Agenda packet — Covina City Council, February 18, 2025 (part 2 of 2)

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

Page 174 of 256 ends

1 12923/0001/1924106-1

ATTACHMENT A

FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF COVINA

AND PROFESSIONAL ACCOUNT MANAGEMENT, LLC (PAM)
THIS FOURTH AMENDMENT to the Agreement to provide parking citation processing and collection services (Agreement) is made and entered into as of February 28, 2025 by and between the City of Covina, a California municipal corporation (hereinafter referred to as “City”), and Professional Account Management, a Wisconsin limited liability corporation (“PAM"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. This Fourth Amendment is made with the respect to the following facts and purposes:

A. The parties entered into that certain Professional Services Agreement for processing and collection of the City’s parking citation accounts with a term of March 1, 2017 through February 28, 2022 with the option to extend the agreement for five (5) additional one-year terms upon mutual agreement.

B. On February 28, 2022 the parties agreed to extend the term of the agreement for one year ending on February 28, 2023.

C. On February 28, 2023 the parties agreed to extend the term of the agreement for one year ending on February 28, 2024.

D. On February 28, 2024 the parties agreed to extend the terms of the agreement for one year ending on February 28, 2025.

E. The parties now desire to extend the term of the agreement to February 28, 2026 and to amend the Agreement as set forth in this Amendment.

2. Section 1 of the Agreement entitles “Term” is hereby emended to read as follows:

“The term of this Agreement shall be from the Effective Date through February 28, 2026, unless sooner terminated as provided in Section 20 of this Agreement. The City may, upon mutual agreement, extend the contract for one (1) additional one- year term. In no event shall the contract be extended beyond February 28, 2027.”

3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect.

The parties, through their duly authorized representatives, are signing this Fourth Amendment on the date stated in the introductory clause.

Page 175 of 256 ends

2 12923/0001/1924106-1
City of Covina,
a California municipal corporation
By:

Name:

Title:

ATTEST:

By:

Name: Fabian Velez
Title: Chief Deputy City Clerk
APPROVED AS TO FORM:

By:

Name: Candice K. Lee
Title: City Attorney
Professional Account Management
a Wisconsin LLC
By:

Name:

Title:

By:

Name:

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

Page 176 of 256 ends

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: February 18, 2025
Title: Street Residential Resurfacing Project – Project No. P2505 – Award of Contract to Gentry Brothers, Inc. in the Amount of $524,095
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Approve plans and specifications for the Street Residential Resurfacing Project – Project No. P2505;

2. Award a contract for the Street Residential Resurfacing Project to Gentry Brothers, Inc. as the lowest responsive and responsible bidder in the amount of $524,095 and authorize the City Manager to execute the contract; and

3. Authorize a contingency amount of $52,410 (approximately 10%) for any unforeseen construction expenses.

EXECUTIVE SUMMARY:

As part of the City’s Fiscal Year 2024-25 Capital Improvement Program, the City Council approved the Street Residential Resurfacing Project. The project’s objective is to replace existing, worn-out pavement, complete sidewalk repairs as well as improve other appurtenances citywide. If approved by the City Council, this project is slated to rehabilitate six (6) residential streets that total 0.75 miles of pavement rehabilitation and the project area will primarily focus on the following locations:
 West Bridger Street
 North Vogue Avenue
 North Enid Avenue
 North Waterbury Avenue
 West Glentana Street
 North Janalinda Street
Following a public bidding process, it has been determined that the lowest responsive and responsible bidder for the project is Gentry Brothers, Inc. As such, it is recommended that a contract (Attachment A) be awarded for the Street Residential Resurfacing Project to Gentry Brothers, Inc. as the lowest responsive and responsible bidder and authorize the City Manager to execute the contract.

DISCUSSION:

A Notice Inviting Bids for the Street Residential Resurfacing Project – Project No. P2505 was published in the San Gabriel Valley Examiner on Thursday, January 16th, January 23rd, and January 22nd, 2025.

Sealed bids were accepted in the Office of the City Clerk until 10:00 am on Tuesday, February 4 th, 2025.

Beginning at 10:00 a.m. on February 4
th, 2024, the City Clerk publicly opened six (6) sealed bids with the following result:

Rank Bidder Location Base Bid Amount
1 Gentry Brothers, Inc. Irwindale, CA $524,095
2 Vance Corporation Beaumont, CA $604,438.57

Page 177 of 256 ends

3 Hardy & Harper, Inc. Lake Forest, CA $680,000
4 Onyx Paving Company, Inc. Anaheim, CA $682,000
5 All American Asphalt Baldwin Park, CA $698,275
6 LCR Earthwork & Engineering, Corp Ontario, CA $983,025 City staff has reviewed all bid documents for compliance and has evaluated the contractors’ professional background and recently completed projects for competency. As a result, City staff recommends an award of contract to the lowest responsive and responsible bidder, Gentry Brothers, Inc. given that this firm has completed major road reconstruction projects for several public agencies in Southern California, including the City of Covina’s Citrus Avenue Rehabilitation Project, Rowland Avenue Resurfacing Project, Covina Heights Paving Project, and Barranca Avenue/Cienega Avenue Street Resurfacing Projects.

FISCAL IMPACT:

The Street Residential Resurfacing Project – Project No. P2505 was included in the adopted Fiscal Year 2024-25 Capital Improvement Program. A portion of project funding (Measure R & Measure M) was used as a part of the Covina Heights Paving Project. Moreover, $50,000 in funding of Measure M funding from the Cienega Street Resurfacing Project – Project No. P2508 has been reallocated to the Street Residential Resurfacing Project – Project No. P2505 via a project-to-project budget transfer for project completion. An updated balance of available project funding is noted below:

Source of Project Funds Amount Account
Measure M $430,167.40 2420-2200-55310-P2505
Sanitary Sewer $150,000.00 6300-2700-55350-P2505
Total $580,167.40

PROJECT EXPENSES
Description Amount
Contract Base Bid (Gentry Brothers, Inc.) $524,095
Contingency Allowance $52,410
Total Fiscal Impact $576,505
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,

Page 178 of 256 ends

Report Approval Details
Document Title: Street Residential Resurfacing Project - Project No. P2505 - Award.docx
Attachments: - Attachment A - CONSTRUCTION CONTRACT - Gentry Bros, Inc.docx Final Approval Date: Feb 13, 2025
This report and all of its attachments were approved and signed as outlined below:

Raphael Guillen
Rafael Fajardo
Theresa Franke
Fabian Velez
Chris Marcarello

Page 179 of 256 ends

Page 180 of 256 ends

ATTACHMENT A

CONTRACT

CITY OF COVINA CONTRACT FOR
STREET RESIDENTIAL RESURFACING PROJECT – PROJECT NO.
2505
THIS CONTRACT (“Contract”) is made and entered this 18TH day of February, 2025 (“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 Street Residential Resurfacing Project – Project No. P2505 (“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 Five Hundred and Twenty-Four Thousand and Ninety-Five Dollars ($540,095) 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,

Page 181 of 256 ends

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]

Page 182 of 256 ends

CITY OF COVINA
By:

City Manager
ATTEST:

By:

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

Printed Name:

Title:

By:

Printed Name:

Title:

Page 183 of 256 ends

EXHIBIT A

Page 184 of 256 ends

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:

STREET RESIDENTIAL RESURFACING PROJECT – PROJECT NO. P2505 (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.

Page 185 of 256 ends

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.

Page 186 of 256 ends

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:

STREET RESIDENTIAL RESURFACING PROJECT – PROJECT NO. P2505 (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

Page 187 of 256 ends

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.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Page 188 of 256 ends

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: February 18, 2025
Title: Additional Funding Allocation from the Street Trees and Landscape District Fund and Approval of Change Order for Gentry Brothers, Inc in the Amount of $74,525 for the Cienega Avenue Street Resurfacing Project – Project No. P2508 Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Approve Change Order from Gentry Brothers, Inc in the amount of $74,525; and

2. Approve Resolution CC 2025-11 appropriating $74,525 from available Street Trees and Landscape District Fund – Fund Balance to account number 2720-2250-55030-P2508.

EXECUTIVE SUMMARY/BACKGROUND:

The Covina Landscaping District No. 1 (hereafter referred to as “District”) was formed April 6, 1981, pursuant to the provisions of the California Streets and Highways Code, Division 15, Part 2, Landscaping and Lighting Act of 1972 (hereafter referred to as “1972 Act”), in order to provide and maintain public landscape improvements in specified areas within the City of Covina.

Revenue collected from assessed properties provides funds for the landscape maintenance of eighteen (18) active zones in the City. The particular zone of which the proposed Change Order’s scope of work falls under is below:
 Zone 2 - Arrow Grand Circle Area
Description: Located in the north-central region of the City, south of Arrow Highway, north of Cienega Avenue, and west of Grand Avenue. The Zone was established in April 1981. The annual assessments provide for landscape maintenance at the entrances to Arrow Grand Circle off of Arrow Highway, as well as the north side of Cienega Avenue between Grand Avenue and Barranca Avenue that is adjacent to the properties within the Zone.

Assessment Methodology: Based on lot size and capped per Proposition 218; recommend continuing the maximum assessment of $17.00 per 1,000 square feet of lot size to cover zone expenses.

City staff is recommending the use of Street Trees and Landscape District Funds to install a total of 54 new trees along Cienega Avenue between Grand Avenue and Barranca Avenue.

DISCUSSION:

During construction, the City submitted a requested to Gentry Brothers, Inc. for a change order to plant a significant number of trees alongside the northern walkway of Cienega Avenue. Given that this area is within the Covina Landscaping District No. 1 – Zone 2, City staff proposes to use $74,525 from available Street Trees and Landscape District Funds in order to complete the installation. Approval of this change order will add 27 Sycamore and 27 Brisbane Box 36-inch box trees to the northside walkway along Cienega Avenue.

FISCAL IMPACT:

Approval of Resolution CC 2025-11 will appropriate $74,525 from available Street Trees and Landscape District Fund – Fund Balance to account number #2720-2250-55030-P2508 in order to fund the installation of 54 new trees along Cienega Avenue.

Page 189 of 256 ends

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

Respectfully submitted,

Page 190 of 256 ends

ATTACHMENT A
RESOLUTION CC 2025-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2024/2025 CAPITAL

IMPROVEMENT PROGRAM BUDGET AND INCREASE FUNDING

FROM AVAILABLE STREET TREES & LANDSCAPE DISTRICT FUND
– FUND BALANCE FOR USE TOWARDS THE CIENEGA AVENUE
STREET RESURFACING PROJECT – PROJECT NO. P2508 IN THE
AMOUNT OF $74,525
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the Fiscal Year 2025 Operating Budget & Capital Improvement Plan (CIP) was approved on June 4, 2024; and
WHEREAS, the approved Operating Budget and Capital Improvement Plan (CIP) is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and WHEREAS, the City of Covina wishes to amend the 2024/2025 Capital Improvement Program Budget to establish an Expenditure Budget in the Street Trees and Landscape District Fund for use towards the Cienega Avenue Street Resurfacing Project – Project No. P2508.

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

SECTION 1. Amend the Fiscal Year 2024/2025 Capital Improvement Program Budget for the Cienega Avenue Street Resurfacing Project – Project No. P2508.

SECTION 2. Establish an expenditure account and appropriate $74,525 from available Street Trees and Landscape District Fund – Fund Balance for use in the Cienega Avenue Street Resurfacing Project – Project No. P2508:

Account No. Account Description Amount ($) Increase/Decrease 2720-2250-
55030-
P2508
Street Trees and Landscape
District-Street TreesLandscape ImprovementsCienega Avenue Street Resurfacing Project –
Project No. P2508
$74,525 Increase
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18th day of February, 2025.

Page 191 of 256 ends

Resolution CC 2025-11 Page 2 of 2
City of Covina, California
BY:

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

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-11 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of February, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
_________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

Page 192 of 256 ends

TO: City of Covina DATE:

Department of Public Works
ATTN: Rafael Fajardo
PREPARED BY: Joe Palomera
PROJECT NAME:

SCOPE OF SERVICES:

ADDITIONAL WORKING DAYS:

ITEM # QTY UNIT
1 1 LS Add Trees along Cienega Ave 74,525.00 $ $ 74,525.00 TOTAL 74,525.00 $
384 E. LIVE OAK AVENUE, IRWINDALE, CA 91706
626-357-9631 | FAX 626-357-6322
TOTAL
Change Order Request #02

DESCRIPTION UNIT PRICE
1/30/2025
Barranca and Cienega Resurfacing Project
Adding in trees along Cienega Ave

ATTACHMENT B

Page 193 of 256 ends

Page 194 of 256 ends

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: February 18, 2025
Title: Public Hearing Considering the Adoption of Resolution CC 2025-10, Approving Participation in the Fifth Year of the Los Angeles County Permanent Local Housing Allocation Program, and Considering the Funding-Related Allocation Presented by: Brian K. Lee, Director of Community Development Recommendation: 1. City Council to open the public hearing and consider public testimony and close the public hearing; and

1. Adopt Resolution CC 2025-10, approving participation in the fifth year of the Los Angeles County Permanent Local Housing Allocation Program, specifying the use of PLHA funds, & amending the FY 24-25 Community Development Budget; and

2. Authorize the City Manager or his designee to execute the Participation Agreement and other related documents as necessary.

EXECUTIVE SUMMARY/ BACKGROUND:

In 2017, Senate Bill 2 (Building Homes and Jobs Act) created the Permanent Local Housing Allocation (PLHA) Program, which provides a permanent source of funding for affordable housing in the State of California. PLHA revenue is generated through Property Transfer Fees to increase affordable housing stock in California. The Los Angeles Community Development Authority (LACDA), on behalf of Los Angeles County, applied to the California Department of Housing and Community Development (HCD) for its annual allocation. This allocation includes funding for the LACDA to administer the program and for the Urban County Participating Cities to implement housing programs, similarly to how Community Development Block Grant (CDBG) funds are allocated to non-entitlement cities like Covina.

For Year Five 2023 Allocation (related to fees collected in FY 2023-2024), it is estimated that the County will allocate approximately $9,451,755 to Participating Cities through the program. A Notice of Award letter was issued on December 3, 2024, by LACDA to announce Covina’s tentative Year Five 2023 PLHA funding allocation of $133,193 (see Attachment B). This funding source varies annually depending upon the level of real estate transaction activities. The LACDA retains all administration authority for planning, reporting, and monitoring purposes. For the City to continue to participate in the program, the LACDA requires a Letter of Intent which was submitted on February 5, 2025 (see Attachment E); a “Proposed Exhibit A form for the State Permanent Local Housing Allocation Program” (Attachment C) which was completed and submitted on February 5, 2025; proof of 30-day Public Notice and a resolution approving the program and the City’s participation in the PLHA Program (Attachment D) which will be submitted following its approval.

DISCUSSION:

The goal of PLHA funds is to maximize the amount of funds available to cities to finance the creation and preservation of affordable housing. Any programs identified should be prepared to begin implementation. A list of eligible activities provided by LACDA is shown in Attachment A, and includes activities such as:
 Multifamily Rental Housing, which includes predevelopment, development, acquisition, rehabilitation, and preservation of multifamily or rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households (up to 120% of the Area Median Income)

Page 195 of 256 ends

Project Identification for FY 2023-2024 (as awarded in FY 2024-2025) Funds:

Of the $179,976 in Year One 2019 Allocation, $154,976 was allocated to future City use as a Navigation Center, interim housing, or similar project, and $25,000 was allocated to the San Gabriel Valley Regional Housing Trust as matching seed money. In Year Two 2020 Allocation, $279,739 was allocated to future City use as a Navigation Center, interim housing, or similar project. All of the $350,361 in Year Three 2021 funding and $175,602 in Year Four 2022 funding was allocated to the Multifamily Rental Housing Predevelopment activity category.

It is recommended that the full balance of Year Five 2023 Allocation, $133,193, be allocated to future City use to fund the potential predevelopment, development, acquisition and feasibility studies associated with the creation of a potential affordable housing rental project. A full list of eligible activities is provided in Attachment A.

Unexpended program funds are allowed to be carried over from year to year. Decisions on the use of future PLHA funds can be made on an annual basis. The public hearing today was properly noticed and provides the public with a forum to discuss this matter.

FISCAL IMPACT:

There is no impact to the general fund. Funds expended will be reimbursed through the PLHA Program as detailed in Resolution CC 2025-10 attached hereto. Funds will be deposited to Account 2120-4700-42290.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

This activity will not result in a reasonably foreseeable change to the physical environment; it is exempt from CEQA under State CEQA Guidelines 15061 (b) (2) and (3) and does not constitute a project.

Respectfully submitted,

Page 196 of 256 ends

ATTACHMENT B: PLHA ELIGIBLE ACTIVITIES
 Multifamily Rental Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation  Operating Subsidies
The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, or rental housing that is Affordable to extremely low-, very low-, low-, or Moderate-income households (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas, see appendix B for a list of High-cost areas, including necessary Operating subsidies).
 Affordable Rental, Ownership, and ADU Housing
 Acquisition  Predevelopment  Development
 Rehabilitation  Preservation
The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in highcost areas. ADUs shall be available for occupancy for a term of no less than 30 days.  Matching Funds to Regional Housing Trust Funds
Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
 Housing for Homeless
 Rapid Rehousing  Rental Assistance  Supportive Case Management  Operating Costs for Navigating Centers  Capital Costs for Navigation Centers  Operating Costs for Emergency Shelters  New Construction  Rehabilitation  Preservation
Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. (A) This Activity may include subawards to Administrative Entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households. (B) Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core Department of Housing and Community Development 13 2019 PLHA Final Guidelines components of Housing First, as provided in WIC Section 8255, subdivision (b).

ATTACHMENT A

Page 197 of 256 ends

 Accessibility Modifications for Owner-Occupied Housing Accessibility modifications in Lower-income Owner-occupied housing.

NOTE: This PLHA Activity will now be funded under Affordable Rental, Ownership, and ADU Housing/Rehabilitation
 Homeownership Opportunities Assistance
Homeownership opportunities, including, but not limited to, down payment assistance.

GOALS:

Estimated Number of Accomplishments
Performance Indicators: Units or Households

Page 198 of 256 ends

December 3, 2024
Chris Marcarello, City Manager
City of Covina
125 E. College Street
Covina, CA 91723
Dear Chris Marcarello:

AWARD LETTER NOTICE YEAR 5 (2023 ALLOCATION)

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
The Los Angeles County Development Authority (LACDA) is pleased to announce that the City’s tentative Year 5 Permanent Local Housing Allocation (PLHA) funding allocation is $133,193. Overall, LACDA experienced a decreased level of funding for Year 5 PLHA funds, which is why you will see less funding available now compared to prior years.

Once the LACDA receives the Year 5 funding from the State of California Department of Housing and Community Development (HCD), the city of Covina will be required to enter a contract with the LACDA that will set forth the conditions for funding and program/regulatory requirements that are required to be met for the funding and implementation of the City’s PLHA funded activity. Please note that in order to receive funding, the City must be in compliance, specifically having a State approved Housing Element at the time of the award commitment from the State to LACDA.

If you wish to accept these funds for current or new eligible activities, the city of Covina must:

1. Submit a Letter of Intent which includes concise details of the proposed Activity and Sub-Activity and describes how the City plans to expend the funds by June 30, 2028;

2. Complete a proposed Exhibit A form for the planned activity;

3. Provide a city council approved resolution; and

4. Provide proof of 30-day Public Notice.

Please submit all required documentation on or before February 14, 2025. If the Letter of Intent, including supporting documentation is not received by the due date, the available allocation will be retained by the County and reallocated to Countywide program(s).

ATTACHMENT B

Page 199 of 256 ends

Chris Marcarello, City Manager
December 3, 2024

Page 2 ends

Should you have any PLHA funding allocation questions, please contact Jenny Salazar, PLHA Specialist at (626) 586-1633 or [email protected]. For assistance related to your PLHA program activities, please contact your contract manager, Vanessa Estella at [email protected] or (626) 586-1508.

Sincerely,
LINDA JENKINS, Director
Community Development Division
c: Alana Spector, Primary
Anita Agramonte, Financial Director
Attachments
LJ:MC:JED:JS:AB:lh
PLHA Award Letter Notice_Year
Micah Chen (Dec 3, 2024 15:23 PST)
Micah Chen

Page 200 of 256 ends

C:\Users\jdel1192\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\NJP8VY8J\ATTACHMENT C PLHA Exhibit A Input Form_.doc

ATTACHMENT C

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM EXHIBIT A INPUT FORM

1. ACTIVITY:
(a) Project Title:
(b) Beginning Date: Ending:

2. OPERATING AGENCY:
(a) Agency Name:
(b) Agency Address:
(c) Contact Information:

Name:

Title:

Telephone Number:

E-mail Address:

3. PROJECT ADMINISTRATION:

4. CONTRACTED SERVICES/SUBRECIPIENTS: (Describe duties to be performed.) City of Covina - Affordable Housing
Development Project
Currently under
review 6/30/2028 City of Covina
125 E. College Street
Covina, CA 91723 Alana Mantilla Economic Development Manager 626-384-5443 [email protected] City of Covina, 125 E. College Street, Covina, CA 91723 Alana Mantilla, Economic Development Manager 626-384-5443 Alice Leung, Management Analyst 626-384-5509
No contracts issued yet. Staff would like to use PLHA funding to pay for acquisition of a property for an affordable housing project.

ATTACHMENT C

Page 201 of 256 ends

C:\Users\jdel1192\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\NJP8VY8J\ATTACHMENT C PLHA Exhibit A Input Form_.doc

5. ACTIVITY ELIGIBILITY SUMMARY: Select Activity and Sub-Activity:

Multifamily Rental Housing
Acquisition Predevelopment Development
Rehabilitation Preservation Operating Subsidies
Affordable Rental, Ownership, and ADU Housing
Acquisition Predevelopment Development
Rehabilitation Preservation
Matching Funds to Regional Housing Trust Funds
Housing for Homeless
Rapid Rehousing Rental Assistance Supportive Case Management Operating Costs for Navigating Centers Capital Costs for Navigation Centers Operating Costs for Emergency Shelters New Construction Rehabilitation Preservation
Homeownership Opportunities Assistance
(b) Estimated Number of Accomplishments:
(c) Performance Indicator:

Units
Households

6. ACTIVITY SUMMARY:
(a) Provide a detailed description of the activity to be implemented within the overall project. The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.
(b) Will this project involve construction expenses of $1,000 or more? Yes No

7. ACTIVITY SERVICE AREA INFORMATION:
(a) Service Area (Select the method by which you will define your service area):

Citywide Countywide Districtwide
Other - Please describe, i.e. San Gabriel Valley, Unincorporated South Whittier (b) Site Address/Type/Census Tract:

Site Address Type (Choose one only.) Census
Tract(s)
x
x
30 units x
This activity will support the potential acquisition of a potential project located at 176 E. Badillo. The project would be likely tailored for low income mothers and families and be rental units. This funding will support the acquisition of property for this new development.x
X

Page 202 of 256 ends

C:\Users\jdel1192\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\NJP8VY8J\ATTACHMENT C PLHA Exhibit A Input Form_.doc
Construction Site
Service Facility
Construction Site
Service Facility
Construction Site
Service Facility
Construction Site
Service Facility
Construction Site
Service Facility

8. ACTIVITY BUDGET SUMMARY: (The Operating Agency understands that no expenditures may be incurred before the contract has been fully executed.)
Budget by Cost Category Total
Personnel $
Non-Personnel $
Capital Outlays $
Administration $
TOTAL: $

9. ACTIVITY LEVERAGED FUNDING SOURCES:

Source Amount Source Amount
$ $
$ $
$ $
$ TOTAL: $

10. IMPLEMENTATION SCHEDULE: (For predevelopment, construction, acquisition, rehabilitation, or preservation activities only.)
Milestone Target Date (MonthDay-Year) Comments
Phase 1:

Phase 2:

Phase 3:

Phase 4:

Phase 5:
176 E. Badillo Street x
4061.01 $133,193 $133,193
N/A, though we will seek future funding
opportunities from other sources Current- Feb. 2025
Due diligence and negotiations
with property owner
Feb. 2025 - Dec. 2027 Acquisition and project
development Jan. 2027 - Jun. 2028 Construction

Page 203 of 256 ends

C:\Users\jdel1192\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\NJP8VY8J\ATTACHMENT C PLHA Exhibit A Input Form_.doc
Phase 6:

Phase 7: Construction Completed
Phase 8: Post Construction/Labor
File Review

11. COMMENTS: If necessary, attach any additional information which you believe will assist in evaluating your

EXHIBIT A INPUT FORM INSTRUCTIONS
(1) ACTIVITY
(a) Project Title:

Each project is given an activity
Division Project - not exceed 60 characters.
(b) Funding Period:

Each activity must be given a funding period. For each Program Year, no projects may start, or incur costs, earlier than the contract execution date and no later than 90-days prior to the Program Year deadline. Except for certain predevelopment costs, any costs incurred outside of the contract term must be disallowed. (2) OPERATING AGENCY
(a) Agency Name: Identify the Operating Agency of the proposed activity described in this Exhibit A Input Form. (b) Agency Address: Identify the Agency's mailing address. (c) Contact Information
Contact Name: Identify the name of the Division's contact person. This contact person should be able to answer questions related to the project and the related contract that may develop from this Exhibit A Input Form. This person could be the Grants Manager, Division Budget Analyst, or Project Manager.

Title: Identify the title of the contact person.

Telephone Number: Identify the area code and telephone number of the contact person.

E-mail Address: e-mail address.
(3) PROJECT ADMINISTRATION
Identify the entity administering the project. Include the name(s) and title(s) of the project manager(s), and the address and phone number for the Agency administering the project, if other than a LACDA Project Manager. (4) CONTRACTED SERVICES/SUBRECIPIENTS
List the name(s) of the individuals, firms, or subrecipients providing contracted services as part of the project.

Describe the duties to be performed under the contract or agreement, and indicate whether the individual, firm or agency has already been selected.

Contracted services include legal counsel, bookkeeping, construction, as well as architectural and engineering services and must be obtained through a procurement process.

Subrecipient agencies include public or private non-profit entities providing services such as youth or senior programs.
(5) ACTIVITY ELIGIBILITY SUMMARY
(a) Select Activity and Sub-Activity: Indicate proposed project activity and budget. You may select more than one activity for each funding year.
(b) Expected Accomplishments:

Page 204 of 256 ends

C:\Users\jdel1192\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\NJP8VY8J\ATTACHMENT C PLHA Exhibit A Input Form_.doc
Based on the the performance indicator, provide the specific accomplishments your Agency expects to achieve by the end of the contract period using PLHA funds only. Remember that the selection of the correct performance indicator at the inception of a project is very important because it identifies the nature of the activity to be undertaken. The Performance Indicator that is selected is then used as a tool to measure the performance of a funded project. The goal may include the number of households assisted housing units made available because of this funding. (c) Performance Indicator:

Identify the performance indicator that most correctly corresponds to the activity. The performance indicator may include number of units or households assisted.
(6) ACTIVITY SUMMARY:
(a) Detailed Description: Provide a detailed description of the activity to be implemented within the overall project.

The summary should provide sufficient detail (who, what, when, where) to permit a clear understanding of the nature, beneficiaries, and eligibility of the activity.

The description must clearly describe what PLHA funds will pay for and indicate whether a subrecipient, consultant, or staff will undertake the implementation of the activity. Please include a line-item level listing of proposed expenditures.

For example, "Funds will be used for travel, space costs, consultant services", etc. For equipment purchases exceeding $300 per unit, please specify the equipment to be purchased (e.g., a copier, facsimile machine, computer, etc.). Also, include proposed accomplishments for leveraged funding (e.g., Other specific public funds, Tax Credits, Bond Fees, Other Private, etc.).
(b) Will this project involve construction expenses of $1,000 or more? Yes No (7) ACTIVITY SERVICE AREA INFORMATION
(a) Service Area: Identify the service area for the proposed project. Please note that we will utilize Census 2000 data as found in Map Locator.
(b) Site Address/Type/Census Tracts: Indicate the address of the site(s). Indicate if it is a construction or a service facility. Indicate what census tract(s) it is in (if construction) or the census tracts it serves (if a facility). (8) ACTIVITY BUDGET SUMMARY
Budget: Indicate budgeted amounts by Cost Category: Personnel, Non-Personnel, Capital Outlays, and Administration.

In developing your construction activity (if applicable), consider whether State prevailing wage requirements apply to the activity. In general, State prevailing wage applies to construction projects with expenses of $1,000 or more.

Please complete an Exhibit A form for each Activity and Sub-Activity. It will be considered on a project-by project basis if these may be combined into a single project that will be completed during the same contract term using the same Program Year funding.
(9) ACTIVITY LEVERAGED FUNDING SOURCES
Indicate the type and amount of leveraged funds to be used for this activity. Please note that PLHA funds are not to be included in this Section. Leveraged funds are project funds in addition to PLHA funds. (10) IMPLEMENTATION SCHEDULE
For activities that involve housing development and facility projects only, provide target dates (month-date-year) that correspond to identified milestones with regard to the completion of the activity. Activity schedule should correspond with the Expenditure deadlines assigned to each funding Year. (11) COMMENTS: Please provide any additional comments which you believe will assist LACDA staff in evaluating this project's eligibility.

Page 205 of 256 ends

Page 206 of 256 ends

ATTAHMENT D
RESOLUTION CC 2025-10

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

CALIFORNIA, APPROVING PARTICIPATION IN THE LOS ANGELES

URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION

PROGRAM, IDENTIFYING USE OF FUNDS AND AMENDING THE FY
2024-2025 COMMUNITY DEVELOPMENT BUDGET TO REFLECT

THESE CHANGES
WHEREAS, the City contracts with the Los Angeles Community Development Authority through the Urban County Program; and
WHEREAS, the City of Covina desires to participate in the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Program for the period beginning July 1, 2024; and WHEREAS, the PLHA Program provides permanent, ongoing funding dedicated to affordable housing development in the State of California; and WHEREAS, the City’s allocation for FY 2020-2021 was $179,976, and was approved by the Covina City Council on October 6, 2020; and
WHEREAS, the City’s allocation for FY 2021-2022 was $279,739, and was approved by the Covina City Council on June 15, 2021; and
WHEREAS, the City’s allocation for FY 2022-2023 was $350,361; and was approved by the Covina City Council on June 20, 2023; and
WHEREAS, the City’s allocation for FY 2023-2024 was $175,602; and was approved by the Covina City Council on June 4, 2024; and
WHEREAS, the City desires to allocate the FY 2024-2025 PLHA funds for the predevelopment, development, and acquisition of multifamily affordable rental housing; and WHEREAS, the budget for the City of Covina for fiscal year commencing July 1, 2024, and ending June 30, 2025, was approved on June 4, 2024; and WHEREAS, the approved budget is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and
WHEREAS, the reallocation of the appropriations between departmental activities may be made by the City Manager and amendments (increases/decreases) to the adopted budget shall be by approval and Resolution of the City Council; and
WHEREAS, the City of Covina budget is amended to allow for acceptance of funds to provide affordable housing.

Page 207 of 256 ends

Resolution CC 2025-10 Page 2 of 3

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

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

SECTION 2. The City Council approves participation in the Los Angeles Urban County Permanent Local Housing Allocation Program.

SECTION 3. FY 2024-2025 PLHA allocation is to be as follows:
$133,193 For the predevelopment, development, and acquisition of multifamily affordable rental housing
SECTION 4. The City Manager or his designee is authorized to execute documents related to the Los Angeles Urban County Permanent Local Housing Allocation Program.

SECTION 5. Amend the Fiscal Year 2024-2025 Community Development operating budget and establish the necessary accounts as follows:

Account Number Description Project Name Amount
2120-4700-42290 PLHA Program-Other County
Grants and Subventions FY 24-25
Permanent Local
Housing Allocation
Program
$133,193
2120-4700-53750 PLHA Projects – FY 24-25 Permanent Local Housing Allocation
Program
$133,193
SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18thday of February, 2025.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

Page 208 of 256 ends

Resolution CC 2025-10 Page 3 of 3

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, hereby certify that Resolution CC 2025-10 was adopted by the Covina City Council at a regular meeting of the City Council held this 18th day of February, 2025, and was approved and passed by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

Page 209 of 256 ends

Page 210 of 256 ends

CITY OF COVINA
125 East College Street • Covina, California 91723-2199 www.covinaca.gov
Community Development Deportment- Special Projects Division February 4, 2025
Linda Jenkins, Director of Community Development Division Los Angeles County Development Authority
700 West main Street
Alhambra, CA 91801
Telephone: (626) 384-5443
Facsimile (626) 384-5448
RE: LETTER OF INTENT FOR PERMANENT LOCAL HOUSING ALLOCATION (PLHA) YEAR 5 FUNDING
Dear Ms. Linda Jenkins:

Please accept this Letter of Intent for the City of Covina's desire to opt-in and receive funding from the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Year 5 Program. Once approved, we wish to use the available allocation for the Acquisition of Multifamily Rental Housing. The City is working to develop a project to make sale or rent available lo low- or moderate-income families. The City is currently doing its due-diligence before purchase of property and hopes to expend the acquisition funds by June 30, 2028.

Should you have any questions regarding this Letter of Intent, please contact Alice Leung, Management Analyst, at [email protected].

Sincerely,
ee
Director of Community Development

ATTACHMENT E

Page 211 of 256 ends

Page 212 of 256 ends

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CB 1
Meeting: February 18, 2025
Title: Issuance of Notices to Proceed in the City’s Commercial Cannabis Permit Program RFP Process
Presented by: Cannabis Evaluation Committee
Recommendation: That the City Council consider the remaining applicants in the City’s Commercial Cannabis RFP process and authorize up to two (2) applicants to proceed in the preapplication and permitting process.

EXECUTIVE SUMMARY:

Proposals were screened qualitatively, on a pass/fail basis under several categories.  Phase II: Responsive proposals from Phase I were evaluated on a technical basis and awarded points under several categories, with a total of 2,000 points available.  Phase III: Proposals that scored 1,600 points or greater (80% of total) in Phase II were invited to an inperson interview and evaluated under several categories, with a total of 200 points available.  Phase IV: Applicants that scored 180 points or greater (90% of total) in Phase III have been placed onto a ranking list for the City Council’s further consideration and were provided the opportunity to address the City Council.

As a result of this process, eight (8) applicants were placed on a ranking list for further consideration by the City Council. On October 15, 2024, applicants were provided the opportunity to address the City Council and provide presentations on their proposed business model and location. Later, on December 17, 2024, the City Council issued one notice to proceed to Stiiizy Covina to begin the preapplication phase for entitlements. At this time, it is requested that the City Council consider eligible applicants for the remaining two (2) notices to proceed in this RFP process.

DISCUSSION:

Following the City Council’s authorization to issue an RFP for the Commercial Cannabis Permit Program, the City created a dedicated page on its website – www.covinaca.gov/cannabisprogram - to serve as a centralized hub for information related to the RFP. In order to ensure an equitable and transparent process, all formal communications to applicants (applicant questions/City responses, RFP addenda, etc.) have been made in writing and provided on this website.

To initiate the RFP process, the City hosted a mandatory, in-person pre-proposal meeting on Thursday, October 5, 2023 to review the City’s website, RFP document, questions/answer process and submittal deadlines, among others. Twenty-eight (28) applicant representatives attended this meeting and a total of one hundred twenty-four (124) questions were received from prospective applicants and subsequently answered/posted on the City’s

Page 213 of 256 ends

website to clarify the RFP document. Following the question/answer process, two (2) RFP addenda were issued to the RFP, including revising the proposal submittal deadline to January 31, 2024 at 2:00 p.m. A total of eleven (11) applicant proposals were received, with 1 proposal being rejected due to its submission after the submittal deadline.

Phase I Evaluation
As described on pages 6-8 of the RFP document, applicant proposals were reviewed for completeness and responsiveness on a pass/fail basis under several categories, including payment of fees, confirmation that a business representative attended the mandatory pre-proposal meeting, adherence to proposal length/formatting requirements and completion/submittal of zoning verification/site control, background checks for business owners and acknowledgements, among others.

During this evaluation phase, it was determined that proposals from two (2) of the remaining ten (10) applicants were non-responsive and their proposals were rejected from further consideration. In accordance with Covina Municipal Code Section 5.80.100, both applicants filed timely appeals on the determination and on July 16, 2024, the City Council conducted appeal hearings to take public testimony on the matters. Following the hearings, the Council sustained the decisions to reject both proposals from further consideration and on August 20, 2024, the City Council adopted Resolutions CC 2024-74 and CC 2024-75 upholding its decisions.

Phase II Evaluation
Following the Phase I Evaluation, the remaining eight (8) applicants were evaluated on a technical basis under several categories, including qualifications, business plan, community benefits, facility design/neighborhood compatibility and security plan. As described on pages 8-9 of the RFP, a total of 2,000 points were possible and proposals scoring 1,600 points or greater would be eligible to proceed to Phase III of the evaluation process.

Following the evaluation, it was determined that each of the remaining applicants held the appropriate level of experience to open and sustain a cannabis business. Five of the applicants (Covina Responsible, Culture Covina, E7 Covina, Haven Covina and Stiiizy Covina) scored within a 29-point range (~1% of total points) of each other and two applicants (Rilano Covina, Zen Gardens Covina) were within an 86-point range (~4% of total points).

The remaining applicant (Frosted Covina) has cannabis industry experience in Washington but has not opened a business location in California.

Phase III Evaluation
Following the Phase II Evaluation, the remaining eight (8) applicants were invited to an in-person interview with the City’s Cannabis Evaluation Committee (Consultant, City Manager’s Office, Police Department, Community Development Department). Each applicant selected an interview appointment which consisted of a presentation and responding to questions from the Evaluation Committee. As described on page 9 of the RFP, a total of two hundred (200) points were possible in this phase and proposals scoring one hundred eighty (180) points or greater would be eligible to proceed to Phase IV of the evaluation process.

During Phase III, the Cannabis Evaluation Committee determined that each of the remaining applicants held the requisite experience and capabilities to proceed in the evaluation process.

Phase IV Evaluation
On October 15, 2024, each applicant was provided the opportunity to address the City Council and discuss its proposed business location, operations and business model. No formal action was taken by the Council at this meeting.

Page 214 of 256 ends

Applications from Culture Cannabis Covina and Covina Responsible and Compliant Following the City Council’s Study Session on October 15, 2024, applicant proposals were reevaluated to ensure compliance with the City’s Municipal Code (“CMC”), including a review of proposed business locations and zoning requirements. Based on this review, it was determined that the proposed business location for Covina Responsible and Compliant Retail, LLC at 1052 N. Citrus Avenue was not located in an eligible commercial zone. The proposed location at 1052 N. Citrus Avenue is located in a C-2 Commercial Zone, which is not permitted for retail commercial cannabis businesses.

As a result, notice was provided to Covina Responsible and Compliant Retail, LLC (“CRC”) on October 21, 2024 informing it of the defect in its proposal and its ineligibility to proceed in the RFP evaluation process. CRC filed a timely appeal on October 31, 2024 and an appeal hearing was held with the City Council on December 3, 2024 at 6 p.m. During the appeal hearing, CRC conveyed that it held site control of a location at 220 N. Azusa Avenue (previously held by Culture Cannabis Covina) and requested additional time to explore a modification of its pending application to this address. After receiving public testimony, the City Council continued the appeal hearing to February 4, 2025 at 6:30 p.m. to provide CRC with ample time to evaluate alternatives pertaining to its application.

In January 2025, CRC provided evidence of site control for the property at 220 N. Azusa Avenue and requested a modification of its application to include this address as its proposed business location. Concurrently, CRC indicated that it would withdraw its appeal request for the proposed location at 1052 N. Citrus Avenue. These topics are further described in a letter from CRC to the City (“Attachment A”). Additionally, on January 23, 2025, the City received correspondence from Culture Cannabis Covina (“Attachment B”) explaining that it does not have site control for 220 N. Azusa Avenue and announcing its withdrawal from further consideration in the City’s competitive RFP process.

CRC Request to Modify Application
In reviewing CRC’s request to modify its proposed location, the Covina Municipal Code (“CMC”) and Request for Proposals (“RFP”) document provide the following direction:

CMC Section 5.08.090 – Reservation of Rights
“The city reserves the right to reject any or all applications for a cannabis business permit. Prior to such issuance, the city may modify, postpone, or cancel any request for applications, at any time, without liability, obligation, or commitment any party, firm or organization to the extent permitted under California law.”
RFP Page 18 - Proposer Interested in More than One Business Operation “No individual or corporation will be allowed to make or file, or have a vested interest in more than one cannabis business license within the City.”
RFP Page 18 - Acceptance or Rejection of Proposal
“The City reserves the right to accept, reject, or accept a portion of any and all proposal. The City also reserves the right to waive any informality or irregularity in any proposal or in the RFP as deemed to be in its best interest.”
Based on the direction provided, CRC’s request to modify its proposed business location to 220 N. Azusa was approved, contingent on the withdrawal of its pending appeal for the location at 1052 N. Citrus Avenue.

Page 215 of 256 ends

Following this contingent approval, CRC withdrew its appeal on February 3, 2025 (“Attachment C”). A review of the request confirms the following:
 Proposed Business Location: 220 N. Azusa Avenue has been vetted by the Cannabis Evaluation Committee during the application screening process and is located in a C-3A Commercial zone. Further, a review of facility-related scores awarded during the technical evaluation process confirms that the proposed modification would reduce CRC’s Phase I evaluation score by six (6) points and not impact its eligibility for further consideration in the RFP process. This modification results in CRC having an interest in one business location, consistent with the RFP requirements.  Parity for Other Applicants – The proposed modification and withdrawal of Culture Cannabis Covina reduced the applicant field by one (1) applicant. This reduction does not adversely affect other applicants in the RFP process.

E7 Covina Failure to Pay Fees
As noted on page 9 of the RFP document under Phase III, “Applicants that score 80% (1,600 points) or greater in Phase III/IV must pay fees listed in the City fee schedule for Phases III/IV of the Local Commercial Cannabis Permit RFP Program, should they wish to continue in the process.” Despite outreach from staff to E7 Covina representatives (proposed business location at 740 E. Edna Place), the applicant has not paid required fees and is ineligible to proceed in the RFP process.

Selection of Stiiizy Covina to Proceed in the Application Phase for Entitlements On December 17, 2024, the City Council selected Stiiizy Covina to proceed into the pre-application phase for entitlements and permitting. Formal notice of its selection was provided to Stiiizy Covina on January 6, 2025 notifying that it has sixty (60) days to file a preapplication for a Conditional Use Permit and pay all related application fees.

Eligible Applicants for Further Council Consideration
As a result of the aforementioned developments, there are five (5) applicants that remain eligible for further consideration by the City Council. The applicants are as follows:

Applicant Proposed Business Address
Covina Responsible 220 N. Azusa Avenue
Frosted Covina 754 N. Citrus Avenue
Haven Covina 228 E. Rowland Street
Rilano Covina 216 E. Rowland Street
Zen Gardens Covina 125 S. Citrus Avenue
As noted on page 9 of the RFP document, “the City Council, in its sole discretion, may choose to issue a notice to proceed to any applicant receiving 90% (180 points) and above in Phase III.” With its previous selection of Stiiizy Covina, the City Council may consider the remaining applicants and select up to two (2) to proceed in the preapplication and permitting process.

Following the issuance of a notice to proceed, the selected applicant will have sixty (60) days to file its preapplication for a Conditional Use Permit, with the payment of all related fees. No extension periods will be

Page 216 of 256 ends

provided. Should the applicant not meet this requirement, the applicant shall forfeit its ability to submit a preapplication for a CUP and the City may issue a notice to proceed to another eligible applicant.

Resolution CC 2023-96 (Process Standards for Commercial Cannabis Permit Applicants The City Council’s adopted Process Standards remain in effect for this competitive selection process. As adopted, applicants and their third-party representatives are discouraged from contacting members of the City Council regarding matters related to the City’s Commercial Cannabis RFP process, zoning and/or land use issues. If contacted, City Councilmembers will not respond to communications and forward them to appropriate staff involved in the RFP process.

FISCAL IMPACT:

Program costs have been offset with application fees paid by applicants and grant funds secured from the State.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Page 217 of 256 ends

Page 218 of 256 ends

633 West Fifth Street
Suite 5880
Los Angeles, CA 90071
213.557.7222
www.rpnllp.com
Dave Rand
213.557.7224
[email protected]
January 30, 2025

VIA EMAIL
Maricela E. Marroquin
City Attorney’s Office
City of Covina
[email protected]

Re: Covina Responsible and Compliant Retail LLC
Proposal for Resolving Pending Appeal Related to RFP for Cannabis Business Permit Dear Ms. Marroquin:

As you know, we represent Covina Responsible and Compliant Retail LLC (“CRC Retail”) in connection with its proposal for a permit to operate a cannabis business (“Proposal”) in response to the Request for Proposals for Cannabis Retail Business or Cannabis Microbusiness (“RFP”) issued by the City of Covina (the “City”). CRC Retail previously submitted a Proposal to operate a cannabis retail business at 1052 N. Citrus Avenue, which is located in the C-2 Commercial Zone (“Current Site”). On October 21, 2024, CRC Retail received a letter from the City notifying CRC Retail that it is ineligible to continue in the RFP evaluation process because commercial cannabis businesses are not permitted in the C-2 Commercial Zone (“Ineligibility Letter”). CRC Retail filed a timely appeal of the Ineligibility Letter on October 30, 2024 (“Appeal”). The City Council considered the Appeal during a public hearing on December 9, 2024, and ultimately voted to continue the hearing to February 4, 2025.

In the weeks following the December 9 hearing, CRC Retail has provided the City with documentation demonstrating that CRC Retail has sole site control of a property located at 220 N. Azusa Avenue, which is zoned C-3A (PCD) (“Proposed Site”), as confirmed in the attached letter from Culture CC Covina Corp. Cannabis retail businesses are permitted on the Proposed Site pursuant to Covina Municipal Code Section 17.84.030(B)(1).

Although CRC Retail still firmly believes that retail cannabis businesses are permitted on the Current Site, CRC Retail is willing to withdraw the Appeal under the following conditions:
(1) The City agrees to permit CRC Retail to amend its Proposal to replace the Current Site with the Proposed Site; and
(2) The City confirms that a retail cannabis business is a permitted use on the Proposed Site and the Proposed Site is eligible for a potential award of a permit under the RFP.

ATTACHMENT A

Page 219 of 256 ends

Maricela E. Marroquin
January 30, 2025

Page 2 ends

Thank you for your consideration and we look forward to your response.

Sincerely,
Dave Rand
Dave Rand
Partner
of RAND PASTER & NELSON, LLP

Page 220 of 256 ends

CultureCannabisClub.com
1 Corporate Park, Suite 112
Irvine \ CA \ 92606
January 22, 2024
City of Covina
City Manager’s Office
125 E. College Street, Covina, CA 91723-2199.

ATTN: Chris Marcarello
Re: Culture CC Covina Corp withdrawal of CCB permit application.

Dear City Manager Marcarello and City Council,
I write this letter on behalf of Culture CC Covina Corp (“Culture”) to clarify the record regarding information I provided to the City about Culture’s control over the property located at 220 N.

Azusa Ave., in Covina (the “Azusa Property”).

For the avoidance of doubt, Culture does not have site control of the Azusa Property, and instead, Responsible and Compliant Retail Covina dba Embarc (“Embarc”) has exclusive site control of this Azusa Property. By way of this letter, we hereby give notice to the City that Culture is no longer pursuing its application for a Commercial Cannabis Business (CCB) permit at this property.

We support Embarc’s application for a CCB permit at the Azusa Property and believe it would be an ideal location for a CCB permit.

Sincerely,
Devon Julian
Attachment

Page 221 of 256 ends

Page 222 of 256 ends

CultureCannabisClub.com
1 Corporate Park, Suite 112
Irvine \ CA \ 92606
January 22, 2024
City of Covina
City Manager’s Office
125 E. College Street, Covina, CA 91723-2199.

ATTN: Chris Marcarello
Re: Culture CC Covina Corp withdrawal of CCB permit application.

Azusa Ave., in Covina (the “Azusa Property”).

We support Embarc’s application for a CCB permit at the Azusa Property and believe it would be an ideal location for a CCB permit.

Sincerely,
Devon Julian

ATTACHMENT B

Page 223 of 256 ends

Page 224 of 256 ends

February 3, 2025

VIA EMAIL
City of Covina
Chris Marcarello, City Manager
125 E. College Street
Covina, CA 91723
[email protected]
Re: Withdrawal of Appeal of Covina Responsible and Compliant Retail LLC Dear Mr. Marcarello:

I write this letter on behalf of Covina Responsible and Compliant Retail LLC (“CRC”) in response to the City’s letter dated February 3, 2025 with the subject line “Covina Responsible and Compliant Retail LLC Application” (the “Conditional Offer Letter”). In the Conditional Offer Letter, the City stated that it had conditionally approved CRC’s request “to modify CRC’s proposal for a permit to operate a cannabis business (‘CRC Proposal’) to replace the original 1052 N. Citrus Avenue site with the new 220 N. Azusa Avenue site as CRC’s sole location for a commercial cannabis business (‘CRC’s Modification Request’)”, contingent upon the City’s receipt of: (1) the indemnity agreement attached as “Attachment 1” to the Conditional Offer Letter fully executed by CRC (the “Indemnity Agreement”); and (2) a formal written letter withdrawing CRC’s pending appeal relating to the business location at 1052 N.

Citrus Avenue.

Accordingly, and in satisfaction of the above two conditions, CRC hereby formally withdraws its pending appeal relating to the business location at 1052 N. Citrus Avenue and hereby encloses a counterpart of the Indemnity Agreement fully executed by CRC. If you need anything further, please let us know. We thank the City for its consideration and look forward to a fair completion of the permit selection process.

Sincerely,
Covina Responsible and Compliant Retail LLC
______________________________________
By: Lauren Carpenter
Manager
Ccs: Maricela E. Marroquin, Esq. ([email protected]) Candice K. Lee. Esq. ([email protected])
Angel Carrillo ([email protected])
Fabian Velez ([email protected])
Doc ID: 8d12c6cd7e8cb7b775bb39259d3410eb4981a671 ATTACHMENT C

Page 225 of 256 ends

INDEMNITY AGREEMENT
THIS INDEMNITY AGREEMENT (this “Agreement”) is dated as of February 3, 2025 and is entered into by Covina Responsible and Compliant Retail LLC, a California Limited Liability Company (“CRC”), and the CITY OF COVINA (“City”).

Recitals
A. On February 21, 2023, the City Council adopted Ordinance 23-01 related to the establishment of a Commercial Cannabis Business Permit Program. This Ordinance included revisions to the City’s Zoning Ordinance to allow up to a maximum of three (3) Commercial Cannabis businesses (1 business per 15,000 residents) in certain light manufacturing (M-1) and commercial zones. Further, the Ordinance includes a comprehensive set of regulations related to development standards, security, business operations, enforcement mechanisms and an entitlement process (conditional use permit, site plan review and development agreement) that will be subject to the review of the Planning Commission and City Council; B. As part of the Commercial Cannabis Business Permit Program, the City developed a competitive Request for Proposals (“RFP”) process for Cannabis Retail Business or Cannabis Microbusiness;
C. On January 31 2024, CRC submitted a proposal to operate a cannabis retail business at 1052 N. Citrus Avenue, which is located in the C-2 Commercial Zone (“CRC Proposal”);
D. Thereafter, CRC received a letter, dated October 21 2024, from the City notifying CRC that it is ineligible to continue in the RFP evaluation process because commercial cannabis businesses are not permitted in the C-2 Commercial Zone (“Ineligibility Letter”); E, On October 30, 2024, CRC filed a timely appeal of the Ineligibility Letter (“Appeal”), and the City Council considered the Appeal during a public hearing on December 9, 2024, and ultimately voted to continue the hearing to February 4, 2025; E. In the weeks following the December 9, 2024 hearing, CRC provided the City with documentation demonstrating that CRC has sole site control of a property located at 220 N.

Azusa Avenue, which is zoned C-3A (PCD), as confirmed in correspondence dated January 22, 2024 [sic] from Culture CC Covina Corp;
F. Cannabis retail businesses are permitted in the C-3A zone pursuant to Covina Municipal Code Section 17.84.030(B)(1), and therefore, the property located at 220 N. Azusa Avenue is an eligible location to operate a retail cannabis business; G. On January 31, 2025, CRC submitted a written request to modify the CRC Proposal to replace the original 1052 N. Citrus Avenue site with the new 220 N. Azusa Avenue site as CRC’s sole location for a commercial cannabis business (“CRC’s Modification Request”); H. CRC has acknowledged, and by signing this Indemnity Agreement, continues to acknowledge that the City granting CRC’s Modification Request merely allows CRC to remain Doc ID: 8d12c6cd7e8cb7b775bb39259d3410eb4981a671

Page 226 of 256 ends

Page 2 ends

12923-0001\3071806v2.doc
eligible to potentially be awarded a notice to proceed to apply for a conditional use permit to operate a cannabis retailer in the City, .CRC undertakes this process with the knowledge that it does so at its sole risk and that there are no guarantees for any particular outcome or any potential permits, approvals or other entitlements. CRC acknowledges that the City has not represented that CRC will receive a notice to proceed or that the City will even elect to issue any further notices to proceed to cannabis retailers; and
I. City requires CRC to provide certain indemnities concerning CRC’s Modification Request and continued participation in the City’s Local Commercial Cannabis Permit RFP Program and process.

NOW THEREFORE, in consideration of the promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and CRC hereby agree as follows:

1. Indemnity.

A. CRC, at its sole cost and expense, shall fully indemnify, protect, defend and hold harmless City, its elected and appointed officials, boards, commissions, officers, employees, consultants and agents (collectively, “Indemnitees”), from and against any and all actions, disputes, damages, losses, liabilities, obligations, penalties, claims, litigation, demands, defenses, judgments, suits in law or in equity of every kind and description, forfeitures, proceedings, costs, disbursements or expenses of any kind or of any nature whatsoever (including, without limitation, attorneys’ and experts’ fees and disbursements) (collectively “Claims”) which may at any time be imposed upon, incurred by or asserted or awarded against Indemnitees relating in any way to CRC’s Modification Request, CRC’s continued participation in the City’s Local Commercial Cannabis Permit RFP Program and process, and/or CRC’s participation in any potential future cannabis-related entitlement process including, but not limited to, being eligible to obtain a conditional use permit. Indemnitees may, at their sole and absolute discretion, participate in the defense of any such Claim(s) undertaken by CRC, or retain separate counsel of Indemnitees’ choice, and in such case, CRC shall fully indemnify Indemnitees and reimburse Indemnitees for any and all attorneys’ fees, legal expenses and costs incurred by each of them in connection with any and all such Claims or in enforcing the indemnity obligations herein provided. Such participation in the defense of such Claim(s) or the retention of separate counsel by Indemnitees shall not relieve CRC of its obligations under this Indemnity Agreement.

B. With respect to any and all such Claims, CRC shall fully indemnify and defend Indemnitees at CRC’s sole cost, expense, and risk and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees in connection with any and all such Claims.

In addition, CRC shall fully indemnify Indemnitees and shall pay any award of attorney’s fees or costs that may be awarded against Indemnitees or that Indemnitees may be required to pay as a result of any and all such Claims. CRC’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by CRC or Indemnitees.

C. City shall promptly provide written notice to CRC of any Claim(s). City shall take all necessary and reasonable steps to provide such notice to CRC in a timely fashion and in a manner that will not result in any substantial prejudice to CRC’s ability to defend the relevant Doc ID: 8d12c6cd7e8cb7b775bb39259d3410eb4981a671

Page 227 of 256 ends

Page 3 ends

12923-0001\3071806v2.doc
Claim(s). Such notice shall contain a copy of any relevant pleadings filed in connection with the relevant Claim(s). City acknowledges that CRC desires to provide the defense of any Claim(s) in a cost efficient manner. City and CRC shall coordinate and cooperate in their defense activities, whether City is participating in defense undertaken by CRC or is retaining separate counsel. As used in this Indemnity Agreement, cooperation does not include City having to take any action or make any decision that City does not believe, in the exercise of its good faith judgment, is in its own best interest. Unless expressly provided to the contrary, nothing in this Indemnity Agreement shall be construed in a manner that requires City to exercise its discretion in a particular manner.

D. CRC may not resolve such Claim(s) without City’s prior written consent. In all events, City shall have the right to resolve any such Claim(s) in any manner, in its discretion.

CRC’s obligation to pay the cost of any such Claim(s), including judgment, post-judgment motions, and any and all appeals, shall extend until any Claim is completely concluded, judgment is entered and completely satisfied.

E. In order to ensure compliance with this Section, within twenty (20) days after notification by City of the receipt of any Claim(s), CRC shall deposit with City cash in the amount of one hundred thousand dollars ($100,000), satisfactory in form to the City Manager, guaranteeing indemnification or reimbursement to City of all costs and fees related to any action triggering the obligations of this Section. If City is required to draw on that cash to indemnify or reimburse itself for such costs or fees, CRC shall restore the deposit to its original amount within fifteen (15) days after notice from City that replenishment is required. Additionally, if at any time the City Manager determines that an additional deposit in an amount not to exceed an additional fifty thousand dollars ($50,000) is necessary to secure the obligations of this Section, CRC shall provide such additional payment within fifteen (15) days of notice from the City Manager.

2. Notices. All notices hereunder shall be in writing and shall be deemed to have been sufficiently given or served for all purposes when sent by U.S. registered or certified mail, postage prepaid, return receipt requested, as follows:

To CRC:

COVINA RESPONSIBLE AND COMPLIANT RETAIL LLC
633 West Fifth Street, Ste. 5880
Los Angeles, CA 90071
To City:

City of Covina
Attention: City Manager
125 E. College Street
Covina, CA 91723

3. Changes. No provision of this Indemnity Agreement may be changed, waived, discharged or terminated orally, by telephone or by any other means except by an instrument in Doc ID: 8d12c6cd7e8cb7b775bb39259d3410eb4981a671

Page 228 of 256 ends

Page 4 ends

12923-0001\3071806v2.doc
writing signed by the party against whom enforcement of the change, waiver, discharge or termination is sought.

4. Laws. This Indemnity Agreement and the rights and obligations of the parties hereunder shall in all respects be governed by, and construed and enforced in accordance with, the laws of the State of California without regard to principles of conflicts of law.

5. Attorneys’ Fees; Venue. Should either party to this Indemnity Agreement bring legal action against the other (i.e., formal judicial proceeding, mediation, or arbitration) over any suit, action or proceeding arising out of or relating to this Indemnity Agreement, the case shall be handled in Los Angeles County, California, and the party prevailing in such action shall be entitled to reasonable attorneys’ fees which shall be fixed by the judge, mediator, or arbitrator hearing the case and such fee shall be included in the judgment, together with all costs.

6. Counterparts. This Indemnity Agreement may be executed in one or more counterparts, each of which shall be deemed an original. The counterparts shall constitute one and the same instrument and shall be binding upon, and shall inure to the benefit of, each of the undersigned individually as fully and completely as if all had signed but one instrument.

IN WITNESS WHEREOF, City and CRC have caused this Indemnity Agreement to be executed as of the date first written above.
“City”:

CITY OF COVINA
By:

Christopher Marcarello,
City Manager
Attest:

By:

Fabian Velez, Chief Deputy City Clerk
“CRC”:

Covina Responsible and Compliant Retail
LLC
By:

Name:

Title:

Lauren Carpenter
Manager
Doc ID: 8d12c6cd7e8cb7b775bb39259d3410eb4981a671

Page 229 of 256 ends

Page 230 of 256 ends

CITY OF COVINA

AGENDA REPORT
MEETING DATE: October 15, 2024
TITLE: Commercial Cannabis Permit Program RFP Process and Phase IV Evaluation
PRESENTED BY: Cannabis Evaluation Committee
RECOMMENDATION: That the City Council:

1. Receive an update on the City’s Commercial Cannabis RFP/ Evaluation Process; and

2. Receive and file presentations from prospective commercial cannabis permit applicants.

EXECUTIVE SUMMARY:

In September 2023, the City Council authorized the issuance of a Request for Proposals (“RFP”) for its Commercial Cannabis Permit Program. Proposals were received at the end of January 2024 and since this time, the City’s Cannabis Evaluation Committee has undergone an extensive vetting process of applicants consisting of the following phases:
 Phase I: Review of applicant proposals for completeness and responsiveness to the RFP document. Proposals were screened qualitatively, on a pass/fail basis under several categories.
 Phase II: Responsive proposals from Phase I were evaluated on a technical basis and awarded points under several categories, with a total of 2,000 points available.  Phase III: Proposals that scored 1,600 points or greater (80% of total) in Phase II were invited to an in-person interview and evaluated under several categories, with a total of 200 points available.
 Phase IV: Applicants that scored 180 points or greater (90% of total) in Phase III have been placed onto a ranking list for the City Council’s further consideration and will be provided the opportunity to address the City Council.

As a result of this process, eight (8) applicants have been placed on a ranking list for the City Council’s further consideration. In accordance with the City’s RFP, applicants that reach Phase

Page 231 of 256 ends

ATTACHMENT D
IV in the evaluation process will be provided the opportunity to address the City Council and provide presentations on their proposed location and business model. As proposed, this study session will help the Council to better understand each applicant’s proposal in advance of selecting up to three (3) applicants to proceed in the entitlement phase of opening for business. As noted in the RFP, in its sole discretion, the City Council may choose to award a Notice to Proceed (“NTP”) to up to three (3) applicants receiving ninety (90) percent or above in Phase III.

DISCUSSION:

Following the question/answer process, two (2) RFP addenda were issued to the RFP, including revising the proposal submittal deadline to January 31, 2024 at 2:00 p.m. A total of 11 applicant proposals were received, with 1 proposal being rejected due to its submission after the submittal deadline.

During this evaluation phase, it was determined that proposals from two (2) of the remaining ten (10) applicants were non-responsive and their proposals were rejected from further consideration.

In accordance with Covina Municipal Code § 5.80.100, both applicants filed timely appeals on the determination and on July 16, 2024, the City Council conducted appeal hearings to take public testimony on the matters. Following the hearings, the Council sustained the decisions to reject both proposals from further consideration and on August 20, 2024, the City Council adopted Resolutions CC 2024-74 and CC 2024-75 upholding its decisions.

Page 232 of 256 ends

Section 3
Qualifications
Points
Section 4
Business Plan
Points
Section 5
Community Benefit
Points
Section 6
Neighborhood
Compatibility
Points
Section 7
Security
Points
Total
Points
Total Points 500 400 200 400 500 2,000
Applicant Section 3
Points
Section 4
Points
Section 5
Points
Section 6
Points
Section 7
Points
Total
Points
Covina Responsible 496 393 185 400 500 1,974
Culture Covina 488 380 185 394 500 1,947
E7 Covina 496 395 185 394 500 1,960
Frosted Covina 347 358 160 365 500 1,730
Haven Covina 493 379 175 398 500 1,945
Rilano Covina 436 381 185 386 500 1,888
Stiiizy Covina 500 372 185 394 500 1,951
Zen Gardens Covina 438 380 185 394 500 1,897
Through the evaluation, it was determined that each of the remaining applicants possess experience in opening and sustaining cannabis businesses. As noted above, five of the applicants (Covina Responsible, Culture Covina, E7 Covina, Haven Covina and Stiiizy Covina) scored within a 29-point range (~1% of total points) of each other and two applicants (Rilano Covina, Zen Gardens Covina) were within an 86-point range (~4% of total points). The remaining applicant (Frosted Covina) possesses cannabis industry experience in Washington but has not opened a business location in California.

Additional details regarding each applicant’s proposed business locations, design and proposed operations is included in Attachment A.

Page 233 of 256 ends

Locations/Map
Applicant Proposed Business Address
Covina Responsible 1052 N. Citrus Avenue
Culture Covina 220 N. Azusa Avenue
E7 Covina 740 E. Edna Place
Frosted Covina 754 N. Citrus Avenue
Haven Covina 228 E. Rowland Street
Rilano Covina 216 E. Rowland Street
Stiiizy Covina 754 Arrow Highway, Suites D, E, F
Zen Gardens Covina 125 S. Citrus Avenue

Page 234 of 256 ends

Phase III Evaluation
Following the Phase II Evaluation, the remaining eight (8) applicants were invited to an in-person interview with the City’s Cannabis Evaluation Committee (Consultant – Urban Futures, City Manager’s Office, Police Department, Community Development Department). Each applicant selected an interview appointment which consisted of a presentation and responding to questions from the Evaluation Committee. As described on page 9 of the RFP, a total of two hundred (200) points were possible in this phase and proposals scoring one hundred eighty (180) points or greater would be eligible to proceed to Phase IV of the evaluation process. Based on the review of applicant proposals, the following scores were tabulated for the remaining applicants:

Responsiveness Qualifications Operations Security
Plan
Community
Benefits
Neighborhood
Fit/Design
Total
Points
Total Points 50 50 25 25 25 25 200
Responsiveness Qualifications Operations Security
Plan
Community
Benefits
Neighborhood
Fit/Design
Total
Points
Covina
Responsible
45 50 25 25 24 25 194
Culture
Covina
45 50 25 25 24 25 194
E7 Covina 40 50 25 25 24 25 189
Frosted
Covina
45 45 20 25 24 22 181
Haven
Covina
45 50 23 25 25 23 191
Rilano
Covina
50 50 25 25 24 22 196
Stiiizy
Covina
50 50 25 25 24 25 199
Zen
Gardens
Covina
45 50 25 25 24 25 194
During Phase III, the Cannabis Evaluation Committee determined that each of the remaining applicants possess the requisite experience and capabilities to successfully proceed in the evaluation process. A brief description of each category is listed below.  Responsiveness - Applicants were scored based on their overall presentation and responsiveness to questions from the Evaluation Committee.  Qualifications - Applicants were scored based on the presentation of the ownership/leadership team’s experience in the cannabis industry, with an added focus on

Page 235 of 256 ends

their operations in the California marketplace.
 Operations - Applicants were scored based on their presentation of operational elements – staffing levels, familiarity with the California labor market/regulations, operating protocols, facility logistics, delivery procedures, inventory management, viability in market, business model, and software systems, among others.  Security Plan – Applicants were scored based on their presentation of required security elements needed to open for business operations.
 Community Benefits – Applicants were scored based on their presentation of community benefits that will be offered to the local community.
 Neighborhood Fit/Design – Applicants were scored based on their presentation of proposed design elements and cohesiveness with the surrounding neighborhood.

Phase IV Evaluation
With Phase III complete, each applicant will be provided the opportunity to address the City Council, should they desire to do so. Each applicant has been notified of tonight’s study session and will be limited to a ten (10) minute presentation and up to 10 minutes for questions/responses related to their proposal. It is important to note that no action is proposed for this study session and that the City Council will consider the matter further at a future regular meeting. As noted in the RFP page 9, the City Council, in its sole discretion, may choose to issue a Notice to Proceed (“NTP”) to any applicant receiving 180 points and above in Phase III, or none of the applicants.

Following the issuance of an NTP, the applicant will have sixty (60) days to file its preapplication for a Conditional Use Permit, with the payment of all related fees. No extension periods will be provided. Should the applicant not meet this requirement, the applicant shall forfeit its ability to submit a preapplication for a CUP and the City may issue an NTP to another eligible applicant.

Resolution CC 2023-96 (Process Standards for Commercial Cannabis Permit Applicants It is important to note that the City Council’s adopted Process Standards remain in effect for this competitive selection process. As adopted, applicants and their third-party representatives are discouraged from contacting members of the City Council regarding any matters related to the City’s Commercial Cannabis RFP process, zoning and/or land use issues. If contacted, City Councilmembers will not respond to said communications and will forward them to appropriate staff involved in the RFP process.

FISCAL IMPACT:

Program costs have been offset with application fees paid by applicants and grant funds secured from the State.

ATTACHMENTS:

Attachment A: Applicant Proposal Summary

Page 236 of 256 ends

1 CANNABIS PROGRAM

APPLICANT EVALUATION
City of Covina
Prepared by
Cannabis Evaluation Committee
OCTOBER 2024

Page 237 of 256 ends

2 Program Background
In November 2016, California voters approved Proposition 64 by a 57% majority, which allows the adult use of cannabis and established regulations related to cultivation, manufacturing, testing and retail sales.

As a part of these regulations, cities maintain the ability to regulate local businesses, enforce zoning rules, impose taxes and penalize unpermitted uses. State law further requires businesses in this industry to obtain a local permit prior to obtaining a State license.

In summer 2020, the Covina City Council requested an update on statewide regulations related to cannabis. This request was prompted by ongoing changes in the regulatory environment including the State’s adoption of the MAUCRSA, coupled with the observation that a growing number of local agencies have decided to implement local programs. Following its discussion, the Council requested the creation of a Cannabis Ad-Hoc Committee (“Committee”) comprised of two Councilmembers and staff from the City Manager’s Office, City Attorney’s Office, Police Department and Community Development Department to study the issue further.

From 2020-2023, the City engaged in an extensive analysis of the State’s voter-approved legalization of cannabis products. This analysis included a comprehensive review of laws, the study of other communities that have adopted local cannabis programs, an evaluation of potential public safety/public health impacts associated with cannabis and a robust community outreach component to engage the public on the topic.

Following this study and outreach process, in early 2023, the Covina Planning Commission recommended adoption of proposed amendments to the Covina Municipal Code. Later in February 21, 2023, the Covina City Council adopted Ordinance 23-01 amending the Covina Municipal Code to authorize the establishment and operation of up to three cannabis businesses in certain commercial and light manufacturing zones. The Ordinance further establishes a six hundred (600) foot buffer from certain sensitive uses and a comprehensive set of regulations, including development standards, security requirements, business operations, enforcement mechanisms and an entitlement process, subject to the review of the City’s Planning Commission and City Council.

Page 238 of 256 ends

3 Request for Proposals Process
In September 2023, the City Council adopted a fee schedule related to a Commercial Cannabis Business Permit Program and approved the issuance of a competitive, Request for Proposals (“RFP”) process for prospective applicants. Proposals were received in January 2024 and an extensive vetting process has been used to evaluate applicants. As a result of this vetting process, eight (8) applicants have progressed to the final evaluation phase and consideration by the Covina City Council.

In accordance with the City’s RFP, applicants that reach the final evaluation phase will be provided the opportunity to address the City Council. Following this step, the City Council – in its sole discretion – may choose to award a Notice to Proceed to up to three (3) applicants that scored ninety percent (90%) or above in Phase III of the evaluation process. Proposed business locations and a summary of each applicant’s proposal is included below.

Page 239 of 256 ends

4 Covina Responsible/Embarc
Proposed Business Address: 1052 N. Citrus Avenue

Page 240 of 256 ends

5 Qualifications
✓ 12 existing locations including South Lake Tahoe, Chico, Ventura, Martinez and Fontana ✓ License Types: Retail
✓ Ownership Team: Lauren Carpenter, Dustin Moore, Jorge Marquez, Eloy Florez Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Developed a community advisory board to guide community programming efforts and selected participants/board members
Neighborhood Compatibility and Design
✓ Proposed exterior finishes compliment existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 40 dedicated parking spaces and access to additional onsite parking available in shopping center
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 241 of 256 ends

6 Culture Covina/Culture
Proposed Business Address: 1052 N. Citrus Avenue

Page 242 of 256 ends

7 Qualifications
✓ 18 existing locations including Corona, Stanton
✓ License Types: Retail
✓ Ownership Team: Devon Julian, Julie Le, Barigye McCoy, Jesse Hernandez Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility
✓ Proposed exterior finishes complement existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 19 dedicated parking spaces and access to additional onsite parking available in shopping center
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 243 of 256 ends

8 E7 Covina
Proposed Business Address: 740 E. Edna Place

Page 244 of 256 ends

9 Qualifications
✓ 13 existing locations including Cathedral City, Chula Vista, Port Hueneme ✓ License Types: Retail, Distribution, Manufacturing
✓ Ownership Team: Robert Divito, Robert Owen, Matt Begin, Miriam Owen, Christopher Glew Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Proposed microbusiness use with retail and manufacturing component ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement surrounding neighborhood ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 50 dedicated parking spaces
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 245 of 256 ends

10 Frosted Covina
Proposed Business Address: 754 N. Citrus Avenue

Page 246 of 256 ends

11 Qualifications
✓ 3 existing locations including Spokane, Washington
✓ License Types: Retail
✓ Ownership Team: Elizabeth Byczek, Todd Byczek
Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement surrounding neighborhood ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street front entrance and rear entrance from parking lot. Both entrances would utilize a small separated lobby check-in area from retail sales floor ✓ Proposed use of 5 dedicated parking spaces with the potential for 2-3 additional spaces Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 247 of 256 ends

12 Haven Covina
Proposed Business Address: 228 E. Rowland Street

Page 248 of 256 ends

13 Qualifications
✓ 15 existing locations including Long Beach, Stanton
✓ License Types: Retail, Distribution, Cultivation, Manufacturing ✓ Ownership Team: Johnnie Hernandez, Charles Boldwyn, Courtney Caron, Michael Simonian, Mark Simonian
Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street front entrance and rear entrance from parking lot. Rear entrance would utilize a corridor in premises to lead to front reception area
✓ Proposed use of 32 dedicated parking spaces and proposes to lease 4 additional spaces for employee parking at a nearby private parking lot
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 249 of 256 ends

14 Rilano Covina
Proposed Business Address: 216 E. Rowland Street

Page 250 of 256 ends

15 Qualifications
✓ 3 existing locations including West Hollywood, Aptos
✓ License Types: Retail, Manufacturing
✓ Ownership Team: Hank Casillas, Richard Probst, Jim Barazi, Colin Disheroon, John Brittain, Bernardina Caeti, Jared Younker, Lawrence Horwitz
Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use wood tone displays and decorative lighting. Applicant expressed interest in modifying color palettes ✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 45 dedicated parking spaces and access to additional onsite parking available in shopping center
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 251 of 256 ends

16 Stiiizy Covina
Proposed Business Address: 754 Arrow Highway

Page 252 of 256 ends

17 Qualifications
✓ 46 existing locations including Palm Desert, Costa Mesa, Pomona, Davis ✓ License Types: Retail, Distribution, Cultivation, Processing, Manufacturing ✓ Ownership Team: James Kim, Tak Sato, Stephanie Uy, Michael Touhey, Jasmine Szameit Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed microbusiness use with retail and manufacturing component ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting
✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 94 dedicated parking spaces
Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 253 of 256 ends

18 Zen Gardens Covina
Proposed Business Address: 125 S. Citrus Avenue

Page 254 of 256 ends

19 Qualifications
✓ 4 existing locations including Stockton, Sacramento
✓ License Types: Retail, Cultivation
✓ Ownership Team: Corey Travis, Alex Calleres, Angela Thomas, Randy Szameit, Macy Newell Business Plan
✓ Extensive list of standard operating procedures for business operations ✓ Proposed labor peace agreement and local hire provisions ✓ Use of modern IT software systems for point of sale and track/trace functions ✓ Discussion of market assessment and anticipated viability in marketplace ✓ Adequate resources available to startup and sustain business operations Community Benefit
✓ Proposed involvement in community and local non-profit organizations ✓ Dedicated resources to local community groups
✓ Proposed community advisory board to guide community programming efforts Neighborhood Compatibility and Design
✓ Proposed exterior finishes complement existing businesses in shopping center ✓ Proposed interior finishes are well-designed and modern, with the use natural wood tone displays and decorative lighting. Applicant expressed interest in expanding lobby check-in space ✓ Proposed street/parking lot front entrance with separated lobby check-in area from retail sales floor
✓ Proposed use of 20 dedicated parking spaces and access to adjacent public spaces Security
✓ Robust security provisions with appropriate video surveillance, on site security presence and after-hours security monitoring
✓ Use of appropriate video surveillance technology, storage and access for City law enforcement personnel
✓ Use of physical deterrents to enhance security measures, fortify premises, limit access throughout premises, secure currency/products and limit currency stored onsite ✓ Robust delivery protocols to ensure the safety of personnel and the general public

Page 255 of 256 ends

Page 256 of 256 ends

Covina City CouncilFebruary 18, 2025

Covina City Council
February 18, 2025