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HomeMy WebLinkAbout2018 12 05/=� BALDWIN PARK CITY COUNCIL REGULAR MEETING DECEMBER 5, 2018 7:00 PM COUNCIL CHAMBER 14403 E. Pacific Avenue Baldwin Park, CA 91706 (626) 960-4011 HUB OF, THE SAN/Ga,BRIEL nQ 1%AI LEY j Manuel Lozano - Mayor Ricardo Pacheco - Mayor Pro Tem Alejandra Avila - Council Member Monica Garcia - Council Member Paul C. Hernandez - Council Member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DE APAGAR SUS TELEFONOS CELULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS The public is encouraged to address the City Council or any of its Agencies listed on this agenda on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council or any of its Agencies, you may do so during the PUBLIC COMMUNICATIONS period noted on the agenda. Each person is allowed three (3) minutes speaking time. A Spanish speaking interpreter is available for your convenience. COMENTARIOS DEL PUBLICO Se invita al publico a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda, para hablar sobre cualquier asunto publicado en la agenda o cualquier tema que este bajo su jurisdiccion. Si usted desea la oportunidad de dirigirse al Concilio o alguna de sus Agencias, podra hacerlo durante el periodo de Comentarios del Publico (Public Communications) anunciado en la agenda. A cada persona se le permite hablar por tres (3) minutos. Hay un interprete para su conveniencia. lief, vlotl n publlr r , (r'd rk"rinng lea rl�sa� f()r (.)pen sh' n ()[ (-F„g uk")rrnr r ling ()[ c ll�C(') fnCil r`i;=,lrrF,Auted lc) s rff”' C(')ursCiI , /")OUr s'nee n g vv/11 be, [(,)r-pub11 In,s;f er:11(,)n C lf' 1����lall lir lt�srs �;Il„� �,lrs� rt'ess office at 14403 1 , l Iac fic Avenue, Warr 1 loor (Juring norn"ial 1,, ussAirrsWti s t,so rrs (fEvlrrirr es� 7” x.030 6,00 p,ar ,) CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL CITY COUNCIL REGULAR MEETING — 7:00 PM Council Members: Alejandra Avila, Monica Garcia, Paul C. Hernandez, Mayor Pro Tem Ricardo Pacheco and Mayor Manuel Lozano REPORT FROM CLOSED SESSION ANNOUNCEMENTS PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS • None PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons, or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2] ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tome accion en algOn asunto a menos que sea incluido en la agenda, o a menos que exista algana emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciones o preguntas hechas por personas, o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideracion en juntas proximas. [Codigo de Gobierno §54954.2] CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. 1. Warrants and Demands Staff recommends that Council ratify the attached Warrants and Demands Register. 2. Meeting Minutes Staff recommends that Council receive and file the following Meeting Minutes: City Council Agenda A. Meeting Minutes of the Special Study Session City Council Meeting held on November 14, 2018. B. Meeting Minutes of the Special City Council Meeting held on November 14, 2018. Page 2 3. Rejection of Claims Staff recommends that Council reject the following claim(s) and direct staff to send appropriate notice of rejection to claimant(s)- Hernandez, Maria Claimant alleges the city is responsible for property damage during the downtown street market located within Morgan Park. Premier Auto Credit Claimant alleges the police department illegally towed and impounded his vehicle This is government claim, 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 Councilmembers 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 Councilmembers. 4. Second Reading of Ordinance No. 1430 Entitled: "An Ordinance of the City Council of the City of Baldwin Park, California, Amending the Baldwin Park Municipal Code, Title XV, Land Usage, Chapter, 153, Zoning Code, Sections 153.040.020, 153.120.350, and 153.150.100 and 153.220.050 Relating to Accessory Dwelling Units — Zoning Code Amendment Case Number AZC 186" Staff recommends that the City Council waive reading and adopt Ordinance No. 1430, entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA AMENDING THE BALDWIN PARK MUNICIPAL CODE, TITLE XV, LAND USAGE, CHAPTER, 153, ZONING CODE, SECTIONS 153.040.020, 153.120.350, AND 153.150.100, AND 153.220.050 RELATING TO ACCESSORY DWELLING UNITS — ZONING CODE AMENDMENT CASE NUMBER AZC 186 ". 5. Second Reading of Ordinance No. 1431 Entitled: "An Ordinance of the City Council of the City of Baldwin Park, California, Regulating the Business of Sidewalk Vending as Defined by State Law" Staff recommends that the City Council waive reading and adopt Ordinance No. 1431, entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW'. PUBLIC HEARING 6. Adoption of an Urgency Ordinance to Regulate Sidewalk Vending in Response to State Law SB946 (Lara) Sidewalk Vending Staff recommends that the City hold a Public Hearing and Adopt Urgency Ordinance No. 1432, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW'. City Council Agenda Page 3 7. A Request to the City Council from the Planning Commission on an Amendment to Development Agreement 18-18 to Change the Location from 14712 Arrow Highway to 4802 Littlejohn Street Ste. A, for a Cannabis Cultivation and Manufacturing Facility within the I, Industrial Zone Pursuant to Ordinance 1408 (Location: 4802 Littlejohn Street Ste. A; Applicant: The Grown Folks Inc.; Case Number 18-18) Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only and waive further reading, Ordinance 1433, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE GROWN FOLKS, INC. FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLEJOHN STREET, SUITE A (APN 8535-023-011) WITHIN THE CITY OF BALWIN PARK". 8. A Request to the City Council from the Planning Commission on an Amendment to Development Agreement 18-19 to Change the Location from 4276 Elton Street to 4802 Littlejohn Street Ste. B, for a Cannabis Cultivation and Manufacturing Facility within the I, Industrial Zone Pursuant to Ordinance 1408 (Location: 4802 Littlejohn Street Ste. B; Applicant: W &F International Corp; Case Number 18-19) Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only and waive further reading, Ordinance 1434, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH W & F INTERNATIONAL CORP. FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLEJOHN STREET, SUITE B (APN 8535-023-011) WITHIN THE CITY OF BALDWIN PARK". CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATIONS • Mayor Lozano requests City Council discussion and direction regarding options for the State of the City program including the option of partnering with the Business Association or holding a City Sponsored event. ADJOURNMENT City Council Agenda Page 4 CERTIFICATION I, Lourdes Morales, Chief Deputy City Clerk of the City of Baldwin Park hereby certify that, under penalty of perjury under the laws of the State of California, the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 29th day of November, 2018. Lourdes Morales Chief Deputy City Clerk PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2nd Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or via e-mail at Imorales(cr�.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) City Council Agenda Page 5 ITEM NO. I TO: Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance DATE: December 5, 2018 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 payrolls for the last periods were $1,082,187.99 and the attached General Warrants Register was $1,375,526.64 for a total amount of $2,457,714.63. 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 payrolls of the City of Baldwin Park consists of check numbers 199821 to 199884. Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 10325 to 10872 for the period of October 21, 2018 through November 17, 2018, inclusive; these are presented and hereby ratified in the amount of $1,082,187.99. 2. General Warrants, with the bank drafts in the amount of $323,371.43 and checks from 221907 to 222199 in the amount of $1,052,155.21 for the period November 6, 2018 to November 27, 2018, inclusive; in the total amount of $1,375,526.64 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. Expense Approval Report Attachment 1 Expense Approval Report tb L O C N Q ^s Z N co ;-4 > N O L C) Q ^ ri i� f Q a-+ t0 0 E � a Q X W V M c O O O O V N oo . 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December 5, 2018 %,ANUp SUBJECT: Meeting Minutes SUMMARY The City Council held a Special City Council Meeting on November 14, 2018. RECOMMENDATION Staff recommends that the City Council approve meeting minutes for the following City Council Meetings: • Special Study Session Meeting of November 14, 2018 • Special Meeting of November 14, 2018 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. ATTACHMENTS 1. Special Study Session Minutes of November 14, 2018 2. Special Meeting Minutes of November 14, 2018 Attachment 1 Special Study Session Meeting Minutes 11/14/18 MINUTES BALDWIN PARK CITY COUNCIL STUDY SESSION AND SPECIAL MEETING November 14, 2018, 5:30 P.M. 31d Floor Conference Room 307 -14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order at 6:25 p.m. by Mayor Lozano. ROLL CALL PRESENT: Council Member Cruz Baca Mayor Pro Tem Ricardo Pacheco Mayor Manuel Lozano ABSENT: Council Member Monica Garcia Council Member Susan Rubio PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 6:26 p.m. Seeing no one wishing to speak, Public Communications closed at 6:26 p.m. OPEN SESSION 1. Community Choice Aggregation Technical Study & Implementation Plan Barbara Boswell Chief Executive Officer announced the presentation would be held over. RECESS TO CLOSED SESSION 2. Real Property Negotiations Pursuant to Government Code §54956.8: A. Property: 4145 Puente Avenue (CAN 17-01), Negotiating Parties: City of Baldwin Park and Edward Avakyan, Jenome Research B. Property: 14551 Joanbridge Street (CAN 17-02) Negotiating Parties: City of Baldwin Park and Lih Ping Henry Liou, Baldwin Park TALE Corp. Special Meeting of 11/14/18 Page 1 of 4 C. Property: 4150 Puente Avenue (CAN 17-06) Negotiating Parties: City of Baldwin Park and Shaun Bershatski, RUKLI, Inc. D. Property: 13111 Spring Street & 428 Cloverleaf Drive (CAN 17- 07) Negotiating Parties: City of Baldwin Park and rifling Hong Huang, 428 Cloverleaf, LLC. <Y E. Property: 5117 Calmview Avenue (CAN 17-08) Negotiating Parties: City of Baldwin Park and Victor Chevez and Helen Chau, Casa Verde Group F. Property: 13467 Dalewood Street (CAN 17-09) Negotiating Parties: City of Baldwin Park and Darrin Oganesian and Ryan Oganesian, RD Baldwin Park G. Property: 14837 & 14841 Ramona Boulevard (CAN 17-10) Negotiating Parties: City of Baldwin Park and Phil Reyes, and Alexis Reyes, Organic Management Solutions, LLC. H. 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 I. Property: 15023 Ramona Boulevard (CAN 17-13) Negotiating Parties: City of Baldwin Park and Shaun Szameit, Joshua Pierce and Kevin Huebner, Kultiv8 Group, LLC. J. Property: 4621 Littlejohn Street (CAN 17-15) Negotiating Parties: City of Baldwin Park and Teresa Tsai, GSC Capital Group K. Property: 5157 Azusa Canyon Road (CAN 17-17) Negotiating Parties: City of Baldwin Park and Mike Sandoval and Ed Barraza, Elite Green Cultivators L. Property: 5175 Commerce Drive (CAN 17-18) Negotiating Parties: City of Baldwin Park and Linda Thong, Pacific Cultivation, LLC. M. Property: 13450 Brooks Drive, Unit A & C (CAN 17-27) Negotiating Parties: City of Baldwin Park and Jonathan Yuan Kai Lee, Jefferson Liou, and Jerrell Austin Shepp, Cloud Control, Inc. Special Meeting of 11/14/18 Page 2 of 4 N. Property: 4802 Littlejohn Street (CAN 17-28) Negotiating Parties: City of Baldwin Park and Marco Perez and Ren Yoneyama, VRD, Inc. O. Property: 13460 Brooks Drive (CAN 17-31) Negotiating Parties: City of Baldwin Park and Sigrid Lopez and Artem Karapetyan, Green Health Industries, LLC. 3. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Potential Case(s): Three (3) 4. Conference With Legal Counsel—Existing Litigation Pursuant to paragraph (1) of subdivision (d) of Government Code Section 54956.9: Case Name: Hadsell v. City of Baldwin Park Case No. BC548602 Case Name: City of Baldwin Park v. City of Irwindale Case No. BS163400 Case Name: Basilisa Hernandez v. City of Baldwin Park, et al. Case No. BC635494 Case Name: David Garcia v. City of Baldwin Park, Case No. BC709009 DOES 1 to 20, Inclusive Defendants, Dept. 4, Los Angeles Superior Court, Central District ADJOURNMENT There being no further business, motion was made by Mayor Lozano, seconded by Council Member Baca, to adjourn the meeting at 6:27 p.m. Special Meeting of 11/14/18 Page 3 of 4 REPORT ON CLOSED SESSION* City Attorney Robert Tafoya announced the City Council unanimously agreed to settle the Hernandez vs. the City of Baldwin Park matter in the amount of $25,000. Mayor ATTEST: City Clerk Special Meeting of 11/14/18 Page 4 of 4 Attachment 2 Special Meeting Minutes 11/14/18 MINUTES BALDWIN PARK CITY COUNCIL SPECIAL MEETING NOVEMBER 14,2018,7:00 P.M. COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 These minutes are presented in Agenda order. Various announcements or discussions may have occurred before or after the title under which they are presented. CALL TO ORDER The meeting was called to order by Mayor Lozano at 7:00 p.m. INVOCATION The invocation was provided by Pastor Flores. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Lozano. ROLL CALL MEMBERS PRESENT: Council Member Cruz Baca Mayor Pro Tem Ricardo Pacheco Mayor Manuel Lozano MEMBERS ABSENT: Council Member Monica Garcia Council Member Susan Rubio MOTION: It was moved by Mayor Lozano, seconded by Council Member Baca to excuse Council Member's Garcia and Rubio for their absence. REPORT ON CLOSED SESSION City Attorney Robert Tafoya announced the City Council unanimously agreed to settle the Hernandez vs. the City of Baldwin Park case in the amount of $25,000. ANNOUNCEMENTS Council Member Baca requested the meeting be adjourned in memory of her uncle Ralf Contreras. Mayor Pro Tem Pacheco thanked staff for a job well done with the annual parade. Council Member Baca thanked the City for allowing the Women's Club to use the City Trolley for their event. Mayor Lozano requested the meeting be adjourned in memory of Antonio Gonzalez. PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS • Introduction of new staff, City Building Official Long Tang and City Engineering Manager John Beshay Mayor Lozano introduced the newly selected employees to the City of Baldwin Park • Honoring the Service and Retirement of Assistant Chief Jim Enriquez, Los Angeles County Fire Department Mayor Lozano and the City Council provided Mr. Enriquez with a plaque in honor of his service to the City of Baldwin Park. Mr. Enriquez expressed his appreciation and thanked the City and its members for their continuous support. PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 7:21 p.m. and noted that each speaker is permitted a total of three (3) minutes to speak. Albert Reyes commented on the danger posed by a conversion of a crosswalk rather than a driveway and suggested signs be erected to prevent collisions. Thomas Carrey commented on zoning changes made to residential areas and on the increased traffic accidents attributed to recreational marijuana. Margarita Vargas expressed concerns regarding bulky items not being picked -up in a timely fashion. Monica Alberts also commented on bulky item pick-up and suggested the city advertise the waste company's information on its website. Council Member Baca and Mayor Lozano discussed issued relating to bulky items and requested they brain storm to find a more aggressive solution. Seeing no others wishing to speak, Public Communications closed at 7:32 p.m. CONSENT CALENDAR All items listed under the consent calendar are considered to be routine business by the City Council and were approved with one motion. Council pulled Item No. 6 and 9 from Consent Calendar for further discussion. MOTION: It was moved by Mayor Lozano, seconded by Mayor Pro Tem Pacheco to approve the remainder of the Consent Calendar. Motion carried by the following vote: ROLL CALL: AYES: NOES: ABSENT: ABSTAIN: Baca, Lozano, and Pacheco None Garcia and Rubio None Special Meeting of 11/14/18 Page 2 of 7 1. WARRANTS AND DEMANDS The City Council ratifed the attached Warrants and Demands Register. 2. TREASURER'S REPORT MARCH 20117 The Council received and file the Trelasurer's Report. 3. APPROVAL OF MEETING MINUTES The City Council received and'', filed; A. Meeting Minutes of the Speciall City Council Meetings held on October 17, 2018. 4. Adopt Resolution No. 2018-300 Aggregation Program Implements The Council approve Resolution � Choice Aggregation Program Imple staff to submit the Implementation for certification. 5. Award of Bid for City Project Bicycle Safety Improvements Pr The City Council: Approving Baldwin Park Community Choice ion Plan and Statement of Intent r. 2018-300 Approving Baldwin Park Community ientation Plan and Statement of Intent and direct Ian with the California Public Utilities Commission 2018-0265 — Frazier Street Pedestrian and 1. Approved and awarded the contract to PALP, Inc. DBA Excel Paving out of Long Beach, CA in the amount of $1,024,574.00; and 2. Authorized the Mayor and City Clerk to execute the contract for Frazier Street Pedestrian and Bicycle SafetyImprovements; and 3. Authorized the Director of Finance to appropriate $72,142.60 from fund #257 — Traffic Mitigation Fees to Account #257-50-520-58100-15717. 6. Transfer of the New Public Info separate consideration) MOTION: It was moved by Council The motion died due to a lack of a MOTION: It was moved by Mayor carried (2-1) to: 1. Accept the mutual dissolut Associates; and 2. Accept the proposal Urban St for one additional year and di agreement to be executed by 3. Authorize the Finance Directo Contract (Pulled from Consent Calendar for ember Baca not to approve the item. no, seconded by Mayor Pro Tem Pacheco and n of the contract with Veronica Perez and 'ategy Group for one year with the option to renew ect City Attorney to prepare a standard consultant he Mayor; and to make any necessary budget adjustments. Special Meeting of 11/14/18 Page 3 of 7 ROLL CALL: AYES: Lozano and Pacheco NOES: Baca ABSENT: Garcia and Rubio ABSTAIN: None 7. Approve a Resolution Revising the Comprehensive City of Baldwin Park Pay Schedule to Comply with the State Minimum Wage Increase, Effective January 1, 2019, and Update the Pay Schedule to Correct a Clerical Error in the Finance Director and Human Resources Analyst I Salary The City Council approved Resolutio No. 2018-302 to update: 1. The salary ranges and ste California minimum wage in Executive Team to place inc step for their position in the hourly rate for the employee; 2. Correct a clerical error in the pay authorized in the Emplc adjust the pay rate within tl Analyst I. is for part-time employees to comply with the rease effective, January 1, 2019, and direct the ,nbent part-time employees into the closest salary yew schedule that does not result in a decreased nd lary range for Finance Director to reflect rate of e Agreement; and correct a clerical error and respective salary range for Human Resources 8. Approve and Adopt Resolution No. 2018-303, Casting a Vote for Councilmember to Serve as Bond Member to Represent Cities without Pumping Rights on the San Gabriel Basin Water Quality Authority The City Council casted its vote for Valerie Munoz and adopted Resolution No. 2018- 303, which will select such Nominee to serve as the Board Member representing cities without pumping rights on the San G briel Basin Water Quality Authority. 9. Introduction of an Ordinance to Regulate Sidewalk Vending in Response to State Law SB946 (Lara) Sidewalk Vending (Pulled from the Consent Calendar for separate consideration) Chief Executive Officer Shannon Ya explained the state law allowed for Ic MOTION: It was moved by Coun Pacheco and carried (3-0) to: Introduce for first reading, by title c entitled, "AN ORDINANCE OF THI PARK REGULATING THE BUSINE STATE LAW." Eee provided an overview of the item and further jurisdictions to regulate sidewalk vending. Member Baca, seconded by Mayor Pro Tem my and waive further reading, Ordinance 1431, CITY COUNCIL OF THE CITY OF BALDWIN SS OF SIDEWALK VENDING AS DEFINED BY Special Meeting of 11/14/18 Page 4 of 7 ROLL CALL: AYES: Baca, Lozano and Pacheco NOES: None ABSENT: Garcia and Rubio ABSTAIN: None COUNCIL ACTING AS SUCCESSOR AGENCY OF THE DISSOLVED CONSENT CALENDAR All items listed under the consent cale dar are considered to be routine business by the City Council acting as Successor Agency f the Community Development Commission and were approved with one motion. MOTION: It was moved by Mayor Lotano, seconded by Mayor Pro Tem Pacheco to approve the Consent Calendar. Motion carried by the following vote: ROLL CALL: AYES: Baca, Lozno, and Pacheco NOES: None ABSENT: Garcia and Rubio ABSTAIN: None SA -1 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Warrants and Demands The Council ratified the attached Wa rants and Demands Register. SA -2 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Treasu er's Report — September 2018 The Council received and filed the Treasurer's Report PUBLIC HEARING 10.Zoning Code Amendment No. AZ -186, an Amendment to the City Of Baldwin Park Municipal Code Chapter 153 Sections 153.040.020, 153.120.350, 153.150.100, and 153.220.050 relating to Accessory Dwelling Units Chief Executive Officer Shannon Yaluchzee provided an overview of the item followed by an introduction of the item by City Planner Ron Garcia where he explained the various regulations set by the state nd the guidelines proposed in the introduction of the ordinance below to best fit the ne;ds for the City of Baldwin Park. The Mayor opened the public hearing at 7:54 pm. Unknown speaker opposed due to the lack of a hardship clause. Thomas Carrey spoke in opposition of the item due to citywide parking issues. Special Meeting of 11/14/18 Page 5 of 7 Planning Commissioner Christopher Saenz commented on the amount of work placed on this ordinance by the Planning Commission in order to satisfy state regulations while addressing local concerns. Further discussion was held by the City Council in relation to time sensitive deadlines set by the state for approval from local jurisdictions, and concluded they would approve the ordinance as presented by staff and would later consider amendments if needed. Seeing no further speakers, the Mayor closed the public hearing at 8:11 pm. MOTION: It was moved by Council Member Baca, seconded by Mayor Pro Tem Pacheco and carried (3-0) to: Introduce Ordinance 1430 by title and waive further reading: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA AMENDING THE BALDWIN PARK MUNICIPAL CODE, TITLE XV, LAND USAGE, CHAPTER, 153, ZONING CODE, SECTIONS 153.040.020, 153.120.350, AND 153.150.100, AND 153.220.050 RELATING TO ACCESSORY DWELLING UNITS — ZONING CODE AMENDMENT CASE NUMBER AZC 186". ROLL CALL: AYES: Baca, Lozano, and Pacheco NOES: None ABSENT: Garcia and Rubio ABSTAIN: None REPORTS OF OFFICERS 11.Approval of Resolution No. 2018- 301, "A Resolution of the City Council of the City of Baldwin Park Approving the Form and Authorizing Distribution of a Preliminary Official Statement and Approving the Form and Authorizing the Execution of a Bond Purchase Agreement, all in Connection with the Offering and Sale of Taxable Pension Obligation Bonds, and Authorizing Certain Actions with Respect Thereto" MOTION: It was moved by Mayor Pro Tem Pacheco, seconded by Council Member Baca and carried (3-0) to: Approved Resolution No. 2018-301 approving the form and authorizing distribution of a preliminary official statement and approving the form and authorizing the execution of a bond purchase agreement, all in connection with the offering and sale of taxable pension obligation bonds in an amount not to exceed $55 million, and authorizing certain actions with respect thereto. ROLL CALL: AYES: NOES: ABSENT: Baca, Lozano, and Pacheco None Garcia and Rubio Special Meeting of 11/14/18 Page 6 of 7 ABSTAIN: None CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATIONS • None ADJOURNMENT There being no other business to discuss, and all other matters having been addressed, a motion was made by Mayor Lozano, seconded by Council Member Baca, to adjourn the meeting at 8:25 p.m. Mayor ATTEST: Manuel Lozano, Mayor Alejandra Avila, City Clerk APPROVED: Special Meeting of 11/14/18 Page 7 of 7 ITEM NO. 5 Q TO: Honorable Mayor and Members of the City Council FROM: Shannon Yauchzee, Chief Executive Officer Laura J. Thomas, Human Resources & Risk Manag DATE: December 5, 2018 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 City Council reject the following claims and direct staff to send the appropriate notice of rejection to claimant(s): Hernandez, Maria Claimant alleges the city is responsible for property damage during the downtown street market located within Morgan Park. Premier Auto Credit Claimant alleges the police department illegally towed and impounded his vehicle. This government claim, 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 Councilmembers 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 Councilmembers. 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. 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. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. STAFF REPORT ITEM NO. TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk -k A DATE: December 5, 2018 SUBJECT: Second Reading of Ordinance No. 1430 Entitled: "An Ordinance of the City Council of the City of Baldwin Park, California, Amending the Baldwin Park Municipal Code, Title XV, Land Usage, Chapter, 153, Zoning Code, Sections 153.040.020, 153.120.350, and 153.150.100 and 153.220.050 Relating to Accessory Dwelling Units — Zoning Code Amendment Case Number AZC 186" SUMMARY This report requests City Council's consideration to approve the Second Reading of Ordinance No. 1430, which amends land usage chapter 153 of the zoning code relating to accessory dwelling units. Ordinance No. 1430 was introduced for first reading during a special meeting of the City Council on November 14, 2018. RECOMMENDATION Staff recommends that the City Council waive reading and adopt Ordinance No. 1430, entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA AMENDING THE BALDWIN PARK MUNICIPAL CODE, TITLE XV, LAND USAGE, CHAPTER, 153, ZONING CODE, SECTIONS 153.040.020, 153.120.350, AND 153.150.100, AND 153.220.050 RELATING TO ACCESSORY DWELLING UNITS — ZONING CODE AMENDMENT CASE NUMBER AZC 186 ". FISCAL IMPACT Not Applicable BACKGROUND Ordinance No. 1430 was introduced for first reading during a special meeting of the City Council held on November 14, 2018. ALTERNATIVES Not Applicable LEGAL REVIEW Not Applicable ATTACHMENTS 1.) Attachment "A" - Ordinance No. 1430 Attachment "A" Ordinance No. 1430 ORDINANCE NO. 1430 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA AMENDING THE BALDWIN PARK MUNICIPAL CODE, TITLE XV, LAND USAGE, CHAPTER, 153, ZONING CODE, SECTIONS 153.040.020, 153.120.350, AND 153.150.100, AND 153.220.050 RELATING TO ACCESSORY DWELLING UNITS — ZONING CODE AMENDMENT CASE NUMBER AZC 186 WHEREAS, Baldwin Park Municipal Code Title VI, Land Usage, Chapter 153, Zoning Code, implements the City's General Plan, establishing land use and development regulations in the City, which includes regulations governing the establishment of residential second units in the R-1, R -G, and R-3 zoning districts in accordance with Government Code Section 65852.2; and WHEREAS, on January 1, 2017 certain amendments to Section 65852.2 and new regulations in Section 65852.22 of the California Government Code went into effect replacing Government Code regulations for residential second units with new regulations requiring cities to permit "accessory dwelling units," subject to ministerial approval and allowing cities to adopt by ordinance land use regulations designating allowable zones and development standards for "accessory dwelling units."; and WHEREAS, the City finds it necessary to amend the Zoning Code to regulate the location and development of "accessory dwelling units" within the City; and WHEREAS, pursuant to California Government Code Section 65854, the Planning Commission duly noticed and agendized a public hearing and conducted the public hearing at on this matter on August 22, 2018, continued the public hearing to the regularly scheduled meeting of September 26, 2018, and further continued the public hearing to October 24, 2018 and adopted Planning Commission Resolution 18-18 recommending that the City Council approve Zoning Code Amendment Case Number AZC 186 and adopt Ordinance No 1430; and WHEREAS, the City Council held a duly noticed public hearing on Zoning Code Amendment No. AZC 186 to consider adoption of Ordinance No. 1430 on September 5, 2018 at which time it continued the public hearing to the regularly scheduled meeting of October 3, 2018; and WHEREAS, the City Council held a duly noticed public hearing on Zoning Code Amendment No. AZC 186 to consider adoption of Ordinance No. 1430 on November 14, 2018 at which time it considered all evidence presented, both written and oral. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AS FOLLOWS: SECTION 1. The foregoing recitations are hereby adopted by the City Council as findings. Based on those findings, the City Council determines the public health, safety and general welfare of the City of Baldwin Park, its residents and property owners can benefit by amending the Baldwin Park Municipal Code (BPMC) to allow accessory dwelling units with development standards, and it is in the best interest of the community to amend the BPMC accordingly. SECTION 2. Based on the foregoing findings and determinations, Baldwin Park Municipal Code Title XV, Land Usage, Chapter 153, Zoning Code, Subchapter 153.040, "Residential Zones," Section 153.040.020, "Use Regulations Table 153.040.020," "Permitted and Conditionally Permitted Uses within Residential Zones," is amended and enacted as follows: Page 12 a CtP �C©n ttt e [ �� � �Aocessoryus� �Perrnt �an�. ���ntl�fronal[jr Permitted � = A , Uses withrk FtesIcientral Zones Use not al[oweit R. Atltlifonal .` Land Use` 7,500 , R .1 - ' R -G R-3 ; , ; Regulations; Accessory Dwelling Units P P P P 153.120 Part 11 Accessory Dwelling Units — Junior P P 153.120 Part 11 Accessory Structures P P P P 153.040.070 Adult Day Care Facilities CUP CUP CUP CUP Boardinghouses -- -- I -- -- Child Day Care Homes - Large Family P P P P 153.120 Part 6 Child Day Care Homes — Small Family P P P P Condominiums -- -- P P See Chapter 153.210, Part 2 — Design Review Dwellings, Duplex -- -- P P See Chapter 153.210, Part 2 — Design Review Dwellings, Multi -Family -- -- P P See Chapter 153.210, Part 2 — Design Review Dwellings, Single -Family P P P P See Chapter 153.210, Part 2 — Design Review Educational Institutions, private -- CUP CUP CUP 153.040.030 Educational Institutions, public P P P P Page 12 Home Occupations A A A A 153.120 Part 8 Hospitals -- -- CUP CUP 153.040.030 Mobile Homes P P P P Mobile Home Parks CUP CUP CUP CUP 153.040 Part 4 Off -Street Parking Facilities CUP CUP CUP CUP 153.150.040, 153.150.050 Parking Lots (associated with nonresidential use) CUP CUP CUP CUP 153.160.050 Places of Assembly -- CUP CUP CUP 153.040.030 Recreational Facilities CUP CUP CUP CUP Residential Care Homes (6 or fewer residents) P P P P Residential Care Facilities CUP CUP I CUP I CUP 153.040.030 SECTION 3. Based on the foregoing findings and determinations, Baldwin Park Municipal Code Title XV, Land Usage, Chapter 153, Zoning Code, Subchapter 153.040 "Residential Zones," Section 153.220.050 "D" "Definitions," is amended and enacted as follows: DWELLING UNIT. Any building or portion thereof designed for living and sleeping purposes that contains independent cooking and sanitation facilities. DUPLEX DWELLING UNIT. A building containing two dwelling units designed for the independent occupancy of two households. MULTIPLE -FAMILY DWELLING UNIT. A building or portion thereof containing three or more dwelling units designed for the independent occupancy of three or more households. PRIMARY DWELLING UNIT. An existing single-family residential structure on a single lot with provisions for living, sleeping, eating, a single kitchen for cooking, and sanitation facilities occupied. SINGLE-FAMILY DWELLING UNIT. A detached building containing no more than one dwelling unit which, regardless of form of ownership, is designed and/or uses to house not more than one household, including all domestic employees for such household. SECTION 4. Based on the foregoing findings and determinations, Baldwin Park Municipal Code Title XV, Land Usage, Chapter 153, Zoning Code, Subchapter 153.120, "Standards for Specific Land Uses and Activities, Part 11. Second Dwelling Units" is rescinded and replaced in its entirety as follows: PART 11 -Accessory Dwelling Units Section 153.120.350 — Intent and Purpose These regulations are provided pursuant to Government Code §§65852.2, and 65852.2, and 65852.22 regulate the establishment and use of accessory dwelling units and to establish standards to regulate the placement and design of accessory dwelling units in compliance with the Government Code. In addition to compliance with all other applicable Page 13 statutes, ordinances and regulations, the regulations of Section 153.120.360, "Use Regulations and Development Standards," shall apply to all accessory dwelling units. Section 153.120.360 — Use Regulations and Development Standards A. Applicability. Accessory dwelling units shall be permitted as a matter of right, without any required discretionary review or permit, in conjunction with any existing single-family dwelling unit in the R-1 7,500, R-1, R -G and R-3 zones. A maximum of one accessory dwelling unit may be permitted on a residential lot containing no more than one existing single family dwelling unit. An accessory dwelling unit shall not be permitted on any residential lot which is the subject of any pending written notice(s) of code violations or enforcement actions by the city. Due to the potential impact to traffic flow and public safety, areas deemed unsuitable for the development of accessory dwelling units include the following and are not permitted for creation of an accessory dwelling unit: 1. A lot which fronts a substandard street. 2. A lot located within 300 feet of a school bus stop. 3. A lot located on a street with permit parking restrictions. B. Definitions. For purposes of this section the following terms and phases shall be defined as described herein: "Accessory dwelling unit" shall mean either: 1. A newly constructed dwelling unit, as that term is defined in this section, which is either detached from or attached to a primary single family dwelling unit and located on a lot with no more than one existing single-family dwelling unit; or 2. A separate dwelling unit created within the existing living area of a primary single-family dwelling unit (as that term is defined in BPMC 153.220.010) or within the existing walls of an existing accessory structure (as that term is defined in this section), that is no more than 50% of the area of the primary single family dwelling unit with a maximum of 600 square feet containing no more than one bedroom, on a lot with no more than one single-family dwelling and which provides complete independent living facilities for one or more persons including permanent provisions for a separate entrance, and separate living, sleeping, eating, cooking, and sanitation facilities; 3. Accessory dwelling units may include an efficiency unit as defined in Section 17958.1 of Health and Safety Code or a manufactured home as defined in Section 18007 of the Health and Safety Code. "Accessory dwelling unit — junior" shall mean a unit that is no more than 500 square feet in size, created entirely within the existing living area of a primary Page 14 single-family dwelling unit as that term is defined in BPMC 153.220.010 located on a lot with no more than one single-family dwelling, and which incorporates an existing bedroom. A junior accessory dwelling unit shall be provided with a separate exterior entrance and shall provide interior entry to the accessory dwelling unit from the main living area of the primary residential structure. Junior accessory dwelling units may share sanitation facilities with the existing single- family structure. Junior accessory dwelling units shall provide cooking facilities which include at a minimum: (1) a sink with a maximum waste line diameter of 1.5 inches, (2) a cooking facility with appliances that do not require electrical service greater than 120 volts or natural or propane gas, (3) a food preparation counter, and (4) storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. "Accessory structure" shall mean an existing detached structure with a roof such as a garage, pool house, or carriage house located on the same lot as a single- family dwelling unit. Accessory structure shall not include an attached garage. "Newly constructed" means the construction of new walls and roofs, either attached to an existing single-family dwelling unit or existing accessory structure, or detached from an existing single-family dwelling unit on a lot. "Public Transit" means a system of large-scale public transportation in a given metropolitan area, typically comprising buses, subways, and elevated trains. "Substandard Street" For the purposes of allowing/disallowing Accessory Dwelling Units, means a public or private street with a width of 30 feet or less measured from the faces of the curbs, thus unable to accommodate street parking and/or passage for through traffic and emergency services. "Tandem parking" means two or more automobiles parked on a driveway, or in any other parking location on a lot, lined up behind one another. B. Allowable density applies. The accessory dwelling unit shall not be calculated as part of the allowable density for the lot upon which it is located, unless and until, additional dwelling units are constructed on the same lot upon which the primary single-family dwelling unit and the accessory dwelling unit are located, in which case the accessory dwelling unit shall be calculated as part of the allowable density. C. Occupancy and Sale Restrictions. 1. The owner of the property on which an accessory dwelling unit is constructed shall reside within the primary or accessory dwelling unit. Where a property is held in a trust, occupancy by either the settlor, trustee, co -trustee, or any beneficiary of the trust shall be considered owner occupancy. The accessory dwelling unit may not be sold separately from the primary single- family dwelling on the lot. A deed restriction, in a form approved by the City Page 15 Attorney, shall be recorded by the applicant to run with the land to assure compliance with the above restrictions and shall be enforceable against future purchasers. 2. The accessory dwelling unit may be rented. The rental of an accessory dwelling unit shall be for a period of no less than 30 days. If the unit is rented, the property owner shall obtain a business license. D. Lot and unit size requirements. The following lot and unit size regulations apply. 1. For all newly constructed accessory dwelling units. Lot Size in Maximum Allowable Maximum Allowable ADU / Square Feet ADU /Attached to Detached from Existing Existing Single Family Single Family Dwelling Dwelling 5,000 or less 50% of living area of 600 sf existing dwelling up to 600 sf 5,001 - 8,000 50% of living area of 1,000 sf existing dwelling up to 1,000 sf 8,001 and over 50% of living area of 1,200 sf existing dwelling up to 1,200 sf 2. For accessory dwelling unit constructed within existing walls of a single family dwelling or an accessory structure. a. No minimum lot size requirement applies to accessory dwelling units constructed within the walls of the existing living area of a primary existing single family dwelling unit or within the existing walls of an accessory structure, as that term is defined in this section. b. An area equal to 50% of the existing living area up to a maximum of 600 square feet may be constructed as an accessory dwelling unit within the existing walls of a primary single family dwelling unit. A maximum area of 600 square feet may be constructed as an ADU within the existing walls of an existing accessory structure. E. Location. Each newly constructed detached accessory dwelling unit shall be located within the rear 50 percent of the lot. Each newly constructed attached dwelling unit shall be located to the rear of the front elevation of the existing single family dwelling unit. F. Minimum development standards apply. Each newly constructed accessory unit shall meet all minimum development standards for the zoning district in which it is located, and as required in this section including, but not limited to, setbacks, Page 16 lot coverage and distance from animal -keeping areas. For any newly constructed accessory dwelling unit constructed above a, garage a minimum setback of 5' is required from the side and rear property line. If any development standard in this section varies from that provided for the zoning district in which the accessory dwelling unit is located, the development standard of in this section shall prevail. G. Building code. The accessory dwelling unit shall meet all building code requirements. H. Maximum height. Each newly constructed detached or attached accessory dwelling unit shall be limited in height to one story, with a maximum height not to exceed 15 feet at peak of roof or 12 feet for a flat -roofed structure and the roof style and pitch shall match the existing single family structure. Each newly constructed accessory dwelling unit constructed above an existing garage or carport shall not exceed a maximum height of 27 feet and the roof style and pitch shall match the existing single family structure. For an accessory dwelling unit attached to the existing primary single-family unit, the height shall not exceed the height of the existing structure, and the roof pitch shall match the existing structure. Parking. 1. One parking space shall be provided for the accessory dwelling unit, in addition to any other parking required for the primary unit. An existing garage, carport or other form of covered parking demolished as part of the construction of an accessory dwelling unit shall be replaced. Parking may be configured as tandem parking or be located within the rear setback area of a lot. Replacement of covered parking demolished as part of the creation of an accessory dwelling unit may be provided with a mechanical automobile lift provided the highest point of the auto when lifted remains below the lowest roofline on the property. 2. Parking for the accessory dwelling unit and/or replacement parking is not required when any accessory dwelling unit is located: a. Within '/ mile of public transit; or b. Within an architecturally and historically significant historic district; or c. Within an existing accessory structure; or d. In an area where on -street parking permits are required but not offered to the occupant of the accessory dwelling unit; or e. In an area where a car share vehicle is located within 1 block of the accessory dwelling unit. 3. Each standard surface parking space shall have a minimum width of 10 feet, unless it is adjacent to a structure, such as a fence or wall, and then shall have a Page 17 minimum width of 10 feet 6 inches; shall have a minimum length of 20 feet; be located so that an automobile is not required to back onto a public street; and maintain at least 24 feet of backup space directly behind each parking space. 4. Each parallel surface parking space shall have a minimum width of 10 feet and a minimum length of 23 feet. 5. Each enclosed garage parking space shall have a minimum width of 10 feet and a minimum length of 20 feet. J. Vehicular Access. The accessory dwelling unit shall utilize the same vehicular access that serves the existing main dwelling unit, unless the accessory dwelling unit has access from an alley contiguous to the lot. K. Similar architectural features. A newly constructed accessory dwelling unit shall incorporate the same or similar architectural features, building materials and color as the primary dwelling unit on the property. These features shall include, but are not limited to, roofing material, roof design, fascia, exterior building finish, color, exterior doors and windows including, but not limited to, ratios of window dimensions (e.g., width to height) and window area to wall area, garage door and architectural enhancements. L. Mechanical Equipment. All new mechanical equipment associated with a newly constructed accessory dwelling unit shall be located on the ground no less than three feet from the side and rear property lines. Any existing equipment located on the roof or exterior walls of the existing single-family dwelling unit or accessory structure shall be provided with a decorative screen to shield such equipment from view and shall be placed at least six inches below the top of the lowest building parapet or decorative screen. No plumbing line shall be placed upon the exterior wall of a structure unless such line is enclosed or otherwise screened from view. M. Permit Requirements. The following permit requirements shall apply to all accessory dwelling units in the city: 1. Accessory dwelling units and junior accessory dwelling units created within the existing living area of a primary single-family dwelling or within the existing walls of an existing accessory structure shall be subject to approval of a building permit with no further review by the Community Development Director; provided, that the proposed accessory dwelling unit has independent exterior access and the side and rear setbacks are sufficient for fire safety. 2. Newly constructed detached or attached accessory dwelling units shall be subject to ministerial review of an application submitted to the Community Development Department containing the following information: a. A fully dimensioned site plan containing the following information: i. Name and address of the applicant and of all persons owning any or all of the subject property. Page 18 ii. Evidence that the applicant is the owner of the property involved or has written permission of owner or owners to make such application. iii. Address and assessor parcel number(s) of subject property. iv. Property dimensions and square footage of the subject property. v. The use, location and size of all existing buildings and structures on the property and the proposed accessory dwelling unit, yards, driveways, access and parking areas, landscaping, walls or fences, and other similar features. b. A fully dimensioned floor plan of the existing residence and the proposed accessory dwelling unit. c. A roof plan for all existing and proposed structures. d. A set of fully dimensioned building elevations of all sides of all existing structures on the property and the proposed accessory dwelling unit. SECTION 5. Based on the foregoing findings and determinations, Baldwin Park Municipal Code Title XV, Land Usage, Chapter 153, Zoning Code, Subchapter 153.150, "Off -Street Parking and Loading," Section 153.150.100, "Parking Lot and Structure Design Standards" is amended and enacted as follows: D. Tandem parking prohibited. Each parking space shall be accessible without requiring the movement of another vehicle. Except as provided for in Section 153.120.360.(I). tandem parking arrangements are specifically prohibited. SECTION 6. CEQA. City Council approval of Zoning Code Amendment Case Number AZC 186 and adoption of Ordinance No. 1430 are not subject to the California Environmental Quality Act (CEQA) pursuant to Article 5, Section 15060(c)(2), which determines a project is not subject to CEQA if "the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment" and 15060(c)(3) "the activity is not a project as defined in Section 15378." The proposed amendment does not meet the criteria defined in Section 15378. Furthermore, the proposed amendment is exempt from the review for exemption pursuant to Section Article 5, 15061(b)(3), "The activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." SECTION 7. If any section, subsection, subdivision, sentence, clause, phrase or portion 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 section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 8. To the extent the provisions of the Baldwin Park Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as Page 19 they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments. SECTION 9. This ordinance shall be effective and be in full force and operation from and after thirty (30) days after its final reading and adoption. First read at a special meeting of the City Council of the City of Baldwin Park held on the 14th day of November and adopted and ordered published at a regular meeting of said Council on the 5th day of December, 2018. Page 110 PASSED, APPROVED, AND ADOPTED this 5t" day of December, 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELESSS: CITY OF BALDWIN PARK I, JEAN M. AYALA, 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 special meeting of the City Council on November 14, 2018. Thereafter, said Ordinance No. 1430 was duly approved and adopted at a regular meeting of the City Council on December 5, 2018 by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JEAN M. AYALA CITY CLERK Page 111 STAFF REPORT ITEM NO. 5— TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk 4 DATE: December 5, 2018 SUBJECT: Second Reading of Ordinance No. 1431 Entitled: "An Ordinance of the City Council of the City of Baldwin Park, California, Regulating the Business of Sidewalk Vending as Defined by State Law" SUMMARY This report requests City Council's consideration to approve the Second Reading of Ordinance No. 1431, which regulates the business of sidewalk vending as defined by state law. Ordinance No. 1431 was introduced for first reading during a special meeting of the City Council on November 14, 2018. RECOMMENDATION Staff recommends that the City Council waive reading and adopt Ordinance No. 1431, entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW". FISCAL IMPACT Not Applicable BACKGROUND Ordinance No. 1431 was introduced for first reading during a special meeting of the City Council held on November 14, 2018. ALTERNATIVES Not Applicable LEGAL REVIEW Not Applicable ATTACHMENTS 1.) Attachment "A" - Ordinance No. 1431 Attachment "A" Ordinance No. 1431 ORDINANCE NO. 1431 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW WHEREAS, state law has declared that Sidewalk Vending provides important entrepreneurship and economic development opportunities to low-income and immigrant communities; and WHEREAS, the safety and welfare of the general public are served by adopting a program and regulatory scheme consistent with SB 946 which goes into effect on January 1, 2019; and WHEREAS, Sidewalk Vending contributes to a safe and dynamic public space; and WHEREAS, the safety and welfare of the general public are promoted by prohibiting criminal penalties for violations of sidewalk vending ordinances and regulations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY ORDAIN: SECTION 1. That Chapter 122 of the Baldwin Park Municipal Code is hereby amended as follows: CHAPTER 122: STREET VENDORS General Provisions 122.01 Definitions 122.02 Sales from human -powered devices 122.03 Exemptions 122.04 Regulations for sales from vehicles Permits/Business License 122.15 Application for operator's permit; contents; required fee 122.16 Application for vendor's permit; contents; required fee 122.17 Investigation of applications 122.18 Issuance 1 122.19 Denial 122.20 Revocation 122.21 Appeals 122.99 Penalty GENERAL PROVISIONS § 122.01 DEFINITIONS For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. GOODS or SERVICES. This shall include items and products of every kind and description, including all foods, produce, beverage items, merchandise, wares, as well as the provision of any service or labor. HUMAN -POWERED DEVICE. Any device moved by human power including, but not necessarily limited to, any pushcart, wagon, bicycle, tricycle or other wheeled container or conveyance. OPERATOR. Any person or entity owning, operating or otherwise controlling any business involving the vending of goods or services from a vehicle. PARKWAY. That area between the edge of the roadway and the adjacent property line, including sidewalks. PERSON. Any natural person, firm, partnership, association, corporation or other entity of any kind or nature. PUBLIC PROPERTY. Any real property, or interest therein, owned, leased, operated or otherwise controlled by the city other than a street, alley, parkway, or sidewalk. PUBLIC RIGHT-OF-WAY. That portion of land dedicated to the city, in fee, as an easement, or otherwise, for public use for public street purposes which includes, but is not limited to, roadways, parkways, alleys, sidewalks, and all other public ways and paths. "SIDEWALK VENDOR" means a person who sells food or merchandise from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path. "ROAMING SIDEWALK VENDOR" means a sidewalk vendor who moves from place to place and stops only to complete a transaction. "STATIONARY SIDEWALK VENDOR" means a sidewalk vendor who vends from a fixed location. VEHICLE. This term shall be defined as in the Vehicle Code of the state and shall include any human -powered device. VEND, VENDING, SELL or SELLING. The sale or offering for sale of any goods or services to the public. VENDOR. Any person who engages in the act of vending from a vehicle or drives or otherwise operates any such vehicle for the purpose of vending therefrom. § 122.02 SALES FROM HUMAN POWERED DEVICES. It is unlawful for any person to sell or offer for sale, or to operate a human powered device or conduct any business for the purpose of causing the sale of or offering for sale, any goods or services from any human -powered device parked, stopped, or standing on any public street, alley, parkway, sidewalk or other public property in the city except as follows: (A) Sidewalk Vendors shall not vend within 25 feet of an intersection, traffic signal, railroad crossing or controlled crosswalk. Sidewalk Vendors shall not vend in any area that would block traffic or parking or that would cause vehicles to stop in traffic lanes. Sidewalk Vendors shall not vend or sell to customers in moving operating vehicles. (B) Shall not vend in a city park or facility when an exclusive agreement is in place with the City and a food vendor. (C) Sidewalk Vendors shall not vend in a park or City facility between the hours of 10 pm and 7 am. Sidewalk Vendors shall not vend in driveways, parking lots or any area that would block traffic or parking or cause traffic to back up and be delayed. (D) Vendors shall not vend in a school zone or within 500 feet of a school during loading and unloading times or at any time when children are present. (E) Sidewalk Vendors shall not vend in any Residential Zoned areas except for roaming sidewalk vendors, vending from the sidewalk and not blocking traffic or parking spaces nor vending to customers in moving operating vehicles. Roaming vendors shall keep moving and shall not be stationary except as necessary to complete a sale. (F) Vendors shall at all times hold and display a Los Angeles County Health Department permit. Carts shall be returned to an approved commissary each night for servicing, cleaning, and restocking. (G)Vendors shall at all times hold and display a City of Baldwin Park business license. (H)Vendors shall maintain sanitary conditions including but not limited to proper disposal of trash and waste. (1) Vendor shall comply with NPDES regulations and implement BMPs for stormwater runoff draining into municipal storm drains (J) Vendors shall comply with ADA and shall not block any required ADA path of travel. W (K) Sidewalk Vendors shall not chain, tie, lock or fasten to any streetlight pole, sign, fire hydrant or any object within the public right-of-way (L) Sidewalk Vendors shall not vend within: a. any designated bicycle or vehicular pathway b. 50ft of bus stop or bus shelter c. 25ft of a fire hydrant d. 25ft of a driveway approach e. 18 -in from curb edge (M)Vendors that set up on a public sidewalk shall obtain an encroachment permit from Public Works. Vendor shall hold permit on premises and make it available at all times. (N)Vendors shall possess a valid California Department of Tax and Fee Administration seller's permit. (0)Sidewalk vendors shall submit information on his or her operations, including, but not limited to, any of the following: (P) The name and current mailing address of the sidewalk vendor. A description of the merchandise offered for sale or exchange. Proof of liability insurance; A Vendor who sells Food, in addition to the requirements of this subdivision, shall certify completion of a food handler course and present a copy of the course completion certificate. A certification by the vendor that to his or her knowledge and belief, the information contained on the form is true. The California seller's permit number (California Department of Tax and Fee Administration sales tax number), if any, of the sidewalk vendor. If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal. (Q)Vendors shall not vend within 1000 feet of any City special event, farmers market, street fair, concert, or similar venue; or any Temporary Use Permit such as filming, parades, or outdoor concerts. (R) Street Vendors shall comply with and provide evidence of compliance to any applicable local, state or federal rules, regulations or laws. § 122.03 EXEMPTIONS The requirements of this chapter shall not apply to the following: (A) Any person delivering any goods or services by vehicle where such goods or services have been ordered in advance for such delivery from any business located at a permanent location and which goods or services are being delivered from such location to the customer by vehicle, regardless of the point of sale thereof. (B) Any person engaged in the vending of goods or services on public property where such person has been authorized by the city to engage in such activity by a permit, lease, real property license, agreement or other entitlements issued by the city for such purpose. 4 (C) Charitable solicitations conducted by or for nonprofit organizations exempt under 26 U.S.C. §501 (c) (3). § 122.04 REGULATIONS FOR SALES FROM VEHICLES It is unlawful for any person to sell or offer for sale, or operate any vehicle or conduct any business for the purpose of causing the sale or for offering for sale, any goods or services from any vehicle parked, stopped or standing upon any public street, alley, parkway, sidewalk or other public property in the city except in accordance with all applicable provisions of the code and in compliance with each of the following requirements: (A) Such vending shall be only by means of a vehicle duly registered and licensed by the state with an unladen weight of less than 6,000 pounds. (B) Such vending shall be limited to public streets only and shall not be permitted upon any alley, parkway, sidewalk, or other public property. (C) Each operator shall possess and at all times display in conspicuous view upon each such vehicle a city business license pursuant to Chapter 110 of this code of ordinances. (D) Each operator shall possess and at all times display in conspicuous view upon such vehicle an unexpired and unrevoked operator's permit issued pursuant to § 122.15. (E) It is unlawful for any vendor to sell or offer for sale any goods or services from any vehicle pursuant to this section unless such person possesses and at all times while conducting such vending maintains upon his or her person an unexpired and unrevoked vendor's permit issued pursuant to § 122.16. (F) It is unlawful for any operator to permit or allow any vendor under such operator's control, direction, charge or employ to vend any goods or services from any vehicle pursuant to this section unless such vendor possesses an unexpired and unrevoked vendor's permit issued pursuant to § 122.16. (G) Each operator causing the sale of or offering for sale any produce or other food item for which a food handling permit or other health permit is required by law shall possess and at all times display such required permit(s) in conspicuous view upon such vehicle. (H) No vending from such vehicle shall be permitted for a period of time in excess of ten minutes in any one location and said vehicle must be moved a distance of not less than 100 feet between consecutive stops at which vending occurs. (1) No vehicle shall be parked, stopped, or left standing in any manner which blocks or impedes vehicular access to any driveway or restricts the free movement of other vehicles upon the public street. (J) No vehicle shall be parked, stopped, or left standing in any manner which blocks or impedes vehicular access to any driveway or restricts the free movement of other vehicles upon the public street. (K) Each vehicle shall be equipped with a trash receptacle of a size adequate to accommodate all trash and refuse generated by such vending. 5 (L) Each vendor shall pick up and deposit in the trash receptacle on the vehicle any paper, cups, wrappers, litter or other refuse of any kind which were a part of the goods or services supplied from the vehicle and which have been left or abandoned within 25 feet of such vehicle on any public property other than in a trash receptacle provided for such purposes. No vendor or operator shall dispose of any trash or refuse in any such public or private trash receptacle other than a trash receptacle owned, operated or otherwise provided by and under the control of such vendor or operator. (M) No vending shall be permitted except after the vehicle has been brought to a complete stop and parked adjacent to the curb in a lawful manner. (N) Any vehicle from which vending occurs pursuant to this section shall have the same name, address and telephone number of the holder of the operator's permit permanently affixed on both the left and right sides of the vehicle. Such information shall be in contrast to the color of the background upon which the letters are placed. (0) No vending shall be permitted by any operator or conducted by any vendor except between the hours of 9:00 am and 8:00 pm of each day. (P) Any use of amplified sound making devices, including vehicle horns, to advertise, draw attention to or to announce the presence of any such vehicle shall comply with the limitations and provisions set forth in § 130.40 et seq. of this code of ordinances. No amplified sound making devices shall be used for such purposed upon any public street immediately contiguous to any residential zone property within the city. Nonamplified sound -making devices shall be permitted for such purposes provided such sounds shall not be made while the vehicle is stopped, parking, or otherwise in a stationary position; and such sounds shall not be audible to a person with normal hearing for a distance of more than 200 feet. (Q) Any operator or vendor using scales or any other weighing or measuring devices shall have all such scales and devices inspected and sealed by the Weights and Measures Division of the Los Angeles County Department of Agriculture. (R) All foods, beverages, utensils and equipment offered for sale or utilized on vending vehicles shall at all times be protected from contamination and pollution by dust, dirt, flies, vermin, rodents, animals, unnecessary handling, droplet infection, overhead leakage, insecticides, rodenticide, cleaning compounds and other poisonous or deleterious substances, and all other forms of contamination. (S) Any ice cream truck shall be equipped at all times, while engaging in vending in a residential area, with signs mounted on the front and rear clearly legible from a distance of 100 feet under daylight conditions, incorporating the words "WARNING" and "CHILDREN CROSSING". Each sign shall be at least 12 inches by 48 inches wide, with letters of a dark color, at least four inches in height, a one - inch wide solid border, and a sharply contrasting background. (T) The driver of the ice cream truck shall be required to place an orange cone at the left rear of the portion of the vehicle after the vehicle has been stopped and parked adjacent to the curb. 2 (U) No ice cream trucks shall be permitted to vend on streets with a speed limit of more than 25 miles per hour. (V) The driver of the ice cream truck shall have an unobstructed view for 200 feet in both directions along the street and of any traffic on the said street. Unless otherwise waived by the city police department and, in addition to other equipment required by law, each food vending vehicle shall be equipped with the following: (1) A convex mirror mounted so that the occupant of the driver's seat can see the area in the front of the truck which is obscured by the vehicle's hood. (2) A back-up alarm audible for a distance of at least 100 feet. (Ord. 1082, passed 5-18-94; Am. Ord. 1265, passed 8-17-05) Penalty, see § 122.99. PERMITS/BUSINESS LICENSE § 122.15 APPLICATION FOR OPERATOR'S PERMIT; CONTENTS; REQUIRED FEE. (A) Any person desiring to obtain an operator's permit to conduct or otherwise operate the business of vending goods or services pursuant to this section shall submit an application to the Business License Official/Finance Department. The application shall be accompanied by a non-refundable application fee in such amount established by resolution of the City Council. Any such permit shall be required to be renewed annually and a separate nonrefundable application fee paid yearly for the renewal application. (B) Each applicant for an operator's permit shall furnish the following information and documentation as part of or in conjunction with such application: (1) The present or proposed address from which the business is to be conducted. (2) The full true name under which the business will be conducted. (3) The full true name and any other names used by the applicant. (4) The present residence and business addresses and telephone numbers of the applicant. (5) A description of the goods or merchandise which the business will vend. (6) The number of vehicles to be owned, operated or controlled by the applicant and the makes, body styles, years, serial and engine numbers, state license plate numbers, and names and addresses of the registered and/or legal owners of each vehicle. (7) A description of the logo, color scheme, insignia, and any other distinguishing characteristics of applicant's vehicles. (8) A certificate of insurance or other additional proof as may be required by the City Attorney or Risk Manager showing evidence of a public liability and property damage insurance policy for vehicle liability coverage protecting the operator from all claims for damage to property or bodily injury including death, which may arise from the operation of vehicles under the permit or in connection therewith. The insurance shall provide coverage of not less than $100,000 for bodily injury for each person, $300,000 per occurrence and property damage coverage of $50,000 per occurrence. The insurance shall provide that the policy shall not terminate or be cancelled without 30 days advance written notice to the city. (9) The full true names and residence addresses of all persons employed or intended to be employed or with whom the applicant has contracted or intends to contract as drivers and/or vendors and the respective capacities in which they will be employed including the California driver's license numbers of all persons who will be employed or engaged as drivers of vehicles in conjunction with such business. The applicant, if an individual; or each of the directors, officers or stockholders holding more than 5% of the stock of the corporation; or each of the partners including limited partners, or profit interest holders, managers or other persons principally in charge of the operation of the existing or proposed business shall also furnish the following information: (a) California driver's license or social security numbers of the above described natural persons. (b) Dates of birth of the above described natural persons. (c) The permit histories of the above described natural persons for the three-year period immediately preceding the date of the filing of the application, including whether such persons, in previously operating in this or any other city, county, state, or territory, have ever had any similar license or permit, or franchise revoked or suspended, and if so, the circumstances of such suspension or revocation. (d) All criminal convictions including pleas of guilty or nolo contendere, suffered by the above-described natural persons, including code and ordinance violations, but excepting minor traffic offenses (any traffic offense designated as a felony shall not be construed as a minor traffic offense), stating the date, place, nature and sentence of each such conviction. (10) The applicant, if other than an individual, shall also furnish the following information: (a) Each business address of the applicant for the three-year period immediately preceding the date of the application and the inclusive dates of each business. (b) The nature of the business or firm for the three-year period immediately preceding the date of the application. (c) The permit history of the applicant for the three-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other city, county, state or territory, has ever had any similar license or permit, or franchise revoked or suspended and, if so, the circumstances of such suspension or revocation. (d) All criminal convictions, including pleas of guilty or nolo contendere, suffered by the applicant including ordinance violations, stating the date, place, nature, and sentence of each conviction. (11) Such other identification and/or information as the Business License Official/Finance Department may require in order to discover the truth of the matters required to be set forth in the application. § 122.16 APPLICATION FOR VENDOR'S PERMIT; CONTENT; REQUIRED FEE (A) Any person desiring to obtain a vendor's permit to engage in the vending of goods or services, pursuant to this section shall submit an application to Business License Official/Finance Department. (B) The application shall be accompanied by a nonrefundable application fee in such amount as established by resolution of the City Council. Any such permit shall be required to be renewed annually and a separate nonrefundable application fee paid yearly for the renewal application. (C) Each applicant for a vendor's permit, or an operator or applicant for an operator's permit on behalf of the proposed vendor, shall furnish the following information and documentation as part of or in conjunction with the application: (1) The present of proposed address from which the business is to be conducted. (2) The full true name under which the business will be conducted. (3) The full true name and any other names used by the applicant. (4) The present residence address and telephone number of the applicant. (5) California driver's license number of the applicant. (6) Acceptable written proof that the applicant is at least 18 years of age. (7) The applicant's height, weight, color of eyes and hair, and date of birth. (8) The business, occupation or employment history of the applicant for the three-year period immediately preceding the date of the application. (9) The permit history of the applicant, for the three-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other city, county, state or territory, has ever had any similar license or permit, or franchise revoked or suspended, and if so, the circumstances of the suspension or revocation. (10) All criminal convictions, including pleas of guilty or nolo contendere, suffered by the applicant, including ordinance violations, and traffic offenses. 9 (11) Written proof satisfactory to the City Attorney or Risk Manager that the applicant is insured under the policy of insurance required for such business pursuant to § 122.15 (H). (12) Such other identification and/or information as the City Clerk may require in order to discover the truth of the matters required to be set forth in the application. (13) When any change occurs regarding the written information required by divisions (c) (1) through (12) of this section prior to issuance of the permit/business license, the applicant shall give written notification of the change to the City Clerk within two weeks after such change. (14) If the applicant is an individual who intends to own, operate and drive his or her own vehicle, it is not necessary to pay a fee for the vendor's permit application separate from the fee paid for the operator's permit application. (Ord. 1082, passed 5-18-94) § 122.17 INVESTIGATION OF APPLICATIONS The Business License/Finance Department shall investigate all applications for operators permits and vendors permits made pursuant to this chapter, and shall within 30 days after the date of the filing of the application, render a written decision as to approval or denial of the application for the permit based upon the criteria set forth in § 122.18. (Ord. 1082, passed 5-18-94) § 122.18 ISSUANCE The Business License/Finance Department shall grant the vendor's permit or operator's permit only if he or she finds that all of the following requirements have been met: (A) The required fees have been paid. (B) The application conforms in all respects to the provisions of this chapter. (C) The applicant has not made a material misrepresentation of fact in the application. (D) The applicant has not had a similar permit denied or revoked by the city within a period of one year prior to the date of such application. (E) (1) The applicant if an individual; or any of the directors, officers or stockholders holding more than 5% of the stock of the corporation; or any of the partners, including limited partners, or profit interest holder, manager or other person principally in charge of the operation of the existing or proposed business of vending from a vehicle or a natural person employed or contracted 10 with to be a driver or vendor, has not been convicted or pleaded nolo contendere or guilty within a five years prior to his application for a permit to a misdemeanor or felony crime of moral turpitude or drug-related misdemeanor or felony crime, including, but not limited to, the following: (a) The sale of a controlled substance specified in Cal. Health & Safety Code § 11054 through 11058. (b) The sale, distribution or display of harmful or obscene matter. (c) Indecent exposure. (d) In the case of applications for a vendor's permit by a person who will be a driver of a vehicle pursuant to this section, alcohol or drug-related traffic offenses. (2) The investigating city employee is specifically authorized to obtain state summary criminal history record information as provided for in Cal. Penal Code § 11105. Any complaint about the charges listed in division (1) above pending before a court of law shall cause the application to be considered pending until adjudication of the complaint. (ord. 1082, passed 5-18-94) § 122.19 DENIAL (A) If the Business License Official/Finance Department does not find that all of the requirements set forth in §122.15, 122.16 or 122.17, as applicable have been met, he or she shall deny the application for the vendor's or operator's permit. In the event the application for the permit is denied by the Business License Official/Finance Department, written notice of the denial shall be given to the applicant specifying the ground or grounds of such denial. Notice of denial of the application for the permit shall be deemed to have been served upon the date it is personally served on the applicant or when deposited in the United States mail with postage prepaid and addressed to the applicant at his or her residence address as set forth in the application for the permit. (B) Any applicant whose application for a vendor's or operator's permit has been denied by the Business License Official/Finance Department may appeal such denial to City Council by filing a written notice of appeal with the City Clerk or designee within ten days following the date of service of the decision and payment of the appeal fee prescribed by resolution of the City Council. The date of filing of the notice of appeal shall be the date the notice and the appeal fee are received by the City Clerk or designee. (C) No person or entity whose permit is finally denied shall be eligible to apply for a new permit for a period of one year following the final denial. (Ord. 1082, passed 5-18-94) 11 § 122.20 REVOCATION Any vendor's or operator's permit may be revoked by the City Clerk or designee for good cause shown, including but not necessarily limited to any of the following reasons: (A) Falsification of any information supplied by the permittee upon which issuance of a permit was based. (B) Conviction of a violation, or pleas of guilty or nolo contendere, by a permittee of any crime occurring while such person was engaged in conducting vending operations from a vehicle, whether within or outside the city, involving moral turpitude, or the possession or sale of any controlled substance specified in Cal. Health & Safety Code § 11054 through 11058, or the violation of any provision of Cal. Penal Code Title 9, Part 1, Chapters 1, 5, 7.5, 7.6 or 8, or an alcohol or drug-related offense in the case of a vendor's permit held by a person who is a driver of a vehicle operated pursuant to this section. (C) Exercise of the permit in a manner contrary to the public peace, health, safety or general welfare. (D) No such revocation shall become effective until the expiration of the appeal period specified in this section. Notification of the permit holder shall be made either by personal delivery or by certified or registered mail, return receipt requested, addressed to the permit holder at such permit holder's residence address as set forth on the application for a permit. Service shall be deemed made on the permit holder on the date personally delivered or on the date of the mailing. A permit holder may appeal the revocation to the City Council by filing a written notice of appeal with the City Clerk or designee within ten days following the date of service if the decision and payment of the appeal fee as prescribed by resolution of the City Council. The date of filing of the notice of appeal shall be the date the notice and appeal fee are received by the City Clerk or designee. If a timely appeal is filed, the revocation shall be stayed pending the decision of the City Council. Otherwise, the revocation shall be effective after the expiration of the appeal period. (E) No person or entity whose permit is revoked shall be eligible to apply for a new permit for a period of one year following the revocation. (ord. 1082, passed 5-18-94) § 122.21 APPEALS Upon receipt of a timely appeal, the City Council shall hear such appeal within 20 days following the date of the appeal and shall give the appellant not less than five days advance notice of the date of the hearing. The decisions of the City Council shall be based upon the same notice of the date of the hearing. The decision of the City Council shall be based upon the same criteria as set forth in this section which is applicable to the issuance or revocation of the permit. The appellant shall be notified of the decision of the City Council by mailed, written notice. The decision of the City Council shall be final. No 12 revocation of a permit pursuant to this section shall be deemed effective during the pendency of a timely filed appeal until the date of mailing of the City Council's decision; provided, however, no permit holder shall operate during any period of time in which the insurance coverage required by this section is not in full force and effect. (Ord. 1082, passed 5-18-94) § 122.99 PENALTY A violation of the sidewalk vending program that compiles with Government Code section 51308 is punishable by only the following: (A) An administrative fine not exceeding one hundred ($100) for a first violation. (B) An administrative fine not exceeding two hundred dollars ($200) for the second violation within one year of the first violation. (C) An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one year of the first violation. 2. The City may rescind a permit issued to a sidewalk vendor for the term of that permit upon the fourth violation or subsequent violations. The City may confiscate and/or impound goods and/or vehicle where said goods are being sold without the proper licenses required by this chapter. Section 2. The Chief Executive Officer or its designee is authorized to take action as may be necessary to implement this ordinance. Section 3. The Mayor or presiding officer of the City of Baldwin Park City Council is hereby authorized to affix his/her signature to this Ordinance signifying its adoption by the City Council of the City of Baldwin Park. Section 4. The City Clerk of the City of Baldwin Park shall certify to the adoption of this Ordinance and cause the same to be posted and/or published as required by law. Section S. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days from the date of its final passage and adoption. Section 6. If any chapter, section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, section, subsection, subdivision, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional. 13 First read at a special meeting of the City Council of the City of Baldwin Park held on the 14th day of November and adopted and ordered published at a regular meeting of said Council on the 5th day of December, 2018. PASSED, APPROVED, AND ADOPTED this 5th day of December, 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELESSS: CITY OF BALDWIN PARK I, JEAN M. AYALA, 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 special meeting of the City Council on November 14, 2018. Thereafter, said Ordinance No. 1430 was duly approved and adopted at a regular meeting of the City Council on December 5, 2018 by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JEAN M. AYALA CITY CLERK 14 STAFF REPORT TO: FROM: DATE: SUBJECT: ITEM NO. Honorable Mayor and Members of the City Council Shannon Yauchzee, CEO December 5, 2018 _/ Adoption of an Urgency Ordinance to Regulate Sidewalk Vending in Response to State Law SB946 (Lara) Sidewalk Vending SUMMARY This report requests that the City Council adopt an urgency ordinance to regulate sidewalk vending so that the effective date is prior to the State deadline of January 1, 2019. RECOMMENDATION Staff recommends that the City hold a Public Hearing and Adopt Urgency Ordinance No. 1432, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW". FISCAL IMPACT There may be a small increase in business license fees and fines, however this will be offset by the costs to regulate the businesses. The impacts to local businesses and the economy are unknown at this time. BACKGROUND This new State Law (law) will prohibit a local authority, as defined, from regulating sidewalk vendors, except in accordance with the provisions of the law. The law provides that a local authority is not required to adopt a new program to regulate sidewalk vendors if the local authority has established an existing program that substantially complies with the provisions of the law. The law requires a local authority that elects to adopt a sidewalk vending program to, among other things, not require a sidewalk vendor to operate within specific parts of the public right-of-way, except when that restriction is directly related to objective health, safety, or welfare concerns, and not restrict sidewalk vendors to operate only in a designated neighborhood or area, except as specified. The law would authorize a local authority to, by ordinance or resolution, adopt additional requirements regulating the time, place, and manner of sidewalk vending, as specified, if the requirements are directly related to objective health, safety, or welfare concerns. The law would also authorize a local authority to prohibit sidewalk vendors in areas located within the immediate vicinity of a permitted certified farmers' market and a permitted swap meet, as specified, and to restrict or prohibit sidewalk vendors within the immediate vicinity of an area designated for a temporary special permit issued by the local authority, as specified. A violation would be punishable only by an administrative fine, as specified, pursuant to an ability -to -pay determination, and proceeds would be deposited in the treasury of the local authority. The law would require the dismissal of any criminal prosecutions under any local ordinance or resolution regulating or prohibiting sidewalk vendors that have not reached final judgment. The law would also authorize a person who is currently serving, or who completed, a sentence, or who is subject to a fine, for a conviction of a misdemeanor or infraction for sidewalk vending, as specified, to petition for dismissal of the sentence, fine, or conviction. DISCUSSION The new State Law restricts and limits how Cities can regulate such vending and the Cities must adopt an ordinance prior to January 1, 2019. Cities can only base regulations on objective health, safety and welfare concerns. Staff have reviewed the state law and recommend an ordinance that would: • Vendors shall not vend within 25 feet of an intersection, traffic signal or controlled crosswalk. Shall not vend in any area that would block traffic or parking or that would cause vehicles to stop in traffic lanes. Shall not vend or sell to customers in moving operating vehicles. • Shall not vend in a city park or facility when an exclusive agreement is in place with the City and a food vendor. • Shall not vend in a park or City facility between the hours of 10 pm and 7 am. Shall not vend in driveways, parking lots or any area that would block traffic or parking or cause traffic to back and be delayed. • Shall not vend in any Residential Zoned areas except for roaming sidewalk vendors, vending from the sidewalk and not blocking traffic or parking spaces nor vending to customers in moving operating vehicles. Roaming vendors shall keep moving and shall not be stationary except as necessary to complete a sale. • Vendors shall at all times hold and display a Los Angeles County Health department permit. Carts shall be returned to a approved commissary each night for servicing cleaning and restocking. • Vendors shall at all times hold and display a City of Baldwin Park business license including a background check and live scan. • Vendors shall maintain sanitary conditions including but not limited to proper disposal of trash and waste. • Vendors shall comply with ADA and shall not block any required ADA path of travel. Vendors that set up on a public sidewalk shall obtain an encroachment permit from Public Works • Vendors shall possess a valid California Department of Tax and Fee Administration seller's permit. • Sidewalk vendors shall submit information on his or her operations, including, but not limited to, any of the following: • (A) The name and current mailing address of the sidewalk vendor. • (B) A description of the merchandise offered for sale or exchange. • (C) A certification by the vendor that to his or her knowledge and belief, the information contained on the form is true. • (D) The California seller's permit number (California Department of Tax and Fee Administration sales tax number), if any, of the sidewalk vendor. • (E) If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal. • Vendors shall not vend within 1000 feet of any City special event, farmers market, street fair concerts, or similar venue; or any Temporary Use Permit such as filming, parades, or outdoor concerts. Pursuant to California Government Code Section 36937 an ordinance may be adopted without the need to bring it back for a second reading. By adopting the ordinance as an urgency ordinance, the proposed amendments to the ordinance will go into effect immediately upon adoption. The City must make a finding that the urgency ordinance is necessary for the immediate preservation of the public peace, health or safety and must pass the urgency ordinance by at least 4/5th vote. The factual basis for approving this amended code is that the State of California has set a deadline of January 1, 2019, for local governments to set forth regulations and rules concerning street vending. Based on this factual background adopting this urgency ordinance is necessary for the immediate preservation of the public peace, health and safety in that the residents of Baldwin Park require local rules and regulations for now permitted street vending. ALTERNATIVES Should the City Council elect not to introduce and approve an ordinance regulating street vending then the State Law takes effect January 1, 2019 and the City may not prohibit or regulate such vending. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Urgency Ordinance 1432 2. SB 946 ( Lara) Street Vending Attachment 1 Urgency Ordinance No. 1432 URGENCY ORDINANCE NO. 1432 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK REGULATING THE BUSINESS OF SIDEWALK VENDING AS DEFINED BY STATE LAW WHEREAS, state law has declared that Sidewalk Vending provides important entrepreneurship and economic development opportunities to low-income and immigrant communities; and WHEREAS, the safety and welfare of the general public are served by adopting a program and regulatory scheme consistent with SB 946 which goes into effect on January 1, 2019; and WHEREAS, Sidewalk Vending contributes to a safe and dynamic public space; and WHEREAS, the safety and welfare of the general public are promoted by prohibiting criminal penalties for violations of sidewalk vending ordinances and regulations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY ORDAIN: SECTION 1. That Chapter 122 of the Baldwin Park Municipal Code is hereby amended as follows: CHAPTER 122: STREET VENDORS General Provisions 122.01 Definitions 122.02 Sales from human -powered devices 122.03 Exemptions 122.04 Regulations for sales from vehicles Permits/Business License 122.15 Application for operator's permit; contents; required fee 122.16 Application for vendor's permit; contents; required fee 122.17 Investigation of applications 122.18 Issuance 122.19 Denial 122.20 Revocation 122.21 Appeals 122.99 Penalty 1 GENERAL PROVISIONS § 122.01 DEFINITIONS For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. GOODS or SERVICES. This shall include items and products of every kind and description, including all foods, produce, beverage items, merchandise, wares, as well as the provision of any service or labor. HUMAN -POWERED DEVICE. Any device moved by human power including, but not necessarily limited to, any pushcart, wagon, bicycle, tricycle or other wheeled container or conveyance. OPERATOR. Any person or entity owning, operating or otherwise controlling any business involving the vending of goods or services from a vehicle. PARKWAY. That area between the edge of the roadway and the adjacent property line, including sidewalks. PERSON. Any natural person, firm, partnership, association, corporation or other entity of any kind or nature. PUBLIC PROPERTY. Any real property, or interest therein, owned, leased, operated or otherwise controlled by the city other than a street, alley, parkway, or sidewalk. PUBLIC RIGHT-OF-WAY. That portion of land dedicated to the city, in fee, as an easement, or otherwise, for public use for public street purposes which includes, but is not limited to, roadways, parkways, alleys, sidewalks, and all other public ways and paths. "SIDEWALK VENDOR" means a person who sells food or merchandise from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path. "ROAMING SIDEWALK VENDOR" means a sidewalk vendor who moves from place to place and stops only to complete a transaction. "STATIONARY SIDEWALK VENDOR" means a sidewalk vendor who vends from a fixed location. VEHICLE. This term shall be defined as in the Vehicle Code of the state and shall include any human -powered device. VEND, VENDING, SELL or SELLING. The sale or offering for sale of any goods or services to the public. 2 VENDOR. Any person who engages in the act of vending from a vehicle or drives or otherwise operates any such vehicle for the purpose of vending therefrom. § 122.02 SALES FROM HUMAN POWERED DEVICES. It is unlawful for any person to sell or offer for sale, or to operate a human powered device or conduct any business for the purpose of causing the sale of or offering for sale, any goods or services from any human -powered device parked, stopped, or standing on any public street, alley, parkway, sidewalk or other public property in the city except as follows: (A) Sidewalk Vendors shall not vend within 25 feet of an intersection, traffic signal, railroad crossing or controlled crosswalk. Sidewalk Vendors shall not vend in any area that would block traffic or parking or that would cause vehicles to stop in traffic lanes. Sidewalk Vendors shall not vend or sell to customers in moving operating vehicles. (B) Shall not vend in a city park or facility when an exclusive agreement is in place with the City and a food vendor. (C) Sidewalk Vendors shall not vend in a park or City facility between the hours of 10 pm and 7 am. Sidewalk Vendors shall not vend in driveways, parking lots or any area that would block traffic or parking or cause traffic to back up and be delayed. (D)Vendors shall not vend in a school zone or within 500 feet of a school during loading and unloading times or at any time when children are present. (E) Sidewalk Vendors shall not vend in any Residential Zoned areas except for roaming sidewalk vendors, vending from the sidewalk and not blocking traffic or parking spaces nor vending to customers in moving operating vehicles. Roaming vendors shall keep moving and shall not be stationary except as necessary to complete a sale. (F) Vendors shell at all times hold and display a Los Angeles County Health Department permit. Carts shall be returned to an approved commissary each night for servicing, cleaning, and restocking. (G)Vendors shall at all times hold and display a City of Baldwin Park business license.. (H)Vendors shall maintain sanitary conditions including but not limited to proper disposal of trash and waste. (1) Vendor shall comply with NPDES regulations and implement BMPs for stormwater runoff draining into municipal storm drains (J) Vendors shall comply with ADA and shall not block any required ADA path of travel. (K) Sidewalk Vendors shall not chain, tie, lock or fasten to any streetlight pole, sign, fire hydrant or any object within the public right-of-way (L) Sidewalk Vendors shall not vend within: a. any designated bicycle or vehicular pathway b. 50ft of bus stop or bus shelter c. 25ft of a fire hydrant d. 25ft of a driveway approach e. 18 -in from curb edge (M)Vendors that set up on a public sidewalk shall obtain an encroachment permit from Public Works. Vendor shall hold permit on premises and make it available at all times. (N)Vendors shall possess a valid California Department of Tax and Fee Administration seller's permit. (0)Sidewalk vendors shall submit information on his or her operations, including, but not limited to, any of the following: (P) The name and current mailing address of the sidewalk vendor. A description of the merchandise offered for sale or exchange. Proof of liability insurance; A Vendor who sells Food, in addition to the requirements of this subdivision, shall certify completion of a food handler course and present a copy of the course completion certificate. A certification by the vendor that to his or her knowledge and belief, the information contained on the form is true. The California seller's permit number (California Department of Tax and Fee Administration sales tax number), if any, of the sidewalk vendor. If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal. (Q)Vendors shall not vend within 1000 feet of any City special event, farmers market, street fair, concert, or similar venue; or any Temporary Use Permit such as filming, parades, or outdoor concerts. (R) Street Vendors shall comply with and provide evidence of compliance to any applicable local, state or federal rules, regulations or laws. § 122.03 EXEMPTIONS The requirements of this chapter shall not apply to the following: (A) Any person delivering any goods or services by vehicle where such goods or services have been ordered in advance for such delivery from any business located at a permanent location and which goods or services are being delivered from such location to the customer by vehicle, regardless of the point of sale thereof. (B) Any person engaged in the vending of goods or services on public property where such person has been authorized by the city to engage in such activity by a permit, lease, real property license, agreement or other entitlements issued by the city for such purpose. (C) Charitable solicitations conducted by or for nonprofit organizations exempt under 26 U.S.C. §501 (c) (3). § 122.04 REGULATIONS FOR SALES FROM VEHICLES It is unlawful for any person to sell or offer for sale, or operate any vehicle or conduct any business for the purpose of causing the sale or for offering for sale, any goods or services from any vehicle parked, stopped or standing upon any public street, alley, parkway, sidewalk or other public property in the city except in accordance with all applicable provisions of the code and in compliance with each of the following requirements: 4 (A) Such vending shall be only by means of a vehicle duly registered and licensed by the state with an unladen weight of less than 6,000 pounds. (B) Such vending shall be limited to public streets only and shall not be permitted upon any alley, parkway, sidewalk, or other public property. (C) Each operator shall possess and at all times display in conspicuous view upon each such vehicle a city business license pursuant to Chapter 110 of this code of ordinances. (D) Each operator shall possess and at all times display in conspicuous view upon such vehicle an unexpired and unrevoked operator's permit issued pursuant to § 122.15. (E) It is unlawful for any vendor to sell or offer for sale any goods or services from any vehicle pursuant to this section unless such person possesses and at all times while conducting such vending maintains upon his or her person an unexpired and unrevoked vendor's permit issued pursuant to § 122.16. (F) It is unlawful for any operator to permit or allow any vendor under such operator's control, direction, charge or employ to vend any goods or services from any vehicle pursuant to this section unless such vendor possesses an unexpired and unrevoked vendor's permit issued pursuant to § 122.16. (G) Each operator causing the sale of or offering for sale any produce or other food item for which a food handling permit or other health permit is required by law shall possess and at all times display such required permit(s) in conspicuous view upon such vehicle. (H) No vending from such vehicle shall be permitted for a period of time in excess of ten minutes in any one location and said vehicle must be moved a distance of not less than 100 feet between consecutive stops at which vending occurs. (1) No vehicle shall be parked, stopped, or left standing in any manner which blocks or impedes vehicular access to any driveway or restricts the free movement of other vehicles upon the public street. (J) No vehicle shall be parked, stopped, or left standing in any manner which blocks or impedes vehicular access to any driveway or restricts the free movement of other vehicles upon the public street. (K) Each vehicle shall be equipped with a trash receptacle of a size adequate to accommodate all trash and refuse generated by such vending. (L) Each vendor shall pick up and deposit in the trash receptacle on the vehicle any paper, cups, wrappers, litter or other refuse of any kind which were a part of the goods or services supplied from the vehicle and which have been left or abandoned within 25 feet of such vehicle on any public property other than in a trash receptacle provided for such purposes. No vendor or operator shall dispose of any trash or refuse in any such public or private trash receptacle other than a trash receptacle owned, operated or otherwise provided by and under the control of such vendor or operator. (M)No vending shall be permitted except after the vehicle has been brought to a complete stop and parked adjacent to the curb in a lawful manner. (N) Any vehicle from which vending occurs pursuant to this section shall have the same name, address and telephone number of the holder of the operator's permit permanently affixed on both the left and right sides of the vehicle. Such information 5 shall be in contrast to the color of the background upon which the letters are placed. (0) No vending shall be permitted by any operator or conducted by any vendor except between the hours of 9:00 am and 8:00 pm of each day. (P) Any use of amplified sound making devices, including vehicle horns, to advertise, draw attention to or to announce the presence of any such vehicle shall comply with the limitations and provisions set forth in § 130.40 et seq. of this code of ordinances. No amplified sound making devices shall be used for such purposed upon any public street immediately contiguous to any residential zone property within the city. Nonamplified sound -making devices shall be permitted for such purposes provided such sounds shall not be made while the vehicle is stopped, parking, or otherwise in a stationary position; and such sounds shall not be audible to a person with normal hearing for a distance of more than 200 feet. (Q) Any operator or vendor using scales or any other weighing or measuring devices shall have all such scales and devices inspected and sealed by the Weights and Measures Division of the Los Angeles County Department of Agriculture. (R) All foods, beverages, utensils and equipment offered for sale or utilized on vending vehicles shall at all times be protected from contamination and pollution by dust, dirt, flies, vermin, rodents, animals, unnecessary handling, droplet infection, overhead leakage, insecticides, rodenticide, cleaning compounds and other poisonous or deleterious substances, and all other forms of contamination. (S) Any ice cream truck shall be equipped at all times, while engaging in vending in a residential area, with signs mounted on the front and rear clearly legible from a distance of 100 feet under daylight conditions, incorporating the words "WARNING" and "CHILDREN CROSSING". Each sign shall be at least 12 inches by 48 inches wide, with letters of a dark color, at least four inches in height, a one - inch wide solid border, and a sharply contrasting background. (T) The driver of the ice cream truck shall be required to place an orange cone at the left rear of the portion of the vehicle after the vehicle has been stopped and parked adjacent to the curb. (U) No ice cream trucks shall be permitted to vend on streets with a speed limit of more than 25 miles per hour. (V) The driver of the ice cream truck shall have an unobstructed view for 200 feet in both directions along the street and of any traffic on the said street. Unless otherwise waived by the city police department and, in addition to other equipment required by law, each food vending vehicle shall be equipped with the following: (1) A convex mirror mounted so that the occupant of the driver's seat can see the area in the front of the truck which is obscured by the vehicle's hood. (2) A back-up alarm audible for a distance of at least 100 feet. (Ord. 1082, passed 5-18-94; Am. Ord. 1265, passed 8-17-05) Penalty, see § 122.99. 0 PERMITS/BUSINESS LICENSE § 122.15 APPLICATION FOR OPERATOR'S PERMIT; CONTENTS; REQUIRED FEE. (A) Any person desiring to obtain an operator's permit to conduct or otherwise operate the business of vending goods or services pursuant to this section shall submit an application to the Business License Official/Finance Department. The application shall be accompanied by a non-refundable application fee in such amount established by resolution of the City Council. Any such permit shall be required to be renewed annually and a separate nonrefundable application fee paid yearly for the renewal application. (B) Each applicant for an operator's permit shall furnish the following information and documentation as part of or in conjunction with such application: (1) The present or proposed address from which the business is to be conducted. (2) The full true name under which the business will be conducted. (3) The full true name and any other names used by the applicant. (4) The present residence and business addresses and telephone numbers of the applicant. (5) A description of the goods or merchandise which the business will vend. (6) The number of vehicles to be owned, operated or controlled by the applicant and the makes, body styles, years, serial and engine numbers, state license plate numbers, and names and addresses of the registered and/or legal owners of each vehicle. (7) A description of the logo, color scheme, insignia, and any other distinguishing characteristics of applicant's vehicles. (8) A certificate of insurance or other additional proof as may be required by the City Attorney or Risk Manager showing evidence of a public liability and property damage insurance policy for vehicle liability coverage protecting the operator from all claims for damage to property or bodily injury including death, which may arise from the operation of vehicles under the permit or in connection therewith. The insurance shall provide coverage of not less than $100,000 for bodily injury for each person, $300,000 per occurrence and property damage coverage of $50,000 per occurrence. The insurance shall provide that the policy shall not terminate or be cancelled without 30 days advance written notice to the city. (9) The full true names and residence addresses of all persons employed or intended to be employed or with whom the applicant has contracted or intends to contract as drivers and/or vendors and the respective capacities in which they will be employed including the California driver's license numbers of all persons who will be employed or engaged as drivers of vehicles in conjunction with such business. The applicant, if an individual; or each of the directors, officers or stockholders holding more than 5% of the stock of the corporation; or each of the partners including limited partners, or profit interest holders, managers or other persons principally in charge of the operation of the existing or proposed business shall also furnish the following information: (a) California driver's license or social security numbers of the above described natural persons. (b) Dates of birth of the above described natural persons. (c) The permit histories of the above described natural persons for the three-year period immediately preceding the date of the filing of the application, including whether such persons, in previously operating in this or any other city, county, state, or territory, have ever had any similar license or permit, or franchise revoked or suspended, and if so, the circumstances of such suspension or revocation. (d) All criminal convictions including pleas of guilty or nolo contendere, suffered by the above-described natural persons, including code and ordinance violations, but excepting minor traffic offenses (any traffic offense designated as a felony shall not be construed as a minor traffic offense), stating the date, place, nature and sentence of each such conviction. (10) The applicant, if other than an individual, shall also furnish the following information: (a) Each business address of the applicant for the three-year period immediately preceding the date of the application and the inclusive dates of each business. (b) The nature of the business or firm for the three-year period immediately preceding the date of the application. (c) The permit history of the applicant for the three-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other city, county, state or territory, has ever had any similar license or permit, or franchise revoked or suspended and, if so, the circumstances of such suspension or revocation. (d) All criminal convictions, including pleas of guilty or nolo contendere, suffered by the applicant including ordinance violations, stating the date, place, nature, and sentence of each conviction. (11) Such other identification and/or information as the Business License Official/Finance Department may require in order to discover the truth of the matters required to be set forth in the application. § 122.16 APPLICATION FOR VENDOR'S PERMIT; CONTENT; REQUIRED FEE (A) Any person desiring to obtain a vendor's permit to engage in the vending of goods or services, pursuant to this section shall submit an application to Business License Official/Finance Department. (B) The application shall be accompanied by a nonrefundable application fee in such amount as established by resolution of the City Council. Any such permit shall be required to be renewed annually and a separate nonrefundable application fee paid yearly for the renewal application. 0 (C) Each applicant for a vendor's permit, or an operator or applicant for an operator's permit on behalf of the proposed vendor, shall furnish the following information and documentation as part of or in conjunction with the application: (1) The present of proposed address from which the business is to be conducted. (2) The full true name under which the business will be conducted. (3) The full true name and any other names used by the applicant. (4) The present residence address and telephone number of the applicant. (5) California driver's license number of the applicant. (6) Acceptable written proof that the applicant is at least 18 years of age. (7) The applicant's height, weight, color of eyes and hair, and date of birth. (8) The business, occupation or employment history of the applicant for the three-year period immediately preceding the date of the application. (9) The permit history of the applicant, for the three-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other city, county, state or territory, has ever had any similar license or permit, or franchise revoked or suspended, and if so, the circumstances of the suspension or revocation. (10) All criminal convictions, including pleas of guilty or nolo contendere, suffered by the applicant, including ordinance violations, and traffic offenses. (11) Written proof satisfactory to the City Attorney or Risk Manager that the applicant is insured under the policy of insurance required for such business pursuant to § 122.15 (H). (12) Such other identification and/or information as the City Clerk may require in order to discover the truth of the matters required to be set forth in the application. (13) When any change occurs regarding the written information required by divisions (c) (1) through (12) of this section prior to issuance of the permit/business license, the applicant shall give written notification of the change to the City Clerk within two weeks after such change. (14) If the applicant is an individual who intends to own, operate and drive his or her own vehicle, it is not necessary to pay a fee for the vendor's permit application separate from the fee paid for the operator's permit application. (Ord. 1082, passed 5-18-94) § 122.17 INVESTIGATION OF APPLICATIONS The Business License/Finance Department shall investigate all applications for operators permits and vendors permits made pursuant to this chapter, and shall within 30 days after the date of the filing of the application, render a written decision as to approval or denial of the application for the permit based upon the criteria set forth in § 122.18. (Ord. 1082, passed 5-18-94) § 122.18 ISSUANCE The Business License/Finance Department shall grant the vendor's permit or operator's permit only if he or she finds that all of the following requirements have been met: (A) The required fees have been paid. (B) The application conforms in all respects to the provisions of this chapter. (C) The applicant has not made a material misrepresentation of fact in the application. (D) The applicant has not had a similar permit denied or revoked by the city within a period of one year prior to the date of such application. (E) (1) The applicant if an individual; or any of the directors, officers or stockholders holding more than 5% of the stock of the corporation; or any of the partners, including limited partners, or profit interest holder, manager or other person principally in charge of the operation of the existing or proposed business of vending from a vehicle or a natural person employed or contracted with to be a driver or vendor, has not been convicted or pleaded nolo contendere or guilty within a five years prior to his application for a permit to a misdemeanor or felony crime of moral turpitude or drug-related misdemeanor or felony crime, including, but not limited to, the following: (a) The sale of a controlled substance specified in Cal. Health & Safety Code § 11054 through 11058. (b) The sale, distribution or display of harmful or obscene matter. (c) Indecent exposure. (d) In the case of applications for a vendor's permit by a person who will be a driver of a vehicle pursuant to this section, alcohol or drug-related traffic offenses. (2) The investigating city employee is specifically authorized to obtain state summary criminal history record information as provided for in Cal. Penal Code § 11105. Any complaint about the charges listed in division (1) above pending before a court of law shall cause the application to be considered pending until adjudication of the complaint. (ord. 1082, passed 5-18-94) § 122.19 DENIAL (A) If the Business License Official/Finance Department does not find that all of the requirements set forth in §122.15, 122.16 or 122.17, as applicable have been met, he or she shall deny the application for the vendor's or operator's permit. In the event the application for the permit is denied by the Business License Official/Finance Department, written notice of the denial shall be given to the applicant specifying the ground or grounds of such denial. Notice of denial of the application for the permit shall be deemed to have been served upon the date it is personally served on the applicant or when deposited in the United States mail with postage prepaid and addressed to the applicant at his or her residence address as set forth in the application for the permit. (B) Any applicant whose application for a vendor's or operator's permit has been denied by the Business License Official/Finance Department may appeal such denial to City Council by filing a written notice of appeal with the City Clerk or 10 designee within ten days following the date of service of the decision and payment of the appeal fee prescribed by resolution of the City Council. The date of filing of the notice of appeal shall be the date the notice and the appeal fee are received by the City Clerk or designee. (C) No person or entity whose permit is finally denied shall be eligible to apply for a new permit for a period of one year following the final denial. (Ord. 1082, passed 5-18-94) § 122.20 REVOCATION Any vendor's or operator's permit may be revoked by the City Clerk or designee for good cause shown, including but not necessarily limited to any of the following reasons: (A) Falsification of any information supplied by the permittee upon which issuance of a permit was based. (B) Conviction of a violation, or pleas of guilty or nolo contendere, by a permittee of any crime occurring while such person was engaged in conducting vending operations from a vehicle, whether within or outside the city, involving moral turpitude, or the possession or sale of any controlled substance specified in Cal. Health & Safety Code § 11054 through 11058, or the violation of any provision of Cal. Penal Code Title 9, Part 1, Chapters 1, 5, 7.5, 7.6 or 8, or an alcohol or drug-related offense in the case of a vendor's permit held by a person who is a driver of a vehicle operated pursuant to this section. (C) Exercise of the permit in a manner contrary to the public peace, health, safety or general welfare. (D) No such revocation shall become effective until the expiration of the appeal period specified in this section. Notification of the permit holder shall be made either by personal delivery or by certified or registered mail, return receipt requested, addressed to the permit holder at such permit holder's residence address as set forth on the application for a permit. Service shall be deemed made on the permit holder on the date personally delivered or on the date of the mailing. A permit holder may appeal the revocation to the City Council by filing a written notice of appeal with the City Clerk or designee within ten days following the date of service if the decision and payment of the appeal fee as prescribed by resolution of the City Council. The date of filing of the notice of appeal shall be the date the notice and appeal fee are received by the City Clerk or designee. If a timely appeal is filed, the revocation shall be stayed pending the decision of the City Council. Otherwise, the revocation shall be effective after the expiration of the appeal period. (E) No person or entity whose permit is revoked shall be eligible to apply for a new permit for a period of one year following the revocation. (ord. 1082, passed 5-18-94) § 122.21 APPEALS Upon receipt of a timely appeal, the City Council shall hear such appeal within 20 days following the date of the appeal and shall give the appellant not less than five days advance notice of the date of the hearing. The decisions of the City Council shall be based upon the same notice of the date of the hearing. The decision of the City Council shall be based upon the same criteria as set forth in this section which is applicable to the issuance 11 or revocation of the permit. The appellant shall be notified of the decision of the City Council by mailed, written notice. The decision of the City Council shall be final. No revocation of a permit pursuant to this section shall be deemed effective during the pendency of a timely filed appeal until the date of mailing of the City Council's decision; provided, however, no permit holder shall operate during any period of time in which the insurance coverage required by this section is not in full force and effect. (Ord. 1082, passed 5-18-94) § 122.99 PENALTY A violation of the sidewalk vending program that compiles with Government Code section 51308 is punishable by only the following: (A) An administrative fine not exceeding one hundred ($100) for a first violation. (B) An administrative fine not exceeding two hundred dollars ($200) for the second violation within one year of the first violation. (C) An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one year of the first violation. 2. The City may rescind a permit issued to a sidewalk vendor for the term of that permit upon the fourth violation or subsequent violations. The City may confiscate and/or impound goods and/or vehicle where said goods are being sold without the proper licenses required by this chapter. Section 2. The Chief Executive Officer or its designee is authorized to take action as may be necessary to implement this ordinance. Section 3. 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 4. Except as expressly modified pursuant to this Ordinance, all other provisions of the Municipal Code, except where expressly modified by ordinance, shall remain unmodified and in full force and effect. All ordinances in conflict with the provisions hereof are superseded to the extent of such conflict. Section 5. 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 6. Pursuant to California Government Code Section 36937 an ordinance may be adopted without the need to bring it back for a second reading. By adopting the ordinance as an urgency ordinance, the proposed amendments to the ordinance will go into effect immediately upon adoption. The City must make a finding that the urgency ordinance is necessary for the immediate preservation of the public peace, health or safety and must pass the urgency ordinance by at least 4/5th vote. The factual basis for approving this amended code is that the State of California has set a deadline of January 1, 2019, for local governments to set forth regulations and rules concerning street 12 vending. Based on this factual background adopting this urgency ordinance is necessary for the immediate preservation of the public peace, health and safety in that the residents of Baldwin Park require local rules and regulations for now permitted street vending. Introduced and adopted a regular meeting of the City Council of the City of Baldwin Park at a regular meeting of said Council on the 5t" day of December, 2018. 13 PASSED, APPROVED, AND ADOPTED this 5t" day of December, 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELESSS: CITY OF BALDWIN PARK I, JEAN M. AYALA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing Urgency Ordinance No. 1432 was introduced and duly adopted at a regular meeting of the City Council on December 5, 2018 by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JEAN M. AYALA CITY CLERK 14 Attachment 2 SB 946 (Lara) Street Vending ......................................................... III tilAl'E (1L (:ALIfUHNIA .ter.,. AUTHENTICATED 111if, ^j ELECTRONIC LEGAL MATERIAL Senate Bill No. 946 CHAPTER 459 An act to add Chapter 6.2 (commencing with Section 51036) to Part 1 of Division 1 of Title 5 of the Government Code, relating to sidewalk vendors. [Approved by Govemor September 17, 2018. Filed with Secretary of State September 17, 2018.] LEGISLATIVE COUNSEL'S DIGEST SB 946, Lara. Sidewalk vendors. Existing law authorizes a local authority, by ordinance or resolution, to adopt requirements for the public safety regulating any type of vending and the time, place, and manner of vending from a vehicle upon a street. This bill would prohibit a local authority, as defined, from regulating sidewalk vendors, except in accordance with the provisions of the bill. The bill would provide that a local authority is not required to adopt a new program to regulate sidewalk vendors if the local authority has established an existing program that substantially complies with the provisions of the bill. The bill would apply these provisions to a chartered or general law city, county, or city and county. The bill would require a local authority that elects to adopt a sidewalk vending program to, among other things, not require a sidewalk vendor to operate within specific parts of the public right-of-way, except when that restriction is directly related to objective health, safety, or welfare concerns, and not restrict sidewalk vendors to operate only in a designated neighborhood or area, except as specified. The bill would authorize a local authority to, by ordinance or resolution, adopt additional requirements regulating the time, place, and manner of sidewalk vending, as specified, if the requirements are directly related to objective health, safety, or welfare concerns. The bill would also authorize a local authority to prohibit sidewalk vendors in areas located within the immediate vicinity of a permitted certified farmers' market and a permitted swap meet, as specified, and to restrict or prohibit sidewalk vendors within the immediate vicinity of an area designated for a temporary special permit issued by the local authority, as specified. A violation would be punishable only by an administrative fine, as specified, pursuant to an ability -to -pay determination, and proceeds would be deposited in the treasury of the local authority. The bill would require the dismissal of any criminal prosecutions under any local ordinance or resolution regulating or prohibiting sidewalk vendors that have not reached final judgment. The bill would also authorize a person who is currently serving, or who completed, a sentence, or who is subject to a fine, for a conviction of a misdemeanor or infraction for sidewalk 93 Ch. 459 —2— vending, 2— vending, as specified, to petition for dismissal of the sentence, fine, or conviction. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The people of the State of California do enact as follows: SECTION 1. (a) The Legislature finds and declares all of the following: (1) Sidewalk vending provides important entrepreneurship and economic development opportunities to low-income and immigrant communities. (2) Sidewalk vending increases access to desired goods, such as culturally significant food and merchandise. (3) Sidewalk vending contributes to a safe and dynamic public space. (4) The safety and welfare of the general public is promoted by encouraging local authorities to support and properly regulate sidewalk vending. (5) The safety and welfare of the general public is promoted by prohibiting criminal penalties for violations of sidewalk vending ordinances and regulations. (6) This act applies to any city, county, or city and county, including a charter city. The criminalization of small business entrepreneurs, and the challenges that those entrepreneurs face as a result of a criminal record, are matters of statewide concern. Further, unnecessary barriers have been erected blocking aspiring entrepreneurs from accessing the formal economy, harming California's economy in the process, and disrupting the regulation of business, which is a matter of statewide concern. Moreover, California has an interest in the regulation of traffic, a matter of statewide concern, whether in ensuring the appropriate flow of traffic or in ensuring the safety of pedestrians on the road or the sidewalk. (b) It is the intent of the Legislature to promote entrepreneurship and support immigrant and low-income communities. SEC. 2. Chapter 6.2 (commencing with Section 51036) is added to Part 1 of Division 1 of Title 5 of the Government Code, to read: CHAPTER 6.2. SIDEWALK VENDORS 51036. For purposes of this chapter, the following definitions apply: (a) "Sidewalk vendor" means a person who sells food or merchandise from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path. (b) "Roaming sidewalk vendor" means a sidewalk vendor who moves from place to place and stops only to complete a transaction. 93 -3— Ch. 459 (c) "Stationary sidewalk vendor" means a sidewalk vendor who vends from a fixed location. (d) "Local authority" means a chartered or general law city, county, or city and county. 51037. (a) A local authority shall not regulate sidewalk vendors except in accordance with Sections 51038 and 51039. (b) Nothing in this chapter shall be construed to affect the applicability of Part 7 (commencing with Section 113700) of Division 104 of the Health and Safety Code to a sidewalk vendor who sells food. (c) Nothing in this chapter shall be construed to require a local authority to adopt a new program to regulate sidewalk vendors if the local authority has established an existing program that substantially complies with the requirements in this chapter. 51038. (a) A local authority may adopt a program to regulate sidewalk vendors in compliance with this section. (b) A local authority's sidewalk vending program shall comply with all of the following standards: (1) A local authority shall not require a sidewalk vendor to operate within specific parts of the public right-of-way, except when that restriction is directly related to objective health, safety, or welfare concerns. (2) (A) A local authority shall not prohibit a sidewalk vendor from selling food or merchandise in a park owned or operated by the local authority, except the local authority may prohibit stationary sidewalk vendors from vending in the park only if the operator of the park has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire. (B) Notwithstanding subparagraph (A), a local authority may adopt additional requirements regulating the time, place, and manner of sidewalk vending in a park owned or operated by the local authority if the requirements are any of the following: (i) Directly related to objective health, safety, or welfare concerns. (ii) Necessary to ensure the public's use and enjoyment of natural resources and recreational opportunities. (iii) Necessary to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the park. (3) A local authority shall not require a sidewalk vendor to first obtain the consent or approval of any nongovernmental entity or individual before he or she can sell food or merchandise. (4) (A) A local authority shall not restrict sidewalk vendors to operate only in a designated neighborhood or area, except when that restriction is directly related to objective health, safety, or welfare concerns. (B) Notwithstanding subparagraph (A), a local authority may prohibit stationary sidewalk vendors in areas that are zoned exclusively residential, but shall not prohibit roaming sidewalk vendors. (5) A local authority shall not restrict the overall number of sidewalk vendors permitted to operate within the jurisdiction of the local authority, 93 Ch. 459 —4— unless 4— unless the restriction is directly related to objective health, safety, or welfare concerns. (c) A local authority may, by ordinance or resolution, adopt additional requirements regulating the time, place, and manner of sidewalk vending if the requirements are directly related to objective health, safety, or welfare concerns, including, but not limited to, any of the following: (1) Limitations on hours of operation that are not unduly restrictive. In nonresidential areas, any limitations on the hours of operation for sidewalk vending shall not be more restrictive than any limitations on hours of operation imposed on other businesses or uses on the same street. (2) Requirements to maintain sanitary conditions. (3) Requirements necessary to ensure compliance with the federal Americans with Disabilities Act of 1990 (Public Law 101-336) and other disability access standards. (4) Requiring the sidewalk vendor to obtain from the local authority a permit for sidewalk vending or a valid business license, provided that the local authority issuing the permit or business license accepts a California driver's license or identification number, an individual taxpayer identification number, or a municipal identification number in lieu of a social security number if the local authority otherwise requires a social security number for the issuance of a permit or business license, and that the number collected shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or licensure program or comply with a state law or state or federal court order. (5) Requiring the sidewalk vendor to possess a valid California Department of Tax and Fee Administration seller's permit. (6) Requiring additional licenses from other state or local agencies to the extent required by law. (7) Requiring compliance with other generally applicable laws. (8) Requiring a sidewalk vendor to submit information on his or her operations, including, but not limited to, any of the following: (A) The name and current mailing address of the sidewalk vendor. (B) A description of the merchandise offered for sale or exchange. (C) A certification by the vendor that to his or her knowledge and belief, the information contained on the form is true. (D) The California seller's permit number (California Department of Tax and Fee Administration sales tax number), if any, of the sidewalk vendor. (E) If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal. (d) Notwithstanding subdivision (b), a local authority may do both of the following: (1) Prohibit sidewalk vendors in areas located within the immediate vicinity of a permitted certified farmers' market or a permitted swap meet during the limited operating hours of that certified farmers' market or swap meet. A "certified farmers' market" means a location operated in accordance with Chapter 10.5 (commencing with Section 47000) of Division 17 of the 93 -5— Ch. 459 Food and Agricultural Code and any regulations adopted pursuant to that chapter. A "swap meet" means a location operated in accordance with Article 6 (commencing with Section 21660) of Chapter 9 of Division 8 of the Business and Professions Code, and any regulations adopted pursuant to that article. (2) Restrict or prohibit sidewalk vendors within the immediate vicinity of an area designated for a temporary special permit issued by the local authority, provided that any notice, business interruption mitigation, or other rights provided to affected businesses or property owners under the local authority's temporary special permit are also provided to any sidewalk vendors specifically permitted to operate in the area, if applicable. For purposes of this paragraph, a temporary special permit is a permit issued by the local authority for the temporary use of, or encroachment on, the sidewalk or other public area, including, but not limited to, an encroachment permit, special event permit, or temporary event permit, for purposes including, but not limited to, filming, parades, or outdoor concerts. A prohibition of sidewalk vendors pursuant to this paragraph shall only be effective for the limited duration of the temporary special permit. (e) For purposes of this section, perceived community animus or economic competition does not constitute an objective health, safety, or welfare concern. 51039. (a) (1) A violation of a local authority's sidewalk vending program that complies with Section 51038 is punishable only by the following: (A) An administrative fine not exceeding one hundred dollars ($100) for a first violation. (B) An administrative fine not exceeding two hundred dollars ($200) for a second violation within one year of the first violation. (C) An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one year of the first violation. (2) A local authority may rescind a permit issued to a sidewalk vendor for the term of that permit upon the fourth violation or subsequent violations. (3) (A) If a local authority requires a sidewalk vendor to obtain a sidewalk vending permit from the local authority, vending without a sidewalk vending permit may be punishable by the following in lieu of the administrative fines set forth in paragraph (1): (i) An administrative fine not exceeding two hundred fifty dollars ($250) for a first violation. (ii) An administrative fine not exceeding five hundred dollars ($500) for a second violation within one year of the first violation. (iii) An administrative fine not exceeding one thousand dollars ($1,000) for each additional violation within one year of the first violation. (B) Upon proof of a valid permit issued by the local authority, the administrative fines set forth in this paragraph shall be reduced to the administrative fines set forth in paragraph (1), respectively. (b) The proceeds of an administrative fine assessed pursuant to subdivision (a) shall be deposited in the treasury of the local authority. 93 Ch. 459 —6— (c) 6— (c) Failure to pay an administrative fine pursuant to subdivision (a) shall not be punishable as an infraction or misdemeanor. Additional fines, fees, assessments, or any other financial conditions beyond those authorized in subdivision (a) shall not be assessed. (d) (1) A violation of a local authority's sidewalk vending program that complies with Section 51038, or a violation of any rules or regulations adopted prior to January 1, 2019, that regulate or prohibit sidewalk vendors in the jurisdiction of a local authority, shall not be punishable as an infraction or misdemeanor, and the person alleged to have violated any of those provisions shall not be subject to arrest except when permitted under law. (2) Notwithstanding any other law, paragraph (1) shall apply to all pending criminal prosecutions under any local ordinance or resolution regulating or prohibiting sidewalk vendors. Any of those criminal prosecutions that have not reached final judgment shall be dismissed. (e) A local authority that has not adopted rules or regulations by ordinance or resolution that comply with Section 51037 shall not cite, fine, or prosecute a sidewalk vendor for a violation of any rule or regulation that is inconsistent with the standards described in subdivision (b) Section 51038. (f) (1) When assessing an administrative fine pursuant to subdivision (a), the adjudicator shall take into consideration the person's ability to pay the fine. The local authority shall provide the person with notice of his or her right to request an ability -to -pay determination and shall make available instructions or other materials for requesting an ability -to -pay determination. The person may request an ability -to -pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program. (2) If the person meets the criteria described in subdivision (a) or (b) of Section 68632, the local authority shall accept, in full satisfaction, 20 percent of the administrative fine imposed pursuant to subdivision (a). (3) The local authority may allow the person to complete community service in lieu of paying the total administrative fine, may waive the administrative fine, or may offer an alternative disposition. (g) (1) A person who is currently serving, or who completed, a sentence, or who is subject to a fine, for a conviction of a misdemeanor or infraction for sidewalk vending, whether by trial or by open or negotiated plea, who would not have been guilty of that offense under the act that added this section had that act been in effect at the time of the offense, may petition for dismissal of the sentence, fine, or conviction before the trial court that entered the judgment of conviction in his or her case. (2) Upon receiving a petition under paragraph (1), the court shall presume the petitioner satisfies the criteria in paragraph (1) unless the party opposing the petition proves by clear and convincing evidence that the petitioner does not satisfy the criteria. If the petitioner satisfies the criteria in paragraph (1), the court shall grant the petition to dismiss the sentence or fine, if applicable, and dismiss and seal the conviction, because the sentence, fine, and conviction are legally invalid. 93 -7— Ch. 459 (3) Unless requested by the petitioner, no hearing is necessary to grant or deny a petition filed under paragraph (1). (4) If the court that originally sentenced or imposed a fine on the petitioner is not available, the presiding judge shall designate another judge to rule on the petition. (5) Nothing in this subdivision is intended to diminish or abrogate any rights or remedies otherwise available to the petitioner. (6) Nothing in this subdivision or related provisions is intended to diminish or abrogate the finality of judgments in any case not falling within the purview of this chapter. SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 51038 to the Government Code, imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: The Legislature finds and declares that in order to protect the privacy of a sidewalk vendor with regard to his or her California driver's license or identification number, individual taxpayer identification number, or municipal identification number, when that number is collected in lieu of a social security number for purposes of the issuance of a permit or business license, it is necessary that the sidewalk vendor's number be confidential, except as provided in this act. 93 SUMMARY This report requests City Council amend Development Agreement 18-18 between the City of Baldwin Park and the Grown Folks Inc. to change the location from 14712 Arrow Highway to 4802 Littlejohn Street Ste. A within the I, Industrial Zone pursuant to Ordinance 1408. RECOMMENDATION Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only and waive further reading, Ordinance 1433, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE GROWN FOLKS, INC. FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLEJOHN STREET, SUITE A (APN 8535-023-011) WITHIN THE CITY OF BALDWIN PARK". FISCAL IMPACT Each of the Development Agreements has a financial component that provides a positive fiscal impact to the City. Please refer to each of the attachments for the specific financial details of each Agreement. CEQA In accordance with the provisions of the California Environment Quality Act (CEQA), it has been determined that the proposed Amendment to the Development Agreement, DA 18-18, will not have a significant impact of the environment and is Categorically Exempt pursuant to Article 19, Section 15301, Class 1, 'Existing Facilities'. Furthermore the new proposed location is within an existing building. DISCUSSION Development Agreement 18-18 was originally considered by the Planning Commission on June 13, 2018. Planning Commission adopted Resolution 18-13 recommending approval to the City Council of six (6) development agreements for Cannabis facilities, including DA 18-18. City Council adopted Ordinance 1412 on June 20, 2018 to authorize the City of Baldwin Park to enter into a development agreement with the Green Folks, Inc. for the cultivation and/or manufacturing of Cannabis at 14712 Arrow Highway (APN: 8414-005-002) within the City of Baldwin Park. On August 22, 2018, the Planning Division received a letter from Mr. Steve Chan, C.E.O of The Grown Folks Inc. requesting a change of location for their approved cannabis permit from 14712 Arrow Highway to 4802 Littlejohn Street Suite A. The letter cited the difference in size and current condition of the original location as the paramount reason for the change. Also, the new commercial space was much larger which would allow for a longer lease and additional business growth. The new facility will not require as many costly tenant improvements as the previous location. In addition to the letter, a change of location application, application fee, new radius and label package, revised site plan, revised floor plan, revised security plan, revised neighborhood compatibility plan, revised vicinity map, and a copy of the new lease was submitted. No change in ownership is proposed. Planning Staff conducted the preliminary review of the new proposed site to ensure compliance with zoning and distance requirements. The new location is within the Industrial (1) zone and is at a distance greater than 600 feet from a school, childcare facility, youth center or park and is a distance greater than 50 feet from a residential zone. The new location was a previously approved location for DA 18-14, applicant- VRD Inc. The Planning Division does have written confirmation that VRD Inc. will no longer be utilizing 4802 Littlejohn Street and will also be submitting a Change of Location application to the City in the coming weeks. On November 28, 2018 the Planning Commission adopted Resolution 18-26 recommending approval to the City Council to adopt Ordinance 1433 and amend DA 18-18 to change the location from 14712 Arrow Highway to 4802 Littlejohn Ste. A, for the cultivation and/or manufacturing of adult and/or medical cannabis. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS #1 Amended DA 18-18, "Exhibit A" #2 Ordinance 1433 #3 Revised Informational Table: CAN 17-23 #4 Revised Vicinity Map #5 Findings of Fact #6 Change of Location Application ,Ik ATTACHMENT #1 REVISED DA 18-18 AMENDED DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BALDWIN PARK AND THE GROWN FOLKS, INC. ARTICLE 1. PARTIES AND DATE. This Government Code Amended Statutory Development Agreement ("STATUTORY AGREEMENT") is dated November 28, 2018 for references purposes only and in Case No. 18-18 and is entered into between (i) the City of Baldwin Park ("City"), a California municipal corporation, and (ii) The Grown Folks, Inc. ("Owner"). This STATUTORY AGREEMENT shall become effective on the Effective Date defined in Section 3.1.9 below. ARTICLE 2. RECITALS. 2.1 WHEREAS, this Statutory Development Agreement is pursuant to Government Code and is intended to be a Statutory Development Agreement under and through Government Code Section 65864 et seq.; and 2.2 WHEREAS, the City is authorized pursuant to Government Code Section 65864 et seq. to enter into binding statutory development agreements with persons having legal or equitable interests in real property for the development of such property; and 2.3 WHEREAS, Owner commenced its efforts to obtain approvals and clearances to cultivate and manufacture medical and adult use cannabis in September 2017; and at that time the City determined that the uses authorized in this STATUTORY AGREEMENT were lawfully permitted and authorized to occur on Owner's Property, subject to Owner's acquisition of various entitlements, as discussed herein; and 2.4 WHEREAS, Owner voluntarily enters into this STATUTORY AGREEMENT and after extensive negotiations and proceedings have been taken in accordance with the rules and regulations of the City, Owner has elected to execute this STATUTORY AGREEMENT as it provides Owner with important economic and development benefits; and 2.5 WHEREAS, this STATUTORY AGREEMENT and the Project are consistent with the City's General Plan and Zoning Code and applicable provisions of the City's applicable Zoning Map and the Baldwin Park Municipal Code as of the Agreement Date; and 2.6 WHEREAS, all actions taken and approvals given by the City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and -1- 2.7 WHEREAS, this STATUTORY AGREEMENT will eliminate uncertainty in planning and provide for the orderly development of the Project and/or Property, ensure progressive installation of necessary improvements, and provide for public services appropriate to the development of the Project; and 2.8 WHEREAS, in implementation of the promulgated state policy to promote private participation in comprehensive planning and to strengthen the public planning process and to reduce the economic risk of development, the City deems the implementation of this STATUTORY AGREEMENT to be in the public interest and intends that the adoption of this STATUTORY AGREEMENT be considered an exercise of the City's police powers to regulate the development of the Property during the Term of this STATUTORY AGREEMENT; and 2.9 WHEREAS, this STATUTORY AGREEMENT is consistent with the public health, safety and welfare needs of the residents of the City and the surrounding region and the City has specifically considered and approved the impact and benefits of the development of the Property in accordance with this STATUTORY AGREEMENT upon the welfare of the region; and 2.10 WHEREAS, Owner intends to develop a Cannabis Manufacturing and Cultivation Facility pursuant to the Baldwin Park Municipal Code ("BPMC") Chapter 127 and all applicable state laws, rules, and regulations; and 2.11 WHEREAS, concurrently with execution of this STATUTORY AGREEMENT, City acknowledges that Owner has been authorized to cultivate and manufacture cannabis and cannabis related products at its facility or facilities up to 22,000 square feet. 2.12 WHEREAS, the City entered into a Development Agreement with Rukli, Inc. to be the exclusive distributor of cannabis and cannabis related products in the City of Baldwin Park. The City is entering into development agreements with owners for permits for cultivation and manufacturing of cannabis and cannabis related products in the City of Baldwin Park. The City prohibits the sale of cannabis and cannabis related products within the City of Baldwin Park so the cannabis and cannabis related products must be distributed to and sold in cities where it is legal to do so. Rukli, Inc. shall be the exclusive distributor for the cultivation and/or manufacturing permit holders within the City of Baldwin Park and City conditions the cultivation and/or manufacturing permits on Rukli, Inc. being the exclusive distributor for any permit issued by Baldwin Park for cultivation or manufacturing. ARTICLE 3. GENERAL TERMS. 3.1 Definitions and Exhibits. The following terms when used in this STATUTORY AGREEMENT shall be defined as follows: 3.1.1 "Agreement" means this STATUTORY AGREEMENT pursuant to Government Code Section 65864 et seq. -2- corporation. 3.1.2 "City" means the City of Baldwin Park, a California municipal 3.1.3 "Days" mean calendar days unless otherwise specified. 3.1.4 "Dedicate" means to offer the subject land for dedication and to post sufficient bonds or other security if necessary for the improvements to be constructed including, but not limited to: grading, the construction of infrastructure and public facilities related to the Project whether located within or outside the Property, the construction of buildings and structures, and the installation of landscaping. 3.1.5 "Development" If applicable, includes grading, construction or installation of public and private facilities and the right to maintain, repair or reconstruct any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such maintenance, repair, or reconstruction take place within the Term of this STATUTORY AGREEMENT on the Property. 3.1.6 "Development Approvals" If applicable, means all other entitlements for the Development of the Property, including any and all conditions of approval, subject to approval or issuance by the City in connection with Development of the Property. "Development Approvals" also include both the Existing Development Approvals and the Subsequent Development Approvals approved or issued by the City that are consistent with this STATUTORY AGREEMENT. 3.1.7 "Development Plan" If applicable, means the Existing Development Approvals and the Existing Land Use Regulations applicable to development of the Property for the Project, as modified and supplemented by Subsequent Development Approvals. 3.1.8 "BPMC" means the City of Baldwin Park Municipal Code. 3.1.9 "Effective Date" means the day this STATUTORY AGREEMENT is approved and adopted by the Baldwin Park City Council and signed by the Mayor of Baldwin Park or his designee. 3.1.10 "Existing Development Approvals" If applicable, means all Development Approvals approved or issued prior to or on the Effective Date. Existing Development Approvals include the approvals set forth in Section 3.1.6 and all other approvals which are a matter of public record prior to or on the Effective Date. 3.1.11 "Existing Land Use Regulations" If and where applicable, means all Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations include all regulations that are a matter of public record on the Effective Date as they may be modified by the Existing Development Approvals. 3.1.12 "Land Use Regulations" If and where applicable means all ordinances, resolutions and codes adopted by the City governing the development and use of land, including the permitted use of land, the density or intensity of use, -3- subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or Dedication of land for public purposes, and the design, improvement and construction and initial occupancy standards and specifications applicable to the Development of the Property. 3.1.13 "Mortgagee" If applicable, means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device lender and its successors - in interest. 3.1.14 "Owner" means The Grown Folks, Inc., a California corporation. 3.1.15 "Processing Fees" means the normal and customary application, filing, plan check, permit fees for land use approvals, design review, tree removal permits, building permits, demolition permits, grading permits, and other similar permits and entitlements, and inspection fees, which fees are charged to reimburse the City's expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlements are granted or conducted by the City. 3.1.16 "Project" If applicable means the Development of the Property contemplated by the Development Plan, as such Development Plan may be further defined, enhanced or modified pursuant to the provisions of this STATUTORY AGREEMENT. The Project shall consist of this STATUTORY AGREEMENT, the Development Plans, the application, any and all entitlements, licenses, and permits related to the Project. 3.1.17 "Property" means the real property described as APN 8525-023-11 and identified in Section 3.4 and incorporated herein by this reference. Owner may modify the location or locations or add locations to the Property subject to City approval and all applicable zoning and distance requirements. 3.1.18 "Reasonable" means using due diligence to accomplish a stated objective that the subject party is capable of performing or providing under the circumstances in a manner that is consistent with the intent and objectives of the STATUTORY AGREEMENT. 3.1.19 "Reservations of Authority" means the rights and authority excepted from the assurances and rights provided to Owner under this STATUTORY AGREEMENT and reserved to the City as described in Section 4.4. 3.1.20 "Space or Canopy Space" shall mean any space or ground, floor or other surface area (whether horizontal or vertical) which is used during the marijuana germination, seedling, vegetative, pre -flowering, flowering, curing and/or harvesting phases, including without limitation any space used for activities such as growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any such space -4- used for storing any cannabis, no matter where such storage may take place or such storage space may be located. 3.1.21 "Subsequent Development Approvals" If applicable, means all future discretionary approvals and all ministerial Development Approvals required subsequent to the Effective Date in connection with development of the Property, including without limitation, subdivision improvement agreements that require the provision of bonds or other securities. Subsequent Development Approvals include, but are not limited to, all excavation, grading, building, construction, demolition, encroachment or street improvement permits, occupancy certificates, utility connection authorizations, or other permits or approvals necessary, convenient or appropriate for the grading, construction, marketing, use and occupancy of the Project within the Property at such times and in such sequences as Owner may choose consistent with the Development Plan and this STATUTORY AGREEMENT. 3.1.22 "Subsequent Land Use Regulations" If applicable means any Land Use Regulations defined in Section 3.1.12 that are adopted and effective after the Effective Date of this STATUTORY AGREEMENT. 3.2 Documents. The following documents are attached to and, by this reference, are made part of this STATUTORY AGREEMENT: No. 1 — Legal Description of the Property. No. 2 — Map showing Property and its location. No. 3 —Application. 3.3 Binding Effect of STATUTORY AGREEMENT. The Property is hereby made subject to this STATUTORY AGREEMENT. Subject to Owner's receipt of all Development Approvals relative thereto, the Development of the Property is hereby authorized and shall, except as otherwise provided in this STATUTORY AGREEMENT, be carried out only in accordance with the terms of this STATUTORY AGREEMENT and the Development Plan, if any. In the event of conflict or uncertainty between this STATUTORY AGREEMENT and the Development Plan, the provisions of this STATUTORY AGREEMENT shall control. 3.4 Ownership of Property. Owner represents and covenants that it has a legal or equitable interest in the Property, which has an Assessor's Parcel Number of Assessor's Parcel Number of 8525-023-011 and is more particularly described as 4802 Little John Street, Suite B, Baldwin Park, California 91706. 3.5 Term. The parties agree that the Term of this STATUTORY AGREEMENT shall be fifteen (15) years commencing on the Effective Date subject to the written extension and early termination provisions described in this STATUTORY AGREEMENT. Upon termination of this STATUTORY AGREEMENT, this STATUTORY AGREEMENT shall be deemed terminated and of no further force and effect, except terms that are expressly stated in this STATUTORY AGREEMENT to -5- survive termination without the need of further documentation from the parties hereto. The STATUTORY AGREEMENT's Fee is subject to renegotiation after the first term, and every five year term thereafter. 3.5.1 Term Extension. This STATUTORY AGREEMENT may only be extended by mutual agreement of City and Owner in writing and signed by Owner and the Mayor of Baldwin Park. If the Mayor of Baldwin Park does not sign the agreement or renegotiated agreement any such agreement is null and void. 3.6 Automatic Termination. This STATUTORY AGREEMENT shall automatically terminate upon the occurrence of any of the following events: (i) Expiration of the Term of this STATUTORY AGREEMENT as set forth in Section 3.5; (ii) The entry of a final judgment (or a decision on any appeal therefrom) voiding the City's General Plan or any element thereof, which judgment or decision would preclude development of the Project, but only if the City is unable to cure such defect in the General Plan or element within one hundred and eighty (180) days from the later of entry of final judgment or decision on appeal. (iii) Failure to timely pay the Fee or Fees. Failure to timely pay the $50,000 towards the policy salary or benefits. Failure to pay any fees due to the City under this STATUTORY AGREEMENT. 3.6.1 Effect of Termination. Termination of this STATUTORY AGREEMENT shall constitute termination of all land use entitlements and permits approved for the Owner and/or the Property. Upon the termination of this STATUTORY AGREEMENT, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination, or with respect to any default in the performance of the provisions of this STATUTORY AGREEMENT which has occurred prior to such termination, or with respect to any obligations which are specifically and expressly set forth as surviving this STATUTORY AGREEMENT. 3.7 Notices. 3.7.1 Notice Defined. As used in this STATUTORY AGREEMENT, notice includes, without limitation, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. 3.7.2 Written Notice and Delivery. All notices shall be in writing and shall be considered given: (i) when delivered in person to the recipient named below; or 0 (ii) three days after deposit in the United States mail, postage prepaid, addressed to the recipient named below; or (iii) on the date of personal delivery shown in the records of the delivery company after delivery to the recipient named below; or (iv) on the date of delivery by facsimile transmission to the recipient named below if a hard copy of the notice is deposited in the United States mail, postage prepaid, addressed to the recipient named below. All notices shall be addressed as follows: If to the City: Chief Executive Officer 14403 E. Pacific Avenue Baldwin Park, CA 91706 If to Owner: Steve Chan 4802 Little John Street, Suite A Baldwin Park, CA 91706 3.7.3 Address Changes. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 3.8 Validity of this STATUTORY AGREEMENT. Owner and the City each acknowledge that neither party has made any representations to the other concerning the enforceability or validity of any one or more provisions of this STATUTORY AGREEMENT. The parties acknowledge and agree that neither party shall allege in any administrative or judicial proceeding that the entering into or the performance of any obligations created in this STATUTORY AGREEMENT violates federal or state law, with respect to all federal, state and local statutes, ordinances or regulations in effect as of the Effective Date. 3.9 Fee. Fee means the amount(s) set by the City, negotiated with Owner, to provide City commensurate benefit based on a private benefit conferred upon Owner. Fee shall include City's cost to research cannabis and cannabis laws and regulations, draft cannabis ordinance, conduct public meetings, negotiate development agreements, process applications, and any other acts taken by the City in furtherance of medical and adult commercial use of cannabis. ARTICLE 4. DEVELOPMENT OF THE PROPERTY. 4.1 Right to Develop. Owner shall, subject to the terms of this STATUTORY AGREEMENT, develop the Property with a commercial cannabis facility in accordance with and to the extent of the Development Plan and/or application. The Property shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the Development Plan and/or application. -7- 4.2 Effect of STATUTORY AGREEMENT on Land Use Regulations. Except as otherwise provided by this STATUTORY AGREEMENT, the rules, regulations and official policies and conditions of approval governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement, occupancy and construction standards and specifications applicable to development of the Property shall be the Development Plan and/or application. Provided, however, that in approving tentative subdivision maps, the City may impose ordinary and necessary dedications for rights-of-way or easements for public access, utilities, water, sewers and drainage, having a nexus with the particular subdivision; provided, further, that the City may impose and will require normal and customary subdivision improvement agreements and commensurate security to secure performance of Owner's obligations thereunder. 4.3 Changes to Project. The parties acknowledge that changes to the Project or Development Approvals may be appropriate and mutually desirable. The City shall act on such applications, if any, in accordance with the Existing Land Use Regulations, subject to the Reservations of Authority, or except as otherwise provided by this STATUTORY AGREEMENT. If approved, any such change in the Existing Development Approvals shall be considered an additional Existing Development Approval. 4.4 Reservations of Authority. Any other provision of this STATUTORY AGREEMENT to the contrary notwithstanding, the Development of the Property shall be subject to subsequently adopted ordinances, resolutions ("Subsequent Land Use Regulations" or sometimes referred to as "Reservation of Authority") on the following topics: (i) Processing Fees imposed by the City to cover the estimated or actual costs to the City of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued, which fees are charged to reimburse the City's lawful expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlement are granted or conducted by the City. (ii) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (iii) Regulations governing engineering and construction standards and specifications including, any and all uniform codes adopted by the State of California and subsequently adopted by the City. (iv) Regulations which may be in conflict with the Development Plan but which are reasonably necessary to protect the public health and safety; provided, however, the following shall apply: 0 (a) That to the extent possible, such regulations shall be applied and construed so as to provide Owner with the rights and assurances provided in this STATUTORY AGREEMENT; (b) That such regulations apply uniformly to all new development projects of the same uses within the City; and (v) Regulations that do not conflict with the Development Plan. The term "do not conflict" means new rules, regulations, and policies which: (a) do not modify the Development Plan, including, without limitation, the permitted land uses, the density or intensity of use, the phasing or timing of Development of the Project, the maximum height and size of proposed buildings on the Property, provisions for Dedication of land for public purposes and Development Exactions, except as expressly permitted elsewhere in this STATUTORY AGREEMENT, and standards for design, development and construction of the Project; (b) do not prevent Owner from obtaining any Subsequent Development Approvals, including, without limitation, all necessary approvals, permits, certificates, and the like, at such dates and under such circumstances as Owner would otherwise be entitled by the Development Plan; or (c) do not prevent Owner from commencing, prosecuting, and finishing grading of the land, constructing public and private improvements, and occupying the Property, or any portion thereof, all at such dates and schedules as Owner would otherwise be entitled to do so by the Development Plan. (vi) The City shall not be prohibited from applying Project Subsequent Land Use Regulations that do not affect permitted uses of the land, density, design, public improvements (including construction standards and specifications) or the rate of development of the Development, nor shall the City be prohibited from denying or conditionally approving any Subsequent Development applications on the basis of such subsequent Land Use Regulations. 4.5 Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of the City possess authority to regulate aspects of the development of the Property separately from or jointly with the City, and this STATUTORY AGREEMENT does not limit the authority of such other public agencies. The City shall reasonably cooperate with other public agencies processing Development Approvals for the Project. 4.6 Tentative Subdivision Map and Development Approvals Lifespan. The term of any tentative subdivision map shall be in effect for a period of fifteen (15) years, and may be extended pursuant to the provisions of the California Subdivision Map Act (Government Code §§ 66410 et seq.) All Development Approvals shall not expire if Owner commences substantial construction of the Project within one (1) year from the Effective Date of this STATUTORY AGREEMENT. "Substantial Construction" means the issuance of a building permit in furtherance of the Project. 4.7 Satisfaction of Conditions of Approval. Owner shall comply with any and all conditions of approval for any entitlement, permit, or license it receives from the City. 4.8 Subsequent Entitlements. Prior to commencement of construction of the Project, Owner shall be required to submit applications for any and all subsequent entitlements, if any, consistent with the terms and conditions set forth in this STATUTORY AGREEMENT. 4.9 City Records Inspection. Owner acknowledges and agrees that the City is empowered to examine Owner's books and records, including tax returns. The City has the power and authority to examine such books and records at any reasonable time, including but not limited to, during normal business hours. If the City wishes to inspect the areas of the Property where the cannabis is being cultivated or manufactured, City may do so at any time with no prior notice to Owner. In addition, City agrees that all of its employees or agents which enter the cultivation, manufacturing, and curing areas shall follow all of the policies and guidelines imposed on Owner's employees, including without limitation, the wearing of any clothing or equipment to insure that no pests or impurities shall enter the cultivation and curing areas. ARTICLE 5. PUBLIC BENEFITS. 5.1 Intent. The parties acknowledge and agree that development of the Property will result in substantial public needs which will not be fully met by the Development Plan and further acknowledge and agree that this STATUTORY AGREEMENT confers substantial private benefits on Owner which should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on Owner by providing more fully for the satisfaction of the public needs resulting from the Project. 5.2 For the first year, Owner will pay the City a total of $220,000 as a Fee. This fee is calculated based on $10.00 a square foot of permit space and a permit which allows up to 22,000 sq. feet, among other factors. 5.3 In year two and year three, the Fee will increase to $12.50 per sq. foot for a total of $275,000 per year, among other factors. 5.4 At the beginning of year four and year five, Owner will pay a Fee of $15.00 per sq. foot for a total of $330,000 per year. 5.5 The Fee schedule is as follows: The first Fee payment is due 6 months after this STATUTORY AGREEMENT is signed by the Mayor of Baldwin Park. The second and last payment for the first year is due 6 months after the first payment. For years 2 through 15, the Fee schedule is as follows: divide the total Fee for the respective year into four and make four equal payments due at the end of each quarter. If Owner and City cannot agree to a new Fee or Fees by December 22, 2022, this STATUTORY AGREEMENT will automatically terminate on December 23, 2022. 5.6 The Fee is subject to reassessment by the City every five years. At the end of year five, the City will set a new Fee which will be applied in years 6 through 10. At the end of year 10, the City will set new Fee which will be applied in years 11 through 15. No one factor is dispositive in the City's determination of the new Fee. The -10- Cannabis permit will expire at the close of the 15th year and will require the Owner to reapply with the City for a new permit. 5.7 Further, Owner will pay a yearly payment of $50,000 each year to the City that can be used to mitigate the impact of the cannabis business on the City and its resources which includes but is not limited to, to use to pay a part of a police officer's salary and/or benefits. This $50,000 amount will be due at the time the permit is issued. Subsequent annual payments will be due on the permit issuance anniversary date. This payment is due within thirty (30) days of issuance of the permit and thereafter on the anniversary of the issuance of the permit. 5.8 Jobs and Wage Creation. 5.8.1 Local Hiring. Owner agrees to use its reasonable efforts to hire qualified City residents for jobs at the Project. Owner shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City or who employ a significant number of City residents. At least 20 percent of the Project's workforce shall consist of residents of the City. Job announcements shall be posted at City Hall, along with proof that the job announcements were advertised in at least two newspapers published, printed or distributed in the City and on various social media sites accessible to the general public. In addition, Owner shall make a good faith effort to advertise job announcements at local job fairs and on local radio 5.9 Development Agreement Administrative Fee Deposit. Owner shall be responsible for all of the City's actual costs associated with processing Development Approvals for the Project including, but not limited to, costs associated with the City's review and processing of the Project, including but not limited to reviewing the Project's entitlements, including all environmental clearance documents, permits, licenses and all documents evidencing compliance with state and local law. As such, upon issuance of its permit, Owner must deposit $15,000 with the City for the purpose of reimbursing the City for any associated costs with processing the Project, as detailed above and reimbursing the City for its actual costs incurred in drafting and processing this STATUTORY AGREEMENT. Owner will be liable for the City's actual costs incurred in processing future Development Approval applications. City acknowledges and agrees that this payment is not merely a deposit, but is a cap on the amount of the City's actual costs incurred in processing this STATUTORY AGREEMENT. ARTICLE 6. DISTRIBUTION AND TRANSPORTATION 6.1 Transportation of Cannabis. All pick ups and drop offs of cannabis and cannabis products into and out of the City of Baldwin Park shall be by the exclusive distributor, Rukli, Inc., or such other company should Rukli, Inc. no longer hold that right. Owner shall not, on its own or through any person or entity, arrange for pick ups or drop offs of cannabis or cannabis products into or out of the City of Baldwin Park for any purpose, except by the exclusive distributor. -11- 6.2 Distribution of Cannabis. Owner shall distribute its cannabis and cannabis products only through the City's exclusive distributor. Owner shall cooperate fully with the City's exclusive distributor regarding the accounting for product, revenue and tax collection. 6.3 Owner and the City's exclusive distributor shall reach their own agreement regarding fees for the exclusive distributor's services. ARTICLE 7. REVIEW FOR COMPLIANCE. 7.1 Periodic Review. The City Council shall review this STATUTORY AGREEMENT annually, on or before each anniversary of the Effective Date, in order to ascertain Owner's good faith compliance with this STATUTORY AGREEMENT. During the periodic review, Owner shall be required to demonstrate good faith compliance with all the terms of the STATUTORY AGREEMENT. 7.2 Special Review. The City Council may order a special review of compliance with this STATUTORY AGREEMENT at any time. 7.3 Review Hearing. At the time and place set for the review hearing, Owner shall be given an opportunity to be heard. If the City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this STATUTORY AGREEMENT, the City Council may automatically terminate this STATUTORY AGREEMENT notwithstanding any other provision of this STATUTORY AGREEMENT to the contrary, or modify this STATUTORY AGREEMENT and impose such conditions as are reasonably necessary to protect the interests of the City. The decision of the City Council shall be final, subject only to judicial review. 7.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, the City Council determines that Owner is in compliance with this STATUTORY AGREEMENT, the City shall issue a Certificate of Agreement Compliance ("Certificate") to Owner stating that after the most recent periodic or special review, and based upon the information known or made known to the City Council, that (i) this STATUTORY AGREEMENT remains in effect and (ii) Owner is not in default. The City shall not be bound by a Certificate if a default existed at the time of the periodic or special review, but was concealed from or otherwise not known to the City Council, regardless of whether or not the Certificate is relied upon by assignees or other transferees or Owner. 7.5 Failure to Conduct Review. The City's failure to conduct a periodic review of this STATUTORY AGREEMENT shall not constitute a breach of this STATUTORY AGREEMENT. 7.6 Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by the City. The Owner is not liable for any costs associated with any City periodic review of this STATUTORY AGREEMENT. The Owner is not liable for costs incurred for reviews. -12- ARTICLE 8. DEFAULTS AND REMEDIES. 8.1 Remedies in General. It is acknowledged by the parties that the City would not have entered into this STATUTORY AGREEMENT if it were to be liable in damages under this STATUTORY AGREEMENT, or with respect to this STATUTORY AGREEMENT or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure or delay by either party to perform any term or provision of this STATUTORY AGREEMENT shall constitute a default. In the event of alleged default or breach of any terms or conditions of this STATUTORY AGREEMENT, the party alleging such default or breach shall give the other party thirty (30) days' notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this STATUTORY AGREEMENT through any state court, except that the City shall not be liable in monetary damages, unless expressly provided for in this STATUTORY AGREEMENT, to Owner, to any mortgagee or lender, or to any successors in interest of Owner if successors in interest are permitted under this STATUTORY AGREEMENT or mortgagee or lender, or to any other person, and Owner covenants on behalf of itself and all successors in interest, if successors in interest are permitted under this STATUTORY AGREEMENT, to the Property or any portion thereof, not to sue for damages or claim any damages: (i) For any breach of this STATUTORY AGREEMENT or for any cause of action which arises out of this STATUTORY AGREEMENT; or (ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this STATUTORY AGREEMENT, including, without limitation, any impairment or restriction which Owner characterizes as a regulatory taking or inverse condemnation; or (iii) Arising out of or connected with any dispute, controversy or issue regarding the application or request for a permit for cultivation, manufacturing and/or distribution or interpretation or effect of the provisions of this STATUTORY AGREEMENT. Owner hereby agrees to waive and/or release the City of Baldwin Park for any claim or claims or cause of action, not specifically and expressly reserved herein, which Owner may have at the time of execution of this STATUTORY AGREEMENT relating to any application to the City of Baldwin Park including but not limited to, any application for any type of distribution, cultivation or manufacturing permit, any application for any distribution, cultivation or manufacturing rights, or any application for any distribution, cultivation or manufacturing license from the City of Baldwin Park. CALIFORNIA CIVIL CODE SECTION 1542 -13- The Owner expressly acknowledges that this STATUTORY AGREEMENT is intended to include in its effect, a waiver without limitation, of all claims or causes of actions which have arisen and of which each side knows or does not know, should have known, had reason to know or suspects to exist in their respective favor at the time of execution hereof, that this STATUTORY AGREEMENT contemplates the extinguishment of any such Claim or Claims. The Owner specifically acknowledges and waives and releases the rights granted to Owner under California Civil Code Section 1542, which states as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." By expressly waiving the rights granted to Owner under California Civil Code Section 1542, the Owner represents that they understand and acknowledge that if they have suffered any injury, damage as a result of the application for or request for any permit from the City of Baldwin Park and (i) they are not presently aware of any damage or injury, or (ii) any damage or injury has not yet manifested itself, any claims for any such damage or injury are forever released and discharged. Nothing contained herein shall modify or abridge Owner's rights or remedies (including its rights for damages, if any) resulting from the exercise by the City of its power of eminent domain. Nothing contained herein shall modify or abridge Owner's rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of the City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to the City and its employees pursuant to the Government Tort Liability Act and all other applicable statutes and decisional law. Except as set forth in the preceding paragraph relating to eminent domain, Owner's remedies shall be limited to those set forth in this Section 8.1, Section 8.2, and Section 8.3. 8.2 Specific Performance. The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other non -monetary relief are particularly appropriate remedies for the enforcement of this STATUTORY AGREEMENT and should be available to all parties for the following reasons: (i) Except as provided in Section 8.1, money damages are unavailable against the City as provided in Section 8.1 above. (ii) Due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this STATUTORY AGREEMENT has begun. After such implementation, Owner may be foreclosed from other choices it may have had to use the Property or portions thereof. Owner has invested significant time and resources and performed extensive -14- planning and processing of the Project in agreeing to the terms of this STATUTORY AGREEMENT and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this STATUTORY AGREEMENT, and it is not possible to determine the sum of money which would adequately compensate Owner for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis. 8.3 Termination of Agreement for Default of the City Owner may terminate this STATUTORY AGREEMENT only in the event of a default by the City in the performance of a material term of this STATUTORY AGREEMENT and only after providing written notice to the City of default setting forth the nature of the default and the actions, if any, required by the City to cure such default and, where the default can be cured, the City has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 8.4 Attorneys' Fees and Costs. In any action or proceeding between the City and Owner brought to interpret or enforce this STATUTORY AGREEMENT, or which in any way arises out of the existence of this STATUTORY AGREEMENT or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non -prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this STATUTORY AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 9.4 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. 8.5 Owner Default. No building permit shall be issued or building permit application accepted for any structure on the Property after Owner is determined by the City to be in default of the terms and conditions of this STATUTORY AGREEMENT until such default thereafter is cured by Owner or is waived by the City. If the City terminates this STATUTORY AGREEMENT because of Owner's default, then the City shall retain any and all benefits, including money or land received by the City hereunder. ARTICLE 9. THIRD PARTY LITIGATION. 9.1 General Plan Litigation. The City has determined that this STATUTORY AGREEMENT is consistent with its General Plan. Owner has reviewed the General Plan and concurs with the City's determination. The City shall have no liability under this STATUTORY AGREEMENT or otherwise for any failure of the City to perform under this STATUTORY AGREEMENT, or for the inability of Owner to develop the Property as contemplated by the Development Plan, which failure to perform or inability -15- to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law, or that this STATUTORY AGREEMENT or any of the City's actions in adopting it were invalid, inadequate, or not in compliance with law. Notwithstanding the foregoing, neither party shall contend in any administrative or judicial proceeding that the STATUTORY AGREEMENT or any Development Approval is unenforceable based upon federal, state or local statutes, ordinances or regulations in effect on the Effective Date. 9.2 Hold Harmless Agreement. Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner's contractors, subcontractors, agents, or employees operations under this STATUTORY AGREEMENT, whether such operations be by Owner, or by any of Owner's contractors, subcontractors, agents, or employees operations under this STATUTORY AGREEMENT, whether such operations be by Owner, or by any of Owner's contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner's contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations. 9.3 Indemnification. Owner shall defend, indemnify and hold harmless City and defend its agents, officers and employees against and from any and all liabilities, demands, lawsuits, claims, government claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which the City and its City Council members may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this STATUTORY AGREEMENT and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) if applicable, the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; and (iii) the proceedings or procedure undertaken in connection with the adoption or approval of any permit or any of the above. In the event of any legal or equitable action or other proceeding instituted by anyone against the City or its City Council, any third party (including a governmental entity or official) challenging the validity of any provision of this STATUTORY AGREEMENT or procedure upon which the permit was issued, or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding. Notwithstanding the above, the City, at is sole option, may tender to Owner and Owner agrees to accept any such tender of the complete defense of any third party challenge as described herein. In the event the City elects to contract with special counsel to provide for such a defense, the City may do so in its sole discretion and Owner will be required to pay the defense costs of the City as the costs are incurred. Owner agrees to pay any and all attorney's fees or retainer regarding the selection of -16- counsel, and Owner shall pay all costs and all attorneys' fees related to retention of such counsel. 9.4 Environmental Contamination. Owner shall indemnify and hold the City, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of the Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting any acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Owner, for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attorneys' fees, the City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. The City may in its discretion participate in the defense of any such claim, action or proceeding. The provisions of this Section 9.4 do not apply to environmental conditions that predate Owner's ownership or control of the Property or applicable portion; provided, however, that the foregoing limitation shall not operate to bar, limit or modify any of Owner's statutory or equitable obligations as an owner or seller of the Property. 9.5 The City May Choose its Own Counsel. With respect to Sections 9.1 through 9.4, the City reserves the right to select its own special counsel or otherwise engages special counsel to defend the City hereunder, which fees will be paid by Owner. 9.6 Accept Reasonable Good Faith Settlement. With respect to Article 9, the City shall not reject any reasonable good faith settlement. Before accepting any such settlement offer, City shall notify Owner of the offer and provide Owner with a copy of the offer. If Owner disagrees with the City's intention to accept the offer, prior to the City's response to any offer, the parties shall meet and confer in order to attempt to resolve the parties' differences. If the City does reject a reasonable, good faith settlement that is acceptable to Owner, Owner may enter into a settlement of the action, as it relates to Owner, and the City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgments rendered in connection with such action. This Section 9.6 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. Owner and the City expressly agree that this Section 9.6 does not apply to any settlement that requires an exercise of the City's police powers, limits the City's exercise of its police powers, or affects the conduct of the City's municipal operations. 9.7 Administrative Actions. The parties acknowledge that in the future there could be claims, enforcement actions, requests for information, subpoenas, criminal or civil actions initiated or served by either the Federal Government or the State Government in connection with Owner's development, operation and use of the Property (collectively, "Actions"). The City shall not disclose information and documents to the Federal Government or State Government, its officers, or agents regarding any -17- party to this agreement absent a grand jury subpoena, civil or administrative subpoena, warrant, discovery request, summons, court order or similar process authorized under law hereinafter called "Governmental Notice". If any Action is brought by either the Federal or State Government, City shall immediately notify Owner of the nature of the Claim including all correspondence or documents submitted to the City. Prior to responding to the Governmental Notice, City shall provide Owner ten (10) days from the date of such notice subpoena or the like to serve and obtain on the City a protective order, or the like, from a court of competent jurisdiction. 9.8 Survival. The provisions of Sections 9.1 through 9.7 inclusive, shall survive the termination or expiration of this STATUTORY AGREEMENT, until such time as the uses of the Property established in the Development Plan are permanently terminated. ARTICLE 10. THIRD PARTY LENDERS, ASSIGNMENT & SALE. 10.1 Encumbrances. The parties hereto agree that this STATUTORY AGREEMENT shall not prevent or limit Owner, in any manner, at Owner's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. 10.2 Lender Requested Modification/Interpretation. The City acknowledges that the lenders providing such financing may request certain interpretations and modifications of this STATUTORY AGREEMENT and agrees upon request, from time to time, to meet with Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. The City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this STATUTORY AGREEMENT and as long as such requests do not minimize, reduce, curtail, negate or in any way limit City's rights under this STATUTORY AGREEMENT. ARTICLE 11. MISCELLANEOUS PROVISIONS. 11.1 Entire Agreement. This STATUTORY AGREEMENT sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly contained herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this STATUTORY AGREEMENT, provided, however, City at its option may rely on statements by Owner's agents at the public hearings leading to the City's approval of the project or on written documents by Owner's agents that are a part of the public record. 11.2 Severability. If any term, provision, covenant or condition of this STATUTORY AGREEMENT shall be determined invalid, void or unenforceable, by a -18- court of competent jurisdiction, the remainder of this STATUTORY AGREEMENT shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this STATUTORY AGREEMENT. The foregoing notwithstanding, the provision of the public benefits set forth in Article 5, including the payment of the fees set forth therein, are essential elements of this STATUTORY AGREEMENT and the City would not have entered into this STATUTORY AGREEMENT but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at the City's option this entire STATUTORY AGREEMENT shall terminate and from that point on be null and void and of no force and effect whatsoever. The foregoing notwithstanding, the development rights set forth in Article 4 of this STATUTORY AGREEMENT are essential elements of this STATUTORY AGREEMENT and Owner would not have entered into this STATUTORY AGREEMENT but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at Owner's option this entire STATUTORY AGREEMENT shall terminate and from that point on be null and void and of no force and effect whatsoever. 11.3 Interpretation and Governing Law. This STATUTORY AGREEMENT and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This STATUTORY AGREEMENT shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this STATUTORY AGREEMENT, since all parties were represented by counsel in the negotiation and preparation hereof. 11.4 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this STATUTORY AGREEMENT. 11.5 Singular and Plural; Gender, and Person. Except where the context requires otherwise, the singular of any word shall include the plural and vice versa, and pronouns inferring the masculine gender shall include the feminine gender and neuter, and vice versa, and a reference to "person" shall include, in addition to a natural person, any governmental entity and any partnership, corporation, joint venture or any other form of business entity. 11.6 Time of Essence. Time is of the essence in the performance of the provisions of this STATUTORY AGREEMENT as to which time is an element. 11.7 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this STATUTORY AGREEMENT by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this STATUTORY AGREEMENT thereafter. -19- 11.8 No Third Party Beneficiaries. The only parties to this STATUTORY AGREEMENT are Owner and the City. This STATUTORY AGREEMENT is made and entered into for the sole protection and benefit of the parties and their successors and assigns. There are no third party beneficiaries and this STATUTORY AGREEMENT is not intended, and shall not be construed, to benefit, or be enforceable by any other person whatsoever. 11.9 INTENTIONALLY BLANK 11.10 INTENTIONALLY BLANK 11.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 11.12 Counterparts. This STATUTORY AGREEMENT may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 11.13 Jurisdiction and Venue. Any action at law or in equity arising under this STATUTORY AGREEMENT or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this STATUTORY AGREEMENT shall be filed and prosecuted in the Superior Court of the County of Los Angeles, State of California, and the parties hereto waive all provisions of federal or state law or judicial decision providing for the filing, removal or change of venue to any other state or federal court, including, without limitation, Code of Civil Procedure Section 394. 11.14 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this STATUTORY AGREEMENT. No partnership, joint venture or other association of any kind is formed by this STATUTORY AGREEMENT. The only relationship between the City and Owner is that of a government entity regulating the development of private property and the owner of such property. 11.15 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this STATUTORY AGREEMENT and the satisfaction of the conditions of this STATUTORY AGREEMENT. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this STATUTORY AGREEMENT to carry out the intent and to fulfill the provisions of this -20- STATUTORY AGREEMENT or to evidence or consummate the transactions contemplated by this STATUTORY AGREEMENT. 11.16 Eminent Domain. No provision of this STATUTORY AGREEMENT shall be construed to limit or restrict the exercise by the City of its power of eminent domain. 11.17 Agent for Service of Process. In the event Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer, resident of the State of California, or if it is a foreign corporation, then Owner shall file, upon its execution of this STATUTORY AGREEMENT, with the Chief Executive Officer or his or her designee, upon its execution of this STATUTORY AGREEMENT, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this STATUTORY AGREEMENT, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon Owner. If for any reason service of such process upon such agent is not feasible, then in such event Owner may be personally served with such process out of the County of Los Angeles and such service shall constitute valid service upon Owner. Owner is amenable to the process so described, submits to the jurisdiction of the Court so obtained, and waives any and all objections and protests thereto. 11.18 Authority to Execute. The person or persons executing this STATUTORY AGREEMENT on behalf of Owner warrants and represents that he/she/they have the authority to execute this STATUTORY AGREEMENT on behalf of his/her/their corporation, partnership or business entity and warrants and represents that he/she/they has/have the authority to bind Owner to the performance of its obligations hereunder. Owner shall each deliver to City on execution of this STATUTORY AGREEMENT a certified copy of a resolution and or minute order of their respective board of directors or appropriate governing body authorizing the execution of this STATUTORY AGREEMENT and naming the officers that are authorized to execute this STATUTORY AGREEMENT on its behalf. Each individual executing this STATUTORY AGREEMENT on behalf of his or her respective company or entity shall represent and warrant that: (i) The individual is authorized to execute and deliver this STATUTORY AGREEMENT on behalf of that company or entity in accordance with a duly adopted resolution of the company's board of directors or appropriate governing body and in accordance with that company's or entity's articles of incorporation or charter and bylaws or applicable formation documents; and (ii) This STATUTORY AGREEMENT is binding on that company or entity in accordance with its terms; and (iii) The company or entity is a duly organized and legally existing company or entity in good standing; and -21- (iv) The execution and delivery of this STATUTORY AGREEMENT by that company or entity shall not result in any breach of or constitute a default under any mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or other contract or instrument to which that company or entity is party or by which that company or entity may be bound. 11.19 Nexus/Reasonable Relationship Challenges. Owner agrees that the fees imposed are in fact reasonable and related to the mitigation of the negative impacts of the business on the City and consents to, and waives any rights it may have now or in the future to challenge the legal validity of, the conditions, requirements, policies or programs set forth in this STATUTORY AGREEMENT including, without limitation, any claim that the terms in this STATUTORY AGREEMENT constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, and/or impose an unlawful tax. 11.20 [RESERVED] 11.21 No Damages Relief Against City. The parties acknowledge that the City would not have entered into this STATUTORY AGREEMENT had it been exposed to damage claims from Owner, or anyone acting on behalf of Owner for any breach thereof. As such, the parties agree that in no event shall Owner, or Owners' partners, or anyone acting on behalf of Owner be entitled to recover damages against City for breach of this STATUTORY AGREEMENT. 11.22 Laws. Owner agrees to comply with all applicable state, regional, and local laws, regulations, polices and rules. In addition, Owner further agrees to comply with all issued entitlements, permits, licenses, including any and all applicable development standards. Specifically, Owner agrees to comply with all applicable provisions of BPMC. 11.23 Compliance with Conditions of Approval. Owner agrees to comply with and fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it receives from the City. All conditions of approval for all entitlements, permits and/or licenses are attached hereto and incorporated herein by this reference. 11.24 The City acknowledges that this STATUTORY AGREEMENT shall be read consistent with any statewide or national regulation of commercial cannabis that is promulgated in the future, either by legislative action or voter approval. In the event national or statewide regulations are promulgated which decriminalize or legalize the adult -use of marijuana for recreational use, this STATUTORY AGREEMENT shall govern the conduct of the property under such future regulations. -22- IN WITNESS WHEREOF, the parties hereto have caused this STATUTORY AGREEMENT to be executed as of the dates written above. CITY OF BALDWIN PARK By: Manuel Lozano, Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: By: Robert N. Tafoya, City Attorney THE GROWN FOLKS, INC. By: Steve Chan, Chief Executive Officer APPROVED AS TO FORM: By: -23- Legal Counsel for The Grown Folks, Inc. ATTACHMENT #2 ORDINANCE 1433 ORDINANCE 1433 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE GROWN FOLKS, INC. FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLEJOHN STREET, SUITE A (APN 8535-023- 011) WITHIN THE CITY OF BALDWIN PARK WHEREAS, a Development Agreement with the City of Baldwin Park will be required; and WHEREAS, a duly noticed public hearing was held by the Planning Commission of the City of Baldwin Park on November 28, 2018, to receive comments and consider recommendation to City Council of the proposed Development Agreement; and WHEREAS, the Planning Commission at such hearing, did recommend that the City Council approve the proposed Agreement; and WHEREAS, the City Council held a duly noticed public hearing pursuant to law on the Agreement on December 5, 2018; and WHEREAS, the City Council has reviewed the Development Agreement (attached as Exhibit "A" herewith and incorporated herein by reference) and finds and declares that compliance with all notice, hearing, and procedural requirements as set forth by law have been met, thus allowing the City Council to review and consider the approval of the attached Development Agreement; and WHEREAS, the City Council hereby specifically finds that the provisions of the Development Agreement are consistent with the General Plan of the City; and WHEREAS, the City Council hereby specifically finds that the Development Agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole; and WHEREAS, the City Council hereby specifically finds that the Development Agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5.; and WHEREAS, as required by law, the City Council gave first reading to the proposed ordinance on December 5, 2018. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: SECTION 1. In accordance with the provisions of the California Environmental Quality Act (CEQA), it has been determined that the proposed Development Agreement Projects (DA 18-18) will not have a significant impact of the environment and are Categorically Exempt pursuant to Article 19, Section 15301, Class 1, 'Existing Facilities' or Class 32, 'In -fill Development Projects'. Furthermore each of the locations is proposed within an existing building. SECTION 2. The City Council hereby adopts the following findings of fact required by Subchapter 153.210.860 of the City's Municipal Code relating to Development Agreements: 1. The Development Agreement is consistent with the General Plan objectives, policies, land uses and implementation programs and any other adopted plans or policies applicable to the agreement. Because both of the locations of the cannabis distribution business are located within the I -C, Industrial Commercial Zone, it is anticipated that the use of the property is consistent with the other light industrial uses within the area. The adoption of cannabis cultivation and manufacturing activities is also consistent with Goal 1.0 of the City's Economic development Element in the General Plan in that the City encourages and facilitates activities that expand the City's revenue base. Furthermore, Goal 6.0 of the same element encourages the expansion of the City's diverse industrial base. Policy 6.5 of Goal 6.0 encourages an on-going campaign with local businesses to hire local residents. This Development Agreement requires that a minimum of 20% of the businesses workforce shall consist of Baldwin Park residents. 2. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. Pursuant to Ordinance 1401, adopted by the City Council on August 16, 2017, effective on September 16, 2017 (and as subsequently amended by Ordinance 1403 refining the measurement of distances) cannabis cultivation, manufacturing and distribution activities are allowed within the City provided all of the development standards in Chapter 127 of the City's Municipal Code are met. Dispensaries remain prohibited throughout the City. 3. The Development Agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole. The Development Agreement is in conformance with the general area and City as a whole as it is located within the I -C, Industrial Commercial Zone surrounded by lighter industrial uses. The use exceeds the distance requirement of fifty (50) feet between cannabis uses and the closest residential zone; furthermore, pursuant to Section 127.07.E.1 of the City's Municipal Code, the cannabis use is not nearby any sensitive uses such as schools, day care centers, parks or youth centers. Security measures for the facility include, alarms, video surveillance, and a comprehensive employee training program. 4. The Development Agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5. Pursuant to the City Attorney's Office along with review by the Planning Division Staff, the Development Agreement (Reference Attachments #2 through #5 to the Planning Commission and City Council staff report dated November 28, 2018) is consistent with California Government Code Sections 65864-65869.5. SECTION 3. The City Council hereby approves and adopts the Development Agreement, in the form as attached hereto as Exhibit "A", and authorizes and directs the Mayor to sign it in the name of the City of Baldwin Park. SECTION 4. 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 5th day of December, 2018 and adopted and ordered published at a regular meeting of said Council on the 5th day of December, 2018. PASSED, APPROVED, AND ADOPTED this 5th day of December, 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF BALDWIN PARK I, JEAN AYALA, 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 December 5, 2018. Thereafter, said Ordinance No. 1433 was duly approved and adopted at a regular meeting of the City Council on December 5, 2018 by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JEAN AYALA CITY CLERK ATTACHMENT #3 REVISED INFORMATIONAL TABLE CAN17-23 DA 18-18 Location- NEW 4802 Littlejohn Street Ste. A APN 8535-023-011 Zoning of Subject Location- I Industrial NEW Principal Names- No Chane Steve Chan, Manuel Suarez, Gershom Luh Company Name- No Chane The Grown Folks, Inc. Term of Development Fifteen (15) years from 6/20/18 Aareement- No Chanae December 31, 2018 and June 30, 2019 for year #1 Payment Schedule- No Change Quarterly for Years #2 through #15—Four equal Year #1--$220,000 Years #2 and #3--$275,000 Payment Amount- No Change Years #4 and #5--$330,000—The Mitigation Fee is subject to reassessment by the City every five (5) Floor Area of Buildings - Approximately 6,500 square feet Employee Requirements- No At least 20% of the Projects workforce shall consist Change of residents of the City. ATTACHMENT #4 REVISED VICINITY MAP -, N - I 1�z fJ OS ......... . ........ . . ............. ...... . ..... . . .. .......... VICINITY MAP CASE NUMBER: DA 18-18 LOCATION: 4802 Littlejohn Street Ste. A DATE: December 5, 2018 ATTACHMENT #5 REVISED FINDINGS OF FACT DA 18-18 FINDINGS OF FACT 1) The development agreement is consistent with the General Plan objectives, policies, land uses and implementation programs and any other adopted plans or policies applicable to the agreement. Because the location of the cannabis cultivation/manufacturing business is located within the I, Industrial Zone, it is anticipated that the use of the property is consistent with the other light industrial uses within the area. The adoption of cannabis cultivation and manufacturing activities is also consistent with Goal 1.0 of the City's Economic development Element in the General Plan in that the City encourages and facilitates activities that expand the City's revenue base. Furthermore, Goal 6.0 of the same element encourages the expansion of the City's diverse industrial base. Policy 6.5 of Goal 6.0 encourages an on-going campaign with local businesses to hire local residents. This Development Agreement requires that a minimum of 20% of the businesses workforce shall consist of Baldwin Park residents. 2) The development agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. Pursuant to Ordinance 1401, adopted by the City Council on August 16, 2017, effective on September 16, 2017 (and as subsequently amended by Ordinance 1403 refining the measurement of distances) cannabis cultivation, manufacturing and distribution activities are allowed within the City provided all of the development standards in Chapter 127 of the City's Municipal Code are met. Dispensaries remain prohibited throughout the City. 3) The development agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole. The development agreement is in conformance with the general area and City as a whole as it is located within the I, Industrial Zone surrounded by lighter industrial uses. The use exceeds the distance requirement of fifty (50) feet between cannabis uses and the closest residential zone; furthermore, pursuant to Section 127.07.E.1 of the City's Municipal Code, the cannabis use is not nearby any sensitive uses such as schools, day care centers, parks or youth centers. DA 18-18 4) The development agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5. Pursuant to the City Attorney's Office along with review by the Planning Division Staff, the Development Agreement (Reference Attachments #1 through #5 to the Planning Commission staff report dated November 28, 2018) is consistent with California Government Code Sections 65864- 65869.5. ATTACHMENT #6 CHANGE OF LOCATION APPLICATION Date: 8/18/18 Re: Application to Change Address To: City of Baldwin Park (Council & Planning) From:The Grown Folks, Inc. Dear City of Baldwin Park, We want to thank you all and feel very blessed to be a part of this positive movement so that we may benefit the City of Baldwin Park and hopefully our families as well. We are requesting a change in our current address of "14712 Arrow Hwy Baldwin Park, Ca. 91706" to a newer state of the art facility located at "4802 Little John Street Suite A Baldwin Park, Ca. 91706". There are many reasons that we feel will benefit our business and the City of Baldwin Park with this address change. Of course this new location is not only newer and nicer but is completely compliant as it also falls into the cities permitted Cultivation/Manufacturing designated zones by city ordinance. Please take into consideration that our initial application address has many factors that are currently keeping us from the ability to build a successful business in a timely manner. Here is a list of the main reasons why it would benefit us to change address: 1) Our original address and building was built in 1950 which is a very old building and severely needs to be updated from huge technical improvements all the way down to electrical issues. The Unit is also too small for us to achieve our goals or grow into. 2) Our original address doesn't allow us the 25 ft buffer needed for compliance from our neighbor to be able to manufacture. 3) The new address that we are requesting to move to on "4802 Little John St." is a State of the art facility built in the late 1980's and is equipped with all the required safety protocols already. This building and unit is also much larger allowing us the space needed for growth. This gives us an opportunity to build our business bigger, faster and better than we could at the original address. We can see ourselves at home in this new address and plan to stay for at least the next 15 years. As we succeed, the City of Baldwin Park will also succeed with us. Thank you for your Consideration, We look forward to the futurel Steve Chan (C.E.O.) The Grown Folks, Inc. APPLICATION FOR CHANGE OF LOCATION Page 1 of 3 ' APPLICATION FOR CHANGE OF LOCATION �a.r U10'r'v �•�' ��D� This application pertains to the change of location of a Cannabis business. This U ,ji '�"""�a 4r, 5 Application can only be used by a cannabis business already approved and permitted • tr..: F•., 4 .z i. • it SAP Eby the Baldwin Park City Council. All fees paid are nonrefundable regardless of ' outcome. VALLE1�r;f�a�' D rAr��P` Section 127.09 of the City's Municipal Code states that .... "No Licensee is authorized ._..._. to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the City Council..." Due to City staffing constraints, Applicants are directed to schedule appointments with the Planning Division to submit applications. Otherwise, there is no guarantee that a city planner will be available to take in applications. Applications may not be dropped off without review from a city planner. Further, no mailed or e-mailed applications will be accepted. Business Name: THE GROWN FOLKS INC. Business Contact (Individual): STEVE CHAN Business Contact Title: CHIEF EXECUTIVE OFFICER Business Contact Mailing Address: BALDWIN PARK CA 91706 y802 Salle A BQl&m r, ar-lea CQ -9L79 Primary Phone No.: (626) 688-8758 Emergency Contact Name & Phone No.: E-mail: stevec 888@yahoo.com Please mark all applicable boxes below to identify which cannabis operation permits you have been approved for by the Baldwin Park City Council. ® Cultivation: Square Footage: 22,000 ® Manufacturing: Square Footage: 22,000 ❑ Distribution: Square Footage N/A Section A: Commercial Cannabis Business Description and Location 1. Proposed Location of Business (include APN's): 4802 LITTLEJOHN STREET, UNIT A, BALDWIN PARK, CA 91706 - APN: 8535-023-011 2. Name and Address of Property Owner: A&N INDUSTRIAL PROPERTIES, LLC. 10616 RUSH STREET, S. EL MONTE, CA 91733 APPLICATION FOR CHANGE OF LOCATION 3. Name and Address of School Closest to Proposed Location: 2of3 WALNUT ELEMENTARY SCHOOL 4701 WALNUT STREET, BALDWIN PARK, CA 91706 4. Description of neighborhood around the proposed location (i.e., surrounding uses, nearby sensitive uses such as churches, schools, parks, or libraries) and transit access to site. A separate sheet may be attached. PLEASE SEE ATTACHMENT C-2: "NEIGHBORHOOD DESCRIPTION Plan Submittals (Plans shall be drawn to scale) shall be submitted within 60 days of any location approval by the City Council. The Plans required are as follows: 5. Site Plan for each potential location. The Site Plan must be dimensioned and show the entire parcel, including parking and additional structures. 6. Conceptual Building Elevations if new construction. If existing buildings, include any proposed exterior building alterations if applicable. 7. Floor Plans, including any proposed interior alterations. 8. Vicinity Map. It is the Applicant's responsibility to prove to the City that the cannabis operation's location is at least 600 feet from all sensitive uses and 50 feet from all residential zones. The measurement is from property airspace line to property airspace line on each lot. However, in the case of commercial condominiums, measurement is taken from the airspace property line. 9. Photos of the site and building(s) from all sides/directions. Section B: Required Supplemental Information This information is required for this application to be considered complete. Attach the following reports to the amendment. ® Neighborhood Compatibility Plan X. Safety and Security Plan ® Air Quality Plan Section C: Final Location information Multiple sites per application can be considered. Attach proof of ownership of the site or a signed, executed lease document will also suffice. Section D: STAFF USE ONLY (Essential Supplemental Information) APPLICATION FOR CHANGE OF LOCATION Page 3 of 3 This information is required and you must submit this as part of meeting the requirements for a completed application. Check the box evidencing that you have submitted and attached to this Application the items described below. 'Suitability of the proposed property: Using the information provided by the Applicant in this Application, Planning Staff must confirm that the proposed location(s) exceeds all buffer zones established in the Cannabis Ordinance. Suitability of security plan: Using the information provided. by the Applicant in this Application, Planning �. Staff must confirm that the Applicant's security plan includes the presence of security personnel on premises or patrolling the premises twenty-four (24) hours per day. The Applicant's security plan must demonstrate a method to track and monitor inventory so as to prevent theft or diversion of cannabis. f The Applicant's security plan must describe the enclosed, locked facility that will be used to secure or store cannabis when the location is open and the steps taken to ensure cannabis is not visible to the public. The Applicant's security plan must include measures to prevent the diversion of cannabis to persons under the age of twenty-one (21). ❑ FrLvironmental impact: Application should indicate if the business uses renewable energy sources. Section E: Fees Please attach a cashier's check or money order made payable to the "City of Baldwin Park" for the following fees: ❑ Application For Change of Location Fee: Staff use only: Date of Change of Location Application submittal: 2� Number assigned to application: Date fee received: 14 22— t ` Date Proof of ownership was verified: Planning Division ❑ Incomplete Change of Location Application I/ Complete Change of Location Application 0-,Q ATTACHMENT #7 NOTICE OF PUBLIC HEARING o� SALD�V/�-.,. Giag��M"EL, j CITY OF BALDWIN PARK ��`�X�vAL Ert�r•` a"z. NOTICE OF PUBLIC HEARING TO: Property Owners within a 300 foot radius FROM: Baldwin Park Planning Division SUBJECT: Development Agreement (DA 18-18) Amendment NOTICE IS HEREBY GIVEN THAT a public hearing to consider the following case will be held at 7:00 p.m. or soon thereafter, by the City Council of the City of Baldwin Park in City Council Chambers, 14403 E. Pacific Avenue, on Wednesday, October 28, 2018. All interested parties may appear and be heard at that time. Following the public hearing, City Council will introduce for first reading Ordinance 1433, amend Development Agreement 18-18 to change the location from 14712 Arrow Highway to 4802 Littlejohn Street Ste. A for Cultivation and Manufacturing of Adult and/or Medical Cannabis (Location: 4802 Littlejohn Street Ste. A; DA 18-18) CASE NUMBER: DA 18-18 ADDRESS: 4802 Littlejohn Street Ste. A REQUEST: This application represents an approval by the City Council on an amendment to the Development Agreement 18-18 to change the location from 14712 Arrow Highway to 4802 Littlejohn Street Ste. A, for a Cannabis cultivation and manufacturing facility within the I, Industrial Zone, pursuant to Section 153.210, Part 17 of the City's Municipal Code. AREA MAP Not to Scale T The proposal is considered to be categorically exempt, pursuant to Section 15301 (Class 1, Existing Facilities) of the California Environmental Quality Act (CEQA), as the proposal involves minor alterations of a tenant space within an existing commercial building. If in the future anyone wishes to challenge a decision of the City Council in court, you may be limited to rising only those issues you or someone else raise at the public hearing described above or in written correspondence delivered to the City Council at, or prior to, the Public Hearing. If further information is desired on the above case, please contact the City Clerk's Office at (626) 960-4011 and refer to the case number. If you are aware of someone who would be interested in becoming informed of the contemplated action, please pass this notice along as a community service. Para informacion en Espanol referente a este caso, favor de Ilamar all (626) 813-5261. SUMMARY This report requests City Council amend Development Agreement 18-19 between the City of Baldwin Park and W & F International Corp. to change the location from 4276 Elton Street to 4802 Littlejohn Street Ste. B within the I, Industrial Zone pursuant to Ordinance 1408. RECOMMENDATION Staff recommends that the City hold a Public Hearing and Introduce for first reading, by title only and waive further reading, Ordinance 1434, entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH W & F INTERNATIONAL CORP. FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLEJOHN STREET, SUITE B (APN 8535-023-011) WITHIN THE CITY OF BALDWIN PARK FISCAL IMPACT Each of the Development Agreements has a financial component that provides a positive fiscal impact to the City. Please refer to each of the attachments for the specific financial details of each Agreement. CEQA In accordance with the provisions of the California Environment Quality Act (CEQA), it has been determined that the proposed Amendment to the Development Agreement, DA 18-19, will not have a significant impact of the environment and is Categorically Exempt pursuant to Article 19, Section 15301, Class 1, `Existing Facilities'. Furthermore the new proposed location is within an existing building. DISCUSSION Development Agreement 18-19 was originally considered by the Planning Commission on June 13, 2018. Planning Commission adopted Resolution 18-13 recommending approval to the City Council of six (6) development agreements for Cannabis facilities, including DA 18-19. City Council adopted Ordinance 1426 on June 20, 2018 to authorize the City of Baldwin Park to enter into a development agreement with W & F International Corp. for the cultivation and/or manufacturing of Cannabis at 4276 Elton Street (APN(s): 8437-016-005, 015, 016) within the City of Baldwin Park. On September 26, 2018, the Planning Division received a change of location application from Yichang Bai of W & F International Corp to change the location of their approved cannabis permit from 4276 Elton Street to 4802 Littlejohn Street, Suite B. The application included a letter cited a substantial saving in rent costs as the paramount reason for the change. In addition to the letter and Change of Location application, an application fee, a new radius and label package, a revised site plan, a revised floor plan, a revised security plan, a revised neighborhood compatibility plan, a revised vicinity map, and a copy of the new lease was submitted. No change in ownership is proposed. The Planning Division conducted the preliminary review of the new proposed site to ensure it complies with the zoning and distance requirements. The new location is within the Industrial (1) zone and is at a distance greater than 600 feet from a school, childcare facility, youth center or park and is a distance greater than 50 feet from a residential zone. The new location was a previously approved location for DA 18-14, applicant- VRD Inc. The Planning Division does have written confirmation that VRD Inc. will no longer be utilizing 4802 Little John Street and will also be submitting a Change of Location application to the City in the coming weeks. On November 28, 2018 the Planning Commission adopted Resolution 18-27 recommending approval to the City Council to adopt Ordinance 1433 and amend DA 18-18 to change the location from 4276 Elton Street to 4802 Littlejohn Ste. b, for the cultivation and/or manufacturing of adult and/or medical cannabis. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS #1 Amended DA 18-19, "Exhibit A" #2 Ordinance 1434 #3 Revised Informational Table: CAN 17-29 #4 Revised Vicinity Map #5 Findings of Fact #6 Change of Location Application ATTACHMENT #1 REVISED DA 18-19 AMENDED DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BALDWIN PARK AND W&F INTERNATIONAL CORPORATION ARTICLE 1. PARTIES AND DATE. This Government Code Amended Statutory Development Agreement ("STATUTORY AGREEMENT") and is dated November 28, 2018 for references purposes only and is Case No. 18-19 and is entered into between (i) the City of Baldwin Park ("City"), a California municipal corporation, and (ii) W&F International Corporation ("Owner"). This STATUTORY AGREEMENT shall become effective on the Effective Date defined in Section 3.1.9 below. ARTICLE 2. RECITALS. 2.1 WHEREAS, this Statutory Development Agreement is pursuant to Government Code and is intended to be a Statutory Development Agreement under and through Government Code Section 65864 et seq.; and 2.2 WHEREAS, the City is authorized pursuant to Government Code Section 65864 et seq. to enter into binding statutory development agreements with persons having legal or equitable interests in real property for the development of such property; and 2.3 WHEREAS, Owner commenced its efforts to obtain approvals and clearances to cultivate and manufacture medical and adult use cannabis in September 2017; and at that time the City determined that the uses authorized in this STATUTORY AGREEMENT were lawfully permitted and authorized to occur on Owner's Property, subject to Owner's acquisition of various entitlements, as discussed herein; and 2.4 WHEREAS, Owner voluntarily enters into this STATUTORY AGREEMENT and after extensive negotiations and proceedings have been taken in accordance with the rules and regulations of the City, Owner has elected to execute this STATUTORY AGREEMENT as it provides Owner with important economic and development benefits; and 2.5 WHEREAS, this STATUTORY AGREEMENT and the Project are consistent with the City's General Plan and Zoning Code and applicable provisions of the City's applicable Zoning Map and the Baldwin Park Municipal Code as of the Agreement Date; and 2.6 WHEREAS, all actions taken and approvals given by the City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and -1- 2.7 WHEREAS, this STATUTORY AGREEMENT will eliminate uncertainty in planning and provide for the orderly development of the Project and/or Property, ensure progressive installation of necessary improvements, and provide for public services appropriate to the development of the Project; and 2.8 WHEREAS, in implementation of the promulgated state policy to promote private participation in comprehensive planning and to strengthen the public planning process and to reduce the economic risk of development, the City deems the implementation of this STATUTORY AGREEMENT to be in the public interest and intends that the adoption of this STATUTORY AGREEMENT be considered an exercise of the City's police powers to regulate the development of the Property during the Term of this STATUTORY AGREEMENT; and 2.9 WHEREAS, this STATUTORY AGREEMENT is consistent with the public health, safety and welfare needs of the residents of the City and the surrounding region and the City has specifically considered and approved the impact and benefits of the development of the Property in accordance with this STATUTORY AGREEMENT upon the welfare of the region; and 2.10 WHEREAS, Owner intends to develop a Cannabis Manufacturing and Cultivation Facility pursuant to the Baldwin Park Municipal Code ("BPMC") Chapter 127 and all applicable state laws, rules, and regulations; and 2.11 WHEREAS, concurrently with execution of this STATUTORY AGREEMENT, City acknowledges that Owner has been authorized to cultivate and manufacture cannabis and cannabis related products at its facility or facilities up to 22,000 square feet. 2.12 WHEREAS, the City entered into a Development Agreement with Rukli, Inc. to be the exclusive distributor of cannabis and cannabis related products in the City of Baldwin Park. The City is entering into development agreements with owners for permits for cultivation and manufacturing of cannabis and cannabis related products in the City of Baldwin Park. The City prohibits the sale of cannabis and cannabis related products within the City of Baldwin Park so the cannabis and cannabis related products must be distributed to and sold in cities where it is legal to do so. Rukli, Inc. shall be the exclusive distributor for the cultivation and/or manufacturing permit holders within the City of Baldwin Park and City conditions the cultivation and/or manufacturing permits on Rukli, Inc. being the exclusive distributor for any permit issued by Baldwin Park for cultivation or manufacturing. ARTICLE 3. GENERAL TERMS. 3.1 Definitions and Exhibits. The following terms when used in this STATUTORY AGREEMENT shall be defined as follows: 3.1.1 "Agreement" means this STATUTORY AGREEMENT pursuant to Government Code Section 65864 et seq. -2- corporation. 3.1.2 "City" means the City of Baldwin Park, a California municipal 3.1.3 "Days" mean calendar days unless otherwise specified. 3.1.4 "Dedicate" means to offer the subject land for dedication and to post sufficient bonds or other security if necessary for the improvements to be constructed including, but not limited to: grading, the construction of infrastructure and public facilities related to the Project whether located within or outside the Property, the construction of buildings and structures, and the installation of landscaping. 3.1.5 "Development" If applicable, includes grading, construction or installation of public and private facilities and the right to maintain, repair or reconstruct any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such maintenance, repair, or reconstruction take place within the Term of this STATUTORY AGREEMENT on the Property. 3.1.6 "Development Approvals" If applicable, means all other entitlements for the Development of the Property, including any and all conditions of approval, subject to approval or issuance by the City in connection with Development of the Property. "Development Approvals" also include both the Existing Development Approvals and the Subsequent Development Approvals approved or issued by the City that are consistent with this STATUTORY AGREEMENT. 3.1.7 "Development Plan" If applicable, means the Existing Development Approvals and the Existing Land Use Regulations applicable to development of the Property for the Project, as modified and supplemented by Subsequent Development Approvals. 3.1.8 "BPMC" means the City of Baldwin Park Municipal Code. 3.1.9 "Effective Date" means the day this STATUTORY AGREEMENT is approved and adopted by the Baldwin Park City Council and signed by the Mayor of Baldwin Park or his designee. 3.1.10 "Existing Development Approvals" If applicable, means all Development Approvals approved or issued prior to or on the Effective Date. Existing Development Approvals include the approvals set forth in Section 3.1.6 and all other approvals which are a matter of public record prior to or on the Effective Date. 3.1.11 "Existing Land Use Regulations" If and where applicable, means all Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations include all regulations that are a matter of public record on the Effective Date as they may be modified by the Existing Development Approvals. 3.1.12 "Land Use Regulations" If and where applicable means all ordinances, resolutions and codes adopted by the City governing the development and use of land, including the permitted use of land, the density or intensity of use, -3- subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or Dedication of land for public purposes, and the design, improvement and construction and initial occupancy standards and specifications applicable to the Development of the Property. 3.1.13 "Mortgagee" If applicable, means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device lender and its successors - in interest. 3.1.14 "Owner" means W&F International Corporation, a California corporation. 3.1.15 "Processing Fees" means the normal and customary application, filing, plan check, permit fees for land use approvals, design review, tree removal permits, building permits, demolition permits, grading permits, and other similar permits and entitlements, and inspection fees, which fees are charged to reimburse the City's expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlements are granted or conducted by the City. 3.1.16 "Project" If applicable means the Development of the Property contemplated by the Development Plan, as such Development Plan may be further defined, enhanced or modified pursuant to the provisions of this STATUTORY AGREEMENT. The Project shall consist of this STATUTORY AGREEMENT, the Development Plans, the application, any and all entitlements, licenses, and permits related to the Project. 3.1.17 "Property" means the real property described as APN 8525-023- 011 and identified in Section 3.4 and incorporated herein by this reference. Owner may modify the location or locations or add locations to the Property subject to City approval and all applicable zoning and distance requirements. 3.1.18 "Reasonable" means using due diligence to accomplish a stated objective that the subject party is capable of performing or providing under the circumstances in a manner that is consistent with the intent and objectives of the STATUTORY AGREEMENT. 3.1.19 "Reservations of Authority" means the rights and authority excepted from the assurances and rights provided to Owner under this STATUTORY AGREEMENT and reserved to the City as described in Section 4.4. 3.1.20 "Space or Canopy Space" shall mean any space or ground, floor or other surface area (whether horizontal or vertical) which is used during the marijuana germination, seedling, vegetative, pre -flowering, flowering, curing and/or harvesting phases, including without limitation any space used for activities such as growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any such space -4- used for storing any cannabis, no matter where such storage may take place or such storage space may be located. 3.1.21 "Subsequent Development Approvals" If applicable, means all future discretionary approvals and all ministerial Development Approvals required subsequent to the Effective Date in connection with development of the Property, including without limitation, subdivision improvement agreements that require the provision of bonds or other securities. Subsequent Development Approvals include, but are not limited to, all excavation, grading, building, construction, demolition, encroachment or street improvement permits, occupancy certificates, utility connection authorizations, or other permits or approvals necessary, convenient or appropriate for the grading, construction, marketing, use and occupancy of the Project within the Property at such times and in such sequences as Owner may choose consistent with the Development Plan and this STATUTORY AGREEMENT. 3.1.22 "Subsequent Land Use Regulations" If applicable means any Land Use Regulations defined in Section 3.1.12 that are adopted and effective after the Effective Date of this STATUTORY AGREEMENT. 3.2 Documents. The following documents are attached to and, by this reference, are made part of this STATUTORY AGREEMENT: No. 1 — Legal Description of the Property. No. 2 — Map showing Property and its location. No. 3 — Application. 3.3 Binding Effect of STATUTORY AGREEMENT. The Property is hereby made subject to this STATUTORY AGREEMENT. Subject to Owner's receipt of all Development Approvals relative thereto, the Development of the Property is hereby authorized and shall, except as otherwise provided in this STATUTORY AGREEMENT, be carried out only in accordance with the terms of this STATUTORY AGREEMENT and the Development Plan, if any. In the event of conflict or uncertainty between this STATUTORY AGREEMENT and the Development Plan, the provisions of this STATUTORY AGREEMENT shall control. 3.4 Ownership of Property. Owner represents and covenants that it has a legal or equitable interest in the Property, which has an Assessor's Parcel Number of 8525-023-011 and is more particularly described as 4802 Little John Street, Suite A, Baldwin Park, California 91706. 3.5 Term. The parties agree that the Term of this STATUTORY AGREEMENT shall be fifteen (15) years commencing on the Effective Date subject to the written extension and early termination provisions described in this STATUTORY AGREEMENT. Upon termination of this STATUTORY AGREEMENT, this STATUTORY AGREEMENT shall be deemed terminated and of no further force and effect, except terms that are expressly stated in this STATUTORY AGREEMENT to -5- survive termination without the need of further documentation from the parties hereto. The STATUTORY AGREEMENT's Fee is subject to renegotiation after the first term, and every five year term thereafter. 3.5.1 Term Extension. This STATUTORY AGREEMENT may only be extended by mutual agreement of City and Owner in writing and signed by Owner and the Mayor of Baldwin Park. If the Mayor of Baldwin Park does not sign the agreement or renegotiated agreement any such agreement is null and void. 3.6 Automatic Termination. This STATUTORY AGREEMENT shall automatically terminate upon the occurrence of any of the following events: (i) Expiration of the Term of this STATUTORY AGREEMENT as set forth in Section 3.5; (ii) The entry of a final judgment (or a decision on any appeal therefrom) voiding the City's General Plan or any element thereof, which judgment or decision would preclude development of the Project, but only if the City is unable to cure such defect in the General Plan or element within one hundred and eighty (180) days from the later of entry of final judgment or decision on appeal. (iii) Failure to timely pay the Fee or Fees. Failure to timely pay the $50,000 towards the policy salary or benefits. Failure to pay any fees due to the City under this STATUTORY AGREEMENT. 3.6.1 Effect of Termination. Termination of this STATUTORY AGREEMENT shall constitute termination of all land use entitlements and permits approved for the Owner and/or the Property. Upon the termination of this STATUTORY AGREEMENT, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination, or with respect to any default in the performance of the provisions of this STATUTORY AGREEMENT which has occurred prior to such termination, or with respect to any obligations which are specifically and expressly set forth as surviving this STATUTORY AGREEMENT. 3.7 Notices. 3.7.1 Notice Defined. As used in this STATUTORY AGREEMENT, notice includes, without limitation, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. 3.7.2 Written Notice and Delivery. All notices shall be in writing and shall be considered given: (i) when delivered in person to the recipient named below; or (ii) three days after deposit in the United States mail, postage prepaid, addressed to the recipient named below; or (iii) on the date of personal delivery shown in the records of the delivery company after delivery to the recipient named below; or (iv) on the date of delivery by facsimile transmission to the recipient named below if a hard copy of the notice is deposited in the United States mail, postage prepaid, addressed to the recipient named below. All notices shall be addressed as follows: If to the City: Chief Executive Officer 14403 E. Pacific Avenue Baldwin Park, CA 91706 If to Owner: Yichang Bai 2792 S. Hillrise Drive Walnut, CA 91789 3.7.3 Address Changes. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 3.8 Validity of this STATUTORY AGREEMENT. Owner and the City each acknowledge that neither party has made any representations to the other concerning the enforceability or validity of any one or more provisions of this STATUTORY AGREEMENT. The parties acknowledge and agree that neither party shall allege in any administrative or judicial proceeding that the entering into or the performance of any obligations created in this STATUTORY AGREEMENT violates federal or state law, with respect to all federal, state and local statutes, ordinances or regulations in effect as of the Effective Date. 3.9 Fee. Fee means the amount(s) set by the City, negotiated with Owner, to provide City commensurate benefit based on a private benefit conferred upon Owner. Fee shall include City's cost to research cannabis and cannabis laws and regulations, draft cannabis ordinance, conduct public meetings, negotiate development agreements, process applications, and any other acts taken by the City in furtherance of medical and adult commercial use of cannabis. ARTICLE 4. DEVELOPMENT OF THE PROPERTY. 4.1 Right to Develop. Owner shall, subject to the terms of this STATUTORY AGREEMENT, develop the Property with a commercial cannabis facility in accordance with and to the extent of the Development Plan and/or application. The Property shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the Development Plan and/or application. -7- 4.2 Effect of STATUTORY AGREEMENT on Land Use Regulations. Except as otherwise provided by this STATUTORY AGREEMENT, the rules, regulations and official policies and conditions of approval governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement, occupancy and construction standards and specifications applicable to development of the Property shall be the Development Plan and/or application. Provided, however, that in approving tentative subdivision maps, the City may impose ordinary and necessary dedications for rights-of-way or easements for public access, utilities, water, sewers and drainage, having a nexus with the particular subdivision; provided, further, that the City may impose and will require normal and customary subdivision improvement agreements and commensurate security to secure performance of Owner's obligations thereunder. 4.3 Changes to Project. The parties acknowledge that changes to the Project or Development Approvals may be appropriate and mutually desirable. The City shall act on such applications, if any, in accordance with the Existing Land Use Regulations, subject to the Reservations of Authority, or except as otherwise provided by this STATUTORY AGREEMENT. If approved, any such change in the Existing Development Approvals shall be considered an additional Existing Development Approval. 4.4 Reservations of Authority. Any other provision of this STATUTORY AGREEMENT to the contrary notwithstanding, the Development of the Property shall be subject to subsequently adopted ordinances, resolutions ("Subsequent Land Use Regulations" or sometimes referred to as "Reservation of Authority") on the following topics: (i) Processing Fees imposed by the City to cover the estimated or actual costs to the City of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued, which fees are charged to reimburse the City's lawful expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection or entitlement are granted or conducted by the City. (ii) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (iii) Regulations governing engineering and construction standards and specifications including, any and all uniform codes adopted by the State of California and subsequently adopted by the City. (iv) Regulations which may be in conflict with the Development Plan but which are reasonably necessary to protect the public health and safety; provided, however, the following shall apply: (a) That to the extent possible, such regulations shall be applied and construed so as to provide Owner with the rights and assurances provided in this STATUTORY AGREEMENT; (b) That such regulations apply uniformly to all new development projects of the same uses within the City; and (v) Regulations that do not conflict with the Development Plan. The term "do not conflict" means new rules, regulations, and policies which: (a) do not modify the Development Plan, including, without limitation, the permitted land uses, the density or intensity of use, the phasing or timing of Development of the Project, the maximum height and size of proposed buildings on the Property, provisions for Dedication of land for public purposes and Development Exactions, except as expressly permitted elsewhere in this STATUTORY AGREEMENT, and standards for design, development and construction of the Project; (b) do not prevent Owner from obtaining any Subsequent Development Approvals, including, without limitation, all necessary approvals, permits, certificates, and the like, at such dates and under such circumstances as Owner would otherwise be entitled by the Development Plan; or (c) do not prevent Owner from commencing, prosecuting, and finishing grading of the land, constructing public and private improvements, and occupying the Property, or any portion thereof, all at such dates and schedules as Owner would otherwise be entitled to do so by the Development Plan. (vi) The City shall not be prohibited from applying Project Subsequent Land Use Regulations that do not affect permitted uses of the land, density, design, public improvements (including construction standards and specifications) or the rate of development of the Development, nor shall the City be prohibited from denying or conditionally approving any Subsequent Development applications on the basis of such subsequent Land Use Regulations. 4.5 Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of the City possess authority to regulate aspects of the development of the Property separately from or jointly with the City, and this STATUTORY AGREEMENT does not limit the authority of such other public agencies. The City shall reasonably cooperate with other public agencies processing Development Approvals for the Project. 4.6 Tentative Subdivision Map and Development Approvals Lifespan. The term of any tentative subdivision map shall be in effect for a period of fifteen (15) years, and may be extended pursuant to the provisions of the California Subdivision Map Act (Government Code §§ 66410 et seq.) All Development Approvals shall not expire if Owner commences substantial construction of the Project within one (1) year from the Effective Date of this STATUTORY AGREEMENT. "Substantial Construction" means the issuance of a building permit in furtherance of the Project. 4.7 Satisfaction of Conditions of Approval. Owner shall comply with any and all conditions of approval for any entitlement, permit, or license it receives from the City. 4.8 Subsequent Entitlements. Prior to commencement of construction of the Project, Owner shall be required to submit applications for any and all subsequent entitlements, if any, consistent with the terms and conditions set forth in this STATUTORY AGREEMENT. 4.9 City Records Inspection. Owner acknowledges and agrees that the City is empowered to examine Owner's books and records, including tax returns. The City has the power and authority to examine such books and records at any reasonable time, including but not limited to, during normal business hours. If the City wishes to inspect the areas of the Property where the cannabis is being cultivated or manufactured, City may do so at any time with no prior notice to Owner. In addition, City agrees that all of its employees or agents which enter the cultivation, manufacturing, and curing areas shall follow all of the policies and guidelines imposed on Owner's employees, including without limitation, the wearing of any clothing or equipment to insure that no pests or impurities shall enter the cultivation and curing areas. ARTICLES. PUBLIC BENEFITS. 5.1 Intent. The parties acknowledge and agree that development of the Property will result in substantial public needs which will not be fully met by the Development Plan and further acknowledge and agree that this STATUTORY AGREEMENT confers substantial private benefits on Owner which should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on Owner by providing more fully for the satisfaction of the public needs resulting from the Project. 5.2 For the first year, Owner will pay the City a total of $240,000 as a Fee. This fee is calculated based on $10.90 a square foot of permit space and a permit which allows up to 22,000 sq. feet, among other factors. 5.3 In year two, the Fee will increase to $12.95 per sq. foot for a total of $285,000 per year. In year three, the Fee will decrease to $12.50 per sq. foot for a total of $275,000 per year, among other factors. 5.4 At the beginning of year four and year five, Owner will pay a Fee of $15.45 per sq. foot for a total of $340,000 per year. 5.5 The Fee schedule is as follows: The first Fee payment is due at the close of the second quarter. Therefore, the first payment will be due on the last day of June 2018, the second and last payment for the first year is due on the last day of December 2018. For years 2 through 15, the Fee schedule is as follows: divide the total Fee for the respective year into four and make four equal payments due at the end of each quarter of the respective year. If Owner and City cannot agree to a new Fee or Fees by December 22, 2022, this STATUTORY AGREEMENT will automatically terminate on December 23, 2022. 5.6 The Fee is subject to reassessment by the City every five years. At the end of year five, the City will set a new Fee which will be applied in years 6 through 10. -10- At the end of year 10, the City will set new Fee which will be applied in years 11 through 15. No one factor is dispositive in the City's determination of the new Fee. The Cannabis permit will expire at the close of the 15th year and will require the Owner to reapply with the City for a new permit. 5.7 Further, Owner will pay a yearly payment of $50,000 each year to the City that can be used to mitigate the impact of the cannabis business on the City and its resources which includes but is not limited to, to use to pay a part of a police officer's salary and/or benefits. This $50,000 amount will be due at the time the permit is issued. Subsequent annual payments will be due on the permit issuance anniversary date. This payment is due within thirty (30) days of issuance of the permit and thereafter on the anniversary of the issuance of the permit. 5.8 Jobs and Wage Creation. 5.8.1 Local Hiring. Owner agrees to use its reasonable efforts to hire qualified City residents for jobs at the Project. Owner shall also use reasonable efforts to retain the services of qualified contractors and suppliers who are located in the City or who employ a significant number of City residents. At least 20 percent of the Project's workforce shall consist of residents of the City. Job announcements shall be posted at City Hall, along with proof that the job announcements were advertised in at least two newspapers published, printed or distributed in the City and on various social media sites accessible to the general public. In addition, Owner shall make a good faith effort to advertise job announcements at local and job fairs, on local radio 5.9 Development Agreement Administrative Fee Deposit. Owner shall be responsible for all of the City's actual costs associated with processing Development Approvals for the Project including, but not limited to, costs associated with the City's review and processing of the Project, including but not limited to reviewing the Project's entitlements, including all environmental clearance documents, permits, licenses and all documents evidencing compliance with state and local law. As such, upon issuance of its permit, Owner must deposit $15,000 with the City for the purpose of reimbursing the City for any associated costs with processing the Project, as detailed above and reimbursing the City for its actual costs incurred in drafting and processing this STATUTORY AGREEMENT. Owner will be liable for the City's actual costs incurred in processing future Development Approval applications. City acknowledges and agrees that this payment is not merely a deposit, but is a cap on the amount of the City's actual costs incurred in processing this STATUTORY AGREEMENT. ARTICLE 6. DISTRIBUTION AND TRANSPORTATION 6.1 Transportation of Cannabis. All pick ups and drop offs of cannabis and cannabis products into and out of the City of Baldwin Park shall be by the exclusive distributor, Rukli, Inc., or such other company should Rukli, Inc. no longer hold that right. Owner shall not, on its own or through any person or entity, arrange for pick ups or drop offs of cannabis or cannabis products into or out of the City of Baldwin Park for any purpose, except by the exclusive distributor. -11- 6.2 Distribution of Cannabis. Owner shall distribute its cannabis and cannabis products only through the City's exclusive distributor. Owner shall cooperate fully with the City's exclusive distributor regarding the accounting for product, revenue and tax collection. 6.3 Owner and the City's exclusive distributor shall reach their own agreement regarding fees for the exclusive distributor's services. ARTICLE 7. REVIEW FOR COMPLIANCE. 7.1 Periodic Review. The City Council shall review this STATUTORY AGREEMENT annually, on or before each anniversary of the Effective Date, in order to ascertain Owner's good faith compliance with this STATUTORY AGREEMENT. During the periodic review, Owner shall be required to demonstrate good faith compliance with all the terms of the STATUTORY AGREEMENT. 7.2 Special Review. The City Council may order a special review of compliance with this STATUTORY AGREEMENT at any time. 7.3 Review Hearing. At the time and place set for the review hearing, Owner shall be given an opportunity to be heard. If the City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this STATUTORY AGREEMENT, the City Council may automatically terminate this STATUTORY AGREEMENT notwithstanding any other provision of this STATUTORY AGREEMENT to the contrary, or modify this STATUTORY AGREEMENT and impose such conditions as are reasonably necessary to protect the interests of the City. The decision of the City Council shall be final, subject only to judicial review. 7.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review, the City Council determines that Owner is in compliance with this STATUTORY AGREEMENT, the City shall issue a Certificate of Agreement Compliance ("Certificate") to Owner stating that after the most recent periodic or special review, and based upon the information known or made known to the City Council, that (i) this STATUTORY AGREEMENT remains in effect and (ii) Owner is not in default. The City shall not be bound by a Certificate if a default existed at the time of the periodic or special review, but was concealed from or otherwise not known to the City Council, regardless of whether or not the Certificate is relied upon by assignees or other transferees or Owner. 7.5 Failure to Conduct Review. The City's failure to conduct a periodic review of this STATUTORY AGREEMENT shall not constitute a breach of this STATUTORY AGREEMENT. 7.6 Cost of Review. The costs incurred by City in connection with the periodic reviews shall be borne by the City. The Owner is not liable for any costs associated with any City periodic review of this STATUTORY AGREEMENT. The Owner is not liable for costs incurred for reviews. -12- ARTICLE 8. DEFAULTS AND REMEDIES. 8.1 Remedies in General. It is acknowledged by the parties that the City would not have entered into this STATUTORY AGREEMENT if it were to be liable in damages under this STATUTORY AGREEMENT, or with respect to this STATUTORY AGREEMENT or the application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure or delay by either party to perform any term or provision of this STATUTORY AGREEMENT shall constitute a default. In the event of alleged default or breach of any terms or conditions of this STATUTORY AGREEMENT, the party alleging such default or breach shall give the other party thirty (30) days' notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured during any such thirty (30) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this STATUTORY AGREEMENT through any state court, except that the City shall not be liable in monetary damages, unless expressly provided for in this STATUTORY AGREEMENT, to Owner, to any mortgagee or lender, or to any successors in interest of Owner if successors in interest are permitted under this STATUTORY AGREEMENT or mortgagee or lender, or to any other person, and Owner covenants on behalf of itself and all successors in interest, if successors in interest are permitted under this STATUTORY AGREEMENT, to the Property or any portion thereof, not to sue for damages or claim any damages: (i) For any breach of this STATUTORY AGREEMENT or for any cause of action which arises out of this STATUTORY AGREEMENT; or (ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this STATUTORY AGREEMENT, including, without limitation, any impairment or restriction which Owner characterizes as a regulatory taking or inverse condemnation; or (iii) Arising out of or connected with any dispute, controversy or issue regarding the application or request for a permit for cultivation, manufacturing and/or distribution or interpretation or effect of the provisions of this STATUTORY AGREEMENT. Owner hereby agrees to waive and/or release the City of Baldwin Park for any claim or claims or cause of action, not specifically and expressly reserved herein, which Owner may have at the time of execution of this STATUTORY AGREEMENT relating to any application to the City of Baldwin Park including but not limited to, any application for any type of distribution, cultivation or manufacturing permit, any application for any distribution, cultivation or manufacturing rights, or any application for any distribution, cultivation or manufacturing license from the City of Baldwin Park. CALIFORNIA CIVIL CODE SECTION 1542 -13- The Owner expressly acknowledges that this STATUTORY AGREEMENT is intended to include in its effect, a waiver without limitation, of all claims or causes of actions which have arisen and of which each side knows or does not know, should have known, had reason to know or suspects to exist in their respective favor at the time of execution hereof, that this STATUTORY AGREEMENT contemplates the extinguishment of any such Claim or Claims. The Owner specifically acknowledges and waives and releases the rights granted to Owner under California Civil Code Section 1542, which states as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." By expressly waiving the rights granted to Owner under California Civil Code Section 1542, the Owner represents that they understand and acknowledge that if they have suffered any injury, damage as a result of the application for or request for any permit from the City of Baldwin Park and (i) they are not presently aware of any damage or injury, or (ii) any damage or injury has not yet manifested itself, any claims for any such damage or injury are forever released and discharged. Nothing contained herein shall modify or abridge Owner's rights or remedies (including its rights for damages, if any) resulting from the exercise by the City of its power of eminent domain. Nothing contained herein shall modify or abridge Owner's rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of the City and its officials, officers, agents and employees. Nothing herein shall modify or abridge any defenses or immunities available to the City and its employees pursuant to the Government Tort Liability Act and all other applicable statutes and decisional law. Except as set forth in the preceding paragraph relating to eminent domain, Owner's remedies shall be limited to those set forth in this Section 8.1, Section 8.2, and Section 8.3. 8.2 Specific Performance. The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other non -monetary relief are particularly appropriate remedies for the enforcement of this STATUTORY AGREEMENT and should be available to all parties for the following reasons: (i) Except as provided in Section 8.1, money damages are unavailable against the City as provided in Section 8.1 above. (ii) Due to the size, nature and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this STATUTORY AGREEMENT has begun. After such implementation, Owner may be foreclosed from other choices it may have had to use the Property or portions thereof. Owner has invested significant time and resources and performed extensive -14- planning and processing of the Project in agreeing to the terms of this STATUTORY AGREEMENT and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this STATUTORY AGREEMENT, and it is not possible to determine the sum of money which would adequately compensate Owner for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis. 8.3 Termination of Agreement for Default of the City Owner may terminate this STATUTORY AGREEMENT only in the event of a default by the City in the performance of a material term of this STATUTORY AGREEMENT and only after providing written notice to the City of default setting forth the nature of the default and the actions, if any, required by the City to cure such default and, where the default can be cured, the City has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. 8.4 Attorneys' Fees and Costs. In any action or proceeding between the City and Owner brought to interpret or enforce this STATUTORY AGREEMENT, or which in any way arises out of the existence of this STATUTORY AGREEMENT or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non -prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this STATUTORY AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 9.4 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding. 8.5 Owner Default. No building permit shall be issued or building permit application accepted for any structure on the Property after Owner is determined by the City to be in default of the terms and conditions of this STATUTORY AGREEMENT until such default thereafter is cured by Owner or is waived by the City. If the City terminates this STATUTORY AGREEMENT because of Owner's default, then the City shall retain any and all benefits, including money or land received by the City hereunder. ARTICLE 9. THIRD PARTY LITIGATION. 9.1 General Plan Litigation. The City has AGREEMENT is consistent with its General Plan. Plan and concurs with the City's determination. Th this STATUTORY AGREEMENT or otherwise for under this STATUTORY AGREEMENT, or for the Property as contemplated by the Development Plan, -15- determined that this STATUTORY Owner has reviewed the General e City shall have no liability under any failure of the City to perform inability of Owner to develop the which failure to perform or inability to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law, or that this STATUTORY AGREEMENT or any of the City's actions in adopting it were invalid, inadequate, or not in compliance with law. Notwithstanding the foregoing, neither party shall contend in any administrative or judicial proceeding that the STATUTORY AGREEMENT or any Development Approval is unenforceable based upon federal, state or local statutes, ordinances or regulations in effect on the Effective Date. 9.2 Hold Harmless Agreement. Owner hereby agrees to, and shall hold City, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Owner or Owner's contractors, subcontractors, agents, or employees operations under this STATUTORY AGREEMENT, whether such operations be by Owner, or by any of Owner's contractors, subcontractors, agents, or employees operations under this STATUTORY AGREEMENT, whether such operations be by Owner, or by any of Owner's contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Owner or any of Owner's contractors or subcontractors. Owner agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations. 9.3 Indemnification. Owner shall defend, indemnify and hold harmless City and defend its agents, officers and employees against and from any and all liabilities, demands, lawsuits, claims, government claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which the City and its City Council members may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this STATUTORY AGREEMENT and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) if applicable, the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; and (iii) the proceedings or procedure undertaken in connection with the adoption or approval of any permit or any of the above. In the event of any legal or equitable action or other proceeding instituted by anyone against the City or its City Council, any third party (including a governmental entity or official) challenging the validity of any provision of this STATUTORY AGREEMENT or procedure upon which the permit was issued, or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding. Notwithstanding the above, the City, at is sole option, may tender to Owner and Owner agrees to accept any such tender of the complete defense of any third party challenge as described herein. In the event the City elects to contract with special counsel to provide for such a defense, the City may do so in its sole discretion and Owner will be required to pay the defense costs of the City as the costs are incurred. Owner agrees to pay any and all attorney's fees or retainer regarding the selection of -16- counsel, and Owner shall pay all costs and all attorneys' fees related to retention of such counsel. 9.4 Environmental Contamination. Owner shall indemnify and hold the City, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of the Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting any acts or omissions of City as successor to any portions of the Property dedicated or transferred to City by Owner, for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attorneys' fees, the City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. The City may in its discretion participate in the defense of any such claim, action or proceeding. The provisions of this Section 9.4 do not apply to environmental conditions that predate Owner's ownership or control of the Property or applicable portion; provided, however, that the foregoing limitation shall not operate to bar, limit or modify any of Owner's statutory or equitable obligations as an owner or seller of the Property. 9.5 The City May Choose its Own Counsel. With respect to Sections 9.1 through 9.4, the City reserves the right to select its own special counsel or otherwise engages special counsel to defend the City hereunder, which fees will be paid by Owner. 9.6 Accept Reasonable Good Faith Settlement. With respect to Article 9, the City shall not reject any reasonable good faith settlement. Before accepting any such settlement offer, City shall notify Owner of the offer and provide Owner with a copy of the offer. If Owner disagrees with the City's intention to accept the offer, prior to the City's response to any offer, the parties shall meet and confer in order to attempt to resolve the parties' differences. If the City does reject a reasonable, good faith settlement that is acceptable to Owner, Owner may enter into a settlement of the action, as it relates to Owner, and the City shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any judgments rendered in connection with such action. This Section 9.6 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. Owner and the City expressly agree that this Section 9.6 does not apply to any settlement that requires an exercise of the City's police powers, limits the City's exercise of its police powers, or affects the conduct of the City's municipal operations. 9.7 Administrative Actions. The parties acknowledge that in the future there could be claims, enforcement actions, requests for information, subpoenas, criminal or civil actions initiated or served by either the Federal Government or the State Government in connection with Owner's development, operation and use of the Property (collectively, "Actions"). The City shall not disclose information and documents to the Federal Government or State Government, its officers, or agents regarding any -17- party to this agreement absent a grand jury subpoena, civil or administrative subpoena, warrant, discovery request, summons, court order or similar process authorized under law hereinafter called "Governmental Notice". If any Action is brought by either the Federal or State Government, City shall immediately notify Owner of the nature of the Claim including all correspondence or documents submitted to the City. Prior to responding to the Governmental Notice, City shall provide Owner ten (10) days from the date of such notice subpoena or the like to serve and obtain on the City a protective order, or the like, from a court of competent jurisdiction. 9.8 Survival. The provisions of Sections 9.1 through 9.7 inclusive, shall survive the termination or expiration of this STATUTORY AGREEMENT, until such time as the uses of the Property established in the Development Plan are permanently terminated. ARTICLE 10. THIRD PARTY LENDERS, ASSIGNMENT & SALE. 10.1 Encumbrances. The parties hereto agree that this STATUTORY AGREEMENT shall not prevent or limit Owner, in any manner, at Owner's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. 10.2 Lender Requested Modification/Interpretation. The City acknowledges that the lenders providing such financing may request certain interpretations and modifications of this STATUTORY AGREEMENT and agrees upon request, from time to time, to meet with Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. The City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this STATUTORY AGREEMENT and as long as such requests do not minimize, reduce, curtail, negate or in any way limit City's rights under this STATUTORY AGREEMENT. ARTICLE 11. MISCELLANEOUS PROVISIONS. 11.1 Entire Agreement. This STATUTORY AGREEMENT sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly contained herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this STATUTORY AGREEMENT, provided, however, City at its option may rely on statements by Owner's agents at the public hearings leading to the City's approval of the project or on written documents by Owner's agents that are a part of the public record. 11.2 Severability. If any term, provision, covenant or condition of this STATUTORY AGREEMENT shall be determined invalid, void or unenforceable, by a -18- court of competent jurisdiction, the remainder of this STATUTORY AGREEMENT shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this STATUTORY AGREEMENT. The foregoing notwithstanding, the provision of the public benefits set forth in Article 5, including the payment of the fees set forth therein, are essential elements of this STATUTORY AGREEMENT and the City would not have entered into this STATUTORY AGREEMENT but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at the City's option this entire STATUTORY AGREEMENT shall terminate and from that point on be null and void and of no force and effect whatsoever. The foregoing notwithstanding, the development rights set forth in Article 4 of this STATUTORY AGREEMENT are essential elements of this STATUTORY AGREEMENT and Owner would not have entered into this STATUTORY AGREEMENT but for such provisions, and therefore in the event that any portion of such provisions are determined to be invalid, void or unenforceable, at Owner's option this entire STATUTORY AGREEMENT shall terminate and from that point on be null and void and of no force and effect whatsoever. 11.3 Interpretation and Governing Law. This STATUTORY AGREEMENT and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This STATUTORY AGREEMENT shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this STATUTORY AGREEMENT, since all parties were represented by counsel in the negotiation and preparation hereof. 11.4 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this STATUTORY AGREEMENT. 11.5 Singular and Plural; Gender, and Person. Except where the context requires otherwise, the singular of any word shall include the plural and vice versa, and pronouns inferring the masculine gender shall include the feminine gender and neuter, and vice versa, and a reference to "person" shall include, in addition to a natural person, any governmental entity and any partnership, corporation, joint venture or any other form of business entity. 11.6 Time of Essence. Time is of the essence in the performance of the provisions of this STATUTORY AGREEMENT as to which time is an element. 11.7 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this STATUTORY AGREEMENT by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this STATUTORY AGREEMENT thereafter. -19- 11.8 No Third Party Beneficiaries. The only parties to this STATUTORY AGREEMENT are Owner and the City. This STATUTORY AGREEMENT is made and entered into for the sole protection and benefit of the parties and their successors and assigns. There are no third party beneficiaries and this STATUTORY AGREEMENT is not intended, and shall not be construed, to benefit, or be enforceable by any other person whatsoever. 11.9 INTENTIONALLY BLANK 11.10 INTENTIONALLY BLANK 11.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 11.12 Counterparts. This STATUTORY AGREEMENT may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 11.13 Jurisdiction and Venue. Any action at law or in equity arising under this STATUTORY AGREEMENT or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this STATUTORY AGREEMENT shall be filed and prosecuted in the Superior Court of the County of Los Angeles, State of California, and the parties hereto waive all provisions of federal or state law or judicial decision providing for the filing, removal or change of venue to any other state or federal court, including, without limitation, Code of Civil Procedure Section 394. 11.14 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this STATUTORY AGREEMENT. No partnership, joint venture or other association of any kind is formed by this STATUTORY AGREEMENT. The only relationship between the City and Owner is that of a government entity regulating the development of private property and the owner of such property. 11.15 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this STATUTORY AGREEMENT and the satisfaction of the conditions of this STATUTORY AGREEMENT. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this STATUTORY AGREEMENT to carry out the intent and to fulfill the provisions of this -20- STATUTORY AGREEMENT or to evidence or consummate the transactions contemplated by this STATUTORY AGREEMENT. 11.16 Eminent Domain. No provision of this STATUTORY AGREEMENT shall be construed to limit or restrict the exercise by the City of its power of eminent domain. 11.17 Agent for Service of Process. In the event Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer, resident of the State of California, or if it is a foreign corporation, then Owner shall file, upon its execution of this STATUTORY AGREEMENT, with the Chief Executive Officer or his or her designee, upon its execution of this STATUTORY AGREEMENT, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this STATUTORY AGREEMENT, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon Owner. If for any reason service of such process upon such agent is not feasible, then in such event Owner may be personally served with such process out of the County of Los Angeles and such service shall constitute valid service upon Owner. Owner is amenable to the process so described, submits to the jurisdiction of the Court so obtained, and waives any and all objections and protests thereto. 11.18 Authority to Execute. The person or persons executing this STATUTORY AGREEMENT on behalf of Owner warrants and represents that he/she/they have the authority to execute this STATUTORY AGREEMENT on behalf of his/her/their corporation, partnership or business entity and warrants and represents that he/she/they has/have the authority to bind Owner to the performance of its obligations hereunder. Owner shall each deliver to City on execution of this STATUTORY AGREEMENT a certified copy of a resolution and or minute order of their respective board of directors or appropriate governing body authorizing the execution of this STATUTORY AGREEMENT and naming the officers that are authorized to execute this STATUTORY AGREEMENT on its behalf. Each individual executing this STATUTORY AGREEMENT on behalf of his or her respective company or entity shall represent and warrant that: (i) The individual is authorized to execute and deliver this STATUTORY AGREEMENT on behalf of that company or entity in accordance with a duly adopted resolution of the company's board of directors or appropriate governing body and in accordance with that company's or entity's articles of incorporation or charter and bylaws or applicable formation documents; and (ii) This STATUTORY AGREEMENT is binding on that company or entity in accordance with its terms; and (iii) The company or entity is a duly organized and legally existing company or entity in good standing; and -21- (iv) The execution and delivery of this STATUTORY AGREEMENT by that company or entity shall not result in any breach of or constitute a default under any mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or other contract or instrument to which that company or entity is party or by which that company or entity may be bound. 11.19 Nexus/Reasonable Relationship Challenges. Owner agrees that the fees imposed are in fact reasonable and related to the mitigation of the negative impacts of the business on the City and consents to, and waives any rights it may have now or in the future to challenge the legal validity of, the conditions, requirements, policies or programs set forth in this STATUTORY AGREEMENT including, without limitation, any claim that the terms in this STATUTORY AGREEMENT constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, and/or impose an unlawful tax. 11.20 [RESERVED] 11.21 No Damages Relief Against City. The parties acknowledge that the City would not have entered into this STATUTORY AGREEMENT had it been exposed to damage claims from Owner, or anyone acting on behalf of Owner for any breach thereof. As such, the parties agree that in no event shall Owner, or Owners' partners, or anyone acting on behalf of Owner be entitled to recover damages against City for breach of this STATUTORY AGREEMENT. 11.22 Laws. Owner agrees to comply with all applicable state, regional, and local laws, regulations, polices and rules. In addition, Owner further agrees to comply with all issued entitlements, permits, licenses, including any and all applicable development standards. Specifically, Owner agrees to comply with all applicable provisions of BPMC. 11.23 Compliance with Conditions of Approval. Owner agrees to comply with and fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it receives from the City. All conditions of approval for all entitlements, permits and/or licenses are attached hereto and incorporated herein by this reference. 11.24 The City acknowledges that this STATUTORY AGREEMENT shall be read consistent with any statewide or national regulation of commercial cannabis that is promulgated in the future, either by legislative action or voter approval. In the event national or statewide regulations are promulgated which decriminalize or legalize the adult -use of marijuana for recreational use, this STATUTORY AGREEMENT shall govern the conduct of the property under such future regulations. IN WITNESS WHEREOF, the parties hereto have caused this STATUTORY AGREEMENT to be executed as of the dates written above. CITY OF BALDWIN PARK By: Manuel Lozano, Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: By: Robert N. Tafoya, City Attorney W&F INTERNATIONAL CORPORATION By: Yichang Bai, Chief Executive Officer APPROVED AS TO FORM: By: EXHIBIT A Legal Counsel for W&F International Corporation LEGAL DESCRIPTION OF PROPERTY -23- ATTACHMENT #2 ORDINANCE 1434 ORDINANCE 1434 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY OF BALDWIN PARK TO ENTER INTO A DEVELOPMENT AGREEMENT WITH W & F INTERNATIONAL CORPORATION FOR THE CULTIVATION AND/OR MANUFACTURING OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4802 LITTLE JOHN STREET, SUITE B (APN 8535-023-011) WITHIN THE CITY OF BALDWIN PARK WHEREAS, a Development Agreement with the City of Baldwin Park will be required; and WHEREAS, a duly noticed public hearing was held by the Planning Commission of the City of Baldwin Park on November 28, 2018, to receive comments and consider recommendation to City Council of the proposed Development Agreement; and WHEREAS, the Planning Commission at such hearing, did recommend that the City Council approve the proposed Agreement; and WHEREAS, the City Council held a duly noticed public hearing pursuant to law on the Agreement on December 5, 2018; and WHEREAS, the City Council has reviewed the Development Agreement (attached as Exhibit "A" herewith and incorporated herein by reference) and finds and declares that compliance with all notice, hearing, and procedural requirements as set forth by law have been met, thus allowing the City Council to review and consider the approval of the attached Development Agreement; and WHEREAS, the City Council hereby specifically finds that the provisions of the Development Agreement are consistent with the General Plan of the City; and WHEREAS, the City Council hereby specifically finds that the Development Agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole; and WHEREAS, the City Council hereby specifically finds that the Development Agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5.; and WHEREAS, as required by law, the City Council gave first reading to the proposed ordinance on December 5, 2018. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: SECTION 1. In accordance with the provisions of the California Environmental Quality Act (CEQA), it has been determined that the proposed Development Agreement Projects (DA 18-19) will not have a significant impact of the environment and are Categorically Exempt pursuant to Article 19, Section 15301, Class 1, 'Existing Facilities' or Class 32, 'In -fill Development Projects'. Furthermore each of the locations is proposed within an existing building. SECTION 2. The City Council hereby adopts the following findings of fact required by Subchapter 153.210.860 of the City's Municipal Code relating to Development Agreements: 1. The Development Agreement is consistent with the General Plan objectives, policies, land uses and implementation programs and any other adopted plans or policies applicable to the agreement. Because both of the locations of the cannabis distribution business are located within the I -C, Industrial Commercial Zone, it is anticipated that the use of the property is consistent with the other light industrial uses within the area. The adoption of cannabis cultivation and manufacturing activities is also consistent with Goal 1.0 of the City's Economic development Element in the General Plan in that the City encourages and facilitates activities that expand the City's revenue base. Furthermore, Goal 6.0 of the same element encourages the expansion of the City's diverse industrial base. Policy 6.5 of Goal 6.0 encourages an on-going campaign with local businesses to hire local residents. This Development Agreement requires that a minimum of 20% of the businesses workforce shall consist of Baldwin Park residents. 2. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. Pursuant to Ordinance 1401, adopted by the City Council on August 16, 2017, effective on September 16, 2017 (and as subsequently amended by Ordinance 1403 refining the measurement of distances) cannabis cultivation, manufacturing and distribution activities are allowed within the City provided all of the development standards in Chapter 127 of the City's Municipal Code are met. Dispensaries remain prohibited throughout the City. 3. The Development Agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole. The Development Agreement is in conformance with the general area and City as a whole as it is located within the I -C, Industrial Commercial Zone surrounded by lighter industrial uses. The use exceeds the distance requirement of fifty (50) feet between cannabis uses and the closest residential zone; furthermore, pursuant to Section 127.07.E.1 of the City's Municipal Code, the cannabis use is not nearby any sensitive uses such as schools, day care centers, parks or youth centers. Security measures for the facility include, alarms, video surveillance, and a comprehensive employee training program. 4. The Development Agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5. Pursuant to the City Attorney's Office along with review by the Planning Division Staff, the Development Agreement (Reference Attachments #2 through #5 to the Planning Commission and City Council staff report dated November 28, 2018) is consistent with California Government Code Sections 65864-65869.5. SECTION 3. The City Council hereby approves and adopts the Development Agreement, in the form as attached hereto as Exhibit "A", and authorizes and directs the Mayor to sign it in the name of the City of Baldwin Park. SECTION 4. 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 5th day of Dec ember, 2018, and adopted and ordered published at a regular meeting of said Council on the 5th day of December, 2018. PASSED, APPROVED, AND ADOPTED this Sth day of December, 2018. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELESSS: CITY OF BALDWIN PARK I, JEAN AYALA, 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 December 5, 2018. Thereafter, said Ordinance No. 1434 was duly approved and adopted at a regular meeting of the City Council on December 5, 2018 by the following vote to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JEAN AYALA CITY CLERK ATTACHMENT #3 REVISED INFORMATIONAL TABLE CAN17-29 DA 18-19 Location 4802 Littlejohn Street Ste. B APN 8535-023-011 Zoning of Subject Location I Industrial Principal Names Yichanq Bai Company Name W & F International Corporation Term of Development Fifteen (15) years from 6/20/18 Aqreement December 31 and June 30 for year #1 Payment Schedule Quarterly for Years #2 through #15—Four equal payments. Year #1--$240,000 Year #2--$285,000 Payment Amount Year #3--$275,000 Years #4 and #5--$340,000—The Mitigation Fee is subject to reassessment by the City every five (5) Floor Area of Buildings Approximately 17,000 square feet Employee Requirements At least 20% of the Projects workforce shall consist of residents of the City. ATTACHMENT #4 REVISED VICINITY MAP —atw � kipllEiunk 91ieb1 os D ! lu 5hbst , 4. 6d0 1i x al re. i Ser 6w Sl -w R1 xx I E Guw Sleet P � � � I a Mm $hopl'. 4 � : 4 _ ."Chiu sfnw #I R1 R1 gxwrntiadl $(r:mt � I PYn kanplClA SOW ,1 .,,F7a19.. SRbn1 CYslp la $VnCt 9.191(9 $ w ... IL � R3 R3 1 � � VICINITY MAP CASE NUMBER: DA 18-19 LOCATION: 4802 Littlejohn Street Ste. B DATE: December 5, 2018 ATTACHMENT #5 REVISED FINDINGS OF FACT DA 18-19 FINDINGS OF FACT 1) The development agreement is consistent with the General Plan objectives, policies, land uses and implementation programs and any other adopted plans or policies applicable to the agreement. Because the location of the cannabis cultivation/manufacturing business is located within the I, Industrial Zone, it is anticipated that the use of the property is consistent with the other light industrial uses within the area. The adoption of cannabis cultivation and manufacturing activities is also consistent with Goal 1.0 of the City's Economic development Element in the General Plan in that the City encourages and facilitates activities that expand the City's revenue base. Furthermore, Goal 6.0 of the same element encourages the expansion of the City's diverse industrial base. Policy 6.5 of Goal 6.0 encourages an on-going campaign with local businesses to hire local residents. This Development Agreement requires that a minimum of 20% of the businesses workforce shall consist of Baldwin Park residents. 2) The development agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. Pursuant to Ordinance 1401, adopted by the City Council on August 16, 2017, effective on September 16, 2017 (and as subsequently amended by Ordinance 1403 refining the measurement of distances) cannabis cultivation, manufacturing and distribution activities are allowed within the City provided all of the development standards in Chapter 127 of the City's Municipal Code are met. Dispensaries remain prohibited throughout the City. 3) The development agreement is in conformance with the public convenience and general welfare of persons residing in the immediate area and will not be detrimental or injurious to property or persons in the general neighborhood or to the general welfare of the residents of the city as a whole. The development agreement is in conformance with the general area and City as a whole as it is located within the I, Industrial Zone surrounded by lighter industrial uses. The use exceeds the distance requirement of fifty (50) feet between cannabis uses and the closest residential zone; furthermore, pursuant to Section 127.07.E.1 of the City's Municipal Code, the cannabis use is not nearby any sensitive uses such as schools, day care centers, parks or youth centers. DA 18-19 4) The development agreement is consistent with the provisions of California Government Code §§ 65864 - 65869.5. Pursuant to the City Attorney's Office along with review by the Planning Division Staff, the Development Agreement (Reference Attachments #1 through #5 to the Planning Commission staff report dated November 28, 2018) is consistent with California Government Code Sections 65864- 65869.5. ATTACHMENT #6 CHANGE OF LOCATION APPLICATION The Katherman Company 8.eptember26,2018 City -of Baldwin'Park, City.PlanningDeparfinent 14404-t- Padific Avenue Nldlwk Park,,CA 91766 RF,4. Cb9nge of Location AnAendment, fbf W and F Intemational. Corp.. DW -.0ty.Plapning., On behalf arW and.F Intemational Corp:, we are requesting g obftgo of iba4co fito 4270 45NO4 *6et, ParXCAto4gO2'LittlejDhn$t-eet.. T . he:.properf)r owm. for the Elton property ixiWMed the we-dhdded to. Iwk for. another. site. We fuel -the new loaWon. N better sgiWfoe ft, C ulftdtft -Cent4r. fit ly =bon Thee 'erman Company 46E Peninsula Center #284 Rolling Hills Estates, CA 90274 Page 1 of 4 CANNABIS PERMIT APPLICATION (Amendment) CANNABIS PERMIT APPLICATION (Amendment--Location) f► F./r This application amendment pertains to the update of an existing and approve TIi.E�;'' u f-, �, -: 7K ? Cannabis Permit. All fees paid are nonrefundable regardless of outcome. SANjgUAIEL '1 ,o .,, , f-. ay Section 127.09 of the City's Municipal Code states that ..."No Licensee is authorize c+ �,, ;'i�A LTL E�': ;' o�`..... h to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the City Council..." TED JAN)U,.^ Due to City staffing constraints, Applicants are directed to schedule appointments with the Planning Division to submit applications. Otherwise, there is no guarantee that a city planner will be available to take in applications. Applications may not be dropped off without review from a city planner. Further, no mailed or e-mailed applications will be accepted. Business Name: W &F International Corporation Business Contact (Individual): Yichang Bai Business Contact Title: Chairman of the Board Business Contact Mailing Address: 2792 S. Hillrise Drive Walnut, Ca 91789 Primary Phone No.: 909-343-3854 Emergency Contact Name & Phone No.: E-mail: Marilyn.greer@katherco.com Permit Being Requested: Please mark ' all applicable boxes below to identify which cannabis operations permits you are seeking through this Cannabis Permit Application Amendment. A separate application and fee is not necessary for each category type in which you are submitting an application for consideration. One application and application fee suffices for all categories. However, you must include in your application package all the information requested for each category you seek to operate.' Neighborhood Compatibility, Air Quality and Safety & Security Plans will be required to be updated to reflect the amendment. X Cultivation: Square Footage: 8079 sf X Manufacturing: Square Footage: 0 sf X Distribution: Building Square Footage: 493 sf IEC�IVED SEP 2,6 2618 CITY OF BALDWIN PARK PLANNING DIVISION Page 2 of A CANNABIS PERMIT APPLICATION (Amendment) action A: Commercial Cannabis Business Description and Location 1. Proposed Location of Business (include APN's): 8535-023-011 2. Name and Address of Property Owner: A & N Industrial Properties LLC Matthew Sawyer,' President 10616 Rush Street, South EI Monte, CA 3. Name and Address of School Closest to Proposed Location Walnut Elementary School 4701 Walnut Street Baldwin Park, CA 91706 1100 feet from site 5. Description of neighborhood around the proposed location (i.e., surrounding uses, nearby sensitive uses such as churches, schools, parks, or libraries) and transit access to site. A separate sheet may be attached. See Attached letter dated September 17, 2018 Required Plan Submittals (Plans shall be drawn to scale): 1. Site Plan for each potential location. The Site Plan must be dimensioned and show the entire parcel, including parking and additional structures. Conceptual Building Elevations if new construdtio f existing buildings, submit photographs, and include any proposed exterior building alterations If applicable 3. Floor Plans, including any proposed interior alterations. 4. Vicinity Map. It is the Applicant's responsibility to prove to the City that the cannabis operation's location is at least 600 feet from all sensitive uses and 50 feet from all residential zones. The measurement is from property airspace line to property airspace line on each lot. However, in the case of commercial condominiums, measurement is taken from the airspace property line. 5. Photos of the site and building(s) from all sides/directions. Section B: Required Supplemental Information (See attached) This information is required for this application amendment to be considered complete. Attach the following reports to the amendment. X Neighborhood Compatibility Plan X Safety and Security Plan X Air Quality Plan Section C: Final Location Information (See attached) 'ultiple sites per application can be considered. Attach proof of ownership of the site or a signed, executed ,case document will also suffice. Section D: Essential Supplemental Information Page 3 of 4 CANNABIS PERMIT APPLICATION (Amendment) information is required and you must submit this as part of meeting the requirements pt ms leLed Acation. Check the box evidencing that you have submitted and attached to this Application the described below. X Suitability of the proposed property: Applicant must demonstrate that the proposed location(s) exceeds all buffer zones established in the Cannabis Ordinance. X Suitability of security plan: The Applicant's security plan must include the presence of security personnel must on premises or patrolling the premises twenty-four (24) hours per day. The Applicant's security plan. demonstrate a method to track and monitor inventory so as to prevent theft or diversion of cannabis. The Applicant's security plan must describe the enclosed, locked facility that will be used to secure or store cannabis when the location is open and the steps taken to ensure cannabis is not visible to the public. The Applicant's security plan must include measures to prevent the diversion of cannabis to persons under the age of twenty-one (21). Environmental impact: Application should indicate if the business uses renewable energy sources. Section E: Fees Please attach a cashier's.• check or money order made payable to the "City of Baldwin Park" for the following fees: X Cannabis Permit Application Amendment Fee: $2,171.70 Staff use only: Date of application amendment submittal: Number assigned to application: &AVN Date fee received: 41 IN Date application reviewed: Date Proof of ownership was verified: YW Planning Division ❑ •Incomplete Application Complete Application Cannabis Subcommittee ❑ NOT In Compliance with Cannabis Ordinance Locational Criteria ❑ In Compliance with Cannabis Ordinance Locational Criteria ❑ Not Recommended for Council Consideration ❑ Recommended for Council Consideration CANNABIS PERMIT APPLICATION (Amendment) Page 4 of 4 ATTACHMENT #7 NOTICE OF PUBLIC HEARING ATE sBR•IE CITY OF BALDWIN PARK RqJAOUP NOTICE OF PUBLIC HEARING TO: Property Owners within a 300 foot radius FROM: Baldwin Park Planning Division SUBJECT: Development Agreement (DA 18-19) Amendment NOTICE IS HEREBY GIVEN THAT a public hearing to consider the following case will be held at 7:00 p.m. or soon thereafter, by the City Council of the City of Baldwin Park in City Council Chambers, 14403 E. Pacific Avenue, on Wednesday, October 28, 2018. All interested parties may appear and be heard at that time. Following the public hearing, City Council will introduce for first reading Ordinance 1434, amend Development Agreement 18-18 to change the location from 4276 Elton Street to 4802 Littlejohn Street Ste. B for Cultivation and Manufacturing of Adult and/or Medical Cannabis (Location: 4802 Littlejohn Street Ste. B; DA 18-19) CASE NUMBER: DA 18-19 ADDRESS: 4802 Littlejohn Street Ste. B REQUEST: This application represents an approval by the City Council on an amendment to the Development Agreement 18-18 to change the location from 4276 Elton Street to 4802 Littlejohn Street Ste. A, for a Cannabis cultivation and manufacturing facility within the I, Industrial Zone, pursuant to Section 153.210, Part 17 of the City's Municipal Code. AREA MAP Not to Scale T The proposal is considered to be categorically exempt, pursuant to Section 15301 (Class 1, Existing Facilities) of the California Environmental Quality Act (CEQA), as the proposal involves minor alterations of a tenant space within an existing commercial building. If in the future anyone wishes to challenge a decision of the City Council in court, you may be limited to rising only those issues you or someone else raise at the public hearing described above or in written correspondence delivered to the City Council at, or prior to, the Public Hearing. If further information is desired on the above case, please contact the City Clerk's Office at (626) 960-4011 and refer to the case number. If you are aware of someone who would be interested in becoming informed of the contemplated action, please pass this notice along as a community service. Para informacion en Espanol referente a este caso, favor de Ilamar al (626) 813-5261.