Covina City Council
January 16, 2024

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA

Tuesday, January 16, 2024, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall

IMPORTANT NOTICE
Members of the public may view the meeting live on the City’s website at www.covinaca.gov or on local cable television, Spectrum channel 29 and Frontier Channel 42. To view from the website, hover over the Departments & Services tab until the drop-down menu appears and click on City Council Video Library under the City Council header. A live banner will appear at the start of the meeting.

Public Comments: During the meeting, there will be an opportunity for the public to speak. Public testimony is limited to five (5) minutes per speaker, unless, for good cause, the Mayor/Chairperson amends the time limit; a speaker’s time may not be transferred to another speaker. State Law prohibits the Council/Agency/Authority Members from taking action on any item not on the agenda. Those wishing to speak on a LISTED AGENDA ITEM will be heard when that item is addressed.

In Person: To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance of the Council Chamber and give it to the City Clerk. Your name will be called when it is your turn to speak.

Meeting Assistance Information: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or 626-384-5430. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Pages

CLOSED SESSION

1. CLOSED SESSION - WILL NOT BE HELD
JOINT MEETING—OPEN SESSION 7:30 PM

2. CALL TO ORDER

3. ROLL CALL
Council/Agency/Authority Members: Patricia Cortez, Hector Delgado, Victor Linares, Mayor Pro Tem/Vice Chair John King, and Mayor/Chair Walter Allen, III

4. PLEDGE OF ALLEGIANCE
Led by Councilmember Linares

5. INVOCATION
Given by Covina Police Chaplain Ron Butler

6. PUBLIC COMMENTS
To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Those wishing to speak on a LISTED AGENDA ITEM will be heard when that item is addressed. Those wishing to speak on an item NOT ON THE AGENDA will be heard at this time. State Law prohibits the Council/Agency/Authority Members from taking action on any item not on the agenda. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

7. COUNCIL/AGENCY/AUTHORITY COMMENTS
Council/Agency/Authority Members wishing to make any announcements of public interest or to request that specific items be added to future Council/Agency/Authority agendas may do so at this time.

8. CITY MANAGER COMMENTS

9. CONSENT CALENDAR
All matters listed under consent calendar are considered routine, and will be enacted by one motion. There will be no separate discussion on these items prior to the time the Council/Agency/Authority votes on them, unless a member of the Council/Agency/Authority requests a specific item be removed from the consent calendar for discussion.

9.a Minutes 5
Staff Recommendation:

Approve the Minutes of the December 5, 2023, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

9.b Payment of Demands 15
Staff Recommendation:

Approve Payment of Demands in the amount of $7,089,816.34.

9.c Recognized Obligation Payment Schedule (ROPS 24-25), Covering July 1, 2024 through June 30, 2025
25 Staff Recommendation:

Approve the Recognized Obligation Payment Schedule (ROPS 24-25) covering July 1, 2024, through June 30, 2025.

9.d City of Covina Investment Report for Month Ended December 31, 2023 31 Staff Recommendation:

Receive and File.

9.e Approval of Part-Time Salary Range Adjustments Subject to Minimum Wage and Revised Paid Sick Leave Policy for Part-Time Employees 47 Staff Recommendation:

Approve salary range adjustments for classifications affected by the State

mandated minimum wage increases effective January 1, 2024, as per Labor Code Section 1182.12(c)(3)(A) and approve the revised Administrative Policy for Paid Sick Leave for Part-Time Employees per Senate Bill 616.

9.f Covina Performing Arts Center’s Digital Marquee Sign Project – Project No.

F2404 - Final Acceptance and Filing Notice of Completion 55 Staff Recommendation:

1. Accept the work completed by Eagle Signs, Inc; and
Authorize the City Clerk to file a Notice of Completion for the Covina Performing Arts Center’s Digital Marquee Sign Project – Project No.

F2404.

2. 9.g Memorandum of Understanding (MOU) between the City of Covina and the City of West Covina for the Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street
59 Staff Recommendation:

Approve the Memorandum of Understanding (MOU) between the City of Covina and the City of West Covina for the Traffic Signals Improvement Project – Lark Ellen Avenue/Badillo Street; and

1. Authorize the City Manager or his/her designee to execute any necessary amendments to the MOU.

2. 9.h Adoption of Ordinances 23-12 and 23-13 69
Staff Recommendation:

Adopt Ordinance 23-12 12 entitled, “An Ordinance of the City Council of the City of Covina, California, adopting Zone Change (ZCH) 22-7, amending the official zoning map of the city of Covina by changing the zone designation from commercial highway (C-4) zone to “Covina Village Specific Plan (CVSP) designation, with two (2) planning areas:

CVSP planning area 1 - (Townhome Residential) and CVSP planning area 2 - (commercial);” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001-016 and 8421-001-061)”; and

1. Adopt Ordinance 23-13 entitled “An Ordinance of the City Council of the City of Covina, California, approving Development Agreement (DA), pursuant to Government Code Section 65864 et. seq., a development agreement between the city of Covina and PKL, LLC;” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001-016 and 8421-001-061)”.

2. 9.i Adopt Ordinance 23-14 131
Staff Recommendation:

Adopt Ordinance 23-14 entitled, “An Ordinance of the City Council of the City of Covina, California Amending Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of the Covina Municipal Code”.

9.j Resolution CC 2024-02 Authorizing the Acceptance of Grant Funds and Authorizing the City Manager to Enter into Contract with the California Energy Commission to Facilitate an Automatic Permitting Program for Solar Residential Projects
149

Staff Recommendation:

Staff recommends the approval of Resolution CC 2024-02.

9.k Vehicle Purchase 169
Staff Recommendation:

Approve the purchase of a new vehicle in the amount of $32,319.23.

9.l Restaurant Space Lease Agreement – 100 North Citrus Avenue 175 Staff Recommendation:

That the City Council approve a lease agreement with Bear Sausage Co., LLC for the operation of a restaurant at 100 N. Citrus Avenue and authorize the City Manager to make any non-substantive changes that may be required prior to finalizing and executing the agreement.

10. PUBLIC HEARINGS

10.a Consideration of Fiscal Year 2024-2025 Community Development Block Grant (CDBG) Program Budget
199
Staff Recommendation:

1. Open the public hearing and receive public testimony;

2. Close the public hearing;
Consider approval of the FY 2024-2025 CDBG program budget as recommended in Column C of the Table on Attachment A with the provision that: a) the allocation be adjusted based on the final allocation as determined by the Los Angeles County Development Authority (LACDA), with a maximum of 15 percent of funding allocated for public service programs;

3. Adopt Resolution CC 2024-01, authorizing the allocation of the Fiftieth Year CDBG funds for FY 2024-2025; and

4. Authorize the City Manager or his designee to execute the documents related to the FY 2024-2025 CDBG funds.

5. 11. ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for February 6, 2024, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT

AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING

AUTHORITY JOINT MEETING

MINUTES
December 5, 2023, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Patricia Cortez
Councilmember Victor Linares
Mayor Pro Tem/Vice-Chair John C. King
Mayor/Chair Walter Allen, III
Councilmembers Absent: Councilmember Hector Delgado
Staff Present: City Clerk Drew Aleman (Elected Member)
City Manager Chris Marcarello
City Attorney Candice K. Lee
Police Chief David Povero
Administrative Services Director Anita Agramonte
Community Development Director Brian Lee
Parks & Recreation/Library Services Director Lisa Evans Public Works Director Andy Bullington
Deputy City Manager Angel Carrillo
Chief Deputy City Clerk Fabian Velez
Staff Absent: City Treasurer Neil Polzin (Elected Member) _____________________________________________________________________

2 CLOSED SESSION

1. CALL TO ORDER
Mayor Allen called the Council/Agency/Authority meeting to order at 6:37 p.m. with Councilmember Cortez, Mayor Pro Tem King, and Mayor Allen present.

2. PUBLIC COMMENTS
There were no public comments.

3. CLOSED SESSION

3.a Government Code § 54956.9(d)(1) - CONFERENCE WITH LEGAL

COUNCIL - EXISTING LITIGATION
Name of Case: David Foster v. City of Covina, et al; WCAB Case No.

ADJ12505624

4. RECESS
Mayor Allen recessed the Council to Closed Session at 6:38 p.m.

JOINT MEETING—OPEN SESSION 7:30 PM

5. RECONVENE AND CALL TO ORDER
Mayor Allen called the Council/Agency/Authority meeting to order at 7:35 p.m. with all Councilmembers present except Councilmember Delgado, who had an excused absence.

6. ROLL CALL

7. PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.

8. INVOCATION
Given by Police Chaplain Chuck Cannizzaro.

9. CLOSED SESSION REPORT
City Attorney Lee announced that direction was given to staff and no reportable action was taken.

10. PRESENTATIONS

10.a High School Voter Registration Raffle
City Clerk Aleman provided information on the High School Voter Registration Program and the City Council drew the winning names. City Clerk Aleman announced the winners of the raffle.

10.b Covina Christmas Parade Committee Recognition
Mayor Allen called forward the Covina Christmas Parade Committee (Committee) to recognize their hard work on the 33rd annual Tree Lighting Ceremony and the

3 72nd annual Christmas Parade. Committee Chair Joelle Peelgren thanked the City Council, City staff, and the members of the Committee and provided more information on what it takes to put these events on. Committee Chair Peelgren also encouraged the community to get involved.

11. PUBLIC COMMENTS
Los Angeles County Fire Department Assistant Fire Chief Steve Cabrera introduced himself to the City Council and community and expressed his excitement to serve the community.

Dora Gomez was not present at the time her name was called to speak.

Ralph Rocha provided public comments regarding the ongoing conflict between Israel and Palestine and requested that the City Council adopt a resolution of peace. He also provided background on his relation to Dr. Mohammad Hattee.

Mohammad Hattee also commented on his feelings regarding the ongoing conflict between Israel and Palestine.

Glen Barnes commented on overnight parking along Los Angeles County jurisdiction border. Mr. Barnes requested that the City Council look into having the enforcement of parking standards apply consistently to the streets that share jurisdictional boundaries between the City of Covina and County of Los Angeles.

12. COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Cortez thanked the Covina Christmas Parade Committee for their work and stated she was very pleased with the event.

Councilmember Linares echoed the praise to the Covina Christmas Parade Committee and noted that this time of the year has been improving every year. He also thanked City staff for their work with the parade.

Mayor Pro Tem King also thanked City staff and the Covina Christmas Parade Committee for their work and acknowledged the team effort needed to carry out the event.

Mayor Allen thanked the Covina Christmas Parade Committee, Parks & Recreation, Public Works, and Police Departments for their efforts with the Covina Christmas Parade and tree lighting ceremony. He highlighted good news from items on the Consent Calendar including: Item #14.c for providing grants to local businesses, Item #14.d for initiating water main improvements, Item #14.e for securing grant funding from the Department of Justice, and Item #14.g for finalizing sidewalk improvements. Mayor Allen invited the community to support the Covina Police Foundation Photos with Santa Fundraiser taking place at Heritage Park on Saturday, December 9th from 9:00 a.m. to Noon. He also invited the community to participate in the Candy Cane Citrus 1.5k Walk located at Heritage Park on Saturday, December 16th beginning at 5:00 p.m.

13. CITY MANAGER COMMENTS
None.

4 14. CONSENT CALENDAR

14.a Minutes
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
Approve the Minutes of the November 21, 2023, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (4 to 0); Delgado Absent

14.b Payment of Demands
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
Approve Payment of Demands in the amount of $3,433,760.15 Approved (4 to 0); Delgado Absent

14.c City of Covina Business Assistance Job Creation Program Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
Approve the City of Covina Business Assistance Job Creation Program Guidelines and Resolution CC 2023-112 to appropriate funding through General Funds.

Approved (4 to 0); Delgado Absent

14.d Water Main Upgrade - Covina Heights Water Improvement Project– Award of Contract to Gentry Brothers, Inc. for an Amount Not-to-Exceed $2,177,140 In response to a request by Councilmember Cortez, City Manager Marcarello informed the City Council that this item will focus on improvements to the Covina Heights neighborhood and is the first phase which will include 4500 linear feet of water main improvements followed by a second phase of street improvements. City Manager Marcarello gave kudos to City Engineer Rafael Fajardo, Public Works Director Bullington, and the Public Works Department staff for their work on the project. Councilmember Cortez expressed her delight with the impressive funding use.

Motion made by: Councilmember Cortez
Seconded by: Mayor Allen

1. Approve plans and specifications for the Water Main Upgrade – Covina Heights Water Improvement Project;

2. Award a contract for the Water Main Upgrade – Covina Heights Water Improvement Project to Gentry Brothers, Inc. as the lowest responsive

5 bidder in an amount not-to-exceed $2,177,140 and authorize the City Manager to execute the contract; and

3. Authorize a 10% contingency amount of $217,714 for any unforeseen construction expenses.

Approved (4 to 0); Delgado Absent

14.e 2023 COPS Hiring Program
Councilmember Linares stated that the item was pulled due to its importance in the community. At the request of Councilmember Linares, Police Chief Povero explained that the item would approve the receiving of a grant of just over half a million dollars to help the City hire more officers to address gaps found in the strategic plan of the Police Department command staff due to the growth of the community. Police Chief Povero also gave kudos to Lieutenant Ryan Davis and his team for helping to secure the grant to help offset the cost of hiring the officers.

Motion made by: Councilmember Linares
Seconded by: Councilmember Cortez

1. Adopt Resolution CC 2023-118 accepting grant funding from the Department of Justice Cops Hiring Program for the hiring of four full time police officers;

2. Increase to the Police Department FY 2023-24 budget in the amount of $550,000; and

3. Authorize the City Manager or his designee to execute the grant documents on behalf of the City of Covina.

Approved (4 to 0); Delgado Absent

14.f Request to Amend the Classification Plan to Reclassify the Equipment Maintenance Supervisor Position to an Equipment Maintenance Superintendent Job Classification
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
That the City Council adopt Resolution CC 2023-117 to amend the City’s Classification Plan to reclassify the Equipment Maintenance Supervisor position to establish an Equipment Mechanic Superintendent job classification and salary range within the Mid-Management, Supervisory and Professional, and Confidential and Technical Employees (Unaffiliated) Compensation Rules.

Approved (4 to 0); Delgado Absent

14.g City-Wide Sidewalk Repair Project – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King

6 1. Accept the work performed by FS Contractors, Inc.; and

2. Authorize the City Clerk to File a Notice of Completion for the City-Wide Sidewalk Repair Project
Approved (4 to 0); Delgado Absent

14.h Amendment Number Three (3) to the Professional Services Agreement with MasterCorp Services LLC for Janitorial Services
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
Authorize the City Manager or his designee to sign Amendment Number Three (3) to the Professional Services Agreement with MasterCorp Services LLC for Janitorial Services regarding a service rate increase.

Approved (4 to 0); Delgado Absent

14.i Repeal and Rescind Resolution CC 2023-54 and Authorize a Revised Side Letter Agreement with PAC
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
That the City Council adopt Resolution CC 2023-116 to repeal and rescind Resolution CC 2023-54 and authorize the City Manager to execute a revised side letter agreement between the City and the Police Association of Covina (PAC) Bargaining Unit, establishing Special Assignment Pay for Police Liaison PremiumCommunity Impact Team (CIT) Patrol Officer assignment, retroactive to July 1, 2023.

Approved (4 to 0); Delgado Absent

14.j An Amendment to the Ground Lease between the City of Covina and the Covina Housing Authority for Property Owned by the City Located at the Southeast Corner of the Combined Parcels of 601 E. San Bernardino Road and 534 North Barranca Avenue
Motion made by: Councilmember Linares
Seconded by: Mayor Pro Tem King
Authorize the City Manager/Executive Director to execute an amendment to the Ground Lease (“Lease”) between the City of Covina (“City”), as landlord, and the Covina Housing Authority (“Authority”), as tenant, in substantially the form attached as Attachment “B” with such changes therein as the City Manager/Executive Director may approve, and all related documents, and to take such actions as they deem necessary or proper to effectuate the purpose of the Lease.

Approved (4 to 0); Delgado Absent

7 15. PUBLIC HEARINGS

15.a Introduction of Ordinance 23-11 Approving ZCA 23-008 to Amend Chapter

17.59 and 17.31 of Title 17 of the Covina Municipal Code and the Adopted Mitigated Negative Declaration with the Mitigation Reporting and Monitoring Program
Mayor Allen opened the public hearing.

The agenda report was provided by Associate Planner Claudia Vargas.

There were no public comments.

Mayor Allen closed the public hearing.

Motion made by: Mayor Pro Tem King
Seconded by: Councilmember Linares
Waive full reading and introduce Ordinance 23-11, entitled “An Ordinance of the City Council of the City of Covina, California, Approving Zoning Code Amendment (ZCA) 23-008 by Amending Chapter 17.59 (“Mixed-Use Overlay District (MUOD)”) and Chapter 17.31 (“Affordable Housing and Mixed-Use Overlay District (AHMUOD)”) of Title 17 (“Zoning”) of the Covina Municipal Code, Regarding Minimum Parcel Size and Density Requirements, and the Adopted Mitigated Negative Declaration (MND) with the Mitigation Reporting and Monitoring Program (MMRP) Provides Environmental Clearance for the Proposed Changes and That No Further Environmental Review is Needed Under the California Environmental Quality Act (CEQA) Guidelines”.

Approved (4 to 0); Delgado Absent

15.b Covina Town Center Specific Plan Amendment No. 5
Mayor Allen opened the public hearing.

The agenda report was provided by Planning Intern Eduardo Lomeli.

In response to questions from the City Council, Community Development Director Lee informed that the proposed changes are recommendations from the State and only changes the allowable range for transit oriented density zoned parcels within the Covina Town Center Specific Plan.

There were no public comments.

Mayor Allen closed the public hearing.

Motion made by: Mayor Pro Tem King
Seconded by: Councilmember Cortez
Approve Covina Town Center Specific Plan Amendment No. 5 to amend various tables within Chapter 3 and 7 of the adopted 2019 Covina Town Center Specific Plan (CTCSP).

Approved (4 to 0); Delgado Absent

8 15.c Final REIR Certification and Entitlement Applications for a Proposed MixedUse Development Project at 1000 N. Azusa Avenue Staff Recommendation:

1. Approve Resolution CC 2023-XX, to certify the Final Revised EIR, Findings of Facts, and the adoption of the Mitigation Monitoring & Reporting Program (MMRP); and

2. Approval of the following entitlement applications:
a. Resolution CC 2023-XX – General Plan Amendment (GPA) 22-1 b. Resolution CC 2023-XX– Covina Village Specific Plan (SP) 22-1 c. Ordinance 23-XX – Zone Change (ZCH) 22-7
d. Ordinance 23-XX – Development Agreement
e. Resolution CC 2023-XX– Vesting Tentative Tract Map (VTTM) 82315
f. Resolution CC 2023-XX– Vesting Tentative Parcel Map (VTPM) 84018
g. Resolution CC 2023-XX– Conditional Use Permit (CUP) 22-7 h. Resolution CC 2023-XX– Conditional Use Permit (CUP) 22-8 i. Resolution CC 2023-XX - Conditional Use Permit (CUP) 22-9 j. Resolution CC 2023-XX– Site Plan Review (SPR) 22-226 City Manager Marcarello informed the City Council that the developer of the proposed project has requested that the public hearing be opened for public comment and that the item be continued to the next City Council meeting.

Mayor Allen opened the public hearing.

Melinda Forbes expressed her support for the item and her concern with the safety of the open areas of the development.

Motion made by: Mayor Pro Tem King
Seconded by: Councilmember Cortez
To keep the public hearing open and continue the item to the December 19, 2023, City Council Meeting.

Approved (4 to 0); Delgado Absent

9 15.d Public Hearing of 2023 Annual Report for the Prospero Park Owners Association (PPOA) and Proposed 2024 Assessment
Mayor Allen opened the public hearing.

The agenda report was provided by Deputy Director of Administrative Services Theresa Franke.

There were no public comments.

Mayor Allen closed the public hearing.

Motion made by: Councilmember Cortez
Seconded by: Mayor Pro Tem King

1. Conduct the public hearing of the 2023 Annual Report for the Prospero Park Owners Association and Proposed 2024 Assessment; and

2. Adopt Resolution CC 2023-114 confirming the 2023 Annual Report for the Prospero Park Owners Association, and levying the 2024 assessment described therein.

Approved (4 to 0); Delgado Absent

15.e Public Hearing of 2024 Annual Report for Downtown Covina Business Area Enhancement District (BAED)
Mayor Allen opened the public hearing.

The agenda report was provided by Deputy Director of Administrative Services Franke.

There were no public comments.

Councilmember Cortez requested that the City communicate with the Down Town Merchants Association regarding the Light Pole Banner Program.

Mayor Allen closed the public hearing.

Motion made by: Mayor Allen
Seconded by: Mayor Pro Tem King

1. Conduct the public hearing of the 2024 Annual Report for the Covina Downtown Business Area Enhancement District and Proposed Assessment; and

2. Adopt Resolution CC 2023-115, confirming the 2024 Annual Report for the Downtown Covina Business Area Enhancement District, and levying the 2024 assessment described therein.

Approved (4 to 0); Delgado Absent

10 16. NEW BUSINESS

16.a Discussion of Project Aspects of Potential Regionalization of Police Communications
The agenda report and presentation were provided by Police Chief Povero.

Question and discussion included potential locations, connections between the regional dispatch center and other agencies, current capabilities of teamwork between agencies, future goals relating to real time watch centers, benefits programs for employees of the joint powers agreement, and funding opportunities.

The City Council received and filed the report.

17. ADJOURNMENT
At 9:20 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned in memory of Former Emanate Health CEO Robert Curry to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, December 19, 2023, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. _________________________
Fabian Velez, Chief Deputy City Clerk
_________________________
Walter Allen III, Mayor/Chair

CITY OF COVINA AND

SUCCESSOR AGENCY TO THE

COVINA REDEVELOPMENT AGENCY

AGENDA ITEM REPORT
Item #9.b
Meeting: January 16, 2024
Title: Payment of Demands
Presented by: Anita Agramonte, Administrative Services Director Recommendation: Approve Payment of Demands in the amount of $7,089,816.34.

EXECUTIVE SUMMARY/BACKGROUND:

Attached is a list of warrants and demands which are being presented for approval and are summarized as follows:

Accounts Payable Warrants December 1, 2023 – December 28, 2023 CITY checks/EFTs $ 4,973,198.62
CITY payroll $ 2,087,130.84
CITY voids $ (1,946.00)
Worker’s Comp $ 19,817.56
$ 7,078,201.02
SACRA checks/EFTs $ 1,714.69
SACRA payroll $ 9,900.63
$ 11,615.32
TOTAL checks/EFTs $ 7,089,816.34
DISCUSSION:

The attached reports have been reviewed by the Administrative Services Director.

FISCAL IMPACT:

Sufficient funding is available and the related costs are included in the Fiscal Year 23/24 Budget.

Respectfully submitted,

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
5920 10/04/2023 5438 BMO 23,977.65
5921 12/07/2023 4003 MidAmerica 1,872.67
5922 11/01/2023 5438 BMO 19,545.95
5923 09/27/2023 5207 PNC BANK NATIONAL ASSOCATION 733,564.82 5924 12/20/2023 4003 MidAmerica 2,015.92
20753 12/07/2023 788 COVINA, CITY OF 27.07
20754 12/07/2023 2033 NATIONWIDE RETIREMENT SOLUTIONS 7,050.00 20755 12/07/2023 2033 NATIONWIDE RETIREMENT SOLUTIONS 28,350.00 20756 12/07/2023 788 COVINA, CITY OF 48,226.84
20757 12/07/2023 789 COVINA-FSA, CITY OF 1,011.15
20758 12/07/2023 2033 NATIONWIDE RETIREMENT SOLUTIONS 25,916.42 20759 12/07/2023 487 CalPERS 6,887.24
20760 12/07/2023 487 CalPERS 98,054.93
20761 12/21/2023 788 COVINA, CITY OF 51,237.06
20762 12/21/2023 789 COVINA-FSA, CITY OF 1,011.07
20763 12/21/2023 2033 NATIONWIDE RETIREMENT SOLUTIONS 25,766.42 20764 12/21/2023 487 CalPERS 93,798.05
subtotal EFT/wires/direct deposits $ 1,168,313.26
119155 12/06/2023 84 AIRGAS-WEST 66.84
119156 12/06/2023 84 AIRGAS-WEST 229.44
119157 12/06/2023 158 AMERICAN TRAFFIC SOLUTIONS 17,228.21 119158 12/06/2023 160 AMERICAN WEST COAST SECURITY 25.00 119159 12/06/2023 245 AVILA, MONIQUE 158.43
119160 12/06/2023 381 BOOMERANG BLUEPRINT 290.67
119161 12/06/2023 457 CA PARKS AND REC SOCIETY 170.00
119162 12/06/2023 477 STATE OF CALIFORNIA 28,076.06
119163 12/06/2023 493 CWE 424.50
119164 12/06/2023 568 CAT SPECIALTIES INC 627.00
119165 12/06/2023 600 CERTIFIED UNDERCAR PARTS 193.92
119166 12/06/2023 664 CIVILTEC ENGINEERING INC. 2,265.00 119167 12/06/2023 696 COLBURN, MICHAEL 109.10
119168 12/06/2023 700 COLLEY FORD 5,470.82
119169 12/06/2023 703 UNIQUE PRINTING 380.36
119170 12/06/2023 783 CITY OF COVINA WATER 580.43
119171 12/06/2023 788 CASH 300.00
119172 12/06/2023 970 EDISON CO 66,092.74
119173 12/06/2023 1007 ENVISIONWARE, INC. 380.36
119174 12/06/2023 1075 WEX BANK 189.53
119175 12/06/2023 1198 GLOBALSTAR LLC 1.77
119176 12/06/2023 1204 GOLDEN STATE WATER COMPANY 182.15 119177 12/06/2023 1235 GRAINGER 1,324.56
119178 12/06/2023 1275 HAAKER EQUIPMENT CO 7,617.21
119179 12/06/2023 1387 HUNTER, JOHN L. 6,636.00
119180 12/06/2023 1441 INTERSTATE BATTERY SYSTEM OF EAST SAN GABRIEL 159.37 119181 12/06/2023 1614 LA CNTY FIRE DEPARTMENT 1,128,552.05 119182 12/06/2023 1615 REGIONAL TAP SERVICE CENTER 60.00 119183 12/06/2023 1788 MAMMOTH AUDIO SYSTEMS 3,800.00
119184 12/06/2023 2091 O REILLY AUTO PARTS 237.92
119185 12/06/2023 2134 ORKIN PEST CONTROL 150.99
119186 12/06/2023 2407 REGIONAL TAP SERVICE CENTER 346.80 119187 12/06/2023 2426 REYNOLDS BUICK INC 257.03
119188 12/06/2023 2444 RIO HONDO COLLEGE 125.00
Attachment A Page 1 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119189 12/06/2023 2775 SUPERB GRAPHICS INC 701.74
119190 12/06/2023 2795 STATE WATER RESOURCES CONTROL BOARD 17,666.00 119191 12/06/2023 2855 SPECTRUM 89.99
119192 12/06/2023 2958 USPS - POC ACCOUNT #8098154 724.84 119193 12/06/2023 3070 WEST COAST ARBORISTS INC 16,840.00 119194 12/06/2023 3185 TOSHIBA FINANCIAL SERVICES 1,254.60 119195 12/06/2023 3279 SANDS, ALAN 4.98
119196 12/06/2023 3701 DEPARTMENT OF JUSTICE 243.00
119197 12/06/2023 3749 JCL TRAFFIC SERVICES 209.48
119198 12/06/2023 3988 LANDSCAPE WAREHOUSE III 66.38
119199 12/06/2023 4123 RUDY CARDENAS 175.00
119200 12/06/2023 4141 72 HOUR LLC 62,156.68
119201 12/06/2023 4350 RKA Consulting Group 41,770.33
119202 12/06/2023 4429 PROFORCE TEMPORARIES 906.68
119203 12/06/2023 4455 FRONTIER 733.13
119204 12/06/2023 4643 Bear Electrical Solutions, Inc. 21,930.46 119205 12/06/2023 4682 Evan Brooks Associates, Inc. 9,500.00 119206 12/06/2023 4687 Mighty Oak Technnology 18,000.00 119207 12/06/2023 4688 PCAM, LLC 76,879.46
119208 12/06/2023 4713 Fisher Integrated, Inc. 600.00
119209 12/06/2023 4764 UniFirst Corporation 616.63
119210 12/06/2023 4766 HASA, INC. 287.60
119211 12/06/2023 4817 Weck Analytical Environmental Services, Inc. 10.00 119212 12/06/2023 4824 Occu-Med, Ltd. 1,425.40
119213 12/06/2023 4836 Lucius Williams 432.85
119214 12/06/2023 4863 La Verne Power Equipment 496.11
119215 12/06/2023 4871 HARRINGTON INDUSTRIAL PLASTICS, LLC 190.18 119216 12/06/2023 4893 DXP ENTERPRISES, INC 1,520.00
119217 12/06/2023 4983 Ad Valorem Records,Inc. 9,474.36 119218 12/06/2023 5075 Amalia Q. Seresinghe 1,946.00
119219 12/06/2023 5099 CliftonLarsonAllen LLP 13,000.00 119220 12/06/2023 5186 DAYSMART SOFTWARE 82.84
119221 12/06/2023 5228 ODP BUSINESS SOLUTIONS, LLC 13.99 119222 12/06/2023 5269 CONTROL AIR ENTERPRISES LLC. 5,580.00 119223 12/06/2023 5283 Y TIRE PERFORMANCE 2,310.80
119224 12/06/2023 5285 MLXPERTS LLC 3,500.00
119225 12/06/2023 5291 AMAZON CAPITAL SERVICES, INC 324.87 119226 12/06/2023 5331 SPERIDAN TECHNOLOGIES LLC 49,450.00 119227 12/06/2023 5336 ABI DOCUMENT SUPPORT SERVICES LLC 1,009.39 119228 12/06/2023 5368 WESCO SECURITY SYSTEMS INC 195.00 119229 12/06/2023 5404 SAN FERNANDO VALLEY ALARM CO. 302.00 119230 12/06/2023 5467 UNITED IMPORTS OF PUENTE HILLS 5,705.66 119231 12/06/2023 5471 CENTRAL SANITARY SUPPLY LLC 157.54 119232 12/06/2023 99999 AMAIRINI MORA 26.71
119233 12/06/2023 99999 BELINDA MORALES 30.06
119234 12/06/2023 99999 BEVERLY H RAY 16.26
119235 12/06/2023 99999 CHARLES ERICHSEN 7,844.57
119236 12/06/2023 99999 CHRIS HATZIKIAN 32.42
119237 12/06/2023 99999 COSIPA 150.00
119238 12/06/2023 99999 DESIREE JIMENEZ 70.51
119239 12/06/2023 99999 DIANNA E. SIERRA 66.23
119240 12/06/2023 99999 DOROTHY URIBE 39.69
Attachment A Page 2 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119241 12/06/2023 99999 JESSE GUTIERREZ 369.78
119242 12/06/2023 99999 JILL HUGHES-RANABAUER 60.62
119243 12/06/2023 99999 JOLEEN KENNELLEY 31.38
119244 12/06/2023 99999 JOSHUA TURNER 139.98
119245 12/06/2023 99999 MANUEL GONZALES 71.69
119246 12/06/2023 99999 MICHAEL JUAREZ 34.66
119247 12/06/2023 99999 ONGART VASNARUNGRUENGKUL 81.77
119248 12/06/2023 99999 PASQUALE L CORDASCO 19.93
119249 12/06/2023 99999 RYAN UNG 49.90
119250 12/06/2023 99999 SAFROS CORP 3,760.00
119251 12/07/2023 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 3,814.16 119252 12/07/2023 69 AFSCME District Council 36 835.45
119253 12/07/2023 775 COVINA POLICE ASSOCIATION 2,900.00 119254 12/07/2023 878 DELTA DENTAL OF CALIFORNIA 8,968.47 119255 12/07/2023 1106 FRANCHISE TAX BOARD 1,105.05
119256 12/07/2023 3795 PRE-PAID LEGAL SERVICES, INC 140.02 119257 12/07/2023 3846 CLEA 904.50
119258 12/07/2023 4255 RELIASTAR LIFE INSURANCE COMPANY 4,350.35 119259 12/07/2023 4710 Fidelity Security Life Insurance Company 970.15 119260 12/13/2023 82 AIR-BREE HEATING 212.00
119261 12/13/2023 116 ALL STAR GLASS 1,039.24
119262 12/13/2023 219 AT&T 396.90
119263 12/13/2023 219 AT&T 54.43
119264 12/13/2023 221 AT&T MOBILITY 4.35
119265 12/13/2023 239 AUTOZONE INC 77.74
119266 12/13/2023 370 BOB BARKER CO INC 198.52
119267 12/13/2023 381 BOOMERANG BLUEPRINT 263.55
119268 12/13/2023 457 CA PARKS AND REC SOCIETY 170.00
119269 12/13/2023 568 CAT SPECIALTIES INC 697.39
119270 12/13/2023 600 CERTIFIED UNDERCAR PARTS 260.34
119271 12/13/2023 649 CINTAS CORP #693 702.18
119272 12/13/2023 654 CITRUS CAR WASH 124.95
119273 12/13/2023 692 CODE PUBLISHING COMPANY 2,472.50
119274 12/13/2023 700 COLLEY FORD 2,573.26
119275 12/13/2023 700 COLLEY FORD 1,301.16
119276 12/13/2023 703 UNIQUE PRINTING 68.36
119277 12/13/2023 739 COPWARE 1,725.00
119278 12/13/2023 749 BOHL PH.D., NANCY K. 655.00
119279 12/13/2023 766 COVINA DISPOSAL CO 19,680.49
119280 12/13/2023 771 COVINA IRRIGATING CO 231,199.22
119281 12/13/2023 796 CPRS DISTRICT 13 160.00
119282 12/13/2023 970 EDISON CO 50,992.64
119283 12/13/2023 1075 WEX BANK 485.57
119284 12/13/2023 1156 THE GAS COMPANY 2,409.82
119285 12/13/2023 1204 GOLDEN STATE WATER COMPANY 742.78 119286 12/13/2023 1235 GRAINGER 219.79
119287 12/13/2023 1361 HOLLIDAY ROCK CO INC 1,264.66
119288 12/13/2023 1364 HOME DEPOT CREDIT SERVICES 4,952.61 119289 12/13/2023 1505 JOHNNY'S POOL SERVICE 435.60
119290 12/13/2023 1531 JW LOCK CO INC 307.60
119291 12/13/2023 1571 KING BOLT CO 31.25
119292 12/13/2023 1694 LEWIS ENGRAVING INC 92.61
Attachment A Page 3 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119293 12/13/2023 1751 LOU'S GLASS HOUSE OF COVINA 410.25 119294 12/13/2023 1754 LOWE'S COMPANIES INC 851.83
119295 12/13/2023 1933 MISSION LINEN SUPPLY 32.10
119296 12/13/2023 2027 NAPA AUTO PARTS 3,644.50
119297 12/13/2023 2091 O REILLY AUTO PARTS 169.11
119298 12/13/2023 2238 PEST OPTIONS INC 845.00
119299 12/13/2023 2275 POIRIER, ROBERT 140.00
119300 12/13/2023 2345 QUILL 72.74
119301 12/13/2023 2415 REPUBLIC MASTER CHEFS 259.36
119302 12/13/2023 2426 REYNOLDS BUICK INC 303.38
119303 12/13/2023 2676 SMART AND FINAL IRIS CORP 341.31 119304 12/13/2023 2711 SOUTHEAST CONSTRUCTION INC 104.19 119305 12/13/2023 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 125.02 119306 12/13/2023 2795 STATE WATER RESOURCES CONTROL BOARD 4,614.00 119307 12/13/2023 2935 UNDERGROUND SERVICE ALERT 270.32 119308 12/13/2023 3001 VERIZON WIRELESS 4,141.60
119309 12/13/2023 3023 VULCAN MATERIALS COMPANY 3,434.79 119310 12/13/2023 3052 WATERLINE TECHNOLOGIES INC 5,375.70 119311 12/13/2023 3070 WEST COAST ARBORISTS INC 573.00
119312 12/13/2023 3082 WESTERN WATER WORKS SUPPLY 275.73 119313 12/13/2023 3152 YWCA 2,231.22
119314 12/13/2023 3163 GENTRY BROTHERS INC 779,354.02
119315 12/13/2023 3300 SOUTHERN COUNTIES FUELS 2,853.82 119316 12/13/2023 3729 SUNBELT RENTALS INC 357.55
119317 12/13/2023 3749 JCL TRAFFIC SERVICES 11,866.66
119318 12/13/2023 3964 RED WING BUSINESS ADVANTAGE ACCOUNT 300.00 119319 12/13/2023 3988 LANDSCAPE WAREHOUSE III 850.86
119320 12/13/2023 4065 VERIZON WIRELESS 266.52
119321 12/13/2023 4141 72 HOUR LLC 70,789.25
119322 12/13/2023 4209 ADLERHORST INTERNATIONAL 484.00
119323 12/13/2023 4246 FERGUSON WATERWORKS #1083 486.31 119324 12/13/2023 4247 UNITED WATER WORKS INC 15,337.02 119325 12/13/2023 4279 BOSS JANITORIAL SERVICES 11,736.63 119326 12/13/2023 4350 RKA Consulting Group 5,630.00
119327 12/13/2023 4359 CHARGEPOINT, INC. 324.60
119328 12/13/2023 4389 EMPLOY AMERICA 2,322.00
119329 12/13/2023 4433 JAIME YAMASHITA 8,008.00
119330 12/13/2023 4438 CALIFORNIA COMPUTER SCHOOLS, INC 105.00 119331 12/13/2023 4448 FS CONTRACTORS, INC. 5,388.00
119332 12/13/2023 4455 FRONTIER 6,128.95
119333 12/13/2023 4571 POWER SECURITY GROUP INC 12,364.00 119334 12/13/2023 4582 USABLUEBOOK 533.71
119335 12/13/2023 4676 Hill Brothers Chemical Company 796.57 119336 12/13/2023 4682 Evan Brooks Associates, Inc. 14,053.00 119337 12/13/2023 4687 Mighty Oak Technnology 550.00
119338 12/13/2023 4688 PCAM, LLC 14,910.48
119339 12/13/2023 4704 S & J Supply Company, Inc. 3,313.38 119340 12/13/2023 4714 CIR, Inc. 50,554.49
119341 12/13/2023 4764 UniFirst Corporation 1,218.20
119342 12/13/2023 4765 Advanced Microcomputing Concepts, Inc. 2,735.31 119343 12/13/2023 4817 Weck Analytical Environmental Services, Inc. 692.00 119344 12/13/2023 4833 Michael R. Hillmann 2,275.00
Attachment A Page 4 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119345 12/13/2023 4835 ABBA TERMITE & PEST CONTROL, INC 375.00 119346 12/13/2023 4854 CEJ Engineers, Inc. 32,268.00
119347 12/13/2023 4863 La Verne Power Equipment 1,044.37 119348 12/13/2023 4878 iWater, Inc. 3,000.00
119349 12/13/2023 4885 ELIE FARAH 1,500.00
119350 12/13/2023 4886 DG Collision LLC 4,357.33
119351 12/13/2023 4934 Peter Joseph Bucknam 1,730.41
119352 12/13/2023 4952 Next Level Elevator 7,865.00
119353 12/13/2023 4965 Environment Planning Development Solutions, Inc. 6,793.50 119354 12/13/2023 4968 Semper Scientific, Inc 910.00
119355 12/13/2023 4977 Enterprise FM Trust 4,277.92
119356 12/13/2023 5042 GoGov, Inc. 22,170.00
119357 12/13/2023 5109 SITEREP CONSTRUCTION SERVICES, INC. 14,719.50 119358 12/13/2023 5139 Crown Castle Fiber LLC 925.00
119359 12/13/2023 5228 ODP BUSINESS SOLUTIONS, LLC 85.97 119360 12/13/2023 5251 DANIEL'S TIRE SERVICE 1,210.46
119361 12/13/2023 5262 SAUL CAMPOS 3,540.00
119362 12/13/2023 5269 CONTROL AIR ENTERPRISES LLC. 2,646.00 119363 12/13/2023 5283 Y TIRE PERFORMANCE 109.00
119364 12/13/2023 5291 AMAZON CAPITAL SERVICES, INC 925.43 119365 12/13/2023 5307 STENO AGENCY INC 526.80
119366 12/13/2023 5336 ABI DOCUMENT SUPPORT SERVICES LLC 112.21 119367 12/13/2023 5354 MALLORY SAFETY & SUPPLY LLC 395.62 119368 12/13/2023 5356 LONI INC 6,500.00
119369 12/13/2023 5394 SIERRA PLUMBING & DRAIN CLEANING 835.00 119370 12/13/2023 5417 GIANT INLAND EMPIRE RV CENTER INC 10,987.00 119371 12/13/2023 5431 ASTRA BACKFLOW INC 386.00
119372 12/13/2023 5435 CORE & MAIN LP 4,201.74
119373 12/13/2023 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 20,648.33 119374 12/13/2023 5458 J.S. HELD LLC 1,000.00
119375 12/13/2023 5464 ADVANCE STORES COMPANY INC 1,458.63 119376 12/13/2023 5466 DAVID VOLZ DESIGN LANDSCAPE ARCHITECTS INC 16,510.00 119377 12/13/2023 5472 BRIAN F. KING CONSULTING INC 1,500.00 119378 12/13/2023 5473 EL OASIS FISHERIA INC 13,890.61
119379 12/13/2023 5475 GREGORY HALL AND LAW OFFICE OF ALBERT PEREZ 11,000.00 119380 12/13/2023 99999 ALAN LIV 510.00
119381 12/13/2023 99999 ANNA MARIA YBANEZ 20.00
119382 12/13/2023 99999 BAJA PACIFIC CONSTRUCTION, INC. 3,000.00 119383 12/13/2023 99999 EKO BUDIONO SOEMA 80.00
119384 12/13/2023 99999 LAURA AYALA-LOPEZ 300.00
119385 12/13/2023 99999 LISA JAN 78.00
119386 12/20/2023 84 AIRGAS-WEST 719.20
119387 12/20/2023 113 ALL CITY MANAGEMENT SVC 18,581.48 119388 12/20/2023 219 AT&T 67.39
119389 12/20/2023 254 AZUSA LIGHT & WATER 162.58
119390 12/20/2023 381 BOOMERANG BLUEPRINT 229.02
119391 12/20/2023 493 CWE 656.50
119392 12/20/2023 649 CINTAS CORP #693 351.09
119393 12/20/2023 703 UNIQUE PRINTING 125.69
119394 12/20/2023 749 BOHL PH.D., NANCY K. 150.00
119395 12/20/2023 783 CITY OF COVINA WATER 182.34
119396 12/20/2023 894 DF POLYGRAPH 400.00
Attachment A Page 5 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119397 12/20/2023 970 EDISON CO 2,423.90
119398 12/20/2023 1156 THE GAS COMPANY 853.45
119399 12/20/2023 1204 GOLDEN STATE WATER COMPANY 78.86 119400 12/20/2023 1241 GRAND PRINTING 593.25
119401 12/20/2023 1275 HAAKER EQUIPMENT CO 16.60
119402 12/20/2023 1420 INDEPENDENT CITIES ASSOC 2,563.40 119403 12/20/2023 1437 INTER-CON SECURITY SYSTEMS INC 9,048.79 119404 12/20/2023 1615 REGIONAL TAP SERVICE CENTER 80.00 119405 12/20/2023 1646 LANGUAGE LINE SERVICES INC 113.74 119406 12/20/2023 1754 LOWE'S COMPANIES INC 3.44
119407 12/20/2023 2407 REGIONAL TAP SERVICE CENTER 433.30 119408 12/20/2023 2415 REPUBLIC MASTER CHEFS 284.50
119409 12/20/2023 2705 SOUTH COAST AQMD 665.26
119410 12/20/2023 2804 TAG AMS INC 90.00
119411 12/20/2023 2852 THREE VALLEY MUN WATER DISTR 92,369.81 119412 12/20/2023 2855 CHARTER COMMUNICATION 263.72
119413 12/20/2023 2903 TRI-XECUTEX CORP 180.00
119414 12/20/2023 2953 URBAN FUTURES INC 9,625.00
119415 12/20/2023 3001 VERIZON WIRELESS 1,591.73
119416 12/20/2023 3004 VICTORY EXTERMINATING INC 75.00
119417 12/20/2023 3052 WATERLINE TECHNOLOGIES INC 1,680.21 119418 12/20/2023 3134 XEROX CORPORATION 745.29
119419 12/20/2023 3729 SUNBELT RENTALS INC 1,072.65
119420 12/20/2023 3771 BLACK & WHITE EMERGENCY VEHICLES 200.00 119421 12/20/2023 3988 LANDSCAPE WAREHOUSE III 193.34
119422 12/20/2023 4080 THE BODE TECHNOLOGY GROUP, INC. 513.04 119423 12/20/2023 4141 72 HOUR LLC 126,121.46
119424 12/20/2023 4225 CORELOGIC SOLUTIONS, LLC 231.75
119425 12/20/2023 4292 DUDEK 11,500.00
119426 12/20/2023 4406 MORITA, DUANE A 1,750.00
119427 12/20/2023 4429 PROFORCE TEMPORARIES 2,514.90
119428 12/20/2023 4455 FRONTIER 410.80
119429 12/20/2023 4469 FOUNTAIN VALLEY MUSIC CENTER, INC. 1,000.00 119430 12/20/2023 4688 PCAM, LLC 17,625.09
119431 12/20/2023 4704 S & J Supply Company, Inc. 382.34 119432 12/20/2023 4854 CEJ Engineers, Inc. 21,180.00
119433 12/20/2023 4869 VERITEXT, LLC 1,211.20
119434 12/20/2023 4883 Glendora Employment Agency, Inc 1,387.38 119435 12/20/2023 5011 Excel Office Services 239.10
119436 12/20/2023 5080 Spohn Ranch, Inc. 17,400.00
119437 12/20/2023 5112 Procure America, Inc 265.08
119438 12/20/2023 5117 Steam It All LLC 775.00
119439 12/20/2023 5138 Ricoh USA, Inc. 299.63
119440 12/20/2023 5228 ODP BUSINESS SOLUTIONS, LLC 194.70 119441 12/20/2023 5283 Y TIRE PERFORMANCE 2,826.54
119442 12/20/2023 5291 AMAZON CAPITAL SERVICES, INC 321.20 119443 12/20/2023 5293 CLIPA, LLC 84,902.66
119444 12/20/2023 5331 SPERIDAN TECHNOLOGIES LLC 5,869.00 119445 12/20/2023 5336 ABI DOCUMENT SUPPORT SERVICES LLC 241.36 119446 12/20/2023 5343 BLUE-WHITE INDUSTRIES 1,205.19
119447 12/20/2023 5389 PREMIER WIRELESS SOLUTIONS LLC 22,104.89 119448 12/20/2023 5432 OPPENHEIMER INVESTIGATIONS GROUP LLP 997.50 Attachment A Page 6 of 7

CITY OF COVINA
Check Register
Dec 1, 2023 - Dec 28, 2023
Check # Check Date Vendor Name Amount
119449 12/20/2023 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 43,791.86 119450 12/20/2023 5440 WORKMAN MOLINA 4,088.00
119451 12/20/2023 99999 ALICE LEUNG 240.91
119452 12/20/2023 99999 CHRISTOPHER JENKS 49.51
119453 12/20/2023 99999 DAIMEON MONTOYA 324.00
119454 12/20/2023 99999 DAN REGAN 89.31
119455 12/20/2023 99999 DANIELLA ANDRADE 160.67
119456 12/20/2023 99999 JOVANNI MARQUEZ 174.34
119457 12/20/2023 99999 RENE VILLALOBOS 75.00
119458 12/20/2023 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 3,814.16 119459 12/20/2023 69 AFSCME District Council 36 812.53
119460 12/20/2023 775 COVINA POLICE ASSOCIATION 2,900.00 119461 12/20/2023 878 DELTA DENTAL OF CALIFORNIA 8,968.47 119462 12/20/2023 1106 FRANCHISE TAX BOARD 1,105.05
119463 12/20/2023 3795 PRE-PAID LEGAL SERVICES, INC 139.98 119464 12/20/2023 3846 CLEA 904.50
119465 12/20/2023 4255 RELIASTAR LIFE INSURANCE COMPANY 4,395.55 119466 12/20/2023 4710 Fidelity Security Life Insurance Company 983.51 subtotal checks $ 3,806,600.05
118956 11/16/2023 5075 Amalia Q. Seresinghe (1,946.00)
voids $ (1,946.00)
payroll (12/07/23) $ 1,027,933.15
payroll (12/21/23) $ 1,069,098.32
workers' compensation $ 19,817.56
TOTAL checks/EFTs $ 7,089,816.34
Attachment A Page 7 of 7

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.c
Meeting: January 16, 2024
Title: Recognized Obligation Payment Schedule (ROPS 24-25), Covering July 1, 2024 through June 30, 2025
Presented by: Anita Agramonte, Administrative Services Director Brian K. Lee, Community Development Director
Recommendation: Approve the Recognized Obligation Payment Schedule (ROPS 24-25) covering July 1, 2024, through June 30, 2025.

EXECUTIVE SUMMARY/BACKGROUND:

Pursuant to Health and Safety Code (HSC) Section 34177, and Senate Bill 107, the Successor Agency to the Covina Redevelopment Agency is required to submit an annual ROPS for the upcoming fiscal year to the California State Department of Finance (DOF) for approval in order to obtain sufficient funds to meet authorized financial obligations of the Agency. Effective July 1, 2018, the Oversight Board to the Successor Agency to the Covina Redevelopment Agency was disbanded and all Oversight Board matters are currently considered by the Consolidated Oversight Board (COB) for Supervisorial District 5, which includes the City of Covina. In order to submit the ROPS to DOF by the required February 1, 2024 date, the COB will need to consider this matter in January 2024. The staff report and ROPS were submitted to the COB for review and approval at their meeting on January 11, 2024.

DISCUSSION:

In order for the Successor Agency to the Covina Redevelopment agency to receive sufficient funding to meet its financial obligations, the Fifth District Consolidated Oversight Board, which oversees eighteen former redevelopment agencies, must approve the ROPS. The ROPS must be adopted for each successive annual fiscal period, pursuant to Senate Bill 107, signed on September 22, 2015.

The ROPS 24-25 was approved by the COB on January 11, 2024. It includes funding for the disposal of the last properties owned by the Agency as well as the administrative costs associated with the disposal. “Other Funds” were utilized for the ROPS 24-25, therefore no RPTTF funds were requested at that time. With COB approval, the resolution is forwarded to DOF for their consideration and approval.

FISCAL IMPACT:

In order for the Successor Agency to meet its financial obligations during this period, an approved ROPS must be filed with the Los Angeles County Auditor-Controller, the State of California Controller and the State of California Department of Finance. For July 1, 2024 through December 31, 2024 period (ROPS 24-25A), the Successor Agency is projecting expenditures of $80,250 and for January 1, 2025 through June 30, 2025 period (ROPS 24-25B) the request is for $80,250.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not Applicable.

Respectfully submitted,

Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: Covina
County: Los Angeles
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
24-25A Total
(July -
December)
24-25B Total
(January -
June)
ROPS 24-25
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 80,250 $ 80,250 $ 160,500 B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds 80,250 80,250 160,500
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ - $ - $ -

F RPTTF - - -
G Administrative RPTTF - - -
H Current Period Enforceable Obligations (A+E) $ 80,250 $ 80,250 $ 160,500 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date

ATTACHMENT A

Covina
Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025

A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
24-25
Total
ROPS 24-25A (Jul - Dec)
24-25A
Total
ROPS 24-25B (Jan - Jun)
24-25B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$160,500 $160,500 $- $- $80,250 $- $- $80,250 $- $- $80,250 $- $- $80,250 5 2004 Tax
Allocation Bonds
Series B-1
Revenue
Bonds Issued
On or Before
12/31/10
11/01/
2004
12/01/2023 US
Bank
Bond issue to
fund housing
projects
1 - N $- - - - - - $- - - - - - $-
7 Fiscal Agent
Fees
Fees 07/01/
1997
12/01/2023 US
Bank
Fiscal agent
fees to
maintain bond
funds
1&2 - N $- - - - - - $- - - - - - $-
34 Tax Allocation
Revenue
Refunding Bonds
Series 2013E
Refunding
Bonds Issued
After 6/27/12
12/18/
2013
12/01/2023 US
Bank
Refunding
bond issue of
non-housing
projects
1&2 - N $- - - - - - $- - - - - - $-
35 Tax Allocation
Revenue
Refunding Bonds
Series 2013E
Fees 12/18/
2023
12/01/2023 US
Bank
Fiscal agent
fees to
maintain bond
funds
1&2 - N $- - - - - - $- - - - - - $-
37 Tax Allocation
Revenue
Refunding Bonds
Series 2014A
Refunding
Bonds Issued
After 6/27/12
12/23/
2014
12/15/2023 US
Bank
Refunding
bond issue of
non-housing
projects
1&2 - N $- - - - - - $- - - - - - $-
38 Tax Allocation
Revenue
Refunding Bonds
Series 2014A
Fees 12/23/
2014
12/15/2023 US
Bank
Fiscal agent
fees to
maintain bond
funds
1&2 - N $- - - - - - $- - - - - - $-
39 Administration Admin Costs 07/01/
2017
06/30/2018 City of
Covina
Administration 1&2 130,000 N $130,000 - - 65,000 - - $65,000 - - 65,000 - - $65,000 44 LRPMP Property
Disposition
Property
Dispositions
07/01/
2017
06/30/2018 Various Costs for
Property
Disposition
1&2 30,500 N $30,500 - - 15,250 - - $15,250 - - 15,250 - - $15,250

Covina
Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 21-22 Cash Balances
(07/01/21 - 06/30/22)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/21)
RPTTF amount should exclude "A" period distribution
amount.
92,483 124,023 2,837,114 834,800 158,967
2 Revenue/Income (Actual 06/30/22)
RPTTF amount should tie to the ROPS 21-22 total
distribution from the County Auditor-Controller
282 1,831 - 167,453 3,065,055
3 Expenditures for ROPS 21-22 Enforceable Obligations
(Actual 06/30/22)
74,643 2,837,114 253,000 215,455
4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
558,656 2,975,580 Includes 20-21 PPA retained for 23-24 5 ROPS 21-22 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 21-22 PPA
form submitted to the CAC
No entry required 32,987
6 Ending Actual Available Cash Balance (06/30/22)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$18,122 $125,854 $- $190,597 $-

Covina
Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025
Item # Notes/Comments
5 7
34 35
37 38
39 44 Parcel 8 Outback Property & Parcel 10 Walmart

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.d
Meeting: January 16, 2024
Title: City of Covina Investment Report for Month Ended December 31, 2023 Presented by: Anita Agramonte, Administrative Services Director Recommendation: Receive and File.

EXECUTIVE SUMMARY:

Pursuant to Government Code Section 53600 et seq. and Section 4.0 of the City of Covina’s Investment Policy, a monthly investment report must be provided to the City Council and City Manager, containing detailed information of all securities, investments and monies of the City.

DISCUSSION:

The attached report for the City and Successor Agency reflects the portfolio balances for the month ended December 31, 2023. The report is in conformity with the City’s Investment Policy as well as Government Code 53601. In accordance with the City's Investment Policy, the City Council authorizes staff to continue investing the City's idle funds in similar securities as those presented in these reports attached hereto. There are sufficient funds to meet the pooled expenditure requirements for all City funds for the next 6 months.

FISCAL IMPACT:

None to receive and file.

Respectfully submitted,

CASH AND INVESTMENT BALANCE 11/30/2023 $89,713,071.75
RECEIPTS 12/1/23-12/31/23 22,396,762.55

DISBURSEMENTS 12/1/23-12/31/23 (19,689,715.86)
CASH AND INVESTMENT BALANCE 12/31/2023 $92,420,118.44

ANALYSIS OF CASH AND INVESTMENT BALANCE - BOOK VALUE
INVESTMENT PORTFOLIO Attachment A-2 $59,315,680.80
LOCAL AGENCY INVESTMENT FUND Attachment A-4 27,852,863.90 TOTAL PUBLIC INVESTMENTS 87,168,544.70
CHECKING / PETTY / STIFEL CASH BALANCES 5,251,573.74
CASH AND INVESTMENT BALANCE 12/31/2023 92,420,118.44
CASH HELD BY BOND TRUSTEES 3,014,528.96
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANCE 12/31/2023 $95,434,647.40

CITY OF COVINA INVESTMENT REPORT
FOR THE MONTH ENDED DECEMBER 31, 2023
The purpose of this report is to provide readers with the overall cash position of the City. There is sufficient investment liquidity to meet the pooled expenditures of all City’s funds for the next 6 months.

Attachment A -City

BOOK ACQUISITION MATURITY MARKET

TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
City of Covina:

Drawer & Petty Cash N/A $7,347.45 N/A N/A $7,347.45
General - Checking Account BMO 3,498,224.76 N/A Demand 3,498,224.76 Public Agency Saving - Parking Fines BMO 34,670.69 N/A Demand 34,670.69 Utility Billing Account BMO 114,310.36 N/A Demand 114,310.36 Workers' Compensation - Checking Account BMO 95,179.01 N/A Demand 95,179.01 Payroll - Checking Account BMO 159,355.45 N/A Demand 159,355.45 Money Market BMO 1,027,443.08 N/A Demand 1,027,443.08
AFLAC Flexible Spending Account BMO 23,279.82 N/A Demand 23,279.82 STIFEL Cash Per GL Various 291,763.12 Various Various 291,763.12 STIFEL Investment Portfolio Various 59,315,680.80 Various Various 58,763,690.58 Local Agency Investment Fund State of California 27,852,863.90 N/A Demand 27,852,863.90 Subtotal (A) $92,420,118.44 $91,868,128.22
Cash Held With 3rd Party Administrator:

TRIP 2017A Covina Wilmington Trust $339.53 N/A Demand $339.53 LA County Loan Agreement U.S. Bank 1,750,037.34 N/A Demand 1,750,037.34 Other Post-Employment Benefits U.S. Bank 1,258,340.81 N/A Demand 1,258,340.81 2021 Taxable Pension Obligation Bonds U.S. Bank 5,811.15 N/A Demand 5,811.15 2019 Wastewater Refunding Bonds U.S. Bank 0.13 N/A Demand 0.13 Subtotal (B) $3,014,528.96 $3,014,528.96
TOTAL (A+B) $95,434,647.40 $94,882,657.18

CITY OF COVINA

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED DECEMBER 31, 2023
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.

S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\December 2023\Dec 2023 Investment Report\CITY -ATTACH A-1 Attachment A-1 CITY Page 34 of 212 Exhibit A-2

CITY OF COVINA
Stifel
Investment Portfolio as of
December 2023
Investment Detail as of
December 2023
Issuer Purchase Date
Market Price
Per Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Agric MTG CorpMedium Term Note 06/30/22 91.640000 1,000,000 915,357.70 0.9400 31422XGQ9 10/26/2026 Stifel FEDL Agric MTG CorpMedium Term Note 10/12/22 99.600000 1,000,000 1,000,000.00 5.1000 3134GX4R2 10/28/2025 Stifel FEDL AGRIC MTG Corp-Medium
Term Note 03/06/23 99.815000 1,000,000 1,000,000.00 5.9000 31422XY30 3/8/2028 Stifel Total Agricultural Mortgage 3,000,000 2,915,357.70
FEDL Farm Credit Bank Bond 02/02/22 99.803000 2,000,000 1,990,871.52 0.9000 3133ENLF5 1/18/2024 Stifel FEDL Farm Credit Bank Bond 02/02/22 96.708000 1,000,000 998,647.01 1.3200 3133ENLU2 1/21/2025 Stifel FEDL Farm Credit Bank Bond 02/02/22 92.760000 1,000,000 996,151.59 1.5000 3133ENKV1 1/13/2027 Stifel Federal Farm Credit Bank Bond 04/07/22 97.290000 1,000,000 1,013,319.77 3.1500 3133EJDV8 3/22/2027 Stifel FEDL Farm Credit Bank Bond 01/10/23 99.529000 1,000,000 1,000,000.00 5.1400 3133EN6C9 1/18/2028 Stifel Total Federal Farm Credit 6,000,000 5,998,989.89

Investment Detail as of
December 2023
Issuer Purchase Date
Market Price
Per Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Home Loan Bank Bond 02/02/22 96.851000 1,000,000 1,022,199.15 2.6250 3130A6ZQ3 12/12/2025 Stifel FEDL Home Loan Bank Bond 04/07/22 97.160000 1,000,000 1,007,971.16 3.0000 3130A2VE3 9/11/2026 Stifel FEDL Home Loan Bank Bond 06/30/22 99.100000 1,000,000 1,000,599.02 3.1250 3130ASHK8 6/14/2024 Stifel FEDL Home Loan Bank Bond 06/30/22 96.399000 1,000,000 952,708.25 1.0000 3130AQF40 12/20/2024 Stifel FEDL Home Loan Bank Bond 10/12/22 99.541000 1,000,000 1,000,000.00 5.4100 3130ATN94 10/18/2027 Stifel FEDL Home Loan Bank Bond 10/12/22 99.581000 1,080,000 1,079,730.00 5.5000 3130ATMD6 10/27/2027 Stifel FEDL Home Loan Bank Bond 01/09/23 99.809000 2,000,000 2,000,000.00 5.0000 3130AUGG3 1/24/2025 Stifel FEDL Home Loan Bank Bond 02/06/23 99.529000 1,000,000 1,000,000.00 5.5000 3130AUTV6 2/24/2028 Stifel FEDL Home Loan Bank Bond 02/07/23 99.726000 1,000,000 1,000,000.00 5.0000 3130AUUN2 2/14/2025 Stifel FEDL Home Loan Bank Bond 02/13/23 99.811000 1,000,000 1,000,000.00 5.6000 3130AUXK5 3/9/2026 Stifel FEDL Home Loan Bank Bond 02/21/23 99.850000 1,000,000 1,000,000.00 5.3500 3130AV3C4 3/7/2025 Stifel FEDL Home Loan Bank Bond 02/22/23 99.508000 1,000,000 1,000,000.00 5.3000 3130AV4C3 3/9/2028 Stifel FEDL Home Loan Bank Bond 02/23/23 99.764000 1,000,000 1,000,000.00 5.3000 3130AV4Y5 3/13/2028 Stifel FEDL Home Loan Bank Bond 04/10/23 99.500000 1,000,000 1,000,000.00 5.5000 3130AVMT6 4/28/2028 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 04/24/23 99.613000 1,000,000 1,000,000.00 5.1500 3134GYQT2 5/1/2026 Stifel FEDL Home Loan Bank Bond 05/09/23 99.066000 1,000,000 1,000,000.00 5.0500 3130AVZG0 5/15/2028 Stifel FEDL Home Loan Bank Bond 05/17/23 99.584000 1,000,000 1,000,000.00 5.6000 3130AW5P1 5/25/2028 Stifel FEDL Home Loan MTG Corp
Medium Term Note 06/01/23 99.787000 1,000,000 1,000,000.00 5.8500 3134GYTL6 12/14/2027 Stifel FEDL Home Loan Bank Bond 06/06/23 99.924000 1,000,000 1,000,000.00 5.5000 3130AWD80 6/12/2026 Stifel FEDL Home Loan MTG CorpMedium Term Note 07/24/23 99.793000 1,000,000 1,000,000.00 5.7500 3134GYY55 4/26/2027 Stifel FEDL Home Loan MTG CorpMedium Term Note 07/27/23 99.766000 1,000,000 1,000,000.00 6.0000 3134GYXS6 7/27/2028 Stifel FEDL Home Loan MTG CorpMedium Term Note 07/27/23 99.837000 1,000,000 1,000,000.00 6.0500 3134GYY71 8/10/2028 Stifel FEDL Home Loan MTG CorpMedium Term Note 07/31/23 99.863000 1,000,000 1,000,000.00 6.0000 3134GYYJ5 8/16/2027 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 10/23/23 100.637000 1,000,000 1,000,000.00 6.0000 3134H1HY2 10/30/2028 Stifel Federal Home Loan Mtg Corp 11/06/23 99.794000 1,000,000 1,000,000.00 6.0000 3134H1KD4 11/27/2028 Stifel FEDL Home Loan MTG Corp- Pool
#WN2479 12/04/23 100.128400 1,000,000 993,437.50 4.9400 3132XGXH4 5/1/2028 Stifel Total Federal Home Loan 27,080,000 27,056,645.08
State Bank of India - New York NY
CD 02/01/22 91.039000 245,000 245,000.00 1.7500 856285G21 2/9/2027 Stifel Pentagon Federal CR UN - Tysons
Corner VA 02/02/22 90.781000 245,000 245,000.00 1.7000 70962LBE1 2/18/2027 Stifel Sallie Mae Bank - Salt Lake City UT
CD 02/16/22 92.253000 245,000 245,000.00 2.2000 795451BH5 2/23/2027 Stifel American Express Natl BK - Salt
Lake City UT CD 03/01/22 96.226000 245,000 245,000.00 1.8000 02589ABP6 3/10/2025 Stifel Beal Bank - Las Vegas NV CD 03/01/22 91.789000 245,000 245,000.00 2.0500 07371CK81 3/3/2027 Stifel Beal Bank -
Plano TX CD 03/01/22 91.789000 245,000 245,000.00 2.0500 07371AZQ9 3/3/2027 Stifel BMW Bank North America -
Salt Lake City UT CD 03/01/22 96.265000 245,000 245,000.00 1.8000 05580AK37 3/4/2025 Stifel Medallion Bank - Salt Lake City UT
CD 03/01/22 91.691000 245,000 245,000.00 2.0500 58404DNG2 3/8/2027 Stifel Live Oak Bkg Co - Wilmington NC
CD 03/03/22 96.428000 249,000 248,751.00 1.8500 538036HW7 2/14/2025 Stifel Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 93.523000 245,000 245,000.00 2.7000 14042TFJ1 4/13/2027 Stifel Synchrony Bank - Draper UT CD 04/07/22 93.520000 245,000 245,000.00 2.7000 87165FK45 4/14/2027 Stifel Ally Bank -
Midvale UT CD 04/27/22 95.653000 245,000 245,000.00 2.8500 02007GQQ9 5/5/2026 Stifel Capital One NA -
Mclean VA CD 04/27/22 94.529000 245,000 245,000.00 3.0500 14042RRA1 5/4/2027 Stifel Goldman Sachs Bank USA -
New York NY CD 04/27/22 94.511000 245,000 245,000.00 3.0500 38149M6Y4 5/11/2027 Stifel Toyota Finl Svgs Bank- Henderson
NV CD 05/09/22 94.959000 245,000 245,000.00 3.2000 89235MNH0 5/17/2027 Stifel First Natl Bank of Amer- East
Lansing MI CE 05/16/22 96.707000 245,000 245,000.00 3.0000 32110YXE0 11/28/2025 Stifel Morgan Stanley Bank NA- Salt Lake
City UT CD 05/16/22 95.110000 245,000 245,000.00 3.2500 61690UJ68 5/19/2027 Stifel Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 95.110000 245,000 245,000.00 3.2500 61768EJR5 5/19/2027 Stifel Discover BankGreenwood DE CD 05/20/22 94.945000 245,000 245,000.00 3.2000 254673E36 5/24/2027 Stifel

Investment Detail as of
December 2023
Issuer Purchase Date
Market Price
Per Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Barclays Bank DE- Wilmington DE
CD 05/24/22 97.324000 245,000 245,000.00 3.0500 06740KQS9 6/2/2025 Stifel Isreal Discount BK of NY- New York
NY CD 05/24/22 99.070000 245,000 245,000.00 2.8500 465076TQ0 5/28/2024 Stifel BMO Harris Bank NAChicago IL CD 06/23/22 97.461000 245,000 245,000.00 3.2000 05600XGK0 6/24/2025 Stifel Oceanfirst Bank NA- Toms River NJ
CD 06/23/22 99.096000 245,000 245,000.00 3.2500 67523TBE2 7/1/2024 Stifel Pinnacle Bank -
Nashville TN CD 06/23/22 99.027000 245,000 245,000.00 3.0500 72345SLE9 6/28/2024 Stifel Synovus Bank- Columbus GA CD 06/23/22 98.760000 245,000 245,000.00 3.2000 87164DTM2 8/30/2024 Stifel UBS Bank USA- Salt Lake City UT
CD 06/27/22 99.086000 245,000 245,000.00 3.2000 90348J4B3 7/1/2024 Stifel American First CR UN- Brea CA
SHS CTF 06/30/22 97.474000 245,000 245,000.00 3.2500 02616ABJ7 7/15/2025 Stifel First Technology FCUMountain View CA SHS CTF 06/30/22 99.415000 245,000 245,000.00 3.2500 33715LEA4 4/15/2024 Stifel Tennessee Valley Auth- PWR Bond
1995 SER E 06/30/22 104.418000 1,000,000 1,066,065.86 6.7500 880591CJ9 11/1/2025 Stifel Austin Telco Fed CR UN- Austin TX
SHS CTF 11/14/22 100.423000 245,000 245,000.00 5.0500 052392CC9 11/27/2026 Stifel Baxter CR UN- Vernon Hills IL SHS
CTF 11/14/22 100.297000 245,000 245,000.00 5.0000 07181JAV6 11/30/2026 Stifel Greenwood Credit Union- Warwick
RI SHS CTF 11/14/22 99.931000 245,000 245,000.00 4.9500 397129AJ6 5/28/2024 Stifel Kemba FINL CR UN- Kemba OH
SHS CTF 11/14/22 100.022000 245,000 245,000.00 5.2500 48836LAW2 11/23/2027 Stifel Mountain Amer Fed CR UN- West
Jordan UT SHS CTF 11/14/22 99.952000 245,000 245,000.00 5.0000 62384RAS5 5/28/2024 Stifel Oklahoma Fedl CR UN- Oklahoma
City OK CD 11/14/22 99.871000 245,000 245,000.00 5.0000 67886WAB3 11/22/2024 Stifel Rogue Credit UnionMedford OR SHS CTF 11/14/22 100.022000 245,000 245,000.00 5.2000 77535MAE3 11/26/2027 Stifel USAlliance FCU- Rye NY SHS CTF 11/14/22 99.892000 245,000 245,000.00 5.0000 90352RCW3 11/29/2024 Stifel All in FED CR Union- Daleville AL
SHS CTF 12/07/22 98.749000 245,000 245,000.00 4.4500 01664MAA4 12/21/2026 Stifel Ideal Credit Union- Woodbury MN
SHS CTF 12/07/22 99.272000 245,000 245,000.00 4.5000 45157PAZ3 12/29/2027 Stifel Workers Credit Union- Littleton MA
SHS CTF 12/07/22 99.990000 245,000 245,000.00 5.0500 98138MAZ3 6/17/2024 Stifel Community West CR UNKentwood MI CD 12/12/22 100.035000 245,000 245,000.00 5.0000 20416JAC8 6/23/2025 Stifel Alliant Credit Union- Chicago IL SHS
CTF 12/20/22 100.553000 245,000 245,000.00 4.8500 01882MAA0 12/30/2027 Stifel Valley Strong CR UN- Bakersfield
CA SHS CTF 01/04/23 99.995000 245,000 245,000.00 5.1000 920133AL9 7/18/2025 Stifel Technology CR UN- San Jose CA SH
CTF 01/09/23 99.995000 245,000 245,000.00 5.1000 87868YAH6 7/21/2025 Stifel Uncle Credit UnionLivermore CA SHS CTF 01/10/23 99.975000 245,000 245,000.00 5.0000 90307LAB0 1/25/2024 Stifel Affinity FEDL Credit UN- Basking
Ridge NJ SHS CTF 01/26/23 99.967000 245,000 245,000.00 5.0000 00832KBH1 2/1/2024 Stifel True Sky FEDL CR UNOklahoma City OK SHS CTF 01/26/23 98.098000 248,000 233,596.16 0.3500 89786MAA2 5/20/2024 Stifel Sound CR UN- Tacoma WA ShS
CTF 02/06/23 100.006000 245,000 245,000.00 5.1000 83616HAC8 2/21/2025 Stifel Coop Choice Network CUPeoria IL CD 02/13/23 99.958000 245,000 245,000.00 5.1000 21686QAE9 2/23/2024 Stifel Grow FNL FED CR UN- Tampa FL
SHS CTF 02/14/23 99.948000 245,000 245,000.00 5.0500 39981MAB8 2/26/2024 Stifel First NATL BankDamariscotta ME CD 03/09/23 100.329000 245,000 245,000.00 5.0000 32117BFR4 9/23/2026 Stifel Kodabank- Drayton ND CD 03/09/23 100.330000 245,000 245,000.00 5.0000 50007DAC3 9/22/2026 Stifel Truliant FEDL CR UNWinston Salem NC SHS CTF 03/09/23 100.700000 245,000 245,000.00 5.1500 89789AAH0 3/23/2026 Stifel Pacific Western BankSan Diego CA CD 03/23/23 100.224000 245,000 245,000.00 5.6500 69506YYD5 4/5/2028 Stifel Knoxville TVA Employees - Credit
Union 04/13/23 96.757000 249,000 236,275.11 1.9500 499724AL6 1/16/2025 Stifel Cornerstone Bank- Fargo ND CD 05/01/23 100.870200 245,000 245,000.00 - 219232CR4 5/10/2028 Stifel Local Govt FEDL CR Un- Raleigh
NC SHS CTF 05/04/23 99.942000 245,000 245,000.00 5.1500 53955LAC1 5/17/2024 Stifel Bank of Baroda- New York NY CD 05/09/23 99.900000 245,000 245,000.00 5.0500 06063HQL0 11/15/2024 Stifel Centris FEDL CR UN- Omaha NE
SHS CTF 05/09/23 99.996000 245,000 245,000.00 5.0000 15643VAB8 5/24/2025 Stifel

Investment Detail as of
December 2023
Issuer Purchase Date
Market Price
Per Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
NexBank Dallas TX CD 05/09/23 100.008000 245,000 245,000.00 5.0500 653344CD1 5/15/2025 Stifel Credit Union of Texas- Allen TX
SHS CTF 05/11/23 100.058000 245,000 245,000.00 5.1500 22551KAZ5 5/27/2025 Stifel Greenstate Credit Union- North
Liberty IA SH CTF 05/11/23 100.004000 245,000 245,000.00 5.1500 39573LEA2 11/18/2024 Stifel Raiz FCU- EL Paso TX CD 05/11/23 99.966000 245,000 245,000.00 5.2000 75102EAN8 5/24/2024 Stifel Tech Credit Union- Crown Point in
CD CTF 05/15/23 100.001000 245,000 245,000.00 5.1500 87823TAD0 11/25/2024 Stifel First Choice FEDL CR UN- New
Castle PA SHS CTF 05/17/23 99.995000 245,000 245,000.00 5.0000 31949HAA9 5/27/2025 Stifel I H MISS VLY CR UNMoline IL SHS CTF 05/17/23 100.000000 245,000 245,000.00 5.2000 44963KAE8 5/29/2024 Stifel Connexus Credit Union- Wausau WI
SHS CTF 06/05/23 100.380000 245,000 245,000.00 5.4000 20825WBN9 3/15/2025 Stifel Cross River Bank- Teaneck NJ CD 06/06/23 100.095000 245,000 245,000.00 5.2500 227563CS0 12/16/2024 Stifel First Source FED CR UN- New
Hartford NY SHS CTF 06/06/23 100.106000 245,000 245,000.00 5.4500 33651FAJ8 6/17/2024 Stifel Global Federal CR UN- Anchorage
AK SHS CTG 06/06/23 100.306000 245,000 245,000.00 5.2000 37892MAL8 6/16/2025 Stifel Americu CR UN- Rome NY SHS
CTF 06/13/23 100.190000 245,000 245,000.00 5.3500 03065QAP3 12/23/2024 Stifel Oregon CMNTY CR UN- Eugene
OR SHS CTF 06/16/23 100.262000 245,000 245,000.00 5.1500 68584JAE9 6/23/2025 Stifel Jefferson Finl FCU- Metirie LA SHS
CTF 06/21/23 100.086000 245,000 245,000.00 5.2500 474067CH6 12/30/2024 Stifel CY Fair FCUHouston TX SHS CTF 06/26/23 101.163000 245,000 245,000.00 5.3000 23248UAC1 7/14/2028 Stifel Southwest Heritage CU- Odessa TX
SHS CTF 06/26/23 100.615000 245,000 245,000.00 5.1000 84503PAF7 1/7/2026 Stifel Western Alliance Bank- Phoenix AZ
CD 06/26/23 100.049000 245,000 245,000.00 5.2500 95763PPD7 1/7/2025 Stifel Inspire FEDL CR UN- Bristol PA
SHS CTF 06/29/23 100.387000 245,000 245,000.00 5.0000 457731AQ0 6/30/2026 Stifel Liberty Fed CR UNEvansville IN SHS CTF 07/01/23 100.519000 245,000 245,000.00 5.3000 53052LAW9 7/14/2025 Stifel TTCU Federal CR Union- Tulsa OK
CD 07/10/23 100.617000 245,000 245,000.00 5.3500 89854LAE3 7/25/2025 Stifel Numerica Credit Union-Spokane
VLY WA SHS CTF 07/12/23 102.499000 245,000 245,000.00 5.1000 67054NBK8 7/31/2028 Stifel GESA CR UN- Richland WA CD 07/19/23 100.965000 245,000 245,000.00 5.2500 37424PAH7 7/31/2026 Stifel GHS FED CR UN- Binghamton NY
SHS CTF 08/02/23 101.226000 245,000 245,000.00 5.6000 36266LAB2 8/17/2028 Stifel Pima FEDL CR UN- Tucson AZ SHS
CTF 08/02/23 101.090000 245,000 245,000.00 5.3000 722000AC0 8/17/2026 Stifel Communitywide FEDL CR UNSouth Bend IN SHS CTF 08/04/23 100.563000 245,000 245,000.00 5.2000 20416TBD3 8/29/2025 Stifel Signature Federal Cred U 08/16/23 101.092000 245,000 245,000.00 5.3000 82671DAG2 8/28/2026 Stifel Advantage FEDL CR UNRochester NY SHS CTF 08/24/23 100.995000 245,000 245,000.00 5.3000 00790JAD4 12/31/2025 Stifel Money One FCU- Largo MD SHS
CTF 09/01/23 102.321000 245,000 245,000.00 5.0000 60936TAL3 9/14/2028 Stifel Tucson FEDL CR UN- Tucson AZ
CD 09/01/23 102.289000 245,000 245,000.00 5.0000 898812AC6 9/8/2028 Stifel Lafayette FEDL CR UNRockville MD SHS CTF 11/22/23 100.765000 245,000 245,000.00 5.5500 50625LBP7 5/30/2025 Stifel Keypoint CR UN- San Jose CA SHS
CTF 12/13/23 100.000000 245,000 245,000.00 5.4000 49332PAC4 12/27/2024 Stifel SCE FCU- Irwindale CA SHS CTF 12/13/23 100.030000 245,000 245,000.00 5.0000 78413RAJ6 6/20/2025 Stifel Dannemora FED CR UNPlattsburgh NY CD 12/20/23 100.549000 245,000 245,000.00 5.3000 236334AD0 12/28/2028 Stifel Total Certificates of Deposit 23,306,000 23,344,688.13
Stifel Securities 59,386,000 $ 59,315,680.80
Stifel Cash Per GL $ 291,763.12
Stifel Total Value of Portfolio 59,386,000 $ 59,607,443.92

Qty Purch Date Maturity Sale Date
Share Price at
Purchase Date Net Trade Amount Cost Basis Value Market Value Accrued Interest Issuer CUSIP Held by 10,000 12/04/23 5/1/2028 100.128400 $1,000,000.00 $993,437.50 $1,001,284.00 FEDL Home Loan MTG CorpPool #WN2479 3132XGXH4 Stifel
2,400 12/13/23 12/27/2024 100.000000 245,000.00 245,000.00 245,000.00 Keypoint CR UNSan Jose CA SHS CTF 49332PAC4 Stifel
2,400 12/13/23 6/20/2025 100.030000 245,000.00 245,000.00 245,073.50 SCE FCUIrwindale CA SHS CTF 78413RAJ6 Stifel
2,400 12/20/23 12/28/2028 100.549000 245,000.00 245,000.00 246,345.05 Dannemora FED CR UNPlattsburgh NY CD 236334AD0 Stifel
Total $1,735,000.00 $1,728,437.50 $1,737,702.55 -
Qty Purch Date Maturity Sale Date
Share Price at Sale /
Maturity Date Original Cost Value
Par Value at
Sale/Maturity
Gain / (Loss) on
Sale / Redemption
Interest Earnings
Since Purchase Issuer CUSIP Held by
2,400 12/07/22 12/13/2023 12/14/2023 100.000000 $245,000.00 $245,000.00 $0.00 $12,250.00 Farmers Ins Group FCULos Angeles CA SHS CTF 30960QAL1 Stifel 2,400 06/23/22 12/29/2023 12/29/2023 100.000000 245,000 245,000 0.00 11,014.93 Bank Hapoalim BMNew York NY CD 06251A4G2 Stifel
Total $490,000.00 $490,000.00 $0.00 $23,264.93
Period Interest Revenue
Previous Month $178,088.42
Previous 12 mos. $1,642,604.12

CITY OF COVINA
Investment Transaction Summary
for the Month Ended December 31, 2023
Purchased Investments
Net Revenue Analysis - for Period Ending November 30, 2023 Sold/Matured Investments

1/5/24, 9:48 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
January 05, 2024
LAIF Home
PMIA Average Monthly
Yields

CITY OF COVINA

CITY TREASURER
125 E. COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 98-19-219
December 2023 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
12/20/2023 12/19/2023 RW 1744075 1704480 THERESA FRANKE -3,000,000.00 12/22/2023 12/21/2023 RD 1744245 1704645 THERESA FRANKE 6,000,000.00 Account Summary
Total Deposit: 6,000,000.00 Beginning Balance: 24,852,863.90 Total Withdrawal: -3,000,000.00 Ending Balance: 27,852,863.90 Attachment A-4 City

Statement Total
Balance Percentage
Cash Balances $5,251,574 5.50%
Local Agency Investment Fund 27,852,864 29.19%
Treasury / Agency 35,970,993 37.69%
Certificate of Deposits 23,344,688 24.46%
Funds Held by Bond Trustees 3,014,529 3.16%
Total $95,434,647 100.00%

CITY OF COVINA
Cash & Investment Holdings by Type as of December 31, 2023 *Average Investment coupon rate: 4.44% (based on weighted average of Original Cost Value) Cash Balances, 5.50%
Local Agency Investment
Fund, 29.19%
Treasury / Agency, 37.69%
Certificate of Deposits,

24.46%
Funds Held by Bond
Trustees, 3.16%

HOLDINGS BY TYPE
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\December 2023\Investment Holdings by Sector - Dec 23 Attachment A-5 City

CASH AND INVESTMENT BALANCE 11/30/2023 $584,761.15
RECEIPTS 12/1/23-12/31/23 0.00

DISBURSEMENTS 12/1/23-12/31/23 0.00
CASH AND INVESTMENT BALANCE 12/31/2023 $584,761.15

ANALYSIS OF CASH AND INVESTMENT BALANCE
CHECKING ACCOUNT $37,642.64
LOCAL AGENCY INVESTMENT FUND Attachment A-6 547,118.51
AVAILABLE CASH BALANCES 584,761.15
CASH HELD BY BOND TRUSTEES 317,028.26
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANCE 12/31/2023 $901,789.41 FOR THE MONTH ENDED DECEMBER 31, 2023
The purpose of this report is to provide readers with the overall cash position of the Successor Agency to the Covina Redevelopment Agency (Agency). There is sufficient investment liquidity to meet the pooled expenditures of all Agency's funds for the next 6 months.

SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY INVESTMENT REPORT Attachment A- Agency

BANK ACQUISITION MARKET

TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
Successor Agency to the Covina Redevelopment Agency:

Checking Account BMO $37,642.64 N/A Demand $37,642.64
Local Agency Investment Fund State of California 547,118.51 Demand 547,118.51 Subtotal (A) $584,761.15 $584,761.15
Cash Held With 3rd Party Administrator:
(1) 2013 Series A Tax Allocation Bonds U.S. Bank* $217,437.48 N/A Demand $217,437.48 Fiscal Agent: U.S. Bank
(2) 2014 Series A Tax Allocation Bonds U.S. Bank* 58,402.97 N/A Demand 58,402.97 Fiscal Agent: U.S. Bank
(3) 2004 Series B Tax Allocation Bonds U.S. Bank* 41,187.81 N/A Demand 41,187.81 Fiscal Agent: U.S. Bank
Subtotal (B) $317,028.26 $317,028.26
TOTAL (A+B) $901,789.41 $901,789.41
* Formerly BNY Mellon

SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED DECEMBER 31, 2023
The purpose of this schedule is to show the total cash and investments held by the Successor Agency to the Covina Redevelopment Agency by account.

1/5/24, 10:01 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
January 05, 2024
LAIF Home
PMIA Average Monthly
Yields

S/A CITY OF COVINA FOR COVINA

REDEVELOPMENT AGENCY

FINANCE DIRECTOR
125 EAST COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 65-19-007
December 2023 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 547,118.51
Total Withdrawal: 0.00 Ending Balance: 547,118.51
Attachment A-6 Agency

Quarter
Ending City Agency*
12/31/2021 $70,413,148 $1,686,904
12/31/2022 $80,007,762 $3,578,279
12/31/2023. $95,434,647 $901,789

CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY Cash and Investments Three Year Comparison as of December 31, 2023 The purpose of this schedule is to show, for comparison purposes, the total cash and investment values for the last 3 years. *Successor Agency to Covina Redevelopment Agency
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
12/31/2021 12/31/2022 12/31/2023.
$70,413,148
$80,007,762
$95,434,647
$1,686,904 $3,578,279 $901,789
MONTH ENDING DEC. 31, 2023
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\December 2023\Cash Comparison Dec 2023 Attachment A-7 City and Agency

Carrying Cost Plus
Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury:

Bills 26,992,679,410.54 $ 27,341,582,810.63 $ 27,352,122,000.00 $ NA Notes 68,988,369,285.87 $ 68,970,726,643.78 $ 68,066,367,000.00 $ 380,047,413.50 $ Federal Agency:

SBA 273,825,056.61 $ $ 273,825,056.61 $ 273,117,626.86 $ 1,326,636.53 MBS-REMICs $ 2,164,861.02 $ 2,164,861.02 $ 2,133,161.33 $ 9,501.16 Debentures $ 8,533,332,561.10 $ 8,532,907,561.09 $ 8,460,384,650.00 $ 60,973,579.20 Debentures FR $ - $ - $ - $ -
Debentures CL $ 650,000,000.00 $ 650,000,000.00 $ 639,238,500.00 $ 4,456,111.50 Discount Notes $ 21,584,982,812.45 $ 21,861,271,194.36 $ 21,856,617,000.00 NA Supranational Debentures $ 2,819,756,450.14 $ 2,819,512,700.14 $ 2,788,881,800.00 $ 20,848,175.60 Supranational Debentures FR $ - $ - $ - $ -
CDs and YCDs FR $ - $ - $ - $ -
Bank Notes $ - $ - $ -
CDs and YCDs $ 12,200,000,000.00 $ 12,200,000,000.00 $ 12,207,619,357.44 $ 162,478,416.67 Commercial Paper $ 9,014,594,527.68 $ 9,116,638,444.29 $ 9,117,150,756.95 NA Corporate:

Bonds FR $ - $ - $ - $ -
Bonds $ 566,929,562.48 $ 566,697,340.26 $ 551,864,240.00 $ 3,944,225.38 Repurchase Agreements $ - $ - $ - $ -
Reverse Repurchase $ - $ - $ - $ -
Time Deposits $ 5,284,000,000.00 $ 5,284,000,000.00 $ 5,284,000,000.00 NA PMIA & GF Loans $ 325,717,000.00 $ 325,717,000.00 $ 325,717,000.00 NA TOTAL $ 157,236,351,527.89 $ 157,945,043,612.18 $ 156,925,213,092.58 $ 634,084,059.54 Fair Value Including Accrued Interest $ 157,559,297,152.12 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

The value of each participating dollar equals the fair value divided by the amortized cost (0.993543131).

As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,870,862.61 or $20,000,000.00 x 0.993543131.

State of California
Pooled Money Investment Account
Market Valuation
12/31/2023
Attachment A-8

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.e
Meeting: January 16, 2024
Title: Approval of Part-Time Salary Range Adjustments Subject to Minimum Wage and Revised Paid Sick Leave Policy for Part-Time Employees
Presented by: Suzanne Stone, Deputy Director of Administrative Services-Human Resources Anita Agramonte, Director of Administrative Services
Recommendation: Approve salary range adjustments for classifications affected by the State mandated minimum wage increases effective January 1, 2024, as per Labor Code Section 1182.12(c)(3)(A) and approve the revised Administrative Policy for Paid Sick Leave for Part-Time Employees per Senate Bill 616.

EXECUTIVE SUMMARY:

California law mandates that the minimum wage be increased when certain inflation-related events occur.

Specifically, California Labor Code section 1182.12 delegates authority to California’s Director of Finance to annually determine and certify to the Governor and State Legislature whether an adjustment to the minimum wage is appropriate. On July 31, 2023, the Director of Finance published a letter stating it was necessary for the minimum wage to rise by 3.5% to account for an inflation adjustment effective the beginning of 2024. Governor Gavin Newsom subsequently certified the California minimum wage increase to $16.00 per hour for all employers as of January 1, 2024.

On October 4, 2023, Governor Newsom signed Senate Bill (SB) 616, which increases the amount of paid sick leave employers are required to provide to California employees. Beginning on January 1, 2024, employers must increase the amount of sick leave provided to part-time employees from three (3) days/24 hours to five (5) days/40 hours, with the ability to utilize accrued sick leave after 90 days of employment.

The City Council will consider authorizing wage adjustments and an increase in sick leave time for certain classifications impacted by these mandates, effective January 1, 2024 (per Labor Code section 1182.12(c)(3)(A)).

Additionally, these changes will impact salaries for other part-time classifications in related job families. As a result, it is requested that the City Council authorize salary adjustments to the other job classifications in the related job families to avoid salary compaction issues.

BACKGROUND:

On December 3, 2019, City Council approved salary rate adjustments for classifications subject to the state mandated minimum wage increases for calendar years 2020, 2021, and 2022. This was the result of SB3, which was signed by Governor Edmund G. Brown, Jr. on April 4, 2016, making California the first state in the nation to sign landmark legislation committed to gradually raising the minimum wage to $15 per hour statewide. The minimum wage rate was initially raised to $12.00 per hour on January 1, 2019 for businesses with 26 or more employees, and continued to rise by $1.00 each year until reaching $15 per hour on January 1, 2022. SB3 provided increases up through calendar year 2022.

Subsequently, on November 15, 2022, City Council approved another minimum wage salary adjustment to $15.50 an hour as per Labor Code section 1182.12(c)(3)(A), effective January 1, 2023, which was based on the annual inflation rate from July 1, 2021, through June 30, 2022.

This year, the state’s Department of Finance calculated that an adjustment of 3.5% must be implemented by January 1, 2024. Increases to California’s minimum wage are expected to continue each calendar year under Labor Code section 1182.12 or other legislation. The revised Part-Time Salary Schedule is included as Exhibit A.

It is also recommended that City Council delegate authority to the City Manager to revise the City’s personnel rules for Part-Time employees to increase their sick leave accruals to a maximum amount of forty (40) hours with the ability to utilize accrued sick leave after 90 days of employment. The revised Administrative Policy for Paid Sick Leave for Part-Time Employees is included as Exhibit B.

DISCUSSION:

The City has eight (8) part time job classifications subject to the 2024 minimum wage increase, wherein Step One of the respective salary range is currently below $16.00 per hour. Step One of the classifications of Administrative Intern, Community Resources Aide, Engineering Intern, Library Page Shelver, Police Cadet, and Student Aide is currently at $15.50 per hour, Custodian is $15.74, and Community Resources Assistant I is $15.97 per hour. The proposed new ranges for the salary steps for these classifications to meet the State’s new minimum wage increase as of January 1, 2024 are as follows:

Classification Salary Steps
1 2 3 4 5
Administrative Intern $16.00 $16.80 $17.64 $18.52 $19.45 Community Resources Aide
Custodian
Engineering Intern
Library Page Shelver
Police Cadet
Student Aide
1 2 3 4 5
Community Resources
Assistant I $16.80 $17.64 $18.52 $19.45 $20.42
Additionally, the City has two (2) other part-time classifications within the same job family that will be affected by these increases, causing a salary compaction issue: Community Resources Assistant II (Step 1 is currently $16.92) and Community Resources Specialist (Step 1 is currently $18.62). In order to provide a consistent salary variance between classifications within this same job family, staff recommends that following the salary ranges be adjusted:

Classification Salary Steps
1 2 3 4 5
Community Resources Assistant II $17.64 $18.52 $19.45 $20.42 $21.44 Community Resources Specialist $20.00 $21.00 $22.05 $23.15 $24.31 FISCAL IMPACT:

The proposed wage adjustments will directly impact for twenty (20) budgeted positions in the City. Additionally, twenty-six (26) employees will be impacted due to salary compaction issues in related job families. It is estimated that these adjustments will increase salary/benefit expenses by $9,526.19 in Fiscal Year 2024.

The proposed sick leave accrual adjustments will impact all part-time employees, increasing annual sick leave by sixteen (16) hours per employee. Utilizing an average hourly wage of $25 and total of fifty-two (52) budgeted

part-time positions, it is estimated that that these adjustments will increase leave expenses by $16,900 in Fiscal Year 2024.

If necessary, the Council will consider appropriating additional funds for these expenses as part of the Citywide mid-year budget review that will take place at an upcoming meeting.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

DESCRIPTION STEP HOURLY
9040 ADMINISTRATIVE INTERN 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45
9054 BACKGROUND INVESTIGATOR 1 $ 27.47
2 $ 28.84
3 $ 30.29
4 $ 31.80
5 $ 33.39
9130 CITY RESOURCE SPECIALIST $ 25.00
-
$ 105.00
9090 COMMUNITY RESOURCES AIDE 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45
9100 COMMUNITY RESOURCES ASSISTANT I 1 $ 16.80
2 $ 17.64
3 $ 18.52
4 $ 19.45
5 $ 20.42
9110 COMMUNITY RESOURCES ASSISTANT II 1 $ 17.64
2 $ 18.52
3 $ 19.45
4 $ 20.42
5 $ 21.44
9120 COMMUNITY RESOURCES SPECIALIST 1 $ 20.00
2 $ 21.00
3 $ 22.05
4 $ 23.15
5 $ 24.31
9355 CUSTODIAN 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45

CITY OF COVINA

SALARY SCHEDULE PART-TIME
EFFECTIVE JANUARY 1, 2024

DESCRIPTION STEP HOURLY
9150 ENGINEERING INTERN 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45
9180 LIBRARY CLERK 1 $ 17.05
2 $ 17.90
3 $ 18.80
4 $ 19.74
5 $ 20.72
9091 LIBRARY PAGE SHELVER 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45
9220 OVERNIGHT ENFORCEMENT OFFICER 1 $ 18.99
2 $ 19.94
3 $ 20.94
4 $ 21.98
5 $ 23.08
9230 PARK MAINTENANCE ASSISTANT 1 $ 16.35
2 $ 17.17
3 $ 18.03
4 $ 18.93
5 $ 19.87
9265 POLICE CADET 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45
9260 RESERVE POLICE OFFICER 1 $ 20.00
9340 STUDENT AIDE 1 $ 16.00
2 $ 16.80
3 $ 17.64
4 $ 18.52
5 $ 19.45

City of Covina

ATTACHMENT B
Administrative Policy
Paid Sick Leave Policy for Part-Time Employees
Date Created: 07/01/2015 Date Revised: 01/16/2024
Prior Revision Date: 12/09/2020
Purpose
To establish guidelines for administering and using paid sick leave for part-time employees in line with Labor Code 246, Article 1.5.

Policy
I. ACCRUAL METHOD
 Part-time employees shall accrue 1 hour of sick leave for every 30 hours worked.  Paid sick leave will be paid at the part-time employee's base hourly rate of pay.  Part-time employees shall be entitled to use paid sick leave beginning 90 days from date of hire.

II. USE OF SICK LEAVE
 Effective January 1, 2024, the maximum number of sick leave hours an employee may use in a 12-month period shall be capped at 40 hours.  Part-time employees may use their accrued paid sick leave for their own healthcare needs or for those of the following family members:
a. A child who, for the purposes of this policy, includes a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age or dependency status.
b. A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. c. A spouse
d. A registered domestic partner
e. A grandparent
f. A grandchild
g. A sibling
h. A designated person, for purposes of this policy, means a person identified by the employee at the time the employee requests paid sick time. The employee is limited to one designated person per 12-month period for paid sick days.  Part-time employees may use their sick leave if they are a victim of domestic violence, sexual assault, or stalking to obtain any relief or services related to being such a victim, including but not limited to:

a. A temporary restraining order.
b. Other injunctive relief to help ensure the health, safety or welfare of themselves or their children.
c. To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking.
d. To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault, or stalking. e. To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking.
f. To participate in safety planning, and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.
 If the need to use accrued paid sick leave is foreseeable the employee must give reasonable advance notice to their supervisor. Where the need is unforeseeable the employee must give notice to their supervisor as soon as is practicable and if possible, prior to the start of his/her shift.

III. SICK LEAVE UPON SEPARATION
 Part-time employees shall not receive any cash out or compensation for unused accrued paid sick leave upon termination, resignation, retirement or other separation from employment.
 When a part-time employee separates from City employment and is subsequently rehired by the City within one year of the date of separation, previously accrued and unused paid sick leave hours shall be reinstated.

Employee questions about this Policy should be directed to Human Resources at ext. 5555. These procedures are subject to change as determined by state and federal law.

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.f
Meeting: January 16, 2024
Title: Covina Performing Arts Center’s Digital Marquee Sign Project – Project No. F2404 - Final Acceptance and Filing Notice of Completion
Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director/City Engineer
Recommendation: 1. Accept the work completed by Eagle Signs, Inc; and

2. Authorize the City Clerk to file a Notice of Completion for the Covina Performing Arts Center’s Digital Marquee Sign Project – Project No. F2404.

EXECUTIVE SUMMARY:

On September 19, 2023, the City Council awarded a contract to Eagle Signs, Inc. in the amount of $85,413.68 and a contingency amount of $8,542 to cover the cost of unforeseen construction expenses for a total project funding cost of $93,955.68. The scope of work entailed the removal and replacement of the existing digital marquee with a new digital marquee sign. The work performed by Eagle Signs, Inc. has been completed and it is necessary to accept the replacement upgrades and authorize the City Clerk to file the Notice of Completion (Attachment A) for the Covina Performing Arts Center’s Digital Marquee Sign Project – Project No. F2404.

DISCUSSION:

This project consisted of the removal and disposal of an existing digital marquee sign and installation of a new digital marquee sign with the following criteria:
 Optec Infinity 6.667mm Pixel with 3-in-1 RGB Light Emitting Didoes (LED)  Installation of exterior shrouds and internal brackets  5-year warranty on all parts and cell modem
FISCAL IMPACT:

The authorized project allocation for replacement of the Covina Performing Arts Center’s Digital Marquee Sign Project – Project No. F2404 was $93,955.68 (Account No. 6400-3800-55900-F2404); funds were allocated from the Measure CC Fund Balance and transferred into the Covina Theater Fund budget for project completion.

The following table represents the final project summary:

Item Actual
Project Appropriations ($93,955.68)
Eagle Signs, Inc. – Contract Amount $85,413.68
Total (UNDER)/OVER BUDGET ($8,542)
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities

involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.

The project involves negligible or no expansion of an existing use.

Respectfully submitted,

ATTACHMENT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

NAME City of Covina
STREET ADDRESS 125 E College Street
CITY Covina

STATE CA
ZIP CODE 91723
SPACE ABOVE THIS LINE FOR RECORDER’S USE

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is The City of Covina .

3. The full address of the owner is 125 E College Street, Covina, CA 91723 .

4. The nature of the interest or estate of the owner is: In fee. (If other than Fee, strike “in fee” and insert, for example, “purchaser under contract of purchase”, or “Lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:

NAMES ADDRESSES

6. The full names and full addresses of all the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:

NAMES ADDRESSES

7. A work of improvement on the property hereinafter described was completed on:

December 20,
2023 . The work done was:

Covina Performing Arts Center’s Digital Marquee Sign Project

8. The names of the contractor, if any, for such work improvement was:

Eagle Signs, Inc. September 19, 2023
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows: Covina Performing Arts Center’s Digital Marquee Sign Project

10. The street address of said property is 104 N. Citrus Ave, Covina, CA 91723 (If no street address has been officially signed, insert “None”.) Dated January 16, 2024
Fabian Velez, Deputy City Clerk, City of Covina

VERIFICATION
I, the undersigned, say: I am the City Engineer The declarant of the foregoing Notice of Completion; (President of, Manager of, Partner of, Owner of)
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on January 16 , 2024 at Covina , California .
(Personal signature of the individual of the individual who is swearing that the contents of the Notice of Completion are true.)

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.g
Meeting: January 16, 2024
Title: Memorandum of Understanding (MOU) between the City of Covina and the City of West Covina for the Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director of Public Works/City Engineer Recommendation: 1. Approve the Memorandum of Understanding (MOU) between the City of Covina and the City of West Covina for the Traffic Signals Improvement Project – Lark Ellen Avenue/Badillo Street; and

2. Authorize the City Manager or his/her designee to execute any necessary amendments to the MOU.

EXECUTIVE SUMMARY:

The City of Covina and the City of West Covina have collaborated on various projects in the past with mutual benefits to both cities. Recently, the cities completed the Citrus Avenue Rehabilitation Project and the Workman Avenue Street Rehabilitation Project with successful outcomes for both cities. Most recently, the cities are jointly working to approve a Memorandum of Understanding that aims to establish parameters for the Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street.

On November 7, 2023, the City of West Covina approved the consideration of a Memorandum of Understanding (MOU) with the City of Covina for Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street.

This project is one of 10 project locations that the City of West Covina identified where the traffic signal system requires an upgrade to new standards in order to improve vehicle and pedestrian safety. Improvements are slated to include new traffic signal heads, pedestrian countdown head displays, pedestrian push buttons, installation of left turn phasing (protected left turn) at applicable locations, new signal poles, mast arms, pedestrian accessibility (ADA) improvements including curb ramps, signage, striping and related improvements.

DISCUSSION:

The intersection of Lark Ellen Avenue and Badillo Street is a shared intersection between the City of Covina and the City of West Covina. In order to proceed with proposed improvements at the shared intersection, the cities have collaborated to prepare a MOU to be executed between the two agencies for proposed improvements at said intersection. Per the MOU and in conformance with grants requirements for the City of West Covina, the City of West Covina will be the Lead Agency to design and construct the proposed improvements. The City of Covina will continue to maintain the intersection in accordance with obligations memorialized in the MOU, as noted in Attachment A.

FISCAL IMPACT:

All costs associated with the design and the construction of the Traffic Signal Improvements Project – Lark Ellen Avenue and Badillo Street, including actual construction costs and ancillary costs, shall be paid by the City of West Covina through Highway Safety Improvement Program (HSIP) grant funds. In the event HSIP grant funds are not available to cover the entire cost of completing the Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street, the cities will equally bear any additional costs incurred to complete the project.

Additionally, the City of Covina will waive all permit fees for work related to the construction of the Traffic Signal Improvements Project – Lark Ellen Avenue/Badillo Street within Covina city limits. Furthermore, ongoing

maintenance and operation services for the traffic signal to ensure proper operation and maintenance services will be the responsibility of the City of Covina during its useful life in the City of Covina’s jurisdiction. The costs associated with operation and maintenance for the traffic signal are within the Public Works Department, Gas Tax-Streets-Traffic Signal System budget (account no. 2300-2200-52418) and will be included in future budgets for the useful life of the traffic signal.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.

The project involves negligible or no expansion of an existing use.

Respectfully submitted,

1 MOU – Lark Ellen and Badillo Traffic Signal Improvements

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF WEST COVINA AND THE CITY OF COVINA

FOR THE CONSTRUCTION OF TRAFFIC SIGNAL IMPROVEMENT FACILITIES

AT THE INTERSECTION OF LARK ELLEN AVENUE AND BADILLO STREET THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is entered into as of January 16, 2024 (“Effective Date”), between the CITY OF WEST COVINA, a municipal corporation in the State of California, hereinafter called “West Covina” and the CITY OF COVINA, a municipal corporation in the State of California, hereinafter called “Covina.” West Covina and Covina are sometimes referred to herein as “Party” and collectively as the “Parties” or “Cities.”

RECITALS

1. The State of California Department of Transportation (Caltrans) has allocated to West Covina grant funds through the Highway Safety Improvement Program (HSIP).

2. West Covina’s approved project through the HSIP includes traffic signal improvements throughout West Covina, including at the intersection of Lark Ellen Avenue and Badillo Street.

3. The intersection of Lark Ellen Avenue and Badillo Street is at or near the border shared by both Cities.

4. West Covina and Covina desire to have constructed the traffic signal improvements described in Exhibit “A,” attached hereto and incorporated herein by this reference (“Traffic Signal Improvements”).

5. The Parties desire that West Covina, and not Covina, shall have the responsibility and express authority and permission to construct or cause to be constructed all the Traffic Signal Improvements.

6. West Covina desires to pay for the design and construction of the Traffic Signal Improvements through its allocation of HSIP grant funds, including the actual costs of the traffic signal design, traffic signal construction and the cost to administer the construction contract, as set forth in this MOU.

7. The Parties desire that the ongoing maintenance responsibilities and costs related to the Traffic Signal Improvements shall be the responsibility of the Covina, as set forth in this MOU.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the Parties hereby agree as follows:

1. CONSTRUCTION OF TRAFFIC SIGNAL IMPROVEMENTS. West Covina shall have the sole responsibility to design, construct and install and/or cause to be designed,

ATTACHMENT A
2 MOU – Lark Ellen and Badillo Traffic Signal Improvements constructed and installed all Traffic Signal Improvements. Covina hereby agrees to cooperate with West Covina, as may be necessary, and respond to reasonable inquiries and requests from West Covina throughout the design, construction and installation of the Traffic Signal Improvements. West Covina shall obtain Covina’s approval of the design prior to construction. West Covina agrees to install the Traffic Signal Improvements as they are described in Exhibit A. In the event a modification to the proposed improvements becomes necessary due to changed conditions or later discovered conditions, West Covina shall obtain Covina’s approval of any modifications, which approval shall not be unreasonably withheld.

2. COST ALLOCATION OF CONSTRUCTION SERVICES. All costs associated with the design and the construction of the Traffic Signal Improvements, including actual costs of construction and all costs incurred by West Covina, shall be paid by West Covina through HSIP grant funds. The Parties acknowledge and agree that HSIP grant funds are funding the Traffic Signal Improvements. In the event HSIP grant funds are not available to cover the entire cost of completing the Traffic Signal Improvements, the Cities agree to share equally in the costs of completing the Traffic Signal Improvements. In such event, the Parties agree to collaborate in good faith to amend this Agreement to reflect their respective costs.

3. PERMIT FEES. Covina shall waive all permit fees for work related to the construction of the Traffic Signal Improvements within Covina city limits.

4. MAINTENANCE. Covina shall perform and pay the cost of all operation and maintenance services, as necessary, for the proper operation, maintenance and repair of the Traffic Signal Improvements during their useful life.

5. INDEMNITY. Covina and West Covina both mutually agree to indemnify, defend and hold harmless each other and their respective officials, officers, agents, volunteers, servants and employees from any and all claims, demands, liabilities, debts, damages, suits, losses, actions and causes of action, of whatever kind, nature or sort, including, but not by way of limitation, wrongful death, personal injury or damage to property, the expenses of the defense of said parties and the payment of attorneys’ fees in any such claim or action, occurring or resulting, in any way, from the actual or alleged negligent acts or omissions or willful misconduct of either Party arising out of the performance of services by either Party, or their officials, officers, agents, volunteers, servants and employees, in connection with the performance of this MOU.

West Covina shall require the construction contractor and any other consultant or contractor (collectively “Traffic Signal Improvement Professionals”) hired after execution of this MOU to construct or otherwise complete work related to the Traffic Signal Improvements to indemnify, defend, and hold harmless Covina to the same extent as the Traffic Signal Improvement Professionals are required to indemnify, defend, and hold harmless West Covina. West Covina shall further require that the Traffic Signal Improvement Professionals maintain sufficient insurance coverage for the services

3 MOU – Lark Ellen and Badillo Traffic Signal Improvements provided and name West Covina and Covina as additionally insured parties for the Traffic Signal Improvements.

The indemnification obligations contained in this Section shall survive any expiration or termination of this MOU.

6. TERM. This MOU shall be deemed to have become effective on the Effective Date and shall expire on the completion and acceptance of the Traffic Signal Improvements, unless earlier terminated upon mutual agreement of the Parties. Notwithstanding the foregoing, Covina’s maintenance obligations shall survive the expiration of this Agreement.

7. ENFORCEMENT AND COSTS. In the event that either Party institutes any action to enforce the terms of this MOU, the prevailing Party shall be entitled to costs and reasonable attorneys’ fees from the other Party.

8. NOTICE. Any notice required or permitted to be sent to each Party shall be sent by regular mail, addressed as follows:

City of West Covina
1444 West Garvey Avenue South
West Covina, CA 91790
Attn: City Manager
City of Covina
125 E College St.

Covina, CA 91723
Attn: City Manager

9. GOVERNING LAW/VENUE. This MOU shall be governed by the laws of the State of California. Any action or proceeding between the Parties concerning the interpretation MOU shall be instituted and prosecuted in the Los Angeles County Superior Court, Pomona Courthouse.

10. AUTHORITY TO ENTER INTO AGREEMENT/AMENDMENTS. Each Party warrants that the individuals who have signed this MOU have the legal power, right, and authority enter into this MOU and to bind each respective Party. The City Managers of the Cities are authorized to enter into an amendment(s) or otherwise take action on behalf of the respective Party to implement this MOU. Only a writing executed by the City Manager of each of the Parties hereto or their respective successors and assigns may amend this MOU.

11. WAIVER. The delay or failure of either Party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this MOU shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of

4 MOU – Lark Ellen and Badillo Traffic Signal Improvements any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

12. SEVERABILITY. If any provision of this MOU is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this MOU, based upon the substantial benefit of the bargain for any Party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both Parties agree to substitute such provision(s) through good faith negotiations.

13. COUNTERPARTS. This MOU may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
[SIGNATURES ON FOLLOWING PAGE]

5 MOU – Lark Ellen and Badillo Traffic Signal Improvements IN WITNESS WHEREOF, the Parties hereto have caused this MOU to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF WEST COVINA, a Municipal
Corporation
Date By
Paulina Morales, Acting City Manager
APPROVED AS TO FORM: ATTEST:

Thomas P. Duarte, City Attorney Lisa Sherrick, Assistant City Clerk CITY OF COVINA, a Municipal Corporation
Date By
Chris Marcarello, City Manager
APPROVED AS TO FORM: ATTEST:

Candice K. Lee, City Attorney Andrew Aleman, City Clerk

EXHIBIT A

DESCRIPTION OF TRAFFIC SIGNAL IMPROVEMENTS
Lark Ellen and Badillo Street
Install protected left turn phasing for all directions, implement a leading pedestrian interval, provide high visibility striping of all crosswalks, upgrade signal mast arms to accommodate left turn signal heads and provide pedestrian count down signals all in an effort to improve pedestrian safety.

CITY OF WEST COVINA HSIP CYCLE 10 PROJECT 90% SUBMITTAL © SHEET OF 11 PRELIMINARY DO NOT CONSTRUCT CONSTRUCTION NOTES: (THIS SHEET ONLY) CONDUCTOR SCHEDULE TRAFFIC SIGNAL IMPROVEMENTS AT LARK ELLEN AVENUE AND BADILLO STREET 6 STREET AVENUE LARK ELLEN BADILLO ←←←←←←←←

CITY OF

WEST COVINA COUNTY OF LOS ANGELES CITY OF COVINA

CITY OF
COVINA ADDITIVE AND DEDUCTIVE ALTERNATIVE BID: Page 67 of 212

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.h
Meeting: January 16, 2024
Title: Adoption of Ordinances 23-12 and 23-13
Presented by: Brian K. Lee, Community Development Director Recommendation: 1. Adopt Ordinance 23-12 12 entitled, “An Ordinance of the City Council of the City of Covina, California, adopting Zone Change (ZCH) 22-7, amending the official zoning map of the city of Covina by changing the zone designation from commercial highway (C-4) zone to “Covina Village Specific Plan (CVSP) designation, with two (2) planning areas: CVSP planning area 1 - (Townhome Residential) and CVSP planning area 2 - (commercial);” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001- 016 and 8421-001-061)”; and

2. Adopt Ordinance 23-13 entitled “An Ordinance of the City Council of the City of Covina, California, approving Development Agreement (DA), pursuant to Government Code Section 65864 et. seq., a development agreement between the city of Covina and PKL, LLC;” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001- 016 and 8421-001-061)”.

EXECUTIVE SUMMARY:

Ordinance 23-12 (Attachment A) and Ordinance 23-13 (Attachment B) were approved at introduction by a 4-0-1 vote of the City Council at the December 19, 2023, City Council Meeting.

DISCUSSION:

It is recommended that City Council adopt on second reading Ordinance 23-12 entitled, “An Ordinance of the City Council of the City of Covina, California, adopting Zone Change (ZCH) 22-7, amending the official zoning map of the city of Covina by changing the zone designation from commercial highway (C-4) zone to “Covina Village Specific Plan (CVSP) designation, with two (2) planning areas: CVSP planning area 1 - (Townhome Residential) and CVSP planning area 2 - (commercial);” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001-016 and 8421- 001-061)” and Ordinance 23-13 entitled “An Ordinance of the City Council of the City of Covina, California, approving Development Agreement (DA), pursuant to Government Code Section 65864 et. seq., a development agreement between the city of Covina and PKL, LLC;” for the proposed Covina Village Mixed use development on an approximately 8.0-acre site generally located at 1000 n. Azusa Avenue (APNS 8421-001-016 and 8421- 001-061)”.

FISCAL IMPACT:

There is no fiscal impact for a second reading and adoption of an ordinance.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
ORDINANCE 23-12

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING ZONE CHANGE (ZCH) 22-7, AMENDING

THE OFFICIAL ZONING MAP OF THE CITY OF COVINA BY

CHANGING THE ZONE DESIGNATION FROM COMMERCIAL
HIGHWAY (C-4) ZONE TO “COVINA VILLAGE SPECIFIC PLAN
(CVSP) DESIGNATION, WITH TWO (2) PLANNING AREAS: CVSP
PLANNING AREA 1 - (TOWNHOME RESIDENTIAL) AND CVSP
PLANNING AREA 2 - (COMMERCIAL);” FOR THE PROPOSED

COVINA VILLAGE MIXED USE DEVELOPMENT ON AN
APPROXIMATELY 8.0-ACRE SITE GENERALLY LOCATED AT 1000 N.

AZUSA AVENUE (APNs 8421-001-016 AND 8421-001-061)
WHEREAS, PKL, LLC and Melia Homes, LLC have an equitable interest in the real properties that currently includes two (2) parcels: 1000 N. Azusa Avenue, formerly Albertsons Grocery Store, APNs: 8421-001-016 and 8421-001-061, with a combined total of approximately

8.0 acres, designated for the development of multi-family residential and commercial uses; and WHEREAS, in December 2022, City of Covina (“City” or “COVINA”), Melia Homes LLC and, PKL, LLC have been working to consider developing the Project Site into the Covina Village Mixed-Use Development, which includes a Specific Plan that would divide the Project site into two (2) Planning Areas and guide infill redevelopment of an approximately 8.0-acre site. The proposed Specific Plan would replace the existing Commercial Highway (C-4) zoning district with Covina Village Specific Plan (CVSP) designations with new residential land uses permitted under CVSP Townhome Residential - Planning Area 1, and maintain the existing commercial land uses that are permitted by the current zoning designations to under CVSP Commercial - Planning Area 2 designations. In addition to the Covina Village Specific Plan, the proposed Project includes the development of the plan area requesting approval of a Vesting Tentative Tract Map, Vesting Tentative Parcel Map and Major Site Plan Review to allow the construction and operation of a mixed-use development that includes the development of 97 “for sale” multi-family residential units, of which 17 units will be live/work units, within 20 three-story buildings in Planning Area 1 and, the development of three (3) commercial pads for a, 3,596 square-foot Automated Self Service Car Wash (Pad 1), a 950 square-foot drive-through Dutch Bros. Coffee Shop (Pad 2) and, a 3,500 square-foot drive-through restaurant (Pad 3 – TBD) in Planning Area 2; and WHEREAS, the Project necessitates the following land use discretionary entitlements:
a. General Plan Amendment (GPA) 22-1, to amend the Covina General Plan Land Use Map changing the land use designations from General Commercial (GC) to “Covina Village Specific Plan” (CVSP).
b. Specific Plan (SP) 22-1, to establish custom development standards, corresponding to the proposed “Covina Village Specific Plan (CVSP)” with 5.1-acres designated for “CVSP Planning Area 1 – Townhome Residential”, and 2.8-acres designed for “CVSP Planning Area 2 - Commercial.”

Ordinance 23-12 Page 2 of 8
c. Zone Change (ZCH) 22-7, to amend the Official Zoning Map changing the zoning designation for an 8.0-acre project site from the existing Commercial Highway (C-4) Zone to the “Covina Village Specific Plan (CVSP)” Planning Areas:
 Planning Area 1 - CVSP Townhome Residential, will allow for: (a) 80 attached townhomes at market rate for-sale; and (b) 17 live/work attached townhome units with each being single dwelling units consisting of both commercial/office and a residential component that is occupied by the same resident. Total combined units will be 97 townhomes.
 Planning Area 2 - Commercial, will allow for three commercial pads to accommodate future commercial uses with drive-through capabilities. Anticipated uses to be served by these pad areas include a self-service drive-through mechanical car wash and self-serve vacuum areas (Quick Quack), a walk-up coffee shop with drive-through (Dutch Bros. Coffee) and, a restaurant with drive-through. d. Vesting Tentative Tract Map No. 82315, to reconfigure 5.1-acres for condominium purposes, to allow for the construction of 80 for-sale multi-family residential units and 17 live/work units (97 total units), within 20 three-story buildings, a pool and recreation area within the Covina Village Planning Area 1 - Townhome Residential 1, located at 1000 N. Azusa Avenue (APNs 8421-001-016 and 8421-001-061).
e. Vesting Tentative Parcel Map No. 84018, to subdivide 2.8-acres into three commercial parcels within the Covina Village Specific Plan (CVSP), Planning Area 2 - Commercial, located at 1000 N. Azusa Avenue (portions of APNs 8421-001-016 and 8421-001- 061).
f. Conditional Use Permit (CUP) 22-7, to allow for the development of Quick Quack Car Wash, a self-service mechanical carwash use (Pad 1) in Planning Area 2. g. Conditional Use Permit (CUP) 22-8, to allow for the development of a Dutch Bros. Coffee Shop with a drive-through (Pad 2) in Planning Area 2. h. Conditional Use Permit (CUP) 22-9, to allow for the development of a restaurant with a drive-through (Pad No. 3) in Planning Area 2.
i. Site Plan Review (SPR) 22-226, for the development of 97 “for sale” multi-family residential units, of which 17 units will be live/work units, within 20 three story buildings, in Planning Area 1, three commercial pads to accommodate future commercial uses with drivethrough capabilities within Planning Area 2, and associated site improvements. j. Development Agreement (DA), pursuant to Government Code Section 65864 et seq., a development agreement between the City of Covina and PKL, LLC, is required for the orderly development of the overall project, under the terms and conditions as set to forth in this agreement; and
WHEREAS, in 2020, a Draft Environmental Impact Report (“Draft EIR”) was prepared for the original project referred to as the “Covina Villas Project,” which consisted of a Mixed-Use

Ordinance 23-12 Page 3 of 8
Project for the development of sixty-one Single Family detached homes and a retail component consisting of four buildings, of which two would be designed to accommodate fast/food drivethrough businesses, and two for general retail/commercial tenants. A Notice of Completion (“NOC”) and a Notice of Availability (“NOA”) of the Draft EIR was published in the San Gabriel Valley Tribune and released for a 45-day public comment period beginning on August 27, 2020 and ending on October 12, 2020. However, the Cypress Villas Project EIR was not certified due to changes to the project scope; and
WHEREAS, the Project is considered a “project” as defined by the California Environmental Quality Act, Public Resources Code § 21000 et seq. (“CEQA”). Pursuant to the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, 14 Cal. Code Regs., § 15000, et seq., the City staff determined that a Draft Revised Environmental Impact Report (“REIR”) was necessary to evaluate the potential environmental effects of the Project; and WHEREAS, the City subsequently contracted for the independent preparation of a Draft Revised Environmental Impact Report (the Draft REIR) for the Project, including all necessary technical studies and reports in support of the Draft REIR; and WHEREAS, the Draft REIR identifies that the proposed project would result in no impact or less than significant impacts in the following environmental impact categories: Aesthetics, Air quality, Greenhouse Gas Emissions, Population and Housing, and Public services. With the incorporation of mitigation measures identified in the Draft REIR, the potentially significant impacts of the proposed project in the following categories would be reduced below a level of significance: noise, transportation and traffic, tribal cultural resources, and utilities and service system. A Cumulative Impact Analysis was also conducted in the following categories:

Aesthetics, Air Quality, Greenhouse Gas Emissions, Noise, Population and Housing, Public Services, Transportation and Traffic, Tribal Cultural Resources, Utilities and Services Systems, and determined no additional mitigation measures are required. Therefore, no significant and unmitigable impacts have been identified in the Draft REIR; and WHEREAS, the Notice of Completion and Availability of the Draft REIR was published in the San Gabriel Valley Tribune on August 3, 2023 and the Draft REIR was released for a 45- day public comment period beginning on August 3, 2023 and ending on September 18, 2023; and WHEREAS, on November 14, 2023, at a duly noticed public hearing as prescribed by law, the Planning Commission considered the proposed Project and any comments received prior to or at the public hearing, at which time the City staff presented its report, and interested persons had an opportunity to and did testify either in support or in opposition to the proposed Project and the Draft REIR. Following consideration of the entire record of information received at the public hearing and due consideration of the proposed Project, the Planning Commission adopted Resolution No. 23-025 PC recommending that the City Council certify the REIR, make appropriate environmental findings, and adopt a Mitigation Monitoring and Reporting Program for the Project; and
WHEREAS, following consideration of the entire record of information received at the public hearing, and due consideration of the proposed Project, the Planning Commission adopted Resolution No. 2023-026 PC recommending that the City Council approve General Plan Amendment (GPA) 22-1, Specific Plan (SP) 22-1, Zone Change (ZCH) 22-7, Vesting Tentative Tract Map 82315, Vesting Tentative Parcel Map 84018, Conditional Use Permit No’s (CUP 22-

Ordinance 23-12 Page 4 of 8
7), (CUP 22-8), and (CUP 22-9), Site Plan Review (SPR) 22-226, and a Development Agreement; and
WHEREAS, on December 19, 2023, the City Council of the City of Covina considered the Project, the REIR and the Mitigation Monitoring and Reporting Program at a duly noticed public hearing at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the Project and the REIR and the Mitigation Monitoring and Reporting Program prior to and at the public hearing; and WHEREAS, following consideration of the entire record of information received at the public hearing, the City Council found that there is not substantial evidence that the Project will have a significant effect upon the environment and adopted Resolution CC 2023-119 REIR, adopting a Mitigation Monitoring and Reporting Program and adopting findings pursuant to CEQA. Resolution CC 2023-119 and the findings therein are hereby incorporated by this reference as set forth in full; and
WHEREAS, on December 19, 2023, the City Council of the City of Covina held a duly noticed public hearing to consider the Project including General Plan Amendment (GPA) 22-1, Specific Plan (SP) 22-1, Zone Change (ZCH) 22-7, Vesting Tentative Tract Map 82315, Tentative Parcel Map 84018, Conditional Use Permit No’s (CUP 22-7), CUP 22-8), and (CUP 22-9), Site Plan Review (SPR) 22-226, and a Development Agreement, at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the Project prior to and at the public hearing; and
WHEREAS, all legal prerequisites prior to adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The forgoing recitals are true and correct and are incorporated herein and made an operative part of this Resolution.

SECTION 2. After giving full consideration to all evidence presented at the public hearing, both oral and written, and after being fully informed, said City Council does hereby find and decide that the ZONE CHANGE (ZCH) 22-7 and Covina Village Specific Plan (SP) 22-1 is consistent with the public interest and with the City’s General Plan for the following reasons:
a. The establishment of the Specific Plan is consistent with the General Plan for the City of Covina and with all applicable requirements of State law and other ordinances of the City. The Specific Plan will allow for the proposed infill redevelopment of an approximately 8.0-acre site and divide the site into two Planning Area designations for the development of the following:
 Development of 97 “for sale” multi-family residential units within 20 threestory buildings in Planning Area 1; and  Development of three commercial pads to accommodate future commercial

Ordinance 23-12 Page 5 of 8
uses with drive-through capabilities. Anticipated uses to be served by these pad areas include a self-service drive-through mechanical car wash and selfserve vacuum areas (Quick Quack), a walk-up coffee shop with drive-through (Dutch Bros. Coffee) and, a restaurant pad with drive-through. b. Through the establishment of the Specific Plan and with the Zone Change, the Project site will provide additional multi-family residential and commercial uses to the site.

The proposed SP land use designation would provide specific development standards and architectural guidelines for site compatibility with the existing commercial and residential buildings surrounding the development. The proposed Project land use designation would not result in a land use inconsistency. c. The proposed Project would redevelop the site pursuant to the proposed Specific Plan that provides specific development criteria to ensure the new development is consistent with architectural compatibility on the site, provides sufficient parking, and adequate open space, which would further community goals, objectives, and policies. Thus, the proposed Project is consistent with Land Use Element Policy

1.1.1. d. The Project would provide new commercial space and multi-family residences that would accommodate growth and serve existing and future residents, workers, and shoppers. Thus, the proposed Project is consistent with Land Use Element Policy

1.1.4. e. The project would redevelop the site with similar residential and commercial land uses that would be consistent with existing land use patterns on and adjacent to the site. Thus, the proposed Project is consistent with Land Use Element Policy 1.1.5. f. The proposed Project involves adaptive office reuse of deteriorating and underutilized buildings. Further, the new housing and commercial/office uses provided by the Project would assist economic development within the City.

Therefore, the proposed Project is consistent with Land Use Element Policy 1.1.6. g. The proposed Project would develop the site with high-density residential uses within an area that already contains high-density residential. Thus, the proposed Project is consistent with Land Use Element Policy 1.2.9.
h. The proposed Project would revitalize the Covina Bowl for adaptive office reuse through private development. Thus, the proposed Project is consistent with Land Use Element Policy 1.3.17.
i. The proposed mixed-use development was designed to include setbacks, decorative 6-foot high walls, building orientation design, and landscape buffers between different on and adjacent to the site. The proposed design would shield the existing and proposed residential uses from noise, light, trash, visual and environmental disturbances, vehicular traffic, and other factors. Further, the project would be implemented pursuant to the requirements of the municipal code that provide for shielding of light. Thus, the proposed Project would be consistent with Land Use

Ordinance 23-12 Page 6 of 8
Element Policy 2.1.6.

SECTION 3. In consideration of the findings stated above, the City Council of the City of Covina does hereby approve Zone Change ZCH 22-7 and rezone the following described real property in the City of Covina, County of Los Angeles, California, subject to the conditions of approval attached as “Exhibit “A” to this Ordinance. as follows:
a. Assessor’s Parcel Map numbers 8421-001-016 and 8421-001-061, are rezoned from “C-4 Commercial Highway” to “Covina Village Specific Plan (CVSP) Planning Area 1” for 5.1 acres of the Project site generally located at the eastern larger portion of the parcel and generally bounded by Cypress Street and Azusa Avenue; and
b. Assessor’s Parcel Map numbers 8421-001-016 and 8421-001-061, are rezoned from “C-4 Commercial Highway” to “Covina Village Specific Plan (CVSP) Planning Area 2” for 2.8 acres of the Project site generally located at the western larger portion of the parcel and generally bounded by Azusa Avenue.

SECTION 4. Zoning Map Amendment. Based upon the findings contained in Section 2 of this Ordinance, the City Council hereby amends the Official Zoning Map of the City of Covina to change the zoning classification for the properties located at 1000 N. Azusa Avenue (APNs 8421-001-016 and 8421-001-061), changing the zone designations from “Commercial Highway (C-4) zoning to “Covina Village Specific Plan (CVSP) designations, with two (2) Planning Areas:

Planning Area 1 - (Residential) and Planning Area 2 - (Commercial );” as shown in Exhibit “C” and is incorporated herein by this reference as though set forth in full.

SECTION 5. Consistency with General Plan. On December 19, 2023, the City Council adopted Resolution No. CC 2023-120 which Resolution amended the Land Use Map of the Covina General Plan to change the land use designations from the General Commercial (GC) designation to the “Covina Village Specific Plan (CVSP)”, with two (2) Planning Areas, approximately 8.0 acres. The proposed change in land use designation will accommodate the proposed Covina Village Mixed Use Development. Therefore, the foregoing Specific Plan outlined in this Resolution is consistent with the goals and polices of the General Plan for the City of Covina.

SECTION 6. City Manager Authorization. The City manager is hereby authorized and directed to take all steps necessary to implement the General Plan related amendments described herein.

SECTION 7. The documents and materials that constitute the record of proceedings on which these findings and this Resolution are based are located at the City Clerk’s office located at 125 E. College Street, Covina, CA 91723. The custodian of these records is the City Clerk.

SECTION 8. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The People of the City of Covina hereby declare that they would have adopted this ordinance and each section, sentence, clause or phrase thereof,

Ordinance 23-12 Page 7 of 8
irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 9. Effective Date. This Resolution shall be effective upon the effective date of:
1) Ordinance 23-12, entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING ZONE CHANGE (ZCH)22-7,

AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF COVINA BY CHANGING THE ZONE DESIGNATION FROM COMMERCIAL HIGHWAY (C4) ZONE TO “COVINA VILLAGE SPECIFIC PLAN (CVSP) DESIGNATION, WITH TWO (2) PLANNING AREAS: CVSP PLANNING AREA 1 - (TOWNHOME RESIDENTIAL) AND CVSP PLANNING AREA 2 - (COMMERCIAL);” FOR THE

PROPOSED COVINA VILLAGE MIXED USE DEVELOPMENT ON AN
APPROXIMATELY 8.0-ACRE SITE GENERALLY LOCATED AT 1000 N. AZUSA AVENUE (APNs 8421-001-016 AND 8421-001-061);
and
2) Ordinance 23-13, entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF COVINA, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT (DA), PURSUANT TO GOVERNMENT CODE SECTION 65864 ET SEQ., A

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF COVINA AND PKL, LLC;” FOR THE PROPOSED COVINA VILLAGE MIXED USE DEVELOPMENT ON AN APPROXIMATELY 8.0-ACRE SITE GENERALLY LOCATED AT 1000 N.

AZUSA AVENUE (APNS 8421-001-016 AND 8421-001-061).

SECTION 10. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary of thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Covina.

SECTION 11. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall enter the same in the Book of Original Ordinances.

PASSED, APPROVED and ADOPTED this 16th day of January, 2024.

City Council of Covina, California
BY:

WALTER ALLEN, III, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

Ordinance 23-12 Page 8 of 8
APPROVED AS TO FORM:

____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 23-12 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 16th day of January, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

Ordinance 23
-12 Exhibit A

ATTACHMENT B
ORDINANCE 23-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

COVINA, CALIFORNIA, APPROVING DEVELOPMENT

AGREEMENT (DA), PURSUANT TO GOVERNMENT CODE SECTION
65864 ET. SEQ., A DEVELOPMENT AGREEMENT BETWEEN THE
CITY OF COVINA AND PKL, LLC;” FOR THE PROPOSED COVINA

VILLAGE MIXED USE DEVELOPMENT ON AN APPROXIMATELY

8.0-ACRE SITE GENERALLY LOCATED AT 1000 N. AZUSA AVENUE (APNS 8421-001-016 AND 8421-001-061)
WHEREAS, PKL, LLC and Melia Homes, LLC have an equitable interest in the real properties that currently includes two (2) parcels: 1000 N. Azusa Avenue, formerly Albertsons Grocery Store, APNs: 8421-001-016 and 8421-001-061, with a combined total of approximately

8.0 acres, designated for the development of multi-family residential and commercial uses; and WHEREAS, in December 2022, City of Covina (“City” or “COVINA”), Melia Homes LLC and, PKL, LLC have been working to consider developing the Project Site into the Covina Village Mixed-Use Development, which includes a Specific Plan that would divide the Project site into two (2) Planning Areas and guide infill redevelopment of an approximately 8.0-acre site. The proposed Specific Plan would replace the existing Commercial Highway (C-4) zoning district with Covina Village Specific Plan (CVSP) designations with new residential land uses permitted under CVSP Townhome Residential - Planning Area 1, and maintain the existing commercial land uses that are permitted by the current zoning designations to under CVSP Commercial - Planning Area 2 designations. In addition to the Covina Village Specific Plan, the proposed Project includes the development of the plan area requesting approval of a Vesting Tentative Tract Map, Vesting Tentative Parcel Map and Major Site Plan Review to allow the construction and operation of a mixed-use development that includes the development of 97 “for sale” multi-family residential units, of which 17 units will be live/work units, within 20 three-story buildings in Planning Area 1 and, the development of three (3) commercial pads for a, 3,596 square-foot Automated Self Service Car Wash (Pad 1), a 950 square-foot drive-through Dutch Bros. Coffee Shop (Pad 2) and, a 3,500 square-foot drive-through restaurant (Pad 3 – TBD) in Planning Area 2; and WHEREAS, the Project necessitates the following land use discretionary entitlements:
a. General Plan Amendment (GPA) 22-1, to amend the Covina General Plan Land Use Map changing the land use designations from General Commercial (GC) to “Covina Village Specific Plan” (CVSP).
b. Specific Plan (SP) 22-1, to establish custom development standards, corresponding to the proposed “Covina Village Specific Plan (CVSP)” with 5.1-acres designated for “CVSP Planning Area 1 – Townhome Residential”, and 2.8-acres designed for “CVSP Planning Area 2 - Commercial.”
c. Zone Change (ZCH) 22-7, to amend the Official Zoning Map changing the zoning designation for an 8.0-acre project site from the existing Commercial Highway (C4) Zone to the “Covina Village Specific Plan (CVSP)” Planning Areas:

Ordinance 23-13 Page 2 of 7
 Planning Area 1 - CVSP Townhome Residential, will allow for: (a) 80 attached townhomes at market rate for-sale; and (b) 17 live/work attached townhome units with each being single dwelling units consisting of both commercial/office and a residential component that is occupied by the same resident. Total combined units will be 97 townhomes.
 Planning Area 2 - Commercial, will allow for three commercial pads to accommodate future commercial uses with drive-through capabilities.

Anticipated uses to be served by these pad areas include a self-service drivethrough mechanical car wash and self-serve vacuum areas (Quick Quack), a walk-up coffee shop with drive-through (Dutch Bros. Coffee) and, a restaurant with drive-through.
d. Vesting Tentative Tract Map No. 82315, to reconfigure 5.1-acres for condominium purposes, to allow for the construction of 80 for-sale multi-family residential units and 17 live/work units (97 total units), within 20 three-story buildings, a pool and recreation area within the Covina Village Planning Area 1 - Townhome Residential 1, located at 1000 N. Azusa Avenue (APNs 8421-001-016 and 8421-001-061). e. Vesting Tentative Parcel Map No. 84018, to subdivide 2.8-acres into three commercial parcels within the Covina Village Specific Plan (CVSP), Planning Area 2 - Commercial, located at 1000 N. Azusa Avenue (portions of APNs 8421- 001-016 and 8421-001-061).
f. Conditional Use Permit (CUP) 22-7, to allow for the development of Quick Quack Car Wash, a self-service mechanical carwash use (Pad 1) in Planning Area 2. g. Conditional Use Permit (CUP) 22-8, to allow for the development of a Dutch Bros.

Coffee Shop with a drive-through (Pad 2) in Planning Area 2. h. Conditional Use Permit (CUP) 22-9, to allow for the development of a restaurant with a drive-through (Pad No. 3) in Planning Area 2.
i. Site Plan Review (SPR) 22-226, for the development of 97 “for sale” multi-family residential units, of which 17 units will be live/work units, within 20 three story buildings, in Planning Area 1, three commercial pads to accommodate future commercial uses with drive-through capabilities within Planning Area 2, and associated site improvements.
j. Development Agreement (DA), pursuant to Government Code Section 65864 et seq., a development agreement between the City of Covina and PKL, LLC, is required for the orderly development of the overall project, under the terms and conditions as set to forth in this agreement; and
WHEREAS, in 2020, a Draft Environmental Impact Report (“Draft EIR”) was prepared for the original project referred to as the “Covina Villas Project,” which consisted of a Mixed-Use Project for the development of sixty-one Single Family detached homes and a retail component

Ordinance 23-13 Page 3 of 7
consisting of four buildings, of which two would be designed to accommodate fast/food drivethrough businesses, and two for general retail/commercial tenants. A Notice of Completion (“NOC”) and a Notice of Availability (“NOA”) of the Draft EIR was published in the San Gabriel Valley Tribune and released for a 45-day public comment period beginning on August 27, 2020 and ending on October 12, 2020. However, the Cypress Villas Project EIR was not certified due to changes to the project scope; and
WHEREAS, the Project is considered a “project” as defined by the California Environmental Quality Act, Public Resources Code § 21000 et seq. (“CEQA”). Pursuant to the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, 14 Cal. Code Regs., § 15000, et seq., the City staff determined that a Draft Revised Environmental Impact Report (“REIR”) was necessary to evaluate the potential environmental effects of the Project; and WHEREAS, the City subsequently contracted for the independent preparation of a Draft Revised Environmental Impact Report (the Draft REIR) for the Project, including all necessary technical studies and reports in support of the Draft REIR; and WHEREAS, the Draft REIR identifies that the proposed project would result in no impact or less than significant impacts in the following environmental impact categories: Aesthetics, Air quality, Greenhouse Gas Emissions, Population and Housing, and Public services. With the incorporation of mitigation measures identified in the Draft REIR, the potentially significant impacts of the proposed project in the following categories would be reduced below a level of significance: noise, transportation and traffic, tribal cultural resources, and utilities and service system. A Cumulative Impact Analysis was also conducted in the following categories:

Aesthetics, Air Quality, Greenhouse Gas Emissions, Noise, Population and Housing, Public Services, Transportation and Traffic, Tribal Cultural Resources, Utilities and Services Systems, and determined no additional mitigation measures are required. Therefore, no significant and unmitigable impacts have been identified in the Draft REIR; and WHEREAS, the Notice of Completion and Availability of the Draft REIR was published in the San Gabriel Valley Tribune on August 3, 2023 and the Draft REIR was released for a 45- day public comment period beginning on August 3, 2023 and ending on September 18, 2023; and WHEREAS, on November 14, 2023, at a duly noticed public hearing as prescribed by law, the Planning Commission considered the proposed Project and any comments received prior to or at the public hearing, at which time the City staff presented its report, and interested persons had an opportunity to and did testify either in support or in opposition to the proposed Project and the Draft REIR. Following consideration of the entire record of information received at the public hearing and due consideration of the proposed Project, the Planning Commission adopted Resolution No. 23-025 PC recommending that the City Council certify the REIR, make appropriate environmental findings, and adopt a Mitigation Monitoring and Reporting Program for the Project; and
WHEREAS, following consideration of the entire record of information received at the public hearing, and due consideration of the proposed Project, the Planning Commission adopted Resolution No. 2023-026 PC recommending that the City Council approve General Plan Amendment (GPA) 22-1, Specific Plan (SP) 22-1, Zone Change (ZCH) 22-7, Vesting Tentative Tract Map 82315, Vesting Tentative Parcel Map 84018, Conditional Use Permit No’s (CUP 22-

Ordinance 23-13 Page 4 of 7
7), (CUP 22-8), and (CUP 22-9), Site Plan Review (SPR) 22-226, and a Development Agreement; and
WHEREAS, on December 19, 2023, the City Council of the City of Covina considered the Project, the REIR and the Mitigation Monitoring and Reporting Program at a duly noticed public hearing at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the Project and the REIR and the Mitigation Monitoring and Reporting Program prior to and at the public hearing; and WHEREAS, following consideration of the entire record of information received at the public hearing, the City Council found that there is not substantial evidence that the Project will have a significant effect upon the environment and adopted Resolution CC 2023-119 REIR, adopting a Mitigation Monitoring and Reporting Program and adopting findings pursuant to CEQA. Resolution CC 2023-119 and the findings therein are hereby incorporated by this reference as set forth in full; and
WHEREAS, on December 19, 2023, the City Council of the City of Covina held a duly noticed public hearing to consider the Project including General Plan Amendment (GPA) 22-1, Specific Plan (SP) 22-1, Zone Change (ZCH) 22-7, Vesting Tentative Tract Map 82315, Tentative Parcel Map 84018, Conditional Use Permit No’s (CUP 22-7), CUP 22-8), and (CUP 22-9), Site Plan Review (SPR) 22-226, and a Development Agreement, at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the Project prior to and at the public hearing; and
WHEREAS, all legal prerequisites prior to adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The forgoing recitals are true and correct and are incorporated herein and made an operative part of this Resolution.

SECTION 2. After giving full consideration to all evidence presented at the public hearing, both oral and written, and after being fully informed, said City Council does hereby find and decide that the Covina Village Specific Plan (SP) 22-1 is consistent with the public interest and with the City’s General Plan for the following reasons:
a. The establishment of the Specific Plan is consistent with the General Plan for the City of Covina and with all applicable requirements of State law and other ordinances of the City. The Specific Plan will allow for the proposed infill redevelopment of an approximately 8.0-acre site and divide the site into two Planning Area designations for the development of the following:
 Development of 97 “for sale” multi-family residential units within 20 threestory buildings in Planning Area 1; and

Ordinance 23-13 Page 5 of 7
 Development of three commercial pads to accommodate future commercial uses with drive-through capabilities. Anticipated uses to be served by these pad areas include a self-service drive-through mechanical car wash and selfserve vacuum areas (Quick Quack), a walk-up coffee shop with drive-through (Dutch Bros. Coffee) and, a restaurant pad with drive-through. b. Through the establishment of the Specific Plan and with the Zone Change, the Project site will provide additional multi-family residential and commercial uses to the site.

The proposed SP land use designation would provide specific development standards and architectural guidelines for site compatibility with the existing commercial and residential buildings surrounding the development. The proposed Project land use designation would not result in a land use inconsistency. c. The proposed Project would redevelop the site pursuant to the proposed Specific Plan that provides specific development criteria to ensure the new development is consistent with architectural compatibility on the site, provides sufficient parking, and adequate open space, which would further community goals, objectives, and policies. Thus, the proposed Project is consistent with Land Use Element Policy

1.1.1. d. The Project would provide new commercial space and multi-family residences that would accommodate growth and serve existing and future residents, workers, and shoppers. Thus, the proposed Project is consistent with Land Use Element Policy

1.1.4. e. The project would redevelop the site with similar residential and commercial land uses that would be consistent with existing land use patterns on and adjacent to the site. Thus, the proposed Project is consistent with Land Use Element Policy 1.1.5. f. The proposed Project involves adaptive office reuse of deteriorating and underutilized buildings. Further, the new housing and commercial/office uses provided by the Project would assist economic development within the City.

Therefore, the proposed Project is consistent with Land Use Element Policy 1.1.6. g. The proposed Project would develop the site with high-density residential uses within an area that already contains high-density residential. Thus, the proposed Project is consistent with Land Use Element Policy 1.2.9.
h. The proposed Project would revitalize the Covina Bowl for adaptive office reuse through private development. Thus, the proposed Project is consistent with Land Use Element Policy 1.3.17.
i. The proposed mixed-use development was designed to include setbacks, decorative 6-foot high walls, building orientation design, and landscape buffers between different on and adjacent to the site. The proposed design would shield the existing and proposed residential uses from noise, light, trash, visual and environmental disturbances, vehicular traffic, and other factors. Further, the project would be implemented pursuant to the requirements of the municipal code that provide for

Ordinance 23-13 Page 6 of 7
shielding of light. Thus, the proposed Project would be consistent with Land Use Element Policy 2.1.6.

SECTION 3. After giving full consideration to all evidence presented at the public hearing, and in consideration of the findings stated in Section 2 of this Resolution, the City Council of the City of Covina hereby approves the Development Agreement (DA), as set forth in Exhibit D.1 and is incorporated herein by this reference as though set forth in full.” SECTION 4. Consistency with General Plan. On December 19, 2023, the City Council adopted Resolution CC 2023-120 which Resolution amended the Land Use Map of the Covina General Plan to change the land use designations from the General Commercial (GC) designation to the “Covina Village Specific Plan (CVSP)”, with two (2) Planning Areas, approximately 8.0 acres. The proposed change in land use designation will accommodate the proposed Covina Village Mixed Use Development. Therefore, the foregoing Specific Plan outlined in this Resolution is consistent with the goals and polices of the General Plan for the City of Covina.

SECTION 5. City Manager Authorization. The City manager is hereby authorized and directed to take all steps necessary to implement the General Plan related amendments described herein.

SECTION 6. The documents and materials that constitute the record of proceedings on which these findings and this Resolution are based are located at the City Clerk’s office located at 125 E. College Street, Covina, CA 91723. The custodian of these records is the City Clerk.

SECTION 7. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The People of the City of Covina hereby declare that they would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 8. This Ordinance shall become effective within thirty (30) days after its adoption.

SECTION 9. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary of thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Covina.

SECTION 10. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall enter the same in the Book of Original Ordinances.

PASSED, APPROVED and ADOPTED this 16th day of January, 2024.

City Council of Covina, California

Ordinance 23-13 Page 7 of 7
BY:

WALTER ALLEN, III, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:

_________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 23-13 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 16th day of January, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

EXHIBIT D.1
Development Agreement (Attached)

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12923-0008\2898933v4.doc
RECORDING REQUESTED BY:

CITY OF COVINA
WHEN RECORDED MAIL TO:

City of Covina
Attention: City Clerk
125 East College Street
Covina, CA 91723
** DRAFT **
12/12/2023
APN 8421-001-016 and
APN 8421-001-061

SPACE ABOVE THIS LINE FOR
RECORDER’S USE

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF COVINA, A CALIFORNIA MUNICIPAL CORPORATION
AND

PKL INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made by and between THE CITY OF COVINA, a California municipal corporation (the “City”), on the one hand, and PKL INVESTMENTS, LLC, a California Limited Liability Company (“Developer”), on the other hand.

The City and Developer are individually referred to herein as a “Party” and collectively referred to as the “Parties.”

RECITALS
This Agreement is made and entered into with regard to the following facts, each of which is acknowledged as true and correct by the Parties to this Agreement.

A. Developer is the legal and beneficial owner of the real property located at 1000 North Azusa Avenue more fully described on Exhibit A hereto, in the City of Covina, which constitutes the “Property” (as hereafter further defined).

B. Developer desires to allow for the integrated redevelopment of the entire Property, through the adoption by the proposed Covina Village Covina Village Specific Plan (the “Covina Village Specific Plan”). The Property is being developed as part of the integrated development contemplated by the Covina Village Specific Plan, which is generally referred to as the “Project” (as hereafter further defined).

C. Developer has applied to the City for a development agreement, pursuant to the provisions of the Development Agreement Act (as hereafter defined) and other applicable laws.

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D. In anticipation of the Project’s development, Developer has made or will make application to the City (in its governmental capacity) for the following certain approvals, entitlements, findings and permits required for the development and construction of the Project, including, without limitation:
(1) an amendment to the Land Use Element of the Covina General Plan (GPA 22-1); (2) the Covina Village Specific Plan (SP 22-1);
(3) Zoning Code Text Amendment (ZCH 22-7);
(4) Zone Change and Zoning Map Amendment (ZCH 22-7 & GPA 22-1); (5) Lot Line Adjustment (LLA 23-2) to separate the commercial component to be developed by Developer on the Property from the residential component to be entitled and developed separately by Melia Homes, Inc. This Agreement only covers only the Property not the Melia Homes residential area. The recordation of Lot Line Adjustment (23-2) is necessary to enable Developer to convey the residential portion of the Project to Melia Homes. Therefore Developer shall process Lot Line Adjustment (23-2) with the City to allow such recordation. (6) Tentative Parcel Map No. 84018 (TPM 22-2) (the “Parcel Map”); (7) Major Site Plan Review (SPR 22-226);
(8) Conditional Use Permit (CUP 22-7) for an approximately 3,500 square foot drive-through restaurant, on a 34,242 square foot parcel to be occupied by any of the following on the proposed 0.786-acre parcel: Freddy’s Frozen Custard, Joe’s Crab Shack, The 908, Bossa Nova, Urban Spoon, Tender Greens, Vino E Cucina, The Nest, Habit, Baja Fresh, Shake Shack, Einstein Bros. Bagels, Western Bagel, Sura Korean BBQ & Tofu House, Crazy Rock’n Sushi, Vino E Cucina, Steak n Shake, Rally’s, Fat Burger, Five Guys, Sonic Drive-In, Firehouse Subs, Arby’s, King Taco, or Panera Bread;
(9) Conditional Use Permit (CUP 22-8) for an approximately 3,596 square foot drive-through Quick Quack Car Wash, on a proposed 58,430 square foot (1.34-acre) parcel; (10) Conditional Use Permit (CUP 22-9) for an approximately 950 square foot drive-through Dutch Bros Coffee Shop, on a proposed 29,584 square foot (0.7-acre) parcel; (11) the certification of an “EIR (as hereafter defined) with respect to the Project and the making of certain associated findings; and
(12) a Development Agreement under the Development Agreement Act.

These twelve (12) above-referenced items shall be collectively referred to as the “Project Approvals”.

E. The City Council has specifically considered the advantages and impacts of this Project upon the welfare of the City and believes that the Project will benefit the City.

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12923-0008\2898933v4.doc
F. This Agreement eliminates uncertainty in planning and provides for the orderly development of the Property in a manner consistent with the City’s Zoning Regulations (as hereafter defined), the Applicable Rules (as hereafter defined) and the General Plan (as hereafter defined).

G. To provide such certainty in planning and orderly development, the City desires, by this Agreement, to provide Developer with assurance that Developer can proceed with development of the Property with the uses, density and other land use characteristics specified in the Project Approvals.

H. To provide the City with assurances that the corresponding benefits associated with the a higher intensity of uses in this “Anchor Location” will be realized (1) at an exceptional level of quality and with the anticipated synergies to the area anticipated by the Project approved under the Covina Village Specific Plan (and related approvals), and (2) the projected future economic benefits to the City from, among other matters, generally applicable tax revenues and Public Benefit Contribution (as defined below) will be realized, the Developer is committing to proceed with the development of the Property pursuant to the terms of this Agreement and as set forth in the Project Approvals.

Developer desires to provide the City with assurances that it will (as further provided below) timely construct, equip and staff that portion of the Project located on the Property and open the same to the public, in the allocated densities of uses provided under the full build-out of that portion of the Project located on the Property as contemplated by the Covina Village Covina Village Specific Plan and at the initial level of quality generally described in the Covina Village Specific Plan and Project Approvals as further supplemented by the Minimum Development Standard (as hereafter defined) and other provisions in this Agreement. The foregoing includes, without limitation the completion and opening of the two drive-through restaurants without material reduction in size and in accordance with the design standards set forth in the Covina Village Covina Village Specific Plan, and having a quality of interior design, materials and finishes consistent with the high design standards of other restaurant locations occupied by any of the following, a Freddy’s Frozen Custard, Joe’s Crab Shack, The 908, Bossa Nova, Urban Spoon, Tender Greens, Vino E Cucina, The Nest, Habit, Baja Fresh, Shake Shack, Einstein Bros. Bagels, Western Bagel, Sura Korean BBQ & Tofu House, Crazy Rock’n Sushi, Vino E Cucina, Steak n Shake, Rally’s, Fat Burger, Five Guys, Sonic Drive-In, Firehouse Subs, Arby’s, King Taco, or Panera Bread, as more fully described herein in connection with the definition of the Minimum Development Standard below.

I. Neither Developer nor City would enter into this Agreement, or agree to provide the public benefits and improvements described herein, without the agreement that the Property can and will be developed, during the Term (as hereafter defined) of this Agreement, with the uses, density and other land use characteristics specified in the Project Approvals.

J. The City has determined that, as a result of the development of the Project in accordance with the Project Approvals and this Agreement, substantial benefits will accrue to the public, including but not limited to (i) redevelopment of an anchor location in the City; and (ii) increased City revenues from the payment of sales taxes, and other economic benefits from the Project.

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K. On ________, 202___, pursuant to the requirements of the Development Agreement Act, the City Council of the City of Covina (the “City Council”) conducted a hearing on Developer’s application for this Agreement.

L. The City Council has found and determined that this Agreement is consistent with the City’s General Plan (as amended) and all other plans, policies, rules and regulations applicable to the Project.

M. By Resolution No. 23-_____ adopted by the City Council on ___________, 202__, the City Council reviewed and certified, after making appropriate findings, the EIR (as hereafter defined) that contemplates this Agreement.

N. On _______________, 202__, the City Council adopted Ordinance No. ___________________ approving this Agreement, and such ordinance became effective on December __________.

AGREEMENT
NOW THEREFORE, pursuant to the authority contained in the Development Agreement Act, as it applies to the City, and in consideration of the mutual promises and covenants herein contained and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions. For all purposes of this Agreement, except as otherwise expressly provided herein, or unless the context of this Agreement otherwise requires, the following words and phrases shall be defined as is set forth below:
(a) “All or any portion of the Property” means the entire Property or any portion of the entire Property, including, without limitation, a subdivided parcel which is a portion thereof, any co-tenancy interest in all or any portion thereof and any condominium or air-space parcel from all or any portion of the Property.
(b) “Applicable Rules” means the rules, regulations, ordinances, resolutions, codes, guidelines, and officially adopted procedures and official policies of the City governing the use and development of real property, including, but not limited to, the City’s Zoning Regulations and building regulations, adopted as of the Effective Date. Among other matters, the Applicable Rules set forth and govern the permitted uses of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, parking requirements, setbacks, and development standards, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction guidelines, standards and specifications applicable to the development of the Property.
(c) “Building Permit” means a permit issued by the City pursuant to Title 14 of the Covina Municipal Code to authorize construction of a building or other structure. “Building Permit” shall not include a demolition permit, but shall include a foundation permit.

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(d) “Business Day” means any day other than a Saturday, Sunday or State of California or Federal holiday on which banks in the City are customarily closed. (e) “CEQA” means the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.), as it now exists or may hereafter be amended. (f) “Conditions of Approval” shall mean the conditions of approval imposed by the City upon the Project Approvals.
(g) “Commencement of Construction” shall mean the date of issuance of Building Permits for foundations for Phases 1 and 2 (as defined below) of the Property. (h) “Developer Fees” shall mean those fees established, adopted, or imposed by the City pursuant to Section 66000-66008, of the Government Code of the State of California or the California Subdivision Map Act to offset the impact of development on the City’s capital facilities.

Such fees may include impact fees, linkage fees, exactions, assessments, fair share charges, or other similar impact fees imposed by the City on or in connection with new development. Developer Fees do not mean or include Processing Fees.
(i) “Development Agreement” or “Agreement” means this Agreement. (j) “Development Agreement Act” means Article 2.5 of Chapter 4 of Division I of Title 7 (Sections 65864 through 65869.5) of the California Government Code (as the same may be amended and/or re-codified from time to time).
(k) “Discretionary Action(s)” or “Discretionary Approval(s)” means an action which requires the exercise of judgment, deliberation or discretion on the part of the City, including any board, agency, commission or department and any officer or employee thereof, in the process of approving or disapproving a particular activity, as distinguished from a Ministerial Permit or Ministerial Approval (as hereafter defined).
(l) “Effective Date” shall mean the date this fully executed Agreement shall mean the date Ordinance No. _____, the ordinance adopting this Development Agreement takes effect following its adoption by the City Council. Said date shall be inserted herein by the City Clerk:
___________, 2024.
(m) “EIR” shall mean the final Environmental Impact Report (SCH No. 2020110223) that addresses the Project and was prepared, circulated and certified in accordance with applicable law, including, without limitation, CEQA.
(n) “Force Majeure” means shall mean and include:
(i) Any delay(s) caused by an event beyond the reasonable control of the Party claiming the delay (and despite the good faith efforts of such Party and the lack of such Party’s fault) that may prevent the Party from fulfilling the obligations for which it seeks excuse including without limitation all of the following events to the extent that they may prevent the Party claiming delay from fulfilling the obligation from which it seeks to be excused: acts of God; riots; strikes; global pandemic; damage to work in progress by reason of fire, floods, earthquake or other casualties; war;

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or acts of terrorism; enactment of conflicting state or federal laws or regulations which may interfere with the performance of the subject obligation.
(ii) Force Majeure shall not include any delay attributable to economic hardships or conditions or financial wherewithal or to Developer’s obligations under Sections 6(a) through 6(c) of this Agreement.
(iii) If the impacts of two or more of such events shall occur during the same time period, no more than one day of delay shall be attributed to any day which is impacted by two or more such events.
(iv) If a Party believes that an event has occurred which would constitute a Force Majeure event as to an obligation or time period, the affected Party shall be required to give prompt written notice to the other Party of the commencement of the event and its anticipated impact, but in no event later than thirty (30) days after the occurrence of same and the affected Party will use commercially reasonable efforts to minimize the impact of the event and the duration of any associated delay in performance. If Developer fails to provide timely notice as required above, Developer shall not have the right to assert Force Majeure as to the occurrence for which it has failed to provide timely notice as required above. If the City disagrees with any asserted Force Majeure in a notice from the Developer, it shall give written objection to the Developer’s notice within thirty (30) days of the City’s receipt of the same. If the City fails to timely provide such written objection, the City shall not have the right to later assert that the event did not occur, but the City’s failure to object to Developer’s assertion that the event occurred shall not limit the City’s right to dispute the duration of the impact of that event.
(o) “General Plan” means the General Plan of the City, as it exists as of the Effective Date.
(p) “Minimum Development Standard” means with respect to the initial construction, opening and operations of the two restaurant uses on the Property contemplated by the Project Approvals, conformity with the design standards set forth in the Covina Village Specific Plan, and such quality of interior and exterior design, materials and finishes consistent with standards of commercial buildings occupied by any of the following, a Freddy’s Frozen Custard, Joe’s Crab Shack, The 908, Bossa Nova, Urban Spoon, Tender Greens, Vino E Cucina, The Nest, Habit, Baja Fresh, Shake Shack, Einstein Bros. Bagels, Western Bagel, Sura Korean BBQ & Tofu House, Crazy Rock’n Sushi, Vino E Cucina, Steak n Shake, Rally’s, Fat Burger, Five Guys, Sonic Drive-In, Firehouse Subs, Arby’s, King Taco, or Panera Bread.
(q) “Ministerial Permit(s),” or “Ministerial Approval(s)” means a permit or approval, including, but not limited to, building permits, demolition permits, foundation permits, grading permits, zone clearances, and certificates of occupancy, which requires the City, including any board, agency, commission or department or any officer or employee thereof, to determine whether there has been compliance with applicable rules, statutes, ordinances, conditions of approval, and/or regulations, as distinguished from an activity which is included in the definition of Discretionary Action or Discretionary Approval.

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(r) “Mortgage” means any mortgage, deed of trust, encumbrance, sale leaseback or other security interest encumbering all or any portion of the Property, whether now or hereafter existing, given by Developer for the purpose of securing funds to be used for financing or refinancing the Property or any portion thereof, financing or refinancing the construction of improvements thereon and/or any other expenditures reasonably necessary and appropriate to develop the Project. (s) “Mortgagee” means the holder of the beneficial interest under any Mortgage. (t) “Covina Village Specific Plan” shall be defined as set forth in Recital B. (u) “Owner” shall be defined as the Developer as of the Effective Date, and following any Transfer, the beneficial and legal owner(s) of the Property, collectively, from time to time.
(v) “Processing Fees” means all processing fees and charges required by the City that are applied uniformly to all construction or development related activity including, but not limited to, fees for land use applications, Building Permit applications, Building Permits, demolition permits, foundation permits, grading permits, hauling permits, encroachment permits, subdivision or parcel maps, lot line adjustments, street vacations, inspections, certificates of occupancy and plan check.

Processing Fees shall not mean or include Developer Fees. In addition, any and all fees payable under the current Applicable Rules shall be deemed to be included within the term “Processing Fees” and not to be included within the term “Developer Fees,” whether the same are payable upon issuance of a Building Permit, upon connection of a utility or upon issuance of a Certificate of Occupancy or other Ministerial Approval.
(w) “Project” means the development as described in the final EIR (as hereinafter defined), as modified by the Project Approvals.
(x) “Project Approvals” shall be defined as set forth in Recital D and shall include any Subsequent Project Approvals (as hereafter defined). (y) “Property” means the real property described in Exhibit A attached hereto. (z) “Public Benefit Contribution” means the payment from the Developer to the City pursuant to Section 10(d) of this Agreement, which payment may be used by the City for various public projects and programs.
(aa) “Reserved Powers” means the power and authority of the City to enact regulations and/or take Discretionary Action if the same is expressly found by the City to be necessary to protect residents of the City, those employed in the City, or visitors to the City, from a condition that is dangerous to public health or safety or if the same is required to comply with California or federal laws (whether enacted previous or subsequent to the Effective Date of this Agreement).

Reserved Powers also include the power and authority of the City to enact regulations, including without limitation, regulations of retail uses and parking, provided that such regulations do not impact the permitted density, height, or square footage of the Project permitted by the Covina Village Specific Plan.

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(bb) “Subsequent Land Use Regulations” means any change in or addition to the Applicable Rules adopted after the Effective Date of this Agreement, including, without limitation, any change in any applicable general plan or Covina Village Specific Plan, zoning, subdivision, or building regulation, including, without limitation, any such change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever by the Mayor, City Council, Planning Commission or any other board, agency, commission or department of the City, or any officer or employee thereof, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Project. (cc) “Subsequent Project Approvals” shall mean further Discretionary Actions or Discretionary Approvals, Building Permit, Ministerial Permits and Ministerial Approvals required to carry out the Project as approved on ________________, 202__, including, without limitation, any tentative subdivision map. Following adoption or approval, a Subsequent Project Approval shall become a Project Approval subject to this Agreement.
(dd) “Transfer” means any transaction that directly or indirectly conveys all or any portion of the Property, and which conveyance would be subject to, and not exempt from, documentary transfer tax pursuant to California Revenue and Taxation Code Sections 11911 through 11933, including Los Angeles County Documentary Transfer Tax (Los Angeles County Code, Chapter 4.60), as those taxes existed on the Effective Date of this Agreement. A transaction whereby the possession of all or any portion of the Property is transferred but the seller retains the title as security for the payment of the price shall be deemed a Transfer.
(ee) “Zoning Regulations” shall mean the official zoning regulations of the City adopted as of the Effective Date of this Agreement.

2. Recitals of Premises, Purpose and Intent.
(a) State Enabling Statute. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted the Development Agreement Act which authorizes any city to enter into binding development agreements establishing certain development rights in real property with persons having legal or equitable interests in such property. Section 65864 of the Development Agreement Act expressly provides as follows:
“The Legislature finds and declares that:
(a) The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and a commitment to comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public. (b) Assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to conditions of approval will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic cost of development.”

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Notwithstanding the foregoing, to ensure that the City remains responsive and accountable to its residents while pursuing the benefits of development agreements contemplated by the Legislature, the City accepts restraints on its police powers contained in development agreements only to the extent and for the duration required to achieve the mutual objectives of the Parties. (b) Development of the Property. The Developer intends to develop the Property as described in the Project Approvals and the final Building Permit plans submitted to the City, subject to the Applicable Rules, the Project Approvals, and the Conditions of Approval. The Parties hereby agree that, for the term of this Agreement, the permitted uses, the density and intensity of use, the maximum height and size of proposed buildings, parking requirements, setbacks, and development standards, provisions for reservation or dedication of land for public purposes and location of public improvements, and the design, improvement, construction and other guidelines, standards and specifications applicable to the development of the Property shall be those set forth in the Project Approvals, the Applicable Rules and this Agreement, including the Conditions of Approval.

3. Property Subject to Agreement. This Agreement shall apply only to the Property.

4. Application of Agreement. This Agreement shall apply to the development and use of the Property. Such development shall be in accordance with the Project Approvals as the same may lawfully be amended from time to time, other than by initiative, and this Agreement.

5. Term of Agreement. The term of this Agreement shall be five (5) years commencing on the Effective Date.

6. Construction Pursuant to Project Approvals; Construction Phases; Opening; Design. (a) Covenant to Construct, Open and Initially Operate to Minimum Development Standard. Subject to Developer’s extension rights by compliance with Section 6(d) below, Developer shall cause the restaurants to be located on Pad 2 and Pad 3, as identified in the Covina Village Specific Plan to be (1) constructed, equipped and furnished; and (2) to be opened for business to the public with all inventories and employees reasonably required for the opening and on-going operation of each element of the Project to be located on the Property, including without limitation the two restaurant uses and facilities ancillary thereto for a continuous period of not less than one hundred and eighty (180) days within two (2) years after the Effective Date of this Agreement. The foregoing (i) construction, equipment, furnishing and initial operation for such period of one hundred and eighty (180) days shall be substantially in accordance with the Covina Village Covina Village Specific Plan and (ii) such initial operation shall be in accordance with the Minimum Development Standard. (b) Construction Phases; Commencement of Construction of Improvements.

Construction on the Property shall occur in three phases in the following order: (1) Phase 1 shall consist of the construction of an approximately 950 square foot Dutch Bros Coffee drive-through restaurant on the proposed 0.679 acre parcel (identified as “Pad 2” in the Covina Village Covina Village Specific Plan); (2) Phase 2 shall consist of the construction of an approximately 3,500 square foot drive-through restaurant to be occupied by only a Freddy’s Frozen Custard, Joe’s Crab Shack, The 908, Bossa Nova, Urban Spoon, Tender Greens, Vino E Cucina, The Nest, Habit, Baja Fresh, Shake Shack, Einstein Bros. Bagels, Western Bagel, Sura Korean BBQ & Tofu House, Crazy Rock’n Sushi, Vino E Cucina, Steak n Shake, Rally’s, Fat Burger, Five Guys, Sonic Drive-In, Firehouse Subs, Arby’s, King Taco,

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or Panera Bread on the proposed 0.786 acre parcel (identified as “Pad 3” in the Covina Village Covina Village Specific Plan); and (3) Phase 3 shall consist of the construction of an approximately 58,430 square foot drive-through car wash on the proposed 1.341 acre site (identified as “Pad 1” in the Covina Village Covina Village Specific Plan). Subject to Developer’s extension rights by compliance with Section 6(d) below, Developer shall cause the Commencement of Construction of the Phase 1 and Phase 2 to occur no later than twelve (12) months from the Effective Date (“Commencement Deadline”). In no event shall building permits be issued for Phase 3 of the Property before vertical construction (framing) of Phase 1 and Phase 2 have commenced. (c) Completion of Construction of Improvements. Developer shall complete Phase 1 and Phase 2 of the Property (as evidenced by a Certificate of Occupancy for Phase 1 and Phase 2 of that portion of the Project located on the Property) and open the two drive-through restaurants for business to the public, as provided in Section 6(a) above, no later than two (2) years from the Effective Date (“Completion Deadline”). Building Permits for Phase 3 shall not be issued until vertical construction (framing) of Phase 1 and Phase 2 has commenced. (d) Permitted Extensions of Commencement and Completion Deadlines. During the Term of this Agreement Developer may, at its sole election, extend the Commencement Deadline and/or the Completion Deadline, for sixty (60) day periods, provided that any such extension by Developer shall be effective only upon the payment to the City of Fifty Thousand Dollars ($50,000.00) for each 60 day extension period; provided, however, that the maximum aggregate period for any extensions under this Section 6(d) shall not exceed a period of one (1) year. An extension of the Commencement or the Completion Deadline by Developer shall be effective only upon written notice by Developer provided to the City at least ten (10) days before the expiration of the Commencement or the Completion Deadline (as applicable, and including any previous extension) and a concurrent payment to the City of Fifty Thousand Dollars ($50,000.00) for each 60 day extension period. An extension of the Commencement Deadline shall likewise constitute the same extension of the Completion Deadline for the single $50,000 Commencement Deadline extension payment.

7. Permitted Uses; Density; Building Heights and Sizes; Required Dedications. (a) Covina Village Specific Plan Uses. The City and Developer hereby agree that the permitted uses of the Property, the density and intensity of such uses, the minimum and maximum heights and sizes of the buildings and improvements to be constructed on the Property, and the reservation and dedication of land for public purposes, if any, required in connection with the development of the Property shall be as set forth in and consistent with the Project Approvals, as they may be lawfully amended from time to time other than by initiative. Developer shall not cause or permit any use of the Property that is not permitted by the Project Approvals, and shall not cause or permit the construction of any building or improvement that exceeds the maximum density, building heights and/or building sizes set forth in or otherwise required by the Project Approvals, as they may be lawfully amended from time to time other than by initiative. (b) Anchor Use Contemplation; Minimum Development Standard. The intent and purposes of the approval of the higher densities permitted by the Covina Village Covina Village Specific Plan include the anchor role of the Project in the City. Accordingly, at any and all times after the 180-day period referred to in Section 6(a) that the portion of the Property is operated to include

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restaurants, the Owner shall cause the two restaurant portions of the Property to be operated in accordance with the Minimum Development Standard.

8. Developer’s Rights and Obligations; Relationship to Certain Other Agreements and Entitlements.
(a) Vested Rights. Subject to Section 9 below, Developer shall have and is hereby vested with the rights, during the Term of this Agreement, to develop the Property in accordance with this Agreement, the Covina Village Covina Village Specific Plan and related Project Approvals, as they may be lawfully amended by Developer from time to time, other than by initiative, all of which are hereby incorporated in this Agreement by reference. (b) Effect of Failure to Perform. Nothing contained in this Section 8 shall limit the terms of Section 10(g) above or of Section 12 of this Agreement.

9. Changes in Applicable Rules.
(a) Non-Application of Changes in Applicable Rules. The adoption of any Subsequent Land Use Regulations after the Effective Date of this Agreement, or any change in, or addition to, the Applicable Rules (other than changes in Processing Fees and taxes), including, without limitation, any changes in the General Plan or the Zoning Regulations (including any regulation relating to the timing, sequencing, or phasing of the Property or construction of all or any part of the Project located on the Property), and any changes in Developer Fees (which expression “changes in Developer Fees” includes under this Agreement new or additional Development Fees), adopted after the Effective Date of this Agreement, including, without limitation, any such change by means of ordinance, initiative, resolution, motion, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by any board, agency, commission or department of the City, or by the electorate, as the case may be, which would, absent this Agreement, otherwise be applicable to the Property shall not be applied to that portion of the Project located on the Property during the term of this Agreement unless such changes represent an exercise of the City’s Reserved Powers.

Notwithstanding the foregoing, if within three (3) years after the Effective Date, the Developer has not caused the Commencement of Construction to occur, the Property shall be subject to all changes in Developer Fees adopted by the City between the Effective Date and the occurrence of the Commencement of Construction of the portion of the Project on the Property. (b) Changes in Uniform Codes. Notwithstanding any provision of this Agreement to the contrary, development of the Project shall be subject to changes occurring from time to time in the provisions of the City’s building, fire, mechanical, plumbing, electrical regulations and similar regulations which are based on the recommendations of a multi-state professional organization and become applicable throughout the City, including, but not limited to, the California Building Code, and other similar or related uniform codes.
(c) Changes Mandated by Federal or California Laws or Regulations. Changes in, or additions to, the Applicable Rules adopted or made operative on or after the Effective Date shall apply to the Project, if such changes or additions are specifically mandated to be applied to developments such as the Project, irrespective of vested rights, by applicable California or federal laws or regulations, provided however that if the City or Developer believes that such a change or addition

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exists, that Party shall provide the other Party hereto with a copy of such California or federal law or regulation and a statement of the nature of its conflict with the provisions of the Applicable Rules and/or of this Agreement. The City’s determination as to the applicability of the change or addition to California or federal laws to the Project shall be final and conclusive; provided, however, that nothing in this Agreement shall deprive Developer of the rights possessed by any other property owner, absent vested rights, to judicially challenge the applicability of the change, the addition to California or federal laws to the Project, or the appropriateness of the application to the Project of the change or addition. (d) Changes in Processing Fees and Taxes Under Applicable Rules. The Project shall be subject to any increase in taxes and Processing Fees imposed by the City; provided that such a change is applied on a Citywide basis.

10. Developer’s Obligations.
(a) Conditions of Approval. Developer shall comply with the Conditions of Approval as they apply to the Property.
(b) Reimbursement of Approval Costs. No later than forty-five (45) days after the later of: (i) the date all parties have executed this Agreement (the “Execution Date”), or (ii) the date the City delivers to Developer an invoice of costs subject to reimbursement pursuant to this Section, Developer shall reimburse the City for all of its costs, to the extent that the Developer has not already advanced the same, to process the Project Approvals that apply to the Property and this Agreement, including, without limitation, legal, economic consulting and environmental processing costs related to the Project Approvals and this Agreement.
(c) Processing Fees and Taxes. Developer agrees to pay all taxes and Processing Fees, including City plan check fees, building inspection fees, and permit fees at the rate and amount in effect at the time the Processing Fee or tax is required to be paid. (d) Public Benefit Contribution. Developer shall pay to the City a Public Benefit Contribution of Six Hundred Thousand Dollars ($600,000) on or before May 1, 2024; provided that if Developer does not do so, the liquidated damages provisions of clause (g) below shall apply.

Concurrently with its execution and delivery of this Agreement, Developer shall deliver to the City a fully executed originals of (a) the promissory note in the form attached hereto as Exhibit B (“Note”) and (b) the deed of trust in the form attached hereto as Exhibit C, which must be duly acknowledged by a notary public (“Trust Deed”). The Note shall evidence, and the Trust Deed shall secure, the Developer’s obligation to pay the $800,000 of liquidated damages payable under clause (g) below.

The Trust Deed shall be recorded against the Property by a title company acceptable to City which shall issue to the City, at Developer’s cost, an ALTA Lenders Policy of Title Insurance with coverage in the amount of $800,000 insuring the City that the Trust Deed is a first lien on the Property and that all property taxes and assessments are paid current. Developer shall pay the cost of recording the Trust Deed. If Developer pays the Public Benefit Contribution by May 1, 2024, or satisfies its obligations under such that liquidated damages could no longer be payable under Section 10(g) below, then the City shall promptly, upon request by the Developer, execute, acknowledge and deliver to the Developer a full reconveyance of the Trust Deed to be recorded releasing the Trust Deed from the Property (“Reconveyance”). The City shall executed reasonable recordable nondisturbance agreements in favor of tenants under leases permitted by this Agreement, such that such tenants’ leases

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will not be extinguished upon any foreclosure of the Trust Deed. For avoidance of doubt, if Developer pays the Public Benefit Contribution by May 1, 2024, the Note shall terminate and be returned to Developer, the Trust Deed shall be reconveyed and the provisions of Section 10(g) below shall terminate and be of no further force or effect.
(e) Potential Refund of Public Benefit Contribution. Upon Developer’s written request, the City shall refund the Public Benefit Contribution (to the extent previously paid) or if not previously paid, deliver the Reconveyance to the Developer only if the following have occurred: (i) the entry of a final judgment or issuance of a final order or discharge of a writ, after all appeals have been exhausted, directed to the City as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, the Covina Village Covina Village Specific Plan or any other Project Approvals; or (ii) Developer satisfies its obligations under Sections 6(a) through 6(c) of this Agreement. If the Developer requests the refund of the Public Benefit Contribution under this Section 10(e)(i): (1) the City shall have the right to terminate this Agreement and to revoke any Project Approvals or Building Permits for the Property which remain in effect and (2) Developer shall be deemed to have waived and relinquished any vested rights to develop the Property it may hold or may acquire under any Project Approvals, Building Permits or this Agreement with respect to all or any portion of the Property.
(f) Construction, Opening and Initial Operation. These obligations are described in Section 6 above.
(g) Liquidated Damages.

IF DEVELOPER DOES NOT PAY THE $600,000 PUBLIC BENEFIT CONTRIBUTION/FEE BY MAY 1, 2024, AND THEN, SUBJECT TO DEVELOPER’S EXTENSION RIGHTS BY COMPLIANCE WITH SECTION 6(d) ABOVE DEVELOPER DEFAULTS UNDER ANY OF ITS OBLIGATIONS SET FORTH IN SECTION 6(a) THROUGH SECTION 6(c) OF THIS

AGREEMENT, THEN DEVELOPER SHALL PAY TO CITY, AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, THE SUM OF EIGHT HUNDRED THOUSAND DOLLARS ($800,000.00)

WHICH OBLIGATION SHALL BE ADDITIONALLY EVIDENCED BY THE PROMISSORY NOTE AND SECURED BY THE TRUST DEED. THE LIQUIDATED DAMAGES SET FORTH IN

THIS SECTION AND RIGHT TO FORECLOSE THE DEED OF TRUST IF NOT PAID, SHALL BE THE CITY’S SOLE AND EXCLUSIVE DAMAGES REMEDY FOR SUCH DEFAULT BY DEVELOPER UNDER SECTIONS 6(a) THROUGH 6(c) OF THIS AGREEMENT.

THE PARTIES HERETO ACKNOWLEDGE THAT SUCH LIQUIDATED DAMAGES ARE FAIR

AND REASONABLE IN LIGHT OF ALL THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, INCLUDING THE PARTIES’ ESTIMATION OF THE POSSIBLE

RANGE OF DAMAGE TO THE CITY IN THE EVENT OF SUCH DEFAULT OR BREACH BY DEVELOPER UNDER SECTIONS 6(a) THROUGH 6(c) OF THIS AGREEMENT, IT BEING

AGREED THAT THE DAMAGES TO THE CITY IN SUCH EVENT WOULD BE EXTREMELY

DIFFICULT AND IMPRACTICABLE (IF NOT IMPOSSIBLE) TO DETERMINE WITH

ACCURACY AND THAT PROOF AND DETERMINATION OF THE AMOUNT OF DAMAGES WOULD BE COSTLY AND INCONVENIENT.

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EXCEPT FOR THE CITY’S RIGHT TO TERMINATE THIS AGREEMENT, THE CITY’S RIGHT TO REVOKE THE PROJECT APPROVALS ONLY AS TO THE PHASE (PHASE 1 OR 2) TO WHICH THE DEVELOPER DEFAULT APPLIES, THE CITY’S RIGHT TO INDEMNITY AND DEFENSE AND DEPOSITS UNDER SECTION 17 BELOW, AND THE CITY’S RIGHT TO REIMBURSEMENT OF ATTORNEYS’ FEES AND COSTS UNDER SECTION 25 BELOW, THE

CITY AGREES TO LOOK SOLELY TO SUCH LIQUIDATED DAMAGES (AND IF NOT PAID,

THEN TRUST DEED FORECLOSURE) AS COMPLETE SATISFACTION OF ANY DAMAGES

CLAIM WHICH THE CITY MIGHT OTHERWISE HAVE AGAINST DEVELOPER ARISING OUT OF OR DUE TO DEVELOPER’S FAILURE TO PAY SUCH LIQUIDATED DAMAGES,

AND THE CITY IRREVOCABLY WAIVES ANY OTHER DAMAGES REMEDY FOR ANY OF SUCH FAILURES OR DELAYS. BY SIGNING THIS SECTION WHERE INDICATED BELOW,

THE PARTIES EXPRESSLY AFFIRM THEIR AGREEMENT TO THE PROVISIONS OF THIS SECTION.

FOR THE AVOIDANCE OF DOUBT, IT IS ACKNOWLEDGED, THAT THE LIQUIDATED

DAMAGES UNDER THIS SECTION ARE NOT APPLICABLE TO, AND DO NOT LIMIT THE

RIGHTS AND REMEDIES OF THE PARTIES FOR, THE BREACH OF ANY OTHER

OBLIGATIONS UNDER THIS AGREEMENT OTHER THAN THE OBLIGATIONS DESCRIBED IN THIS SECTION.
__________________ __________________
“City” (Initials) “Developer” (Initials)

11. Lot Line Adjustment Approval and Recordation; Issuance of Building Permit; Expedited Permit Processing.
(a) Lot Line Adjustment Approval and Recordation. The Lot Line Adjustment shall not be approved and recorded until: (1) Developer has delivered to the City fully executed originals of the Note and the Trust Deed, in accordance with Section 10(d); and (2) this Development Agreement and the Trust Deed have been recorded in accordance with Section 10(d). (b) Building Permit Issuance. The City shall be under no obligation to issue any Building Permit for the Property until: (i) all the fees and other obligations set forth in Section 6 and Section 10 which are due before issuance of such Building Permit have been fully paid or otherwise fulfilled; and (ii) any lender whose lien is prior and superior to any conveyance or covenant required by this Agreement shall have agreed to subordinate its lien to the conveyances and covenants created and required by this Agreement by a recorded subordination agreement acceptable to the City Manager, in his or her sole and absolute discretion.
(c) Expedited Processing. The City shall accept the Property Building Permit applications for expedited processing, including but not limited to expedited plan check review, provided that Developer pays the applicable Processing Fee and the actual costs to the City, plus fifteen percent (15%) of the cost of any internal or external expediter directly employed or engaged by the City.

12. Default.

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(a) Notice and Cure.
(i) With the exception of a Developer default under Sections 6(a) through (d) or Section 10(g), which shall cause the Developer’s obligations under the Promissory Note to come due (and if not paid, result in foreclosure of the Trust Deed), and as to which no cure period shall be applicable prior to City’s exercise of its rights and remedies, failure by the City or Developer to perform any other term or provision of this Agreement for a period of thirty (30) days from the receipt of written notice thereof from the other shall constitute a default under this Agreement. Each notice under this Section 12(a)(i) shall specify in detail the nature of the alleged default and the manner in which said default may be satisfactorily cured. If the nature of the alleged default is such that it cannot reasonably be cured within such thirty (30) day period, the commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure within such period.
(b) Termination. With the exception of a Developer default under Sections 6(a) though (c) above or Section 10(g) which default shall cause the Developer’s obligations under the Promissory Note to come due (and if not paid, result in foreclosure of the Trust Deed), after notice and expiration of the 30-day cure period under Section 12(a) above, should the defaulting party fail to timely cure any default, the notifying party, at its option, shall have all rights and remedies provided by law, subject to any applicable express provisions of this Agreement, and/or may give notice of intent to terminate this Agreement pursuant to Government Code Section 65868. Following such notice of intent to terminate, the matter shall be scheduled for consideration and review by the City Council within thirty (30) calendar days in the manner set forth in Government Code Sections 65867 and 65868. Following consideration of the evidence presented in said review before the City Council and a determination that a default exists, the Party alleging the default by the other Party may give written notice of termination of this Agreement to the other Party. Upon any such termination, the respective rights, duties and obligations of the Parties hereto shall without further action cease as of the date of such termination except as to duties and obligations that arose prior to the date of such termination and except that if the two drive-through restaurants have been constructed pursuant to the Covina Village Specific Plan, then the obligations provided or referenced in Section 13 shall survive such termination.
(c) Monetary Damages Limitation. In no event: (i) shall monetary damages be available against the City for any alleged default or breach by the City, and (ii) shall consequential damages (other than the liquidated damages under Section 10(g) which is a negotiated alternative thereto) be available against Developer or Owner, except in the event that the remedy of specific performance is found by a court of competent jurisdiction to be unavailable to the City for a violation of the covenants with respect to the Minimum Development Standard provided in Section 7(b). (d) Specific Performance as to Minimum Development Standard. The parties acknowledge and agree that irreparable damage to the City would occur in the event that the provisions of this Agreement the failure of the two drive-through restaurants to meet the Minimum Development Standard as provided in Section 7(b) (if open) were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the City shall be entitled to an injunction or injunctions to prevent breaches of this Agreement as to such matters and to enforce specifically such terms and provisions hereof. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss and

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that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by the Parties to this Agreement.

13. Certain Perpetual Provisions Extending Beyond the Term. (a) Compliance with Minimum Development Standard. The obligations with respect to the Minimum Development Standard provided in Section 7(b) a shall run with the land and be of perpetual duration, and the remedies for a violation of the same shall include specific performance under Section 12(d).

14. Transfers of Interests in Property or Agreement.
(a) Except as provided below, prior to completion of construction of the that portion of the Project to be constructed on the Property and expiration of the 180-day period referenced in Section 6(a), Developer shall have no right to Transfer any interest in the Property or in this Agreement, without the written consent of the City, which may be given or withheld in its sole, absolute and unrestricted discretion; however, notwithstanding the foregoing, without City approval the Developer shall be entitled to transfer the Property to a limited liability company which Allan Lui and members of his family are the sole interest holders (“Lui LLC”) provided that at least 30 calendar days prior to such conveyance the City is provided with an executed copy of the operating agreement for the Lui LLC which evidences the foregoing ownership by the Lui family and includes provisions making the LLC a ”single purpose entity” to make it a bankruptcy remote entity. (b) After the completion of construction of the portion of the Project to be constructed on the Property and expiration of the 180-day period referenced in Section 6(a), Developer may freely Transfer any or all of its interest in the Property and this Agreement, without requirement that the City consent, provided that the transferee assumes all obligations of Developer arising or accruing on and after the transfer date under this Agreement, pursuant to an assignment and assumption agreement reasonably acceptable to the City Attorney.
(c) Upon any Transfer under Section 14(b), Developer shall remain liable for all obligations under this Agreement arising or accruing before the date of Transfer, but shall be discharged from any liability and responsibility for obligations arising or accruing on and after the date of Transfer; however, no obligation under the Promissory Note shall be deemed to have been altered, and the Promissory Note and Trust Deed shall remain in full force and effect.

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15. Mortgagee Protection.
(a) In General. The provisions of this Agreement shall not prevent or limit Developer’s right to encumber 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 such portion. The City acknowledges that Mortgagees and other financers may require certain interpretations or modifications of this Agreement and agrees upon request, from time to time, to meet with Developer and representatives of such Mortgagees or other financers to negotiate in good faith any such request for interpretation. The City shall 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 Agreement and does not, in the City’s sole determination, diminish the City’s benefits from this Agreement or increase the risk that the City will fail to receive the same. Any Mortgagee shall be entitled to the rights and privileges set forth in this Section. (b) Notice of Default to Mortgagee. If a Mortgagee has submitted a request in writing to the City in the manner specified herein for giving notices, the City shall use its best efforts to provide to such Mortgagee written notification from the City of any failure or default by Developer in the performance of Developer’s obligations under this Agreement, which notification shall be provided to such Mortgagee at such time as such notification is delivered to Developer. (c) Right of Mortgagee to Cure. With respect to any default under the Promissory Note or Trust Deed, any Mortgagee shall rely on its cure rights or right to payoff the Promissory Note under applicable law relating to the foreclosure of the Trust Deed, and shall have no other notice or cure rights. Any Mortgagee have the right, but not the obligation, to cure any other failure or default by Developer during the cure period allowed Developer under this Agreement (provided, such lender shall receive a day by day extension to such cure period for each day a notice of default is not delivered to Mortgagee in accordance with Section 15(b)), plus an additional one hundred twenty (120) days in order to cure such failure or default, if it is reasonably necessary for the Mortgagee to obtain possession of the property to cure, such as by seeking the appointment of a receiver or other legal process. Any Mortgagee that undertakes to cure or attempt to cure any such failure or default shall provide written notice to the City that it is undertaking efforts of such a nature; provided that no initiation of any such efforts by a Mortgagee shall obligate such Mortgagee to complete or succeed in any such curative efforts.
(d) Liability for Past Defaults or Obligations. Subject to the foregoing, any Mortgagee, including the successful bidder at a foreclosure sale, who comes into possession of the Property or any portion thereof pursuant to foreclosure, deed-in-lieu of foreclosure, shall take such property subject to the terms of this Agreement and in no event shall any such property be released from any obligations associated with its use and development under the provisions of this Agreement, including, without limitation, the payment of any sums due before or after any such actions. Nothing in this Section shall prevent the City from exercising any remedy it may have for a default under this Agreement, provided, however, that in no event shall such Mortgagee or purchaser at a foreclosure sale be personally liable for any defaults or monetary obligations of Developer arising prior to acquisition of possession of such property by such Mortgagee, but any such defaulted obligations shall continue to run with the land.

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16. Binding Effect. Subject to Section 5 and Section 12(a) hereof, all of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall be (a) binding upon the Parties and their respective heirs, successors (by merger, reorganization, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees, and all other persons acquiring the Property, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever, and shall inure to the benefit of the parties and their respective heirs, successors and assigns and (b) constitute covenants running with the land.

17. Indemnification.
(a) Non-liability of Parties. As set forth above, City has determined that this Agreement is consistent with the General Plan and meets all of the legal requirements of State law.

The parties acknowledge that:
i. In the future there may be challenges to the legality, validity and adequacy of the Project Approvals, the EIR, and/or this Agreement as they apply to the Property; and ii. If successful, such challenges could delay or prevent the performance of this Agreement and the development of the Property.
iii. In addition to the other provisions of this Agreement, including, without limitation, the provisions of this Section 17, neither party shall have liability under this Agreement for any failure of either party to perform its respective obligations under this Agreement under this Agreement as the direct result of a judicial determination resulting from any claim or litigation that on the Effective Date, or at any time thereafter, the Land Use Regulations, the Project Approvals, the EIR or any related CEQA determination for the Project ("CEQA Determination"), this Agreement, or portions thereof, are invalid or inadequate or not in compliance with law. (b) Revision of Land Use Regulations. If, for any reason, the Applicable Rules, the Project Approvals (including, without limitation, this Agreement), the EIR, or the CEQA Determination or any part thereof is hereafter judicially determined, as provided above, to not be in compliance with applicable laws or regulations and, if such noncompliance can be cured by an appropriate action otherwise conforming to the provisions of this Agreement, then this Agreement shall remain in full force and effect to the extent permitted by law. If required by a judicial decision, City shall process any of Developer's applications for amendments to any of the Project Approvals, the EIR, the CEQA Determination, and this Agreement, as necessary in response to such judicial decision. The Parties understand and agree that no promise can be made as to any future approval, however, because land use regulations involve the exercise of City’s police power and it is settled California law that government may not contract away its right to exercise its police power in the future. Avco Community Developers Inc. v. South Coast Regional Com., 17 Cal.3d 785, 800 (1976); City of Glendale v. Superior Court, 18 Cal.App.4th 1768 (1993). (c) Participation in Litigation: Indemnity. To the full extent permitted by law, Developer agrees to and shall fully indemnify, hold harmless, and defend, City and its respective elected and appointed officials, officers, members, agents, employees, and representatives (each an "Agent" and collectively "Agents") from any and all claims, suits, causes of action, fines, penalties, proceedings, damages, injuries or losses of any name, kind or description, specifically including

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attorneys' fees (collectively, "Claim(s)"), arising in any way out of or challenging the validity of this Agreement, any of the other Project Approvals, the EIR or the CEQA Determination. Developer's indemnification obligation shall include, but not be limited to, actions to attack, set aside, void, or annul any approval, should it occur, related to this Agreement, any of the other Project Approvals, the EIR or the CEQA Determination, including actions invoking Planning and Zoning Law or CEQA.

Developer shall reimburse City for any court costs and attorneys' fees that City may be required by a court to pay as a result of such Claim(s). City may, at its sole and absolute discretion, participate in the defense of any such Claim(s) undertaken by Developer, or (b) retain separate counsel whose attorneys' fees and costs shall be paid by Developer. Such participation in the defense of such Claim(s) or the retention of separate counsel by City shall not relieve Developer of its obligations under this Agreement.
(d) City shall promptly provide written notice to Developer of any Claim(s). City shall take all necessary and reasonable steps to provide such notice to Developer in a timely fashion and in a manner that will not result in any substantial prejudice to Developer's ability to defend the relevant Claim(s). Such notice shall contain a copy of any relevant pleadings filed in connection with the relevant Claim(s). City acknowledges that Developer desires to provide the defense of any Claim(s) in a cost efficient manner. City and Developer shall coordinate and cooperate in their defense activities, whether City is participating in defense undertaken by Developer or is retaining separate counsel. As used in this Agreement, cooperation does not include City having to take any action or make any decision that City does not believe, in the exercise of its good faith judgment, is in its own best interest. Unless expressly provided to the contrary, nothing in this Agreement shall be construed in a manner that requires City to exercise its discretion in a particular manner. (e) Developer may not resolve such Claim(s) without City's prior written consent.

In all events, City shall have the right to resolve any such Claim(s) in any manner, in its discretion, provided, however, Developer's consent shall be required (and may be granted or withheld in Developer's discretion) if the resolution of the Claim(s) shall require a payment by Developer or limit Developer's rights under the Project Approvals, including, without limitation, this Agreement.

Developer's obligation to pay the cost of any such Claim(s), including judgment, post-judgment motions, and any and all appeals, shall extend until any Claim is completely concluded, judgment is entered and completely satisfied.
(f) In the event Developer fails or refuses to reimburse City for its cost to defend any Claim(s), City shall have the right to terminate this Agreement, subject to the notice and cure requirements of Section 12(a) above, and revoke any Project Approvals or Building Permits which remain in effect. Additionally, in the event of any such Claim(s), the Term of this Agreement shall be tolled for the period during which such Claim(s) are proceeding until fully and finally resolved. (g) In order to ensure compliance with this Section 17, within twenty (20) days after notification by the City of the filing of any claim, action or proceeding to attack, set aside, void or annul this Agreement, any of the Project Approvals or the EIR prepared and adopted for the Project, Developer shall deposit with the City cash in the amount of One Hundred Thousand Dollars ($100,000), guaranteeing indemnification or reimbursement to the City of all costs related to any action triggering the obligations of this Section. If the City is required to draw on that cash to indemnify or reimburse itself for such costs, Developer shall restore the deposit to its original amount within fifteen (15) days after notice from the City. Additionally, if at any time the City Manager determines that an

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additional deposit or additional security up to an additional One Hundred Thousand Dollars ($100,000) is necessary to secure the obligations of this Section, Developer shall provide such additional security within fifteen (15) days of notice from the City Manager. The City shall cooperate fully in the defense of any such claim or action, but shall have the right to resolve any challenge, in any manner, in its sole discretion, provided, however, Developer’s consent shall be required if the resolution of the challenge shall require a payment by Developer or limit Developer’s rights under this Agreement. (h) Hold Harmless: Developer's Construction and Other Activities. Developershall indemnify, defend, save and hold City and its Agents, as defined in this Section 17 above, and shall hold and save them and each of them harmless from any and all claims, damages of any kind and litigation which may arise from Developer's or Developer's agents, contractors, subcontractors, agents, or employees' operations under this Agreement, whether such operations be by Developer or by any of Developer's agents, contractors or subcontractors or by any one or more persons directly or indirectly employed by or acting as agent for Developer or any of Developer's agents, contractors or subcontractors. Notwithstanding anything to the contrary in this Section 17, nothing herein shall make Developer liable for the negligence or willful misconduct of City's Agent(s). (i) Survival of Indemnity Obligations. All indemnity provisions set forth in this Agreement shall survive termination of this Agreement for any reason other than City's Default as provided herein and shall continue to be the liability and obligation of Developer, binding upon Developer, until the final resolution of all Claims, and shall survive the completion, partial completion, or abandonment of the Property.

18. Relationship of the Parties; Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Property 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 Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the owner of such property.

19. Recordation. The City Clerk shall record a copy of this Agreement with the RegistrarRecorder of the County of Los Angeles no later than ten (10) days after the later to occur of the effective date of the ordinance approving this Agreement. Developer shall reimburse the City for all costs of such recording, if any.

20. No Third-Party Beneficiaries. The only signatories to this Agreement are the City and Developer. There are no third-party beneficiaries and this Agreement is not intended and shall not be construed to benefit or be enforceable by any other person whatsoever other than the successors in interest of the signatories.

21. Advice; Neutral Interpretation. Each Party has received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions hereof. This Agreement has been drafted through a joint effort of the Parties and their counsel and therefore shall not be construed against either of the Parties in its capacity as draftsperson, but in accordance with its fair meaning.

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22. Certificate of Compliance. At any time during the term of this Agreement, any Party or Mortgagee may request any Party to this Agreement to confirm that (i) this Agreement is unmodified and in full force and effect (or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications) and that (ii) to the best of such Party’s knowledge, no defaults exist under this Agreement or if defaults do exist, to describe the nature of such defaults and (iii) any other information reasonably requested. Each Party hereby agrees to provide a certificate to such lender or other Party within ten (10) Business Days of receipt of the written request therefor.

23. Consideration. The City and Developer acknowledge and agree that there is good, sufficient and valuable consideration flowing to the City and to Developer pursuant to this Agreement as more particularly set forth in the Recitals and Section 2 of this Agreement. The Parties further acknowledge and agree that the exchanged consideration hereunder is fair, just and reasonable.

24. Periodic Reviews.
(a) Annual Reviews. During the Term of this Agreement, the City may conduct annual reviews to determine whether Developer is acting in good faith compliance with the provisions of this Agreement and Government Code Section 65865.1. The reasonable cost of each annual review conducted during the term of this Agreement shall be reimbursed to the City by Developer. Such reimbursement shall include all direct and indirect expenses reasonably incurred in such annual reviews.
(b) Special Reviews. In addition, during the Term of this Agreement, the City Council of the City may order a special periodic review of Developer’s compliance with this Agreement at any time. The cost of such special reviews shall be borne by the City, unless such a special review demonstrates that Developer is not acting in good faith compliance with the provisions of this Agreement. In such cases, Developer shall reimburse the City for all costs, direct and indirect, incurred in conjunction with such a special review.
(c) Procedure for Review. The City’s Director of Community Development (the “Community Development Director”) shall conduct the review contemplated by this Section 24 to ascertain whether Developer has complied in good faith with the terms and conditions of this Agreement during the period for which the review is conducted. The Community Development Director shall give Developer written notice that any such review has been commenced, and shall give Developer at least twenty (20) days after Developer’s receipt of such notice to provide to the Community Development Director such information as Developer deems relevant to such review. In addition, upon the written request of the Community Development Director, Developer shall furnish such documents or other information as requested by the Community Development Director. (d) Result of Review. If following such a review, the Community Development Director finds good faith compliance by Developer with the terms and conditions of this Agreement, the Community Development Director shall issue to Developer an executed certificate of compliance, certifying Developer’s good faith compliance with the terms and conditions of this Agreement through the period of such review. Such certificate shall be in recordable form, and shall contain such information as may be necessary to impart constructive record notice of the finding of good faith

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compliance hereunder. Developer shall have the right to record such certificate of compliance in the Official Records of the County of Los Angeles.

If, following such a review, the Community Development Director finds that Developer has not complied in good faith with the terms and conditions of this Agreement, the Community Development Director shall specify in writing the respects in which Developer has failed to so comply.

The Community Development Director shall provide Developer with written notice of such noncompliance as provided in Section 12 and the City may follow the default procedures as set forth in Section 12.
(e) Effect on Default. Nothing in this Section 24 shall be interpreted to prevent the City from providing Developer with a notice of default hereunder at any time, including any time other than during a periodic review under this Section 24, or from terminating this Agreement pursuant to the provisions of Section 12 following any event of default by Developer.

25. Future Litigation Expenses.
(a) Payment of Prevailing Party. If the City or Developer brings an action or proceeding (including, without limitation, any motion, order to show cause, cross-complaint, counterclaim, third-party claim or arbitration proceeding) by reason of default, breach, tortious act, or act or omission, arising out of this Agreement, the prevailing party in such action or proceeding shall be entitled to its costs and expenses of suit including, but not limited to, reasonable attorneys’ fees and expert witness fees.
(b) Scope of Fees. Attorneys’ fees under this Section shall include attorneys’ fees on any appeal and, in addition, a party entitled to attorneys’ fees shall be entitled to all other reasonable costs and expenses incurred in connection with such action. In addition to the foregoing award of attorneys’ fees to the prevailing party, the prevailing party in any lawsuit shall be entitled to its attorneys’ fees incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.

26. Headings. The section headings used in this Agreement are for convenient reference only and shall not be used in construing this Agreement. The words “include,” “including” or other words of like import are intended as words of illustration and not limitation and shall be construed to mean “including, without limitation.”

27. Amendment. This Agreement may be amended from time to time, in whole or in part, by mutual written consent of the Parties or their successors in interest, as follows:
(i) City and Developer, by mutual agreement, may terminate or amend the terms of this Agreement, and the amendment or termination shall be accomplished in the manner provided under California law for the enactment of Development Agreement amendments. (ii) Except as may be otherwise agreed to by the Parties, no amendment of this Agreement shall be required in connection with any Subsequent Project Approval except a Subsequent Project Approval proposed by initiative. Any Subsequent Project Approval issued after

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the Effective Date of this Agreement other than by initiative automatically shall be incorporated into this Agreement and vested hereby.

28. Alterations. No alteration, amendment or modification of this Agreement shall be valid unless evidenced by a written instrument executed by the parties hereto with the same formality as this Agreement, and made in the manner required by the Development Agreement Act.

29. Waiver. The failure of either Party hereto to insist in any one or more instances upon the strict performance of any of the covenants, agreements, terms, provisions or conditions of this Agreement, or to exercise any election or option herein contained, shall not be construed as a waiver or relinquishment for the future of such covenant, agreement, term, provision, condition, election or option, but the same shall continue and remain in full force and effect. No waiver by any Party hereto of any covenant, agreement, term, provision or condition of this Agreement shall be deemed to have been made unless expressed in writing and signed by an appropriate official or officer on behalf of such Party.

30. Severability. If any article, section, subsection, term or provision of this Agreement, or the application thereof to any party or circumstance, shall, to any extent, be invalid or unenforceable, the remainder of the article, section, subsection, term or provision of this Agreement, or the application of the same to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each remaining article, section, subsection, term or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law, except that if any provision of Section 6 or Section 10 is held invalid or unenforceable before a Certificate of Occupancy is issued for the Property, then this entire Agreement shall be void and unenforceable and of no further force and effect except that the liquidated damages under Section 6 shall survive, except to the extent that such provisions have been found to be invalid or unenforceable.

31. Extensions of Time; Force Majeure, Performance by any Party of its obligations hereunder (other than for payment of money) shall be excused or extended, as the case may be, during any period of Force Majeure as defined in Section 1 above, except as otherwise expressly provided in this Agreement; however, no Force Majeure or other extension shall apply to the obligations of Developer to satisfy its obligations under Sections 6(a) through 6(c) of this Agreement.

32. Notices. All notices, disclosures, demands, acknowledgments, statements, requests, responses and other communications (each, a “Communication”) to be given under this Agreement shall be in writing, signed by a signatory hereto (or an officer, agent or attorney of such party) giving such Communication, and shall be deemed effective (i) upon receipt if hand delivered to Developer (notices to City may not be hand delivered) or sent by overnight courier service; (ii) upon receipt if delivered by UPS, Federal Express or other overnight courier service or (iii) upon delivery or the date of refusal if sent by the United States mail, postage prepaid, certified mail, return receipt requested, in either case addressed as follows:

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To PKL: PKL
C/O Mega 5 Partners
2863 Maricopa Street
Torrance, CA 90503
Attn: Allan Lui
With Copy to: Dzida, Carey & Steinman
3 Park Plaza, Suite 750
Irvine, CA 92614
Attn: Greg Weiler and Jay R. Steinman, Esq.

To the City: City Manager
City of Covina
125 E. College Street
Covina, CA 91723
With Copy to: City Attorney
Richards Watson Gershon
c/o Candice K. Lee, City Attorney, City of Covina
350 South Grand Avenue, 37th Floor
Los Angeles, CA 90071
Any signatory hereto may from time to time, by notice given to the other signatories hereto pursuant to the terms of this Section 32 change the address to which communications to such signatory are to be sent or designate one or more additional persons or entities to which communications are to be sent.

33. Applicable Law. This Agreement shall be governed and construed in all respects by the laws of the State of California with the venue of the Los Angeles County Superior Court.

34. Time is of the Essence. Time is of the essence of this Agreement and every term or performance hereunder.

35. Entire Agreement. This Agreement supersedes any prior understanding or written or oral agreements between the Parties hereto respecting the within subject matter and contains the entire understanding between the Parties with respect thereto.

36. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

37. Compliance With Law. Notwithstanding any provision of this Agreement, the Parties agree to comply with all federal, state and local laws and to act in good faith and reasonably in carrying out the terms of this Agreement.

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38. Authorization. Each person executing this Agreement represents and warrants that he or she is authorized and has the legal capacity to execute and deliver this Agreement on behalf of the Party for which execution has been made.
[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the ___ day of ___________________, 2023

CITY OF COVINA,
a California municipal corporation
Walter Allen III
Mayor
ATTEST:
(SEAL)
Fabian Velez
Chief City Clerk

PKL INVESTMENTS, LLC, A CALIFORNIA

LIMITED LIABILITY COMPANY
By: ___________________________________
Name:

Its:

APPROVED AS TO FORM:

Candice K. Lee
City Attorney
APPROVED AS TO CONTENT:

Christopher Marcarello
City Manager

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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of _____________________ )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of _____________________ )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

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Exhibit “A”
Legal Description of Property

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Exhibit “B”
Promissory Note

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SECURED PROMISSORY NOTE
$600,000 ___________, 20__ (“Effective Date”)
THIS NOTE CONTAINS PROVISIONS FOR A BALLOON PAYMENT.

For value received, PKL INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY(“Maker”), promises to pay to the CITY OF COVINA a California municipal corporation (“Holder”) (Holder and Maker are collectively referred to as the “Parties” and individually as a “Party”), at, ______________________, California _________, EIGHT HUNDRED THOUSAND DOLLARS ($800,000) (“Note Amount”), which is the liquidated damages obligation under Section 10(g) of the Development Agreement between the City and Maker dated _______, 2024 (“Development Agreement”) together with interest on the unpaid balance from the date it is due, at the applicable rate specified below, in accordance with the following provisions:

1. Interest. Except as provided in Section 5.4 below, no interest shall accrue under this Note..

2. Purpose of Note The Note Amount is the liquidated damages that Maker owes the City if Developer does not comply with the obligations under or described in Section 10(g) of the Development Agreement after failing to pay the Public Benefit Contribution by May 1, 2024 under the Development Agreement.

3. Maturity. The Note Amount is due as the liquidated damages under Section 10(g) of the Development Agreement, and is payable when such liquidated damages become payable. All payments made under this Note shall be by Federal wire transfer or certified or cashiers.

4. Security. As security for payment of this Note, Maker has, concurrently herewith, delivered for the benefit of Holder a deed of trust (“Trust Deed”) encumbering real property in Los Angeles County, California (“Property”) which is not junior or subordinate to any other deeds of trust or liens (except the liens for property taxes and assessments not yet payable).

5. Events of Default. The items listed in Sections 5.1 and 5.2 shall be an “Event of Default” under this Note:

5.1. Note Payments. Maker’s failure to make a payment of principal and/or interest on the date due under this Note; or

5.2. Other Defaults. Any other default or breach of any obligation of Maker under this Note and/or the Trust Deed where such default is not cured within five (5) days following receipt by Maker of written notice of default from Holder..

5.4. Default Interest Rate. From and after the maturity of this Note interest on the Note Amount shall be computed at the maximum rate allowed by law (“Default Interest Rate”). The imposition of the Default Interest Rate shall not limit any of Holder's other rights and remedies under this Note or the Trust Deed, including, but not limited to, foreclosure, and the right to compel prompt performance under this Note. If interest is not paid when due, it shall thereafter bear like interest as the principal. Notwithstanding the

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foregoing or any other provision of this Note, in no event shall the rate of interest under this Note exceed the maximum rate permitted by law; and if such rate of interest, computed in the amount provided for in this Note, should exceed said maximum legal rate, then the rate of interest shall be automatically reduced to such maximum legal rate. The remedies of Holder as provided herein and in the Trust Deed shall be cumulative and concurrent and may be pursued singularly, successively or together, at the sole discretion of Holder, and may be exercised as often as occasion therefor may arise under the terms of such documents.

6. Waivers.

6.1. By Maker. Presentment, demand, protest, and all notice of every kind (including notices of protest, dishonor and nonpayment of this Note) are hereby waived by Maker. To the extent permitted by applicable law, the defense of any statute of limitations is hereby waived by Maker.

6.2. By Holder. Nothing contained herein shall prevent Holder from waiving, in writing, in any certain instance or on any particular occasion, any right or remedy hereunder (including, but not limited to, the operation of the acceleration clauses above). Consent to one (1) such transaction shall not be deemed to be a consent or waiver to any future transaction. No such waiver shall constitute a further or continuing waiver of such right or remedy as to any preceding or succeeding breach hereunder. No single or partial exercise of any right hereunder or under any instrument securing or guaranteeing this Note shall preclude any other or further exercise thereof or the exercise of any other right. Holder shall at all times have the right to proceed against any security for this note in such order and in such manner as Holder may deem fit, without waiving any rights with respect to any other security. No delay or omission on the part of Holder in exercising any right hereunder or under any other instrument shall operate as a waiver of such right or of any other right under this Note. No acceptance by Holder of any payment due hereunder which is less than the full amount then due and owing shall operate as a waiver of the same or any other right or option, except as and to the extent provided by law.

The release of any party liable on this note shall not operate to release any other party liable hereon. All rights and remedies of Holder hereunder and under any documents guaranteeing or securing this Note are cumulative.

7. Collection Costs. Maker hereby agrees to pay all costs and expenses including, without limitation, reasonable attorneys’ fees, incurred by Holder and arising out of or related to the collection of any amounts due hereunder or the enforcement of any rights provided for herein or in the Trust Deed. In any action or proceeding brought to enforce any right or obligation under this Note and/or the Trust Deed, the prevailing party therein shall be entitled to recover from the other party the costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in connection with such action or proceeding.

8. Notices. All notices, consents, waivers, demands, requests or other instruments or communications provided for under this Note or by law to be served on or to be given to either Maker or Holder shall be in writing, signed by the party giving the same to the addresses set forth below and personally delivered to Maker (personal delivery may not be used for notices to Holder) or sent by certified mail, return receipt requested and prepaid, or sent by reputable overnight courier (such as Federal Express, UPS or DHL), or by email to Developer (email may not be used for delivery of notices to Holder). A notice shall be effective on the date of personal delivery if personally delivered before 5:00 p.m. prevailing local time, otherwise on the day following personal delivery, or on the date of receipt, if transmitted by e-mail prior to 5:00 p.m. prevailing local time or otherwise on the next business day, or two (2) business days following the date the notice is postmarked, if mailed, or on the day following delivery to the applicable overnight courier, if sent by overnight courier. Either Party may change the address to which notices are to be given to it by giving notice of such change of address in the manner set forth above for giving notice:

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HOLDER:

MAKER:

9. Performance of Acts on Business Days. All references in this Note to “days” shall mean consecutive calendar days. If the date for payment of any amount hereunto falls on a Saturday, Sunday or state or federal holiday, such payment may be made on the next succeeding business day.

10. Payment Allocation. Payments received by Holder shall be applied first to any delinquent charges assessed hereunder and to costs incurred by Holder in the enforcement of this Note or in the preservation of the collateral under the Trust Deed, second to accrued interest hereunder, and finally, to principal.

11. Applicable Law/Terms. This Note shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

12. Construction of Agreement. The agreements contained herein shall not be construed in favor of or against either Party, but shall be construed as if both Parties prepared this Note.

13. Time of the Essence. Time is of the essence of each and every provision of this Note.

14. Severability. If any portion of this Note is illegal, null, void or against public policy, for any reason, or is held by any court of competent jurisdiction to be illegal, null, void or against public policy, the remaining portions of this Note shall not be affected thereby and shall remain in force and effect to the full extent permissible by law, but only to the extent that performance of such remaining provisions would not be inconsistent with the intent and purposes of this Note.

15. Entire Agreement. This Note and the Development Agreement constitute the entire agreement between the Parties pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, negotiations and understandings of the Parties, oral or written, are hereby superseded and merged herein.

16. Joint and Several. If more than one person signs this Note, each such person shall be deemed an obligor and the obligation of all such obligors shall be joint and several. When the context and construction so requires, all words used in the singular shall be deemed to have been used in the plural. The word “person” as used in this Note shall include an individual, company, firm, association, partnership, corporation, trust or other legal entity of any kind whatsoever.

17. Transfer of Property. Upon transfer of the Property to a limited liability company in which Allan Lui and members of his family are the sole owners (“Lui Entity”) and which otherwise complies with the provisions of Section 14(a) of the Development Agreement, and if a written assignment and assumption agreement executed by Maker and such Lui Entity is delivered to Holder with respect to this Note, then the obligations under this Note shall be deemed assigned to and accepted by the Lui Entity and thereafter such Lui

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Entity shall be deemed the Maker under this Note and the original Maker shall be released from its obligations under this Note (but the Trust Deed shall continue to secure this Note).

THIS NOTE CONTAINS PROVISIONS WHICH WILL REQUIRE A BALLOON PAYMENT AT MATURITY.

PKL INVESTMENTS, LLC, A CALIFORNIA LIMITED

LIABILITY COMPANY
By: ___________________________________
Name: _______________________________
Its: ________________________________
Maker

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Exhibit “C”
Trust Deed

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Order No.

Escrow No.

Loan No.

WHEN RECORDED, MAIL TO:

SPACE ABOVE THIS LINE FOR RECORDER'S USE

DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, made this _____________, 20___, between PKL INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, called TRUSTOR, whose address is _______________________and ____________________________Title Company called TRUSTEE, and CITY OF COVINA, a California municipal corporation, herein called BENEFICIARY. Trustor grants to Trustee in trust, with power of sale, that property in the County of Los Angeles, State of California (“Property”), described on Exhibit A attached hereto, together with the rents, issues and profits thereof (collectively the “Property”), subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the sum of $800,000 with interest thereon according to the terms of a Secured Promissory Note dated substantially concurrently herewith made by Trustor, payable to order of Beneficiary (“Note”), and any express written extensions thereof approved and executed by Beneficiary.

To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely:
(CONTINUED ON NEXT PAGE)

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COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 Butte 1330 513 Los Angeles T-3878 874 Sacramento 5039 124 Sonoma 2067 427 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633
Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B, (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law.

The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth.

PKL INVESTMENTS, LLC, A CALIFORNIA

LIMITED LIABILITY COMPANY,
By: ___________________________________
Name: _______________________________
Its: _____________________________________

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
)

COUNTY OF )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public (SEAL)

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DO NOT RECORD
The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein.

A. To protect the security of this Deed of Trust, Trustor agrees:
1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon, not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary; provided that fire insurance required by any senior lender shall be deemed satisfactory to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. 4) To pay; at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust.

Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may; make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.
5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded.

B. It is mutually agreed:
1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such monies received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance.
2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof.
4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto". 5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys' fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of Trustee and of this Trust, including costs of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (CONTINUED ON NEXT PAGE)

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7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. 8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.

DO NOT RECORD REQUEST FOR FULL RECONVEYANCE
TO _________________________, TRUSTEE:

The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same.

Dated _____________________ ____________________________________________________________ ____________________________________________________________ Please mail Deed of Trust,
Note and Reconveyance to _______________________________________________________________________________________________________ _______________________________________________________________________________________________________________________________________ Do Not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. DEED OF TRUST WITH POWER OF SALE ____________________________ TRUSTEE

12923-0008/2875146-3
JRS\ 30443-0002\ 837254.2 1/11/2024
12923-0008\2898933v4.doc
EXHIBIT “A” TO DEED OF TRUST

DESCRIPTION OF PROPERTY

CC Regular Meeting

AGENDA ITEM REPORT
ITEM #9.i
Meeting: January 16, 2024
Title: Adopt Ordinance 23-14
Presented by: James Eckart, City Prosecutor
Recommendation: Adopt Ordinance 23-14 entitled, “An Ordinance of the City Council of the City of Covina, California Amending Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of the Covina Municipal Code”.

EXECUTIVE SUMMARY:

Ordinance 23-14 (Attachment A) was approved at introduction by a 4-0-1 vote of the City Council at the December 19, 2023, City Council Meeting.

DISCUSSION:

It is recommended that City Council adopt on second reading Ordinance 23-14 entitled, “An Ordinance of the City Council of the City of Covina, California Amending Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of the Covina Municipal Code”.

FISCAL IMPACT:

There is no fiscal impact for a second reading and adoption of an ordinance.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

ATTACHMENT A
ORDINANCE 23-14

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING CHAPTER 5.90 (“SIDEWALK VENDORS
AND MOBILE FOOD FACILITIES”) OF THE COVINA MUNICIPAL
CODE
WHEREAS, on June 6, 2023, the City Council of the City of Covina passed, approved, and adopted Ordinance 23-05, amending provisions of the Covina Municipal Code regulating Sidewalk Vendors and Mobile Food Facilities in compliance with Senate Bill (“SB”) 946 and SB 972; and
WHEREAS, since the adoption of Ordinance 23-05, City Staff has implemented the City’s comprehensive street and sidewalk vendor program commencing with providing education to the public and itinerant vendors on the City’s permitting program (as well as information related to other governmental agencies that impose additional regulations upon itinerant vendors in the City); and
WHEREAS, notwithstanding the permitting process enacted by the City Council for sidewalk vendors, the health, safety, and welfare of sidewalk vendors, patrons, and the general public are still being placed in jeopardy as a result of, amongst other activities, vendors whose operations obstruct or interfere with accessible paths of travel; display or vend prohibited food or merchandise; and/or display or vend food without a current and valid permit from the Los Angeles County Department of Public Health or otherwise in an unsafe manner; and WHEREAS, the City desires to enact additional safeguards regulating the time, place, and manner in which sidewalk vending activities may occur in order to further protect the public health, safety, and welfare; and
WHEREAS, California Government Code Section 38771 provides that legislative bodies of Cities may declare what constitutes a nuisance; and
WHEREAS, California Government Code Section 38772 et seq. further provides that legislative bodies of Cities may also provide for the summary abatement of any nuisance; and WHEREAS, the City Council finds that each of the following conditions and/or activities constitute not only an imminent hazard to the public health, safety, and welfare, but also a nuisance subject to summary abatement:
a) Sidewalk Vending Items (as defined in CMC §5.90.135.A) that are used to vend or display any merchandise prohibited by CMC §5.90.080.CC; b) Sidewalk Vending Items (as defined in CMC §5.90.135.A) use to vend or display food without a current and valid required permit issued by the Los Angeles County Department of Public Health;

Ordinance 23-14 Page 2 of 15
c) Sidewalk Vending Items (as defined in CMC §5.90.135.A) that cause or contribute to a substantial obstruction to accessibility requirements; d) Sidewalk Vending Items (as defined in CMC §5.90.135.A) that are left unattended or are abandoned;
e) Sidewalk Vending Items (as defined in CMC §5.90.135.A) that constitute an imminent threat to the health and safety of the general public; f) Sidewalk Vending Items (as defined in CMC §5.90.135.A) that are being used to vend or display food or merchandise in locations prohibited by CMC §5.90.080.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference as findings in support of the regulations contained in this Ordinance.

SECTION 2. Section 5.90.010.G (“Definitions: Mobile Food Facility”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:
“Mobile Food Facility” has the same meaning as CMC 17.04.416 and means any selfpropelled, motorized device or vehicle by which any person or property may be propelled or moved upon a highway (excepting a device moved exclusively by human power), or which may be drawn or towed by a self-propelled, motorized vehicle, from which food or food products are sold, offered for sale, displayed, bartered, exchanged or otherwise given.

Mobile Food Facility does not include any Sidewalk Vendor (as defined in CMC

5.90.010.K).

SECTION 3. Section 5.90.010.K (“Definitions: Sidewalk Vendor”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:
“Sidewalk Vendor” means a person who vends from a sidewalk Vending Cart or from one’s person exclusively upon a public sidewalk, or other public path or right-of-way provided for the exclusive use of pedestrians – or within a public park. Sidewalk vendor does not include any person who is selling services. A sidewalk vendor shall also not include any commercial solicitor (as defined by Section 5.24.010 of this Code) or any vendor whose operation (including the location of vendor, equipment, vending cart, merchandise/food, or queue of customers) takes place in whole or in part in or upon any portion of a street, alley, parking lot or structure, dedicated bicycle path/lane, or any other public right-of-way used in whole or in part for vehicular travel, nor in or upon any parkway, roadway median, crosswalk, freeway on-ramp, or any privately-owned real property.

Ordinance 23-14 Page 3 of 15
SECTION 4. Section 5.90.030 (“Vending Permit Required”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

In addition to procuring a business license, as set forth in Section 5.90.020, all sidewalk vendors and mobile food facility operators shall first obtain and shall maintain a current and valid vending permit from the City as set forth in this Chapter. Except as otherwise provided in this chapter or elsewhere in the Covina Municipal Code, vending from a vending cart, from one’s person, or from a mobile food facility on any public street, alley, parkway, sidewalk, or other public property or private property in the city is prohibited.

SECTION 5. Section 5.90.040 (“Vending Permit Application”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

To apply for a vending permit, a person must file an application with the director, accompanied by a nonrefundable processing fee in an amount established by resolution of the city council. The application shall be in a form prescribed by the director and shall contain, at a minimum, the following:

A. The legal name and current address and telephone number of the applicant, along with a copy of the applicant’s current and valid social security card, driver’s license or identification card issued by the State of California, taxpayer identification number, or an identification card issued by another municipality;
B. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; C. A description of the food or merchandise offered for sale; D. A photograph of the mobile food facility or vending cart. If the applicant intends to use a mobile food facility, a description of the type of vehicle to be used, the vehicle’s registration and license number, and the applicant’s California driver’s license number;
E. Whether the applicant intends to operate as a stationary sidewalk vendor, a roaming sidewalk vendor, or a mobile food facility operator; F. A description, map, or drawing of the specific location (for stationary sidewalk vendor) or route of travel (for roaming sidewalk vendor or mobile food facility operator) where the applicant intends to vend within the City; G. The hours per day and the days per week during which the applicant proposes to vend;
H. A maintenance plan that includes litter pickup in the vicinity of the proposed vending location or the proposed vending route, as well as the lawful disposal of any liquid or solid waste resulting from the vending operation (including, but not limited to, fats, oil,

Ordinance 23-14 Page 4 of 15
juice, cooking material, scraps, etc.). The maintenance plan shall also include a description of how any equipment used in the sidewalk vending operation (including, but not limited to, utensils, containers, grills, etc.) will be cleaned and sanitized.

I. A California seller’s permit number pursuant to California Revenue and Taxation Code Section 6067 (or any subsequently adopted amendment thereto); J. If the applicant proposes to vend food or food products, certification to completion of a food handler course and proof of all required approvals from the Los Angeles County Department of Public Health, including a copy of the applicant’s valid and current Los Angeles County Health License and/or Permit (unless the applicant is exempt from a Health Permit pursuant to California Health & Safety Code Section 114368) and mobile food facility permit;
K. Proof of liability insurance in the amount and subject to the terms on file with the city’s risk manager. The city’s risk manager shall promulgate provisions regarding insurance requirements for sidewalk vendors and mobile food facilities and shall be in an amount which is determined to be sufficient to adequately protect the city, persons, and property for injuries or damages which may be caused by activity under this chapter. Such insurance shall name as additional insured the City of Covina, its officers, agents, and employees, and shall further provide that the policy shall not terminate or be cancelled without thirty (30) calendar days advance written notice to the City of Covina; L. An agreement by the applicant to indemnify and hold harmless the City, its officers, agents, and employees, from any and all damages or injury to persons or property proximately caused by the act or neglect of the applicant or by hazardous or negligent conditions maintained at the applicant’s vending location; M. Certification by the applicant under penalty of perjury that the information contained in the application is true to their knowledge and belief; and N. Any other reasonable information regarding the time, place, and manner of the proposed vending.

SECTION 6. Section 5.90.050 (“Criteria for Approval or Denial of Vending Permit”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

The director, or their designee, shall approve the issuance of a vending permit unless he or she determines that:

A. Information contained in the application, or supplemental information requested from the applicant, is false in any material detail; B. The applicant has failed to provide a complete application, after having been notified of the requirement to produce additional information or documents;

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C. The applicant has failed to demonstrate an ability to conform to the operating standards set forth in this chapter;
D. The applicant has failed to pay any previous administrative fines, complete any community service, and/or complete any other alternative disposition associated with a previous violation of this chapter;
If the vending permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant. The notice shall also advise the applicant of the ability to appeal the denial in the manner set forth in Section 5.90.130 of this Chapter. Notice shall be mailed to the applicant at the address listed on the application.

SECTION 7. Section 5.90.060 (“Permit Expiration and Renewal”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

A. Permit Expiration. A vending permit shall be valid for 12 months from the date of issuance and shall expire and become null and void on the anniversary of its issuance, unless an earlier expiration date is noted on the permit.

B. Renewal. Notwithstanding any other provision of this Code to the contrary, any applicant seeking to renew a vending permit shall submit a new application for a vending permit in accordance with the provisions of Section 5.90.040; and any application for a renewal of a vending permit shall be reviewed and acted upon by the City in accordance with the provisions of Section 5.90.050 applicable to new vending permits.

1. An applicant’s stationary location and/or roaming route will be reviewed for compliance with the provisions of this Code with each renewal application; and the issuance of a vending permit does not convey a vested right to any permittee or applicant to vend at the same stationary location or along the same roaming route during any subsequent permitting period.

SECTION 8. Section 5.90.070 (“Permit Nontransferable”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

A vending permit issued pursuant to the provisions of this Chapter shall be valid only for the individual vendor to whom the permit has been issued and for the specific location or route approved by the City, and shall not be transferable to any other vendor, person, employee, entity, cart, location, or route.

SECTION 9. Subsection 5.90.080.B.5 (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

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5. Within 500 feet of the nearest property line of any property on which a school building is located, between the hours of 8:00 a.m. and 4:00 p.m., each day that school is in session. For the purposes of this section, “school” includes a licensed daycare; SECTION 10. Subsection 5.90.080.B.7 (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

7. Within any street, alley, plaza, city-owned parking lot or facility, or other public property other than a public sidewalk or other pedestrian path as provided herein.

SECTION 11. Subsection 5.90.080.D (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

D. No sidewalk vendor shall conduct any sidewalk vending operation or activities in the following locations:

1. Within three feet (3’) of the edge of any curb;

2. Within twenty feet (20’) of any traffic control device (including traffic signals and traffic signs);

3. Within twenty feet (20’) of any utility cabinets and/or vents;

4. Within fifteen feet (15’) of a fire hydrant or connection, fire call box, or other emergency facility;

5. Within five feet (5’) of any parking meter located on public property;

6. Within ten feet (10’) of any bicycle rack located on public or private property;

7. Within ten feet (10’) of any trash enclosure or waste or recycling receptacle located on public or private property (except for any waste receptacle used in the sidewalk vending operation as approved by the City);

8. Within forty-five feet (45’) of a bus bench, bus shelter, any public transportation waiting area/stop, or sign designating a bus or public transportation stop;

9. Within fifty feet (50’) of any railroad crossing or other opening providing pedestrian or vehicular access to railroad tracks;

10. Within fifteen feet (15’) of any outdoor dining or patio dining area;

11. Within fifteen feet (15’) of any Automatic Teller Machine (“ATM”);

12. Within forty-five feet (45’) of an active construction or maintenance zone;

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13. Within twenty feet (20’) of any entrance or emergency exit of any business during the hours that the business is open to the public or to persons having or conducting lawful business therein;

14. On any unpaved portion of a public right-of-way – including, but not limited to, parkways, trails, or other pedestrian path;

15. Inside of any portion of a City park within fifty feet (50’) of:
a. Any field, court, or pitch that is primarily designed for use in a sporting activity (including, but not limited to, baseball field, softball field, basketball court, tennis court, soccer pitch, volleyball court, pickleball court, and handball court), while said area is in use;
b. Any playground, recreational water feature, or exercise area, while said area is in use;
c. Any restroom facility.

SECTION 12. Subsection 5.90.080.H (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

E. Sidewalk vending is only permitted during the following times:

1. In residential areas, roaming sidewalk vending shall be permitted only between the hours of 9:00 a.m. and 5:00 p.m.

2. In city parks, vending shall be permitted only during the hours that the park is open to the public.

SECTION 13. Subsection 5.90.080.I (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

F. Sidewalk vendors shall operate exclusively from the location and/or along the route approved by the City and shall prominently display a City-issued sidewalk vending permit on the City-approved vending cart where visible to patrons, or, if no vending cart is utilized, upon his or her person at all times while conducting vending operations.

SECTION 14. Subsection 5.90.080.P (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

P. All vending carts must comply with the following requirements:

1. While in operation, all equipment used in the sidewalk vending operation must not exceed a maximum length of six feet and a maximum width of four feet;

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2. All vendors must maintain an unobstructed view over four feet in height from the ground to the tabletop structure of their sidewalk vending equipment except as allowed in Subsection 3 hereinbelow; or

3. A sidewalk vendor may have one City-approved umbrella or other shade structure if attached to the vending cart and does not exceed eight feet (8’) in height as measured from ground level to its highest point or the length and width restrictions applicable to vending carts set forth in Subsection 1 hereinabove. The umbrella or shade structure cannot be attached to any public or private building, structure, improvement, or fixture, such as the sidewalk, street furniture, fence, bench, or trees. The umbrella or shade structure must be made of a sturdy and safe material and must be attached and anchored to the sidewalk vending cart in such a way that sudden bursts of wind will not dislodge it.

The umbrella or shade structure cannot be positioned in such a manner that obstructs the visibility of pedestrians or vehicular traffic.

SECTION 15. Subsection 5.90.080.R (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby repealed and all remaining Subsections of Section 5.90.080 are renumbered accordingly.

SECTION 16. Subsection 5.90.080.Z (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

No sidewalk vending operation shall use or have at or near the vending cart natural gas, batteries or any other explosive or hazardous material, barbeque grills or other equipment that utilizes an open flame or that burns wood or charcoal. The use and storage of propane in any sidewalk vending operation shall be in accordance with all applicable rules, regulations, and approvals designed to protect the health, safety, and welfare of the sidewalk vendor, patrons, and general public.

SECTION 17. Subsection 5.90.080.CC (“Sidewalk Vendor Operating Requirements”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

CC. Alcoholic beverages, cannabis, adult-oriented material, tobacco products, products that contain nicotine, or any product used to smoke/vape nicotine or cannabis, live animals, counterfeit merchandise, and any food or merchandise that requires a conditional use permit or other land-use entitlement cannot be sold.

SECTION 18. Subsection 5.90.110.C (“Permit Rescission”) of Chapter 5.90 (“Sidewalk Vendors and Mobile Food Facilities”) of Title 5 (“Business Licenses and Regulations”) of the Covina Municipal Code is hereby amended to read as follows:

C. Should a vending permit be rescinded, and notwithstanding the timely filing of an appeal pursuant to Section 5.90.130 of this Chapter, the sidewalk vendor or mobile food facility operator shall be required to cease all vending activities and operations immediately. Should the Hearing Officer reverse or modify the rescission of a vending