all out-of-pocket expenditures made and compensable tasks performed (i.e., all Eligible Expenses) during the recently concluded month as well all matching funds used to support the program. In so far as the invoiced expenses include hourly staff time, the invoice shall indicate the number of hours devoted to a particular task, the person(s) performing the task, a reasonably detailed description of the task and the applicable hourly billing rate for performing the task. Subrecipient’s invoices shall be accompanied by supporting documentation such as receipts, paid invoices, cashed checks, time records, billing statements, bank statements, and contracts. City reserves the right to request such other supporting documentation as it deems necessary or desirable to verify whether a claimed expense qualifies as an Eligible Expense. B. Within fifteen (15) calendar days of City’s receipt of the invoice, City shall notify Subrecipient in writing to identify any costs or expenses contained in the invoice that the City disputes or to request clarification or additional supporting documentation as to any claimed cost or expense. Within thirty (30) calendar days of receipt of each invoice, City shall disburse CDBG-CV Funds to the Subrecipient for all undisputed or unquestioned costs and expenses set forth in the invoice submitted by Subrecipient. Sums disputed or contested by the City or which the City has requested but not received clarification or additional supporting documentation shall be paid during the next invoice cycle, provided the Parties have resolved the dispute or City has received satisfactory clarification. C. All submitted invoices must be signed by an authorized signatory of Subrecipient and certified in accordance with 2 CFR §200.415. Notwithstanding anything to the contrary in this Agreement, the City also reserves the right to request and approve documentation supporting any invoice to verify the reasonableness and validity of such costs. D. Subrecipient shall return to City any over payments due to unearned funds or For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 6 activities disallowed pursuant to this Agreement. Subrecipient shall return any overpayment to the City within thirty (30) days after discovery by Subrecipient or within fifteen (15) days after notification by the City. E. All invoices itemizing Eligible Expenses incurred during the Funding Period must be received by the end of the City’s Fiscal Year 2021-2022. Any invoices received after the conclusion of the Fiscal Year will not be eligible for reimbursement, unless extended to cover any additional time period during which the Subrecipient remains in control of CDBG-CV funds or other CDBG-CV assets including Program Income. 3.4 Third Party Contracts. A. All agreements which Subrecipient proposes to execute and enter into with a third party for the subcontracting of any of the services and tasks set forth under the Scope of Services must first be approved by the City in writing and must comply with all Program Regulations and other requirements set forth under this Agreement. B. All Third Party Contracts that Subrecipient executed must include the following minimum requirements: (i) a requirement that the subcontractor comply with all Program Regulations and all other requirements that would otherwise apply to Subrecipient if Subrecipient were to perform the service on its own; (ii) that the subcontractor comply with the Program Regulations; (iii) that the subcontractor shall cooperate with City and make available to City all information, documents, and records reasonably requested by City in connection with the activities under this Agreement; (iv) inclusion of a provision naming City as an intended third party beneficiary with the right but not the obligation to enforce the rights of Subrecipient under the Third Party Contract for the benefit of City; (v) that City be copied on all notices between the Subrecipient and the subcontractor; (vi) that the Third Party Contract shall terminate if this Agreement is terminated or expires; (vii) that the subcontractor is not a third party beneficiary to this Agreement and shall have no expectation of funding from City; and (viii) such other provisions as the City deems necessary or desirable to safeguard the use of CDBG-CV Funds. C. If Subrecipient believes that any of the Program Regulations are not applicable to a Third Party Contract, it is Subrecipient’s responsibility to provide to City evidence that the requirement is not applicable; however, it is ultimately Subrecipient’s responsibility to include all legal requirements in its Third Party Contracts and City shall have no liability for Subrecipient’s failure to comply with this obligation. In connection therewith, any statement made by City to Subrecipient as to the non-applicability of a particular legal requirement shall be provided as an accommodation to Subrecipient and as a statement of City’s opinion, but shall not be relied upon by Subrecipient or excuse Subrecipient from Subrecipient’s responsibility to include all applicable legal requirements in its Third Party Contracts or to comply with such requirements. Subrecipient acknowledges that City’s approval of a Third Party Contract shall in no way constitute an assumption by City of any responsibility whatsoever for the performance of any activity that is the subject of the Third Party Contract, or Subrecipient’s or the Other Contracting Party’s compliance with applicable laws, statutes, ordinances, codes, rules and regulations, or Subrecipient’s compliance with this Agreement. In connection therewith, City assumes no responsibility or liability for any act or omission of any Other Contracting Party and in no way guarantees any of the work to be done or For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 7 materials to be supplied or services to be performed. Subrecipient shall comply with all terms of Third Party Contracts. IV. GRANT ADMINISTRATION 4.1. Program Operation Standards. Subrecipient shall operate the Program, in conformity with all applicable laws, regulations, and rules of governmental agencies having jurisdiction, including without limitation, the Program Regulations and laws set forth in Section 5 below. 4.2 Program Income. Program Income includes all gross income received by Subrecipient which is directly generated from the use of CDBG-CV funds and as more particularly defined in 24 CFR §570.500(a). Program Income is governed by 24 CFR §570.504 and not by 2 CFR §200.307. Subrecipient must comply the Program Income requirements of 24 CFR §570.504(c). If Program Income is generated by activities carried out with CDBG-CV Funds, Subrecipient shall submit to City monthly reports on all such Program Income. The Program Income shall, at City’s election, either (a) be returned to City, or (b) retained by Subrecipient and utilized for Eligible Expenses or such other activities approved in writing by City, in which case all provisions of this Agreement shall apply to the activities funded by the Program Income or Subrecipient shall, if required by City, enter into a separate agreement governing the use of the Program Income. In the event City determines that Subrecipient may retain the Program Income for Eligible Expenses, the Program Income shall be expended by Subrecipient for Eligible Expenses before City is obligated to advance any other CDBG-CV Funds to Subrecipient. In accordance with 24 CFR §570.503(b)(7), upon the expiration or termination of this Agreement expires, any outstanding Program Income shall be returned to City. 4.3 Indirect Costs. If indirect costs are charged, Subrecipient shall comply with the indirect cost rate for the Federal award, including, if applicable, the de minimis rate charged per 2 CFR §200.414 (Indirect (F & A) costs). 4.4 Reversion of assets. In accordance with 24 CFR §570.503(b)(7), upon expiration or termination of this Agreement, Subrecipient shall transfer to the recipient any CDBG-CV Funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG-CV Funds. 4.5 Program Monitoring: A. Public Intake Form and Levels of Accomplishment. The Program’s levels of accomplishment shall be measured by paperwork turned in by Program Participants and written daily attendance records kept by Subrecipient support staff. Subrecipient shall ensure all Program Participants complete a current CDBG-CV Public Intake Form, which must include information related to the Program Participant’s total household income, ethnicity and residency, and any other required documentation. B. Performance Monitoring. City shall monitor Subrecipient’s compliance with For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 8 the goals and performance standards stated above. Substandard performance as determined by the City will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the City, contract suspension or termination procedures will be initiated. 4.6 Records and Internal Controls. In order to enable the City and HUD to determine whether Program Regulations are being met, Subrecipient shall implement written policies and procedures to ensure the recordkeeping and reporting requirements of 24 CFR §570.506 and other Program Regulations are met, including 2 CFR §200.303. A. Records to be Maintained. Subrecipient shall maintain records relating to the Program services as required by 24 CFR §570.506 and any other applicable Program Regulations. Such records shall include, but are not limited to, the following: 1. Records providing a full description of each activity undertaken; 2. Records demonstrating that each activity undertaken meets one of the CDBG-CV Program criteria set forth in 24 CFR §570.208; 3. Records required to determine the eligibility of activities as provided in 24 CFR §570.506(c)(1); 4. Records demonstrating compliance with the citizen participation requirements prescribed in 24 CFR Part 91, subpart B, for entitlement recipients, or in 24 CFR part 91, subpart C, for HUD-administered small cities recipients, as applicable; 5. Records documenting compliance with the fair housing and equal opportunity components of the CDBG-CV Program; 6. Financial records as required by 24 CFR §570.502 and 24 CFR Part 200; and 7. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. B. Client Data. Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to City monitors or their designees for review upon request. 4.6 Inspections/Access to Records A. Access. Pursuant to 2 CFR §200.336, the City and HUD and/or their representatives shall have full and free access to, and the right to examine, inspect, and audit, all of Subrecipient’s books and records pertaining to this Agreement at all times during normal business hours. This right shall also include timely and reasonable access to Subrecipient’s personnel for the purpose of interviewing and discussion related to said documents. This same right to review and access will be imposed upon any third party or subcontractor and it is the Subrecipient’s responsibility to ensure that any contract entered into with third parties contain all necessary clauses and language required by the City and/or HUD to ensure compliance with this Agreement and with all federal, state, and local laws and regulations. Notwithstanding 2 CFR 200.337, recipients shall provide citizens with For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 9 reasonable access to records regarding the past use of CDBG-CV funds, consistent with applicable State and local laws regarding privacy and obligations of confidentiality. B. Location of Records. The books and records required to be maintained by Subrecipient shall be kept at the business offices of Subrecipient. C. Retention. In accordance with 2 CFR §200.333 and 24 CFR §§570.502-503, Subrecipient is required to maintain all records, books, papers and other documents related to this Agreement. All Program records shall be maintained for a period of five (5) years following the final expenditure report or, from the date of the submission of the monthly or annual financial, or for such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit or other inquiry involving this Agreement. 4.7 Reports and Audits. A. Reports. Subrecipient shall, at such times and in such forms as required by City, prepare and submit to the Contract Officer, such reports concerning the Program Services, and other activities under this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement in compliance with Program Regulations, and as City may reasonably require from time to time. Subrecipient shall prepare all reports in conformance with the Program Regulations. Subrecipient shall keep confidential all records containing personally identifying information regarding Program Participants. B. Audits. Subrecipient shall perform all audits of its books and records that may be required by the Program Regulations or as otherwise required by City or HUD, and a copy of such audits shall be forwarded to the City within fifteen (15) days after the stated date for completion. Subrecipient shall be subject to all audit and review requirements imposed on City in connection with the use of CDBG-CV Funds and shall, at its sole cost and expense, ensure such audits and reviews are timely performed. In accordance with 2 CFR §200.510, Subrecipient shall prepare financial statements and schedule of expenditures of federal awards. Subrecipient’s annual financial statement shall be prepared by an actively licensed public accountant and provided to the City within ninety (90) days of the end of its operating year. 4.8 Closeout. Subrecipient shall provide City with any information or assistance necessary in order to comply with the closeout requirements in 2 CFR §200.343 as well as the post-closeout requirements in 2 CFR §200.344.2. V. APPLICABLE LAWS 5.1 General. A. Subrecipient shall perform all activities funded by this Agreement in accordance with the Program Regulations, including all federal laws and regulations described in 24 CFR Part 570, subpart K, except: For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 10 (i) Subrecipient shall not assume City’s environmental responsibilities described at 24 CFR §570.604; and (ii) Subrecipient shall not assume Cities responsibility for initiating the review process under Executive Order 12372, Intergovernmental Review of Federal Programs, and HUD implementing regulations in 24 CFR Part 52. B. Subrecipient shall also comply with all other applicable federal, state and local laws. The term “federal, state and local laws” as used in this Agreement shall mean all applicable statutes, rules, regulations, executive orders, directives or other laws, including all laws as presently in effect and as may be amended or otherwise altered during the Funding Period, as well as all such laws which may be enacted or otherwise become effective during the Funding Period. The term “federal, state and local laws” shall include, but it is not limited to those laws set forth in Sections 5.2 through 5.10 below. 5.2 Suspension and Debarment. Subrecipient shall comply with the debarment and suspension requirements set forth in 24 CFR §5 and 24 CFR §24. Subrecipient represents that neither it nor any of its principals has been debarred, suspended or determined ineligible to participate in federal assistance awards or contracts as defined in regulations implementing Office of Management and Budget Guidelines on Government wide Debarment and Suspension (Non-procurement) in Executive Order 12549. Subrecipient further agrees that it will notify City immediately if it or any of its principals is placed on the list of parties excluded from federal procurement or non-procurement programs available at www.sam.gov.; 5.3 Federal Funding Accountability and Transparency Act of 2006. Subrecipient agrees to provide City with all information requested by City to enable City to comply with the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006 (P.L. 109-282, as amended by section 6202 of P.L. 110-252). 5.4 Regulations on Nondiscrimination and Equal Opportunity. In accordance with 24 CFR §§570.601-602, 24 CFR §570.607, 24 CFR §570.614, and 24 CFR §570.506, Subrecipient shall comply with and maintain records showing compliance with all applicable fair housing and civil rights requirements in 24 CFR §5.105(a). The Subrecipient shall not discriminate against any employee or person served on account of race, color, sex, age, religion, ancestry, national origin, handicap or marital status in the performance of this Agreement. Specifically, Subrecipient shall comply with all of the following: (a) The Fair Housing Act (42 U.S.C. §3601- 3619) and implementing regulations at 24 CFR Part 100 et seq.; (b) Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) and implementing regulations at 24 CFR Part 107 (Equal Opportunity in Housing Programs); (c) Title VI of the Civil Rights of 1964 (42 U.S.C. §§2000d - 2000d-4) and implementing regulations at 24 CFR Part 1 (Nondiscrimination in Federally Assisted Programs; For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 11 (d) The Age Discrimination Act of 1975 (42 U.S.C. §§6101 - 6107) and implementing regulations at 24 CFR Part 146; (e) Title II of the Americans with Disabilities Act (42 U.S.C. §12101), et. seq. and 28 CFR Parts 35 and 36; (f) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §794) and implementing regulations at 24 CFR Part 8 for purposes of the CDBG-CV program, the term “dwelling units” in 24 CFR Part 8 shall include sleeping accommodations; (g) Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086 and 12107, and implementing regulations at 41 CFR Part 60 (Equal Employment Opportunity Programs); (h) Executive Order 11625, as amended by Executive Order 12007 (Minority Business Enterprises); (i) Executive Order 12432 (Minority Business Enterprise Development); and (j) Executive Order 12138, as amended by Executive Order 12608 (Women's Business Enterprise); (k) Executive Order 12138, as amended by Executive Order 12608 (Women's Business Enterprise); and (l) Executive Order 13279 (Equal Protection of the Laws for Faith–Based and Community Organizations). 5.5 Housing and Urban Development Act. Subrecipient shall comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR part 135. 5.6 Religious Activities. Subrecipient shall not use CDBG-CV Funds for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization. 5.7 Drug-Free Workplace. Subrecipient shall comply with the Drug Free Workplace Act of 1988, 41 U.S.C. §701, et. seq.) as well as HUDs implementing regulations at 24 CFR Part 2429, which require all programs and activities receiving federal assistance to maintain a drug-free workplace. 5.8 Hatch Act. Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 5.9 Lead Based Paint: As provided by 24 CFR §570.608 Lead-Based Paint Poisoning For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 12 Prevention Act (42 U.S.C. 4821-4846), as amended by the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856) and implementing regulations at 24 CFR Part 35, subparts A, B, H, J, K, M, and R shall apply to all shelters assisted under the CDBG-CV program and all housing occupied by program participants. 5.10 Conflicts of Interest. A. In the procurement of supplies, equipment, construction, and services, Subrecipient shall comply with the conflict of interest rules in 2 CFR Part 200. Subrecipient agrees and warrants that it will establish and adopt written standards of conduct governing conflicts of interest and the performance of its officers, employees, or agents engaged in the selection, award and administration of contracts supported by these federal funds. B. At a minimum these safeguards must ensure that no employee, officer or agent participates 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 the employee, officer, 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 in 2 CFR §200.318, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of Subrecipient cannot solicit or accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. These standards of conduct must also provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of Subrecipient. If Subrecipient has a parent, affiliate, or subsidiary organization, Subrecipient must also maintain written standards of conduct covering organizational conflicts of interest. C. In all cases not governed by 2 CFR Part 200, Subrecipient shall comply with the conflict of interest provisions contained in 24 CFR §570.611. Subrecipient shall also keep records supporting requests for waivers of conflicts. D. Subrecipient will disclose in writing any potential conflict of interest to the City. By executing this Agreement, Subrecipient covenants and certifies that none of its employees, officers, or agents described in these regulations have any interest in this Agreement or any other interest which would conflict in any manner with this Agreement or the performance of this Agreement. 5.11 Confidentiality: Subrecipient shall develop, implement, and maintain written procedures to ensure the confidentiality of records pertaining to any individual(s) assisted with CDBG-CV funds under this Agreement, and that the address or location of any assisted housing will not be made public. VI. NONCOMPLIANCE AND TERMINATION 6.1 Remedies for Non-compliance. If Subrecipient fails to comply with Federal statutes, regulations, or the terms and conditions of this Agreement, the City may impose additional conditions as described in 2 CFR §200.207. As provided under 2 CFR §200.338 If the City For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 13 determines that noncompliance cannot be remedied by imposing additional conditions, the City may take one or more of the following actions, including but not limited to: (a) Temporarily withhold cash payment pending correction of the deficiency or more severe enforcement action by the City; (b) Disallow both use of funds and any applicable matching credit for all or part of the cost of the activity or action not in compliance; (c) Wholly or partly suspend or terminate the award; (d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and applicable regulations or recommend such proceedings be initiated by HUD; (e) Withhold further federal awards for the project or program; and (f) Take other remedies that may be legally available including, but not limited to litigation, declaratory judgment, specific performance, damages, injunctions, enforcement of the Declaration of Restrictive Covenant, termination of the Agreement, or any other available remedies. 6.2 Defaults: In the event either Party fails to perform, or adhere to, any applicable duty, obligation or standard of conduct set forth under this Agreement (or fails to perform or adhere to any such duty, obligation or standard of conduct at the time, place or manner set forth in this Agreement), an event of default (hereinafter, “Event of Default”) shall have occurred. Except as otherwise provided in this Agreement, if an Event of Default remains uncured by the defaulting Party for a period in excess of thirty (30) calendar days from the date upon which the non-defaulting Party issues notice of default (hereinafter, a “Default Notice”) to the defaulting Party, then the default shall constitute a breach of this Agreement. If a Party is in breach of this Agreement, the non-breaching Party may pursue any and all remedies available to it at law or in equity. If Subrecipient is in breach (whether or not such breach is caused by Subrecipient or Subrecipient’s officials, officers, employees, agents, contractors, subcontractors or subconsultants, City may, in its sole and absolute discretion (and without obligation), terminate this Agreement upon the issuance of five (5) calendar days prior written notice of termination on the grounds of breach (a “Breach-Termination Notice”). City’s ability to terminate this Agreement as provided in this Section shall be in addition to any other remedies City may have at law or in equity in the event of breach and shall not be in lieu of such other remedies. 6.3 Suspension and Termination: Subrecipient and City shall comply with the noncompliance and termination provisions in 2 CFR Part 200. In addition to the other remedies for noncompliance, this Agreement may be terminated as follows: (i) Lack of Funding. If, for any reason, the CDBG-CV Funds required by City to fund the Eligible Expenses are not received by City or are withdrawn from City, the City may unilaterally terminate or modify the terms of this Agreement to reflect the loss of funding, which modification may For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 14 include without limitation a reduction in the CDBG-CV Funding Cap and/or further restrictions on the range of costs or expenses that qualify as Eligible Expenses. (ii) By City. As provided by 2 CFR §§200.338 and 339, the City may suspend or terminate this Agreement in whole or in part if Subrecipient fails to comply with any terms and conditions of this Agreement or upon the occurrence of any Event of Default or any other breach of this Agreement. In accordance with 2 CFR §200.339, the City may also terminate this Agreement with the consent of Subrecipient, in which case, Subrecipient and City must agree upon the termination conditions, including the effective date, and in the case of partial termination, the portion to be terminated. (iii) By Subrecipient. Under 2 CFR §200.339(a)(4), this Agreement may also be terminated by Subrecipient by providing City with written notification setting forth the reason for such termination, the effective date and in the case of partial termination, the portion to be terminated. In the case of partial termination, if City determines that the reduced or modified portion of the award will not accomplish the purposes for which the award was made, the City may terminate the award and this Agreement in its entirety. (iv) Termination for Convenience. City may, by written notice to Subrecipient, terminate this Agreement at any time for convenience and without cause or penalty by giving written notice to Subrecipient of such termination, and specifying the effective date thereof, at least five (5) calendar days before the effective date of such termination. Upon such termination for convenience, Subrecipient shall be compensated only for those Eligible Expenses incurred prior to the effective date of City’s termination. In no event shall Subrecipient be entitled to funding for any Eligible Expenses incurred after the effective date of termination. If this award is terminated or partially terminated, the Subrecipient remains responsible for compliance with the closeout requirements in 2 CFR §200.343 and post-closeout requirements set forth in 2 CFR §200.344. 6.4 Scope of Waivers. No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 6.5 Rights and Remedies are Cumulative. All remedies provided for herein are cumulative and shall be in addition to any and all other rights and remedies provided by law. The exercise by a party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 15 any other default by the other Party. VII. GENERAL PROVISIONS 7.1 Notices. All notices required to be delivered under this Agreement to City or Subrecipient shall be delivered to the respective parties at the address set forth next to the party’s signature to this Agreement or to such other address as the parties may hereafter designate by written notice to the other party. 7.2 Contract Administration. The Contract Officer shall be the person designated by City to administer this Agreement on behalf of City, and the Subrecipient Representative shall be the person designated by Subrecipient to administer this Agreement on behalf of Subrecipient. 7.3 Entire Agreement, Waivers and Amendments. This Agreement including its exhibits integrate all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged, and all amendments and modifications hereto must be in writing and signed by the appropriate authorities of City and Subrecipient. 7.4 Enforced Delay; Extension of Times of Performance. Time is of the essence in the performance of each of the parties’ respective obligations set forth in this Agreement. No party shall be deemed to be in default and times for performance hereunder shall be extended where delays are due to war; insurrection; any form of labor dispute; lockouts; riots: floods; earthquakes; fires; acts of God or of third parties; third party litigation; acts of a public enemy; referenda; acts of or failures to act by governmental authorities (except that the failure of City to act as required hereunder shall not excuse its performance); moratoria; epidemics; quarantine restrictions; freight embargoes; unusually severe weather; inability to secure necessary labor, materials, or tools; or other similar causes beyond the control and without the fault of the party claiming an extension of time to perform; provided, however, that the party claiming the existence of a force majeure delay and an extension of its obligation to perform shall notify the other party of the nature of the matter causing the delay within thirty (30) days from the occurrence thereof; and, provided further, that the extension of time shall be only for the period of the force majeure delay. 7.5 Prohibition Against Assignment and Transfer. The qualifications and identity of Subrecipient are of particular concern to City. It is because of those qualifications and identity that City has entered into this Agreement with Subrecipient. Accordingly, Subrecipient shall not, whether voluntarily, involuntarily, or by operation of law, undergo any change in ownership or assign, transfer or convey all or any part of this Agreement or any rights hereunder without City’s prior written approval. In considering whether it will grant approval, City shall consider factors such as (a) whether the completion of the Program would be jeopardized; (b) the financial credit, strength, and capability of the proposed transferee to perform Subrecipient’s obligations hereunder, including the operation of the Program on the Property; and (c) the proposed transferee’s experience and expertise in the For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 16 planning, financing, development, ownership, and operation of similar projects and programs. In the absence of specific written agreement by City, no transfer by Subrecipient of all or any portion of its interest in this Agreement shall be deemed to relieve it or any successor party from the obligation to perform the duties and obligations set forth herein. No assignment shall be approved if Subrecipient is in default (or a default notice has been issued) of this Agreement. 7.6 Authority to Execute. The person(s) executing this Agreement on behalf of the parties hereto warrant that (a) such party is duly organized and existing, (b) they are duly authorized to execute and deliver this Agreement on behalf of said party, and (c) by so executing this Agreement, such party is formally bound to the provisions of this Agreement. 7.7 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 7.8 Exhibits. This Agreement incorporates by reference the following six (6) Exhibits attached hereto: Exhibit A Scope of Services Exhibit B Program Budget Exhibit C CDBG-CV Program Overview Exhibit D Subrecipient Information Exhibit E Sample Invoice Exhibit F Insurance Requirements [SIGNATURES ON NEXT PAGE] For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 17 IN WITNESS WHEREOF, City and Subrecipient have entered into this Agreement to be effective as of the date set forth above. Address: City of Baldwin Park Community Development Department Housing Division 14403 E. Pacific Avenue Baldwin Park, CA 91706 Attn: Housing Manager “CITY” City of Baldwin Park, a California municipal corporation By:___________________________ Enrique C. Zaldivar, City Manager Date: _________________________ Address: Neighborhood Legal Services of Los Angeles County 1104 E. Chevy Chase Drive Glendale, CA 91205 “SUBRECIPIENT” Neighborhood Legal Services of Los Angeles County (NLSLA) By:___________________________ Yvonne Mariajimenez Date: _________________________ APPROVED AS TO FORM: City of Baldwin Park City Attorney ________________________________ City Attorney For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 18 EXHIBIT “A” SCOPE OF SERVICES Under this proposal, NLSLA would assist low-income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to our housing teams for higher level representation at their hearings, if appropriate and within the scope of our priorities. The City of Baldwin Park may in some cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations. For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 19 EXHIBIT “B” PROGRAM BUDGET CDBG Funding Uses/Expenses CDBG Total Total Amount Personnel Services - Salaries $ 50,000.00 Total $ 50,000.00 For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 20 EXHIBIT “C” CDBG-CV PROGRAM OVERVIEW The goal of the Neighborhood Legal Services to provide legal services by providing services to low income residents in Baldwin Park. Under this proposal, NLSLA will assist low-income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants will receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to NLSLA housing teams for higher level representation at the hearings, if appropriate and within the scope of our priorities. The City of Baldwin Park may in some cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations. Staff salaries would include: Intake Screener – Salary. Other legal staff For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 21 EXHIBIT “D” SUBAWARD DATA (i) Subrecipient Name Legal Services Program (ii) Subrecipient Unique Entity Identifier: 95-2408642 (iii) Federal Award Identification Number (FAIN): B-20-MW-06-0554 (iv) Federal Award Date of Award to the Recipient by the Federal Agency: 06/18/2020 (v) Subaward Period of Performance Start Date: 10/07/2021 Subaward Period of Performance End Date: 10/31/2022 (vi) Amount of Federal Funds Obligated by this Action by City to the Subrecipient: $50,000 (vii) Total Amount of Federal Funds Obligated to the Subrecipient by the City Including the Current Obligation: $50,000 (viii) Total Amount of the Federal Award Committed to the Subrecipient by the City: $50,000 (ix) Federal Award Project Description: Other Public Services (x) Name of Federal Awarding Agency: HUD / CDBG-CV Name of Pass-Through Entity: City of Baldwin Park Contact Information f or Federal Awarding Official: Rufus Washington, Director / CPD Contact Information for City’s Authorizing Official: Enrique Z. Zaldivar, City Manager Contact Information for City’s Project Director: Carol Averell, Housing Manager (xi) CFDA Number and Name: 14.218 - Community Development Block Grant/Entitlement Grants (xii) Identification of Whether Subaward is R&D: N/A (xiii) Indirect Cost Rate for the Federal Award: N/A Subrecipient Indirect Costs: N/A For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 22 EXHIBIT “E” Sample Program Invoice Please view attached invoice template, this attachment will also be available in Excel format upon contract execution. For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 23 For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 24 EXHIBIT “F” Insurance Requirements The policy or policies of insurance maintained by Subrecipient shall provide the following limits and coverages: POLICY • Additional Insured Endorsement o Modifying the policy and naming “The City and its Officers, Employees and Agents” as additionally insured. • Worker's Compensation Insurance: o Statutory • Comprehensive Automobile Liability Insurance (including hired and non-owned automobiles) o $1,000,000 Bodily Injury each person o $1,000,000 Bodily Injury each occurrence o $1,000,000 Property Damage each occurrence • Comprehensive General Liability Insurance (including occurrence products and completed operations, broad form occurrence contractual, and personal injury) o $1,000,000 Bodily Injury each person o $1,000,000 Bodily Injury each occurrence o $1,000,000 Bodily Injury Aggregate o $1,000,000 Property Damage each occurrence Any deductibles of self-insurance retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Subrecipient shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. For Internal Reference Only: Contract No. BP-CDBG-CV-PSA 20.105 25 Insurance shall be in full force and effect commencing on the first day of the term of this Agreement. Each insurance policy required by this Agreement shall contain the following clauses: • "This insurance shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days written notice has been given to the City by Certified Mail, Return Requested." • "All rights of subrogation are hereby waived against the City and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their employment or appointment." • "The City, its officers, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Subrecipient, products and completed operations of the Subrecipient; premises owned, occupied or used by the Subrecipient; or automobiles owned, leased, hired or borrowed by the Subrecipient. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers." • "It is agreed that any insurance maintained by the City will apply in excess of, and no contribute to, insurance provided by the Subrecipient." • "Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees agents or volunteers." • "Insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability." All insurance coverage required under this Agreement shall be provided through carriers with a Best's Key Rating guide rating of A-:VII or higher that are admitted to do business in the State of California. The certificate(s) of insurance evidencing such coverage shall be completed and executed by an authorized representative of the Company providing insurance, and shall be filed with and approved by the City. Subrecipient shall include all subcontractors as insured's under its policies, or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated above. ITEM NO. 16 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Benjamin Martinez, Community Development Director DATE: October 6, 2021 SUBJECT: Status Report - San Gabriel Valley Regional Housing Trust State Budget Earmark of $20 Million to Address the Affordable Housing Shortage and Homeless Crisis in the San Gabriel Valley SUMMARY This report seeks to update the City Council regarding the receipt of a State Budget Earmark of $20 million to the San Gabriel Valley Regional Housing Trust (SGVRHT) to address the affordable housing shortage and homeless crisis in the San Gabriel Valley. RECOMMENDATION Staff recommends that the City Council: 1. Receive and file the report, as it is for information only; and 2. Direct the Chief Executive Officer and the Director of Community Development to monitor when the funding opportunity will be made available and return to the City Council with a draft application to the SGVRHT for review, discussion, and approval. FISCAL IMPACT None at this time. BACKGROUND The San Gabriel Valley Regional Housing Trust (SGVRHT) received a State Budget Earmark of $20 million to address the affordable housing shortage and homeless crisis in the San Gabriel Valley. The State Earmark funds are anticipated to be received in October of 2021. One of the funding priorities by the SGVRHT for this funding is a Homeless Pilot Programs for which the SGVRHT Board allocated $4 million (please see attached Resolution No. 21-20) on September 8, 2021. The SGVRHT developed a bridge housing pilot program and is considering developing sites jointly with in the cities of Baldwin Park and Montebello. In their staff report on September 8th, they indicated that a portion of this funding allocation will be used to support the operations of these sites which include supportive services, site security, and client meals. SGVRHT staff also suggested in the report that they anticipate additional cities will want to participate in the program after the first two sites are completed and these funds could provide capital for the development of additional bridge housing sites. Upon Council approval, the City of Baldwin Park will submit an application for the Emergency Shelter site at the recently acquired property at 13167 Garvey Ave. SGVRHT has not released the application process yet for the $4 million in funding available for Homeless Pilot Programs, but it is anticipated to be released in the month of October 2021. LEGAL REVIEW None at this time. ALTERNATIVES None at this time. ATTACHMENTS 1. SGVRHT Resolution No. 21-20 RESOLUTION NO. 21-20 RESOLUTION OF THE SAN GABRIEL VALLEY REGIONAL HOUSING TRUST (SGVRHT) ADOPTING STATE EARMARK FUNDING PRIORITIES WHEREAS, the San Gabriel Valley Regional Housing Trust (SGVRHT) received a State Budget Earmark for $20,000,000 to address the affordable housing shortage and homeless crisis in the San Gabriel Valley; and WHEREAS, the State Earmark funding must be expended by June 2023 ; and WHEREAS, the SGVRHT is addressing the homeless crisis through its Bridge Housing Pilot Program; and WHEREAS, the SGVRHT is addressing the affordable housing shortage through project financing and designates the San Gabriel Valley Project Pipeline (Pipeline) as its first phase funding process; and WHEREAS, the SGVRHT adopted strategic priorities which included the development of a revolving loan fund and increased leveraging for the Local Housing Trust Fund Program. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Trust approve the following State Earmark Funding Priorities. 1.$8 million in Project Pipeline Capital, including $200,000 in administrative funding. Projects will be considered by the following criteria: i.Priority for LHTF recommended projects if LHTF award is not received (Alhambra- Mariposa, Pomona- East Holt) ii.Readiness to close financing and begin construction within next 12 months iii.Projects with City funding iv.Per unit funding maximum of $40,000 and overall funding request maximum of $2,500,000 2.$8 million revolving loan fund, including $200,000 in administrative funding 3.$4 million in Homeless Pilot Program funding, including $200,000 in administrative funding PASSED AND ADOPTED by the Board of Directors of the San Gabriel Valley Regional Housing Trust, in the County of Los Angeles, State of California, on the 8th day of September 2021. Resolution No. 21-20 Page 1 of 2 DocuSign Envelope ID: E4F43BCE-FC8C-4478-A2B9-97EC81DDFF8A San Gabriel Valley Regional Housing Trust Jed Leano, Chair Attest: I, Marisa Creter, Executive Director and Secretary of the Board of Directors of the San Gabriel Valley Regional Housing Trust, do hereby certify that Resolution 21-20 was adopted at a regular meeting of the Governing Board held on the 8th day of September 2021, by the following roll call vote: AYES: Andrade-Stadler, Averell, Boyer, Leano, Morales, Shevlin NOES: ABSTAIN: ABSENT: Cortez, DeFrank, Finlay Marisa Creter, Secretary Resolution No. 21-20 Page 2 of 2 DocuSign Envelope ID: E4F43BCE-FC8C-4478-A2B9-97EC81DDFF8A STAFF REPORT ITEM NO. ________17_________ TO: Honorable Mayor and Members of the City Council FROM: Ben Martinez, Director of Community Development PREPARED BY: Ron Garcia, City Planner DATE: October 6, 2021 SUBJECT: A Request to the City Council from the Planning Commission on an Amendment to the City of Baldwin Park Municipal Code Chapter 127 and Chapter 153 Related to Commercial Cannabis to Reduce the Distance Requirements from 50 feet to 20 Feet of a Cannabis Distribution Facility to a Dwelling Unit within a Residential Zone, and Increase the Maximum Size of a Cannabis Distribution Facility from 22,000 Square Feet to 40,000 Square Feet (Location: all Industrial Commercial (IC) and Industrial (I) Zoning Designations; Applicant: Tony Kim for Baldwin Park Distribution, LLC; Case Number: AZC 21-01) SUMMARY On September 8, 2021 the Planning Commission adopted Resolution PC 21-11 recommending that the City Council amend the City of Baldwin Park’s Municipal Code Chapter 127 and Chapter 153 related to Commercial Cannabis Use. The modifications would result in the reduction of the distance requirement from 50 feet to 20 feet for a cannabis distribution site, to a dwelling unit within a residential zone, and increase the maximum size of a cannabis distribution facility from 22,000 square feet to 40,000 square feet. In conjunction with the said request, the Planning Division is recommending the City Council amend Chapter 153 and Chapter 127 that include minor grammatical amendments to ensure consistency throughout the City’s commercial cannabis standards. RECOMMENDATION Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only, Ordinance 1460, entitled, “AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 127 OF TITLE XI OF THE BALDWIN PARK MUNICIPAL CODE”; and Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only, Ordinance 1461, entitled, “AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 153 OF THE BALDWIN PARK MUNICIPAL CODE REALTING TO COMMERCIAL CANNABIS ACTIVITY”. FISCAL IMPACT No fiscal Impact CEQA Pursuant to Section 15061 (b)(3) of the California State CEQA Guidelines, the amendment to the City of Baldwin Park’s Zoning Code is exempt from CEQA, as it does not have the potential for causing a significant effect on the environment. A Notice of Public Hearing was posted in the Baldwin Park Press on Thursday, September 23rd, City Hall, and the City’s website. Public Hearing Notices were also mailed to the owners and occupants within a 300-foot radius of the subject property. BACKGROUND On August 9, 2017, the Planning Commission heard AZC- 183 and approved resolution PC 17-13, recommending the City Council approve and adopt an amendment to the City’s Zoning Code allowing Commercial Cannabis Activity within the IC, Industrial Commercial and I, Industrial Zones and deleted Sections 153.120.330.C and 153.120.330.D, which were in conflict with the proposal to allow Adult and Medical Cannabis Cultivation, Manufacturing and Distribution. On August 16, 2017, the City Council approved a Zoning Text Amendment (Ordinance 1401) and approved Ordinance 1400 adding Chapter 127 of Title IX (Business Regulations), adding Medical and Adult use of Cannabis. On December 13, 2017, the City Council amended Chapter 127, approving Ordinance 1403 requiring a 600-foot distance criteria from Commercial Cannabis Activity for schools, day-care centers, parks or youth centers and increased the number of cannabis permits allowed from fifteen (15) to twenty (20). On March 21, 2018, the City Council approved Ordinance 1408 amending Chapter 127 to increase the number of Adult and Medical Cannabis permits allowed up to twenty-five (25). The second reading of the ordinance was held on April 4, 2018 approving Ordinance 1408. On November 11, 2019, the City Council approved Ordinance 1442 and 1443 amending Chapter 127 and 153 to reduce the distance requirement from a cannabis manufacturing site from 50 feet to 25 feet to a dwelling unit within a residential zone for a manufacturing site that exclusively manufactures edible cannabis products and incorporate Chapter 127 into Chapter 153 of the City’s Municipal Code for clarity and consistency. The second reading of the ordinances was held on November 20, 2019. DISCUSSION The applicant Baldwin Park Distribution, LLC, is owned and operated by Stachs LLC, a wholly owned subsidiary of cannabis delivery platform Eaze. According to the applicant they are experienced operators, operating cannabis licenses throughout the State of California. The site is proposed to exclusively operate a commercial cannabis distribution facility. The property is located at 14030 Live Oak Avenue and is within the Industrial Commercial (I-C) Zone. The total lot size of the property consists of approximately 113,387 square feet and building size of 36,174 square feet. The applicant is requesting a reduction in the distance between a cannabis distribution site and a residential dwelling unit (from 50 feet to 20 feet), and an increase the maximum building size for cannabis distribution (from 22, 000 to 40,000). The facility is approximately within 27 feet and 47 feet of a residential dwelling unit on a few of the adjacent residentially zoned properties; therefore, in order to allow the applicant to apply for a Cannabis permit, the City’s Municipal Code must be amended to allow for a reduced distance requirement to residences. California Business and Professions Code Section 26054 sets distance and sensitive use restrictions for a premise licensed for commercial cannabis activity. Specifically, commercial cannabis licensed premises are not to be within a 600-foot radius from a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, unless a licensing authority or local jurisdiction specifies a different radius… Distance requirements from residential zones or uses are not set in the Business and Professions Code; therefore, it is commonly addressed within ordinances adopted by local jurisdictions regulating commercial cannabis activity. Baldwin Park elected to include distance requirements from residential zones to provide a buffer to residential uses and assure that commercial cannabis licensees conduct their businesses safely. It is also common for local jurisdictions to set varying distances or exceptions to distances depending on impacts to the surrounding community from the use. Staff surveyed 16 cities throughout Southern California related to distance requirements for cannabis distribution uses to residential properties. Nine (9) cities including Bellflower, Commerce, Cudahy, Culver City, El Monte, Huntington Park, Lancaster, Long Beach and City of Los Angeles have a zero setback. The remaining cities Lynwood, Malibu, Maywood, Monrovia, Pasadena, and West Hollywood do not allow cannabis distribution. Furthermore, the applicant also indicated that in many cities and unincorporated areas within California have adopted cannabis regulations and ordinances that do not have distance requirements for commercial cannabis distribution facilities including Williams, Arcata, Goleta, San Leandro, Costa Mesa, unincorporated Alameda County, Imperial County, and LA County (Attachment, #4). The applicant is also requesting to increase the square footage allowed, from 22,000 square feet to 40,000 square feet, for cannabis distribution only. The facility is approximately 36,174 square feet; therefore, in order to allow the applicant to apply for a Cannabis permit, the City’s Municipal Code must be amended to allow for an increased size for a distribution facility only. The California Business and Professions Code also does not set size limitations for commercial cannabis distributions facilities and is addressed within adopted cannabis regulations by local jurisdictions. In this case, the City opted to include a maximum size requirement of 22,000 square feet for consistency with the other allowed commercial cannabis activities of manufacturing and cultivation, which square footage is regulated by the State as to not exceed 22,000 square feet. However, the State does not regulate the square footage of distribution sites. Therefore, the applicant is requesting an amendment to allow for an increase in size of a commercial cannabis distribution facility. The applicant held a community meeting at the proposed location on April 29, 2021 to inform the surrounding neighbors of their proposal. The applicant also completed door to door outreach on May 5, 2021 to all owners and occupants within 300 feet of the project site. The community meeting notice and community flyer are included for your review as Attachment No. 5. If the City Council approves the proposed amendment; the modification will not affect the zoning or general plan designation of the subject property. Further, the subject property would remain bounded to the development standards contained in Section 153 (Zoning) of the City’s Municipal Code. PLANNING COMMISSION ACTION On September 8, 2021 the Planning Commission adopted Resolution 21-11 recommending approval to the City Council to amend the City’s Municipal Code Chapter 127 and Chapter 153 related to commercial cannabis use. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Ordinance 1460 2. Ordinance 1461 3. Planning Commission Resolution 21-11 4. Application Request and Justification Statement, Dated May 5, 2021 5. Community Meeting Notice 11 Ordinance 1460 - Page 1 of 25 ORDINANCE NO. 1460 AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 127 OF TITLE XI OF THE BALDWIN PARK MUNICIPAL CODE WHEREAS, Title XI Chapter 127 of the City of Baldwin Park Municipal Code (“BPMC”) establishes rules and regulations for Commercial Cannabis Activity; and WHEREAS, California Government Code Section 5022.7 permits the amendment of municipal codes as often as deemed necessary by the legislative body, and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), Regulations, Section 15061(a)(3), the City Council of the City of Baldwin Park (“CITY”) has determined, with certainty, that the proposed action (“Project”) has no possibility that it will have a significant effect on the environment; and WHEREAS, the CITY has determined that the Project is exempt from CEQA; and WHEREAS, on September 8, 2021, after conducting a properly noticed public hearing, the Planning Commission adopted Resolution No. PC 21-11, recommending that the CITY amend Chapter 127 of the BPMC as it pertains to commercial cannabis activity; and WHEREAS, the CITY wishes to amend the BPMC to decrease the distance between commercial cannabis activity and residential use from fifty (50) feet to twenty (20) feet, for Distribution only, and to increase the square footage allowed, from 22,000 square feet to 40,000 square feet, for Distribution only. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Except as expressly modified pursuant to this Ordinance, all other provisions of Title XI Chapter 127 shall remain unmodified and in full force and effect. All ordinances in conflict with the provisions of this Ordinance are superseded to the extent of such conflict. CHAPTER 127. Medical and Adult Use Commercial Cannabis 127.01: Purpose A. Regulation. The purpose of this article is to regulate all commercial cannabis activity in the City of Baldwin ParkCITY, as defined in Section 26000 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 CityCITY, and to promote the health, safety, morals, and general welfare of residents and businesses within the cityCITY. 11 Ordinance 1460 - Page 2 of 25 B. Specific Authority. This article is further adopted and established pursuant to the specific authorit y granted to the City of Baldwin ParkCITY 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 CityCITY. 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 recreational 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. "CityCITY" means the City of Baldwin Park, California. F. “Chief Executive Officer” shall mean the Chief Executive Officer of the CityCITY or a duly authorized designee. G. “Code” means the Baldwin Park Municipal Code or the BPMC. H. ''Commercial cannabis activityCannabis Activity" has the same meaning as that term is defined by Section 26001(k) of the California Business and Professions Code, including the exclusion in Section 19319 of the California Business and Professions Code. I. ''Cultivation siteSite" has the same meaning as that term is defined by Section 26001(m) of the California Business and Professions Code. J. “Day-careCare” 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 carechildcare centers. K. “Development Agreement” means a development agreement between the CITY and any Person(s) having legal or equitable interest in real property for the development of the property as provided in this Chapter, and pursuant to California Government Code Section 65864, et seq. 11 Ordinance 1460 - Page 3 of 25 K.L. “Distribution” has the same meaning as that term is defined by Section 26001(r) of the California Business and Professions Code. L.M. “Dwelling Unit” means any building or portion thereof designed for living and sleeping purposes that contains independent cooking and sanitation facilities. M.N. "Enclosed locked structureLocked 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 code, city and state fire code, and all other applicable laws. N.O. "Good causeCause" 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: a.1. The applicantApplicant has not obtained approval by the city councilCITY of a development agreement setting forth the general terms for the operation of a business under this chapter or a licenseeLicensee breaches the terms of an applicable development agreement. b.2. The applicantApplicant or licenseeLicensee has violated any of the terms, conditions or provisions of this chapter, state law, any regulations promulgated under state law, any applicable local rules and regulations, or any special terms or conditions placed upon its state licenseState License, local license, or permit; c.3. The licensed premises has been or is operating in a manner that adversely affects the public health, safety, or welfare of the immediate neighborhood in which the establishment is located; d.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; e.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, or dutie s 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 11 Ordinance 1460 - Page 4 of 25 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 th e application is made, the City shall consider the factors as set forth in Section 26057(b)(4) of the California Business and Professions Code; f.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; g.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 h.8. An applicant or licensee is a licensed physician providing written recommendations to patients for cannabis. NP. "Good moral characterMoral 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 shall apply: l. 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: a. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controll ed 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. 11 Ordinance 1460 - Page 5 of 25 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. OQ. “Immature marijuana plantMarijuana Plant” means a marijuana 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. PR. "Licensed premisesPremises" 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 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. S. "Licensee" means a person who has been issued a commercial cannabis business permit under this chapterChapter for a Licensed Premises. R.T. "Limited access areaAccess Area" means a building, room, or other area that is part of the licensed premises, whose access is limited to certain authorized persons. SU. “Local License” means “License” means a license issued by the CITY under this Chapter. includes both an A-license and an M-license, as well as a testing laboratory license. V. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. TW. “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. UX. "Medicinal cannabisCannabis" has the same meaning as that term is defined by Section 26001(ai) of the California Business and Professions Code. VY. "Medical cannabis businessCannabis Business" means any person engaged in commercial cannabis activity. WZ. "Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code XAA. "Outdoors" means any location within the city that is not within an enclosed structure. 11 Ordinance 1460 - Page 6 of 25 Y BB. "Owner" means any of the following, pursuant to Section 26001(al) of the California Business and Professions Code: 1. A person or persons with an aggregate ownership interest of one (1) percent or more in the Entity 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.CC. "Person" or “Persons” has the same meaning as that term is defined by Section 26001(an) of the California Business and Professions Code. AA.DD. "Permit" means a “cannabis permit” that authorizes an entity to conduct commercial cannabis activity under this chapter. BB.EE. "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. FF. "State lawLaw(s)" 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. GG. "State licenseLicense" has the same meaning as that term is defined by Section 26001(yz) of the California Business and Professions Code. EEHH. "State licensing authorityLicensing 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 pursuant to Division 10 of the California Business and Professions Code or any state agency authorized to take disciplinary action against such local license. FFII. "Written documentationDocumentation" shall have the meaning set forth in Section l 1362.7(i) of the California Health and Safety Code. GGJJ. "Youth centerCenter" 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, 11 Ordinance 1460 - Page 7 of 25 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 controlsshall control. 127.04: Outdoor Cultivation It is hereby declared to be unlawful, a public nuisance, and a violation of this chapterChapter for any person owning, leasing, occupying, or having charge or possession of any parcel within any zoning district in the CityCITY to use or allow such premises to be used for the outdoor cultivation of cannabis plants. 127.05: Permitted Use A. Permit Required. Commercial Cannabis businessesActivity shall only be permitted to operate in the city followingCITY pursuant to the issuance of a Permit approved by the City Council or staff designee and a business license issued by the CityCITY in accordance with the criteria and procedures set forth in Chapter 127 of this codeCode and in compliance with the Baldwin Park Municipal CodeBPMC. No land-use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land-use authorization for a medicalcommercial cannabis businessactivity 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.BPMC. If there is a conflict between the requirements of another chapter and this chapter, the requirements of this Chapter 127 prevail. B. B. Strict Compliance. All personsPersons who are engaged in or who are attempting to engage in commercial cannabis activityCommercial Cannabis Activity in any form shall do so only in strict compliance with the terms, conditions, and restrictions of the MAUCRSA, the provisions of this Chapter 127, and all other applicable stateState and localCITY laws. C. Chief Executive Officer Authorized. The Chief Executive Officer is authorized to makeestablish policies and procedures consistent with the intent and spirit of this chapterChapter concerning the applications, the application process, the information required of applicantsApplicants, the application procedures and the administration and procedures to be used and followed in the application and process. 127.06: Development Agreement Required Prior to operating in the City andCITY, as a condition of issuance of a Permit, the applicantApplicant shall enter into a development agreementDevelopment Agreement with the CityCITY setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of this chapterChapter, including, but not limited to, public outreach 11 Ordinance 1460 - Page 8 of 25 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 CodeBPMC), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all persons in the CityCITY. 127.07: Permitted Zones-Distance and Other Conditions for Approval No more than 25 (twenty-five) Permits, each with a maximum of 22,000 square feet of permitted commercial cannabis useCommercial Cannabis Activity may be allowed, maintained, or operated in the CityCITY at any time. If there is a conflict between the requirements of this chapter and any other chapter, the requirements of this chapter shall prevailChapter shall prevail. Except that, for Distribution only, the maximum square feet shall be increased from 22,000 square feet to 40,000, square feet. A. Manufacturing SiteSites. 1. No manufacturingManufacturing shall be located within 600 feet of a school, day-care centerDay-Care, or youth center, or within 50 feet of a dwelling unit within a residential zone, pursuant to section E of this Code; except when exclusively manufacturing food and/or edible cannabis products and no other products, and no extraction of cannabis or cannabis products is taking place on the premises, the distance will be as specified in section 2 below. 2. Manufacturing of edible cannabis products and no other products, and where no on-site extraction occurs, shall not be located within 600 feet of a school, day-care centerDay-Care, or youth center, and shall not be located within 25 feet of a dwelling unit within a residential zone, pursuant to Section E of this Code. 3. Subject to the distance and other requirements of this chapter and the Code, a licensed premisesLicensed Premises may only be a property within the Industrial (I) or the Industrial-Commercial (I-C) zones, and following the application for and granting of a development agreement by the city councilCITY and a business permit in accordance with this chapterChapter. The proposed use shall comply with the minimum requirements set forth in this chapterChapter for distance separations between specific land uses. 4. All manufacturingManufacturing of cannabis shall occur in an enclosed structure. 5. Licensed sitesPremises for Manufacturing shall not exceed the 22,000 square feet maximum authorized pursuant to the controlling development agreement. 5. 6. From a public right-of-way, there should be no exterior evidence of the manufacturing of cannabis or manufactured cannabis products except for any signage authorized by this Code. 7. All licensed sitesLicensed Premises shall comply with the city'sCITY's 11 Ordinance 1460 - Page 9 of 25 lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed. 8. All windows on the licensed premisesLicensed Premises of the manufacturing site shall be appropriately secured and all cannabis securely stored. A licensed site, all 9. All operations conducted thereinon the Licensed Premises, and all equipment used therein must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes. 10. If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in CFCthe Los Angeles County Code, Title 32, Fire Code (“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. 11. 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 of 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. 12. Licensed sitesPremises are permitted under this chapterChapter 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. 13. 13. Suitability of the proposed. All licensed facilities shall have air scrubbers or a filtration system capable of eliminating odors from escaping the building. 14. The manufacture, distribution, and transportation of edible cannabis 11 Ordinance 1460 - Page 10 of 25 products shall be conducted in a manner that complies with all applicable food safety laws for the protection of humans consuming cannabis. 15. All products, storage facilities, utensils, equipment, and materials used for the manufacture of edible cannabis products shall be approved, used, managed, and handled in accordance towith the provisions of all State and County Health and Safety Laws regarding the preparation, distribution, labeling, and sale of food. 16. Any manufacturingManufacturing site that proposes to prepare, store, dispense, and distribute edible cannabis products shall comply with the relevant provisions of all State and County H ealth and Safety Laws regarding the preparation, distribution, labeling, and sale of food. 17. No food production shall be allowed in a facility where edible cannabis products are manufacturedManufactured to avoid the unintentional contamination of non - cannabis foods with cannabis. 18. All owners, employees, volunteers, or other individuals that participate in the production of edible cannabis products shall be State certified food handlers. The valid certificate number of each such owner, employee, volunteer, or other individual shall be on record at the permitted premises where said individual participates in the production of edible cannabis products. B. Cultivation Sites. No cultivation site shall be located within 600 feet of a school, day-care centerDay- Care, or youth center, or within fifty (50) feet of a dwelling unit within a residential zone, pursuant to section E of this Code. 1. Subject to the distance and other requirements of this chapter and the Code, a licensed premisesLicensed Premises may only be a property within the Industrial (I) or Industrial-Commercial (I-C) zones, and following the application for and granting of a development agreementDevelopment Agreement by the city councilCITY 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 specific land uses. 2. All cultivation of cannabisCultivation Sites shall occur in an enclosed locked structure. 2. Licensed sitesPremises shall not exceed the 22,000 square feet maximum authorized pursuant to the controlling development agreement. 3. From a public right-of-way, there should be no exterior evidence of the cultivation of medical and adult use cannabis except for any signage authorized by this chapter. 11 Ordinance 1460 - Page 11 of 25 4. All cultivation sitesCultivation Sites shall comply with the city'sCITY's lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed. 5. All windows on the licensed premises of a cultivation site shall be appropriately secured and all cannabis securely stored. 6. 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, cityCITY, and California building codes, fire codes, electrical codes, and all other applicable laws. 7. Cultivation sitesSites 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. 8. 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. 9. Suitability of the proposed property. All licensed facilities shall have air scrubbers or a filtration system capable of eliminating odors from escaping the building. C. Distribution of Cannabis. A cannabis distribution Licensee shall carry or move cannabis within the city in accordance with MAUCRSA and State regulationsSites. 1. A Distribution Licensee shall carry or move cannabis within the CITY in accordance with MAUCRSA and State regulations. 1.2. No distributionDistribution site shall be located within 600 feet of a school, day-careDay-Care center, or youth center or within 50twenty (20) feet of a dwelling unit within a residential zone, pursuant to section E of this Code. 2.3. Subject to the distance and other requirements of this chapter and the Code, a licensed premisesLicensed Premises may only be a property within the Industrial (I) or the Industrial-Commercial (I-C) zones, and following the applicationApplication for and granting of 11 Ordinance 1460 - Page 12 of 25 a development agreementDevelopment Agreement by the city councilCITY 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 specific land uses. 3.4. All distribution of cannabis activitiesDistribution, including but not limited to packaging, repackaging, loading, and unloading of products shall occur in an enclosed structure. 4.5. Licensed sitesPremises for Distribution shall not exceed the 2240,000 square feet maximum authorized; it may be less than 40,000 square feet as negotiated pursuant to the controlling development agreementDevelopment Agreement. 5.6. From a public right-of-way, there should be no exterior evidence of commercial cannabis activityCommercial Cannabis Activity except for any signage authorized by this Code. 6.7. All licensed sitesLicensed Premises shall comply with the city'sCITY's lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed. 7.8. All windows on the licensed premisesLicensed Premises of the distributingDistribution site shall be appropriately secured and all cannabis securely stored. 8.9. A licensed site, allAll operations conducted thereinon a Licensed Premises, and all equipment used therein, must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes. 9.10. Licensed sitesPremises are permitted under this chapterChapter under a Group F-1 (Factory Industrial Moderate-Hazard) Occupancy under the Fire Code. All new construction shall be fire sprinkled per the Fire CodeCFC. For distributingDistribution sites that will be sitedsituated 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. 10.11. Suitability of the proposed property. Staff reserves the right to require a licensed distributionDistribution facility to install air scrubbers or a filtration system capable of eliminating odors from escaping the building if the facility is found to emit cannabis odors. D. Nonconforming Use. Any cannabis businessCommercial Cannabis Activity or 11 Ordinance 1460 - Page 13 of 25 cannabis dispensary established or operating in the cityCITY 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 businessCommercial Cannabis Activity operating unlawfully is eligible for a cannabis business permit.Permit. Further, any such unlawfully established cannabis businessCommercial Cannabis Activity shall constitute a public nuisance subject to abatement by the cityCITY, 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 centersDay-Care, 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 businessCommercial Cannabis Activity is to be located without regard to intervening structures. 2. For determining distance to residential zones, the distance shall be measured in a straight line from the subject building to the closest dwelling unit on 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 theconsider safety of the public, including, but not limited to, the following factors: 1. Suitability of the proposed property; 2. Suitability of the 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 9. Labor relations. 127.08: No Transfer or Change in Ownership or Location . An owner of a cannabis businessOwner who obtains a permitPermit under this chapter may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of his or her ownership interest in the commercial medical and adult cannabis businessCommercial Cannabis Activity covered by any permitPermit issued under this chapterChapter without a written request deemed appropriate by Chief Executive Office of the CityCITY, or his/her designees, and a City Council approved, fullfully executed, and effective development agreementDevelopment Agreement. The licensed premisesLicensed 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, paying any applicable processing fees, and obtaining approval from the city councilCity Council, regardless of any possessory interest 11 Ordinance 1460 - Page 14 of 25 or right to possession to such additional space. 127.09: Altering or Modifying Location A. Lawful Possession. 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 premisesLicensed Premises. Evidence of lawful possession consists of properly executed deeds of trust, leases, or other executed written documents. B. Modifying Location. No Licensee shall add additional units or areas, thereby altering the initially approved premises, without filing an application to modify the location on forms prepared by the Chief Executive Officer, paying any applicable processing fees, and obtaining approval from the city council. C. Subletting Not Authorized. No Licensee is authorized to sublet any portion of any Licensed Premises for any purpose, unless all necessary forms and application to modify the existing location to accomplish any subletting have been approved by the city council. D. Application Required to Alter or Modify Licensed Premises. After issuance of a permitPermit, the licenseeLicensee 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 agreementDevelopment Agreement, without the prior written approval of the city councilCity Council or its designee. The licenseeLicensee whose premisesLicenses 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 any licensed premises or Permit approved square footage; 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 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 councilCity 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 11 Ordinance 1460 - Page 15 of 25 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. Rejection; Findings. The chiefChief Executive Officer or designee may reject an application upon making any of the following findings: 1. The applicantApplicant made one or more false or misleading statements or omissions on the registration application or during the application process; 2. The applicant'sApplicant's business entity, if applicable, is not properly organized and is not in “good standing,” in strict compliance pursuant to the applicable law, rules, and regulations; 3. The applicantApplicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapterChapter; 4. The applicant'sApplicant'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 th e issuing or continuation of a permit would be contrary to the public health, welfare, safety, or morals; 5. The applicantApplicant, or any of its officers, directors, owners, managers, or employees is under twenty-one (21) years of age; 6. The applicantApplicant, or any of its officers, directors, or owners, or any personPerson who is managing or is otherwise responsible for the activities of the Licensed PremisePremises, or any employee who participates in the dispensing, cultivation, processing, manufacturing, distributing, delivery, or transporting of medical and/or adult commercial cannabis and/or cannabis products or who participates in the daily operations of the medical and/or adult use commercial cannabis facility, has been convicted of a violent felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude; 7. The applicantApplicant or any of its officers, directors, owners, or managers is a licensed physician making patient recommendations for cannabis; 11 Ordinance 1460 - Page 16 of 25 8. The applicantApplicant or any of its officers, directors, owners, or managers has been sanctioned by the CityCITY, the State of California, or any county for unregistered medical cannabis activities or has had a registration revoked under this chapter in the three (3) years; 9. The applicantApplicant did not pay to the cityCITY 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 cityCITY. 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. The 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 or regulation. 6. All waste and disposal containers shall be stored in a secure area, and under the control of Licensee's staff. B. Security Alarm Systems - Minimum Requirements 11 Ordinance 1460 - Page 17 of 25 1. Each Licensed Premises shall have a Security Alarm System, installed by a licensed alarm company that alters 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 physical, non-cloud based, video surveillance recordings 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 entry and/or exit that shall be not less than 12 inches wide and 12 inches high, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera" or "These Premises Are Being Digitally Recorded" or other similar language 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. 11 Ordinance 1460 - Page 18 of 25 6. The Licensed Premises shall 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 permit holder of any prolonged surveillance interruption and/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 at a height that provides a clear, unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment. 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. 11 Ordinance 1460 - Page 19 of 25 7. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor Limited-Access Areas. G. Location and Maintenance of Surveillance Equipment 1. Surveillance recording equipment must be housed in a designated, locked, and secured 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. 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. 5. 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 Permit Holder knows or should have known of a pending criminal, civil, or administrative 11 Ordinance 1460 - Page 20 of 25 investigation or any other proceeding for which the recording may contain relevant information. I. 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’sApplicant’s security plan shall include twenty-four (24) hours per day security. The presence of security personnel on premises and/or periodic patrolling of the premises within the twenty-four (24) hours per day is permitted. 127.12: Fees and Charges. A. K. Applicable Fees Prior to operating in the cityCITY, the commercial cannabis permit holder for each licensed premisesLicensed 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 cityCITY 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 councilDevelopment Agreement, City Council review and approval of the development agreementDevelopment Agreement and the Permit, and preparation and issuance of the Permit as authorized by the city councilCity Council, due and payable in full at the time the city issues a Permit; 4. Amended registration fee for the cost to the cityCITY 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 cityCITY; 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; 11 Ordinance 1460 - Page 21 of 25 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 cityCITY; and 7. Any fees set forth in the applicable development agreementDevelopment Agreement. /// /// /// 127.13: Limitations on City's liability A. No CITY Liability. To the fullest extent permitted by law, the CityCITY does not assume any liability whatsoever, with respect to approving any permitPermit pursuant to this chapter or the operation of any cannabis facilityCommercial Cannabis Activity approved under to this chapterChapter. B. Indemnity and Insurance. As a condition of approval of a permitPermit, as provided in this chapter, the applicantApplicant or its legal representative shall do the following: 1. Execute an agreement indemnifying the cityCITY 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 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 CityCITY as an additional insured on all CityCITY-required insurance policies; 4. Agree to defend, at its sole expense, any action against the CityCITY, its agents, officers, and employees related to the approval of the Licensee’s regulatory permit; and 5. Agree to reimburse the CityCITY for any court costs and attorney fees that the CityCITY may be required to pay as a result of any legal challenge related to the City'sCITY's approval of the Licensee’s regulatory permit.Permit. The CityCITY 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. 11 Ordinance 1460 - Page 22 of 25 127.14. Inspections A. Right to Inspect. The Chief Executive Officer, Chief of Police 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 chapterChapter, to inspect and copy records required to be maintained under this chapterChapter, or to inspect, view, and copy recordings made by 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. Noncompliant Operations. 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. Revocation of Permit. 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 licenseeLicensee or applicantApplicant has conducted itself or is being conducted in a manner that creates or results in a public nuisance, as defined in Chapter 95 of the Baldwin Park Municipal Code;BPMC; 3. The licenseeLicensee Premises ceased operations for more than 90 calendar days, including during change-of-ownership proceedings; 4. Ownership is changed without the City Council approval and authorization under this chapterChapter; 5. The licenseeLicensee relocates to a different location or premises without City Council approval and authorization; and 6. The licenseeLicensee 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 11 Ordinance 1460 - Page 23 of 25 D. . The cityCITY shall initiate abatement proceedings as authorized by the Code, if necessary, to correct any violation of this chapterChapter or Code. E. Violation Deemed Misdemeanor -Penalty E. . Any personPerson violating any of the provisions of this chapterChapter 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 nuisance in the course of cultivating, manufacturing, testing, or distributing cannabis or any part thereof in any location, indoor or outdoor. A public nuisance may be deemed to exist, if such activity produces: A. Odors. 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. Repeated responses to the Licensed Premises by law enforcement personnel. C. Disruption to Free Passage. A repeated disruption to the free passage of persons or vehicles in the neighborhood, excessive noise, exceeding the noise levels set by Baldwin Park Zoning Code Section 153.140.070, which is disturbing to people of normal sensitivity on adjacent or nearby property or areas open to the public. D. Other Disruption Activity. 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 building, excessive vehicular traffic or parking occurring at or near Premises, and excessive noise emanating from the Premises. E. Outdoor Commercial Cannabis Activity. Outdoor growing and cultivation of cannabis. 127.16: Appeals Any decision regarding or pertaining to the permit process set forth in this chapterChapter, or any action taken by the Chief Executive Officer or designee pursuant hereto, may be appealed to the city councilCity 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 clerkCity 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 councilCity Council on such appeal shall 11 Ordinance 1460 - Page 24 of 25 be final and binding on all parties concerned. 127.17: Statewide Regulation. This chapterChapter, and the provisions herein, shall be read consistent with any statewide regulation of cannabisCommercial Cannabis Activity now and in the future. This ordinance shall govern the conduct of a business allowed to operate a commercial cannabis activity in the CityCITY. 127.17: Interpretation. The provisions of this chapterChapter shall be read to be consistent with State laws, this chapter, and this Code. At no time shall a commercial cannabis businessCommercial Cannabis Activity in compliance with state law and this Code be deemed to be an unlawful business. 127.18: 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 2. 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 3. This ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final reading and adoption. First read at a regular meeting of the City Council of the City of Baldwin Park held on the ____ day of _____, 2021, and adopted and ordered published at a regular meeting of said Council on the ____th day of _____, 2021. PASSED, APPROVED, AND ADOPTED ON THE ____ DAY OF SEPTEMBER 2021. ___________________________________ EMMANUEL J. ESTRADA, MAYOR ATTEST: 11 Ordinance 1460 - Page 25 of 25 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) S S CITY OF BALDWIN PARK ) I, MARLEN GARCIA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was introduced and placed upon its first reading at a regular meeting of the City Council on September _____, 2021. Thereafter, said Ordinance No. 1460 was duly approved and adopted at a regular meeting of the City Council on September ___, 2021, by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: __________________________________ MARLEN GARCIA , CITY CLERK Ordinance No. 1461 - Page 1 of 9 ORDINANCE NO. 1461 AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 153 OF THE BALDWIN PARK MUNICIPAL CODE RELATING TO COMMERCIAL CANNABIS ACTIVITY WHEREAS, Chapter 153 of the Baldwin Park Municipal Code (“BPMC”) regulates Commercial Cannabis Activity within the Industrial Commercial and Industrial Zones in the City of Baldwin Park (“CITY”) pursuant to Table 153.050.020; and WHEREAS, Government Code Section 5022.7 permits the amendment of municipal codes as often as deemed necessary by the legislative body, and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), Regulations, Section 15061(a)(3), the City Council of the City of Baldwin Park (“CITY”) has determined, with certainty, that the proposed action (“Project”) has no possibility that it will have a significant effect on the environment; and WHEREAS, the CITY has determined that the proposed action (“Project”) is exempt from CEQA, and WHEREAS, on September 8, 2021, after conducting a properly noticed public hearing, the Planning Commission adopted Resolution No. PC 21-11, recommending that the City Council amend Chapter 127 of the BPMC as it pertains to medical and adult use commercial cannabis. NOW THEREFORE, THE CITY COUNCIL OF THE CIT Y OF BALDWIN PAK DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Except as expressly modified pursuant to this Ordinance, all other provisions of Chapter 153 (“Zoning Code”) Section 153.120 entitled “Standards for Specific Land Uses and Activities” Part 10 & 18, 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 2. Chapter 153 (“Zoning Code”) Section 153.120 entitled “Standards for Specific Land Uses and Activities” Part 18, shall be amended andto read as follows: PART 10 MEDICAL MARIJUANA/CANNABIS DISPENSARIES 153.120.330- Use Prohibited Medical Marijuana/Cannabis Dispensaries are prohibited in the cityCITY. /// /// Ordinance No. 1461 - Page 2 of 9 PART 18 Medical and Adult Cannabis Cultivation, Manufacturing and Distribution § 153.120.560 – Intent and Purpose The purpose of regulating commercial cannabis activity is to comply with California state law in a manner designed to minimize negative impact on the CityCITY, and to promote the health, safety, morals, and general welfare of residents and businesses with inwithin the CityCITY. § 153.120.570 – Use Regulations A. Chapter 127: Medical and Adult Use Commercial Cannabis. All commercial cannabis activity shall comply with all applicable provisions of Title XI, Chapter 127, Medical and Adult Use Commercial Cannabis, of this code. B. Outdoor Cultivation. Owning, leasing, occupying, or having charge or possession of any parcel within any zoning district in the CityCITY to use or allow such premise to be used for the outdoor cultivation of cannabis plants is prohibited in the CityCITY. C. Development Agreement Required. Prior to operating in the CityCITY and as a condition of issuance of a Permit, the applicant shall enter into a development agreementDevelopment Agreement (as governed by California Government Code Section 65864, et seq.) with the City setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of Title XI, Chapter 127, 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 CodeBPMC), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all persons in the CityCITY. D. Maximum Number of Commercial Cannabis Permits. No more than 25 (twenty-five) permits, each with a maximum of 22,000 square feet of permitted commercial cannabis useCommercial Cannabis Activity may be allowed, maintained, or operated in the CityCITY at any time.; except that, Dispensaries only, shall be allowed a maximum of 40,000 square feet. § 153.120.580 – Development Standards The development standards set forth in subchapter 153.050, Commercial and Industrial Zones, shall apply to commercial cannabis facilities, unless otherwise specified here. The location and types of commercial cannabis facilities shall be limited as follows: A. Proximity to schools, day-care centers, or youth centers. A commercial cannabis facility shall not be located within 600 feet of a school, day-care center, or youth center. Ordinance No. 1461 - Page 3 of 9 B. Proximity to residential zoning districts. A commercial cannabis facility shall not be located within fifty (50) feet from a dwelling unit within a residential zone,; except whenthat Commercial Cannabis Distribution may be allowed within a proximity of twenty (20) feet from a dwelling unit within a residential zone. However, when the Commercial Cannabis Activity is exclusively manufacturing food and/or edible cannabis products and no other products, and there is no on-site extraction of cannabis or cannabis products is taking place on the premises. A Manufacturing facility of edible cannabis products and no other products, and where no on-site extraction occurs shall not be located within , the proximity may be twenty-five (25) feet of a dwelling unit within a residential zone.; C. Maximum square footage. Each approved permit shall not exceed 22,000 square feet of commercial cannabis floor area.; except that Commercial Cannabis Distribution may be allowed not to exceed 40,000 square feet of commercial cannabis floor area; D. Facility. A commercial cannabis facility shall comply with the following: 1. All activity shall occur in an enclosed locked structure. Locks shall be of commercial grade. Residential door locks are prohibited; and 2. From a public right-of-way, there should be no exterior evidence of the manufacturing, cultivation and/or distribution of medical and adult use cannabis; and 3. All licensed sitesLicensed Premises shall comply with the City’sCITY’s lighting standards including, without limitation, fixture type, wattage, illumination levels, and shielding and secure the neccessary approvals and permits, as needed ; and 4. All windows on the licensed premisesLicensed Premises shall be appropriately secured and all cannabis securely stored ; and 5. All operations conducted within a licensed premisesLicensed Premises, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes; and 6. Areas that are wet locations, and the electrical system in such areas must comply with Title 8 of this code, Article 300.6(0) of the National Electric Code, City and California building codes, fire codes, electrical codes, and all other applicable laws; and 7. Licensed sitesPremises 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 all commercial cannabis facilities 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: Ordinance No. 1461 - Page 4 of 9 a. A Group F-1 fire area exceeds 12,000 square feet. b. A Group F-1 fire area is located more than 3 stores 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.; 8. All licensed manufacturing and cultivating premises shall possess air scrubbers or a filtration system capable of eliminating odors from escaping the building before operating ; and 9. Licensed distribution facility. Staff reserves the right to require a licensed distribution facility to install air scrubbers or a filtration system capable of eliminating odors from escaping the building if the facility is found to emit cannabis odors. 10. 10. The manufacture, distribution, and transportation of edible cannabis products shall be conducted in a manner that complies with all applicable food safety laws for the protection of humans consuming cannabis. 11. All products, storage facilities, utensils, equipment, and materials used for the manufacture of edible cannabis products shall be approved, used, managed, and handled in accordance to the provisions of all State and County Health and Safety Laws regarding the preparation, distribution, labeling, and sale of food. 12. Any manufacturing site that proposes to prepare, store, dispense, and distribute edible cannabis products shall comply with the relevant provisions of all State and County Health and Safety Laws regarding the preparation, distribution, labeling, and sale of food. 13. No food production shall be allowed in a facility where edible cannabis products are manufactured to avoid the unintentional contamination of non -cannabis foods with cannabis. 14. All owners, employees, volunteers, or other individuals that participate in the production of edible cannabis products shall be State certified food handlers. The valid certificate number of each such owner, employee, volunteer, or other individual shall be on record at the permitted premises where said individual participates in the production of edible cannabis products. E. Security. All security requirements set forth in Title XI, Chapter 127, Medical and Adult Use Commercial Cannabis, of this code are applicable. 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. The areas to be covered Ordinance No. 1461 - Page 5 of 9 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 or regulation. 6. All waste and disposal containers shall be stored in a secure area, and under the control of Licensee's staff. 7. Each Licensed Premises shall have a Security Alarm System, installed by a licensed alarm company that alters the alarm monitoring company on all premises entry points and windows. 8. Each Licensed Premises must be continuously monitored by an alarm monitoring company. 9. 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. 10. 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. 11. 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. 12. All physical non-cloud based video surveillance records must be stored in a secure area that is only accessible to the management staff of the Licensed Ordinance No. 1461 - Page 6 of 9 Premises. 13. 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. 14. 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. 15. 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 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. 16. 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. 17. 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. 18. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the Licensed Permit holder of any prolonged surveillance interruption and/or the complete failure of the surveillance system. 19. 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. 20. 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. 21. 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. Ordinance No. 1461 - Page 7 of 9 22. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points. 23. 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. 24. 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. 25. Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur. 26. At least one camera must be dedicated to record the access points to the secured surveillance recording area. 27. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor Limited-Access Areas. 28. 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. 29. 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. 30. Off-site monitoring and video recording storage of the Licensed Premises or an independent third-party is authorized as long as standards exercised at the remote location meets or exceeds all standards for on-site monitoring. 31. 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. Ordinance No. 1461 - Page 8 of 9 32. All camera views of all recorded areas must be continuously recorded 24 hours a day. 33. 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. 34. The surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded. 35. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture. 36. Time is to be measured in Pacific Standard Time in accordance with the U.S. National Institute of Standards and Technology. 37. 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 Permit Holder 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. SECTION 2. 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 3. This ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final reading and adoption. First read at a regular meeting of the City Council of the City of Baldwin Park held on the ____ day of __________, and adopted and ordered published at a regular meeting of said Council on the ______ day of ___________, 2021. PASSED AND APPROVED AND ADOPTED ON THE ____ DAY OF SEPTEMBER 2021. Ordinance No. 1461 - Page 9 of 9 ___________________________________ EMMANUEL J. ESTRADA MAYOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) S S : CITY OF BALDWIN PARK ) I, MARLEN GARCIA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was introduced and placed upon its first reading at a regular meeting of the City Council on September _______, 2021. Thereafter, said Ordinance No. 1461 was duly approved and adopted at a regular meeting of the City Council on September ___, 2021 by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ______________________________________ MARLEN GARCIA CITY CLERK hire locally; work closely with the City to serve the community through workforce development projects; and build relationships with local operators and other business owners. increasing the amount of security throughout the neighborhood by placing exterior cameras at our business and having a security guard present 24-hours a day; creating no negative impacts for the neighborhood; and implementing transportation policies with zero traffic impact on the neighborhood. Baldwin Park Distribution, LLC is happy to answer any questions residents might have about our business and our facility. Who We Are: We are a business applying for a commercial cannabis distribution license. We are excited to join the Baldwin Park community and plan to: We are highly experienced operators focused on the safety and security of our team and neighbors, we look forward to: The Baldwin Park City Council is reviewing our project proposal at their upcoming meeting - we would like the opportunity to earn your support. Please let us know if you have any questions or concerns! Do you have questions, comments or concerns? Please email baldwinparkdistro@stachs.co or call 213-327-5777 to get in touch. We are happy to address any questions or concerns you may have. Sincerely, Tony Kim - CEO, Stachs LLC 14030 Live Oak Blvd. contratar localmente; trabajar en estrecha colaboración con la ciudad para servir a la comunidad a través de proyectos de desarrollo de la fuerza laboral; y entablar relaciones con operadores locales y otros propietarios de empresas. aumentar la cantidad de seguridad en todo el vecindario al colocar cámaras exteriores en nuestro negocio y tener un guardia de seguridad presente las 24 horas del día; no generar impactos negativos para el vecindario; implementar políticas de transporte con cero impacto de tráfico en el vecindario. Baldwin Park Distribution, LLC está feliz de responder cualquier pregunta que los residentes puedan tener sobre nuestro negocio y nuestras instalaciones. Quienes Somos: Somos una empresa que solicita una licencia de distribución comercial de cannabis. Estamos emocionados de unirnos a la comunidad de Baldwin Park y planeamos Somos operadores altamente experimentados enfocados en la seguridad de nuestro equipo y vecinos, esperamos: El Ayuntamiento de Baldwin Park está revisando nuestra propuesta de proyecto en su próxima reunión; nos gustaría tener la oportunidad de ganarnos su apoyo. Háganos saber si tiene alguna pregunta o inquietud. Tiene preguntas, comentarios o inquietudes? Envíe un correo electrónico a baldwinparkdistro@stachs.co o llame a 213-327-5777 para ponerse en contacto. Estaremos encantados de responder cualquier pregunta o inquietud que pueda tener. Atentamente, Tony Kim - CEO, Stach LLC 14030 Live Oak Blvd. hire locally; work closely with the City to serve the community through workforce development projects; and build relationships with local operators and other business owners. increasing the amount of security throughout the neighborhood by placing exterior cameras at our business and having a security guard present 24-hours a day; creating no negative impacts for the neighborhood; and implementing transportation policies with zero traffic impact on the neighborhood. Baldwin Park Distribution, LLC is hosting an informational meet & greet in order to answer any questions residents might have about our business and our facility. Who We Are: We are a business applying for a commercial cannabis distribution license. We are excited to join the Baldwin Park community and plan to: We are highly experienced operators focused on the safety and security of our team and neighbors, we look forward to: The Baldwin Park City Council is reviewing our project proposal at their upcoming meeting - we would like the opportunity to earn your support. Please join us if you have any questions or concerns! Where & When: 14030 Live Oak Blvd. (parking lot) Thursday 4/29, 6pm - 7pm Do you have questions, comments or concerns, but are unable to attend the meeting? Please email baldwinparkdistro@stachs.co or call 213-327-5777 to get in touch. We are happy to address any questions or concerns you may have. Sincerely, Tony Kim - CEO, Stachs LLC You Are Invited! 14030 Live Oak Blvd. contratar localmente; trabajar en estrecha colaboración con la ciudad para servir a la comunidad a través de proyectos de desarrollo de la fuerza laboral; y entablar relaciones con operadores locales y otros propietarios de empresas. aumentar la cantidad de seguridad en todo el vecindario al colocar cámaras exteriores en nuestro negocio y tener un guardia de seguridad presente las 24 horas del día; no generar impactos negativos para el vecindario; implementar políticas de transporte con cero impacto de tráfico en el vecindario. Baldwin Park Distribution, LLC está organizando un encuentro y saludo informativo para responder cualquier pregunta que los residentes puedan tener sobre nuestro negocio y nuestras instalaciones. Quienes Somos: Somos una empresa que solicita una licencia de distribución comercial de cannabis. Estamos emocionados de unirnos a la comunidad de Baldwin Park y planeamos Somos operadores altamente experimentados enfocados en la seguridad de nuestro equipo y vecinos, esperamos: El Ayuntamiento de Baldwin Park está revisando nuestra propuesta de proyecto en su próxima reunión; nos gustaría tener la oportunidad de ganarnos su apoyo. ¡Únase a nosotros si tiene alguna pregunta o inquietud! Donde y Cuando: 14030 Live Oak Blvd. (estacionamiento) Jueves 4/29, 6pm - 7pm Tiene preguntas, comentarios o inquietudes, pero no puede asistir a la reunión? Envíe un correo electrónico a baldwinparkdistro@stachs.co o llame a 213-327-5777 para ponerse en contacto. Estaremos encantados de responder cualquier pregunta o inquietud que pueda tener. Atentamente, Tony Kim - CEO, Stach LLC ¡Estas Invitado! 14030 Live Oak Blvd. ITEM NO. 18 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Benjamin Martinez, Director of Community Development Rose Tam, Director of Finance DATE: October 6, 2021 SUBJECT: Re-Evaluation of the Merits of the Baldwin Park Resident Owned Utility District (BPROUD) Program-Findings and Recommendations SUMMARY At their meeting of June 16, 2021, the City Council instructed staff to conduct an expeditious re- evaluation of the fundamental tenets and the merits upon which the BPROUD Program had been approved at its formation, and to present Council with options on potential alternate courses of action were Council to decide to discontinue BPROUD. This instruction was prompted by the Staff Reports presented on the Council meetings of May 29, and June 16, 2021, recommending the approval of a rate increase of nearly 25% in the generation rate to BPROUD Customers. City Council understanding of the premise of the program was that not only it would be more affordable or at parity with Southern California Edison, but even generate additional revenue for city programs and services. Council found the rate increase recommendation with less than a year into the Program and in the middle of the COVID pandemic rather shocking and in quite a contrast to their understating of the premise of the Program when they considered its approval in early 2019. This Staff Report presents findings and recommendations following the re-evaluation of the Program. City Staff with the assistance of the Cordoba Corporation conducted the analysis. RECOMMENDATIONS Staff recommends that the City Council: 1. Continue the Public Hearing and consider testimony; and 2. Find that it is in the City’s best interest for the City to no longer be in the electrical energy- supply business through its BROUD Program; and 3. Find that it is in the City’s Best interest to revert to full electricity utility service by Southern California Edison (SCE) for all of its residents and businesses; and 4. Declare the City’s Intent as the owner/operator of the BPROUD Program to decertify as a Consumer Choice Aggregation (CCA) entity following the steps stipulated by the Public Utilities Commission (CPUC); and 5. Declare the City’s Intent to terminate its agreement, on a mutual and voluntary basis, with the California Choice Energy Authority (Cal Choice), a public Joint Powers Authority (JPA) which provides CCA administration services to BPROUD through its family of consultants; and 6. Direct the CEO to work with the Department Heads, City Consultants, City Attorney, and all the other entities including the CalChoice Energy Authority (CalChoice), SCE and the CPUC to map out an implementation plan to carry out the direction of the City Council and to present actions to the City Council for final approval as appropriate, adhering to established contractual and regulatory requirements, with the intent to have the switchover to SCE fully in effect no later than by the end of August 2022, with the anticipation that the optimal time for the transition could be during the month of February 2022; and 7. Approve a rate increase for the generation under the BPROUD Program previously considered by the City Council at its meeting of June 16, 2021, and updated to current rates. The generation rate will increase from 0.06708/kwh to 0.08720/kwh, effective September 1, 2021, to partially cover the structural deficit currently being subsidized by the General Fund; and 8. Authorize the CEO with the concurrence by the Directors of Finance and Community Development Departments to transfer from the General Fund to the BPROUD Escrow Account up to $1,700,000 without a rate increase and $1,120,000 with a rate increase, depending on when the BPROUD Program reverts to SCE, to cover the shortfall during the transition. Council had previously authorized a transfer of up to $1,325,000. This will increase the total transfer to potentially $3,025,000 through February 20, 2022; and 9. Authorize the CEO to increase the contract amount limit authority with Cordoba Corporation for consultant services in support of the BPROUD Program reevaluation and transition beyond the CEO contract authority of $24,999; and to include in the contract scope of work with Cordoba, staff augmentation services for other City Programs as determined by the CEO and requested by Department Heads; and 10. Direct staff to pursue funding eligibility opportunities to offset the City’s General Fund losses as a result of the subsidy of the BPROUD Program. The America Rescue Plan (ARP) and the Arrears Management Program (AMP) help customers which will assist customers who are late in payments. FISCAL IMPACT BPROUD as an Enterprise Program is currently in a structural fiscal deficit, that is the revenue from the rate paying customers is less than the costs associated with the running of the program. The General Fund has been covering the shortfall via a number of funding transfers, starting since July 2021, and potentially through February 2022, depending on the Council decision. The total potential accumulated deficit if no rate action is put in effect would be $3,025,000 by the end fiscal year ending June 30, 2022. See Exhibit “A” of this report. BACKGROUND In 2002, AB117 was signed into law in the state of California, amending the Public Utilities Code enabling any city or county in the state to combine the electricity load (generation) of its residents and businesses in community-wide electricity aggregation program known as Community Choice Aggregation (CCA) entities. This action by the legislature was in tandem with other electricity related legislative actions that were intended to provide local entities with options outside of the Investor Owned Utilities (IOU’s). Feasibility work by the City in considering becoming a stand-alone CCA began in late 2017, and progressed in phases ultimately leading to the City formally establishing a CCA Program by the adoption of Ordinance No. 1439, on April 3, 2019 whereby creating a CCA as part of the City organization. The CCA program was subsequently named as the Baldwin Park Resident Owned Utility District (BPROUD). In order to provide administration services of the newly created BPROUD Program, and in light of the fact that no city staff positions were provided to administer the program, the City entered into an agreement with the California Choice Energy Authority (Cal Choice) on March 20, 2019 to provide the needed administration services, at an average monthly cost of $60,000. Cal Choice in turn has contracted with a number of expert sub consultants to provide specialty services such as energy purchasing, CPUC filings, energy demand forecasting, call center customer service, etc. As of the time of this report, the sub consultants were: Pacific Energy Advisers, Inc Calpine Energy Solutions Bayshore Consulting Maher Accountancy During the early deliberative process undertaken by the City Council in considering the merits of the BPROUD Program, some of the benefits represented by Staff and Cal Choice were: • Local Control of energy procurement and rate setting • New revenue streams for local programs, economic development, and energy efficiency programs. • Eligibility to apply for new funding sources and grant opportunities to support city goals and priorities. In the course of program presentations made to Council by Staff and Cal Choice as far as the beneficial attributes of BPROUD, the notion of rate savings to the community, the generation of additional revenue for the City, availability of clean power, and rates being lower or at parity with Southern California Edison really made a positive impression on the members of the City Council. It was on this basis that City Council made its decision to form the CCA and contract with Cal Choice JPA. Concurrently to the City of Baldwin Park considering the creation of BPROUD, other cities in Southern California were also work working with Cal Choice for the formation of their own CCA. Ultimately the cities that so far have contracted with Cal Choice and became associate members of the Cal Choice JPA, in chronological order: 1. City of Lancaster 2. City of San Jacinto 3. City of Pico Rivera 4. City of Rancho Mirage 5. City of Apple Valley 6. City of Pomona 7. City of Baldwin Park Cities that had considered forming a CCA and join the Cal Choice JPA but dropped out at different stages of development: City of Commerce; City of Montebello, and City of Hanford. Cities currently in consideration to join are the Cities of Santa Barbara and Palmdale. Barely six months into the BPROUD program since its implementation launch in November 2020, Cal Choice approached the City with the need to raise the rates as they estimated that the cost of running the program would soon outstrip the forecast revenue from the program. City Council was given a presentation on the financial forecast sometime in April 2021. On May 29, 2021, Staff and Cal Choice officially recommended to the City Council a rate increase for BPROUD. Council continued the item to its June 16, 2021 Council Meeting. It was evident from the discussion among the Councilmembers that they were shocked to see a rate increase being needed this early in the program, in the middle of the Covid-19 Pandemic, and quite contrary to their understanding of the underpinning premise of the program that was to generate extra revenue, not create a financial deficit. Council did not approve the rate increase. Instead, Council directed Staff to conduct an expeditious re- evaluation analysis, and authorized a transfer from the General Fund Reserve to cover the deficit of the BPROUD Program, as Council’s top priority was to ensure that the reliability of power supply to its BPROUD customers was not compromised. Staff quickly retained the consulting services of the Cordoba Corporation to assist with the expeditious analysis, utilizing the CEO’s contractual authority. Cordoba staff have been extremely responsive and thorough, notwithstanding the limited contract dollar amount of $24,999.00 at the CEO authority. Their Analysis Report is herein attached. DISCUSSION The electricity utility business is a very complex enterprise by definition. Large Investor Owned Utility Organizations (IOU’s) like Southern California Edison came to be the only ones who had the capability to run such a business. In the eyes of some, this was starting to look and feel more like a monopoly. Through regulatory efforts, the California Legislature through AB117 enacted the opportunity for the creation CCA’s that would be authorized to enter the electricity business, in the procurement of power. Of course, cities and counties have always had the legal authority to form their own power utility department which operate all aspects of the utility. Case in point would be LA’s Department of Water and Power with about 10,000 employees, the City of Pasadena Water and Power Department with about 440 employees, and the City of Vernon Power Utility Department with about 200 employees. In this window of re-evaluation, the City must be more deeply introspective in terms of the value- or lack of- that the BPROUD Program delivers for its residents and businesses. The power generation and procurement markets have become far more volatile and unpredictable, with pricing fluctuations not unlike those in the stock market, which only adds to the complexity of running the business. As we have seen during this summer months, peak power demands can be so overwhelming that the California Independent System Operator (CAISO) has had to activate flex alerts where power is shut- off to some communities. We must be mindful of the fact that as a CCA, we have assumed the responsibility of ensuring that the City residents and businesses have adequate and reliable power at all times, including during the worst peak of a heatwave. While there are safeguards and backstops provided by CAISO in this regard, it does not relieve us of the ultimate responsibility. As California continues to move toward renewable energy like solar and wind, as the primary source of its electricity, the State has mandated a minimum of 35% of renewable energy in the portfolio mix of all electricity service providers, including CCA’s like BPROUD and IOU’s like SCE. Up until recently, CCA’s were generally providing higher renewable energy in their supply mix. BPROUD currently complies with the mandated minimum of 35% in its supply portfolio. Customers can subscribe to a higher renewable mix at a higher cost. Other CCA’s like the LA County Clean Power JPA, provide a higher minimum renewable energy mix at a higher cost to their customers who are willing to pay such higher cost. It is the Staff conclusion that we the City of Baldwin Park as an organization, we are not adequately equipped nor staffed to properly manage BPROUD. Given the unpredictability of the electric energy markets with sudden and abrupt cost increases, City Council would have to be willing to consider potentially more frequent rate increases well into the future to keep BPROUD solvent. While we have the services of CalChoice to deal with the fast-paced frontline energy procurement aspects of BPROUD, we are not staffed to provide adequate oversight and be ultimately accountable for the cost and service profile of BPROUD. We believe that BPROUD has simply not delivered on its promised value proposition of lower rates, additional revenue for City programs, and we cannot truthfully predict a time when it will. Staff believes that Southern California Edison (SCE), who already provides the transmission infrastructure, electrical delivery, metering, and billing services to our BPROUD customers, would be a better option to BPROUD, and therefore recommend that we revert to their service. Joining another CCA like the Clean Power JPA is not an option for Baldwin Park at this point as they have inherently higher cost rates which would be of higher impact to the residents and businesses of the City. Staff has had multiple discussions and consultations with all entities involved in this complex reversion transaction from a CCA back to SCE. These discussions have been preliminary in nature, pending the outcome of the decision by City Council. Cal Choice has indicated their openness, willingness, and intent to work collaboratively with us in facilitating a smooth and orderly transition, and would be agreeable to a voluntary termination of our contract with them. Once we are able to formally deal with the long-term power contracts currently in the BPROUD/Cal Choice portfolio, Cal Choice will work with us finding a best suitor for the assignment and selling of said contracts. SCE has similarly been very cooperative and poised to undertake the reversion in an orderly fashion while minimizing and disruption of service or confusion to customers. A long enough transition time is critical to SCE in this regard. They have indicated that February 2022 would be an optimal time to implement the reversion. Edison is currently managing the involuntary reversion of customers of the Western Energy CCA in the Murrieta/Perris area in Riverside County, who recently went into bankruptcy and their customers had to abruptly be switched over to SCE. The California Public Utilities Commission (CPUC) has been working with us in understanding the regulatory aspects of a potential reversion. A very important component in a reversion scenario is the applicability of Re-Entry Fees, which is a fee that would be charged by SCE for their cost in having to provide added power supply capacity as a result of the added customers. Given a long enough period to transition such as February 2022, SCE estimates that reentry fees may not need to be applied. Much work in diligence related to power purchase contract review, regulatory, operational, and contractual requirements will need to be conducted following the decision by City Council. Cordoba Corporation will continue to provide consultant services related to BPROUD. In addition, given their excellent level of responsiveness and thoroughness at a very reasonable cost during this engagement, Staff intend to add to their scope of services, the provision for staff augmentation for professional services such as project managers, project analysts, and office assistants. Staff will present to City Council such contract for approval once negotiated. While some of time and cost estimates are preliminary at this point, Exhibit “A” shows a table indicating the costs estimated for BPROUD as of now, during the transition, and into the future. ALTERNATIVES 1. Council can choose not to approve the recommended rate increase and decide to have the General Fund continue to cover the deficit. 2. Council can choose to not decertify the CCA, not terminate the contract with Cal Choice JPA, and keep the BPROUD Program operational. 3. Staff does not recommend joining another Power JPA as an alternative. LEGAL REVIEW City Attorney has reviewed this staff report. ATTACHMENT 1. BPROUD Analysis report by Cordoba Corporation 2. Exhibit “A” – BPROUD Financial Projections Objective Cordoba Corporation (Cordoba) thanks for the opportunity and has been contracted by the City of Baldwin Park (City) to consider the following options and make recommendations regarding the next steps for the City of Baldwin Park’s BPROUD Program, as follows: 1. Continue with CalChoice and increase rates (BPROUD Program) 2. Consider moving to another Community Choice Aggregation (CCA) Program 3. De-certify the BPROUD Program and move back to Southern California Edison (SCE) Please note that our recommendations do not include the evaluation of CalChoice’s power procurement practices. Background BPROUD Program As a result of the report titled City of Baldwin Park Community Choice Aggregation Technical Study: Summary of Results presented in September of 2018, the City of Baldwin Park (City) decided to form a Community Choice Aggregation (CCA) named the BPROUD Program. At this same time, the City joined CalChoice which is a hybrid CCA structure that provides members the ability to leverage CalChoice’s knowledge and staff to benefit from lower energy procurement costs, regulatory matters, accounting, and compliance functions which are important to the success of a CCA. The objectives of the CCA were to provide customers with bills that were at parity with SCE or lower; provide local government control of energy procurement and rate setting; and provide new revenue streams for local programs, economic development, and energy efficiency programs • In October 2020, the City’s BPROUD Program/CCA launched phase 1 with residential customers • In June 2021, the City’s BPROUD Program/CCA launched phase 2 with commercial customers • Initial rates for the BPROUD Program were set in June 2020 and have not changed since that time Confidential 9/30/21 2 | Page The following background information was also considered as part of Cordoba’s recommendations for next steps: Market Conditions Impacting Generation Costs • Since June of 2020, the market conditions have changed dramatically, thus increasing the costs to procure electricity • Market conditions have been impacted by extreme weather including heat conditions and drought, thus resulting in state mandates ordering the IOUs (PG&E, SCE, and SDG&E) to procure additional power in preparation for 2021 • California Independent System Operator (CALISO) conducted a root cause report after the 2020 heat wave that caused rolling blackouts, and concluded the following: o The climate change-induced extreme heat wave across the western United States resulted in demand for electricity, exceeding existing electricity resource adequacy (RA) and planning targets o In transitioning to a reliable, clean, and affordable resource mix, resource planning targets have not kept pace to ensure sufficient resources that can be relied upon to meet demand in the early evening hours; this made balancing demand and supply more challenging during the extreme heat wave o Some practices in the day-ahead energy market exacerbated the supply challenges under highly stressed conditions • A CALISO memo dated July 7, 2021 stated that the same conditions as last year are likely to occur again: the prevailing pattern of extreme temperatures and drought and declining hydro conditions are likely to extend across the summer, thus increasing the probability of stressed grid conditions, and an associated loss of natural gas generation • The California Public Utilities Commission (CPUC) opened an Emergency Reliability Rulemaking (R.20-11-003) to procure additional resources to meet California’s electricity demand in the summer of 2021; through this proceeding, the CPUC has already directed the state’s three large investor-owned utilities to seek contracts for additional supply-side capacity for the summer 2021 and summer 2022 • The dramatic change has impacted many of the CCAs, including the City’s BPROUD Program o Western Community Energy filed for Bankruptcy, stating a loss of $12 million and returning its customers back to SCE o The City of Commerce has decided to leave its CCA and rejoin SCE o Clean Power Alliance (CPA) increased their rates in July 2021. CPA is a Community Choice Aggregator (CCA) that serves one million customer accounts across 32 communities throughout Los Angeles and Ventura counties o Most of CalChoice’s CCAs have increased their rates, with the exception of the City’s BPROUD Program Pico Rivera Innovative Municipal Energy (PRIME) recently decided to increase their rates on September 1, 2021 Confidential 9/30/21 3 | Page • The changing market conditions and resulting operating shortfalls were presented by CalChoice to the City in January and April of 2021 • CalChoice and CPA have different governing structures when it comes to changing rates o CalChoice is structured to make rate decisions at the city level, while CPA makes them from their own governing level comprised of city representatives. One gives more decision making to local jurisdictions and the other makes quicker decisions at the CCA level. CPUC Rules to Leave CCA • CPUC Rule 23 requires that SCE be given 12 months of notice so that it can readjust their load forecast and purchase contracts to serve the new customers. If the City’s BPROUD Program CCA service termination is considered, following are the requirements of SCE Rule 23 – Section S – Voluntary CCA Service Termination: o At least one (1) year advanced written notice to CPUC and SCE (no later than January of year prior to year of termination) o Provide customers with a 6-month notice and at a minimum second notice 60-days prior to termination o CCA responsible for provision of electric power and all regulatory requirements until transfer of customers o If individual customers wish to return to SCE bundled service following the first 60 days after transferring to the City’s BPROUD Program CCA service, they will be required to provide a completed Six Month Advance Notice to Return to Bundled Portfolio Service (Form 14-955) before returning to SCE bundled service; they will also need to make a 12-month commitment to remain on bundled service o A CCA shall be responsible for all costs resulting from the CCA’s Service termination including Re-Entry Fees owed by the CCA. The majority of these costs are related to purchasing the generation procurement contracts. The more notice SCE receives, the new contracts will be less expensive. Confidential 9/30/21 4 | Page Analysis of the City’s BROUD Program To-Date • Generation rates for the City’s BPROUD Program were established during a time when prices were much lower; on average, the price per megawatt in June 2020 was $23 while in 2021 the price was $51 (the average monthly price increase between the two years was approximately 123%) - below is a chart that shows a price comparison between June 2020 to June 2021 • From August 14 – 19, 2020, California experienced statewide extreme heat with temperatures 10-20 degrees above normal; demand for power was much higher than procured power which caused rotating blackouts and resulted in extreme price increases. Comparison of Bills Across CCAs • Generation prices represent approximately 30% of the customer’s bill. The largest portion of the bill is the SCE Delivery Rate, which is fixed through the 3-year rate case cycle and is charged to every customer Confidential 9/30/21 5 | Page Bill comparison Domestic D Rate (SCE, BPROUD, CPA, & Other CalChoice CCAs) Table above is based on monthly usage of 594 kWh. SCE rates are current as of June 1, 2021. BP rates have not changed since October 1, 2020. CPA rates are current as of July 1, 2021. City of Pico Rivera’s CCA (PRIME) rates are current as of September 1, 2021 • Because of SCE’s market position and balancing account, they can float price increases over longer periods of time, thus reducing price shocks to their customers; unfortunately, California CCAs do not have the same balancing of accounts • SCE has stated that their power prices will remain relatively unchanged for 2022; however, they have a rate filing in November 2021, and in the past, rates have increased after the rate filings o In addition, SCE announced that for next year (2022) the Surcharges, which are an exit fee charged by SCE, will reduce by 25%; this will have a positive long-term impact on all CCAs The Surcharge fee is designed to cover the difference in the market value of energy resources that were already contracted on a customer’s behalf by SCE and the cost of those resources • A CPUC decision on SCE’s 2021 General Rate Case was recently made which will yield a 9% increase on the Service Delivery Rate in October 2021, Service Delivery represent 59% of a customer bill and all customers are impacted regardless if they are an IOU or CCA customer • The increase in power prices challenged all CCAs with meeting their original objective of providing customers with cheaper rates than SCE • CCAs, like CPA, have increased their rates as of July 2021. Previously all CCAs had bills equal to or below SCE’s • Below is a chart from data provided by SCE in their comparison rates tables depicting rates and bills for SCE customers, the City’s BPROUD Program, CPA, and the other CCAs within CalChoice o The City’s BPROUD Program rates have remained unchanged since inception (October 2020) and are below SCE prices; similarly, the City of Pico Rivera’s CCA (PRIME) rates had remained unchanged. However, in August 2021, the City of Pico Rivera decided to raise their rates as of September 1, 2021 Confidential 9/30/21 6 | Page o With CPA’s increase in generation rates, generation prices are still well below SCE’s; however, due to SCE’s exit fees, CPA’s customer bills are now 6.9% higher than SCE o Due to the City’s BROUD Program’s generation rates not changing, CPA generation rates are much higher. Operating Margins (June 2020 Versus April 2021) In earlier presentations to Baldwin Park in 2018, 2019, and as late as 2020, it was shown that there would be substantial operating margins; the forecasted operating margins were based on power prices seen before the summer of 2020 • Below is a table that compares forecasts calculated before (June 26, 2020) and after the summer of 2020 (April 21, 2021) extreme heat events when generation prices increased exponentially • Based on projections made before the summer of 2020’s extreme heat wave, the City would have a cumulative operating margin of $4.7M • The forecasts presented to the City in April 2021 shows a 2025 cumulative operating shortfall of -$6.4M, which is a drastic difference from what was presented the prior year CalChoice Operating Margins Forecasts (Version June 2020 Versus Version April 2021) CalChoice Operating Margins Forecasts (Version August 2021) • CalChoice regularly updates their forecasts, the below table includes the most recent figures and shows the impact of not increasing Generation Rates, as well as the following three variables: 1. Generation Rate increases 2. The soonest SCE could revert BPROUD customers 3. When BPROUD could return to a positive cashflow if staying with CalChoice • In a recent September meeting with SCE, they suggested that a return to SCE would be possible by February 2022, much sooner than the CPUC Rule 23 required • The table below only includes the potential impacts to not increasing rates and does not include potential losses to de-registering the CCA, those are considered in the following section 2021 2022 2023 2024 2025 Cumulative thru 2025 6-26-20 Projections Operating Margin 233,681$ 278,242$ 1,185,401$ 1,366,654$ 1,670,187$ 4,734,165$ 4-21-21 Operating Margin NO rate increase (20,876)$ (2,874,341)$ (1,896,430)$ (1,127,150)$ (476,082)$ (6,394,879)$ Difference Between 2021 and 2020 (254,557)$ (3,152,583)$ (3,081,831)$ (2,493,804)$ (2,146,269)$ (11,129,044)$ 6-26-20 Power Supply Costs 3,458,817$ 10,273,422$ 9,802,754$ 10,047,213$ 10,179,888$ 43,762,094$ 4-21-21 Power Supply Costs 3,393,467$ 11,930,615$ 11,383,324$ 11,048,058$ 10,833,596$ 48,589,060$ Difference Between 2021 and 2020 (65,350)$ 1,657,193$ 1,580,570$ 1,000,845$ 653,708$ 4,826,966$ Confidential 9/30/21 7 | Page • Since no rate increases have occurred between the April 2021 presentation and the new August 2021 forecast, the annualized 2021 negative net position/operating margins have increased by $2.28M. o In the forecast listed above for April 21, 2021 under Operating Margins NO rate increase, the operating margin for 2021 was $(20,876). In the forecast listed below, the operating margin or Cumulative Net Position for 2021 is $(2,307,711) • The forecasts below (Version August 2021) show that the only scenario that will bring BPROUD to a positive cumulative net position is a 30% generation rate increase (a 30% increase in generation rates equals a 9% increase to the customer’s bill) o $74,596 under Column Apr-23, and row 30% Increase Cumulative Net Position CalChoice Operating Margins Forecasts (Version August 2021) Customer Bill If the City’s BPROUD Program Generation Rates Increase by 30% • The table below takes the customer bill table above and adds a scenario of what a customer bill would look like if generation rates were increased by 30% • Generation rates represent 30% of the total bill; if these rates increase by 30%, the customer’s monthly average bill would increase by approximately $14, thus making it higher than SCE’s bill by approximately 8.8% • SCE has forecasted that their power charge indifference adjustment (PCIA) will reduce by 25%; this will have a net customer bill reduction of $5 or 3%, thereby reducing the overall increase of $14 down to $9 o After the 30% generation rate increase and the PCIA 25% reduction, the bill will average $161, or a 10% increase in the average monthly bill Confidential 9/30/21 8 | Page Bill Forecast With BPROUD Generation Rates Increasing By 30% and PCIA decreasing by 25% (SCE, BPROUD) SCE California Alternate Rates for Energy (CARE) Considerations • 45% of the City’s BPROUD Program customers are on the SCE CARE rate; SCE CARE rate customers pay the same generation rate, but get significantly discounted Service Delivery rates and surcharges • A 30% Generation Rate increase and a SCE Service Delivery Rate increase of 9% would yield a $17 or 16% monthly increase to CARE customers • After the forecasted SCE surcharge decrease of 25%, the CARE rate customers will have a net monthly increase of $13 or 12% on their monthly bill, down from the forecasted $118 to $114. Bill Forecast For CARE Customers With BPROUD Generation Rates Increasing By 30% and PCIA decreasing by 25% (SCE, BPROUD) SCE CARE BPROUD CARE Current Rates BPROUD If 30% Generation Increase & Service Delivery Increase of 9% BPROUD PCIA 25% Reduction 2022 Generation Rate $0.096 $0.067 $0.0872 SCE Delivery Rate $0.078 $0.078 $0.085 Surcharges $0.000 $0.026 $0.026 $0.020 Total Costs KWh $0.173 $0.171 $0.198 $0.191 Average Monthly Bill $103 $101 $118 $114 BPROUD Increases 16%12% Confidential 9/30/21 9 | Page Cost of Terminating the City’s BPROUD Program and Returning Customers to SCE • In the presentation made to Baldwin Park in April 2021, CalChoice outlined potential losses that range up to $9.7M o Much of the losses would result from the 36 long-term contracts that the City holds; it would be required to sell them back to the market which would depend on the market conditions at the time o Approximately $2.4M were related to losses associated with not increasing generation rates, and should not be included in the costs of terminating the City’s BPROUD Program o Approximately $2.7M were related to a CPUC ruling which will not be made until 2025; this should also not be included if the costs of terminating the City’s BPROUD Program takes place before that time • In summary, if the City’s BPROUD Program terminates its CCA, the City could lose up to $4.6M; this loss is not related to the cost of the City not increasing its generation rates Future Rate Payer Options and Considerations • All options have risks associated with them. Does one increase the generation rates to recoup all losses but lose credibility from customers, does one hope that generation costs will not exponentially continue to increase, or does one get out as soon as possible to avoid future risks? Scenarios Based on Timing, Rate Increases, CalChoice Contracts, and Recouping All Losses • The range between best-case and worst-case scenario is $374,596 and -$7,665,237 o Best-case being April 2023, 30% rate increase, and contract gains of 10% and o Worst-case being April 2023, no rate increases, and contract losses of 25% • From the scenarios listed above the City must either o Increase Generation Rates by 30% or o De-certify its CCA as soon as possible • Before a decision can be made it must be clear that o The City can exit its contract with CalChoice before its term limit of August 2022 and o It must be clear what the SCE re-entry fees will be. These fees have not been calculated as they depend on further negotiations with SCE. SCE has indicated that the fees are dependent on the cost of purchasing long-term contracts to cover customer load Soonest Re-entry to SCE Feb 2022 CalChoice Term Expires August 2022 First In The Green Apr-23 Worst case: No rate increase and generation contract losses of 25%-4,954,136 -5,469,279 -7,665,237 Likely case: No rate increase and no generation contract losses -2,954,136 -3,469,279 -5,665,237 Possible case: 30% rate increase and no generation contract losses -1,854,436 -851,903 -425,404 Best case: 30% rate increase and generation contract gains of 10%-1,054,436 -51,903 374,596 Confidential 9/30/21 10 | Page Fortunately, SCE indicates that Rule 23 requirements of a one year advanced notice will not be required, that re-entry could occur as soon as February 2022, and that there would be no extra procurement fees if re- entered after March 2022 o Lastly, CalChoice continues to purchase generation contracts on behalf of the City which will impact the final inventory of contracts that must be addressed if the City reverts to SCE • If the City decides to de-certify, not increase rates, and revert to SCE in February 2022 it will reduce all future risks of generation price increases but could take a one-time hit between -$2.95M and -$4.95 o The biggest variable will be the price the City can sell its existing contracts, which will be based on the market conditions at the time of the sale. Recommendations Being an electricity provider is an extremely complicated and risky endeavor in these times where electricity costs continue to rise. With this new horizon in mind, following are Cordoba’s recommendations: 1. De-certify BPROUD and decide to go back to SCE based on the best re-entry fees, possibly as early as February 2022. The total costs will need to be assessed once a decision has been made 2. From a financial perspective, Generation Rates should be increased by 30% (9% on a customer bill), yielding a savings of $1.1M 3. From a customer perspective, while no one likes to see increases, the City has been absorbing significant costs thereby providing customers significant savings for several months 4. After the four months of BPROUD’s higher rates, customers would go back to SCE and would not see a noticeable increase, if any 5. Assist CARE customers (45% of customer base) with additional communications and programs to help them manage their bills; for example, the Arrears Management Program (AMP), or SCE’s payment arrangements. Exhibit - A Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Revenue Revenue at Current Rates 588,656 961,340 1,182,247 1,053,053 792,880 624,314 611,428 647,480 621,210 591,739 567,177 562,403 726,427 970,328 Revenue w/30% Increase Effective 9/1/21 575,323 961,340 1,182,247 1,053,053 927,670 1,102,295 794,857 841,724 807,572 769,261 737,329 731,124 944,355 1,261,427 (From 0.06708/kwh to 0.08720/kwh) Total Expenses Total Power Supply Costs/Admin Expenses 799,229 1,522,948 1,876,594 1,786,983 1,126,452 783,749 699,829 932,032 877,917 810,343 819,299 788,400 817,843 991,271 Net Position Net Position at Current Rates (Short Fall)(210,573) (561,608) (694,347) (733,930) (333,571) (159,436) (88,401) (284,553) (256,708) (218,603) (252,122) (225,997) (91,417) (20,942) Actual General Fund Transfers 212,568 500,000 500,000 Projected General Fund Transfers 813,588 333,571 159,436 88,401 284,553 256,708 218,603 252,122 225,997 91,417 20,942 Net Position w/30% Increase Effective 9/1/21 (210,573) (561,609) (694,347) (733,930) (198,782) 318,546 95,028 (90,309) (70,345) (41,082) (81,969) (57,276) 126,511 270,156 Actual General Fund Transfers 212,568 500,000 500,000 Projected General Fund Transfers 813,588 198,782 90,309 70,345 41,082 81,969 57,276 City of Baldwin Park BPROUD Program Financial Projections (from July 2021 to August 2022) Based on August 23 & September 30, 2021 Data from CalChoice STAFF REPORT ITEM NO. _________19________ TO: Honorable Mayor and Members of the City Council FROM: Benjamin Martinez, Community Development Director Enriquez C. Zaldivar, Chief Executive Officer DATE: October 6, 2021 SUBJECT: Baldwin Park – 2020 Power Content Label and Attestation SUMMARY Baldwin Park Resident Owned Utility District (BPROUD) is required to submit this staff report and related meeting minutes to the California Energy Commission (CEC) per Power Source Disclosure Program regulations to demonstrate compliance. RECOMMENDATION Staff recommends that Council provide the attestation specified under California’s Power Source Disclosure (PSD) Program, which requires the governing council of a public agency providing retail electric service to endorse the accuracy of each annual report and power content label, as submitted to the California Energy Commission, for the previous year. In the case of BPROUD, such attestations will be based on the California Choice Energy Authority’s (CalChoice) technical review and will address the 2020 Annual Reports and Power Content Labels (PCL) prepared for the BPROUD community choice aggregation (CCA) program. FISCAL IMPACT None BACKGROUND California Public Utilities Code requires all retail sellers of electric energy, including BPROUD, to disclose “accurate, reliable, and simple-to-understand information on sources of energy” that are delivered to their respective customers via an annual Power Content Label (PCL). The PCL is analogous to a nutrition label, conveying information regarding the various power sources/products that are procured on behalf of each retail electricity customer. California’s retail electricity sellers, including BPROUD, will each have unique PCLs based on internally adopted procurement policies and related power purchases that were completed during the reporting year. The PCL format is highly prescriptive, offering little flexibility to retail sellers when presenting such information to customers – the CEC administers these requirements under California’s Power Source Disclosure Program. DISCUSSION Information presented in each PCL includes the proportionate share of total energy supply related to specific fuel sources/resource categories, including both renewable and conventional generating technologies. If a retail seller procures a certain percentage of its energy requirements from the market at large (meaning, sources of power that cannot be traced back to a specific generator), the PCL must identify such purchases as “unspecified sources of power”. It is very common for most retail electricity sellers to utilize “unspecified source of power.” In accordance with statewide mandates and internally adopted planning targets, BPROUD procured a substantial portion of its electric energy supply from generating resources utilizing various renewable fuel sources in 2020. Renewable fuel sources may include biomass & waste, hydroelectricity, solar, geothermal and wind. For BPROUD Smart Choice customers, 35% of total energy supply was sourced from renewable energy resources. For BPROUD Green Choice customers, 100% of energy deliveries were sourced from renewable energy resources. Recent changes to power source disclosure regulations have also altered the manner in which certain renewable energy purchases must be reported/reflected on the PCL. More specifically, “unbundled” renewable energy certificates (meaning, renewable energy attributes that are sold/purchased separately from associated electric power) must now be displayed outside the area in which “bundled” renewable energy purchases (meaning, renewable energy attributes that are sold/purchased with associated electric power) are reported. This adaptation to the PCL format may result in some customer confusion, as determining the total quantity of renewable energy purchased on behalf of each customer now requires the summation of two values: “Eligible Renewable”, plus “Percentage of Retail Sales Covered by Retired Unbundled RECs”. BPROUD is prepared to answer related question, should they arise. Consistent with applicable regulations, all customers currently enrolled in the BPROUD program will soon receive the PCL via U.S. mail. To fulfill its Power Source Disclosure Program reporting obligations for 2020, BPROUD, as a public agency, must provide the CEC with the Town Council’s attestation regarding the accuracy of information included in the annual Power Source Disclosure Report (submitted to the CEC earlier in 2021, according to the applicable reporting deadline) and PCL, consistent with the following element of PSD Program regulations. A retail supplier that is a public agency providing electric services is not required to comply with the provisions of subdivision (a)(1) if the board of directors of the public agency submits to the Energy Commission an attestation of the veracity of each annual report and power content label for the previous year. In the following excerpt from appliable regulations, subdivision (a)(1) refers to a third-party audit, which is not necessary for public agencies, including the City. While developing BPROUD’s PCL, California Choice Energy Authority (CalChoice) and its technical consultants performed a detailed review of all power purchases completed for the 2020 calendar year. The review performed by CalChoice and its technical consultants found no inaccuracies or inconsistencies in such information, which was subsequently entered in BPROUD’s annual Power Source Disclosure report(s) and PCL. To fulfill its attestation requirements for 2020, Council is being asked to provide an attestation covering both the PCL and associated Annual Report(s), as specified in the excerpt above – both elements of the PSD Program reflect information that was consistently and accurately presented for the BPROUD CCA Program. Based on reviews previously completed by staff and Cal Choice’s technical consultants, staff is requesting that your Council provide the requisite attestation at this time. Next Steps Upon approval, a copy of this staff report and related meeting minutes will be forwarded to the CEC, thereby completing BPROUD’s attestation requirements under California’s Power Source Disclosure Program for the 2020 calendar year. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. BPROUD 2020 Power Content Label 2020 POWER CONTENT LABEL Baldwin Park Resident Owned Utility District https://bproud.baldwinpark.com/ Greenhouse Gas Emissions Intensity (lbs CO2e/MWh)Energy Resources 2020 SMART CHOICE Power Mix 2020 GREEN CHOICE Power Mix 2020 CA Power Mix Eligible Renewable1 49.0% 50.0% 33.1% Biomass & Biowaste 14.7% 0.0% 2.5% 1238 472 466 Geothermal 0.0% 0.0% 4.9% Eligible Hydroelectric 0.0% 0.0% 1.4% Solar 0.0% 0.0% 13.2% Wind 34.3% 50.0% 11.1% Coal 0.0% 0.0% 2.7% Large Hydroelectric 0.0% 0.0% 12.2% Natural Gas 0.0% 0.0% 37.1% Nuclear 0.0% 0.0% 9.3% Other 0.0% 0.0% 0.2% Unspecified Power2 51.0% 50.0% 5.4% TOTAL 100.0% 100.0% 100.0% Percentage of Retail Sales Covered by Retired Unbundled RECs3:5% 50% 1The eligible renewable percentage above does not reflect RPS compliance, which is determined using a different methodology. 2Unspecified power is electricity that has been purchased through open market transactions and is not traceable to a specific generation source. 3Renewable energy credits (RECs) are tracking instruments issued for renewable generation. Unbundled renewable energy credits (RECs) represent renewable generation that was not delivered to serve retail sales. Unbundled RECs are not reflected in the power mix or GHG emissions intensities above. For specific information about this electricity portfolio, contact: Baldwin Park Resident Owned Utility District 1 (626) 214-1662 For general information about the Power Content Label, visit:http://www.energy.ca.gov/pcl/ For additional questions, please contact the California Energy Commission at: Toll-free in California: 844-454-2906 Outside California: 916-653-0237 2020 GREEN CHOICE POWER MIX 2020 SMART CHOICE POWER MIX 2020 CA Utility Average 0 200 400 600 800 1000 2020 SMART CHOICE POWER MIX 2020 GREEN CHOICE POWER MIX 2020 CA Utility Average STAFF REPORT ITEM NO. ________20_________ TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Benjamin Martinez, Community Development Director DATE: October 6, 2021 SUBJECT: First Reading of Ordinance No. 1463, Prohibiting the Sale of Flavored Tobacco Products SUMMARY A grass roots effort by residents of the City of Baldwin Park demonstrated an interest in adopting an ordinance to prohibit the sale of flavored tobacco products. The City Attorney drafted a proposed ordinance which was presented to the City Council on July 21, 2021. At that time, the City Council gave direction to staff to audit and further review the proposed ordinance in preparation for a first reading and conduct outreach to inform businesses of the proposed change. Notice of the proposed Ordinance amendment was delivered to all licensed retailers in Baldwin Park permitted to sell tobacco products on August 23, 2021. A final report was presented to the City Council on September 1, 2021 to ascertain the restrictions best suited for the Baldwin Park community; and, direction was provided by the City Council to submit the first reading of Ordinance 1463 at the next regularly scheduled City Council Meeting for approval. RECOMMENDATION Staff recommends that the City Council introduce for first reading, by title only Ordinance No. 1463 “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK CALIFORNIA (RETAIL SALES OF TOBACCO PRODUCTS) AMENDING SECTION 125.020 (REQUIREMENTS AND PROHIBITIONS) OF CHAPTER 25 OF THE CITY OF BALDWIN PARK MUNICIPAL CODE TO PROHIBIT THE SALE OF FLAVORED TOBACCO PRODUCTS” FISCAL IMPACT There is no fiscal impact to the City Council on the proposed ordinance. BACKGROUND The use of flavored tobacco products including the use of e-cigs, e-hooks, mods, tank systems and vape pens have become an epidemic among our youth and has prompted action at the federal, state and local levels. These mentholated and flavored products have been shown to be “starter” products for youth who then begin using tobacco. In response to City Council direction, the City Attorney has drafted a proposed ordinance that would prohibit the sale of flavored tobacco products after reviewing several other city model ordinances from El Monte, Alhambra, as well as the City and County of Los Angeles and working with local nonprofit organizations to review and refine the proposed ordinance. The proposed ordinance for Baldwin Park: 1. Would amend Section 125.020 of the Municipal Code to include new definitions for “Characterizing flavor,” “Electronic smoking device,” “Flavored tobacco product,” “Tobacco product,” and “Tobacco retailer.” 2. Add Subsection H to specifically prohibit the sale of any flavored tobacco product or any component, part, or accessory intended to impart or imparting a characterizing flavor in any form, to any tobacco product or nicotine delivery device. Pursuant to the direction and comments from City Council, staff audited the ordinance through an internal and external review process. After the internal review, the contents were discussed with individuals at The Wellness Center Los Angeles to gain a further understanding of what is being done in other cities to address the epidemic. After review, staff believes the ordinance is complete and ready for a first reading. Upon approval of the first reading, the Ordinance will be presented to the City Council at the next regularly scheduled meeting for adoption. ALTERNATIVE The City Council may provide further direction to staff on the proposed Ordinance Prohibiting the Sale of Flavored Tobacco. LEGAL REVIEW This proposed ordinance has been prepared by the City Attorney. ATTACHMENTS 1. Proposed Ordinance No.1463 2. Ordinance TRL Draft Model ORDINANCE NO. ______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK (RETAIL SALES OF TOBACCO PRODUCTS) AMENDING SECTION 125 (REQUIREMENTS AND PROHIBITIONS) OF CHAPTER 25 OF THE CITY OF BALDWIN PARK MUNICIPAL CODE TO PROHIBIT THE SALE OF FLAVORED TOBACCO PRODUCTS, EFFECTIVE AS OF ___________, 2021 WHEREAS, the potential failure of tobacco retailers to comply with tobacco control laws, particularly laws prohibiting the sale of tobacco products to minors, presents a threat to the public health, safety, and welfare of the residents of the City of Baldwin Park (the “City”); WHEREAS, the federal Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act), enacted in 2009, prohibited candy and fruit flavored cigarettes, largely because these flavored products were marketed to youth and young adults, and younger smokers were more likely than older smokers to have tried these products; WHEREAS, although the manufacture and distribution of flavored cigarettes (excluding menthol) are banned by federal law, neither federal law nor California law restricts the sale of menthol cigarettes or flavored non-cigarette tobacco products, such as cigars, cigarillos, smokeless tobacco, hookah tobacco, electronic smoking devices, and the solutions used in these devices; WHEREAS, flavored tobacco products are very common in California tobacco retailers as evidenced by the following: • 97.4% of stores that sell cigarettes sell menthol cigarettes; • 94.5% of stores that sell little cigars sell them in flavored varieties; • 84.2% of stores that sell electronic smoking devices sell flavored varieties; and • 83.8% of stores that sell chew or snus sell flavored varieties; WHEREAS, more than 1 in 4 stores located within 1,000 feet of California schools sell tobacco, and more than 3 out of 4 of these tobacco retailers sell flavored tobacco products (not including mentholated cigarettes); WHEREAS, mentholated and flavored products have been shown to be “starter” products for youth who begin using tobacco and that these products help establish tobacco habits that can lead to long-term addiction; WHEREAS, at least one study has found that the majority of smokeless tobacco users reported that the first smokeless product they used was mint-flavored (such as ice, mint, spearmint, or wintergreen flavors), and almost two-thirds who transitioned to daily use of smokeless tobacco products first used a mint-flavored product; WHEREAS, young people are much more likely than adults to use menthol, candy and fruit flavored tobacco products, including cigarettes, cigars, cigarillos, and hookah tobacco; WHEREAS, 70% of middle school and high school students who currently use tobacco, report using flavored products that taste like menthol, alcohol, candy, cotton candy, bubble gum, fruit, chocolate, or other sweets; WHEREAS, data from the National Youth Tobacco Survey indicate that more than two-fifths of US middle school and high school smokers report using flavored little cigars or flavored cigarettes; WHEREAS, much of the growing popularity of small cigars and smokeless tobacco is among young adults and appears to be linked to use of flavored products; WHEREAS, the Centers for Disease Control and Prevention has reported a more than 800% increase in electronic cigarette use among middle school and high school students between 2011 and 2015; WHEREAS, nicotine solutions, which are consumed via electronic smoking devices such as electronic cigarettes, are sold in dozens of flavors that appeal to youth, such as cotton candy and bubble gum; WHEREAS, the California Attorney General has stated that electronic cigarette companies have targeted minors with fruit-flavored products; WHEREAS, between 2004 and 2014 use of non-menthol cigarettes decreased among all populations, but overall use of menthol cigarettes increased among young adults (ages 18 to 25) and adults (ages 26+); WHEREAS, people ages 12 and older from communities of color are more likely to smoke mentholated cigarettes and flavored tobacco products as evidenced by the following percentages of people who smoke cigarettes reported smoking mentholated cigarettes in the last month; a. 82.6% of Black or African American individuals; b. 53.2% of Native Hawaiians or Other Pacific Islanders; c. 36.9% of individuals with multiracial backgrounds; d. 32.3% of Hispanic or Latino individuals; e. 31.2% of Asian individuals; f. 24.8% of American Indians or Alaska Natives; and g. 23.8% of White or Caucasian individuals; WHEREAS, adding menthol and other flavorings to tobacco products, such as cigarettes, little cigars, cigarillos, and smokeless tobacco, can mask the natural harshness and taste of tobacco, making these products easier to use and increasing their appeal among youth; WHEREAS, the tobacco industry has been manipulating the dose of menthol in cigarettes to ensure the uptake and continued use of tobacco, especially by young people and vulnerable populations for many years; WHEREAS, smoking mentholated cigarettes and flavored tobacco products reduces the likelihood of successfully quitting smoking; WHEREAS, the tobacco industry has a well-documented history of developing and marketing mentholated and flavored tobacco brands to communities of color and youth; WHEREAS, a review of advertising, promotions, and pack prices near California high schools found that “for each 10 percentage point increase in the proportion of Black students, the proportion of menthol advertising increased by 5.9% … the odds of a Newport [a leading brand of mentholated cigarettes] promotion were 50% higher … and the cost of Newport was 12 cents lower.” There was no such association found for non-mentholated and non-flavored cigarettes and tobacco products; WHEREAS, a study found that price reduction promotions for menthol cigarettes and flavored tobacco products are disproportionately targeted to youth markets; WHEREAS, scientific reviews by the Tobacco Products Scientific Advisory Committee and the United States Federal Drug Administration found marketing of menthol cigarettes and flavored tobacco products likely increases the prevalence of smoking among the entire population, and especially among youth, African Americans, and possibly Hispanic and Latino individuals; WHEREAS, scientific studies on the impact of a national ban on menthol in cigarettes and flavored tobacco products found 36.5% of menthol and flavored tobacco products users would try to quit smoking if menthol and flavored tobacco products were banned and between 300,000 and 600,000 lives would be saved by 2050; WHEREAS, the Attorney General of State of California supports the ban against flavored tobacco products and has filed a brief with the Ninth Circuit Court in support of the ban; WHEREAS, an evaluation of New York City’s law, which prohibits the sale of all flavored tobacco, excluding menthol, found that as a result of the law, youth had 37% lower odds of ever trying flavored tobacco products and 28% lower odds of ever using any type of tobacco; WHEREAS, the flavored tobacco ordinance of the City and County of San Francisco (“San Francisco”) was implemented in the fall of 2018. To date, no holder of a San Francisco tobacco retailer license is known to have gone out of business because of the flavored tobacco ordinance; and WHEREAS, the prohibitions set forth herein would still provide for the sale of tobacco-flavored tobacco products. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The recitals above are true and correct and incorporated herein by reference. SECTION 2. Section 125.020 of Chapter 25 (Tobacco Retail Licensing) of the City of Baldwin Park Municipal Code is hereby amended by the following new definitions and such Section 125.020 shall be reorganized upon the inclusion of such additional definitions to ensure that all definitions therein are set forth in alphabetical order: “Electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic smoking device includes any component, part, or accessory of the devise, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine. Electronic smoking device does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “Flavored tobacco product” means any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to, or during the consumption of, a tobacco product, including, but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, molasses, or any candy, dessert, alcoholic beverage, herb, or spice. “Tobacco product” means: 1. any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether absorbed, inhaled, or ingested by any other means, including, but not limited to, cigarettes, cigars, chewing tobacco, pipe tobacco, snuff, or snus; 2. any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or 3. any component, part, or accessory of (1) or (2) whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes. “Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. “Tobacco retailer” means any person who sells, offers for sale, or exchanges or offers to exchange for any form of consideration, tobacco products. “Tobacco retailing” shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco products sold, offered for sale, exchanged, or offered for exchange. SECTION 3. Section 125.020 of Chapter 25 of the City of Baldwin Park Municipal Code is hereby amended by the addition of a new Subsection, which shall read as follows and be set forth in alphabetical order within Section 125.020: H. Flavored tobacco product sales prohibited. It shall be unlawful for any tobacco retailer to sell any flavored tobacco product. I. Presumptive flavored tobacco product. A public statement or claim made or disseminated by the manufacturer of a tobacco product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such tobacco product, that such tobacco product has a taste or smell other than tobacco shall constitute presumptive evidence that the tobacco product is a flavored tobacco product. SECTION 4. Inconsistent Provisions. Any provision of the City of Baldwin Park Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance. SECTION 5. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional. SECTION 6. Publication and Effective Date. The Mayor shall sign, and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in a newspaper of general circulation within fifteen (15) days after its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of City of Baldwin Park at the regular meeting of this _____th day of ______________, 2021. By:________________________________ Mayor of the City of Baldwin Park ATTEST: By:_________________________________ City Clerk of the City of Baldwin Park § 125.010 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ARM'S LENGTH TRANSACTION. A sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm’s length transaction. CHILD-RESISTANT PACKAGING. Packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015. COUPON. Any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price. DELIVERY SALE. The sale of any tobacco product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over-the-counter sales transaction in a tobacco retail establishment. Delivery sale includes the sale of any tobacco product when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sale includes delivery by licensees or third parties by any means, including curbside pick-up. DEPARTMENT. Community Development Department, and any agency or person designated by the Chief Executive Officer to enforce or administer the provisions of this chapter. ELECTRONIC SMOKING DEVICE. Any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine. Electronic smoking device does not include drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. FLAVORED TOBACCO PRODUCT. Any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to, or during the consumption of, a tobacco product, including, but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, molasses, or any candy, dessert, alcoholic beverage, herb, or spice. FULL RETAIL PRICE. The price listed for a tobacco product on its packaging or on any related shelving, advertising, or display where the tobacco product is sold or offered for sale, plus all applicable taxes and fees if such taxes and fees are not included in the listed price. MOVABLE PLACE OF BUSINESS. Any form of business that is operated out of a kiosk, truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions. PERSON. Any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. PROPRIETOR. A person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10% or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business. RECREATION FACILITY. An area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes, and includes but is not limited to a gymnasium, playing court, playing field, and swimming pool. SELF-SERVICE DISPLAY. The open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct person-to-person transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display. SMOKING. Possessing a lighted tobacco product, lighted tobacco paraphernalia, or any other lighted weed or plant (including a lighted pipe, cigar, hookah pipe, or cigarette of any kind) and means the lighting of a tobacco product, tobacco paraphernalia, or any other weed or plant (including a pipe, cigar, hookah pipe, or cigarette of any kind). TOBACCO PARAPHERNALIA. Cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. TOBACCO PRODUCT. (1) Any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus; or (2) any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or (3) any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes. “Tobacco product” does not mean drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. TOBACCO RETAILER. Any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, tobacco products or tobacco paraphernalia. TOBACCO RETAILING. The doing of any of the activities mentioned in the definition of tobacco retailer. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. YOUTH-SERVING FACILITY. A parcel in the City of Baldwin Park that is occupied by: (1) a private or public kindergarten, elementary, middle, junior high, or high school; (2) a library open to the public; (3) a playground open to the public; (4) a youth center, defined as a facility where children, ages 6 to 17, inclusive, come together for programs and activities; (5) a recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes; (6) a park open to the public or to all the residents of a private community; (7) a licensed child-care facility or preschool [other than a small-family day care home or a large-family day care home [as defined in California Health & Safety Code § 1596.78]; § 125.020 REQUIREMENTS AND PROHIBITIONS. (A) Tobacco retailer license required. It shall be unlawful for any person to act as a tobacco retailer in the city without first obtaining and maintaining a valid tobacco retailer's license pursuant to this chapter for each location at which that activity is to occur. Tobacco retailing without a valid tobacco retailer's license is a nuisance as a matter of law. (B) Lawful business operation. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this chapter for a licensee, or any of the licensee's agents or employees, to violate any local, state, or federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing. (C) Display of license. Each tobacco retailer license shall be prominently displayed in a publicly visible location at the licensed location. (D) Positive identification required. No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of 27 years without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under state law to purchase and possess the tobacco product or tobacco paraphernalia. (E) Minimum age for persons selling tobacco. No person who is younger than the minimum age established by state law for the purchase or possession of tobacco products shall engage in tobacco retailing. (F) False and misleading advertising prohibited. A tobacco retailer or proprietor without a valid tobacco retailer license, including, for example, a person whose license has been revoked: (G) Smoking prohibited. Smoking, including smoking for the purpose of sampling any tobacco product, is prohibited within the indoor area of any retail establishment licensed under this chapter. Smoking is also prohibited outdoors within 25 feet of any retail establishment licensed under this chapter. (H) Minimum legal sales age. No person engaged in tobacco retailing shall sell a tobacco product to a person under 21 years of age. § 125.021. SALE OF FLAVORED TOBACCO PRODUCTS PROHIBITED. (A) Flavored tobacco product sales prohibited. It shall be unlawful for any tobacco retailer to sell any flavored tobacco product. (B) Presumptive flavored tobacco product. A public statement or claim made or disseminated by the manufacturer of a tobacco product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such tobacco product, that such tobacco product has a taste or smell other than tobacco shall constitute presumptive evidence that the tobacco product is a flavored tobacco product. § 125.022. TOBACCO PRODUCT PRICING AND PACKAGING. (A) Packaging and labeling. No tobacco retailer shall sell any tobacco product to any consumer unless the tobacco product: (1) is sold in the manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child-resistant packaging requirements. (B) Display of price. The price of each tobacco product offered for sale shall be clearly and conspicuously displayed on the tobacco product or on any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale. (C) Distribution of tobacco samples or promotional items. It is unlawful for any person to distribute free or nominally priced tobacco products. (D) Prohibition of tobacco coupons and discounts. No tobacco retailer shall provide any free or discounted item to a consumer in consideration for the purchase of any tobacco product. § 125.030 LIMITS ON ELIGIBILITY FOR A TOBACCO RETAILER LICENSE. (A) Mobile vending. No license may be issued to authorize tobacco retailing at other than a fixed location. For example, tobacco retailing by persons on foot or from vehicles is prohibited. (B) Residential areas. No license may be issued to authorize tobacco retailing at any location that is exclusively zoned for residential uses (R-1, RG or R3 zones). (C) Proximity to youth-oriented facilities. No license may issue, and no existing license may be renewed, to authorize tobacco retailing within [ 1000 ] feet of a youth- oriented facility as measured by a straight line from the nearest point of the property line of the parcel on which the youth-oriented facility is located to the nearest point of the property line of the parcel on which the applicant’s business is located. § 125.040 APP LICATION PROCEDURE. (A) (1) Application for a tobacco retailer's license shall be submitted in the name of each proprietor proposing to conduct tobacco retailing and shall be signed by each proprietor or an authorized agent thereof. (2) It is the responsibility of each proprietor to be informed regarding all laws applicable to tobacco retailing, including those laws affecting the issuance of a tobacco retailer's license. No proprietor may rely on the issuance of a license as a determination by the city the proprietor has complied with all laws applicable to tobacco retailing. A license issued contrary to this chapter, contrary to any other law, or on the basis of false or misleading information supplied by a proprietor shall be revoked pursuant to § 125.080 of this chapter. Nothing in this chapter shall be construed to vest in any person obtaining and maintaining a tobacco retailer's license any status or right to act as a tobacco retailer in contravention of any provision of law. (3) All applications shall be submitted on a form supplied by the Department and shall contain the following information: (a) The name, address, and telephone number of each proprietor of the business seeking a license. (b) The business name, address, and telephone number of the single, fixed location for which a license is sought. (c) A single name and mailing address authorized by each proprietor to receive all communications and notices (the "authorized address") required by, authorized by, or convenient to the enforcement of this chapter. If an authorized address is not supplied, each proprietor shall be understood to consent to the provision of notice at the business address specified in division (b) above. (d) Proof the location for which a tobacco retailer's license is sought has been issued a valid state tobacco retailer's license by the California Board of Equalization. (e) Whether or not any proprietor or any agent of the proprietor has admitted violating, or has been found to have violated, this chapter and, if so, the dates and locations of all such violations within the previous five years. If person filing the application for a tobacco retailer does not disclose past violations and a license is issued, the license can be revoked as soon as the past violations are discovered pursuant to § 125.110 below. (f) Such other information as the Chief Executive Officer deems necessary for the administration or enforcement of this chapter as specified on the application form required by this section. (B) A licensed tobacco retailer shall inform the Department in writing of any change in the information submitted on an application for a tobacco retailer's license within ten business days after a change. (C) All information specified in an application pursuant to this section shall be subject to disclosure under the California Public Records Act (California Government Code § 6250 et seq.) or any other applicable law, subject to the laws' exemptions. § 125.050 ISSUANCE OF LICENSE. Upon the receipt of a completed application for a tobacco retailer's license and the license fee required by this chapter, the Department shall issue a license unless substantial evidence demonstrates that one or more of the following bases for denial exist: (A) The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this chapter. (B) The application seeks authorization for tobacco retailing at a location for which this chapter prohibits issuance of tobacco retailer licenses. However, this subparagraph shall not constitute a basis for denial of a license if the applicant provides the city with documentation demonstrating by clear and convincing evidence the applicant has acquired or is acquiring the location or business in an arm’s length transaction. (C) The application seeks authorization for tobacco retailing for a proprietor to whom this chapter prohibits a license to be issued. (D) The application seeks authorization for tobacco retailing that is prohibited pursuant to this chapter, that is unlawful pursuant to this code, including, without limitation, the zoning ordinance, building code, and business license tax ordinance, or that is unlawful pursuant to any other law. § 125.060 INTENTIONALLY LEFT BLANK § 125.070 LICENSES NONTRANSFERABLE. (A) A tobacco retailer's license may not be transferred from one person to another or from one location to another. A new tobacco retailer's license is required whenever a tobacco retailing location has a change in proprietor(s). (B) Notwithstanding any other provision of this chapter, prior violations at a location shall continue to be counted against a location and license ineligibility periods shall continue to apply to a location unless: (1) The location has been fully transferred to a new proprietor or fully transferred to entirely new proprietors; and (2) The new proprietor(s) provide the city with clear and convincing evidence the new proprietor(s) have acquired or is acquiring the location in an arm’s length transaction. § 125.080 LICENSE CONVEYS A LIMITED, CONDITIONAL PRIVILEGE. Nothing in this chapter shall be construed to grant any person obtaining and maintaining a tobacco retailer's license any status or right other than the limited conditional privilege to act as a tobacco retailer at the location in the city identified on the face of the permit. For example, nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of, any other provision of applicable law, including but not limited to, any provision of this Code, including, without limitation, the zoning ordinance, building codes, and business license tax ordinance, or any condition or limitation on smoking in an enclosed place of employment pursuant to Cal. Lab. Code § 6404.5. For example, obtaining a tobacco retailer license does not make the retailer a "retail or wholesale tobacco shop" for the purposes of Cal. Lab. Code § 6404.5. § 125.090 FEE FOR LICENSE. The fee to issue or to renew a tobacco retailer's license shall be established from time to time by resolution of the City Council. The fee shall be annual and shall be calculated so as to recover the cost of administration and enforcement of this chapter, including, for example, issuing a license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this chapter. All fees and interest upon proceeds of fees shall be used exclusively to fund the program. Fees are nonrefundable except as may be required by law. § 125.100 COMPLIANCE MONITORING. (A) Compliance with this chapter shall be monitored by the Department. In addition, any peace officer may enforce the penal provisions of this chapter. The city may designate any number of additional persons to monitor compliance with this chapter. (B) The Department or other person designated to enforce the provisions of this chapter shall check the compliance of each tobacco retailer at least as often as established by the Chief Executive Officer which could be as often as three times per a 12-month period. The Department may check the compliance of tobacco retailers previously found to be in compliance a fewer number of times so the Department may check the compliance of new licensees and tobacco retailers previously found in violation of the licensing law more frequently. Nothing in this section shall create a right of action in any licensee or other person against the city or its agents. (C) Compliance checks shall be conducted so as to allow the Department to determine, at a minimum, if the tobacco retailer is conducting business in a manner that complies with laws regulating youth access to tobacco. When the Department deems appropriate, the compliance checks shall determine compliance with other laws applicable to tobacco retailing. (D) The city shall not enforce any law establishing a minimum age for tobacco purchases or possession against a person who otherwise might be in violation of such law because of the person's age (hereinafter "youth decoy") if the potential violation occurs when: (1) The youth decoy is participating in a compliance check supervised by a peace officer or a code enforcement official of the city; (2) The youth decoy is acting as an agent of a person designated by the city to monitor compliance with this chapter; or (3) The youth decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the Los Angeles County Health Department or the California Department of Health Services. § 125.110 REVOCATION OF LICENSE. (A) Revocation of license for violation. In addition to any other penalty authorized by law, a tobacco retailer's license shall be revoked if any court of competent jurisdiction determines, or the Department finds based on a preponderance of the evidence, after the licensee is afforded notice and an opportunity to be heard, the licensee, or any of the licensee's agents or employees, has violated any of the requirements, conditions, or prohibitions of this chapter or has pleaded guilty, "no contest" or its equivalent, or admitted to a violation of any law designated in § 125.020 above. (B) New license after revocation. (1) After revocation for a first violation of this chapter at a location within any five- year period, no new license may issue for the location until ten days have passed from the date of revocation. (2) After revocation for a second violation of this chapter at a location within any five-year period, no new license may issue for the location until 30 days have passed from the date of last revocation. (3) After revocation for a third violation of this chapter at a location within any five- year period, no new license may issue for the location until 90 days have passed from the date of last revocation. (4) After revocation for four or more violations of this chapter at a location within any five-year period, no new license may be issued for the location until five years have passed from the date of the last revocation. (C) Appeal of revocation. A decision of the Department to revoke a license is appealable to the Chief Executive Officer and must be filed with City Clerk within ten days after mailing of the Department's decision. If such an appeal is made, then it shall stay enforcement of the appealed action. An appeal to the Chief Executive Officer is not available for a revocation made pursuant to division (D) below. The decision by the Chief Executive Officer shall be the final decision of the city. (D) Revocation of license wrongly issued. A tobacco retailer's license shall be revoked if the Department finds, after the licensee is afforded notice and an opportunity to be heard, one or more of the bases for denial of a license under § 125.050 existed at the time application was made or at any time before the license issued. The decision by the Department shall be the final decision of the city. Such a revocation shall be without prejudice to the filing of a new license application. § 125.120 TOBACCO RETAILING WITHOUT A LICENSE. (A) In addition to any other penalty authorized by law, if a court of competent jurisdiction determines, or the Department finds based on a preponderance of evidence, after notice and an opportunity to be heard, any person has engaged in tobacco retailing at a location without a valid tobacco retailer's license, either directly or through the person's agents or employees, then the person shall be ineligible to apply for, or to be issued, a tobacco retailing license as follows: (1) After a first violation of this section at a location within any five-year period, no new license may be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 30 days have passed from the date of the violation. (2) After a second violation of this section at a location within any five-year period, no new license may be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until 90 days have passed from the date of the last violation. (3) After of a third or subsequent violation of this section at a location within any five-year period, no new license may be issued for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until five years have passed from the date of the last violation. (B) Tobacco products and tobacco paraphernalia offered for sale or exchange in violation of this section are subject to seizure by the Department or any peace officer and shall be forfeited after the licensee and any other owner of the tobacco products and tobacco paraphernalia seized is given reasonable notice and an opportunity to demonstrate the tobacco products and tobacco paraphernalia were not offered for sale or exchange in violation of this chapter. The decision by the Department or peace officer may be appealed pursuant to the procedures set forth in § 125.110(C). Forfeited tobacco products and tobacco paraphernalia shall be destroyed after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to California Code of Civil Procedure § 1094.6 or other applicable law has expired without the filing of a lawsuit or, if such a suit is filed, after judgment in that suit becomes final. (C) For the purposes of the civil remedies provided in this chapter, each day on which a tobacco product or tobacco paraphernalia is offered for sale in violation of this chapter or each individual retail tobacco product and each individual retail item of tobacco paraphernalia that is distributed, sold, or offered for sale in violation of this chapter shall constitute a separate violation of this chapter. § 125.130 ENFORCEMENT. (A) The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (B) Whenever evidence of a violation of this chapter is obtained in any part through the participation of a person under the age of 18 years old, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. (C) Each violation of this chapter is subject to a civil action brought by the City Attorney, punishable by a civil fine not less than $250 and not exceeding $1,000 per violation. (D) Each violation of this chapter may, in the discretion of the City Attorney, be prosecuted as an infraction or a misdemeanor when the interests of justice so require. (E) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this chapter shall also constitute a violation of this chapter. (F) Each violation of this chapter is hereby declared to be a public nuisance. (G) In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the City Attorney, including, for example, administrative citation, judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. ITEM NO. 21 STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 6, 2021 SUBJECT: Approval of Logo and Selection of Name for Baldwin Park Tiny Home Village SUMMARY The purpose of this report is for the City Council to consider approval of logo and selection of name for the Baldwin Park Tiny Home Village. RECOMMENDATION Staff recommends that the City Council approve a logo and select name for Baldwin Park Tiny Home Village. FISCAL IMPACT There is no fiscal impact to the City. BACKGROUND At their July 7, 2021, City Council Meeting, City Council approved the Emergency Non-Congregate Shelter Pilot Project in partnership with the San Gabriel Valley Regional Housing Trust (SGVRHT) and San Gabriel Valley Council of Governments (SGVCOG) to develop a tiny home pilot program to help meet the immediate needs of individuals experiencing homelessness. At their August 4, 2021, City Council Study Session, City Council selected and approved a color palette scheme for the site that aligns with earth tone shades and community aesthetics that were prioritized during the community input process for the project. Inspired by the color palette selection of the site, a variety of marketing design logos were created to incorporate an official naming and color palette logo selection. The selected logo and name will be featured in all future project marketing and public relations materials including on site decorative displays, website, news releases, social media ads/posts, and on a variety of mixed media materials associated with the project. Listed below are the color options and name proposals; Color Options • Red with earth tones colors • Blue with earth tones colors Name Options • Village of Hope Tiny Homes Community • Villa of Hope Tiny Homes Community • Esperanza Tiny Home Community The Baldwin Park site will be located at 14173 Garvey Avenue and will have 25 tiny home units to house individuals experiencing homelessness in Baldwin Park. Participants will be selected through local street outreach and will be assigned a unit for the duration of their stay, avoiding the daily lines associated with traditional emergency shelter. The site will provide bridge housing, a temporary placement, while connecting clients to permanent housing. The target length of stay will be 90 days, allowing the site to serve up to 100 individuals in a year. The site will have privacy fencing and secured entry for the benefit of participants and neighbors. Each unit provides a bed, shelves, overhead light, AC/heat, an outlet, and a door that locks. The site will also provide shared restroom, shower, and laundry facilities as well as a communal meal space offering participants increased access to hygiene and a sense of community. ALTERNATIVES The alternative would be to provide alternative direction. LEGAL REVIEW Legal review is not required. ATTACHMENTS 1). Exhibit 1 - Blue Options 2). Exhibit 2 - Red Options EsperanzaCITY OF BALDWIN PARK Tiny Homes Community Villa of opeCITY OF BALDWIN PARK Tiny Homes Community Village of opeCITY OF BALDWIN PARK Tiny Homes Community Exhibit 1 EsperanzaCITY OF BALDWIN PARK Tiny Homes Community Villa of opeCITY OF BALDWIN PARK Tiny Homes Community Village of opeCITY OF BALDWIN PARK Tiny Homes Community Exhibit 2