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HomeMy WebLinkAbout2019 04 17NOTICE AND CALL OF A SPECIAL MEETING OF THE CITY COUNCIL TO THE MEMBERS OF THE AFOREMENTIONED AGENCIES AND THE CITY CLERK OF THE CITY OF BALDWIN PARK NOTICE IS HEREBY GIVEN that a Special Meeting is hereby called to be held on WEDNESDAY, APRIL 17, 2019 at 5:30 PM. at City Hall — 31d Floor Conference Room 307, 14403 East Pacific Avenue, Baldwin Park, CA 91706. Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda. NO OTHER BUSINESS WILL BE DISCUSSED Dated: April 11, 2019. Manuel Lozano Mayor AFFIDAVIT OF POSTING I, Lourdes Morales, Chief Deputy City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of April 17, 2019. Lourdes Morales, Chief Deputy City Clerk AGENDA BALDWIN PARK CITY COUNCIL SPECIAL MEETING Please note time and APRIL 17, 2019 o�at�on 5:30 PM CITY HALL - 3r°' Floor, Conference Room 307 14403 EAST PACIFIC AVENUE BALDWIN PARK, CA 91706 (626) 960-4011 H U B O F .... SAN�,CaAE KIEL "o 'V.. E ' Manuel Lozano - Mayor Monica Garcia - Mayor Pro Tem Alejandra Avila - Council Member Paul C. Hernandez - Council Member Ricardo Pacheco - Council Member PLEASE TURN OFF CELL PHONES AND PAGERS WH/LE MEET/NG /S /N PROCESS POR FA VOR DE APA GAR SUS TELEFONOS CEL ULARES Y BEEPERS DURANTE LA JUNTA PUBLIC COMMENTS COMENTARIOS DEL PUBLICO The public is encouraged to address the City Se invita al publico a dirigirse al Concilio o cualquiera Council or any of its Agencies listed on this otra de sus Agencias nombradas en esta agenda, para agenda, but only on any matter posted on this hablar solamente sobre asunto publicado en esta agenda. If you wish to address the City Council or agenda. Si usted desea la oportunidad de dirigirse al any of its Agencies, you may do so during the Concilio o alguna de sus Agencias, podra hacerlo PUBLIC COMMUNICATIONS period noted on durante el periodo de Comentarios del Publico the agenda. Each person is allowed three (3) (Public Communications) anunciado en la agenda. A minutes speaking time. A Spanish-speaking cada persona se le permite hablar por tres (3) minutos. interpreter is available for your convenience. Hay un interprete para su conveniencia. CITY COUNCIL SPECIAL MEETING – 5:30 P.M. CALL TO ORDER ROLL CALL: Council Members: Alejandra Avila, Paul C. Hernandez, Ricardo Pacheco, Mayor Pro Tern Monica Garcia and Mayor Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera e/ 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 rcumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. (Government Code §54954.21 ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acci6n en alg6n asunto a menos que sea incluido en la agenda, o a menos que exista alg6na emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en consideraci6n en juntas proximas. [Codigo de Gobiemo §54954.2] OPEN SESSION/STUDY SESSION 1. Dog Park Location Options Director of Recreation and Community Services Manuel Carrillo 2. Digital Street Banners/Art in Public Places and Bulletin Displays Park Sign Locations Director of Public Works Sam Gutierrez RECESS TO CLOSED SESSION 3. 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: Salcedo v. City of Baldwin Park Case No. BC676398 Case Name: Jason Adams v. City of Baldwin Park Case No. 2:19-cv-00297 Case Name: Maria Delgado v. City of Baldwin Park Case No. BC635496 Workers Comp Case Name: Lili Hadsell WC Case No. ADJ 10091998 4. Public Employee Appointment (GC §54957): Position: Chief of Police 5. 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. 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 Ming Hong Huang, 428 Cloverleaf, LLC. 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. 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. P. Property: 1529 Virginia Avenue (CAN 18-01) Negotiating Parties: City of Baldwin Park and Erik Intermill, Esource LLC 6. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Potential Case(s): Three (3) RECONVENE IN OPEN SESSION REPORT FROM CLOSED SESSION ADJOURNMENT CERTIFICATION I, Lourdes Morales, Chief Deputy City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of April 17, 2019. /11 Or co f les 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, 2n' 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 ore-maillmorales@baidwinpark.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 ll) BALDWIN PARK CITY COUNCIL REGULAR MEETING APRIL 17, 2019 11 PIM COUNCIL CHAMBER 14403 E. Pacific Avenue Baldwin Park, CA 91706 (626) 960-4011 V"ALIEY t),1,� .. a Manuel Lozano - Mayor Monica Garcia - Mayor Pro Tem Alejandra Avila - Council Member Paul C. Hernandez - Council Member Ricardo Pacheco - 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. Any writte • poabtfic rec;„ tt relc'dt ng To �i s agenda ,t(sp°a .i.te <a,)-, tt'�ni a.'�io, oas`t;ulate'tt�3Jgs a Council t..p that indistributed to fl -m City C'L,.ir less f,ae72 hours, pa , to nial r,-, tin,,"?# e ti4)ii A,"fo S.bfi i z.,4;pe€. d°*., n at City Hall in the k.. i:.,y Cie his office %.. a '14403 _, aciFC-venue, 3P,i coC. ?essai€e ss htt,rta 111uai?.2A - T/-,xC,l s"da a , 7:3 a,m.. 6:00 s, nn } CITY COUNCIL REGULAR MEETING — 7:00 PM CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE • Presentation of the Colors by the Baldwin Park Police Department Honor Guard ROLL CALL Council Members: Alejandra Avila, Paul C. Hernandez, Ricardo Pacheco, Mayor Pro Tem Monica Garcia and Mayor Manuel Lozano REPORT FROM CLOSED SESSION ANNOUNCEMENTS This is to announce, as required by Government Code section 54952.3, members of the City Council are also members of the Board of Directors of the Housing Authority and Finance Authority, which are concurrently convening with the City Council this evening and each Council Member is paid an additional stipend of $30 for attending the Housing Authority meeting and $50 for attending the Finance Authority meeting. PROCLAMATIONS COMMENDATIONS & PRESENTATIONS • Proclamation for National Public Safety Telecommunications Week • Introduction of new Baldwin Park Police Employees: Officer Alex Alarcon Officer Oscar Alcon Officer Summer Anaya Dispatcher Erin Sanchez • Certificate Recognition in honor of Waste Management Baldwin Park Scholarship and Internship Winners PUBLIC COMMUNICATIONS Three (3) minute speaking time limitg 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 INTERPRETS No se podra tome accion en algGn asunto a menos que sea incluido en la agenda, o a menos que exista alguna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciones o preguntas hechas porpersonas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideracion en juntas proximas. (Codigo de Gobierno §54954.21 City Council Agenda Page 2 CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. 1. Warrants and Demands Staff recommends that Council ratify the attached Warrants and Demands Register. 2. Treasurer's Report — February 2019 Staff recommends that Council receive and file the Treasurer's Report for February 2019. 3. Meeting Minutes Staff recommends that Council receive and file the following Meeting Minutes: A. Meeting Minutes of the Special City Council Meeting held on April 3, 2019. 4. Consider and Approve License Agreement with the Boys & Girls Club of West San Gabriel Valley Staff recommends that City Council: 1. Consider and approve the License Agreement with the Boys & Girls Club of West San Gabriel Valley. 5. Adoption of Resolution No. 2019-011, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Landscape and Lighting Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments, and Setting a Time and Place for a Public Hearing" Staff recommends that the City Council adopt Resolution No. 2019-011 entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Landscape and Lighting Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments and Setting a Time and Place for a Public Hearing." 6. Adoption of Resolution No. 2019-012, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Citywide Park Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments, and Setting a Time and Place for a Public Hearing" Staff recommends that the City Council adopt Resolution No. 2019-012 entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Citywide Park Maintenance Assessment District for FY 2019- 2020, Declaring the Intent to Levy and Collect Assessments and Setting a Time and Place for a Public Hearing." City Council Agenda Page 3 7. Adoption of Resolution No. 2019-013, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Fiscal Year 2019-20 Project List to be Funded by Senate Bill 1 (SB1) — the Road Repair and Accountability Act" It is recommended that the City Council: 1. Adopt Resolution No. 2019-013, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Fiscal Year 2019-20 Project List to be Funded by Senate Bill 1 (SB1) — the Road Repair and Accountability Act"; and 2. Authorize the Finance Director to appropriate projected FY 2019-20 SB1 funds in the amount of $1,269,643; and 3. Authorize the Director of Public Works to file necessary documentation to satisfy SB 1 funding requirements and act as the signature authority. 8. Consideration of Approval for an Appropriation of Additional Funds for Extraordinary and Unscheduled Maintenance Cost Related to the Citywide Traffic Signal and Street Lighting Maintenance Program It is recommended that the City Council: 1. Authorize the Director of Finance to appropriate $55,000 from unappropriated funds from Fund #251 — Landscape Lighting Maintenance District (LLMD) for FY 2018/2019 to cover the increase in extraordinary and unscheduled maintenance costs; and 2. Authorize the Director of Finance to make necessary budget adjustments to allow payments as approved for FY 2018/2019. 9. Adoption of Resolution No. 2019-014, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Amended Fee Schedule for Solid Waste Collection and Recycling Services, to Reflect Consumer Price Index (CPI) Increases for Fiscal Year 2019-2020" It is recommended that the City Council adopt Resolution No. 2019-014 "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Amended Fee Schedule for Solid Waste Collection and Recycling Services to reflect Consumer Price Index (CPI) Increases for Fiscal Year 2019-2020." 10.Approval of Design -Build Contract with Merge Conceptual Design, LLC. for Professional Services for an Art in Public Space Project, including Artwork, Design, Fabrication and Installation of Signs, Structures and Digital Displays Staff recommends City Council to authorize the Mayor to execute a Design -Build Agreement with Merge Conceptual Design, LLC. to complete the design, fabrication and installation the Public Art Project, including signs and digital marquee display in the amount not -to -exceed $616,360. 11. Housing Element Progress Report 2018 It is recommended that the City Council receive and file the report City Council Agenda Page 4 12. Second Reading of Ordinance No. 1438 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 Rukli, Inc. for the Distribution of Cannabis at the Real Property Located at 4150 Puente Avenue (APN: 8437-014-014 and 8437- 022-008) within the City of Baldwin Park" Staff recommends that the City Council waive reading and adopt Ordinance No. 1438, 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 RUKLI, INC. FOR THE DISTRIBUTION OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4150 PUENTE AVENUE (APN: 8437-014-014 and 8437-022-008) WITHIN THE CITY OF BALDWIN PARK". 13.Adoption of Resolution No. 2019-016, Joining California Choice Energy Authority and Other Related Actions Staff recommends that the City Council: 1. Adopt Resolution No. 2019-016 Entitled: " RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK CALIFORNIA AUTHORIZING THE CITY'S ENTRY INTO A JOINT EXERCISE OF POWERS AGREEMENT REGARDING THE CALIFORNIA CHOICE ENERGY AUTHORITY AND DIRECTING THE TAKING OF FURTHER ACTIONS RELATED THERETO"; and 2. Authorize and direct staff to enter into an Administrative Services Agreement with California Choice Energy Authority; and 3. Authorize and direct staff to enter into a Security Agreement with River City Bank; and 4. Authorize and direct staff to enter into an Intercreditor and Collateral Agency Agreement with River City Bank and Secured Creditors; and 5. Authorize and direct staff to enter into a Deposit Account Control Agreement with River City Bank; and 6. Approve Baldwin Park CCA program name "Baldwin Park Resident Owned Utility District (B -PROUD)". CITY COUNCIL ACTING AS SUCCESSOR AGENCY OF THE DISSOLVED COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda. SA -1 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Treasurer's Report — February 2019 Staff recommends that Council receive and file the Treasurer's Report. City Council Agenda Page 5 REPORTS OF OFFICERS 14.Approve and Adopt Resolution No. 2019-015 Entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Appointing Representatives and Alternates as Official Representatives of the City"; and Review and Appoint Members to the Established Committees, as Appropriate Staff recommends City Council rescind Resolution 2019-001 and complete the review and appointment of members to the positions of delegates and alternates of the established committees and organizations presented in Resolution No. 2019-015, entitled: "A Resolution of the City Council of the City of Baldwin Park, California, Appointing Representatives and Alternates as Official Representatives of the City". CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS & COMMUNICATIONS Requests by Councilmember Ricardo Pacheco for City Council discussion and direction to staff on the following: Discussion and direction to staff to contract with a developer to facilitate the acquisition of vacant properties located at 3715 and 3726 Puente Avenue to build affordable housing. The surrounding residents adjacent to these buildings are experiencing an increase in transient crimes by individuals being harbored in these buildings. Many residents have complained about criminal activity, drugs users, threats of violence, and trespassing of private properties. • Discussion and direction to the City Attorney to conduct research and advise whether rent control may be regulated by a municipal agency, such as the City of Baldwin Park under the State of California's current Statutes. At our last City Council Meeting, constituents requested the City Council consider rent control options as many Baldwin Park renters have expressed concerns with rent increases of 25% or more during City Council Meetings and other city functions and seek relief from their City Council representatives. Discussion and direction to staff to bring forth an ordinance for City Council's consideration granting the City authority to demolish or obtain a conservatorship to improve vacant buildings sanctioned as a nuisance. Due to neglectful property owners who own vacant buildings, and in response to multiple complaints, the City Council should seek legal remedies to ensure buildings become compliant in accordance with our Municipal Code. ADJOURNMENT City Council Agenda Page 6 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 that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 11th day of April, 2 19. 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@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 7 ITEM NO. TO: Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance tp� DATE: April 17, 2019 SUBJECT: City of Baldwin Park's Warrants and Demands SUMMARY Attached is the Warrants and Demands Register for the City of Baldwin Park to be ratified by the City Council. RECOMMENDATION Staff recommends that the City Council ratify the attached Warrants and Demands Register. FISCAL IMPACT The payroll for the last period was $522,802.69 and the attached General Warrants Register was $657,023.52 for a total amount of $1,179,826.21. BACKGROUND The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous City Council meeting and the following is a summary of the payment released: 1. The last payroll of the City of Baldwin Park consists of check numbers 200120 to 200158. Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 12986 to 13250 for the period of March 10, 2019 through March 23, 2019, inclusive; these are presented and hereby ratified in the amount of $522,802.69. 2. General Warrants, with the bank drafts in the amount of $158,536.93 and checks from 223611 to 223808 in the amount of $498,486.59 for the period March 25, 2019 to April 8, 2019, inclusive; in the total amount of $657,023.52 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 r M M O O o 0 0 0 a m w cq m w M V1 O a a W V1 (Ti O cm V1 V1 m 0 1� N n rl u1 M M O m 0 O 10 w 1� N P N n N H }� ? N N N ul Vf ul 0 O M tD ^ 01 M N n m N N N sT N O1 .-I 1l N 00 O 01 a O V S O N o N 1� Vf M N Ol N u1 V1 L = N C N O M n N N m m� N w g M ti N V R I� ti n 1a/1 O V M m m co Ln N tmo N O 0\ Q N N Ol I� � m N oo w M C / �Z o Cc m O 01 p (n goo Op O op pppp pppp pppp 88 88 O p Op SS O 0 0 0 0 0 O O 88 O O p O . 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ITEM NO. 02 TO: Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance f*-✓ DATE: April 17, 2019 SUBJECT: Treasurer's Report — February 2019 SUMMARY Attached is the Treasurer's Report for the month of February 2019. The Treasurer's Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City's Investment Policy and the California Government Code. RECOMMENDATION Staff recommends that Council receive and file the Treasurer's Report for February 2019. FISCAL IMPACT None BACKGROUND City of Baldwin Park Investment Policy requires the Treasurer's Report be submitted to the Mayor and City Council on a monthly basis. LEGAL REVIEW Not Applicable ATTACHMENT 1. Exhibit "A", Treasurer's Report Exhibit "A" Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT 2!28!2019 I INVESTMENT INTEREST PURCHASE MATURITY PAR CURRENT BOOK MARKET I DESCRIPTION RATE DATE DATE VALUE PRINCIPAL VALUE VALUE r State of Cagfornis Local Agency kweshnent Fund (LAIF) Cay4neluding General Fund i all other Special Revenue Funds 2.39% Varies Varies f 29,763,464.64 S 29,763,464.64 $ 29,753,464.64 $ 29,753,464.64 Housing Authority 2.39% Varies Varies 13,670.22 13,570.22 13,570.22 13,570.22 CaiifficMe of Deoosa 29,787,024.88 29,767,024.86 29,767,024.96 28,767 024.86 Citibank National Association (Mutual Securities) 2.66% 1/25/2019 1/25/2021 250,000.00 260,000.00 260,000.00 249,945.00 American Express Cenurlon (Mutual Sec -rides), 1.60% 4/1212017 4112/2019 260,000.00 250,000.00 260,000.00 249,812.50 Ever6ankJacksokwi0e (Mutual Semaiaes) 1.65% 416/2017 4116/2019 260,000.00 260,000.00 260,000.00 249,777.50 Gokknan Sachs Sk USA NY (Mutual Securities) 2.25% 1124/2018 1/24/2020 260,000.00 260,000.00 260,000.00 249,497.50 Sable Mae Sk SLT Lake City UT (Mutual Securities) 2.26% 1/24/2018 1/24/2020 260,000.00 250,000.00 250,000.00 249,487.50 Safra National Batik New Yak (Cantata) 2.00% 4/16/2018 411612019 260,000.00 250,000.00 260,000.00 249,917.50 Morgan Stanley Bank N A Utah (CanteNa) 2.64% 419/2018 4120/2020 260,000.00 260,000.00 250,000.00 260,297.50 Barclays Bank Dal (Canella) 3.05% 1219/2018 12/21/2020 260,000.00 260,000.00 260,000.00 261,695.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,330.00 US Treasury BM (UBS) 2.07% 3/29!2018 3/28/2019 1,000,000.00 1.000,000.00 11000,000.00 988,046.00 Fiscal Agent Funds (TnmUDebt Service Fund) varies Varies Varus 7,590,97265 7,580,972.66 7,690,972.56 7,890,972.456 Fiscal Agent Funds - Successor Agency (TnpbDeW Service Func Varies varies Varies 153,323.47 163,323A7 163,323A7 153,327.47 7,744,286.02 7,744,296.02 7,744,296.02 7,744,298.02 $ 40.511,320.88 $ 40.511.32086) 40 511,520 i8 S 40609,886.89 Totallnvestments $ 40,511,32028 Cash with Bank of the West Cit' Checking $186,824.35 Money Market Pia 132,746.01 City Miscellaneous Cash 269,121.31 Successw Agency 336,618.12 Housing Authority 266,235.27 Financing Aulhorlly 0.00 Investment Brolkeraus 81.13 Total Cash with Bank orthe West 3,360,139.26 Total Cash and investments $ 43.871,46014 Schedule of Cash and Investments includes city-wide assets as included in the Comprehensive Annual Financial ReporL • There was no investment maturity/purchase transactions made for the month of February 2019 and several deposltslwitlhdrewahh were made through the Local Agency Investment Fund. • Fiscal Agent Funds amounting to $7,590,972 are from the Measure M Bond offering. In compliance with the California Govemment Code Section 53646 et seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all Investments are in compliance to the City's Statement of Investment Policy. Approved by: i R se Tam Director of Finance ITEM NO. STAFF REPORT TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk DATE: April 17, 2019 SUBJECT: Meeting Minutes SUMMARY The City Council held a Special City Council Meeting on April 3, 2019. RECOMMENDATION Staff recommends that the City Council approve meeting minutes for the following City Council Meetings: • Special Meeting of April 3, 2019 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 Meeting Minutes of April 3, 2019 Attachment 1 Special Minutes 04/03/19 MINUTES BALDWIN PARK CITY COUNCIL STUDY SESSION AND SPECIAL MEETING April 3, 2019, 5:30 P.M. 3rd Floor Conference Room 307 -14403 E. Pacific Avenue, Baldwin Park, 91706 CALL TO ORDER The meeting was called to order at 5:35 p.m. by Mayor Lozano. ROLL CALL PRESENT: Council Member Alejandra Avila Council Member Paul C. Hernandez Council Member Ricardo Pacheco Mayor Pro Tem Monica Garcia Mayor Manuel Lozano PUBLIC COMMUNICATIONS Mayor Lozano opened Public Communications at 5:35 p.m. Bertha Seveda requested clarification be provided on the type of proposed cannabis business location proposed for a particular location and inquired whether all cannabis businesses followed similar guidelines. Mayor Lozano closed Public Communications closed at 5:35 p.m. OPEN SESSION 1. Art in Public Places and Digital Displays Update By Director of Public Works Sam Gutierrez Sam Gutierrez Director of Public Works provided background information on the progression of the program for Art in Public Spaces. Chief Executive Officer Shannon Yauchzee announced this presentation contained a brief overview of the intent of the project and additional steps such as community input and direction by the City Council would be presented at a later time. John Beshay Engineering Manager presented the City Council with visual examples of possible signage and art to be placed in no more than three locations and provided estimate timelines for each step of the process as well as cost estimates. Council Member Pacheco asked which funding source would be utilized for the completion of the project, the amount of signs to be placed around the city and whether Special Meeting of 04/03/19 Page 1 of 5 staff had assessed how many signs could be completed based on the amount of funding allocated. Staff responded the project would be funded by the public art account to be used for one but no more than three signs and the amount of signs would depend on the decorative style selected by the governing body. Mayor Pro Tem Garcia requested additional options be provided to the City Council for consideration and inquired if additional funding could be allocated. Additionally, Mayor Pro Tem Garcia asked whether the consultant's rates were competitive Staff stated they received three quotes and the consulting firm was selected based on cost estimate and performance evaluations and funding from billboards could be used. Council Member Avila asked if the warranty could be extended and if other options were available. Mr. Gutierrez stated he would examine the warranty further and additional options would be brought back for City Council's consideration. Mayor Pro Tem Garcia requested a presentation be provided by the art consultant at the next meeting to express their wishes as to how they engage the community and have a better understanding of the project. The City Council recessed into closed session at 6:12 p.m. RECESS TO CLOSED SESSION 2. 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 I Case No. BC548602 Case Name: Salcedo v. City of Baldwin Park Case No. BC676398 Case Name: City of Baldwin Park v. City of Irwindale Case No. BS163400 Case Name: Jason Adams v. City of Baldwin Park Case No. 2:19-cv-00297 Case Name: Maria Delgado v. City of Baldwin Park Case No. BC635496 Workers Comp Case Name: Leaonard Avila WC Case No. ADJ10942219 Workers Comp Case Name: James Kolback WC Case No. ADJ10642596 Workers Comp Case Name: Lili Hadsell WC Case No. ADJ10091998 Special Meeting of 04/03/19 Page 2 of 5 3. Public Employee Appointment (GC §54957): Position: Chief of Police 4. 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 .r B. Property: 14551 Joanbridge Street (CAN 17-02) Negotiating Parties: City of Baldwin Park and Lih Ping Henry Liou, Baldwin Park TALE Corp. 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 Ming Hong Huang, 428 Cloverleaf, LLC. 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) Special Meeting of 04/03/19 Page 3 of 5 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. 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. P. Property: 1529 Virginia Avenue (CAN 18-01) Negotiating Parties: City of Baldwin Park and Erik Intermill, Esource LLC 5. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: Workers Compensation Case: Timothy Cardiel Workers Comp Case No. 16-128534 Potential Case(s): Two (2) ADJOURNMENT There being no further business, motion was made by Mayor Lozano, seconded by Council Member Avila, to adjourn the meeting at 7:10 p.m. Special Meeting of 04/03/19 Page 4 of 5 REPORT ON CLOSED SESSION* Mayor Lozano stated no reportable action was taken. Manuel Lozano, Mayor ATTEST: Jean M. Ayala, City Clerk APPROVED: Special Meeting of 04/03/19 Page 5 of 5 STAFF REPORT L A o TO: HUB OF FROM: SAN',G y�o \�ALiEY� �y �$RgrFD JN �ry� lestC4 ITEM NO. Honorable Mayor and Members of the City Council C Manuel Carrillo Jr. Director of Recreation & Community SbrOces April 17, 2019 111Y SUBJECT: Consider and Approve License Agreement with the Boys & Girls Club of West San Gabriel Valley SUMMARY The purpose of this staff report is for the City Council to consider and approve a License Agreement with the Boys & Girls Club of West San Gabriel Valley (BGCWSGV). RECOMMENDATION Staff recommends that City Council: 1.) Consider and approve the License Agreement with the Boys & Girls Club of West San Gabriel Valley. FISCAL IMPACT This three (3) year License Agreement will generate $73,212 annually and $221,382 over the term of the agreement. The revenue has been recorded under the general fund. BACKGROUND The City entered its first License Agreement with the East Valley Boys & Girls Club(EVBGC) of Baldwin Park at their December 6, 2006 City Council Meeting, since the execution of the agreement, City has generated $7,39,384 in revenue. Currently, the BGCWSGV provides daycare services to families in Baldwin Park and surrounding communities. On or about July 1, 2016 the EVBGC became a subsidiary of the BGCWSGV. The Day Care program provides care for toddlers through school aged children from 6:00am to 6:00pm. The Day Care program occupies approximately 15,020 square feet of classroom/office use and outdoor enclosed patio/play area exclusively for BGCWSGV's private use. In addition, the EVBGC of Baldwin Park administers a Los Angeles County Family Preservation Program, which provides a wide array of services to families in the court system. The term of the existing License Agreement is expiring on June 30, 2019; staff has met with the BGCWSG to negotiate new terms of the License Agreement including the fee schedule for the upcoming contract period. The new proposed License Agreement is attached is for a three (3) year period to end on June 30, 2021. The lease agreement includes all utilities and also specifies the responsibility of the BGCWSGV to conduct all repairs for appliances exclusively assigned to BGCWSGV. The City will no longer stock paper goods for the BGCWSG at the start of each day. In addition, the City will provide a bus shelter ad space to promote their daycare services, the BGCWSGV will design and print as per city's specifications. The Department is aware of the demographics in the local area and feels comfortable with the rates and decision to sign a lease with the BGCWSGV. The BGCWSGV currently uses 15,020 sq. ft. of the Esther Snyder Community Center which includes; classrooms, office space and playground/patio. The Department will be charging the BGCWSGV for the use of the exclusive premises at a monthly fee of $6,101. The term of the agreement includes a total of 6% increase; 3% commencing year one (1) and year three (3). If approved, at the end of the new agreement the total revenue generated will be $960,766 over the fifteen (15) year license agreement. ALTERNATIVES The alternative is to not approve the proposed License Agreement with the Boys & Girls Club of West San Gabriel Valley and provide direction to staff. LEGAL REVIEW The City Attorney has reviewed the agreement and has approved it as to form. ATTACHMENT 1.) Attachment A - License Agreement Attachment "A" License' Agreement Attachment A LICENSE AGREEMENT THIS LICENSE AGREEMENT is made and entered into by and between the CITY OF BALDWIN PARK, a municipal corporation (hereinafter "City"), and BOYS & GIRLS CLUB OF BALDWIN PARK (dba THE EAST VALLEY BOYS & GIRLS CLUBI, a California non-profit corporation (hereinafter "Club"). (City and Club are each a "Party" and are collectively the "Parties.") RECITALS A. City is the owner of a facility known as the Esther Snyder Community Center (the "Community Center"). B. Club has operated and conducted business under its current name since 1990, on July 1, 2016 became a subsidiary of the Boys & Girls Club of West San Gabriel Valley (hereinafter "West Club") but it is expected that on or about July 1, 2019, Club will be dissolved In the event of a merger between Club and West Club, West Club will succeed to the rights and obligations of Club under this License Agreement. C. Club has operated a day care program at the Community Center since 1990. Club presently uses the facilities described on Exhibit A attached hereto and incorporated herein by this reference (the "Day Care Facilities"). D. City has generally allowed use of the Day Care Facilities without charge; to permit Club to provide day care that is as affordable as possible. Costs of operating and maintaining the Community Center have, however, increased over the years, and City can no longer fully subsidize this service. NOW, THEREFORE, the Parties hereto do hereby agree as follows: 1. LICENSE GRANTED. A. City hereby grants to Club an exclusive license, subject to the terms and conditions of this License Agreement, to utilize the Day Care Facilities for the purposes of providing a program for the non-medical care of children from age 2 through 12. The Day Care Facilities may be utilized from 6:00 a.m. until 6:00 p.m., Monday through Friday, throughout the year, with the exception of the days the Community Center is closed (presently New Year's Day, Presidents' Day, Memorial Day, Labor Day, Veterans' Day, Thanksgiving Day, and Christmas Day). B. In addition, City agrees Club may utilize the laundry room and kitchen facilities at the Community Center, including but not limited to the freezers, 2. 3. refrigerators, and ice machine contained therein, to the extent and under such terms and schedule as established exclusively by City staff so as to reasonably effectuate appropriate joint use of such areas. City Staff's decision shall be final. Such areas together with the Day Care Facilities are hereinafter referred to as the "Premises." COMPENSATION. Effective July 1, 2019, compensation for use of the Premises shall be paid monthly. The rate of compensation shall be six thousand one hundred one dollars ($6,101.00) per month, and remain as set forth in the chart below: Effective Date July 1, 2019 July 1, 2020 July 1, 2021 Monthly Rate $6,101.00 $6,101.00 $6,284.00 All payments shall be made on or before the tenth (10th) day of the month for which the compensation is due. MAINTENANCE AND REPAIR. A. Except as set forth herein, City shall solely be responsible for ordinary care and maintenance of the Premises, such as for minor repairs to the Day Care Facilities or any fixtures or equipment located therein, including, but not limited to plumbing repairs such as required to fix a leaky faucet or unplug a toilet. B. City shall be solely responsible for all Capital Improvements to the Premises. For purposes of this License Agreement, Capital Improvements shall include major repairs, such as to the air conditioning system, main sewer line, or electrical panel at the Community Center, as well as any remodeling of or addition to any building at the Community Center. C. The City shall power wash the entrance to the Club at least two (2) times a year. 4. UTILITIES. City shall be solely responsible for all costs of utilities other than telephone service provided to the Day Care Facilities. Club shall, at its sole cost and expense, provide a phone system in the Day Care Facilities, which shall be separate from the phone system provided by City to the Community Center. 5. LIABILITY. Club agrees to defend, indemnify and hold City and its officers, agents and employees free and harmless from any and all loss, claim, demand or judgment for injury to persons or property arising out of or connected in any way with Club's use and occupancy of the Premises; provided, however, that Club shall not be required to defend, indemnify or hold any such persons (including the City) free and harmless from any loss, claim, demand or judgment resulting from the gross negligence, willful misconduct or reckless conduct of City or any of its officers, agents and employees. Club shall promptly give notice to City of any claim or suit instituted or filed against it for any alleged act involving liability of either Club or City arising out of Club's operations under this Agreement. 6. INSURANCE. Club shall, during the term of this Agreement, provide to the City, and keep in effect liability insurance in amounts and with such companies as is customary and standard for facilities of the size of the Premises and operated with a similar purpose, which liability insurance shall be subject to the reasonable approval of City. City and its officers, agents, and employees shall be an additional insured on each insurance policy provided by Club. Each of the policies of insurance shall bear an endorsement providing for a thirty (30) day notice of cancellation to be given to the City prior to the effective date of such cancellation. Prior to the effective date of this License Agreement, Club shall file an endorsement of insurance with City reflecting the existence of the insurance required by this section. Should Club fail to provide to the City or maintain at all times during the term of this License Agreement the insurance required by this section and such failure continues for fifteen (15) business days after written notice from City to Club, City at its sole discretion, may: (a) terminate this Agreement and remove all property of Club from the Community Center, and store the same at Club's expense; or (b) obtain, at Club's expense, the required insurance coverage. Failure of Club to maintain insurance as required by this section shall not be deemed to waive or otherwise affect Club's indemnification obligations as set forth in Section 5, above. 8. 9. 10. SIGNS AND ADVERTISEMENTS. Club shall display no signs or advertising matter of any kind on the Premises unless and until approved in writing by the City. City shall include annually one (1) daycare ad space (of 1/8" page — 2 3/" W x 3 7/8" H) on the Baldwin Park NOW publication at no cost to the Club. City shall provide one (1) daycare ad space only (48"W x 72"H) on the City's Bus Shelter Advertisement at no cost to the Club. Club must design (city must approve design) and print as per specifications. City to include a web link to the Club's website. FIXTURES AND EQUIPMENT. Club shall maintain and repair at its sole cost and expense all City owned appliances exclusively assigned to the Club. Club shall provide, install, and maintain at its sole cost and expense all equipment necessary for the operation of a day care center. Any and all such equipment, including furniture, trade fixtures, and appliances, shall be approved by the City before installation, but shall remain the property of Club and may be removed by Club at the termination of this License Agreement, provided, however, that, if such removal occasions any damage to the Premises, the cost of repair shall be borne by Club. CONTROL AND REPAIR OF COMMUNITY CENTER. Except as set forth herein, City shall have full and retain absolute control of the Community Center and all appurtenances and Premises thereto during the term of this License Agreement and shall have the right to make changes and alterations thereto as City may determine in its sole discretion; provided that Club shall be entitled to a day -for -day rent abatement for each day that any such repairs, changes or alterations by City materially interfere with Club's use of the Community Center or any appurtenance and Premises thereto. CONDUCT OF OPERATIONS. Club shall at all times conduct manner, and in accordance with applicable to such business as State of California, and Federal applicable requirement in the BE exists or may exist in the future. 11. PERMITS AND LICENSES. its operations in a professional and orderly all the laws, ordinances, rules and regulations set forth by the City, County of Los Angeles, Government, including, but not limited to, any ildwin Park Municipal Code, as the same now Club shall obtain and maintain in full force and effect any and all permits or licenses that may be required by law in connection with the operation of a Day Care Facilities. 12. 13. 14 TAXES. This License Agreement does not create any interest in real property. However, if it is determined that the License granted herein creates any taxable interest for any purpose, then Club, as additional rental, shall promptly pay all taxes which may be lawfully levied personal, including, but not limited to, the operation hereunder. RIGHT OF ENTRY. upon such property interest, real or any possessory interest tax involved in City and its authorized representatives, agents, and employees shall have the right to enter upon the Day Care Facilities at any and all reasonable times and upon reasonable prior notice to Club during the term of this License Agreement for the purpose of inspection to determine whether or not Club is complying with the terms and conditions hereof, or for any other purpose incidental to the rights of City; provided that any such entry shall not materially interfere with the conduct of Club's business at the Premises USE. Club shall not assign any rights relating to this License Agreement or allow the Premises or any part thereof to be used or occupied by any other person for any purpose without the prior written consent of the City, nor shall Club assign this License Agreement nor convey any of the rights or privileges granted herein, without the prior written consent of City;- provided, however, that, for the purposes of this License Agreement, any merger between Club and West Club and/or any acquisition by West Club of Club (any such transaction hereinafter referred to as a "Permitted Transfer" shall not be deemed an assignment under this section or otherwise violate this License Agreement and, in the event of a merger between Club and West Club, West Club shall be permitted to succeed to all of the rights and obligations of Club under this License Agreement. If an assignment, (other than a Permitted Transfer, which, for purposes of clarity, is not an assignment under this License Agreement,) by process of Court or otherwise, is attempted, or in the event of the insolvency or bankruptcy, either voluntary or involuntary, of Club, City may, at its sole option, terminate and cancel this License Agreement, in which event all rights of Club hereunder shall immediately cease and be terminated. 15. SURRENDER OF POSSESSION. Club agrees to yield and deliver to City possession of the Day Care Facilities at the termination of this License Agreement in good condition and in accordance with the express obligations hereunder, except for reasonable wear and tear, casualty and condemnation, subject to the provisions of this License Agreement with respect to removal by Club of certain property upon such termination. Upon termination, Club further agrees to execute and deliver to City a good and sufficient document of relinquishment, if and when requested to do so by City. 16. WAIVER OF CLAIMS. Club hereby expressly waives any and all claims for compensation for any and all loss or damage sustained by reason of any defect, deficiency, or impairment of the Premises or any part thereof, including but not limited to any defect, deficiency, or impairment of the water or sewer system, heating or air conditioning system, or electrical apparatus or wires furnished for the Premises, existing on the date hereof, and expressly releases and discharges City from any and all demands, claims, actions, and causes of action from any of the aforesaid; provided, however, that notwithstanding the foregoing, Club does not waive any claims related to any defect, deficiency or impairment of all or any part of the Premises if such defect, deficiency or impairment is caused by the gross negligence, willful misconduct or reckless conduct of the City. Club further understands and agrees that in the event of damage to the Community Center or any portion thereof, including but not limited to damage to the Premises or any portion thereof, the determination as to whether to repair or replace such damaged area shall be within the sole discretion of City; provided, however that if City shall determine to repair or replace such damage area, City .shall take all commercially reasonable steps to cause the damage to be repaired or replaced (as applicable) as soon as reasonably practicable; and provided, further, that if such damage shall render the Premises uninhabitable, untenantable, destroyed -or unusable for the purposes for which this license Agreement has been granted and either (a) City determines not to undertake to repair or replace such damage or (b) Club and City do not agree to such damage can be repaired within six (6) months from the date of such damage, this License Agreement may be terminated by either Party. Notwithstanding the forgoing, in the event of damage to the Premises, or any portion thereof, Club shall be entitled to an abatement of the rent proportionate to the portion of the Premises so damage until such time as such damage has been repaired or replaced. 17. NOTICES. All notices required to be given under the terms of this Agreement shall be given by United States mail, postage prepaid, addressed as follows (or at such other address for a party as specified in a notice given in accordance with this Section 17): City: City of Baldwin Park Attn: Director of Recreation and Community Services 14403 East Pacific Avenue Baldwin Park, CA 91706 Club: Boys & Girls Club of Baldwin Park Attn: Executive Director 4100 Baldwin Park Boulevard Baldwin Park, CA 91706 18. TERM. The term of this License Agreement shall be for a period of three (3) years, commencing July 1, 2019, unless sooner terminated as provided herein. Notwithstanding the foregoing, either Party may terminate this License Agreement, with or without cause, by giving the other Party not less than thirty (30) days written notice. 19. ENTIRE AGREEMENT AND EFFECTIVE DATE. Date: ATTEST: City Clerk Date: This License, including exhibits, executed by the Parties contains the entire agreement of the parties regarding the subject matter hereof and supersedes any and all prior negotiations and agreements, including that certain License Agreement by and between City and Club, effective July 1, 2016, and which was scheduled to terminate as of June 30, 2019 (the "Existing Agreement"). By this reference the Existing Agreement is hereby terminated as of the effective date of this License Agreement, which is July 1, 2019. Executed at Baldwin Park, California, on the days hereafter set forth. CITY OF BALDWIN PARK By: Manuel Lozano, Mayor BOYS & GIRLS CLUB OF BALDWIN PARK By: Executive Director EXHIBIT A EAST VALLEY BOYS AND GIRLS CLUB AND BOYS & GIRLS CLUB OF WEST SAN GABRIEL VALLEY 6 Classrooms (24ft. x 30ft. = 720 sq. ft. each room) 720 sq. ft. x 6 rooms = 4,320 sq. ft. 1 Day Care Director's office (12ft. x 14ft. = 168 sq. ft.) 1 Staff workroom (11 ft. x 16ft. = 176 sq. ft.) 1 Staff lounge (8ft. x 12ft. = 96 sq. ft.) 2 Enclosed playground/patio areas (9,325 sq. ft.) 1 Kitchen shared w/ city (12ft. x 15ft., 10ft. x 13ft., 10ft. x 12ft. = 430 sq. ft.) 1 Laundry room shared w/ city (1 Oft. x 12ft. = 120 sq. ft.) 1 Executive Director's office (1 Oft. x 11 ft. = 121 sq. ft.) 1 Administrative office (8ft. x 11 ft. = 88 sq. ft.) 1 Family Preservation administrative office (8ft. x 11ft. = 88 sq. ft.) 1 Hallway/administrative office (8ft. x 11 ft. = 88 sq. ft.) 4 Reserved parking spaces for Club vehicle parking In addition the Club may request the use of other City facilities as listed below through the facility request process as long as the request does not incur additional cost to the City. If additional fees are incurred those fees shall be passed on to the Club. Additional facilities available upon availability include: pool, arts & craft room, dance studio, technology center, basketball gym, splash pad and amphitheater. Total 15,020 sq. ft. STAFF REPORT ITEM NO. 5 TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Work DATE: April 17, 2019 SUBJECT: Adoption of Resolution No. 2019-011, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Landscape and Lighting Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments, and Setting a Time and Place for a Public Hearing" SUMMARY This item adopts a resolution approving the Engineer's Report; declares the intention to levy and collect assessments and sets a date and time for a Public Hearing for the Citywide Landscape and Lighting Maintenance Assessment District for FY 2019-2020. The recommended hearing date is June 5, 2019. RECOMMENDATION Staff recommends that the City Council adopt Resolution No. 2019-011 entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Landscape and Lighting Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments and Setting a Time and Place for a Public Hearing." FISCAL IMPACT The following table summarizes the District revenue and expenditure status: FY 2019-20 Estimated Revenue _..._..._ .... _... _......__.....--.... _..... ..... ....... ..... _...... _...__................ _ ......................... _..... Assessment Revenue County Ad Valorem Tax Penalties, Late Taxes, Earnings Total Revenue FY 2019-20 Projected Expenditures Maintenance and Operation Total FY 2019-20 Operating Reserve / Deficit _.. _...__..............__....._.... -_...... ............................................... ....... ...... ..... -..... ..... ...... ...... _...................... Projected Fund Balance June 30, 2020 Beginning Fund Balance (July 1, 201 .._........_............--..._..._.......__............�......._.....__...---...__..._._............... ..... .......................................... FY 19-20 Revenues FY 19-20 Expenditures $914,600 $774,000 $101,500 $1,790,100 _._._.._._._........ ...... .......... :..... ._..... $1,603,600 $1,603,600 $..... 5 $1,790,100 $1,603,6001 BACKGROUND The City has an annual program for the maintenance of landscaping and lighting improvements, as well as open space improvements, including the maintenance and operation of traffic signals, street lights, median landscaping and street trees. It is recommended that the City continue providing this program through special assessments. On March 6, 2019 the City Council approved a resolution which authorized initiating the FY 2019- 2020 Citywide Landscaping and Lighting Maintenance Assessment District (LLMD) and ordered the preparation of the Engineer's Report. The preparation of the Engineer's Reports has been completed. The Engineer's Report details the legal mechanism to re-establish the district, summarizes the costs and expenditures of the District, and explains the methodology of distributing the assessments for obtaining the district revenues. ALTERNATIVES None. LEGAL REVIEW Due to the recurring and unchanging nature of this item additional legal review is not required. ATTACHMENTS 1. Resolution No. 2019-011 2. LLMD — Engineer's Report Attachment 1 Resolution No. 209-011 Attachment 1 RESOLUTION NO. 2019-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE ENGINEER'S REPORT FOR THE CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT FOR FY 2019-2020, DECLARING THE INTENT TO LEVY AND COLLECT ASSESSMENTS, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING WHEREAS, pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, being known as the "Landscaping and Lighting Act of 1972" and Article XIIID of the State Constitution an Engineer's Report has been prepared consisting of plans and specifications, an estimate of the cost, a diagram of the Maintenance District and an assessment relating to what is now designated as: CITY OF BALDWIN PARK CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT (Hereinafter referred to as "District"); and WHEREAS, this City Council has now carefully examined and reviewed the Report as presented and is satisfied with each and all of the items and documents as set forth therein and is satisfied that the assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed as set forth in said Report. WHEREAS, the provisions of said Division 15, Part 2, require a written report in accordance with Chapter 3 (commencing with Section 22620). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES RESOLVE AS FOLLOWS: SECTION 1. That the above recitals are all true, correct, and are hereby incorporated herein. SECTION 2. That the Report as presented, consisting of the following: a. Plans and Specifications b. Estimate of the Cost C. Diagram of the Maintenance District d. Assessment of the Estimated Cost Resolution No. 2019-011 Approval of Engineer's Report Landscaping and Lighting Maintenance District Page 2 is hereby approved and is ordered to be filed in the office of the City Engineer as a permanent record and to remain open for public inspection. SECTION 3. That it is the intention of the City Council, consistent with the public interest and convenience, to levy and collect annual assessments for FY 2019-2020 for the construction and continued maintenance of certain public facilities within the Citywide Landscape and Lighting Maintenance Assessment District, all to serve and benefit said District as said area is shown and delineated on a map shown in the Engineer's Report on file in the office of the City Engineer, open for public inspection, and herein so referenced and made a part hereof. SECTION 4. That a public hearing shall be held before this City Council, in the Council Chambers, 14403 E. Pacific Avenue, Baldwin Park, on Wednesday, June 5, 2019, at the hour of 7:00 p.m. pursuant to the "Landscaping and Lighting Act of 1972" and Article XIIID of the State Constitution, for the purposes of hearing protests, comments, or objections in reference to the annual levy of assessments and the extent of the works and maintenance of improvements, and this Council's determination whether the public interest, convenience, and necessity require the improvements. SECTION 5. That the City Clerk is hereby authorized and directed to publish a copy of this Resolution in the San Gabriel Valley Examiner, a newspaper of general circulation in said City; said publication shall not be less than ten (10) days before the date of said Public Hearing. SECTION 6. For any and all information relating to the procedures, protest procedure, documentation and/or information of a procedural or technical nature, the public's attention is directed to the office listed below as designated: Sam Gutierrez, Director of Public Works City of Baldwin Park (626) 813-5255 SECTION 7. That the City Clerk shall certify to the passage and adoption of the Resolution and the Minutes of the meeting shall so reflect the presentation of the Engineer's Report. Resolution No. 2019-011 Approval of Engineer's Report Landscaping and Lighting Maintenance District Page 2 PASSED, APPROVED, AND ADOPTED this 17th day of April 2019 MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF BALDWIN PARK ) I, Jean M. Ayala, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2019-011 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN M. AYALA CITY CLERK Attachment 2 LLMD — Engineer's Report CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT ASSESSMENT ENGINEER'S REPORT PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972, PART 2 DIVISION 15 OF THE STREETS AND HIGHWAYS CODE, ARTICLE XIII.D. OF THE CALIFORNIA CONSTITUTION AND THE PROPOSITION 218 OMNIBUS IMPLEMENTATION ACT (GOVERNMENT CODE SECTION 53750 ET SEQ) Fiscal Year 2019-20 Prepared for: �pLD Niza U �AB,R I E L hyo ✓ALLEY t°` TSD JANV P� CITY OF BALDWIN PARK DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION Prepared by, Community Economic Solutions April 10, 2019 City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page i CITY OF BALDWIN PARK ASSESSMENT ENGINEER'S REPORT CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FISCAL YEAR 2019-20 The Streets and Highways Code, Part 2, Division 15, Article 4, commencing with Section 22565, directs the preparation of the annual report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements described herein. SECTION DESCRIPTION PAGE Report........................................................................................................... 1 Part A - Plans and Specifications for the Improvements ................................ 3 Part B - An Estimate of the Costs of the Improvements ................................. 4 Part C - A Diagram for the Assessment District ............................................. 5 Part D - An Assessment of the Estimated Costs of the Improvements........... 6 Part E - Assessment Roll............................................................................... 8 engreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 1 FISCAL YEAR 2019-20 CITY OF BALDWIN PARK ASSESSMENT ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Whereas the Council of the City of Baldwin Park, California, did, pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code of the State of California, adopt the Resolution of Initiation ordering the preparation and filing of the Assessment Engineer's Report in accordance with Chapter 1, Article 4 commencing with Section 22565. Section 22567 directs that the report shall refer to the City of Baldwin Park Citywide Landscaping and Lighting Maintenance District (the "Assessment District") by its distinctive designation, specify the fiscal year to which the report applies, and, with respect to that year, shall contain all of the following: Part A Plans and specifications for the improvements. Part B An estimate of the costs of the improvements. Part C A diagram for the assessment district. Part D An assessment of the estimated costs of the improvements. A preliminary report is then filed with the City Clerk in accordance with Section 22623 for submission to the legislative body. The legislative body may approve the report as filed, or it may modify the report and approve it as modified. Now, therefore, the following Assessment Engineer's Report is hereby submitted consisting of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS FOR THE IMPROVEMENTS This part contains the plans and specifications which are required to show and describe the existing and proposed improvements in accordance with Section 22568. The plans and specifications need not be detailed, but shall be sufficient if they show or describe the general nature, location, and extent of the improvements. If the assessment district is divided into zones, the plans and specifications shall indicate the class and type of improvements to be provided for each such zone. The Plans and specifications for the improvements listed in Part A are on file with the City Engineer. Such plans and specifications are incorporated herein by reference. PART B: AN ESTIMATE OF THE COSTS OF THE IMPROVEMENTS This part contains an estimate of the costs for maintenance of the improvements within the District for Fiscal Year 2019-20 pursuant to section 22569, including incidental costs and expenses in connection therewith. This estimate is on file with the City Engineer. The estimate of the costs of the improvements for the fiscal year shall contain estimates for all of the following: (a) The total costs for improvements to be made that year, being the total costs of constructing or installing all proposed improvements and of maintaining and servicing all existing and proposed improvements, including all incidental expenses. (b) The amount of any surplus or deficit in the improvement fund to be carried over from a previous fiscal year. engreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 2 (c) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (d) The amount, if any, of the annual installment for the fiscal year where the legislative body has ordered an assessment for the estimated cost of any improvements to be levied and collected in annual installments. (e) The net amount to be assessed upon assessable lands within the assessment district, being the total improvement costs, as referred to in subdivision (a), increased or decreased, as the case may be, by any of the amounts referred to in subdivision (b), (c), or (d). PART C: A DIAGRAM FOR THE ASSESSMENT DISTRICT This part incorporates, by reference, the "Assessment Diagram", which is a diagram of the Assessment District showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District in accordance with Sections 22570 and 22571. The diagram for an assessment district shall show (a) the exterior boundaries of the assessment district, (b) the boundaries of any zones within the district, and (c) the lines and dimensions of each lot or parcel of land within the district. Each lot or parcel shall be identified by a distinctive number or letter. The lines and dimensions of each lot or parcel of land shown on the diagram shall conform to those shown on the county assessor's maps for the fiscal year to which the report applies. The Diagram has been prepared and is on file with the City Engineer. The Assessor's maps and records are incorporated by reference herein and made part of this Report. PART D: ASSESSMENT OF THE ESTIMATED COSTS OF THE IMPROVEMENTS This part contains an assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District in accordance with Section 22572. The assessment shall refer to the fiscal year to which it applies and shall do all of the following: (a) State the net amount, determined in accordance with Section 22569, to be assessed upon assessable lands within the assessment district, which shall include an amount sufficient to pay the principal and interest due during the fiscal year from each parcel on any bonds or notes issued pursuant to Section 22662.5. (b) Describe each assessable lot or parcel of land within the district. (c) Assess the net amount upon all assessable lots or parcels of land within the district by apportioning that amount among the several lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the improvements. According to Section 22573, the net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. PART E: PROPERTY OWNER LIST & ASSESSMENT ROLL This part contains a list of the County of Los Angeles Assessor's parcel numbers, and the net amount to be assessed upon benefited lands within the Assessment District. engreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 3 PART A PLANS AND SPECIFICATIONS FOR THE IMPROVEMENTS The facilities, which have been constructed within the City of Baldwin Park, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF BALDWIN PARK CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FISCAL YEAR 2019-20 The proposed improvements include the construction, operation, servicing and maintenance of landscaping, traffic signals, street lighting and appurtenant facilities in public streets and public rights-of-way within the Assessment District; including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Landscapina and Appurtenant Facilities Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk and curb and gutter maintenance adjacent to street trees, and appurtenant facilities, in public street and public rights-of-way, including parkways, medians and dedicated easements within the boundary of said Assessment District. Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide safety lighting and traffic signals in public streets and public rights-of-way and easements within the boundaries of said Assessment District. Power for the street lights and traffic signals shall be furnished by the Southern California Edison Company or its successors and shall be adequate for the intended purpose. Rates for power shall be those authorized by the Public Utilities Commission, State of California. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file in the office of the City Engineer and are incorporated herein by reference. engreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 4 PART B AN ESTIMATE OF THE COSTS OF THE IMPROVEMENTS The estimated cost of the construction, operation, servicing and maintenance of the improvements for Fiscal Year 2019-20, as described in Part A, are summarized herein and described below. All costs include administration and utilities where applicable. CITY OF BALDWIN PARK CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT FY 2019-20 Budget Estimated Beginning Fund Balance 7/1/2019 $674,975 FY 2019-20 Estimated Revenue Assessment Revenue $914,600 County Ad Valorem Tax $774,000 Penalties, Late Taxes, Earnings $101,500 Total Revenue $1,790,100 FY 2019-20 Projected Expenditures Street Lighting $552,100 Landscaping $785,100 Traffic Signals $266,400 Total Expenditures $1,603,600 FY 2019-20 Operating Reserve / Deficit $186,500 Projected Fund Balance 6/30/2020 Beginning Fund Balance $674,975 FY 2019-20 Estimated Revenue $1,790,100 FY 2019-20 Projected Expenditures $1,603,600 Projected Fund Balance 6/30/2020 $861,475 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. engreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 5 PART C A DIAGRAM FOR THE ASSESSMENT DISTRICT The diagram of the Assessment District showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is required in accordance with Sections 22570 and 22571. Each lot or parcel shall be identified by a distinctive number or letter. The lines and dimensions of each lot or parcel of land shown on the diagram shall conform to those shown on the county assessor's maps for the fiscal year to which the report applies. The Diagram has been prepared and is on file with the City Engineer. The boundaries of the District are coterminous with the boundaries of the City of Baldwin Park. A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of Baldwin Park, and is hereby made a part hereof by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles. The Assessor's maps and records are incorporated by reference herein and made part of this report. engreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 6 PART D ASSESSMENT OF THE ESTIMATED COSTS OF THE IMPROVEMENTS GENERAL Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include construction, operation, maintenance and servicing of street lights, traffic signals, parks and landscaping. The 1972 Act requires that maintenance assessments be levied according to benefit rather than according to assessed value. Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements." "The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000)) [of the California Streets and Highways Code]." In addition, Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Because assessments are levied on the basis of benefit, they are not considered to be a tax governed by Article XIIIA of the California Constitution. The 1972 Act permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvement" (Sec. 22547). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." ASSESSMENT METHODOLOGY The landscaping, lighting and traffic signals are for the benefit and enjoyment of all properties within the District and all parcels benefit from the maintenance of the improvements. The assessment of cost upon each parcel was apportioned in accordance with the estimated benefit received. Traffic signal maintenance costs are assessed throughout the district on a per parcel basis. The criteria for the assessment spread of lighting and landscaping is as follows: 1. Rectangular lots - street frontage 2. Irregular lots - width of lot at setback line - average of front and rear lot line lengths or - street frontage, whichever is most representative of benefit 3. Flag lots - one-half of total footage to each of the two lots 4. Corner lots - the narrowest frontage engreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 7 Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights -of -ways, public greenbelts and public parkways, and that portion of public property that is not developed and used for business purposes similar to private commercial, industrial and institutional activities. BENEFIT ZONES The District is divided into four benefit zones. Zone 1 includes all residential parcels and Zone 2 includes all commercial and industrial parcels that are assessed for street lighting and traffic signal maintenance. Zone 3 includes all commercial, industrial and residential parcels that are assessed for landscaping maintenance. Zone 4 includes the West Ramona Residential Redevelopment Project (Tract Nos. 39090, 39635, 40746, 42828 and 41956) and is assessed for landscaping, lighting and traffic signal maintenance. The proposed assessment for Fiscal Year 2019-20 is derived by apportioning a part of the total cost shown in Part B among the assessable parcels in proportion to the estimated benefits. A portion of the Assessment District Revenues is derived from Countywide Property Taxes or the Ad Valorem Tax. The City receives this amount as part of its tax apportionment and has designated a percentage to be used for lighting and landscape purposes. Description Frontage and Parcel Counts Proposed Assessment Assessment Revenues* Zone 1 & 2 (Street Lighting) 2. Commercial / Industrial 91,933 L.F. $0.5543 / L.F. $ 50,959 1. Residential 653,126 L.F. $0.2809 / L.F. $ 183,463 Zone 3 (Landscaping) All Parcels (excluding Zone 4) 745,059 L.F. $0.7513 / L.F. $ 559,763 Zone 4 (LightsA andscaping) Tract # 39090, 39635, 40746, 42828, & 41956 160 Lots $36.01 / Lot $ 5,762 Parcel #1164 14 Lots $51.44 /Lot $ 720 Zone 2(Traffic Signals) Commercial / Industrial (including Parcel #1164 878 Lots $11.87 /Parcel $ 10,422 Zone 1 & 4 (Traffic Signals) All Parcels 13,823 Lots $7.49 /Lot $ 103,534 Grand Total $ 914,622 The assessor's parcel number and the amount of assessment upon each lot or parcel are shown on the assessment roll. Upon confirmation by the City Council this data will be submitted to the Los Angeles County Auditor -Controller for the inclusion on the 2019-20 tax roll. engreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Landscaping and Lighting Maintenance District Page 8 PART E PROPERTY OWNER LIST AND ASSESSMENT ROLL The assessment set forth for each parcel is shown on the Assessment Roll for the District, submitted separately, as "Assessment Roll for City of Baldwin Park, Landscaping and Lighting Maintenance District, Fiscal Year 2019-20", which exhibit is incorporated by reference herein and is on file in the office of the City Clerk. The Assessment Roll lists all parcels within the boundaries of the District as shown on the Assessment Diagram, Part C herein, and on the last equalized roll of the Assessor of the County of Los Angeles, which is by reference made part of this report. Assessments are not levied upon public streets, utility easements, right-of-way, and common areas. A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Baldwin Park. engreportlMprelim Community Economic Solutions STAFF REPORT ITEM NO. TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works ;% DATE: April 17, 2019 SUBJECT: Adoption of Resolution No. 2019-012, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Citywide Park Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments, and Setting a Time and Place for a Public Hearing" SUMMARY This item adopts a resolution approving the Engineer's Report; declares the intention to levy and collect assessments and sets a date and time for a Public Hearing for the Citywide Park Maintenance Assessment District for FY 2019-2020. The recommended hearing date is June 5, 2019. RECOMMENDATION Staff recommends that the City Council adopt Resolution No. 2019-012 entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Approving the Engineer's Report for the Citywide Park Maintenance Assessment District for FY 2019-2020, Declaring the Intent to Levy and Collect Assessments and Setting a Time and Place for a Public Hearing." FISCAL IMPACT The following table summarizes the District revenue and expenditure status: FY 2019-2020 Beginning Fund Balance (July 1 2049) Estimated Revenues .._ ... _....... ....... .... __........ _....... _.................. ..._-._.............. _.......... __............................... _._...._... _._.._....._._._.._..........................._._.._.._.__:._.._._.._._..... _............................. ......................... Proposed PMD Revenue _......... _..................................... ......._._._._.._._.._._._._...._._................:_........................ $774,700 ........... ._._........... _._._..... ._........................ .... _... _...... ....... ._............... _.._..__.... _...... ___._..... _...... _................... _...._............ ................. _._.._._._.............. _... ...................... .._._....._.... .............. ............. City Contribution - General Fund $44,180 _... _......_....... .._............ _.._...... ...... _......... _..._......... ...................... __..................... _.......... _._.._._._.............. _... _......................_............_...... _._............ _........................................._..... ..... _. Total Estimated Funds Available .... ._._.._._.b_._...._.._._._._._ ... ._.._................_... $844,480 Projected Expenditures .... _... _...... __......_.................. .._........ ... ........ _............. _........._............................................... _...._._._._.._.._._.._...._..... _.._.......................... _._.... ........ ...._... .... ............... _..............................................._._.4_._...._........... ...._................. .... ....... _._..:- Park Maintenance and Operation $818,880 ... ._..............._..... ...... __.______.. _..._...... ....... ._........................ ....... .................. _.... _........... _...... _............... _.................... _._.._._... _._.._._...._... _._........................._......... ........... ._..... _.................................. _... _... ......................... Total Projected Expenditures ._._._............_._.. $818,880 Projected Ending Fund Balance (June 30 2020) $20, y The total cost of the District for FY 2019-2020 is estimated to be $818,880. The City anticipates revenue of $774,700 from the FY 2019-2020 Citywide Park Maintenance Assessment District. A General Fund transfer of $44,180 will be included in the recommended FY 2019-2020 budget to cover the District shortfall. BACKGROUND The purpose of the Citywide Park Maintenance Assessment District (PMD) is to serve as mechanism for the financing of operations and maintenance associated with City Parks. It is recommended that the City continue these parks maintenance programs and fund them through special assessments provided by the PMD. In 1996, City of Baldwin Park property owners approved the formation of a Park Maintenance Assessment District to financially support these programs, and the PMD's formation was established in conformance with Proposition 218. On March 6, 2019 the City Council approved a resolution which authorized initiating the FY 2019-2020 PMD and ordered the preparation of the Engineer's Report. ALTERNATIVES None. LEGAL REVIEW Due to the recurring and unchanging nature of this item additional legal review is not required. ATTACHMENTS 1. Resolution No. 2019-012 2. PMD — Engineer's Report Attachment 1 Resolution No. 2019-012 Attachment 1 RESOLUTION NO. 2019-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE ENGINEER'S REPORT FOR THE CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT FOR FY 2019-2020, DECLARING THE INTENT TO LEVY AND COLLECT ASSESSMENTS, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING WHEREAS, pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, being known as the "Landscaping and Lighting Act of 1972" and Article XIIID of the State Constitution an Engineer's Report has been prepared consisting of plans and specifications, an estimate of the cost, a diagram of the Maintenance District and an assessment relating to what is now designated as: CITY OF BALDWIN PARK CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT (Hereinafter referred to as "District"); and WHEREAS, this City Council has now carefully examined and reviewed the Report as presented and is satisfied with each and all of the items and documents as set forth therein and is satisfied that the assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed as set forth in said Report. WHEREAS, the provisions of said Division 15, Part 2, require a written report in accordance with Chapter 3 (commencing with Section 22620). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES RESOLVE AS FOLLOWS: SECTION 1. That the above recitals are all true, correct, and are hereby incorporated herein. SECTION 2. That the Report as presented, consisting of the following: a. Plans and Specifications b. Estimate of the Cost C. Diagram of the Maintenance District d. Assessment of the Estimated Cost Resolution No. 2019-012 Approval of Engineer's Report Park Maintenance District Page 2 is hereby approved and is ordered to be filed in the office of the City Engineer as a permanent record and to remain open for public inspection. SECTION 3. That it is the intention of the City Council, consistent with the public interest and convenience, to levy and collect annual assessments for FY 2019-2020 for the construction and continued maintenance of certain public facilities within the Citywide Park Maintenance Assessment District, all to serve and benefit said District as said area is shown and delineated on a map shown in the Engineer's Report on file in the office of the City Engineer, open for public inspection, and herein so referenced and made a part hereof. SECTION 4. That a public hearing shall be held before this City Council, in the Council Chambers, 14403 E. Pacific Avenue, Baldwin Park, on Wednesday, June 5, 2019, at the hour of 7:00 p.m. pursuant to the "Landscaping and Lighting Act of 1972" and Article XIIID of the State Constitution, for the purposes of hearing protests, comments, or objections in reference to the annual levy of assessments and the extent of the works and maintenance of improvements, and this Council's determination whether the public interest, convenience, and necessity require the improvements. SECTION 5. That the City Clerk is hereby authorized and directed to publish a copy of this Resolution in the San Gabriel Valley Examiner, a newspaper of general circulation in said City; said publication shall not be less than ten (10) days before the date of said Public Hearing. SECTION 6. For any and all information relating to the procedures, protest procedure, documentation and/or information of a procedural or technical nature, the public's attention is directed to the office listed below as designated: Sam Gutierrez, Director of Public Works City of Baldwin Park (626) 813-5255 SECTION 7. That the City Clerk shall certify to the passage and adoption of the Resolution and the Minutes of the meeting shall so reflect the presentation of the Engineer's Report. Resolution No. 2019-012 Approval of Engineer's Report Park Maintenance District Page 2 PASSED, APPROVED, AND ADOPTED this 17th day of April 2019 MANUELLOZANO MAYOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF BALDWIN PARK ) I, Jean M. Ayala, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2019-012 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN M. AYALA CITY CLERK Attachment 2 PMD — Engineer's Report CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT ENGINEER'S REPORT PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972, PART 2 DIVISION 15 OF THE STREETS AND HIGHWAYS CODE, ARTICLE XIII.D. OF THE CALIFORNIA CONSTITUTION AND THE PROPOSITION 218 OMNIBUS IMPLEMENTATION ACT (GOVERNMENT CODE SECTION 53750 ET SEQ) Fiscal Year 2019-20 Prepared for: A J197� A -A IEL .o L L E Y moo► JAWJ P CITY OF BALDWIN PARK DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION Prepared by. Community Economic Solutions April 10, 2019 City of Baldwin Park Citywide Park Maintenance Assessment District Page i CITY OF BALDWIN PARK ASSESSMENT ENGINEER'S REPORT CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT FISCAL YEAR 2019-20 The Streets and Highways Code, Part 2, Division 15, Article 4, commencing with Section 22565, directs the preparation of the annual report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements described herein. SECTION DESCRIPTION PAGE ExecutiveSummary ....................................................................................... 1 Report............................................................................................................ 2 Part A - Plans and Specifications for the Improvements ................................. 4 Part B - An Estimate of the Costs of the Improvements .................................. 5 Part C - A Diagram for the Assessment District .............................................. 6 Part D - An Assessment of the Estimated Costs of the Improvements............ 7 Part E — Property Owner List and Assessment Roll ...................................... 15 parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 1 EXECUTIVE SUMMARY The purpose of the Citywide Park Maintenance Assessment District is to generate revenues for the financing of the installation, maintenance and servicing of parks and recreational improvements, and certain facilities directly in support of such improvements and programs. Based on the provisions of the Landscape and Lighting Act of 1972, Article XIII.D. of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act, Baldwin Park property owners approved the formation of a Citywide Park Maintenance Assessment District and established assessments thereof beginning in Fiscal Year 1997-98. In June 2002, the City was unable to obtain the necessary property owner approval to increase the assessment rates to cover the increased costs of park maintenance. Consequently, the General Fund has been subsidizing the differences between the actual cost and the revenue from the assessment. This report is pursuant to and in compliance with Articles XIII.0 and XIII.D of the California Constitution and the Landscaping and Lighting Act of 1972. Based on the findingsin this report, the assessment roll is generated wherein each Assessor's Parcel Number in the City of Baldwin Park is identified along with the amount assessed for the Park Maintenance Assessment District for Fiscal Year 2019-20. The assessment roll is included as part of this report, but is not bound herein. For Fiscal Year 2019-20, the Citywide Park Maintenance Assessment District is proposed to generate revenue of approximately $774,700, while the cost of park maintenance is budgeted at $818,880. The difference of $44,180 will be covered by a contribution from the City's General Fund of $44,180 less any beginning fund balance in the Park Maintenance Assessment District Fund. The City has made an effort to reduce this program's impact on the General Fund, and over the last several years the City has steadily reduced park maintenance costs. The General Fund contribution is for general benefits and is not assessed. The proposed Fiscal Year 2019-20 assessments are 2.708% higher than last year based on the CPI adjustment allowed by the Citywide Park Maintenance Assessment District during its formation. DISTRICT FINANCIAL SUMMARY FY 2019-20 Beginning Fund Balance (July 1, 2019) Estimated Resources Assessment District Revenue + Delinquencies FY 2019-20 Operating Reserve Available FY 2018-19 City Contribution - General Fund, FY 2019-20 Total Estimated Funds Available, FY 2019-20 Projected Liabilities Park Maintenance and Operation OH & Transfers In/Out Total Projected Liabilities, FY 2019-20 Fund Balance $4,176 $774,700 $21,424 $44,180 $844,480 $818,880 $0 $818,880 776 parkreportl=prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 2 FISCAL YEAR 2019-20 CITY OF BALDWIN PARK ASSESSMENT ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Whereas the Council of the City of Baldwin Park, California, did, pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code of the State of California, adopt the Resolution of Initiation ordering the preparation and filing of the Assessment Engineer's Report in accordance with Chapter 1, Article 4 commencing with Section 22565. Section 22567 directs that the report shall refer to the City of Baldwin Park Citywide Park Maintenance Assessment District (the "Assessment District") by its distinctive designation, specify the fiscal year to which the report applies, and, with respect to that year, shall contain all of the following: Part A - Plans and specifications for the improvements. Part B - An estimate of the costs of the improvements. Part C - A diagram for the assessment district. Part D - An assessment of the estimated costs of the improvements. A preliminary report is then filed with the City Clerk in accordance with Section 22623 for submission to the legislative body. The legislative body may approve the report as filed, or it may modify the report and approve it as modified. Now, therefore, the following Assessment Engineer's Report is hereby submitted consisting of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS FOR THE IMPROVEMENTS This part contains the plans and specifications which are required to show and describe the existing and proposed improvements in accordance with Section 22568. The plans and specifications need not be detailed, but shall be sufficient if they show or describe the general nature, location, and extent of the improvements. If the assessment district is divided into zones, the plans and specifications shall indicate the class and type of improvements to be provided for each such zone. The Plans and specifications for the improvements listed in Part A are on file with the City Engineer. Such plans and specifications are incorporated herein by reference. PART B: AN ESTIMATE OF THE COSTS OF THE IMPROVEMENTS This part contains an estimate of the costs for maintenance of the improvements within the District for Fiscal Year 2019-20 pursuant to section 22569, including incidental costs and expenses in connection therewith. This estimate is on file with the City Engineer. The estimate of the costs of the improvements for the fiscal year shall contain estimates for all of the following: (a) The total costs for improvements to be made that year, being the total costs of constructing or installing all proposed improvements and of maintaining and servicing all existing and proposed improvements, including all incidental expenses. (b) The amount of any surplus or deficit in the improvement fund to be carried over from a previous fiscal year. parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 3 (c) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (d) The amount, if any, of the annual installment for the fiscal year where the legislative body has ordered an assessment for the estimated cost of any improvements to be levied and collected in annual installments. (e) The net amount to be assessed upon assessable lands within the assessment district, being the total improvement costs, as referred to in subdivision (a), increased or decreased, as the case may be, by any of the amounts referred to in subdivision (b), (c), or (d). PART C: A DIAGRAM FOR THE ASSESSMENT DISTRICT This part incorporates, by reference, the "Assessment Diagram", which is a diagram of the Assessment District showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District in accordance with Sections 22570 and 22571. The diagram for an assessment district shall show (a) the exterior boundaries of the assessment district, (b) the boundaries of any zones within the district, and (c) the lines and dimensions of each lot or parcel of land within the district. Each lot or parcel shall be identified by a distinctive number or letter. The lines and dimensions of each lot or parcel of land shown on the diagram shall conform to those shown on the county assessor's maps for the fiscal year to which the report applies. The Diagram has been prepared and is on file with the City Engineer. The Assessor's maps and records are incorporated by reference herein and made part of this Report. PART D: ASSESSMENT OF THE ESTIMATED COSTS OF THE IMPROVEMENTS This part contains an assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District in accordance with Section 22572. The assessment shall refer to the fiscal year to which it applies and shall do all of the following: (a) State the net amount, determined in accordance with Section 22569, to be assessed upon assessable lands within the assessment district, which shall include an amount sufficient to pay the principal and interest due during the fiscal year from each parcel on any bonds or notes issued pursuant to Section 22662.5. (b) Describe each assessable lot or parcel of land within the district. (c) Assess the net amount upon all assessable lots or parcels of land within the district by apportioning that amount among the several lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the improvements. According to Section 22573, the net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. PART E: PROPERTY OWNER LIST & ASSESSMENT ROLL This part contains a list of the County of Los Angeles Assessor's parcel numbers, and the net amount to be assessed upon benefited lands within the Assessment District. parkreportl=prefim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 4 PART A PLANS AND SPECIFICATIONS FOR THE IMPROVEMENTS The facilities, which have been constructed within the City of Baldwin Park, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF BALDWIN PARK CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT FISCAL YEAR 2019-20 The items that may be funded through the District are defined in the Landscaping and Lighting Act of 1972 (the Act) as Improvements. The Act defines Improvements to include the installation, maintenance and servicing of several types of landscaping and park and recreational improvements and facilities as shown below. However, the District can only assess for the special benefit that can be shown to be conferred from these improvements to the properties in the District. Installation ■ The installation or planting of landscaping. ■ The installation or construction of statuary, fountains and other ornamental structures and facilities. ■ The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. ■ The installation of park or recreational improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage; lights, playground equipment, play courts and public restrooms. ■ The acquisition of land for park, recreational or open -space purposes. ■ The acquisition of any existing improvement otherwise authorized. Maintenance Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including: ■ Repair, removal or replacement of all or any part of any improvement. ■ Providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease or injury. ■ The removal of trimmings, rubbish, debris and other solid waste. ■ The cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing Servicing means the furnishing of electric current, or energy, or other illuminating agent and water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any improvements. Plans and specifications of the improvements within the District are on file in the office of the City Engineer and are incorporated herein by reference. Maps showing the location of parks within the District are on file in the office of the City Clerk and incorporated herein by reference. parkreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 5 PART B AN ESTIMATE OF THE COSTS OF THE IMPROVEMENTS The estimated cost of the construction, operation, servicing and maintenance of the improvements for Fiscal Year 2019-20, as described in Part A, are summarized herein and described below. All costs include administration and utilities where applicable. CITY OF BALDWIN PARK CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT FY 2019-20 Budget FY 2019-20 Beginning Fund Balance (July 1, 2019) $4,176 Estimated Revenues Assessment Revenue $774,700 General Fund Contribution $44,180 Operating Reserve Available $21,424 Total Revenue $840,304 Total Estimated Funds Available, FY 2019-20 $844,480 FY 2019-20 Projected Expenditures Park Maintenance and Operation $818,880 Total Projected Expenditures, FY 2019-20 $818,880 FY 2019-20 Operating Reserve / Deficit $25,600 Projected Ending Fund Balance (June 30, 2020) Beginning Fund Balance $4,176 Revenues $840,304 Expenditures $818,880 Operating Reserve $25,600 Projected Ending Fund Balance (June 30, 2020) $29,776 The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 6 PART C A DIAGRAM FOR THE ASSESSMENT DISTRICT The diagram of the Assessment District showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is required in accordance with Sections 22570 and 22571. Each lot or parcel shall be identified by a distinctive number or letter. The lines and dimensions of each lot or parcel of land shown on the diagram shall conform to those shown on the county assessor's maps for the fiscal year to which the report applies. The City of Baldwin Citywide Park Maintenance Assessment District includes all parcels of land within the City's corporate boundaries. Reference is made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of all parcels within the District. A map showing the exterior boundaries of the District is on file in the City Clerk's Office and incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles. The Assessor's maps and records are incorporated by reference herein and made part of this report. parkreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 7 PART D ASSESSMENT OF THE ESTIMATED COSTS OF THE IMPROVEMENTS GENERAL Section 22573 of the Landscaping and Lighting Act of 1972, being Part 2, of Division 15 the State California Streets and Highways Code, states that, "the net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." As the assessments are levied on the basis of benefit, they are not a tax, and therefore, are not governed by Article XIIIA of the California Constitution. As a result of the passage of Proposition 218 by voters on November 5, 1996, Articles XIIIC and XIIID have been added to the California Constitution. The new procedural and approval process outlined in these Articles applies to new assessment districts and increased assessments. In addition, properties owned by 'public agencies, such as a city, county, state or the federal government, must now be assessed by law unless it can be demonstrated that they receive no special benefit. Specifically, the assessment methodology for the Citywide Park Maintenance Assessment District will have to: ■ Demonstrate special benefit to assessed parcels over and above the benefits conferred on the public at large: "Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit'." ■ Separate the general benefits from the special benefits conferred to parcels: "Only special benefits are assessable, and an agency must separate the general benefits from the special benefits conferred on a parcel. " ■ Determine the special benefit that should be attributed to public agency parcels within the new District boundary: "Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that such publicly owned parcels in fact receive no special benefit." ASSESSMENT METHODOLOGY The District assessment is based on land use such that property owners are assessed in proportion to the special benefits received. The land uses defined below are descriptive of all parcels expected to exist in the City of Baldwin Park in Fiscal Year 2019-20. In the event there is a question regarding the land use designation of any parcel in the District, the City Engineer will be responsible for administratively assigning one of the land uses listed below. parkreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 8 TABLE 1— FY 2019-20 LAND USE DEFINITIONS Land Use Code Land Use Description SFR Single family residential parcels CONDO Condominium or town home parcels MFR Multiple family residential parcels (2 dwellings or more) MH Mobile homes or Mobile Home Parks NONRES Commercial and industrial parcels INSTITUTION Institutional — Parcels owned by non-profit organizations VACANT Parcels without a building or similar structure - designated for each land use GOVT Parcels owned by a public agency EXE Parcels exempt from the assessment, because they do not benefit from park maintenance (sliver, open space, common area, railroad, or utility easement parcels) SPECIAL BENEFIT ANALYSIS Articles XIIIC and XIIID of the California Constitution require that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. The Articles provide that only special benefits are assessable. The general benefits must be separated from the special benefits conferred on a parcel, a special benefit being a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the district. The general enhancement of property value does not constitute a special benefit. The Open Space Element within the General Plan for the City of Baldwin Park notes that the City is almost completely built out, and open space is limited to existing parks, school grounds, utility rights-of-way, and water channel areas. Within the City, over 530 acres of these properties are designated as open space. Baldwin Park offers five City parks and seventeen school playgrounds for recreation. In 1996, Morgan Park underwent a 2.5 acre expansion, where a new Community Center and Senior Center were built. In 2005, Barnes Park, located in the southwest quadrant of the City, was completely renovated and a 3,300 square foot recreation center was constructed. In 2008, the 15,270 square foot Arts and Recreation facility adjacent to City Hall was completely renovated, and the Senior Center underwent a 3,500 square foot expansion to create additional meeting space, restrooms and reception area. In 2009, new playground equipment was installed in Morgan Park and in 2010 that same play area was upgraded with recreation water features and public art amenities. parkreport,szoprefim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 9 Morgan Park offers the most activities of any recreation area in the City, including boxing, horseshoes, basketball and volleyball. Morgan Park is centrally located; with the other City parks located south and west near the City's periphery. The area north of Los Angeles Street contains six elementary school sites, but no parks. About 60 percent of Baldwin Park's City park area is located south of Ramona Boulevard. Baldwin Park's recreation facilities and parks are vital to the community, especially for the high- density residential developments, which do not provide adequate play areas for their residents. Upon full build -out, it is expected that the City will have a ratio of 3 acres of parks, including school areas, for each 1,000 residents. This ratio is well within the National Recreation and Parks Association recommended standard of 2.5 acres per 1,000 residents. The majority of the City's parkland is under the control of the Baldwin Park Unified School District, with the City controlling 10 percent of the total parkland. Parks and recreational activities are managed by the City of Baldwin Park through a division of the City organization. As such, all parks administration and planning are centralized while recreational activitiesare conducted on a community -wide basis to take advantage of existing park facilities. This approach promotes the parks as a system or network to be used on a Citywide basis, rather than on a service radius basis which may be more common in other jurisdictions. All of the parks and recreational facilities are equally accessible to all the properties in the District. The maintenance of parks and recreational improvements provide a particular and distinct special benefit to parcels within the District. The desirability of parcels within the District is specifically enhanced by the presence of well-maintained parks and recreational facilities which are available for the use and enjoyment of residents, customers, clients, employees and visitors of the assessed parcels. The presence of properly maintained parks readily accessible to properties within the District means that the owners and visitors of the assessed parcels may enjoy the benefits of such improvements while avoiding the expense of privately installing and maintaining similar improvements. Only the parks summarized in this Report are funded through the District. The other open space areas that contribute to the open space element of the City are funded separately. The location of all the parcels in the District was found to be within 1 3/4 miles of at least one park, and 3/4 mile of at least one recreational facility in the District. Although some properties in the District are within 3/4 mile of more than one park, it was determined that residents cannot use the facilities of more than one park at one time, so the assessment rates are established at a uniform level throughout the District. In addition to providing opportunities for recreational use, the proper maintenance of park and recreational facilities improves the aesthetics of parcels within the District. Proper maintenance of landscaping reduces pollution and noise, provides for open space and the planting of otherwise barren areas, and reduces property -related crimes within the District, especially vandalism, through the removal and abatement of graffiti. The U.S. Department of the Interior, National Parks Service, in a publication of June 1984, concluded that, "An investment in parks and recreation helps reduce pollution and noise, makes communities more livable, and increases property value." All of the above benefits contribute to a specific enhancement of the quality of life and property values related to each of the assessable parcels within the District. parkreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 10 In addition, the operation and maintenance of the City's parks confers a particular and distinct special benefit upon assessed parcels within the District, as follows: ■ The proper maintenance of parks and appurtenant facilities specially benefits parcels within the District by improving the physical and visual environment and making the District area more desirable. ■ Parcels within the District are specially benefited when public infrastructure including parks are in place, safe, clean and well maintained. ■ The proper maintenance of parks by the District provides increased District -wide attractiveness to prospective buyers. • The desirability of parcels within the District is specifically enhanced by the presence of well- maintained parks which are available for the use and enjoyment of the property owners and the visitors of the assessed parcels. ■ Having properly maintained parks readily accessible to properties within the District means that the owners and visitors of the assessed parcels may enjoy the benefits of such improvements available for use while avoiding the expense of privately installing and maintaining similar improvements. ■ The proper maintenance of landscaped parks provides increased attractiveness of the District as a place to live, work and do business. ■ Spraying and treating of landscaping for disease and weed control reduces the likelihood of insect or weed infestation spreading to the landscaping located on properties within the District. GENERAL BENEFIT ANALYSIS In addition to the special benefits received by the parcels in the District, there are general benefits conferred on the public at large by the maintenance, operation and servicing of park and recreational facilities. Census data and socio-economic characteristics for the City of Baldwin Park would generally indicate a higher than average park usage by local residents. The higher densities and a greater number of persons per household as documented by census data would indicate a higher than average special benefit from the funded park improvements. Additionally, in higher density areas such as the District, the value of the open spaces afforded by parks is at a particular premium. However,parks and recreational facilities are an important part of any thriving community. The general benefit arising from the park and recreational improvements can be measured by examining the usage of the facilities by the public at large. Each park has been examined to determine the average number of registrations received by the Recreation and Community Services Department for individuals or teams from outside of the District boundaries. The percentage of out -of -district registrations to total registrations is used to determine that portion of the park budget related to general versus special benefit. City staff has determined that out -of -District registrations equal approximately 15 percent of all registrations. Thus, 15 percent of the assessment budget will be assigned as general benefit. In addition, the City has elected to contribute an additional amount over and above the 15 percent level in order to maintain assessments at approximately the same amount as in prior years. FORMULA The formula recognizes that properties have different levels of benefit depending upon the typical population associated with the type of land use. The formula considers these differences and fairly distributes the special benefit among all residential parcels and lots within the District. Each of the parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 11 special benefits identified above in "Special Benefit Analysis" are considered to benefit each parcel in proportion to the typical population associated with the parcel's land use as reported by the City of Baldwin Park Planning Division. In order to establish the proportionate share of benefit from any one parcel of land in relation to the total benefit to the District, it is necessary to establish a benchmark to relate that one parcel to all others. This benchmark is called the Equivalent Dwelling Unit. The District uses a single family residence as the benchmark Equivalent Dwelling Unit. All other land uses, as represented on the County Assessor's master property file, will be compared to the benchmark of the Single Family Residence to gain a comparative Equivalent Dwelling Unit ("EDU") based on population data as found in the 1990 Census Data for Baldwin Park, as provided by the City of Baldwin Park's Planning Division. Following is a discussion of EDU values for each type of land use within the Assessment District. The EDU values for condominiums, multi -family and mobile homes are based upon a comparison of the average population per household for single-family residences versus the average household population in condominiums, multi -family and mobile homes. The calculation of each EDU value is shown below: For Single Family Residential: Single family population per household 4.06 Single family population per household 4.06 For Condominium Residential: Condo population per household 3.75 Single family population per household 4.06 For Multi -Family Residential: Multi -family population per household 4.25 Single family population per household 4.06 For Mobile Home Residential: Mobile Home population per household 2.03 Single family population per household 4.06 = 1.00 EDU's/unit = 0.92 EDU's/unit = 1.04 EDU's/unit = 0.50 EDU's/unit The EDU values for commercial, office, business and industrial land uses ("non-residential") are based on a comparison of the typical single family lot acreage versus the actual size of the non- residential use. Special benefit to non-residential parcels results from the use of recreational facilities by employees and customers, which generally increases in number as the parcel size increases. Therefore, the assessment on non-residential property is based on acres, as opposed to residential parcels which are based on dwelling units. Within the District, the typical single-family parcel size is 8,500 square feet. Approximately 20 percent of each acre of residential land, on average, is dedicated for streets and other public uses resulting in a net acreage available for the subdivision of approximately 4.10 lots per acre, which is rounded down to 4 lots per acre. Therefore, using the single family residence as a base, an acre of non-residential property receives the same number of EDU's as an acre of residential property, that is, 4 EDU per acre. Non-residential lots @ 4 lots per acre Single family EDU @ 1.00 per lot = 4.00 EDU's /acre parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 12 Furthermore, non-residential parcels more than half an acre and less than an acre is assigned a minimum of 4 EDU per parcel to reflect the minimum benefit these parcels receive. Non-residential parcels below one-half acre are assigned 50 percent of 4.0 EDU's, or 2.0 EDU's per parcel. The EDU value for the institutional, church, school, college and day care land uses ("institutional") is calculated at one (1) EDU per parcel. This per parcel assessment rather than per acre assessment is in recognition of this land use category's traditionally lower demand for park facilities as indicated by the City's Recreation and Community Services staff. In addition, institutional parcels receive less benefit than other non-residential parcels in the District from the operation, maintenance and servicing of parks in the City for several reasons. Institutional parcels function differently than non- residential parcels in that they: 1) typically operate fewer days in the week, 2) generally have an inconsistent number of people using the facilities daily, and 3) have a less intensive use than the property size alone would indicate because in general, the institutional parcels in the District contain large green areas that function as open space. Therefore, the institutional parcels should be assessed at a lower level than the non-residential parcels, and are assigned 1 EDU per parcel. As a result of the passage of Proposition 218, the assessment methodology for the Park Maintenance Assessment District has to determine the special benefit attributable to public agency parcels within the District boundary. Section 4 of the Proposition states, "Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that such publicly owned parcels in fact receive no special benefit. " In comparison to non-residential and institutional parcels, governmental properties also benefit from the proper maintenance of parks, since such parks attract potential customers and employees as shown below. Certain governmental parcels benefit from the District because the proper maintenance, operation and servicing of parks: ■ reduces property -related crimes against properties within the District, especially vandalism, through the abatement of graffiti; ■ improves the aesthetics of public parcels through the proper maintenance of landscaping and the planting of otherwise barren areas; ■ reduces pollution and noise in surrounding areas throughout the provision of open space; and ■ by improving the physical and visual environment and making the District area a more desirable and attractive place to work and do business. Additionally: ■ Having properly maintained parks readily accessible to the public properties means that the public agencies may enjoy the benefits of such improvements available for use while avoiding the expense of privately installing and maintaining similar improvements; and ■ Spraying and treating of landscaping for disease and weed control reduces the likelihood of insect or weed infestation spreading to the landscaping located on public properties within the District. However, governmental parcels receive less benefit than other non-residential parcels in the District from the operation, maintenance and servicing of parks in the City. For instance, a portion of most public properties are used as park and/or recreation areas. This portion of these properties does not benefit from the District improvements because it provides the same use and function that the funded improvements provide. Additionally, governmental properties generally do not benefit from the resale value of their properties. Consequently, the specific benefit of increased property value that is conferred to other properties in the District is not conferred to governmental properties. parkreport1920prelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 13 Therefore, the governmental parcels are assessed at one-quarter the rate of non-residential uses, but as the size of the parcel increases, the benefit increases, and therefore, the assessment amount increases. The special benefit to undeveloped property in the residential, non-residential and institutional land use categories is based on the assumption that such undeveloped property benefits from the ongoing maintenance of recreational facilities because the facilities will be in good and ready condition in the future when the vacant property is developed. For the purposes of this Engineer's Report, the special benefit to undeveloped property is assigned a value corresponding to 40 percent of the developed property EDU values for the same land use designations. This discounted value recognizes the reduced current value due to the uninhabited nature of the property. Finally, parcels of raw land and homeowner's association common area are assigned an EDU value of zero (0), based on a projection that these parcels are likely never to develop and therefore will receive no benefit from the improvements. Similarly, railroad right-of-way parcels, public utility right- of-way and well site or reservoir site parcels, water rights parcels, and other similar land uses are also assigned an EDU value of 0, because of little or no possibility for residential or non-residential or institutional development and therefore no benefit. The following table sets forth the population per unit as shown in the 1990 City of Baldwin Park census data, the equivalent dwelling units as discussed above, and the resulting assessment amount per unit, parcel or acre. Land Use Description Population Per Unit Equivalent Dwelling Units FY 2019-20 Assessment Single Family Residential 4.06 / unit 1.00"/ unit $37.52 / unit Vacant Single Family Residential ----- 0.401 parcel $15.011 parcel Condominium(per unit 3.75 / unit 0.921 unit $34.521/ unit Multi -Family (per unit 4.25 / unit 1.041 unit $39.021/ unit Mobile Homes r unit 2.03 / unit 0.50!/ unit $18.761.1 unit Non -Residential >_ 1 acre(per acre 4.00 / acre 4.00 / acre $150.08=/ acre Non -Residential >_ .5 acre - < 1 acre(perparcel) 4.00 / parcel 4.00 / parcel $150.08'/ parcel Non -Residential < .5 acre rparcel) 4.00 / parcel 2.00 / parcel $75.041/ parcel Vacant Non -Residential >_ 1 acre(per acre ----- 1.60'/ acre $60.031/ acre Vacant Non -Residential z .5 acre - < 1 acre(perparcel) ----- 1.601/ parcel $60.03M/ parcel Vacant Non -Residential < .5 acre rparcel) ----- 0.80' / parcel $30.02 /parcel Vacant Multi -Family Residential >_ 1 acre(per acre ----- 1.60'/ acre $60.03/ acre Vacant Multi -Family Residential >_ .5 acre - < 1 acre(perparcel) ----- 1.601 parcel $60.031/ parcel Vacant Multi-FamilyResidential <.5 acre (per parcel)----- 0.80 / arcel $30.021/ parcel Instutional r parcel)1.00 ! parcel 1.001 arcel $37.521,/ parcel Vacant Instutional rparcel) ----- 0.40 / parcel $15.01=/parcel Government >_ 1 acre 4.00 / acre 1.001 acre $37.52;/ acre Government >_ .5 acre - < 1 acre 4.00 / arcel 1.001 parcel $37.52=/parcel Government <.5 acre 4.00 / parcel, 0.50!-/ parcel $18.761/ parcel Exemption ----- 0.001 parcel, $0.001/ parcel parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 14 ENGINEERING AND INCIDENTAL EXPENSES All parcels within the District benefit from the ongoing operation of the District. Therefore, all parcels assessed in the District receive a proportional share of the administrative costs for the District based on their assessment for park maintenance. THE MAXIMUM ASSESSMENT AND ANNUAL ADJUSTMENT The Maximum Assessment is the annual assessment shown in the Assessment Roll, on file in the Office of the City Clerk and by this reference incorporated herein. Commencing with Fiscal Year 2006-2007 and for each year thereafter, the assessment for the District is subject to an Annual Adjustment limit. The Annual Adjustment shall not exceed the change in the Consumer Price Index ("CPP'), All Urban Consumers, for the Los Angeles -Anaheim -Riverside Area from March of the current year to March of the previous calendar year. For Fiscal Year 2019-20 the calculation is as follows: March 2018 to March 2019 Consumer Price Index: March 2019: 271.311 March 2018: -264.158 7.153 / 264.158 = 0.02708 * 100 = 2.708% Future annual assessments within this limit may be approved by the City Council without additional property owner ratification. These limits may be exceeded only with a majority property owner approval of either: 1) a supplemental assessment; 2) a revision of or supplement to the maximum assessment and/or adjustment formula, or 3) any other methodology amenable to the property owners within the District boundary. The assessor's parcel number and the amount of assessment upon each lot or parcel are shown on the assessment roll. Upon confirmation by the Council this data will be submitted to the Los Angeles County Auditor -Controller for the inclusion on the 2019-20 tax roll. parkreportlMprelim Community Economic Solutions City of Baldwin Park Citywide Park Maintenance Assessment District Page 15 PART E PROPERTY OWNER LIST AND ASSESSMENT ROLL The assessment set forth for each parcel is shown on the Assessment Roll for the District, submitted separately, as "Assessment Roll for City of Baldwin Park, Citywide Park Maintenance Assessment District, Fiscal Year 2019-20", which is incorporated by reference herein and is on file in the office of the City Clerk. The Assessment Roll lists all parcels within the boundaries of the District as shown on the Assessment Diagram, Part F herein, and on the last equalized roll of the Assessor of the County of Los Angeles, which is by reference made part of this report. A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Baldwin Park. parkreportlMprelim Community Economic Solutions STAFF REPORT ITEM NO. 7 TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works DATE: April 17, 2019 SUBJECT: Adoption of Resolution No. 2019-013, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Fiscal Year 2019-20 Project List to be Funded by Senate Bill 1 (SB1) — the Road Repair and Accountability Act" SUMMARY Approval of Resolution No. 2019-013 will adopt and incorporate a projects improvement list in conformance with Senate Bill 1 (SB 1) - The Roads Repair and Accountability Act of 2017 (RMRA) for FY 2019-20. RECOMMENDATION It is recommended that the City Council: 1) Adopt Resolution No. 2019-013, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Fiscal Year 2019-20 Project List to be Funded by Senate Bill 1 (SB1) — the Road Repair and Accountability Act"; and 2) Authorize the Finance Director to appropriate projected FY 2019-20 SB1 funds in the amount of $1,269,643; and 3) Authorize the Director of Public Works to file necessary documentation to satisfy SB 1 funding requirements and act as the signature authority. FISCAL IMPACT In order to receive an apportionment, the City is required to annually expend from its General Fund in the amount of $289,950 for street, road, and highway purposes per the maintenance of effort (MOE) requirement of the Streets and Highways Code. The following is the projected funds for FY 2019-20: t=uu triu, ice: k :' SB1 — Road Repair and Accountability Act Projected FY 2018-19 Funds $1,269,643 Total Funds $1,269,643 BACKGROUND On April 28, 2017, Governor Jerry Brown signed Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017. SB 1 was created to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets road system. Funding for the program is administered by the California Transportation Committee (CTC) and the State of California Controllers Office (SCO). SB1 emphasizes the importance of accountability and transparency in the delivery of transportation programs. Therefore, to be eligible for funding, cities and counties must annually provide basic project reporting to the CTC for projects anticipated to utilize RMRA funds. On December 6, 2017, the CTC adopted an initial report of cities and counties eligible to receive funds. DISCUSSION Current fund estimates indicate that the City of Baldwin Park will be eligible to receive approximately $1,216,360 in FY 2019-20. To be eligible to receive RMRA funding, the City must prepare and submit a project list annually to the CTC by May 1St of each year. The City must also provide a public record which documents that the proposed projects have been adopted in the operating or capital budget. To ensure that the City of Baldwin Park remains eligible to receive RMRA funds for FY 2019-20, Staff has identified two (2) projects to submit by the May 1, 2019 deadline. The projects for FY 2019-20 funding have been identified as follows: 1. Puente Avenue Street Rehabilitation. Work includes 2 -inch cold -mill of the roadway and placing new asphalt layer. The project also includes upgrade/replacement of accessible ramps, minor curb and gutter repairs, traffic signal loop replacement, and restriping. 2. South Garvey Avenue/Dalewood Street Improvements. This project will consist of reconstruction of portions of the street structural section including sub -surface preparation, subgrade and constructing aggregate base and asphalt concrete (AC) pavement sections. The project also includes construction of sidewalk, upgrade/replacement of accessible ramps and major curb/gutter repairs. ALTERNATIVES 1. The City Council may choose not to approve Resolution No. 2019-013 and thereby relinquishing its allocation of RMRA funding. This action is not recommended as the City may risk losing an estimated $21.5 million over the next 10 years. This funding is needed to bring necessary and critical street and road improvements to the City's road network. 2. Provide Staff with Alternative direction. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Resolution No. 2019-013 2. 2019-20 Project List and Location Map Attachment 1 Resolution No. 2019-013 RESOLUTION NO. 2019-013 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK TO ADOPT THE FISCAL YEAR 2019-20 PROJECT LIST TO BE FUNDED BY SENATE BILL 1 (SBI) — THE ROAD REPAIR AND ACCOUNTABILITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi -modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive and estimated $1,269,643 in RMRA funding in Fiscal Year 2019-20 from SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community's transportation priorities (the project list); and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities' priorities for transportation investment; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in a good condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into an "excellent" condition; and WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and WHEREAS, modernizing the local street and road system provides well -paying construction jobs and boosts local economies; and Resolution No. 2019-013 SB1 — Road Repair and Accountability Act FY 2019-20 Project List Page 2 WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail also reduces construction time which results in less air pollution from heavy equipment and less water pollution from site run-off; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co -benefits statewide. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: The City Council of the City of Baldwin Park, California: 1. The foregoing recitals are true and correct. 2. The City of Baldwin Park is adopting the following list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues: 1. Puente Avenue Street Rehabilitation. Work includes 2 -inch cold -mill of the roadway and placing new asphalt layer. The project also includes upgrade/replacement of accessible ramps, minor curb and gutter repairs, traffic signal loop replacement, and restriping. 2. South Garvey Avenue/Dalewood Street Improvements. This project will consist of reconstruction of portions of the street structural section including sub -surface preparation, subgrade and constructing aggregate base and asphalt concrete (AC) pavement sections. The project also includes construction of sidewalk, upgrade/replacement of accessible ramps and major curb/gutter repairs. Resolution No. 2019-013 S131 — Road Repair and Accountability Act FY 2019-20 Project List Page 3 PASSED, APPROVED, AND ADOPTED this 17th day of April 2019. MANUEL LOZANO MAYOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF BALDWIN PARK ) I, Jean M. Ayala, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2019-013 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN M. AYALA CITY CLERK Attachment 2 2019-20 Project List and Location Map Resolution No. 2019-013 S61 — Road Repair and Accountability Act FY 2019-20 Project List Page 4 S131 — Road Repair and Accountability Act Fiscal Year 2019-20 Project List Isla: Pro Descri tion Puente Avenue Street Rehabilitation. Work includes 2 -inch cold -mill of the roadway and placing new asphalt layer. The project also includes upgrade/replacement of accessible ramps, minor curb and gutter repairs, traffic signal loop replacement, and restriping. 2 South Garvey Avenue/Dalewood Street Improv eilitC. 'This pn* of reconstruction of portions of the street structural section including sub�surFace preparation, subgrade and constructing aggregate base and asphalt concrete (AC)` pavement sections. The project also includes construction of sidewalk, upgrade/replacement of accessible ramps and major curb/gutter repairs. FISCAL YEAR 2019-20 PROJECT LIST FUNDED BY SENATE BILL 1 (SB1) 7_1 I/L.�J1yf BALDWIN PARK BV Q PUENTE AVENUE STREET REHABILITATION: WORK INCLUDES 2 -INCH COLD -MILL OF THE ROADWAY AND PLACING NEW ASPHALT LAYER. THE PROJECT ALSO INCLUDES UPGRADE/REPLACEMENT OF ACCESSIBLE RAMPS, MINOR CURB AND GUTTER REPAIRS, TRAFFIC SIGNAL LOOP REPLACEMENT, AND RESTRIPING. Q SOUTH GARVEY AVENUE/DALEWOOD STREET IMPROVEMENTS: THIS PROJECT WILL CONSIST OF RECONSTRUCTION OF PORTIONS OF THE STREET STRUCTURAL SECTION INCLUDING SUB -SURFACE PREPARATION, SUBGRADE AND CONSTRUCTING AGGREGATE BASE AND ASPHALT CONCRETE (AC) PAVEMENT SECTIONS. THE PROJECT ALSO INCLUDES CONSTRUCTION OF SIDEWALK, UPGRADE/REPLACEMENT OF ACCESSIBLE RAMPS AND MAJOR CURB/GUTTER REPAIRS. STAFF REPORT ITEM NO. Is TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works Fn DATE: April 17, 2019 SUBJECT: Consideration of Approval for an Appropriation of Additional Funds for Extraordinary and Unscheduled Maintenance Cost Related to the Citywide Traffic Signal and Street Lighting Maintenance Program SUMMARY This item seeks City Council consideration for the approval of an appropriation of additional funds in the amount of $55,000 for the Traffic Signal and Street Lighting Maintenance Program. The additional fund appropriation will help mitigate costs due to unscheduled and extraordinary maintenance in response to an increase in traffic collisions, damages due to weather, and the aging of equipment. RECOMMENDATION It is recommended that the City Council: 1. Authorize the Director of Finance to appropriate $55,000 from unappropriated funds in Fund #251 — Landscape Lighting Maintenance District (LLMD) for FY 2018/2019 to cover the increase in unscheduled and extraordinary maintenance costs; and 2. Authorize the Director of Finance to make necessary budget adjustments to allow payments as approved for FY 2018/2019. FISCAL IMPACT There is no impact to the general fund. The appropriation will come from the unappropriated fund balance in Fund #251 Landscape Lighting Maintenance District (LLMD) in the amount of $55,000 as follows: D'escripflon Fund #251 —Acct. #251-50-561-51111-00000 Available Unappropriated Fund Balance Fund 251 — Landscape and Lighting Maintenance District (LLMD) $562,655 Total Available Funds $562,655 Appropriate Fund #251 —Acct. #251-50-561-51111-00000 $55,000 Total Appropriation 1 $55,000 BACKGROUND The City of Baldwin Park's Traffic Signal and Street Lighting system is comprised of 60 traffic signal systems, approximately 430 street lights, and 19 traffic control safety devices. On September 5, 2018 City Council awarded a maintenance contract to Siemens Mobility, Inc. (SMI) for the maintenance of these systems which includes preventative maintenance of city -owned traffic signal systems, street lights and traffic control safety devices. The contract also included rates for unscheduled and extraordinary work. The contract was awarded in a not -to -exceed amount of $100,000, while the overall maintenance costs for Traffic Signal and Street Lighting Maintenance Program were budgeted in an amount of $125,000 in the FY2018-2019 operations budget. Appropriation of Additional Funds Traffic Signal and Street Lighting Program DISCUSSION As a measure for transitioning from the previous contractor to SMI, a significant part of the scope of work in the current contract is to perform routine and preventive maintenance activity on a monthly basis to identify, log and preempt potential corrective issues within the Traffic Signal and Street Lighting system. This proactive approach would allow the City to plan and budget for maintenance of necessary improvements. Through the routine and preventive maintenance scope, SMI discovered that there were significant deficiencies in the general system, particularly when it pertains to the condition of underground electrical conduits and the general condition of traffic system controllers. Routine inspections also identified various traffic signal systems that were not performing as designed due to missing vehicle detection loops that were damaged and not previously repaired and signal timing adjustments that were either not logged or not within the specifications of the original design. To mitigate costs arising from this work, staff changed the scope from a monthly basis to a quarterly basis. However, the biggest and most notable impact has been from a steady increase in unscheduled and extraordinary maintenance work. Unscheduled and extraordinary maintenance is largely unforeseen but it's necessary for response to traffic collisions, damages due to weather, and emergency repairs of aging or damaged equipment. In the past several years the City has experienced an increase in the number of collisions with traffic signal poles, and street lights. Despite the efforts to mitigate costs, unscheduled and extraordinary repairs have continued through this year mainly due to the aging traffic signal and lighting systems and an increase in vehicle collisions involving traffic signal lighting poles and controllers. After an incident, the City and SMI make all efforts to perform the repairs quickly and efficiently to resume the safe and normal operations of the street. Often, these repairs come at a significant cost. Although the City has sought restitution for damages, the reality is that in most cases costs are rarely or not at all recovered. It is expected that the infusion of additional funds will cover projected maintenance costs for the remainder of the current fiscal year. ENVIRONMENTAL REVIEW The City's traffic signal and streetlight repair and maintenance activities are categorically exempt under Class 1 of the current California Quality Act Guidelines. ALTERNATIVES The City Council may choose: 1. The City Council may choose not to approve the appropriation request; however, this action is not recommended as vital and crucial traffic signal and street lighting maintenance services would have to cease for the remainder of the fiscal year. This may have a negative impact to the City in terms of potential liability issues that may arise from the lack of maintenance. 2. City Council may direct staff with a desired alternative. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS None required. STAFF REPORT ITEM NO. I TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Work DATE: April 17, 2019 SUBJECT: Adoption of Resolution No. 2019-014, "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Amended Fee Schedule for Solid Waste Collection and Recycling Services, to Reflect Consumer Price Index (CPI) Increases for Fiscal Year 2019-2020" SUMMARY This report seeks adoption of Resolution No. 2019-014, adopting the amended fee schedule for Solid Waste Collection and Recycling Services per contractual annual rate adjustments to reflect Consumer Price Index (CPI) increases. Pursuant to the terms of the existing agreement, Waste Management, Inc. (WM) has submitted a request for rate adjustments to all customers based on increases in the CPI. This year the CPI adjustment is the only proposed change to the fee schedule, there are no other fees being considered. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 2019-014 "A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Amended Fee Schedule for Solid Waste Collection and Recycling Services to reflect Consumer Price Index (CPI) Increases for Fiscal Year 2019-2020." FISCAL IMPACT Revenue increases in franchise fees for the annual rate increase, based on CPI, will mirror the change in CPL BACKGROUND On September 4, 2013, the City Council authorized the execution of a ten-year Franchise Agreement with Waste Management, Inc. to provide exclusive collection of residential refuse and disposal of solid waste. On September 3, 2014, City Council adopted Resolution No. 2014-031 establishing annual increases based on the Consumer Price Index (CPI), for all residential, commercial, industrial and multifamily residential customers through July 1, 2019. On August 3, 2016, the City Council adopted Resolution No. 2016-141 approving various new fees and continuing the annual increases based on the CPI through, and inclusive of, July 1, 2019. DISCUSSION In compliance with the Franchise Agreement, Waste Management, Inc. has submitted an annual rate increase equal to the percentage increase in the Consumer Price Index (CPI). The Franchise Agreement with Waste Management allows for an annual review of the commercial and residential refuse rates and an adjustment based on the CPI. The formula allows for 100% of the average increase between the CPI for Garbage and Trash Collection U.S. City Average, published by the United States Department of Labor, Bureau of Labor Statistics. This proposed annual adjustment to all rates, fees and charges will take effect on July 1 of each year beginning in 2016. This proposed annual adjustment will be no more than 5% as is specified in the Franchise Agreement. Any percentage increase that exceeds the annual 5% cap will be carried forward to the next year and added to future rate increases. This year the CPI increase is 3.96%. The terms of the Franchise Agreement require that certain increases receive City Council approval. Further, the Franchise Agreement also requires that all changes to fees for solid waste services must be compliant with Proposition 218 which requires that a public hearing be held to consider all public testimony and protest regarding the proposed changes. Since the only proposed change that is being considered this year is the annual CPI increase and Resolution No. 2016-141 approves annual CPI increases through, and inclusive of, July 1, 2019, a Public Hearing is not required. ALTERNATIVES Concerning the annual CPI rate increases — If, after exercising its powers reasonably and in good faith, the City Council chooses to not implement the rate increases contained in the Franchise Agreement and requested by the Franchisee, the Franchisee has 60 days after rejection to request that the City negotiate reductions in programs, service and fees to compensate the Franchisee for the negative and material impact that the disapproval has on the Franchisee's business operations. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Resolution No. 2019-014 2. Rate Sheets Attachment 1 Resolution No. 2019-014 RESOLUTION NO. 2019-014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, ADOPTING THE AMENDED FEE SCHEDULE FOR SOLID WASTE COLLECTION AND RECYCLING SERVICES, TO REFLECT CONSUMER PRICE INDEX INCREASES WHEREAS, Proposition 218 requires the City to conduct a hearing not less than forty-five (45) days after mailing a notice of proposed property related fee increases to those upon which the fees will be imposed; WHEREAS, a duly noticed public hearing regarding the proposed increase to fees for solid waste service was conducted on August 3, 2016 at 7:00 pm in the City Council Chambers; WHEREAS, Proposition 218 requires that the City shall not impose the proposed fee if written protests against the proposed fee are presented by a majority of record owners of identified parcels; WHEREAS, written protests regarding the proposed solid waste collection fee increases were accepted from the public and considered before the close of the public hearing; WHEREAS, a tally of the written protest against the proposed solid waste fee increases shows less than a majority of accounts have submitted written protests against the proposed solid waste fee increases; NOW THEREFORE, IT IS HEARBY RESOLVED AS FOLLOWS: SECTION 1. Annual Rate Increases: Beginning July 1, 2019, and continuing through June 30, 2020, all rates, fees and charges for all residential, commercial and multifamily accounts shall be adjusted by the percentage increase in the Consumer Price Index, CUSROOOOSEHG02 CPI -U Garbage and Trash Collection, US City Average, not seasonally adjusted. SECTION 2. Annual Rate Increase Cap: With respect to any annual rate increase, the amount of the annual adjustment shall not exceed five percent (5%) for any fiscal year. Any percentage increase calculated pursuant to Section 1 which exceed the annual cap of five (5%) for any fiscal year shall be carried forward and added to future percentage rate increases; provided, however, that the total increase for any future fiscal year is not more than the annual rate cap for that year. SECTION 3. This year the CPI increase is 3.96% beginning July 1, 2019. PASSED, APPROVED, AND ADOPTED this 17th day of April 2019. MANUELLOZANO 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 Resolution No. 2019-014 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN M. 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CD n � � 3 CD rn a� 5 m m n N 7 A 006 N m � y CD 5 ,I W + m 7 3 6 03 a N T 7 n H � m 0 6 g m�W T CD mla � ID ar mz a OD M 3 g "' m T A N h C N O N V 4 a STAFF REPORT ITEM NO. 10 TO: Honorable Mayor and Members of the City Council FROM: Sam Gutierrez, Director of Public Works DATE: April 17, 2019 (�?A SUBJECT: Approval of Design -Build Contract with Merge Conceptual Design, LLC. for Professional Services for an Art in Public Space Project, including Artwork, Design, Fabrication and Installation of Signs, Structures and Digital Displays SUMMARY This report seeks City Council consideration for approval of a Design -Build Agreement with Merge Conceptual Design, LLC. to complete the design, fabrication and installation of the Public Art Project, including signs and a digital marquee display. RECOMMENDATION Staff recommends City Council to authorize the Mayor to execute a Design -Build Agreement with Merge Conceptual Design, LLC. to complete the design, fabrication and installation the Public Art Project, including signs and digital marquee display in the amount not -to -exceed $616,360. FISCAL IMPACT The approval of this action will have no impact on the City's General Fund. This project is funded through the Public Art Fees and Measure R Local Return Funds. The funds available for the project and the estimated cost for services are as follows: BACKGROUND/ DUSCUSSION The goal of the project is to create distinctive Public Art features at site-specific locations within the City. The artwork will identify the City by reflecting the community's early days and expressing the City's current modern-day character. The project will include unique artwork and incorporate a digital marquee display to create a visual representation of the Baldwin Park community while offering respect to its heritage. The project will also complement the new landscape median improvements and hardscape that were recently installed. In September 2018, the City released an advisory seeking professional services for Public Art Consulting and project management. A committee comprised of Planning and Public Works staff, received, reviewed and evaluated proposals based on the design firm's qualifications and experience. Each firm presented staffing plans, work plans, perceived project levels, and experience with similar projects. After completion of the evaluation process the committee selected Barker and Associates as the highest rated proposer and executed a Consulting Services Agreement with the firm. Subsequently, Barker and Associates introduced Merge Conceptual Design, LLC. (MCD) to the committee as the proposed public artists for the project. After meeting with MCD, the selection committee determined that they would be a good fit for the project. MCD offered innovative ideas for public art work design elements and identified with the City's long and rich history. DUSCUSSION The City will work with the Public Art Consultant and MCD to develop concept plans, line of site studies, renderings, maintenance requirements, and other descriptive materials as deemed necessary by the Public Works Director and submit and present selected concepts for recommendation to City Council. The artwork will be inspired by local community artist and follow the direction and recommendations from the City Council. In coordination with the City, MCD will hold community input meetings and make presentations to City Council to demonstrate the progress and direction of the work. Subsequent to completion of the design, plans and specifications, MCD will commence construction and installation of the art piece. For this work, a design -build method of contracting is recommended due to the intricate nature of the work. Design -build contracting can systematically reduce the project schedules by allowing early fabrication to begin while design --on other components may continue. Approval of this report will allow MCD to commence the project using this process. As the designer, MCD will be the most knowledgeable in dealing with the challenges of construction and installation of the artwork. Also, MCD will be most equipped when dealing with construction changes as this process will eliminate the need for Requests for Information (RFI's) for clarification of ambiguities a third -party might discover in the design plans. Given the time constraints, the design -build process will help expedite construction. Project design is anticipated to begin in May 2019 and project completion is anticipated early to mid -2020. ENVIRONMENTAL REVIEW The subject Public Art Signs and Digital Marquee Display Project is exempt from the California Environmental Quality Act (CEQA) pursuant to a Class 1 (Section 15201, Existing Facilities), subsection (c) exemption, which includes the repair, maintenance, and/or minor alteration of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety) The key consideration for a Class 1 exemption is whether the project involves negligible or no expansion of an existing use. ALTERNATIVES 1. The City Council may choose not to enter into a Design -Build Agreement with Merge Conceptual Design, LLC. and direct staff to circulate a Request for Proposal (RFP) for services. This option will delay the overall project schedule. 2. Provide Staff with alternate direction. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Design- Build Agreement with Merge Conceptual Design, LLC. Attachment 1 Design Build Agreement merge conceptual design LLC Design — Build Agreement Page 1 of 6 DESIGN BUILD AGREEMENT THIS AGREEMENT is made and entered into this 17th day of April, 2019 by and between the City of Baldwin Park, ("City"), and merge conceptual design, LLC ("Consultant"). In consideration of the following mutual covenants, provisions and agreements, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Consultant agree as follows: 1. SCOPE OF SERVICES. Consultant agrees to perform during the term of this Agreement, the tasks, obligations, and services set forth in the "Scope of Services" attached to and incorporated into this Agreement as Exhibit "A" (the "Services") 2. COMPENSATION. City shall pay Consultant for the Services pursuant to the terms of this Agreement and the schedule and milestones set forth in Exhibit B at a not -to - exceed compensation amount of $616,360.00. 3. TIME FOR PERFORMANCE. Consultant shall perform the services above described in a timely manner in accordance with the professional standard practices and pursuant to the schedule set forth in Exhibit B. In the event that Consultant's performance of Services is delayed for any reason, City may elect to extend this Agreement on a month-to- month basis. Unless otherwise agreed by the Parties, such extensions shall not entitle Consultant to any further compensation. 4. AUDIT OR EXAMINATION. Consultant shall keep all records of funds received from City and make them accessible for audit or examination for a period of three years after final payments are issued and other pending matters. 5. STATUS OF CONSULTANT. Consultant shall provide all necessary personnel, equipment and material, at its sole expense,. in order to perform the services required of it pursuant to this Agreement. For the purpose of this Agreement, Consultant shall be deemed, for all purposes, an independent contractor and shall have control of all work and the manner in which it is performed. Consultant shall be free to contract for similar services to be performed for other entities while under contract with City. Consultant is not an agent or employee of City, and is not entitled to participate in any pension plan, insurance, bonus or similar benefits City provides for its employees. Consultant shall be responsible to pay and hold City harmless from any and all payroll and other taxes and interest thereon and penalties, therefore, which may become due as a result of services performed hereunder. 6. ASSIGNMENT. This Agreement is for the specific services with Consultant as set forth herein. Any attempt by Consultant to assign the benefits or burdens of this Agreement without written approval of City is prohibited and shall be null and void; except that Consultant may assign payments due under this Agreement to a financial institution. 7. RIGHT TO UTILIZE OTHERS. City reserves the right to utilize others to perform work similar to the Services provided herein. However, the City acknowledges and agrees that any services provided by Consultant will be unique to Consultant and City will not take Consultant's work product or any portion thereof to be completed, fabricated, installed, or otherwise used in any way without specific written permission from Consultant. merge conceptual design LLC Design — Build Agreement Page 2 of 6 8. COMPLIANCE WITH LAW. Contract services shall be provided in accordance with the applicable laws and regulations of all governmental agencies that are in force at the time services are performed. Consultant shall be responsible for becoming aware of and staying abreast of all such laws and ensuring that all services provided hereunder conform to such laws. However, City shall inform Consultant of any specific rules or permitting requirements that may impact Consultant's services or delivery of work product. The terms of this Agreement shall be interpreted according to the laws of the State of California. 9. LIABILITY. Consultant shall indemnify, and hold harmless City, its officials, officers, and employees against any and all actions, claims, damages, liabilities, losses or expenses of whatsoever kind, name or nature, including legal costs and reasonable attorneys' fees, whether or not suit is actually filed, and any judgment rendered against City and/or its officials, officers, or employees that may be asserted or claimed by any person, firm, or entity arising out of Consultants' negligent performance, or the negligent performance of its agents, employees, subcontractors, or invitees, as well as, negligent acts or omissions of Consultant, it's agents, employees, subcontractors or invitees, however, this indemnity clause shall not apply if there is concurrent passive or active negligence on the part of City, or its officials, officers, agents or employees. 10. INSURANCE. Consultant shall maintain insurance coverage in accordance with the following during the course of its performance hereunder: (A) Comprehensive General Liability Insurance (including premises and operations, contractual liability, personal injury and independent Consultants' liability) with the following minimum limits of liability: (1) Personal or Bodily Injury -- $1,000,000, single limit, per occurrence; and (2) Property Damage -- $1,000,000, single limit, per occurrence; or (3) Combined single limits -- $2,000,000. (B) Comprehensive Automobile Liability Insurance including as applicable own, hired and non -owned automobiles with the following minimum limits of liability: (1) Personal or Bodily Injury -- $1,000,000, single limit, per occurrence; and (2) Property Damage -- $1,000,000, single limit, per occurrence; or (3) Combined single limits -- $2,000,000. (D) Worker's Compensation Insurance that complies with the minimum statutory requirements of the State of California. (E) Prior to commencement of services hereunder, Consultant shall provide City with a certificate of Insurance reflecting the above, and an endorsement for each policy of insurance which shall provide: (1) The City, and its officials, officers, agents and employees are named as additional insured (with the exception of Worker's Compensation); (2) The coverage provided shall be primary (with the exception of Worker's Compensation) as respects to City, its officials, officers, agents or employees; moreover, any insurance or self-insurance merge conceptual design LLC Design — Build Agreement Page 3 of 6 maintained by City or its officials, officers, agents or employees shall be in excess of Consultants' insurance and not contributed with it. (3) The insurer shall provide at least thirty (30) days prior written notice to City of cancellation or of any material change in coverage before such change or cancellation becomes effective. (F) With respect to Workers' Compensation Insurance, the insurer shall agree to waive all rights of subrogation against City and City personnel for losses arising from work performed by Consultant for City, and the insurer's agreement in this regard shall be reflected in the Workers' Compensation Insurance endorsement. 11. OWNERSHIP OF DOCUMENTS. All of the documents required to be prepared pursuant hereto shall, upon the completion thereof, be deemed for all purposes to be the property of City. City's ownership of documents includes any and all analysis, computations, plans, correspondence and/or other pertinent data, information, documents, and computer media, including disks and other materials gathered or prepared by Consultant in performance of this Agreement, but specifically excludes any and all intellectual property rights to these documents and other material. Such work product shall be transmitted to City within ten (10) days after a written request therefore. Consultant may retain copies of such products. Any re- use by City shall be at the sole risk of City and without liability to Consultant. Any reuse by City shall be for informational purposes only and cannot be used to create or provide any of the Services listed in Exhibit A 12. RECORDS AND INSPECTIONS. Consultant shall maintain full and accurate records with respect to all services and matters covered under this Agreement. City shall have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Consultant shall maintain an up-to-date list of key personnel and telephone numbers for emergency contact after normal business hours. 13. TAXPAYER IDENTIFICATION NUMBER. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W-9, as issued by the Internal Revenue Service. 14. CONFLICT OF INTEREST. Consultant agrees that any conflict or potential conflict of interest shall be fully disclosed prior to execution of contract and Consultant shall comply with all applicable federal, state and county laws and regulations governing conflict of interest. 15. POLITICAL ACTIVITY/LOBBYING CERTIFICATION. Consultant may not conduct any activity, including any payment to any person, officer, or employee of any governmental agency or body or member of Congress in connection with the awarding of any federal contract, grant, loan, intended to influence legislation, administrative rulemaking or the election of candidates for public office during time compensated under the representation that such activity is being performed as a part of this Agreement. 16. RIGHT TO TERMINATE. City may terminate this Agreement at any time, with or without cause, in its sole discretion, with thirty (30) days written notice. merge conceptual design LLC Desiqn — Build Aqreement Page 4 of 6 17. EFFECT OF TERMINATION. Upon termination as stated in Paragraph "16" of this Agreement, City shall be liable to Consultant only for work performed and expenditures made in the course of rendering Services by Consultant up to and including the date of termination of this Agreement, unless the termination is for cause, in which event Consultant need be compensated only to the extent required by law. Consultant shall be entitled to payment for work satisfactorily completed to date, based on proration of the compensation set forth in Exhibit "B" attached hereto. Such payment will be subject to City's receipt of a close-out billing. 18. LITIGATION FEES. Should litigation arise out of this Agreement for the performance thereof, the court shall award costs and expenses, including reasonable attorney's fees, to the prevailing party. In awarding attorney's fees, the court shall not be bound by any court fee schedule but shall award the full amount of costs, expenses and attorney's fees paid and/or incurred in good faith. "Prevailing Party" shall mean the party that obtains a favorable and final judgment. Should litigation occur, venue shall be in the Superior Court of Los Angeles County. This paragraph shall not apply and litigation fees shall not be awarded based on an order or otherwise final judgment that results from the parties' mutual settlement, arbitration, or mediation of the dispute. 19. COVENANTS AND CONDITIONS. Each term and each provision of this Agreement to be performed by Consultant shall be construed to be both a covenant and a condition. 20. INTEGRATED AGREEMENT. This Agreement represents the entire Agreement between the City and Consultant. No verbal agreement or implied covenant shall be held to vary the provisions of this agreement. This Agreement shall bind and inure to the benefit of the parties to this Agreement, and any subsequent successors and assigns. 21. MODIFICATION OF AGREEMENT. This Agreement may not be modified, nor may any of the terms, provisions or conditions be modified or waived or otherwise affected, except by a written amendment signed by all parties. 22. DESIGNATED` REPRESENTATIVES. The Consultant Representative (A) designated below shall be responsible for job performance, negotiations, contractual matters, and coordination with the City. The City Representative (B) designated below shall act on the City's behalf as Project Manager. (A) CONSULTANT merge conceptual design LLC 1618 Ocean Park Blvd Santa Monica, CA 90405 (310) 581 5343 (B) City of Baldwin Park Att.: Sam Gutierrez 14403 East Pacific Avenue Baldwin Park, CA 91706 (626) 960-4011 ex. 460 merge conceptual design LLC Design — Build Agreement Page 5 of 6 23 NOTICES. Notices pursuant to this Agreement shall be in writing and may be given by personal delivery or by mail. Notices shall be directed to City's Designated Representative identified in Paragraph "22" of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the day first above written. CITY OF BALDWIN PARK By: Manuel Lozano, Mayor Dated: CONSULTANT: merge conceptual design LLC Digitally signed by Claudia Re($enberger DN: cn=Claudia Reisenberger , ou, By: email=reisenowski@earthlinnt-US a e: ZU 19.U4.r Printed Name: Claudia Reisenberger Title: member, LLC Dated: April 10th 2019 ATTEST: By: Jean M. Ayala, City Clerk Dated: Approved as to form: By: Robert Tafoya, City Attorney Dated: merge conceptual design LLC Design — Build Agreement EXHIBIT A SCOPE OF SERVICES Page 6 of 6 EXHIBIT A SCOPE OF SERVICES Subject to the terms and conditions of the Consultant Agreement (the "Agreement") to which this Exhibit A is attached, and the Schedule and Milestones set forth in Exhibit B also attached to the Agreement and incorporated by reference, City, in collaboration with public art consultant Barker & Associates Public Art Advisory (the "Public Art Consultant"), wishes to commission merge conceptual design, LLC ( the "Consultant") to design, fabricate and install or cause its agents to fabricate and install one but no more than three public art features (the "Artwork") for installation within the city's public right of way (the "Sites") identified by the City Council. Consultant agrees to meet with Art Consultant, and City staff as necessary and/or specifically set forth in Exhibit B, throughout all stages of the project. 1. ARTWORK. The goal of the Artwork is to create a gateway and marker(s) for the City, conveying the unique identity of the City to visitors and residents alike. The Artwork will include the following elements: a. A decorative / public art component that conveys and represents the City's identity; b. Lettering that identifies the "City of Baldwin Park"; and A digital display that will be used to convey city messages to passersby. The content of the digital display will be generated and continuously updated by the City. C. Consultant agrees that Artwork design is to be coordinated with City of Baldwin Park Downtown Improvement Project and First and Last Mile Project (together the "Streetscape Improvements Project"), with the goal of the Artwork and Streetscape Improvements Project to complement each other aesthetically. Consultant is not responsible for the design of elements of the Streetscape Improvements Project separate from the Artwork. Consultant will be available via phone, email and in up to five in-person meetings for coordination with City and/or any representatives, agents or contractors working on behalf of the City for the Streetscape Improvement project team. Number of meetings related to the development of the Artwork is not limited, and Consultant will be available to meet as necessary as part of this Scope of Services. 2. CONSULTANT'S COMPENSATION AND EXPENSES. The overall project budget of $616,360 will cover all aspects of the Artwork as described in this Scope of Services, including design, fabrication, and installation, as well as meetings with City representatives as needed to accomplish the Artwork. Consultant is responsible to deliver finished Artwork not exceeding the overall project budget. a. Compensation. City will pay Consultant the total amount of not to exceed six hundred sixteen thousand three hundred sixty Dollars ($616,360.00) (the "Contract Amount") pursuant to Exhibit B. This Contract Amount will cover all costs associated with the Design, Fabrication and Installation of the Artwork as described in detail in this Scope of Services. b. Payment Procedure. Payment as set forth under this Agreement will be made payable to "merge conceptual design LLC" and will be remitted by check to the Consultant. Consultant agrees to stay current with Consultant's obligations to subcontractors and shall provide lien waivers or equivalent confirmations that subcontractors have been appropriately paid out of the funds paid to Consultant within appropriate time limits and as applicable by law. All invoices should be detailed enough that someone not familiar with this Agreement could reasonably determine the basis for the invoice charges. All invoices received by the end of the month shall be paid no later than the end of following month. In the event that Consultant does not stay current with Consultant's obligations to subcontractors and/or cannot produce lien waivers or equivalent confirmations, City will not be obligated to pay Consultant's invoice. C. Payment Retention. As reflected in the payment schedule set forth in Exhibit B, five percent (5%) of the construction budget will be withheld as a retained amount to be paid 30 days after recording of Notice of Completion by the City. 3. SITE. In coordination with the City Council, City Staff and the Public Art Consultant, Consultant will gain an understanding of the goals for several sites under consideration and will establish team consensus of potential siting possibilities for the Artwork and a corresponding division of the overall budget among several Sites. Upon determination of the potential sites, City will provide Consultant with the available as -built street improvements plan as well as any base drawings available for the specific areas at the potential sites where the Artwork may be installed. City will provide contacts to all utility companies to verify utility locations, but it will be the responsibility of Consultant to contact the companies to obtain all records of utility locations. Thereafter, City and Consultant shall meet to assess the information and mutually determine the most suitable potential locations for foundations for the Artwork. Consultant will hire a contractor to do "pot -holing" at the potential sites to confirm suitability for construction of foundations for the Artwork. After confirming the viability of the sites (the "Sites"), but before beginning any digging, Consultant or Consultant's contractor will call Underground Service Alert of Southern California (811) to provide further information (if any) and final verification regarding location of utilities in order to minimize the potential for any damage to utilities. In the event that Consultant encounters any unanticipated issues at the Sites despite adhering to the aforementioned protocol, Consultant will work with City to resolve such issues by either moving the utilities or by moving the location of the foundations to another location at the Site or to an entirely new Site (also selected pursuant to the steps set forth herein). Any cost necessitated from the remedy of unanticipated issues as described above will be borne by the City. 4. SCHEMATIC DESIGN. Upon execution of the Agreement and receipt of payment pursuant to Exhibit B, Consultant shall develop a schematic design proposal (the "Schematic Design") as follows: a. Community Outreach. Consultant agrees that an important aspect of this project is community involvement: the Artwork should be sensitive to community and user needs, while demonstrating a commitment to design integrity and functionality. Thematic and aesthetic development should be responsive to the interests, concerns, and values identified in the public input process. As possibilities present themselves throughout the design process, Consultant may wish to subcontract with local Consultants or artisans for various aspects of the design or fabrication of the Artwork. In such case, Consultant will gain approval by City prior to subcontracting. In order to allow Consultant to develop a relevant schematic design, City / City Staff will identify a core group of stake holders to be included in the design process (Working Group), including representatives from the City as well as community representatives (i.e. people with particular local knowledge, neighborhood associations, etc.). Consultant, with the help of City / City Staff, will organize working group meetings as reasonably needed as well as one open public meeting in order to introduce the project to the general public and solicit input. Consultant will follow up with additional community outreach and research as indicated in these meetings. b. Schematic Design. Pursuant to community outreach and Site selection, Consultant will create Schematic Design based on the limitations and opportunities of the Sites and project budget. The Schematic Design documents shall include, but may not be necessarily limited to, Site plans, perspective sketches and/or renderings, and general descriptive views and elevations including proposed materials and fixtures. Consultant shall determine space and location requirements with pertinent engineers/consultants as required, and shall review Schematic Design with sub -consultants as necessary. Consultant shall prepare an estimate of probable construction cost based on all available data. The Schematic Design shall be sufficient to communicate ideas to a non-technical audience, such as members of the public, City boards and commissions. Following review by City, Working Group, and City staff, Consultant shall 2 document any revisions to the Schematic Design and present optional design features and variations. Consultant will present revised Schematic Design at an open community meeting to the general public and provide a format for public feedback. Consultant will present revised Schematic Design to City for approval. 5. DESIGN DEVELOPMENT. Following approval of the Schematic Design by City, and relevant commissions, the Consultant shall develop the design documents (the "Design"). As Design develops, the Consultant shall be responsible for conferring with and obtaining preliminary review from regulatory agencies such as Public Works Department, City Council, Planning Commission. Consultant will meet with staff as required and shall make presentations to City commissions/boards as reasonably needed. The Design may include initial proposals, design concepts, drawings and models or other appropriate plans and renditions of Consultant's Design. a. Compliance. Consultant shall revise Design as required for code compliance. The Design shall take into consideration and incorporate all pertinent material guidelines, and maintenance and safety criteria; all State and Federal requirements, including but not limited to codes and regulations referenced and provided by the City, the Americans with Disabilities Act ("ADA"), the Uniform Federal Accessibility Standards as published in the Federal Register, and the rules governing national, state and local historic sites. b. Approval. Upon completion of Design, Consultant will work with Art Consultant to submit Design to City for approval. City shall review the Design and give approval or disapproval of the Artwork within ten (10) business days, or longer if mutually agreed, following receipt of the Design. If City approves the Design, the Design will be attached to this Agreement as Exhibit C and incorporated herein by reference, City shall make the payment as indicated in Exhibit B and Consultant shall proceed with Fabrication Plans. If City disapproves the Design as submitted, City shall indicate the nature and reason(s) for the disapproval in writing to Consultant within ten (10) business days, -or longer if mutually agreed. Upon receipt of the notification of City's disapproval, Consultant shall have ten (10) business days, or longer if mutually agreed, to address City's reasons for disapproval and resubmit the Design. City shall then have another ten (10) business days, or longer if mutually agreed, to review the resubmitted design. If City approves the Design, City shall make the payment as indicated in Exhibit B and Consultant shall proceed to Fabrication. If approval or disapproval by City takes longer than 10 days, performance schedule (Exhibit B) will be revised accordingly. If City disapproves the Design as resubmitted, City and Consultant shall meet to discuss whether further redesign will cure City's concerns and if so, a reasonable time frame within which to accomplish the cure. If no cure is accomplished, City may terminate this Agreement with no further obligation to Consultant. In the event of termination, all intellectual property regarding the Design remains with Consultant and City may not use Consultant's Design or any derivative thereof. 6. CONSTRUCTION DOCUMENTS. Upon approval of the Design by City and all administrative bodies, the Consultant shall provide City with Construction Documents for the Design that comply with all City standards, including final drawings (Site plan, construction plan and details, engineering plans/calculations, etc.) and specifications. Consultant will ensure that subcontractors provide Construction Documents that include all City standards and forms including requirement for bonds that contractor needs to have (attached as Exhibit D). Consultant shall prepare a final itemized cost estimate, and determine alternates if applicable. Construction Documents shall include all details pertaining to the fabrication and execution of the Design for the Artwork as well as the necessary specifications for Installation at the Site ("Site Specifications"), including structural design and traffic control design. a. Engineering. Consultant is responsible for obtaining appropriate engineering services from licensed professionals as necessary for proper Fabrication and Installation of the 3 structural and sculptural components of the Artwork, including a California licensed structural engineer and a California licensed traffic engineer. The engineering work shall be performed by qualified engineers and/or other design professionals who are licensed and insured in the State of California, and in a manner consistent with applicable standards of professional skill, care and diligence. Further, Consultant will consult with a lighting consultant to assist with design and specifications for lighting preferences. b. Miscalculations. Any miscalculations in the Plans that are due to the Consultant receiving inaccurate drawings or other documents from City or City's agents may cause delay in the fabrication, construction, delivery and/or installation of the Artwork and the City will bear the cost, if any, of correcting such miscalculations. Any miscalculations that are due to error of the Consultant or her subcontractors may cause delay in preparation of the Site and/or installation of the Artwork and Consultant will bear the cost, if any, of correcting such miscalculations. c. Materials. Materials chosen for the Artwork should take into consideration pertinent requirements and City's desire that the Artwork be easily maintained and durable. The materials selected should be as resistant as possible to environmental elements that may hasten deterioration. Materials selected have to be presented to Public Works Director for approval and comply with relevant codes. d. Approval. Upon completion of the Construction Documents, Consultant will work with Art Consultant to submit the Plans to City for approval. City shall review the Construction Documents and give approval or disapproval of the same within ten (10) business days, or longer if mutually agreed, following receipt of the Construction Documents. If City approves the Construction Documents, City shall make the payment as indicated in Exhibit B and Consultant shall proceed with Fabrication. Upon approval of the Construction Documents, that portion of the Construction Documents pertaining to the Fabrication of the Artwork shall be added to and hereby incorporated into the Design specifications set out in Exhibit C to this Agreement: That portion of the Construction Documents pertaining to preparation of the Site and Installation shall be added to this Agreement as Exhibit D and incorporated by this reference. If City disapproves the Construction Documents as submitted, City shall indicate the nature and reason(s) for the disapproval in writing to Consultant within ten (10) business days, or longer if mutually agreed. Upon receipt of the notification of City's disapproval, Consultant shall have ten (10) business days, or longer if mutually agreed, to address City's reasons for disapproval and resubmit the Construction Documents. City shall then have another ten (10) business days, or longer if mutually agreed, to review the resubmitted Construction Documents. If City approves the Construction Documents, City shall make the payment as indicated in Exhibit B and Consultant shall proceed to Fabrication. If approval or disapproval by City takes longer than 10 days, performance schedule (Exhibit B) will be revised accordingly. If City disapproves the Construction Documents as resubmitted, City and Consultant shall meet to discuss whether further work will cure City's concerns and if so, a reasonable time frame within which to accomplish the cure. In the event of termination, all intellectual property regarding the Design remains with Consultant and City may not use Consultant's Design or any derivative thereof. 7. FABRICATION. Upon approval of the Design and Construction Documents and receipt of payment pursuant to Exhibit B, the approved Design and Construction Documents shall be attached to this Agreement as Exhibit C and thereby incorporated into this Agreement. Consultant shall proceed with the fabrication of the Artwork ("Fabrication"), in substantial conformity with the Design and Construction Documents approved by City as set forth in Exhibit C. a. Access for Review. Art Consultant, as City's representative, will be given access to the Artwork during reasonable business hours at Consultant's or fabricator's studio and / or fabrication facility in order to review the Artwork and Consultant's or fabricator's progress with fabrication of the Artwork. Alternatively, City and/or Art Consultant may request photographic documentation of Consultant's progress to verify each stage that triggers payment pursuant to the schedule set out in Exhibit A. b. Notification of Completion. Consultant will notify City in writing pursuant to the terms of the Agreement when the Artwork is completed and ready for delivery and installation. Upon receipt of notice, City will have ten (10) business days, or longer if mutually agreed, to -inspect the Artwork for conformity with the Design and structural requirements and to give approval or disapproval of the Artwork. If approval or disapproval by City takes longer than 10 days, performance schedule (Exhibit B) will be revised accordingly. C. Approval. If City gives approval, and such approval shall not be unreasonably withheld, Consultant shall receive payment pursuant to Exhibit B and will proceed with delivery and installation of the Artwork. If City disapproves the Artwork, City shall provide Consultant written notice of such disapproval within ten (10) business days, or longer if mutually agreed, Consultant shall have ten (10) business days, or longer if mutually agreed, to address City's reasons for rejection of the fabricated Artwork. City shall then have another ten (10) business days, or longer if mutually agreed, to review the Artwork. If City approves the Artwork, City shall make the payment as indicated in Exhibit B and Consultant shall proceed with delivery and installation. If approval or disapproval by City takes longer than 10 days, performance schedule (Exhibit B) will be revised accordingly. If City again disapproves the Artwork as fabricated, the parties agree to work together in good faith to resolve the situation and reach a mutually agreeable solution. If the parties are unable to agree on a solution, either party may choose to terminate this Agreement. Consultant shall retain the fabricated work and may at her sole option elect to destroy or resell the Artwork. All intellectual property associated with the Design remains with Consultant and City may not use Consultant's Design or any derivative thereof. 8. CHANGES. Changes that do not affect the artistic integrity of the Artwork may occur or be requested at any time during the course of this Agreement. Minor changes in form, shape, materials and color may be made at the discretion of Consultant for the refinement of the Design of the Artwork. Any major change, including but not limited to a change in the scope, design, color, size or material of the Artwork, which affects cost, installation, site preparation maintenance and concept as represented in the Design ("Significant Change"), by either Consultant or as requested by City must be requested in writing and approved by the other party in writing. a. If Consultant wishes to make a Significant Change to the Artwork Consultant will notify City of the Significant Change in writing at the address provided in the Agreement. City will provide a written response within ten (10) calendar days, or longer if mutually agreed. If response by City takes longer than ten days, performance schedule (Exhibit B) will be revised accordingly. b. If City accepts Consultant's request for Significant Change, City's written indication of acceptance should include a complete statement of the scope of the accepted changes and any applicable changes to costs. C. If the City requests a Significant Change, Consultant shall provide City a written response within ten (10) business days, or longer if mutually agreed, as to whether Consultant feels the requested Significant Change is appropriate, and if so, the feasibility and cost associated with such requested Significant Change. City will then have ten (10) business days, or longer if mutually agreed, within which to approve or disapprove the terms of implementing such Significant Change. If approval / disapproval by City takes longer than ten days, performance schedule (Exhibit B) will be revised accordingly. d. If City rejects Consultant's terms for implementing the requested Significant Change, the parties agree to work together in good faith to resolve their lack of agreement and reach a mutually agreeable solution. If the parties are unable to agree on a solution, either party may choose to terminate this Agreement. Consultant shall retain the W fabricated work and may at her sole option elect to destroy or resell the Artwork. All intellectual property associated with the Design remains with Consultant and City may not use Consultant's Design or any derivative thereof. 9. DELIVERY. Upon completion of Fabrication, after conferring with Art Consultant to confirm that Site is ready for delivery, and as long as all Exhibit B payments are current, Consultant or Consultant's agent(s) will pack, crate, insure, transport and deliver the sculptural components of the Artwork to the Site in conformance with the delivery schedule set forth in Exhibit B. a. Visual Inspection. Upon Delivery of the Artwork to the Site, unless otherwise agreed by the parties, City will have a reasonable opportunity to visually inspect the Artwork for defects prior to installation. Upon determining that (i) the Artwork is in conformance with the specifications set forth in Exhibit C and (ii) Consultant is in substantial compliance with the other terms of this Agreement which City has not waived, City will allow the Artwork to be installed and make the payment due pursuant to Exhibit B. If, within 5 business days from the day of Delivery, City has not raised any objections to the Artwork as delivered, the Artwork will be deemed ready for installation. In the event that City notifies Consultant within 5 business days that the Artwork is defective and/or does not conform in some way to the terms as set forth in this Agreement, Consultant will have a reasonable opportunity to cure any defects. b. Delay. In the event that City is not ready for Delivery to the Site due to any reason beyond the control of Consultant, and wishes Delivery to the Site be delayed, City will be responsible for providing appropriate storage or paying the actual cost of storing the Artwork, if any, and any associated cost of storing the Artwork until such time as the City is ready for Delivery to the Site, including demobilization and remobilization costs. 10. SITE PREPARATION AND INSTALLATION. According to Construction Documents approved by City, Consultant shall subcontract for the preparations of the foundations on Site with a contractor that meets the City's requirements as conveyed to Consultant. Consultant will contract for the installation of the Artwork in accordance with the schedule and specifications for Installation as attached hereto in Exhibits B and C and incorporated into this Agreement. Consultant agrees to perform all on site preparation and installation work according to the State of California's Prevailing Wage Rules, and agrees to require all of Consultant's subcontractors involved in on-site preparation and installation to abide to the State of California's Prevailing Wage Rules. a. Permits. Consultant will collaborate with the City's Public Works Director to obtain all permits necessary for the Installation of the Artwork. A "No fee" permit will be issued by the City to a qualified contractor. b. Site Preparation and Access. Consultant will be responsible for all expenses, labor, and equipment necessary to prepare the Site for Installation, including but not limited to the foundation for the Artwork, as detailed in Exhibit C. Consultant and their designated assistants will have free access to the Site at all times during the Installation. Consultant will be responsible for inspecting the Site prior to Installation to verify that the Site has been properly prepared to receive the Artwork. Consultant is responsible for maintaining a clean Site during Installation and will ensure that the Site is cleaned up upon the completion of Installation. Consultant will supervise street closure and traffic management if this proves necessary for preparation of Site or Installation of Artwork. In the event that street closure is necessary, Consultant will abide by all City rules and policies regarding scheduling and timing of such closures so as to avoid any undue burden on traffic movement. C. Delay. In the event that City wishes to delay Installation for any reason beyond the Consultant's control, City will be responsible for the actual cost of storing the Artwork and any associated cost of storing the Artwork until such time as the City is ready for Installation. Artwork shall not be stored on site. In the event Consultant wishes to delay C Installation for any reason, Consultant will be responsible for any necessary storage of the Artwork and resulting costs. d. Installation. As soon as reasonably possible after City has had an opportunity to inspect and accept the delivered Artwork, Consultant or Consultant's agents will install the Artwork in conformance with the specifications set forth in Exhibit C attached hereto and incorporated into this Agreement. City will be responsible for any necessary street closure or other measures to secure the site during installation at no cost to the Consultant. 11. FINAL APPROVAL AND ACCEPTANCE. Upon completion of Installation, unless otherwise agreed by the parties, City will have a reasonable opportunity to inspect the Artwork for defects prior to acceptance. Upon determining that (i) the Artwork is in conformance with the specifications detailed in this Agreement and all pertinent Exhibits; and (ii) Consultant is in substantial compliance with the other terms of this Agreement which City has not waived, City will accept the Artwork ("Final Acceptance") and make the final payment pursuant to the terms set forth Exhibit B. If, within ten (10) business days from the day installation is complete, City has not raised any objections to the Artwork as installed, the Artwork will be deemed accepted. In the event that City notifies Consultant within ten (10) business days that the Artwork or the Installation is defective and/or does not conform in some way to the terms as set forth in this Agreement, Consultant will have a reasonable opportunity to cure any defects. 12. MAINTENANCE MANUAL. Within ten (10) business days of Final Acceptance of the Artwork, Consultant will provide City with written instructions for appropriate maintenance and preservation of the Artwork (the "Maintenance Manual"). City will maintain the Artwork pursuant to the maintenance, repair and restoration terms set out in this Agreement. 13. REPRESENTATIONS AND WARRANTIES. a. Consultant's Warranties. Consultant warrants that: i. Consultant is the sole author of the Artwork and that Consultant is the sole owner of any and all copyrights pertaining to the Artwork or has obtained the appropriate permissions and licenses to incorporate the works of others. ii. The Artwork is an original creation and the result of the artistic efforts of Consultant and that it will be installed free of any liens, claims or other encumbrances of any type. Further, Consultant has not knowingly infringed upon any copyright or trademark. iii. The Artwork is unique and an edition of one (1) and that Consultant will not execute or authorize another party to execute another work of the same or substantially similar design and dimension as the artwork commissioned pursuant to this Agreement. Consultant may create works that use or incorporate various individual art elements that comprise the Artwork, so long as the work using or incorporating such elements (1) does not consist predominantly of such elements (2) is not the same or substantially similar in image, design, dimensions and materials as the Artwork, and (3) is not displayed in an environment that is the same or substantially similar to the environment in which the Artwork is to be displayed at the Site. iv. The Artwork is fabricated in materials for which the durability has been communicated to City. Where possible, permanent, non -fugitive materials that will not tend to degrade or fade over the life of the Artwork have been used; V. The Artwork will be free of defects in workmanship and materials. In the event that any defects become apparent in the workmanship or materials within the first (1) year of Installation, Consultant will remedy any defects at Consultant's expense. Any inherent defects in the materials or Artwork that are specifically identified in the Design and approved by City are not warranted. Vi. General routine cleaning and repair of the Artwork and any associated working parts and/or equipment will maintain the Artwork within an acceptable standard of 7 public display taking into consideration foreseeable exposure to the elements and general wear and tear. Consultant shall not be responsible for deterioration of the Artwork materials due to failure of City to properly maintain according to the Maintenance Manual. vii. To the extent the Artwork incorporates products covered by a manufacturer's warranty, Consultant shall provide copies of such warranties to City. 14. INTELLECTUAL PROPERTY OWNERSHIP. a. General. Except as provided in this Agreement, Consultant retains all copyrights and other intellectual property interests in the Artwork and in the Design, drawings, sketches, prototypes and other materials for the Artwork. Consultant may place a copyright notice on the Artwork and may, at Consultant's option, register the copyright with the Library of Congress. b. Reproductions. Consultant hereby grants to City the non-exclusive right to make, and to authorize the making of, photographs and other two-dimensional reproductions of the artwork for any City -related purposes, including, but not limited to educational, advertising, marketing, public relations, promotion, any documentation of City's art collection or other noncommercial purposes in print or electronic media. This license includes the ability to use colors, fonts, and other graphic or design elements drawn from the Artwork or created in collaboration with the Consultant to coordinate branding and way -finding efforts undertaken by the City for projects throughout the City. This license does not include the right to create three- dimensional works or to reproduce the Artwork for merchandising purposes. Any rights to reproduce the work three -dimensionally or to merchandise the Artwork must be established pursuant to a separate agreement with the Consultant. 15. CREDITS. a. Label. A label, provided by Consultant at Consultant's expense, identifying Consultant, the title of the Artwork and the year it was completed, will be publicly displayed in the area adjacent to the Artwork on a plaque of reasonable dimensions. b. Consultant's Credit. City agrees that unless Consultant requests to the contrary in writing, all references to the Artwork and all reproductions of the Artwork will credit the Artwork to Consultant. C. City's Credit. Consultant agrees that all formal references to the Artwork will include the following credit line: "From the collection of "Baldwin Park". 16. MAINTENANCE, REPAIR AND RESTORATION. City will be responsible for the routine inspection and maintenance of the Artwork in accordance with the Maintenance Manual. City shall have the right to determine, after consultation with a professional conservator, when and if repairs and restorations to the Artwork will be made. It is the policy of City to consult with Consultant regarding repairs and restorations undertaken during Consultant's lifetime when practicable. In the event the City wishes to have Consultant personally undertake or supervise repairs, City agrees to pay Consultant a reasonable fee for such supervision to be negotiated at the time. In the event that City makes repairs or restoration not approved by Consultant, Consultant shall have the right, at Consultant's sole option, to have Consultant's association with the Artwork severed. All repairs and restorations, no matter who performs them, shall be made in accordance with professionally recognized principles of conservation and in accordance with the Maintenance Manual. 17. MODIFICATION. DESTRUCTION OR REMOVAL OF ARTWORK. a. City shall notify Consultant in writing of any proposed significant alteration of the Site that would affect the intended character and appearance of the Artwork including removal or relocation of the Artwork that might result in the Artwork being destroyed, distorted or modified. The City shall make a good faith effort to consult with the Consultant in the planning and execution of any such alteration. The City shall make a reasonable effort to maintain the integrity of the Artwork. If the Artwork cannot be successfully removed or relocated as determined by the City, the Consultant may disavow the Artwork or have the Artwork returned to the Consultant at the Consultant's expense. b. The Artwork may be removed or relocated or destroyed by the City should the Consultant and the City not reach mutual agreement on the removal or relocation of the Artwork after a period not to exceed ninety (90) days after written notice to the Consultant. During the ninety (90) day period, the Parties shall engage in good faith negotiations concerning the Artwork's removal or relocation. C. In the event of changes in building codes or zoning laws or regulations that cause the Artwork to be in conflict with such codes, laws or regulations, the City may authorize the removal or relocation of the Artwork without the Consultant's permission. In the alternative, the City may commission the Consultant by a separate agreement to make any necessary changes to the Artwork to render it in compliance with such codes, laws or regulations. d. If the City reasonably determines that the Artwork presents imminent harm or hazard to the public, other than as a result of the City's failure to maintain the Artwork as required under this Agreement, the City may authorize the removal of the Artwork without the prior approval of the Consultant. e. City shall have the right to donate or sell the Artwork at any time. Before exercising this right, City, by written notice to Consultant at Consultant's last known address, agrees to give Consultant the opportunity to purchase the Artwork for the greater of the Contract Amount or the amount of any offer which City has received for the purchase of the Artwork, plus all costs associated with the removal of the Artwork from the Site, clean-up of the Site and delivery to Consultant. Consultant shall have thirty (30) days from the date of City's notice to exercise the option to purchase the Artwork. f. This clause is intended to replace and substitute for the rights of the Consultant under the Visual Consultants' Rights Act ("VARA") and, if applicable, the California Art Preservation Act (CAPA), to the extent that any portion of this Agreement is in direct conflict with VARA and/or CAPA rights. The parties acknowledge that this Agreement supersedes that law to the extent that this Agreement is in direct conflict with VARA and/or CAPA. 18. TRANSFER OF TITLE Ownership of the Artwork, as defined by this Agreement, will pass to City upon Final Acceptance of the Artwork, and receipt by Consultant of final payment as set out in Exhibit B. 19. RISK OF LOSS. Consultant bears the risk of loss or damage to the Artwork for any loss or damage to the Artwork that results from Consultant's or Consultant's agents' actions, until Final Acceptance following Installation at which time the risk of damage to or loss of the Artwork passes to City. City bears the risk of loss or damage to the Artwork for any loss or damage to the Artwork once the Artwork is installed on the Site and/or under the control of City and such damage to or loss of the Artwork results from the actions of anyone other than the Consultant or Consultant's agents. E EXHIBIT B PERFORMANCE AND PAYMENT SCHEDULE EXHIBIT B PERFORMANCE AND PAYMENT SCHEDULE The Consultant shall provide services in accordance with the following schedule unless otherwise notified by the City: Completion of Schematic Design approval of contract, whichever is later) Completion of Design Development approval of schematic design, whichever is later) Presentation of Constructions Documents approval of design development, whichever is later) June 17`a, 2019 (or 2 months from August 27th, 2019 (or 2 months from November 7th, 2019 (or 2 months from Fabrication and Installation Schedule TBD pending Design, estimated time line of Fabrication and Installation: about 10 months after approval of Construction Documents (end of September 2020) Payment Schedule is as follows: Total project budget: $616,360 Consultant Design Fee is 20% of overall project budget: $123,272 Budget available for all other aspects of the project ("Construction Budget"): $493,088 • Retainer at Contract Signing to begin site research, community outreach and develop schematic design (15% of Consultant Design Fee) Approval of Schematic Design (15% of Consultant Design Fee) Schematic Design per Scope of Services, including but not limited to: summary of community outreach and research, site plans, perspective sketches and/or renderings, general descriptive views and elevations including proposed materials and fixtures, estimate of probable construction cost, presentation to City officials and general community in a format that can communicate ideas to a non-technical audience. Approval of Design Development (10% of Consultant Design Fee) Design Development per Scope of Services, including but not limited to: Site plan, design concepts, drawings and models or other appropriate plans and renditions of Consultant's Design, pertinent material guidelines, maintenance and safety criteria, preliminary engineering data, estimate of construction costs, presentations to City officials and general community in a format that can communicate ideas to a non- technical audience. 10 $ 18,490.80 $ 18,490.80 $ 12,327.20 Approval of Construction Documents (10% of Consultant Design Fee): $ 12,327.20 Construction Documents per Scope of Services, including but not limited to: site plan, construction plans and details, engineering plans/calculations, traffic control design, specifications for fabrication and installation, and final itemized cost estimate, presentations to City officials as deemed necessary by City. • Start of fabrication of artwork (50% of Construction Budget + 10% of Consultant Design Fee) $ 258,871.20 Start of Fabrication as evidenced by sub -contracting agreement with fabricators to be approved by City. • Completion of 50% of fabrication of artwork (25% of Construction Budget + 15% of Consultant Design Fee) $ 141,762.80 50% of Fabrication as evidenced by photo documentation and/or visit to fabricator by City representative. • Completion of Fabrication (15% of Construction Budget + 15% of Consultant Design Fee) $ 92,454.00. Completion of Fabrication as evidenced by photo documentation and/or visit to fabricator by City representative. • Completion of Installation of Artwork, Final Acceptance (5% of Construction Budget + 10% of Consultant Design Fee) $ 36,981.60 Final Acceptance by City representative. • Notice of Completion $ 24 654.40 (5% of Construction Budget) 30 days after Notice of Completion is recorded with LA County by City. 11 EXHIBIT C FINAL APPROVED DESIGN 12 STAFF ITEM NO. I I TO: Honorable Mayor and City Councilmembers FROM: Ben Martinez, Director of Community Development PREPARED BY: Ron Garcia, City Plannerwszr DATE: April 17, 2019 SUBJECT: Housing Element Progress Report 2018 SUMMARY Consideration for City Council approval of the City's Housing Element Progress Report for 2018, as required by the State of California Housing and Community Development Department (HCD). RECOMMENDATION It is recommended that the City Council receive and file the report. FISCAL IMPACT There is no fiscal impact resulting from this item. BACKGROUND The Housing Element is one of the seven mandatory elements required for the City's General Plan, and it specifies ways in which housing needs of existing and future resident populations can be met. State law requires that each city and county update their Housing Element on a pre -determined cycle. The 2014-2021 Housing Element is comprised of five sections: (1) Needs Assessment; (2) Housing Constraints; (3) Housing Resources; (4) Review of previous Accomplishments from the 2008-2013 Housing Element; and (5) the Housing Plan. The City's Regional Housing Needs Allocations are summarized in Table #1 below by income level. The number of units assigned to Baldwin Park for the 2014-2021 period was 557 housing units. It should be noted that the City is not required to construct these units, but rather plan for them through the Zoning Code development standards and the Housing Programs adopted as part of the 2014-2021 Housing Element. TABLE #1 CITY'S REGIONAL HOUSING NEEDS ALLOCATION S �e� F U IR41 / Above -Moderate Income 120%+ 242 43.1% Moderate Income 81-120% 90 16.2% Low Income 51-80% 83 15.3% Very Low Income 0-50% 142 25.3% TOTAL 557 100% 'Median Family Income Housing Element Progress Report 2018 April 17, 2019 Page 2 The Housing Element Annual Progress Report (Attachment #1), is comprised of several tables, and summarizes activity that took place during the 2018 calendar year. Activity includes Housing Development Applications Submitted (summarized in Table #2 below), Annual Building Activity for new construction including entitled, permits and completed units, Regional Housing Needs Allocation Progress for permitted units issued by affordability, and Program Implementation Status. In 2018, building permits were issued for 90 new housing units; 80 were comprised of Above -Moderate Income Units, and 10 were comprised of Moderate Income Units. TABLE #2 BUILDING ACTIVITY 2018—NEW CONSTRUCTION Pursuant to California Government Code Section 65400, local governments shall prepare and provide an annual report on the progress of the City's Housing Element for the previous calendar year to the City Council, Office of Planning and Research (OPR), the Department of Housing and Community Development (HCD). LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Housing Element Progress Report for the 2018 Calendar Year (Available for review by the public at the City Clerk's Office, and Planning Department) r Above -Moderate ModerateIncome Income Very Low Income Pursuant to California Government Code Section 65400, local governments shall prepare and provide an annual report on the progress of the City's Housing Element for the previous calendar year to the City Council, Office of Planning and Research (OPR), the Department of Housing and Community Development (HCD). LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Housing Element Progress Report for the 2018 Calendar Year (Available for review by the public at the City Clerk's Office, and Planning Department) Attachment 1 Housing Element Progress Report Available at City Clerk's Office and Planning Department STAFF REPORT ITEM NO. I a TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk i,1 DATE: April 17, 2019 K SUBJECT: Second Reading of Ordinance No. 1438 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 Rukli, Inc. for the Distribution of Cannabis at the Real Property Located at 4150 Puente Avenue (APN: 8437-014-014 and 8437-022-008) within the City of Baldwin Park" SUMMARY This report requests City Council's consideration to approve the Second Reading of Ordinance No. 1438, which authorizes the City of Baldwin Park to enter into a development agreement with Rukli, Inc. to repackage product for cultivators and manufactures of cannabis in conjunction with a cannabis distribution facility at the Real Property located at 4150 Puente Avenue within the city. Ordinance No. 1438 was introduced for first reading during a regular meeting of the City Council on March 20, 2019. RECOMMENDATION Staff recommends that the City Council waive reading and adopt Ordinance No. 1438, 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 RUKLI, INC. FOR THE DISTRIBUTION OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4150 PUENTE AVENUE (APN: 8437-014-014 and 8437-022-008) WITHIN THE CITY OF BALDWIN PARK". FISCAL IMPACT Not Applicable BACKGROUND Ordinance No. 1438 was introduced for first reading during a regular meeting of the City Council held on March 20, 2019 and presented at a regular meeting for approval on April 3, 2019. The City Council requested this item be brought back for consideration at the next regularly scheduled meeting. ALTERNATIVES Not Applicable LEGAL REVIEW Not Applicable ATTACHMENTS 1.) Attachment "A" - Ordinance No. 1438 Attachment 1 Ordinance No. 1438 ORDINANCE 1438 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 RUKLI, INC. FOR THE DISTRIBUTION OF CANNABIS AT THE REAL PROPERTY LOCATED AT 4150 PUENTE AVENUE (APN: 8437-014-014 and 8437- 022-008) WITHIN THE CITY OF BALDWIN PARK WHEREAS, a Development Agreement with the City of Baldwin Park will be required; and WHEREAS, RUKLI, Inc. also intends to and is, by virtue of this Development Agreement, granted a manufacturing license in order to repackage product for cultivators and manufacturers based on the Development Agreement; and WHEREAS, a duly noticed public hearing was held by the Planning Commission of the City of Baldwin Park on February 27, 2019, 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 March 20, 2019; 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 March 20, 2019. 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 18-01 through DA 18-15) will not have a significant impact of the environment and are Categorically Exempt pursuant to Article 19, Section 15301, Class 1, `Existing Facilities'. 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. The distribution facility is the hub of all RUKLI Activity and as such security is this highest priority. RUKLI, Inc. intends to utilize the best available SOP's and technologies to minimize security risks, thereby minimizing any potential for negative impacts upon the surrounding area and Citywide. Both interior and exterior security will be provided, including video surveillance, sensor cables, and motion detection. 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 reports dated June 13 and June 20, 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 20th day of March, 2019, and adopted and ordered published at a regular meeting of said Council on the 17th day of April, 2019. PASSED, APPROVED, AND ADOPTED this 17th day of April, 2019. MANUELLOZANO 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 regular meeting of the City Council on March 20, 2019. Thereafter, said Ordinance No. 1438 was duly approved and adopted at a regular meeting of the City Council on April 17, 2019 by the following vote to wit: JEAN M. AYALA CITY CLERK AMENDED DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BALDWIN PARK AND RUKLI, INC. ARTICLE 1. PARTIES AND DATE. This is a Government Code Amended Statutory Development Agreement ("STATUTORY AGREEMENT") and is dated March 20, 2019 for references purposes only and is Case No. 18-03 and is entered into between (i) the City of Baldwin Park ("City"), a California municipal corporation, and (ii) RUKLI, Inc., a California Corporation ("Owner"). This Agreement shall become effective on the Effective Date defined in Section 3.1.9 below. ARTICLE 2. RECITALS. 2.1 WHEREAS, the City and Rukli, Inc. previously entered into a statutory municipal Development Agreement; and 2.2 WHEREAS, the previous municipal Development Agreement was promulgated by or through the Government Code and did contain necessary elements for a Statutory Government Code Development Agreement; and 2.3 WHEREAS, this amended 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 2.4 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 2.5 WHEREAS, Owner commenced its efforts to obtain approvals and clearances to be the only distributor allowed to obtain a City of Baldwin Park permit to distribute and transport 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 2.6 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 -1- 2.7 �'VHEREAS, this STATUTORY AGREE��IEI`�!T anu the Project are consistent with the City's General Plan and Zoning Code and applicable provisions of the City's applicable Zoning Map as of the Agreement Date; and 2.8 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 . 2.9 WHEREAS, this STATUTORY AGREEMENT will eliminate uncertainty in planning and provide for the orderly development of the Project and/or the Property, ensure progressive installation of necessary improvements, and provide for public services appropriate to the development of the Project; and 2.10 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 2.11 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 2.12 WHEREAS, Owner intends to develop a Cannabis Distribution and Manufacturing Facility pursuant to the Baldwin Park Municipal Code ("BPMC") Chapter 127 and all applicable state laws, rules, and regulations; and 2.13 WHEREAS, concurrently with execution of this STATUTORY AGREEMENT, City acknowledges that Owner has been authorized to be the only business to obtain distribution and transportation permits issued by the City of Baldwin Park.to distribute cannabis and cannabis related products. Owner also intends to and is, by virtue of this agreement, granted a manufacturing license in order to repackage product for cultivators and manufacturers based on this amended agreement. Nothing in this STATUTORY AGREEMENT is intended to limit the manufacturing license granted herein; and 2.14 WHEREAS, City is entering into development agreements with owners for permits for cultivation and manufacturing of cannabis in the City of Baldwin Park. Multiple cultivation/manufacturing permits have thus far been authorized and City prohibits the sale of cannabis within the City of Baldwin Park so the cannabis must be transported to and sold in cities where it is legal to do so. Owner shall be the exclusive distributor and transporter for the cultivation/manufacturing permit holders within the City of Baldwin Park IM and City shall condition the cultivation/manufacturing permits on Owner being the exclusive distributor. 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 Development Agreement pursuant to Government Code Section 65864 et seq. 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 INTENTIONALLY BLANK 3.1.5 "Development" In the event that the property does not have a building and needs to be developed the building currently on site will be further developed, then "Development" 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" means all permits, licenses, and/or 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. 3.1.7 "Development Approvals" specifically include this STATUTORY AGREEMENT. "Development Approvals" also include both the Existing Development Approvals, if any, and the Subsequent Development Approvals, if any, approved or issued by the City that are consistent with this STATUTORY AGREEMENT. 3.1.8 "Development Plan" means the Existing Development Approvals, if any, and the Existing Land Use Regulations applicable to development of the Property for the Project, as modified and supplemented by Subsequent Development Approvals, if any. 3.1.9 "BPMC" means the City of Baldwin Park Municipal Code. 3.1.10 "Effective Date" means the day this STATUTORY AGREEMENT is approved and adopted signed by the Baldwin Park City Council and signed by the Mayor of Baldwin Park or his designee. -3- 3.1.11 "Existing Development Approvals" If any, it means all Development Approvals approved or issued prior to or on the Effective Date. Existing Development Approvals, if any, 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. 3.1.12 "Existing Land Use Regulations" 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. 3.1.13 "Land Use Regulations" 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, 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. 3.1.14 "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. 3.1.15 "Owner" means RUKLI, Inc. a California S Corporation. 3.1.16 "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 permits and entitlements, pnd 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. 3.1.17 "Project" 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 if any, the application, any and all entitlements, licenses, and permits related to the Project. 3.1.18 "Property" means the real property described in Owner's application and incorporated herein by this reference. Owner may modify the location or locations or add locations to the Property subject to City's written approval and all applicable zoning and distance requirements. 3.1.20.1 "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. -4- 3. 1.1 S "Reser dations 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 "Subsequent Development Approvals" If any, it 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, if any occur, 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. 3.1.21 "Space" If applicable, 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 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 used for storing any cannabis, no matter where such storage may take place or such storage space may be located. 3.1.22 "Subsequent Land Use Regulations" 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 Permit, and/or Project and/or Property is hereby made subject expressly to this STATUTORY AGREEMENT. Subject to Owner's receipt of all Development Approvals, if any, 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. -5- 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 8437- 014-014 and 8437-022-008 and is more particularly described in the application and document "No. 1" in Section 3.2 and incorporated herein. 3.5 Term. The initial term of this STATUTORY AGREEMENT shall be for twenty (20) years commencing as of the Effective Date. 3.6 Automatic Termination. This STATUTORY AGREEMENT shall automatically terminate upon the occurrence of any of the following events: (i) 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 a cannabis operation on the subject Property, 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. (ii) A change in State law prohibiting the business permitted such as cultivation, manufacturing or distribution of cannabis products. (iii) Failure to pay any fees due the City. 3.6.1 Effect of Termination. Termination of this STATUTORY AGREEMENT shall constitute termination of all land use entitlements approved for 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 -6- (iv) on tl ,e 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: Sharone "Shaun" Bershatski 569 S. Williams Road. Palm Springs, CA 92264 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 costs 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, if any, required to complete the Project as contemplated by the Development Plan and/or application. 4.2 Effect of 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 ere 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 -8- (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 spec cations) 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. In 4.9 City Records Inspection. Owner acknowledges and agrees that L, le 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, City may do so at any time with no prior notice to Owner. 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 The parties acknowledge and agree that the public's need for mitigation and Owner's obligation only commences when the cultivation/manufacturing permit holders commence their operations. Without the commencement of operations by the cultivation/manufacturing permit holders, Owner has nothing to distribute and nothing on which to assess fees. 5.3 For the first year, Owner will pay the City a maximum flat fee in the amount of $220,000 as a Fee. The Fee shall be prorated based on the actual number of the number of licensees that are actually operational and authorized cultivation/manufacturing permit holders. For example, assuming Rukli is distributing for the 19 permit holders, then if only half the permit holders have commenced cultivation/manufacturing, the Fee will be one half or $110,000. 5.4 In year two and year three, Owner shall pay to the City a Fee of $275,000. The proration as set forth in 5.3 shall apply. 5.5 At the beginning of year four and for year five, Owner will pay the City a Fee of $330,000 for years four and five. The proration as set forth in 5.3 shall apply. 5.6 Starting in year four, the Fee shall be increased annually based on increases in the Consumer Price Index. 5.7 The Fee schedule is as follows: the first payment for each year is due for each year on or before July 1 of each year the permit is valid. The second payment for each year the permit is valid is due on or before December 31, 2018. In all subsequent years, the Fee payments are due on the same month and day of each respective year while the permit is valid. 5.8 Further, Owner will pay a yearly payment of $50,000 to the City that can be used 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. -10- 5.9 .fobs and Wage Creation. 5.9.1 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 30 percent of the Proiect's workforce shall consist of residents of the City. In addition owner will adhere to the labor standards agreed upon with the United Food and Commercial Workers, (UFCW) Local 1428 related Labor Peace Agreement i.e.: industry prevailing wages, along with recognized labor friendly health and welfare concessions. 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, on local radio and through public agencies and organizations. 5.10 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, 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. [RESERVED] 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 -11- 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 and does not waive any further reviews identified in Sections 7.1 — 7.3. 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. 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 not less than 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. Notwithstanding the foregoing to the contrary, if the alleged default is of such a nature that it cannot be cured within thirty (30) days, the alleged defaulting party shall not be deemed in default as long as such party commences to cure such default within such thirty (30) day period and thereafter diligently prosecutes such cure to completion. 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 -12- 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 or mortgagee or lender, or to any other person, and Owner covenants on behalf of itself and all successors in interest 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 interpretation or effect of the provisions of this STATUTORY AGREEMENT. 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 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; -13- the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis. 8.3 Termination of STATUTORY AGREEMENT for Default of Owneror the City. Either Party may terminate this STATUTORY AGREEMENT only in the event of a default in the performance of a material term of this STATUTORY AGREEMENT and only after providing written notice to the Party of default setting forth the nature of the default and the actions, if any, required by the Party to cure such default and, where the default can be cured, the Party 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 but not limited to money or fees received by the City hereunder. One example of a material default by Owner would be the failure to timely pay the Mitigation fee or any other payment or fee required by the City under this STATUTORY AGREEMENT or by virtue of any BPMC. 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 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 -14- 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 any 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 its agents, officers and employees against and from any and all liabilities, demands, claims, actions, lawsuits, government claims or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which any or all of them 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) the environmental impact report, if any, mitigated negative declaration, if any, or negative declaration, if any, as the case may be, prepared in connection with the development of the Project or Property; and (iii) the proceedings undertaken in connection with the adoption or approval of any of the above. In the event of any legal or equitable action or other proceeding instituted by any party including but not limited to a third party (including a governmental entity or official) challenging the validity of any provision of this STATUTORY AGREEMENT or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding and Owner shall pay all of City's legal fees for a lawyer of its choosing. Notwithstanding the above, the City, at is sole option, may tender 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 shall at its sole discretion be permitted to select special counsel to defend the City, and Owner shall pay all costs related to retention of such counsel. However, the hourly fee of any special counsel selected by the City may not be over $450.00 per hour. 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, -15- 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 INTENTIONALLY BLANK 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 party to this STATUTORY 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. The City will respond to all Public Records Act requests as required by state law and nothing in this -16- paragraph prevents the City from fulfilling its duties under state law regarding Public Records Act requests. 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, provided, further, that any modifications of this STATUTORY AGREEMENT are subject to the provisions of Section 10.5. 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 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 -17- City's option this entire STATUTORY A GREEMENT 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. 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 Force Majeure. If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner to an extension of time as provided in -18- this Section and Article 7. Such unforeseen events ("Force Majeure") shall mean war, insurrection, acts of God, local, state or national emergencies, third party litigation, strikes and other labor difficulties beyond the party's control, any litigation filed by a third party, any Action initiated by the Federal Government or State Government, or any default by the City hereunder, which Force Majeure event substantially interferes with the development or construction of the Project. 11.10 In the case of a Force Majeure event, any and all time periods referred to in this STATUTORY AGREEMENT shall be extended for a period equal to any delay to the Project caused by any such Force Majeure event; provided, however, that no such time period shall be extended beyond a cumulative total of five (5) years. Extensions of time, when granted, will be based upon the effect of delays on the Project. They will not be granted for: (1) delays of three days or less or (2) for delays due to Owner's inability to obtain financing with respect to the Development of the Project. Owner shall in writing promptly notify Chief Executive Officer upon learning of any such Force Majeure event. The Chief Executive Officer or his or her designee shall ascertain the facts and the extent of the delay and his findings thereon shall be included in Owner's annual monitoring report unless Owner disputes the findings and requests that the period of delay be heard and determined as a part of the annual review process. 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 Successors in Interest. The permit may not be transferred or sold without City Council approval. The permit may only be transferred to a family member if the current owner(s) are unable to operate the business because of mental incompetence or physical incapacity. The burdens of this STATUTORY AGREEMENT shall be binding upon, and the benefits of this STATUTORY AGREEMENT shall inure to, all successors in interest to the parties to this STATUTORY AGREEMENT. .The burdens of the STATUTORY AGREEMENT shall be binding upon, and the benefits of the STATUTORY AGREEMENT shall inure to all successors in interest to the parties to this STATUTORY AGREEMENT. 11.13 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. 11.14 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. -19- 11.15 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. 11.16 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 STATUTORY AGREEMENT or to evidence or consummate the transactions contemplated by this STATUTORY AGREEMENT. 11.17 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. 11.18 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. 11.19 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 -20- 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 (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. 11.20 Nexus/Reasonable Relationship Challenges. Owner 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 they 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, or impose an unlawful tax. 11.21 This STATUTORY AGREEMENT when signed and executed by Owner and the Mayor of Baldwin Park supercedes and renders null and void that certain non - statutory municipal Development Agreement executed on or about December 29, 2017. 11.22 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 Owners successors in interest, assigns, partners, or anyone acting on behalf of Owner for any breach thereof. As such, the parties agree that in no event shall Owner, or Owners successors in interest, assigns, partners, or anyone acting on behalf of Owner be entitled to recover damages against City for breach of this STATUTORY AGREEMENT. 11.23 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. 11.24 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 -21- receives from the City. All conditions of approval for all entitlements, permits and/or licenses are attached hereto and incorporated herein by this reference. 11.25 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 govem 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: Jean M. Ayala, City Clerk APPROVED AS TO FORM: By: Robert N. Tafoya, City Attorney -22- RUKLI, INC. By: President APPROVED AS TO FORM: By: Legal Counsel for RUKLI, INC. STAFF REPORT ITEM NO. its TO: Honorable Mayor and Members of the City Council FROM: Benjamin Martinez, Community Development Director Shannon Yauchzee, Chief Executive Officer DATE: April 17, 2019 SUBJECT: Adoption of Resolution No. 2019-016, Joining California Choice Energy Authority and Other Related Actions SUMMARY This report seeks City Council consideration and direction regarding joining California Choice Energy Authority. RECOMMENDATION Staff recommends that the City Council: 1.) Adopt Resolution No. 2019-016 Entitled: " RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK CALIFORNIA AUTHORIZING THE CITY'S ENTRY INTO A JOINT EXERCISE OF POWERS AGREEMENT REGARDING THE CALIFORNIA CHOICE ENERGY AUTHORITY AND DIRECTING THE TAKING OF FURTHER ACTIONS RELATED THERETO"; and 2.) Authorize and direct staff to enter into an Administrative Services Agreement with California Choice Energy Authority; and 3.) Authorize and direct staff to enter into a Security Agreement with River City Bank; and 4.) Authorize and direct staff to enter into an Intercreditor and Collateral Agency Agreement with River City Bank and Secured Creditors; and 5.) Authorize and direct staff to enter into a Deposit Account Control Agreement with River City Bank; and 6.) Approve Baldwin Park CCA program name "Baldwin Park Resident Owned Utility District (B - PROUD)" FISCAL IMPACT There is no immediate fiscal impact related to these actions. The agreements establish the protections for the general fund from the future energy supply contracts and establish the terms and conditions of the relationship between the City of Baldwin Park ("City") and California Choice Energy Authority ("CalChoice"). No fees related to the Administrative Services Agreement will be accrued or charged until the Baldwin Park CCA has launched, scheduled for September 2020 for Phase 1. BACKGROUND The City Council has taken several steps over the past year as part of its research into establishing a community choice aggregation ("CCA") program in the City of Baldwin Park. These steps have included: • Engaging CalChoice to perform a technical study to determine the feasibility of operating a CCA in the City of Baldwin Park. • Adopting a resolution approving the Baldwin Park CCA Implementation Plan and Statement of Intent. 64.- • Authorizing submittal of the Baldwin Park CCA Implementation Plan and Statement of Intent to be filed with the California Public Utilities Commission ("CPUC") for certification. • Receiving certification of the Baldwin Park CCA Implementation Plan and Statement of Intent from the CPUC. • Approval of an agreement with CalChoice to provide CCA implementation services. • Approval of $100k bond posting with CPUC and SCE Service Agreement. • Adopted Ordinance establishing a CCA program. The updated technical study completed in February 2019, utilizing current customer electricity usage information from Southern California Edison ("SCE") current power market conditions concluded that Baldwin Park can establish a CCA program that meets the goals of: • Local control of energy procurement and rate setting. • Revenue streams that can support climate action plan goals and energy efficiency programs that meet the priorities as established by City Council. • Sufficient revenues to cover costs and establish reserves. • Rate savings to its residents and businesses. The actions proposed in this report are: • Adopting Resolution to Join California Choice Energy Authority; • Authorizing Administrative Services Agreement with California Choice Energy Authority; • Authorizing Security Agreement with River City Bank; • Authorizing Intercreditor and Collateral Agency Agreement with River City Bank and Secured Creditors; • Authorizing Deposit Account Control Agreement with River City Bank. Resolution to Join California Choice Energy Authority CalChoice is a Joint Powers Authority that accepts associate members for the purpose of CCA power procurement, regulatory compliance and advocacy and administrative functions. Doing so results in a more cost effective CCA program for all members. The member agencies maintain all control of decision making for the CCA program, including revenue control, rate setting, policy decisions and program development. Current associate members include Apple Valley, Lancaster, Pico Rivera, Rancho Mirage and San Jacinto. Cities considering joining include Commerce, Hanford, Palmdale, Pomona and Santa Paula. As members increase, the shared costs go down, improving the net results of the individual Member CCAs. The CalChoice board will be considering approval of Baldwin Park's entry into CalChoice as an associate member on April 23, 2019. California Choice Energy Authority Administrative Services Agreement; Security Agreement; Intercreditor and Collateral Agency Agreement; and Deposit Account and Control Agreement The California Choice Energy Authority Administrative Service Agreement ("ASA") is the guiding document that establishes the working relationship between City of Baldwin Park and CalChoice. Fees for the ASA services should be considered estimates and do not begin to be accrued until the Baldwin Park CCA is serving customers. The fees were estimated based on Baldwin Park being the 6t" agency to join CalChoice, however, there are five other agencies considering joining as Associate Members. Since a portion of the fees are shared, as additional agencies join the shared fees are reduced for all Associate Members. An updated Exhibit C Fee Schedule will be provided to Baldwin Park prior to the 2020 launch. The Security and Intercreditor and Collateral Agency Agreements are the documents that establish the protections for the Baldwin Park General Fund. These documents provide that the revenues generated by the CCA are deposited into a separate bank account, the "Lockbox", and is the security pledge for energy purchases. There are several energy suppliers that are comfortable with this arrangement and have these same arrangements with most of the CalChoice Associate Members. These documents establish the priority waterfall for distributing funds from the lockbox. The Deposit Account and Control Agreement ("DACA") establishes the relationship with the City of Baldwin Park's 3rd party financial institution that administers the Lockbox account, the City of Baldwin Park and the Energy Suppliers. To date, only River City Bank is offering those services, and provides these services to nearly all operating CCAs in the state. These documents are before the City Council for consideration now to enable CalChoice to move forward in meeting the Resource Adequacy procurement requirements. The approval of these documents do not bind Baldwin Park to launching and operating a CCA, they enable progress to continue to move forward towards launch. Baldwin Park CCA Program Name While the Baldwin Park CCA is a service of the City of Baldwin Park, it is typical that CCAs are given a program name around which a brand and identity can be developed. Staff has considered various naming options and recommends Baldwin Park Resident Owned Utility District "B -PROUD". The name is recommend due to its emphasis on the local nature of the CCA program. Next Steps During the month of April, CalChoice is developing load data information for a required Year -Ahead Resource Adequacy regulatory filing with the California Energy Commission ("CEC"). The CEC will determine Baldwin Park's Resource Adequacy requirements upon which CalChoice will begin soliciting proposals from energy suppliers. These results of the solicitation will be returned to the City, along with the recommendation for selection, in late summer. ALTERNATIVES The alternative is not approve the staff recommendations resulting in the City not being able to consider launching a CCA in 2020. LEGAL REVIEW This report has been reviewed and approved by the City Attorney as to legal form and content. ATTACHMENTS 1. Resolution No. 2019-016 Approving Entry into California Choice Energy Authority 2. California Choice Energy Authority JPA and Bylaws 3. Administrative Services Agreement with California Choice Energy Authority 4. Security Agreement 5. Intercreditor and Collateral Agency Agreement 6. Deposit Account Control Agreement Attachment 1 Resolution No. 2019-016 RESOLUTION NO. 2019-016 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE CITY'S ENTRY INTO A JOINT EXERCISE OF POWERS AGREEMENT REGARDING THE CALIFORNIA CHOICE ENERGY AUTHORITY AND DIRECTING THE TAKING OF FURTHER ACTIONS RELATED THERETO WHEREAS, the City of Baldwin Park ("City") is a municipal corporation organized and operating under the laws of the State of California, with the City Council of the City of Baldwin Park ("City Council") serving as the governing body of the City; and WHEREAS, the California Choice Energy Authority ("Authority") is a joint exercise of powers authority created under the Joint Exercise of Powers Act (California Government Code Section 6500, et seq.) by that certain agreement dated August 14, 2012, and originally entitled "Joint Exercise of Powers Agreement Relating to the California Clean Energy Authority" ("JPA Agreement"); and WHEREAS, the Authority changed its name to the "California Choice Energy Authority" via its adoption of the First Amendment to the JPA Agreement on March 28, 2017; and WHEREAS, Section 12 of the JPA Agreement provides that public agencies may be added as parties to the JPA Agreement, and thereby become members of the Authority, upon the following: (i) the filing with the Authority of an executed counterpart of the JPA Agreement, together with a copy of the resolution of the governing body of the joining public agency approving the JPA Agreement and the execution and delivery thereof; and (ii) adoption of a resolution of the Authority's governing body approving the addition of such public agency as a member; and WHEREAS, the City Council desires for the City to become a party to the Agreement and a member of the Authority, and finds that doing so will further the public health, safety, and general welfare of the community. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS: Section 1. Based on the staff report, presentation, public comment, and other matters presented to the City Council during its consideration of this matter, the City Council finds and declares that the foregoing recitals are true and correct, and hereby incorporated as substantive findings of this Resolution. Section 2. The City Council hereby approves and authorizes the City to enter into the JPA Agreement, and thereby approves and authorizes the City to become a member of the Authority. The City Manager is authorized and directed to execute a counterpart to the JPA Agreement on behalf of the City and file the same, along with a copy of this Resolution, with the Authority pursuant to Section 12 of the JPA Agreement. Section 3. The City Council hereby authorizes the City to enter into, and the City Manager is authorized and directed to execute on the City's behalf, an administrative services agreement with the Authority in a form substantially similar to that attached hereto as Exhibit "A" ("Services Agreement"). The City Council further authorizes the Authority to enter into any ancillary agreements required in connection with the Services Agreement on behalf of the City. Section 4. The City Council hereby authorizes the City to enter into, and the City Manager is authorized and directed to execute on the City's behalf, a security agreement, inter -creditor agreement, and one or more account control agreements in a form substantially similar to those respective agreements as are attached hereto as Exhibit "B" ("Security Agreements"). The City Council further authorizes the Authority to enter into any ancillary agreements on behalf of the City required in connection with the Security Agreements. Section 5. The City Council further authorizes the Authority to negotiate, from time to time, the Authority's entry into purchase contracts on behalf of the City for the purchase of energy and renewable energy, and related products, and for which contracts the City shall be solely responsible for payment of through the Security Agreements (each, an "Energy Contract"), which Energy Contract shall be substantially similar to the form to attached to the Services Agreement as Exhibit "A"; provided that the term of any such Energy Contract shall not exceed five (5) years. The Authority shall provide the proposed Energy Contract to the City Manager, or his/her authorized designee, who is hereby authorized and directed to review the proposed Energy Contract and, in the exercise of his/her reasonable discretion, provide the Authority with his/her written approval thereof. The Authority shall have, and the City Manager may not withhold, the authority to grant a seller under the Energy Contract a first priority security interest in the collateral (Le. the lock box account) secured by the Security Agreements. Section 6. Upon receipt of the written approval from the City Manager of an Energy Contract as set forth in Section 5 above, which may be provided via email correspondence, the City Council authorizes the Authority to enter into an Energy Contract on behalf of and for the sole benefit of the City. The City Council further authorizes the Authority to enter into any ancillary agreements required in connection with an Energy Contract, subject to receipt of written approval from the City Manager of any such ancillary agreements as set forth in Section 5 above. Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk shall enter this Resolution into the official book of resolutions. PASSED, APPROVED, AND ADOPTED this 17th day of April, 2019. MANUELLOZANO 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 Resolution No. 2019-016 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: JEAN M. AYALA CITY CLERK Attachment 2 CA Choice Energy Authority JPA & Bylaws First Amended and Restated Bylaws of The California Choice Energy Authority ARTICLE 1 THE AUTHORITY Section 1.1 Name The official name of the Authority shall be the "California Choice Energy Authority." The Authority was created pursuant to the Joint Exercise of Powers Agreement, dated August 14, 2012 (Agreement), between the City of Lancaster ("Lancaster") and the City of San Jacinto ("San Jacinto'). The Authority has and may add additional members per the terms of the Joint Exercise of Power Agreement. Section 1.2 Authority Board Members The Authority shall be administered by a governing Board of Directors (the "Board") as set forth in the Agreement. Section 1.3 Principal C?ffice The principal office for the transaction of the business of the Authority shall be the Lancaster City Hall, located at 44933 Fern Avenue, Lancaster, California, or at such other place as may be designated by the Board by resolution. Section 1.4 Com2gnsat on Members of the Board shall receive no compensation for attendance at an Authority meeting. Authority Members may be reimbursed for any expenses actually incurred in connection with serving as a member of the Board. Section 1.5 Conflicts of Interest The Authority shall adopt a conflict of interest code pursuant to, and in accordance with, the Fair Political Practices Act. ARTICLE 2 OFFICERS Section 2.1 Officers The Officers of the Authority shall be the Chair, Vice Chair, Executive Director, Secretary and Treasurer/Auditor-Controller. Section 2.2 Chair The Chair shall be the Mayor of Lancaster and shall preside at all meetings of the Authority, but shall have no authority greater than any other board member except as set forth in the Agreement and/or these By-laws. Section 2.3 Vice Chair The Vice Chair shall be appointed by the Chair with consent of the remainder of the Board, and shall perform the duties of the Chair in the absence or incapacity of the Chair, until such time as a new Chair is selected or appointed. Section 2.4 Executive Director The Board shall appoint an Executive Director who shall be the City Manager of Lancaster, or his or her designee, and shall be responsible for execution and supervision of the affairs of the Authority. Except as otherwise authorized by vote of the Board, the Executive Director or his or her designee shall sign all contracts, deeds and other instruments executed by the Authority. The Executive Director shall also perform other such functions and duties as may be delegated to him or her by vote of the Board. Section 2.5 Secretary The Board shall appoint a Clerk of the Board who shall be the City Clerk of Lancaster. Section 2.6 Treasurer/Auditor-Controller The Executive Director shall appoint a Treasurer/Auditor-Controller. Subject to the applicable provisions of any trust agreement, indenture or resolution providing for a trustee or other fiscal agent, the Treasurer/Auditor-Controller is designated as the public officer or person who has charge of, handles, or has access to any property of the authority, and shall file an official bond if so required by the Board in accordance with these By-laws and, as such, shall have the powers, duties and responsibilities specified in Section 6505.1 of the Joint Exercise of Powers Act (the "Act"), set forth at California Government Code Sections 6500 et seq., as amended. The Treasurer/Auditor-Controller shall perform all duties of a treasurer, as outlined in Section 6505.5 of the Act; however, the Board shall have the discretion to transfer this function to a certified public accountant, consistent with Section 6505.5. Section 2.7 Confirmation of Officers Confirmation of officers shall be the first order of business at the first meeting of the Authority, regular or special, held in each fiscal year. Section 2.8 Authority to Bind AuthoriW No member, officer, agent or employee of the Authority shall have any power or authority to bind the Authority by any contract, to pledge its credit, or to render it liable for any purpose in any amount, except to the extent that such person has been granted or delegated prior specific or general authority by vote of the Board. ARTICLE 3 EMPLOYEES AND AGENTS Section 3.1 Appointment of Employees and Agents The Authority, through the Executive Director, may from time to time request from the respective authority Members the services of such personnel, counsel or agents, permanent or temporary, as may be necessary to carry out the business and affairs of the Authority. The Board, or the Executive Director if so delegated by vote of the Board, may in addition employ or contract with temporary professional and technical personnel for the performance of Authority business and affairs, on such terms and at such rates of compensation as the Board, or Executive Director if so delegated by the Board, may determine; provided, however, that adequate sources of funds are identified for the payment of such temporary professional and technical services. Staff from Authority Members supporting the Authority shall be paid/reimbursed from the Authority for all applicable time billed at their fully -burdened hourly rate, as approved by the Executive Director of the Authority or as pursuant to a reimbursement agreement. ARTICLE 4 MEETINGS Section 4.1 RalRh M. Brown Act The Ralph M. Brown Act (Cal. Gov't Code §54950 et seq.) (the `Brown Act") applies to all meetings of the Board. Section 4.2 Regular.Meetings The Board shall hold regular meetings as specified by Board resolution, and the date, hour and place of the regular meetings shall be fixed by such Board resolution. To the extent permitted by the Brown Act, such meetings may be held by telephone conference. Section 4.3 Special Meetings. A special meeting may be called at any time by the Chair or the Executive Director in accordance with the Brown Act. Section 4.4 Closed Sessions Nothing contained in these By-laws shall be construed to prevent the Board from holding closed sessions during a regular or special meeting concerning any matter permitted by law to be considered in a closed session. All closed sessions shall be held pursuant to and in accordance with the Brown Act. Section 4.5 Public_Hearings All public hearings held by the Board shall be held during regular or special meetings of the Board. Section 4.6 Ouorurn A majority of the authorized number of Board members shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other official purposes, except that less than a quorum may adjourn from time to time until a quorum is obtained. Any action or decision of the Authority shall be on motion duly approved by a majority of a quorum of the Board at a lawfully held meeting. Section 4.7 Adjourning Meetings and Continuina Public Hearings to Other Times or Places. The Board may adjourn any meeting to a time and place specific in the order of adjournment. If all Board members are absent from any regular meeting or adjourned regular meeting, the Secretary or acting Secretary of the Authority may declare the meeting adjourned to a stated time and place and shall cause a written notice of the adjournment to be given in the same manner as provided for special meetings unless such notice is waived as provided for special meetings. A copy of the order or notice of adjournment shall be noticed and conducted in accordance with the Brown Act. When an order of adjournment of any meeting fails to state the hour at which the adjourned meeting is to be held, it shall be held at the hour specific for regular meetings. Any public hearing being held, or any hearing noticed or ordered to be held at any meeting may by order or notice of continuance be continued or re -continued to any subsequent meeting and to the same extent set forth herein for the adjournment of the meetings; provided, that if the hearing is continued to a time less than twenty-four (24) hours after the time specific in the order or notice of hearing a copy of the order or notice of continuance shall be posted immediately following the meeting at which the order or declaration of continuance was adopted or made. Section 4.8 Order of Business. The Executive Director shall prepare the agenda for all meetings of the Authority. Business shall be conducted according to the agenda, except when determined by the Board as permitted by law. Section 4.9 Parliamentary Procedure, The presiding officer at the meeting shall determine the rules of conduct. The presiding officer may be guided by the rules of parliamentary procedure set forth in Robert's Rules of Order, but failure to follow Robert's Rules of Order shall not affect the validity of any action or motion duly taken or adopted by the board at any lawfully held meeting. ARTICLE 5 ADDITION OF MEMBER AGENCY Section 5.1 Adding Associate Member The Board may decide to add an associate member by a majority vote and execution of the Associate Membership Agreement, attached hereto as Exhibit "A" and incorporated into these By-laws by reference. 4 Section 5.2 Associate Membership Any local agency in the state of California may, with the approval of the Board, become an Associate Member of the Authority by delivering to the Authority an Associate Membership Agreement, substantially in the form attached as Exhibit "A," duly executed by the local agency's governing body. An Associate Member shall be entitled to participate in all programs and other undertakings of the Authority, including, without limitation, the construction and financing of any local public improvement, the establishment, implementation and operation of a Community Choice Aggregation (as defined in the Cal. Public Utilities Code), and/or any other Authority programs and undertakings. An Associate Member shall not be entitled to representation on the Board of Directors or to vote on any matter coming before the Board. Upon the Board's approval of a local agency as a new Associate Member, the Chair, Vice Chair, Executive Director or other officer or staff member duly authorized by the Board for such purpose shall execute and deliver the applicable Associate Member Agreement to the new Associate Member. ARTICLE 6 AMENDMENTS Section 6.1 Amendment by the Board of Directors The Board may, by resolution, adopt, amend or repeal the Authority's By-laws. EXHIBIT "A" ASSOCIATE MEMBERSHIP AGREEMENT By and Between the California Choice Energy Authority and the CALIFORNIA This ASSOCIATE MEMBERSHIP AGREEMENT, dated , 20___, by and between the California Choice Energy Authority (the "Authority") and the ,a duly organized and existing under the laws of the State of California (the " ") (collectively, the "Parties"); WITNESSETH: WHEREAS, certain cities of the State of California (collectively, the "Members") have entered into a Joint Powers Agreement creating the California Choice Energy Authority (the Agreement), establishing the Authority and prescribing its purposes and powers and providing, among other things, for associate members of the Authority (an "Associate Member"); and WHEREAS, the Authority has been formed for the purpose, among others, of assisting its Members and Associate Members in the raising of capital to finance the capital improvement needs of its Members and Associate Members by providing for financing in connection with the improvement, construction, acquisition, leasing, creation, rehabilitation and preservation of solar energy facilities within the boundaries of the Members and Associate Members; by utilizing the professional, technical and other knowledge and expertise of Authority Members, their employees, contractors and/or consultants, in connection with the establishment, implementation and operation of a Community Choice Aggregation; and/or by providing financing in accordance with the provisions of applicable law in connection with other projects and programs that are in the public interest and which benefit Members or Associate Members; and WHEREAS, desires to become an Associate Member of the Authority; and WHEREAS, the Board of Directors of the Authority has determined that should become an Associate Member of the Authority; NOW, THEREFORE, in consideration of the above and of the mutual promises contained herein, the Authority and do hereby agree as follows: Section 1. Associate Member Status. is hereby made an Associate Member of the Authority for all purposes of the Agreement and the By-laws of the Authority, the provisions of which are hereby incorporated herein by reference. From and after the date of execution and delivery of this Associate Membership Agreement by and the Board of Directors of the Authority, shall be and remain an Associate member of the Authority. Section 2. Restrictions and Rests. shall not have the right, as an Associate Member of the Authority, to vote on any action taken by the Board of 6 Directors or by the Authority. In addition, no officer, employee or representative of shall have any right to become an officer or director of the Authority. Section 3. Effect of Prior Authority Actions. hereby agrees to be subject to and bound by all actions previously taken by the Board of Directors of the Authority to the same extent as the Members of the Authority are subject to and bound by such actions. Section 4. No Obligations. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of Section 5. Execution of the_Agreement. Execution of this Associate Membership Agreement shall satisfy the requirements of Section 12 of the Joint Powers Agreement and Section 5.2 of the By-laws of the Authority for participation by in all programs and other undertakings of the Authority, including, without limitation, any undertaking to finance the acquisition, construction, installation and/or equipping of public capital improvements; utilizing the professional, technical and other knowledge and expertise of Authority Members, their employees, contractors and/or consultants, in connection with the establishment, implementation and/or operation of a Community Choice Aggregation, and/or providing or obtaining financing in connection with other projects and programs which are in the public interest and of benefit to the Authority, Members and/or Associate Members. Section 6. Protect Agreement. Any benefits and/or responsibilities of the Associate Member shall be determined in a project -specific development agreement. IN WITNESS WHEREOF, the parties hereto have caused this Associate Membership Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above. Attest: Attest: Clerk Secretary 9 CALIFORNIA, a By: Title: CALIFORNIA CHOICE ENERGY AUTHORITY By: Title: CERTIFICATE OF SECRETARY I certify that I am the duly appointed and acting Secretary of the California Choice Energy Authority, created in accordance with the provisions of the Joint Exercise of Powers Act (Cal. Gov't. Code §§6500 et seq.); that these By-laws and the Associate Membership Agreement form, attached hereto as Exhibit "A" and incorporated into these By-laws by reference, consisting of a total of eight (8) pages, constitute the By-laws of this Authority as adopted by the Board of Directors on c2 /2 and that these By-laws have not been amended or modified since that date. Executed on at California. Attachment 3 Administrative Services Agreement CONFIDENTIAL DRAFT FOR DISCUSSION ONLY ADMINISTRATIVE SERVICES AGREEMENT (CITY OF BALDWIN PARD, Dated as of , 2019 between CALIFORNIA CHOICE ENERGY AUTHORITY, as Provider, and CITY OF BALDWIN PARK, as Customer 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY ADMINISTRATIVE SERVICES AGREEMENT (CITY OF BALDWIN PARK) This ADMINISTRATIVE SERVICES AGREEMENT (CITY OF BALDWIN PARK) (this "Agreement"), dated as of , 2019 (the "Effective Date"), is between California Choice Energy Authority, a California joint powers authority ("Provider"), and City of Baldwin Park, a municipal corporation and general law city organized and operating under the laws of the State of California ("Customer"). Provider and Customer are sometimes referred to in this Agreement individually as a "far " and collectively as the "Parties." RECITALS WHEREAS, pursuant to California Public Utilities Code (the "Code") Sections 366. 1, et. seq., Customer has been registered as a "community choice aggregator" ("CCA") (as defined in the Code), which has been established for the purpose of delivering community choice aggregation services to certain customers located within its boundaries; WHEREAS, pursuant to Code Section 366.2, Customer submitted its implementation plan detailing the process and consequences of community choice aggregation, and its statement of intent to establish electrical load aggregation, to the California Public Utilities Commission (the "CPUC"); WHEREAS, pursuant to Code Section 366.2, a community choice aggregator may enter into agreements for services to facilitate the sale and purchase of electricity and other related services; WHEREAS, Provider has also been registered as a CCA and has expertise and knowledge in the management and administration of community choice aggregation programs and maintains business relationships with multiple energy suppliers; WHEREAS, due to Provider's expertise and knowledge, Customer wishes to engage Provider as an independent contractor, during the Term of this Agreement, for the purpose of facilitating the purchase and sale of electricity and other related services on behalf of Customer and for performing certain other duties and services on the terms and conditions set forth herein; WHEREAS, Provider is willing to perform such duties and services for Customer on the terms and conditions set forth herein for a fee; NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: ARTICLE 1 DEFINITIONS 1.1 Definitions. As used in this Agreement, all capitalized terms shall have the respective meanings given to them in this Agreement and in Exhibit A (Schedule of Definitions). 2 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY 1.2 Construction. All references herein to an agreement shall be to this Agreement as amended, supplemented or modified from time to time. All references to a particular entity shall include a reference to such entity's successors and permitted assigns. The words "herein," "hereof' and "hereunder" and other words of similar import shall refer to this Agreement as a whole, including all appendices, annexes, exhibits and schedules, and not to any particular section or subsection of this Agreement. Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine and neuter genders. The words "includes" or "including" shall be deemed to be followed by the words "without limitation." All references to statutes and related regulations shall include any amendments of the same and any successor statutes and regulations. All exhibits and schedules to this Agreement are hereby incorporated herein by reference, including the following: (i) Exhibit A — Schedule of Definitions (ii) Exhibit B — Scope of Work (iii) Exhibit C — Fixed Fee Rate, Reimbursable Expenses and Notice Address (iv) Exhibit D — Authorization Documents (v) Exhibit E — Customer Approval Procedures (vi) Exhibit F — Form of Authorized Officer Approval (vii) Exhibit G — Joint Exercise of Powers Agreement and Amendments Thereto ARTICLE 2 ENGAGEMENT OF PROVIDER 2.1 Engagement of Provider. Customer hereby engages Provider as an independent contractor to perform certain administration, energy procurement, contract negotiation, contract administration, and resource planning services (as such Services are described herein) on behalf of Customer in connection with Customer's CCA program, and to perform certain other duties, all as set forth in this Agreement. In consideration of the fees and cost reimbursements payable to Provider hereunder, Provider accepts such engagement and agrees to perform the Services in accordance with the terms and conditions hereof. 2.2 Relationship. (a) Provider shall act as an independent contractor of Customer with respect to the performance of its obligations hereunder. Neither Provider nor its Affiliates, employees or Subcontractors (including Provider's legal counsel) or the employees of any such parties engaged in connection with the Services shall be deemed to be an agent, representative, employee, or servant of Customer. This Agreement is not intended to create, and shall not be construed to create, a relationship 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY of partnership or an association of profit between Customer and Provider. Provider is not admitted to practice law in any jurisdiction, and will not provide legal advice to Customer in connection with the performance of the Services. Provider is not licensed as a provider of accounting services, does not hold any certifications required to be held by those providing accounting services, and will not provide any services that require such licensing and certification. Provider is not licensed as a financial advisor, financial manager, insurance advisor, or insurance broker. (b) In the unanticipated event that Provider or any employee, agent, or subcontractor of Provider providing Services hereunder claims, or is determined by a court of competent jurisdiction or the California Public Employees Retirement System ("PERS"), to be eligible for enrollment in PERS as an employee of the Customer, Provider shall indemnify, defend, and hold harmless Customer for the payment of any employee and/or employer contributions for PERS benefits on behalf of Provider or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of Customer. (c) Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Provider and any of its employees, agents, and subcontractors providing Services hereunder shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by Customer, including but not limited to eligibility to enroll in PERS as an employee of Customer and entitlement to any contribution to be paid by Customer for employer contribution and/or employee contributions for PERS benefits. 2.3 Engagement of Third Parties. Provider may, subject to the other provisions of this Agreement, engage such Persons as it deems reasonably necessary and appropriate for the purpose of performing or carrying out any of the Services or its obligations under this Agreement;rop vided, however, that no such engagement shall relieve Provider of any of its obligations or liabilities under this Agreement, including those set forth in Article 7; androp vided further, that, except as provided herein, Provider's use of such Persons shall not modify or increase the compensation payable to Provider pursuant to Article 5. Except as expressly set forth herein, nothing in this Agreement shall be construed to create any contractual relationship between any such Person (including Provider's legal counsel) and Customer. ARTICLE 3 TERM AND RENEWAL 3.1 Term. (a) Unless earlier terminated in accordance with Article 8, the term of this Agreement shall commence on the Effective Date and shall continue for a period equal to the longer of (i) three (3) years from the Effective Date (as defined under the Original Agreement), or (ii) the longest term of any Energy Contract that Provider has entered into on behalf of Customer (the "Base Term"), and the performance of all obligations under such Energy Contract, (as such period may be extended pursuant to Section 3.1(b), the "Term"). 4 33073648vl CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (b) Unless sooner terminated as set forth in Article 8, at the expiration of the Base Term, the term of this Agreement shall be automatically extended until such time as a Party provides written notice to the other Party that it elects to terminate this Agreement pursuant to Article 8 (such written notice, a "Termination Notice"). Following receipt by such other Party of a Termination Notice, this Agreement shall terminate as set forth in Section 8.4. (c) For purposes of greater clarity, the definition of "Term" shall include the Base Term and the renewal term of this Agreement as set forth in Section 3.1(b). ARTICLE 4 DUTIES OF PROVIDER 4.1 Services. During the Term, Provider shall perform the administration, energy procurement, contract negotiation, contract administration, resource planning services and other services identified in the Scope of Work set forth in Exhibit B hereto or as otherwise agreed to by the Parties pursuant to the terms hereof (the "Services"). The Services shall be comprised of those services identified in the Scope of Work Exhibit as "Fixed Fee Services" (collectively, the "Fixed Fee Services") and those services to be performed on behalf of Customer and identified in the Scope of Work Exhibit as "Reimbursable Services" (collectively, the "Reimbursable Services"). 4.2 General Operating Standards. Provider shall perform the Services in a good, workmanlike, and commercially reasonable manner in accordance with the requirements of this Agreement and Applicable Laws. Provider shall use commercially reasonable efforts to cause the Services to be planned and performed in a timely and cost-effective manner. Provider shall fully cooperate with Customer with respect to the requirements relating to applicable provisions of the Authorization Documents that relate to the tasks to be completed by Customer on or before the date requested by Customer. 4.3 Personnel. Provider's administration personnel as a group, including any Persons engaged by Provider pursuant to Section 2.3, shall be qualified in administering services related to community choice aggregation programs, possess any certification(s) or license(s) necessary or required by law to perform the service, and experienced in the duties to which they are assigned. ARTICLE 5 FEES AND COST REIMBURSEMENT 5.1 Fixed Fees. (a) As compensation for performing the Fixed Fee Services, Customer shall pay Provider a monthly fee during the Term (the "Fixed Fee"). The "Fixed Fee Rate" identified on Exhibit C is the estimated initial amount of the Fixed Fee, which shall be adjusted based upon the actual number of enrollments and then adjusted thereafter pursuant to Section 5.1(b). The Fixed Fee shall reflect Customer's share of the costs of the Fixed Fee Services, which shall be determined based on the pro - rata share of Customer's Bundled Load compared to the aggregate Bundled Load for all Provider's 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY members, determined each fiscal year by Provider. The Fixed Fee is payable in accordance with Section 5.3 and does not include amounts payable under Energy Contracts or the Security Documents. (b) The Fixed Fee shall be adjusted automatically as follows: (i) No later than July 1, 2021 Provider may, on a one time basis, update the Fixed Fee Services amount to reflect actual costs incurred or expected to be incurred in providing the Fixed Fee Services, subject to providing prior written notice and supporting written documentation to Customer and a cap of five percent (5%) on any increase to Customer's then current Fixed Fee; (ii) Commencing on July 1, 2022, and every July 1 thereafter during the Term of this Agreement, Provider may increase the Fixed Fee to reflect reasonable cost increases incurred by Provider in providing the Fixed Fee Services up to, but not in excess of, three percent (3%) of the Fixed Fee amount applicable to the immediately preceding fiscal year, subject to providing prior written notice and supporting written documentation to Customer; and (iii) Within ninety (90) days after a change in membership of Provider, Provider shall recalculate the Fixed Fee based on the then current amount of Fixed Fee Services and the recalculated Fixed Fee shall be applied and payable on a prospective basis. Any requests to increase the Fixed Fee above the three percent (3%) amount allowed in 5.1(b)(ii) will be subject to the prior written approval of Customer, which the Customer may refuse to grant in its reasonable discretion. If Customer does not approve such a request, however, Provider reserves the right to review and adjust the scope of Services in a reasonable manner to compensate for any unapproved Fixed Fee increases. 5.2 Reimbursable Expenses. During the Term, Customer shall reimburse Provider for the expenses actually incurred by Provider in connection with the performance of the Reimbursable Services described in Paragraph B in the Scope of Work (the "Reimbursable Expenses"). (a) The Reimbursable Expenses shall be allocated to Customer as follows: (i) Data management fees will be allocated to Customer on the basis of the Customer's total number of electric service accounts multiplied by the per account maintenance fee invoiced by the Data Management service provider. (ii) Fees and costs for Professional Services and Legal Services incurred in performance of the Reimbursable Services for the benefit of Provider's members generally will be allocated among all Provider members (including Customer) on an equal basis. (iii) Fees and costs for Professional Services, Legal Services, and Supplemental Procurement Services incurred solely on behalf of Customer will be directly assigned to and payable by Customer. (b) The Reimbursable Expenses incurred by Provider shall be invoiced and payable as set forth in Section 5.3. 6 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY 5.3 Invoicing and Payment Procedures. (a) Except as required by Section 5.3(c) below, the Fixed Fee and the Reimbursable Expenses shall be payable for each month not later than thirty (30) days following receipt of a Payment Invoice (each such date, a "Payment Date") and shall be prorated for any partial monthly period at the beginning and end of the Term, with such prorations based on a thirty (30) day calendar month. Invoiced amounts will be paid by wire transfer of immediately available funds to Provider at an account designated in writing by Provider. Notwithstanding the foregoing, the Parties may agree to a different payment due date for the Supplemental Procurement Services portion of the Reimbursable Expenses. (b) Provider shall submit invoices to Customer at least ten (10) Business Days prior to the relevant Payment Date for the Fixed Fee and Reimbursable Expenses that are due and payable on such Payment Date. Invoices ("Payment Invoice") by Provider shall be sent to Customer at the address(es) set out in Exhibit C. (c) Once Customer has maintained a positive cash flow for three (3) consecutive months, Provider may submit invoices to Customer and to the collateral agent for payment from the lockbox account established pursuant to the Security Documents not less than ten (10) Business Days prior to the relevant Payment Date for the Fixed Fee and Reimbursable Expenses that are due and payable on such Payment Date. The terms and conditions for payment of any Payment Invoice to be paid from the lockbox account shall be governed by the Security Documents. (d) Either Party may, in good faith, dispute the correctness of any invoice, bill, charge, or any adjustment to an invoice, rendered under this Agreement, or adjust any invoice for any arithmetic or computational error within twelve (12) months of the date the invoice, bill, charge, or adjustment to an invoice, was rendered. If a Payment Invoice or portion thereof, or any other claim or adjustment arising thereunder, is disputed, payment of the undisputed portion of the Payment Invoice shall be required to be made when due, with written notice of the objection given to the other Party. Any invoice dispute or invoice adjustment shall be in writing and shall state the basis for the dispute or adjustment. Payment of the disputed amount (the "Disputed Payment") shall not be required until the dispute is resolved. The Parties shall use commercially reasonable efforts to resolve the Disputed Payment within ten (10) Business Days of receipt of the notice of the Disputed Payment. Once the Parties agree on a resolved payment amount (the "Resolved Payment Amount"), Provider shall cause the next monthly Payment Invoice to reflect a credit or charge, as appropriate, based on the resolution of the payment dispute, in the amount of the Resolved Payment Amount. In the event the Parties are unable to resolve a payment dispute within ten (10) Business Days, the lesser amount shall be deemed due payable unless and until a different amount is identified following conclusion of the dispute resolution provisions in Article 12, or a court of competent jurisdiction orders otherwise. 5.4 Records and Audits. (a) Except as otherwise required by Applicable Laws, Provider shall keep books and records in accordance with generally accepted accounting principles with respect to Services performed for a period of three (3) years after the applicable creation date of such book or record; or any such longer period as may be required by law. (b) Upon no less than seventy-two (72) hours' notice to Provider, Provider shall make such books and records related to the Services available for inspection and audit by Customer or its designated agents at Customer's expense during Regular Work Hours and at the office where such 7 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY books and records are kept;rop vided that Provider's company software, books and records not directly related to this Agreement shall not be subject to inspection or audit. (c) If any such inspection or audit discloses that any error has occurred and that, as a result thereof, any overpayment or any underpayment has occurred, the amount thereof shall promptly be paid with interest at the rate set forth in Section 5.5 to the Party to whom it is owed by the other Party;rop vided that Provider or Customer, as applicable, shall only be liable for any amounts hereunder that relate to a period within twelve (12) months of the date of the inspection or audit conducted by Customer. 5.5 Past Due Amounts. Any amounts due under this Agreement, if not timely paid by the Party from whom they are due, shall bear interest at the per annum rate equal to the Prime Rate (as published in The Wall Street Journal) plus one and one-half percent (1.50/o), prorated on the basis of a 365 -day year (or such lower rate as is the maximum rate permitted by Applicable Law) from the date that such amount was due and payable (taking into account any grace period herein provided) until the time that such amount is paid. ARTICLE 6 REPRESENTATIONS AND WARRANTIES; COVENANTS 6.1 General Representations and Warranties. Each Party, for itself only, hereby represents and warrants to the other Party hereto, as of the date hereof, that: (a) It is an entity duly organized, validly existing and in good standing under the applicable laws of the jurisdiction in which it was formed. (b) It has the requisite power and authority to enter into this Agreement and to perform its obligations hereunder (including with respect to any indemnity obligations hereunder), and the execution, delivery and performance hereof do not and will not contravene any Applicable Law, or any order of any court or Governmental Authority or agency applicable to or binding on it or any of its properties, or contravene the provisions of, or constitute a default under, its organizational documents or any indenture, mortgage, contract or other agreement or instrument to which it is a party or by which it or any of its property is bound or affected. (c) This Agreement has been duly authorized by all necessary actions on the part of such Party and the execution, delivery and performance by such Party of this Agreement do not require any approval not already obtained by it or any approval or consent not already obtained of any trustee or holders of indebtedness or obligations of such Party. (d) No authorization or approval or other action by, and no notice to or fling with, any Governmental Authority or regulatory body is required for the due execution, delivery or performance by such Party of this Agreement. (e) The execution, delivery and performance of this Agreement have been duly authorized by all requisite entity actions. 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (f) The person signing this Agreement is authorized to execute this Agreement on behalf of, and to bind, the applicable Party. (g) Assuming the due authorization, execution and delivery of this Agreement by the other Parties hereto, this Agreement constitutes its valid and binding obligation, enforceable against it in accordance with its terms, except to the extent such enforceability is limited by bankruptcy, insolvency, moratorium or similar laws affecting or relating to the enforcement of creditors' rights generally and by general equitable principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). (h) There are no pending or, to such Party's knowledge, threatened actions or proceedings against such Party before any court or administrative agency which would materially adversely affect such Party's ability to perform its obligations hereunder. 6.2 Additional Customer Representations and Warranties. (a) Delegation of Authority and Authorization Documents. Customer has taken and performed all acts necessary, and has received all necessary authorizations, approvals or other actions required by, and has made all necessary filings with, any Governmental Authority that is required for the (i) delegation of authority to Provider as contemplated hereby (ii) filing with Provider an executed counterpart of the JPA and (iii) adoption of a resolution of its governing body approving the JPA and the execution and delivery thereof. The Authorization Documents represent a true, complete and accurate list of all such necessary authorizations, approvals, actions and filings and Customer has provided true, complete and accurate copies of the Authorization Documents to Provider as of the Effective Date. Other than the Authorization Documents, there are no other authorizations, approvals, filings or other actions required for Customer to enter into this Agreement, perform its obligations hereunder and delegate authority to Provider to perform the Services. (b) Security Documents and Ancillary Documents. Subject to Provider's compliance with the Customer Approval Procedures and, in connection with any Energy Contract entered into on behalf of Customer, Provider is authorized to (i) enter into Energy Contracts on behalf of Customer, (ii) grant to the counterparties to any such Energy Contracts a first priority security interest in any amounts received from the Utility, Customer or the end-users in Customer's territory pursuant to such Energy Contracts (as contemplated in the Security Documents), (iii) arrange for any funds received from the Utility, Customer or such end-users in connection with such Energy Contracts to be deposited into a lockbox account pledged to the counterparties to any such Energy Contract and be paid to any such counterparties in accordance with the terms and conditions of such Energy Contracts and the Security Documents, and (iv) enter into any needed ancillary documentation required in connection with the execution, performance or administration of the Energy Contracts, the Security Documents or in connection with the provision of the Services. (c) Authorized Officer. Customer has designated the Authorized Officer to approve Provider's execution of Energy Contracts as set forth in and subject to the Customer Approval Procedures, on behalf of Customer, for the purchase of energy and renewable energy and Customer has authorized the Authorized Officer to provide any such approval in the form attached hereto as Exhibit F. Upon receipt of the Authorized Officer's approval of any Energy Contract or other action, Provider is authorized to enter into such Energy Contract or perform such action on behalf of Customer. 6.3 Customer Covenants. Customer covenants and agrees as follows: E 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (a) Authorizing_ Documents. Customer shall maintain the Authorization Documents in full force and effect throughout the Term and shall immediately inform Provider of any change to the identity of the Authorized Officer hereunder or to the Authorization Documents that may affect the ability of Provider to perform its obligations hereunder. (b) Collateral Agent's Determinations. In performing the Services hereunder, Provider may rely upon the authorizations and instructions received from the Authorized Officer (if such authorization is required pursuant to the Customer Authorization Procedures) and may rely on the accuracy of the Customer Approval Procedures. Provider shall have no liability to Customer for actions taken in reliance on authorizations or instructions received by the Authorized Officer or in compliance with the Customer Approval Procedures. Until such time as Customer instructs Provider in writing that an individual is no longer an "Authorized Officer" hereunder, Provider shall have no duty to inquire as to the authority of such Authorized Officer to provide the authorizations or instructions in connection with the Services. In the event that Provider is at any time unsure as to the identity of the Authorized Officer hereunder, Provider may request written instructions from Customer as to the course of action to be adopted by Provider and Provider shall be entitled to conclusively rely upon such written instructions without liability to Customer or any other Person. (c) Data Access. If requested by Provider, Customer shall assist Provider in obtaining information regarding Customer's end-users from the Utility, including the number of end- user customers that form part of Customer's community choice aggregation program, the energy consumption, load shapes and usage data of such end-users and the proportional share of such end- users in Customer's territory. (d) Customer Rates. Customer shall establish and maintain end-user customer rates designed to generate revenues sufficient to satisfy the overall revenue requirement for Customer, including timely payment of all Customer's obligations under this Agreement, all Energy Contracts and the Security Documents. 6.4 Response Time. (a) Customer Response Time. (i) In all circumstances where Provider requests the approval, consent or cooperation of Customer to any action (or inaction) hereunder, Customer shall consider and respond to such request with reasonable promptness as is feasible under the circumstances. (ii) Provider will exercise commercially reasonable efforts to provide as much advance notice of such request as is reasonable given the prevailing circumstances and the nature of the matters for which a response is requested. (iii) If Provider is prevented from performing its obligations under this Agreement as the result of an unreasonable delay on the part of Customer to provide a required response required pursuant hereto, then Provider's obligations hereunder shall be excused until such time as Customer provides its required response. (b) Provider Response Time. 33073648v1 10 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (i) With respect to the provision of the Services, Provider shall promptly respond to any request or direction from or on behalf of Customer and to any event that requires action by Provider pursuant to this Agreement within the time frame by which such response is required hereunder. ARTICLE 7 INDEMNIFICATION 7.1 Indemnification by Provider. (a) Subject to Section 7.1(b), Provider shall defend, indemnify and hold harmless each Customer Indemnified Party from and against any and all Claims incurred or asserted against such Customer Indemnified Party arising out of or otherwise in connection with Provider's gross negligence, bad faith, recklessness or willful misconduct in connection with the performance of the Services hereunder, including any Claims relating to any liability resulting from any violation of or noncompliance with any Applicable Law to be complied with by Provider hereunder. Provider's obligations under this paragraph shall include all costs (including but not limited to attorneys fees) incurred in performing the same. Customer may employ counsel at its own expense with respect to any claims or demands asserted or sought to be collected against it;rop vided, if counsel is employed because Provider does not assume control of the defense, Provider will bear the reasonable expenses of Customer's counsel. (b) Notwithstanding anything to the contrary in the foregoing, Provider shall not be required to defend, indemnify or hold harmless any Customer Indemnified Party from and against, and no Customer Indemnified Party shall be exculpated from, any Claims to the extent such Claims (i) are caused by or arise from the breach of this Agreement by Customer or the gross negligence, bad faith, recklessness or willful misconduct of such Customer Indemnified Party; (ii) relate to changes to the market rate for electricity, including the fact that, from time to time, negotiated rates under Energy Contracts entered into by Provider on behalf of Customer may be higher than rates charged by the Utility, (iii) relate to defaults under the Energy Contracts that are not caused by Provider's gross negligence, bad faith, recklessness or willful misconduct, or (iv) are the result of a change in governmental regulation or a change in Applicable Law. 7.2 Indemnification by Customer. (a) Subject to Section 7.2(b), Customer shall defend, indemnify and hold harmless each Provider Indemnified Party from and against any and all Claims incurred or asserted against such Provider Indemnified Party arising out of or otherwise in connection with this Agreement and/or Provider's entry into any Energy Contract on behalf of Customer or the end-users in Customer's territory, including any Claims resulting from (i) the failure of Customer (or the end-users in its territory) to make payments with respect to an Energy Contract, or (ii) a default by Provider under any Energy Contract entered into pursuant hereto that is the result of an act or omission of Customer. Customer's obligations under this paragraph shall include all costs (including but not limited to attorneys fees) incurred in performing the same. Provider may employ counsel at its own expense with respect to any claims or demands asserted or sought to be collected against it;rop vided, if counsel is employed because Customer does not assume control of the defense, Customer will bear the reasonable expenses of Provider's counsel. 11 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (b) Notwithstanding anything to the contrary in the foregoing, Customer shall not be required to defend, indemnify or hold harmless any Provider Indemnified Party from and against, and no Provider Indemnified Party shall be exculpated from, any Claims to the extent caused by or arising from the breach of this Agreement by Provider or the gross negligence, bad faith, recklessness or willful misconduct of such Provider Indemnified Party. 7.3 Indemnification Procedure. (a) After receipt by an Indemnified Party of notice of the commencement of any Claim that is indemnifiable by Provider under Section 7.1 or Customer under Section 7.2 (as applicable, in such capacity, the "Indemnifying Party"), such Indemnified Party shall give prompt written notice to the relevant Indemnifying Party of the commencement thereof. The failure to promptly notify such Indemnifying Party shall not relieve the Indemnifying Party of any liability that it may have to any Indemnified Party with respect to such action;rop vided that, to the extent that any such failure to provide prompt notice is responsible for an increase in the indemnity obligations of the Indemnifying Party, the Indemnifying Party shall not be responsible for any such increase. (b) When required to indemnify an Indemnified Party in accordance with this Article 7, the relevant Indemnifying Party shall assume on behalf of such Indemnified Party and conduct with due diligence and in good faith the defense of any Claim against such Indemnified Party, whether or not the Indemnifying Party shall be joined therein, and the Indemnified Party shall cooperate with the Indemnifying Party in such defense. (c) The Indemnifying Party shall have charge and direction of the defense and settlement of such Claim; provided, however, that without relieving the Indemnifying Party of its obligations hereunder or impairing the Indemnifying Party's right to control the defense or settlement thereof, the Indemnified Party may elect to participate through separate counsel in the defense of any such Claim, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the employment of counsel by such Indemnified Party has been authorized in writing by the Indemnifying Party, (ii) the Indemnified Party shall have reasonably concluded that there exists a material conflict of interest between the Indemnifying Party and such Indemnified Party in the conduct of the defense of such Claim (in which case the Indemnifying Party shall not have the right to control the defense or settlement of such Claim on behalf of such Indemnified Party) or (iii) the Indemnifying Party shall not have employed counsel to assume the defense of such Claim within a reasonable time after notice of the commencement thereof. In each of such cases the reasonable fees and expenses of counsel shall be at the expense of the Indemnifying Party. (d) The Indemnifying Party shall obtain the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed) before entering into a settlement of or ceasing to defend such claim or action if, pursuant to or as a result of such settlement or cessation, injunctive or equitable relief or other non -monetary relief, remedy or arrangement will be imposed against the Indemnified Party or if the Indemnifying Party will not fully pay or satisfy all amounts payable with respect to such proceeding or settlement. In no event shall the Indemnifying Party be required to indemnify an Indemnified Party with respect to amounts paid in settlement of a claim unless such claim was settled with the consent of the Indemnifying Party. 7.4 Limitations of Liability. 12 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (a) Total Limitation of Liability. Except for amounts payable as provided in Section 7.1 (Indemnification by Provider) and Section 2.2(b), and except for amounts payable as a result of any reckless, willful or criminal conduct by Provider or its Affiliates or any of their employees, agents, officials, Subcontractors or independent contractors, Provider's total liability under this Agreement to Customer Indemnified Parties on all Claims of any kind, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, for all losses or damages arising out of, connected with, or resulting from this Agreement or from the performance or breach thereof, or from any services covered by or furnished during the Term of this Agreement shall with respect to any fiscal year in no case exceed one hundred percent (100%) of the value of the Fixed Fee payable in such fiscal year. Similarly, except for amounts payable as provided in Section 7.2 (Indemnification by Customer), Customer's total liability under this Agreement to Provider Indemnified Parties on all Claims of any kind, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, for all losses or damages arising out of, connected with, or resulting from this Agreement or from the performance or breach thereof, or from any services covered by or furnished during the Term of this Agreement shall with respect to any fiscal year in no case exceed one hundred percent (100%) of the value of the Fixed Fee payable in such fiscal year. (b) No Liability for Energy Contracts. Customer acknowledges that Provider will be entering into Energy Contracts on behalf of Customer and the end-users in Customer's territory. Customer acknowledges and agrees that neither Provider nor any member of Provider shall be liable for the amount of any shortfall between the payments due to the counterparty under such Energy Contracts and the amount received from such end-users unless such shortfall is the result of the gross negligence, willful misconduct, conversion, misappropriation or theft on the part of Provider. (c) Waiver of Consequential Damages. Except in connection with indemnification for third -party Claims or Claims resulting from gross negligence or willful misconduct, in no event, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, shall a Party or its respective Affiliates be liable for special, incidental, exemplary, indirect or consequential damages. 7.5 Survival. Notwithstanding any other provision of this Agreement, the provisions of this Article 7 are intended to and shall survive termination of this Agreement. ARTICLE 8 TERMINATION 8.1 Termination by Customer. (a) Termination for Cause. (i) Without limiting any other rights or remedies it may have, Customer shall be entitled to terminate this Agreement for cause by delivery of a Termination Notice to Provider in connection with the occurrence of any of the following events: 13 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (1) Provider fails to make any payment required to be made by Provider to Customer hereunder when such payment is due and owing under this Agreement, and such failure shall continue for ten (10) calendar days after written notice thereof has been given to Provider. (2) Provider has filed against it petitions under any insolvency or bankruptcy Law of any jurisdiction which are not dismissed within ninety (90) calendar days of the date filed, proposes any dissolution, liquidation, composition, financial reorganization or recapitalization with creditors, makes a general assignment for the benefit of creditors, files a voluntary petition in bankruptcy under any provision of Applicable Law or consents to the filing of any bankruptcy or reorganization petition against it under any similar law, or if receivers, trustees, custodians or similar agents are appointed or take possession with respect to any property or business of Provider. (3) Provider fails to comply (other than for Force Majeure reasons) in any material respect with any term, provision or covenant of this Agreement, other than the payment of sums to be paid hereunder, and such failure shall continue for thirty (30) calendar days after written notice thereof has been given to Provider; provided, however, that if such failure cannot reasonably be cured within said thirty (30) day period and Provider has diligently commenced the cure of such failure within said period, then Provider shall have a commercially reasonable additional period of time to cure such default not to exceed an additional one hundred eighty (180) days. (4) Provider assigns this Agreement in violation of the provisions of Section 13.6. (ii) Notwithstanding the foregoing, Customer shall not have the right to terminate this Agreement pursuant to this Section 8.1(a) if the occurrence of any of the events or conditions described in this Section 8.1(a) is the result of Customer's bad faith, willful misconduct or gross negligence. (b) Termination for Convenience. Notwithstanding anything to the contrary in this Agreement, Customer shall be entitled to terminate this Agreement or any part of the Services for convenience, at Customer's sole discretion with or without cause, by delivery of a Termination Notice to Provider at any time after the expiration of the Base Term. (c) Timing of Termination. If Customer delivers a Termination Notice to Provider pursuant to Section 8.1(a) or 8.].Lb), this Agreement shall terminate as set forth in Section 8.4. 8.2 Termination by Provider. (a) Termination for Cause. (i) Without limiting any other rights or remedies it may have, Provider shall be entitled to terminate this Agreement for cause by delivery of a Termination Notice to Customer in connection with the occurrence of any of the following events: 14 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (1) Customer has failed to make any undisputed payment required to be made to Provider under this Agreement and such failure is not remedied within ten (10) calendar days after the date on which Customer has received notice of such failure to make such payment. (2) Customer has fled against it petitions under any insolvency or bankruptcy law of any jurisdiction which are not dismissed within ninety (90) calendar days of the date fled, proposes any dissolution, liquidation, composition, financial reorganization or recapitalization with creditors, makes a general assignment for the benefit of creditors, files a voluntary petition in bankruptcy under any provision of Applicable Law or consents to the filing of any bankruptcy or reorganization petition against it under any similar law, or if receivers, trustees, custodians or similar agents are appointed or take possession with respect to any property or business of Customer. (3) Customer fails to establish or maintain end-user customer rates in compliance with Section 6.3(d), as reasonably determined by Provider, and fails to establish such rates within sixty (60) calendar days after written notice thereof has been given to Customer; provided, however, that if Customer has sent notice of a rate increase and is awaiting council action, then Customer shall have a commercially reasonable additional period of time to cure such default not to exceed an additional one hundred eighty (180) calendar days. (4) Customer assigns this Agreement in violation of the provisions of Section 13.6. (5) Customer fails to comply (other than for Force Majeure reasons) in any other material respect with any term, provision or covenant of this Agreement, other than the payment of sums to be paid hereunder, or as otherwise provided above, and such failure continues for sixty (60) calendar days after written notice thereof has been given to Customer; provided, however, that if such failure cannot reasonably be cured within said sixty (60) day period and Customer has diligently commenced the cure of such failure within said period, then Customer shall have a commercially reasonable additional period of time to cure such default not to exceed an additional ninety (90) calendar days. (ii) Provider shall not have the right to terminate this Agreement pursuant to this Section 8.2(a) if the occurrence of any of the events or conditions described in this Section 8.2(a) is the result of Provider's bad faith, willful misconduct or gross negligence. (b) Termination for Convenience. Notwithstanding anything to the contrary in this Agreement, Provider shall be entitled to terminate this Agreement or any part of the Services for convenience, at Provider's sole discretion with or without cause, by delivery of a Termination Notice to Customer at any time after the expiration of the Base Term; provided that no Termination Notice shall be effective for at least thirty (30) calendar days following Customer's receipt of the same, or any such longer period as my be indicated in the Termination Notice. 15 33073648x1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (c) Timing of Termination. If Provider delivers a Termination Notice to Customer pursuant to Section 8.2(a) or 8.2 b , this Agreement shall terminate as set forth in Section 8.4. 8.3 Cooperation Upon Termination. In connection with any termination of this Agreement in accordance herewith, at the reasonable request of Customer, Provider shall cooperate with Customer to provide for the orderly transition of the performance of the Services to a replacement administrator, including the transfer of documentation and data access, in a manner that shall not prejudice Customer or hamper Customer's ability to receive the Services and the benefits thereof from a replacement administrator after a smooth and timely transition. 8.4 Effect of Termination; No Prejudice. (a) Effect of Termination. Subject to Section 8.4(b) below, if Customer or Provider delivers a Termination Notice in accordance with, and as permitted by, this Agreement, then this Agreement shall terminate on the later to occur of (i) ninety (90) calendar days from the date of such Termination Notice and (ii) the date on which all of the Energy Contracts to which Provider is a party on behalf of Customer on the date of such Termination Notice have terminated in accordance. with their respective terms. (b) No Prejudice. Termination of this Agreement shall not affect any rights or obligations as between the Parties that may have accrued prior to such termination or that expressly or by implication are intended to survive termination whether resulting from the event giving rise to termination or otherwise. In addition, except as expressly provided for herein, termination of this Agreement for any reason shall be without prejudice to Provider's right to receive a proportional amount of the Fixed Fees or payment of any outstanding Reimbursable Expenses as of the date of termination. Except as otherwise set forth in this Agreement, remedies are cumulative and the exercise of, or failure to exercise, one or more remedies by a Party shall not limit or preclude the exercise of, or constitute a waiver of, other remedies provided for under this Agreement by such Party. For breach of any provision of this Agreement for which an express remedy or measure of damages is herein provided, (i) such express remedy or measure of damages shall be the sole and exclusive remedy hereunder, (ii) the liability of the Party that has committed such breach shall be limited as set forth in such provision and (iii) the Parties hereby waive all other remedies or damages at law or in equity with respect to such breach. If no remedy or measure of damages is expressly provided herein with respect to a breach of any provision of this Agreement, the liability of the Party that has committed such breach shall be limited to direct actual damages only; provided that this limitation shall not apply to (A) Provider's obligation with respect to indemnifying and holding harmless each Customer Indemnified Party to the extent of any amount owed to a third party other than a Customer Indemnified Party, if any, or (B) Customer's obligation with respect to indemnifying and holding harmless each Provider Indemnified Party to the extent of any amount owed to a third party other than an Provider Indemnified Party. ARTICLE 9 FORCE MAJEURE 9.1 Force Majeure. 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY (a) Notwithstanding any other provision of this Agreement, each Party's obligations under this Agreement shall be suspended by any Force Majeure if and to the extent that such Party is prevented or delayed from performing by reason of the Force Majeure; provided, however, that: (i) the suspension of performance shall be of no greater scope and of no longer duration than is necessarily caused by the Force Majeure and required by any remedial measures; (ii) no obligations of any Party that arose before the occurrence of Force Majeure shall be excused as the result of the occurrence; and (iii) each Party shall use commercially reasonable efforts to remedy its inability to perform;rop vided, further, that no Force Majeure shall excuse any payment obligations of either Provider or Customer otherwise due hereunder. (b) If the performance by a Party of its obligations under this Agreement is affected by any Force Majeure, such Party shall as soon as practicable notify the other Parties of the nature and extent thereof. ARTICLE 10 NOTICES 10.1 Notices. (a) All notices and other communications required or permitted by this Agreement or by Applicable Law to be served upon or given to a Party by any other Party shall be deemed duly served, given and received (i) on the date of service if served personally or if sent by facsimile transmission or electronic mail during Regular Work Hours (each with appropriate confirmation of receipt) to the Party to whom notice is to be given, or (ii) on the fourth (4th) day after mailing, if mailed by first class registered or certified mail, postage prepaid or (iii) on the next day if sent by a nationally recognized courier for next day service and so addressed and if there is evidence of acceptance by receipt addressed to the address(es) set forth in Exhibit C. (b) The Parties, by like notice in writing, may designate, from time to time, another address or office to which notices shall be given pursuant to this Agreement. ARTICLE 11 CONFIDENTIALITY 11.1 General Confidential Information. (a) Except as otherwise provided in this Agreement, without the prior written consent of the other Parties hereto, no Party shall disclose Confidential Information (as defined below) received in connection with the performance of the Services. (b) Each Party that receives any Confidential Information from the disclosing Party shall use the same degree of care that it uses to protect its own confidential information of like 17 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY nature, but no less than a reasonable degree of care, to maintain in confidence the Confidential Information of the disclosing Party. (c) No Party shall have any obligation under this Section 11.1 with respect to any information that: (i) at the time of disclosure is in the public domain, or thereafter becomes part of the public domain, in each case through a source other than the receiving Party in violation of this Agreement; (ii) is subsequently learned by receiving Party from a third party that, to the knowledge of the receiving Party, is not under an obligation to keep such information confidential; (iii) was known to the receiving Party at the time of disclosure to be without confidentiality restrictions, as can be demonstrated by contemporaneous written evidence; (iv) is generated independently by the receiving Party without reference to the Confidential Information of the disclosing Party, as can be demonstrated by contemporaneous written evidence, or (v) is required to be disclosed pursuant to Applicable Law, regulation, subpoena, court order or other legal process or professional requirements, or in connection with the enforcement of the receiving Party's rights under this Agreement. Prior to any such disclosure, the disclosing Party shall, to the maximum extent possible, provide reasonable notice to the other Party, with adequate time (to be judged based upon the facts and circumstances surrounding the disclosure) for the non -disclosing party to seek court intervention if it should so elect in its sole and absolute discretion. (d) For purposes of this Agreement, "Confidential Information" shall mean all end-user customer specific information, including energy consumption, and market sensitive data, including non-public wholesale energy pricing disclosed in connection with negotiation or procurement of energy or related products under Energy Contracts in connection with the Services whether or not such information was owned or developed by the disclosing Party, which the receiving Party may obtain knowledge of, through or as a result of the relationship established hereunder with the disclosing Party. (e) Provider shall obtain written approval from Customer in connection with any press release or promotional materials that reference the relationship established through this Agreement and such Parties shall agree on the form and content of such press release. 11.2 Limited Disclosure of Confidential Information. Notwithstanding the provisions of Section 11. 1, Provider shall be entitled to the extent necessary for the performance of its duties hereunder to allow access to the Confidential Information to such of its employees and consultants who are directly concerned with the carrying out of Provider's duties under this Agreement, provided that Provider shall inform each of such Persons of the confidential nature of, and Provider's obligation of confidentiality with respect to, such Confidential 18 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY Information and such employees and consultants shall agree to keep the Confidential Information confidential in accordance with the terms of this Agreement. ARTICLE 12 DISPUTE RESOLUTION 12.1 Negotiations. The Parties shall attempt in good faith to resolve all disputes promptly by negotiation, as set forth below. (a) A Party may give another Party written notice of any dispute between such Parties that has not been resolved in the normal course of business. Representatives of such Parties at levels one level above the personnel who have previously been involved in the dispute shall meet at a mutually acceptable time and place within ten (10) Business Days after delivery of such notice, and thereafter as often as they reasonably deem necessary, to exchange relevant information and to attempt to resolve the dispute. (b) If such representatives are unable to resolve, or do not anticipate being able to resolve, the dispute within twenty (20) calendar days after receiving notice of such dispute, either Party may initiate legal proceedings in a court of competent jurisdiction as provided in Section 13.2. (c) If a Party intends to be accompanied at a meeting by an attorney, the other Party shall be given at least three (3) Business Days' notice of such intention so that the other Party may also be accompanied by an attorney. All negotiations pursuant to this Section 12.1 are confidential and shall be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and applicable state rules of evidence. Each Party shall bear its own costs for this dispute resolution phase. 12.2 Continued Prosecution of the Work. In case of any dispute, Provider shall continue to diligently perform its obligations under this Agreement, and, without limiting the generality of the foregoing and subject to Section 5.3(c), Customer shall continue to make payments to Provider for those portions of the Services performed hereunder that are not the subject of dispute in accordance with this Agreement. ARTICLE 13 MISCELLANEOUS 13.1 Execution. This Agreement may be executed in any number of counterparts and by the different Parties on separate counterparts, each of which, when so executed and delivered (including by electronic mail), shall be an original, but all such counterparts shall together constitute but one and the same instrument. 13.2 Governing Law; Venue and Jurisdiction. 19 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES. ANY LITIGATION ARISING HEREUNDER SHALL BE SUBJECT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE STATE OF CALIFORNIA AND VENUE SHALL BE IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA OR THE SUPERIOR COURT FOR THE STATE OF CALIFORNIA LOCATED IN RIVERSIDE COUNTY. ANY OF THE FOREGOING COURTS SHALL HAVE PERSONAL JURISDICTION OVER THE PARTIES HERETO. EACH PARTY WAIVES ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE AND WAIVES ANY RIGHT TO COMMENCE ANY ACTION AGAINST THE OTHER PARTY IN ANY OTHER JURISDICTION. 13.3 Intentionally Omitted. 13.4 Amendments, Supplements, Etc. Neither this Agreement nor any of the terms hereof may be amended, supplemented, or modified orally, but only by an instrument in writing signed by Provider and by Customer. 13.5 Headings. The headings of the Articles and Sections of this Agreement have been inserted for convenience of reference only and shall not modify, define or limit any of the terms or provisions hereof. 13.6 Assignment. (a) Neither Party may assign, pledge or otherwise transfer this Agreement without the prior written consent of the other Party. (b) Any attempted assignment, pledge or other transfer in violation of this Section 13.6 shall be null and void. 13.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties, and their respective successors and assigns, to the extent that assignment is permitted hereunder. 13.8 Other Customers. Nothing in this Agreement shall be construed to prevent or prohibit Provider from providing the same or similar services to any Person not a Party to this Agreement and from entering into a form of agreement substantially similar to this Agreement with any such Persons;rop vided that the provision of such services does not adversely affect Provider's ability to perform its obligations hereunder. 13.9 Waiver. 20 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY No provision of this Agreement may be waived except in writing by the waiving Party. The waiver of any breach of any term or condition hereof shall not be deemed a waiver of any other or subsequent breach, whether of like or different nature. 13.10 Severability. If any provision of this Agreement is declared by a court of competent jurisdiction to be illegal, unenforceable or void, that provision shall be modified so as to be enforceable and as nearly as possible reflect the original intention of the Parties, it being agreed and understood by the Parties that (i) this Agreement and all the provisions hereof shall be enforceable in accordance with their respective terms to the fullest extent permitted by Applicable Law, and (ii) the remainder of this Agreement shall remain in full force and effect. 13.11 Construction. Every term and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Party. 13.12 Entire Agreement. This Agreement, including the exhibits and schedules attached hereto, which are hereby incorporated by this reference as though fully set forth herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than the Parties any rights, remedies, obligations or liabilities under or by reason of this Agreement. 13.13 Third -Party Beneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and each of their permitted successors and assigns and no other person or entity shall be a direct or indirect legal beneficiary of, have any rights under, or have any direct or indirect cause of action or claim in connection with this Agreement. 13.14 Survival. Section 5.4, Article 7, Article 8, Article 9, and Article 13 shall survive the termination or expiration of this Agreement and any provision which by its terms or by implication is intended to survive the termination or expiration of this Agreement shall so survive. 13.15 No Rules of Construction Against Drafter. Each Party acknowledges that it and its attorneys have been given an equal opportunity to negotiate the terms and conditions of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party or any similar rule operating against the drafter of an agreement shall not be applicable to the construction or interpretation of this Agreement. [SIGNATURE PAGE FOLLOWS] 21 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY IN WITNESS WHEREOF, the duly authorized officers of the Parties have executed this Agreement as of the Effective Date. CALIFORNIA CHOICE ENERGY AUTHORITY Name: Jason Caudle Title: Executive Director CITY OF BALDWIN PARK Shannon Yauchzee, Chief Executive Officer APPROVED AS TO CONTENT: [Name], [Title] ATTEST: [Name], City Clerk APPROVED AS TO FORM: [Name], City Attorney 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT A SCHEDULE OF DEFINITIONS The terms defined in this Schedule of Definitions shall include the plural as well as the singular and the singular as well as the plural. Except as otherwise indicated, all the agreements or instruments herein defined shall mean such agreements or instruments as the same may from time to time be supplemented or amended or the terms thereof waived or modified to the extent permitted by, and in accordance with, the terms thereof. When used in the Agreement (as defined below), unless otherwise defined therein, the following terms shall have the respective meanings set forth below: "Affiliate" of a Person (the "First Person") shall mean a Person which directly or indirectly Controls, or is Controlled by, or is under common control with, the First Person, and shall also include any limited partnership or limited liability company of which the First Person or Affiliate thereof is the general partner, managing member or manager, as the case may be, and any Subcontractor, agent, representative, employee or authorized personnel of the First Person. "Control" of a Person shall mean the customership, directly or indirectly, of more than fifty percent (50%) of the voting securities of that Person. "Agreement" means this Administrative Services Agreement between Customer and Provider. "Applicable Law" shall mean all laws, statutes, orders, decrees, injunctions, licenses, permits, approvals, agreements and regulations of any Governmental Authority having jurisdiction over the matter in question which are applicable to or which affect Provider's provision of the Services and/or the subject matters encompassed by this Agreement. "Authorization Documents" shall mean the documents identified and summarized in Exhibit D, and the requirements of any documents in replacement of the foregoing or in addition thereto provided by Customer and added to and summarized in Exhibit D from time to time. "Authorized Officer" means the officer(s) of Customer designated as an "Authorized Officer" in the Customer Approval Procedures. "Base Term" shall have the meaning set forth in Section 3.1(a). "Bundled Load" means the proposed electric energy consumption of a member of Provider, as set forth in the implementation plan filed for such member pursuant to Code Section 366.2. "Business Day" shall mean any day except a Saturday, Sunday or other day on which commercial banks in the State of California are authorized by law to close. "Claims" shall mean claims, actions, damages, expenses (including reasonable attorneys' fees), fines, penalties, losses or liabilities. "Code" shall have the meaning given thereto in the recitals. "Confidential Information" shall have the meaning given in Section 11.1(d). "CPUC" shall have the meaning given thereto in the recitals. A-1 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY "Customer" shall have the meaning given thereto in the introductory paragraph of the Agreement, and its permitted successors and assigns, if any, under the Agreement. "Customer Approval Procedures" means the approval procedures set forth in Exhibit E hereto. "Customer Indemnified Party" shall mean Customer (including successors and permitted assigns) and its shareholders, partners, directors, officers, agents and employees. "Disputed Payme " shall have the meaning given thereto in Section 5.3(d). "Effective Date" shall have the meaning given in the introductory paragraph of this Agreement. "Energy Contract" means an agreement for the purchase of energy, renewable energy or related products, including long-term power purchase agreements and master power purchase and sale agreements and/or confirmation letter thereto, entered into by Provider for the benefit of Customer. "Fixed Fee" shall have the meaning given thereto in Section 5.1(a). "Fixed Fee Services" shall have the meaning given thereto in Section 4.1. "Force Majeure" shall mean any event that wholly or partly prevents or delays the performance by the Party affected of any obligation arising under this Agreement, but only if and to the extent such event is not within the reasonable control, directly or indirectly, of and not the fault of the Party affected including (provided that the foregoing requirements are satisfied): condemnation; expropriation; invasion; plague; drought; landslide; storms or wind of sufficient intensity to prevent safe performance of work; tornado; hurricane; tsunami; flood; lightning; earthquake; fire; explosion; epidemic; quarantine; war (declared or undeclared), terrorism or other armed conflict; material physical damage to an energy facility to the extent caused by third parties; strikes and other labor disputes (including collective bargaining disputes and lockouts) involving Subcontractors; riot or similar civil disturbance or commotion; other acts of God; acts of the public enemy; blockade; insurrection, riot or revolution; sabotage or vandalism; embargoes; and actions of a Governmental Authority (excluding the actions of the claiming party). "Force Majeure" shall not include (1) an event that prevents or delays (i) Provider's or Customer's compliance with (a) Applicable Laws; and (b) Permits required under Applicable Law in connection with such Party's performance under this Agreement and (ii) Customer's indemnity obligations hereunder, (2) labor shortages; (3) labor strikes and other labor disputes (including collective bargaining disputes and lockouts) with regard to work by Provider or a Subcontractor (except if such action is part of a regional or national action); or (4) economic hardship (including lack of money). "Governmental Authority" shall mean any federal, provincial, state or local government authority, agency, court or other body, officer or public entity, including any zoning authority, building inspector, or health or safety inspector, including the CPUC. "Indemnified Party' shall mean a Provider Indemnified Party or Customer Indemnified Party. "Indemnifying Party" shall have the meaning given thereto in Section 7.3. "JPA" shall mean that certain Joint Exercise of Powers Agreement Relating to the California Clean Energy Authority dated August 14, 2012, as the same has been or may be amended from time to time. A-2 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY "Payment Date" shall have the meaning given thereto in Section 5.3. "Payment Invoice" shall have the meaning given thereto in Section 5.3. "Permit" shall mean any waiver, exemption, variance, franchise, certification, approval, permit, authorization, license, consent, or similar order of or from any Governmental Authority having jurisdiction over the matter in question. "Person" shall mean any individual, partnership, joint stock company, corporation, trust, unincorporated association or joint venture, a government or any department or agency thereof, or any other entity. "Provider" shall have the meaning given thereto in the introductory paragraph of this Agreement, and its successors and permitted assigns, if any. "Provider Indemnified Party" shall mean Provider and its Affiliates and their respective shareholders, partners, directors, officers, agents, employees and representatives. "Regular Work Hours" means 8:00 am (PT) to 5:00 pm (PT) on a Business Day. "Reimbursable Expenses" shall have the meaning set forth in Section 5.2. "Reimbursable Services" shall have the meaning given thereto in Section 4.1. "Scope of Work Exhibit" means Exhibit B hereto. "Security Documents" means, with respect to each Energy Contract, the security documents entered into by Customer in connection therewith pursuant to which Customer grants to the energy suppliers under each Energy Contract (or its collateral agent) a security interest in any and all monies received from the Utility or the end-users in Customer's territory in connection with such Energy Contract, which security documents shall include (i) an account control agreement for an account (sometimes referred to as a "lockbox account") among Customer, an account bank and the energy supplier to such Energy Contract (or its collateral agent), (ii) an intercreditor and collateral agency agreement, among Customer, the counterparties to such Energy Contracts and, if applicable, the collateral agent, and (iii) a security agreement between Customer and the counterparty to such Energy Contract (or its collateral agent). "Services" shall have the meaning set forth in Section 4.1 and shall be comprised of the Fixed Fee Services and the Reimbursable Services. "Subcontractors" means any subcontractor, of any tier, vendor or supplier of materials, equipment or services to Provider or any subcontractor, of any tier, of any Person engaged or employed by Provider or any subcontractor of any tier that provides any part of the Services. "Supplemental Procurement Services" has the meaning set forth in Exhibit B. "Term" shall have the meaning set forth in Section 3.1(a). "Termination Notice" shall have the meaning given thereto in Section 3.1 M. A-3 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY "Utility" means Southern California Edison. A-4 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT B SCOPE OF WORK A. Fixed Fee Services I. Portfolio Operations (a) Energy Procurement. (i) Provider to consider load patterns of the CCA and advise Customer on assembling a supply portfolio that will match resources to the aggregate load shape of the CCA's customer base. (ii) Provider to conduct procurement of energy, renewable energy, carbon free energy and resource adequacy procurement with third party suppliers as required from time to time to meet the load requirements of the CCA. (b) Risk and Credit Management. (i) Provider to monitor the credit rating and financial condition of Customer's energy suppliers. (ii) Provider to periodically calculate the financial exposure to a specific supplier. (c) Load Forecasting and Data Collection. (i) Provider to collect, process and forecast load information. (d) Scheduling Coordination. (i) Provider to coordinate scheduling with the grid operator's schedule coordinator; exchange customer usage and billing information with the Utility. 2. Account Services (a) If necessary, Provider to calculate individual end-user customer bills. (b) Provider to confirm receipt of funds in lockbox account. (c) Provider to review and validate invoices from Schedule Coordinator. (d) Provider to direct distribution of funds from lockbox account. 3. Administration and Management of CCA Program B-1 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY 4. Regulatory Representation and Compliance Filings B. Reimbursable Services (a) Data Management Services (e.g., electronic data interchange (EDI) services; customer information system development and maintenance; customer call center management and staffing; billing administration; settlement quality meter data services; customer care, billing and related reports; and qualified reporting entity (QRE) services). (b) Professional Services (e.g., drafting, review and negotiation of Energy Contracts and Security Documents on behalf of Customer; electric load evaluation; community choice aggregation operational analysis; projected customer rate analysis and comparison; and support and maintenance of financial model). (c) Legal Services (e.g., review and negotiation of template Energy Contracts and Security Documents on behalf of Customer; legal services to customize existing templates for Energy Contracts and Security Documents to accommodate Customer requested changes). (d) "Supplemental Procurement Services" means reimbursement for any payments (including deposits) that Provider makes directly to energy suppliers on behalf of, and at the request of, Customer for the purchase of electricity and other related services to be delivered or provided to Customer. The process for Supplemental Procurement Services will be subject to the approval process set forth in Exhibit E. B-2 33073648vi CONFIDENTIAL DRAFT FOR DISCUSSION ONLY 1. 2. 3 EXHIBIT C FIXED FEE RATE, REIMBURSABLE EXPENSES AND NOTICE ADDRESS Fixed Fee Rate: Reimbursable Expenses: Fiscal Year $ 241,400.00 fiscal year total $ 20,116.67 monthly (a) Data Management Services: Fiscal Year $ 297,030.00 fiscal year total (estimated) $ 24,752.50 monthly (estimated) (b) Professional Services: Fiscal Year $ 267,000.00 annually (not to exceed) $ 22,250.00 monthly (not to exceed) (c) (d) Legal Services (as incurred): $ 20,000 annually (estimated) (e) Supplemental Procurement Services (as incurred): Address for Notices: $ Amounts approved by Customer and Provider in accordance with Exhibit E. Provider: California Choice Energy Authority 44933 Fern Avenue Lancaster, California 93534 Attn: Cathy DeFalco Tel: 888.639.2411 Email: Cathy@CalChoice.org With a copy to Provider's legal counsel: Hall Energy Law PC Attn: Stephen Hall Tel: 503.477.9354 Email: StevegHallEnergyLaw.com Customer: City of Baldwin Park Attn: Shannon Yauchzee Tel: 626.813.5204 Email: SYauchzee@baldwinpark.com C-1 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT D AUTHORIZATION DOCUMENTS [City's Resolution to Join CalChoice] D-1 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT E CUSTOMER APPROVAL PROCEDURES 1. Authorized Officer [Table to be completed with name, title of Customer's officer that is authorized to provide Provider with necessary approvals.] Name I Title Shannon Yauchzee Chief Executive Officer Additional Authorized Title 2. Approval Procedures [To be completed — Procedures to contain thresholds for which receipt of Authorized Officer's approval is required.] Authorized Officer Approval IS Required if Term of Energy Contract is GREATER than: Five (5) Years Authorized Officer Approval IS NOT Required if Notional Amount of Energy Contract is EQUAL Five (5) Years TO OR LESS than: Authorized Officer Approval IS Required if the proposed Transaction is entered into through Provider's Supplemental Procurement Services process. Required Contract Provisions in Energy Contracts (or substantially similar language): Section 3.6 of the EEI Master Agreement: "With respect to each Transaction, as security for Party B's obligations, Member shall have created and set aside a Special Fund and shall have entered into the Security Documents for such Special Fund in form and substance reasonably satisfactory to Party A and Party B. The Parties agree that Party B's obligations to make payments with respect to this Master Agreement and each Transaction, and the obligations of a Member to make payments pursuant to a Transaction, are to be made solely from the Special Fund applicable to such Transaction." E-1 33073648v1 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY Section 6.9 of the EEI Master Agreement: "Seller agrees that the obligations of Party B to make payments hereunder are (i) to be made solely from the Secured Account of the Member for whose account a Confirmation is allocated to, and (ii) do not constitute any kind of indebtedness of Party B or (iii) create any kind of lien on, or security interest in, any property or revenues of Party B." Section 8.5 of the EEI Master Agreement: "Section 8.5: Section 8 and Schedule M of the Agreement and the Security Documents set forth the entirety of the agreement of the Parties regarding credit, collateral and adequate assurances. Except as expressly set forth in the options elected by the Parties in respect of Sections 8.1 and 8.2, and in Schedule M and in the Security Documents, neither Party: (a) has or will have any obligation to post margin, provide letters of credit, pay deposits, make any other prepayments or provide any other financial assurances, in any form whatsoever, or (b) will have reasonable grounds for insecurity with respect to the creditworthiness of a Party or Member that is complying with the relevant provisions of Section 8 of this Agreement; (c) and all implied rights relating to financial assurances arising from Section 2-609 of the Uniform Commercial Code or case law applying similar doctrines, are hereby waived." Section 10.19 of the EEI Master Agreement: "10.19 No Recourse Against Constituent Members of Party B. Party B is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) and is a public entity separate from its constituent members. Party B will solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement in accordance with, and subject to, the terms and conditions of each Transaction and the applicable Security Agreements. Party A will have no rights and will not make any claims, take any actions or assert any remedies against any Member or of Party B's constituent members, or the officers, directors, advisors, contractors, consultants or employees of Party B or Party B's constituent members, in connection with this Agreement. The Parties agree that Party B's obligations to make payments with respect to this Master Agreement and each Transaction, and the obligations of a Member to make payments pursuant to a Transaction, are to be made solely from the Special Fund applicable to such Transaction, as set forth in the applicable Security Agreements." E-2 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT F FORM OF AUTHORIZED OFFICER APPROVAL Prior to any procurement, CalChoice, or CalChoice representative will communicate the details of the proposed procurement via email. An Authorized Office, as identified in Exhibit E, will give written approval of the procurement via email. F-1 330736480 CONFIDENTIAL DRAFT FOR DISCUSSION ONLY EXHIBIT G JOINT EXERCISE OF POWERS AGREEMENT AND AMENDMENTS THERETO G-1 33073648v1 Attachment 4 Security Agreement CONFIDENTIAL DRAFT 2/3/2019 SECURITY AGREEMENT This SECURITY AGREEMENT (this "Agreement") dated as of , 2019 is entered into between City of Baldwin Park, a California municipal corporation and general law city, d/b/a [Name of CCA Program], as pledgor ("C"), and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "Collateral Agent"), for the benefit of the PPA Providers (as defined below) and California Choice Energy Authority ("CCEA"), as Secured Creditors (as defined below). RECITALS: A. CCEA has (i) entered into the Master Agreements (as defined below) with the PPA Providers for the purchase of Product (as defined below), and (ii) may in the future enter into a Power Purchase Agreement (as defined below) with a PPA Provider, pursuant to which CCEA has agreed, or will agree, to purchase the Product from such PPA Provider for City's account and shall cause such PPA Provider to become a party to the Intercreditor Agreement (as defined below). B. City shall sell the Product purchased by CCEA from PPA Providers to City's customers at rates established by City from time to time. C. City generates accounts receivable owing to City by City's customers for such Product. D. City's customers are billed by Southern California Edison ("SCE") amounts they owe for the Product provided by City. E. As of the date hereof, City has directed SCE to remit all present and future collections on accounts receivable now or hereafter billed by SCE on behalf of City to Collateral Agent, for remittance to the Lockbox Account (as defined below) maintained by Collateral Agent, which direction is irrevocable unless both Collateral Agent, at the direction of the Required Secured Creditors (as defined below), and City direct SCE otherwise; F. City desires herein to pledge to Collateral Agent, for the benefit of Secured Creditors, a first priority continuing security interest in and to the Collateral (defined below); G. The PPA Providers, City and Collateral Agent have entered into the Intercreditor Agreement (as defined below) wherein the PPA Providers appointed River City Bank, as Collateral Agent to act on their behalf regarding the administration, collection and allocation of the proceeds of the Collateral; and CONFIDENTIAL DRAFT 2/3/2019 H. City and Collateral Agent desire to enter into this Agreement to evidence the pledge of the Collateral and to set forth their agreements regarding the Collateral and the application of the Collateral to the Obligations (as defined below). NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows: Section 1. Definitions, Etc. 1.01 Defined Terms. The following terms shall have the meanings assigned to them in this Section 1.01 or in the provisions of this Agreement referred to below: "Applicable Law" means any applicable law, including without limitation any: (a) federal, state, territorial, county, municipal or other governmental or quasi - governmental law, statute, ordinance, rule, regulation, requirement or use or disposal classification or restriction, whether domestic or foreign; (b) judicial, administrative or other governmental or quasigovernmental order, injunction, writ, judgment, decree, ruling, interpretation, finding or other directive, whether domestic or foreign; (c) common law or other legal or quasi -legal precedent; (d) any binding arbitrator's, mediator's or referee's decision, finding, award or recommendation; or (e) charter, rule, regulation or other organizational or governance document of any national securities exchange or market or other self-regulatory organization. "Bankruptcy Code" means the Bankruptcy Reform Act of 1978, as codified under Title 11 of the United States Code, and the rules promulgated thereunder, as the same may be in effect from time to time. "Business Day" means any day other than a Saturday, a Sunday or a day on which commercial banks in the State of California or Delaware are required or authorized to close. "CCEA" means the California Choice Energy Authority, a California joint powers authority. "Collateral" means the following, whether now existing or hereafter arising: (a) the Receivables; (b) the Deposit Accounts; (c) all cash, cash equivalents, Securities, Investment Property (as such term is defined in the UCC), Security Entitlements (as such term is defined in the UCC), checks, money orders and other items of value now or hereafter that are required to be, or that are, paid, deposited, credited or held (whether for collection, provisionally or otherwise) in or with respect to any Deposit Account or otherwise in the possession or under the control of, or in transit to, the Collateral Agent or the Depositary Bank for credit or with respect to any Deposit Account and all interest accumulated thereon; and (d) all Proceeds (as such term is defined in the UCC) of any or all of the foregoing. The term "Collateral" shall not include any amounts distributed to City pursuant to Section 6.02(y). CONFIDENTIAL DRAFT 2/3/2019 "Collateral Agent" has the meaning given to such term in the Preamble hereof. "Control" has the meaning given to such term in Section 9-104 of the UCC. "Control Agreements" means the Account Control Agreement, dated as of the date hereof, among the Depositary Bank, City and Collateral Agent and any other agreements entered into among City and Depositary Bank which shall designate the Deposit Accounts as blocked accounts under the Control of Collateral Agent, for the benefit of Secured Creditors, as provided in the UCC, as each such agreement may be amended, supplemented, restated or replaced from time to time. "Credit Rating" means for a Qualified Institution the respective ratings then assigned to such entity's unsecured, senior long-term debt or deposit obligations (not supported by third party credit enhancement) by S&P, Moody's or other specified rating agency or agencies or, if such entity does not have a rating for its unsecured, senior long-term debt or deposit obligations, then the rating assigned to such entity as its "corporate credit rating" by S&P. "Customer" means any customer of City who purchases Product from City but is invoiced by SCE, and any other obligor(s) responsible for payment of a Receivable. "Deposit Accounts" means the Lockbox Account, together with any other Deposit Account or Securities Account (as such terms are defined in the UCC) from time to time pledged by City to Collateral Agent, for the benefit of Secured Creditors, to secure the Obligations. "Depositary Bank" means River City Bank, a California corporation, in its capacity as depositary bank, and its successors and assigns. "Direction Letter" means that certain letter in the form attached at Exhibit B, a copy of which will be delivered to the Collateral Agent, from City to SCE pursuant to which City has directed SCE to remit all of the Proceeds on the Receivables collected by SCE from Customers to the Lockbox Account specified therein for application to the Obligations, unless and until both Collateral Agent, at the direction of the Required Secured Creditors, and City jointly instruct SCE to terminate or change such direction and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof and any similar letter or written direction provided to SCE. "Discharge Date" means that date on which: (a) any and all outstanding Obligations under the Transaction Agreements have been fully satisfied, and (b) there are no continuing obligations by City under any Transaction Agreements (other than for any provisions which are intended to survive the termination of the Transaction Agreements). "Distribution Date" means the twenty-third (23`d) day of each month. "Distribution Date Certificate" means a certificate substantially in the form of Exhibit A hereto itemizing each of the payments to be remitted under Section 6.02, prepared by CONFIDENTIAL DRAFT 2/3/2019 CCEA and submitted to City, and submitted by City to Collateral Agent in accordance with Section 6.03. "Event of Default" has the meaning set forth in the applicable Master Agreement or Power Purchase Agreement. "Implementation Plan" means that certain Implementation Plan filed with the California Public Utilities Commission (CPUC) and certified by the CPUC. "Intercreditor Agreement" means the Intercreditor and Collateral Agency Agreement, dated as of even date herewith, among Collateral Agent, the Secured Creditors from time to time party thereto and City, as amended, supplemented, restated or replaced from time to time. "Letter of Credit" means one or more irrevocable, transferable standby letters of credit, in a form acceptable to the PPA Providers and issued by a Qualified Institution. "Lien" means any mortgage, pledge, hypothecation, deposit arrangement, encumbrance, lien (statutory or other), assignment, charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any sale governed by Article 9 of the UCC, any conditional sale or title retention agreement, or any capital lease having substantially the same economic effect as any of the foregoing). "Lockbox Account" means the deposit account no. * * * * * * which is maintained in the name of City and is under the Control of Collateral Agent, for the benefit of the Secured Creditors, at Depositary Bank, and any replacement account, in each case, pursuant to the Lockbox Account Control Agreement. "Lockbox Account Control Agreement" means the Account Control Agreement, dated as of the date hereof, among Depositary Bank, City and Collateral Agent and any other agreements entered into among Depositary Bank, City and Collateral Agent which shall designate the Lockbox Account as a blocked account under the Control of Collateral Agent, for the benefit of Secured Creditors, as provided in the UCC, as each such agreement may be amended, supplemented, restated or replaced from time to time. "Master Agreements" means the following: (i) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; (ii) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the CONFIDENTIAL DRAFT 2/3/2019 exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; (iii) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; and (iv) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof. "Moody's" means Moody's Investor Services, Inc. "Obligations" means all of the obligations and liabilities under the Transaction Agreements to each PPA Provider, which are for the City's account, whether direct or indirect, joint or several, absolute or contingent, due or to become due, now existing or hereinafter arising under or in respect of one or more of the Transaction Agreements, including all payments, fees, purchases, mark -to -market exposure, commitments for reimbursement, indemnifications, interest, damages and Termination Payments, if any. The term "Obligations" also includes all of City's other present and future obligations to CCEA under that certain Administrative Services Agreement, and to each PPA Provider under the Transaction Agreements entered into by CCEA for City's account, including the repayment of (a) any amounts that Collateral Agent (or a PPA Provider) may advance or spend for the maintenance or preservation of the Collateral and (b) any other expenditure that Collateral Agent (or PPA Provider) may make under the provisions of the Transaction Agreements for the benefit of City. For the avoidance of doubt, the term "Obligations" includes any of the foregoing that arises after the filing of a petition by or against City under any bankruptcy or insolvency statute, even if the Obligations do not accrue because of any statutory automatic stay or otherwise. "Person" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. "Power Purchase Agreement" means each agreement, including the Master Agreements, together with the exhibits, schedules, transactions, confirmations (including confirmations entered into after the date hereof), and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof, pursuant to which a PPA Provider sells the Product to CCEA for the account of City, as amended, modified, supplemented, restated, extended or replaced from time to time. "PPA Provider" means each seller of Product under a Power Purchase Agreement that is made a party to the Intercreditor Agreement, and its respective successors and assigns. CONFIDENTIAL DRAFT 2/3/2019 "Product" means one or more of the following: energy, renewable energy attributes, capacity attributes, resource adequacy benefits, or any other similar or related products contemplated in the Power Purchase Agreements. "Oualified Institution" means a commercial bank organized under the laws of the United States or a political subdivision thereof having at the applicable time (a) a Credit Rating of (i) A- or better from Standard & Poor's, or (ii) A3 or better from Moody's, or (iii) if such bank has a Credit Rating at such time from both Standard & Poor's and Moody's, A- or better from Standard & Poor's and A3 or better from Moody's and (b) assets of at least Ten Billion Dollars ($10,000,000,000). "Receivable" means an Account evidencing City's rights to payment for Product, billed in an invoice sent to a Customer by SCE, together with all late fees and other fees which SCE and City agree are to be charged in such invoice to the Customer by SCE on behalf of City. "Regular Charges" means, as of any date of determination, amounts then due and owing to such PPA Provider for the Product delivered by such PPA Provider, without giving effect to any Supplemental Payment owing to such PPA Provider. "Regular Sharing Percentage" means, as of any date of determination, with respect to each PPA Provider as calculated by CCEA in a commercially reasonable manner, the percentage equivalent of a fraction, (i) the numerator of which is the amount of the Regular Charges due and owing to such PPA Provider, as of such date, and (ii) the denominator of which is the amount of the Regular Charges due and owing to all PPA Providers, as of such date. "Required Secured Creditors" has the meaning given to such term in the Intercreditor Agreement. If City is not reduced by _ "Reserve Amount" means an amount of ($ )• subject to an Event of Default, the total Reserve Amount shall automatically be percent (_%) annually, starting "Secured Creditors" means each PPA Provider party to the Intercreditor Agreement, CCEA, and their respective successors and assigns. "Standard & Poor's" means Standard & Poor's Rating Group (a division of McGraw-Hill, Inc.). "Supplemental Payment" means, as of any date of determination, all Obligations owing by City to each PPA Provider, excluding, however, the Regular Charges owed to such PPA Provider. Supplemental Payments include, but are not limited to, all out-of-pocket losses such as indemnity claims arising under the Transaction Agreements to the extent such losses were incurred by such PPA Provider, all late payment charges due under a Power Purchase Agreement, and all Obligations arising upon a default or Termination Event, such as Termination Payments. "Supplemental Sharing Percentage" means, as of any date of determination, with CONFIDENTIAL DRAFT 2/3/2019 respect to each PPA Provider, the percentage equivalent of a fraction, (y) the numerator of which is the outstanding amount of the Supplemental Payments due and owing to such PPA Provider, as of such date, and (z) the denominator of which is the sum of the outstanding amount of the Supplemental Payments due and owing to all PPA Providers, as of such date. "Termination Event" means, with respect to any Power Purchase Agreement, the termination of Transactions and/or acceleration of all amounts owing thereunder in accordance with the terms of such Power Purchase Agreement. "Termination Payment" has the meaning given to such term in the Intercreditor Agreement. "Transaction Agreements" means the Master Agreements, any other Power Purchase Agreements, the Control Agreements, the Intercreditor Agreement, this Agreement and all other agreements, instruments or documents to which City is a party and which are executed and delivered from time to time in connection with or as security for City's obligations under the Master Agreements, any other Power Purchase Agreements and any other Transaction Agreements, as the same may be amended, restated, modified, replaced, extended or supplemented from time to time. "UCC" means the Uniform Commercial Code in effect in the State of California from time to time. 1.02 Certain Uniform Commercial Code Terms. As used herein, the terms "Account", "Investment Property", and "Proceeds" have the respective meanings set forth in Article 9 of the UCC. The terms "Security" and "Security Entitlements" have the respective meanings set forth in Article 8 of the UCC. 1.03 Other Interpretive Provisions. References to "Sections" shall be to Sections of this Agreement unless otherwise specifically provided. For purposes hereof, "including" is not limiting and "or" is not exclusive. All capitalized terms defined in the UCC and not otherwise defined herein or in the Security Agreement shall have the respective meanings provided for by the UCC. Any of the terms defined in this Agreement may, unless the context otherwise requires, be used in the singular or the plural depending on the reference. References to any instrument, agreement or document shall include such instrument, agreement or document as supplemented, modified, amended or restated from time to time to the extent permitted by this Agreement. References to any Person include the successors and permitted assigns of such Person. References to any statute, act or regulation shall include its related current version and all amendments and any successor statutes, acts and regulations. References to any statute or act, without additional reference, shall be deemed to refer to federal statutes and acts of the United States. References to any agreement, instrument or document shall include all schedules, exhibits, annexes and other attachments thereto. Section 2. Grant of Security Interest. CONFIDENTIAL DRAFT 2/3/2019 As collateral security for the payment and performance in full of the Obligations when due, whether at stated maturity, by acceleration or otherwise, City hereby assigns, pledges and grants to Collateral Agent, for the benefit of the Secured Creditors, a first priority continuing security interest in and continuing lien on all of City's right, title and interest in and to the Collateral, including the following: (a) the prompt and complete payment, when due and payable, of all Obligations; and (b) the timely performance and observance by City of all covenants, obligations and conditions contained in the Transaction Agreements; and (c) without limiting the generality of the foregoing and to the fullest extent permitted under Applicable Law, the payment of all amounts, including interest which constitute part of the Obligations and would be owed by City to the Secured Creditors under the Transaction Agreements but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving City. The collateral assignment evidenced by this Agreement is a continuing one and is irrevocable by City so long as any of the Obligations are outstanding. Section 3. Representations and Warranties. City represents and warrants to Collateral Agent that: 3.01 Title. It is the sole beneficial owner of the Collateral and such Collateral is free and clear of all liens, except liens in favor of Collateral Agent created hereunder. 3.02 Names, Etc. As of the date hereof, the full and correct legal name, type of organization, jurisdiction of organization, mailing address, and principal place of business is as follows: City of Baldwin Park, a California municipal corporation and general law city, d/b/a [Name of CCA Program], 14403 E. Pacific Avenue, Baldwin Park, CA 91706. 3.03 Changes in Circumstances. City has not: (a) within the period of four (4) months prior to the date hereof, changed its location (as defined in Article 9 of the UCC); (b) within the period of five (5) years prior to the date hereof, changed its name; or (c) within the period of four (4) months prior to the date hereof, become a "new debtor" (as defined in Article 9 of the UCC) with respect to a currently effective security agreement previously entered into with any other Person. 3.04 Security Interests. The Liens granted by this Agreement have attached and constitute a perfected first priority continuing security interest in the Collateral. City owns good and marketable title to the Collateral free and clear of all Liens other than such Liens established under this Agreement, and neither the Collateral nor any interest in the Collateral has been transferred to any other Person. City has full right, power and authority to grant a first -priority security interest in the Collateral to Collateral Agent in the manner provided in this Agreement, free and clear of any other Liens, adverse claims and options and without the consent of any other CONFIDENTIAL DRAFT 2/3/2019 person or entity or if consent is required, such consent has been obtained. No other Lien, adverse claim or option has been created by City or is known by City to exist with respect to the Collateral. At the time the security interest in favor of Collateral Agent attaches, good and indefeasible title to all after-acquired property included within the Collateral, free and clear of any other Liens, adverse claims or options shall be vested in City. All consents for the assignment of Collateral to Collateral Agent, if any, required to be obtained by City have been obtained. This Agreement, the Intercreditor Agreement, and the Lockbox Account Control Agreement constitute legal, valid and binding obligations of City enforceable against it in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. City will not contest the validity or legality of any Transaction Agreements entered into between CCEA and any PPA Provider for the account of City and represents and warrants that it has provided CCEA with full power and authority to enter in the Transaction Agreements for City's account. Section 4. Covenants. City hereby stipulates and agrees with the Collateral Agent as follows: 4.01 Perfection by Control. City shall not be permitted to withdraw funds from the Deposit Accounts until the Discharge Date and this Agreement has been terminated. Collateral Agent shall have the exclusive authority to withdraw, or (other than as set forth herein) direct the withdrawal of, funds from the Deposit Accounts. The Control Agreement for each Deposit Account shall give the Collateral Agent the sole power to direct Depositary Bank regarding the Deposit Account, and thus Collateral Agent shall Control the Deposit Accounts within the meaning of the UCC. Collateral Agent shall make distributions from the Deposit Accounts only in accordance with Section 6 of this Agreement. 4.02 Further Assurances. Upon the request of Collateral Agent, City shall promptly from time to time give, execute, deliver, file, record, authorize or obtain all such financing statements, continuation statements, notices, documents, agreements or other papers as may be necessary in the judgment of Collateral Agent to create, preserve, perfect, maintain the perfection of or validate the security interest granted pursuant hereto or to enable Collateral Agent to exercise and enforce its rights hereunder with respect to such security interest, and without limiting the foregoing, shall: (a) take such other action as Collateral Agent may reasonably deem necessary or appropriate to duly record or otherwise perfect the security interest created hereunder in the Collateral; (b) promptly from time to time enter into such Control Agreements, each in form and substance reasonably acceptable to Collateral Agent, as may be required to perfect the security interest created hereby; (c) keep full and accurate books and records relating to the Collateral, and stamp or otherwise mark such books and records in such manner as Collateral Agent may reasonably require in order to reflect the security interests granted by this Agreement; and CONFIDENTIAL DRAFT 2/3/2019 (d) permit representatives of Collateral Agent, upon reasonable notice, at any time during normal business hours to inspect and make abstracts from its books and records pertaining to the Collateral, and to be present at City's places of business to receive copies of communications and remittances relating to the Collateral, and forward copies of any notices or communications received by City with respect to the Collateral, all in such manner as Collateral Agent may reasonably require. 4.03 No Other Liens. City is and shall be the owner of or have other transferable rights in the Collateral free from any right or claim of any other Person or any other Lien and City shall defend the same against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to Collateral Agent. City shall not (a) grant, or permit to be granted, any Lien with respect to any of the Collateral in which Collateral Agent is not named as the sole secured party, (b) file or suffer to be on file, or authorize or permit to be filed or to be on file, in any jurisdiction, any financing statement or like instrument with respect to any of the Collateral in which Collateral Agent is not named as the sole secured party, or (c) cause or permit any Person other than Collateral Agent to have Control of any Deposit Account constituting part of the Collateral. 4.04 Locations; Names, Etc. Without at least thirty (30) days' prior written notice to the Collateral Agent, City shall not: (a) change its location (as defined in Article 9 of the UCC), (b) change its name from the name shown as its current legal name in Section 3 of this Agreement, or (c) agree to or authorize any modification of the terms of any item of the Collateral if the effect thereof would be to result in a loss of perfection of, or diminution of priority for, the security interests created hereunder in such item of Collateral, or the loss of control (within the meaning of Article 9 of the UCC) by Collateral Agent over such item of Collateral. 4.05 Perfection and Recordation. City authorizes Collateral Agent to file Uniform Commercial Code financing statements describing the Collateral (provided that no such description shall be deemed to modify the description of Collateral set forth in Section 2). The Collateral Agent, in accordance with Section 4.02 hereof, hereby requests and instructs City to, and City hereby agrees, at its sole cost and expense to, prepare and file such Uniform Commercial Code financing and continuation statements describing the Collateral as may be necessary to perfect and continue the security interest granted herein. City shall deliver to the Collateral Agent a file stamped copy of all such filings, which the Collateral Agent shall make available to any PPA Provider upon request. Section 5. Remittance of Collections to Collateral Agent. 5.01 Irrevocable Direction. City has, pursuant to the Direction Letter, irrevocably instructed SCE to remit to Collateral Agent all payments due or to become due in respect of the Receivables unless and until both Collateral Agent, at the direction of the Required Secured Creditors, and City direct otherwise in writing. The Collateral shall be collected by Collateral Agent from SCE pursuant to the Direction Letter. City shall periodically take such additional measures as may be commercially reasonable to cause SCE or Customers to make all payments due to City into the Lockbox Account designated in the Direction Letter. All invoices CONFIDENTIAL DRAFT 2/3/2019 issued by or on behalf of City shall direct payment into the Lockbox Account designated in the Direction Letter. City shall provide Collateral Agent with such proof of compliance with this Section 5.01 as Collateral Agent may reasonably request from time to time. Without the prior written consent of Collateral Agent (acting at the written direction of the Required Secured Creditors), City shall not (a) terminate, amend, revoke or modify such payment instructions to SCE or Customers or (b) direct or cause, directly or indirectly, SCE or any Customer to make any payments except in accordance with such payment instructions. The parties agree that if any such payments, or any other Proceeds of Collateral, are received by City, (i) they shall be held in trust by City for the benefit of the Collateral Agent, (ii) City shall as promptly as possible remit or deliver same to Collateral Agent for application as provided herein, (iii) City shall take such commercially reasonable steps as necessary to require such Customer or SCE to make any future remittances into the Lockbox Account designated in the Direction Letter and (iv) such activity shall be reported promptly to Collateral Agent following City's receipt of such funds. Collateral Agent thus has the right to all collections on the Collateral remitted to it by SCE until the Discharge Date. 5.02 Application of Proceeds. The Proceeds of any collection or realization of all or any part of the Collateral shall be applied by Collateral Agent as provided for in Section 6 below. 5.03 Deficiency. If the Proceeds of the collection of the Collateral are insufficient to pay in full the Obligations, City remains liable to Collateral Agent and Secured Creditors for any deficiency. 5.04 Attorney -in -Fact. Collateral Agent is hereby appointed the attorney-in-fact of City to receive, endorse and collect all checks made payable to the order of City representing any payment or other distribution in respect of the Collateral. Section 6. Establishment of and Distributions from Deposit Accounts. 6.01 Establishment of Deposit Accounts. City shall establish the Deposit Accounts in City's name at Depositary Bank and shall fund the Reserve Amount into the Lockbox Account. The deposits into the Deposit Accounts and all interest accumulated thereon shall be held and disbursed by the Depositary Bank in accordance with the terms and conditions of the Control Agreements and this Agreement. The Deposit Accounts are subject to the sole dominion, control and discretion of Collateral Agent until the Discharge Date. Until the Discharge Date, neither City nor any person or entity claiming on behalf of or through City shall have any right or authority, whether express or implied, to make use of, withdraw or transfer any funds or to give instructions with respect to disbursement of the Accounts other than Collateral Agent. Until the Discharge Date, subject to Section 6.02, Collateral Agent shall be entitled to exercise any and all rights in respect of or in connection with the Deposit Accounts including (i) the right to specify the amount of payments to be made from the Deposit Accounts, (ii) when such payments are to be made out of the Deposit Accounts and (iii) the right to withdraw funds for the payment of Obligations which are due and payable from the Deposit Accounts. Collateral Agent shall accept all funds remitted to the Deposit Accounts under this Agreement, and credit such funds as provided for in Section 6.02 below. CONFIDENTIAL DRAFT 2/3/2019 6.02 Priority of Distributions of Collateral. Proceeds of Collateral shall be allocated in accordance with this Section 6.02. On each Distribution Date, Collateral Agent shall distribute all funds in the Lockbox Account or otherwise received on the Collateral in accordance with the following priority: (i) first, to each PPA Provider in payment of any Regular Charges, according to its Regular Sharing Percentage; (ii) second, to each PPA Provider in payment of any Supplemental Payment owing to it according to its Supplemental Sharing Percentage; (iii) third, to CCEA in payment of any amounts owing to CCEA under that certain Administrative Services Agreement between CCEA and City; (iv) fourth, to the Collateral Agent (as such and in its individual capacity) in respect of its reasonable out-of-pocket fees and expenses incurred under this Agreement, the Intercreditor Agreement or the Control Agreements that have been invoiced to City, including, without limitation, payment of expenses incurred by the Collateral Agent which indemnity shall include the reasonable out of pocket attorneys' fees of outside counsel to the Collateral Agent; and (v) fifth, unless an Event of Default shall exist as to City, the balance, if any, after retention in the Lockbox Account of the Reserve Amount, shall be returned to City free and clear of the lien of this Agreement, provided, however, that if the Collateral Agent has been notified of a dispute in accordance with Section 6.06, the portion of the balance, if any, up to such disputed amount shall be retained in the Lockbox Account and City shall only receive the amount of the balance, if any, that is in excess of such disputed amount until such time as the Collateral Agent receives written notice from the relevant PPA Provider and City that the dispute pursuant to Section 6.06 has been resolved. Collateral Agent shall rely, and shall be fully protected in relying on a Distribution Date Certificate in making the above calculations, without any requirement that Collateral Agent verify the accuracy of such Distribution Date Certificate, subject to revision in the event of disputes resolved under Section 6.06. 6.03 Distribution Date Certificate. On or before three (3) Business Days before each Distribution Date, City shall remit, or cause to be remitted, to Collateral Agent and each PPA Provider a certificate in substantially the form of Exhibit A hereto (the "Distribution Date Certificate") prepared by CCEA itemizing each of the payments to be remitted under Section 6.02 above. The PPA Providers may share such Distribution Date Certificates with their respective accountants, legal counsel and other advisors. 6.04 Replenishing_ the Reserve Amount, No Waiver. Subject to Section 6.05, if at any time the balance in the Deposit Accounts is less than the Reserve Amount, then (a) the Collateral Agent shall within two (2) Business Days thereafter provide City with written notice thereof, with a copy to the Secured Creditors and (b) City shall deposit such shortfall amount into CONFIDENTIAL DRAFT 2/3/2019 the Deposit Accounts not later than ten (10) Business Days after its receipt of such notice from Collateral Agent. The Collateral Agent shall have no duty or obligation to monitor or oversee City's replenishment of the Reserve Amount, and shall have no duty or obligation under this Section 6.04 other than to deliver the written notice required pursuant to 6.04(a). Nothing contained herein shall impair or otherwise limit City's obligations to timely make the payments required pursuant to any of the Transaction Agreements. It is expressly understood and agreed that the Collateral Agent shall have no liability for its failure to deliver any amounts required to be delivered by it pursuant to this Agreement or any other Transaction Agreement to the extent that such amounts are not then available in the Deposit Accounts. 6.05 Release of Reserve Amount. Except following and during the continuance of an Event of Default, if City provides the Collateral Agent with a Letter of Credit for the benefit of the PPA Providers in an amount equal to the Reserve Amount, and all Secured Creditors confirm in writing to the Collateral Agent that no such Event of Default exists or is continuing. City may request in writing and, upon receipt of such request, Collateral Agent shall instruct the Depositary Bank to release and distribute the Reserve Amount to City. All of the fees, costs and expenses associated with the Letter of Credit shall be borne by City. City shall thereafter cause the Letter of Credit to be maintained in full force and effect through the Discharge Date. If at any time the issuer of the Letter of Credit is no longer a Qualified Institution, then City shall, within five (5) Business Days of such occurrence, either (a) provide Collateral Agent with a replacement Letter of Credit for the benefit of the PPA Providers issued by a Qualified Institution in an amount equal to the Reserve Amount or (b) fund the applicable Reserve Amount into the Lockbox Account. 6.06 Disputes. If a PPA Provider advises CCEA, City and Collateral Agent in writing that the calculations in any Distribution Date Certificate are in its opinion materially incorrect, then CCEA, City and such PPA Provider shall attempt to resolve the discrepancy in good faith. If the parties are able to reach an agreement with respect to such discrepancy in advance of the relevant Distribution Date, City shall remit to Collateral Agent and each PPA Provider a revised Distribution Date Certificate reflecting the agreed upon amounts, and the Collateral Agent shall disburse funds in accordance with such revised Distribution Date Certificate on the applicable Distribution Date, provided, however, that the Collateral Agent shall have no liability whatsoever for any failure to disburse funds in accordance with a revised Distribution Date Certificate to the extent that it has not received such revised Distribution Date Certificate sufficiently in advance of the scheduled distribution. If the parties are unable to agree, they shall resolve such dispute in accordance with the dispute resolution provision of the Power Purchase Agreement between such PPA Provider and CCEA. In the interim, the Distribution Date Certificate originally submitted by City shall be relied upon by Collateral Agent for purposes of making distributions from the Lockbox Account or any other Deposit Account of all undisputed amounts in accordance with Section 6.02, and the Collateral Agent shall make no distribution in respect of any disputed amount until such time as it has received a revised Distribution Date Certificate. Notwithstanding the above, no dispute shall prevent any other PPA Provider from receiving its distributions from the Lockbox Account, even if such distributions would result in a shortfall of the disputed amount. However, City shall not be entitled to receive any funds if such distribution to City would result in a shortfall of the disputed amount. CONFIDENTIAL DRAFT 2/3/2019 6.07 Earnings on Deposit Accounts. City shall establish the Deposit Accounts as non-interest bearing accounts. 6.08 Rights and Remedies. If an Event of Default shall have occurred and is continuing, Collateral Agent, without any other notice to or demand upon City, shall have in any jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the UCC and any additional rights and remedies as may be provided to a secured party in any jurisdiction in which Collateral is located; it being understood and agreed that the Collateral Agent would be exercising any such rights and remedies in its capacity as collateral agent for the benefit of the PPA Providers, as Secured Creditors. In addition, CITY HEREBY WAIVES ANY AND ALL RIGHTS THAT IT MAY HAVE TO A JUDICIAL HEARING IN ADVANCE OF THE ENFORCEMENT OF COLLATERAL AGENT'S RIGHTS AND REMEDIES HEREUNDER, INCLUDING ITS RIGHT FOLLOWING AN EVENT OF DEFAULT TO TAKE IMMEDIATE POSSESSION OF THE COLLATERAL AND TO EXERCISE ITS RIGHTS AND REMEDIES WITH RESPECT THERETO. Collateral Agent shall only act at the written instruction of the Required Secured Creditors in (a) taking any action under this Agreement, the Intercreditor Agreement or any Control Agreements with respect to the Collateral following an Event of Default and (b) asserting any claim under this Agreement, the Intercreditor Agreement or any Control Agreements. Notwithstanding the foregoing, if Collateral Agent deems it prudent to take reasonable actions, without the instruction of a Secured Creditor, to protect the Collateral, it may (but shall be under no obligation to) do so and thereafter provide written notice to all the Secured Creditors of such actions, and no provision of this Agreement shall restrict Collateral Agent from exercising such rights and no liability shall be imposed on Collateral Agent for omitting to exercise such rights. 6.09 No Waiver by Collateral Agent. Collateral Agent shall not be deemed to have waived any of its rights and remedies in respect of the Obligations or the Collateral unless such waiver shall be made in writing and signed by Collateral Agent (acting at the written direction of the Required Secured Creditors). No delay or omission on the part of Collateral Agent in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any occasion shall not be construed as a bar to or a waiver of any right or remedy on any future occasion. All rights and remedies of Collateral Agent with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or papers, may be exercised by Collateral Agent (acting at the written direction of the Required Secured Creditors), shall be cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such times as Collateral Agent (acting at the written direction of the Required Secured Creditors) deems expedient. 6.10 Waivers by City. To the extent permitted by applicable law, City hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. 6.11 Marshalliniz. TO THE EXTENT THAT IT LAWFULLY MAY, CITY CONFIDENTIAL DRAFT 2/3/2019 HEREBY AGREES THAT IT WILL NOT INVOKE ANY LAW RELATING TO THE MARSHALLING OF COLLATERAL WHICH MIGHT CAUSE DELAY IN OR IMPEDE THE ENFORCEMENT OF COLLATERAL AGENT'S RIGHTS AND REMEDIES UNDER THIS AGREEMENT OR UNDER ANY OTHER INSTRUMENT CREATING OR EVIDENCING ANY OF THE OBLIGATIONS OR UNDER WHICH ANY OF THE OBLIGATIONS IS OUTSTANDING OR BY WHICH ANY OF THE OBLIGATIONS IS SECURED OR PAYMENT THEREOF IS OTHERWISE ASSURED, AND, TO THE EXTENT THAT IT LAWFULLY MAY, CITY HEREBY IRREVOCABLY WAIVES THE BENEFITS OF ALL SUCH LAWS. Section 7. Miscellaneous. 7.01 Notices. Except as otherwise expressly provided herein, all notices, consents and waivers and other communications made or required to be given pursuant to this Agreement shall be in writing and shall be delivered by hand, mailed by registered or certified mail or prepaid overnight air courier, or by facsimile communications, addressed to the relevant party as provided below their signatures to this Agreement or at such other address for notice as City or Collateral Agent shall last have furnished in writing to the Person giving the notice. A notice addressed as provided herein that (i) is delivered by hand or overnight courier is effective upon delivery, (ii) that is sent by facsimile communication is effective if made by confirmed transmission at a telephone number designated as provided herein for such purpose, and (iii) that is sent by registered or certified mail is effective on the earlier of acknowledgement of receipt as shown on the return receipt or three (3) Business Days after mailing. 7.02 No Waiver. No failure on the part of the Collateral Agent to exercise, and no course of dealing with respect to, and no delay in exercising, any right or power hereunder shall operate as a waiver thereof. 7.03 Amendments. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by City and Collateral Agent. 7.04 Expenses. If City fails to do so, Collateral Agent may, upon receipt from the Required Secured Creditors of written direction and such sums as may be necessary in connection therewith, discharge taxes and any other Liens or encumbrance at any time levied or placed on any of the Collateral. City agrees to reimburse Collateral Agent on demand for any such expenditures made by Collateral Agent, and the Collateral Agent promptly upon receipt thereof shall remit such reimbursed sums to the Required Secured Creditors. For the avoidance of doubt, it is expressly understood and agreed that the Collateral Agent shall not use or expend its own funds in connection with such taxes, Liens or encumbrances. Collateral Agent shall have no obligation to make any such expenditure nor shall the making thereof be construed as a waiver or cure of any Event of Default. City agrees to reimburse Collateral Agent (as such and in its individual capacity) for all reasonable costs and expenses incurred by it (including the reasonable fees and expenses of legal counsel) in connection with (i) the performance by Collateral Agent of its duties under this Agreement, the Intercreditor Agreement or the Control Agreements, (x) protecting, defending or asserting rights and claims of the Collateral Agent in respect of the Collateral, (y) litigation relating to the Collateral, and (z) workout, restructuring or other CONFIDENTIAL DRAFT 2/3/2019 negotiations or proceedings, and (ii) the enforcement of this Section 7.04, and all such reasonable costs and expenses shall be Obligations entitled to the benefits of the collateral security provided pursuant to Section 2. 7.05 Duty of Care, Earnings. Collateral Agent shall have no duty or obligation with respect to the Collateral except for its contractual obligations under this Agreement, the Intercreditor Agreement or the Control Agreements. The Collateral Agent shall have no duty or obligation as to the collection or protection of the Collateral or any income thereon, nor as to the preservation of rights against any Person, beyond the safe custody of any Collateral in the Collateral Agent's possession or control. Without limiting the generality of the foregoing, Collateral Agent shall have no duty (a) other than to instruct City as set forth in Section 4.05 hereof, to see to any recording or filing of any financing statement evidencing a security interest in the Collateral, or to see to the maintenance of any such recording or filing, (b) to see to the payment or discharge of any tax, assessment or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against any part of the Collateral, (c) to confirm or verify the contents of any reports or certificates delivered to Collateral Agent believed by it to be genuine and to have been signed or presented by the proper party or parties, or (d) to ascertain or inquire as to the performance of observance by any other Person of any representations, warranties or covenants. Collateral Agent may require an officer's certificate or an opinion of counsel before acting or refraining from acting, and Collateral Agent shall not be liable for any action it takes or omits to take in good faith in reliance on an officer's certificate or an opinion of counsel. 7.06 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of City, the Secured Creditors, and the Collateral Agent (provided that City shall not assign, transfer or delegate its rights or obligations hereunder without the prior written consent of Collateral Agent) and Collateral Agent shall only transfer or assign its rights hereunder in connection with a resignation or removal from its capacity as Collateral Agent in accordance with the terms of the Intercreditor Agreement). This Agreement shall create a continuing security interest in the Collateral and shall remain in full force and effect in accordance with Section 7.12, and be binding upon City, its successors and assigns, and inure, together with the rights of Collateral Agent hereunder, to the benefit of the Collateral Agent and its successors, transferees and assigns. 7.07 Counterparts. This Agreement and any related amendment or waiver may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument. In proving this Agreement it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought. A facsimile of a signature page hereto shall be as effective as an original signature. 7.08 GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING ARISING OUT CONFIDENTIAL DRAFT 2/3/2019 OF OR RELATING TO THIS AGREEMENT, OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE BROUGHT IN THE COURTS OF THE UNITED STATES OF AMERICA FOR THE CENTRAL DISTRICT OF CALIFORNIA IN LOS ANGELES COUNTY OR, IF SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, THE COURTS OF THE STATE OF CALIFORNIA IN LOS ANGELES COUNTY AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL JURISDICTION AND VENUE OF SUCH COURTS FOR THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND ANY CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS NOTICE ADDRESS APPLICABLE TO THIS AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING. 7.09 WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. 7.10 CONSENT TO INJUNCTIVE RELIEF. WITHOUT LIMITING ANY OTHER RIGHTS OR REMEDIES THAT COLLATERAL AGENT MAY HAVE, CITY ACKNOWLEDGES THAT ITS VIOLATION OF SECTION 5.01 WOULD RESULT IN IRREPARABLE INJURY TO COLLATERAL AGENT FOR WHICH NO ADEQUATE REMEDY AT LAW WOULD BE AVAILABLE. ACCORDINGLY, CITY HEREBY (I) CONSENTS TO THE ENTRY OF AN IMMEDIATE EX -PARTE INJUNCTION, TEMPORARY RESTRAINING ORDER, AND/OR PERMANENT INJUNCTION TO ENFORCE THE PROVISIONS OF SECTION 5.01, IN ADDITION TO ANY OTHER REMEDIES AVAILABLE AT LAW OR IN EQUITY AND (II) WAIVES ANY DEFENSE THAT ADEQUATE REMEDIES ARE AVAILABLE AT LAW AND ANY REQUIREMENT THAT A BOND OR ANY OTHER SECURITY BE POSTED IN CONNECTION WITH THE ENTRY OF ANY RESTRAINING ORDER OR INJUNCTION. 7.11 Captions. The captions and section headings appearing herein are included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Agreement. 7.12 Termination. Unless earlier terminated in writing by the parties hereto, this is a continuing security agreement and the grant of a security interest under this Agreement shall remain in full force and effect and all the rights, powers and remedies of Collateral Agent hereunder shall continue to exist until: (a) the Obligations are paid in full as the same becomes due and payable; (b) the PPA Providers have no further obligation to deliver products or render services (including credit support services) to, or on behalf of, City; (c) City has no further obligations to CONFIDENTIAL DRAFT 2/3/2019 the PPA Providers under any of the Transaction Agreements; and (d) the PPA Providers, upon request of City, have executed and delivered to each of City and the Collateral Agent a written termination statement, and Collateral Agent has reassigned to City, without recourse, the Collateral and all rights conveyed hereby and returned possession of the Collateral to City. Furthermore, it is contemplated by the parties that there may be times when no Obligations are owing; but notwithstanding such occurrences, unless the PPA Providers have executed a written termination under clause (d) above, this Agreement shall remain valid and shall be in full force and effect as to subsequent Obligations, provided Collateral Agent has not executed a written agreement terminating this Agreement. This Agreement shall continue irrespective of the fact that the liability of any other obligor may have ceased, or irrespective of the validity or enforceability of the Transaction Agreements, to which any other obligor may be a party, and notwithstanding the reorganization or bankruptcy of City, or any other event or proceeding affecting City or any other obligor. At City's request, Collateral Agent shall, at City's reasonable expense, instruct Depositary Bank to release all assets credited to the Deposit Accounts to City, and Collateral Agent shall also execute such other documentation as shall be reasonably requested by City to effect the termination and release of the liens on the Collateral, including notice to SCE that the Direction Letter is terminated. 7.13 Severability. The provisions of this Agreement are intended to be severable. If for any reason any of the provisions of this Agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions thereof in any jurisdiction. 7.14 Disclosure of Information. City hereby consents to the disclosure by any PPA Provider or Collateral Agent of any information provided by or relating to City as may be required or reasonably necessary for the administration of this Agreement, the Intercreditor Agreement or the Control Agreements, or the enforcement or protection of any of the rights of the Collateral Agent or the PPA Providers hereunder. [Signatures on following page] CONFIDENTIAL DRAFT 2/3/2019 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an instrument under seal by their authorized representative as of the date first written above. CITY OF BALDWIN PARK, as Pledgor By: Name: Title: CONFIDENTIAL DRAFT 2/3/2019 Notice Address: City of Baldwin Park Attention: Contract Administration 14403 E. Pacific Avenue Baldwin Park, CA 91706 Fax: 626-337-2965 RIVER CITY BANK not in its individual capacity, but solely as Collateral Agent By: Name: Title: River City Bank 2485 Natomas Park Dr. Sacramento, CA 95833 Attention: Cash Management Fax: 916-567-2799 CONFIDENTIAL DRAFT 2/3/2019 Exhibit A Form of Distribution Date Certificate The undersigned, [INSERT NAME], the [INSERT NAME OF OFFICE HELD] of Baldwin Park ("LLq"), hereby certifies, on behalf of City in such capacity and not in its individual capacity, with reference to that certain Security Agreement dated as of , 2019 (capitalized terms used herein shall have the same meaning as set forth in the Security Agreement) between City and , as collateral agent ("Collateral Agent"), to Collateral Agent as follows: This certificate is being delivered to Collateral Agent on or before the date that is three (3) Business Days before the Distribution Date of [ _, 20_]. No Event of Default exists as of the date of this certificate and City does not anticipate that an Event of Default will exist as of the Distribution Date set forth in paragraph 1 above. The funds that are on deposit in the Lockbox Account shall be disbursed on the Distribution Date as follows: [To [INSERT NAME OF APPLICABLE PPA PROVIDER], for payment of its Regular Charges, an aggregate amount equal to [ Dollars ($_�]; [Include this paragraph for each PPA Provider] 2. [To [INSERT NAME OF APPLICABLE PPA PROVIDER], for payment of any Supplemental Payment owing in an aggregate amount equal to [ Dollars ($ )]; [Include this paragraph for each PPA Provider] 3. To CCEA in payment of any amounts owning to CCEA under that certain Administrative Services Agreement between CCEA and City; 4. To Collateral Agent, in respect of Collateral Agent's reasonable out-of-pocket fees and expenses incurred under the Security Agreement or the Intercreditor Agreement that have been invoiced to City, an aggregate amount equal to [ Dollars ($ )]; and 5. The remaining funds, if any, that are on deposit, after retention of the Reserve Amount are to be disbursed to City into the account designated by City. [Signatures on following page] CONFIDENTIAL DRAFT 2/3/2019 I hereby certify, on behalf of and not in my individual capacity, that this Distribution Date Certificate is true and complete in all material respects. By: _ Name: Title: Date: CONFIDENTIAL DRAFT 2/3/2019 F.xhihit R Form of Direction Letter City of Baldwin Park, a California municipal corporation and general law city, d/b/a [Name of CCA Program], 14403 E. Pacific Avenue, Baldwin Park, CA 91706 DIRECTION LETTER VIA EMAIL AND U.S. MAIL Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Email: ccasvcs(Qsce.com , 2019 RE: [NAME OF CCA] Direction Letter Attached please find the Accounts Payable Electronic Funds Transfer Enrollment Form, dated as of , 2019 (the "Payment Instruction"), executed by the City of Baldwin Park ("City") as respecting its [Name of CCA Program] program and instructing SCE to initiate credit entries to account number , which account is held at River City Bank, a California corporation. By the Payment Instruction and this Direction Letter, we are hereby providing SCE with written notice that we wish SCE to initiate credit entries to the above -referenced account. The payment instructions set forth in this letter may only be amended upon the joint instruction of the City and River City Bank, not in its individual capacity, but solely as collateral agent. If you have any questions regarding the Payment Instruction or this Direction Letter, please contact me, , at (_) _- Very truly yours, CITY OF BALDWIN PARK By: Name: Title: CONFIDENTIAL DRAFT 2/3/2019 cc: Stephen Hall, Hall Energy Law PC CONFIDENTIAL DRAFT 2/3/2019 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT, dated as of I by and among RIVER CITY BANK, A CALIFORNIA CORPORATION as Collateral Agent, THE SECURED CREDITORS, and CITY OF BALDWIN PARK, A CALIFORNIA MUNICIPAL CORPORATION AND GENERAL LAW CITY, d/b/a [NAME OF CCA PROGRAM ] CONFIDENTIAL DRAFT 2/3/2019 TABLE OF CONTENTS Page SECTION1. Definitions................................................................................................................ 2 Section 1.1. Definitions............................................................................. Section 1.2. Other Interpretive Provisions............................................................... 5 SECTION 2. Relationships Among Secured Creditors................................................................. 6 Section 2.1. Liens in the Collateral.......................................................................... 6 Section 2.2. No Debt Subordination........................................................................ 6 Section 2.3. Restrictions on Enforcement Action .................................................... 6 Section 2.4. No Restriction on Terms of Power Purchase Agreements ................... 6 Section 2.5. Representations and Warranties........................................................... 7 Section 2.6. Cooperation; Accountings................................................................... 7 SECTION3. Agency Provisions................................................................................................... 7 Section 3.1. Appointment and Authorization of Collateral Agent ........................... 7 Section3.2. Collateral.............................................................................................. 8 Section 3.3. Delegation of Duties............................................................................ 8 Section 3.4. Exculpatory Provisions........................................................................ 9 Section 3.5. Reliance by Collateral Agent............................................................... 9 Section3.6. Knowledge........................................................................................... 9 Section 3.7. Non -Reliance on Collateral Agent and Secured Creditors .................. 9 Section3.8. Reporting............................................................................................ 10 Section 3.9. Indemnification.................................................................................. 10 Section 3.10. Collateral Agent May Act in its Individual Capacity ........................ 10 Section 3.11. Successor Collateral Agent................................................................ 10 SECTION 4. Actions by Collateral Agent................................................................................... 12 Section 4.1. Duties and Obligations....................................................................... 12 Section 4.2. Voting; Amendments to Transaction Agreements ............................. 12 Section 4.3. Actions Pertaining to the Collateral ................................................... 12 CONFIDENTIAL DRAFT 2/3/2019 Section4.4. Duty of Care....................................................................................... 13 Section 4.5. Further Assurances............................................................................. 13 Section 4.6. Distribution of Proceeds of Collateral ............................................... 13 Section 4.7. Deposit Accounts............................................................................... 13 Section 4.8. Restoration of Obligations................................................................. 14 Section 4.9. Privileged Materials........................................................................... 14 Section 4.10. Action Upon Instruction.................................................................... 14 SECTION 5. Bankruptcy Proceedings........................................................................................ 14 SECTION6. Miscellaneous......................................................................................................... 15 Section 6.1. Amendments to this Agreement and Assignments ............................ 15 Section 6.2. Marshalling........................................................................................ 15 Section 6.3. Governing Law; Jurisdiction.............................................................. 15 Section 6.4. Waiver of Jury Trial........................................................................... 16 Section6.5. Joinder................................................................................................ 16 Section 6.6. Counterparts....................................................................................... 16 Section 6.7. Termination........................................................................................ 16 Section 6.8. Controlling Terms.............................................................................. 17 Section6.9. Notices............................................................................................... 17 Exhibit A — Form of Joinder Attachment 5 Agency Agreement CONFIDENTIAL DRAFT 2/3/2019 INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT This INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT (this "Agreement"), dated as of (the "Effective Date"), is entered into by and among (i) River City Bank, a California corporation, not in its individual capacity, but solely in its capacity as Collateral Agent ("Collateral Agent"), (ii) each of the creditors from time to time signatory hereto that are party to a Power Purchase Agreement (each such creditor defined below as a "PPA Provider"), (iii) California Choice Energy Authority ("CCEA"), and (iv) The City of Baldwin Park, a California municipal corporation and general law city, d/b/a [Name of CCA Program] ("City"). RECITALS: A. On behalf of City, CCEA has (i) entered into the Master Agreements (as defined in the Security Agreement) and (ii) may in the future enter into a Power Purchase Agreement (as defined in the Security Agreement) with a PPA Provider, pursuant to which CCEA has agreed, or will agree, to purchase the Product (as defined in the Security Agreement) from such PPA Provider for the account of City; B. City shall sell the Product purchased by CCEA to City's customers at rates established by City from time to time; C. Pursuant to the Security Agreement City has pledged to Collateral Agent, for the benefit of the PPA Providers and CCEA, as Secured Creditors, a first priority continuing security interest in and to the Collateral (as such terms are defined in the Security Agreement); D. City's customers are billed by Southern California Edison ("SCE") amounts they owe for the Product provided by City; E. As of the date hereof, City has directed SCE to remit all present and future collections on accounts receivable now or hereafter billed by SCE on behalf of City to Collateral Agent, for remittance to the Lockbox Account (as defined in the Security Agreement) maintained by Collateral Agent, which direction is irrevocable unless both Collateral Agent, at the direction of the Required Secured Creditors (as defined below), and City direct SCE otherwise; F. Collateral Agent shall have, for the benefit of the Secured Creditors, a first priority continuing security interest in and lien on such receivables, deposit accounts and related Collateral pledged to Collateral Agent for the benefit of the Secured Creditors, as provided in the Security Agreement; G. Distributions from such Collateral shall be made by Collateral Agent as provided in this Agreement and the Security Agreement, with PPA Providers having a senior right to distributions from the Collateral; - 1 - CONFIDENTIAL DRAFT 2/3/2019 H. Secured Creditors desire in this Agreement to appoint River City Bank as Collateral Agent to act on their behalf regarding the administration, collection and enforcement of the Collateral, all as more fully provided herein; and I. Secured Creditors also desire to enter into this Agreement to define the rights, duties, authority and responsibilities of Collateral Agent. NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows: SECTION 1. DEFINITIONS Section 1.1. Definitions Each capitalized term used herein and not defined herein shall have the meaning given to such term in the Security Agreement. The following terms shall have the meanings assigned to them in this Section 1.1 or in the provisions of this Agreement referred to below: "Affiliate" means, at any time, and as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" of a Person means the power, directly or indirectly, either to (a) vote 51 % or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. "Agreement" shall have the meaning assigned thereto in the Preamble hereof. "Applicable Law" means any applicable law, including without limitation any: (a) federal, state, territorial, county, municipal or other governmental or quasi -governmental law, statute, ordinance, rule, regulation, requirement or use or disposal classification or restriction, whether domestic or foreign; (b) judicial, administrative or other governmental or quasi - governmental order, injunction, writ, judgment, decree, ruling, interpretation, finding or other directive, whether domestic or foreign; (c) common law or other legal or quasi -legal precedent; (d) any binding arbitrator's, mediator's or referee's decision, finding, award or recommendation; or (e) charter, rule, regulation or other organizational or governance document of any national securities exchange or market or other self-regulatory organization. "Bankruptcy Code" means the Bankruptcy Reform Act of 1978, as codified under Title 11 of the United States Code, and the rules promulgated thereunder, as the same may be in effect from time to time. `Bankruptcy Proceeding" means, with respect to any Person, the institution by or against such Person of any proceeding seeking relief as a debtor, or seeking to adjudicate such Person as bankrupt or insolvent, or seeking the reorganization, arrangement, adjustment or composition of such Person or its debts, under any law relating to bankruptcy, insolvency, -2- CONFIDENTIAL DRAFT 2/3/2019 reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for such Person or for any substantial part of its property, or a general assignment by such Person for the benefit of its creditors. "Business Day" means any day other than a Saturday, a Sunday or a day on which commercial banks in the States of California or Delaware are required or authorized to be closed. "Citv" means the party identified as such in the Preamble hereof, and its successors and permitted assigns, and includes City in its capacity as a debtor in possession under the Bankruptcy Code. "Collateral" has the meaning given to such term in the Security Agreement. "Collateral Agent" means the party identified as such in the Preamble hereof, and its successors and permitted assigns in such capacity. "Control Agreements" means the Account Control Agreement, dated as of the date hereof, among the Depositary Bank, City and Collateral Agent and any other agreements entered into among City and Depositary Bank which shall designate the Deposit Accounts as blocked accounts under the "control" of Collateral Agent, for the benefit of Secured Creditors, as provided in the UCC, as each such agreement may be amended, supplemented, restated or replaced from time to time. "Customer" means any customer of City who purchases Product from City but is invoiced by SCE, and any other obligor(s) responsible for payment of a Receivable. "Deposit Accounts" has the meaning given to such term in the Security Agreement. "Depositary Bank" has the meaning given to such term in the Security Agreement. "Distribution Date" has the meaning given to such term in the Security Agreement. "Distribution Date Certificate" has the meaning given to such term in the Security Agreement. "Event of Default" has the meaning set forth in the applicable Master Agreement or Power Purchase Agreement. "Joinder" has the meaning given to such term in Section 6.5. "Lien" means any mortgage, pledge, hypothecation, deposit arrangement, encumbrance, lien (statutory or other), assignment, charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any sale governed by Article 9 of the UCC, any conditional sale or title retention agreement, or any capital lease having substantially the same economic effect as any of the foregoing). -3- CONFIDENTIAL DRAFT 2/3/2019 "Lockbox Account" has the meaning given to such term in the Security Agreement. "Master Agreements" means the following: (i) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; (ii) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; (iii) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof; and (iv) the Master Power Purchase and Sale Agreement, dated as of , 201_, between and CCEA, together with the exhibits, schedules, transactions, confirmations, and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof. "Obligations" has the meaning given to such term in the Security Agreement. "Person" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. "Power Purchase Agreement" means each agreement, including the Master Agreements, together with the exhibits, schedules, transactions, confirmations (including confirmations entered into after the date hereof), and any written amendments, modifications, restatements, extensions or supplements thereto or replacements thereof, pursuant to which a PPA Provider sells the Product to CCEA for the account of City, as amended, modified, supplemented, restated, extended or replaced from time to time. "PPA Provider" means each seller of Product under a Power Purchase Agreement that is a party to this Agreement, and its respective successors and assigns. "Product" means one or more of the following: energy, renewable energy attributes, capacity attributes or resource adequacy benefits, or any other similar or related products contemplated in the Power Purchase Agreements. "Receivable" means an Account evidencing City's rights to payment for Product, billed in an invoice sent to a Customer by SCE, together with all late fees and other fees which SCE and City agree are to be charged in such invoice to the Customer by SCE on behalf of City. -4- CONFIDENTIAL DRAFT 2/3/2019 "Required Secured Creditors" means, as of any date, the PPA Provider, or PPA Providers that, as of such date, have at least seventy five percent (75%) of the total aggregate Sharing Percentage, as calculated on such date. "Secured Creditors" means each PPA Provider party to this Agreement, CCEA, and their respective successors and assigns "Security Agreement" means the Security Agreement, dated as of even date herewith, between City and Collateral Agent for the benefit of Secured Creditors, granting a security interest in the Collateral to secure the Obligations, as amended, supplemented, restated or replaced from time to time. "Sharing Percentage" means, as of any date, with respect to each PPA Provider as calculated by City in a commercially reasonable manner, the percentage equivalent of a fraction, (a) the numerator of which is the sum of (i) the outstanding amount of the Obligations of such PPA Provider, as of such date, and (ii) the calculated amount of the Termination Payment, if any, that would be owed to such PPA Provider if a Termination Event occurred on such date, and (b) the denominator of which is the sum of (i) the outstanding aggregate amount of the Obligations of all PPA Providers as of such date, and (ii) the calculated aggregate amount of the Termination Payments, if any, that would be owed to all PPA Providers if a Termination Event occurred on such date. "Termination Event" means, with respect to any Power Purchase Agreement, the termination and/or acceleration thereof in accordance with the terms of such Power Purchase Agreement. "Termination Payment" means, with respect to any Power Purchase Agreement, any and all Obligations arising upon or in connection with a Termination Event under such Power Purchase Agreement, including any termination fees and payments or other amounts owed by City thereunder, as of the date of such Termination Event, as calculated in a commercially reasonable manner by the PPA Provider to such Power Purchase Agreement. "Transaction Agreements" means the Master Agreements, any other Power Purchase Agreements, the Control Agreements, the Security Agreement, this Agreement and all other agreements, instruments or documents to which City is a parry and which are executed and delivered from time to time in connection with or as security for City's obligations under the Master Agreements, any other Power Purchase Agreements and any other Transaction Agreements, as the same may be amended, restated, modified, replaced, extended or supplemented from time to time. "UCC" means the Uniform Commercial Code in effect in the State of California from time to time. -5- CONFIDENTIAL DRAFT 2/3/2019 Section 1.2. Other Interpretive Provisions References to "Sections" shall be to Sections of this Agreement unless otherwise specifically provided. For purposes hereof, "including" is not limiting and "or" is not exclusive. All capitalized terms defined in the UCC and not otherwise defined herein or in the Security Agreement shall have the respective meanings provided for by the UCC. Any of the terms defined in this Agreement may, unless the context otherwise requires, be used in the singular or the plural depending on the reference. All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations. References to any instrument, agreement or document shall include such instrument, agreement or document as supplemented, modified, amended or restated from time to time to the extent permitted by this Agreement or the Security Agreement, as applicable. References to any Person include the successors and permitted assigns of such Person. References to any statute or act shall include all related current regulations and all amendments and any successor statutes, acts and regulations. References to any statute or act, without additional reference, shall be deemed to refer to federal statutes and acts of the United States. References to any agreement, instrument or document shall include all schedules, exhibits, annexes and other attachments thereto. SECTION 2. RELATIONSHIPS AMONG SECURED CREDITORS Section 2.1. Liens in the Collateral At all times, whether before, after or during the pendency of any Bankruptcy Proceeding and notwithstanding the priorities which would ordinarily result from the order of granting of any Liens, the order of attachment or perfection thereof, or the order of filing or recording of any financing statements or other instrument, or the priorities that would otherwise apply under Applicable Law, Collateral Agent, for the benefit of the Secured Creditors, shall have a first priority lien in the Collateral to secure the Obligations. No Secured Creditor will acquire in its own name a Lien in the assets of City to secure any Obligations arising under a Power Purchase Agreement other than Liens arising by operation of law such as setoff rights. Secured Creditors shall share in the Proceeds of the Collateral as provided for in Section 4.6. Section 2.2. No Debt Subordination Nothing in this Agreement shall be construed to be or operate as a subordination of any of the Obligations owed to a Secured Creditor in right of payment to the Obligations owed to any other Secured Creditor. Section 2.3. Restrictions on Enforcement Action So long as any Obligation is outstanding and the Security Agreement remains in effect, the provisions of this Agreement and the Security Agreement shall provide the exclusive method by which Collateral Agent or any Secured Creditor may exercise rights in or assert claims against the Collateral or City pertaining to the Obligations. Notwithstanding the foregoing, nothing in this Agreement shall prohibit or otherwise restrict a Secured Creditor from M CONFIDENTIAL DRAFT 2/3/2019 exercising any right of termination, acceleration or similar right in accordance with its Power Purchase Agreement, or prohibit or otherwise restrict a Secured Creditor from exercising any set- off rights it may have with respect to the Obligations owing to it. Section 2.4. No Restriction on Terms of Power Purchase Agreements This Agreement does not impose any restriction on the terms of a Power Purchase Agreement. City (acting through CCEA) and any PPA Provider are free to agree on any and all of the terms for charges that may be provided for under its Power Purchase Agreement, such as the price for the Product, late fees, and early termination fees. Without limiting the foregoing, no PPA Provider shall be restricted as to the amount or output of the Product it sells to CCEA, on behalf of City, or the length of such Power Purchase Agreement, or any amendment thereof. Upon request by the Collateral Agent, each PPA Provider will disclose to Collateral Agent the Obligations then due and owing to such PPA Provider in an itemized manner, and City, on its own behalf and on behalf of the CCEA, consents to such disclosure to such Person or any party hereto. Section 2.5. Representations and Warranties Each Secured Creditor represents and warrants to the other parties hereto that: (a) the execution, delivery and performance by such Secured Creditor of this Agreement has been duly authorized by all necessary corporate or similar proceedings and does not and will not contravene any provision of law, its charter or by-laws or any amendment thereof, or of any indenture, agreement, instrument or undertaking binding upon such Secured Creditor; (b) the execution, delivery and performance by such Secured Creditor of this Agreement will result in a valid and legally binding obligation of such Secured Creditor enforceable against such Secured Creditor in accordance with its terms; and (c) any Termination Payment calculated by it and provided to the Collateral Agent or the other Secured Creditors shall be calculated in good faith, in accordance with its Power Purchase Agreement, and consistent with such Secured Creditor's historical practices. Section 2.6. Cooperation; Accountings Each Secured Creditor will, upon the reasonable request of the Collateral Agent, from time to time execute and deliver or cause to be executed and delivered such further instruments, and do and cause to be done such further acts as may be reasonably necessary or proper to carry out more effectively the provisions of this Agreement. Each Secured Creditor agrees to provide to the Collateral Agent upon reasonable request a statement of all payments received by it in respect of the Obligations pertaining to its Power Purchase Agreement. -7- CONFIDENTIAL DRAFT 2/3/2019 SECTION 3. AGENCY PROVISIONS Section 3.1. Appointment and Authorization of Collateral Agent (a) Each Secured Creditor hereby designates and appoints River City Bank, as Collateral Agent of such Secured Creditor under this Agreement and River City Bank hereby accepts such designation and appointment. The Collateral Agent is a non - fiduciary agent of the Secured Creditors and does not act in a fiduciary capacity or as trustee for the Secured Creditors or Collateral. (b) Notwithstanding any provision to the contrary elsewhere in this Agreement, Collateral Agent shall not have any duties or responsibilities except those expressly set forth herein and in the Security Agreement, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against Collateral Agent. The right or power of Collateral Agent to perform any discretionary act hereunder shall not be construed as a duty. Collateral Agent is hereby authorized, empowered and instructed to execute, deliver and perform its obligations under this Agreement, the Security Agreement, the Control Agreements and each other document as may be necessary or convenient in connection with the foregoing; provided, however, that the Collateral Agent shall not amend, modify or terminate the Control Agreements without the prior written consent of the Secured Creditors. (c) Collateral Agent shall not (i) be subject to any fiduciary or other implied duties, (ii) have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the Security Agreement, the Control Agreements, or other agreement to which the Collateral Agent is a party, and (iii) be required to take action that, in its opinion or the opinion of its counsel, may expose Collateral Agent to liability. (d) The Collateral Agent, hereby represents and warrants that (i) it has all requisite power and authority to execute, deliver and perform under this Agreement; (ii) the execution, delivery and performance by it of this Agreement has been duly authorized by all requisite corporate or other action; (iii) no consent or approval of any other Person and no consent, license, approval or authorization of any governmental authority is required in connection with the execution, delivery, and performance by it of this Agreement; and (iv) this Agreement constitutes its legal, valid and binding obligation enforceable in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws in effect from time to time affecting the rights of creditors generally and general principles of equity regardless of whether such enforcement is considered in a proceeding in equity or at law. Section 3.2. Collateral (a) Deposit Accounts Subject to Collateral Agent's Control. CONFIDENTIAL DRAFT 2/3/2019 Collateral Agent agrees that its security interest and right of setoff in and to the Deposit Accounts is held for the benefit of all the Secured Creditors and itself as Collateral Agent, and that Collateral Agent will comply with this Agreement and the Security Agreement in distributing monies received from such Deposit Accounts. (b) Collateral Held by Secured Creditors. Each Secured Creditor hereby acknowledges that if any Secured Creditor (individually or through its own custodian) shall hold or control, at any time, any assets comprising Collateral, such possession or control is also held for the benefit of Collateral Agent for the benefit of the Secured Creditors. The foregoing sentence shall not be construed to impose any duty on a Secured Creditor (or any third party acting on its behalf) with respect to such Collateral if it is not perfected by possession or control. Section 3.3. Delegation of Duties Collateral Agent may exercise its powers and execute any of its duties under this Agreement by or through employees, agents, and attorneys -in -fact, and shall be entitled to take and to rely on advice of counsel concerning all matters pertaining to such powers and duties. Subject to Section 3.4, Collateral Agent shall not be responsible for the negligence or misconduct of any agents or attorneys -in -fact unless Collateral Agent acted in bad faith or gross negligence in the selection of such agents or attorneys -in -fact. Collateral Agent may utilize the services of such Persons as Collateral Agent in its reasonable discretion may determine, and shall be entitled to indemnity hereunder for all reasonable fees and expenses of such Persons. Section 3.4. Exculpatory Provisions Neither Collateral Agent (as such or in its individual capacity) nor any of Collateral Agent's officers, directors, employees, agents, attorneys -in -fact, or Affiliates shall be (a) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement (except for its or such Person's own bad faith, gross negligence (or ordinary negligence in the handling or disbursement of funds actually received by it pursuant to the terms hereof) or willful misconduct, respectively) or (b) responsible in any manner to City or any of the Secured Creditors for any recitals, statements, representations, warranties or covenants made by City or any Secured Creditor or any officer thereof contained in any certificate, report, statement or other document referred to or provided for in, or received by, Collateral Agent under or in connection with this Agreement or any other document in any way connected therewith, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of any Lien or the perfection or priority of any such Lien (including any Lien in the Collateral), or for any failure of City to perform its obligations thereunder. Section 3.5. Reliance by Collateral Agent Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing (in electronic or physical form), resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or CONFIDENTIAL DRAFT 2/3/2019 other document or conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to City), independent accountants and other experts selected by Collateral Agent. Collateral Agent shall be fully justified in failing or refusing to take action not provided for under this Agreement unless it shall first be indemnified to its reasonable satisfaction by City against any and all liability and expense which may be incurred by it by reason of taking, continuing to take or refraining from taking any such action. Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with the provisions of Section 4 hereof, and any action taken or failure to act pursuant thereto shall be binding upon all the Secured Creditors. Section 3.6. Knowledge Collateral Agent shall not be deemed to have knowledge or notice of any facts regarding the Collateral or the Obligations unless Collateral Agent has received written notice from the Secured Creditor or City referring to this Agreement, describing such facts in reasonable detail. Section 3.7. Non -Reliance on Collateral Agent and Secured Creditors Each Secured Creditor expressly acknowledges that except as expressly set forth in this Agreement, neither Collateral Agent (as such or in its individual capacity) nor any of Collateral Agent's officers, directors, employees, agents, attorneys -in -fact, or Affiliates has made any representations or warranties to it, except as expressly provided herein at Section 3.1(d) and that no act by Collateral Agent hereinafter taken shall be deemed to constitute any representation or warranty by Collateral Agent (as such or in its individual capacity) to any Secured Creditor. Section 3.8. Reporting City shall provide online access for the Lockbox Account that enables the Collateral Agent and the Secured Creditors to view the balance of the Lockbox Account at any time. Upon written request by a Secured Creditor, Collateral Agent will provide such Secured Creditor with a copy of the bank statement for the Lockbox Account no later than five (5) Business Days following receipt thereof by the Collateral Agent. Collateral Agent shall have no duty or responsibility to provide the Secured Creditors with, or otherwise monitor or review in any respect, any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of City which may come into the possession of Collateral Agent or any of its officers, directors, employees, agents, attorneys -in -fact, or Affiliates. Collateral Agent shall provide to Secured Creditors copies of all notices received by it regarding the Collateral, the Security Agreement or this Agreement; provided that the failure to provide such copies shall not cause Collateral Agent (as such or in its individual capacity) to incur liability to any Person. Collateral Agent shall promptly (but in no event more than 3 Business Days) after Collateral Agent's receipt of a written request from a Secured Creditor provide a report to all Secured Creditors regarding the status of any payments or distributions of Collateral received by Collateral Agent. -10- CONFIDENTIAL DRAFT 2/3/2019 Section 3.9. Indemnification City shall indemnify Collateral Agent (as such and in its individual capacity) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time be imposed on, incurred by or asserted against Collateral Agent (as such or in its individual capacity) arising out of actions or omissions of Collateral Agent arising out of this Agreement; provide d that neither City nor the Secured Creditors shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely from Collateral Agent's fraud, willful misconduct, gross negligence or bad faith. The agreements in this Section 3.9 shall survive the repayment of the Obligations and the termination of this Agreement. Section 3.10. Collateral Agent May Act in its Individual Capacity River City Bank, a California corporation, and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with City and its Affiliates as though it was not Collateral Agent hereunder. Section 3.11. Successor Collateral Agent (a) Collateral Agent may resign at any time upon at least 60 days' prior written notice to the Secured Creditors and City, or may be removed by the demand of the Required Secured Creditors for cause at any time if Collateral Agent has failed to take any action that Collateral Agent is required to take hereunder after request by a Secured Creditor, or Collateral Agent has taken any action hereunder that Collateral Agent is not authorized to take hereunder or that violates the terms hereof and, in either case, has not remedied such failure or violation with reasonable promptness after a written request for corrective action is delivered to Collateral Agent. After any resignation or removal hereunder of Collateral Agent, the provisions of this Section 3 shall continue to be binding upon and inure to its benefit as to any actions taken or omitted to be taken by it in its capacity as Collateral Agent hereunder while it was Collateral Agent under this Agreement. (b) Upon receiving written notice of any such resignation or removal, a successor Collateral Agent, reasonably acceptable to City, shall be appointed by the Secured Creditors provided, if an Event of Default as to City has occurred no such acceptance of the successor Collateral Agent by City shall be required. If a successor Collateral Agent shall not have been appointed pursuant to this Section 3.1 1(b) within 60 days after Collateral Agent's notice of resignation or upon removal of Collateral Agent, then any Secured Creditor or Collateral Agent (unless Collateral Agent is being removed) may petition a court of competent jurisdiction for the appointment of a successor Collateral Agent (it being expressly understood and agreed that any such petition by the Collateral Agent shall be at the expense of the Secured Creditors, jointly and severally) and the Collateral Agent shall continue its functions in accordance with subsection (c) - 11 - CONFIDENTIAL DRAFT 2/3/2019 below. The appointment of a successor Collateral Agent pursuant to this Section 3.11(b) shall become effective upon the acceptance of the appointment as Collateral Agent hereunder by a successor Collateral Agent. Upon such effective appointment, the successor Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent. (c) The resignation or removal of a Collateral Agent shall take effect on the day specified in the notice described in Section 3.11(a), unless previously a successor Collateral Agent shall have been appointed and shall have accepted such appointment, in which event such resignation or removal shall take effect immediately upon the acceptance of such appointment by such successor Collateral Agent, androp vided, further, that no resignation or removal shall be effective hereunder unless and until a successor Collateral Agent shall have been appointed and shall have accepted such appointment. (d) Upon the effective appointment of and acceptance by a successor Collateral Agent, the successor Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent and the predecessor Collateral Agent hereby appoints the successor Collateral Agent the attorney- in-fact of such predecessor Collateral Agent to accomplish the purposes hereof, which appointment is coupled with an interest. Such appointment and designation shall be full evidence of the right and authority to act as Collateral Agent hereunder and all power, duties, documents, rights and authority of the previous Collateral Agent shall rest in the successor, without any further deed or conveyance. The predecessor Collateral Agent shall, nevertheless, on the written request of the Secured Creditors or successor Collateral Agent, execute and deliver any other such instrument transferring to such successor Collateral Agent all the Collateral, properties, rights, power, duties, authority and title of such predecessor. In connection with the resignation or removal of Collateral Agent, City, to the extent requested by the Secured Creditors or Collateral Agent, shall procure and execute any and all documents, conveyances or instruments requested, including any documentation appropriate to reflect the transfer of the Lien or other rights granted herein to such successor Collateral Agent. SECTION 4. ACTIONS BY COLLATERAL AGENT Section 4.1. Duties and Obligations The duties and obligations of Collateral Agent are only those set forth in this Agreement and the Security Agreement. The Collateral Agent shall not have any duty or obligation to manage, control, use, sell, dispose of or otherwise deal with the Collateral, or to otherwise take or refrain from taking any action hereunder, except as expressly provided by the terms hereof or in written instructions received pursuant hereto, and no implied duties or obligations shall be read into this Agreement against the Collateral Agent. Upon the written instruction at any time and from time to time of the Required Secured Creditors, the Collateral Agent shall take such action or refrain from taking such action, not inconsistent with the provisions of this Agreement, as may be specified in such instruction. Notwithstanding the -12- CONFIDENTIAL DRAFT 2/3/2019 foregoing, Collateral Agent shall not be required to take, or refrain from taking, any action that, in its opinion or in the opinion of its counsel, may expose Collateral Agent (as such or in its individual capacity) to liability. Collateral Agent (as such or in its individual capacity) shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that such action or omission by Collateral Agent does not constitute willful misconduct, gross negligence or bad faith. The Collateral Agent shall not be obligated to expend its own funds or to incur any obligation in its individual capacity in the performance of any of its obligations under or in connection with this Agreement, the Security Agreement, the Control Agreements or any related document. Section 4.2. Voting; Amendments to Transaction Agreements Collateral Agent shall act at the written instruction of the Required Secured Creditors in connection with all material actions, matters or decisions, or any actions, matters or decisions requiring a vote or instruction under this Agreement, under any Control Agreement or the Security Agreement, including with respect to Section 5.01 of the Security Agreement. Notwithstanding the foregoing or anything in any Transaction Agreement to the contrary, without the prior written consent of all of the Secured Creditors, Collateral Agent shall not enter into any amendments, modifications, restatements, extensions or supplements of this Agreement, the Control Agreement or the Security Agreement. Section 4.3. Actions Pertaining to the Collateral Collateral Agent has the sole and exclusive standing and right to assert claims relating to the Collateral, and no Secured Creditor may enforce or assert against City, the Deposit Accounts, the Depositary Bank, or any other Person, any claims relating to the Collateral. Collateral Agent shall only act at the written instruction of the Required Secured Creditors in (a) taking any action under this Agreement, the Security Agreement or any Control Agreement with respect to the Collateral following an Event of Default and (b) asserting any claim under this Agreement, the Security Agreement or any Control Agreement. Notwithstanding the foregoing, if Collateral Agent deems it prudent to take reasonable actions, without the instruction of a Secured Creditor, to protect the Collateral, it may (but shall be under no obligation to) do so and thereafter provide written notice to all the Secured Creditors of such actions, and no provision of this Agreement shall restrict Collateral Agent from exercising such rights and no liability shall be imposed on Collateral Agent for omitting to exercise such rights. Section 4.4. Duty of Care Collateral Agent shall have no duty or obligation as to the collection or protection of the Collateral or any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation of rights pertaining to the Collateral beyond the safe custody of any Collateral in Collateral Agent's actual possession. Without limiting the generality of the foregoing, Collateral Agent shall have no duty or obligation (a) other than to instruct City as set forth in Section 4.05 of the Security Agreement, to see to any recording or filing of any financing statement evidencing a security interest in the Collateral, or to see to the maintenance of any such recording or filing, (b) to see to the payment or discharge of any tax, assessment or other -13- CONFIDENTIAL DRAFT 2/3/2019 governmental charge or any Lien or encumbrance of any kind owing with respect to, assessed or levied against any part of the Collateral, (c) to confirm or verify the contents of any reports or certificates delivered to Collateral Agent reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties, or (d) to ascertain or inquire as to the performance of observance by any other Person of any representations, warranties or covenants. Collateral Agent may require an officer's certificate or an opinion of counsel before acting or refraining from acting, and Collateral Agent shall not be liable for any action it takes or omits to take in good faith in reliance on an officer's certificate or an opinion of counsel. Section 4.5. Further Assurances City and each Secured Creditor shall take such actions and cooperate with Collateral Agent as may be reasonably requested, and execute such documents as may be reasonably necessary, to carry out or effect the intent of the parties hereto. Section 4.6. Distribution of Proceeds of Collateral Collateral Agent shall distribute the Proceeds of the Collateral as provided in Section 6.02 of the Security Agreement. Collateral Agent shall rely on the provisions in Section 6 of the Security Agreement for calculating the Obligations payable from such Proceeds. Collateral Agent has no duty or obligation to make an independent inquiry regarding the foregoing calculations or the facts on which such calculations are based. Section 4.7. Deposit Accounts Subject to distributions permitted under the Security Agreement or this Agreement, the Proceeds of Collateral shall be maintained in the Deposit Accounts, and no such account shall be required to be interest bearing. Section 4.8. Restoration of Obligations In the event any payment of, or any application of any amount, asset or property to, any of the Obligations owed to any Secured Creditor or any obligations owed to Collateral Agent under the Security Agreement or this Agreement, or any part thereof, made at any time (including, without limitation, made prior to any applicable Bankruptcy Proceeding) is rescinded or are otherwise to be restored or returned by such Secured Creditor or Collateral Agent at any time after such payment or application, whether by order of any court, by settlement, or otherwise, then the respective obligations and the security interests of such Person shall be reinstated, all as though such payment or application had never been made. Section 4.9. Privileged Materials With respect to all materials and communications relating to the Collateral with or in the possession of Collateral Agent or its counsel that are subject to any claim of privilege in favor of Collateral Agent, each Secured Creditor agrees that Collateral Agent shall not be -14- CONFIDENTIAL DRAFT 2/3/2019 required to take any action under this Agreement that compromises the privileged nature of such conversations or materials, and all such privileges shall be preserved. Section 4.10. Action Upon Instruction Whenever the Collateral Agent is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or any document, or is unsure as to the application, intent, interpretation or meaning of any provision of this Agreement or any other document, or any such provision may be ambiguous as to its application or in conflict with any other applicable provision, permits any determination by the Collateral Agent, or is silent or incomplete as to the course of action that the Collateral Agent is required to take with respect to a particular set of facts, then the Collateral Agent may give notice (in such form as shall be appropriate under the circumstances) to the Secured Creditors requesting instruction as to the course of action to be adopted, and, to the extent the Collateral Agent acts or refrains from acting in good faith in accordance with any such written instruction of the Required Secured Creditors received, the Collateral Agent shall not be personally liable on account of such action or inaction to any Person. If the Collateral Agent shall not have received appropriate instruction from the Required Secured Creditors within ten (10) days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action which is consistent, in its view, with this Agreement, the Security Agreement, and Control Agreements or other documents, and as it shall deem to be in the best interests of the Secured Creditors, and the Collateral Agent shall have no personal liability to any Person for any such action or inaction. SECTION 5. BANKRUPTCY PROCEEDINGS The following provisions shall apply during any Bankruptcy Proceeding of City: (a) Collateral Agent shall represent all Secured Creditors in connection with all matters directly relating solely to the Collateral, use of cash collateral, relief from the automatic stay and adequate protection. In such Bankruptcy Proceeding, Collateral Agent shall act on the instruction of the Required Secured Creditors. (b) Each Secured Creditor shall be free to act independently on any issue not directly relating solely to the Collateral. (c) Each Secured Creditor shall file its own proof of claim in respect of the Obligations owing to it. Collateral Agent shall have the right to file (but has no obligation to file) a proof of claim in its capacity as Collateral Agent in respect of any or all of the Obligations. (d) Each Secured Creditor shall have the sole right to vote the claims pertaining to the Obligations owing to it by City. -15- CONFIDENTIAL DRAFT 2/3/2019 (e) Any property received by any Secured Creditor with respect to the Obligations owing to it as a result of, or during, any Bankruptcy Proceeding will be delivered promptly to Collateral Agent for distribution in accordance with Section 4.6. SECTION 6. MISCELLANEOUS Section 6.1. Amendments to this Agreement and Assignments This Agreement may not be modified, altered or amended, except by an agreement in writing signed by Collateral Agent, City and all the Secured Creditors. This Agreement is assignable by a Secured Creditor. Collateral Agent shall only transfer or assign its rights hereunder by operation of law or in connection with a resignation or removal from its capacity as Collateral Agent in accordance with the terms of this Agreement and, if required by the successor Collateral Agent, the parties agree to execute and deliver a restated Agreement in the event there is a replacement of Collateral Agent. City shall not assign, transfer or delegate its rights or obligations hereunder without the prior written consent of all the Secured Creditors and Collateral Agent. Any assignee of a PPA Provider under a Power Purchase Agreement shall comply with Section 6.5. Section 6.2. Marshalling Collateral Agent shall not be required to marshal any present or future security for (including, without limitation, the Collateral), or guaranties of the Obligations or to resort to such security or guaranties in any particular order; and all of each of such Person's rights in respect of such security and guaranties shall be cumulative and in addition to all other rights, however existing or arising. Section 6.3. Governing Law; Jurisdiction THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE BROUGHT IN THE COURTS OF THE UNITED STATES OF AMERICA FOR THE DISTRICT OF CALIFORNIA IN COUNTY OR, IF SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, THE COURTS OF THE STATE OF CALIFORNIA IN COUNTY AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL JURISDICTION AND VENUE OF SUCH COURTS FOR THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND ANY CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR swev CONFIDENTIAL DRAFT 2/3/2019 PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS NOTICE ADDRESS APPLICABLE TO THIS AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING. Section 6.4. Waiver of Jury Trial EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. Section 6.5. Joinder Each time CCEA, on behalf of City, enters into a new Power Purchase Agreement as to which the counterparty thereto is to share in the Collateral, such counterparty shall execute and deliver to Collateral Agent a Joinder to Intercreditor and Collateral Agency Agreement in the form of Exhibit A hereto (a "Joinder") at the same time as such counterparty executes the Power Purchase Agreement. Further, no PPA Provider may assign or transfer its rights hereunder or under a Power Purchase Agreement without such assignees or transferees delivering an executed Joinder to Collateral Agent. By executing a Joinder, such counterparty agrees to be bound by the terms of this Agreement as though named herein and shall share in the Collateral in accordance with the provisions of this Agreement. Each such counterparty that is an assignee shall upon execution and delivery of a Joinder be the PPA Provider and Secured Creditor under this Agreement representing the holder of the assigned Obligations and shall be obligated for all obligations to Collateral Agent of its transferor, and such transferor shall cease forthwith to be a Secured Creditor hereunder. Section 6.6. Counterparts This Agreement and any related amendment or waiver may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument. In proving this Agreement it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought. A facsimile of a signature page hereto or to any Joinder shall be as effective as an original signature. Section 6.7. Termination Unless earlier terminated by the parties hereto, upon termination of the Security Agreement in accordance with its terms and upon payment of all Obligations owed to Collateral Agent, this Agreement shall terminate, except for those provisions hereof that by their express terms shall survive the termination of this Agreement; provided, however, if all or any part of the Obligations are reinstated pursuant to Section 4.8, then this Agreement shall be renewed as of such date and shall thereafter continue in full force and effect to the extent of the Obligations so invalidated, set aside or repaid, or that remain outstanding. -17- CONFIDENTIAL DRAFT 2/3/2019 Section 6.8. Controlling Terms In the event of any inconsistency between this Agreement and the Security Agreement, the Security Agreement shall control. Section 6.9. Notices Except as otherwise expressly provided herein, all notices, consents and waivers and other communications made or required to be given pursuant to this Agreement shall be in writing and shall be delivered by hand, mailed by registered or certified mail or prepaid overnight air courier, or by facsimile communications, addressed as provided below their signatures to this Agreement or at such other address for notice as City, Collateral Agent or such Secured Creditor shall last have furnished in writing to the Person giving the notice. A notice addressed as provided herein that (i) is delivered by hand or overnight courier is effective upon delivery, (ii) is sent by facsimile communication is effective if made by confirmed transmission at a telephone number designated as provided herein for such purpose, and (iii) is sent by registered or certified mail is effective on the earlier of acknowledgement of receipt as shown on the return receipt or three (3) Business Days after mailing. [Signatures on following pages] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an instrument under seal by their authorized representative as of the Effective Date. RIVER CITY BANK, not in its individual capacity, but solely as Collateral Agent MC -10 CONFIDENTIAL DRAFT 2/3/2019 IM0 By: Name: Title: Notice Address: River City Bank 2485 Natomas Park Dr. Sacramento, CA 95833 Attention: Cash Management Fax: 916-567-2799 Email: cashmamtgrivercitybank.com CONFIDENTIAL DRAFT 2/3/2019 as Secured Creditor By: Name: Title: Notice Address: Attention: CONFIDENTIAL DRAFT 2/3/2019 CITY OF BALDWIN PARK By: Name: Title: Notice Address: City of Baldwin Park Attention: Contract Administration 14403 E. Pacific Avenue Baldwin Park, CA 91706 Fax: 626-337-2965 CONFIDENTIAL DRAFT 2/3/2019 CALIFORNIA CHOICE ENERGY AUTHORITY By: Name: Title: Notice Address: California Choice Energy Authority Attention: Contract Administration 44933 Fern Avenue Lancaster, CA 93534 CONFIDENTIAL DRAFT 2/3/2019 EXHIBIT A JOINDER TO INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT River City Bank, in its capacity as Collateral Agent 2485 Natomas Park Dr. Sacramento, CA 95833 Attention: Cash Management Reference: Reference is made to the Intercreditor and Collateral Agency Agreement, dated as of 2019 (as amended or restated from time to time, the "Intercreditor Agreement"; capitalized terms used but not otherwise defined herein shall have the meaning ascribed thereto in the Intercreditor Agreement), among River City Bank, as Collateral Agent, and the PPA Providers party thereto, relating to the City of Baldwin Park, a California municipal corporation and general law city, d/b/a [Name of CCA Program] ("[CCA]"). By executing and delivering this Joinder to Intercreditor and Collateral Agency Agreement (this "Joinder"), the undersigned holder of the Obligations arising under that certain Power Purchase Agreement between CCEA and the undersigned, a copy of which is enclosed with this Joinder, (1) agrees to the appointment of River City Bank, as its Collateral Agent in accordance with Section 3.1 of the Intercreditor Agreement, and (2) agrees to be bound by all of the terms and provisions of the Intercreditor Agreement. The address set forth under the signature of the undersigned constitutes its address for the purposes of Section 6.9 of the Intercreditor Agreement. Dated as of: _, 20_ Title: [Insert address for notices] M►"Im Attachment 6 Deposit Account Control DRAFT 29 JANUARY 2019 DATED as of , 2019 (1) River City Bank, a California corporation, as Account Bank, (2) City of Baldwin Park, a California municipal corporation and general law city, and (3) River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, as Secured Party. ACCOUNT CONTROL AGREEMENT 1 ACCOUNT CONTROL AGREEMENT (this "Agreement") dated as of (the "Effective Date") BETWEEN: (1) RIVER CITY BANK, a California corporation (the "Account Bank"); (2) CITY OF BALDWIN PARK, a California municipal corporation and charter city, d/b/a [CCA Program Name] (" ly"); (3) RIVER CITY BANK, a California corporation, not in its individual capacity, but solely as collateral agent (the "Secured Party"). WHEREAS: (A) City has pledged to the Secured Party (for the benefit of the PPA Providers and California Choice Energy Authority (as defined in the Security Agreement), as secured creditors) all of the Collateral (as defined in the Security Agreement), pursuant to that certain Security Agreement between City and Secured Party dated (the "Security Agreement"); (B) City shall direct Southern California Edison ("SCE") to remit all present and future collections on accounts receivable now or hereafter billed by SCE and owed by City's customers to Secured Party, for remittance to a Lockbox Account (as defined in the Security Agreement) maintained by Secured Party; (C) Secured Party shall have, for the benefit of the Secured Creditors (as defined in the Security Agreement), a first priority continuing security interest in and lien on such Collateral pledged to Secured Party for the benefit of the Secured Creditors, as provided in the Security Agreement; (D) City intends that Secured Party shall distribute the Collateral deposited into the Lockbox Account in accordance with the provisions of the Security Agreement. NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows: Unless otherwise defined herein, all capitalized terms used herein and defined in the Security Agreement shall be used herein as therein defined. Reference to singular terms shall include the plural and vice versa. THE ACCOUNTS. 2 City hereby requests that Account Bank open, and Account Bank hereby confirms that it has opened, account number * * * * * * (a non-interest-bearing deposit account held in the name of City) which will be subject to, and administered in accordance with, the terms of this Agreement (together, the "Lockbox Account"). The parties hereto agree that the Lockbox Account shall be funded solely by electronic transfers of immediately available funds and that Account Bank shall not be required to accept any other items for deposit into the Lockbox Account. All amounts payable for deposit into the Lockbox Account shall be paid to Account Bank at the following accounts: Bank: River City Bank ABA#: Account No.: * * * * * * 2. CONTROL OF THE ACCOUNTS / PAYMENT MECHANICS. (a) The Lockbox Account shall be maintained by Account Bank in the name of City and shall be under the sole dominion and control of Secured Party. Account Bank agrees that it will comply with written instructions originated by Secured Party directing disposition of the funds in the Lockbox Account without further consent by City or otherwise. (b) Account Bank (i) shall disburse funds held in the Lockbox Account as instructed by Secured Parry and (ii) agrees that, except as otherwise expressly provided herein, City will not have access to the funds in the Lockbox Account and that the Account Bank will not agree with City or any other party (other than the Secured Parry) to comply with any instructions for the disposition of the funds in the Lockbox Account originated by City or such other party. 3. STATEMENTS AND OTHER INFORMATION. (a) Account Bank shall provide Secured Party with copies of the regular monthly bank statements of the Lockbox Account at such times such statements are provided to City and such other information relating to the Lockbox Account as shall reasonably be requested by Secured Party or City. Account Bank shall also deliver a copy of all notices and statements required to be sent by it to City pursuant to any agreement governing or related to the Lockbox Account, to which Account Bank is a party, to Secured Party at such times such notices and statements are provided to City. Except as otherwise required by law, Account Bank will use reasonable efforts promptly to notify Secured Party and City if Account Bank receives a notice that any other person claims that it has an interest in the Lockbox Account. As of the date of this Agreement, Account Bank confirms that it has not received notice that any other person has any interest in the Lockbox Account. (b) Account Bank hereby confirms that (i) the Lockbox Account has been established and is maintained with Account Bank on its books and records, (ii) Account Bank 3 is a bank within the meaning of Section 9-102(a)(8) of the Uniform Commercial Code of California, (iii) the Lockbox Account is a deposit account within the meaning of Section 9-102(a)(29) of the Uniform Commercial Code of California, and (iv) the jurisdiction of Account Bank for the purposes of Article 9 of the Uniform Commercial Code of California is California. 4. FEES. City agrees to pay on demand all usual and customary service charges, transfer fees and account maintenance fees of Account Bank in connection with the Lockbox Account in accordance with the terms of the separate fee agreement entered into by City and Account Bank. 5. SET-OFF. Account Bank hereby agrees that Account Bank will not exercise or claim any right of set- off or banker's lien against the Lockbox Account. As of the date of this Agreement, Account Bank does not know of any claim to or interest in the Lockbox Account, except for claims and interests of the parties hereto. All of Account Bank's present and future rights against the Lockbox Account are subordinate to Secured Party's security interest therein. 6. ACCOUNT BANK. The acceptance by Account Bank of its duties under this Agreement is subject to the following terms and conditions, which the parties to this Agreement hereby agree shall govern and control with respect to all of Account Bank's rights, duties, liabilities and immunities: (a) Account Bank shall be protected in acting upon any written notice, certificate, resolution, instruction, request, authorization or other paper or document as to the due execution thereof and the validity and effectiveness of the provisions thereof and as to the truth of any information therein contained, which it in good faith believes to be genuine and to have been signed or presented by the proper party or parties in accordance with the terms of this Agreement. (b) Account Bank may act relative hereto upon advice of counsel in reference to any matter connected herewith, and shall not be liable for any mistake of fact or error of judgment, or any acts or omissions of any kind unless caused by its willful misconduct or gross negligence. If at any time Account Bank determines that it requires or desires guidance regarding the application of any provision of this Agreement or any other document, regarding compliance with any direction it receives hereunder, Account Bank may deliver a notice to Secured Party (or City after Secured Party has informed Account Bank that City has satisfied all of its obligations under the Power Purchase Agreements) requesting written instructions as to such application or compliance, and such instructions by or on behalf of Secured Party (or City after Secured Party has informed Account Bank that City has satisfied all of its obligations under the Power Purchase Agreements), as applicable, shall constitute full and complete authorization and protection for 4 actions taken and other performance by Account Bank in reliance thereon. Until Account Bank has received such instructions after delivering such notice, it may, but shall be under no duty to, take or refrain from taking any action with respect to the matters described in such notice. (c) This Agreement sets forth exclusively the duties of Account Bank with respect to any and all matters pertinent hereto, and no implied duties or obligations shall be read into this Agreement against Account Bank. (d) Any funds held by Account Bank, as such, need not be segregated from other funds except to the extent required by mandatory provisions of law. 7. REPRESENTATIONS OF ACCOUNT BANK. Account Bank represents and warrants as to itself (as set forth below) to Secured Parry as follows, such representations are being made on the date of the execution and delivery of this Agreement, except to the extent that such representations and warranties relate solely to an earlier date (in which case such representations and warranties are correct on and as of such earlier date): (a) Organization, Corporate Authority. Account Bank represents and warrants that it is a national banking association duly organized and validly existing in good standing under the laws of the United States of America and has the corporate power and authority to enter into and perform its obligations under this Agreement, and has full right, power and authority to enter into and perform its obligations under this Agreement. (b) Authorization. Account Bank represents and warrants that this Agreement has been duly executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its own behalf. (c) Legal, Valid and Binding. Account Bank represents and warrants that this Agreement -has been duly executed and delivered by it and, assuming that this Agreement is the legal, valid and binding obligation of each other party thereto, is the legal, valid and binding obligation of Account Bank, enforceable against Account Bank in accordance with its terms. (d) No Violation. Account Bank represents and warrants that this Agreement has been duly authorized by all necessary corporate action on its part, and neither the execution and delivery thereof nor its performance of any of the terms and provisions thereof will violate any federal law or regulation relating to its banking or trust powers or contravene or result in any breach of, or constitute any default under its charter or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it or its properties may be bound or affected. 8. EXCULPATION OF ACCOUNT BANK; INDEMNIFICATION BY CITY. 5 Each of City and Secured Party agrees that Account Bank shall have no liability to any of them for any loss or damage that any or all may claim to have suffered or incurred, either directly or indirectly, by reason of this Agreement or any transaction or service contemplated by the provisions hereof, unless occasioned by the gross negligence, breach of an express term of this Agreement or willful misconduct of Account Bank. In no event shall Account Bank be liable for losses or delays resulting from computer malfunction, interruption of communication facilities, labor difficulties or other causes beyond Account Bank's reasonable control or for.the indirect, special or consequential damages. City agrees to indemnify Account Bank and hold it harmless from and against all claims, other than those ultimately determined to be founded on the gross negligence or willful misconduct of Account Bank, and from and against any damages, penalties, judgments, liabilities, losses or expenses (including reasonable attorney's fees and disbursements) incurred as a result of the assertion of any claim, by any person or entity, arising out of, or otherwise related to, any transaction conducted or service provided by Account Bank through the use of the Lockbox Account at Account Bank or pursuant to this Agreement. 9. TERMINATION. This Agreement may be terminated upon delivery to Account Bank of a written notification thereof jointly executed by Secured Party and (provided Secured Party has not notified Account Bank that an Event of Default is then continuing) City. Notwithstanding the foregoing, this Agreement may be terminated by Secured Party in accordance with and subject to the requirements of that certain Intercreditor and Collateral Agency Agreement, dated as of the Effective Date ("Intercreditor Agreement"), between and among Secured Party, Secured Creditors, and City, at any time, with or without cause, upon its delivery of written notice thereof to each of City and Account Bank. For the avoidance of doubt, it is expressly understood and agreed that the Account Bank shall have no duty to monitor or oversee, and shall have no liability whatsoever in connection with, Secured Parry's compliance with the Intercreditor Agreement. This Agreement may be terminated by Account Bank at any time on not less than sixty (60) days' prior written notice delivered to each of City and Secured Party provided that such termination shall not take effect until Secured Party confirms that a replacement account and replacement security thereover have been obtained in form and substance satisfactory to Secured Party. Upon any such termination of this Agreement, Account Bank will immediately transmit to such account as Secured Parry may direct all funds, if any, then on deposit in, or otherwise standing to the credit of the Lockbox Account. The provisions of paragraphs 2 and 5 shall survive termination of this Agreement unless and until specifically released by Secured Party in writing. All rights of Account Bank under paragraphs 4, 5, 6 and 8 shall survive any termination of this Agreement. ffli� m..19 11Z A : WITIIOMAu M -IM -1 City acknowledges that the agreements made by it and the authorizations granted by it in paragraph 2 hereof are irrevocable and that the authorizations granted in paragraph 2 hereof are powers coupled with an interest. 11. NOTICES. G All notices, requests or other communications given to Account Bank, City or Secured Party shall be given in writing (including by facsimile) at the address specified below: Account Bank: River City Bank Attention: Cash Management 2485 Natomas Park Dr. Sacramento, CA 95833 Fax: 916-567-2779 Email: cashmgmtnrivercitybank.com City: Baldwin Park Attention: Contract Administration 14403 E. Pacific Avenue Baldwin Park, CA 91706 Fax: 626-337-2965 Email: Secured Party: River City Bank, as Collateral Agent Attention: Cash Management 2485 Natomas Park Dr. Sacramento, CA 95833 Fax: 916-567-2779 Email: cashmgmt@rivercitybank.com Any party may change its address for notices hereunder by notice to each other party hereunder given in accordance with this paragraph 11. Each notice, request or other communication shall be effective (a) if given by facsimile, when such facsimile is transmitted to the facsimile number specified in this paragraph 11 and confirmation of receipt is made by the appropriate parry, (b) if given by overnight courier, five (5) days after such communication is deposited with the overnight courier for delivery, addressed as aforesaid, or (c) if given by any other means, when delivered at the address specified in this paragraph 11. 12. MISCELLANEOUS. (a) This Agreement may be amended only by a written instrument executed by each of the parties hereto acting by their respective duly authorized representatives. (b) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns, but neither City nor Account Bank shall be entitled to assign or delegate any of its rights or duties hereunder without first obtaining the express prior written consent of Secured Party. (c) This Agreement may be executed in any number of several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 7 (d) This Agreement and any document contemplated hereby may be delivered by a party hereto by way of facsimile or e-mail transmission and such delivery shall be deemed completed for all purposes upon the completion of such facsimile or e-mail transmission. A parry that so delivers this Agreement or any such document by way of facsimile or e-mail transmission agrees to promptly thereafter deliver to the other party hereto an original signed counterpart. The signature of any party transmitted by facsimile or e-mail shall be considered for these purposes as an original document, and any such document shall be considered to have the same binding legal effect as an originally executed document. In consideration of the mutual covenants herein contained, the parties agree that none of them shall raise the use of a facsimile machine or e-mail as a defense in any suit or controversy related to this Agreement or any of the other documents and forever waive any such defense. (e) THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF CALIFORNIA. The parties agree that the State of California (i) is and shall remain the "bank's jurisdiction" of the Account Bank for the purposes of the Uniform Commercial Code; and (ii) shall be deemed to be the location of the Lockbox Accounts and of City's rights and interests in and to the Lockbox Accounts. This Agreement may be executed by the parties hereto in separate counterparts (or upon separate signature pages bound together into one or more counterparts), each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. (f) JURY WAIVER AND JUDICIAL REFERENCE. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. IN THE EVENT ANY LEGAL PROCEEDING IS FILED IN A COURT OF THE STATE OF CALIFORNIA (THE "COURT") BY OR AGAINST ANY PARTY HERETO IN CONNECTION WITH ANY CONTROVERSY, DISPUTE OR CLAIM DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) (EACH, A "CLAIM") AND THE WAIVER SET FORTH IN THE PRECEDING PARAGRAPH IS NOT ENFORCEABLE IN SUCH ACTION OR PROCEEDING, THE PARTIES HERETO AGREE AS FOLLOWS: (i) WITH THE EXCEPTION OF THE MATTERS SPECIFIED IN PARAGRAPH (ii) BELOW, ANY CLAIM WILL BE DETERMINED BY A GENERAL REFERENCE PROCEEDING IN ACCORDANCE WITH THE PROVISIONS OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 THROUGH 645.1. THE PARTIES INTEND THIS GENERAL REFERENCE AGREEMENT TO BE SPECIFICALLY ENFORCEABLE IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638. (ii) THE FOLLOWING MATTERS SHALL NOT BE SUBJECT TO A GENERAL REFERENCE PROCEEDING: (1) NON -JUDICIAL FORECLOSURE OF ANY SECURITY INTERESTS IN REAL OR PERSONAL PROPERTY, (2) EXERCISE OF SELF-HELP REMEDIES (INCLUDING, WITHOUT LIMITATION, SET-OFF), (3) APPOINTMENT OF A RECEIVER AND (4) TEMPORARY, PROVISIONAL OR ANCILLARY REMEDIES (INCLUDING, WITHOUT LIMITATION, WRITS OF ATTACHMENT, WRITS OF POSSESSION, TEMPORARY RESTRAINING ORDERS OR PRELIMINARY INJUNCTIONS). THIS AGREEMENT DOES NOT LIMIT THE RIGHT OF ANY PARTY TO EXERCISE OR OPPOSE ANY OF THE RIGHTS AND REMEDIES DESCRIBED IN THE FOREGOING CLAUSES (1) - (4) AND ANY SUCH EXERCISE OR OPPOSITION DOES NOT WAIVE THE RIGHT OF ANY PARTY TO A REFERENCE PROCEEDING PURSUANT TO THIS AGREEMENT. (iii) UPON THE WRITTEN REQUEST OF ANY PARTY, THE PARTIES SHALL SELECT A SINGLE REFEREE, WHO SHALL BE A RETIRED JUDGE OR JUSTICE. IF THE PARTIES DO NOT AGREE UPON A REFEREE WITHIN TEN (10) DAYS OF SUCH WRITTEN REQUEST, THEN, ANY PARTY MAY REQUEST THE COURT TO APPOINT A REFEREE PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 640(B). (iv) ALL PROCEEDINGS AND HEARINGS CONDUCTED BEFORE THE REFEREE, EXCEPT FOR TRIAL, SHALL BE CONDUCTED WITHOUT A COURT REPORTER, EXCEPT WHEN ANY PARTY SO REQUESTS, A COURT REPORTER WILL BE USED AND THE REFEREE WILL BE PROVIDED A COURTESY COPY OF THE TRANSCRIPT. THE PARTY MAKING SUCH REQUEST SHALL HAVE THE OBLIGATION TO ARRANGE FOR AND PAY COSTS OF THE COURT REPORTER, PROVIDED 0 THAT SUCH COSTS, ALONG WITH THE REFEREE'S FEES, SHALL ULTIMATELY BE BORNE BY THE PARTY WHO DOES NOT PREVAIL, AS DETERMINED BY THE REFEREE. (v) THE REFEREE MAY REQUIRE ONE OR MORE PREHEARING CONFERENCES. THE PARTIES HERETO SHALL BE ENTITLED TO DISCOVERY, AND THE REFEREE SHALL OVERSEE DISCOVERY IN ACCORDANCE WITH THE RULES OF DISCOVERY, AND MAY ENFORCE ALL DISCOVERY ORDERS IN THE SAME MANNER AS ANY TRIAL COURT JUDGE IN PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA. THE REFEREE SHALL APPLY THE RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA AND SHALL DETERMINE ALL ISSUES IN ACCORDANCE WITH APPLICABLE STATE AND FEDERAL LAW. THE REFEREE SHALL BE EMPOWERED TO ENTER EQUITABLE AS WELL AS LEGAL RELIEF AND RULE ON ANY MOTION WHICH WOULD BE AUTHORIZED IN A TRIAL, INCLUDING, WITHOUT LIMITATION, MOTIONS FOR DEFAULT JUDGMENT OR SUMMARY JUDGMENT. THE REFEREE SHALL REPORT HIS DECISION, WHICH REPORT SHALL ALSO INCLUDE FINDINGS OF FACT AND CONCLUSIONS OF LAW. (vi) THE PARTIES RECOGNIZE AND AGREE THAT ALL CLAIMS RESOLVED IN A GENERAL REFERENCE PROCEEDING PURSUANT HERETO WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. (g) Each party hereby submits to the nonexclusive jurisdiction of the United States District Court for the Central District of California and of any California state court sitting in Los Angeles County for the purpose of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby and thereby. Each party irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. (h) City hereby irrevocably appoints the City Clerk at City of Lancaster 44933 Fern Avenue, Lancaster, CA 93534, from time to time to receive on its behalf service of process issued out of the federal courts of California in any legal action or proceeding arising out of or in connection with this Agreement or any other document to which it is a party. City undertakes not to revoke the authority of the agent specified above and if, for any reason, any such agent no longer serves or is capable of serving as agent of the relevant party hereto to receive service of process in City, such party shall promptly appoint another such agent and advise Secured Party thereof and, failing such appointment within fourteen (14) days, Secured Parry shall be entitled (and is hereby authorized) to appoint an agent on behalf of 10 City. Nothing herein contained shall restrict the right to serve process in any other manner allowed by law. [Signatures on following page] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an instrument under seal by their authorized representative as of the date first written above. Account Bank RIVER CITY BANK By: Name: Title: City CITY OF BALDWIN PARK, a California municipal corporation and general law city By: Name: Title: 11 Secured Party RIVER CITY BANK, not in its individual capacity, but solely as Collateral Agent By: Name: Title: 12 ITEM NO. SA . TO: Honorable Chair and Board Members of the Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park FROM: Rose Tam, Director of Finance lir DATE: April 17, 2019 �v ot SUBJECT: Treasurer's Report — February 2019 SUMMARY Attached is the Treasurer's Report for the month of February 2019. The Treasurer's Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City's Investment Policy and the California Government Code. RECOMMENDATION Staff recommends that Council receive and file the Treasurer's Report for February 2019. FISCAL IMPACT None BACKGROUND City of Baldwin Park Investment Policy requires the Treasurer's Report be submitted to the Mayor and City Council on a monthly basis. LEGAL REVIEW Not Applicable ATTACHMENT 1. Exhibit "A", Treasurer's Report mm Exhibit "A" Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT 2/28/2019 INVESTMENT INTEREST PURCHASE MATURITY PAR CURRENT BOOK MARKET ' DESCRIPTION RATE DATE DATE VALUE PRINCIPAL VALUE VALUE State of Caltiorrda Local Agency knvesdnerd FurdjLAIFF _.------ City4ncluding General Furl. S a8 other Special Revenue Funds 2.39% Varies Varies $ 29,753,454.64 $ 29,763,454.64 i 29.753,464.64 S 29,753y664.64 Housing Authority 2.39% Varies Varies 13,670.21 13,570.22 13,570.22 13,670.22 Cartlncata Daoasa 29,767,024.96 29,787,024.86 29,767,024.86 29,767,024.85 of CMm* National Association (Mutual Securities) 2.66% 1/2512019 1126/2021 250,000.00 250.000.00 260,000.00 249,816.00 Anarican Express Centurlon (Mutual Securities) 1.60% 4/12/2017 411212019 250,000.00 250,000.00 250,000.00 248,812.50 Evwbw*—%cksonvWe (IAutual Securities) 1.65% 4116!2017 411612019 250,000.00 250,000.00 260,000.00 249,777.50 Gokkran Sachs Bk USA NY (Mutual Securities) 2.25% 1/24/2018 112412020 260,000.00 250,000.00 250.000.00 248,497.50 Salle Mae Bk SLT Lake City UT (Mudd Securities) 2.25% 1124/2018 1/24/2020 Z50,000.00 250,000.00 250,000.00 249,487.60 Saha National Bank New York (Canteita) 2.00% 4116/2018 4/1612019 250,000.00 250.000.00 250.000.00 249,917.50 Morgan Stanley Bards N A Utah (Caruella) 2.64% 4M912018 4/20/2020 250,000.00 250,000.00 260,000.00 250,297.60 Barclays Bank Del (Canteda) 3.05% 12M912018 1=112020 250,000.00 250.000.00 260,000.00 281,686.00 2,000,000.00 2,000.000.00 2,000,000.00 2,000,330.00 US Treasury BM (UBS) 2.07% 3/29!2018 3/28/12019 1,000,000.00 1,000,000.00 1,000,000.00 988.046.00 Fiscal Agent Funds (Trust/Debt Service Fund) Varies Varies Varies 7,590,972.65 7,590,972.66 7,690,972.56 7,590,972.66 Fiscal Agent Funds, - Successor Agency (TnuWDedt Service Funs Varies Varies Varies 153,323A7 153,323.47 153,323.47 163,323.47 7,744,286.02 7,714,296.02 7,744,296.02 7,744,29402 S 40.511.320.88 i 40,511.320.88 i 40.611,320.88 $ 10608.69480 Total knreshnents $ 40,611,320.88 Cash with Bank of the Wast City Checking 2,466,624.35 Money Market Plus 132,746.01 City Miscellaneous Cash 259,828.38 Successor Agency 236,618.62 Housing Authority 265,235.27 Financing Authority 0.00 Investment Brokerage 86.03 Total Cash with Bank of the West 3,360,139.26 Total Cash and kresbnents i Schedule of Cash and Investments includes city-wide assets as included in the Comprehensive Annual Financial Report. • There was no Investment maturity/purchase transactions made for the month of February 2019 and several depositshvithdrawals were made through the Local Agency Investment Fund. • Fiscal Agent Funds amounting to $7,590,972 are from the Manure M Bond offering. In compliance with the California Government Code Section 53646 at seq., l hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are in compliance to the City's Statement of Investment Policy. Approved by: i R6se Ta Director of Finance STAFF REPORT ITEM NO. Iq TO: Honorable Mayor and Members of the City Council FROM: Lourdes Morales, Chief Deputy City Clerk b� DATE: April 17, 2019 SUBJECT: Approve and Adopt Resolution No. 2019-015 Entitled, "A Resolution of the City Council of the City of Baldwin Park, California, Appointing Representatives and Alternates as Official Representatives of the City"; and Review and Appoint Members to the Established Committees, as Appropriate SUMMARY This report requests City Council selection of designated representatives and alternates as official representatives of the City. RECOMMENDATION Staff recommends City Council rescind Resolution 2019-001 and complete the review and appointment of members to the positions of delegates and alternates of the established committees and organizations presented in Resolution No. 2019-015, entitled: "A Resolution of the City Council of the City of Baldwin Park, California, Appointing Representatives and Alternates as Official Representatives of the City". FISCAL IMPACT Not Applicable BACKGROUND Each year, following the reorganization of the City Council, the Council is requested to designate members as representatives and alternates on certain committees and organizations. During the regularly scheduled City Council meeting of February 20, 2019, the City Council made appointments to certain agencies approved by Resolution 2019-001 and directed staff pending appointments be brought back for selection. ALTERNATIVES Not Applicable LEGAL REVIEW Not Applicable ATTACHMENTS 1. Resolution No. 2019-015 2. Roster of City Council Appointed Delegates Attachment 1 Resolution No. 2019-015 RESOLUTION NO. 2019-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPOINTING REPRESENTATIVES AND ALTERNATES AS OFFICIAL REPRESENTATIVES OF THE CITY WHEREAS, it is the Council's desire to review and/or amend the existing appointments; and WHEREAS, Resolution No. 2019-001 adopted February 6, 2019 and all other Resolutions inconsistent herewith are hereby repealed and rescinded. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the San Gabriel Valley Water Association — Quarterly luncheon held in various locations (MEMBERS RECEIVE A STIPEND — NO) Existing Appointees New Appointees Re resentative: Councilmember Susan Rubio Alternate: Mavor Manuel Lozano Section 2. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Los Angeles County Sanitation District Nos. 15 & 22 - 4t" Wednesday at 1:30 p.m.; Joint Administration Office (MEMBERS RECEIVE A STIPEND - $125 per meeting) Existing Appointees New Appointees Representative: *Mayor Manuel Lozano Mayor Manuel Lozano Alternate: Council Member Ricardo Pacheco Mayor Pro Tem Garcia *Appointment of Mayor required by Sanitation District Section 3. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the League of California Cities — Los Angeles County Division — 1St Thursday at 6:00 p.m.; various locations (MEMBERS RECEIVE A STIPEND — NO) Existing Appointees New Appointees [Representative: Mayor Pro Tem Cruz Baca Council Member Alejandra Avila Alternate: Councilmember Susan Rubio Council Member Paul C. Hernandez Section 4. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Civil Defense Area "D" General Membership Meeting — 3'd Thursday at 8:30 a.m.; Area D Office (MEMBERS RECEIVE A STIPEND — NO) Existing Appointees New Appointees Representative: Chief of Police Chief of Police Alternate: Mavor Manuel Lozano Mayor Manuel Lozano Section 6. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Independent Cities Association — 2"d Tuesday at 7.00 p.m.; rotating Council Chambers (MEMBERS RECEIVE A STIPEND — NO) intees I New Representative: I Mayor Pro Tem Monica Garcia I Council Member Paul C. Hernandez I Alternate: I Councilmember Ricardo Pacheco I Council Member Aleiandra Avila I Section 7. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Independent Cities Association Lease Finance Authority - As Needed Basis in various times/locations (MEMBERS RECEIVE A STIPEND - $150 per meeting) Existinq Appointees I New Appointees Representative: Councilmember Ricardo Pacheco Council Member Ricardo Pacheco Alternate: Chief of Police Chief of Police Section 8. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Los Angeles County — City Selection Committee — As Needed Basis in various times/locations (MEMBERS RECEIVE A STIPEND — NO) Appointees New Representative: *Mayor Manuel Lozano Mayor Manuel Lozano Alternate: I Mayor Pro Tem Monica Garcia Mayor Pro Tem Monica Garcia *Appointment of Mayor required by State Law Section 9. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Southern California Association of Governments — Annual Conference in the month of May (MEMBERS RECEIVE A STIPEND — NO) Existing Appointees New Appointees Re resentative: Councilmember Tem Cruz Baca Alternate: I Councilmember Susan Rubio Section 10. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Foothill Transit Zone — Last Friday of the Month at 7:45 a.m.; Foothill Transit Administrative Offices (MEMBERS RECEIVE A STIPEND — $161 per meeting) Existing Appointees New Appointees Representative: Councilmember Ricardo Pacheco Alternate: Councilmember Cruz Baca Section 11. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the California Contract Cities Association (CCCA) — 3rd Wednesday at 6:00 p.m. in various locations (MEMBERS RECEIVE A STIPEND — No) Existing Appointees New Appointees Re resentative: Mayor Pro Tem Monica Garcia Mayor Pro Tem Monica Garcia Alternate: Councilmember Susan Rubio Mavor Manuel Lozano Section 12. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the Governing Board of the San Gabriel Valley Mosquito and Vector Control District -2"d Friday at 10:00 a.m. in the District Office (MEMBERS RECEIVE A STIPEND - $100 per meeting) Section 13. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the San Gabriel Valley Council of Governments — 3'd Thursdays at 6:00 p.m. at the Municipal Water District (MEMBERS RECEIVE A STIPEND — $75 per meeting) Existing Appointees New Appointees Re resentative: Councilmember Cruz Baca Mayor Pro Tem Monica Garcia Alternate: Mayor Pro Tem Monica Garcia Council Member Alejandra Avila Section 14. The City Council of the City of Baldwin Park does hereby appoint the following persons as its representative, alternate and substitute alternate representative to the Governing Board of the Independent Cities Risk Management Authority (ICRMA) — 2"d Thursday at 10:00 a.m.; Rio Hondo Event Center (MEMBERS RECEIVE A STIPEND — NO) Existing Appointees New Appointees Representative: Councilmember Cruz Baca Councilmember Cruz Baca (Must be Elected Official) Pacheco Expires: 12/31/2019 per Health and Alternate: Chief Executive Officer Safety Code § 2024 a Alternate: Councilmember Ricardo Pacheco Councilmember Ricardo Pacheco *Not required Human Resources/Risk Expires: 12/31/2019 per Health and (May be staff member Manager Laura Thomas Safety Code § 2024 a Section 13. The City Council of the City of Baldwin Park does hereby appoint the following persons as representative and alternate members of the San Gabriel Valley Council of Governments — 3'd Thursdays at 6:00 p.m. at the Municipal Water District (MEMBERS RECEIVE A STIPEND — $75 per meeting) Existing Appointees New Appointees Re resentative: Councilmember Cruz Baca Mayor Pro Tem Monica Garcia Alternate: Mayor Pro Tem Monica Garcia Council Member Alejandra Avila Section 14. The City Council of the City of Baldwin Park does hereby appoint the following persons as its representative, alternate and substitute alternate representative to the Governing Board of the Independent Cities Risk Management Authority (ICRMA) — 2"d Thursday at 10:00 a.m.; Rio Hondo Event Center (MEMBERS RECEIVE A STIPEND — NO) Section 15. That the City Clerk shall certify to the adoption of this Resolution and shall forward copies hereof to said committees and organizations. Existing Appointees New Appointees Representative: Councilmember Ricardo Mayor Manuel Lozano (Must be Elected Official) Pacheco Alternate: Chief Executive Officer Chief Executive Officer Shannon (May be staff member Shannon Yauchzee Yauchzee Substitute Alternate: Human Resources/Risk Human Resources/Risk Manager (May be staff member Manager Laura Thomas Laura Thomas Section 15. That the City Clerk shall certify to the adoption of this Resolution and shall forward copies hereof to said committees and organizations. PASSED, APPROVED, AND ADOPTED this 17th day of April, 2019. 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 Resolution No. 2019-015 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on April 17, 2019 and that the same was adopted by the following vote to wit: JEAN M. AYALA CITY CLERK Attachment 2 Roster of City Council ■0 ■N L O O L M ■ CL CL Q O L) Fp •AR U Ln a cu O 41 N lca W • _ �,.. C O c I� L L m: co > .c U 00 o0 G 0) 0) �= U 01 O 7 N a)'(),'.., r t6 C M rn a+ — 00 V' V O a+ c CO m N � L ns W +a C f v r N _ Qi c D M N • +M+ C UU N . r O C Ol l0 u Ln Qi ( Ln ° o V1. a m n ocu ,+: oQ v ++ O c O rl aj O H •• O f0 O N m 01i O f U �c r CL 41 �F O Q � Gi 4� 0 Y U co O cu ca v° L°' Luo _° O co p co h 3 o ff c v o +% co 1 p#a, L qix,. ..O CU u u h S CU L O ° pw— cu C • t . C t f k CL O aj T� 4 m arsV,ai yj _Q. 0) 0 Q� L QQLn i 0 •Y O #W 3§ -� 2 0 a MINE ++ N L 0 0 0 9 i _0 N L 0 ,0 `L cu -0 ., •LU a cu, ., IL _ • CD u 0 00 ., e CL • • • _ _ o a . .tt KK 41 . co 10 `'0 cu cu • ? R:® yy¢"ar•^ • .. tea. •, �d ,.� Ln 10 r. 3* j'8.. Pi g ? sv fr gg CL }}� • � �' Y"v* `fir � � ��� S ga i' E r ... W. • �,,� r j7T • • Z _ we, wS-s �' `-., • s* • i ,; ;� �r i - ARPIL 17, 2019 7:00 PM REGULAR MEETING COUNCIL CHAMBER 14403 E. PACIFIC AVENUE BALDWIN PARK, CA 91706 (626) 960-4011 Manuel Lozano Monica Garcia Alejandra Avila Paul C. Hernandez Ricardo Pacheco Chair Vice Chair Board Member Board Member Board Member PLEASE TURN OFF CELL PHONES AND PAGERS WHILE MEETING IS IN PROCESS POR FAVOR DEAPAGAR SUS TELEFONOS CELULARES YBEEPERS DURANTE LA JUNTA PUBLIC COMMENTS The public is encouraged to address the Housing Authority on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the Board, 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 a la Agencia nombrada 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 a la Agencia, 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. Any written public record relating to an agenda item for an open session of a regular meeting of the Finance Authority that is distributed to the Finance Authority less than 72 hours prior to that meeting will be available for public inspection at City Hall in the City Clerk's office at 14403 E. Pacific Avenue, 3rd Floor during normal business hours (Monday - Thursday, 7:30 a.m. - 6:00 p.m.) FINANCE AUTHORITY REGULAR MEETING — 7:00 PM CALL TO ORDER ROLL CALL Board Members: Alejandra Avila, Paul C. Hernandez, Ricardo Pacheco Vice Chair Monica Garcia and Chair Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE COMMISSION 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 COMIS16N No se podra tomar acci6n en algun 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 declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideraci6n en juntas proximal. (Codigo de Gobierno §54954.2] CONSENT CALENDAR 1. Treasurer's Report — February 2019 Staff recommends that the Board receive and file the Treasurer's Report for February 2019. ADJOURNMENT CERTIFICATION I, Lourdes Morales, Chief Deputy Secretary of the Finance Authority hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 11th day of April, 2019. 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 apbaldwinpark.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 ll) ITEM NO. I TO: Honorable Chair and Board Members of the Financing Authority FROM: Rose Tam, Director of Finance .�r✓ /� �,,/ DATE: April 17, 2019 SUBJECT: Treasurer's Report — February 2019 SUMMARY Attached is the Treasurer's Report for the month of February 2019. The Treasurer's Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City's Investment Policy and the California Government Code. RECOMMENDATION Staff recommends that Council receive and file the Treasurer's Report for February 2019. FISCAL IMPACT None BACKGROUND City of Baldwin Park Investment Policy requires the Treasurer's Report be submitted to the Mayor and City Council on a monthly basis. LEGAL REVIEW Not Applicable ATTACHMENT 1. Exhibit "A°, Treasurer's Report Exhibit "A" Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT 2/28/2019 INVESTMENT INTEREST PURCHASE MATURITY DESCRIPTION RATE DATE DATE State of California Local Agency Investment Fund (LAIF) Cilyanckx ft General fund i all other Special Revenue Funds 2.39% Varies Varies Housing Authority 2.39% Varies Varies Citibank National Association (Mutual Securities) 2.65% 1/26/2019 1/26/2021 American Express Cakrxion (Mutual Securities) 1.60% 411212017 4112/2019 EverbanWacksomi8e (Mutual Securities) 1.55% 4118/2017 4/16/2019 Goldman Sachs ek USA NY (Mutual Sanrrldes) 225% 1/24/2018 1/24/2020 Sallie Mae Sk SILT Lake City UT (Mutual Swuritles) 2.25% i/2412018 12412020 Sarre National Bate New Yak (Cantella) 2.00% 4/16/2018 411602019 Morgan Stanley Banc N A Utah (CarteNS) 264% 4119/2018 4120/2/120 Barclays Bank Uel (CanteBa) 3.06% 12M9/2018 12/21/2020 US Treasury Bill (UBS) 2.07% 3128!2018 3/28/2018 Fiscal Agent Funds (TrusliDebt Service Fund) Varies Varies Varies Fiscal Agent Funds - Successor Agency (TruWDebt Service FWK Varies Varies Varies PAR CURRENT BOOK MARKET VALUE PRINCIPAL VALUE VALUE $ 29,763,464.64 $ 29,753,464.194 $ 29,763,464.64 :29,763,464.64 13,670.22 13,670.22 13,670.22 . 15,670.22 29,767,024.66 29,767,024.66 29,767,024.66 29,767,024.86 260,000.00 250,000.00 260,000.00 249,846.00 25%000.00 260,000.00 260,000.00 249.812.50 260,000.00 260,000.00 260,000.00 249,777.50 260,000.00 260,000.00 260,000.00 249,497.60 260,000.00 260,000.00 250,000.00 249,497.50 260,000.00 260,000.00 260,000.00 249,917.50 250,000.00 260.000.00 260,000.00 260,297.60 260,000.00 260,000.00 260,000.00 261,686.00 2,000,000.00 2,000.000.00 2,000,000.80 2,000,330.00 1,000,000.00 1,000.000.00 1,000,000.00 996,046.00 7,590,97256 7,590,97266 7,580,972 66 7,680,972.66 ` 163,323A7 163,323.47 153,323.47 153,323.7 7,744,286.02 7,744,286.02 7,744,286.02 7,744,286.02 $ 40,611320.88 >< 406®1.320�i40,511,3201111 $� 5.88 Total hwentmats $ 40,611,320.011 Cash with Bate of the Nkat Cay ChB 2,465,624.36 Money Market Phis IA74SA1 Cay Miscellaneous Cash 269,828.36 Successor Agency 236,5111.64 Housing Authority 216,235.27 Financing Authority GAO Invest Brokerage 86.83 Total Cash With Banc or the Nkat 3,360.139.26 Total Cash and Mvesbnens $ 43,671,46014 Schedule of Cash and Investments includes city-wide assets as included in the Comprehensive Annual Financial Report • There was no investment maturity/purchase transactions made for the month of February 2019 and several deposifshvithdrawals were made through the Local Agency Investment Fund. • Fiscal Agent Funds amounting to $7,590,972 are from the Measure M Bond offering. In compliance with the California Government Code Section 63646 at seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are in compliance to the City's Statement of Investment Policy. Approved by: R6sc Ta it Director of Finance AGENDA BALDWIN PARK HOUSING AUTHORITY APRIL 17, 2019 7:00 PM REGULAR MEETING COUNCIL CHAMBER 14403 E. PACIFIC AVENUE BALDWIN PARK, CA 91706 (626) 960-4011 HUB OF% H E V SAN G,hBIRIEL �• 0 O�A�� JA1SVp`� Manuel Lozano - Chair Monica Garcia - Vice Chair Alejandra Avila - Board Member Paul C. Hernandez - Board Member Ricardo Pacheco - Board Member PLEASE TURN OFF CELL PHONES AND PAGERS WH/LE MEET/NG /S /N PROCESS POR FA VOR DE APAGAR SUS TEL EFONOS CEL VLA RES Y BEEPERS DUP. ANTE LA JUNTA PUBLIC COMMENTS COMENTARIOS DEL PUBLICO The public is encouraged to address the Housing Authority Se invita al publico a dirigirse a la Agencia nombrada en esta on any matter posted on the agenda or on any other agenda, para hablar sobre cualquier asunto publicado en matter within its jurisdiction. If you wish to address the la agenda o cualquier tema que est6 bajo su jurisdiccion. Board, you may do so during the PUBLIC Si usted desea la oportunidad de dirigirse a la Agencia, podra COMMUNICATIONS period noted on the agenda. Each hacerlo durante el periodo de Comentarios del Publico (Public person is allowed three (3) minutes speaking time. A Communications) anunciado en la agenda. A cada persona se Spanish speaking interpreter is available for your le permite hablar por tres (3) minutos. Hay un int6rprete para su convenience. conveniencia. Any written public record relating to an agenda item for an open session of a regular meeting of the Housing Authority tributed to the Housing Authority less than 72 hours prior to that meeting will be available for public inspection all in the City Clerk's office at 14403 E. Pacific Avenue, 3rd Floor during normal business hours (Monday - , 7:30 a.m. - 6:00 p.m.) L HOUSING AUTHORITY REGULAR MEETING — 7:00 PM CALL TO ORDER ROLL CALL Board Members: Alejandra Avila, Paul C. Hernandez, Ricardo Pacheco Vice Chair Monica Garcia and Chair Manuel Lozano PUBLIC COMMUNICATIONS Three (3) minute speaking time limit Tres (3) minutos sera el limite para hablar THIS IS THE TIME SET ASIDE TO ADDRESS THE COMMISSION 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 COMIS16N No se podra tomar acci6n en algCln asunto a menos que sea incluido en la agenda, o a menos que exista a1gC1na emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y1d fijar asuntos para tomar en consideraci6n en juntas proximas. [CodigodeGobiemo §54954.2] CONSENT CALENDAR 1. Warrants and Demands Staff recommends that the Board ratify the attached Warrants and Demands Register. 2. Treasurer's Report — February 2019 Staff recommends that the Board receive and file the Treasurer's Report for February 2019. ADJOURNMENT CERTIFICATION 1, Lourdes Morales, Chief Deputy Secretary of the Housing Authority hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall buWtin board not less than 72 hours prior to the meeting. Dated this 11th day of April, 2019. V/ ma"A 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, 2n' 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 lmoralesabaldwinpark.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 11) NMI ITEM NO. TO: Honorable Chair and Board Members of the Housing Authority FROM: Rose Tam, Director of Finance DATE: April 17, 2019 SUBJECT: Baldwin Park Housing Authority's Warrants and Demands SUMMARY Attached are the Warrants and Demands Register for the City of Baldwin Park Housing Authority to be ratified by the Board. RECOMMENDATION Staff recommends that the Board ratify the attached Warrants and Demands Register. FISCAL IMPACT The total of the Warrants and Demands for Housing Authority is $372,218.20. 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 meeting and the following is a summary of the payment released: 1. The March 12 to April 8, 2019 Warrant check numbers from 72203 through 72207 in the amount of $911.50 and Automated Clearing House (ACH) in the amount of $371,306.70 were made on behalf of City of Baldwin Park Housing Authority constituting of claims and demands, are herewith presented to the Board as required by law, and hereby ratified. LEGAL REVIEW Not Applicable ATTACHMENT 1. Happy Check Register 2. Happy Check Register ACH Attachment 1 Happy Check Register CHECK REGISTER April 8, 2019 Date Range: 3/12/2019...04/08/2019 VMS Date Range: All Program: All Payment Type: All Check Numbers: All Direct Deposit: Exclude Check Cleared. All Port Status: Include Port Ins Zero HAPs: Include Zero HAPs Voided Payments. Include Voided Payments Held Checks. Include Held Checks Grouped by.- Sorted y.Sorted by. Check Number Check Number Check Number Check Date Payee Name DD Amount ❑ 72203 04/01/2019 Annie L Henderson ❑ 15.00 ❑ 72204 04/01/2019 City of Carlsbad ❑ 787.50 ❑ 72205 04/01/2019 Joseph A Bannister ❑ 29.00 ❑ 72206 04/01/2019 Sylvia Inez Moreno ❑ 59.00 ❑ 72207 04/01/2019 Vanessa G Ross ❑ 21.00 Total $911.50 Average $151.92 Unit Count 1 Average Weighted by Unit Count $726.00 Hard to House Count 0 HAPPY software Page 1 04/08/2019 9:55:51 AM Attachment 2 Happy Register ACH Check Register ACH April 8, 2019 Date Range: 03/1212019...04/0812019 Grouped by. VMS Date Range: All Sorted by. Check Number Program: All Check Number Payment Type: All Check Numbers: All Direct Deposit: Only Check Cleared: All Port Status., Include Port Ins Zero HAPs: Include Zero HAPs Voided Payments., Include Voided Payments Held Checks: Include Held Checks v/ Check Number Check Date Payee Name DD Amount ❑ 19788 04101/2019 0 1103.00 ❑ 19789 04/01/2019 1015 West Garvey West Covina, LP ® 510.00 ❑ 19790 04/012019 1024 Royal Oaks LP dba Whispering Fountains 13173.00 ❑ 19791 04/012019 Aaron Abdus Shakoor ® 1056.00 ❑ 19792 04/012019 Alamitas LLC ® 1796.00 ❑ 19793 04/012019 Alan Wu ® 836.00 ❑ 19794 04/012019 Alejandra Gutierrez ® 932.00 ❑ 19795 04/012019 Alfonso Contreras 55.00 ❑ 19796 04/012019 Alfred Tai -Kong Ho and Lisa Chen ® 664.00 ❑ 19797 04/012019 Allan M. & Virginia J Chipp and Ralph Seline 3133.00 ❑ 19798 04/012019 Alta Vista Villas, LP ® 744.00 ❑ 19799 04/012019 AMFP IV Atrium LLC cto Abacus Capital Group LLC ® 1129.00 ❑ 19800 04/012019 Amparo M Limon ® 570.00 0 19801 04/012019 Amy Si On ® 778.00 ❑ 19802 04/012019 Ana Thai ® 929.00 ❑ 19803 04/012019 Andrew & Eva Fogg ® 1551.00 ❑ 19804 04/01/2019 Anna & Simon Choi ® 950.00 ❑ 19805 04/012019 Annette C Scott 1513-00 ❑ 19806 04/012019 Antonio & Aida Rinos ® 1620.00 ❑ 19807 04/012019 ASCENSION HOLDINGS LLC ® 1019.00 ❑ 19808 04/012019 Badillo Street Senior Apartments, LLC ® 11371.00 ❑ 19809 04/012019 Baldwin Park Family Housing Limited ® 12653.00 ❑ 19810 04/012019 Becky Binh Nguyet Luu ® 1876.00 ❑ 19811 04/012019 Billy Theodorakopoulos ® 869.00 ❑ 19812 04/012019 Blessed Rock of EI Monte ® 3862.00 ❑ 19813 04/012019 Brookhollow Apartments ® 3613.00 ❑ 19814 04/012019 Central Apartments #2 ® 1661.00 ❑ 19815 04/012019 Chen Jackson ® 293.00 ❑ 19816 04/012019 Chung Thi Pham ® 3334.00 ❑ 19817 04/012019 Cienega Garden Apartments ® 4143.00 ❑ 19818 04/012019 Cipriano Salazar Jr. ® 882.00 0 HAPPY software Page 1 04/08/2019 3:08:19 PM ❑ 19819 04/01/2019 Clinett Glazis ® 991.00 ❑ 19820 04/01/2019 Covina 023 Woods 206 LP - Pama Management 206 ® 1335.00 ❑ 19821 04/01/2019 Cynthia Pham ® 765.00 ❑ 19822 04/01/2019 Dajojo, LLC ® 264.00 ❑ 19823 04/01/2019 Denise Van Pham ® 1632.00 ❑ 19824 04/01/2019 Derek Sim ® 826.00 ❑ 19825 04/01/2019 Dieu Van Huynh ® 969.00 ❑ 19826 04/01/2019 Dieu-Thuy Nu Ton ® 1409.00 ❑ 19827 04/01/2019 Dimitris Papadopoulous ® 1055.00 ❑ 19828 04/01/2019 Dinghwa Eddy Liu ® 1527.00 ❑ 19829 04/01/2019 Doan & Lily Thi 1652.00 ❑ 19830 04/01/2019 Don Norwood ® 1409.00 ❑ 19831 04/01/2019 Donna J Falls ® 765.00 ❑ 19832 04/01/2019 Doreen Han ® 1242.00 ❑ 19833 04/01/2019 Dung Tran 623.00 ❑ 19834 04/01/2019 Dung Trung Pham and Tammy Tram Dang 196.00 ❑ 19835 04/01/2019 EI Monte Housing Partners LP ® 2576.00 ❑ 19836 04/01/2019 Emilio De Jesus Cruz ® 537.00 ❑ 19837 04/01/2019 Eric C. Otte ® 435.00 ❑ 19838 04/01/2019 Estate of Rosetta Mix ® 843.00 ❑ 19839 04/01/2019 Eunice Property, LLC ® 885.00 ❑ 19840 04/01 /2019 EZ APT LLC ® 1301.00 ❑ 19841 04/01/2019 Fanny Chan ® 680.00 ❑ 19842 04/01/2019 Fat Law ® 1050.00 ❑ 19843 04/01/2019 Francisco J. Sanchez and Gloria Emma Sanchez ® 778.00 ❑ 19844 04/01/2019 Fred Lau ® 825.00 ❑ 19845 04/01/2019 Garvey Senior Affordable Partners, LP 382.00 ❑ 19846 04/01/2019 German Ghibaudo ® 1050.00 ❑ 19847 04/01/2019 Gilbert Dominguez ® 2076.00 ❑ 19848 04/01/2019 Grace Chiou ® 1286.00 ❑ 19849 04/01/2019 Greater San Gabriel Valley Property Management, Inc. ® 1374.00 ❑ 19850 04/01/2019 Group IX BP Properties, LP ® 397.00 ❑ 19851 04/01/2019 Guillermo Vasquez ® 1170.00 ❑ 19852 04/01/2019 Ha X Van ® 2373.00 ❑ 19853 04/01/2019 Henry Ho ® 838.00 ❑ 19854 04/01/2019 Henry Wong ® 1650.00 ❑ 19855 04/01/2019 Heritage Park Villas LP ® 14924.00 ❑ 19856 04/01/2019 Hilbert Properties II ® 755.00 ❑ 19857 04/01/2019 Hui Chuan Wang ® 3524.00 ❑ 19858 04/01/2019 Isabel R Sanchez ® 1034.00 ❑ 19859 04/01/2019 Jaime Barcena ® 918.00 ❑ 19860 04/01/2019 James or Barbara Fox ® 742.00 ❑ 19861 04/01/2019 JBMW Investment, LLC ® 764.00 0 19862 04/01/2019 Jeff Ma ® 343.00 ❑ 19863 04/01/2019 Jesse S. Gonzalez ® 822.00 ❑ 19864 04/01/2019 Jim & Nancy Bailey ® 596.00 0 HAPPY Software Page 2 04/08/2019 3:08:19 PM ❑ 19865 04/01/2019 Jocelyn Jae Jhong ® 2105.00 ❑ 19866 04/01/2019 Joe Clark ® 1257.00 ❑ 19867 04/01/2019 John Nguyen ® 533.00 ❑ 19868 04/01/2019 John W. Ruwitch and Anh Lam Truong ® 786.00 ❑ 19869 04/01/2019 John Young ® 520.00 ❑ 19870 04/01/2019 Jose Baudelio Delgado ® 791.00 ❑ 19871 04/01/2019 Joseph H. Garcia ® 2913.00 ❑ 19872 04/01/2019 Joseph M. Kwok ® 1836.00 ❑ 19873 04/01/2019 Joseph Pham ® 814.00 ❑ 19874 04/01/2019 Joseph T. Tung ® 886.00 ❑ 19875 04/01/2019 Juan Alvarado ® 431.00 ❑ 19876 041012019 Jun Ye and Ming Feng ® 1599.00 ❑ 19877 041012019 Kan Investments LTD, LLC 554.00 ❑ 19878 04/012019 Karen Lin ® 129.00 ❑ 19879 04/012019 Kim Chau ® 837.00 ❑ 19880 04/012019 Kimberly Nguyen 729.00 ❑ 19881 04/012019 Kimberly U Dao ® 557.00 ❑ 19882 04/012019 Kwan Chiang ® 959.00 19883 04/012019 LAI MING LEUNG 549.00 ❑ 19884 04/012019 Lan Hua Mi Ku ® 898.00 ❑ 19885 04/012019 Lark Ellen Village ® 6565.00 ❑ 19886 041012019 Larry Chow ® 3318.00 ❑ 19887 04/012019 Larry Mimms 1067.00 ❑ 19888 04/012019 Larry Pratt or Doreen E. Ewing ® 1654.00 ❑ 19889 04/012019 LAT Investments, LLC ® 3704.00 ❑ 19890 04/012019 Lawrence and/or Lorraine Scimeca ® 1402.00 ❑ 19891 041012019 LEFA Trust ® 895.00 ❑ 19892 041012019 Leslie K Ng ® 1192.00 ❑ 19893 04/012019 Lien Diep ® 1223.00 ❑ 19894 04/012019 Linda Man ® 779.00 ❑ 19895 04/012019 Lois J Gaston ® 1029.00 ❑ 19896 04/012019 Louis Tong ® 1087.00 ❑ 19897 04/012019 Lourdes Vela ® 2904.00 ❑ 19898 04/012019 Luan Trong Hoang 744.00 ❑ 19899 04/012019 Lucena A Ewing ® 2605.00 ❑ 19900 041012019 Mack E Titus ® 537.00 0 19901 041012019 Malcolm Oso ® 543.00 ❑ 19902 04/012019 Mallorca Apartments, LTD ® 881.00 0 19903 04/012019 Man Sze Ma ® 1219.00 ❑ 19904 04/012019 Maria Luz Rodriguez ® 475.00 ❑ 19905 04/012019 Marina Alvarez ® 2399.00 ❑ 19906 04/012019 Mark T. Fernandez ® 581.00 ❑ 19907 04/012019 Mary L Haynes ® 996.00 ❑ 19908 04/012019 Mayra Ortega ® 818.00 ❑ 19909 04/012019 Melody (Muoi) Dao ® 1270.00 ❑ 19910 04/012019 Michael Alfred Alarcon 1380.00 0 HAPPY Software Page 3 04/08/2019 3:08:19 PM ❑ 19911 04/01/2019 Michael H Phuong ® 1498.00 ❑ 19912 04/01/2019 Michael 1. or Ling Brooks ® 1113.00 ❑ 19913 04/01/2019 Minh A Nguyen ® 634.00 ❑ 19914 04/01/2019 Mohamad Tavakkoli ® 4098.00 ❑ 19915 04/01/2019 Moller Property Management ® 835.00 ❑ 19916 04/01/2019 Monica Alber ® 906.00 ❑ 19917 04/01/2019 Monrovia 612, LP ® 7504.00 ❑ 19918 04/01/2019 Monrovia Heritage Park LP ® 17086.00 ❑ 19919 04/01/2019 Monrovia Heritage Park LP ® 1870.00 ❑ 19920 04/01/2019 Mousa Boushaaya ® 1050.00 ❑ 19921 04/01/2019 Nancy H Shen ® 890.00 ❑ 19922 04/01/2019 Ngoc T. Lieu ® 1848.00 ❑ 19923 04/01/2019 Nomer Lacson 19M•00 ❑ 19924 04/01/2019 Olie S Johnson ® 881.00 ❑ 19925 04/01/2019 Olive RE Holdings, LLC 3285.00 ❑ 19926 04/01/2019 Orange County Housing Authority ® 1410.70 ❑ 19927 04/01/2019 Pacific Towers Senior Apartments - TDF LP 3948.00 ❑ 19928 04/01/2019 Palo Verde Apartments, LP 928.00 ❑ 19929 04/01/2019 PAMA IV Properties, LP ® 2112.00 ❑ 19930 04101/2019 Paramjit S Nijjar ® 2185.00 ❑ 19931 04/01/2019 Paul & Annie W Chau ® 957.00 ❑ 19932 04/01/2019 Paul P Simon 987.00 ❑ 19933 04101/2019 Paul Yan ® 676.00 ❑ 19934 04/01/2019 Paul Yen 594.00 ❑ 19935 04/01/2019 Peter R Nasmyth ® 680.00 ❑ 19936 04/01/2019 Philip'Tsui ® 869.00 ❑ 19937 04/01/2019 Primrose Villa ® 5256.00 ❑ 19938 04/01/2019 Quoc T. Vo ® 1188.00 ❑ 19939 04/01/2019 Quy Duc Tran ® 205.00 ❑ 19940 04/01/2019 Ralph V. Parra 1130.00 ❑ 19941 04/01t2019 Ramiro S. Viramontes Separate Property Trust dated ® 435.00 ❑ 19942 04/01/2019 RAMONA BLVD FAMILY APARTMENTS, L.P. ® 2778.00 ❑ 19943 04/01/2019 Raul Varela Ayala ® 681.00 ❑ 19944 04/01/2019 Richard A DaSylveira 778.00 ❑ 19945 04/01/2019 Robert Lawe ® 871.00 ❑ 19946 04/01/2019 Roger Hin Nam Mak 8910.00 ❑ 19947 04/01/2019 Roland Wiekamp ® 1269.00 ❑ 19948 04/01/2019 Roman Basin ® 376.00 ❑ 19949 04/01/2019 Ronald & Pamela Layne ® 526.00 ❑ 19950 04/01/2019 Rosa Beltran ® 1730.00 ❑ 19951 04/01/2019 Rosa Lamas-Serratos ® 1704.00 ❑ 19951 04/01=19 Rosie Leon ® 114.UU ❑ 19953 04/01/2019 Roy Lam ® 891.00 ❑ 19954 04/01/2019 SAE GROUP, LLC ® 1312.00 0 19955 04/01/2019 Sara Romo ® 1176.00 ❑ 19956 04/01/2019 Set Homes LLC ® 7333.00 0 KAPPY software Page 4 04/08/2019 3:08:19 PM ❑ 19957 04/01/2019 Sergio Molina ® 258.00 ❑ 19958 04/01/2019 Shiu-Ein Huang ❑ 435.00 ❑ 19959 04/01/2019 Singing Wood Senior Housing LP ® 1131.00 ❑ 19960 04/01/2019 Sitara B. Mamdani ® 1227.00 ❑ 19961 04/01/2019 Siu Fung Mak ® 919.00 ❑ 19962 04/01/2019 Sophia Wong ® 1686.00 ❑ 19963 04/01/2019 Steadfast Cameron Park LP ® 1055.00 ❑ 19964 04/01/2019 Sui Man Mak ® 943.00 ❑ 19965 04/01/2019 Sylvester Carter ® 2178.00 ❑ 19966 04/01/2019 T & P Property LLC ® 789.00 ❑ 19967 04/01/2019 T & T Asset Holding, LLC ® 2661.00 ❑ 19968 04/01/2019 Takis Bogris ® 667.00 ❑ 19969 04/01/2019 Tanya H Chen ® -916.00 ❑ 19970 04/01/2019 Thanh M Tang ® 608.00 ❑ 19971 04/01/2019 The Piedrahita Trust "B" ® 1763.00 ❑ 19972 04/01/2019 The Promenade Housing Partners, LP ® 2976.00 ❑ 19973 04/01/2019 The Sam Gurfinkel and Renee Gurfinkel Revocable 1996 ® 1352.00 ❑ 19974 04/01/2019 Therisa L Tyck ® 891..00 ❑ 19975 04/01/2019 Thomas Pang ® 1424.00 ❑ 19976 04/012019 Tinh Van Le ® 440.00 ❑ 19977 04/01/2019 Tom Cinquegrani ® 1084.00 0 19978 04101/2019 Tom Lee ® 647.00 ❑ 19979 04/01/2019 Tuan Viet Ho ® 1681.00 ❑ 19980 04/01/2019 Up Hill Investment Inc. ® 1227.00 ❑ 19981 04/01/2019 Van T Tran 827.00 ❑ 19982 04/0U2019 Velma Alarcon Gandara ® 1262.00 ❑ 19983 04/01/2019 Vijay Gulati 2564.00 ❑ 19984 04/01/2019 Vinh H. Lai ® 955•00 ❑ 19985 04/012019 Vintage West Covina ® 10202.00 ❑ 19986 04/012019 Virginia Carlson ® 1061.00 ❑ 19987 04/012019 Wai Keng Tam ® 965.00 ❑ 19988 04/012019 West Covina Senior Villas II, LP 578.00 ❑ 19989 04/012019 West Covina Seniors Villas 1 ® 1415.00 ❑ 19990 04/012019 William J Rogers ® 995.00 ❑ 19991 04/012019 Wilson Apartment Associates L.P. ® 3488.00 ❑ 19992 04/012019 Woodside Village Apartments LP ® 8386.00 ❑ 19993 04/012019 Xitlalai Sanchez ® 704.00 ❑ 19994 .04/012019 Xue Fen Xu ® 1198.00 ❑ 19995 04/012019 Xuyen Thach Han ® 1669.00 ❑ 19996 04/012019 Y & H Investment, Inc. ® 1579.00 ❑ 19997 04/012019 Zi Jian Li ® 1277.00 0 HAPPY software Page 5 04/08/2019 3:08:19 PM Total $371,306.70 Average $888.29 Unit Count 415 Average Weighted by Unit Count $889.15 Hard to House Count 1 0 HAPPY software Page 6 04/08/2019 3:08:19 PM ITEM NO. 62 TO: Honorable Chair and Board Members of the Housing Authority FROM: Rose Tam, Director of Finance �/ DATE: April 17, 2019 / Q SUBJECT: Treasurer's Report — February 2019 SUMMARY Attached is the Treasurer's Report for the month of February 2019. The Treasurer's Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City's Investment Policy and the California Government Code. RECOMMENDATION Staff recommends that Council receive and file the Treasurer's Report for February 2019. FISCAL IMPACT None BACKGROUND City of Baldwin Park Investment Policy requires the Treasurer's Report be submitted to the Mayor and City Council on a monthly basis. LEGAL REVIEW Not Applicable ATTACHMENT 1. Exhibit "A", Treasurer's Report Exhibit "A" Treasurer's Report CITY OF BALDWIN PARK TREASURER'S REPORT 2!26!2019 INVESTMENT INTEREST PURCHASE MATURITY DESCRIPTION RATE DATE DATE State of California Local Agency Inveshnant Fund (L.AIF) City-Mcluding General Fund i all other Special Revenue Funds 2.39% Varies Varies Housing Authority 2.39% varies varies Cklbank National Association (Mutual Securities) 2.65% 1/25/2019 1/2612021 American Express Centurion (Mutual Seeurffks) 1.60% 4/12/2017 4112/2019 EverbankJaNaomMe (Mutual Securities) 1.55% 4/16/2017 4116/2019 Goldman Sachs Bk USA NY (Mutual Secures) 2.25% 112412018 1/2412020 Settle Mae Sk SLT lake City UT (Mahal Securities) 2.25% 1/2412018 1/2412020 Sarre National Bank New York (Canteft) 2.00% 411612018 4116/2019 Morgan Stanley Banc N A Utah (Camelia) 2.64% 4119/2018 4120/2020 Barclays Banc Del (Cama$a) 3.05% 12!1912018 12121/2020 US Treasury BM (UBS) 2.07% 312WMS 3/28/2019 Fiscal Agent Funds (TrmatlDebt Service Fund) varies varies Varies Fiscal Agent Funds - Successor Agency (TnatlDebt Service Func Varies Varies Varies PAR CURRENT BOOK MARKET VALUE PRINCIPAL VALUE VALUE $ 29,763,464.64 $ 29,763,464.64 $ 29,763,454,64 $ 29,763,454.64 13,670.22 13,570.22 13,570.22 . 13,670.22 29,767,024.66 29,767,024.86 29.767,624.96 29,767 024.96 260.000.00 260.000.00 250,000.00 249,845.00 250,000.00 260,000.00 260,00000 249,312.60 260,000.00 260,000.00 260,000.00 249,777.50 260,000.00 260,000.00 250,000.00 249,497.60 260,00000 260,800.00 260,000.00 249,497.60 260,000.00 260,000.00 250,000.00 249,917.50 260,000.00 260,000.00 260,000.00 260,297.50 260,000.00 260,000.00 260000.00 261,686.00 2,000,000.00 2,000,000.00 2,000.000.00 2,000,330.00 1,000,000.00 1,000,000.00 1,000,000.00 998,048Ap 7,590.972.55 7,690,97265 7,690,972.56 7,680,972.66 163,323.47 163,323.47 163,323,47 153,323A7 7,744,296.02 7,714,296.02 7,744,296.02 7.744,296.02 i 40,311,320.41 $__40 .611,320.88 ; 40 611,320,38 $ 40.608.696.$6 Total Investments $ 40,611,320.41 Cash with Banc of the West City CheckkV 2,466,624.36 Many Market Pala 132,746.01 City Miscellaneous Cash 259,$26.36 Sueeess"Agenry 23GAII&62 Housing Authority 266,235.27 Financing Authority 0.00 investment gramrage 41,33 Total Cash with Bank of the west 3,360,139.26 Total Cash and Invealnnate S1,360.14 Schedule of Cash and Investments Includes city-wide assets as included in the Comprehensive Annual financial Report. • There was no investment makwity/purchase transactions made for the month of February 2019 and several deposits/wlthdrawals were made through the Local Agency Investment Fund. • Fiscal Agent Funds amounting to $7,590,972 are from the Measure M Bond offering. In compliance with the California Government Code Section 63646 at seq., I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months that all investments are In compliance to the City's Statement of Investment Policy. Approved by: R6se Taut Director of Finance