Covina City Council
September 3, 2024

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA

Tuesday, September 3, 2024, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall

IMPORTANT NOTICE
Members of the public may view the meeting live on the City’s website at www.covinaca.gov or on local cable television, Spectrum Channel 29 and Frontier Channel 42.To view from the website, click here or scroll down on the home page and click "City Meetings", once on the page, click the highlighted word next to Video Library under the City Council Meeting Agendas and Minutes header. A live banner will appear at the start of the meeting.

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

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

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

Pages

CLOSED SESSION

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

CALL TO ORDER

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

PLEDGE OF ALLEGIANCE
Led by Councilmember Allen.

INVOCATION
Given by Police Chaplain Steve Martinez.

PRESENTATIONS
Colt All Star Team
Pink Patch Project Kick-Off

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

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

CITY MANAGER COMMENTS

CONSENT CALENDAR PUBLIC COMMENTS
The public is invited to comment on Consent Calendar items only at this time. To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

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

CC 1. Minutes 5
Staff Recommendation:

Approve the Minutes of the August 20, 2024, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

CC 2. Payment of Demands 15
Staff Recommendation:

Approve Payment of Demands in the amount of $3,937,193.27.

CC 3. City of Covina Investment Report for Month Ended July 31, 2024 23 Staff Recommendation:

Receive and File.

CC 4. Closed Circuit Television (CCTV) Video Inspection of Sewer Collection System – Project No. S2401 – Award of Contract to Empire Pipe Cleaning & Equipment, Inc. in the Amount of $648,021.08
41 Staff Recommendation:

Authorize the City Manager to execute the attached Minor Construction and Maintenance Services Agreement with Empire Pipe Cleaning & Equipment, Inc. for Closed Circuit Television (CCTV) Video Inspection of the City’s Sewer Collection System in the Amount of $648,021.08.

CC 5. Covina Heights Paving Project – Project No. W2401 – Award of Contract to Gentry Brothers, Inc. in the Amount of $1,970,770
119
Staff Recommendation:

Approve plans and specifications for the Covina Heights Paving Project – Project No. W2401;

1. Award a contract for the Covina Heights Paving Project – Project No.

W2401 to Gentry Brothers, Inc. as the lowest responsive and responsible bidder in the amount of $1,970,770 and authorize the City Manager to execute the contract;

2. Authorize a project contingency amount of $150,000 for any unforeseen construction expenses;

3. Award a Professional Services Agreement (PSA) to CEJ Engineers, Inc. for Construction Management & Inspection Services for a not-toexceed amount of $74,960 and authorize the City Manager to execute the agreement; and

4. Award a Professional Services Agreement (PSA) to Willdan Engineering, Inc. for Pavement Analysis & Testing for a not-to-exceed amount of $35,000 and authorize the City Manager to execute the agreement.

5. CC 6. Adoption of Ordinance 24-07 201
Staff Recommendation:

Adopt 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)”.

CC 7. Designation of Voting Delegate and Alternates for the League of California Cities Annual Conference Which Includes the Annual Business Meeting – October 16-18, 2024
211
Staff Recommendation:

Designate Councilmember Walter Allen, III, as the voting delegate and Councilmember Patricia Cortez, as the alternate to represent the City at the Annual Business Meeting of the League of California Cities

1.

General Assembly; and
Direct the Chief Deputy City Clerk to submit the required "Voting Delegate Form" to the League's Sacramento Office no later than September 25, 2023.

2. CC 8. Consideration of the Salary Schedules & Memorandum of Understanding between the City of Covina and American Federation of State, County and Municipal Employees, Local 3325 (“AFSCME”) & Amending the City’s Classification Plan for Account Clerk I/II
217
Staff Recommendation:

Adopt Resolutions CC 2024-81 approving the salary schedules and Memorandum of Understanding between the City of Covina and American Federation of State, County and Municipal Employees, Local 3325 (“AFSCME), Effective July 1, 2024; and adopt Resolution CC 2024-82 to revise the existing Account Clerk I/II job description.

CC 9. Confirm and Approve City Council’s Appointments to the Planning Commission and Finance Advisory Commission
311
Staff Recommendation:

Approve the City Council’s appointments to the Planning Commission and Finance Advisory Commission.

CC 10. A Lease Agreement between the City of Covina and Hang 10, LLC for Partial Use of 559 N. Citrus Avenue
313
Staff Recommendation:

Approve the Lease Between the City of Covina and Hang 10, LLC for Use of the Top Floor and Ramp of the Metrolink Parking Structure, Located at 559 North Citrus Avenue;

1. Approve Resolution CC 2024-83, Authorizing Amending the Fiscal Year 2024-2025 Operating Budget for the Purpose of Receiving and Expending $90,000 in Lease Proceeds Related to the Lease of 559 North Citrus Avenue (APN No. 8431-014-908).

2. ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for September 17, 2024, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT

AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING

AUTHORITY JOINT MEETING

MINUTES
August 20, 2024, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember Patricia Cortez
Councilmember Hector Delgado
Mayor Pro Tem/Vice-Chair Victor Linares
Mayor/Chair John C. King
Staff Present: City Clerk Drew Aleman (Elected Member)
City Manager Chris Marcarello
City Attorney Candice K. Lee
Police Chief David Povero
Community Development Director Brian Lee
Parks & Recreation/Library Services Director Lisa Evans Interim Public Works Director Rafael Fajardo
Deputy City Manager Angel Carrillo
Chief Deputy City Clerk Fabian Velez
Staff Absent: City Treasurer Neil Polzin (Elected Member) Administrative Services Director Anita Agramonte
_____________________________________________________________________

2 CLOSED SESSION

CLOSED SESSION - WAS NOT HELD
JOINT MEETING—OPEN SESSION 7:30 PM

CALL TO ORDER
Mayor King called the Council/Agency/Authority meeting to order at 7:34 p.m. with all Councilmembers present.

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.

INVOCATION
Given by Police Chaplain Chuck Cannizzaro.

PUBLIC COMMENTS
Resident Gus Duran highlighted three concerns he had for the City Council: the length of time taken to complete the construction of the apartment complex on Orange Street, the debris left overnight as a result of the Farmers’ Market, and safety concerns regarding the intersection of San Bernardino Rd. and Citrus Ave.

Resident George (last name not provided) commented regarding the public comment cards.

COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen commented on his attendance of the Charter Oak High School convocation on behalf of the City. He also gave a shout out to the Public Works staff for the continued enforcement regarding unpermitted vendors. Councilmember Allen also spoke about his attendance of Former Mayor and Police Chaplain Dave Truax's funeral and thanked him and his family for the good work they have done throughout the community.

Councilmember Delgado thanked Police Chief Povero and his staff for the enforcement of overnight street parking rules.

Mayor King also commented on his attendance at Former Mayor and Police Chaplain Truax's and Former teacher George Fuller's memorial services. He noted his interactions with both and wished their families peace and blessings. He also commented on his attendance of the Covina High School convocation.

Mayor King highlighted items on the Consent Calendar including: the installation of storm water bioswales, a new traffic signal at the intersection of Fourth and Badillo that will be paid for by grant funding, street and alleyway improvements, improvements being made to Covina Park, the use of grant funding to replace SRT tactical safety equipment for the Covina Police Department, and a restaurant lease agreement for City owned property at 114 E. Italia St. He also invited the community to attend the ground breaking ceremony for the Covina Recreation Village, taking place on September 17, 2024 at 4:30 p.m.

3 CITY MANAGER COMMENTS
City Manager Marcarello noted that Consent Calendar Item CC 17 relates to the reorganization of the Administrative Services Department to reestablish the Finance Department and reorganization the Human Resources Department under the Administration Department. He also stated that this will include the reestablishment of the Director of Finance position and, pursuant to SB 1436, the compensation will remain unchanged at the monthly salary ceiling of $17,570.

CONSENT CALENDAR PUBLIC COMMENTS
There were no public comments.

CONSENT CALENDAR
Mayor King requested item CC 10 be pulled for separate consideration and Councilmember Cortez requested items CC 6 and 13 be pulled for separate consideration.

CC 1. Minutes
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Approve the Minutes of the July 16, 2024, Special Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (5 to 0)
CC 2. Minutes
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Approve the Minutes of the July 16, 2024, Special Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (5 to 0)
CC 3. Minutes
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Approve the Minutes of the July 16, 2024, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (5 to 0)
CC 4. Payment of Demands
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Approve Payment of Demands in the amount of $11,963,283.38.

Approved (5 to 0)

4 CC 5. City of Covina Investment Report for Month Ended June 30, 2024 Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Receive and File.

Approved (5 to 0)
CC 6. Frontage Median Bioswale Installation Project – Project No. P2502 – Award of Contract to Siterep Construction Services, Inc. in the Amount of $174,010 Councilmember Cortez recused herself from Consent Calendar items CC6 & CC13 pursuant to SB 1439.

Motion made by: Councilmember Allen
Seconded by: Councilmember Delgado

1. Approve plans and specifications for the Frontage Median Bioswale Installation Project;

2. Award a contract for the Frontage Median Bioswale Installation Project – Project P2502 to Siterep Construction Services, Inc. as the lowest responsive and responsible bidder in the amount of $174,010 and authorize the City Manager to execute the contract;

3. Award a Professional Services Agreement to CEJ Engineers, Inc for $24,960 for Construction Management & Inspection Services and authorize the City Manager to execute the contract; and

4. Authorize a project contingency amount of $17,401 to cover the cost of unforeseen construction expenses.

Approved (4 to 0); Cortez Abstain
CC 7. Tactical Entry Vest Replacement
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Approve the Purchase of Tactical Vest in the amount of $64,403; and

2. Approve the waiving of competitive bid/purchasing requirements under Municipal Code 2.20.080.

Approved (5 to 0)
CC 8. Traffic Signal Installation Project – 4th Avenue and Badillo Street – Project No. T2501 – Award of Contract to PTM General Engineering Services, Inc. for an Amount of $746,046
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Approve plans and specifications for the Traffic Signal Installation Project – 4th Avenue and Badillo Street – Project No. T2501;

2. Award a contract for the Traffic Signal Installation Project – 4th Avenue and Badillo Street – Project No. T2501 to PTM General Engineering

5 Services, Inc. as the lowest responsive and responsible bidder in an amount of $746,046 and authorize the City Manager to execute the contract;

3. Authorize project contingency amount of $75,000 for any unforeseen construction expenses; and

4. Approve a Professional Services Agreement (PSA) between the City of Covina and Siterep, Inc for Construction Management and Inspection Services and authorize the City Manager to execute the PSA.

Approved (5 to 0)
CC 9. Adoption of Ordinance 24-08
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Adopt Ordinance 24-08 entitled, “An Ordinance of the City Council of the City of Covina, California, Approving Zoning Code Amendment (ZCA) 24-01 by Amending Sections 17.64.060 and 17.64.120 of Chapter 17.64 (Site Plan Review) of Title 17 (Zoning) of the Covina Municipal Code, and Making a Determination of Exemption from the California Environmental Quality Act”.

Approved (5 to 0)
CC 10. Restaurant Lease Agreement – 114 E. Italia Street City Manager Marcarello introduced Marie Petulla, Restaurateur, Proprietor of Union Restaurant Group, LLC. Ms. Petulla introduced herself to the community and provided information on her new restaurant Rosalie and what drew her to the City of Covina. Councilmember Allen and Councilmember Cortez thanked Ms.

Petulla for introducing herself and stated their excitement for the restaurant opening.

Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
That the City Council:

1. Approve a lease agreement with Union Restaurant Group for the operation of a restaurant at 114 E. Italia Street; and

2. Authorize the City Manager to execute the agreement.

Approved (5 to 0)
CC 11. Covina Park Improvements Project – Project No. P2005 – Award of Contract to Gentry Brothers, Inc. in the Amount of $149,500
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Award a contract for the Covina Park Improvement Project – Project No.

P2005 to Gentry Brothers, Inc. as the lowest responsive bidder in the amount of $149,500 and authorize the City Manager to execute the contract; and

6 2. Authorize a project contingency amount of $15,000 to cover the cost of unforeseen construction expenses.

Approved (5 to 0)
CC 12. Department of Public Works – Water Division – Purchase Agreement for (1) 2024 Ford Super Duty F-250 Truck
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Authorize the City Manager to execute a Purchase Agreement with National Auto Fleet Group for the purchase of one (1) 2024 Ford Super Duty F-250 Truck in an amount not-to-exceed $75,000.

Approved (5 to 0)
CC 13. City-Wide Alleyway Resurfacing Project – Project No. P2501 – Award of Contract to FS Contractors, Inc. in the Amount of $60,000 Councilmember Cortez recused herself from Consent Calendar items CC6 & CC13 pursuant to SB 1439.

Motion made by: Councilmember Allen
Seconded by: Councilmember Delgado

1. Approve plans and specifications for the City-Wide Alleyway Resurfacing Project – Project No. P2501;

2. Award a contract for the City-Wide Alleyway Resurfacing Project – Project No. P2501 to FS Contractors, Inc. as the lowest responsive and responsible bidder in the amount of $60,000 and authorize the City Manager to execute the contract;

3. Award a Professional Services Agreement (PSA) between the City of Covina and CEJ Engineers, Inc. in an Amount not-to-exceed $24,080 for Construction Management and Inspection Services and authorize the City Manager to execute the contract; and

4. Authorize a project contingency amount of $6,000 (approximately 10%) to cover the cost of unforeseen construction expenses.

Approved (4 to 0); Cortez Abstain
CC 14. Street Residential Resurfacing Project – Project No. P2405 – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Accept the work performed by Gentry Brothers, Inc; and

2. Authorize the City Clerk to file a Notice of Completion for the Street Residential Resurfacing Project – Project No. P2405.

Approved (5 to 0)

7 CC 15. Amendment No. 1 to the Maintenance Agreement and Software License Agreement Between the City of Covina and Aclara Technologies LLC Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Authorize the City Manager to Execute Amendment No. 1 to the Maintenance Agreement and Software License Agreement between the City of Covina and Aclara Technologies LLC
Approved (5 to 0)
CC 16. Resolution CC 2024-72 Accepting an Easement and Offer of Dedication for Public Purposes Associated with the Development of Property at 244 E.

College Street
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
Adopt Resolution CC 2024-72 accepting an easement and offer of dedication for public purposes associated with the development of property at 244 E. College Street.

Approved (5 to 0)
CC 17. Request to Amend the City’s Classification Plan and Reorganize the Administrative Services Department and City Clerk’s Office Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
That the City Council adopt Resolution CC 2024-80 to establish and amend the City’s Classification Plan and establish job descriptions and salary ranges for the classifications of Director of Finance, Human Resources Manager and Deputy City Clerk/Records Manager within the Unaffiliated and Executive Compensation Rules.

Approved (5 to 0)
CC 18. Resolutions Relating to the Annexation of Territory to CFD 2007-1, Declaring Intention to Authorize Annexation, Adopting Boundary Map, & Setting the Public Hearing Date for October 15, 2024 (831 N. Sunflower Avenue, Covina/Annexation 34)
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Adopt City Resolution CC 2024-76, declaring intention to authorize the annexation of territory to Community Facilities District (CFD) No. 2007-1 (Public Services); and

2. Adopt City Resolution CC 2024-77, adopting boundary map showing territory proposed to be annexed in the future to Community Facilities District No. 2007-1 (Public Services).

Approved (5 to 0)

8 CC 19. Upholding & Sustaining the City of Covina Cannabis Evaluation Committee’s Decision to Reject OTC Covina LLC’s Proposal as Non-responsive and Ineligible to Continue in Cannabis Business RFP Evaluation Process and Finding the Action Exempt from CEQA
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
That the City Council adopt Resolution CC 2024-74 upholding and sustaining the City of Covina Cannabis Evaluation Committee’s decision to reject OTC Covina LLC’s proposal as non-responsive and ineligible to continue in Cannabis Business RFP evaluation process and finding the action exempt from the California Environmental Quality Act (CEQA).

Approved (5 to 0)
CC 20. Sustaining the City of Covina Cannabis Evaluation Committee's Decision to Reject Infinity Assets Covina LLC's Proposal as Non-responsive and Ineligible to Continue in Cannabis Business Evaluation RFP and Finding the Action Exempt from CEQA
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares
That the City Council adopt Resolution CC 2024-75 upholding and sustaining the City of Covina Cannabis Evaluation Committee’s decision to reject Element 7/Infinity Assets Covina LLC’s proposal as non-responsive and ineligible to continue in Cannabis Business RFP evaluation process and finding the action exempt from the California Environmental Quality Act (CEQA).

Approved (5 to 0)
CC 21. Amending Designated Authorized Signers on City’s Various City & Successor Agency Accounts & Authorizing Investment of City & Successor Agency Monies in the LAIF & Designating Officers Authorized to Order the Deposit or Withdrawal of Monies in LAIF
Motion made by: Councilmember Delgado
Seconded by: Mayor Pro Tem Linares

1. Adopt Resolution CC 2024-78 and Successor Agency Resolution SA 2024- 03, Resolutions of the City Council of the City of Covina for an Amendment to Designate Authorized Signers on the City’s Various City and Successor Agency Accounts with BMO Bank, effective August 20, 2024; and

2. Adopt City of Covina Resolution CC 2024-79 and Successor Agency Resolution SA 2024-04 Authorizing Investment of Monies in the Local Agency Investment Fund (LAIF) and Designating Officers Authorized to Order the Deposit or Withdrawal of Monies in LAIF, effective August 20, 2024.

Approved (5 to 0)

9 PRESENTATION
Chiari Malformation Awareness Month
Neika Montes provided information on Chiari Malformation, gave insight on living with the condition, and what she has been able to accomplish while advocating for increased awareness around the condition including a children's book.

Mayor King presented a proclamation declaring September as Chiari Malformation Awareness Month.

CONTINUED PUBLIC HEARINGS
CPH 1. Continued Public Hearing for Entitlement Applications for a Proposed Avid Hotel Development at 578 N. Azusa Avenue
The agenda report was provided by Planning Manager Mercy Lugo with additional input from Applicant Raj Patel.

Public comments were received from Thomas Salinas, George, Aram Alajajian, Raj Patel, Susan Zermeno, and Angelique Juarez and topics included history of the Vanlee Hotel, issues with homeless, how and when notification of the community meeting and public hearing were sent, parking concerns, assurance that the property will not be sold to another owner, selling of a hotel in a different city by the applicant, the need for a hotel in the area, proximity to residential zones, traffic concerns, the proximity of a high school, the need to amend regulation, and noise concerns.

Mayor King closed the public hearing.

Discussion from the City Council included thanking residents for attending and making their voice heard, the need for the hotel from local hospitals and businesses, changes to economic structures in the City, similar projects in comparable communities, assurance of safety measures, the visiting the project site and similar hotels in the region, and the evolving status of Covina as a destination and leader in the region.

Motion made by: Councilmember Allen
Seconded by: Councilmember Delgado
City Council approval of 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), Planned Community Development (PCD) 21-2, Tentative Parcel Map No. 84397, 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).

Approved (5 to 0)

10 ADJOURNMENT
At 9:05 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, September 3, 2024, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. _________________________
Fabian Velez, Chief Deputy City Clerk
_________________________
John C. King, Mayor/Chair

CITY OF COVINA AND

SUCCESSOR AGENCY TO THE

COVINA REDEVELOPMENT AGENCY

AGENDA ITEM REPORT
ITEM NO. CC 2
Meeting: September 3, 2024
Title: Payment of Demands
Presented by: Theresa Franke, Interim Director of Finance Recommendation: Approve Payment of Demands in the amount of $3,937,193.27.

EXECUTIVE SUMMARY/BACKGROUND:

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

Accounts Payable Warrants August 2, 2024 – August 15, 2024 CITY checks/EFTs $ 2,795,468.40
CITY payroll $ 1,039,772.32
CITY voids $ -
Worker’s Comp $ 100,548.46
$ 3,935,789.18
SACRA checks/EFTs $ 1,184.12
SACRA payroll $ 219.97
$ 1,404.09
TOTAL checks/EFTs $ 3,937,193.27
DISCUSSION:

The attached reports have been reviewed by the Interim Director of Finance.

FISCAL IMPACT:

Sufficient funding is available and the related costs are included in the Fiscal Year 23/24 and Fiscal Year 24/25 budgets.

Respectfully submitted,

CITY OF COVINA
Check Register
Aug 2, 2024 - Aug 15, 2024
Check # Check Date Vendor Name Amount
5968 07/09/2024 5438 BMO 28,636.11
5969 08/15/2024 4003 MidAmerica 2,929.51
20855 08/15/2024 788 COVINA, CITY OF 49,839.39
20856 08/15/2024 789 COVINA-FSA, CITY OF 570.84
20857 08/15/2024 2033 NATIONWIDE RETIREMENT SOLUTIONS 30,463.13 20858 08/15/2024 487 CalPERS 95,292.43
subtotal EFT/wires/direct deposits $ 207,731.41
122560 08/08/2024 84 AIRGAS-WEST 378.98
122561 08/08/2024 121 ALLDATA 1,038.75
122562 08/08/2024 206 ASCAP 439.83
122563 08/08/2024 219 AT&T 540.41
122564 08/08/2024 255 AZUSA PLUMBING & HEATNG SUPPLY 394.55 122565 08/08/2024 370 BOB BARKER CO INC 110.04
122566 08/08/2024 430 BUILDING ELECTRONIC CONTROLS 525.00 122567 08/08/2024 649 CINTAS CORP #693 314.79
122568 08/08/2024 703 UNIQUE PRINTING 8,847.56
122569 08/08/2024 783 CITY OF COVINA WATER 562.80
122570 08/08/2024 894 DF POLYGRAPH 600.00
122571 08/08/2024 970 EDISON CO 40,505.57
122572 08/08/2024 1198 GLOBALSTAR LLC 0.53
122573 08/08/2024 1215 GONZALES, RICHARD 3,164.00
122574 08/08/2024 1235 GRAINGER 577.72
122575 08/08/2024 1361 HOLLIDAY ROCK CO INC 293.08
122576 08/08/2024 1429 INLAND EMPIRE STAGES 3,172.85
122577 08/08/2024 1561 KEYSTONE UNIFORM DEPOT 393.21
122578 08/08/2024 1605 LA CNTY AUDITOR CONTROLLER 2,367.65 122579 08/08/2024 1614 LA CNTY FIRE DEPARTMENT 1,078,019.60 122580 08/08/2024 1663 LAW ENFORCEMENT MEDICAL 915.00
122581 08/08/2024 1707 LIEBERT CASSIDY WHITMORE 2,706.50 122582 08/08/2024 1754 LOWE'S COMPANIES INC 53.07
122583 08/08/2024 1788 MAMMOTH AUDIO SYSTEMS 1,100.00
122584 08/08/2024 1924 MILLERS & ISHAMS 436.44
122585 08/08/2024 1933 MISSION LINEN SUPPLY 18.96
122586 08/08/2024 1993 MPLC 453.48
122587 08/08/2024 2185 PANTAGES THEATRE NEDERLANDER GROUP 1,210.00 122588 08/08/2024 2275 POIRIER, ROBERT 140.00
122589 08/08/2024 2329 PUENTE READY MIX INC 1,352.13
122590 08/08/2024 2415 REPUBLIC MASTER CHEFS 216.05
122591 08/08/2024 2507 S & J SALES 3,612.63
122592 08/08/2024 2619 SGV EXAMINER 1,814.50
122593 08/08/2024 2676 SMART AND FINAL IRIS CORP 2,626.03 122594 08/08/2024 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 47.50 122595 08/08/2024 2769 SULLY-MILLER CONTRACTING CO 67,893.33 122596 08/08/2024 2818 GABE BF VAN LEEUWEN 577.50
122597 08/08/2024 2846 THOMAS, TERRI 2,674.50
122598 08/08/2024 2855 SPECTRUM 96.24
122599 08/08/2024 2903 TRI-XECUTEX CORP 100.00
122600 08/08/2024 2942 UNITED SITE SERVICES OF CA INC 14,876.98 122601 08/08/2024 2958 US POSTMASTER 6,285.30
122602 08/08/2024 2966 V & V MANUFACTURING 2,468.77
122603 08/08/2024 3004 VICTORY EXTERMINATING INC 75.00
122604 08/08/2024 3023 VULCAN MATERIALS COMPANY 2,119.82 Attachment A Page 1 of 5

CITY OF COVINA
Check Register
Aug 2, 2024 - Aug 15, 2024
Check # Check Date Vendor Name Amount
122605 08/08/2024 3052 WATERLINE TECHNOLOGIES INC 8,956.26 122606 08/08/2024 3070 WEST COAST ARBORISTS INC 244.00
122607 08/08/2024 3102 WILLDAN FINANCIAL SERVICES 15,950.00 122608 08/08/2024 3152 YWCA 2,041.26
122609 08/08/2024 3185 TOSHIBA FINANCIAL SERVICES 1,276.72 122610 08/08/2024 3187 WAGONER, PAMELA 952.00
122611 08/08/2024 3190 LAYNE, JONATHAN DANIEL 525.00
122612 08/08/2024 3235 COOK, SHAWNA 1,554.70
122613 08/08/2024 3656 PLAY-WELL TEKNOLOGIES 4,284.00
122614 08/08/2024 3658 ADVANCE TUTORING 627.20
122615 08/08/2024 3718 NADENE VALDEZ 539.00
122616 08/08/2024 3796 RICHARDS, WATSON & GERSHON 14,051.49 122617 08/08/2024 3943 NETFILE INC 3,000.00
122618 08/08/2024 3982 CAROL A CUGNO 892.53
122619 08/08/2024 3988 LANDSCAPE WAREHOUSE III 23.11
122620 08/08/2024 4024 PERFORMANCE TRUCK REPAIR INC 592.00 122621 08/08/2024 4089 MEASOM, DEVIN THOMAS 1,659.51
122622 08/08/2024 4201 OFFICE TEAM - A ROBERT HALF COMPANY 1,333.60 122623 08/08/2024 4246 FERGUSON WATERWORKS #1083 81.80
122624 08/08/2024 4247 UNITED WATER WORKS INC 10,782.75 122625 08/08/2024 4320 CHALLENGER SPORTS BRITISH SOCCER 2,719.50 122626 08/08/2024 4359 CHARGEPOINT, INC. 23,025.78
122627 08/08/2024 4448 FS CONTRACTORS, INC. 10,022.50
122628 08/08/2024 4455 FRONTIER 935.17
122629 08/08/2024 4483 DALE A. GARRISON 182.00
122630 08/08/2024 4509 Norman A Traub 1,943.57
122631 08/08/2024 4676 Hill Brothers Chemical Company 2,670.22 122632 08/08/2024 4704 S & J Supply Company, Inc. 1,011.59 122633 08/08/2024 4764 UniFirst Corporation 726.78
122634 08/08/2024 4765 AMC Modern IT 2,754.06
122635 08/08/2024 4766 HASA, INC. 7,487.58
122636 08/08/2024 4804 Vihulu L. Villagran 448.00
122637 08/08/2024 4813 JOHNSON CONTROLS FIRE PROTECTION LP 290.23 122638 08/08/2024 4817 Weck Analytical Environmental Services, Inc. 338.00 122639 08/08/2024 4829 Alicia A. Flores 478.80
122640 08/08/2024 4833 Michael R. Hillmann 2,470.00
122641 08/08/2024 4858 Prestine Uniforms, LLC 2,665.61
122642 08/08/2024 4863 La Verne Power Equipment 133.30
122643 08/08/2024 4871 HARRINGTON INDUSTRIAL PLASTICS, LLC 74.16 122644 08/08/2024 4885 ELIE FARAH 14,690.00
122645 08/08/2024 4931 Antonio Castro Jr 1,596.00
122646 08/08/2024 4977 Enterprise FM Trust 5,985.94
122647 08/08/2024 5075 Amalia Q. Seresinghe 1,668.80
122648 08/08/2024 5137 MasterCorp 4,578.79
122649 08/08/2024 5186 Dash Platform, LLC 961.28
122650 08/08/2024 5233 RODENT PEST TECHNOLOGIES 135.19
122651 08/08/2024 5241 BLUERAY AQUATICS 41,253.63
122652 08/08/2024 5243 TIMOTHY W HOGAN, 6,036.56
122653 08/08/2024 5245 THERESA FLORES-FRANKE 15.00
122654 08/08/2024 5252 THE YOGA DANCE CO 735.00
122655 08/08/2024 5268 ESCRIBE SOFTWARE LTD 11,903.30
122656 08/08/2024 5291 AMAZON CAPITAL SERVICES, INC 3,836.01 Attachment A Page 2 of 5

CITY OF COVINA
Check Register
Aug 2, 2024 - Aug 15, 2024
Check # Check Date Vendor Name Amount
122657 08/08/2024 5293 CLIPA, LLC 18,918.90
122658 08/08/2024 5328 PUBLIC AGENCY RISK MANAGEMENT ASSOCIATION 300.00 122659 08/08/2024 5375 TRI-STAR SAFETY SERVICES INC 2,175.37 122660 08/08/2024 5389 PREMIER WIRELESS SOLUTIONS LLC 27,632.32 122661 08/08/2024 5404 SAN FERNANDO VALLEY ALARM CO. 302.00 122662 08/08/2024 5415 ALL TEMPERATURES INC 20,000.00
122663 08/08/2024 5422 CANDELARIA MARROQUIN 1,152.66
122664 08/08/2024 5423 SUSAN T SCHOCK 266.00
122665 08/08/2024 5464 ADVANCE STORES COMPANY INC 7.34
122666 08/08/2024 5502 LOREN DESIGN 5,500.00
122667 08/08/2024 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 18,000.00 122668 08/08/2024 5545 PUENTE HILLS FORD LLC 302.44
122669 08/08/2024 5550 LEAH DAWN OSIER 350.00
122670 08/08/2024 5564 BENIR 2,800.00
122671 08/08/2024 5571 HARBOR BREEZE CORP. 1,825.00
122672 08/08/2024 5572 WEBER SCHOOL OF DANCE INC 630.00 122673 08/08/2024 99999 DIANA MALENTSYAN 30.00
122674 08/15/2024 85 AJAX SIGN GRAPHICS INC 66.15
122675 08/15/2024 158 AMERICAN TRAFFIC SOLUTIONS 17,775.75 122676 08/15/2024 219 AT&T 389.26
122677 08/15/2024 219 AT&T 56.41
122678 08/15/2024 221 AT&T MOBILITY 4.35
122679 08/15/2024 239 AUTOZONE INC 387.53
122680 08/15/2024 255 AZUSA PLUMBING & HEATNG SUPPLY 96.72 122681 08/15/2024 367 BMI GENERAL LICENSING 360.00
122682 08/15/2024 381 BOOMERANG BLUEPRINT 124.97
122683 08/15/2024 411 BRODART CO 117.82
122684 08/15/2024 437 BURRO CANYON ENT INC 20.00
122685 08/15/2024 568 CAT SPECIALTIES INC 2,469.51
122686 08/15/2024 649 CINTAS CORP #693 316.79
122687 08/15/2024 654 CITRUS CAR WASH 89.97
122688 08/15/2024 692 CODE PUBLISHING COMPANY 3,149.50
122689 08/15/2024 700 COLLEY FORD 1,279.04
122690 08/15/2024 749 BOHL PH.D., NANCY K. 1,400.00
122691 08/15/2024 766 COVINA DISPOSAL CO 20,631.33
122692 08/15/2024 771 COVINA IRRIGATING CO 404,168.57
122693 08/15/2024 894 DF POLYGRAPH 200.00
122694 08/15/2024 970 EDISON CO 52,055.07
122695 08/15/2024 1075 WEX BANK 208.83
122696 08/15/2024 1092 FORENSIC NURSE SPECIALISTS INC 1,200.00 122697 08/15/2024 1204 GOLDEN STATE WATER COMPANY 1,968.03 122698 08/15/2024 1275 HAAKER EQUIPMENT CO 42.37
122699 08/15/2024 1437 INTER-CON SECURITY SYSTEMS INC 8,500.74 122700 08/15/2024 1505 JOHNNY'S POOL SERVICE 35.25
122701 08/15/2024 1531 JW LOCK CO INC 3,482.69
122702 08/15/2024 1603 LA COUNTY DEPARTMENT OF PUBLIC HEALTH 3,424.42 122703 08/15/2024 1617 REGISTRAR-RECORDER, COUNTY CLERK 20.00 122704 08/15/2024 1617 REGISTRAR-RECORDER, COUNTY CLERK 20.00 122705 08/15/2024 1694 LEWIS ENGRAVING INC 55.13
122706 08/15/2024 1707 LIEBERT CASSIDY WHITMORE 18,539.00 122707 08/15/2024 1825 MASONIC HOMES OF CALIFORNIA 1,950.00 122708 08/15/2024 1860 SSD SYSTEMS 365.04
Attachment A Page 3 of 5

CITY OF COVINA
Check Register
Aug 2, 2024 - Aug 15, 2024
Check # Check Date Vendor Name Amount
122709 08/15/2024 1933 MISSION LINEN SUPPLY 18.96
122710 08/15/2024 2091 O REILLY AUTO PARTS 619.73
122711 08/15/2024 2101 OCLC 20,942.99
122712 08/15/2024 2204 PASADENA, CITY OF 73,079.00
122713 08/15/2024 2415 REPUBLIC MASTER CHEFS 186.59
122714 08/15/2024 2705 SOUTH COAST AQMD 707.00
122715 08/15/2024 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 441.34 122716 08/15/2024 2800 T MOBILE USA 377.07
122717 08/15/2024 2855 CHARTER COMMUNICATIONS 146.73
122718 08/15/2024 2935 UNDERGROUND SERVICE ALERT 300.08 122719 08/15/2024 2944 UNITED STATES TREASURY 3.22
122720 08/15/2024 2955 US BANK 1,750.00
122721 08/15/2024 3001 VERIZON WIRELESS 7,561.18
122722 08/15/2024 3004 VICTORY EXTERMINATING INC 75.00
122723 08/15/2024 3052 WATERLINE TECHNOLOGIES INC 47,593.64 122724 08/15/2024 3070 WEST COAST ARBORISTS INC 4,208.48 122725 08/15/2024 3274 WILLDAN 12,625.00
122726 08/15/2024 3729 SUNBELT RENTALS INC 498.71
122727 08/15/2024 3749 JCL TRAFFIC SERVICES 3,971.63
122728 08/15/2024 3964 RED WING BUSINESS ADVANTAGE ACCOUNT 300.00 122729 08/15/2024 3988 LANDSCAPE WAREHOUSE III 43.50
122730 08/15/2024 4065 VERIZON WIRELESS 267.78
122731 08/15/2024 4201 OFFICE TEAM - A ROBERT HALF COMPANY 15,574.80 122732 08/15/2024 4247 UNITED WATER WORKS INC 1,561.63
122733 08/15/2024 4350 RKA Consulting Group 1,500.00
122734 08/15/2024 4438 CALIFORNIA COMPUTER SCHOOLS, INC 150.00 122735 08/15/2024 4455 FRONTIER 5,872.18
122736 08/15/2024 4582 USABLUEBOOK 537.37
122737 08/15/2024 4667 Ocean Blue Environmental Services, Inc. 7,543.07 122738 08/15/2024 4676 Hill Brothers Chemical Company 3,875.29 122739 08/15/2024 4704 S & J Supply Company, Inc. 10,530.53 122740 08/15/2024 4714 CIR, Inc. 41,196.63
122741 08/15/2024 4764 UniFirst Corporation 2,037.28
122742 08/15/2024 4813 JOHNSON CONTROLS FIRE PROTECTION LP 780.00 122743 08/15/2024 4817 Weck Analytical Environmental Services, Inc. 406.00 122744 08/15/2024 4854 CEJ Engineers, Inc. 2,483.00
122745 08/15/2024 4858 Prestine Uniforms, LLC 2,523.43
122746 08/15/2024 4928 Springstead & Associates, Inc. 4,000.00 122747 08/15/2024 4960 Data Ticket, Inc. 340.50
122748 08/15/2024 5011 Excel Office Services 310.26
122749 08/15/2024 5038 EC AND ASSOCIATES ENGINEERING INC. 9,850.00 122750 08/15/2024 5093 A.J. Kirkwood and Associates, Inc. 540.00 122751 08/15/2024 5117 Steam It All LLC 620.00
122752 08/15/2024 5135 HYDRAULIC CRANES LLC 1,166.00
122753 08/15/2024 5139 Crown Castle Fiber LLC 925.00
122754 08/15/2024 5181 NBS Government Finance Group 3,942.50 122755 08/15/2024 5291 AMAZON CAPITAL SERVICES, INC 355.02 122756 08/15/2024 5336 ABI DOCUMENT SUPPORT SERVICES LLC 946.44 122757 08/15/2024 5343 BLUE-WHITE INDUSTRIES 2,591.17
122758 08/15/2024 5354 MALLORY SAFETY & SUPPLY LLC 113.14 122759 08/15/2024 5458 J.S. HELD LLC 5,932.50
122760 08/15/2024 5464 ADVANCE STORES COMPANY INC 21.70 Attachment A Page 4 of 5

CITY OF COVINA
Check Register
Aug 2, 2024 - Aug 15, 2024
Check # Check Date Vendor Name Amount
122761 08/15/2024 5506 QUALITY AUTO SUPPLY INC 45.80
122762 08/15/2024 5517 BATTERY CONNECTION INC. 738.66
122763 08/15/2024 5518 THE PAPE' GROUP INC 114,780.18
122764 08/15/2024 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 16,825.00 122765 08/15/2024 5566 NAPA-SOLANO CHAPTER OF INTERNATIONAL CODE COUNCIL 180.00 122766 08/15/2024 5573 GUARDIAN ALLIANCE TECHNOLOGIES, INC. 880.00 122767 08/15/2024 5574 ALYSSA M ESQUIVEL 150.00
122768 08/15/2024 99999 ABIANG, JET 177.74
122769 08/15/2024 99999 ALICIA RODRIGUEZ 300.00
122770 08/15/2024 99999 ARCELIA RUBALCAVA 240.00
122771 08/15/2024 99999 BIBERIAN, AVEDIS 71.36
122772 08/15/2024 99999 BIERWIRTH, ALISON 44.70
122773 08/15/2024 99999 BRIANNA SALAZAR 80.00
122774 08/15/2024 99999 CADEN MARTIN 80.00
122775 08/15/2024 99999 CARRILLO, LEONARDO & ERICA 44.70 122776 08/15/2024 99999 CIAN REGER 306.43
122777 08/15/2024 99999 CYNTHIA HUTCHINS 10.00
122778 08/15/2024 99999 DANIELLA ANDRADE 183.79
122779 08/15/2024 99999 GUADALUPE RUIZ 80.00
122780 08/15/2024 99999 IBARRA, AMELIA 36.96
122781 08/15/2024 99999 ITRG INC. 450.00
122782 08/15/2024 99999 JIMMY LARIOS 80.00
122783 08/15/2024 99999 JUSTIN BINGAMAN 80.00
122784 08/15/2024 99999 JUSTIN BINGAMAN 80.00
122785 08/15/2024 99999 JUSTIN BINGAMAN 80.00
122786 08/15/2024 99999 LISA EVANS 148.92
122787 08/15/2024 99999 MARIA RODRIGUEZ 80.00
122788 08/15/2024 99999 MEJIA, VICTOR MANUEL 50.47
122789 08/15/2024 99999 NYLE DUPONT 80.00
122790 08/15/2024 99999 SUNNY AGUIRRE 80.00
122791 08/15/2024 99999 XI ZHU 80.00
122792 08/15/2024 99999 XU, CAROL 46.33
122793 08/15/2024 99999 YIWEN LISERRATO 80.00
122794 08/15/2024 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 4,116.10 122795 08/15/2024 69 AFSCME District Council 36 710.40
122796 08/15/2024 775 COVINA POLICE ASSOCIATION 3,000.00 122797 08/15/2024 878 DELTA DENTAL OF CALIFORNIA 9,212.51 122798 08/15/2024 3795 PRE-PAID LEGAL SERVICES, INC 138.53 122799 08/15/2024 3846 CLEA 1,120.00
122800 08/15/2024 4255 RELIASTAR LIFE INSURANCE COMPANY 4,592.88 122801 08/15/2024 4710 Fidelity Security Life Insurance Company 998.38 subtotal checks $ 2,588,921.11
subtotal voids $ -
payroll (08/15/24) $ 1,039,992.29
payroll (//) $ -
payroll (//) $ -
workers' compensation $ 100,548.46
TOTAL checks/EFTs $ 3,937,193.27
Attachment A Page 5 of 5

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: September 3, 2024
Title: City of Covina Investment Report for Month Ended July 31, 2024 Presented by: Theresa Franke, Interim Director of Finance Charles Russom, Management Analyst
Recommendation: Receive and File.

EXECUTIVE SUMMARY:

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

DISCUSSION:

The attached report for the City and Successor Agency reflects the portfolio balances for the month ended July 31, 2024. The report is in conformity with the City’s Investment Policy as well as Government Code 53601. In accordance with the City's Investment Policy, the City Council authorizes staff to continue investing the City's idle funds in similar securities as those presented in these reports attached hereto. There are sufficient funds to meet the pooled expenditure requirements for all City funds for the next 6 months.

FISCAL IMPACT:

None to receive and file.

Respectfully submitted,

CASH AND INVESTMENT BALANCE 6/30/2024 $103,198,391.71
RECEIPTS 7/1/24-7/31/24 41,413,576.73

DISBURSEMENTS 7/1/24-7/31/24 (47,770,381.19)
CASH AND INVESTMENT BALANCE 7/31/2024 $96,841,587.25

ANALYSIS OF CASH AND INVESTMENT BALANCE - BOOK VALUE
INVESTMENT PORTFOLIO Attachment A-2 $64,023,392.51
LOCAL AGENCY INVESTMENT FUND Attachment A-4 19,143,379.31 TOTAL PUBLIC INVESTMENTS 83,166,771.82
CHECKING / PETTY / STIFEL CASH BALANCES 13,674,815.43
CASH AND INVESTMENT BALANCE 7/31/2024 96,841,587.25
CASH HELD BY BOND TRUSTEES 6,620,125.34
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANCE 7/31/2024 $103,461,712.59

CITY OF COVINA INVESTMENT REPORT
FOR THE MONTH ENDED JULY 31, 2024
The purpose of this report is to provide readers with the overall cash position of the City. There is sufficient investment liquidity to meet the pooled expenditures of all City’s funds for the next 6 months.

Attachment A -City

BOOK ACQUISITIONMATURITY MARKET

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

Drawer & Petty Cash N/A $810.00 N/A N/A $810.00
General - Checking Account BMO 8,313,665.81 N/A Demand 8,313,665.81 Public Agency Saving - Parking Fines BMO 64,186.67 N/A Demand 64,186.67 Utility Billing Account BMO 218,432.36 N/A Demand 218,432.36Workers' Compensation - Checking Account BMO 106,743.90 N/A Demand 106,743.90Payroll - Checking Account BMO 1,313,850.84 N/A Demand 1,313,850.84 Money Market BMO 2,428,526.04 N/A Demand 2,428,526.04AFLAC Flexible Spending Account BMO 16,838.55 N/A Demand 16,838.55 STIFEL Cash Per GL Various 1,211,761.26 Various Various 1,211,761.26STIFEL Investment Portfolio Various 64,023,392.51 Various Various 63,338,005.12Local Agency Investment Fund State of California 19,143,379.31 N/A Demand 19,143,379.31 Subtotal (A) $96,841,587.25 $96,156,199.86
Cash Held With 3rd Party Administrator:TRIP 2017A Covina Wilmington Trust $588.61 N/A Demand $588.61 LA County Loan Agreement U.S. Bank 1,750,088.39 N/A Demand 1,750,088.39 Other Post-Employment Benefits Charles Schwab 1,424,853.17 N/A Demand 1,424,853.172021 Taxable Pension Obligation Bonds U.S. Bank 3,444,594.99 N/A Demand 3,444,594.992019 Wastewater Refunding Bonds U.S. Bank 0.18 N/A Demand 0.18 Subtotal (B) $6,620,125.34 $6,620,125.34
TOTAL (A+B) $103,461,712.59 $102,776,325.20

CITY OF COVINA

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED JULY 31, 2024
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.

Exhibit A-2

CITY OF COVINA
Stifel
Investment Portfolio as of
July 2024
Investment Detail as of
July 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Agric MTG CorpMedium Term Note 10/12/22 99.839000 1,000,000 1,000,000.00 $ 5.1000 3134GX4R2 10/28/2025 Stifel FEDL Agric MTG CorpMedium Term Note 06/30/22 92.821000 1,000,000 915,357.70 0.9400 31422XGQ9 10/26/2026 Stifel FEDL Agric MTG Corp -
Medium Term Note 07/02/24 99.916000 1,000,000 1,000,000.00 5.2700 31424WLD2 7/9/2027 Stifel Total Agricultural Mortgage 2,915,357.70 3,000,000 $
FEDL Farm Credit Bank Bond 02/02/22 98.138000 1,000,000 998,647.01 $ 1.3200 3133ENLU2 1/21/2025 Stifel FEDL Farm Credit Bank Bond 02/02/22 93.654000 1,000,000 996,151.59 1.5000 3133ENKV1 1/13/2027 Stifel Federal Farm Credit Bank Bond 04/07/22 97.247000 1,000,000 1,010,995.52 3.1500 3133EJDV8 3/22/2027 Stifel FEDL Farm Credit Bank Bond 01/10/23 99.595000 1,000,000 1,000,000.00 5.1400 3133EN6C9 1/18/2028 Stifel Total Federal Farm Credit 4,005,794.12 4,000,000 $

Investment Detail as of
July 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Home Loan Bank Bond 06/30/22 98.426000 1,000,000 952,708.25 $ 1.0000 3130AQF40 12/20/2024 Stifel FEDL Home Loan Bank Bond 01/09/23 99.800000 2,000,000 2,000,000.00 5.0000 3130AUGG3 1/24/2025 Stifel FEDL Home Loan Bank Bond 02/21/23 99.905000 1,000,000 1,000,000.00 5.3500 3130AV3C4 3/7/2025 Stifel FEDL Home Loan Bank Bond 02/02/22 97.376000 1,000,000 1,015,612.20 2.6250 3130A6ZQ3 12/12/2025 Stifel FEDL Home Loan Bank Bond 02/13/23 99.992000 1,000,000 1,000,000.00 5.6000 3130AUXK5 3/9/2026 Stifel FEDL Home Loan Bank Bond 06/06/23 99.871000 1,000,000 1,000,000.00 5.5000 3130AWD80 6/12/2026 Stifel FEDL Home Loan Bank Bond 04/07/22 97.206000 1,000,000 1,006,293.93 3.0000 3130A2VE3 9/11/2026 Stifel FEDL Home Loan Bank Bond 03/25/24 99.964000 1,000,000 1,000,000.00 5.5000 3130B0LF4 9/21/2026 Stifel FEDL Home Loan Bank Bond 10/12/22 99.960000 1,000,000 1,000,000.00 5.4100 3130ATN94 10/18/2027 Stifel FEDL Home Loan Bank Bond 10/12/22 99.731000 1,080,000 1,079,730.00 5.5000 3130ATMD6 10/27/2027 Stifel FEDL Home Loan Bank Bond 02/06/23 99.940000 1,000,000 1,000,000.00 5.5000 3130AUTV6 2/24/2028 Stifel FEDL Home Loan Bank Bond 02/22/23 99.769000 1,000,000 1,000,000.00 5.3000 3130AV4C3 3/9/2028 Stifel FEDL Home Loan Bank Bond 04/10/23 99.967000 1,000,000 1,000,000.00 5.5000 3130AVMT6 4/28/2028 Stifel FEDL Home Loan Bank Bond 05/09/23 99.948000 1,000,000 1,000,000.00 5.0500 3130AVZG0 5/15/2028 Stifel FEDL Home Loan Bank Bond 05/17/23 99.978000 1,000,000 1,000,000.00 5.6000 3130AW5P1 5/25/2028 Stifel FEDL Home Loan Bank Bond 01/11/24 99.938000 1,000,000 1,000,000.00 5.5000 3130AYFM3 1/12/2029 Stifel FEDL Home Loan Bank Bond 01/29/24 99.978000 1,000,000 1,000,000.00 5.4000 3130AYJX5 1/23/2029 Stifel FEDL Home Loan Bank Bond 01/29/24 100.083000 1,000,000 1,000,000.00 5.3500 3130AYM86 1/24/2029 Stifel FEDL Home Loan Bank Bond 5/29/2024 1,000,000 99.918000 1,000,000.00 6.0000 3130B1ME4 6/4/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/12/24 99.702000 1,000,000 1,000,000.00 5.3500 3134H1RV7 2/8/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/05/24 99.887000 1,000,000 1,000,000.00 5.5000 3134H1RR6 2/9/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/20/24 99.775000 1,000,000 997,570.00 5.2500 3134H1TX1 2/23/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/22/24 99.597000 1,000,000 993,939.00 5.0000 3134H1UK7 2/23/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 04/24/23 99.808000 1,000,000 1,000,000.00 5.1500 3134GYQT2 5/1/2026 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 10/23/23 99.966000 1,000,000 1,000,000.00 6.0000 3134H1HY2 10/30/2028 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 03/25/24 99.860000 1,000,000.00 1,000,000.00 5.6250 3134H1WN9 3/27/2029 Stifel FEDL Home Loan MTG CorpPOOL#WN2537 04/16/24 100.283100 1,000,000 989,687.50 4.9000 3132XGZB5 12/1/2028 Stifel FEDL Home Loan MTG CorpPOOL#WN2559 4/10/2024 1,000,000 99.602300 979,062.50 4.6000 3132XGZZ2 1/1/2029 Stifel FEDL Home Loan MTG Corp
Medium Term Note 06/01/23 99.971000 1,000,000 1,000,000.00 5.8500 3134GYTL6 12/14/2027 Stifel FEDL Home Loan MTG CorpPool#WN2534 02/16/24 99.972400 1,000,000 997,187.50 4.9000 3132XGY83 12/1/2028 Stifel FEDL Home Loan MTG CorpPool #WN2479 12/04/23 100.096200 1,000,000 993,437.50 4.9400 3132XGXH4 5/1/2028 Stifel Total Federal Home Loan 32,005,228 32,080,000

Investment Detail as of
July 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Synovus BankColumbus GA CD 06/23/22 99.842000 245,000 245,000.00 $ 3.2000 87164DTM2 8/30/2024 Stifel Bank of BarodaNew York NY CD 05/09/23 99.902000 245,000 245,000.00 5.0500 06063HQL0 11/15/2024 Stifel Greenstate Credit UnionNorth Liberty IA SH CTF 05/11/23 99.982000 245,000 245,000.00 5.1500 39573LEA2 11/18/2024 Stifel Oklahoma Fedl CR UNOklahoma City OK CD 11/14/22 99.938000 245,000 245,000.00 5.0000 67886WAB3 11/22/2024 Stifel Tech Credit UnionCrown Point in CD CTF 05/15/23 99.986000 245,000 245,000.00 5.1500 87823TAD0 11/25/2024 Stifel USAlliance FCURye NY SHS CTF 11/14/22 99.953000 245,000 245,000.00 5.0000 90352RCW3 11/29/2024 Stifel Cross River BankTeaneck NJ CD 06/06/23 100.045000 245,000 245,000.00 5.2500 227563CS0 12/16/2024 Stifel Americu CR UNRome NY SHS CTF 06/13/23 100.110000 245,000 245,000.00 5.3500 03065QAP3 12/23/2024 Stifel Keypoint CR UNSan Jose CA SHS CTF 12/13/23 100.000000 245,000 245,000.00 5.4000 49332PAC4 12/27/2024 Stifel Jefferson Finl FCUMetirie LA SHS CTF 06/21/23 100.055000 245,000 245,000.00 5.2500 474067CH6 12/30/2024 Stifel Western Alliance BankPhoenix AZ CD 06/26/23 100.018000 245,000 245,000.00 5.2500 95763PPD7 1/7/2025 Stifel Knoxville TVA Employees -
Credit Union 04/13/23 98.591000 249,000 236,275.11 1.9500 499724AL6 1/16/2025 Stifel Live Oak Bkg Co -
Wilmington NC CD 03/03/22 98.304000 249,000 248,751.00 1.8500 538036HW7 2/14/2025 Stifel Corp America Family CUElgin IL CD 02/13/24 100.000000 245,000 245,000.00 5.0000 219873AA4 2/21/2025 Stifel Sound CR UNTacoma WA ShS CTF 02/06/23 100.049000 245,000 245,000.00 5.1000 83616HAC8 2/21/2025 Stifel BMW Bank North America -
Salt Lake City UT CD 03/01/22 98.119000 245,000 245,000.00 1.8000 05580AK37 3/4/2025 Stifel American Express Natl BK -
Salt Lake City UT CD 03/01/22 98.076000 245,000 245,000.00 1.8000 02589ABP6 3/10/2025 Stifel Bethpage FED CR UNBethpage NY SHS CTF 04/29/24 100.205000 245,000 245,000.00 5.2500 08756MAA8 5/13/2025 Stifel NexBank Dallas TX CD 05/09/23 100.005000 245,000 245,000.00 5.0500 653344CD1 5/15/2025 Stifel Centris FEDL CR UNOmaha NE SHS CTF 05/09/23 100.065000 245,000 245,000.00 5.0000 15643VAB8 5/24/2025 Stifel Credit Union of TexasAllen TX SHS CTF 05/11/23 100.012000 245,000 245,000.00 5.1500 22551KAZ5 5/27/2025 Stifel First Choice FEDL CR UNNew Castle PA SHS CTF 05/17/23 100.065000 245,000 245,000.00 5.0000 31949HAA9 5/27/2025 Stifel Lafayette FEDL CR UNRockville MD SHS CTF 11/22/23 100.515000 245,000 245,000.00 5.5500 50625LBP7 5/30/2025 Stifel Barclays Bank DEWilmington DE CD 05/24/22 98.463000 245,000 245,000.00 3.0500 06740KQS9 6/2/2025 Stifel Global Federal CR UNAnchorage AK SHS CTG 06/06/23 100.267000 245,000 245,000.00 5.2000 37892MAL8 6/16/2025 Stifel SCE FCUIrwindale CA SHS CTF 12/13/23 100.102000 245,000 245,000.00 5.0000 78413RAJ6 6/20/2025 Stifel Community West CR UNKentwood MI CD 12/12/22 100.108000 245,000 245,000.00 5.0000 20416JAC8 6/23/2025 Stifel Oregon CMNTY CR UNEugene OR SHS CTF 06/16/23 100.252000 245,000 245,000.00 5.1500 68584JAE9 6/23/2025 Stifel BMO Harris Bank NAChicago IL CD 06/23/22 98.517000 245,000 245,000.00 3.2000 05600XGK0 6/24/2025 Stifel Liberty Fed CR UNEvansville IN SHS CTF 07/01/23 100.430000 245,000 245,000.00 5.3000 53052LAW9 7/14/2025 Stifel American First CR UNBrea CA SHS CTF 06/30/22 98.517000 245,000 245,000.00 3.2500 02616ABJ7 7/15/2025 Stifel Valley Strong CR UNBakersfield CA SHS CTF 01/04/23 100.000000 245,000 245,000.00 5.1000 920133AL9 7/18/2025 Stifel Technology CR UNSan Jose CA SH CTF 01/09/23 100.047000 245,000 245,000.00 5.1000 87868YAH6 7/21/2025 Stifel TTCU Federal CR UnionTulsa OK CD 07/10/23 100.503000 245,000 245,000.00 5.3500 89854LAE3 7/25/2025 Stifel Communitywide FEDL CR UNSouth Bend IN SHS CTF 08/04/23 100.493000 245,000 245,000.00 5.2000 20416TBD3 8/29/2025 Stifel Flagstar Bank NA - Hicksville
NY CD 06/06/24 100.555000 245,000 245,000.00 5.3000 33847GHY1 9/12/2025 Stifel

Investment Detail as of
July 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
First Bank -
Hamilton NJ CD 06/06/24 100.406000 245,000 245,000.00 $ 5.1500 319137CJ2 9/18/2025 Stifel Washington State BankWashington IA CD 4/2/2024 100.282000 245,000 245,000.00 5.0000 93974LAG5 10/9/2025 Stifel Tennessee Valley AuthPWR Bond 1995 SER E 06/30/22 102.495000 1,000,000 1,045,423.70 6.7500 880591CJ9 11/1/2025 Stifel First Natl Bank of AmerEast Lansing MI CE 05/16/22 97.812000 245,000 245,000.00 3.0000 32110YXE0 11/28/2025 Stifel Advantage FEDL CR UNRochester NY SHS CTF 08/24/23 100.855000 245,000.00 245,000 5.3000 00790JAD4 12/31/2025 Stifel Southwest Heritage CUOdessa TX SHS CTF 06/26/23 100.582000 245,000 245,000.00 5.1000 84503PAF7 1/7/2026 Stifel Jovia FINL FEDL CR UN -
Westbury NY CD 7/2/2024 245,000 100.484000 245,000.00 5.0000 48115LAL8 1/20/2026 Stifel Truliant FEDL CR UNWinston Salem NC SHS CTF 03/09/23 100.818000 245,000 245,000.00 5.1500 89789AAH0 3/23/2026 Stifel Ally Bank -
Midvale UT CD 04/27/22 97.069000 245,000 245,000.00 2.8500 02007GQQ9 5/5/2026 Stifel Morgan Stanley PVT BK NA -
Purchase NY CD 05/14/24 100.786000 245,000 245,000.00 5.0500 61768E3X9 5/22/2026 Stifel Global FED CR UN -
Anchorage AK SHS CTF 05/14/24 100.861000 245,000 245,000.00 5.0500 37892MAP9 5/29/2026 Stifel JPMorgan Chase Bank NAColumbus OH CD 06/20/24 100.363000 245,000 245,000.00 5.4000 46657VCG3 6/25/2026 Stifel Inspire FEDL CR UN- Bristol
PA SHS CTF 06/29/23 100.855000 245,000 245,000.00 5.0000 457731AQ0 6/30/2026 Stifel GESA CR UNRichland WA CD 07/19/23 101.432000 245,000 245,000.00 5.2500 37424PAH7 7/31/2026 Stifel Pima FEDL CR UNTucson AZ SHS CTF 08/02/23 101.555000 245,000 245,000.00 5.3000 722000AC0 8/17/2026 Stifel Signature Federal Cred U 08/16/23 101.582000 245,000 245,000.00 5.3000 82671DAG2 8/28/2026 Stifel KodabankDrayton ND CD 03/09/23 101.031000 245,000 245,000.00 5.0000 50007DAC3 9/22/2026 Stifel First NATL BankDamariscotta ME CD 03/09/23 101.033000 245,000 245,000.00 5.0000 32117BFR4 9/23/2026 Stifel Austin Telco Fed CR UNAustin TX SHS CTF 11/14/22 101.258000 245,000 245,000.00 5.0500 052392CC9 11/27/2026 Stifel Baxter CR UNVernon Hills IL SHS CTF 11/14/22 101.166000 245,000 245,000.00 5.0000 07181JAV6 11/30/2026 Stifel First Foundation Bank -
Irvine CA CD 06/05/24 101.176000 245,000 245,000.00 5.0625 32026U5X0 12/14/2026 Stifel All in FED CR UnionDaleville AL SHS CTF 12/07/22 99.948000 245,000 245,000.00 4.4500 01664MAA4 12/21/2026 Stifel State Bank of India -
New York NY CD 02/01/22 93.594000 245,000 245,000.00 1.7500 856285G21 2/9/2027 Stifel Pentagon Federal CR UN -
Tysons Corner VA 02/02/22 93.368000 245,000 245,000.00 1.7000 70962LBE1 2/18/2027 Stifel Sallie Mae Bank -
Salt Lake City UT CD 02/16/22 94.584000 245,000 245,000.00 2.2000 795451BH5 2/23/2027 Stifel Beal Bank -
Las Vegas NV CD 03/01/22 94.158000 245,000 245,000.00 2.0500 07371CK81 3/3/2027 Stifel Beal Bank -
Plano TX CD 03/01/22 94.158000 245,000 245,000.00 2.0500 07371AZQ9 3/3/2027 Stifel Medallion Bank -
Salt Lake City UT CD 03/01/22 94.100000 245,000 245,000.00 2.0500 58404DNG2 3/8/2027 Stifel Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 95.579000 245,000 245,000.00 2.7000 14042TFJ1 4/13/2027 Stifel Synchrony Bank -
Draper UT CD 04/07/22 95.576000 245,000 245,000.00 2.7000 87165FK45 4/14/2027 Stifel Capital One NA -
Mclean VA CD 04/27/22 96.388000 245,000 245,000.00 3.0500 14042RRA1 5/4/2027 Stifel Goldman Sachs Bank USA -
New York NY CD 04/27/22 96.368000 245,000 245,000.00 3.0500 38149M6Y4 5/11/2027 Stifel Toyota Finl Svgs BankHenderson NV CD 05/09/22 96.741000 245,000 245,000.00 3.2000 89235MNH0 5/17/2027 Stifel Morgan Stanley Bank NASalt Lake City UT CD 05/16/22 96.866000 245,000 245,000.00 3.2500 61690UJ68 5/19/2027 Stifel Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 96.866000 245,000 245,000.00 3.2500 61768EJR5 5/19/2027 Stifel

Investment Detail as of
July 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Discover BankGreenwood DE CD 05/20/22 96.724000 245,000 245,000.00 $ 3.2000 254673E36 5/24/2027 Stifel FEDL NATL MTG ASSN Note 06/07/24 99.220000 1,000,000 1,000,000.00 5.2600 3135GATR2 6/10/2027 Stifel Credit Union New Jersey -
Ewing NJ SHS CTF 06/25/24 100.349000 245,000 245,000.00 5.4611 22552BAA9 7/9/2027 Stifel Rogue Credit UnionMedford OR SHS CTF 11/14/22 100.043000 245,000 245,000.00 5.2000 77535MAE3 11/26/2027 Stifel Ideal Credit UnionWoodbury MN SHS CTF 12/07/22 100.439000 245,000 245,000.00 4.5000 45157PAZ3 12/29/2027 Stifel Alliant Credit UnionChicago IL SHS CTF 12/20/22 101.540000 245,000 245,000.00 4.8500 01882MAA0 12/30/2027 Stifel Cornerstone BankFargo ND CD 05/01/23 101.982400 245,000 245,000.00 - 219232CR4 5/10/2028 Stifel FEDL NATL MTG ASSNPool#BSB8718 Balloon 03/05/24 98.712900 1,000,000 986,562.50 4.3800 3140LKVL4 6/1/2028 Stifel Connexus Credit UnionWausau WI SHS CTF 06/05/23 100.122000 245,000 245,000.00 5.4000 20825WBN9 6/15/2028 Stifel First FEDL S&L ASSN -
Lakewood OH CD 06/20/24 100.580000 245,000 245,000.00 5.3589 32023HBV9 6/28/2028 Stifel CY Fair FCUHouston TX SHS CTF 06/26/23 100.933000 245,000 245,000.00 5.3000 23248UAC1 7/14/2028 Stifel Numerica Credit UnionSpokane VLY WA SHS CTF 07/12/23 103.010000 245,000 245,000.00 5.1000 67054NBK8 7/31/2028 Stifel GHS FED CR UNBinghamton NY SHS CTF 08/02/23 100.698000 245,000 245,000.00 5.6000 36266LAB2 8/17/2028 Stifel Tucson FEDL CR UNTucson AZ CD 09/01/23 102.705000 245,000 245,000.00 5.0000 898812AC6 9/8/2028 Stifel Money One FCULargo MD SHS CTF 09/01/23 102.717000 245,000 245,000.00 5.0000 60936TAL3 9/14/2028 Stifel Dannemora FED CR UNPlattsburgh NY CD 12/20/23 100.254000 245,000 245,000.00 5.3000 236334AD0 12/28/2028 Stifel FEDL NATL MTG ASSN Note 05/14/24 99.907000 1,000,000 1,000,000.00 5.7500 3135GASM4 5/15/2029 Stifel Bridgewater Bank -
Bloomington MN CD 06/20/24 100.432000 245,000 245,000.00 5.3500 108622PX3 6/28/2029 Stifel ClearPath FED CR UN -
Burbank CA SHS CTF 07/09/24 100.402000 245,000 245,000.00 5.4000 18507MAD3 7/30/2029 Stifel Total Certificates of Deposit 25,097,012.31 25,078,000 $ 64,023,392.51 64,158,000 $
1,211,761.26
Stifel Total Value of Portfolio 65,235,153.77 64,158,000 $ Stifel Cash
Stifel Securities

Qty Purch Date Maturity Sale Date
Share Price at Purchase Date Net Trade Amount
Cost Basis
Value Market Value
Accrued
Interest Issuer CUSIP Held by
07/02/24 7/9/ 10,000 2027 100.000000 1, $ 1, 000,000.00 $ 1,000,000.00 000,000.00 $ FEDL Agric MTG Corp -
Medium Term Note 31424WLD2 Stifel
2,450 7/2/2024 1/20/2026 100.000000 245,000.00 245,000.00 245,000.00 Jovia FINL FEDL CR UN -
Westbury NY CD 48115LAL8 Stifel
07/09/24 7/30/ 2,450 2029 100.000000 245,000.00 245,000.00 245,000.00 ClearPath FED CR UN -
Burbank CA SHS CTF 18507MAD3 Stifel
Total 1,490,000.00 $ 1, $ 1,490,000.00 490,000.00 $ -
Qty Purch Date Maturity Sale Date
Share Price at Sale
/ Maturity Date
Original Cost
Value
Par Value at
Sale/Maturity
Gain / (Loss) on
Sale /
Redemption
Interest
Earnings Since
Purchase Issuer CUSIP Held by
06/29/22 7/1/ 2,450 2024 7/1/2024 100.000000 $ 245,000.00 $ - 245,000.00 15, $ 990.45 Oceanfirst Bank NAToms River NJ CD 67523TBE2 Stifel
06/27/22 7/1/ 2,450 2024 7/1/2024 100.000000 245,000.00 - 245,000.00 15,744.36 UBS Bank USASalt Lake City UT CD 90348J4B3 Stifel
04/18/24 4/30/ 10,000 2029 7/30/2024 100.000000 1, 1, 000,000.00 - 000,000.00 15,000.00 Corp -
Medium Term Note 3134H1K36 Stifel
Total 1,490,000.00 $ 1, $ - 490,000.00 $ 46, $ 734.81
Period Interest Revenue
Previous Month $269,947.99Previous 12 mos. $2,576,608.56

CITY OF COVINA
Investment Transaction Summary
for the Month Ended July 31, 2024
Purchased Investments
Net Revenue Analysis - for Period Ending July 31, 2024
Sold/Matured Investments

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
August 13, 2024
LAIF Home
PMIA Average Monthly
Yields

CITY OF COVINA

CITY TREASURER
125 E. COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 98-19-219
July 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
7/11/2024 7/10/2024 RW 1754983 1715407 THERESA FRANKE -7,000,000.00 7/15/2024 7/12/2024 QRD 1756923 N/A SYSTEM 317,108.16
7/17/2024 7/16/2024 RW 1757459 1717903 THERESA FRANKE -4,000,000.00 7/19/2024 7/18/2024 RD 1757586 1718033 THERESA FRANKE 5,000,000.00 7/31/2024 7/30/2024 RW 1758058 1718502 THERESA FRANKE -7,000,000.00 Account Summary
Total Deposit: 5,317,108.16 Beginning Balance: 31,826,271.15 Total Withdrawal: -18,000,000.00 Ending Balance: 19,143,379.31 8/13/24, 7:41 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-4

Statement Total
Balance Percentage
Cash Balances $13,674,815 13.22%
Local Agency Investment Fund 19,143,379 18.50%
Treasury / Agency 38,926,380 37.62%
Certificate of Deposits 25,097,012 24.26%
Funds Held by Bond Trustees 6,620,125 6.40%
Total $103,461,713 100.00%

CITY OF COVINA
Cash & Investment Holdings by Type as of July 31, 2024
*Average Investment coupon rate: 4.67% (based on weighted average of Original Cost Value) Cash Balances, 13.22%
Local Agency Investment
Fund, 18.50%
Treasury / Agency, 37.62%
Certificate of Deposits,

24.26%
Funds Held by Bond
Trustees, 6.40%

HOLDINGS BY TYPE
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\24-25\July 2024\Investment Holdings by Sector - July 24 Attachment A-5 City

CASH AND INVESTMENT BALANCE 6/30/2024 $629,567.14
RECEIPTS 7/1/24-7/31/24 5,109,071.76

DISBURSEMENTS 7/1/24-7/31/24 0.00
CASH AND INVESTMENT BALANCE 7/31/2024 $5,738,638.90

ANALYSIS OF CASH AND INVESTMENT BALANCE
CHECKING ACCOUNT $5,173,817.64
LOCAL AGENCY INVESTMENT FUND Attachment A-6 564,821.26
AVAILABLE CASH BALANCES $5,738,638.90
CASH HELD BY BOND TRUSTEES 0.00
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANC 7/31/2024 $5,738,638.90 FOR THE MONTH ENDED JULY 31, 2024
The purpose of this report is to provide readers with the overall cash position of the Successor Agency to the Covina Redevelopment Agency (Agency). There is sufficient investment liquidity to meet the pooled expenditures of all Agency's funds for the next 6 months.

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

BANK ACQUISITION MARKET

TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
Successor Agency to the Covina Redevelopment Agency:Checking Account BMO $5,173,817.64 N/A Demand $5,173,817.64Local Agency Investment Fund State of California 564,821.26 Demand 564,821.26 Subtotal (A) $5,738,638.90 $5,738,638.90
Cash Held With 3rd Party Administrator:(1) 2013 Series A Tax Allocation Bonds U.S. Bank* $0.0 N/A Demand ($0.00) Fiscal Agent: U.S. Bank(2) 2014 Series A Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank(3) 2004 Series B Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank Subtotal (B) ($0.00) ($0.00)
TOTAL (A+B) $5,738,638.90 $5,738,638.90
* Formerly BNY Mellon

SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED JULY 31, 2024
The purpose of this schedule is to show the total cash and investments held by the Successor Agency to the Covina Redevelopment Agency by account.

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
August 13, 2024
LAIF Home
PMIA Average Monthly
Yields

S/A CITY OF COVINA FOR COVINA

REDEVELOPMENT AGENCY

FINANCE DIRECTOR
125 EAST COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 65-19-007
July 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
7/15/2024 7/12/2024 QRD 1755996 N/A SYSTEM 6,301.76
Account Summary
Total Deposit: 6,301.76 Beginning Balance: 558,519.50
Total Withdrawal: 0.00 Ending Balance: 564,821.26
8/13/24, 10:58 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-6 Agency

Quarter
Ending City Agency*
7/31/2022 $88,441,724 $3,579,837
7/31/2023 $101,152,395 $3,709,246
7/31/2024. $103,461,713 $5,738,639

CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY Cash and Investments Three Year Comparison as of July 31, 2024 The purpose of this schedule is to show, for comparison purposes, the total cash and investment values for the last 3 years. *Successor Agency to Covina Redevelopment Agency
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
7/31/2022 7/31/2023 7/31/2024.
$88,441,724
$101,152,395
$103,461,713
$3,579,837 $3,709,246 $5,738,639
MONTH ENDING JULY 31, 2024
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\24-25\July 2024\Cash Comparison July 2024 Attachment A-7 City and Agency

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

Bills 41,939,954,445.84 $ 42,512,495,348.50 $ NA
Notes $ 59,113,939,716.78 $ 58,869,617,733.00 $ 424,205,708.00 Federal Agency:

SBA $ 243,005,100.60 $ 247,345,430.53 $ 1,177,502.63
MBS-REMICs $ 1,393,997.21 $ 1,367,919.70 $ 6,081.20
Debentures $ 7,950,158,519.06 $ 7,897,843,475.00 $ 71,800,570.00 Debentures FR $ - $ - $ -
Debentures CL $ 2,050,000,000.00 $ 2,048,222,200.00 $ 11,816,668.50 Discount Notes $ 25,745,075,833.27 $ 26,069,152,200.00 NA Supranational Debentures $ 2,749,827,533.33 $ 2,731,503,650.00 $ 25,105,459.00 Supranational Debentures FR $ - $ - $ -
CDs and YCDs FR $ - $ - $ -
Bank Notes
CDs and YCDs $ 14,200,015,000.00 $ 14,201,039,481.92 $ 224,477,902.76 Commercial Paper $ 10,486,013,597.15 10,359,791,180.64 $ NA Corporate:

Bonds FR - $ $ - $ -
Bonds $ 743,024,634.11 $ 732,282,707.00 $ 7,435,756.78
Repurchase Agreements $ - $ - $ -
Reverse Repurchase $ - $ - $ -
Time Deposits $ 5,269,000,000.00 $ 5,269,000,000.00 NA
PMIA & GF Loans $ 418,402,000.00 $ 418,402,000.00 NA
TOTAL $ 170,783,587,960.84 $ 171,484,285,742.80 $ 766,025,648.87 Fair Value Including Accrued Interest $ 172,250,311,391.67 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

State of California
Pooled Money Investment Account
Market Valuation
7/31/2024
Attachment A-8

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: September 3, 2024
Title: Closed Circuit Television (CCTV) Video Inspection of Sewer Collection System – Project No. S2401 – Award of Contract to Empire Pipe Cleaning & Equipment, Inc. in the Amount of $648,021.08
Presented by: Rafael M. Fajardo, Interim Director of Public Works/City Engineer Recommendation: Authorize the City Manager to execute the attached Minor Construction and Maintenance Services Agreement with Empire Pipe Cleaning & Equipment, Inc. for Closed Circuit Television (CCTV) Video Inspection of the City’s Sewer Collection System in the Amount of $648,021.08.

EXECUTIVE SUMMARY/BACKGROUND:

The City’s sanitary sewer collection system consists of approximately 639,652 linear feet (LF) or 121 miles (mi.) of gravity sewer lines and one pump station. Approximately 98% of flows from these local sewers discharge into the Los Angeles County Sanitation District’s (LACSD) trunk sewers throughout the community for transmission, treatment and eventual disposal. The remaining sewage generated within City limits is discharged into the adjacent unincorporated areas and the City of West Covina sewer systems, which subsequently discharge into LACSD trunk sewers for transmission, treatment and disposal.

DISCUSSION:

In order to continue uninterrupted municipal sanitary sewer collection services and protect public health, safety, the environment, and meet all federal, state, and local regulatory requirements and permits, the Department of Public Works must inspect, maintain, plan and complete requisite improvements to the municipal sanitary sewer collection system on an ongoing basis. The City’s Sewer System Management Plan (SSMP), adopted on December 16, 2014, includes the annual cleaning of all sewer lines, inspection and cleaning of all “hot spots” on a monthly basis, and CCTV inspection of the entire sewer system every five (5) years.

A Notice Inviting Bids for CCTV Video Inspection of the City’s Sewer Collection System was published in the San Gabriel Valley Examiner on Thursday, August 1st, 8th, and 16th 2024. Sealed bids were accepted in the Office of the City Clerk until 10:00 am on Tuesday, August 20, 2024. Beginning at 10:00 a.m. on August 20, 2024, the City Clerk publicly opened and read aloud five (5) sealed bids with the following results:

Rank Bidder Location Total Base Bid
Amount
1 Empire Pipe Cleaning & Equipment, Inc. Orange, CA $648,021.08 2 National Plant Services, Inc. Long Beach, CA $989,218.11 3 Mattucci Plumbing Incorporated Gardena, CA $1,188,525.80 4 Houston & Harris PCS, Inc. San Bernardino, CA $1,188,651.79 5 Nor-Cal Pipeline Services Roseville, CA $1,583,760.00 City staff has reviewed all bid documents for compliance and evaluated the contractor’s professional background and recently completed projects for competency. As a result, staff recommends an award of contract to the lowest responsive and responsible bidder, Empire Pipe Cleaning & Equipment, Inc., given that this firm has the necessary

background and expertise to complete the City’s CCTV Video Inspection Project and has recently completed similar projects for a number of public agencies in Southern California.

FISCAL IMPACT:

The Closed Circuit Television (CCTV) Video Inspection of the City’s Sewer Collection System – Project No.

S2401 was included in the adopted Fiscal Year 2023-24 Capital Improvement Program. Project funding will be carried over from Fiscal Year 2023-24 to Fiscal Year 2024-25 for project completion. A breakdown of anticipated project expenditures follows:

Source of Project Funds Amount Account
Sanitary Sewer $750,000 6300-2700-55350-S2401
Total $750,000

PROJECT EXPENSES
Description Amount
Contract Base Bid (Empire Pipe Cleaning & Equipment, Inc.) $648,021.08 Contingency Allowance (Approximately 10%) $64,803
Subtotal $712,824.08
Total Fiscal Impact $712,824.08
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 (b). The proposed Minor Construction and Maintenance Services Agreement for Closed Circuit Television (CCTV) Video Inspection of Sewer Collection System with Empire Pipe Cleaning and Equipment, Inc. will not result in any significant impact on the environment.

Respectfully submitted,

City of Covina
Public Works Department - Engineering DivisionClosed Circuit Television Video (CCTV) Inspection of Sanitary Sewer Collection System - Project No. S2401 Item Description Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Closed Circuit Television Video (CCTV) Inspection for each manhole per specifications in the Request for Bid. EA 159.00 2,625 $ 417,375.00 $ 50.00 $ 131,250.00 $ 143.35 $ 376,293.75 $ 42.50 $ 111,562.50 $ 165.00 $ 433,125.00 $ 2 Closed Circuit Television Video (CCTV) Inspection of 6" VCP Sewer per specifications in the Request for Bid. LF 1.64 1,458 $ 2,391.12 $ 1.54 $ 2,245.32 $ 1.27 $ 1,851.66 $ 0.94 $ 1,367.31 $ 2.63 $ 3,835.00 $ 3 Closed Circuit Television Video (CCTV) Inspection of 8" VCP Sewer per specifications in the Request for Bid. LF 1.20 590,849 $ 709,018.80 $ 1.32 $ 779,920.68 $ 1.27 $ 750,378.23 $ 0.83 $ 489,560.60 $ 1.77 $ 1,045,000.00 $ 4 Closed Circuit Television Video (CCTV) Inspection of 10" VCP Sewer per specifications in the Request for Bid. LF 1.20 33,000 $ 39,600.00 $ 1.32 $ 43,560.00 $ 1.27 $ 41,910.00 $ 0.91 $ 30,171.43 $ 1.92 $ 63,300.00 $ 5 Closed Circuit Television Video (CCTV) Inspection of 12" VCP Sewer per specifications in the Request for Bid. LF 1.20 8,581 $ 10,297.20 $ 1.71 $ 14,673.51 $ 1.27 $ 10,897.87 $ 0.97 $ 8,320.97 $ 2.04 $ 17,500.00 $ 6 Closed Circuit Television Video (CCTV) Inspection of 15" VCP Sewer per specifications in the Request for Bid. LF 1.58 3,532 $ 5,580.56 $ 2.50 $ 8,841.48 $ 1.27 $ 4,485.64 $ 1.07 $ 3,767.47 $ 2.69 $ 9,500.00 $ 7 Closed Circuit Television Video (CCTV) Inspection of 18" VCP Sewer per specifications in the Request for Bid. LF 1.91 1,119 $ 2,137.29 $ 3.91 $ 4,375.29 $ 1.27 $ 1,421.13 $ 1.00 $ 1,119.00 $ 5.14 $ 5,750.00 $ 8 Closed Circuit Television Video (CCTV) Inspection of 21" VCP Sewer per specifications in the Request for Bid. LF 1.91 1,113 $ 2,125.83 $ 3.91 $ 4,351.83 $ 1.27 $ 1,413.51 $ 1.93 $ 2,151.80 $ 5.17 $ 5,750.00 $ Total $ 989,218.11 1,188,525.80 $ 1,188,651.79 $ 648,021.08 $ 1,583,760.00 $ Empire Pipe Cleaning & Equipment, Inc. Nor-Cal Pipeline Services Bid Opening - Tuesday, August 20, 2024 - 10:00AM Base Bid Mattucci Plumbing Incorporated National Plant Services, Inc. Houston & Harris PCS, Inc.

ATTACHMENT A

ATTACHMENT B

CITY OF COVINA AGREEMENT FOR

MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated September 3, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Empire Pipe Cleaning and Equipment, Inc., a California corporation (Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Contractor as an independent contractor for the construction of the Closed Circuit Television Video (CCTV) Inspection of Sanitary Sewer Collection System – Project No. S2401.

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

C. City desires to retain Contractor and Contractor desires to serve City to perform this work 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 March 31, 2025, unless sooner terminated as provided in Section 14 of this Agreement.

2. Compensation.

A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of not-to exceed Six Hundred and Forty-Eight Thousand Twenty-One Dollars and Eight Cents ($648,021.08) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.

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 Contractor, unless the City Council and the Contractor Representative authorize the additional services in writing prior to Contractor’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 (Scope of Work and Payment Schedule), 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. Contractor’s Work.

A. Scope of Services. Contractor shall construct and install all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule) and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed in writing by the City. City may request, in writing, changes in the Scope of Work to 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 Contractor Representative shall be Craig Van Thyne, Vice President (the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Work under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.

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

D. Standard of Performance. Contractor shall perform all Work 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. Contractor has, or will secure at its own expense, all personnel required to perform the Work required under this Agreement. All of the Work required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Work. Contractor shall determine the means, methods, and details by which Contractor’s personnel will perform the Work under this Agreement.

Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work and compliance with the customary professional standards.

F. Compliance with Laws. The Contractor 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 Contractor 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 Contractor 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 construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.

G. Permits and Licenses. Contractor 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.

H. City Approval. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of City or its authorized representatives, and the quality of the workmanship shall be guaranteed for one year from date of acceptance.

I. Performance and Labor and Material Bonds. Within ten (10) business days from the execution of this Agreement, Contractor shall provide the City with: (1) a Performance Bond, which shall be maintained until the end of the warranty period set forth in subsection O of this Section 3, to assure faithful performance of this Agreement in regard to the work required to be constructed pursuant to this Agreement in the amount of the Contract; and (2) a Labor and Materials Bond to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor or materials for the work required to be constructed or installed pursuant to this Agreement in the additional amount of the Contract. The bonds shall be in substantially the form attached hereto as Exhibits C and D, incorporated herein by this reference, and approved by the City Attorney. The surety shall be a surety admitted in the State of California and approved by the City.

J. Contractor's Independent Investigation. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.

K. Contractor's Affidavit. After the completion of the Work contemplated by this Agreement, Contractor shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been filed under the provisions of the laws of the State of California.

L. Utility Location. City acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215.

M. Regional Notification Centers. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4215.

N. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All

inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.

O. Warranty. Contractor shall guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by City against any defective work or labor done or defective materials furnished.

P. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of Five Hundred Dollars ($500.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30) calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.

4. Method of Payment.

A. Invoices. Contractor 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 Contractor's fees, it shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

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 Contractor. For all reimbursements authorized by this Agreement, Contractor 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. Contractor shall make all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this agreement available during Contractor’s regular working hours to City for review and audit by City.

D. Waiver of Claims. On or before making final request for payment under Paragraph B, above, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment.

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 Contractor. With respect to computer files containing data generated for the work, Contractor 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. Contractor 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 Contractor.

6. Independent Contractor.

A. Contractor 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 Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor 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 Contractor or any of Contractor’s employees. Contractor 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. Contractor and Contractor’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Contractor’s personnel. Contractor’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 Contractor’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. Contractor shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Contractor’s personnel require to perform any of the services required by this Agreement. Contractor shall perform the services off of City premises at locations of Contractor’s choice, except as otherwise may from time to time be necessary in order for Contractor’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor’s performance of the Work 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 Contractor from time to time for Contractor’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.

B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor 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, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work 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. Contractor 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 Contractor’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 Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Contractor’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. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor 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, Contractor 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. Contractor 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 Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’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 Contractor or provided for performance of this Agreement are deemed confidential. Contractor 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. Contractor shall return all data to City upon the expiration or

termination of this Agreement. Contractor’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.

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

Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Contractor may perform similar services for other clients, but Contractor 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 Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Contractor shall incorporate a clause substantially similar to this Section 9 into any subcontract that Contractor 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, Contractor 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 Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor 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. Contractor 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. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor 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. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.

City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2).

3) Contractor 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 Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor 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 Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’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. Contractor’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. Contractor 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 Contractor 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. Contractor’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. Contractor 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 Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor 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 Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor 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 Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor 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 Contractor’s insurance and shall not contribute with it.

E. Contractor’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Contractor and Contractor’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Contractor 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, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Contractor 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, Contractor shall, within two (2) business days of notice from the insurer, phone, 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 Contractor 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 Contractor’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 Contractor’s expense, the premium thereon. Contractor shall promptly reimburse City for any

premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.

I. Evidence of Insurance. Prior to the performance of Work under this Agreement, Contractor 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. Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager. Contractor 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. Contractor 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 Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 10 of this Agreement.

K. Subcontractor Insurance Requirements. Contractor shall require each of its subcontractors that perform Work 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 Contractor with all pertinent data, documents and other requested information as is reasonably available for Contractor’s proper performance of the Work required under this Agreement.

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

13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor 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.

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 Contractor at least seven (7) calendar days before the termination or suspension is to be effective. Contractor 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. Contractor 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 Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Work required by this Agreement.

15. Force Majeure. Contractor shall not be liable for any failure to perform its obligations under this Agreement if Contractor 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 Contractor’s reasonable control and not due to any act by Contractor.

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 Contractor’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 Contractor:

Attn: Craig Van Thyne – Vice President
City of Covina Empire Pipe Cleaning and Equipment, Inc. 125 E. College Street 1788 N. Neville St
Covina, California 91723 Orange, CA 92865

17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor 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.

Contractor 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. Contractor 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 Contractor 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, C, and D 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. If the City Manager has entered into this Agreement on behalf of the City, the City Manager may approve an amendment to this Agreement and additional payment up to the amount of his contract authority. If this Agreement was originally approved by the City Council, then any amendments shall be approved by the City Council, except that the City Manager may approve amendments extending the time for performance, modifying the scope of work without any change to the maximum payment, approving a change in name of the Contractor, or terminating 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.

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. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims.

All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Article 1.5 and Section 9204, as applicable, pursuant to the definition of "claim" as individually defined therein.

30. 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.

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

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
Contractor:

Empire Pipe Cleaning and Equipment, Inc.
a California Corporation
By:

Name: Craig Van Thyne
Title: Vice President
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.)

EXHIBIT A

SCOPE OF WORK

EXHIBIT B

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 Contractor agrees to be bound by all the provisions thereof as though set forth in full herein.

2. Contractor 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. Contractor 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. Contractor 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 Contractor or by any subcontractor.

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

Contractor 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. Contractor shall comply with the provisions of California Labor Code Section 1776 which, among other things, require Contractor 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. Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors.

6. Contractor 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 Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.

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

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, Contractor 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 ____________________________________

EXHIBIT C

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Covina (“City”), State of California, has awarded to Empire Pipe Cleaning and Equipment, Inc. – 1788 N. Neville Street, Orange, CA 92865 (“Principal”) (Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

CLOSED CIRCUIT TELEVISION VIDEO (CCTV) INSPECTION OF SANITARY SEWER COLLECTION SYSTEM – PROJECT NO. S2401
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this
amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

EXHIBIT D

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Covina (“City”), State of California, has awarded to Empire Pipe Cleaning and Equipment, Inc. – 1788 N. Neville Street, Orange, CA 92865 (“Principal”) (Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

CLOSED CIRCUIT TELEVISION VIDEO (CCTV) INSPECTION OF SANITARY SEWER COLLECTION SYSTEM – PROJECT NO. S2401
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars
($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of

its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

ATTACHMENT C

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: September 3, 2024
Title: Covina Heights Paving Project – Project No. W2401 – Award of Contract to Gentry Brothers, Inc. in the Amount of $1,970,770
Presented by: Rafael M. Fajardo, Interim Public Works Director/City Engineer Recommendation: 1. Approve plans and specifications for the Covina Heights Paving Project – Project No.

W2401;

2. Award a contract for the Covina Heights Paving Project – Project No. W2401 to Gentry Brothers, Inc. as the lowest responsive and responsible bidder in the amount of $1,970,770 and authorize the City Manager to execute the contract;

3. Authorize a project contingency amount of $150,000 for any unforeseen construction expenses;

4. Award a Professional Services Agreement (PSA) to CEJ Engineers, Inc. for Construction Management & Inspection Services for a not-to-exceed amount of $74,960 and authorize the City Manager to execute the agreement; and

5. Award a Professional Services Agreement (PSA) to Willdan Engineering, Inc. for Pavement Analysis & Testing for a not-to-exceed amount of $35,000 and authorize the City Manager to execute the agreement.

EXECUTIVE SUMMARY:

As part of the City’s Fiscal Year 2023-24 Capital Improvement Program, the City Council approved the Covina Heights Paving Project and the project was carried forward to Fiscal Year 2024-25 due to requisite water system improvements that impacted the project paving schedule. The project objective is to replace existing, worn-out pavement, complete sidewalk repairs and improve other appurtenances. The project will rehabilitate approximately 2.5 miles of residential streets within the City’s Covina Heights area as outlined on the map below:

Map 1. Covina Heights Paving Project Area
Following a public bidding process, it has been determined that the lowest responsive and responsible bidder to complete the Covina Heights Paving Project is Gentry Brothers, Inc. As such, it is recommended that a contract

(Attachment A) be awarded for the Covina Heights Paving Project to Gentry Brothers, Inc. in the amount of $1,970,770 and authorize the City Manager to execute said contract.

DISCUSSION:

A Notice Inviting Bids was published in the San Gabriel Valley Examiner on Thursday, July 18th, 25th & August 1 st 2024. Sealed bids were accepted in the Office of the City Clerk until 10:00 am on Tuesday, August 20th, 2024.

Beginning at 10:00 a.m. on August 20th, 2024, the City Clerk publicly opened six (6) sealed bids with the following results:

Rank Bidder Location Amount
1 Gentry Brothers, Inc. Irwindale, CA $1,970,770
2 Sully Miller Contracting, Inc. Brea, CA $2,121,620
3 All American Asphalt Corona, CA $2,164,164
4 Hardy & Harper, Inc. Lake Forest, CA $2,315,000
5 Onyx Paving Company, Inc. Anaheim, CA $2,428,000
6 Copp Contracting, Inc. Buena Park, CA $2,455,440
City staff reviewed all bid documents for compliance and has evaluated the contractor’s professional background and recently completed projects for competency. As a result, staff recommends the award of contract to the lowest bidder, Gentry Brothers, Inc., given that this firm has completed major road reconstruction projects for a number of public agencies in Southern California. Gentry Brothers, Inc. has previously completed work within the City of Covina including the Citrus Avenue Rehabilitation Project and Rowland Avenue Resurfacing Project.

FISCAL IMPACT:

The Covina Heights Paving Project was included in the adopted Fiscal Year 2023-24 Capital Improvement Program and additional funding in Fiscal Year 2024-25 (Measure R and Measure M funds) was allocated to supplement project funding. Following is a summary of all project funding sources and associated project expenses:

PROJECT FUNDING
Source Funds Amount Account
Measure R $841,698.00 2410-2200-55310-W2401
Gas Tax $276,718.00 2300-2200-55310-W2401
Sewer $200,000.00 6300-2700-55350-W2401
Public Works CIP $260,241.80 4200-2200-55310-P2405
Water $300,000.00 6011-5080-55310-W2401
Measure R (FY25) $230,000.00 2410-2200-55310-P2505
Measure M (FY25) $122,072.20 2420-2200-55310-P2505
Total $2,230,730.00

PROJECT EXPENSES
Description Amount
Contract Base Bid (Gentry Brothers) $1,970,770
Contingency Allowance $150,000
Subtotal $2,120,770
Construction Management (CEJ Engineers, Inc.) $74,960
Pavement Analysis & Testing (Willdan) $35,000
Total Fiscal Impact $2,230,730

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,

City of Covina
Public Works Department - Engineering DivisionCovina Heights Paving Project Item Description Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Mobilization, Clearing and Grubbing and Unclassified Excavation (5% Maximum LS 66,000.00 1 $ 66,000.00 $ 69,234.00 $ 69,234.00 $ 105,000.00 $ 105,000.00 $ 70,000.00 $ 70,000.00 $ 38,500.00 $ 38,500.00 $ 111,000.00 $ 111,000.00 $ 2 NPDES/SWPPP/BMP's LS 15,000.00 1 $ 15,000.00 $ 7,500.00 $ 7,500.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 9,350.00 $ 9,350.00 $ 28,000.00 $ 28,000.00 $ 3 Traffic Control LS 164,000.00 1 $ 164,000.00 $ 75,000.00 $ 75,000.00 $ 60,000.00 $ 60,000.00 $ 50,000.00 $ 50,000.00 $ 95,515.00 $ 95,515.00 $ 333,000.00 $ 333,000.00 $ 4 Adjust Existing Manhole and Cover to Finished Surface EA 800.00 58 $ 46,400.00 $ 1,200.00 $ 69,600.00 $ 1,550.00 $ 89,900.00 $ 1,600.00 $ 92,800.00 $ 1,190.00 $ 69,020.00 $ 1,428.00 $ 82,824.00 $ 5 Adjust Existing Valve Can and Cover to Finished Surface EA 300.00 67 $ 20,100.00 $ 200.00 $ 13,400.00 $ 165.00 $ 11,055.00 $ 500.00 $ 33,500.00 $ 55.00 $ 3,685.00 $ 1,228.00 $ 82,276.00 $ 6 Cold Mill Existing AC Pavement to a Depth of 4" SF 0.80 515,000 $ 412,000.00 $ 0.82 $ 422,300.00 $ 0.70 $ 360,500.00 $ 1.45 $ 746,750.00 $ 0.90 $ 463,500.00 $ 0.66 $ 339,900.00 $ 7 Construct 4" AC Overlay TON 92.00 13,000 $ 1,196,000.00 $ 111.00 $ 1,443,000.00 $ 110.00 $ 1,430,000.00 $ 105.85 $ 1,376,050.00 $ 119.00 $ 1,547,000.00 $ 103.00 $ 1,339,000.00 $ 8 Remove and Construct 4" P.C.C. Sidewalk per SPPWC Std. Plan No. 112-2 and 113-2. SF 12.00 410 $ 4,920.00 $ 18.00 $ 7,380.00 $ 24.00 $ 9,840.00 $ 24.00 $ 9,840.00 $ 23.00 $ 9,430.00 $ 24.00 $ 9,840.00 $ 9 Remove and Construct Cross Gutter Spandrel per SPPWC Std. Plan No. 122-3. SF 17.00 150 $ 2,550.00 $ 45.00 $ 6,750.00 $ 46.00 $ 6,900.00 $ 32.00 $ 4,800.00 $ 49.00 $ 7,350.00 $ 48.00 $ 7,200.00 $ 10 Remove and Construct 6" Curb and Gutter per SPPWC Std. Plan No. 120-3. LF 90.00 100 $ 9,000.00 $ 125.00 $ 12,500.00 $ 143.00 $ 14,300.00 $ 100.00 $ 10,000.00 $ 146.00 $ 14,600.00 $ 169.00 $ 16,900.00 $ 11 Remove and Construct Driveway Approach per SPPWC Std. Plan No. 113-2. SF 12.00 150 $ 1,800.00 $ 25.00 $ 3,750.00 $ 26.50 $ 3,975.00 $ 26.00 $ 3,900.00 $ 37.00 $ 5,550.00 $ 37.00 $ 5,550.00 $ 12 Remove and Construct ADA Curb Ramp per SPPWC Std. Plan No. 111-5, Case and Type per Plan EA 9,500.00 2 $ 19,000.00 $ 9,900.00 $ 19,800.00 $ 5,600.00 $ 11,200.00 $ 9,000.00 $ 18,000.00 $ 11,200.00 $ 22,400.00 $ 16,000.00 $ 32,000.00 $ 13 Install Detectable Warnings per SPPWC Std. Plan No. 111-5 EA 400.00 10 $ 4,000.00 $ 900.00 $ 9,000.00 $ 900.00 $ 9,000.00 $ 2,700.00 $ 27,000.00 $ 2,220.00 $ 22,200.00 $ 1,228.00 $ 12,280.00 $ 14 Install Thermoplastic Striping and Pavement Markings to Match Existing in Kind. LS 10,000.00 1 $ 10,000.00 $ 4,950.00 $ 4,950.00 $ 4,950.00 $ 4,950.00 $ 7,800.00 $ 7,800.00 $ 6,900.00 $ 6,900.00 $ 28,230.00 $ 28,230.00 $ Total $ 2,164,164.00 1,970,770.00 $ 2,121,620.00 $ 2,455,440.00 $ 2,315,000.00 $ 2,428,000.00 $ Copp Contracting, Inc. Hardy & Harper, Inc. Onyx Paving Company, Inc.

Bid Opening - Tuesday, August 20, 2024 - 10:00AM Base Bid Gentry Brothers, Inc. All American Asphalt Sully-Miller Contracting Company

ATTACHMENT A

ATTACHMENT B

CONTRACT

CITY OF COVINA CONTRACT FOR
COVINA HEIGHTS PAVING PROJECT – PROJECT NO. W2401
THIS CONTRACT (“Contract”) is made and entered this 3
rd day of September, 2024 (“Effective
Date”), by and between the CITY OF COVINA, a California municipal corporation (“City”) and Gentry Brothers, Inc a California corporation (“Contractor”). Contractor’s California State Contractor’s license number is 397682; Class A. Contractor’s DIR registration number is 10000002240.

In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any postBid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference.

In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.

2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as Covina Heights Paving Project – Project No. W2401 (“Project”), as described in this Contract and in the Contract Documents.

3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor an amount not to exceed One Million Nine Hundred and Seventy Thousand Seven Hundred and Seventy Dollars ($1,970,770) in accordance with the prices as submitted in the Bid, attached hereto as Exhibit “A” and incorporated herein by this reference.

4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance, Additional Insured Endorsement (Comprehensive General Liability), Additional Insured Endorsement (Automobile Liability), and Additional Insured Endorsement (Excess Liability).

5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. § 15) or under the Cartwright Act (Cal. Bus. & Prof. Code, § 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.

6. Prevailing Wages. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply.

7. Workers’ Compensation. 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, by signing this Contract, the Contractor 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 Contract.”

8. Trenches and Other Excavations. If this Project involves the digging trenches or other excavations that will extend deeper than four (4) feet below the surface, Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to proposers prior to the deadline for submitting proposals; and (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.

9. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.

10. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.

11. Entire Agreement. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.

12. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
[SIGNATURE PAGE FOLLOWS]

CITY OF COVINA
By:

City Manager
ATTEST:

By:

Chief Deputy City Clerk
Dated:
(“CONTRACTOR”)
By:

Printed Name:

Title:

By:

Printed Name:

Title:

EXHIBIT A

EXHIBIT B

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

COVINA HEIGHTS PAVING PROJECT – PROJECT NO. W2401
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of
Dollars ($ ), this
amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications.

Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

EXHIBIT C

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

COVINA HEIGHTS PAVING PROJECT – PROJECT NO. W2401
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars
($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the

terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

ATTACHMENT C

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated September 3, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and CEJ Engineers, 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 Construction Management and Inspection Services for the Covina Heights Paving Project – Project No. W2401.

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, 2025, unless sooner terminated as provided in Section 14 of this Agreement.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Seventy Four Thousand Nine Hundred and Sixty Dollars ($74,960) (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 A. City may request, in writing, changes in the scope of services to 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.

ATTACHMENT D
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 Joaquin Cervantes, Principal (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 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.

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 Administrative Services 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.

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 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. Indemnity for Design Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, indemnify and hold harmless 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, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and reimbursement of attorney’s fees and costs of defense (collectively “Liabilities”), whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, its officers, agents, servants, employees, subcontractors, material men, 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 design professional services under this Agreement by a “design professional,” as the term is defined under California Civil Code Section 2782.8(c)(2).

B. Other Indemnities.
1) Other than in the performance of design professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, 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 “Claims”), 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 Claims 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 Claim 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 the Indemnitees in connection therewith.
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 B. 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 indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims 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 Claims 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.

C. Workers’ Compensation Acts not Limiting. Consultant’s 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.

D. 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. This hold harmless and indemnification provisions in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, Claim, tax, assessment, penalty or interest asserted against City.

E. Survival of Terms. The indemnification in 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 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. 4) Professional Liability Insurance with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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, 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 five (5) 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.

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 Attn: Joaquin Cervantes City of Covina CEJ Engineers, Inc
125 E. College Street 18800 Amar Rd., Suite B13
Covina, California 91723 Walnut, CA 91789

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 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 and B 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.

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]

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:

Title:

ATTEST:

By:

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

CEJ Engineers, Inc
a California corporation
By:

Name: Joaquin Cervantes
Title: President
By:

Name: Joaquin Cervantes
Title: Vice President
(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.)

EXHIBIT A

APPROVED FEE SCHEDULE/SCOPE OF SERVICES

Engineers ● Surveyors ● Planners
18800 Amar Rd. Suite B13, Walnut CA., 91789 / 626-667-8675 August 21, 2024

CITY OF COVINA
Rafael Fajardo, P.E
City Engineer/Public Works Director
125 East College Street
Covina, CA 91723
SUBJECT: CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR COVINA HEIGHTS PAVING PROJECT P2401
Dear Mr. Fajardo,
CEJ Engineers is pleased to have the opportunity to submit this proposal for professional engineering services related to the City’s Project. CEJ Engineers specializes in street improvement and public works projects. Our staff has extensive experience in preparing street construction plans, drainage studies, utility coordination, and preparing PS&E for various projects in accordance with local and regional standards and policies.

Our key personnel have more than 30 years of experience in working and communicating with a wide spectrum of relevant public agencies throughout Orange County and Los Angeles County. CEJ’s personnel have provided professional consulting services to cities, special districts, and other governmental agencies within Southern California and Caltrans. CEJ is dedicated to professional quality and technical excellence through a proactive QA/QC program.

The CEJ team will provide services for the aspects required for this project as per the scope of work.

The following Exhibits are enclosed:
 Exhibit A – Scope of work
We believe the CEJ Team provides the right combination of experienced staff, project understanding, and local knowledge to successfully assist the City of Covina with Inspections and Engineering Services. Please feel free to contact us to discuss any aspects of this proposal or to arrange for an interview at (626) 667-8675 or at [email protected].

Respectfully Submitted,
Joaquin Cervantes, P.E.

Principal
CEJ Engineers, Inc.
18800 Amar Rd., Suite B13
Walnut CA 91789

INSPECTION SERVICES FOR COVINA HEIGHTS CM AND INSPECTION Pg. 2
Exhibit A

SCOPE OF WORK
CEJ will provide Project management and Inspection services for the paving project as indicated on Contract documents to commence on or about September 2024. Scope of project: new curb replacement, grinding and paving and new striping. The major tasks include the following:

Perform Quality Assurance monitoring, Daily Inspections, and surveillance of the Construction Contractors activities to assure compliance with the design criteria and requirements and the Construction Contractors Project Plans.

1. Review construction document transmittals, i.e. shop drawings, Requests for Information, Requests for Change Orders, etc., submitted by the Construction Contractors prior to incorporation into the work;

2. Attend regular progress review meetings with the Construction Contractors to ascertain job progress and identify and resolve problems;

3. Respond to all of the Construction Contractors' Requests for Information;

4. Maintain shop drawings logs, tracking the date submitted by the Construction Contractors, date returned to the Construction Contractors.

5. Process plans and shop drawings submittals in a timely manner and stamp acceptable documents “Released For Construction”.

6. Maintain Request for Information Logs and Request for Change Order Logs, tracking the data submitted by the Construction Contractors and date returned to the Construction Contractors;

7. Respond to every notice of potential claim received from the Construction Contractors and take all steps necessary to mitigate delays and damages;

8. Analyze all of the Construction Contractors' claims and make recommendations for possible resolutions;

9. Maintain an accurate and current record of daily construction progress. Such record shall include daily reports, Resident Engineer's diary, use of photographs, minutes of all meetings and correspondence files;

10. Collect all Quality Assurance records including As-Built drawings, test reports, As-Built drawings (final revisions) shall be supplied by the Construction Contractors based on the as built conditions.

INSPECTION SERVICES FOR COVINA HEIGHTS CM AND INSPECTION Pg. 3
Exhibit B
Proposed Fee
Proposed Lump sum fee to not exceed $74,960.00
CLIENT: City of Covina CEJ Engineers Inc
PROJ: Covina Heights Paving Project
JOB NO: SUMMARY PROPOSAL FEE
DATE: 08/21/24
LABOR Task 1 CONSTRUCTION OVERSIGHT
Class Position/Name Hours Rate Subtotal
B Construction Manager 38.0 $160 $6,080
Subtotal $6,080
LABOR Task 2 INSPECTION SERVICES
B Senior Public Works Observer 574 $120 $68,880
Subtotal $68,880
Note:

Time Estimation based on a 60-DAY Project Schedule

PROPOSED FEE
PROPOSED FEE: $74,960
Proposal By / Project Manager: Joaquin Cervantes, P.E

EXHIBIT B

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

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 ____________________________________

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated September 3, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Willdan Engineering, 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 Pavement Analysis & Testing for the Covina Heights Paving Project – Project No. W2401.

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, 2025, unless sooner terminated as provided in Section 14 of this Agreement.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant an amount not-to-exceed Twenty-Five Thousand Dollars ($35,000) (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 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.

ATTACHMENT E

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 Chien Chen, Supervising Engineer (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 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.

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 Administrative Services 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.

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 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. Indemnity for Design Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, indemnify and hold harmless 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, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and reimbursement of attorney’s fees and costs of defense (collectively “Liabilities”), whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, its officers, agents, servants, employees, subcontractors, material men, 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 design professional services under this Agreement by a “design professional,” as the term is defined under California Civil Code Section 2782.8(c)(2).

B. Other Indemnities.
1) Other than in the performance of design professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, 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 “Claims”), 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 Claims 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 Claim 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 the Indemnitees in connection therewith.
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 B. 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 indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims 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 Claims 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.

C. Workers’ Compensation Acts not Limiting. Consultant’s 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.

D. 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. This hold harmless and indemnification provisions in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, Claim, tax, assessment, penalty or interest asserted against City.

E. Survival of Terms. The indemnification in 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 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. 4) Professional Liability Insurance with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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, 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 five (5) 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.

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 Attn: Chien Chen
City of Covina Willdan Engineering, Inc
125 E. College Street 1515 S. Sunkist Street, Suite E
Covina, California 91723 Anaheim, CA 92806

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 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 and B 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.

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]

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:

Title:

ATTEST:

By:

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

Willdan Engineering, Inc
a California corporation
By:

Name: Vanessa Munoz
Title: President
By:

Name: Kate Nguyen
Title: Secretary
(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.)

EXHIBIT A

APPROVED FEE SCHEDULE/SCOPE OF SERVICES
Pavement Analysis & Testing for the Covina Heights Paving Project – Project No. W2401 in an amount not-to-exceed $35,000.

EXHIBIT B

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

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 ____________________________________

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: September 3, 2024
Title: Adoption of Ordinance 24-07
Presented by: Brian K. Lee, AICP, Director of Community Development Recommendation: Adopt 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)”.

EXECUTIVE SUMMARY:

Ordinance 24-07 (Attachment A) was approved at introduction by a 5-0 vote of the City Council at the August 20, 2024, City Council Meeting.

DISCUSSION:

It is recommended that the City Council adopt on second reading 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)”.

FISCAL IMPACT:

There is not fiscal impact for the second reading and adoption of an ordinance.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
ORDINANCE 24-07

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)
WHEREAS, Sherman Oaks Inn, LLC/Raj Patel, is the legal owner of the property located at 578 N. Azusa Avenue. The property owner proposes to allow for the development of a hotel (Avid Hotel) consisting of 68 rooms and surface parking on a 36,732-square-foot site within the C-3A Commercial Zone (Regional or Community Shopping Center), located at 578 N. Azusa Avenue – APN 8432-006-015 and 8432-006-017; and
WHEREAS, the development of a 68-room Hotel Use necessitates the following land use entitlements collectively known as the “Project”:
1) Planned Community Development Overlay (PCD) 21-2, through the adoption of Ordinance 24-07, to establish custom development standards, corresponding to the proposed Avid Hotel Commercial Development.
2) Tentative Parcel Map No. 84397, through the adoption of Resolution CC 2024-41, to merge two parcels (APNS – 8432-006-015 and 8432-006-017) to allow for the development of a hotel (Avid Hotel) consisting of 68 rooms and surface parking on a 36,732-square-foot site. 3) Conditional Use Permit (CUP) 21-28 and Site Plan Review (SPR) 21-109, through the adoption of Resolution CC 24-42, to allow for the development of hotel use consisting of 68 rooms, surface parking on a 36,732-square-foot site, alley relocation, and associated site improvements of the Project Site.

WHEREAS, as part of its consideration of the Project, the City prepared Draft Mitigated Negative Declaration (“MND”) (SCH 2023070056) on the Project pursuant to the California Environmental Quality Action (Public Resources Code Sections 21000 et seq., “CEQA”), the Guideline for Implementation of the California Environmental Quality Act (14 California Code of Regulations, Sections 15000 et seq., the “State MND Guidelines”); and WHEREAS, Covina Municipal Code (CMC) Section 17.58.030 provides that when a proposal for a new development is made, and it is desirable to apply regulations more flexible than those applicable to other zones in this title, a planned community development district shall be established. Such districts may provide diversification in location of structure, uses and other site qualities while ensuring compatibility with uses and future developments on the surrounding areas as indicated within the general plan; and
WHEREAS, CMC Section 17.58.060 provides that an application for a change of classification to a PCD district shall be according to the requirements set forth in CMC 17.58.070 through 17.58.100; and

Ordinance 24-07 Page 2 of 7
WHEREAS, CMC Section 17.80.110 provides that the change of classification shall be determined pursuant to the procedure set forth in CMC 17.80.090 through 17.80.150 entitled “zone change” and the provisional plan shall be merged with the PCD district for the particular property so classified. A provisional plan which does not adhere to standards of development in the underlining zone may be approved when such plan fulfills the purpose of the PCD district. A change in the provisional plan enacted with a PCD district shall constitute a change in the zoning map, and such change shall be determined pursuant to CMC 17.80.080 through 17.80.150; and WHEREAS, CMC Section 17.80.130 provides that after the PCD amendment application is deemed complete, the City’s Community Development Director shall give notice of a hearing in accordance with Section 17.80.120; and
WHEREAS, CMC Sections 17.80.130.A. and B. provide that the Planning Commission shall hold a public hearing on the date and at the time and place specified in the notice, announce its decision within 30 days after the conclusion of the public hearing, recommend either approval or disapproval of the proposed PCD, and set forth findings in support of the recommendation; and WHEREAS, CMC Sections 17.80.130.B. and C. provide that the Planning Commission’s decision shall not enlarge the area of the proposed PCD amendment in any way and must immediately be filed with the City Council and a copy thereof mailed to the petitioner at the address shown on the petition; and
WHEREAS, Government Code Section 65855 requires that the Planning Commission render its decision on a zoning ordinance in the form of a written recommendation to the City Council, including the reasons for the recommendation and the relationship of the proposed PCD amendment to the City of Covina General Plan, and transmit the recommendation to the City Council in such form and manner as specified by the City Council; and WHEREAS, the Planning Commission conducted a public hearing on April 23, 2024 to consider the establishment of a proposed Planned Community Development overlay and any comments received prior to or at the public hearing either in support or in opposition to proposed PCD. The Planning Commission continued the item and hearing to the regular meeting of the Planning Commission on May 14, 2024. Following consideration of the entire record of information received at the public hearing and due consideration of the proposed PCD, the Planning Commission adopted Resolution 2024-005 PC, recommending that the City Council approve PCD 21-2 and adopt draft Ordinance CC 24-07 adopting Planned Community Development (PCD) 21-2; and
WHEREAS, CMC Section 17.80.140 provides that the hearing date of the City Council public hearing shall be set by the City Clerk for not more than 60 days after the filing of the Planning Commission’s resolution with the City Council; and WHEREAS, CMC Section 17.80.150 provides that the City Council shall hold a public hearing on the date and at the time and place specified in the notice and may either adopt, by ordinance, the PCD recommended by the Planning Commission after holding at least one public hearing thereon or modify the PCD recommended by the Planning Commission, provided the proposed modification has been referred back to the Planning Commission for a report, pursuant to Sections 17.80.150.C. and D.; and

Ordinance 24-07 Page 3 of 7
WHEREAS, on June 18, 2024, the City Council of the City of Covina held a duly noticed public hearing, as prescribed by law to consider the proposed Planned Community Development (PCD) and any comments received prior to or at the public hearing, at which time staff presented its report, and interested persons had an opportunity to and did testify either in support or in opposition to proposed Planned Community Development (PCD), continued the item and hearing to the regular meeting of the City Council on August 20, 2024, to facilitate the coordination of a community meeting between the applicant (Avid Hotel) and members of the community to address community concerns regarding the development; and
WHEREAS, on August 20, 2024, following consideration of the entire record of information received at the public hearing and due consideration of the proposed Planned Community Development (PCD), the City Council closed the public hearing on that same date; and
WHEREAS, upon the close of the public hearing, the City Council adopted Resolution CC 2024-40, adopting the Final MND (SCH 2023070056), adopting a Mitigation Monitoring and Reporting Program for the Project. Resolution CC 2024-40, and the findings therein are hereby incorporated by this reference as though set forth in full; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

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

SECTION 1. The foregoing recitals are true and correct, incorporated herein, and made an operative part of this Ordinance.

SECTION 2. CEQA. The environmental effects of the project, including the PCD, were analyzed in the Final MND. The City Council reviewed the Final MND and found that it reflects the independent judgment of the City Council and its staff, and is an adequate and extensive assessment of the environmental impacts of the Project. The City Council approved the Final MND as having been prepared in compliance with the requirements of the California Environmental Quality Act ("CEQA"), made the necessary findings, and adopted a Mitigation Monitoring and Reporting Program through Resolution CC 2024-40. Said Resolution is incorporated herein by this reference as though set forth in full. The City Council incorporates by this reference the findings and mitigation measures contained in the Final MND, and Mitigation Monitoring and Reporting Program.

SECTION 3. Findings for Approval of Planned Community Development (PCD). Based on the evidence in the record, the City Council of the City of Covina finds that the proposed PCD 21-2 is in compliance with State law and is consistent with General Plan Objective E (1)(y) which states: “Utilize the Zoning Ordinance’s Planned Community Development (PCD) process (which allows for development standard modification if certain conditions are met) as a vehicle for getting attractive, functional, compatible, and innovative projects, thus facilitating residential and nonresidential development and General Plan implementation.” Furthermore, the City Council finds that the PCD satisfies the criteria set forth in CMC Section 17.58.140, as detailed below:

Ordinance 24-07 Page 4 of 7

1. That the site for the proposed use is adequate in size and shape to accommodate the use;
Facts: The Project Site is currently occupied by a single-story 6,221 square-foot building and a single-story 485 square-foot building with office and commercial uses and a surface parking area behind the buildings. The Project Site is bisected by an alley that runs northsouth and is accessible from Glentana Street. The Project Site is relatively level, with existing infrastructure elements (i.e., streets, sidewalks, streetlights, and wet and dry utilities). The Project would be located in an urbanized area, and the proposed use would be consistent with the existing surrounding uses. While the Project would relocate an existing alley to less than 100 feet to the east within the Project Site, the relocated alley would still provide ingress and egress along Glentana Street. Furthermore, all proposed development would occur within the boundaries of the Project Site.

2. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use;
Facts: The Project would provide a new 26-foot-wide driveway along Azusa Avenue, which would be limited to right-turn ingress and egress due to the raised median located along the center of Azusa Avenue. Vehicles that exit the Project Site from this driveway can proceed northbound along Azusa Avenue and make a U-turn where the raised median ends at the intersection of Front and Azusa Avenue. The Project would relocate the existing alley along Glentana Street to less than 100 feet to the east within the Project Site. This new driveway and portion of an alley would be 25 feet wide along Glentana Street. Given the low volume of inbound and outbound traffic during the a.m. and p.m. peak hour, access from this driveway will have no right- or left-turn restrictions. Both driveways would provide adequate widths for vehicle access and proper placement for clear visibility to ensure the safety of pedestrians and cyclists. Furthermore, the Project was reviewed in accordance with the City of Covina Transportation Study Guidelines for Vehicles Miles Traveled and Level of Service Assessment. Based on the IS/MND analysis detailed in the Avid Hotel Technical Memorandum (Transportation Memo), the Project would satisfy two of the three screening criteria. It would not require a comprehensive VMT analysis. Project impacts related to VMT would be less than significant.

3. That the proposed use is not detrimental to the surrounding properties or uses permitted in the general area;
Facts: The project Site is designated as General Commercial by the City’s General Plan and is zoned C-3A Commercial Zone (Regional or Community Shopping Center). The General Plan Land Use Element refers to General Commercial as an array of uses and building types, including retail, office, services, and those permitted in the Zone Code.

Such uses should be provided in various districts of the City and generally along the major streets or at primary street intersections. Per CMC Section 17.42.030, the C-3A zone permits hotel uses with a conditional use permit. The Project would be located along Azusa Avenue, which is identified as a primary arterial within the City by the General Plan Land Use map. The Project would involve the use of interior lighting that is typical of hotel uses.

The lobby would have large glass windows and doors, while the hotel rooms would have smaller windows. The internal lighting would not be directly outward from the buildings and would not be considered new sources of substantial light. The Project’s stand-alone hotel sign near Azusa Avenue and the sign on the building would not obstruct the sight

Ordinance 24-07 Page 5 of 7
distance of motorists or pedestrians or be designed with flashing lights, moving parts, audible noises, or other devices that tend to constitute a hazard. All lighting signs would be diffused or indirect lighting and be subject to review by the planning department. All security and safety lighting at entry areas, exit doors, outdoor patio areas, parking, and perimeter would be hooding so as not to shine on abutting properties. Such lighting would be shielded, low lumen downlighting would conform to the CMC standards, and it would be assessed during the Project’s site plan review for safety and security. As a result, no light from the Project is expected to spill onto adjacent properties or be a substantial source of light from off-site locations. Therefore, this criterion has been met.

4. That the conditions stated in the decision are deemed necessary to protect the health, safety, and general welfare;
Facts: The Development Review Committee, comprised of Building and Safety, Environmental Services, Los Angeles County Fire, Covina Police Department, Planning, and Engineering, was allowed to review and comment on the project application. In addition, the proposed use has been conditioned to ensure that no potential issues would arise during operations. The staff’s comments confirm that the proposed use would operate in a manner that would be consistent with the Covina Municipal Code and would not negatively affect the public health, safety, and general welfare of the Community.

SECTION 4. The City Council hereby approves PCD 21-2, as set forth in Section 5, of this Ordinance, subject to the Conditions of Approval attached hereto as Exhibit “B.1” and incorporated herein by this reference, and applies the PCD to 578 N. Azusa Avenue (APNs 8432- 006-015 AND 8432-006-017. The zoning map shall be hereby updated to reflect the establishment of (PCD) 21-2.

SECTION 5. The following development standards for a mid-scale business/boutiquelike hotel use, establishing the Planned Community Development (PCD) District Overlay Zone for Avid Hotel, are hereby added to read as follows:

1. A business-type hotel concept includes 60 to 150 rooms and is defined as hotels that emphasize communal spaces, a grab-and-go marketplace, rooms with dedicated workspaces, and are designed with an airy retail-inspired atmosphere. This hotel concept does not offer a swimming pool/spa or large conference room amenities.

2. Mid-scale business hotel models shall have a minimum of 60 rooms, with minimum room sizes ranging between 200 square feet for a standard king room and 270 square feet for a standard double queen room.

3. The following setbacks shall be applied for mid-scale business-type/boutique hotels:” Abutting or Adjacent to
Nonresidential-Zoned
Property
Front 20’-0” minimum
Interior (Side) 15’-0” minimum
Street-Side 8’-6” minimum
Rear 25’-0” minimum

Ordinance 24-07 Page 6 of 7

4. The required Off-Street parking ratio for hotels with rooms ranging between 60 to 150 rooms shall have a parking ratio threshold of 0.8.

5. Business-type/boutique hotels shall not be required to provide a pool/spa or large conference room areas. Each development may include ancillary uses such as cafes, graband-go markets, co-working spaces, on-sale liquor, business services, and fitness centers.

6. Porta-Caches shall not be required as main entry features for mid-scale business/boutiquelike hotel models.

SECTION 6. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The City Council hereby declares that it would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable.

SECTION 7. Savings Clause. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any ordinance, which violation was committed prior to the effective date of this Ordinance, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinances.

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

SECTION 9. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published within 15 days after its passage, in accordance with Section 36933 of the Government Code.

PASSED, APPROVED and ADOPTED this __ day of _______, 2024.

City of Covina, California
BY:

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

Ordinance 24-07 Page 7 of 7
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 24-07 was introduced for first reading at a regular meeting on the ___ day of _____, 2024.

Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the __ day of ____, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: September 3, 2024
Title: Designation of Voting Delegate and Alternates for the League of California Cities Annual Conference Which Includes the Annual Business Meeting – October 16-18, 2024 Presented by: Angel Carrillo, Deputy City Manager
Recommendation: 1. Designate Councilmember Walter Allen, III, as the voting delegate and Councilmember Patricia Cortez, as the alternate to represent the City at the Annual Business Meeting of the League of California Cities General Assembly; and

2. Direct the Chief Deputy City Clerk to submit the required "Voting Delegate Form" to the League's Sacramento Office no later than September 25, 2023.

EXECUTIVE SUMMARY:

The League of California Cities holds an Annual Conference. This year, the Annual Conference is scheduled for October 16-18, 2024, in Sacramento. An important part of the Annual Conference is the Annual Business Meeting, scheduled to be held on October 18, 2024. At this meeting, the League membership considers and takes action on resolutions that establish League Policy. The City is requested to select a delegate and alternate to vote on the City's behalf at this meeting.

DISCUSSION:

In order to vote at the Annual Business Meeting, the City Council must designate one voting delegate. In the event that the designated voting delegate is unable to serve in that capacity, the City may appoint up to two alternate voting delegates.

Councilmember Walter Allen, III currently serve as the delegate to the Los Angeles Division of the League of California Cities and also serves on the League's Public Safety Policy Committee. Councilmember Cortez has recently served as the delegate to the Los Angeles Division of the League of California Cities. The Council may choose to select any member of the Council to serve as the delegate and alternate regardless of their current involvement with the League. The League is requesting that the City take action on delegate and alternate by October 18, 2024, and that the City submit the delegate and alternate selection form by Wednesday, September 25, 2024.

FISCAL IMPACT:

The City Council 2024-25 budget has allocated funds for members of the City Council to attend the conference.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

DATE: Wednesday, July 10, 2024
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 16-18, 2024 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 18, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 25. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

Council Action Advised by September 25, 2024

ATTACHMENT A

For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 25. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). Page 216 of 346 CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: September 3, 2024
Title: Consideration of the Salary Schedules & Memorandum of Understanding between the City of Covina and American Federation of State, County and Municipal Employees, Local 3325 (“AFSCME”) & Amending the City’s Classification Plan for Account Clerk I/II Presented by: Chris Marcarello, City Manager
Angel Carrillo, Deputy City Manager
Theresa Franke, Interim Finance Director
Joanna Espinosa, Senior Human Resources Analyst
Racha Zeitoun, Human Resources Analyst
Recommendation: Adopt Resolutions CC 2024-81 approving the salary schedules and Memorandum of Understanding between the City of Covina and American Federation of State, County and Municipal Employees, Local 3325 (“AFSCME), Effective July 1, 2024; and adopt Resolution CC 2024-82 to revise the existing Account Clerk I/II job description.

EXECUTIVE SUMMARY:

The City has four (4) recognized bargaining units that represent various employee groups. Labor agreements for this group expired on June 30, 2024. Accordingly, City staff has met and conferred with representatives from the group to negotiate successor agreements and compensation rules to be effective on July 1, 2024. As a result of this process, AFSCME employees have reached tentative agreements on terms and desire to enter into a new agreement with the City.

Additionally, as a result of these discussions, it is requested that the City Council consider amendments to the classification of Account Clerk I/II. The job specifications are attached with Resolution CC 2024-82 as Attachment B hereto.

DISCUSSION:

As a general policy goal, the City seeks to compensate its employees at the 60th percentile of the market (equal to or higher than 60% of comparison agencies) for total compensation. To achieve this goal, over the last nine (9) months, City staff and group representatives have completed a collaborative process of identifying agencies and classifications to include in a market comparison so that the City of Covina will remain competitive in the marketplace. This process has involved the study of each groups’ classifications, discussion of applicable total compensation items and an evaluation of the relationships between certain job series.

The terms of the tentative agreement arrived at thus far are as follows:
 Term: 4-years; July 1, 2024 – June 30, 2028
 Market Adjustment: For specified classifications, adjust total compensation to the 60th percentile of the market effective July 1, 2026.
 Cost of Living Adjustment: 3% per year in Fiscal Years 2025, 2026, 2027 and 2028  Health Insurance Cafeteria Benefit: $90 per month increase in Fiscal Year 2025, $75 per month increase in Fiscal Years 2026, 2027 and 2028.

 Mid-Agreement Total Compensation Review: City will complete an update of existing market study in Spring 2026 to maintain position at the 60th percentile of the market. Should the City’s total compensation fall below this position, provide market adjustments effective July 1, 2026.  Miscellaneous Items: Add Juneteenth as a recognized City holiday and increase floating holiday leave by 10 hours; increase longevity pay by $500 per tier; phased increase to bilingual pay of $25 per month in Fiscal Years 2025, 2026, 2027, 2028; continuance of vacation cash out provisions.  Mutual Goal: Meet and confer to discuss increasing the City’s total compensation from the 60th to the 65th percentile of market, depending on the City’s ability to afford such increases.  Comparison Agencies: Arcadia, Azusa, Baldwin Park, Claremont, Glendora, Monrovia, Pomona, West Covina
 Miscellaneous Items: change education incentive pay to a percentage (3% for Masters, 2% for Bachelors, 1% for certifications)
Based on the successful negotiations with this employee group, it is recommended that the City Council consider approving new memorandum of understanding, effective July 1, 2024.

Human Resources continues to review the operating structure and job classifications in the City’s various departments to ensure competitiveness with the labor market and address changing operational needs. Based on the review of the current staffing needs in the Finance Department, it was determined that the changes being recommended herein are necessary to support the growing needs of the Department's operations and the public it serves. This will also support succession planning for the City and provide a better career ladder for employees.

Therefore, it is recommended that the City amend the job classifications for Account Clerk I/II.

FISCAL IMPACT:

The City’s FY 2024-25 budget included COLA and benefit adjustment estimates in anticipation of this agreement.

The salaries for the Account Clerk I/II are not impacted by the changes to the job descriptions.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.