Cities Index.
Agenda packet

Covina City Council
June 18, 2024

Document
Agenda packet
Meeting
June 18, 2024
Body
Covina City Council
Pages
2,700
Original file
211.6 MB
Text extracted from the city's file for reading and search. Open the original on pub-covinaca.escribemeetings.com. That file is the official record.

AGREEMENT BETWEEN CITY OF COVINA AND YWCA SAN GABRIEL VALLEY

SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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1. Compliance
The Sub-Recipient agrees to comply with all city and state civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086.

2. Nondiscrimination
The Sub-Recipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The Sub-Recipient will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training including apprenticeship. The Sub-Recipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause.

3. Land Covenants
This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Sub-Recipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The Sub-Recipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate.

4. Section 504
The Sub-Recipient agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (929 U.S.C. 706), which prohibits discrimination against the handicapped in any federally assisted program. The Grantee shall provide the Sub-Recipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement.

B. Affirmative Action

1. Approved Plan
The Sub-Recipient agrees that it shall be committed to carry out pursuant to the Grantee’s specifications an Affirmative Action Program in keeping with the principles as provided in President’s Executive Order 11246 of September 24, 1965. The Grantee shall provide Affirmative Action guidelines to the Sub-Recipient to assist in the formulation of such program. The Sub-Recipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds.

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SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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2. W/MBE
The Sub-Recipient will use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this Agreement. As used in this Agreement, the term “minority and female business enterprise” means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are AfroAmericans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, AsianAmericans, and American Indians. The Sub-Recipient may rely on written representations by Sub-Recipients regarding their status as minority and female business enterprises in lieu of an independent investigation.

3. Access to Records
The Sub-Recipient shall furnish and cause each of its sub-Sub-Recipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.

4. Notifications
The Sub-Recipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advancing the labor union or worker’s representative of the Sub-Recipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

5. EEO/AA Statement
The Sub-Recipient will, in all solicitations or advertisements for employees placed by or on behalf of the Sub-Recipient, state that it is an Equal Opportunity or Affirmative Action employer.

6. Subcontract Provisions
The Sub-Recipient will include the provisions of Section VIII.A, Civil Rights, and Section VIII.B, Affirmative Action, every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each sub-Sub-Recipient or vendor.

C. Employment Restrictions

1. Prohibited Activity
The Sub-Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities.

2. OSHA
Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants’ health or safety.

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SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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3. Right to Know
Participants employed or trained for inherently dangerous occupations, e.g., fire or police jobs, shall be assigned to work in accordance with reasonable safety practices.

4. Labor Standards
The Sub-Recipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland “Anti-Kickback” Act (40 U.S.C. 276, 327-333) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those act apply to the performance of this Agreement. The Sub-Recipient shall maintain documentation which demonstrates compliance with hour and wages requirements of this part. Such documentation shall be made available to the Grantee for review upon request.

The Sub-Recipient agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this Agreement, shall comply with federal requirements adopted by the Grantee pertaining to such contracts, shall comply with federal requirements adopted by the Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 3, 1, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Sub-recipient of its obligation, if any, to require payment of the higher wage. The Sub-Recipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this Section VIII.C.4, for such contracts in excess of $10,000.00.

5. Local Employment
To the greatest extent possible, the Sub-Recipient shall employ lower income residents of the project area, in compliance with Section 3, Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 et seq.

D. Conduct

1. Assignability
The Sub-Recipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Sub-Recipient from the Grantee under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval.

Notice of any such assignment or transfer shall be furnished promptly to the Grantee.

2. Hatch Act
The Sub-Recipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code.

3. Conflict of Interest
The Sub-Recipient agrees to abide by the provisions of 24 CFR Part 570, Section 570.611 with respect to conflicts of interest and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any

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AGREEMENT BETWEEN CITY OF COVINA AND YWCA SAN GABRIEL VALLEY

SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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manner or degree with the performance of services required under this Agreement. The Sub-Recipient further covenants that in the performance of this Agreement, no person having such a financial interest shall be employed or retained by the Sub-Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent consultant, officer, or elected official or appointed official of the Grantee, or of any designated public agencies or Sub-Recipients that are receiving funds under the CDBG Entitlement program.

4. Subcontracts
a. Approvals
The Sub-Recipients shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the prior written consent of the Grantee prior to the execution of such agreement.
b. Monitoring
The Sub-Recipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance.
c. Content
The Sub-Recipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement.
d. Selection Process
The Sub-Recipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process.

5. Copyright
If this Agreement results in any copyrightable material, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work for government purposes.

6. Religious Organization
The Sub-Recipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR Part 570, Section 570.200(j).

IX ENVIRONMENTAL CONDITIONS
A. Air and Water
The Sub-Recipient agrees to comply with the following regulations insofar as they apply to the performance of this Agreement:
 Clean Air Act, 42 U.S.C. 1857, et seq.

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AGREEMENT BETWEEN CITY OF COVINA AND YWCA SAN GABRIEL VALLEY

SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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 Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, relating to inspection, monitoring, entry, reports and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder.
 Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended.
 National Environmental Policy Act of 1969.
 HUD Environmental Review Procedures (24 CFR, Part 58).  California Environmental Quality Act of 1974.

B. Flood Disaster Protection
The Sub-Recipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Agreement.

C. Lead-Based Paint
The Sub-Recipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR Part 570, Section 570.608, and 24 CFR Part 35, and in particular Sub-Part B thereof. Such Regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning.

D. Historic Preservation
The Sub-Recipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement.

In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

CITY OF COVINA YWCA SAN GABRIEL VALLEY
By: By:

Chris Marcarello, City Manager Debra Ward, Executive Director

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AGREEMENT BETWEEN CITY OF COVINA AND YWCA SAN GABRIEL VALLEY

SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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ATTACHMENTS

EXHIBIT A COUNTY LOBBYIST CERTIFICATION

EXHIBIT B PROCUREMENT REQUIREMENTS

EXHIBIT C SUBAWARD INFORMATION

EXHIBIT D SCOPE OF SERVICES

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AGREEMENT BETWEEN CITY OF COVINA AND YWCA SAN GABRIEL VALLEY

SENIOR CASE MANAGEMENT PROGRAM
CDBG PROJECT No. 601194-24
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COMMUNITY DEVELOPMENT COMMISSION

COUNTY OF LOS ANGELES
_______
COUNTY LOBBYIST CODE CHAPTER 2.160
COUNTY ORDINANCE NO. 93-0031

CERTIFICATION
Name of Firm: YWCA San Gabriel Valley Date: July 1, 2024 Address: 101 South Barranca Avenue
State: CA Zip Code: 91723 Phone No.: (626) 214-9442
Acting on behalf of the above named firm, as its Authorized Official, I make the following Certification to the County of Los Angeles and the Community Development Authority, County of Los Angeles.

1. It is understood that each person/entity/firm who applies for a Community Development Authority contract, and as part of that process, shall certify that they are familiar with the requirements of the Los Angeles County Code Chapter 2.160 (Los Angeles County Ordinance 93-0031); and

2. That all persons/entities/firms acting on behalf of the above named firm have and will comply with the County Code; and

3. That any person/entity/firm who seeks a contract with the Community Development Commission shall be disqualified therefrom and denied the contract, and shall be liable in civil action, if any lobbyist, lobbying firm, lobbyist employer or any other person or entity acting on behalf of the above named firm fails to comply with the provisions of the County Code. _______
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is prerequisite for making or entering into contract with the Los Angeles County and the Community Development Authority, County of Los Angeles.

Authorized Official:

Name: Debra Ward Title: CEO/Executive Director
Signature: Date:

EXHIBIT A

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FEDERAL AND CITY PROCUREMENT REQUIREMENTS
Procurement requirements are in accordance with 2 Code of Federal Regulations (CFR) Part 200. Of the Federal and City requirement, use the most restrictive.

1. Micro-Purchases: Acquisition of supplies or services (dollar amount not to exceed $3,000). This type of procurement is generally used for administrative, office supplies, where best price is the selection factor.

Obtain minimum of two bids.

2. Small Purchase Procurement (Informal or Market Basket): Acquisition of supplies, services or other property (dollar amount not to exceed $10,000), with a minimum of two price-quotations solicited. This type of procurement is generally used for program equipment, program services or materials, where best price is the selection factor.

3. Small Purchase Procurement (Informal): For purchase of goods or services in an amount between $10,000 and $25,000: Informal bid procedure required ̶minimum of 3 bids required.

4. Purchase over $25,000: RFP or sealed bid process, unless purchase is a professional service. If so, follow requirements of Covina Municipal Code 2.20.175
Small Purchase Procedures:

Are those informal procurement methods where you must secure at least two informal bids, oral or written.

Written is preferred.
 You must document the following information: Company name and address, name of person contacted, telephone number and minority status.
 A “no bid” is not considered a bid. You must continue the process until three fixed dollar bids are received.
 Use the Small/Informal Bid Form for documentation.
 Not allowed for soliciting construction services
Formal Bidding Procedures:
 Are competitive sealed bids, secured through formal advertising  All bids will be publicly opened and a fixed price contract will be awarded to the lowest responsive and responsible bidder.

Competitive Proposals
 A Request for Proposal (RFP) or Request for Qualifications (RFQ) shall always be advertised.  The RFP should contain: bid specifications, sample contract, terms and conditions, and mechanism for proposal most advantageous to the program, with price and other factors considered.

Contracting with Minority and Women Business Enterprise  Whenever possible, contact at least one MWBE firm for your small purchase process.  Require prime contractor to also comply with above.

Perform an EPLS check: For all procurements, an EPLS check must be performed. Log on to sam.gov and search records for the entity selected. If no records or no active debarment is present, then proceed. If debarment is active, Do Not Enter Into Contract with the entity. This is in addition to required licensure or credential verification, such as California State License Board (CSLB) check.

File all steps of procurement in Project File: Save the Scope of Work, Solicitation List, Price Quotations, and EPLS check in project file along with the executed service agreement or contract.

EXHIBIT B

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SMALL/INFORMAL BID FORM
Project Name: Project Number:

Three Quotes Required On The Following Item(s):

Item Description
Specifications:

Quantity: Size:

1. Company Name: Phone No:

Address: Contact:

MWBE Status:

Quote  Unit Cost: Total:

2. Company Name: Phone No:

Address: Contact:

MWBE Status:

Quote  Unit Cost: Total:

3. Company Name: Phone No:

Address: Contact:

MWBE Status:

Quote  Unit Cost: Total:

Bids Obtained By: Date:

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EXHIBIT C

SUBAWARD INFORMATION
1 Subrecipient Name (which must match registered name in DUNS):

YWCA San Gabriel Valley
2 Subrecipient’s DUNS Number: 626495519
3 Federal Award Identification Number (FAIN): 70721
4 Federal Award Date (see §2 CFR 200.39): July 1, 2024
5 Subaward Period of Performance Start Date and End Date: July 1, 2024-June 30, 2025 6 Amount of Federal Funds Obligated by this Activity: $10,000 7 Total Amount of Federal Funds obligated to Subrecipient: $10,000 8 Total Amount of the Federal Award: FY 24-25 $306,874
9 Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA):

Project No. 601194-24 Senior
Case Management Program
10 Name of Federal Awarding Agency: Department of Housing and Urban Development
11 Name of Pass-through Entity and Contact Information for Awarding Official:

Community Development
Authority, County of Los Angeles/
City of Covina, Alana Mantilla
626-384-5443
12 Catalog of Federal Domestic Assistance (CFDA) Number and Name:

14.218
13 Identification of whether the Award is Research &
Development:

N/A
14 Indirect Cost Rate for the Federal Award: N/A

EXHIBIT C

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EXHIBIT D

SCOPE OF SERVICES
YWCA of San Gabriel Valley (YWCA or Contractor) shall perform all services under this Agreement in a skillful and competent manner, consistent with standards generally recognized as being employed by professionals in the same discipline in the State of California. YWCA represents and maintains that it is skilled in the professional calling necessary to perform the services. YWCA warrants that all employees and sub-Contractors shall have sufficient skill and experience to perform the services assigned to them. Finally, YWCA represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the services and that such licenses and approvals shall be maintained throughout the term of this Agreement. YWCA shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the services, including all Cal/OSHA requirements, and shall give all notices required by law.

YWCA will provide a maximum of twenty (20) hours of case management services fifty-two (52) weeks per year at the City’s designated Senior Center.

A. Contractor will be responsible for the following:

1. The goal of the YWCA Case Management program is to enable functionally impaired older persons to obtain services which will promote and maintain their optimum level of functioning in the least restrictive setting possible.

2. The Case Management program consists of, but is not limited to, the following services:
a. COMPREHENSIVE ASSESSMENT: Collecting necessary psychosocial and health information about a client in order to develop a care plan. b. CARE PLANNING: Writing an individual plan of care and services under a Case Management system based on a comprehensive assessment of the client's condition and/or resources.
c. SERVICE AUTHORIZATION AND/OR ARRANGEMENT: Obtaining services according to the individual care plan by coordinating existing community services, authorization for payment for services, or purchase of services. d. CASE MONITORING: Determining the quality and effectiveness of services provided to a client according to an individualized care plan, maintaining periodic client contact to determine if changes have occurred, and taking appropriate action as necessary.

3. Case Management services will be performed by the YWCA Case Manager. This staff person will provide a maximum of twenty (20) hours of Case Management services per week. Case Manger will meet clients by appointment at the City’s designated Senior Center

EXHIBIT D

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or other agreed upon site, such as YWCA office or client’s home. Total weekly hours may be increased with mutual consent.

4. During the twenty (20) hours of Case Management service under this Agreement, when the Case Manager is not servicing clients at the City’s designated Senior Center, the Case Manager will be performing assessments and re-assessments, service coordination, and case monitoring for Covina seniors in their homes or in the YWCA offices located in the City of Covina.

5. The overall Case Management program will operate out of the YWCA of San Gabriel Valley administrative office at 101 South Barranca Avenue in Covina, CA 91723 from 8 a.m. to 5 p.m. weekdays with a telephone answering device available to take messages twenty-four (24) hours per day.

6. The Case Manager will have a Bachelor's level degree in Social Work (or equivalent in work experience and/or education). The Case Manager will be supervised by the Director of YWCA of San Gabriel Valley.

7. A comprehensive common assessment tool will be used to assess each client's social resources, activities of daily living, physical health, and economic resources.

8. Clients eligible for Case Management services will include the following:
a. Frail, elderly, at-risk either physically or emotionally. b. Older persons at risk of inappropriate institutionalization. c. Older persons with multiple problems.
d. Older persons in crisis.
e. Other older persons determined to be appropriate for Case Management services by the Case Manager and approved by the Director of YWCA.

9. Each client will be assessed individually to determine: (a) whether the client is in need of Case Management or would be better assisted by a different service, and (b) major problem areas and services required by the client.

10. The assessment will be based on the results of the common assessment tool mentioned above and the Case Manager's own judgement as documented in the case file narratives.

11. The Case Manager will develop a problem solving procedure as follows:
a. Formulate a care plan with the client's input and approval. b. Discuss the care plan with the CMSW (Case Management Social Worker) Contractor and/or Director of YWCA, involved staff, and significant others.

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c. Arrange for necessary services with appropriate agencies, informed support networks, family members and significant others.

12. Case monitoring will consist of either a home visit or a telephone call as appropriate. In all contact with each client, case documentation will include, at a minimum, the following:
a. Date of contact.
b. Type of contact (telephone or home visit).
c. What transpired during contact.
d. Name of staff person (signature or initial) making contact. e. City of Covina CDBG Intake/Screening form.

13. In all cases, AND WITHOUT EXCEPTION, all case records, logs, files, and notes will remain private and confidential, and the property of the San Gabriel Valley YWCA, and will not be released to any agency, organization, city, or individual without the written consent of the client and approval of the Director of YWCA, consistent with the laws and statutes of the State of California then in force.

14. The Case Manager will review each case as follows:
a. Review progress of the care plan regularly (monthly at minimum) with the client. b. Follow-up with each service provider as needed.
c. As changes in client's situation and/or problem arise, re-assess, revise and/or develop a plan of action with input from all parties involved to implement a new plan and conduct follow-up as needed.
d. A full reassessment will be conducted every three (3) months.

15. The Case Manager will close a case when any of the following apply:
a. Problems are resolved and the client is again able to function independently. b. The client passes away.
c. The client is institutionalized.
d. The client requests or chooses to discontinue services. e. Need to develop closing summary/administrative closure of cases, and/or upon recommendation of Director of YWCA.

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f. The client has not required any additional services following ninety (90) days without case activity.

16. The Case Manager will receive consultation services from and be supervised by the Senior Manager of Integrated Care who possesses the appropriate level of professional education and experience in gerontology and case management.

17. The Case Manager will maintain time logs to the nearest one-quarter (1/4) hour of all direct individual client Case Management services provided to Covina clients under the following four (4) categories whether in the client's home or at the City’s designated Senior Center.
a. Comprehensive assessment
b. Care planning
c. Service authorization and/or arrangement
d. Case monitoring

18. The Case Management time logs will be copied and provided to the CITY on a monthly basis.

B. City will be responsible for the following:

1. Private meeting space will be provided at the City’s designated Senior Center for the Case Manager on a day and time agreed to by the CITY and YWCA.

2. Phone usage – The City will make available a phone for the Case Manager when calls to clients, other agencies, or YWCA administrative office are necessary.

3. Promotion of this program will be coordinated between the Parks & Recreation Supervisor and Director of YWCA or designee.

4. Promotion will consist of:
a. Covina Today magazine
b. Social media
c. City’s website

5. CDBG Intake forms will be provided to YWCA Case Manager

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 19
Meeting: June 18, 2024
Title: Award of Professional Services Agreement to Compressor Design & Services, Inc for Monthly Preventative Maintenance of the City’s Compressed Natural Gas (CNG) Station at the Public Works Yard
Presented by: Rafael M. Fajardo, Interim Director of Public Works/City Engineer Recommendation: Authorize the City Manager to execute a Professional Services Agreement with Compressor Design & Services, Inc. for monthly preventative maintenance of the City’s CNG station at the Public Works Yard for the period between July 1, 2024, through June 30, 2027, for an amount not-to-exceed $45,000 with the option to extend the agreement for an additional two (2) one-year terms through June 30, 2029.

EXECUTIVE SUMMARY/BACKGROUND:

The City of Covina owns and operates a Compressed Natural Gas (CNG) station for use by both internal and external customers. Since 2012, Southern California Gas Company (SoCalGas) has completed monthly preventative maintenance services of the CNG station in order to ensure the proper operation of the site. In March 2023, the City of Covina received a letter from SoCalGas stating it would not be providing preventative maintenance services to non-SoCalGas locations effective March 31, 2024. The City has continued preventative maintenance on an on-call basis while attempting to solicit proposals for a permanent maintenance solution.

DISCUSSION:

Staff solicited informal proposals from three companies providing CNG preventative maintenance and subsequently received only one proposal from Compressor Design & Services, Inc. Compressor Design & Services, Inc. provides maintenance/repairs for a variety of CNG compressors on behalf of public and private entities throughout the LA and High Desert areas. Staff has determined that Compressor Design & Services, Inc meets all required criteria to effectively maintain the City’s CNG station and recommends executing an agreement for preventative maintenance of the City’s CNG station (Attachment A).

Rank Vendor Location Cost
1 Compressor Design & Services, Inc Palm Desert, CA $45,000 2 Allsup Corporation Upland, CA No Response
3 Fastech Buena Park, CA No Response
The proposal submitted by Compressor Design & Services, Inc. provides semi-monthly preventative maintenance and offers services including but not limited to the following: inspection of all CNG Equipment at site including Inlet Suction, Gas Dryer, CNG Compressor Skids and Dispensers for proper operation. A more detailed breakdown of services is shown in the Compressor Design & Services, Inc’s proposal (Attachment B). Services rendered will commence beginning July 1, 2024.

FISCAL IMPACT:

The fiscal impact associated with the CNG Preventative Maintenance is approximately $15,000.00 per fiscal year for a total three-year cost not-to-exceed $45,000. Sufficient funding is available in account number: 6200-5520- 52490 (Environmental-Alternative Fuel-Maint-Other Equipment) for Fiscal Year 24-25. Funding for future fiscal years will be programmed in this account number during the City’s annual Budget process.

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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,

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ATTACHMENT A

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Compressor Design and Services, Inc a California corporation. (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor to provide preventative maintenance of the City of Covina’s Compressed Natural Gas (CNG) Station at the Public Works Yard.

B. Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

C. City desires to retain Consultant and Consultant desires to serve City to perform these services in accordance with the terms and conditions of this Agreement.

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2027 unless sooner terminated as provided in Section 14 of this Agreement. The City may, upon mutual agreement, extend the contract for two (2) additional one-year terms. In no event shall the contract be extended beyond June 30, 2029.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Forty-Five Thousand Dollars ($45,000) (the “maximum compensation”), based on the hourly rates set forth in the Approved Fee Schedule, attached hereto as Exhibit A. Any terms in Exhibit A, other than the payment rates and schedule of payment, are null and void.

B. Expenses. The amount set forth in paragraph A shall include reimbursement for all actual and necessary expenditures reasonably incurred in the performance of this Agreement.

C. Additional Services. City shall not allow any claims for additional services performed by Consultant, unless the City Council and the Consultant Representative authorize the additional services in writing prior to Consultant’s performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council shall be compensated at the rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.

3. Consultant’s Services.

A. Scope of Services. Consultant shall perform the services described in the Scope of Services, attached as Exhibit B. City may request, in writing, changes in the scope of services to

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be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.

B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Consultant Representative shall be William Brinson, Owner (the “Consultant Representative”). The Consultant Representative shall directly manage Consultant’s services under this Agreement. Consultant shall not change the Consultant Representative without City’s prior written consent.

C. Time for Performance. Consultant shall commence the services on the Effective Date and shall perform all services by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.

D. Standard of Performance. Consultant shall perform all services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

E. Personnel. Consultant has, or will secure at its own expense, all personnel required to perform the services required under this Agreement. All of the services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant shall determine the means, methods, and details by which Consultant’s personnel will perform the services under this Agreement. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the services and compliance with the customary professional standards.

F. Compliance with Laws. The Consultant shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including CNG Preventative Maintenance. Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit C.

G. Permits and Licenses. Consultant shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.

4. Method of Payment.

A. Invoices. Consultant shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount due. If City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

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B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.

C. Audit of Records. Consultant shall make all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this agreement available during Consultant’s regular working hours to City for review and audit by City.

5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Consultant may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Consultant.

6. Independent Contractor.

A. Consultant is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Consultant shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Consultant’s personnel require to perform any of the services required by this Agreement. Consultant shall perform the services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of the services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.

City may make a computer available to Consultant from time to time for Consultant’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.

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B. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of the services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

C. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section

6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

7. PERS Compliance and Indemnification.

A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform the services under this Agreement, Consultant shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

B. Indemnification. Consultant shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to

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Consultant’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential. Consultant shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Consultant shall return all data to City upon the expiration or termination of this Agreement. Consultant’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.

9. Conflicts of Interest. Consultant and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s services under this Agreement, including the Political Reform Act (Gov.

Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section 9 into any subcontract that Consultant executes in connection with the performance of this Agreement.

10. Indemnification.

A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.

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2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws.

City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2). 3) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 10 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.

B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Section 10, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Consultant’s indemnifications and obligations under this Section 10 shall survive the expiration or termination of this Agreement.

11. Insurance.

A. Minimum Scope and Limits of Insurance. Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Four Million Dollars ($4,000,000) per project or location.

If Consultant is a limited liability company, the commercial general liability coverage shall be

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amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Consultant has no employees while performing services under this Agreement, workers’ compensation policy is not required, but Consultant shall provide an executed declaration that it has no employees.

B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self insurance shall not be considered to comply with the insurance requirements under this Section 11.

C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming the City, its officers, employees, agents and volunteers as additional insureds.

D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section 11 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 11 is canceled or reduced in coverage or limits, Consultant shall, within two (2) business days of notice from the insurer, phone,

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fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

I. Evidence of Insurance. Prior to the performance of services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

J. Indemnity Requirements not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under Section 10 of this Agreement.

K. Subcontractor Insurance Requirements. Consultant shall require each of its subcontractors that perform services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 11.

12. Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for Consultant’s proper performance of the services required under this Agreement.

B. Consultant’s Cooperation. In the event any claim or action is brought against the City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

13. Records and Inspections. Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three (3) years. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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A. Right to Terminate or Suspend. City may terminate or suspend this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least seven (7) calendar days before the termination or suspension is to be effective. Consultant may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least sixty (60) calendar days before the termination is to be effective.

B. Obligations upon Termination. Consultant shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

15. Force Majeure. Consultant shall not be liable for any failure to perform its obligations under this Agreement if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

16. Notices. Any notices, consents, requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service during Consultant’s and City's regular business hours, or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:

If to City: If to Consultant:

Attn: Public Works, Engineering William Brinson, Owner
City of Covina Compressor Design & Services, Inc.
125 E. College Street 74885 Joni Drive, Suite 3
Covina, California 91723 Palm Desert, CA 92260

17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.

Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.

18. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release

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Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

19. No Third-Party Beneficiaries Intended. Except as otherwise provided in Section 10, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

20. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.

21. Exhibits. Exhibits A, B, and C constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.

22. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement.

23. Amendment of Agreement. This Agreement may be amended only by a writing signed by both parties. The City Manager is authorized to sign an amendment to this Agreement on the City Council’s behalf and without the City Council’s prior approval to make the following nonsubstantive modifications to the Agreement: (a) name changes; (b) extensions of time; (c) nonmonetary changes in the scope of work; and (d) termination of the Agreement.

24. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.

25. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

26. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.

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27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.

28. Attorneys’ Fees. In any litigation or other proceeding by which on party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgment.

29. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.

30. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]

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ATTACHMENT A
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

Name: Fabian Velez
Title: Chief Deputy City Clerk
Consultant:

Compressor Design & Services, Inc
a California Corporation
By:

Name:

Title:

By:

Name:

Title:
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents
authorize only one person to sign this
Agreement on behalf of the corporation.)

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EXHIBIT A

APPROVED FEE SCHEDULE

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EXHIBIT B

SCOPE OF SERVICES

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EXHIBIT C

CALIFORNIA LABOR CODE COMPLIANCE
(Labor Code §§ 1720 et seq., 1813, 1860, 1861, 3700)
If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code, then:

1. This Agreement is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”) and Consultant agrees to be bound by all the provisions thereof as though set forth in full herein.

2. Consultant shall be registered with the Department of Industrial Relations (“DIR”) in accordance with California Labor Code Section 1725.5 and has provided proof of registration to City prior to the Effective Date of this Agreement.

3. Consultant shall comply with the provisions of California Labor Code Sections 1771, 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The applicable prevailing wage determination(s) may be obtained at (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm), are on file with City, and are available to any interested party upon request. Consultant shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under this Agreement by Consultant or by any subcontractor.

4. Pursuant to California Labor Code Section 1771.4, Consultant’s services are subject to compliance monitoring and enforcement by the Department of Industrial Relations.

Consultant shall post job site notices as prescribed by DIR regulations and agrees to furnish the records specified in California Labor Code Section 1776 directly to the Labor Commissioner in the manner prescribed by California Labor Code Section 1771.4(a)(3) and (c)(2).

5. Consultant shall comply with the provisions of California Labor Code Section 1776 which, among other things, require Consultant and each subcontractor to: (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform City of the location of the records. Consultant is responsible for compliance with Section 1776 by itself and all of its subcontractors.

6. Consultant shall comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Consultant is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.

7. Consultant shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Consultant or by any subcontractor for each calendar day during which such

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worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.

8. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”
Date _______________ Signature ____________________________________

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1 | P a g e
www.compressordesignandservices.com
Compressor Design & Services ­ CNG Systems Division
CNG Compressor Preventive Maintenance Agreement
Date: May 14th, 2024
Main Office Address
Department of Public Works
125 E. College Street
Covina, CA 91723
Michael Flores Jr | Senior Management Analyst
626-384-5482
Equipment Location
Department of Public Works
125 E. College Street
Covina, CA 91723
Compressor Design & Services “Preventive Maintenance Agreement” for City of Covina Department of Public Works CNG Station.

Equipment: (1) “ANGI JGP/Q/2 100HP” CNG Compressor Packages.

Service Commencement Date July 1st, 2024
Service Completion Date June 30th, 2027

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ATTACHMENT B
2 | P a g e
www.compressordesignandservices.com
PM / Inspection Service
Jobsite service to include the following:
- Two Monthly site visits, to inspect all CNG Equipment at site including Inlet Suction, Gas Dryer, CNG Compressor Skids, Fill System’s, Time Fill Post’s, and Dispenser's for proper operation. - Record of all pertinent information for permanent record.

Specific Services
- Gas Leak Detection
- Suction Gas Dryer Dew Point Reading
- CNG Compressor Check to include oil level check, drain blow­down tank, cooler belt inspection, and all leaks to be addressed and noted for any additional required future service. - Check all HP CNG tube for leaks, Dispenser Supply / Isolation Valve operation and any issues with time fill posts.
- All service and maintenance procedures will follow the manufacturer’s recommendations as outlined in the ANGI Compressor Manual.

Service Intervals
- First Oil Change & Filter @ 1000 hours, and every 1000 hours thereafter. (Or annually) - Dryer, Inlet, and Discharge Filter Element replacement every 1000 hours - Valve Inspection @ every 8000 hours / Replace worn components as required. - Upper End Overhaul including “piston ring renewal” along with “valve replacement” @ 8000 hours - Complete Compressor Overhaul at 32000 hours or sooner if needed.

Labor Hour Estimate
Service Estimate (Oil Change/Valve/Overhaul Prices Per Compressor) Total - Twice Monthly Site Visits
- Dryer, Inlet, Interstage, and Discharge Filter
Service (1000 Hours or Annually)
- Oil Change Service (1000 Hours or
Annually)
- Valve Inspection Service (8000 Hours or
Annually)
- Upper End Overhaul/Bearing Inspection
(Every 8000 hours)
$ 1250 / Month
$ 750 + Parts
$ 450 + Parts
$ 1250 + Parts
$ 2250 + Parts

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3 | P a g e
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Service Calls Outside of Scheduled Visits
- Travel Included within hourly rate
- Hourly Rate: $ 105 with service agreement; $125 without Parts
- Additional ­ Supplied By “City of Covina Department of Public Works” as required. - Incidental Parts Supplied by Compressor Design & Services – Will have a mark­up. Any “shipping charges” will be invoiced as a “pass through” without any mark-up.

Terms of Sale
Notes: ­ Agreement subject to “30 day Notice of Cancellation” by either party. - All labor provided by CDSI shall have a warranty period of (60) days from date of service or repairs.
- Standard Parts Warranty (90) Days / CDSI shall have no liability whatsoever with respect to any defects within.
- All parts & additional services required will be first approved before ordering of parts and commencement of recommended required services.
- All City of Covina Department of Public Works “parts orders” shall be delivered to the City of Covina Department of Public Works facility:
125 E. College Street, Covina, CA 91723
FOB: Jobsite
Terms: Net 30 Days.

Scheduling: As required.

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4 | P a g e
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Agreement Accepted by:

Department of Public Works
125 E. College Street
Covina, CA 91723
Date
Compressor Design and Services
74885 Joni Drive, Suite 3
Palm Desert, CA 92260
Date
Signature
Signature
Michael Flores Jr
Department of Public Works
Senior Management Analyst
[email protected]
Will Brinson
Compressor Design and
Services
[email protected]
(442) 400-2700
06/04/2024

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 20
Meeting: June 18, 2024
Title: Accept a Grant in the Amount of $39,250 from the State of California Alcohol Beverage Control (ABC)
Presented by: David Povero, Chief of Police
Recommendation: 1. Adopt Resolution CC 2024-43 accepting grant allocation from the California Department of Alcohol Beverage Control in the amount of $39,250 and increasing the Police Department Fiscal Year 2024-25 budget by the same amount; and

2. Authorize the City Manager or his designee to sign all necessary documents associated with this grant including agreements and assurances that are forthcoming.

EXECUTIVE SUMMARY:

The Covina Police Department has been allocated $39,250 by the Department of Alcohol Beverage Control under the Alcohol Policing Partnership program. This program is intended to work with law enforcement to develop an effective, comprehensive and strategic approach to eliminate the crime and public nuisance issues associated with problem alcohol beverage outlets.

DISCUSSION:

The Covina Police Department will implement several operational programs including ABC's Minor Decoy, Shoulder Tap Programs and conduct Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) inspections. These Programs target both ABC licensed premises and individuals who furnish alcoholic beverages to the underage operators. The project is targeted to reduce underage drinking and the resultant DUI driving injuries and fatalities, and/or property damages. These programs help reduce youth access to alcoholic beverages through the education of licensee(s), enforcement intervention and maintaining the perception that law enforcement is omnipresent.

FISCAL IMPACT:

The adoption of Resolution CC 2024-43 will increase the Police Department's revenue fund 2230 by $39,250 and appropriation by the same amount. There is no negative budget impact since the entire grant expenditure is reimbursable.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

Respectfully submitted,

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ATTACHMENT A
RESOLUTION CC 2024-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,

COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, TO ACCEPT A

CALIFORNIA DEPARTMENT OF ALCOHOL BEVERAGE CONTROL
(ABC) GRANT ALLOCATION IN THE AMOUNT OF $39,250 AND
INCREASE THE POLICE DEPARTMENT 2024-25 BUDGET BY $39,250

AND APPROPRIATE SAME DOLLAR AMOUNT
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the City of Covina was been allocated $39,250 under the ABC’s grant called the Alcohol Policing Partnership Program; and
WHEREAS, utilizing this allocation will increase the Police Department’s appropriation by $39,250 and revenue accounts by the same amount; and WHEREAS, the reallocation of appropriations may be made by the City Manager, amendments (increases/decreases) to the Budget shall be by approval and Resolution of the City Council.

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

SECTION 1. Amend the fiscal year 2024-25 Police Department Budget as follows:

Revenue Account
22301130-42190-ABC Other State Grants Patrol-Other State Grant Revenue-Project ABC:

Increase by $39,250
Appropriation Account
22301130-50030-ABC Other State Grants- Patrol -Overtime- Project ABC: Increase by $39,250 SECTION 2. Authorize the City Manager or his designee to sign all necessary documents associated with this grant including agreements, assurances, prepared invoices to obtain the grant funds.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18
th day of June, 2024.

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Resolution CC 2024-43 Page 2 of 2
City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy Clerk of the City of Covina, do hereby certify that Resolution CC 2022-43 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18
th day of June, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 21
Meeting: June 18, 2024
Title: 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 Presented by: Brian K. Lee, AICP, Director of Community Development Recommendation: 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.

EXECUTIVE SUMMARY:

The Covina Housing Authority was activated on January 25, 2011 in response to the pending dissolution of the now-former Covina Redevelopment Agency (“RDA”). The former RDA was dissolved in 2012 pursuant to AB X1 26, and pursuant to Health and Safety Code Section 34176(b), the Authority became the housing successor to the former RDA. As such the Covina Housing Authority Board (“Authority”) has assumed the rights, powers, liabilities, duties, and obligations association with the housing activities of the former RDA. As such, the Housing Successor established the LMIHAF into which the Authority deposits all funds generated from housing assets.

The City, independent from the Authority, owns certain property consisting of approximately 20,000 square-feet of land located at the southeast corner of the combined parcels of 601 E. San Bernardino Road and 534 N.

Barranca Avenue, which is depicted in the Lease (Attachment “A”) as Exhibit “A” (“Property”). On June 21, 2022 the City Council and the Covina Housing Authority Board approved a Lease of the Property from the City to the Authority for a proposed future Navigation Center (“Center”). On December 5, 2023, this Lease was amended to extend certain deadlines within the Lease’s attachments in order to provide additional time for review and public feedback.

The Authority, as the housing successor to the former Covina Redevelopment Agency ("RDA"), has approximately $625,000 in its Low and Moderate Income Housing Asset Fund (“LMIHAF”) available for development, and it is proposed that the Lease be amended to commit these funds to additional prepayment of such rents, as discussed below. At future meetings the Authority Board will consider all aspects of the design, construction, maintenance and operation of the proposed Center and involve public outreach and feedback.

DISCUSSION:

The Lease between the City as landlord and the Housing Authority as tenant ends 55 years after the commencement of the Lease. The Lease requires the Authority to pay rent to the City in the amount of $64,000 per year, payable monthly, and subject to annual 3% increases. The obligation to pay rent commences on the earlier of the date when a Navigation Center is completed or the deadline in the Lease for the completion of a Navigation Center, which is currently September 30, 2025, unless the deadline is extended in accordance with the Lease. The current Lease allows for the Authority to prepay 18 years of rent to the City in the amount of $1,414,777.81, which is the present value of the rent calculated at the LAIF rate of the original Lease reference date of June 21, 2022.

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Funds in the LMIHAF may be used for monitoring and administrative expenses, homeless prevention, and rapid rehousing. A portion of those funds are also required to be used for the development of new affordable housing.

Additional funds committed under the Lease would serve this purpose. Development is defined as meaning the following categories: construction, acquisition and rehabilitation, substantial rehabilitation, acquisition of longterm affordability covenants on multifamily units, or the preservation of eligible assisted housing developments.

The Housing Authority is formally requesting to extend the rent prepayment by five years, resulting in a total of 23 years of prepaid rent under the 55-year Lease. This action does not extend the original Lease period. The extension of this rent prepayment will result in an additional expenditure of $515,057.41 from the LMIHAF using the present value calculation from the original Lease. This portion of the LMIHAF funds are unavailable to be used for other monitoring and administrative expenses as described previously and are subject to expenditure restrictions. Staff recommends that the City execute an amendment to the Lease (“Attachment B”) between the City, as landlord, and the Authority, as tenant, to allow the tenant to prepay additional rent.

FISCAL IMPACT:

The Authority will prepay an additional five years of rent to the City in the amount of $515,057.41, which is a budgeted expenditure under account 2020-4700-52990, using LMIHAF funds. The total rent prepaid for 23 years of the Lease will be $1,929,835.22. This action will have no impact on the General Fund.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

The proposed action of authorizing the City Manager/Executive Director to execute the Lease amendment on behalf of the City and Authority is Categorically Exempt per Section 15332, Class 32, of the State of California Environmental Quality Act (“CEQA”) Guidelines because any future considered development will be infill development consistent with the requirements set forth in CEQA Guidelines Section 15332. The proposed action is also exempt per CEQA Guidelines Section 15061(b)(3) and because this is an administrative activity of government which will not results in direct or indirect physical changes to the environment.

Respectfully submitted,

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GROUND LEASE
between

CITY OF COVINA,
a California municipal corporation
Landlord")
and

COVINA HOUSING AUTHORITY,
a California public entity
Tenant;")
June 21, 2022
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ATTACHMENT A

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TABLE OF CONTENTS
Page

1. Lease of Property 1

2. Term of Lease; Possession 1

2. 1 Term 1

2. 2 Possession 1

3. Rent; Use of Rent by Landlord Upon Failure to Complete Project; Possible Loan by City of Prepaid Rent for Construction of Project 2

3. 1 Rent 2

3. 2 Completion/ Operation of Project by Landlord Using Prepaid Rent 2

3. 3 Contingent Secured Construction Loan by Landlord from Prepaid Rent 2

3. 4 Place for Payment 3

4. Utilities 3

5. Net Lease 3

6. Use; Hazardous Materials; Compliance with Laws; Inspection 3

6. 1 Use ofProperty 3

6. 2 Hazardous Materials 4

6. 3 Compliance with Applicable Requirements 5

6. 4 Inspection 5

7. Construction and Installation of Improvements 6

7. 1 Improvements 6

7. 2 Construction Contracts 6

7. 3 Review of Plans and Permits 6

7. 4 Compliance with Law and Quality 6
1-
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TABLE OF CONTENTS ( cont.)
Page

7. 5 Notices of Nonresponsibility 7

7. 6 Mechanics' Liens 7

7. 7 Ownership of Improvements 7

8. Maintenance and Repairs 7

8. 1 Maintenance by Tenant 7

8. 2 Requirements of Governmental Agencies 8

8. 3 Tenant' s Duty to Restore Property 8

8. 4 Landlord' s Rights ofEntry 9

9. Indemnity and Insurance 9

9. 1 Exculpation of Landlord 9

9. 2 Indemnity 9

9. 3 Liability Insurance 10

9. 4 Broader Coverage; Increase in Insurance Coverage 10

9. 5 Fire and Casualty Insurance 10

9. 6 Specific Perils to Be Insured 11

9. 7 Evidence of Insurance 11

9. 8 Additional Insured Status 11

9. 9 Primary Coverage 12

9. 10 Notice of Cancellation of Insurance... 12

9. 11 Waiver of Subrogation 12

9. 12 Verification of Coverage 12

9. 13 Unavailability of Coverage 12

9. 14 Self- Insured Retentions 12
ii12926- 0001\ 2677251v4. doc

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TABLE OF CONTENTS ( cont.)
Page

9. 15 Special Risks or Circumstances 12

10. Intentionally Omitted 13

11. Assignment and Subletting 13

11. 1 Landlord' s Consent Required 13

11. 2 Additional Provisions Regarding Assignment and Transfer 13

12. Encumbrance of Leasehold Estate 15

12. 1 Tenant' s Right to Encumber 15

12. 2 Notice to and Service on Mortgagee 16

12. 3 Rights of Mortgagee 16

12. 4 Right of Mortgagee to Cure Defaults 17

12. 5 No Merger of Leasehold and Fee Estates 17

12. 6 Mortgagee as Assignee of Lease 17

12. 7 Mortgagee as Including Subsequent Security Holders 17

12. 8 Estoppel Certificates by Landlord 18

12. 9 New Lease to Mortgagee 18

12. 10 Surrender or Amendment 18

12. 11 Subordination 19

13. Default and Remedies 19

13. 1 Events of Default 19

13. 2 Remedies 19

13. 3 Landlord' s Performance of Tenant' s Obligations 20

13. 4 Remedies Cumulative 21

13. 5 Waiver of Breach 21
iii12926- 0001\ 2677251v4 doc

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TABLE OF CONTENTS ( cont.)
Page

14. Miscellaneous 21

14. 1 Tenant' s Duty to Surrender Property 21

14. 2 Holding Over 21

14. 3 Survival 21

14. 4 Force Majeure Delays 22

14. 5 Interest on Overdue Payments 22

14. 6 Attorneys' Fees 22

14. 7 Estoppel Certificates by Tenant 22

14. 8 Limitation on Landlord' s Liability 23

14. 9 Subordination; Attornment; Non- Disturbance 23

14. 10 Consents 23

14. 11 Reservations by Landlord 24

14. 12 Authority 24

14. 13 Quiet Enjoyment 24

14. 14 Notices 24

14. 15 Successors and Assigns 25

14. 16 Time of Essence 25

14. 17 Memorandum of Lease; Notice ofAffordability Covenants 25

14. 18 Counterparts 25

14. 19 Partial Invalidity 25

14. 20 Entire Agreement 25

14. 21 Amendments 25

14. 22 Construction of Lease 26
iv12926- 0001\ 2677251v4.doc

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TABLE OF CONTENTS ( cont.)
Pa2e

14. 23 Effect ofDelivery 26

14. 24 Effect on Landlord Governmental Capacity 26
v12926- 0001\ 267725Iv4. doc

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TABLE OF EXHIBITS
EXHIBIT " A" DESCRIPTION OF LAND
EXHIBIT" B" SCOPE OF DEVELOPMENT( DESCRIPTION OF IMPROVEMENTS) EXHIBIT " C" SCHEDULE OF PERFORMANCE
EXHIBIT " D" PERMITTED HAZARDOUS MATERIALS
EXHIBIT " E" FORM OF MEMORANDUM OF GROUND LEASE, AND USE

RESTRICTIONS
EXHIBIT" F" FORM OF NOTICE OF AFFORDABILITY COVENANTS
i12926- 0001\ 2677251v4. doc

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GROUND LEASE
THIS GROUND LEASE (the " Lease") is dated for reference purposes and entered into as of June 21, 2022, by and between the CITY OF COVINA, a California municipal corporation Landlord"), and the COVINA HOUSING AUTHORITY, a California public entity(" Tenant").

Recitals
A. Landlord owns the land more particularly described in Exhibit" A" attached hereto and any improvements thereon (" Property").

B. Tenant desires to lease the Property from Landlord, and complete the construction of the improvements described on Exhibit" B" (" Improvements" or" Project") in accordance with the schedule ( deadlines, subject to Force Majeure delays) set forth on Exhibit" C", and Landlord desires to lease the Property to Tenant, and require Tenant to timely complete the construction of such Improvements upon and subject to the terms and conditions set forth in this Lease, and thereafter maintain and operate them as a homeless " navigation center" providing free housing and services to homeless individuals and families who are extremely low income.

C. Construction and operation of the Improvements on the Property and providing homeless services will provide housing to homeless individuals and families, reduce the use by such individuals and families of other public areas as temporary dwelling space, reduce the burdens on the City of policing and cleaning such public areas, encourage new investment, and otherwise improve the economic and physical conditions in the City.

NOW THEREFORE, in consideration of the mutual promises contained herein, Landlord and Tenant agree as follows:

1. Lease of Property.

1. 1 Landlord hereby leases the Property to Tenant, and Tenant hereby leases the Property from Landlord, upon and subject to the terms hereinafter set forth.

2. Term of Lease; Possession.

2. 1 Term. The term of this Lease ( the " Term") shall commence on the date hereof and shall continue until the date that is fifty-five( 55) years thereafter; however, the extremely low income affordable housing restrictions herein shall survive the expiration of the Term, and continue until the date that is 55 years after the completion of the Project.

2. 2 Possession. Tenant shall be entitled to take possession ofthe Property upon the later of( i) the commencement of the Term; or( ii) when Tenant provides reasonable evidence to Landlord ( such as insurance certificates) that Tenant has obtained and is maintaining the insurance required of Tenant under Section 9 below. Tenant acknowledges that Tenant has inspected the Property and a title report for the Property, and Tenant accepts the Property in its existing condition, " AS IS", without representation or warranty( express or implied) and subject to all matters of record and all defects and conditions, whether patent or latent, and subject further to all legal requirements such as taxes, assessments, zoning, use permit requirements and 1-
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building codes, based solely on Tenant' s own inspection, analysis and evaluation and not in reliance on any information provided by or on behalf of Landlord.

3. Rent; Prepayment of Rent; Use of Rent by Landlord Upon Failure to Complete Project; Possible Loan by City of Prepaid Rent for Construction of Project.

3. 1 Rent. Commencing on the earlier of: (i) the date on which the Project is completed, or( ii) the deadline for completion of the Project in Exhibit" C" as extended pursuant to Section 14. 4 if applicable ( such earlier date being hereinafter referred to as the " Rent Commencement Date"), Tenant shall pay rent to Landlord for the Property at the rate of Sixty Four Thousand Dollars ($ 64, 000. 00) per year, increased on each anniversary of the Rent Commencement Date by three percent( 3%), which shall be prepaid for the first 18 years after the Rent Commencement Date by Tenant prior to the Rent Commencement Date ( such prepayment amount being$ 1, 414, 777. 81, which was calculated as a present value amount using a discount rate equal to the current LAIF interest rate that Landlord could obtain by investing such funds), and shall be payable for the period after the 18 year prepayment period in equal monthly installments, on the first business day of each calendar month, without notice, deduction or offset.

Tenant may also prepay additional rent at any time by paying the present value of the rent prepaid, using such discount/ interest rate then applicable to funds invested by Landlord.

3. 2 Completion/ Operation of Project by Landlord Using Prepaid Rent. Ifthis Lease is terminated by Landlord due to Tenant' s breach of its obligation under Section 7. 1 below to timely complete and operate the Improvements, or due to any other uncured Tenant default prior to completion and operation of such Improvements, then except to the extent such rent has been disbursed to Tenant as a construction loan under Section 3. 3 below, Landlord shall use the rent paid to Landlord to complete the Improvements itself, or shall use the rent for other affordable housing purposes permitted by California Health and Safety Code Section 34176. 1 and shall comply with applicable laws in connection therewith.

3. 3 Contingent Secured Construction Loan by Landlord from Prepaid Rent. If Tenant is unable, despite good faith efforts, to obtain adequate grant, conditional grant or forgivable loan funds/ financing on or before June 1, 2024 to complete the Improvements, then Landlord hereby commits and covenants to make Tenant a conditional secured grant ( or forgivable secured loan) from the rent paid by Tenant to Landlord, up to the entire amount of such rent, to the extent needed to finance the completion of the Improvements. Such construction loan shall be disbursed in increments, not more often that once every thirty days, after receipt of a written draw request from Tenant stating the amount ofthe disbursement requested and including reasonable evidence of the costs to be paid, and subject to other reasonable construction loan disbursement conditions.

Such loan shall be secured by the Tenant' s interest under this Lease, and shall be evidenced by a promissory note and leasehold deed of trust reasonably acceptable to Landlord.

The promissory note shall have an interest rate of three percent( 3%) per annum and a maturity date that is the expiration or earlier termination of this Lease, and will provide that the loan principal and accrued interest shall be repaid in annual installments from 100% of the annual 2-
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residual receipts" ( as defined in the promissory note, but consisting of the amount by which income from the Property exceeds costs of operating the Property and providing services to residents), but that principal outstanding on the maturity date will be forgiven.

The leasehold deed of trust shall be recorded and shall be a first lien on the Property, except that Landlord' s City Manager shall have the authority to execute and record reasonable subordination agreements subordinating the Landlord' s leasehold deed of trust to leasehold deeds of trust securing other financing for the Improvements.

3. 4 Place for Payment. All rent and other sums that become payable to Landlord under this Lease ( collectively, " Rent") shall be paid to Landlord on or before the due date in lawful currency of the United States at Landlord' s offices located at 125 E. College Street Covina, CA 91723, Attn: City Manager, or at any other place that Landlord may designate by written notice to Tenant.

4. Utilities. Tenant shall obtain, at Tenant' s expense, all electricity, gas, potable water, fire suppression water, sewer, waste water services and other services and utilities needed to operate the Improvements during the Term.

5. Net Lease. This Lease is a" triple- net" lease; all Rent shall be paid to Landlord absolutely net of all costs and expenses, except to the extent otherwise expressly provided in this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for all aspects of maintaining and operating the Property, including the payment when and as due of all real property assessments from time to time assessed against the Property, and for all charges for gas, electricity, telephone service, water, sewer service, trash removal and other utilities and services furnished to the Property during the Term; provided, however, that Landlord may at any time, in its discretion, pay any such assessments and charges that Tenant fails to pay when and as due, including, in Landlord' s discretion, any fees, penalties and charges assessed by reason of Tenant' s failure to make timely payment, in which case Tenant shall reimburse Landlord within five ( 5) business days after Landlord delivers written request for reimbursement. Tenant shall indemnify and hold Landlord' s property, including the Property and any improvements now or hereafter on the Property, free and harmless from any liability, loss, or damage resulting from any taxes, assessments, or other charges required by this Lease to be paid by Tenant and from all interest, penalties, and other sums imposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments, or other charges.

LANDLORD HEREBY GIVES TENANT NOTICE, AND TENANT

ACKNOWLEDGES RECEIPT OF SUCH NOTICE, AS REQUIRED PURSUANT TO CALIFORNIA REVENUE AND TAXATION CODE SECTION 107. 6, THAT THE

LEASEHOLD INTEREST CREATED BY THIS LEASE MAY RESULT IN A POSSESSORY

INTEREST TAX BEING LEVIED AGAINST THE PROPERTY AND/ OR TENANT' S

LEASEHOLD INTEREST, AND THAT, UNLESS TENANT IS EXEMPT, TENANT SHALL BE OBLIGATED TO PAY SUCH TAX.

6. Use; Hazardous Materials; Compliance with Laws; Inspection. 3-
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6. 1 Use of Property. Tenant shall use the Property for the development, construction, operation and maintenance of the Improvements described in Section 7. 1 below as a" navigation center", which shall include housing ( for no rent), and ancillary services to homeless individuals and families who are extremely low income ( as described in California Health and Safety Code Section 50106), and Tenant shall use reasonable efforts to obtain evidence oftheir income and shall retain such records to the extent required by law. Tenant shall include at least six ( 6) units of housing, and all housing shall comply with the preceding sentence. Tenant shall not use or permit the Property or any portion of the Property to be improved, developed, used, or occupied in any manner or for any purpose that is in any way in violation of any federal, state or local law, ordinance, or regulation; and Tenant shall not maintain, commit or permit the maintenance or commission of any fire or health hazards, or any nuisance, as now or hereafter defined by any statutory or decisional law applicable to the Property, on the Property or any part of the Property.

6. 2 Hazardous Materials.
a) Definitions.

Hazardous Materials" shall mean any substance that now or in the future requires investigation or remediation under, or is regulated or defined as a hazardous waste or hazardous substance by, any governmental authority or instrumentality or any law, regulation, rule or order, or any amendment thereto, including, without limitation, the Comprehensive Environmental Response Compensation and Liability Act, 42 U. S. C. § 9601 et seq. and the Resource Conservation and Recovery Act, 42 U. S. C. § 9601 et seq., or that is otherwise toxic, explosive, corrosive, flammable, infectious, mutagenic, radioactive, carcinogenic, a pollutant or a contaminant, including gasoline, diesel, petroleum hydrocarbons, polychlorinated biphenyls PCBs), asbestos, radon and urea formaldehyde foam insulation.

Environmental Requirements" shall mean all present and future governmental laws, regulations, rules, orders, permits, licenses, approvals, authorizations and other requirements of any kind applicable to Hazardous Materials, including common law tort principles ( such as public and private nuisance and strict liability for conducting abnormally dangerous activities).

Handle," " Handled" or" Handling" shall mean any installation, handling, generation, storing, treatment, use, disposal, discharge, release, manufacture, refinement, emission, abatement, removal, transportation, presence or migration of any Hazardous Materials brought on the Property by Tenant or Tenant' s Representatives, or any other activity or any type in connection with or involving Hazardous Materials.

Tenant' s Representatives" shall mean all Tenant' s officers, employees, contractors, representatives, assignees, sublessees, licensees, agents, invitees, and any trespassers on the Property.
b) Indemnification by Tenant. In addition to, and not in derogation of any other indemnification contained in this Lease, Tenant agrees to indemnify, defend and hold harmless Landlord, its successors and assigns, and its and their directors, officers, shareholders, employees, agents and affiliates from all costs, expenses, damages, liabilities, claims, fines, 4-
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penalties, interest, judgments, and losses of any kind arising from or in any way related to Tenant' s or Tenant' s Representatives' Handling of Hazardous Materials during the Term or failure to comply in full with this Section 6. 2 ( collectively, " Environmental Losses"), including consequential damages, damages for personal or bodily injury, property damage, damage to natural resources occurring on or off the Property, encumbrances, liens, costs and expenses of investigations, monitoring, clean up, removal or remediation of Hazardous Materials, defense costs of any claims ( whether or not such claim is ultimately defeated), good faith settlements, attorneys' and consultants' fees and costs, and losses attributable to the diminution of value, loss or use or adverse effects on marketability or use of any portion of the Property, whether or not such Environmental Losses are contingent or otherwise, matured or unmatured, foreseeable or unforeseeable. If Landlord is ever made a party to any action or proceeding by reason of a matter for which Tenant is obligated to indemnify Landlord, then Tenant, upon notice from Landlord, shall, at Landlord' s option, either defend that action or proceeding on behalf of Landlord at Tenant' s expense with counsel satisfactory to Landlord or reimburse Landlord for all defense costs Landlord actually incurs in defending against such action or proceeding, whether or not the action or proceeding is ultimately defeated. This indemnity is intended by the parties to be as broad and comprehensive as possible under law and shall apply regardless ofthe fault including active or passive negligence) of either Tenant or Landlord. c) Landlord' s Consent to Handling of Limited Hazardous Materials.

Except for Hazardous Materials described on Exhibit" D", Tenant and Tenant' s Representatives shall not Handle any Hazardous Materials at or about the Property without Landlord' s prior written consent, which consent may be granted, denied, or conditioned upon compliance with Landlord' s requirements, all in Landlord' s absolute discretion. d) Release of Hazardous Materials. In the event of any release, discharge or other event caused or contributed to by the acts or omissions of the Tenant or Tenant' s Representatives which poses a threat of damage or contamination to the Property or the environment, whether discovered by Landlord or Tenant, Tenant shall fully document the facts relating to the event, including the circumstances existing prior to and after the occurrence of the event, the precise nature ofthe release, discharge or event, including specific compounds and quantities involved, and all actions Tenant has taken and will take to remediate the release, discharge or event. Tenant shall provide such documentation to Landlord promptly after the occurrence in question. Tenant shall pay the reasonable costs and fees charged by Landlord' s environmental consultants to review such documentation and provide peer review confirming the adequacy of the measures, past and future, taken by Tenant to remediate the problem.

6. 3 Compliance with Applicable Requirements. Tenant, shall, at Tenant' s sole expense, fully, diligently and in a timely manner, comply with all applicable laws, building codes, regulations, ordinances, rules, directives, covenants, or restrictions of record( collectively, Applicable Requirements"), without regard to whether such Applicable Requirements are now in effect or become effective hereafter. Tenant shall, within ten ( 10) days after Landlord delivers written request to Tenant, provide Landlord with copies of all permits and other documents, and other information evidencing Tenant' s compliance with any Applicable Requirements specified by Landlord. Tenant shall immediately notify Landlord in writing( with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report 5-
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pertaining to or involving the failure of Tenant or the Property to comply with any Applicable Requirements.

6. 4 Inspection. Landlord' s consultants shall have the right, but not the obligation, to enter into the Property at any time in the case of an emergency, and otherwise at reasonable times upon at least 48 hours advance notice, for the purpose of( a) inspecting the condition ofthe Property and reviewing all permits, reports, plans and other documents regarding the Handling of Hazardous Materials, ( b) verifying compliance by Tenant with this Lease and( c) performing Tenant's obligations under Section 6. 2 if Tenant has failed to timely do so. The cost of any such inspections shall be paid by Landlord, unless a significant and material violation of Applicable Requirements or a contamination is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority other than Landlord. In such case, Tenant shall upon request reimburse Landlord for the reasonable cost of such inspections, so long as such inspections are reasonably related to the significant and material violation or contamination. Tenant shall pay, in any case, all such costs incurred pursuant to clause ( c) above.

7. Construction and Installation of Improvements.

7. 1 Improvements. At no cost to Landlord, Tenant shall cause to be performed all construction, alterations, additions and installations, required to complete the work described in the Scope of Development attached hereto as Exhibit" B" ( the " Improvements"), and shall comply with the schedule set forth in the Schedule of Performance attached hereto as Exhibit" C". Tenant' s failure to meet any of the deadlines in the Schedule of Performance, as the same may be extended in accordance with Section 14. 4 ofthis Lease, shall constitute an Event of Default" ( as defined in Section 13. 1). Material alterations to the completed Improvements shall require Landlord' s prior written consent, not to be unreasonably withheld.

7. 2 Construction Contracts. All Improvements and any alterations thereto Work") shall be performed only by competent and qualified contractors duly licensed under the laws of the State of California pursuant to written contracts with such contractors. Tenant shall enter into a general construction contract for any Work( the " General Construction Contract") with a contractor reasonably acceptable to Landlord requiring the contractor to cause the Work to be performed in a manner and timeframe consistent with the terms of this Lease.

Without limiting the conditions on which Landlord may grant its consent to any contractor, Landlord may require that such contractor furnish performance and payment bonds issued by a licensed corporate surety on terms and conditions and in amounts satisfactory to Landlord.

7. 3 Review of Plans and Permits. Landlord shall not be deemed to have reviewed any plans, drawings or specifications from an engineering or technical standpoint, and Landlord shall have no liability whatsoever to Tenant or any third party based on or arising out of any patent or latent defect in the design or construction of the Work, whether or not such defect is actually known or apparent to Landlord.

7. 4 Compliance with Law and Quality. Tenant shall cause all Work to be completed: ( a) in a workmanlike manner with only new and high quality building materials, (b) in compliance with all applicable building codes and other applicable laws, ordinances, 6-
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regulations, and orders of all federal, state, county, and local governmental agencies or entities having jurisdiction over the Property( including Landlord in its governmental capacity), and ( c) in compliance with all applicable insurance requirements. Without limiting the generality ofthe foregoing provisions, Tenant shall not permit any component of any Work to be commenced until all building permits and other governmental permits, licenses and approvals required in connection with such component of the Work have been issued.

7. 5 Notices of Non-responsibility. Landlord shall, at any and all times during the Term, have the right to post and maintain on the Property and to record as required by law any notice or notices of non-responsibility provided for by the mechanics' lien laws of the State of California. Tenant shall give Landlord not less than thirty( 30) days' written notice prior to the commencement of any Work( including site preparation work) or the delivery of building materials to the Property.

7. 6 Mechanics' Liens. At all times during the Term, Tenant shall keep the Property and all building and improvements now or hereafter located on the Property free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Property. Should Tenant fail to pay and discharge or cause the Property to be released from any such lien or claim of lien within thirty( 30) days after service on Tenant of written request from Landlord to do so, Landlord may pay, adjust, compromise and discharge any such lien or claim of lien on such terms and manner as Landlord may deem appropriate. In such event, Tenant shall, on or before the first day of the next calendar month following any such payment by Landlord, reimburse Landlord for the full amount paid by Landlord in paying, adjusting, comprising, and discharging such lien or claim of lien, including any attorneys' fees and other costs expended by Landlord, together with interest as provided in Section 14. 5 from the date of payment by Landlord to the date of repayment by Tenant.

7. 7 Ownership of Improvements. Any and all buildings and improvements placed or erected on the Property as well as any and all other alterations, additions, improvements and fixtures made or placed in or on the Property by Tenant ( except for Tenant' s furniture and trade fixtures, and any modular improvements or similar improvements that may be removed without substantial damage to the land--- and all such items may be removed and relocated by Tenant upon the expiration or earlier termination of this Lease) shall be owned by Tenant only until the expiration or any earlier termination of this Lease, shall be considered part ofthe real property ofthe Property, and shall remain on the Property and, without compensation to Tenant, on the expiration or any earlier termination of this Lease shall become the sole property of Landlord or, if Landlord so elects and upon written notice to Tenant, shall be demolished and removed by Tenant from the Property at Tenant' s sole expense. Tenant shall not remove any improvements from the Property, commit or permit any waste, or destroy or modify any improvements on the Property except as expressly permitted by this Lease.

8. Maintenance and Repairs.

8. 1 Maintenance by Tenant. At all times during the Term, Tenant shall, at Tenant' s own cost and expense, keep and maintain the Property( including all structural, nonstructural, interior, exterior, landscaped areas, systems, equipment, facilities, driveways, parking lots, fences, and signs) in good order, condition and repair( whether or not the portion of the 7-
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Property requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Tenant, and whether or not the need for such repairs occurs as a result of Tenant' s use, any prior use, the elements or the age of such portion of the Property). Tenant' s maintenance obligations shall include restorations, replacements and renewals when necessary to keep the Property and all improvements thereon in good order, condition and repair. Tenant shall, during the Term, keep the exterior appearance of all improvements on the Property in a first- class condition consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, exterior repainting. In keeping the Property in good order, condition and repair, Tenant shall exercise and perform good maintenance practices, specifically including the procurement and maintenance at Tenant' s expense of service contracts for HVAC equipment, any boiler and pressure vessels, fire protection systems, landscaping and irrigation systems, the roof and drains, and asphalt and parking lots, each with a contractor specializing and experienced in the maintenance of the applicable equipment or improvements. Upon the request of Landlord, Tenant shall provide Landlord with a complete and correct copy of each such service contract and any amendments thereto. Tenant' s maintenance obligations under this Section shall not be construed as limiting any right or requirement expressly provided for elsewhere in this Lease for Tenant to alter, modify, demolish, remove or replace any improvement. No deprivation, impairment or limitation of use resulting from any event or work contemplated by this Section shall entitle Tenant to any offset, abatement or reduction in rent nor to any termination or extension of the Term.

8. 2 Requirements of Governmental Agencies. At all times during the Term, Tenant shall, at Tenant' s own cost and expense:
a) make all alterations, additions, or repairs to the Property ( including the improvements and facilities on the Property) required by any law, ordinance, statute, order, or regulation now or hereafter made or issued by any federal, county, local, or other governmental agency or entity;
b) observe and comply with all laws, ordinances, statutes, orders, and regulations now or hereafter made or issued respecting the Property by any federal, county, local, or other governmental agency or entity; and
c) indemnify, defend and hold Landlord and the Property free and harmless from any and all liabilities, losses, damages, fines, penalties, claims, and actions resulting from Tenant' s failure to comply with the requirements of this Section 8.

8. 3 Tenant' s Duty to Restore Property. Should, at any time during the Term, any buildings or improvements now or hereafter on the Property be destroyed in whole or in part by fire or other casualty, Tenant, at Tenant' s own cost and expense, shall promptly proceed to obtain insurance proceeds and take all steps necessary to begin reconstruction and promptly and diligently commence the repair or replacement of the damaged or destroyed buildings or improvements according to the original final plans and specifications therefore or according to any modified plans and specifications that provide for improvements consistent in terms of size, design and quality with the original buildings and improvements. The Parties agree that events or conditions may preclude in some instances delay the immediate making of permanent repairs. 8-
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The Parties agree that in those instances Tenant shall make interim repairs that will protect the improvements from further deterioration and permit the continued use of the Property to the extent possible for the purposes for which they were demised, until repairs and replacements can be completed. In such event Tenant, upon demand, shall provide Landlord sufficient information for Landlord to satisfy itself that the time for making permanent repairs must be extended as reasonable beyond the time limits specified hereinbefore. In all other respects, the work of repair and restoration shall be done in accordance with the requirements for the original Improvements set forth in Section 7; provided that Tenant may reconstruct such other improvements on the Property as are consistent with applicable land use regulations and which are: ( i) approved by the City in its governmental capacity, and all other governmental agency or agencies with jurisdiction, and( ii) approved by Landlord under this Lease in its reasonable discretion. No deprivation, impairment or limitation of use resulting from any event or work contemplated by this Section shall entitle Tenant to any offset, abatement or reduction in Rent or to any termination or extension of the Term.

8. 4 Landlord' s Rights of Entry. Landlord and Landlord' s agents shall have the right to enter at reasonable hours after prior notice of the time and place of entry into and upon said portions of the Property as necessary for the purpose of ascertaining that the improvements on the Property are kept and maintained in good condition and repair as provided for in this Section 8 and that the terms of this Lease are observed.

9. Indemnity and Insurance.

9. 1 Exculpation of Landlord. Landlord shall not be liable to Tenant for any damage to Tenant or Tenant' s property for any cause, except for any damage to Tenant or Tenant' s property resulting from the negligence and/ or willful misconduct of Landlord or its employees, officers, agents or authorized representatives; however, in no event shall Landlord be liable for consequential damages consisting of lost profits or other damages in the nature of lost profits. Tenant waives all claims against Landlord except as provided in the previous sentence.

Subject to the foregoing provisions, Landlord agrees to, defend, indemnify and hold Tenant and its officers, directors, employees, agents and affiliates and their respective assets free and harmless against and from any and all liabilities, claims, losses, damages, and expenses including attorneys' fees and court costs) resulting from or arising out of Landlord' s failure to perform any of Landlord' s obligations under this Lease when and as required by the terms hereof.

9. 2 Indemnity. Tenant agrees to, and does hereby defend, indemnify and hold Landlord and its officers, directors, employees, agents and affiliates and their respective assets, including the Property and all improvements now or hereafter on the Property, free and harmless against and from any and all liabilities, claims, losses, damages, and expenses ( including attorneys' fees and court costs) resulting from or arising out of Tenant' s occupation and use of the Property, and activities of Tenant and its contractors, specifically including any liability, claim, loss, damage, or expense arising by reason of:
a) The death or injury of any person, including any person who is an employee or agent of Tenant, or the damage to or destruction of any property, including property 9-
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owned by Tenant or by any person who is an employee or agent of Tenant, from any cause whatsoever while such person or property is on the Property; b) Any work performed on the Property or materials furnished to the Property at the instance or request of Tenant or any person or entity acting for or on behalf of Tenant; or
c) Tenant' s failure to comply with any requirement of law or any requirement imposed on Tenant or the Property by any governmental agency or authority; d) Tenant' s failure to perform any of Tenant' s obligations under this Lease when and as required by the terms hereof; or
e) The inaccuracy of any representation made by Tenant to Landlord in this Lease.

9. 3 Liability Insurance. Tenant shall, at Tenant' s own cost and expense, secure promptly after execution of this Lease and maintain during the entire Term of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Tenant' s operation and use of the leased premises. The cost of such insurance shall be borne by the Tenant. Insurance is to be placed with insurers authorized to conduct business in the state of California with a current A.M. Best' s rating of no less than A:

VII, unless otherwise acceptable to the Entity, insuring Tenant and Landlord against loss or liability caused by or connected with Tenant' s occupation, use, disuse, or condition ofthe Property under this Lease in amounts not less that:
a) Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an " occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than$ 2, 000, 000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/ location ( ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit; and b) Automobile Liability: ISO Form Number CA 00 01 covering any auto ( Code 1), or if Contractor has no owned autos, hired, ( Code 8) and non- owned autos ( Code 9), with limit no less than $ 1, 000, 000 per accident for bodily injury and property damage c) Property insurance against all risks ofloss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision.

9. 4 Broader Coverage; Increases in Insurance Coverage. If the Tenant maintains broader coverage and/ or higher limits than the minimums shown above, Landlord shall be entitled to the broader coverage and/ or the higher limits maintained by the Tenant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Landlord. Not more frequently than each three years, if, in the reasonable opinion of Landlord, the amount of public liability and property insurance coverage at that time is not adequate, Tenant shall increase the insurance coverage as reasonably required by Landlord.
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9. 5 Fire and Casualty Insurance. Tenant shall, at Tenant' s own cost and expense, at all times during the Term, keep all buildings, improvements, Tenant' s personal property and other structures on the Property, as well as any and all additions thereto, insured for their actual cash, full replacement value ( as defined below), by insurance companies authorized to issue such insurance in the State of California and having a rating of not less than " A- 13" as set forth in the then current Best' s Insurance Guide, against loss or destruction by fire and the perils commonly covered under the standard extended coverage endorsement to fire insurance policies in the geographic area in which the Property are located. Each insurance policy shall be issued in the names of Landlord, Tenant and any Mortgagee, as their interests may appear. Each insurance policy shall provide that any loss payable under such insurance shall be payable in Trust to Landlord and Mortgagee as loss payees.

9. 6 Specific Perils to Be Insured. Notwithstanding anything to the contrary contained in Section 9. 4, the insurance required by Section 9. 4 shall, whether or not included in the standard extended coverage endorsement mentioned in Section 9. 4, insure all buildings, improvements, and other structures on the Property, as well as any and all additions thereto, against loss or destruction by windstorm, typhoon, tidal wave, explosion, riot, riot attending a strike, civil commotion, acts of terrorism, sabotage or other warlike acts, malicious mischief, vandalism, aircraft, fire, smoke damage and sprinkler leakage. Furthermore, the insurance required by Section 9. 4 during the performance of the Work shall have course of construction, vandalism, and malicious mischief clauses attached insuring the Work during construction and all materials delivered to the Property for their actual cash full replacement value. For purposes of this Section 9. 5, the " full replacement value" of any building or other improvements to be insured shall be determined by the company issuing the insurance policy at the time the policy is initially obtained. Every two years thereafter, either party hereto shall have the right to notify the other party hereto that it elects to have the replacement value re- determined by any insurance company. The redetermination shall be made promptly in accordance with the rules and practices of the Board of Fire Underwriters, or a like board recognized and generally accepted by the insurance company, and each party shall be promptly notified of the results by such company. The insurance policy or policies shall be adjusted accordingly to reflect the redetermined value.

9. 7 Evidence of Insurance. Prior to entering the Premises for any purpose, Tenant shall deliver to Landlord insurance certificates showing that Tenant has obtained and is maintaining the insurance required by this Section 9. Upon written request of Landlord, Tenant shall deliver to Landlord a complete and correct copy of each insurance policy required by this Section 9. All insurance policies required by express provisions of this Lease shall be nonassessable and shall contain language to the effect that( a) any loss shall be payable notwithstanding any act or negligence of Landlord that might otherwise result in the forfeiture of the insurance, ( b) that the insurer waives the right of subrogation against Landlord, and ( c) the policies are primary and non- contributing with any insurance that may be carried by Landlord.

9. 8 Additional Insured Status. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Tenant including materials, parts, or equipment furnished in connection with such work or operations. General liability 11-
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coverage can be provided in the form of an endorsement to the Tenant' s insurance ( at least as broad as ISO Form CG 20 10).

9. 9 Primary Coverage. For any claims related to this contract, the Tenant' s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Tenant' s insurance and shall not contribute with it.

9. 10 Notice of Cancellation of Insurance. Each insurance policy required by this Section 9 shall contain a provision that it cannot be cancelled or materially changed for any reason unless 30 days' prior written notice of such cancellation or change is given to Landlord in the manner required by this Lease for service of notices on Landlord by Tenant.

9. 11 Waiver of Subrogation. Tenant hereby grants to Entity a waiver of any right to subrogation which any insurer of said Tenant may acquire against Landlord by virtue of the payment of any loss under such insurance. Tenant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not Landlord has received a waiver of subrogation endorsement from the insurer.

9. 12 Verification of Coverage. Tenant shall furnish Landlord with original Certificates of Insurance including all required amendatory endorsements ( or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Landlord before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Tenant' s obligation to provide them. Landlord reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

9. 13 Unavailability of Coverage. Notwithstanding anything to the contrary contained in this Section 9, should insurance coverage meeting all the requirements set forth in this Section 9 be unavailable due to circumstances beyond the control of Tenant, Tenant and Landlord shall agree as to substitute coverage which shall to the greatest extent possible meet the requirements set forth in this Section 9, provided that any substitute coverage shall not be less than insurance coverage available to and actually obtained for comparable industrial facilities in the State of California.

9. 14 Self-Insured Retentions. Self-insured retentions must be declared to and approved by Landlord. At the option of Landlord, either: The Tenant shall obtain coverage to reduce or eliminate such self-insured retentions as respects Landlord, its officers, officials, employees, and volunteers; or the Tenant shall provide a financial guarantee satisfactory to Landlord guaranteeing payment oflosses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the selfinsured retention may be satisfied by either the named insured or Landlord. 12-
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9. 15 Special Risks or Circumstances. Landlord shall have the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

10. [ INTENTIONALLY OMITTED]

11. Assignment and Subletting.

11. 1 Landlord' s Consent Required. Except as expressly provided within Section 11. 1 or in Section 12 below, Tenant shall not voluntarily or by operation of law assign, encumber or otherwise transfer this Lease or any right or interest in, under or to this Lease or the Property, or except for extremely low income homeless individuals and families housed at the Property without charge to them and as needed to provide ancillary services to them, permit all or any portion of the Property to be occupied by anyone other than Tenant, without the express prior written consent of Landlord in Landlord' s sole and absolute discretion. Tenant shall promptly deliver copies of all proposed subleases to Landlord. A change in the control of Tenant shall be deemed to constitute an assignment requiring Landlord' s consent. The transfer, on a cumulative basis during the Term, of a majority of the voting control of Tenant shall constitute a change in control for this purpose. Any such assignment without the prior written consent of Landlord, whether voluntary or involuntary, by operation of law or otherwise, shall be void and shall constitute an Event of Default. A consent by Landlord to any one assignment or other transfer shall not be deemed to be a consent to any subsequent assignment or transfer. Without limiting the matters that may be considered by Landlord in determining whether to consent to any requested assignment or transfer, Landlord may take into account the proposed assignee' s or transferee' s financial strength and ability to perform all ofthe obligations of Tenant under this Lease.

11. 2 Additional Provisions Regarding Assignment and Transfer. a) Each request for consent to an assignment, subletting or transfer shall be in writing, accompanied by information relevant to Landlord' s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or transferee, including the intended use and/ or required modification ofthe Property, if any, together with a fee of$ 1, 000. 00 ( increased by three percent( 3%) on each anniversary ofthe date of this Lease) to compensate Landlord for considering and processing such request. Tenant shall also reimburse Landlord for Landlord' s reasonable attorneys' fees incurred in connection with any such assignment or subletting for which Landlord' s consent is required. Tenant agrees to provide Landlord with such other or additional information and documentation as may be reasonably requested.
b) Landlord' s consent to any assignment, subletting or transfer shall not constitute a consent to any subsequent assignment, subletting or transfer. c) Any assignee of this Lease shall, by reason of accepting such assignment or entering into such sublease, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed 13-
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or performed by Tenant during the term of said assignment, other than such obligations as are contrary to or inconsistent with provisions of an assignment to which Landlord has specifically consented to in writing.
d) No assignee shall have a right further to assign or sublet without complying with this Section 11.
e) If an assignment is approved by Landlord, then the assigning Tenant shall pay to Landlord one hundred percent( 100%) of the amount of any payments and other economic consideration received by Tenant( whether before or after the date of such adjustment) as a result of any assignment, less actual, documented brokerage commissions and reasonable attorneys' fees incurred and paid in connection with the assignment and all reasonable, documented out- of-pocket costs incurred by the assigning Tenant in the design or construction of the Improvements provided all relevant contracts, plans and improvements are assigned and conveyed to the assignee in writing and a copy of the assignment is delivered to Landlord. Such remittance shall be payable to Landlord as additional Rent under this Lease without affecting or reducing any other obligation of Tenant hereunder. 0 The term of any sublease shall not extend beyond the Term. g) Each sublease shall by its own terms be expressly subject to all of the terms, covenants and conditions of this Lease, and Tenant shall remain fully liable to Landlord for the payment of rents and performance of all other obligations under this Lease. h) Each sublease shall contain a provision, satisfactory to Landlord, that upon the termination of this Lease for any reason, at Landlord' s election either( i) the sublease shall terminate or( ii) the sublessee shall attorn to Landlord and pay rent and perform all of the other obligations of the sublessee under its sublease directly to Landlord. i) Each sublease shall contain a provision, satisfactory to Landlord, prohibiting the payment of rent more than one month in advance. j) Each sublease shall contain a provision, satisfactory to Landlord, that if Tenant defaults under this Lease and fails to deliver to Landlord any security deposit or prepaid rent paid to Tenant by a subtenant under such sublease, then ( i) Landlord shall have no obligation or liability to such subtenant for the return of any security deposit or prepaid rent paid to Tenant, ( ii) such subtenant shall be solely responsible to pursue its rights and remedies against Tenant for recovery of any security deposit or prepaid rent paid to Tenant, and ( iii) such subtenant shall deliver to Landlord, within thirty( 30) days after demand by Landlord, a security deposit in the same amount as set forth in such sublease, and notwithstanding any prepayment by such subtenant of rent to Tenant, shall be obligated to pay to Landlord rent set forth in such sublease commencing upon termination of this Lease and notice thereof to such subtenant by Landlord.
k) Promptly after execution of any sublease or an amendment to any sublease, Tenant shall deliver to Landlord a complete and correct copy of the fully executed and effective sublease or amendment, including all exhibits and attachments. 14-
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1) Tenant shall not charge rent to homeless individuals or families housed at the Property. Subject to the foregoing, Tenant hereby assigns and transfers to Landlord all of Tenant' s interest in all rent payable to Tenant under any sublease, and Landlord may collect such rent and apply same toward Tenant' s obligations under this Lease; provided, however, that until an Event of Default shall have occurred under this Lease, Tenant may collect such rent, subject to Section 11. 2( g). Landlord shall not, by reason ofthe foregoing or any assignment of such sublease, nor by reason of the collection of any rent thereunder, be deemed liable to the sublessee for any failure of Tenant to perform and comply with any of Tenant' s obligations to such sublessee. Tenant hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Landlord stating that an Event of Default exists under this Lease, to pay to Landlord all rent due and to become due under the sublease. The sublessee shall rely upon any such notice from Landlord and shall pay such rent to Landlord without any obligation or right to inquire as to whether such Event of Default exists, notwithstanding any claim from Tenant to the contrary.
m) Upon the occurrence of any Event of Default under this Lease, Landlord may, at its option, require sublessee to attorn to Landlord, in which event Landlord shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, that Landlord shall not be liable for any prepaid rent or security deposit paid by such sublessee ( except to the extent actually paid over to Landlord) or for any prior defaults of such sublessor.

12. Encumbrance of Lease.

12. 1 Tenant' s Right to Encumber. Tenant may, at any time and from time to time during the Term, encumber to any bank, insurance company, governmental entity or other institutional lender or maker of a so- called" conditional grant" or forgivable loan", herein called Mortgagee," by deed of trust( the " Security Instrument"), all of Tenant' s interest under this Lease and the leasehold estate hereby created ( the " Leasehold Estate") for any purpose or purposes without the consent of Landlord, provided that:
a) the Security Instrument and all rights acquired under it shall, by its express terms, be subject to each and all of the covenants, conditions and restrictions stated in this Lease and to all rights and interests of Landlord; b) Tenant shall deliver to Landlord: ( i) a complete and correct copy of the Security Instrument and all related promissory notes, loan agreements, security agreements, indemnity agreements, guarantees, financing statements and other loan documents executed by Tenant or for Tenant' s benefit in connection therewith( the " Loan Documents"), each as fully executed and delivered, within five business days after the execution thereof, and ( ii) a complete and correct of the recorded Security Instrument, conformed by the recorder to show the date or recordation and other recording information, within five business days after the date of recordation;
c) the Security Instrument shall expressly provide that any proceeds from fire or extended coverage insurance shall be used to repair or rebuild the damaged or destroyed improvements on the Property;
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d) the Security Instrument shall contain a provision that all notices of default under the Loan Documents must be sent to Landlord and Tenant and that Landlord shall have ten ( 10) business days in which to cure any default after the time for Tenant to cure it has expired ( provided that if Landlord requires possession of the Property in order to cure the default, then Landlord shall have, in addition to such ten ( 10) business day period, such further time as is needed to terminate Tenant' s right to possession of the Property), and neither Landlord' s right to cure any default nor any exercise of such right shall constitute an assumption of liability under any Loan Document;
e) Tenant shall immediately reimburse Landlord for the cost of any default cured by Landlord with interest thereon as provided in Section 14. 5; and f) no encumbrance incurred by Tenant pursuant to this Section or otherwise shall, and Tenant shall not have power to incur any encumbrance that will, constitute in any way a lien or encumbrance on Landlord' s fee title to the Property or on any other interest of Landlord in the Property.

12. 2 Notice to and Service on Mortgagee. If Tenant executes any Security Instrument in accordance with Section 12. 1, Landlord shall mail to Mortgagee a duplicate copy of any and all notices Landlord may from time to time give to or serve on Tenant pursuant to or relating to this Lease. Tenant shall at all times keep Landlord informed in writing of the name and mailing address of Mortgagee and any changes in Mortgagee' s mailing address. Any notices or other communications permitted by this or any other Section ofthis Lease or by law to be served on or given to Mortgagee by Landlord shall be deemed duly served on or given to Mortgagee when deposited in the United States certified or registered mail, first- class postage prepaid, addressed to Mortgagee at the last mailing address for Mortgagee furnished in writing to Landlord by Tenant or Mortgagee.

12. 3 Rights of Mortgagee. If Tenant executes any Security Instrument in accordance with Section 12. 1 and then defaults under the related Loan Documents, Mortgagee shall have the right during the Term to the extent permitted by the Loan Documents to realize on the security afforded by the Security Instrument by instituting judicial or nonjudicial foreclosure proceedings and pursuing all other remedies available at law or in equity or under the Loan Documents, subject to the following provisions:
a) Mortgagee shall not acquire or thereafter assign to any third party less than Tenant' s entire interest in this Lease;
b) Mortgagee' s acquisition of Tenant' s interest under this Lease by purchase at Mortgagee' s foreclosure sale, or the acquisition of Tenant' s interest under this Lease by mortgagee or an affiliate of Mortgagee ( such affiliation to be material and shown by reasonable evidence delivered to Landlord) by acceptance of an assignment in lieu of foreclosure, and Mortgagee' s or such affiliate' s transfer of such interest to another person or entity after such acquisition, shall not be considered an assignment of this Lease and therefore shall not be subject to any of the conditions and restrictions applicable to assignments contained in Section 11, but from and after the date of such acquisition, Mortgagee and any transferee shall 16-
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be bound by all ofthe terms and conditions ofthis Lease except as otherwise expressly provided in Section 12. 6;
c) The acquisition of Tenant' s interest under this Lease by any person or entity other than Mortgagee by purchase at Mortgagee' s foreclosure sale, and the acquisition of Tenant' s interest under this Lease by Mortgagee or an affiliate of Mortgagee by acceptance of an assignment in lieu of foreclosure, shall not be considered an assignment of this Lease and therefore shall not be subject to all of the conditions and restrictions applicable to assignments contained in Section 11; and
d) An acquisition of Tenant' s interest under this Lease described in clause( c) above may be financed by such person or entity by encumbering to any new Mortgagee by a new Security Instrument encumbering Tenant' s entire Leasehold Estate, provided that such encumbrance and such Mortgagee shall be subject to all of the terms and conditions of this Section 12.

12. 4 Right of Mortgagee to Cure Defaults. If Tenant executes any Security Instrument in accordance with Section 12. 1, then before Landlord may terminate this Lease because of any default under this Lease by Tenant, Landlord must give written notice of the default to Mortgagee and afford Mortgagee the opportunity after service of the notice to cure the default within ( a) five ( 5) business days after date of notice where the default can be cured by the payment of money to Landlord or some other person or( b) the minimum period of time reasonably required to effect a cure ( but in no event more than 90 days) where the default cannot, by its nature, be cured solely by the payment of money. Upon the full performance by Mortgagee of the obligation or obligations the nonperformance of which was the subject of the notice of default given to Mortgagee pursuant to this Section, such default shall be deemed cured and shall no longer give rise to any rights and remedies of Landlord; provided, however, that Mortgagee' s cure of any default under this Lease by Tenant shall not excuse or waive any future default under this Lease by Tenant or preclude or limit the exercise of any rights or remedies afforded Landlord under this Lease as a result of such future default.

12. 5 No Merger of Leasehold and Fee Estates. While any Security Instrument remains in effect, there shall be no merger without the consent of Mortgagee of the Leasehold Estate and the fee estate in the Property merely because both estates have been acquired or become vested in the same person or entity.

12. 6 Mortgagee as Assignee of Lease. No Mortgagee shall be liable to Landlord as the successor to the rights and obligations of Tenant under this Lease unless and until such Mortgagee acquires the Leasehold Estate through foreclosure or other proceedings in the nature of foreclosure or as a result of an assignment in lieu of foreclosure or other action or remedy. Notwithstanding any provision to the contrary contained elsewhere in this Lease, Mortgagee shall not be liable for any Event of Default that may occur after the effective date of any such further assignment.

12. 7 Mortgagee as Including Subsequent Security Holders. No transfer by Mortgagee of its lien or security interest on or in the Leasehold Estate shall be valid or effective as against Landlord until Mortgagee shall have given Landlord written notice of the name, 17-
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address, telephone number and email address ( for notices) of the transferee. The term Mortgagee" as used in this Lease shall mean not only the initial institutional lender named as beneficiary, mortgagee, or secured party in the Security Instrument, but also any institutional lenders that may subsequently acquire the lien or security interest created by the Security Instrument.

12. 8 Estoppel Certificates by Landlord. Landlord from time to time and within ten ( 10) days the written request of Tenant or any Mortgagee, shall furnish a written statement that this Lease is in full force and effect and that there is no default hereunder by Tenant, or if there is a default, such statement shall specify the default which Landlord claims to exist, provided that Landlord shall not be required to deliver more than three such statements during any 12- month period.

12. 9 New Lease to Mortgagee. If, while any Security Instrument is in effect, this Lease shall be terminated prior to the stated expiration hereof for any reason not related to damage or condemnation ( including, without limitation, termination in any bankruptcy of the Tenant), then Landlord upon request by Mortgagee will enter into a new lease with Mortgagee for the remainder of the Term, effective as of the date of such termination, at the Rent and on the terms specified in this Lease, subject to the following conditions:
a) Mortgagee shall make written request to Landlord for such new lease within thirty( 30) days after the date of such termination and such written request shall be accompanied by a payment to Landlord of all sums then due to Landlord under this Lease; b) Mortgagee shall pay to Landlord, at the time ofthe execution and delivery of such new lease, any and all sums which would at the time of the execution and delivery thereof be due under this Lease but for its termination, and in addition thereto, any reasonable expenses, including attorneys' fees and court costs, to which Landlord shall have been subject by reason of any default by Tenant;
c) Mortgagee shall perform all other obligations required to have been performed under this Lease by Tenant to the extent that Tenant shall have failed to perform such obligations;
d) Upon the execution and delivery of such new lease, any subleases which may have theretofore been assigned and transferred to Landlord shall thereupon be assigned and transferred by Landlord to the new Tenant, without recourse to Landlord; and e) The new lease shall commence and rent and all obligations shall accrue as of the date of termination of this Lease. The new lease shall be superior to and have priority over all encumbrances, liens, conveyances and interests upon and in the Property, other than those of record to which this Lease may be subject as ofthe date hereof. f) This Section 12. 9 shall survive the termination of this Lease.

12. 10 Surrender or Amendment. There shall not be any cancellation, mutual termination, surrender, or acceptance of surrender ofthis Lease, or any or amendment ofthis Lease that is materially adverse to Tenant, without the prior written consent of Mortgagee, which 18-
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consent shall not be unreasonably withheld and shall be deemed granted if contrary notice is not received by Landlord within five business days after Mortgagee' s consent is requested.

12. 11 Subordination. Landlord' s rights under this Lease with respect to fire or other property insurance proceeds that become payable because of damage to or destruction of any improvements on the Property and with respect to compensation or damages awarded or payable because ofthe taking of any improvements on the Property by eminent domain shall be subject and subordinate to the rights of Mortgagee under the Security Instrument; provided, however, that nothing in this Section 12. 11 shall be construed as a subordination of or encumbrance on Landlord' s fee title to the Property.

13. Default and Remedies.

13. 1 Events of Default. Any ofthe following events shall constitute an " Event of Default" under this Lease:
a) Tenant fails to timely pay rent;
b) Tenant fails to pay any other sums due Landlord within five ( 5) business days after written notice from Landlord that the same is due and payable; c) Tenant fails to timely construct the Improvements in accordance with the terms of Section 7. 1;
d) Tenant assigns this Lease or sublets in violation of Section 11; or e) Tenant fails to perform fully and when due any of its other covenants, conditions or obligations under this Lease and after written notice from Landlord specifying the nature of such failure of Tenant, Tenant: ( i) does not promptly commence taking all necessary and appropriate actions to remedy such failure, or( ii) does not thereafter diligently and continuously pursue all such remedial actions, or( iii) does not fully cure such failure within the minimum period oftime reasonably required under the circumstances to achieve a cure, but in any event within ninety( 90) days after Landlord' s written notice of such failure, time being strictly ofthe essence; provided, however, that Tenant shall not be entitled to cure the breach of any covenant that is " non- curable".

13. 2 Remedies. Upon the occurrence of any Event of Default, and without the giving of any additional notice not otherwise required hereunder or by law, Landlord may exercise the following rights and remedies in addition to all other rights and remedies provided by law or equity, either cumulatively or in the alternative:
a) Maintain this Lease and Tenant' s right to possession of the Property in effect and continue to enforce all of Landlord' s rights and remedies hereunder, including the remedy described in California Civil Code Section 1951. 4 ( granting the landlord the right to continue a lease in effect after a tenant' s breach and abandonment and to recover all rent as it becomes due ifthe tenant has the right to sublet or assign, subject only to reasonable limitations) provided that upon Landlord' s election of such remedy, Landlord may not unreasonably withhold its consent to any assignment or subletting. Acts of maintenance or 19-
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preservation or efforts to re- let the Property or the appointment of a receiver upon initiative of Landlord to protect Landlord' s interest under this Lease shall not constitute a termination of this Lease or Tenant' s right to possession unless written notice oftermination is given by Landlord to Tenant.
b) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the State of California. The expiration or termination of this Lease and/ or the termination of Tenant' s right to possession shall not relieve Tenant from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the Term or by reason of Tenant' s occupancy of the Property.
c) Upon an Event of Default by Tenant, in addition to the foregoing remedies, City shall also be entitled to terminate Tenant' s right to possession of the Property by written notice to Tenant, in which case this Lease shall terminate and Tenant shall immediately surrender possession ofthe Property to Landlord. In such event Landlord shall be entitled to recover from Tenant: ( i) the unpaid Rent that had been earned at the time of termination; plus ii) the worth at the time of award ofthe amount by which the unpaid Rent that would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus ( iii) the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus ( iv) any other amounts necessary to compensate Landlord for all the detriment caused by Tenant' s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including the cost of recovering possession of the Property, expenses of re- letting, including necessary renovation and alteration ofthe Property, reasonable attorneys' fees. The worth at the time of award ofthe amount referred to in clause ( iii) ofthe immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent( 1%). If termination ofthis Lease is obtained through the provisional remedy of unlawful detainer, Landlord shall have the right to recover in such proceeding any unpaid Base Rent and damages as are recoverable therein, or Landlord may reserve the right to recover all or any part thereof in a separate suit. If any notice required under Section 13. 1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Tenant under the unlawful detainer statute shall also be deemed to constitute the notice required by Section 13. 1. In such case, any applicable grace period required by Section 13. 1 and the unlawful detainer statute shall run concurrently, and the failure of Tenant to cure the Event of Default within the greater of the two such grace periods shall constitute both an unlawful detainer and an Event of Default entitling Landlord to the remedies provided for in this Lease and/ or by said statute. If a notice is required under Section 13. 1 is given, Tenant expressly agrees that it shall satisfy the notice requirements of the unlawful detainer statutes and laws.

13. 3 Landlord' s Performance of Tenant' s Obligations. If Tenant fails to perform any affirmative duty or obligation under this Lease within ten ( 10) days after written notice ( or in case of an emergency, without notice), the Landlord may, at its option, perform such duty or obligation on Tenant' s behalf, including the obtaining of reasonably required bonds, insurance policies, or governmental permits, licenses and approvals. The costs and expenses of any such performance by Landlord shall be due and payable by Tenant upon Landlord' s written 20-
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demand. If any check given to Landlord by Tenant shall not be honored by the bank upon which it is drawn, Landlord, at its option, may require that all future payments by Tenant to Landlord be made by bank cashier' s check.

13. 4 Remedies Cumulative. The remedies given to Landlord in this Section shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law and elsewhere provided in this Lease.

13. 5 Waiver of Breach. The waiver by Landlord of any breach of Tenant of any of the provisions ofthis Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by Tenant either of the same or a different provision of this Lease. No waiver, benefit, privilege or service voluntarily given or performed by either party shall give the other any contractual right by custom, estoppel or otherwise. The subsequent acceptance of rent pursuant to this Lease shall not constitute a waiver of any preceding default by Tenant other than default in the payment of the particular rental payment so accepted, regardless of Landlord' s knowledge of the preceding breach at the time of accepting the rent, nor shall acceptance of rent or any other payment after termination constitute a reinstatement, extension or renewal ofthe Term or revocation of any notice or other act by Landlord.

14. Miscellaneous.

14. 1 Tenant' s Duty to Surrender Property. At the expiration or any earlier termination of the Term, Tenant shall surrender to Landlord the possession of the Property and all improvements and fixtures installed or constructed by or for Tenant thereon free and clear of all claims to or against them by Tenant or any third person or party. Subject to the provisions of Section 7. 7, Tenant shall leave the surrendered property in good, safe and broom- clean condition. All property that Tenant is required to surrender shall become Landlord' s property at termination of this Lease, or, if Landlord so elects and upon written notice to Tenant, shall be demolished and removed by Tenant at Tenant' s sole expense, and all property that Tenant is not required to surrender but that Tenant does not remove shall become Landlord' s property at termination of this Lease, or, if Landlord so elects and upon written notice to Tenant, shall be demolished and removed by Tenant at Tenant' s sole expense. If Tenant fails to surrender the Property at the expiration or earlier termination of this Lease, Tenant shall defend and indemnify Landlord from all liability and expense resulting from the delay or failure to surrender, including claims made by any succeeding tenant or any purchaser or prospective purchaser founded on or resulting from Tenant' s failure to surrender.

14. 2 Holding Over. This Lease shall terminate without further notice at the expiration of the Term. Notwithstanding Landlord' s acceptance of Rent after expiration or any earlier termination ofthe Term, any holding over by Tenant shall not constitute a renewal or extension of the Term or give Tenant any rights in or to the Property. Nothing contained herein shall be construed as a consent by Landlord to any holding over by Tenant.

14. 3 Survival. Each obligation of Tenant' s obligations under this Lease that, by its nature, is to be, or may need to be, performed after the expiration or any earlier termination of this Lease shall survive such expiration or termination. 21-
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14. 4 Force Majeure Delays. Except as otherwise expressly provided in this Lease, should the performance of any act required by this Lease to be performed by either Landlord or Tenant be prevented or delayed by reason of any act of God, strike, war, lockout, labor trouble, or inability to secure materials ( but not by reason of delay in the issuance of any required governmental permit, license or approval unless the delay is unusual and unjustified under the circumstances), the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused; provided, however, that that nothing contained in this Section shall excuse the full payment when due of any Rent payable by Tenant or the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act; and provided further that any such extension of the time for performance shall not affect the commencement or expiration of the Term.

14. 5 Interest on Overdue Payments. All Rent and other sums of any nature that Tenant fails to pay to Landlord when due under any provision of this Lease or that Landlord pays to any third party on behalf of Tenant pursuant to any provision of this Lease shall bear interest from the date due to Landlord or paid by Landlord, as applicable ( the " Due Date"), at the lesser of the maximum rate permitted by law or rate of ten percent( 10%) per annum, accruing daily but not compounded. Such interest shall be payable immediately and without the necessity of any demand by Landlord. The fact that Landlord is entitled to interest under this Section shall not be construed to excuse or mitigate any default by Tenant.

14. 6 Attorneys' Fees. In the event either party brings a suit, action or other proceeding against the other party that in any way relates to or arises out of this Lease, the prevailing party( meaning the party that obtains substantially the relief sought by it) shall be entitled to have and recover from the other party all costs and expenses ofthe suit, action or proceeding, including attorneys' fees, from the commencement of the suit, action or proceeding through the entry ofjudgment. The trial court shall determine which party is the prevailing party as well as the amount of attorneys' fees and costs to be awarded immediately following the entry ofjudgment( and without awaiting any appeal) in a post- trial proceeding such as is conducted when a cost bill is submitted. If an appeal is timely filed and ifthe awarding or amount of attorneys' fees and costs is at issue in the appeal, then the appellate court( or the trial court, acting pursuant to an order of the appellate court) shall determine such issue, and the recoverable attorneys' fees and costs shall include those incurred through the entry of final judgment following the appeal.

14. 7 Estoppel Certificates by Tenant. Tenant shall within ten ( 10) days after written notice from Landlord execute, acknowledge and deliver to Landlord an estoppel certificate in writing, in form similar to the then most current " Tenancy Statement" form published by the American Industrial Real Estate Association, plus such additional information, confirmation and statements as may be reasonably requested by Landlord. Any such statement by Tenant may be given by Landlord to any prospective purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may rely conclusively upon such statement as true and correct. If Tenant does not deliver such statement to Landlord within such 10- day period, Landlord and any prospective purchaser or encumbrancer may conclusively presume that: ( a) the terms and provisions ofthis Lease have not been changed except as otherwise represented by Landlord; ( b) this Lease has not been canceled or terminated except as otherwise represented by 22-
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Landlord; ( c) not more than one month' s Base Rent has been paid in advance; and ( d) Landlord is not in default under this Lease. In such event, Tenant shall be estopped from denying the truth of any such presumption. If Landlord desires to finance, refinance, or sell the Property or any part thereof, Tenant shall deliver to any potential lender or purchaser designated by Landlord such financial statements as may be reasonably required by such lender or purchaser, including Tenant' s financial statements for the past three years. All such financial statements shall be received by Landlord and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.

14. 8 Limitation on Landlord' s Liability. The obligations of Landlord under this Lease shall not constitute personal obligations of Landlord' s councilmembers, officers, employees or affiliates, and Tenant shall not seek recourse against Landlord' s individual councilmembers, officers, employees or affiliates, or any of their personal assets for such satisfaction.

14. 9 Subordination; Attornment; Non- Disturbance.
a) Subordination. Subject to paragraph( c) below, this Lease shall be subject and subordinate to any deed of trust or other hypothecation or security device collectively, " Security Device"), now or hereafter placed by Landlord upon the Property, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Tenant agrees that the holders of any such Security Devices shall have no liability or obligation to perform any ofthe obligations of Landlord under this Lease. b) Attornment. Subject to paragraph ( c) below, Tenant agrees to attorn to any lender or any other party who acquires ownership of the Property by reason of a foreclosure of a Security Device, and in the event of such foreclosure, such new owner shall not i) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership, ( ii) be subject to any offsets or defenses that Tenant might have against any prior lessor, or( iii) be bound by any prepayment of more than one calendar month' s Base Rent.
c) Non-Disturbance. Tenant' s subordination of this Lease shall be subject to receiving a commercially reasonable non- disturbance agreement( a" Non- Disturbance Agreement") from the lender to the effect that Tenant' s possession of the Property shall not be disturbed so long as Tenant is not in default hereunder and attorns to the record owner of the Property.
d) Self-Executing. The agreements contained in this Section shall be effective without the execution of any further documents; provided, however, that, upon the written request of Landlord or any lender in connection with a sale, financing or refinancing of the Property, Tenant and Landlord shall execute such further writings as may be reasonably required to separately document the subordination, attornment and non- disturbance agreement provided for herein.

14. 10 Consents. Whenever the consent, approval, judgment or determination of Landlord is required or permitted under any provision of this Lease, Landlord' s City Manager 23-
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may give the same provided it is in writing. Landlord' s actual reasonable costs and expenses including architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Tenant for any Landlord consent, including consents to an assignment, a subletting or the presence or use of a Hazardous Materials, shall be paid by Tenant upon receipt of an invoice and supporting documentation therefor. Landlord' s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Event of Default by Tenant of this Lease exists, nor shall such consent be deemed a waiver of any then- existing Event of Default, except for any waiver as may be otherwise specifically stated in writing by Landlord at the time of such consent. The failure to specify herein any particular condition to Landlord' s consent shall not preclude the imposition by Landlord at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. The review or approval by Landlord of any item to be reviewed or approved by Landlord under the terms of this Lease shall not impose upon Landlord any liability for accuracy or sufficiency of any such item or the quality or suitability of such item for its intended use. Any such review or approval is for the sole purpose of protecting Landlord' s interest in the Property or under this Lease, and no third parties, including Tenant or the representatives and visitors or Tenant or any person or entity claiming by, through or under Tenant, shall have any rights hereunder.

14. 11 Reservations by Landlord. Landlord reserves to itself the right, from time to time and without the consent or joinder of Tenant, to grant such easements, rights and dedications as Landlord may deem necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Property by Tenant. Tenant agrees to sign any documents reasonably requested by Landlord to effectuate any such easement rights, dedication, map or restrictions.

14. 12 Authority. Each individual executing this Lease on behalf of Landlord or Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease on such party' s behalf. Each party shall, within thirty( 30) days after written request, deliver to the other party satisfactory evidence of such authority.

14. 13 Quiet Enjoyment. Tenant shall and may peacefully and quietly have, hold and enjoy the Property hereby demised, for the Term, on the terms and subject to the conditions contained in this Lease.

14. 14 Notices. All notices required or permitted by this Lease shall be in writing and may be delivered by personal delivery, or overnight courier or may be sent by certified mail, with postage prepaid, and shall be deemed sufficiently given if served in a manner specified in this Section. Until changed by a notice given in accordance with the provisions ofthis Section, the respective addresses of Landlord and Tenant for the purpose of receiving notices required or permitted by this Lease are as follows:

Landlord: City of Covina
125 E. College Street
Covina, CA 91723
Attention: City Manager
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Tenant: Covina Housing Authority
125 E. College Street
Covina, CA 91723
Attention: Executive Director
Any notice sent by certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon.

Notices delivered by overnight courier that guarantee next day delivery shall be deemed given on the next business day after delivery of the same to the courier. Notices personally delivered shall be deemed delivered upon actual delivery/ receipt, as shown by reasonable evidence ( such as affidavit of the person who is delivering or receiving on behalf of a party). If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

14. 15 Successors and Assigns. This Lease shall be binding on and enforceable by, and shall inure to the benefit of, Landlord and Tenant and their respective successors, and assigns, subject to the provisions of Section 11.

14. 16 Time of Essence. Time is of the essence of each provision of this Lease in which time is a factor.

14. 17 Memorandum of Lease; Notice of Affordability Covenants. Concurrently with their execution of this Lease, Landlord and Tenant shall execute and acknowledge a memorandum of this Lease in the form ofExhibit" E", and a Notice of Affordability Covenants in the form attached hereto as Exhibit" F", and shall record them in the Official Records of Los Angeles County.

14. 18 Counterparts. This Lease may be executed in counterparts, all of which together shall constitute one and the same document.

14. 19 Partial Invalidity. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Lease shall remain in full force and effect unimpaired by the holding.

14. 20 Entire Agreement. This Lease constitutes the sole and complete agreement between Landlord and Tenant regarding the subject matter hereof.

14. 21 Amendments. This Lease may be modified only by a written instrument signed by the parties in interest at the time ofthe modification. Tenant agrees to make such reasonable non- monetary modifications to this Lease as may be reasonably required by a lender in connection with any financing or refinancing of the Property, provided that such modifications do not materially change Tenant' s obligations hereunder. Landlord agrees to make such reasonable non- monetary modifications to this Lease as may be reasonably required by Tenant' s lender in connection with any financing or refinancing of the Improvements or any Work including, without limitation, a reasonable additional cure period based on the lender' s need to obtain possession by receiver or foreclosure in order to cure non- monetary defaults), provided 25-
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that such modifications do not materially increase Landlord' s obligations hereunder or materially decrease Landlord' s rights.

14. 22 Construction of Lease. This Lease shall be construed fairly as to all parties and not in favor of or against any party, regardless of which party prepared this Lease.

Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions of the sections and paragraphs of this Lease are for convenience only and do not define or limit any terms or provisions. Unless otherwise specifically provided, references in this Lease to sections, paragraphs and exhibits shall be to sections, paragraphs and exhibits of or to this Lease.

All exhibits hereto are incorporated herein by the references thereto in this Lease. The use in this Lease of the word " include" or any derivative thereof shall be construed as providing examples or illustration only and shall not limited the generality of any provision in which it is used. As used in this Lease, the term " business day" means any day on which commercial banks are open for business in the State of California, and the term " day" means a calendar day when not expressly stated to be a business day. If any period or deadline specified in this Lease ends or falls on a day that is not a business day, such period or deadline shall be extended to end or fall on the next succeeding business day. Wherever used in this Lease, the symbol "$" refers to dollars in currency ofthe United States of America.

14. 23 Effect of Delivery. The delivery of any unexecuted draft of this Lease shall not constitute an offer by the delivering party or otherwise bind the delivering party or create any enforceable rights in favor of the other party. This Lease shall not be binding or enforceable unless and until it is executed and delivered by both Landlord and Tenant.

14. 24 Effect on Landlord Governmental Capacity. Although Landlord is a governmental entity, none of Landlord' s consents, approvals or performance of obligations under this Lease shall constitute consents, approvals or acts in the Landlord' s governmental capacity, but shall only constitute consents, approvals and acts by Landlord in its proprietary capacity as the landlord under this Lease.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the date first above written.

LANDLORD: TENANT:

CITY OF COVINA, COVINA HOUSING AUTHORITY
a municipal corporation
By: Q.J144#`4'
By: Print Name: Chris Marcarel 1 o
Print Name: Chris Marcarel10 Title: Executive Director
Title: City Manager
ATTEST:
26-
12926- 0001\ 2677251v4. doc

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Fabian Vel , C44y C - Peptriy Ci Cl2rk
27-
12926- 0001\ 2677251v4. doc

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EXHIBIT " A"

DESCRIPTION OF LAND
THAT PORTION OF LOT 53 OF TRACT NO. 14799, IN THE CITY OF

COVINA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS
PER MAP RECORDED IN BOOK 313, PAGES 9, 10 AND 11, INCLUSIVE OF MAPS AND THAT PORTION OF LOT 2 IN SECTION 13, TOWNSHIP 1 SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN, IN THE

CITY OF COVINA, COUNTY OF LOS ANGELES, STATE OF

CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF THE SURVEY

OF SAID LAND ON FILE IN THE BUREAU OF LAND MANAGEMENT,
WHICH IS DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 53;
THENCE ALONG THE EASTERLY LINE OF SAID LOT 53 AND ITS NORTHERLY PROLONGATION, NORTH 00° 13' 48" WEST, 292. 00 FEET;

THENCE DEPARTING SAID NORTHERLY PROLONGATION,
SOUTH 89° 45' 52" WEST, 87. 00 FEET;
THENCE SOUTH 00° 13' 48" EAST, 167. 67 FEET;
THENCE SOUTH 40° 33' 36" EAST, 60. 00 FEET;
THENCE SOUTH 01° 13' 48" EAST, 82. 24 FEET TO THE SOUTHERLY LINE OF SAID LOT 53 AND THE NORTHERLY RIGHT- OF- WAY LINE OF SAN BERNARDINO RD. ( 33. 00' NORTHERLY HALF WIDTH);
THENCE ALONG SAID SOUTHERLY LINE OF LOT 53 AND THE
NORTHERLY RIGHT- OF- WAY LINE OF SAN BERNARDINO RD., NORTH 85° 25' 51" EAST, 48. 31 FEET TO THE POINT OF BEGINNING. 12926- 0001\ 2677251v4. doc

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EXHIBIT " B"

SCOPE OF DEVELOPMENT/ DESCRIPTION OF IMPROVEMENTS/ PROJECT The City of Covina Navigation Center will consist of the following major development features:

1. Perimeter fencing of not less than 6 feet in height and not more than 10 feet in height. The perimeter fencing would consist of decorative metal, wood( or synthetic wood), masonry block and/ or a combination of all those materials.

2. Administrative Center building consisting of administrative offices, meeting rooms, restrooms, small classroom( s) and computer lab/ work stations.

3. Restroom/ shower facilities ( either permanent or modular).

4. Laundry facility ( modular).

5. Warming kitchen ( modular).

6. Storage lockers ( modular).

7. Modular living quarters--- at least 6 units of housing ( but all housing built shall be subject to the extremely low income and affordability requirements of the Lease, and such requirements shall survive the expiration of the term of the Lease to the extent provided in the Lease).

8. Dog run.

9. Outdoor dining area.

10. Surface parking/ loading area.

11. Utility service ( electricity, water, sewage).
12926- 0001\ 2677251v4. doc

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EXHIBIT " C"

SCHEDULE OF PERFORMANCE ( DEADLINES)

1. December 1, 2023. Construction of new driveway entrance from San Bernardino Road into the City of Covina Public Works Yard (with new surface parking lot).

2. June 1, 2024. Installation of perimeter fencing, modular facilities, administrative facilities, utilities and similar features.

3. December 1, 2024. Completion; begin Navigation Center operations. 12926- 0001\ 2677251v4.doc

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EXHIBIT " D"

PERMITTED HAZARDOUS MATERIALS

1. Hazardous materials normally and customarily used in the development, construction and operation of developments similar to the project described in this Lease that are used, stored, transported and disposed of in accordance with all applicable laws.

2. Minor quantities of hazardous materials normally and customarily used by tenants/ subtenants of developments similar to the Property that are used, stored, transported and disposed ofin accordance with all applicable laws. 12926- 0001\ 2677251v4. doc

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EXHIBIT " E"

FORM OF MEMORANDUM OF GROUND LEASE AND USE RESTRICTIONS Attached.)
12926- 0001\ 2677251v4. doc

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AMENDMENT TO GROUND LEASE
This AMENDMENT TO GROUND LEASE( this " Amendment") is dated as of December 5, 2023 ( the " Effective Date") and is entered into by and between the CITY OF COVINA, a municipal corporation(" Lessor"), and the COVINA HOUSING AUTHORITY Lessee").

RECITALS
A. The Lessor and Lessee are parties to that certain Ground Lease dated June 21, 2022.

B Lessor and Lessee desire to amend the Lease as hereinafter set forth.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Lessee hereby agree as follows. 1 New Exhibit" C" ( Schedule of Performance) Exhibit" C" to the Lease is hereby deleted and the attached new Exhibit" C" is hereby substituted in lieu thereof.

2. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.
3 Time of Essence. Time is of the essence of every provision hereof and the new Exhibit C in which time is a factor
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written.

LESSOR. LESSEE

CITY OF COVINA COVINA HOUSING AUTH RITY
By
Print Name CHy°,l S MflV.U# LLO By
Print Name- C+ 11216 ( Yl I4-KG- 12- EU,O Title: CIS`( MA N KM. Title: tXECIA,TI V E 1II2-IGTO(2—

ATTESTATTEST
City Clerk
a:

AP" • , , - TO FORM.
ice . y, City Attorney
1-
12923- 0001\ 2881375v1. doc Page 514 of 2700
EXHIBIT " C"

SCHEDULE OF PERFORMANCE ( DEADLINES)
1 September 30, 2024 Construction of new signalized intersection entrance from San Bernardino Road into the City of Covina Public Works Yard( with new surface parking lot)

2. March 30, 2025 Installation ofperimeter fencing, modular facilities, administrative facilities, utilities and similar features.
3 September 30, 2025 Completion, begin Navigation Center operations. 12923- 0001\ 2881375v1. doc Page 515 of 2700

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-1-
12923-0001\2938882v1.doc ATTACHMENT B

SECOND AMENDMENT TO GROUND LEASE
This SECOND AMENDMENT TO GROUND LEASE (this “Amendment”) is dated as of June 18, 2024 (the “Effective Date”) and is entered into by and between the CITY OF COVINA, a municipal corporation (“Lessor”), and the COVINA HOUSING AUTHORITY (“Lessee”).

RECITALS
A. The Lessor and Lessee are parties to that certain Ground Lease dated June 21, 2022 and amended it by an Amendment to Ground Lease dated December 5, 2023.

B. Lessor and Lessee desire to amend the Lease as hereinafter set forth.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Lessee hereby agree as follows:

1. Rent. Section 3.1 of the Lease is hereby deleted and the following is substituted in lieu thereof:
“3.1 Rent. Commencing on the earlier of: (i) the date on which the Project is completed, or (ii) the deadline for completion of the Project in Exhibit “C” as extended pursuant to Section 14.4 if applicable (such earlier date being hereinafter referred to as the “Rent Commencement Date”), Tenant shall pay rent to Landlord for the Property at the rate of Sixty Four Thousand Dollars ($64,000.00) per year, increased on each anniversary of the Rent Commencement Date by three percent (3%), which shall be prepaid for the first 23 years after the Rent Commencement Date by Tenant prior to the Rent Commencement Date (such prepayment amount being $1,929,835.22, which was calculated as a present value amount using a discount rate equal to the LAIF interest rate of the original Lease reference date of June 21, 2022 that Landlord could obtain by investing such funds), and shall be payable for the period after the 23 year prepayment period in equal monthly installments, on the first business day of each calendar month, without notice, deduction or offset.

Tenant may also prepay more rent at any time by paying the present value of the rent prepaid, using such discount/interest rate then applicable to funds invested by Landlord.”

2. Section 3.3 of the Lease is hereby deleted and the following is substituted in lieu therefore:
“3.3 Contingent Secured Construction Loan by Landlord from Prepaid Rent. If Tenant is unable, despite good faith efforts, to obtain adequate grant, conditional grant or forgivable loan funds/financing on or before March 30, 2025 to complete the Improvements, then Landlord hereby commits and covenants to make Tenant a conditional secured grant (or forgivable secured loan) from the rent paid by Tenant to

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-2-
12923-0001\2938882v1.doc
Landlord, up to the entire amount of such rent, to the extent needed to finance the completion of the Improvements. Such construction loan shall be disbursed in increments, not more often that once every thirty days, after receipt of a written draw request from Tenant stating the amount of the disbursement requested and including reasonable evidence of the costs to be paid, and subject to other reasonable construction loan disbursement conditions.

Such loan shall be secured by the Tenant’s interest under this Lease, and shall be evidenced by a promissory note and leasehold deed of trust reasonably acceptable to Landlord. The promissory note shall have an interest rate of three percent (3%) per annum and a maturity date that is the expiration or earlier termination of this Lease, and will provide that the loan principal and accrued interest shall be repaid in annual installments from 100% of the annual “residual receipts” (as defined in the promissory note, but consisting of the amount by which income from the Property exceeds costs of operating the Property and providing services to residents), but that principal outstanding on the maturity date will be forgiven.”

3. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.

4. Time of Essence. Time is of the essence of every provision of this Lease in which time is a factor.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written.

LESSOR:

CITY OF COVINA
By:

Print Name: _______________________
Title: ______________________________
ATTEST:

City Clerk
APPROVED AS TO FORM:
________________________________
Candice Lee, City Attorney
LESSEE:`

COVINA HOUSING AUTHORITY
By:

Print Name:

Title:

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12923-0001\2938882v1.doc

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 22
Meeting: June 18, 2024
Title: Acceptance of California Highway Patrol Grant Funding Presented by: David Povero, Chief of Police
Recommendation: 1. Approve Resolution CC 2024-44 accepting $427,120.68 in grant funding from the Cannabis Tax Fund Grant Program (CTFGP) under the California Highway Patrol;

2. Increase the Police Department FY 2024-25 budget to allocate said funding; and

3. Authorize the City Manager or his designee to execute the grant documents that are forthcoming.

EXECUTIVE SUMMARY:

Similar to last year, police staff applied for State grant funding under the Cannabis Tax Fund Grant Program (CTFGP). The program is designed to help law enforcement agencies reduce and mitigate the impacts of impaired driving in the community. On June 6, 2024, the Covina Police Department received an award letter informing the Department that it will receive $427,120.68 to conduct operations and purchase equipment to improve traffic safety. This is the third time in three years that the Covina Police Department has successfully received funding from this program.

DISCUSSION:

The CTFGP provides financial assistance to public agencies for the education, prevention and the enforcement of laws related to driving under the influence of alcohol and other drugs including cannabis. The intent of the grant program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, improve agency’s effectiveness through training and development of new strategies.

The goals of participating in this grant program is to implement strategies and practices to reduce the number of individuals killed and injured in crashes involving alcohol, drugs and other primary collision factors. Strategies will include impaired driving enforcement, DUI check points, and warrant services. The program will also concentrate on traffic enforcement operations focusing on primary collision factors, distracted driving, night-time seat belt enforcement, special enforcement operations, encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian collisions, and education programs. These efforts are vital for Covina since we have a very active downtown district that has numerous bars, restaurants and entertainment venues. Impaired patrons impact public safety when they drive home after consuming large amounts of alcohol.

Overall, the grant funds will be used for a combination of staff overtime and equipment in order to reduce the number of persons killed or injured in collisions due to impairment, speeding, running red lights and other collision factors. DUI patrols will be utilized to locate and apprehend impaired drivers. DUI Check points and warrant service operations which target repeat DUI violators who fail to appear in court or violate the terms of their probation. Officers will receive training to become proficient in the detection and apprehension of drivers under the influence. Strategies will also be set in place to focus on traffic enforcement with a strong concentration on speed, seatbelt and child restraint enforcement, distracted drivers, intersection operations with disproportionate number of traffic collisions as well as motorcycle safety.

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FISCAL IMPACT:

No negative fiscal impact. This grant is for $427,120.68 and has been approved by the State for the above discussed activities. Accepting this award will increase the Police Department’s revenue account for FY 2024-25 by $427,120.68 and appropriation accounts by the same amount as detailed in Resolution CC 2024-44 attached hereto. All funds spent by the department up to the award amount is reimbursable.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

Respectfully submitted,

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ATTACHMENT A
RESOLUTION CC 2024-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,

CALIFORNIA, ACCEPTING GRANT FUNDING FROM THE

CALIFORNIA HIGHWAY PATROL, CANNABIS TAX FUND GRANT
PROGRAM IN THE AMOUNT OF $427,120.68 AND INCREASE THE
POLICE DEPARTMENT FY 2024-25 BUDGET REVENUE AND

EXPENDITURE BY THE SAME AMOUNT
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the reallocation of appropriations may be made by the City Manager, amendments (increases/decreases) to the Budget shall be by approval and Resolution of the City Council; and
WHEREAS, the City of Covina was awarded funding in the amount of $427,120.68 from the California Highway Patrol for the enforcement of traffic safety laws as it relates to impaired driving; and
WHEREAS, accepting this award will increase the Police Department’s revenue account for FY 2024-25 by $427,120.68 and appropriation account by the same amount.

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

SECTION 1. Amend the fiscal year 2024-2025 Police Department Budget as follows:

SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18thday of June, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
Account Number Account Title Original Budget Increase Budget Amendment 2230 1200-42190 Other State Grants-Traffic Safety $ - $ 427,120.68 $ 427,120.68 2230-1200 50030 Other State Grants-Traffic Safety-Overtime $ - $ 182,628.00 $ 182,628.00 2230-1200-53210 Other State Grants-Traffic Safety-Training $ - $ 4,784.00 $ 4,784.00 2230-1200-54420 Other State Grants-Traffic Safety-Tactical Equipment $ - $ 10,230.20 $ 10,230.20 2230-1200-55550 Other State Grants-Traffic Safety-Motor Vehicles $ - $ 229,478.48 $ 229,478.48

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Resolution CC 2024-44 Page 2 of 2
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-44 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of June, 2024, by the following vote:

AYES: COUNCIL MEMBERS: NONE
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

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State of California -- Transportation Agency GAVIN NEWSOM, Governor

DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
Safety, Service, and Security An Internationally Accredited Agency 601 North 7th Street
Sacramento, CA 95811
(916) 843-4360
(800) 735-2929 (TT/TDD)
(800) 735-2922 (Voice)
June 6, 2024
File No.: 060.15426.17369
Officer Andrew Jimenez
Covina Police Department
125 E. College Street
Covina, CA 91723
Dear Officer Jimenez:

On behalf of the California Highway Patrol (CHP), it is my pleasure to inform you, the Covina Police Department, is conditionally approved for Cannabis Tax Fund Grant Program (CTFGP) funding in the amount of $427,120.68. The purpose of this grant funding is to help your agency reduce and mitigate the impacts of impaired driving in your community.

The official Grant Agreement for signature is forthcoming. In order to execute your Grant Agreement, please provide documentation from a local governing body, authorizing your organization to receive this grant funding, to the Cannabis Grants Unit, by email at [email protected], as soon as possible.

Refer to California Code of Regulations Title 13, Division 2, Chapter 13, Section 1890.13(g) for additional information.

The CHP looks forward to partnering with you and your agency on this project in an effort to make California’s roadways a safer place to travel. If you have any questions, please feel free to contact the Cannabis Grants Unit at (916) 843-4360.

Sincerely,
K. M. DAVIS, Chief
Enforcement and Planning Division

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ATTACHMENT B

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 23
Meeting: June 18, 2024
Title: Police Vehicle Purchase
Presented by: David Povero, Chief of Police
Recommendation: Approve the purchase of a new police vehicle in the amount of $55,871.74 and vehicle retrofitting for $20,000.

EXECUTIVE SUMMARY:

The police department is requesting the purchase of a 2024 Police Ford Police Interceptor Utility (SUV) from Theodore Robins Ford in Costa Mesa CA, in the amount of $55,871.74 with taxes and fees included. An additional $20,000 is needed to outfit the vehicle for patrol service from Black & White Emergency Vehicles.

DISCUSSION:

This new vehicle will replace P16 which was involved in a traffic collision last year and was determined to be a total loss.

In order to evaluate the proposed purchase price for the vehicle, staff closely examined vehicle pricing, options and trim within Los Angeles and Orange Counties for SUV models traditionally used for patrol duties. In the last few years it has been nearly impossible to purchase police vehicles from Ford, Chevy and Dodge due to production delays and high demand. Covina is fortunate to have located this 2024 Ford after a thorough search.

After our review, we confirmed that the proposed purchase price of $55,871.74 is fair and roughly within 3% of market range.

Based on the reasonableness of these circumstances, it is requested that the City Council consider waiving competitive bid requirements per Municipal Code 2.20.080 Sections B. This section states that non-competitive proposals may be made only when at least one of the following circumstances applies: 1) The supply, service or equipment is available from only one source; 2) The public exigency or emergency for the supply, service or equipment will not permit a delay resulting from competitive solicitation; and 3) After solicitation of a number of sources, competition is determined inadequate. Sections B2 & B3 apply in this situation. Staff did attempt to solicit bids from multiple dealerships, but no vehicles were available. The Police Department urgently needs a vehicle and cannot wait months for availability as it will negatively impact operations.

FISCAL IMPACT:
$55,871.74 is available in FY 2023-24 under Central Equipment fund 7010 6010 55550 along with the $20,000 for retrofitting.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

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Respectfully submitted,

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Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer’s computer system. See salesperson for the most current information.

Prepared by: Ozzy Mendoza
05/08/2024 Theodore Robins Ford | 2060 Harbor Blvd Costa Mesa California | 926275556 2024 Police Interceptor Utility AWD Base (K8A)
Price Level: 425 | Quote ID: OPT-2
As Configured Vehicle
Code Description
Base Vehicle
K8A Base Vehicle Price (K8A)
Packages
500A Order Code 500A
Includes:
- 3.73 Axle Ratio
- GVWR: 6,840 lbs (3,103 kgs)
- Tires: 255/60R18 AS BSW
- Wheels: 18" x 8" 5-Spoke Painted Black Steel
Includes polished stainless steel hub cover and center caps. - Unique HD Cloth Front Bucket Seats w/Vinyl Rear
Includes reduced bolsters, 6-way power track driver seat (fore/aft, up/down, tilt with manual recline, 2-way manual lumbar), 2-way manual track passenger seat (fore/aft with manual recline) and built-in steel intrusion plates in both driver/passenger seatbacks.
- Radio: AM/FM/MP3 Capable
Includes clock, 4-speakers, Bluetooth interface with hands-free voice command support (compatible with most Bluetooth connected mobile devices), 1 USB port , 4.2" color LCD screen center-stack smart display and fleet telematics modem.

Powertrain
99B Engine: 3.3L V6 Direct-Injection (FFV)
(136-MPH top speed). Deletes regenerative braking and lithium-ion battery pack; adds 250-amp alternator, replaces H7 AGM battery (800 CCA/80-amp) with H7 SLI battery (730 CCA/80-amp) and replaces 19- gallon tank with 21.4-gallon tank.
44U Transmission: 10-Speed Automatic (44U)
STDAX 3.73 Axle Ratio
STDGV GVWR: 6,840 lbs (3,103 kgs)
Wheels & Tires
STDTR Tires: 255/60R18 AS BSW
STDWL Wheels: 18" x 8" 5-Spoke Painted Black Steel
Includes polished stainless steel hub cover and center caps. 65L 18" 5-Spoke Full Face Wheel Covers w/Metal Clips
Seats & Seat Trim 9 Unique HD Cloth Front Bucket Seats w/Vinyl Rear

ATTACHMENT A
1

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Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer’s computer system. See salesperson for the most current information.

Prepared by: Ozzy Mendoza
05/08/2024 Theodore Robins Ford | 2060 Harbor Blvd Costa Mesa California | 926275556 2024 Police Interceptor Utility AWD Base (K8A)
Price Level: 425 | Quote ID: OPT-2
As Configured Vehicle (cont'd)
Code Description
Includes reduced bolsters, 6-way power track driver seat (fore/aft, up/down, tilt with manual recline, 2-way manual lumbar), 2-way manual track passenger seat (fore/aft with manual recline) and built-in steel intrusion plates in both driver/passenger seatbacks.

Other Options
PAINT Monotone Paint Application
119WB 119" Wheelbase
STDRD Radio: AM/FM/MP3 Capable
Allows data to be provided to support Ford Pro telematics and data services via optional subscription, including but not limited to vehicle location, speed, idle time, fuel, vehicle diagnostics and maintenance alerts. Device enables
optional telematics services through Ford or authorized providers via paid subscription. Subscribe at
https://fordpro.com/en-us/telematics/ or call 1-833-811- FORD (3673).

Includes clock, 4-speakers, Bluetooth interface with hands-free voice command support (compatible with most Bluetooth connected mobile devices), 1 USB port , 4.2" color LCD screen center-stack smart display and fleet telematics modem.
86T Tail Lamp/Police Interceptor Housing Only
Includes pre-existing holes with standard twist lock sealed capability (does not include LED strobe) (eliminates need to drill housing assemblies).
153 Front License Plate Bracket
17T Switchable Red/White Lighting in Cargo Area
Deletes 3rd row overhead map light.
60A Grille LED Lights, Siren & Speaker Pre-Wiring
51T Driver Only LED Spot Lamp (Whelen)
55F Remote Keyless Entry Key Fob w/o Key Pad
Does not include PATS. Includes 4-key fobs. Key fobs are not fobbed alike when ordered with keyed-alike.
549 Heated Sideview Mirrors
47A Police Engine Idle Feature
This feature allows you to leave the engine running and prevents your vehicle from unauthorized use when outside of your vehicle. Allows the key to be removed from ignition while vehicle remains idling. 76R Reverse Sensing System
17A Rear Auxiliary Air Conditioning
2

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Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer’s computer system. See salesperson for the most current information.

Prepared by: Ozzy Mendoza
05/08/2024 Theodore Robins Ford | 2060 Harbor Blvd Costa Mesa California | 926275556 2024 Police Interceptor Utility AWD Base (K8A)
Price Level: 425 | Quote ID: OPT-2
As Configured Vehicle (cont'd)
Code Description
59W 4G LTE Wi-Fi Hotspot Credit
Emissions
425 50 State Emission System
Exterior Color
UM_01 Agate Black
Interior Color
96_01 Charcoal Black w/Unique HD Cloth Front Bucket Seats w/Vinyl Rear
3 MSRP $48,095.00
Discount -500.00
Paint 4,250.00
Subtotal 51,845.00
CA Tire 8.75
Sales Tax 4,017.99
_________________
Total ea. $55,871.74
*Upfit and available at additional cost.

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: June 18, 2024
Title: Entitlement Applications for a Proposed Avid Hotel Development at 578 N. Azusa Avenue Presented by: Brian K. Lee, AICP, Director of Community Development Recommendation: City Council approval of:

1. Resolution CC 2024-40, Initial Study/Mitigated Negative Declaration (IS/MND) with Mitigation Monitoring and Reporting Programs (MMRPs) as adequately prepared in accordance with the California Environmental Quality Act (CEQA);

2. Waive full reading and introduce Ordinance 24-07, entitled “An Ordinance of the City Council of the City of Covina, California, Adopting Planned Community Development (PCD) 21-2, to Allow for the Development of a 0.84-Acre Site for a Hotel Use Consisting of 68 Rooms, Surface Parking on a 36,732-Square-Foot Site, Alley Relocation, and Associated Site Improvements, Located at 578 N. Azusa Avenue (Apns 8432-006-015 And 8432-006-017)”;

3. Resolution CC 2024-41, Tentative Parcel Map No. 84397; and

4. Resolution CC 2024-42, Conditional Use Permit (CUP) 21-29, and Site Plan Review (SPR) 21-160, to allow for the development of a hotel use and alley relocation, for the property located at 578 N. Azusa Avenue (APNs 8432-006-015 and 8432-006-017).

EXECUTIVE SUMMARY:

On May 14, 2024, the Planning Commission of the City of Covina conducted a duly noticed public hearing to consider a proposal to construct a three-story hotel building (Avid Hotel), a brand of Inter-Continental Hotels Group (IHG), with 68 rooms on a 36,732-square-foot (0.84-acre) site. The Project would provide 55 vehicle parking spaces on the ground level. Two existing commercial buildings would be demolished to accommodate the Project, and the existing alley would be relocated along the easternmost portion of the Site. Upon completion, the total floor area will be 30,200 square feet with a maximum building height of 35 feet.

The Planning Commission concluded said hearing on May 14, 2024, and adopted Planning Commission Resolution No. 2024-005 PC by a 4-0-1 vote, recommending the City Council adopt the following items:

Approval of the IS/MND with Mitigation Monitoring and Reporting Programs as adequately prepared in accordance with the California Environmental Quality Act (CEQA), approval of Planned Community Development (PCD) 21-2, Tentative Parcel Map No. 84397, Conditional Use Permit (CUP) 21-29, Site Plan Review (SPR) 21-160, to allow for the development of a hotel use and alley relocation at 578 N. Azusa Avenue (APNs 8432-006-015 and 8432-006-017).

DISCUSSION:

The proposed Avid Hotel Project would be implemented through the adoption of a series of land use entitlements, which include a Planned Community Development Overlay (PCD), a Tentative Parcel Map (TPM), a Conditional Use Permit (CUP), and Site Plan Review (SPR).

A. Planned Community Development Overlay
Pursuant to Covina Municipal Code (CMC) Section 17.58.030, when a proposal for a new development is made, it is desirable to apply regulations more flexible than those applicable to other zones, a Planned Community Development district shall be established. Such districts may diversify the structure's location, uses, and other site

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qualities while ensuring compatibility with uses and future development in the surrounding areas as indicated within the General Plan.

The proposed hotel development plan does not conform with the development standards outlined under CMC Section 17.62.027 for “hotel uses” concerning (1) setbacks, (2) building design, and minimum room size limits, including off-street parking standards described under CMC Section 17.62.027 for “hotels/motels;” therefore, the project includes a request to adopt a Planned Community Development Overlay (PCD) that would establish custom design and development standards to facilitate the proposed Project.

This PCD intends to provide for the orderly redevelopment of vacant, prominent, disused commercial property within the City to address the community’s needs for commercial development. This PCD will establish a location within the city and improve the overall economic vitality of the PCD area, surrounding areas, and the entire city.

A Project Development table showing the requested deviations, under the PCD, to accommodate a hotel use will be discussed under the Site Plan Review analysis.

B. Vesting Tentative Parcel Map (VTPM) No. 84397 (Commercial Subdivision) A Vesting Tentative Parcel Map is requested to merge two parcels and relocate the alley to allow for a 68-room hotel development at the proposed site. The Project Site is located within a relatively level, fully urbanized area with a complete range of infrastructure elements (i.e., streets, sidewalks, streetlights, and wet and dry utilities).

Access to the Project Site will be via two access points: one-off Azusa Avenue and the second off the newly relocated alleyway to the rear of the Project Site. A new 26-foot wide driveway along Azusa Avenue will be provided, limited to right-turn ingress and egress due to an existing raised median located along the center of Azusa Avenue. The Project will relocate an existing alley along Glentana Street to the east of the vacant undeveloped parcel, reconnecting to the existing northerly alleyway. The new driveway and portion of an alley will be 25 feet wide along Glentana Street. Both driveways will provide adequate widths for vehicle access and property placement for clear visibility to ensure the safety of pedestrians and cyclists. In addition, the Project will provide a 30-minute pick-up/drop-off area along a segment of Glentana Street near the street entrance of the proposed building within the southwestern portion of the Project Site.

C. Conditional Use Permit
The Project Site is designated General Commercial in the City’s General Plan and is zoned C-3A Commercial Zone (Regional or Community Shopping Center). Per Covina Municipal Code (CMC) Section 17.42.030, the C3A zone permits “hotels” with a Conditional Use Permit. CMC Section 17.62.027 specifies that such permitted hotel uses must meet specific standards related to aesthetics/design, layout, setbacks, parking, circulation, landscaping, and amenities. With the recommended adoption of a PCD Overlay for this Project, as presented, the proposed development satisfies the required development criteria for this project. A Project Development table summarizing the provisions necessary to accommodate a hotel use will be discussed under the Site Plan Review analysis.

D. Site Plan Review
Under CMC Chapter 17.64, a Site Plan Review is required for new developments. The purpose of the site plan review process is to assist property owners in obtaining the best utilization of their property; to assure the highest quality of land planning, design, and exterior appearance; to protect the public health, safety, welfare, and general interest; to reduce vehicular congestion and facilitate traffic flow by means of facility improvements, traffic mitigation measures, and to assure that the new development will strengthen and sustain the character, desirability, and stability of the community.

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Design and Landscape. The Project includes tearing down two existing one-story buildings on site and relocating the existing alley along the easternmost portion of the Project Site. A hotel with 68 rooms and surface parking will be developed on a 36,732-square-foot site for 30,200 square feet of floor area. The proposed building will be three stories and a maximum height of 35 feet. Surface parking is proposed at the ground level.

The Avid Hotel is a mid-scale hotel brand of Inter-Continental Hotels Group (IHG), a British multinational hospitality company. Signature features of the new hotel brand include:
 Modern exteriors with open, airy retail-inspired entries, with a canopy and red stairwell,  Emphasis on communal spaces,
 Complimentary breakfast and a grab-and-go marketplace,  Rooms with dedicated workspaces and a clean, modern, elegant design and  No swimming pool/spa or formal meeting space
The hotel's ground floor will consist of a lobby, 14 rooms, a fitness room, and a grab-and-go market area for guests. The ground floor will also include a staff office space, laundry facilities, a pantry, and storage space, with an indoor seating area inside the lobby and a covered outdoor seating area facing Glentana Street. The second and third levels of the Project will consist of 27 rooms each. Hotel amenities include a 1,900-square-foot lobby area, a 453-square-foot fitness area, a 130-square-foot Grab-n-Go Market, and a 561-square-foot outdoor patio.

The Project will be designed in accordance with other hotels of IHG Hotels and Resorts’ Avid hotel brand. The proposed hotel features include dark and light gray, red, and blue tones, as well as varying metal and glass materials to provide a modern façade. Lighting will be provided throughout the Project for aesthetic, security, and wayfinding purposes.

The applicant is providing 6,329 square feet (17%) of landscape for the entire site, exceeding the 10% minimum landscape requirement of 3,673 square feet. Landscaping is also provided around the building footprint with seven (7) 48” box Palo Verde trees, eight (8) 36” Marina Strawberry Trees, shrubs consisting of Smooth Agave, Fox Tail Agave, Japanese Boxwood, Blue Gem Westringa, Red Autumn Sage, English Lavender, Purple Fountain Grass, etc., and groundcover consisting of warm season turf and star jasmine.

The hotel building will be constructed in the southern portion of the Project Site, and surface parking will be located to the north and east. Specifically, 47 vehicle parking spaces will be located in the northern portion of the Project Site, and an aisle of 8 vehicle parking spaces and a loading area will be located east of the building. The trash and recycling enclosure will be located in the northeastern portion of the Project Site and will comply with the Trash Enclosure specifications required by the Public Works Department.

Under CMC Section 17.62.027, Uses Permitted Subject to Conditional Use Permit – Hotel or Motel in C-P, C3, C-3A, and C-4 Zones, the Project must meet specific standards related to aesthetics/design, layout, setbacks, parking, circulation, landscaping, and amenities. With the establishment of a Planned Community Development (PCD) Overlay, the Project would satisfy the required provisions outlined under the Covina Municipal Code and the newly established PCD Overlay once approved by the City Council. “Table 2” below outlines the requirements for hotel use, indicating the requirements satisfied by the applicant with the required changes under the new PCD Overlay shaded in light green:
“Table 2”
Development Standards for Hotel Use Requirements
Satisfied
A. Aesthetics/Design
The applicant used varied materials on all sides of the building. Varied heights and setbacks, including façade tower elements and varied colors, Requirement
Satisfied

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were incorporated to add visual interest. Landscaped setbacks, planters, trees, and stamped concrete are incorporated into pedestrian walkways.

The proposed building will be three stories and a maximum height of 35 feet, well under the 75-foot maximum allowable building height.

B. Layout
 No hotel room shall be
less than 280 square
feet
 Lobby shall be 300 sf,
+25 sf for each five
rooms
 Must provide adequate
storage, janitorial
space, etc.
 The main entrance is
visible from the street
or driveway area.
 The applicant proposes a floor area of
218 square feet for a standard king
room and 273 square feet for a standard
double queen room.
 The applicant provided 1,900 square
feet of the lobby area, exceeding the
minimum 650 Sf required.
 Adequate storage, janitorial, and related
space to accommodate all maintenance
and procurement operations provided.
 Entrances identified with canopies over
entrances and stamped concrete leading
to the entrances provided.

Minimum
room size
requirement
satisfied with
PCD Overlay
C. Setbacks
 Front SB = 25 feet
 Interior SB= 15 feet
 Street-side SB = 20 feet
 Rear SB = 35 feet (more
than 2-story)
The applicant proposes the following new
setbacks:
 20’-0” front SB (facing Azusa Avenue)
 77’-0” – Interior SB
 8’-6” street-side SB (facing Glentana
Street)
 25’-0” Rear SB
Minimum
setback
requirement
satisfied with
PCD Overlay
D. Parking &
Circulation
 Provide a Pickup/drop-off area
 For Hotel/Motel uses,
required parking is one
(1) for each hotel
unit/room. The total
required is 68 spaces.
 Proposed surface
parking area is
accessible to all rooms
and ancillary uses.
 A Pick-up/drop-off area is provided off
Glentana Avenue for guests for
Uber/Lyft, taxi, etc.
 The applicant prepared a Parking Ratio
Technical Memorandum for the Project
demonstrating that the proposed 55
spaces are comparable to similar
business/boutique hotels, with a
recommended parking ratio proposal of

0.7-0.8.

Off-street
parking
requirement
satisfied with
PCD Overlay
E. Landscaping
The applicant is providing 6,329 square feet (17%) of landscape for the entire site, exceeding the 10% minimum landscape requirement of 3,673 square feet. Landscaping is also provided around the building footprint.

Requirement
Satisfied
F. Amenities
The applicant is not proposing a pool or spa. Avid Hotel is a business/boutique-type hotel model that caters to modern travelers at an affordable price point and does not offer traditional hotel amenities. It adapts to changing consumer travel patterns and transportation modes, particularly in urbanized areas. The applicant proposes a 1,900-square-foot lobby area, a 453-square-foot fitness area, a 130-square-foot Grab-n-Go Market, and a 561-square-foot outdoor patio area accessible to hotel guests.

Pool/Spa
requirement
satisfied with
PCD Overlay

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G. Miscellaneous
 A decorative 6-foot high masonry wall is proposed along the interior property line.
 All outside lighting proposed will be hooded and shielded away from neighboring properties.
 The Trash enclosure proposed as per the Public Works
Environmental Services Division’s requirements and Engineering specifications.

Requirement
Satisfied
Parking. The applicant provided city staff with a Technical Memo on Hotel Parking Ratios, prepared by JBA Traffic, Transportation, and Parking Consultants on behalf of Avid Hotel, to demonstrate that the existing parking ratios for hotels are not comparable to those of other hotels similar in size to the project proposed.

Generally, cities with a population range of 50,000 to 300,000 people use a 1:1 ratio for parking requirements (one parking space to one room). Current city code requirements conservatively reflect traditional hotel parking needs that do not consider rapidly changing consumer travel patterns and newer transportation modes, particularly in urbanized areas. Moreover, the cost and time-effectiveness of transportation ride-sharing services, such as Uber and Lyft, have redefined traveler behavior and, in so doing, reduced parking demand at hotels and airports. The increase in “Ubering” has reduced the parking demand at airports as more and more people use Transportation Network Companies (TNCs) for transportation to and from airports instead of driving and parking their cars or using shuttles, taxis, and airport flyaway buses. These changes render traditional parking requirements less practical and cost-effective for hotel operations. The memorandum surveyed hotels with rooms ranging from 46 to 166 and found parking ratios on actual hotel occupancy as low as 0.31 to 0.82. JBA also conducted a parking survey for two hotels (Springhill Suites Hotel and Hilton Garden Inn) approved in the City of Burbank with a parking code requirement of 1 space per room. Based on the parking demand analysis, both hotels were approved with a parking ratio of 0.8, with a parking utilization ratio at the surveyed hotels ranging from 0.44 to 0.78. (based on weekday and weekend surveys) Based on the recent parking studies and analysis provided by JBA, a parking ratio of 0.7 to 0.8 for business/boutique-type hotels is justifiable and recommended by city staff. The applicant proposes 55 parking spaces, just under a parking ratio threshold of 0.8. Therefore, the proposed 55 parking spaces for a business/boutique-type hotel satisfies the off-street parking requirement. The Project also requires two (2) handicapped parking stalls and one (1) off-street loading space, which the applicant satisfies.

FISCAL IMPACT:

Adopting the Avid Hotel Project will generate a “bed tax,” commonly referred to as Transient Occupancy Tax (TOT), at 10% of the rent charged to transient guests in hotels/motels. The Project and related land use entitlements would also result in building permits and associated fees.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

An Initial Study/MND and Mitigation Monitoring and Reporting Program (MMRP) has been prepared for the Project consistent with the requirements of the California Environmental Quality Act (CEQA) to be considered by the Planning Commission and City Council pursuant to Section 15074 of the CEQA guidelines. The Project, incorporating the identified mitigation measures contained in the MMRP, would result in a less than significant impact on the environment.” The Notice of Intent to adopt the MND was published in the San Gabriel Valley Examiner on July 6, 2023, and the MND was released for a 30-day public comment period beginning on July 6, 2023, and ending on August 7, 2023. The Final MND, which consists of the Draft MND, Comments on the Draft MND, and Responses to Comments, has been completed in accordance with the requirements of CEQA.

Respectfully submitted,

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ATTACHMENT 2
Project Plans

Page 653 of 2700 ends

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EXURICHI CL.\DOIIOIYIUY-Ec.N.
:s~T~E~~=~~~::~=::~~~~~OCOLORS
SOUNO TRANSMISSION ClASS (STC)
GUEST ROOM-TO-GlEST ROOM DEMISit-l3 WALL STC 55
GUESTROOM-TO-CORRIOORWAll STC55
GUEST ROO"-TO-ElEVATOR SHAFTSIEQIJPMENT ROOM STC 60
GUESTROO"-To-FITNESSROOM STC60
GUEST ROO"-TO-HIGH I"-.OISE MIDI STC 60
FLOOR/CSU!-.13 ASSEMBLY GUESTRCOM-TO-GUESTROOI.( STC 55 FLOORJC8UN:>ASSEM8LYGUESTROOM-TO-~UNDRY STC60
FLOCIR'C8Ut-.13ASSEMBLY GUEST ROOM-TO-INOOOR POCll STC 65 IMPACT I~TION CLASS ~IC)
FLOORCEIUNG ASSEMBlY GUESTROOM-TO-GUESTROOM IIC 55
I"-.OISECRITERIA(t£)
GUESTROOMS (~.:; l:l
CORRIDOOS ANO LOBE!jES NC 40
OFFlCESISUPPORTAREAS (1.:;40

PLUMBING NOISE
NOT TO EXCEED WTl-IN GUESTROOM NC l:l
V1BRATIONISOLAOON
I
TI·E BUlDING'rfJN; AND PlUME!ji'.GSYSTEt.ISSI-WJ. BE OESIGNEDINACCORO.&n::E 'MTH ~
THE FOLLOWING ASI-RAE 48-2015 TABLE 47 'SELECTION GUIDE FOR "v1BRATION ISOLATION' FOR ADOITIONALACOUSTICAI. PERf()RM.A.t£E REQUREMENTS OF mv!OUAL BULDING COLif'Ot.ENTS RfFERTOitGBRANDSTANOARDS.

A.Q.1 COVER SHEET
C-1 TOPOGRAPHIC SURVEY
A-1.0 PLOT PLAN
A-1.1 SITE PLAN
A-1.2 DEMO PLAN
A-1.3 FIRE LANE MAP
A-2. 1 1ST FLOOR PLAN
A-2.2 2ND FLOOR PLAN
A-2.3 3RD FLOOR PLAN
A-2.4 ROOF PLAN
A-2.5 LIGHTING PLAN
A-3.1 SOUTH AND NORTH ELEVATIONS
A..J.1a SOUTH AND NORTH ELEVATIONS
A-3.2 IN'£ST AND EAST ELEVATIONS
A-3.2a 'v\£ST AND EAST ELEVATIONS
A-4.1 SECTIONS
A-6.1 TYPICAL KING ROOM
A-6.2 TYPICAL QUEEN ROOM
A-6.3 TYPICAL KING ADA
A-6.4 TYPICAL QUEEN ADA
A-7.1 TRASH ENCLOSURE
A-8. 1 PERSPECTIVES
A-9.1 SIGNAGE DRAVvlNGS
LANDSCAPING:

L-1 LANDSCAPE PLAN
CIVIL:

LI.D. SITE MAP

TENTATIVE PARCEL MAP

DIVISION
OFCOVINA 4
'
CODE ANALYSIS:

USE
LOT SIZE·
OCCUPANCY GROUP:

COMMERCIAL/ INDUSTRIAL

36.732SO.FT.

R1
CONSTRUCTION TYPE: V-A
SPRINKLED: YES
ZONING: C-3A
ALLOWABLE BUILDING HEIGHT: JS'.(J"
JS'.(J"
3 PROPOSED BUILDING HEIGHT:

ALLOWABLE STORY

PROPOSED STORY

SETBACK TABLE
3 NORTHSETBA.CK: MIN77'Q,
SOUTH SETBACK: MIN B"-6'", r.IAX 'l'J-2"
EAST SETBACK: MIN 3J'Q. MAX 33".(1'.
v.ESTSETBA.CK MIN1B".S.

EXISTING BUILDINGS TO BE DEMOLISHED

OFFICE BUILDING

OFFICE BULDING

6.221SQ.FT.
485 SQ.FT.

PROPOSED BUILDING SUMMARY

FIRST FLOOR

SECOND FLOOR

RDFLOOR
AREA
10600SQ.FT.
9,800SQFT.
a.eoo sa.FT. OTAL FLOOR AREA 30,200 SQ.FT
LOTCOVERAGE: 10.600/36,732•29%
F.A.R.: 30.200136.732•0.82
STORY
27 "
27 lANDSCAPE AREA PROVIDED: 6.329136.732 • 17'11o
LANDSCAPE AREA REQUIRED MIN. 10"4

FIRST FLOOR
FLOOR AREA 10.600 SQ. FT

TOTAL GUEST
ROOMS

ROOM DESCRIPTION
RESTROOM$

CHECK-IN
1,900S.F.
453S.F.
135S.F.
130S.F.

EMPlOYER BREAK RM 221 S.F.

LAUNDRY I ME.CH. CLOSET 345S.F.

GEN. MANAGER I WORK
PANTRY
STAIRS
STORAGE I TRASH Cl-UTE
SQ.FT.

GR-AOAQQ
GR-AOAK 330S.F.

GR.Q 273S.F.
216S.F.
276S.F.
345S.F.

TOTALNUMBEROFGUESTROOMS: 68ROOMS

SECOND FLOOR

9.800$0. FT

ROOM DESCRIPTION

HOUSEKEEPING

DATA CLOSET
STAIRS

ELEVATOR LOBBY

LAUNDRY CHUTE

GR-AOAOQ

GR-AOAK
GR.Q

9.800SQ. FT

ROOM DESCRIPTION
1-K>USEKEEPJNG

DATA CLOSET
STAIRS

ELEVATOR LOBBY

LAUNDRY CHUTE

PARKING REQUIRED

TOTAL PARKING
ST .... N(),I,RD PARKING

COMPACT PARKING
AD.~. PARKING

EVSPACE
CLEAN AIR SP .... CE
51-75 ROOM RANGE

REQUJRES
f---A- P_P_L- IC_A_ B_L_E_C_Q_D_E ________ -,--::L--,E::-::Gc-A:-:-L---=- D-=E=-S=-=C-=R::-c:-:: l P=-T=-10-::-:-N-:--------i ~s~:~~~:~:~: ENGINEER rP_R_O_J_E_C,--T- IS,---B-A"""' S_E_D_O-,---N_T_H_E_ 2_01- 9---:-C_A_L-IF-0,--R- N- IA----+=P-:-A-::R:-:C:-:E::cL- 1:---------------1 ~t~~':'RSlDEDRrve SHERMAN OAKS, CA 91423
BUILDING CODE STANDARDS APN : 8432..()()6-015 PHONE:(6\6)-H8-7768

ALL CODE REFERENCES ARE TO BE IN COMPLIANCE WITH
THE HEALTH & SAFETY CODE (HSC) SECTION 13145,
CALIFORNIA CODE OF REGULATIONS (CCR), TITLE 19,
TITLE 8, TITLE 24:

NFPA 13 -INSTAL LATION OF SPRINKLER SYSTEMS
NFPA 30- FLAMMABLE AND COMBUSTIBLE LIQUIDS CODE
NFPA 72- NATIONAL FIRE ALARM AND SIGNALING CODE
NFPA 80. FIRE DOORS AND OTHER OPENING PROTECTIVE$
NFPA 90A -INSTALLATION OF AIR-CONDITIONING AND VENTILATING

SYSTEMS
NFPA 96 ·VENTILATION CONTROL AND FIRE PROTECTION OF

COMMERCIAL COOKING OPERATIONS
NFPA 241 -SAFEGUARDING CONSTRUCTION, ALTERATION, AND

DEMOLITION OPERATIONS
NFPA 286 -STANDARD METHODS OF FIRE TESTS FOR EVALUATING

CONTRIBUTION OF WALL AND CEI LING INTERIOR FINISH TO ROOM

FIRE GROWTH

DISABLED ACCESS PROVISIONS
THIS PROJECT SHALL COMPLY WITH THE 2019 CBC, CHAPTER 118 LOTS 5, 6, 7 AND THE 'v\£STERLY 10 FEET OF LOT 8, ALL OF TRACT NO. 23074, IN THE CITY OF COVINA, COUNTY OF LOS

ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED
IN BOOK 629, PAGES 63--64 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

PARCEL 2
APN: 8432..()(}6-{)17
LOTS 1 TO 4 INCLUSIVE OF TRACT NO. 23074, IN THE CITY

OF COVINA, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA. AS PER MAP RECORDED IN BOOK 629, PAGES
63-84 OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
2019 CALIFORNIA Aot.f NISTRATION CODE (CAC)
2019 CALIFORNIA BUILD NG CODE (C BC)
2019 CALIFOR NIA RESIDEN TIA L CODE (CRC)
2019 CALIFORNIA ELECTRICAL CODE (C EC)
2019 CA LIFORNIA MECHANICAL CODE (CMC)
2019 CALIFORN IA PLUMBING CODE (CPC)
2019 CALIFORNIA ENERGY CODE
2019 CALIFORNIA FIRE CODE (CFC)
2019 CAUFORNIA GREE N BUILDING STANDARD CODE
2019 CAUFORNIA ELEVATOR SAFETY ORDERS
FAX (618)990-9903
EMAIL jalajov@rtlytCJOCivilcotn

VICINITY MAP
AViO'HorEL
1176 ~ ... N -AZUSA COVINA, CA ~722
Scale: 1-UA
A-0.1

Page 654 of 2700 ends

TOPOGRAPHIC SURVEY MAP
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BASIS OF BEARING

LEGAL DESCRIPTION
0 -
.
'
SEYT. 27 2019
!IC t.£:
"o.\0'·0~
~~ f Page 655 of 2700
W. FRONT
cD VICINITY MAP

PROJECT SUMMARY
SCOPE OF WORKS:

CONSTRUCTION OF A NEW 35'-0" HEIGHT 3 STORY HOTEl BUilDING WITH 68 HOTEl ROOMS.

CODE ANALYSIS:

USE:

LOT SIZE:

COMMERCIAL / INDUSTRIAL

38.732SC.FT.

OCCUPANCY GROUP:

CONSTRUCTION TYPE:

SPRINKLED:

ZONING:

ALLOWABLE BUILDING HEIGHT:

PROPOSED BUILDING HEIGHT:

ALLOWABLE STORY:

PROPOSED STORY:

R1
V-A
YES
C-3A
35'-0"
35'-0"
3 3
LOT COVERAGE: 10.600138.732 • 29'JI.

F A.R.: 30,200136,732 • 0,112
LANDSCAPE AAEA REQUIRED MIN.

LANDSCAPE AAEA PROVIDED: 6,329136,732 " 17%

SETBACK TABLE
NORTH SETBACK: MIN n·-(J', MAX n·-tl'
SOUTH SETBACK: MIN 8'~ . MAX 20'-T
EAST SETBACK: MIN 33'-0", MAX 33'-tl',
'vVEST SETBACK: MIN 18'-3•, MAX 25'·7"

PROPOSED BUILDING SUMMARY
AREA ##OF ROOMS
FIRST FlOOR 10 600 SC.FT. 14
SECOND FLOOR 9,800 sa.FT. 27
HIRO FLOOR 9,800 sa.FT. 27
OTAl FLOOR AREA 30,200 SO.FT. 68

PARKING REQUIRED PROVIDED
TOTAL PARKING 68 55
STANDARD PARKING 28
COMPACT PARKING 15
ADA PARKING 3 2
EV SPACE 4 4
CLEAN AIR SPACE· 6 6
51~75 ROOM RANGE

REQUIRES I REQUIRED I PROVIDED
MIN. MOBILITY IMPAIRED 4(3•1) 4
MIN. HEARING IMPAIRED 5 7
TOTAL • 9
z

LEGAL DESCRIPTION
PARCEl 1
APN: 8432~~15
LOTS 5, 6, 7 AND THE INESTERL Y 10 FEET OF LOT B. All OF TRACT NO. 23074, IN THE CITY OF COVINA, COUNTY OF LOS
ANGELES. STATE OF CALIFORNIA. AS PER MAP RECORDED
IN BOOK 629, PAGES 63-64 OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.

PARCEL2
APN : 8432~~17
LOTS 1 TO 4 INCLUSIVE OF TRACT NO. 23074, IN THE CITY

OF COVINA, COUNTY OF LOS ANGELES, STATE OF
CAliFORNIA, AS PER MAP RECORDED IN BOOK 629, PAGES
63-64 OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
lEGEND
~ EXISTING AllEY TO BE RELOCATED
~ PROPOSED AllEY

AVID HOTEL
578 N. AZUSA AVE. COVINA, CA 91722
OWNER
SHERMAN OAKS INN llC

RAJ PATEL
R3 REAL ESTATE DEVELOPERS
562·261-4066
562-356-<1773FA.X
[email protected]

ARCHITECT
ALAJAJIAN-MARCOOSI ARCH ITECTS INC.
320W. ARDEN AVENUE. SUITE 120
GLENDALE, CA 91203
TEL.{8111)244·5130FAX
(818)551-1 613
E-MAIL: [email protected]

SURVEYOR
RAY LOMBERA & ASSOCIATES INC.
135 S. JACKSON ST. SUITE 202
GLENDALE, CA 91205
TEL: (J23)257-9n1
FAX: (323)257-9865
WNN.RAYLOMBERA.COM

LANDSCAPE ARCHITECT
CAMILLE PERNG TWO TREE DESIGN INC.

LANDSCAPE ARCHITECT, RLA 115&40
1432 SAN DIEGO ST. 'v\'EST COVINA. CA 91790
CELL: (626)278-2768
EMAIL: PRUNUS@GMAILCOM

CIVIL ENGINEER

RHYTON ENGINEERING
JOHN J. ALAJOV
EVP I PRINCIPAL CIVIl ENGINEER
13351 RIVERSIDE DRIVE
SUITE3511
SHERMAN OAKS, CA 91423
PHONE: (1118)478-7768
FAX: (818)990-9903
EMAIL: [email protected]

UTILITY
ELECTRIC. SO. CAUFORNI-' EDISON
(000)655-4555
WATER: AZUSA UGHT & W-'Tl:.R
(626)812-5063
GAS: THE GAS COMPANY
(800)-'127-2200
CABLE: TIME WARNER
(626)384-5400

SHEET INDEX
A·l.O PLOT PLAN

CD PLOT PLAN
AVlD'HoTEL
"'-io<l671 N AZUSA COV~.O.. CA 111722

PLOT PLAN
A-tO

Page 656 of 2700 ends

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Page 657 of 2700 ends

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Page 658 of 2700 ends

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A-3.1

Page 665 of 2700 ends

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A-3.1a

Page 666 of 2700 ends

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Page 667 of 2700 ends

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Page 668 of 2700 ends

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Page 669 of 2700 ends

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Page 670 of 2700 ends

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Alajajlan
Marcoosl
Architects Inc. 320W.Ardef'IAva. Sullll120
Gl&ndaii, CA91203
Phone:(818) 244-5130
Fax: (818)551-1613
E-mllU:Ira,..rftwori<jnet.MI./161
S'ifRMAN OAKS ~ UC
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QUEEN ADA
~ROOM
Scale: 112"•1'4'
A-6.4
04

Page 673 of 2700 ends

15'-8"
TRASH/

RECYCLE
GATEANDPOST ~--\ ! ~---, fQ.' .. . " . '' . PLAN
CMU WALL W/ EC-02

EXTERIOR FINISH
GATE AND POST _____.

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- CMU WALL W/ EC-D2

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t----------------------------------------- __ _l "f---- CONC. FOOTING AS NEEDED.

L---------------------------------------------.J

SIDE ELEVATION
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SIDE ELEVATION
?REMANUFACTURED PVC PANEL GATES. DARK GRAY OR DARK
BRONZE FINISH FOR All GATE AND FRAME COMPONENTS.

PROVIDE STEEL POLE HINGES AND GLIDE RINGS.

PROVIDE HEAVY DUTY HANDLES AND DROP PIN LOCKS.

GATE POSTS WITH POST CAP IN :

CONCRETE FOOTING AS NEEDED.:
r- ~----------------------------------------;LL1
L ___ J----------------------------------------L ___ J

FRONT ELEVATION
Alajajlan
Marcoosl
Architects Inc. 32'0W.Ardllfl-'~e. SuRe1~
Glendale,CA91203
Phone:i81&J2«-51:J.O
Fll!l: (818)551-1613
E~ll:eramar@wor;dr>et.att.lle1
SMOAKSNllLC
~ ......... AVID HOTEL
878 ~ ... N -AWSA
COVNA, CA 011.22
TRASH

ENCLOSURE
~
Scale: 318'• 1'.()"
A-7.1

Page 674 of 2700 ends

0 MAIN ENTRANCE
0 RECEPTION I LOBBY
Alajajlan
Marcoosl
Architects Inc. 320W.Al'dlonA ..... Sulte\20
~le C\91203
Phone:{l\11)2«-5130
Fa~r. (818)551 -1613
E.mall:aramarDwcrldnet..illl..net
~ AVID .. -HOTEL
571 ~ .. N -AZUSA
COVNA, CA 817!2
LOBBY

INTERIORS
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Sc:ale : 3137wt"o0"
PLAN
A-8.1

Page 675 of 2700 ends

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Marcoosl
Architects Inc. 320W ~A~. Sulte120
Glen<Utii, CA91203
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Fax: (81 8) 551·1613
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SIGNAGE
Scale:

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Page 676 of 2700 ends

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TWO TREES DeSIGN INC.
626.278.276t.i
PROJECT ADDRESS; 578 N AZUSA AVE. COVINA, CA 91722
ASSESSOR PARCEL NUMBER:

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Page 677 of 2700 ends
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