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Memorandum

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20260217 LA County South El Monte City Council Order of Business 10 10.m. APPROVAL OF RESOLUTION NO. 26-011, AUTHORIZING THE FUNDING OF WATER MAIN EXTENSION ON SANTA ANITA AVENUE AND PAYMENT OF $510,000 TO SAN GABRIEL VALLEY WATER COMPANY AND APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND SANTA ANITA COMMERCIAL GROUP LLC ESTABLISHING REIMBURSEMENT REQUIREMENTS FOR THE PROPERTY LOCATED AT 1127-1223 SANTA ANITA AVENUE ("PROPERTY") The City has identified the Santa Anita Avenue corridor as a priority area for economic revitalization. The proposed development at 1127-1223 Santa Anita Avenue, which includes a new In-N-Out Burger and up to five additional tenant spaces, requires significant off-site water infrastructure improvements to meet modern fire flow and domestic capacity standards. To facilitate this project, the City will provide an upfront payment of $510,000.00 directly to the San Gabriel Valley Water Company (SGVWC). To protect the public’s investment, the City is entering into an MOU with the property owner, Santa Anita Commercial Group, LLC, requiring that any future refunds issued by SGVWC be paid back to the City until the full $510,000.00 is recouped. RECOMMENDED ACTION: Staff recommends City Council: 1. Adopt Resolution No. 26-011, authorizing the funding of water main extension on Santa Anita Avenue and payment of $510,000 to San Gabriel Valley Water Company and approving a Memorandum of Understanding (MOU) between the City and Santa Anita Commercial Group LLC establishing reimbursement requirements for the property located at1127-1223 Santa Anita Avenue ("Property"); and 2. Authorize the City Manager or designee to negotiate and execute the MOU. February 17, 2026 LA County South El Monte City Council Order of Business 10 #M