Covina City Council
October 21, 2025

February, 2024
29 owner. The CITY and Homeowner shall clarify terminology in the standard contract, such as paint grade and paint selection.

The Homeowner and the Contractor shall sign an acknowledgement stating that both parties understand the terms and conditions of all Program requirements as presented during the mandatory Pre-Construction Conference, and acknowledging receipt of their copy of the Covina Residential Rehabilitation Gran/Loan Program Handbook, Section

3. Additionally, all parties involved in the rehabilitation should understand the following:

A. Responsibilities
The contractor is to furnish all material, equipment and labor to complete the work in a workmanlike manner as per the practice of the trade.

The Contractor shall be fully responsible to the Homeowner for the acts and omissions of all Sub-contractors and/or persons directly or indirectly employed by him/her.

The Contractor shall be responsible for coordinating the operations of all trades, Subcontractors and material persons engaged upon the Contract. Contractor shall guarantee to each of his/her Subcontractors the locations and measurements which they may require for their work. Contractor shall verify on job site, all specifications of the project and immediately notify the City and Homeowner of any discrepancies. Contractor shall be held responsible for all such verifications. Any item of work not specifically set forth in the scope of services attached as part of Contract as “Contractor’s Proposal”, but which is necessary for the completion of the project, shall be supplied and set in place at the expense of the contractor as though it has been shown or indicated on “Contractor’s proposal”.

Color, model, style, and manufacturer of all fixtures, appliances, hardware and all other products used in the rehabilitation work which has not been specified in the “Contractor’s Proposal” shall be approved and/or selected by Homeowner.

B. Permits and Codes
Contractor shall be responsible for securing all applicable work permits from appropriate agencies and a City of Covina Business License prior to commencing work. All work shall be accomplished per City of Covina and applicable Building and Safety and Health codes and/or State of California Housing Codes. Contractor represents and warrants that they possesses a valid contractor’s license issued by the State of California, as well as any specialty licenses required for the project.

C. General Guarantee and Warranty
The Contractor warrants that all materials, fixtures, and equipment furnished by Contractor and the Subcontractors shall be new of good quality, and of good title. Further, that all manufacturers and supplier’s written guarantees and warranties shall be delivered to the Homeowner. Neither the final payment nor

February, 2024
30 partial or entire use of the material, fixture or equipment repaired or supplied by the Contractor shall constitute an acceptance of work done in accordance with Contract or relieve the Contractor of liability in respect to any expressed warranties or responsibility for faulty materials or workmanship. The Contractor shall promptly remedy any defects in the work, and pay for any damage to other work resulting therefrom, which may appear within a period of one year from the date of final acceptance of the work unless a longer period is specified. The Homeowner shall give written notice of observed defects to the City and Contractor with reasonable promptness.

D. Conflicts
The Contractor and Homeowner is/are responsible for resolving any conflicts that arise during the performance of the rehabilitation. Only after the Contractor and Homeowner have made a good faith effort to resolve their differences should the CITY representative be called upon to assist. The CITY representative shall review all facts carefully and objectively, and all parties must agree to abide by the findings or pursue formal mediation.

Any controversy or claim arising out of or relating to the Homeowner's rehabilitation contract, or the breach thereof, may be settled in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgment upon the award may be entered in any court having jurisdiction thereof. It is, however, the Homeowner’s responsibility to attempt to resolve or minimize all disputes relating to the quality of the work or time performance.

E. Breach of Conditions
Notwithstanding any other provision in the contract between the Contractor and the Homeowner, the following terms shall govern: In the event the Contractor shall fail or refuse to complete the work as set forth in the approved Bid, or fails or refuses to use due diligence in performing the required alterations and improvements, and in the further event that such failure, refusal or default continues for 24 hours after delivery to Contractor of a written notice to cure such default, then the Homeowner may terminate this contract by written notice to Contractor, and upon delivery of such notice, Contractor shall immediately surrender possession of the premises and remove all of his/her equipment and material there-from. Contractor shall, upon such termination, deliver material and labor lien releases, executed by all persons, and firms supplying labor and/or materials to premises, and CITY shall be obligated to pay Contractor only for each individual portion of the work completed by Contractor and accepted by Homeowner to the date of termination. Full payment shall be made to Contractor only after the total job has been completed and under the terms and conditions as set forth in this Agreement.

In the event of such termination, the Homeowner may, in addition to all other remedies, call upon Contractor’s bonding company to complete the work

February, 2024
31 provided a bond has been procured. No payment made under contract shall act as a waiver of the right of Homeowner to require fulfillment of all of the terms of the Contract.

F. Hold Harmless
As an independent Contractor, of the Homeowner and recipient of program funds, the Contractor holds no claim against the CITY of Covina, their agents, employees and officers from any and all claims, liabilities, damages, and losses arising from the rehabilitation work performed herein by Contractor including the materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials, or supplies in connection with the rehabilitation work under this Agreement and from any claims, liabilities, damages and losses for worker’s compensation arising from the performance of the rehabilitation work under this Agreement by the Contractor or any Subcontractor.

G. Property Access/Maintenance
Homeowner shall provide access to property Monday through Friday between 8:00am and 5:00pm. If Homeowner is not available during these hours, Homeowner will make necessary accommodations for access to the home, in order not to cause Contractor and delay in completing scheduled work.

Also,

1. The Homeowner is responsible for property maintenance during the time that rehabilitation work is being performed on the property.

2. The Homeowner must be advised that rehabilitation work shall not be impeded because of unmaintained property or general sloppiness, and those items of value, including pets, must be secured.

3. Contractor shall schedule and perform his work in such a manner as to cause minimum inconvenience to the Homeowner that continues to occupy the premises during proposed work. However, such occupant shall cooperate with and aid the Contractor by vacating work areas where required and assisting in the removal and replacement of rugs, coverings, and furniture as necessary. Notification to the occupants should be given at least twenty-four (24) hours in advance of request by Contractor.

4. The Contractor and his employees provide adequate protection to the Homeowner property, both interior and exterior, during rehabilitation process. This includes covering the furniture and protecting the flooring during sanding and painting, protecting plants during sandblasting and painting, etc. The Contractor shall not use the Homeowner personal property, such as towels, sheets, shovels, tools, etc.; the Contractor must supply his own tools, and furniture cover. The CITY's responsibility

February, 2024
32 includes notifying the Contractor that he/she will be held responsible for the repair and replacement of ruined property. The Contractor shall keep the premises clean and orderly during the course of work.

5. Surplus materials delivered to the job site and all materials, fixtures, and equipment removed as required by the work and not reused, shall remain or become the property of the Contractor and its Subcontractors. Such materials, as well as all rubbish and debris resulting from Contractor’s operation shall be removed from the job site promptly. On completion of the project, property is to be left in a clean manner and all debris from construction is to be removed and disposed of from property.

H. Sign Contracts
After mutual agreement with terms in Contract between the Contractor and Homeowner is reached, the Contractor and the Homeowner sign the Contract and provide a copy to the CITY. Work must begin within two (2) weeks of signing the Contract or Contractor risks the possibility of being substituted as described in Section III.2.J.

1. Time allowed for the rehabilitation process is as follows:

Contract less than $10,000 = 30 days
Contract between $10,000 - $15,000 = 45 days
Contract over $15,000 = 90 days
If the process is not completed by the time above, payment may be reduced pursuant to Section 3.III.B.2 below.

Exceptions: Time of year and nature of rehab work should be taken into consideration.

I. Change Orders

1. Change orders are the responsibility of the Contractor. The CITY shall review all change order requests, and reserves the right not to pay for any change order request it considers outside the scope and guidelines of the CITY's Covina Residential Rehabilitation Loan/Grant Program.

2. The CITY does not consider change order requests as standard rehabilitation procedure. Change order requests must be granted solely in cases where unforeseen circumstances arise during the rehabilitation process, (plumbing, faulty electrical, replacement of dry rot and termite infested lumber or other conditions which cannot be determined until the actual rehabilitation has begun). A CITY inspector shall make site inspections, when necessary, for clarification. Change orders may occur at any time during construction.

3. All change orders must be approved by the CITY before the CITY will pay for such work. No change order will be approved if submitted along with progress payment or final payment and are not approved by CITY

February, 2024
33 prior to payment request.

4. The CITY shall pay for no more than two change orders per job, provided those Change orders meet the above criteria. Change order requests will not be granted for "trade-offs" with the Homeowner.

Additional work negotiated between the property owner(s) and the Contractor shall not be covered by a change order, but may be accomplished through a separate financial arrangement between the Contractor and the Homeowner. This work must be done subsequent to the completion of the CITY rehabilitation contract.

5. The CITY must be cognizant of change order items that require permits.

Should a change order item require an additional permit, it is the CITY's responsibility to ensure that the Contractor obtains that permit subsequent to the item approval and prior to the commencement of work.

NOTE: The CITY does not allow Contractor overhead and profit on Change orders nor does it allow deletion of code items identified in the initial inspection by the CITY. The CITY does not allow a Change order request on any item previously paid to the Contractor.

6. A change order justification shall include:
a. Activity and item to be modified (deletion or addition) b. Cost or credit to property owner
c. Contractor's written and/or visual justification for change d. Signature of property owner(s) and Contractor prior to submittal to the CITY for approval
e. Change order number (#1, or #2).

7. When a change order item is modified and/or denied by the CITY, the Contractor shall notify the Homeowner of the modification and/or deletion.

8. Should a Change Order request exceed the contingency allowance, the Homeowner shall cover the excess amount by contributing their own funds. If they are unable to pay the additional money, the Homeowner shall scrutinize the Bid Work Write Up, prioritizing items in order to delete those items of less immediate need. Homeowner then shall decide what items to delete from Bid Work Write Up in order to move forward with the Change Order.

J. Substitution of Contractor
In the event that the Homeowner and the Contractor have a dispute that they cannot resolve, the Contractor may be released from any work not yet complete, as long as the Homeowner, Contractor and the CITY agree. A Change Order will be used to reduce the amount of money due the Contractor for any

February, 2024
34 unfinished/unpaid items.

In the event the Contractor shall fail or refuse to complete the work in a professional manner or fails to use due diligence in performing the required work, the Homeowner may terminate the Contract with the Contractor. Such termination shall be done in accordance with Section 3.II.E above. The Homeowner will be provided appropriate assistance from the CITY in completing the necessary termination notice.
a. No commencement by original Contractor-substitute Contractor:
(1) A note to the file is used to indicate, that the original Contractor will not be performing the rehabilitation and the reason(s) for which a substitution of Contractor is being requested.
(2) The Homeowner shall obtain a substitute Contractor willing to perform the rehabilitation (preferably the second lowest bidder).

The Homeowner is encouraged to negotiate the total or remaining contract balance with the new Contractor to assure that the contract does not exceed the available rehabilitation dollars. (3) A new Contract and Contract Bid Information, Contractor’s license, general liability and Workers’ Compensation Insurance, are prepared and filed in the Homeowner’s file.
b. Noncompliance by the original Contractor-substitute Contractor:
(1) The Homeowner must inspect the job, compiling a list of incomplete or unacceptable items to determine the extent of work to be completed by the substitute Contractor.
(2) The CITY is notified by means of a Homeowner generated memo or phone call that the original Contractor has not performed according to the Contract. The memo lists the initial steps taken by the Homeowner to resolve the problem. CITY will then try to resolve noncompliance related problems. If unsuccessful in resolving conflict/noncompliance, Homeowner will notify Contractor of termination as described in Section 3.II.E above. (3) A meeting must be held between the CITY, the Homeowner and the original Contractor (if possible) at which time a method of Contractor payment is established and a Change Order form is signed by both the Homeowner and the Contractor to terminate the contract. Justification for the substitution, the method of payment to the Contractor, and the amount of funds paid must be stipulated in memo form. Funds withheld from the original Contractor, until the rehabilitation is completed, must be discussed. Lien releases and invoices from the original Contractor and sub-Contractors must be attached to all payments

February, 2024
35 made.
(4) A revised Bid Work Write Up is prepared, based upon the Homeowner or CITY inspection findings, and a substitute Contractor is hired to do the remainder of the rehabilitation work.

The Homeowner is encouraged to negotiate the total contract with the new Contractor to assure that the new Contractor does not exceed available rehabilitation funds.
(5) The substitute Contractor must provide a Contract before beginning any work.
(6) No further rehabilitation is to commence until the Change Order, releasing the original Contractor from his contractual obligations, is on file at the CITY, and a new contract is drawn and signed between the substitute Contractor and the Homeowner.

The revised write-up shall contain only those items necessary to complete the job. The substitute Contractor must show proof that he/she is currently insured and licensed.
(7) The CITY shall be advised if the Homeowner encounters any problems in the resolution of the substitution of Contractor.

III. CONTRACTOR PAYMENT PROCEDURE
A. Rehabilitation Payments

1. Disbursement of Rehabilitation Funds. The Homeowner shall agree to permit the CITY, its agent or designee, to act as disbursement agent for funds granted/loaned through all Covina Residential Rehabilitation Grant/Loan Programs, and to permit the CITY, its agent, or designee, to disburse such funds in the form of a single party check payable to the Contractor.

The Homeowner does not have the option of determining when the Contractor shall be paid. The CITY will determine when payment is to be made to Contractor, in accordance with this Policy.

2. After the Contract is signed by the Homeowner and Contractor, the CITY shall enter the Contract amount as a Purchase Order into the financial system in order to encumber the funds.

3. The Contractor's request for payment is to be submitted to the CITY as an invoice only for items on the original bid that have been completed.

CITY staff reviews the invoice and processes the request for payment.

All checks will be mailed to/or picked up by the Contractor. All payment checks shall be single party checks make payable directly to the

February, 2024
36 Contractor. Estimated turn-around time for Contractor payment is fourteen (14) days.

Circumstances may arise in which turn-around exceeds normally scheduled fourteen (14) days; these occasions will be exceptions, not the rule.

All payment packages must include:
a. Request for Payment or itemized invoice from the Contractor b. Completed Certificate and Release of Lien.
c. Completed List of Sub-Contractors and/or Material-Men form accompanied by material and labor releases from all subContractors and materials suppliers. d. Contractor shall have CITY Inspector sign the Bid Work Write Up - Inspection form or itemized invoice indicating that the items completed have been inspected by CITY Inspector. A copy of the Bid Work Write Up - Inspection or itemized invoice with CITY Inspector signature shall accompany each payment request. e. Certifications and Warranties, if applicable
f. Permits/Plans
The CITY requires that all pertinent permits be obtained prior to the commencement of the rehabilitation. A copy of
permit/Inspection card shall be included as part any payment package. It is the CITY’s responsibility to review payment package for completeness, prior to submission to accounts payable for payment, to avoid delay in processing and duplication of work and effort.

In addition to permits, the Contractor must submit a copy of preliminary drawings for projects requiring a room addition. A copy of the final plans approved by the CITY Building department must also be submitted to the CITY.
g. Payments
Incomplete packages shall be returned to the Contractor for completion prior to processing.

4. When a Contractor payment request is submitted to the CITY for payment, the CITY will ensure that all work is in accordance with applicable Codes, as evidenced by CITY Inspector signature on accompanying Bid Work Write Up – Inspection or itemized invoice. If

February, 2024
37 the rehabilitation involves an addition, progress payments will only be made when at least one-third (1/3) of the major construction is completed.

5. Job Site Inspection/Quality Control
a. The CITY shall inform the Homeowner of their responsibility to permit inspection for compliance with the CITY's Municipal Code, by the CITY, its agents or designees, on the property to be rehabilitated. The Homeowners shall also permit any additional inspections necessary by CITY personnel and the Building department, relative to the property, the rehabilitation work, all contracts, material, equipment, payrolls and conditions of employment pertaining to the work.
b. CITY personnel shall take pictures of all completed work for the file and visually inspect the work done to ensure that work that was quoted has been done.
c. The CITY Inspector from the Building department shall inspect all work that requires a permit and a copy of the permit card shall be turned in with each request for payment by the Contractor. It is the Contractor’s responsibility to get the Building inspector to inspect and indicate this with a signature.
d. The CITY shall require the Homeowner to sign a Completion Notice form indicating satisfaction or dissatisfaction with the completed job for all rehabilitation jobs for which payment has been requested. In addition, CITY shall perform inspections without Homeowner notification, and shall make random or specific inspections when deemed necessary for quality
control.

B. Time Extension of Agreement for Rehabilitation

1. Part of the CITY’s monitoring function is to insure that the job does not exceed the time period allocated for completion; it is the Homeowner’s and CITY's responsibility to be aware of overdue completion dates.

2. If the Contractor does not finish in the time defined in in Section 3.II.H., for each day that the Contractor does not finish, one percent (1%) will be deducted from the final payment.

3. The CITY recognizes that there are extenuating circumstances, which warrant a Time Extension of Agreement. The Contractor must provide written justification to the CITY and the Homeowner explaining the delay.

CITY determines whether the extension is approved or disapproved.

February, 2024
38 4. Only one (1) extension will be allowed by the CITY per Contractor. If more than one (1) extension is requested the Contractor will be cited for non-compliance with CITY Procedures and may be removed and substituted.

C. Monitoring

1. The Monitoring Program is a mandated function required by HUD. The CITY has monitoring responsibilities designed to measure and evaluate performance.
a. The CITY's monitoring responsibilities related directly to the Contractor and rehabilitation. CITY personnel operate as quality control agent whose primary monitoring functions are to:
(1) Insure that all work performed by the Contractor is performed in compliance with the CITY's Municipal Code, and the Contract.
(2) Be familiar with all aspects of the rehabilitation to preclude expensive repairs and added expense occurring down-theline due to lack of monitoring and quality control. Ask for guidance from CITY inspector where needed, to gain an
understanding of the repair.
(3) Periodically make unannounced inspection of the job site to ensure that the Contractor is on the job and that the work is progressing according to schedule.
(4) Conduct spot inspections to insure professional and satisfactory workmanship by the Contractor and those
materials used in the rehabilitation are standard grade or better.
(5) Inspect the job site prior to request for Contractor payment to insure that the Contractor has completed all the work for which payment has been requested.
b. Since job site inspections and familiarity with all aspects of the rehabilitation are mandatory functions of the monitoring process, CITY personnel shall be responsible for detecting deviations from the Rehabilitation Contract and for deterring "side deals" between Contractors and Homeowner during the contract period.

Additional monitoring responsibilities are as follows:
(1) Mediate disputes occurring between the Contractor and the Homeowner during the contract period. CITY shall be appraised, by means of a Homeowner generated memo to
file, as to the character of the dispute and its resolution.

February, 2024
39 (2) Insure that the Contractor, prior to the beginning of the rehabilitation work, pulls all pertinent permits.
(3) Insure that all Contractors have proof of current California B licenses, worker's compensation and liability insurance.

If any Contractor is working without a current license or with lapsed worker's compensation or liability insurance, the Homeowner is obligated to pull the Contractor off all jobs in progress until the Contractor can supply the CITY with proof that the above is current.

D. Rehabilitation Final Payment
When the rehabilitation is completed, the Contractor obtains Final sign-off from Building and Safety, and the CITY inspector performs a Final inspection of the rehabilitation to assure that the work has been completed as set forth in this Policy and the Covina Municipal Code. If the completed work is satisfactory and the Homeowner has signed the Owner’s Completion Notice, a Request for Final Payment may be submitted to the CITY by the Contractor. The Request for Final Payment includes:

1. Invoice/request for payment.

2. Bid Work Write Up - Inspection form signed by CITY Inspector.

3. Certificate and Unconditional Release of Lien form signed by the Contractor. Certificate and Release of Lien and any applicable work permits evidencing that the job has been inspected by the appropriate agency and "signed off" or “finaled”.

Certificate of Unconditional Release of Lien will set forth the undisputed balance due from City and Homeowner, if applicable, under the Contract and Change Orders; a certification that the work under the Contract and Change Orders has been performed in accordance with the terms thereof, and that there are no unpaid claims for materials, supplies or equipment, and no claims of laborers or mechanics for unpaid wages arising out of the performance of the contract; and a statement that in consideration of the contract, Contractor releases the Homeowner from any and all such claims arising under or by virtue of the Contract. If the Homeowner has a balance due, Contractor shall identify on the Certificate of Release of Lien the amount remaining outstanding, and provide a lien release to the Homeowner upon payoff.

4. List of Subcontract and/or Material-Men form accompanied by material and labor releases from all sub-Contractors and material suppliers, i.e., lumber companies, home improvement centers, etc.

February, 2024
40 5. Certification and Warranties, if applicable.

6. Copy of CITY/HCD issued Inspection Card.

7. Signed Owner Completion Notice (Obtained by CITY personnel).

E. CITY Inspection at Final
CITY personnel shall make an independent inspection of the job site upon the completion of the project. This inspection shall be coordinated with the Homeowner, which arranges access to the job site for CITY personnel. Pictures will be taken of items completed and Owner Completion Notice will be obtained.

If there are any items that need to be corrected by the Contractor, CITY personnel will be responsible for coordinating the communication with the Homeowner and Contractor on these items.

IV. CLOSEOUT OF THE PROJECT
A. Disbursement Printout Sheet
The CITY will prepare a detailed disbursement sheet which will reside in each Homeowner’s file. This will detail each payment made for the project and total the amount paid by the CITY on behalf of the Homeowner.

B. Close Out Letter
Once the CITY is satisfied with Contractor’s performance and has the Owner Completion Notice letters signed by the Homeowner, the CITY will mail a cover letter to the Homeowner along with document copies of the rehabilitation grant/loan. These documents include all recorded documents, warranties and guaranties, releases and other pertinent documents.

C. Close Out in LACDC.org
Once the CITY has made all payments on Homeowner project, the Contractors and payment amounts are entered into the LACDC.org system. This will then forward the projects to the LACDC for inclusion as a completed project for the Quarterly Performance Report prepared.

February, 2024
41 SECTION 4

TABLE OF CONTENTS

REPORTING PROCEDURES
PAGE
SECTION 4 – CITY REPORTING PROCEDURES ................ .......... .......... ..... 41 I. FUNDING REQUEST .. .......... .......... .................... .......... .......... ..... 42 A. Preparation ........ .......... .......... .................... .......... .......... ..... 42 B. Submission ........ .......... .......... .................... .......... .......... ..... 42 C. Receipt of reimbursed fund by LACDC ........ .......... .......... ..... 42 II. REMITTANCE OF REPAID LOANS AND INTEREST AMOUNTS ..... 42 III. QUARTERLY PERFORMANCE REPORTS TO LACDC .. .......... ..... 42 IV. TRACKING OF OUTSTANDING LOANS .............. .......... .......... ..... 42

February, 2024
42 SECTION 4

CITY FUNDING REQUEST/REPORTING PROCEDURES
I. CITY FUNDING REQUEST
A. Preparation
Financial system reports will be used for preparation of monthly funding requests. Copies of all invoices and payment checks will be maintained in project file behind each month’s funding request copy.

B. Submission
CITY funding requests are to be submitted a minimum of once a month.

C. Receipt of reimbursed funds by LACDC to CITY
When funds are electronically deposited, Finance Manager will forward notice and Management Analyst over CDBG program will prepare a cash receipt with account numbers to be given to CITY cashier for entry into financial system.

II. Remittance of Repaid Loans and Interest Amounts
Return Funds Transmittal Form will be completed for any payments being returned to LACDC. A copy of the Transmittal form will be enclosed with payment check. Upon receipt, LACDC will credit the CITY’s CDBG funds. Remittance will be completed at least once a month, using CDBG Bulletin 13-0014, if there is anything to return.

III. Quarterly Performance Reports to LACDC
Once a quarter, a description of what has transpired during the quarter will be entered into the LACDC QPR automated system.

IV. Tracking of the Outstanding Loans
At the request of the homeowner no more than one per year, City Staff will prepare a letter notifying them of any interest that has accrued and what their current loan balance is.

February, 2024
43 APPENDICES

TABLE OF CONTENTS
PAGE
APPENDICES ........ .......... ......... .......... .......... .................... .......... .......... ..... 43

1. MARKETING RESIDENTIAL REHABILITATION PROGRAM ..... .........

2. PRELIMINARY APPLICATION ......... .................... .......... .......... .........

3. APPLICATION COVER LETTER ...... .................... .......... .......... .........

4. APPLICATION .. ......... .......... .......... .................... .......... .......... .........

5. CERTIFICATION – INCOME TAX RETURN NOT FILED .......... .........

6. ACKNOWLEDGEMENT LBP/ACM ... .................... .......... .......... .........

7. A CONSUMER GUIDE TO ASBESTOS ................ .......... .......... .........

8. PROTECT YOUR FAMILY FROM LEAD IN YOUR HOME ......... .........

9. WATCH OUT FOR LEAD-BASED PAINT POISONING ... .......... .........

10. CDBG BULLETIN 2013 INCOME GUIDELINES ... .......... .......... .........

11. WHAT TO EXPECT AND WHAT NOT TO EXPECT ........ ...................

12. PRELIMINARY EQUITY ESTIMATION ................. .......... .......... .........

13. CHECKLIST FOR CDBG HOUSING REHABILITATION . .......... .........

14. APPROVAL LETTER . .......... .......... .................... .......... .......... .........

15. CDBG BULLETING 07-0002 ELIGIBILITY GUIDELINES ...................

16. PRE-INSPECTION REQUEST FORM ................. .......... .......... .........

17. PHOTOGRAPHY PERMISSION FORM ............... .......... .......... .........

18. BID WORK WRITE UP ......... .......... .................... .......... .......... .........

19. NOTICE OF ASBESTOS/LEAD HAZARD EVALUATION .......... .........

20. SAMPLE LBP/ACM REPORTS FROM BARR & CLARK .......... .........

21. DEED OF TRUST ...... .......... .......... .................... .......... .......... .........

22. PROMISSORY NOTE .......... .......... .................... .......... .......... .........

23. RESIDENTIAL GRANT & LOAN AGREEMENT ... .......... .......... .........

24. CHOICE OF CONTRACTOR .......... .................... .......... .......... .........

25. CONTRACT & COVER LETTERS ... .................... .......... .......... .........

26. COUNTY LOBBYIST CERTIFICATION ................ .......... .......... .........

27. ASBESTOS SAMPLING DISCLOSURE FORM ... .......... .......... .........

28. LIST OF SUB-CONTRACTORS AND/OR MATERIAL-MEN ...... .........

29. CERTIFICATE AND RELEASE OF LIEN ............. .......... .......... .........

30. BID WORK WRITE UP - INSPECTION ............... .......... .......... .........

31. INSPECTION CARD .. .......... .......... .................... .......... .......... .........

32. COMPLETION NOTICE ....... .......... .................... .......... .......... .........

33. CLOSE OUT LETTER .......... .......... .................... .......... .......... .........

ATTACHMENT C
RESOLUTION CC 2025-110

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

CALIFORNIA, AUTHORIZING UPDATES TO THE COVINA

RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

HANDBOOK FOR THE ADMINISTRATION OF THE COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) RESIDENTIAL

REHABILITATION PROGRAM
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the Community Development Block Grant (CDBG) Program has operated since 1974 to provide local governments with the resources necessary to meet the needs of persons of low-and moderate-income; and
WHEREAS, the City of Covina contracts with the Los Angeles County Development Authority for the disbursement of Community Development Block Grant Funds, through the Urban County Program; and
WHEREAS, on September 19, 1995, the City of Covina (successor of the formerly Covina Redevelopment Agency that dissolved), California, adopted the Covina Residential Rehabilitation Grant/Loan Program Handbook (“Program Policy Manual”) for the administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program; and WHEREAS, the Program Policy Manual has been revised over the years; and WHEREAS, the City of Covina has revised the Program Policy Manual to ensure effective administration of the program and to replace the previously adopted manual, which required updates to maintain compliance with current regulations; and WHEREAS, it has become necessary to amend the Program Policy Manual to align with federal and programmatic guidelines, as well as to address concerns raised by residents and contractors.

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

SECTION 1. The City Council approves the revised Program Policy Manual.

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

APPROVED and PASSED this 21st day of October, 2025.

Resolution CC 2025-110 Page 2 of 2
City of Covina, California
BY:

VICTOR LINARES, 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 2025-110 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 21st day of October, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: October 21, 2025
Title: Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601 – Final Acceptance and Filing Notice of Completion
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by FS Contractors, Inc; and

2. Authorize the City Clerk to file a Notice of Completion for the Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601.

EXECUTIVE SUMMARY/BACKGROUND:

On August 5, 2025, the City Council approved a contract with FS Contractors, Inc. for $46,970 in an effort to rehabilitate the Police Department’s parking lots with a project scope that included:
 Mobilization and traffic control in and around the parking lots  Application of herbicide to all cracks two weeks before crack sealing  Clean and seal all cracks 1/4” to 1” with hot rubberized crack sealant  Furnish and apply Type II emulsion aggregate slurry seal with 2.5% latex additive and roll with a rubber tire roller
Project construction has been completed and City staff recommends acceptance of the work performed by FS Contractors, Inc. and to authorize the City Clerk to file a Notice of Completion (Attachment A) for Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601.

FISCAL IMPACT:

Project funding for the Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601 was allocated as follows:

Source of Project Funds Amount Account
General CIP $46,970 4010-1000-55200-F2601
Total $46,970
The following table represents the final project summary:

Item Actual
Project Appropriations $46,970
FS Contractors, Inc. – (Contract Amount) ($46,970)
Total Expenditures ($46,970)
Total UNDER/OVER BUDGET $0
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

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

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

Respectfully submitted,

ATTACHMENT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

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

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

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:

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

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

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

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

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

NAMES ADDRESSES

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

NAMES ADDRESSES

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

September 25,
2025 . The work done was:

Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601

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

FS Contractors, Inc. August 5, 2025
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:

Covina Police Department Parking Lots Slurry Seal Project – Project No. F2601

10. The street address of said property is 444 N. Citrus Ave, Covina, CA 91723 (If no street address has been officially signed, insert “None”.) Dated October 21, 2025
Fabian Velez, Chief Deputy City Clerk, City of Covina

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

Executed on October 21, , 2025 at Covina , California .

Rafael M. Fajardo, City of Covina

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: October 21, 2025
Title: Miscellaneous Concrete Repair Project – Project No. P2601 – Final Acceptance and Filing Notice of Completion
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by CJ Concrete Construction, Inc.;

2. Authorize the City Clerk to file a Notice of Completion for the Miscellaneous Concrete Repair Project – Project No. P2601; and

3. Approve Resolution CC 2025-109 appropriating $17,784 from available Measure M Fund – Fund Balance for use towards the completion of the project.

EXECUTIVE SUMMARY:

On July 1, 2025, the City Council approved a contract with CJ Concrete Construction, Inc. in the amount of $198,067.10 (including contingencies) for the removal and replacement of approximately 9,000 square feet of sidewalk, curb and gutter, ramps and other appurtenances. The project locations were situated within Grid 5 of the Department of Public Works’ City Grid System and included the following streets:
 East Arrow Hwy
 East Arrow Grand Circle
 East Benbow Street
 East Benwood Street
 East Bellbrook Street
 East Bickley Drive
 East Calera Avenue
 East Covina Boulevard
 East Cypress Street
 North Glenvina Avenue
 North Howard Avenue
 East Kemp Place
 East Marilyn Way
 North Prospero Drive
 North Virginia Avenue
Project construction has been completed and City staff recommends acceptance of the work performed by CJ Concrete Construction, Inc. and authorization for the City Clerk to file a Notice of Completion (Attachment A) for the Miscellaneous Concrete Repair Project – Project No. P2601.

DISCUSSION:

During project construction, the need for additional work not included in the original scope of work was identified by the City. As a result, the City Engineer reviewed and approved the following change order, increasing the overall contract amount by $18,260.90 as follows:
 Change Order No. 1 – Increased the overall contract amount by $18,260.90 for quantity adjustments

FISCAL IMPACT:

Available funding for the Miscellaneous Concrete Repair Project – Project No. P2601 was allocated as follows:

Project Funds Amount Account
State Gas Tax $193,544 23002200-55250-P2601
Measure M $50,000 24202200-55250-P2601
Grand Total $243,544
The following table represents the final project summary:

Item Actual
Project Appropriations $243,544
CJ Concrete Construction, Inc. – (Contract Amount
plus Change Order) ($216,328)
CEJ Engineers, Inc. – (Construction Management &
Inspection Services)
($45,000)
Total Expenditures ($261,328)
Total OVER BUDGET ($17,784)
Approval of Resolution CC 2025-109 will appropriate additional Measure M Fund – Fund Balance monies towards project account number 24202200-55250-P2601 in order to supplement the original project budget by $17,784.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

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

Respectfully submitted,

ATTACHMENT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

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

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

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:

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

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

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

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

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

NAMES ADDRESSES

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

NAMES ADDRESSES

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

September 15,
2025 . The work done was:

Miscellaneous Concrete Repair Project – Project No. P2601

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

CJ Concrete Construction, Inc. July 1, 2025
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:

Miscellaneous Concrete Repair Project – Project No. P2601

10. The street address of said property is Various Locations within Grid 5 of City’s Grid Corridor (If no street address has been officially signed, insert “None”.) Dated October 21, 2025
Fabian Velez, Chief Deputy City Clerk, City of Covina

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

Executed on October 21, , 2025 at Covina , California .

Rafael M. Fajardo, City of Covina

ATTACHMENT B
RESOLUTION CC 2025-109

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2025-2026 CAPITAL

IMPROVEMENT PROGRAM BUDGET AND REFLECT AN
APPROPRIATION OF $17,784 FROM AVAILABLE MEASURE M FUND
– FUND BALANCE FOR USE TOWARDS PROJECT COMPLETION OF
THE MISCELLANEOUS CONCRETE REPAIR PROJECT – PROJECT
NO. P2601
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 2026 Operating Budget & Capital Improvement Plan (CIP) was approved on May 6, 2025; 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 appropriate funds from available Measure M Fund – Fund Balance for use towards project completion of the Miscellaneous Concrete Repair Project – Project No. P2601.

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

SECTION 1. Amend the Fiscal Year 2025-2026 Capital Improvement Program Budget for the Miscellaneous Concrete Repair Project – Project No. P2601.

SECTION 2. Appropriate $17,784 from available Measure M Fund – Fund Balance to account number below:

Account No. Account Description Amount ($) Increase/Decrease 24202200-
55250-P2601
Measure M-StreetsSidewalk InfrastructureMisc. Concrete Repair Project
$17,784 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 21st day of October, 2025.

Resolution CC 2025-109 Page 2 of 2
City of Covina, California
BY:

VICTOR LINARES, 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 2025-109 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 21st day of October, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: October 21, 2025
Title: Award of Contract to Sky JTC Corporation (dba Sky Painting) in the Amount of $53,371.80 for the the Miscellaneous Facilities Painting Project Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Authorize the City Manager to execute an Agreement between the City of Covina and Sky JTC Corporation for the Miscellaneous Painting Project; and

2. Authorize a project contingency amount of $5,000 (approximately 10%) for any unforeseen circumstances.

EXECUTIVE SUMMARY/BACKGROUND:

In an effort to maintain the aesthetics of existing City facilities, the Department of Public Works performs routine assessments and inspections. As part of this monitoring, the Building Maintenance Division has identified six (6) locations at Hollenbeck Park, Covina Park, and the Public Works Corporate Yard that need exterior repainting.

The targeted facilities have not been rehabilitated for 15-20 years and as such, the façades are degrading, with loose stucco, open cracks, patch damage, and rust. The proposed painting services, which include pressure washing and sanding in order to remove debris before new paint is applied, will further accomplish the City’s goal of enhancing public facilities utilized by the community. City staff recommends an award of contract to Sky JTC Corporation (dba Sky Painting) in an amount not-to-exceed $53,371.80, with a contingency amount of $5,000 (approximately 10%), for the Miscellaneous Facilities Painting Project (Attachment A).

DISCUSSION:

City staff identified the following locations for the Miscellaneous Facilities Painting Project:

1. Hollenbeck Park
 Parks & Recreation Main Offices
 Baseball Field Bleachers and Associated Structures

2. City Yard
 Equipment Wash Station
 Mechanic Shop

3. Covina Park
 Teen Center
 Park Maintenance Offices and Associated Structures
Via informal bidding procedures, City staff reached out to three qualified contractors to perform the specified scope of work, resulting in the following bid amounts:

Rank Vendor Location Amount
1 Sky Painting Los Angeles, CA $53,371.80
2 Flex Painting Rowland Heights, CA $54,555.00
3 Anthony Rosas Painting Covina, CA $109,000.00
City staff reviewed all proposal documents as well as the contractors’ backgrounds and recent projects for competency, and determined Sky JTC Corporation (dba Sky Painting) to be the successful low bidder. As such,

it is recommended that a Minor Construction and Maintenance Service Agreement (Attachment B) for the Miscellaneous Facilities Painting Project be awarded to Sky JTC Corporation (dba Sky Painting) as the lowest responsive and responsible bidder in an amount not-to-exceed $53,371.80.

FISCAL IMPACT:

Sufficient funding is available in the Public Works Department Operational Budget, Building Maintenance (Account No. 70206100-52400) approved as part of the Fiscal Year 2025-2026 Citywide Budget at City Council on May 6, 2025.

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,

Sent by Tiger Cho on Sep 16, 2025 Sent
1027 S Park View St    •    Los Angeles, CA 90006-2017    •    Phone: 2136747334 City of Covina - Public Works
Phone: 626-786-8256
Proposal for Public Yard Mechanic Shop and Washing Station PROPOSAL SUBMITTED BY: Tiger Cho / Sky Pain�ng

DESCRIPTION OF WORK
The work will consist of all preparation, painting, finishing work, clean up, providing related materials and equipment necessary to complete exterior work described below

COLOR AND PRODUCT DESCRIPTION
• Color: Exis�ng Color
• Product: Dunn Edwards Premium Paint
• Color Placement: Same as exis�ng
• Materials: Scaffolding as needed, power washers, bleach-free cleaner, sandpaper, plas�cs, tape, red rosin paper, stucco La Habra, bonder glue for stucco, elastomeric patch, spackle paste, exterior alkyd primer and stain blocker, red oxide primer for metal, enamel semi-gloss for metal, caulking, etc

WORKMANSHIP

1. Trained experienced and skilled cra�sman shall perform all work associated with this contract.

2. All employees will be dressed iden�fying themselves as SKY Pain�ng employees. They shall be courteous and respec�ul.

3. All work shall be supervised by an experienced foreman. Our project managers work closely with supervisors and inspect work on regular basis.

4. SKY Pain�ng will provide the best quality workmanship performed by trade in skilled cra�sman in compliance with industry standard; “Pain�ng and Decora�ng Contractors of America Manual” Unless otherwise noted, PDCA Level 2 Standard Surface Prepara�on is applied. (Refer to PDCA P14)

5. Perform work under condi�ons best suited to the produc�on of acceptable work and as per manufacturer Print Date: 10-7-2025
Proposal Print https://buildertrend.net/app/share/8UslR5SD_FQ/LeadProposal/P... 1 of 4 10/7/2025, 2:45 PM

ATTACHMENT A
recommenda�ons.

6. Provide wet paint signs, barricades, and other devices required to protect newly finished surfaces.

7. Furnish sufficient drop clothes, shields, and protec�ve equipment to prevent spray or spla�er from fouling surfaces not being painted.

8. The contractor shall at all-�me take the necessary steps to protect the public and all property from damage during the �me of work.

9. During the process of the work, safety shall be of the utmost important.

10. Clean-up: At the comple�on of work each day, remove all materials, supplies, debris and rubbish caused by Pain�ng Contractor and leave workspaces and paint storage in a clean, acceptable condi�on.

SURFACE PREPARATION
• Pressure wash surfaces to be painted u�lizing appropriate PSI so as not to damage the substrate. Where pressure washing is not possible, legal, or prac�cal, hand wash with detergent and water, sponge, or broom clean these areas to remove dirt and use TSP/bleach to kill any mildew. • Scrape and remove loose stucco, open cracks, patch damaged areas on stucco with La Habra stucco and bonding glue, seal hair cracks with an elastomeric patch. • Seal and prime all patched areas with an alkyd and stain blocker primer. • A�er surfaces have been cleaned and allowed to dry, remove any loose or peeling paint using hand tools or power tools in accordance with SSPC-SP2 (Hand Tool Cleaning) and SSPS-SP3 (Power Tool Cleaning) Methods.

Feather-sand all repair edges and dust clean.
• Prime any rusted areas as needed with a red oxide primer. • Caulk around the window frames and stucco, around doors jams and stucco, as needed. • Keep all areas clean and free of debris.

SCOPE OF WORK
Exterior Systems
Note: Two touch-up trip requests are included in this proposal. Any extra touch-up request will be a change order.

Please note that the concrete/masonry wall repair patch & caulking repairs may not match exis�ng walls unless mortar or concrete finish is re-applied corner to corner. Caulking and patching materials may “flash” through the paint. In these areas, it is recommended to fully prime area from corner to corner.
• To achieve full coverage, all products to be applied minimum 4 mils Wet Film Thickness (WFT); 1.5 mils dry film thickness (DFT)
• All wood substrates to have no more than 12% moisture content prior to applica�on of primer/finish coat systems. • For best results, apply at temperatures between 35° - 90°F. • Allow stucco patch to cure to acceptable PH Level prior to applica�on of coa�ng system.

Exclusions: Mosaic Style.

Proposal Print https://buildertrend.net/app/share/8UslR5SD_FQ/LeadProposal/P... 2 of 4 10/7/2025, 2:45 PM

Hollenbeck Park
Hollenbeck Park
Recreation Dept. House
Hollenbeck Park
Hollenbeck Park Baseball Field House and Bleacher
City Yard House
City Yard House
Washing Station
City Yard House
Mechanic Shop
Hollfflder Teen center

TERMS OF CONTRACT

1. Delays and Extension of Time: If the progress of the Work is delayed by inclement weather, flood, earthquake, picketing, boycotts, shortage of materials, acts of public agencies, concealed conditions (as described in Paragraph 2 herein), or other causes beyond the reasonable control of Contractor, the Schedule shall be correspondingly extended and the Contract Sum shall be equitably adjusted to cover Contractor's direct and indirect costs associated with any such delay. This paragraph shall not be construed as limiting any adjustment to the Contract Sum provided for in Paragraph 2 herein.

2. Concealed Conditions: In the event that Contractor encounters adverse concealed conditions not disclosed in writing to Contractor, then the Contract Sum shall be equitably adjusted based upon the direct and indirect costs incurred by Contractor associated with the delay in the progress of the Work and/or the remediation of any such condition. Such concealed conditions include but are not limited to, utility lines, easements {whether public or private), land-use regulations, adverse soil conditions, hydrologic conditions, geologic conditions and hazardous waste or materials located in or about the Project. Contractor shall be under no obligation to remediate any such concealed conditions.

3. Destruction and damage: If the Project is destroyed or damaged for any reason, except where such destruction or damage was caused by the sole negligence of the Contractor or its subcontractors, Owner shall pay Contractor for any additional work done by Contractor in rebuilding or restoring the Project to its condition Recreation Dept. House Total: $4,651.80
Hollenbeck Park Baseball Field House and Bleacher Total: $6,780.00 Hollenbeck Park Total: $11,431.80
Washing Station Total: $5,335.00
Mechanic Shop Total: $29,825.00
City Yard House Total: $35,160.00
Hollfflder Teen center Total: $6,780.00
Total Price: $53,371.80
Proposal Print https://buildertrend.net/app/share/8UslR5SD_FQ/LeadProposal/P... 3 of 4 10/7/2025, 2:45 PM

prior to such destruction or damage. If the estimated cost of replacing work already accomplished by Contractor exceeds 20 percent of the Contract price, either the Contractor or Owner may terminate this Contract. Upon termination by either party, Contractor shall be excused from further performance under this Contract and Owner shall pay Contractor a percentage of the Contract price in proportion to the amount of work accomplished prior to the destruction or damage.

4. Attorney’s fees and costs: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and court costs.

5. Terms and Conditions: If contractor commences litigation or employs attorneys in order to secure payment of any sums due to it from Customer; the Customer acknowledges that proper venue will be the city of Los Angeles, California and agrees to pay reasonable attorney's fee in addition to all other sums due. Customer agrees to notify Contractor in writing of any change in ownership to the Contractor in writing. The undersigned warrants that the above agreement has been carefully read and the Customer understands the same. Interest shall accrue in the amount of 1.5 % per month on the outstanding principal balance. (Per SEC.1719 CHAPTER 522, CALIFORNIA CIVIL CODE 1983. Any person that writes a check that is dishonored for lack of funds or a stop-payment, can be sued for three (3) times the amount of the check Or $500.00, whichever is greater. In addition to the face value of the check, court cost, attorney fees, and service cost can be included Sales are subject to approval by our installation and credit departments.Down Payment* (if any): *By California law, cannot exceed two hundred dollars ($200.00) or 2 percent of the contract price for swimming pool, or one thousand ($1 000.00) or 10 percent of the contract price for other home improvement excluding finance charges, whichever is the lesser. *If either the proposal and/or the acceptance of this proposal and Contract is made at other than the premises at which Contractor or owner normally carries on a business, then you, the Buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. *Business and Professional code 7159.1 & 7159.2 applies to this contract. A notice that failure of the contractor without lawful excuse to substantially commence work within 20 days from the approximate date specified in the contract when work will begin is a violation of the Contractor's License Law. *Contractors are required by law to be licensed and regulated by the Contractors State License Board. Any questions concerning a contractor may be referred to the registrar, Contractors State License Board, PO Box 26000, Sacramento, California.

6. Change Orders: A change order is a written instrument prepared by Owner, Contractor or Architect stating the agreement of Owner and Contractor upon a change in the Work, the amount of the adjustment in the Contract Sum and the extent of the adjustment in the Schedule. Contractor shall not be obligated to proceed with any change in the Work unless a proposed change order is signed by both Contractor and Owner. The owner shall not be liable for the work or amount of any change order unless it is in writing and is signed by Owner personally.

7. ARBITRATION OF DISPUTES: ANY DISPUTE BETWEEN OWNER AND CONTRACTOR RELATING TO THE PERFORMANCE OR INTERPRETATION OF THE

CONTRACT DOCUMENTS SHALL BE SUBJECT TO ARBITRATION, CONDUCTED UNDER THE CONSTRUCTION INDUSTRY RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN EFFECT AT THE TIME OF THE COMMENCEMENT OF ARBITRATION. THE DECISION OF THE ARBITRATOR SHALL BE BINDING, AND JUDGMENT ON THE ARBITRATION AWARD MAY BE ENTERED IN A COURT OF COMPETENT JURISDICTION. IN ARBITRATION, THE PARTIES SHALL BE ENTITLED TO CONDUCT DISCOVERY PURSUANT TO THE CALIFORNIA CODE OF CIVIL PROCEDURE, UNDER THE SUPERVISION OF THE ARBITRATOR.

ARBITRATION OF DISPUTES
NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OF JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.

WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION.

I confirm that my action here represents my electronic signature and is binding.

Signature:

Date:

Print Name:

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CITY OF COVINA AGREEMENT FOR

MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated October 21, 2025 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Sky JTC Corporation (dba Sky Painting) a California corporation (Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to perform/provide professional painting services for the Miscellaneous Facilities Painting Project.

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

C. City desires to retain Contractor and Contractor desires to serve City to perform this work in accordance with the terms and conditions of this Agreement.

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through December 31, 2025 unless sooner terminated as provided in Section 14 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 December 31, 2026.

2. Compensation.

A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed Fifty-Three Thousand Three Hundred Seventy-One Dollars and Eighty Cents ($53,371.80) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.

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

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

ATTACHMENT B

3. Contractor’s Work.

A. Scope of Services. Contractor shall construct and install all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule) and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed in writing by the City. City may request, in writing, changes in the Scope of Work to be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

P. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30) calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.

4. Method of Payment.

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

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

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

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

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

6. Independent Contractor.

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

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

B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule,

regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

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

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

7. PERS Compliance and Indemnification.

A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.

Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

B. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

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

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

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

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

10. Indemnification.

A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.

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

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

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

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

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

11. Insurance.

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

If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11.

3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per accident for bodily injury or disease. If Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor shall provide an executed declaration that it has no employees.

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

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

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

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

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

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

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

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

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

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

B. Obligations upon Termination. Contractor shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In

the event of City’s termination of this Agreement due to no fault or failure of performance by Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Work required by this Agreement.

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

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

If to City: If to Contractor:

Attn: Department of Public Works Attn: Randy Lee, President City of Covina Sky JTC Corporation
125 E. College Street 1027 S Park View Street
Covina, California 91723 Los Angeles, CA 90006

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

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

18. Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

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

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

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

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

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

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

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

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

27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the

effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.

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

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

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

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

Sky JTC Corporation dba Sky Painting,
a California corporation
By:

Name:

Title:

By:

Name:

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

EXHIBIT A

SCOPE OF WORK AND PAYMENT SCHEDULE

EXHIBIT B

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT C

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

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

MISCELLANEOUS FACILITIES PAINTING PROJECT
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

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

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

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

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications

accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

EXHIBIT D

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

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

MISCELLANEOUS FACILITIES PAINTING PROJECT
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

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

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

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

1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

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

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: October 21, 2025
Title: First Amendment to the Agreement between the City of Covina and Jennifer Manlove Doing Business as Hip Hound for the Business Assistance Job Creation Program Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Alice Leung, Management Analyst
Recommendation: 1. Approve and Authorize the City Manager to execute an amendment and all related documents to the Agreement between the City of Covina (“City) and Jennifer Manlove doing business as Hip Hound (“Participant”) for the Business Assistance Job Creation Program;

2. Authorize the City Manager or his designee to execute all documents related to the Business Assistance Job Creation Program.

EXECUTIVE SUMMARY:

Over the last four years, the City has utilized a variety of federal grant resources to implement several resident and business grant programs. These programs have included resident-based programs (rental assistance, recreation fee waivers and free community recreation programs) and business-based programs (capital investments, business working capital and permit fee reductions) funded under the American Rescue Plan Act (“ARPA”). Further, due to the success of these grant programs, an additional job creation program was created in 2023 utilizing Community Development Block Grant (“CDBG”) funds and local funds. As proposed, the City Council will consider authorizing an amendment to the term of an existing business job creation grant for the purposes of its continued participation in the grant program.

DISCUSSION:

On March 17, 2025, Jennifer Manlove doing business as Hip Hound (“Grantee”) entered into an Agreement with the City of Covina for participation in the City’s Job Creation Grant Program for a grant amount of $25 thousand.

Pursuant to the terms of the grant, the Grantee is required to hire a 40-hour-per-week full time equivalent (“FTE”) income-eligible employee(s) within three (3) months after the effective date of the Agreement for a period of twelve (12) months. As proposed, the term of the grant would be revised to run from August 4, 2025 for twelve months due to difficulties experienced by the Grantee with hiring an eligible FTE employee.

It has been determined that the Grantee’s request to modify the grant term is reasonable. Further, authorizing an amendment to the grant term will not impact the public benefit of creating a new FTE employment opportunity within the community. Additionally, it is recommended that the Council consider delegating the responsibility of future amendments under the Job Creation Grant Program to the City Manager, or his designee. The proposed delegation will help to ensure the efficient of administration of local grant awards in accordance with City Council-adopted policies.

FISCAL IMPACT:

The proposed grant was included in appropriations authorized by City Council Resolution CC 2023-112.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
This Amendment No. 1 (“First Amendment”) to the March 17, 2025, Business Assistance Job Creation Program Agreement (“Agreement”) between the City of Covina, a California municipal corporation (the “City”), and Jennifer Manlove, doing business as (“dba”) as Hip Hound, a Limited Liability Company (the "Participant") is dated October 21, 2025, and is between the City and the Participant.

RECITALS
A. The City and the Participant entered into the Agreement for the Participants’ participation in the Business Assistance Job Creation Program (“Program”) for a $25,000 loan to be used to offset staffing costs of a newly hired income-eligible full-time-equivalent (“FTE”) employee(s). Subject to compliance with all Program requirements, the loan may be forgiven and converted into a grant.

B. Participant has yet to demonstrate FTE compliance.

C. The City and the Participant desire to amend the Agreement to modify the beginning date of the Participant’s Retention Certification and Participation Period to 12 months starting from August 4, 2025, when the FTE requirement was first satisfied and make similar amendments to the Eligible Costs as set forth in Exhibit A.

The parties therefore agree as follows:

Section 1. The first paragraph of Section 3. 2. 4 of the Agreement is hereby amended to read as set forth below, with the remainder of Section 3.2.4 remaining the same:
“The required period of time for Program compliance and loan forgiveness is one year from the hiring date of the eligible job created (the “Participation Period”). If multiple employees are hired to fulfill the FTE employee requirement, the eligible job is considered created on the date of hire of the employee whose addition satisfied the FTE requirements, which for purposes of this Agreement is August 4, 2025, unless, in the discretion of the City, the Participant has failed to demonstrate compliance with the FTE requirement. Participant submitted reports will be required for review to determine compliance with Program requirements. During the Participation Period, the Participant is responsible for providing the following to determine compliance with Program requirements.” Section 2. Attachment No. 1 of the Agreement is hereby amended to read as set forth in Attachment No. 1 to this Exhibit A, which his hereby incorporated into the Agreement.

Section 3. Except as expressly modified or supplemented by this First Amendment, all other provisions of the Agreement shall remain unaltered and in full force and effect. In the event of a conflict between the provisions of this First Amendment and the provisions of the Agreement, the provisions of this First Amendment shall control.

The parties are signing this Agreement on the date stated in the introductory clause. [SIGNATURES TO FOLLOW ON NEXT PAGE]

FIRST AMENDMENT TO BUSINESS ASSISTANCE JOB CREATION PROGRAM

AGREEMENT

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

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

Jennifer Manlove dba Hip Hound, a Limited
Liability Company
By:

Name: Jennifer Manlove
Title: Owner

FIRST AMENDMENT TO BUSINESS ASSISTANCE JOB CREATION PROGRAM

AGREEMENT

Attachment No. 1
Exhibit A

ELIGIBLE COSTS
Participant's use of the funds shall be limited to the following and shall be consistent with Program requirements, set forth in this Agreement and the Program Guidelines, and all applicable laws, rules, and regulations pertaining to the funding source.

Funds may be used by Participant for personnel costs to hire an income-eligible FTE employee(s), with an income at or below 80% of the Area Median Income (AMI) for their household size See Attachment D of the Program Guidelines. FTE employee(s) hired under this Program must be retained for at least one (1) year from the hiring date to maintain Program compliance.

Participant shall have three (3) months from the date this Agreement is executed to fulfill the employment position.

If, for three (3) consecutive months the required position has remained vacant, this Agreement will be terminated, and the Loan balance will be due and payable.

The required income-eligible FTE employee retention period of time for program compliance and loan forgiveness is one year (Participation Period) from the hiring date of the eligible job created.

If multiple employees are hired to fulfill the FTE employee requirement, the eligible job is considered created on the date of hire of the employee whose addition satisfied the FTE requirements, as determined by the City and for purposes of this Agreement shall commence on August 4, 2025, provided Participant has satisfied the FTE requirement. The Participant is responsible for retaining any documentation evidencing eligible expense use and subject to an audit to evidence such use of loans. Should the Participant not meet the obligations as required in the Agreement, Program Guidelines, or other applicable laws or regulations, loaned funds will be due and payable to the City.

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: October 21, 2025
Title: Traffic Signal Battery Backup Installation Project – Project No. T2603 – Award of Contract to Crosstown Electrical & Data, Inc. for an Amount of $245,395 Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Approve plans and specifications for the Traffic Signal Battery Backup Installation Project – Project No. T2603;

2. Award a contract for the Traffic Signal Battery Backup Installation Project – Project No. T2603 to Crosstown Electrical & Data, Inc. as the lowest responsive and responsible bidder in the amount of $245,395 and authorize the City Manager to execute the contract;

3. Authorize a project contingency amount of $24,540 (approximately 10% of construction costs) for any unforeseen construction expenses;

4. Approve a Professional Services Agreement (PSA) between the City of Covina and Siterep Construction Services, Inc. for project inspection services in the amount of $31,500 and authorize the City Manager to execute the PSA; and

5. Approve Resolution CC 2025-111 appropriating $26,365 from available Proposition C Fund – Fund Balance for use towards the project.

EXECUTIVE SUMMARY/BACKGROUND:

As part of the City’s Fiscal Year 2025-2026 Capital Improvement Program, the City Council approved the “Traffic Signal Battery Backup Installation Project – Project No. T2603”, which consists of the installation of battery backup systems for various traffic signals located along Azusa Avenue and Citrus Avenue. Such installation will help to ensure that traffic signals remain powered for a limited duration during power disruptions.

Following a public bidding process, it has been determined that the lowest responsive and responsible bidder for the project is Crosstown Electrical & Data, Inc. As such, it is recommended a contract be awarded for the Traffic Signal Battery Backup Installation Project – Project No. T2603 to Crosstown Electrical & Data, Inc. as the lowest responsive and responsible bidder in the amount of $245,395 and authorize the City Manager to execute the contract.

DISCUSSION:

A Notice Inviting Bids was published in the San Gabriel Valley Examiner on Thursday, September 4th, 11th, and 18th 2025. Sealed bids were accepted in the Office of the City Clerk until 10:00 a.m. on Tuesday, September 30th, 2025. Beginning at 10:00 a.m. on September 30th, 2025, the City Clerk publicly opened and read seven (7) sealed bids with the following result:

Rank Bidder Location Total Base Bid
Amount
1 Crosstown Electrical & Data, Inc. Irwindale, CA $245,395 2 DBX, Inc. Temecula, CA $272,600
3 Bear Electrical Solutions, LLC. Anaheim, CA $275,640
4 Select Electric, Inc. Anaheim, CA $281,655

5 PTM General Engineering Services, Inc. Riverside, CA $310,095 6 Amtek Construction Orange, CA $311,398
7 California Professional Engineering, Inc. La Puente, CA $352,199 City staff has reviewed all bid documents for compliance and has evaluated the contractors’ professional backgrounds and recently completed projects for competency. As a result, it is recommended that a contract be awarded to Crosstown Electrical & Data, Inc. given that this firm has completed a significant number of similar projects for municipalities including the cities of Irvine, Desert Hot Springs and Los Angeles.

FISCAL IMPACT:

The Traffic Signal Battery Backup Installation Project – Project No. T2603 is included in the adopted Fiscal Year 2025-2026 Capital Improvement Program with a total allocation of $300,000 from the Prop C – Account No. 2405-2200-55340-T2503. Resolution CC 2025-111 will appropriate an additional $26,365 from available Proposition C Fund – Fund Balance for use towards the completion of this project. On balance, the new total funding allocation for the Traffic Signal Battery Backup Installation Project – Project No. T2603 will be $326,365.

Following is a summary of project funding for the Traffic Signal Battery Backup Installation Project – Project No. T2603:

PROJECT FUNDING
Source of Project Funds Amount Account Council Appropriation Action Proposition C $300,000 2405-2200-55340-T2603 FY 2025-2026 CIP Budget Proposition C $26,365 2405-2200-55340-T2603 Resolution CC 2025-XXX Total $326,365
The following table conveys a proposed project expenditure summary:

PROJECT EXPENSES
Description Amount
Base Bid (Crosstown Electrical & Data, Inc.) $245,395
Contingency Allowance $24,540
Total Contract Amount $269,935
Inspection Services (Siterep Construction Services, Inc.) $31,500 Design Engineering Services (RKA Consulting Group) $24,930 Total Fiscal Impact $326,365
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

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

Respectfully submitted,

ATTACHMENT A

ATTACHMENT B

CONTRACT

CITY OF COVINA CONTRACT FOR
TRAFFIC SIGNAL BATTERY BACKUP INSTALLATION PROJECT –
PROJECT NO. T2603
THIS CONTRACT (“Contract”) is made and entered this 21st day of October, 2025 (“Effective Date”), by and between the CITY OF COVINA, a California municipal corporation (“City”) and Crosstown Electrical & Data, Inc a California corporation (“Contractor”). Contractor’s California State Contractor’s license number is 756309; Class A, C-10. Contractor’s DIR registration number is 1000000155.

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 Traffic Signal Battery Backup Installation Project – Project No. T2603 (“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 Two Hundred and Forty-Five Thousand Three Hundred and Ninety-Five Dollars ($245,395) in accordance with the prices as submitted in the Bid, attached hereto as Exhibit “A” and incorporated herein by this reference.

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

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

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

7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract,

the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”

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

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

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

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

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

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

CITY OF COVINA
By:

City Manager
ATTEST:

By:

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

Printed Name:

Title:

By:

Printed Name:

Title:

EXHIBIT A

EXHIBIT B

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

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

TRAFFIC SIGNAL BATTERY BACKUP INSTALLATION PROJECT – PROJECT NO. T2603 (Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

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

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

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

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

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

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

EXHIBIT C

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

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

TRAFFIC SIGNAL BATTERY BACKUP INSTALLATION PROJECT – PROJECT NO. T2603 (Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

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

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

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

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

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

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated October 21, 2025 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Siterep Construction Services, Inc., a California corporation (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor for inspection services related to the Traffic Signal Battery Backup Installation Project – Project No.

T2603.

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

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

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2026, unless sooner terminated as provided in Section 14 of this Agreement.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Thirty-One Thousand Five Hundred Dollars ($31,500) (the “maximum compensation”), based on the hourly rates set forth in the Approved Fee Schedule, attached hereto as Exhibit A. Any terms in Exhibit A, other than the payment rates and
B. Expenses. The amount set forth in paragraph A shall include reimbursement for all actual and necessary expenditures reasonably incurred in the performance of this Agreement.

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

3. Consultant’s Services.

A. Scope of Services. Consultant shall perform the services described in the Scope of Services, attached as Exhibit B. City may request, in writing, changes in the scope of services to be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.

ATTACHMENT C

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

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

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

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

F. Compliance with Laws. The Consultant shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Consultant to comply with G. Permits and Licenses. Consultant shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.

4. Method of Payment.

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

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

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

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

6. Independent Contractor.

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

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

B. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of the services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such

additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

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

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

7. PERS Compliance and Indemnification.

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

B. Indemnification. Consultant shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential. Consultant shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if

disclosure is legally required. Consultant shall return all data to City upon the expiration or termination of this Agreement. Consultant’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.

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

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

10. Indemnification.

A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws.

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

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

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

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

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

11. Insurance.

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

If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11.

3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Consultant has no employees while performing services under this Agreement, workers’ compensation policy is not required, but Consultant shall provide an executed declaration that it has no employees. 4) Professional Liability Insurance with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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

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

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

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

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

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

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at

Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

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

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

B. Obligations upon Termination. Consultant shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by

Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

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

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

If to City: If to Consultant:

Attn: Public Works, Engineering Attn: Andre Ortiz
City of Covina Siterep Construction Services, Inc.
125 E. College Street 301 E. Arrow Highway, Suite 105
Covina, California 91723 San Dimas, CA 91773

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

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

18. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

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

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

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

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

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

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

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

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

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

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name:

Title:

ATTEST:

By:

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

Siterep Construction Services, Inc.
a California corporation
By:

Name: Andre Ortiz
Title: President
By:

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

EXHIBIT A

APPROVED FEE SCHEDULE

Attachment 2 – PROPOSED FEE
ITEM DESCRIPTION Unit RATE SUBTOTAL
1 Field Observer – Traffic Signal Battery Backup Installation 1 LS $31,500.00 $31,500.00 TOTAL $ 31,500.00

EXHIBIT B

SCOPE OF SERVICE

September 30, 2025
City of Covina
Rafael Fajardo
City Engineer
125 East College St.

Covina, CA 91723
RE: Traffic Signal Battery Backup Installation
Dear Mr. Fajardo,
Thank you for allowing Siterep Construction Services, Inc. the opportunity to provide this proposal for inspection services related to the above-mentioned project. Siterep is prepared to allocate its resources to assist the City of Covina in ensuring the work is in conformance with all local and regional standards.

Siterep’s key personnel have over 30 years of field experience in public works project construction and inspections throughout Southern California.

Siterep will provide inspection services per the attached exhibits:
• Attachment 1 – Scope of Work
• Attachment 2 – Proposed Fee
If selected for this project, Siterep looks forward to the opportunity of working with you to deliver a successful project on time and of the utmost quality for the residents of Covina.

Please feel free to contact us if you have any questions regarding our proposal or to arrange an interview.

Sincerely,
Andre Ortiz
President
Siterep Construction Services, Inc.

Attachment 1 – Scope of Work
Siterep will provide inspection services for the Traffic Signal Battery Backup Installation as indicated in the plans and specifications.

1. Perform QA monitoring on a periodic basis over a 30 working day period.

2. Surveillances of contractor’s operations to assure compliance with local and regional standards as outlined in the project documents.

3. Attend regularly scheduled progress meetings with contractor to discuss solutions to potential field issues.

Exclusions:

1. Sampling/Testing

2. Overtime

3. Night Work

ATTACHMENT D
RESOLUTION CC 2025-111

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2025/2026 CAPITAL
IMPROVEMENT PROGRAM BUDGET AND APPROPRIATE $26,365
FROM AVAILABLE PROPOSITION C FUND – FUND BALANCE FOR

USE TOWARDS THE TRAFFIC SIGNAL BATTERY BACKUP
INSTALLATION PROJECT – PROJECT NO. T2603
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 2026 Operating Budget & Capital Improvement Plan (CIP) was approved on May 6, 2025; 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 2025/2026 Capital Improvement Program Budget and appropriate $26,365 from available Proposition C Fund – Fund Balance for use towards the Traffic Signal Battery Backup Installation Project – Project No. T2603.

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

SECTION 1. Amend the Fiscal Year 2025/2026 Capital Improvement Program Budget and appropriate $26,365 from available Proposition C Fund – Fund Balance as follows:

Account No. Account Description Amount ($) Increase/Decrease 2405-2200-
55340-T2603
Prop C-Streets-Traffic
Signal System-Traffic
Signal Battery Backup
Installation Project
$26,365 Increase
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 21st day of October, 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor

Resolution CC 2025-111 Page 2 of 2
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-111 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 21st day of October, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
_________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 12
Meeting: October 21, 2025
Title: Adoption of Ordinance 25-12 Amending Chapters 9.54 and 9.48 of Title 9 of the City of Covina Municipal Code
Presented by: Ric Walczak, Chief of Police
Recommendation: Adopt Ordinance 25-12 entitled, "An Ordinance of the City Council of the City of Covina, California, Amending Chapters 9.54 and 9.48 of Title 9 of the City of Covina Municipal Code to Prohibit Unlawful Camping and Storage of Private Property in Public Areas, Making Related Updates to the Code, and Making Finding of Exemption under the California Environmental Quality Act."
EXECUTIVE SUMMARY:

Ordinance 25-12 (Attachment A) was approved at introduction by a vote of 5-0-0 vote of the City Council at the September 16, 2025, City Council Meeting.

BACKGROUND:

It is recommended that the City Council adopt on second reading Ordinance 25-12 entitled, “An Ordinance of the City Council of the City of Covina, California, Amending Chapters 9.54 and 9.48 of Title 9 of the City of Covina Municipal Code to Prohibit Unlawful Camping and Storage of Private Property in Public Areas, Making Related Updates to the Code, and Making Finding of Exemption under the California Environmental Quality Act.” FISCAL IMPACT:

None.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
ORDINANCE 25-12

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING CHAPTERS 9.54 AND 9.48 OF TITLE 9 OF

THE CITY OF COVINA MUNICIPAL CODE TO PROHIBIT UNLAWFUL

CAMPING AND STORAGE OF PRIVATE PROPERTY IN PUBLIC

AREAS, MAKING RELATED UPDATES TO THE CODE, AND MAKING

A FINDING OF EXEMPTION UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Covina owns and maintains public property and a system of public parks, sidewalks and rights of way and has the authority to establish rules and restrictions over the use of these public spaces; and
WHEREAS, it is the City’s obligation to keep its public buildings, public parks, sidewalks, and rights of way clean and available for public use, and to protect the public health, safety, and access of its constituents; and
WHEREAS, camping and the unauthorized use of public areas for the storage of personal property interferes with the rights of other members of the public to use public areas for their intended purposes and can create a public health or safety hazard that adversely affects public facilities. The purpose of this Ordinance is to maintain public areas in a clean, sanitary and accessible condition, to prevent harm to the health or safety of the public, and to promote the public health and safety by ensuring that public areas remain readily accessible for their intended uses.

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

SECTION 1. Chapter 9.54 (Prohibited Conduct) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby renamed to read as follows:
“Chapter 9.54 Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas.”
SECTION 2. Section 9.54.010 (Disorderly Conduct) of Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby renumbered as Section 9.54.020.

SECTION 3. A new Section 9.54.010 Definitions) is added to Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code to read as follows:
Ҥ 9.54.010. Definitions.

For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them in this section:

A. “Abandoned personal property” means personal property that the owner abandons, surrenders, relinquishes, or disclaims. Personal property that is not claimed during the time period set forth in this chapter is considered abandoned.

B. “Administrative procedure” means the city’s administrative procedures for the removal, temporary storage, and retrieval of personal property.

C. “Bulky item” means any item that is separately or cumulatively too heavy or large to fit in one 60-gallon trash container with the lid closed or otherwise store, including, but not limited to, a mattress, shed, couch, chair, other furniture item, appliance. The following items shall not constitute a bulky item: a portable, collapsible picnic chair or table, bicycle or any item specifically excluded from this definition by city council resolution.

D. “Camp” means the use of a public area for living accommodations or habitation purposes, including but not limited to the presence of camp facilities or camp paraphernalia, or storage of personal belongings indicative of overnight stays. “Camp” includes use of a vehicle that reasonably appears as a place of human habitation in light of all the circumstances. “Camp” does not include boarding, disembarking, or waiting for a bus.

E. “Camp facilities” mean all temporary or semi-permanent shelters, including, but not limited to, tents, tarpaulins, huts, sheds, or structures, for the purposes of human habitation or sheltering one or more persons.

F. “Camp paraphernalia” means items including, but not limited to, cots, air mattresses, sleeping bags, covers, beds, hammocks, bed rolls, blankets, or any similar bedding equipment or materials for the purpose of sleeping, lying, or sheltering one or more persons. “Camp paraphernalia” also includes open fires, barbecues, portable stoves or other cooking equipment.

G. “Park” means a public park, reservation, playground, recreation center or any other area in the city, owned, managed, used or controlled by the city, and devoted to active or passive recreation or open space use. “Park” shall include the entire site of the park, including, without limitation, all structures thereon, any parking lots, and any public sidewalk adjacent to the park site.

H. “Person” means any person, firm, partnership, association, corporation, company or organization of any kind.

I. “ Personal belongings” include: (i) items of apparent value of $50 or more; and (ii) items of apparent personal value, including, but not limited to: eyeglasses, operational wheelchairs, walkers, crutches, other medical equipment, habitable tents, personal papers (such as photographs, albums, ID's, bank statements, and legal papers), backpacks, containers, and operational bicycles, scooters, and strollers.

J. “Personal property” means any and all tangible property, and includes, but is not limited to, goods, materials, merchandise, tents, bedding, sleeping bags, hammocks, and personal items such as luggage, backpacks, clothing, documents, medication and household items.

K. “Public area” means any public place located within the city, including but not limited to property owned and controlled by the city, property owned by other public entities, and other areas as designated by the city manager. Public areas include streets, alleys, plazas, parks, sidewalks, buildings, facilities, sidewalks, right-of-ways, parking lots, vacant lots, bike paths, trails, bus stops, bus shelter depots, bus stop benches, and other publicly-owned property for which the City owns or is authorized by contract or permit to maintain.

L. “Soiled item” means any hazardous, toxic, unsanitary, verminous, or perishable item; item soiled by human waste, bodily fluids, or other infectious materials; or item infested by rodents or insects, that would present a health or safety risk if stored.

M. “Store,” “stored” or “storing” means to put aside or accumulate for use when needed, to put for safekeeping, to place or leave in a location.” N. “Unsafe items” include, but are not limited to, (i) Toxic sharps: needles, scissors, knives; (ii) Chemicals: bleach, paint, oils, etc; (iii) Items (including bedding and clothing) soiled by infectious materials, including human waste and bodily fluids; (iv) Moldy, mildewed items; (v) Items that may be infested by rodents and insects:
rats, mice, fleas, lice, bed bugs; (vi) Items that pose a risk of fire or explosion, combustibles and propane tanks; any item containing fuel or corrosives or other unidentified liquids.”
SECTION 4. Section 9.54.020 (Loitering) of Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby renumbered as Section 9.54.030 and amended to read as follows:
Ҥ 9.54.030. Loitering and obstruction of free passage in public areas.

No person shall loiter or stand linger, idle, camp, or sit in or at the entrance of any hall, theater, church, business establishment, private or public parking area which is open to the public, or place of public assemblage so as to in any manner obstruct such entrance. No person shall loiter or stand outside of a motor vehicle or in a private or public parking area which is open to the public between 10:00 p.m. and 8:00 a.m. the next morning. No person shall urinate or defecate in any public area which is not designed for such act, whether or not in public view. No person in violation of this section, shall, fail to disperse, when directed to do so by a police officer or city employee.

SECTION 5. Existing Section 9.54.030 (Disturbing the peace prohibited) of Chapter 9.54 (Prohibited Conduct and Unlawful Storage or Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby renumbered as Section

9.54.040 and amended to read as follows:
Ҥ 9.54.040. Disturbing the peace prohibited.

Every person who shall, in the frequented streets of the city, pursue any amusements calculated to impede travel, or frighten animals or persons, or injure or endanger any property or person, or who shall be found loitering or strolling about in a manner tending to produce disturbance, mischief or crime, or who shall, by loud noise or offensive behavior, disturb the peace or quiet of any community, assembly, meeting or congregation, or who shall, by throwing stones or missiles or other objects, or by striking or threatening to assault, disturb or annoy any person, or who shall enter or remain upon any parking lot, shopping center property, drive-in property, or any other public area or place open to the public, without the implied or express consent of the owner, his agent or person in lawful possession thereof, is guilty of a misdemeanor.”
SECTION 6. Existing Section 9.54.040 (Prohibition on carrying or possessing specified items while attending or participating in any public demonstration, rally, protest, picket line or public assembly) of Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby renumbered as Section 9.54.050.

SECTION 7. Section 9.54.060 (Unlawful camping) is hereby added to Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code to read as follows:
Ҥ 9.54.060 Unlawful Camping.

A. A person shall not camp, sleep, lay down, shelter, kindle open fires, or otherwise occupy camp facilities or use camp paraphernalia in any public area.

B. It is unlawful to use a mobile vehicle in a public area as a dwelling or place of residence. Whether the vehicle is being used for human habitation shall be determined in light of all surrounding circumstances, including but not limited to, the use of camp paraphernalia that is not associated with ordinary vehicle use, obscuring the vehicle’s windows, or preparing meals or sleeping inside the vehicle.” SECTION 8. Section 9.54.070 (Unlawful storage of personal property in public areas) is hereby added to Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code to read as follows:
Ҥ 9.54.070 Unlawful storage of personal property in public areas.

A. It is unlawful to leave unattended or store any personal property, including camp facilities or camp paraphernalia or bulky items in any public area. No person shall fail to remove personal property stored in public areas pursuant to the city’s written notice.

B. Removal of Stored Personal Property. The city may remove, impound, and discard unlawfully stored personal property, including tents, other camp facilities or paraphernalia or bulky items, in accordance with the procedures outlined in this subsection.

1. Pre-Removal Notice. If a city employee or agent determines that personal property is being stored in a public area, prior written notice of the city’s removal of the item shall be served upon the owner at their last known address by personal service or certified mail, or posted prominently and conspicuously on the stored personal property. The pre-removal notice shall contain the following:
a. A general description or reference photograph of the personal property; b. The location where the personal property was found;
c. The date and time when the notice was posted;
d. The violated section of the Covina Municipal Code;
e. A statement that the city will impound personal property that is not removed within forty-eight (48) hours;
f. The location where the personal property will be moved to and stored if it is not removed within forty-eight (48) hours;
g. A statement that impounded personal property will constitute abandoned personal property, subject to disposition in a manner deemed appropriate by the city manager or designee, if not claimed within ninety (90) days after impoundment; and
h. A notice that the city may sell, donate, or otherwise dispose of the impounded personal property if not claimed within the prescribed time period.

The pre-removal notice may also include additional information, including information regarding available shelter and supportive services.

2. Post-Removal Notice. Following removal of personal property, the city shall leave or post a notice for a minimum of ten (10) days at or as near as possible to the location where the personal property was collected, or on the city’s

website if the city cannot post a notice. This notice shall include the following information:
a. A general description of the personal property that was removed; b. The date and approximate time the personal property was removed; c. A statement that the item was removed because it was unlawfully stored in violation of the Covina Municipal Code;
d. The address where the personal property is being stored; e. The process by which the personal property owner may repossess the item, including contact information for the storage location and hours a person may claim ownership; and
f. The date on which abandoned personal property will be disposed if not claimed within ninety (90) days.

3. The city shall only be required to store personal property that constitute personal belongings.

4. The city will not store bulky items, soiled items, contraband, or any other unsafe items.

5. Nothing in this section shall prevent the city from immediately addressing public health or safety hazards, including fire risks, unsanitary conditions, or obstructions to public rights-of-way. To that end, the city may remove and discard personal property placed in in a public area that poses an immediate threat to the health or safety of the public, such as soiled or unsafe items, without prior notice as required under subsection B.1. The city may also waive the pre-removal notice provision set forth under subsection B.1 to remove personal property that restricts emergency response personnel and vehicle access or otherwise obstructs free passage in public areas as necessary to protect public health, safety, or welfare.”
Section 9. Section 9.54.080 (Exceptions) is hereby added to Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code to read as follows:
“9.54.080 Exceptions.

This chapter shall not apply to camping, occupying camp facilities or using camp paraphernalia, or to any person storing personal property, including camp paraphernalia within the city:

A. Where the city has designated the public area for such purposes and the activity has been permitted as a temporary use not to exceed twenty-four (24) hours if the requestor has an unusual, emergency need and the use would not unduly impact public health or safety;
B. Where the city has designated the public area for a permitted special event or otherwise authorized the use of camp facilities or paraphernalia in public areas with adequate facilities to support such activates; or
C. Where a gathering, meeting or event is sponsored or conducted by the city.” SECTION 10. Section 9.54.090 (Enforcement) is hereby added to Chapter 9.54 (Prohibited Conduct and Unlawful Storage of Property and Camping in Public Areas) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code to read as follows:
Ҥ 9.54.090 Enforcement.

A. It is unlawful for any person to violate any provision or fail to comply with any of the requirements of this chapter. Any person who violates any provision of this chapter shall be guilty of a misdemeanor or infraction as provided in Chapters 1.16 of the Covina Municipal Code.

B. Any person who violates any provision of this chapter may be issued an administrative citation subject to Chapter 1.26 of the Covina Municipal Code, in addition to any other available penalty provisions or enforcement mechanisms at the discretion of the city.

C. Nothing in this chapter shall limit or preclude the enforcement of any other applicable laws or remedies available for violations of this chapter, including, but not limited to, the enforcement provisions of Title 1 or Chapter 8.40 of the Covina Municipal Code.

D. A repetition or continuation of any violation of any provision of this chapter, or of any order or direction of the city manager, chief of police, or designee thereof, on successive days, constitutes a separate offense for each day during any portion of which such violation is committed, continued or permitted.” SECTION 11. Section 9.48.010 (Definitions) of Chapter 9.48 (Conduct in Parks) is amended to add a new definitions for “public area” as paragraph “H”, to read as set forth below, with the rest of the section remaining unchanged except that definitionsfor the terms “Roller skate” through “Other wheeled recreational device” shall be listed alphabetically in paragraphs “I” through “M” respectively:
“H. “Public area” means the same as defined as CMC Section 9.54.010.” SECTION 12. Section 9.48.227 (Free passage shall not be obstructed or hindered) of Chapter 9.48 (Conduct in Parks) of Title 9 (Public Peace, Morals and Safety) of the Covina

Municipal Code is hereby amended to read as follows:
Ҥ 9.48.227. Free passage shall not be obstructed or hindered.

A. No person or persons shall stand, sit, linger, idle, or loiter on or at the entrance or exit of any street, alley, sidewalk, park or other public area, or in or about the entrance or exit of any business establishment or public building, either on foot or in an automobile or other vehicle, in such a manner as to obstruct or hinder the free passage of persons along such public way, or obstruct or hinder persons entering and exiting from any business establishment or public building, or in such a manner as to create a health or safety hazard for the community or for the patrons of such public area.

B. No person in violation of this prohibition shall refuse or fail to disperse or move on when directed to do so by a police officer or city employee.” SECTION 13. Section 9.48.228 (Bulky items, tents and storage of personal property in parks) of Chapter 9.48 (Conduct in Parks) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby amended to read as follows:
Ҥ 9.48.228. Bulky items, tents and storage of personal property in parks.

Subject to CMC § 9.54070, it is unlawful to leave unattended or store any personal property, including camp facilities or camp paraphernalia or bulky items in any public area.”
SECTION 14. Section 9.48.230 (Overnight camping) of Chapter 9.48 (Conduct in Parks) of Title 9 (Public Peace, Morals and Safety) of the Covina Municipal Code is hereby amended to read as follows:
Ҥ 9.48.230. Overnight camping.

A person shall not camp or sleep overnight in any park, except when authorized by the director. Unlawful camping in public areas, including parks, is prohibited pursuant to CMC § 9.54.060.”
SECTION 15. CEQA. The City Council, based on its own independent judgment, determines that the adoption of this Ordinance is exempt from environmental review pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3) as CEQA applies only to projects that have the potential for causing a significant effect on the environment, and not where, as is the case here, it can be seen with certainty that there is no possibility that the regulated activity may have a significant effect on the environment. The Ordinance is also an effort directed to improve public health and safety and is thus exempt from CEQA as an action taken by the City to assure the maintenance, restoration, or enhancement of a natural resource and/or the environment pursuant to CEQA Guidelines Sections 15307, 15308.

SECTION 16. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance.

SECTION 17. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings and this Ordinance are based are located at the City Clerk' s office located at 125 E. College Street, Covina, CA 91723. The custodian of these records is the City Clerk.

SECTION 18. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 19. Effective Date. This Ordinance shall become effective within thirty (30) days after its adoption.

SECTION 20. Publication. The City Clerk shall certify to the adoption of this Ordinance.

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

SECTION 21. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall enter the same in the Book of Original Ordinances.

PASSED, APPROVED, and ADOPTED this ____ day of _________, 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
____________________________________
KEVIN ENNIS, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 25-12 was introduced for first reading at a regular meeting on the ____ day of ___________, 2025.

Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the ____ day of ___________, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 13
Meeting: October 21, 2025
Title: Miscellaneous Concrete Repair Project – Project No. P2601 – Final Acceptance and Filing Notice of Completion
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by CJ Concrete Construction, Inc.;

2. Authorize the City Clerk to file a Notice of Completion for the Miscellaneous Concrete Repair Project – Project No. P2601; and

3. Approve Resolution CC 2025-109 appropriating $17,784 from available Measure M Fund – Fund Balance for use towards the completion of the project.

EXECUTIVE SUMMARY:

On July 1, 2025, the City Council approved a contract with CJ Concrete Construction, Inc. in the amount of $198,067.10 (including contingencies) for the removal and replacement of approximately 9,000 square feet of sidewalk, curb and gutter, ramps and other appurtenances. The project locations were situated within Grid 5 of the Department of Public Works’ City Grid System and included the following streets:
 East Arrow Hwy
 East Arrow Grand Circle
 East Benbow Street
 East Benwood Street
 East Bellbrook Street
 East Bickley Drive
 East Calera Avenue
 East Covina Boulevard
 East Cypress Street
 North Glenvina Avenue
 North Howard Avenue
 East Kemp Place
 East Marilyn Way
 North Prospero Drive
 North Virginia Avenue
Project construction has been completed and City staff recommends acceptance of the work performed by CJ Concrete Construction, Inc. and authorization for the City Clerk to file a Notice of Completion (Attachment A) for the Miscellaneous Concrete Repair Project – Project No. P2601.

DISCUSSION:

During project construction, the need for additional work not included in the original scope of work was identified by the City. As a result, the City Engineer reviewed and approved the following change order, increasing the overall contract amount by $18,260.90 as follows:
 Change Order No. 1 – Increased the overall contract amount by $18,260.90 for quantity adjustments

FISCAL IMPACT:

Available funding for the Miscellaneous Concrete Repair Project – Project No. P2601 was allocated as follows:

Project Funds Amount Account
State Gas Tax $193,544 23002200-55250-P2601
Measure M $50,000 24202200-55250-P2601
Grand Total $243,544
The following table represents the final project summary:

Item Actual
Project Appropriations $243,544
CJ Concrete Construction, Inc. – (Contract Amount
plus Change Order) ($216,328)
CEJ Engineers, Inc. – (Construction Management &
Inspection Services)
($45,000)
Total Expenditures ($261,328)
Total OVER BUDGET ($17,784)
Approval of Resolution CC 2025-109 will appropriate additional Measure M Fund – Fund Balance monies towards project account number 24202200-55250-P2601 in order to supplement the original project budget by $17,784.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

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

Respectfully submitted,

ATTACHMENT A

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

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

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

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:

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

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

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

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

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

NAMES ADDRESSES

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

NAMES ADDRESSES

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

September 15,
2025 . The work done was:

Miscellaneous Concrete Repair Project – Project No. P2601

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

CJ Concrete Construction, Inc. July 1, 2025
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:

Miscellaneous Concrete Repair Project – Project No. P2601

10. The street address of said property is Various Locations within Grid 5 of City’s Grid Corridor (If no street address has been officially signed, insert “None”.) Dated October 21, 2025
Fabian Velez, Chief Deputy City Clerk, City of Covina

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

Executed on October 21, , 2025 at Covina , California .

Rafael M. Fajardo, City of Covina

ATTACHMENT B
RESOLUTION CC 2025-109

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2025-2026 CAPITAL

IMPROVEMENT PROGRAM BUDGET AND REFLECT AN
APPROPRIATION OF $17,784 FROM AVAILABLE MEASURE M FUND
– FUND BALANCE FOR USE TOWARDS PROJECT COMPLETION OF
THE MISCELLANEOUS CONCRETE REPAIR PROJECT – PROJECT
NO. P2601
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 2026 Operating Budget & Capital Improvement Plan (CIP) was approved on May 6, 2025; 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 appropriate funds from available Measure M Fund – Fund Balance for use towards project completion of the Miscellaneous Concrete Repair Project – Project No. P2601.

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

SECTION 1. Amend the Fiscal Year 2025-2026 Capital Improvement Program Budget for the Miscellaneous Concrete Repair Project – Project No. P2601.

SECTION 2. Appropriate $17,784 from available Measure M Fund – Fund Balance to account number below:

Account No. Account Description Amount ($) Increase/Decrease 24202200-
55250-P2601
Measure M-StreetsSidewalk InfrastructureMisc. Concrete Repair Project
$17,784 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 21st day of October, 2025.

Resolution CC 2025-109 Page 2 of 2
City of Covina, California
BY:

VICTOR LINARES, 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 2025-109 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 21st day of October, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 14
Meeting: October 21, 2025
Title: Covina Housing Authority Annual Report FY 24-25
Presented by: Brian K. Lee, Deputy City Manager/Community Development Director Recommendation: Receive and file the report.

EXECUTIVE SUMMARY:

In Fiscal Year 2010-2011, the Covina Housing Authority was activated by the Covina City Council. Health and Safety Code Sections 34328 and 34328.1 require all housing authorities to file an annual report by October 1st with the City Clerk and the State of California Department of Housing and Community Development. The report, which was filed with both offices, is attached as Attachment A.

The purpose of the report is to show the activities for the previous fiscal year. The attached report recounts the process whereby the Housing Authority assumed the housing functions and duties of the Covina Redevelopment Agency when that agency was dissolved pursuant to AB 1X 26, as well as providing other required information.

FISCAL IMPACT:

None.

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,

COVINA HOUSING AUTHORITY
ANNUAL REPORT FY 24-25
Health and Safety Code Sections 34328 and 34328.1 require all housing authorities to file an annual report by October 1st with the City Clerk and the Department of Housing and Community Development. The requirements of the report follow.

A. Background
In FY 2010-2011, the Housing Authority was activated by the Covina City Council. City resolution No. 11-6926, adopted January 25, 2011, declared that there is a need for a housing authority, declared that all members of the City Council shall be the Commissioners of the Housing Authority and designated the mayor as the interim chairman of the housing authority.

On January 30, 2012, by Resolution 12-7045, the Covina City Council elected not to retain the housing assets and functions previously performed by the Covina Redevelopment Agency, which was dissolved pursuant to Part 1.85 of Division 24 of the California Health and Safety Code. All rights, powers, duties and obligations, including any encumbered amounts on deposit in the Agency’s Low-and Moderate Income Housing Fund, were transferred to the Covina Housing Authority.

On April 3, 2012, by Resolution 12-004, the Successor Agency to the Covina Redevelopment Agency recommended approval of the transfer of housing assets and properties of the former Agency to the Housing Authority by the Oversight Board.

On April 5, 2012, by Resolution 12-01, the Oversight Board directed the Successor Agency to transfer housing responsibilities and all rights, powers, duties and obligations associated with the housing activities of the Covina Redevelopment Agency along with the transfer of encumbered low-and moderate income housing funds designated for housing projects to the Covina Housing Authority pursuant to Health and Safety Code Sections 34176, 34177 and 34181. The Oversight Board approval was sent to the state Department of Finance for final approval. The transfer of the housing functions and duties were not questioned by the State Department of Finance, and so were approved.

Pursuant to Health and Safety Code section 34176 (a)(2) the Authority submitted a Housing Assets Transfer Form to the Department of Finance in July 2012. By letter dated August 30, 2012, the State Department of Finance approved the Housing Asset Transfer Form. The form was later amended, and the Amended Housing Asset Transfer Form was approved by the State Department of Finance by letter dated February 21, 2013.

The housing assets and functions assumed by the Housing Authority are as listed in Exhibit A to the Annual Report. In addition, the following rental properties will be monitored annually.

ATTACHMENT A

Village Green Apartments, 152 E Covina Blvd, Covina CA 91722 Smith Family Trust Apartments, 227 N Citrus Ave, Covina CA 91723 Cienega Gardens Apartments, 1211 N. Lyman, Covina CA 91724 Las Palmas Apartments, 777 W. Covina Blvd, Covina CA 91722 Center Street Apartments, 236 W. Center Street, Covina, CA 91723 Covina Gardens, 200 W. Rowland Street, Covina, CA 91723 Owner-occupied affordable housing units will continue to be monitored on an annual basis.

Authority-Owned Assets
In FY 10-11, the Housing Authority became the owner of record of two properties.

Ownership was affirmed when the Amended Housing Asset Transfer Form was approved by the State Department of Finance by letter dated February 21, 2013. One property has since been sold and the funds realized through the sale were deposited to the Low- and Moderate-Income Housing Asset Fund (“LMIHAF”).

APN Description
8434-002-904 Residential Property, Covina
APN 8434-002-904 is an occupied residential property, occupied as transitional housing for homeless women with children.

B. Activities for the Preceding Year
In Fiscal Year 2024-2025, the Covina Housing Authority did not issue any bonds, or execute any loans or financing agreements for multi-family rental development.

In FY 24-25, $0 was paid by the Successor Agency against the SERAF 2011 loan. All funds were deposited to the LMIHAF.

In addition, $0 was transferred to the LMIHAF pursuant to Health and Safety Code 34191.4(b)(3)(C).
(1) Percentage Requirements*
Not less than 20% of all units shall be available for occupancy on a priority basis to persons of low-income.

Categories:

Rental Housing 100%
Homeownership Developments N/A
Rehabilitation financing N/A
Of the one housing unit owned by the Housing Authority, 100% is occupied by households whose gross income does not exceed the applicable limits as of January 1, 2024.

*The only units owned, assisted or monitored by the Housing Authority are in connection with the transfer to the Housing Authority of the rights, powers, duties and obligations associated with housing activities of the former Covina Redevelopment Agency. (2) Units financed with Bonds N/A

(3) Multifamily Units N/A
(4) Recipients of Federal Rent Subsidies N/A
(5) Increase in Income of Current Occupant N/A
C. Recommended Legislation
The Authority does not intend to propose any legislation at this time.

D. Domestic Violence Reporting N/A

EXHIBIT A

TO THE ANNUAL REPORT
Amended Housing Assets List dated November 28, 2012

Exhibit A Page 1 of 20

Exhibit A Page 2 of 20

Exhibit A Page 3 of 20

Exhibit A Page 4 of 20

Exhibit A Page 5 of 20

Exhibit A Page 6 of 20

Exhibit A Page 7 of 20

Exhibit A Page 8 of 20

Exhibit A Page 9 of 20

Exhibit A Page 10 of 20

Exhibit A Page 11 of 20

Exhibit A Page 12 of 20

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Exhibit A Page 14 of 20

Exhibit A Page 15 of 20

Exhibit A Page 16 of 20

Exhibit A Page 17 of 20

Exhibit A Page 18 of 20

Exhibit A Page 19 of 20

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 15
Meeting: October 21, 2025
Title: First Amendment to Agreement between the City of Covina and SiteRep Construction Services, Inc. for Tenant Improvements at 401 N. Citrus Avenue Presented by: Brian K. Lee, Deputy City Manager/Director of Community Development Recommendation: Authorize the City Manager to execute the First Amendment to the Minor Construction Agreement with SiteRep Construction Services, Inc. and execute all related documents.

EXECUTIVE SUMMARY:

As part of the City’s Capital Improvement Program (“CIP”) budget, a project was included to create a shared workspace in the City’s downtown shopping district. Such effort is expected to enhance economic activity in the area and help to attract start-ups and small businesses and other entrepreneurs into the community. The project includes minor tenant improvements and the purchase of office furniture/equipment to convert a commercial building located at 401 N. Citrus Avenue into a 4,265 square foot shared office facility.

On April 19, 2022, the City Council approved an exchange agreement with Bently Real Estate to secure a no-cost eight (8) years, two (2) month lease for the subject property. The agreement was amended on September 5, 2023 to extend the performance period. In exchange, Bently Real Estate will receive approximately 416.9 lineal feet of Geneva Place to use as part of a larger mixed-use development project. Bently Real Estate is responsible for completing certain improvements at 401 N. Citrus to deliver the City a “warm shell”, which will then trigger the dedication of the Geneva Place right of way.

In April of 2022, the City published a Request for Qualifications (RFQ) seeking operational services for a coworking facility at 401 N. Citrus and evaluated the qualifications of respondents. The most qualified respondent was FoundrSpace LLC (“Operator”), and on August 1, 2023, the City Council approved a Management Agreement (“Agreement”) between the City and FoundrSpace LLC for their operation of a co-working facility.

The Agreement detailed certain improvements that will be made by the City to the warm shell, which will bring the facility to a level of usability and habitability that will enable the Operator to begin operations.

To facilitate these improvements, on February 20, 2024 the Council authorized the execution of a minor construction agreement (“Agreement”) with SiteRep Construction Services, Inc. (“SiteRep”) for the build out of the warm shell. Due to the developer’s delays in delivering the warm shell, the work to be done by SiteRep under the Agreement has been delayed. Moreover, since the Agreement was presented, other build out requirements to complete the tenant improvements (“T.I.”) have been identified. For these reasons, staff requests that the City Council approve a First Amendment to the Agreement to allow for additional expenditures related to the new scope of work and to extend the term of the contract.

DISCUSSION:

The original agreement included the following items in the scope of work to be performed, for a total price of $171,065 which included a 3% bond cost. The not to exceed amount was set to $180,000 to allow for small contingencies.
 Installation of mop closet
 Build out of kitchenette
 Creation of small offices referred to as “phone booths”

 Installation of carpet tile
 Installation of polished concrete flooring
 Creation and installation of area to be used as a podcast studio  Creation and installation of large conference rooms
Since that time, additional scope items have been identified and a change order has been received. The new scope items include:
 Electrical work throughout the buildings
 Additional scope of polished concrete floors
 Additional scope of carpet tiles
The total cost for these changes is $39,631. If the first amendment is approved to accommodate the additional scope items, the total revised project cost would be $210,696, with a total not to exceed amount of $219,631 (including the previously approved contingency).

In additional, the original agreement contemplated a construction start date in 2024 with a contract end date of December 31, 2025, however due to extensive delays by the developer in delivering the warm-shell required to begin the City T.I. work, construction has been delayed to the current year. As such, staff requests that the term of the agreement be extended to June 30, 2026. Following SiteRep’s completion of the build out, the Operator will outfit the building to support their operation and the co-working space will open for business.

FISCAL IMPACT:

There is no impact to the General Fund. Funds are budgeted under account 4010-4000-55100-COWRK.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not appliacable.

Respectfully submitted,

CITY OF COVINA AGREEMENT FOR

MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated April 23, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and SiteRep Construction Services, Inc., a California corporation. City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to complete tenant improvements at 401 N. Citrus Avenue.

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

C. City desires to retain Contractor and Contractor desires to serve City to perform this work in accordance with the terms and conditions of this Agreement.

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through December 31, 2024, unless sooner terminated as provided in Section 14 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 December 31, 2025.

2. Compensation.

A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed One Hundred Eighty Thousand Dollars ($180,000) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work). Any terms other than a description of the work to be performed and costs of the work contained in Exhibit A is null and void and not a part of this Agreement.

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

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

3. Contractor’s Work.

ATTACHMENT A
A. Scope of Services. Contractor shall construct and install all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A (Scope of Work) and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed in writing by the City.

City may request, in writing, changes in the Scope of Work to be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.

B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Contractor Representative shall be Andre Ortiz, Vice President (the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Work under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.

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

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

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

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

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

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

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

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

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

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

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

N. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.

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

P. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30) calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.

4. Method of Payment.

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

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

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

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

5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may

be used, reused, disseminated or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor.

6. Independent Contractor.

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

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

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

of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

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

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

7. PERS Compliance and Indemnification.

A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.

Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

B. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

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

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

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

10. Indemnification.

A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.

City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2). 3) Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 10 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in

law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.

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

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

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

11. Insurance.

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

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

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

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

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

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

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

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

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

I. Evidence of Insurance. Prior to the performance of Work under this Agreement, Contractor shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Contractor may provide complete, certified copies of

all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager. Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

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

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

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

If to City: If to Contractor:

Attn: Attn: Andre Ortiz
City of Covina SiteRep Construction Services, Inc.
125 E. College Street 301 E. Arrow Highway Ste. 105
Covina, California 91723 San Dimas, CA 91773

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

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

18. Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

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

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

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

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

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

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

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

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

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

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

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

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

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

31. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.

City: Contractor:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

Name: Fabian Velez
Title: Chief Deputy City Clerk
SiteRep Construction Services, Inc.
a California corporation
By:

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

EXHIBIT A

SCOPE OF WORK

EXHIBIT B

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

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

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

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

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

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

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

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

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

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

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